ANNUAL REPORT 2022
April 2023
Message to Our ShareholdersUpon the past of a fruitful year, we are now standing at a new beginning.2022 was not an easy year. Despite all those severe and unprecedented challenges, everyone at BOEhas continued forging ahead with diligence and fortitude, actively overcoming external challengeslike economic downturns and market fluctuations. As a result, BOE has achieved above-averageoperating results industry-wide. During the year, BOE recorded operating revenue of RMB178.41billion, with a net profit attributable to BOE shareholders of RMB7.55 billion. This is indicative of asignificant improvement in the resilience of its operations amid a downturn in the industry. Therehave been steady and rising shipments of mainstream LCD applications throughout the year. Theshipment area in five application domains, namely smartphones, tablet PCs, laptops, monitors, andTVs, continued to rank first globally, while the market share in innovative application fields like tileddisplay screens and vehicle-mounted products also ranked first in the world. Flexible AMOLEDscontinued to maintain a growing momentum and even achieved further breakthroughs in terms ofshipment volume, with an 30% increase.Under the strategic guidance of “Screen-Connected IoT”, BOE also achieved a series of outstandingresults in the business of Internet of Things (IoT) transformation. The revenue of system solutionsincreased by more than 41%, and the revuenue of sensing business, MLED business, smart medicalindustry business increased by over 41%, nearly 85% and over 19%, respectively.Also, multiplebenchmark projects were created successfully in various segment application scenarios related to IoT,including smart industrial parks, smart finance, and visual arts.During the course of its development, BOE’s goal is to pursue high-quality growth. With continuousexploration, BOE has constantly been making the focus of its high-quality development clear anddefinite.Use Strategic Guidance to Drive High-quality DevelopmentBOE has put in place a “1+4+N+Ecosystem” business development structure by centring on thedevelopment strategy of “Screen-Connected IoT” and by further improving its pattern of development."1" represents semiconductor display, which is the core capacity and quality resources accumulatedby BOE, as well as the source and origin of the Company's transformation and development. "4" is ahigh-potential channel and direction of development selected based on BOE's core competence andvalue chain extension, as well as the four main fronts of the Company's IoT transformation, namelythe IoT Innovation business, the Sensor business, the MLED business and the Smart MedicalEngineering business. "N" refers to the subdivided application scenarios of IoT that are continuouslyexplored and cultivated by BOE, as well as the specific focus of the Company's IoT transformationdevelopment. And “Ecosystem” is an industrial ecological development circle constructed by theCompany in collaboration with many partners and by aggregating the resources of the industrial chainand ecosystem chain.Enhance Core Capacity with Innovation as the Driving ForceBOE has always insisted on having technology serve the public through technological and productinnovation. So far, BOE has already independently applied for a total of over 80,000 patents, of whichmore than 28,000 are related to OLED. This has effectively strengthened the core patent portfolio andcontinuously improved the patent attack and defence system. In 2022, BOE ranked 11th worldwidein terms of the number of patents granted by the US according to IFI, and it has also been among theglobal top 20 for five consecutive years. With a total of 1,884 PCT patent applications, BOE ranked7th worldwide in terms of the number of PCT patent applications submitted to the World IntellectualProperty Organization, and it has been among the global top 10 for seven consecutive years.Meanwhile, BOE has been adhering to the dual drivers of “technology + brand” and deepening its
BOE Technology Group Co., Ltd. Annual Report 2022
promotion of the three technology brands ADS PRO, f-OLED, and α-MLED on the customer end.Currently, the relevant products have won orders from eight brand customers, while many other newproducts have made their global debut. BOE continues to lead the industry and build a leading edgewith a strong technology presence.Build a Strong Team to Win in the CompetitionTalent is the key to a successful business. BOE is consistently strengthening its talent management aswell as its incentive mechanism, and it is always striving to fully mobilize the enthusiasm, initiative,and creativity of its talented personnel at all levels through mechanisms such as its professionalmanager system, contract-based appraisal, equity incentives, and incubation of innovation.Meanwhile, BOE is also always taking a global view and doing its best to not only gather outstandingtalented personnel in the industry, but also train its talent through systematic training projects thatspan every BOE employee’s entire career. Moreover, by continuously strengthening and improvingits talent selection, training, deployment and retention system, BOE is continuing to build a high-level team of talent that will promote the Company’s stable and high-quality development over thelong term. BOE upholds the development principle of “market orientation, internationalization andprofessionalization” and strives to globalize its operations. Among the talented personnel who havemade important contributions to the Company’s high-quality development, there are nearly 400foreign experts as well as over 2,600 overseas employees.Sketch Out a Bright Future with Green PracticesThroughout the course of its development, BOE has actively been practicing the concept of green andlow-carbon development, which includes reducing carbon emissions in an orderly manner bypromoting carbon neutrality pilot projects and using clean energy, as well as boosting its unifiedplanning and effective implementation of peak carbon emissions and eventual carbon neutrality. In2022, BOE established and improved its carbon emission management system and defined the targetand path for peak carbon emissions and eventual carbon neutrality. In the future, BOE will implementfurther measures for achieving peak carbon emissions, develop its path toward carbon neutrality, andensure the orderly implementation of its “peak carbon emissions and carbon neutrality” strategy “inthree steps”. Meanwhile, BOE will also continue to practice the development concept of “Creating aBetter Future Together”, and to continue making contributions toward building a peaceful, stable,prosperous, and beautiful home for all.2023 marks the 30th anniversary of the founding of BOE. Looking back on the past, BOE peoplehave used their entrepreneurial enthusiasm and dreams to lead China’s semiconductor displayindustry in achieving progress from “0” to “1”, and have helped the industry lead the world byachieving epoch-making breakthroughs. And looking ahead to the future, BOE people will seek tofully implement the “Screen-Connected IoT” development strategy through an even more energeticfighting spirit and to keep making progress toward becoming “a global leader in the IoT innovationsector”.I would like to express my heartfelt gratitude to all our shareholders for accompanying us all the wayalong. And we look forward to your continuous support as we continue on the journey to be the mostrespected company on earth!
Chairman of BOE
BOE Technology Group Co., Ltd. Annual Report 2022
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referredto as the “Company”) hereby guarantee the factuality, accuracy and completeness of thecontents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.Mr. Chen Yanshun, the Company’s legal representative, Mr. Gao Wenbao, President, Ms. YangXiaoping, Chief Financial Officer, and Mr. Teng Jiao, head of the financial department(equivalent to financial manager) hereby guarantee that the Financial Statements carried inthis Report are factual, accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report andits summary.Any plans for the future and other forward-looking statements mentioned in this Report shallNOT be considered as absolute promises of the Company to investors. Investors, among others,shall be sufficiently aware of the risk and shall differentiate between plans and forecasts andpromises.The Board has approved a final dividend plan for the Reporting Period. Based on37,668,177,369 shares, a cash dividend of RMB0.61 (tax inclusive) per 10 shares is to bedistributed to all the shareholders, with no bonus issue from either profit or capital reserves.This Report and its summary have been prepared in Chinese and translated into English.Should there be any discrepancies or misunderstandings between the two versions, the Chineseversions shall prevail.
BOE Technology Group Co., Ltd. Annual Report 2022
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 4
Part II Corporate Information and Key Financial Information ...... 9
Part III Management Discussion and Analysis ...... 14
Part IV Corporate Governance ...... 43
Part V Environmental and Social Responsibility ...... 73
Part VI Significant Events ...... 81
Part VII Share Changes and Shareholder Information ...... 97
Part VIII Preferred Shares ...... 109
Part IX Bonds ...... 110
Part X Financial Statements ...... 115
BOE Technology Group Co., Ltd. Annual Report 2022
Documents Available for Reference
(I) The financial statements signed and sealed by the Company’s legal representative, President, Chief Financial Officer and head ofthe financial department (equivalent to financial manager);(II) The original of the Independent Auditor’s Report sealed by the CPA firm and signed and sealed by the certified public accountants;(III) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the ReportingPeriod; and(IV) This Report disclosed in other securities markets.All the above mentioned documents are available at the Board Secretary’s Office of the Company.
Chairman of the Board (signature): Mr. Chen Yanshun
Date of the Board’s approval of this Report: 31 March 2023
BOE Technology Group Co., Ltd. Annual Report 2022
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 |
| The Compliance in Operation of Main Board Listed Companies | Guideline No. 1 of the Shenzhen Stock Exchange Regarding Self-disciplinary Activities and Regulation of Listed Companies—Compliance in Operation of Main Board Listed Companies |
| The 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 |
| OLED | Organic Light Emitting Diode |
| LED | Light-emitting Diode |
| MLED | Mini/Micro LED |
| Mini/Micro LED | Submillimeter/Micro Light Emitting Diode |
| TFT-LCD | Thin Film Transistor Liquid Crystal Display |
| AMOLED | Active-matrix Organic Light Emitting Diode |
| Oxide | A compound of oxygen and another chemical element |
| Microdisplay | Microdisplay technology |
| IoT | Internet of Things |
| X-ray | A type of radiation that can pass through objects that are not transparent and make it possible to see inside them |
| SID | The Society for Information Display |
| DIA | Display Industry Awards |
| EPQ | A drive technology |
| HSR | A frequency multiplication technology |
| EPD | Electrophoretic Display |
| P0.9 | Point 0.9mm |
| COG | Chip (Mini LED) On Glass |
| SMD | Surface Mount Technology |
| COB | Chip (Mini LED) On Board (PCB) |
| dB | Decibel |
| MNT | Monitor, generally referring to the 27~34 inch model |
| MNT Gaming | Monitor Gaming |
| mm | Millimeter |
| nit | Unit for brightness |
| LCD | Liquid Crystal Display |
| Panel | Display panel |
| IC | Integrated Circuit Chip |
| Cell | Liquid crystal cell |
| AA区 | Active area |
| LD | Local Dimming |
| Scaler IC | An integrated circuit chip that can decode video signals and make them receivable by LCD panels |
| CPU | Central Processing Unit |
| DSC | Display Stream Compression |
| SaaS | Software as a Service |
| AI | Artificial Intelligence |
| Pitch | Distance between two points |
| LTPS | Low Temperature Poly-Silicon |
| LTPO | Low Temperature Polycrystalline Oxide |
| VR | Virtual Reality |
| EES | Enhanced efficiency structure |
BOE Technology Group Co., Ltd. Annual Report 2022
| FPXD | Flat Panel X-ray Detector |
| TPC | Tablet Personal Computer |
| ODM | Original Design Manufacturer |
| ADS Pro | One of BOE’s three major technology brands |
| SBTi | Science Based Targets initiative |
| TN Raster | Twisted Nematic LCD Raster |
| BOEU | BOE University |
| COD | Chemical Oxygen Demand, a chemical measurement of the amount of reducing substances to be oxidised in a water sample |
| DCI-P3 | Digital Cinema Initiatives - Protocol 3, wide color gamut standards released by the American film industry, which are widely used color standards for digital movies |
| Mask | Mask for pattern etching |
| TFT | Thin Film Transistor |
BOE Technology Group Co., Ltd. Annual Report 2022
Part II Corporate Information and Key Financial InformationI Corporate Information
| Stock name | BOE-A, BOE-B | Stock code | 000725, 200725 |
| Previous stock name (if any) | N/A | ||
| Stock exchange for stock listing | Shenzhen Stock Exchange | ||
| Company name in Chinese | 京东方科技集团股份有限公司 | ||
| Abbr. | 京东方 | ||
| Company name in English (if any) | BOE TECHNOLOGY GROUP CO., LTD. | ||
| Abbr. (if any) | BOE | ||
| Legal representative | Chen Yanshun | ||
| Registered address | 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China | ||
| Zip code | 100015 | ||
| Past changes of registered address | N/A | ||
| Office address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | ||
| Zip code | 100176 | ||
| Company website | www.boe.com | ||
| Email address | ir@boe.com.cn | ||
II Contact Information
| Item | Board Secretary | Securities Representative |
| Name | Liu Hongfeng | Luo Wenjie |
| Office Address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China |
| Tel. | 010-64318888 ext. | 010-64318888 ext. |
| Fax | 010-64366264 | 010-64366264 |
| E-mail address | liuhongfeng@boe.com.cn | luowenjie@boe.com.cn |
III Media for Information Disclosure and Place where this Report Is Lodged
| Stock exchange website where this Report is disclosed | http://www.szse.cn |
| Media and website where this Report is disclosed | China Securities Journal, Shanghai Securities News, Securities Times, Ta Kung Pao (HK), http://www.cninfo.com.cn/ |
| Place where this Report is lodged | Board Secretary’s Office |
IV Changes to Company Registered Information
| Unified social credit code | No change |
| Change to principal activity of the Company since going public (if any) | No change |
| Every change of controlling shareholder since incorporation (if any) | No change |
BOE Technology Group Co., Ltd. Annual Report 2022
V Other Information
The independent audit firm hired by the Company:
| Name | KPMG Huazhen LLP |
| Office address | 8/F, East Tower 2, Oriental Plaza, 1 East Chang An Avenue, Dongcheng District, Beijing |
| Accountants writing signatures | Su Xing and Chai Jing |
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
? Applicable □ Not applicable
| Name | Office address | Representatives | Supervision period |
| China Securities Co., Ltd. | Room 2203, North Tower, Shanghai Securities Plaza, 528 Pudong South Road, Pudong New Area, Shanghai | Han Yong and Liao Ling | 20 August 2021-31 December 2022 |
| Hua Ying Securities Company Limited | Building F12, China IOT International Innovation Park, 200 Linghu Avenue, Xinwu District, Wuxi City | Jin Cheng and Wu Yi | 20 August 2021-31 December 2022 |
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable ? Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.? Yes □ NoReason for retrospective restatement: Change of accounting policy.
| Item | 2022 | 2021 | 2022-over-2021 change (%) | 2020 | ||
| Before | Restated | Restated | Before | Restated | ||
| Operating revenue (RMB) | 178,413,731,179.00 | 219,309,799,505.00 | 221,035,718,012.00 | -19.28% | 135,552,569,729.00 | 135,552,569,729.00 |
| Net profit attributable to the listed company’s shareholders (RMB) | 7,550,877,790.00 | 25,830,935,500.00 | 25,960,751,646.00 | -70.91% | 5,035,627,952.00 | 5,035,627,952.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | -2,228,652,161.00 | 23,937,539,752.00 | 24,067,355,898.00 | -109.26% | 2,670,454,834.00 | 2,670,454,834.00 |
| Net cash generated from/used in operating activities (RMB) | 43,021,967,305.00 | 62,270,556,324.00 | 62,698,688,556.00 | -31.38% | 39,251,773,458.00 | 39,251,773,458.00 |
| Basic earnings per share (RMB/share) | 0.19 | 0.71 | 0.71 | -73.24% | 0.13 | 0.13 |
| Diluted earnings per share (RMB/share) | -- | 0.71 | 0.71 | -- | 0.13 | 0.13 |
| Weighted average return on equity (%) | 5.45% | 23.84% | 23.93% | -18.48% | 5.15% | 5.15% |
| Item | 31 December 2022 | 31 December 2021 | Change of 31 December 2022 over | 31 December 2020 | ||
BOE Technology Group Co., Ltd. Annual Report 2022
| 31 December 2021 (%) | ||||||
| Before | Restated | Restated | Before | Restated | ||
| Total assets (RMB) | 420,562,103,212.00 | 449,726,980,355.00 | 450,232,603,404.00 | -6.59% | 424,256,806,331.00 | 424,297,693,499.00 |
| Equity attributable to the listed company’s shareholders (RMB) | 136,089,410,395.00 | 142,925,547,899.00 | 143,204,240,947.00 | -4.97% | 103,276,766,835.00 | 103,312,344,036.00 |
Reason for accounting policy change and correction of accounting error:
The relevant data have been retrospectively restated in accordance with the Interpretation No. 15 of the Accounting Standards forBusiness Enterprises issued by the Ministry of Finance.Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptionalgains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there wasuncertainty about the Company’s ability to continue as a going concern.
□ Yes ? No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptionalgains and losses was negative.? Yes □ No
| Item | 2022 | 2021 | Remark |
| Operating revenue (RMB) | 178,413,731,179.00 | 221,035,718,012.00 | N/A |
| Amount deducted from operating revenue (RMB) | 0.00 | 0.00 | N/A |
| Operating revenue after deduction (RMB) | 178,413,731,179.00 | 221,035,718,012.00 | N/A |
VII Accounting Data Differences under China’s Accounting Standards for BusinessEnterprises (CAS) and International Financial Reporting Standards (IFRS) and ForeignAccounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable ? Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable ? Not applicable
No difference for the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2022
VIII Key Financial Information by Quarter
Unit: RMB
| Item | Q1 | Q2 | Q3 | Q4 |
| Operating revenue | 50,475,809,458.00 | 41,134,432,411.00 | 41,134,145,106.00 | 45,669,344,204.00 |
| Net profit attributable to the listed company’s shareholders | 4,388,727,184.00 | 2,206,934,554.00 | -1,304,557,522.00 | 2,259,773,574.00 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | 3,511,402,963.00 | 728,053,130.00 | -2,688,031,763.00 | -3,780,076,491.00 |
| Net cash generated from/used in operating activities | 14,755,368,710.00 | 13,356,631,955.00 | 2,918,435,636.00 | 11,991,531,004.00 |
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from whathave been disclosed in the Company’s quarterly or interim reports.
□ Yes ? No
IX Exceptional Gains and Losses? Applicable □ Not applicable
Unit: RMB
| Item | 2022 | 2021 | 2020 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 5,445,499,094.00 | 174,174,600.00 | 373,432,171.00 | 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 consistently given in the Company’s ordinary course of business at fixed quotas or amounts as per governmental policies or standards) | 5,458,665,272.00 | 2,077,537,306.00 | 2,332,107,692.00 | 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 |
BOE Technology Group Co., Ltd. Annual Report 2022
| Gain or loss on fair-value changes in held-for-trading financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 275,498,559.00 | 121,656,142.00 | 82,698,484.00 | N/A |
| Reversed portions of impairment allowances for receivables which are tested individually for impairment | 18,395,999.00 | 20,304,301.00 | 15,447,820.00 | 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 | 90,115,764.00 | 90,587,512.00 | 65,391,368.00 | N/A |
| Other gains and losses that meet the definition of exceptional gain/loss | 0.00 | 0.00 | 0.00 | N/A |
| Less: Income tax effects | 133,580,776.00 | 191,362,477.00 | 185,966,533.00 | N/A |
| Non-controlling interests effects (net of tax) | 1,375,063,961.00 | 399,501,636.00 | 317,937,884.00 | N/A |
| Total | 9,779,529,951.00 | 1,893,395,748.00 | 2,365,173,118.00 | -- |
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable ? Not applicable
No such cases for the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2022
Part III Management Discussion and AnalysisI Industry Overview for the Reporting PeriodIn the macro environment of frequent geopolitical risks and global economic downturn, inflation remained at high levels, consumerconfidence and capacity continued to be low, fixed expenditure inhibited consumption upgrade, and purchasing strategies on the brandend became conservative. As a result, the semiconductor display industry saw an imbalance between supply and demand, and theindustry development was under significant pressure throughout the year. The prices of mainstream semiconductor display applicationproducts declined throughout the year, and panel procurement on the brand end adopted a conservative posture. Although the overallutilisation ratio of panel factories remained relatively low, they still faced great shipment pressure. The growth engine of the consumerelectronics industry shifted from traditional applications such as mobile phones, laptops, and TVs to new segmented application fieldssuch as VR/AR and smart watches, and semiconductor display technology also gradually transformed into a development pattern withLCD as the focus and OLED and Narrow Pixel Pitch LED displays as highlights.Currently, China attaches great importance to developing the real economy, continues to promote the high-end, smart, and greendevelopment of the manufacturing industry, and accelerates the construction of China’s strength in manufacturing, product quality anddigital development. IoT is one of the important infrastructures in the digital economy era. Sensors, artificial intelligence, edgecomputing, big data, and other technology applications are accelerating iterative development, speeding up the construction of theecology of the Internet of Everything (IoE) and promoting the rapid development of demand-side scenarios. Supported by increasinglymature technology and growing demand for intelligence, smart screens, industrial sensors, and automotive electronics have gainedfirst-mover advantage and the product market scale continues to expand. As the technology gradually matures and the potential forintegration applications is unleashed, a variety of IoT technologies will be integrated into industry, transportation, finance, architecture,energy, and other industries and boost the rapid development of the industrial IoT, Intelligent Car Networking, smart finance, smartindustrial parks, smart energy and other IoT application industries.At the 20th National Congress of the Communist Party of China, it was mentioned that we should promote the construction of a healthyChina, prioritise the protection of people's health in strategic development, and improve the policies of promoting people's health.Several policies jointly encourage the research, development, and application of innovative medical devices and biomedicine, activelypromote the domestic substitution of medical devices and equipment, and accelerate the construction of a health service systemfeaturing the integration of prevention and treatment, the integration of medicine and health care, and intelligence, providing broaddevelopment prospects for innovative medical engineering products and integrated health care services for prevention and treatment.II Principal Activity of the Company in the Reporting PeriodBOE Technology Group Co., Ltd. is a leading IoT company providing intelligent interface products and professional services forinformation interaction and human health. Based on a deep understanding of the intrinsic laws of the market and practical exploration,and in order to further enhance its value creation capability, BOE has put forward the development strategy of "Screen-Connected IoT"based on its core genes and capabilities, seizing the ubiquitous growth opportunities of "screen", and fully leveraging its core advantageof "screen" to integrate screens into more market segments and application scenarios by integrating more functions and deriving moreforms. By doing so, BOE will realize the user perception revolution of "screen as terminal" in the digital era, build an industrial ecologyof "screen as platform and screen as system", and reshape the value growth model. At the same time, based on the strategic design of"Screen-Connected IoT", BOE will bring a new connotation to the "1+4+N+Ecosystem" development structure under the newdevelopment pattern."1" represents semiconductor display, which is the core capacity and quality resources accumulated by BOE, as well as the source andorigin of the Company's transformation and development.
BOE Technology Group Co., Ltd. Annual Report 2022
"4" is a high-potential channel and direction of development selected based on BOE's core competence and value chain extension, aswell as the four main fronts of the Company's IoT transformation, namely the IoT Innovation business, the Sensor business, the MLEDbusiness and the Smart Medical Engineering business."N" refers to the subdivided application scenarios of IoT that are continuously explored and cultivated by BOE, as well as the specificfocus of the Company's IoT transformation development.“Ecosystem” is an industrial ecological development circle constructed by the Company in collaboration with many partners and byaggregating the resources of the industrial chain and ecosystem chain.The Company's core businesses are summarized as follows:
1. The Display Devices business
The Display Devices business offers integrated design and manufacturing services for devices, and is committed to providing interfacedevices applying TFT-LCD, AMOLED, Microdisplay and other technologies, focusing on providing customers with high-qualitydisplay devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicle-mounted, electronic shelf label (ESL), industrial control,household medical applications, applications on wearable devices, whiteboards, tiled display screens, commercial devices, VR/ARdevices, etc.
2. The IoT Innovation business
The IoT Innovation business offers integrated design and manufacturing services for system solutions, and provides customers withcompetitive smart terminal products for TVs, monitors, laptops, tablets, low-power devices, IoT, 3D display, etc. Backed by AI andbig data technologies, it focuses on products and services combining hardware and software, providing integrated IoT solutions forsegments including smart industrial parks, smart finance, visual arts, smart public service, smart transportation, etc.
3. The Sensor business
The Sensor and Solution business offers integrated design and manufacturing services for system solutions, focuses on medicalbiological segment, smart transportation and construction displays, consumer electronics, industrial sensors and other fields, andprovides customers with design and manufacturing of sensor devices and system solution services, with specific products and solutionsincluding back plates for flat panel X-ray detectors (FPXD), digital microfluidic chips, intelligent PDLC glass and PDLC systemsolutions, fingerprint identification sensors and systems, as well as industrial sensors and solutions, among others.
4. The MLED business
MLED business renders Mini-LED backlight products with high reliability and high partition of dimming for LCD of tablet PCs,laptops, monitors, TVs, vehicles, wearable devices, etc., as well as Mini/Micro-LED display product solutions with high brightness,high reliability and high contrast for segment markets of outdoor, commercial, transparent, specialized and other displays. All theseproducts are designed and manufactured in an integrated manner.
5. The Smart Medical Engineering business
The Smart Medical Engineering business adopts the professional service model to combine technologies with medicine and integratemedicine and engineering with innovation, so as to provide people-oriented services for families, communities and hospitals. It connectstesting equipment, healthcare workers and customers through the health IoT platform to build a smart health management ecosystemwhere customers enjoy health services including prevention, treatment, therapy and nursing.Meanwhile, with a specific focus on "N", the Company provides hardware and software integrated system solutions for differentindustries, including industrial IoT, smart energy, digital art, and other fields, which can provide customers with all-dimensional, one-stop and smart new experience under IoT scenarios.III Core Competitiveness Analysis
1. Excellent management team
Since the Company implemented the strategy of "conducting overseas acquisitions and taking root in domestic markets" and entered
BOE Technology Group Co., Ltd. Annual Report 2022
the semiconductor display industry at a high starting point, it has developed into a leading enterprise in the global semiconductordisplay industry after years of robust growth. The Company's management team has solid professional knowledge, rich industryexperience, leading management level and keen strategic vision. Thanks to their efforts, the Company continued to grow stronger inthe semiconductor display field, and grasped future development opportunities to firmly promote the Company's IoT transformation,and rendered a lot of achievements. In the context of the complex global political and economic situation, and the weak consumerelectronic demand, among others, the Company's management overcame many difficulties, led the team to turn the downturn intogrowth opportunities, actively seized market opportunities, and strengthened its core capabilities. As a result, the Company led the wayin operating quality industry-wide in the year.
2. Stable market position and capability of innovation and market expansion
The Company's semiconductor display products ranked first in the world in terms of the shipment volume and shipment area throughoutthe year. Among them, the five mainstream applications of LCDs, namely, smartphones, tablet PCs, laptops, monitors, and TVs,continued to rank first globally, and the market share of flexible OLEDs for smartphones was nearly 20%.The innovation business continued to grow rapidly, making significant progress in technology and product enhancement, marketpromotion and expansion, revenue growth and value creation, etc. In 2022, the revenue of system solutions grew by over 41% year-on-year; the sensor business grew by over 41% year-on-year; the MLED business grew by over 85% year-on-year; and the smartmedical engineering business revenue grew by nearly 20% year-on-year.
3. Well-established technology R&D system and technology leadership
With the short-, medium-, and long-term technology R&D system, the Company actively laid out forward-looking technologydirections while accelerating the productisation of technology to ensure that the Company's technological strength continued to lead.In terms of patent achievements, as of the end of 2022, the Company's cumulative independent patent applications exceeded 80,000.Among the new patent applications filed in the year, over 90% were invention patents and over 33% were overseas patents, with patentapplications in the fields of flexible OLEDs, sensors, artificial intelligence and big data accounting for over 50%, covering manycountries and regions such as the U.S., Europe, Japan and Korea. The Company held a total of over 40,000 validly granted patentsworldwide and was ranked among the Top 20 Organizations Granted US Patent in the world for five consecutive years (ranked 11thin 2022). Regarding industry standards, the Chinese electronics industry standard the Optical Performance Test Methods for VehicleHead-up Displays, which the Company took the lead in formulating, was approved and released by the Ministry of Industry andInformation Technology, becoming the first authoritative test standard for the HUD (Head-Up Display) industry in China. The MNT"S+ Standard" was awarded the third-party certification by the China Optics and Optoelectronics Industry Association. The IndustrialDesign Centre won 13 design awards including two Red Dot Awards, and was qualified as a leading design institution in Beijing anda design innovation centre in Beijing. As for awards and honours, BOE's National Engineering Research Centre for New-type Displayswon the honour of only National Engineering Research Centre for New-type Displays in the display industry under the supervision ofthe National Development and Reform Commission. Also, the project of R&D and industrialisation of high refresh rate displaytechnology based on super-dimensional field technology won the First Prize of Beijing Science and Technology Progress in 2021. Interms of product and technology development, the Company was the world's first the launch a number of LCD technologies, leadingthe direction of technology upgrade. For example, TV products adopt ADS PRO technology, which achieve image quality comparableto OLED through material improvement and process design optimisation and are successfully introduced to top customers, setting offa new wave of LCD image quality revolution. The 86 inch COG AM Mini LED backlight unit won the SID DIA Award - 2022 DisplayComponent of the Year, and COG P0.9 and COB P0.9-1.5 full series products achieved mass production for several brand customers.The first launch rate of sensor device products increased rapidly, FPXD products were introduced to top customers in Europe and theU.S., and front-mounted passenger vehicle products of dimming windows were successfully introduced. The Company won the honourof MIT Technology Review's "50 Smartest Companies in the World" for its self-developed light and shadow devices. The "HumanUmbilical Cord Mesenchymal Stem Cell Membrane", the self-developed Class-1 new drug of regenerative medicine entered Phase Iclinical trials, which was the world's first mesenchymal stem cell membrane product to be approved for clinical trials.
4. Efficient management system and lean management capability
BOE Technology Group Co., Ltd. Annual Report 2022
The Company has established an operational management mechanism of "three offices and three managements" through a platform-based organisational design. An agile front office, an intensive middle office, and an efficient back office were built, and anorganisational operating mechanism with strategic management, procedure management, and performance management extendingvertically in place was constructed and continuously optimised and upgraded. The Company firmly promoted digital transformation,achieved the in-depth integration between online and offline, and continued to deepen the digital management system of "AgileResponse, Efficient Collaboration, and Full-range Access" to improve the Company's management quality and operational efficiency.BOE continuously optimised its operation mechanism, promoted the centralisation and scale of products, continued to strengthenplatform linkages and connections and maximised its advantages of intensification, continuously enhancing the efficiency of productionlines. The 8.5th generation of TFT-LCD production line in Fuzhou became the first enterprise in the Chinese Mainland to be awardedas the "lighthouse factory" in the industry; the 8.5th generation of TFT-LCD production line won a national award for benchmarkingenterprises of smart manufacturing; the Generation 8.5 TFT-LCD production line in Chongqing became the first semiconductor displaypanel manufacturer in the Chinese mainland to join SBTi.IV Core Business Analysis
1. Overview
1. The Display Devices business
The Company continued to strengthen its leading position in the semiconductor display sector, achieving operating revenue ofapproximately RMB157,949 million in this business segment during the Reporting Period. The mainstream applications of LCDscontinued to rank first globally, and the overall sales of innovative applications have increased by over 40% year-on-year. Specifically,the Company has the world's largest market share in the fields of tilted displays and vehicles. For large-size LCDs, the Company hasadopted the ADS Pro technology to create top-notch image quality comparable to that of OLEDs and has won the certification of thehighest-end flagship product technology for the industry's top customers for the first time. The shipment volume of flexible OLEDsgrew against the trend and achieved breakthroughs in the mass production of displays for vehicles and foldable laptops, and theproportion of high-end products continued to rise.
2. The IoT Innovation business
BOE has made breakthroughs in its business layout and made headway in market expansion, achieving operating revenue ofapproximately RMB27,245 million in this business segment during the Reporting Period. In terms of the smart terminal business, thesales of TV terminals grew by over 40%. TPC terminal undertook high-end flagship product projects for key customers through aninnovative ODM model. Autonomous design has been achieved for low-power EPD terminals. IoT terminals continued to exploreniche markets. The cumulative shipment volume of the first ODM projector ranked first in the Tmall "11.11" LCD projector salesranking at the first day. As for 3D terminals, the Company launched the sales of the world's first consumer-grade 11-inch 2K TNlenticular naked-eye 3D product and 27-inch LCD light valve product. Regarding the system solutions business, the "BOE IPC 2022Smart Culture and Tourism Park Industry Summit" was held in Taoxichuan, further expanding the Company's influence in the industry.Smart finance continued to boost the smart transformation of bank outlets. Concerning visual art, the light and shadow installationindependently developed and designed by the Company made a splash at the world-renowned ice and snow event, as the Companycontinued to create a typical case of the integration between technology and art. Furthermore, the "1,000 Screens in 100 Cities" projecthas been launched in over ten locations in Beijing, and the business model has been successfully replicated in many places across thecountry.
3. The Sensor business
BOE has made breakthroughs in market expansion, customer introduction, and new product R&D, achieving operating revenue ofapproximately RMB307 million in this business segment during the Reporting Period, up approximately 41.80% year-on-year. Inmedical and biological fields, the sales among top customers in Europe and the United States increased. In terms of smart window
BOE Technology Group Co., Ltd. Annual Report 2022
vehicle applications, the shipment volume of dimming windows rapidly grew, which highlighted new scenarios for dimming displays,and self-developed transparent display OLED products were shipped in bulk. Regarding architecture, the Beijing Sub-centre Library,the National Communication Centre for Science and Technology, and other landmark buildings were successfully launched. Moreover,the independent brand production line in Suzhou was smoothly commissioned.
4. The MLED business
BOE has made breakthroughs in multiple areas of products, technology, and markets, achieving operating revenue of approximatelyRMB847 million in this business segment during the Reporting Period, up 84.79% year-on-year. Full series products of direct displaysCOG P0.9, COB P0.9~1.5 achieved mass production for several brand customers, and LTPS technology achieved box lighting andwas sampled and submitted. The backlight vehicle display project was successfully imported into the 4.82-inch Mini project of domesticnew energy customers, the 2.48-inch and 5.46-inch VR projects were smoothly put into mass production and delivered, and The 86inch COG AM Mini LED backlight unit won the SID DIA Award - 2022 Display Component of the Year. For the upstream layout, theCompany efficiently integrated core ecological resources and effectively consolidated its industry-leading advantages.
5. The Smart Medical Engineering business
BOE continued to improve the digital hospital and health management professional capabilities, and achieved operating revenue ofapproximately RMB2,203 million in this business segment during the Reporting Period, up approximately 19.31% year on year. Interms of smart medical engineering, the total outpatient volume of the digital hospital has increased by over 80% year-on-year and thetotal discharge volume has increased by over 100% year-on-year. The Company has cooperated with medical schools/research institutessuch as Chengdu Medical College and the Institute of Medical Engineering of the Chinese Academy of Sciences. The regenerativemedicine heart valves have been approved for clinical trials by the State Drug Administration, and the Company was certified as a"specialised, sophisticated, distinctive, and innovative" small and medium-sized enterprise in Beijing.
6. The "N" business
Beijing Zhongxiangying Technology Co., Ltd. continued to improve the integration of software and hardware and the first traditionalclosed beta test and advanced closed beta test customers. The Chengdu Jingdian vehicle display base has achieved mass productionand will link with the upstream and downstream enterprises to form strong advantages of large-scale and intensive production. Smartenergy was launched in the green, smart, and low-carbon demonstration park project of the 13th Research Institute of China ElectronicsTechnology Group Corporation.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
| Item | 2022 | 2021 | Change (%) | ||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
| Total | 178,413,731,179.00 | 100% | 221,035,718,012.00 | 100% | -19.28% |
| By operating division | |||||
| Display Devices business | 157,949,486,684.00 | 88.53% | 203,938,462,632.00 | 92.26% | -22.55% |
| IoT Innovation business | 27,245,456,382.00 | 15.27% | 28,379,332,761.00 | 12.84% | -4.00% |
| Sensor business | 306,552,648.00 | 0.17% | 216,187,403.00 | 0.10% | 41.80% |
| MLED business | 846,820,654.00 | 0.47% | 458,249,184.00 | 0.21% | 84.79% |
| Smart Medical Engineering business | 2,203,142,669.00 | 1.23% | 1,846,551,592.00 | 0.84% | 19.31% |
| Others and offset | -10,137,727,858.00 | -5.67% | -13,803,065,560.00 | -6.25% | -26.55% |
| By product category | |||||
BOE Technology Group Co., Ltd. Annual Report 2022
| Display Devices business | 157,949,486,684.00 | 88.53% | 203,938,462,632.00 | 92.26% | -22.55% |
| IoT Innovation business | 27,245,456,382.00 | 15.27% | 28,379,332,761.00 | 12.84% | -4.00% |
| Sensor business | 306,552,648.00 | 0.17% | 216,187,403.00 | 0.10% | 41.80% |
| MLED business | 846,820,654.00 | 0.47% | 458,249,184.00 | 0.21% | 84.79% |
| Smart Medical Engineering business | 2,203,142,669.00 | 1.23% | 1,846,551,592.00 | 0.84% | 19.31% |
| Others and offset | -10,137,727,858.00 | -5.67% | -13,803,065,560.00 | -6.25% | -26.55% |
| By operating segment | |||||
| Mainland China | 74,124,463,690.00 | 41.54% | 95,015,382,254.00 | 42.99% | -21.99% |
| Other regions in Asia | 63,351,896,814.00 | 35.51% | 96,677,882,907.00 | 43.74% | -34.47% |
| Europe | 5,745,261,109.00 | 3.22% | 5,478,685,804.00 | 2.48% | 4.87% |
| America | 35,121,526,346.00 | 19.69% | 23,770,495,392.00 | 10.75% | 47.75% |
| Other regions | 70,583,220.00 | 0.04% | 93,271,655.00 | 0.04% | -24.33% |
| By marketing model | |||||
| Direct sales | 178,413,731,179.00 | 100.00% | 221,035,718,012.00 | 100.00% | -19.28% |
(2) Operating Division, Product Category, Operating Segment or Marketing Model Contributing over 10%of Operating Revenue or Operating Profit? Applicable □ Not applicable
Unit: RMB
| Item | Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) |
| By operating division | ||||||
| Display Devices business | 157,949,486,684.00 | 145,362,979,605.00 | 7.97% | -22.55% | -3.20% | -18.40% |
| IoT Innovation business | 27,245,456,382.00 | 24,666,540,176.00 | 9.47% | -4.00% | -2.00% | -1.84% |
| By product category | ||||||
| Display Devices business | 157,949,486,684.00 | 145,362,979,605.00 | 7.97% | -22.55% | -3.20% | -18.40% |
| IoT Innovation business | 27,245,456,382.00 | 24,666,540,176.00 | 9.47% | -4.00% | -2.00% | -1.84% |
| By operating segment | ||||||
| Mainland China | 74,124,463,690.00 | 64,665,209,361.00 | 12.76% | -21.99% | -3.47% | -16.74% |
| Other regions in Asia | 63,351,896,814.00 | 55,885,057,929.00 | 11.79% | -34.47% | -18.35% | -17.41% |
| America | 35,121,526,346.00 | 31,887,489,254.00 | 9.21% | 47.75% | 84.73% | -18.17% |
| By marketing model | ||||||
| Direct sales | 178,413,731,179.00 | 157,530,566,152.00 | 11.70% | -19.28% | 0.15% | -17.14% |
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 | 2022 | 2021 | Change (%) |
| TFT-LCD | Sales volume | K ㎡ | 76,039.00 | 75,969.00 | 0.09% |
| Output | K ㎡ | 75,620.00 | 79,091.00 | -4.39% | |
| Inventory | K ㎡ | 4,983.00 | 6,000.00 | -16.95% | |
| AMOLED | Sales volume | K ㎡ | 1,125.00 | 836.00 | 34.61% |
BOE Technology Group Co., Ltd. Annual Report 2022
| Output | K ㎡ | 1,157.00 | 855.00 | 35.44% |
| Inventory | K ㎡ | 108.00 | 62.00 | 74.84% |
Reason for any over 30% YoY movements in the data above? Applicable □ Not applicableThe sales volume, output and inventory of AMOLED increased by over 30% in 2022 as compared to last year primarily due to thetransfer of new production line to fixed assets, which provided additional production capacity.
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□ Applicable ? Not applicable
(5) Breakdown of Cost of Sales
By operating division and product category
Unit: RMB
| By operating division | Item | 2022 | 2021 | Change (%) | ||
| Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | |||
| Display Devices business | Materials, labor costs, depreciation, etc. | 145,362,979,605.00 | 92.28% | 150,165,560,834.00 | 95.47% | -3.20% |
| IoT Innovation business | Materials, labor costs, depreciation, etc. | 24,666,540,176.00 | 15.66% | 25,169,654,631.00 | 16.00% | -2.00% |
| Sensor business | Materials, labor costs, depreciation, etc. | 241,869,035.00 | 0.15% | 166,800,549.00 | 0.11% | 45.00% |
| MLED business | Materials, labor costs, depreciation, etc. | 864,618,690.00 | 0.55% | 444,702,497.00 | 0.28% | 94.43% |
| Smart Medical Engineering business | Materials, labor costs, depreciation, etc. | 1,809,802,648.00 | 1.15% | 1,370,997,955.00 | 0.87% | 32.01% |
| Others and offset | Materials, labor costs, depreciation, etc. | -15,415,244,002.00 | -9.79% | -20,018,890,685.00 | -12.73% | -23.00% |
Unit: RMB
| By product category | Item | 2022 | 2021 | Change (%) | ||
| Cost of sales | As % of total cost of sales (%) | Cost of sales | As % of total cost of sales (%) | |||
| Display Devices business | Materials, labor costs, depreciation, etc. | 145,362,979,605.00 | 92.28% | 150,165,560,834.00 | 95.47% | -3.20% |
| IoT Innovation business | Materials, labor costs, depreciation, etc. | 24,666,540,176.00 | 15.66% | 25,169,654,631.00 | 16.00% | -2.00% |
| Sensor business | Materials, labor costs, depreciation, etc. | 241,869,035.00 | 0.15% | 166,800,549.00 | 0.11% | 45.00% |
| MLED business | Materials, labor costs, depreciation, etc. | 864,618,690.00 | 0.55% | 444,702,497.00 | 0.28% | 94.43% |
| Smart Medical Engineering business | Materials, labor costs, depreciation, etc. | 1,809,802,648.00 | 1.15% | 1,370,997,955.00 | 0.87% | 32.01% |
| Others and offset | Materials, labor costs, depreciation, etc. | -15,415,244,002.00 | -9.79% | -20,018,890,685.00 | -12.73% | -23.00% |
Note:
BOE Technology Group Co., Ltd. Annual Report 2022
The major cost of sales items such as materials and depreciation are considered as business secrets. In order to avoid the leakage ofthese secrets, which could result in damage to the interests of the Company and its investors, cost of sales is only presented with respectto the industry segment to which the Company belongs in the table above.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
? Yes □ NoThe changes in the scope of consolidated financial statements for the Reporting Period had no significant impact on segment data.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable ? Not applicable
(8) Major Customers and Suppliers
Major customers:
| Total sales to top five customers (RMB) | 72,684,539,035.00 |
| Total sales to top five customers as % of total sales of the Reporting Period (%) | 40.73% |
| 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 | 28,511,004,302.00 | 15.98% |
| 2 | Customer B | 11,260,786,611.00 | 6.31% |
| 3 | Customer C | 11,052,550,583.00 | 6.19% |
| 4 | Customer D | 11,045,660,610.00 | 6.19% |
| 5 | Customer E | 10,814,536,929.00 | 6.06% |
| Total | -- | 72,684,539,035.00 | 40.73% |
Other information about major customers:
□ Applicable ? Not applicable
Major suppliers:
| Total purchases from top five suppliers (RMB) | 24,841,912,420.00 |
| Total purchases from top five suppliers as % of total purchases of the Reporting Period (%) | 20.16% |
| 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 | 7,160,793,040.00 | 5.81% |
| 2 | Supplier B | 5,514,870,912.00 | 4.47% |
| 3 | Supplier C | 4,646,600,343.00 | 3.77% |
| 4 | Supplier D | 3,852,546,689.00 | 3.13% |
| 5 | Supplier E | 3,667,101,436.00 | 2.98% |
| Total | -- | 24,841,912,420.00 | 20.16% |
Other information about major suppliers:
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
3. Expense
Unit: RMB
| Item | 2022 | 2021 | Change (%) | Reason for any significant change |
| Selling expense | 4,233,290,297.00 | 5,484,589,978.00 | -22.81% | Decreased sales |
| Administrative expense | 6,247,637,006.00 | 6,693,373,589.00 | -6.66% | N/A |
| Finance costs | 2,445,130,575.00 | 3,682,379,202.00 | -33.60% | Decreased interest expense |
| R&D expense | 11,100,768,677.00 | 10,616,426,327.00 | 4.56% | N/A |
4. R&D Investments
? Applicable □ Not applicable
| Names of main R&D projects | Project objectives | Project progress | Objectives to be achieved | Expected impact on the future development of the Company |
| Taishan Project | To produce LCDs with an image quality comparable to that of OLEDs and a cost lower than that of OLEDs and enhance BOE's competitiveness in high-end products. | Under mass production. | 1. To increase the static contrast ratio of the product to 2500:1 and reduce the reflectivity to 1.2%. 2. To improve colour shift and increase the colour gamut to DCI P3 99.5%. 3. To achieve mass production of high-end flagship models. | It is expected to achieve a platform-based leap in technological capability and become a mainstream technology for display products and a strategic leader for product upgrading. |
| Projector light engine system | To achieve high specification and low cost through transmission rate enhancement and light path design and optimisation based on the technical advantage of the projector's core display device. | Under mass production. | To achieve leading specifications of optical engines in the off-axis ratio, brightness, uniformity, colour gamut, throw ratio and sharpness and mass production of optical engine systems for vertical/horizontal hermetic projectors. | The self-developed projector light engine can play an important role in leading and promoting the technical parameters of panels, light engines and the whole device, which is conducive to enhancing BOE' brand influence and capturing a sizable projector market share. |
| High refresh rate | To achieve a high refresh rate with advanced HSR and EPQ technology in combination with fast response technology to improve the competitiveness of electronic sports products. | Under mass production. | 1. To achieve mass production of several high-end gaming flagship products while achieving the technology reserve of a high refresh rate of 500+Hz for medium- and large-size products. 2. To achieve extremely fast response within 1ms. | The relevant technical achievements has won the first prize of Beijing Science and Technology Progress Award. Relying on BOE's advanced high refresh rate technology, it will achieve the ultimate smoothness of electronic sports and gaming, which can capture the high-end electronic sports market and increase profitability. |
| Oxide | Oxide has the advantages of high mobility and low leakage current. The objective is to achieve overall improvement in product performance such as a high refresh rate and a low frequency by building | In progress. | 1. To improve mobility and achieve mass production of high-mobility target materials. 2. To achieve the extreme low frequency specification of 10Hz and reduce the power consumption of products. | The enhancement of Oxide process layout and capability can significantly improve product performance in high frequency, low frequency, narrow bezel and high transparency. Compared with |
BOE Technology Group Co., Ltd. Annual Report 2022
| advanced Oxide process capability. | the LTPS process, it has the competitive advantage of low costs, which will effectively enhance the competitiveness of BOE products. | |||
| Peep-proof | To realise switchable peep-proof technology for multiple products to meet users' needs for privacy protection and enhance product competitiveness. | In progress. | To realise four-sided peep-proof switchable and partial peep-proof technologies and imported them laptops, monitors and vehicle products. | To integrate more functions into display products to meet customer needs and apply the technology to the laptops, vehicle displays, monitors and other areas to capture a greater market share. |
| In-box heating | To realise the fast start-up of display products and improved LCD response speed in cold temperatures in extremely cold regions through the embedded heating module within Cell AA to improve safety performance. | Under mass production. | To realise controllable temperature rise, establish the temperature rise uniformity simulation model and achieve mass production of electronic rear view mirrors and other vehicle products. | It is expected to break through the limitations of low-temperature display and achieve the integration of more functions into the screen, so as to enhance the added value of the product, attract customers' attention and seize the low-temperature scenario market. |
| Q9 next generation device development technology | To develop devices of high efficiency and long life materials. | Under mass production. | The Q9 light emitting device screen consumes 15% less power than the previous generation Q8, has a 20% increase in peak brightness, an increase in DCI-P3 colour gamut from 110% to 115% and a 10% increase in lifetime and limits harmful blue light to below 6.0%. | The technology has been imported into several products to enhance the basic specifications for flexible screens, which meets customers' requirements for product specification and captures the market volume of mid- to high-end models. |
| Vehicle C-shaped convex centre display | To meet the demand for cooler and more technologically advanced interior styling for luxury flagship models and highlight the multiform display feature of flexible OLEDs. | Customer products have been launched. | 1. To realise the C-shaped convex fixed curvature form. 2. To achieve the development of C-shaped convex cover glass. 3. To achieve the development of C-shaped convex module stacking structure. 4. To achieve the development of the C-shaped convex module lamination process. | 1. It is expected to highlight the characteristics of flexible OLEDs, expand the application scenario of vehicle displays and strive for a larger vehicle display market; 2. Flexible vehicle curved forms can expand the customer base for high-end vehicle displays and enhance the added value of products. |
| Development of low-temperature polycrystalline oxide (LTPO) autonomous pixel products | To enhance the battery life of the whole device and optimise the display through low-frequency technology. | The product client has been launched. | 1. To achieve a 1Hz low refresh rate display and save power consumption. 2. The flickering will be less than -50dB, invisible to the naked eye. | The product has been launched on the Watch3 series. It promotes the equipment of LTPO technology in wearable flagship products and enhances the technological competitiveness of the product. |
| EES light efficiency enhancement technology | To improve the efficiency of light output on the front side of OLED panels. | Under mass production. | To improve light output efficiency by 8%. | This technology has been imported into Honor's customer product Magic Vs to enhance the competitiveness of the product. |
| Developm | To develop a D-IC with ultra- | Product | To meet the latest functional | It validates single IC design |
BOE Technology Group Co., Ltd. Annual Report 2022
| ent of single IC drive technology for ultra-high pixels per inch (PPI) foldable phones | high PPI to enable a single IC to drive a large foldable phone with a high refresh rate. At the same time, it is compatible with the requirements of high-end tablet PCs and saves IC development and procurement costs. | import in progress. | requirements of customers. To complete product development and validation and successfully import the technology into product development. | capabilities and module production processes. It is expected to reserve good IC resources for the subsequent expanding foldable screen market and improve the speed of market response. |
| Development of the flexible foldable product with an R1.5mm in-fold droplet | To further enhance the bending competitiveness of foldable products and reduce the gap between the screens of the foldable form of the whole device. | Under mass production. | To achieve an in-fold bend droplet radius of R1.5mm by adjusting the stacking structure to match the bending stress. | This technology has been imported into Honor's customer product Magic V & Vs to enhance the competitiveness of products and BOE's market share in the foldable product market. |
| Development of LTPS P0.9 products | To make breakthroughs in Mini/Micro LED display technology and enhance product specifications in the commercial display sector. | Under mass production. | To achieve mass production of products, meet the requirements of ultra-high image quality, low power consumption and healthy eye care and lay the foundation for small-spacing and Micro LED displays. | It is expected to realise BOE's technological breakthrough in the field of Mini/Micro displays, which can penetrate into the field of consumer electronics, such as vehicle displays, TVs and other display products and will cover all Pitch products. To accelerate BOE's all-round layout of Mini/Micro display products. |
| Development of COB products | 1. To complete BOE's layout of all Pitch products in the COB product line. 2. To achieve the technological solution to the best price-performance ratio for COB products. | P1.5 products: Under mass production. P1.25 products: Under mass production. P0.9 products: Under mass production. | 1. To improve the COB product line and realise low-cost solutions for large sizes. 2. To improve the optical specifications. | To open up the COB small-spacing product line, improve BOE's product lines, lay a solid foundation for the Company's next generation products and help seize the COB market share. |
| Medium- and large-size COG Backlight products | 1. To create Gaming MNT products with ultra-high brightness, ultra-high partitioning and thinness. 2. Mini LED glass-based tilted display products make breakthroughs in the application of high-end models. | MNT COG products: Under mass production. 55" COG Mini LED tilted display products: In progress. | It provides customers with ultra-high specification products with 1K/2K/4K-grade partitioning, a peak brightness up to 2000nits, ultra-high reliability and a million-grade contrast ratio, entering the high-end market of MNT Gaming and tilted displays. | The MNT Mini LED gaming products are launched to match the high-end needs of the electronic sports market. They are expected to gain recognition from international top customers and enhance BOE's influence in the field of glass-based Mini LED displays. |
| Small- and medium-size backlight products | 1. To achieve product specifications of ultra-high partitioning, ultra-high brightness and an ultra-high contrast ratio for high-end gaming laptops to meet the | 16" Mini LED products: Under mass production. 2.48" | 1. NB products obtain the VESA HDR1000 certification and achieve product specifications of ultra-high partitioning, ultra-high brightness and an ultra-high contrast ratio for gaming laptops | It marks a breakthrough in small- and medium-size technology and offers the advantages of energy saving, thinness, wide colour gamut, high contrast ratio and fine |
BOE Technology Group Co., Ltd. Annual Report 2022
| demand of top customers and bring ultimate experience to gaming laptop users. 2. To create VR products with high brightness and a high contrast ratio through high partitioning design. | products: Under mass production. | to bring ultimate experience to gaming laptop users. 2. To realise the ultra-high contrast ratio and low latency of LCD VR products. | dynamic partitioning while retaining the advantages of LCD products. | |
| Mini LED TV development project | To complete the development of Mini LED TV terminal products to enrich the high-end TV terminal product line category. | The product client has been launched. | To achieve the development and mass production of 100-grade partitioning LD panels and backlight technology with high brightness, ultra thinness and a wide colour gamut. | It will be the first Mini LED TV terminal product, complete the technology development reserve of multi-partition LD panels and enhance the market competitiveness of TV terminal products. |
| 4K144Hz dual Scaler IC display technology development | To complete the dual Scaler design with DSC data compression technology to solve the problem of insufficient high frequency width at 4K 144Hz. | The product client has been launched. | 4K 144Hz, dual Scaler IC design; to complete the development of local backlight adjustment design, flicker-free design, adaptive synchronisation and other functions. | The design of dual Scalar ICs will be successfully completed with a 4K 144Hz high bandwidth output, which will make the Company a market technology leader, add to the competitiveness of the Company's display technology and improve customer experience while boosting product sales. |
| Development of high-end ultra-clear thin and light business tablet PC products | To increase the resolution, refresh rate and number of power amplifier drives, improve the battery life of the whole device, achieve ultra thinness and create premium sound with surrounding sound. | The product client has been launched. | 1. To create an ultra-clear, high-refresh-rate eye-protection full screen. 2. To realise premium sound with eight power amplifier drives and eight speakers to produce surrounding sound. 3. A 10,050mAh battery for long all-weather life. 4. Extreme lightness and thinness of 6.49mm and a brand new tactile quality. | The project provides customers with mature product design and process solutions, makes new innovations in terms of schedule, technology, processes and economic efficiency, and provides valuable guidelines for subsequent project development. |
| Development of an ultra-quiet, long-battery-life, thin and light laptop | To complete BOE's first independent development of a whole laptop and achieve mass production. | Under mass production. | 1. It is BOE's first whole laptop self-developed productisation project, with a new Intel platform with a 6W CPU and a metal battery cover. 2. A laptop with a 14" 16:10 narrow bezel, thinness and lightness, ultra price-performance ratio and a thickness of only 17.5mm. | To achieve mass production of self-developed laptops as planned by the development project, generate revenue, and contribute to the steady growth of the laptop terminal product line. |
| Development of meeting/education device platform products | To develop whiteboard education platform products with multi-compatible structure (dual system, Infrared/capacitive touch compatible) to lay the product foundation for the meeting device and education device market and support market expansion. | R&D completed. | By developing independent platform products with compatibility, the Company will launch a full set of whole device solutions including independent mould platforms, self-developed boards, and compatible touch solutions to complete the 65/75/86-inch product layout for the mainstream market and seize the market. | By building the mainstream size platform, it will promote the mainstream products and technology realisation of the whole device business in the field, establish the Company's good image as a technological brand and enhance product competitiveness and revenue. |
BOE Technology Group Co., Ltd. Annual Report 2022
| Smart student card development | Innovative products for the education market segmentation. | Under mass production. | The 1.54" innovative product is a electronic paper student card with low power consumption, into which the home-school smart terminal system is integrated. The product adopts eye care technology, and its battery life is significantly longer than that of the LCD display. | To expand the innovative business market, lay out the education market and provide new products for innovative product business breakthroughs in 2023. |
| Development project of multi-person simultaneous free moving viewing of naked-eye 3D technology | Naked-eye 3D technology is more and more widely used. In response to the industry challenges such as dizziness caused by the display of current industry products and a fixed viewing distance, the Company aims to achieve purely independent research and development of 3D technology, solve the problems and improve the 3D effect and user experience. | R&D completed. | To realise the completely independent research and development of 3D core technology, and solve the industry challenges such as a limited viewing distance, support multiple-person free moving viewing, and create naked-eye 3D products with high definition, high image quality, high immersion and excellent free viewing experience. | Purely self-developed technology can effectively enhances BOE's brand value. It supports multi-person simultaneous free moving viewing with a large free movement range. Since users can experience viewing without dizziness, the technology can be widely used in media promotion, exhibition display, business meetings, audio and video entertainment and other scenarios. |
| 2.0 development of the integrated management platform for smart outlets | Focusing on the digital and smart transformation of bank outlets, the Company provides digital transformation solutions and services for banking customers with the SaaS version of the integrated management platform for smart outlets as the core, in combination with artificial intelligence, big data, cloud computing and other technologies and with multi-modal interactive terminals as the carrier. | Launched. | To enrich basic functional innovation and meet the needs of customers in the segmentation. To optimise the three-tier management function of banks covering the head office, branches, and sub-branches, and enhance the following six digital capabilities of banks during the whole procedure of customer service: Deepening customers' impression, enhancing customer experiences, utilising big data, conducting precision marketing, connecting online and offline services, and strengthening comprehensive operations and management. | This platform provides bank outlets with comprehensive digital service capabilities, through intelligent systems and products integration soft and hard strengths. It is an implementation of the strategy of "Screen-Connected IoT" in the financial industry, designated to enhance BOE's competitiveness in digital solutions in the financial industry and deepen brand influences. |
| Park operation service platform development | Guided by the concept of "smart management", the project will penetrate smart services into all aspects of the park's operation services, use big data to guide the park's operation services for enterprises and visitors, help the enterprises in the park to precisely expand their customer bases and improve the park's monetisation capacity. | In progress. | To provide solutions covering multiple scenarios such as cultural tourism parks, office parks and campuses, and build a park operation service platform based on "big data + AI" capabilities, achieve smart services such as investment attraction operation, scenic spot operation, parking lot operation, office incubation, campus services and marketing promotion, realise the convergence and sharing of park resources and broaden the width of park services. | Incorporating BOE's practical experience in the park operation industry, the project will create a sustainable, iterative and efficient operation management system to enhance the value chain of BOE's services in the park industry and create a new business growth engine. |
| Developm | To build the Company's own | Launched. | 24/7 continuous operation, | The overseas digital signage |
BOE Technology Group Co., Ltd. Annual Report 2022
| ent of BOE overseas digital signage | brand terminal products in multiple sizes which meet the core display performance requirements of multiple scenarios and adapt to the open software ecosystem series to achieve high price-performance ratio and meet the multi-scenario application needs of overseas customers. | maximum brightness of 500nit, 50,000 hours of backlight life, certified by overseas sales countries and regions. | project product is BOE's first own-brand whole device product for overseas market, helping BOE to develop overseas business. | |
| Development of natural writing technology | To develop smooth, smart and aesthetically pleasing handwriting interaction technology for touch screen products to enhance the market application potential of screen products. | Under mass production. | To accomplish a realistic and smooth simulation of a wide range of common pen shapes and significantly reduce writing latency on the touch screen. To enable accurate and fast recognition of handwritten content such as Chinese, English, formulas and graphics. To significantly improve the handwriting interaction capability of ink screen tablet PCs, meeting all-in-one devices and other products. | It realises BOE's technological innovation in the field of touch screen writing and expands the use scenarios of touch terminal products. By deepening integration with terminal hardware, it will continuously improve the use experience and form the core competitiveness of the products. |
| Development of BOE Share technology | To meet the demand for interconnection between smart terminal devices such as all-in-one devices, TVs, business displays and personal devices, and build multi-screen linkage, multi-screen control, file sharing and other scenario application scenarios with BOE display devices as the core to enhance the competitiveness of BOE terminal products. | Under mass production. | To realise multi-screen mutual casting, multi-person annotation, multi-screen control, AI screen casting, etc. in multi-screen scenarios. To launch all-in-one devices and commercial display products to create multi-screen linkage for meeting scenarios, education scenarios and home scenarios. | To realise scenarios to launch the "Screen-Connected IoT" strategy, empower BOE's multi-category smart terminal products, achieve multi-screen interaction and enhance the competitiveness of products. |
| Development of large-size FPXD technology | To achieve integrated extra large-size FPXD imaging through Mask tilting. | Under mass production. | To achieve large-size FPXD imaging by tilting exposure without the need for tilting multiple FPXD backplanes together. | The Company has already mass-produced two models and is currently developing five products. The Company will become a manufacturer with large-size tilting capability in the market, preparing the Company's products for occupying the large-size display market. |
| Development of flexible smart window technology | To achieve the productisation of flexible passenger vehicle sunroofs. | In progress. | To productise flexible dimming films and apply them to dimming sunroofs for passenger vehicles. | To boosting the Company's revenue, enhance technological barriers, increase technological competitiveness and broaden product lines. |
| Development of security biometric sensor | To develop a thin, light and portable large-area glass-based TFT optical fingerprint capture device with glare resistance. | In progress. | To complete product development and certification and achieve mass production and delivery. | To improve the visibility of the Company's fingerprint and palmprint products and provide a benchmark for the launch of subsequent large-area |
BOE Technology Group Co., Ltd. Annual Report 2022
| technology | fingerprint and palmprint products. | |||
| Smart window dimming solutions | To develop a set of dimming system products applied to architecture, traffic and other scenarios and create future technology-based glass window products with ambient light adaption. | Under development. | To completed the research and development and commercialisation of new window dimming system products. To replace the purely transparent function of traditional glass windows, increase the comfort of users and comprehensively upgrade the window technology for buildings and traffic. | The new generation of window dimming system products are a technological innovation and upgrade for the transparent function of traditional building and vehicle glass windows. The products have business value such as stock market and new market applications with a huge market size and can enhance the Company's revenue and create potential market opportunities. |
| Integrated dimming solutions for transparent displays | To develop a set of systematic products combining transparent OLED displays with dimming glass, which can be applied to new technology interactive windows of transparent display in various environments. | Development completed, in commercial trials. | To complete the leading technology product that integrates transparent display and dimming and realise technology transparent information interactive window products which can be applied in various environments. | To complete the production of information interaction products integrating transparent display, dimming and touch control, help the Company's product layout of light self-adaptive information interaction window products in future self-driving cars, high-tech information office and other fields and expand the "Screen-Connected IoT" industry market. |
Particulars about R&D personnel:
| Item | 2022 | 2021 | Change (%) |
| Number of R&D personnel | 21,075 | 19,708 | 6.94% |
| R&D personnel as % of total employees | 23.86% | 24.80% | -0.94% |
| Educational background of R&D personnel | |||
| Bachelor’s degree | 12,835 | 11,780 | 8.96% |
| Master’s degree | 6,297 | 6,035 | 4.34% |
| Age structure of R&D personnel | |||
| Below 30 | 9,513 | 9,335 | 1.91% |
| 30~40 | 10,046 | 9,530 | 5.41% |
Particulars about R&D investments:
| Item | 2022 | 2021 | Change (%) |
| R&D investments (RMB) | 12,601,880,481.00 | 12,442,970,747.00 | 1.28% |
| R&D investments as % of operating revenue | 7.06% | 5.63% | 1.43% |
| Capitalized R&D investments (RMB) | 2,036,264,271.00 | 2,067,727,404.00 | -1.52% |
| Capitalized R&D investments as % of total R&D investments | 16.16% | 16.62% | -0.46% |
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable ? Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable ? Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
5. Cash Flows
Unit: RMB
| Item | 2022 | 2021 | Change (%) |
| Subtotal of cash generated from operating activities | 217,984,263,980.00 | 240,938,386,536.00 | -9.53% |
| Subtotal of cash used in operating activities | 174,962,296,675.00 | 178,239,697,980.00 | -1.84% |
| Net cash generated from/used in operating activities | 43,021,967,305.00 | 62,698,688,556.00 | -31.38% |
| Subtotal of cash generated from investing activities | 85,775,713,322.00 | 36,759,481,145.00 | 133.34% |
| Subtotal of cash used in investing activities | 121,748,512,196.00 | 77,900,242,163.00 | 56.29% |
| Net cash generated from/used in investing activities | -35,972,798,874.00 | -41,140,761,018.00 | 12.56% |
| Subtotal of cash generated from financing activities | 54,885,926,217.00 | 63,655,025,447.00 | -13.78% |
| Subtotal of cash used in financing activities | 76,059,178,079.00 | 75,836,895,000.00 | 0.29% |
| Net cash generated from/used in financing activities | -21,173,251,862.00 | -12,181,869,553.00 | -73.81% |
| Net increase in cash and cash equivalents | -12,241,448,319.00 | 8,558,749,712.00 | -243.03% |
Explanation of why any of the data above varies significantly:
? Applicable □ Not applicableNet cash generated from operating activities decreased 31.38% year on year, primarily driven by the decreased sales.Net cash generated from financing activities decreased 73.81% year on year, primarily driven by that there was no private placementof A-stock shares during the Reporting Period.Net increase in cash and cash equivalents decreased 243.03% year on year, primarily driven by the decreased sales and that there wasno private placement of A-stock shares during the Reporting Period.
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
V Analysis of Non-Core Businesses? Applicable □ Not applicable
Unit: RMB
| Item | Amount | As % of total profit | Source/Reason | Recurrent or not |
| Return on investment | 6,094,267,884.00 | 11898.47% | Due to cease of control of SES-imagotag, Gain from remeasurement of fair value of remaining shares in the reporting period. | Not |
| Gain/loss on changes in fair value | 159,344,584.00 | 311.10% | N/A | Not |
| Asset impairments | -7,304,471,630.00 | -14261.27% | Inventory valuation allowances established based on market conditions | Not |
| Non-operating income | 163,242,857.00 | 318.72% | N/A | Not |
| Non-operating expense | 87,249,543.00 | 170.35% | N/A | Not |
BOE Technology Group Co., Ltd. Annual Report 2022
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
| Item | 31 December 2022 | 1 January 2022 | Change in percentage (%) | Reason for any significant change | ||
| Amount | As a % of total assets | Amount | As a % of total assets | |||
| Monetary assets | 68,800,307,369.00 | 16.36% | 80,986,835,088.00 | 17.99% | -1.63% | N/A |
| Accounts receivable | 28,203,647,569.00 | 6.71% | 35,503,414,820.00 | 7.89% | -1.18% | N/A |
| Contract assets | 71,636,461.00 | 0.02% | 75,698,324.00 | 0.02% | 0.00% | N/A |
| Inventories | 22,787,814,225.00 | 5.42% | 27,805,161,436.00 | 6.18% | -0.76% | N/A |
| Investment property | 1,122,025,138.00 | 0.27% | 1,158,365,401.00 | 0.26% | 0.01% | N/A |
| Long-term equity investments | 12,421,878,851.00 | 2.95% | 6,040,948,317.00 | 1.34% | 1.61% | N/A |
| Fixed assets | 205,987,050,430.00 | 48.98% | 227,141,366,884.00 | 50.45% | -1.47% | N/A |
| Construction in progress | 43,386,134,668.00 | 10.32% | 32,099,711,879.00 | 7.13% | 3.19% | Increased investments in new constructions |
| Right-of-use assets | 687,120,946.00 | 0.16% | 753,164,237.00 | 0.17% | -0.01% | N/A |
| Short-term borrowings | 2,373,938,871.00 | 0.56% | 2,072,057,332.00 | 0.46% | 0.10% | N/A |
| Contract liabilities | 2,411,717,792.00 | 0.57% | 3,765,081,554.00 | 0.84% | -0.27% | N/A |
| Long-term borrowings | 123,143,479,690.00 | 29.28% | 116,078,666,587.00 | 25.78% | 3.50% | N/A |
| Lease liabilities | 538,586,010.00 | 0.13% | 669,130,264.00 | 0.15% | -0.02% | N/A |
Indicate by tick mark whether overseas assets account for a larger proportion of total assets.
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
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) | 10,635,068,300.00 | 159,344,584.00 | 0.00 | 0.00 | 91,514,151,283.00 | 82,907,879,110.00 | 0.00 | 19,210,961,617.00 |
| 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 | 519,088,146.00 | 0.00 | -255,623,541.00 | 0.00 | 4,470,719.00 | 10,091,839.00 | 0.00 | 483,060,306.00 |
| Subtotal of financial assets | 11,154,156,446.00 | 159,344,584.00 | -255,623,541.00 | 0.00 | 91,518,622,002.00 | 82,917,970,949.00 | 0.00 | 19,694,021,923.00 |
| 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 | 11,154,156,446.00 | 159,344,584.00 | -255,623,541.00 | 0.00 | 91,518,622,002.00 | 82,917,970,949.00 | 0.00 | 19,694,021,923.00 |
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Contents of other changes:
N/ASignificant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes ? No
BOE Technology Group Co., Ltd. Annual Report 2022
3. Restricted Asset Rights as at the Period-End
Unit: RMB
| Item | Ending carrying value | Reason for restriction |
| Monetary assets | 4,027,358,544.00 | Mainly security deposits, and amounts put in pledge for the issuance of notes payable |
| Notes receivable | 28,239,380.00 | Endorsed and transferred with right of recourse, and those put in pledge for the issuance of notes payable |
| Inventories | 0.00 | N/A |
| Fixed assets | 140,418,857,377.00 | As collateral for guarantee |
| Intangible assets | 1,461,125,786.00 | As collateral for guarantee |
| Construction in progress | 2,051,101,917.00 | As collateral for guarantee |
| Investment property | 39,718,001.00 | As collateral for guarantee |
| Total | 148,026,401,005.00 | -- |
VII Investments Made
1. Total Investment Amount
? Applicable □ Not applicable
| Investments made in this Reporting Period (RMB) | Investments made in the prior year (RMB) | Change (%) |
| 7,529,231,984.00 | 2,501,899,622.00 | 200.94% |
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable ? Not applicable
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
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 | 56,638,836.00 | 0.00 | -36,545,996.00 | 0.00 | 0.00 | 206,209.00 | 53,614,432.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | HK01963 | Bank of Chongqing | 120,084,375.00 | Fair value method | 91,875,688.00 | 0.00 | -28,484,225.00 | 0.00 | 0.00 | 9,918,634.00 | 91,600,150.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | HK01518 | New Century Healthcare | 140,848,850.00 | Fair value method | 19,810,485.00 | 0.00 | -131,750,842.00 | 0.00 | 0.00 | 0.00 | 9,098,008.00 | Other equity instrument investment | Self-funded |
| Domestic/overseas stock | SZ002841 | CVTE | 299,999,939.00 | Fair value method | 0.00 | -43,474,156.00 | 0.00 | 299,999,939.00 | 0.00 | -43,474,156.00 | 256,525,783.00 | Held-for-trading financial assets | Self-funded |
| Other securities investments held at the period-end | 0.00 | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | ||
| Total | 651,093,592.00 | -- | 168,325,009.00 | -43,474,156 | -196,781,06 | 299,999,939.00 | 0.00 | -33,349,313 | 410,838,373.00 | -- | -- | ||
BOE Technology Group Co., Ltd. Annual Report 2022
| .00 | 3.00 | .00 |
(2) Investments in Derivative Financial Instruments
□ Applicable ? Not applicable
No such cases in the Reporting Period.Note: The Company sold a number of shares in relation to the derivative investments in the Reporting Period, thereby ceasing control. With these investments excluded from the consolidatedfinancial statements, the Company’s derivative investment amount stood at nil at the end of the Reporting Period.
5. Use of Funds Raised
? Applicable □ Not applicable
(1) Overall Usage of Funds Raised
? Applicable □ Not applicable
Unit: RMB’0,000
| Year | Way of raising | Total funds raised | Total funds used in the Current Period | Accumulative fund used | Total funds with usage changed | Accumulative funds with usage changed | Proportion of accumulative funds with usage changed | Total unused funds | The usage and destination of unused funds | Amount of funds raised idle for over two years |
| 2021 | Private placement of stocks | 2,033,260 | 117,277 | 1,867,094 | 0 | 0 | 0.00% | 166,166 | Continuously used for the construction of equity investment project | 0 |
| 2022 | Renewable corporate bonds | 200,000 | 200,000 | 200,000 | 0 | 0 | 0.00% | 0 | N/A | 0 |
| Total | -- | 2,233,260 | 317,277 | 2,067,094 | 0 | 0 | 0.00% | 166,166 | -- | 0 |
| Explanation of overall usage of funds raised | ||||||||||
| The Company raised RMB2,000,000,000 from the above-mentioned offering of perpetual bonds during 2022, and the net proceeds exclusive of issuance costs were RMB1,988,880,000, which would be used for capital increase to subsidiary and replenishing the working capital. The raised funds have been used up, conforming to the provisions of the prospectus. The cumulative amount of raised funds through private placement of stocks was RMB20,332,599,995.83, and the net proceeds after deducting issuance costs were RMB19,869,507,400. In the | ||||||||||
BOE Technology Group Co., Ltd. Annual Report 2022
Reporting Period, the raised funds were used according to project investment plans, conforming to the relevant promise.
(2) Commitment Projects of Fund Raised
? Applicable □ Not applicable
Unit: RMB’0,000
| Committed investment project and super raise fund arrangement | Changed or not (including partial 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 | ||||||||||
| Repaying the loans from Fuzhou Urban Construction Investment Group Co., Ltd. | No | 300,000 | 300,000 | 0 | 300,000 | 100.00% | N/A | N/A | No | |
| Acquiring 24.06% of equity interests in Wuhan BOE Optoelectronics Technology Co., Ltd. | No | 650,000 | 650,000 | 0 | 650,000 | 100.00% | N/A | N/A | No | |
| Capital increase in Chongqing BOE Display Technology Co., Ltd. and construction | No | 600,000 | 600,000 | 113,504 | 533,834 | 88.97% | August 2023 | N/A | N/A | No |
| Capital increase in Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and construction | No | 100,000 | 100,000 | 0 | 0 | 0.00% | January 2024 | N/A | N/A | No |
| Capital increase in Chengdu BOE Hospital Co., Ltd. and construction | No | 50,000 | 50,000 | 3,773 | 50,000 | 100.00% | April 2021 | N/A | N/A | No |
| Supplementing the working capital by the 2021 private placement of shares | No | 286,951 | 286,951 | 0 | 286,951 | 100.00% | N/A | N/A | No | |
| 22BOEY1-Capital increase in Chengdu BOE Optoelectronics Technology Co., Ltd. | No | 100,000 | 100,000 | 100,000 | 100,000 | 100.00% | N/A | N/A | No | |
BOE Technology Group Co., Ltd. Annual Report 2022
| 22BOEY1-Capital increase in Chongqing BOE Display Technology Co., Ltd. | No | 90,000 | 90,000 | 90,000 | 90,000 | 100.00% | N/A | N/A | No | |
| 22BOEY1- Supplementing the working capital | No | 10,000 | 8,888 | 8,888 | 8,888 | 100.00% | N/A | N/A | No | |
| Subtotal of committed investment project | -- | 2,186,951 | 2,185,839 | 316,165 | 2,019,673 | -- | -- | -- | -- | |
| Super raised funds arrangement | ||||||||||
| N/A | ||||||||||
| Total | -- | 2,186,951 | 2,185,839 | 316,165 | 2,019,673 | -- | -- | N/A | -- | -- |
| Describe project by project any failure to meet the schedule or anticipated income, as well as the reasons (including reasons for inputting “N/A” for “Whether reached anticipated income”) | All raised funds for the committed investment project (22BOEY1) and the committed investment projects (repaying the loans from Fuzhou Urban Construction Investment Group Co., Ltd. / acquiring 24.06% of equity interests in Wuhan BOE Optoelectronics Technology Co., Ltd. / supplementing the working capital by the 2021 private placement of shares) have been put to use and the expected benefits thereof are not applicable since the economic benefits are not directly generated. The committed investment project (capital increase in Chengdu BOE Hospital Co., Ltd. and construction) is in the early stage of opening and has not entered into the operation and profitability period. The committed investment projects (capital increase in Chongqing BOE Display Technology Co., Ltd. and construction /capital increase in Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and construction) have not yet reached the scheduled useful state and the expected benefits thereof are not applicable. The committed investment project (capital increase in Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and construction) is implemented in three stages. In the first stage, the Company invests with its own funds. It has realized the production of goods in small batches in 2021 and stable delivery in 2022 which is currently in normal operation. Since the silicon-based OLED industry is in the early stage of rapid development and the technological innovation is emerging endlessly, the Company successively launches the second and third stages considering the risks of changing technology and market demand so as to ensure the capacity matching the growing market demand and profitability. As of the disclosure date of this Report, the raised funds for the 12-inch silicon-based OLED project has not yet been put into use and will be invested based on market conditions subsequently. | |||||||||
| Notes of condition of significant changes occurred in project feasibility | N/A | |||||||||
| Amount, usage and schedule of super raise fund | N/A | |||||||||
| Changes in implementation address of investment project | N/A | |||||||||
| Adjustment of implementation mode of investment project | N/A | |||||||||
| Advance investments in projects financed with raised funds and swaps of such advance investments with subsequent raised | Applicable | |||||||||
| As at 31 December 2022, the funds raised through Phase I of renewable corporate bonds of 2022 were used to swap with advance project investments of RMB1.9 billion, of which RMB1 billion was swapped with the advance investment in Chengdu BOE Optoelectronics Technology Co., Ltd. with equity funds, and the remaining RMB0.9 billion was swapped with the advance investment in Chongqing BOE Display Technology Co., Ltd. with equity funds. | ||||||||||
BOE Technology Group Co., Ltd. Annual Report 2022
| funds | As at 31 December 2022, the Company had replaced the prior invested funds of the committed investment projects with the raised funds from the non-public offering of shares for a total amount of RMB6,023.0660 million . Of these, RMB3 billion was to replace the Company's own funds invested in repaying the loan of Fuzhou Urban Construction Investment Group. RMB250 million was to replace the own funds invested in BOE Health Investment Management Company Limited, and RMB2,773.0660 million was to replace the own funds invested in Chongqing BOE Display Technology Co., Ltd. |
| Idle fund supplementing the current capital temporarily | N/A |
| Amount of surplus in project implementation and the reasons | Applicable |
| As at 31 December 2022, the funds raised through the perpetual bonds have been used up, with a balance of RMB1.098 million in the raised funds account, which was the interest income generated during the deposit period. As at 31 December 2022, the balance of the raised funds from the non-public offering of shares was RMB1,717.5872 million, representing the unused raised funds and interest income generated during the deposit period. | |
| Usage and destination of unused funds | There is a balance of RMB1.098 million in the account of the funds raised through the perpetual bonds, which will be used to pay the interest for the bonds; and there is a balance of RMB1,717.5872 million in the account of the funds raised through the private placement, which will be invested step by step in the projects of Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and Chongqing BOE Display Technology Co., Ltd. |
| Problems incurred in fund using and disclosure or other condition | N/A |
(3) Re-purposed Raised Funds
□ Applicable ? Not applicable
No such cases in the Reporting Period.VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
? Applicable □ Not applicable
| Transactio | Equity | Date of | Transactio | Net profit | Effect on | Ratio of | Pricing | Related- | Relationsh | Equity | Execute | Disclosu | Index to |
BOE Technology Group Co., Ltd. Annual Report 2022
| n party | investment sold | sale | n price (RMB0’000) | contributed to the Company from the period-begin to the date of sale (RMB0’000) | the Company | the net profit contributed by the sale of the equity investment to the Company’s total net profit (%) | principle | party transaction or not | ip between the transaction party and the Company | investment involved has been all transferred or not | d as scheduled or not; if not, give reasons and measures taken | re date | disclosed information |
| Institutional investor | Equity investment in SES imagotag S.A. | 25 November 2022 | 124,807.00 | 162.00 | The Company has ceased to control SES and has excluded it from the consolidate financial statements. | 66.43% | Sold on a secondary market, with the total transaction consideration not exceeding 0.18 billion euro. | No | - | Yes | - | 30 November 2022 | www.cninfo.com.cn |
IX Main Controlled and Joint Stock Companies
? Applicable □ Not applicableMain subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
| Name | Relationship with the Company | Principal activities | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Chongqing | Subsidiary | R&D, | 19,226,000,000.00 | 50,215,357,747.00 | 42,295,896,874.00 | 22,475,277,054.00 | 4,982,156,785.00 | 4,260,338,675.00 |
BOE Technology Group Co., Ltd. Annual Report 2022
| BOE Optoelectronics Technology Co., Ltd. | Production, and sales of semi-conductor display device, complete machine, and relevant products; import and export business and technology consulting of goods. | |||||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Subsidiary | Investment construction, R&D, Production, and sales of relevant products of TFT-LCD and its matching products. | 19,500,000,000.00 | 34,984,843,717.00 | 25,484,857,733.00 | 23,099,173,107.00 | 2,249,652,657.00 | 2,074,574,833.00 |
| 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 | 23,098,545,346.00 | 16,474,099,268.00 | 7,004,241,037.00 | 682,126,280.00 | 600,777,647.00 |
BOE Technology Group Co., Ltd. Annual Report 2022
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 |
| BOE Environmental and Energy Technology Co., Ltd. | Incorporated with investment | No significant effects |
| Chengdu BOE Display Technology Co., Ltd. | Incorporated with investment | No significant effects |
| Beijing BOE Chuangyuan Technology Co., Ltd. | Incorporated with investment | No significant effects |
| SES Imagotag SA Co.Ltd. | Traded on a secondary market | See the Announcement of BOE Technology Group Co., Ltd. on the Sale of Certain Shares Held in a Subsidiary |
| BOE Digital Technology Co., Ltd. | Equity replacement | No significant effects |
Information about major majority- and minority-owned subsidiaries: N/AX Structured Bodies Controlled by the Company
□ Applicable ? Not applicable
XI Prospects
1. "1+4+N+Ecosystem" business development structure
Display Devices business: The Company will accelerate the improvement of OLED technology strength, continue to optimize productperformance, increase the proportion of high-end products, accelerate the development of new application markets, and furtherstrengthen the competitive edges. Meanwhile, it will focus on optimizing the structure of LCD products and speed up the establishmentof a comprehensive leading position in the innovative application market. It will also proactively leverage the advantages of the industryleader and continue to spearhead the healthy development of the industry.IoT Innovation business: The Company will enhance the capabilities of software and hardware integration and system design andintegration, continue to develop strategic customers, and strengthen cooperation with partners within the ecosystem. Also, it willstrengthen the implementation of benchmark projects, enhance brand influence, and accelerate the growth of business scale.Sensor business: The Company will continue to deepen the development of medical biology, smart screens, consumer electronics, andindustrial sensors, to provide customers with high-performance products and services.MLED business: The Company will create a Mini/Micro LED product group with active driver and COG at its core and coordinateddevelopment of COB and SMD, strengthen the collaboration and integration with upstream and downstream resources, continuouslyenrich the product mix, enhance product competitiveness, expand applications and expedite the development of business landscape.Smart Medical Engineering business: The Company will continue to deepen the "construction of a closed-loop service system withhealth management as the core, medical engineering products as the traction, and digital hospitals as the support", strengthen its corecapabilities and accelerate its business development.“N” business: Based on the "1+4" network to reach the demand side and the market side, the Company will achieve large-scaleapplication scenarios, continue to deepen its advantageous tracks, accelerate the growth of core capabilities, and speed up theexploration of emerging application markets, thereby ushering in a new era of high quality and high speed growth.“Ecosystem”: The Company will uphold the concept of "in-depth cooperation, collaborative development and value co-creation", fullyintegrate key industrial resources, enhance the overall value creation capability and create a sharing and win-win ecosystem.
2. Digital transformation
With the aim of building "a digital, visible BOE", the Company will promote, in an accurate and in-depth manner, a series of digital
BOE Technology Group Co., Ltd. Annual Report 2022
transformation to further improve operational efficiency and business performance, and boost long-term, stable and high-qualitydevelopment.
3. "Double carbon" task
The Company will deepen the implementation of the concept of green development, and continue to strengthen the efficient andcomprehensive utilization at multiple sources, the integrated management of energy supply, distribution, use and storage, and digitalmanagement capabilities through source decarbonization, process decarbonization, and intelligent carbon management to create a zero-carbon integrated energy service system.XII Communications with the Investment Community such as Researches, Inquiries andInterviews? Applicable □ Not applicable
| Date | Place | Way of communication | Type of the communication party | Communication party | Main discussions and materials provided by the Company | Index to the relevant information |
| 10 January 2022 | Company Conference Room | By phone | Institution | Perseverance Asset Management | Main discussions: 1. The Company’s operating results and operations; and 2. Answered questions from investors. Materials provided by the Company: The Company’s Interim Report 2021, Third Quarterly Report 2021, and other materials that had been disclosed to the public. | www.cninfo.com.cn |
| 15 January 2022 | Company Conference Room | By phone | Institution | 10 institutions including China Alpha Fund Management (HK) Limited | ||
| 6 April 2022 | Company Conference Room | By phone | Institution | 123 institutions including Acuity | Main discussions: 1. The Company’s operating results and operations; and 2. Answered questions from investors. Materials provided by the Company: The Company’s Third Quarterly Report 2021, Annual Report 2021, and other materials that had been disclosed to the public. | |
| 14 April 2022 | Company Conference Room | One-site visit | Institution | China Galaxy Securities | ||
| 19 April 2022 | Company Conference Room | By phone | Institution | 10 institutions including Bosera Funds | ||
| 29 April 2022 | Company Conference Room | By phone | Institution | 108 institutions including Acuity Knowledge Partners | Main discussions: 1. The Company’s operating results and operations; and 2. Answered questions from investors. Materials provided by the Company: The Company’s Annual Report 2021, First Quarterly Report 2022, and other materials that had been disclosed to the public. | |
| 13 May 2022 | Company Conference Room | By phone | Institution | BlackRock | ||
| 26 May 2022 | Company Conference Room | By phone | Institution | T Rowe Price | ||
| 31 May 2022 | Company Conference Room | By phone | Institution | Ishana Capital | ||
| 24 June 2022 | Company Conference Room | By phone | Institution | Golden Trust, Visione Asset, and |
BOE Technology Group Co., Ltd. Annual Report 2022
| IDG Capital | |||||
| 30 August 2022 | Company Conference Room | By phone | Institution | 63 institutions including Acuity Knowledge Partners | Main discussions: 1. The Company’s operations; and 2. Answered questions from investors. Materials provided by the Company: The Company’s Annual Report 2021, First Quarterly Report 2022, Interim Report 2022, and other materials that had been disclosed to the public. |
| 31 October 2022 | Company Conference Room | By phone | Institution | 178 institutions including 3W Fund, and Aspex | Main discussions: 1. Industry and market overview; 2. The Company’s operations; and 3. Answered questions from investors. Materials provided by the Company: The Company’s First Quarterly Report 2022, Interim Report 2022, Third Quarterly Report 2022 and other materials that had been disclosed to the public. |
| 6 November 2022 | Company Conference Room | By phone | Institution | 243 institutions including Point 72 | Main discussions: 1. HC Semitek’s considerations for introducing BOE as the controlling shareholder; 2. BOE’s development strategy; 3. Developments and future planning of BOE’s MLED business; 4. Introduction to HC Semitek and its products; and 5. Answered questions from investors. Materials provided by the Company: None |
| 22 November 2022 | Company Conference Room | By phone | Institution | Neo-Criterion Capital | Main discussions: 1. Industry and market overview; 2. Answered questions from investors. Materials provided by the Company: The Company’s Interim Report 2022, Third Quarterly Report 2022 and other materials that had been disclosed to the public. |
| 9 December 2022 | Company Conference Room | By phone | Institution | BOCOM Schroders, and GF Securities | |
| 16 December 2022 | Company Conference Room | By phone | Institution | Credit Suisse, and Citigroup |
BOE Technology Group Co., Ltd. Annual Report 2022
Part IV 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 Main-Board for the Standardized Operation of Companies, tocontinuously improve the corporate governance of the Company, to perfect internal control system as well as to promote corporategovernance level of the Company.During Reporting Period, the Company’s board of directors, board of supervisors and senior executives strictly in line with therequirement of related laws and Company rules and regulations perform their obligations; ensure the standardization and effectivenessof corporate governance. During the Reporting Period, the Company revised the Articles of Association and continued to promote theCompany’s governance in many ways. Actively arranged the Company's new directors, supervisors to join special training organizedby the Securities regulatory bureau of Beijing, regularly carry out the theme of the franco-prussian propaganda inside the Company.The Company preserved the related party fund transaction, external guarantee and regularly self-inspection of the shareholding and itschanges of the directors, supervisors and senior executives, and strengthened the communication of the investors through the ShenzhenStock Exchange Investors Interactive Platform.In the Reporting Period, corporate governance of the Company was perfected and operated normally, which was in total compliancewith various requirements on corporate governance of listed companies. No problems such as horizontal competition or illegal related-party transactions caused by partial restructuring or other reasons were found. The Company will continue to follow the concept of“honesty, standard, transparency and responsibility”, regulate itself and continuously improve the level of governance.Main governance of the Company was as follows:
(1) About Shareholders and Shareholders’ General Meetings
As per the Company’s Articles of Association, shareholders enjoyed rights and assumed obligations according to the shares they held.Organizing and convening procedures of the Company’s shareholders’ general meetings were in compliance with laws and regulations.The Company paid high attention to legal interests of its shareholders, especially its minority shareholders. Meanwhile, on the basis ofensuring legitimacy and validity of shareholders’ general meetings, actively provided conveniences including internet voting forminority shareholders’ joining the general meeting of the shareholders.
(2) About Relationship between the Controlling Shareholder and the Company
The Company was independent from the controlling shareholder and the actual controller in terms of personnel, assets, financing,organization and business. The controlling shareholder and actual controller of the Company was able to strictly control its behaviors,with no direct or indirect intervention in the Company’s decision-making, production and operating activities by violating relevantlaws, regulations and the Articles of Association, no behaviors in relation to occupying significant funds of the Company, and nobehaviors in relation to asking the Company to provide guarantees for it or other parties.
(3) About Directors and the Board of Directors
During the Reporting Period, the composition of the Board of Directors of the Company was in line with requirements of regulationsand the Company’s actual situation. All directors possessed necessary knowledge, skills and quality for duty performance. They allperformed their duties as stipulated in the Articles of Association honestly, faithfully and diligently. They learned about and kept aconstant focus on the Company’s production and operation, its financial status and influence and risks of significant events. They alsotook the initiative to search for information needed in their decision-making so as to ensure efficient operation and scientific decision-making of the Board of Directors. Board sessions were organized and convened in strict compliance with the Articles of Associationand Rules of Procedure for the Board of Directors. There were three special committees under the Board of Directors, namely, the
BOE Technology Group Co., Ltd. Annual Report 2022
Strategic Committee, the Nomination, Remuneration and Appraisal Committee and the Risk Control and Audit Committee. TheCompany also formulated rules of procedure for all the said special committees so that they could perform better.
(4) About Supervisors and the Supervisory Committee
Within the Reporting Period, the Supervisory Committee has enhanced its ability to supervise the legality and compliance of dutyperformance of the Company’s financial staffs, directors and senior managers. By way of attending shareholders’ general meetings,sitting in on board sessions, checking the Company’s compliance with laws and finance periodically, issuing its opinions on relevantmatters, etc., the Supervisory Committee supervised the Company’s finance, duty performance of directors and senior managementstaffs, management and capital flows between the Company and its related parties, and safeguarded the legitimate interests and rightsof the Company and its shareholders. Sessions of the Supervisory Committee were organized and convened in strict compliance withthe Articles of Association and the Rules of Procedure for the Supervisory Committee so as to ensure the Supervisory Committee’sactivities for duty performance were rightful and valid.
(5) About Information Disclosure and Transparency
According to the Company Law, the Stock Listing Rules of the Shenzhen Stock Exchange, the Guidelines of the Main-Board for theStandardized Operation of Companies, the Articles of Association and Management Methods for Information Disclosure and otherrequirements, the Company disclosed information in a timely and fair manner and ensured the factuality, accuracy and completenessof the information disclosed.The Company places great emphasis on communication with investors and has set up a dedicated team for investor relations. Itmaintains active interaction with investors by means of shareholder meetings, online performance presentations, the Shenzhen StockExchange’s platform, investor hotlines and investor mailboxes. It also engages in communication with investors, answers theirquestions, heeds their suggestions, and facilitates the exercise of shareholders' rights. The Company aims to promote the open,transparent, efficient and consistent communication between the Company, investors and analyst of securities, made them known moreabout the strategy, operation and development of the Company. Meanwhile, the Company has joined hands with a third-partyprofessional IR service agency to make the communication become more convenient between the investor and the Company via thedigital platform. The compliance and fairness of the investor relations work have also been ensured. In terms of investor protection,the Company uses a combination of online and offline means to strengthen its publicity and education efforts for investors. TheCompany has opened up new media platforms and released publicity information of activities such as "National Investor ProtectionPromotion Day". The "Investor Protection" column is set up under the "Investor Relations" section of the Company's official website,and a series of articles on investor education are released in conjunction with hot topics. In addition, the Company cooperates withbrokerage firms and provides educational lectures and training to investors, which are well received by investors
2. Governance Systems of the Company Revised during the Reporting Period
During the Reporting Period, based on the development demand, the Company revised some governance systems which had beendisclosed on Cninfo and details were presented in the following table:
| Disclosure date | Name of system | Established/Revised |
| 28 January 2022 | Management System for Professional Managers | Revised |
| 31 March 2022 | Articles of Association | Revised |
| 31 March 2022 | Rules of Procedure for General Meetings | Revised |
| 31 March 2022 | Rules of Procedure for the Board of Directors | Revised |
| 31 March 2022 | Rules of Procedure for the Supervisory Committee | Revised |
| 31 March 2022 | Composition and Rules of Procedure for the Strategy Committee of the Board of Directors | Revised |
| 31 March 2022 | Independent Director System | Revised |
| 31 March 2022 | Measures for the Management of the Provision of Guarantees for External Entities | Revised |
| 30 August 2022 | Measures for the Management of Information Disclosure | Revised |
| 30 August 2022 | Measures for the Management of Related-party Transactions | Revised |
| 30 August 2022 | Information Insider Registration and Management System | Revised |
| 30 August 2022 | External Information User Management System | Revised |
BOE Technology Group Co., Ltd. Annual Report 2022
| 30 August 2022 | Measures for the Management of Shares Held by Directors, Supervisors and Senior Management in the Company and Their Changes | Revised |
| 30 August 2022 | Work Rules for Board Secretary | Revised |
| 30 August 2022 | Accountability System for Material Errors in the Disclosure of Annual Reports | Revised |
| 31 October 2022 | Articles of Association | Revised |
| 31 October 2022 | Rules of Procedure for the Board of Directors | Revised |
| 31 October 2022 | Rules of Procedure for the Supervisory Committee | Revised |
| 31 October 2022 | Internal Reporting System for Material Information | Revised |
| 31 October 2022 | Investor Relations Management System | Revised |
Indicate by tick mark whether there is any material in-compliance with laws, administrative regulations and the regulatory documentsissued by the CSRC governing the governance of listed companies.
□ Yes ? No
No such cases in the Reporting Period.II The Company’s Independence from Its Controlling Shareholder and Actual Controller inBusiness, Personnel, Asset, Organization and Financial Affairs
The Company was independent from the controlling shareholder and the actual controller in terms of business, personnel, assets,organization and financing, with independent & complete business and capability to operate independently.
1. In business, the Company was independent from the controlling shareholder and the actual controller, with its own production andbusiness departments and management system, the Company had the capability to make its own decisions, assume sole responsibilityfor its profits and losses, and operate independently with independent and complete business.
2. In personnel, the Company was completely independent in labor, staff and remunerations. The Company had its own operatingmanagement team. Chief of Executive Committee, President, Chief Financial Officer, Secretary of the Board as well as other seniormanagement staffs of the Company all worked on full-time basis in the Company and did not hold any post in or receive anyremuneration in the controlling shareholder unit.
3. In assets, the Company had independent and complete assets. With clear ownership on its assets, the Company independently ownedthe production system, ancillary production system as well as supporting facilities for major businesses, as well as assets like land userights and intellectual property rights, etc.. Neither the controlling shareholder nor the actual controller appropriated any assets of theCompany.
4. In organization, the Company had established its organization completely independent from the controlling shareholder and theactual controller, with independent and sound organs and corporate governance structure. The Company had not handled any officialaffairs jointly with the controlling shareholder or the actual controller. There were no subordinate relationships between the controllingshareholder & its functional departments and the Company & its functional departments.
5. In financing, the Company had established independent financial departments, with full-time finance personnel. The Company hadalso formulated a standard and independent finance accounting system as well as financial measurement system, established thecorporate financial management archives and deployed relevant administrative personnel for them, opened independent account inbank, and paid tax independently.III Horizontal Competition
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Date of the meeting | Disclosure date | Meeting resolutions |
| The 2021 Annual General Meeting | Annual General Meeting | 24.61% | 28 April 2022 | 29 April 2022 | The following reports and proposals were deliberated and approved, i.e., Report on the Work of the Board of Directors for 2021, Report on the Work of the Board of Supervisors for 2021, Full Annual Report and Summary for 2021, Financial Final Report for 2021 and Business Plan for 2022, Proposal for the Distribution of Profits for 2021, Proposal on Borrowing and Credit Line, Proposal on the Development of Structured Deposits and Other Principal-protected Business, Proposal on Provision of Guarantee by A Subsidiary of Beijing BOE Energy Technology Co., Ltd. for the 200,000 kW Photovoltaic Project of Sonid Right Banner, Proposal on Provision of Guarantee for BOE Vision Electronic Technology Co., Ltd., Proposal on the Intended Appointment of an Audit Agency for 2022, Proposal on Repurchase of Domestic Listed Foreign Investment Shares (B Share) of the Company, Proposal on Purchase of Liability Insurance for Directors, Supervisors, and Senior Managers, Proposal on the Amendment of the Articles of Association of the Company and other Policies, Proposal on the Amendment of the Rules of Procedure for the Supervisory Committee, Election of Non-Independent Directors, Election of Independent Directors, and Election of Supervisors. |
| The 1st Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 21.42% | 15 September 2022 | 16 September 2022 | The Proposal on the Repurchase and Retirement of Certain Restricted Shares was deliberated and approved. |
| The 2nd Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 21.34% | 18 November 2022 | 19 November 2022 | The following proposals were deliberated and approved: The Proposal on the Investment for the Development of the Project of the Production Lines of the 6th Generation Semiconductor Display Devices of BOE, the Proposal on the Change of Registered Capital and the Amendment of the Articles of Association of the Company and other Policies and the Proposal on the Amendment of the Rules of Procedures for the Supervisory Committee. |
2. Extraordinary General Meetings Convened at the Request of Preferred Shareholders with ResumedVoting Rights
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
V Directors, Supervisors and Senior Management
1. Basic Information
| 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) | Reason for change |
| Chen Yanshun | Chairman of the Board, and Chairman of the Executive Committee | Incumbent | Male | 57 | 28 April 2022 | 27 April 2025 | 2,900,000 | 0 | 0 | 0 | 2,900,000 | N/A |
| Pan Jinfeng | Vice Chairman of the Board | Incumbent | Male | 43 | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Liu Xiaodong | Vice Chairman of the Board, and member of the Executive Committee | Incumbent | Male | 58 | 28 April 2022 | 27 April 2025 | 2,480,000 | 0 | 0 | 0 | 2,480,000 | N/A |
| Gao Wenbao | Director, President, and Vice Chairman of the Executive Committee | Incumbent | Male | 47 | 28 April 2022 | 27 April 2025 | 1,860,700 | 0 | 0 | 0 | 1,860,700 | N/A |
| Sun Yun | Director, member of the Executive Committee, and Executive Vice President | Incumbent | Female | 53 | 28 April 2022 | 27 April 2025 | 1,989,481 | 0 | 0 | 0 | 1,989,481 | N/A |
| Ye Feng | Director | Incumbent | Male | 57 | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Tang Shoulian | Independent director | Incumbent | Male | 70 | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2022
| Zhang Xinmin | Independent director | Incumbent | Male | 60 | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Guo He | Independent director | Incumbent | Male | 60 | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Wang Duoxiang | Independent director | Incumbent | Male | 53 | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Wang Jin | Chairman of the Supervisory Committee | Incumbent | Female | 47 | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Sun Fuqing | Supervisor | Incumbent | Male | 49 | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Shi Xiaodong | Supervisor | Incumbent | Male | 48 | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Xu Jinghe | Supervisor | Incumbent | Female | 39 | 28 April 2022 | 27 April 2025 | 0 | 0 | 0 | 0 | 0 | N/A |
| Yan Jun | Employee Supervisor | Incumbent | Male | 51 | 28 April 2022 | 27 April 2025 | 32,000 | 0 | 0 | 0 | 32,000 | N/A |
| Xu Yangping | Employee Supervisor | Incumbent | Male | 48 | 28 April 2022 | 27 April 2025 | 35,000 | 0 | 0 | 0 | 35,000 | N/A |
| Teng Jiao | Employee Supervisor | Incumbent | Male | 40 | 28 April 2022 | 27 April 2025 | 55,200 | 0 | 0 | 0 | 55,200 | N/A |
| Wang Xiping | Member of the Executive Committee, and Executive Vice President | Incumbent | Male | 44 | 28 April 2022 | 27 April 2025 | 852,400 | 0 | 0 | 0 | 852,400 | N/A |
| Feng Liqiong | Member of the Executive Committee, Executive Vice President, and Lead Counsel | Incumbent | Female | 50 | 28 April 2022 | 27 April 2025 | 1,360,000 | 0 | 0 | 0 | 1,360,000 | N/A |
| Zhang Yu | Member of the Executive Committee, and Executive Vice President | Incumbent | Male | 52 | 28 April 2022 | 27 April 2025 | 751,600 | 0 | 0 | 0 | 751,600 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2022
| Yang Xiaoping | Member of the Executive Committee, Executive Vice President, and Chief Financial Officer | Incumbent | Female | 43 | 28 April 2022 | 27 April 2025 | 742,300 | 0 | 0 | 0 | 742,300 | N/A |
| Liu Hongfeng | Vice President, and Board Secretary | Incumbent | Male | 44 | 28 April 2022 | 27 April 2025 | 1,024,500 | 0 | 0 | 0 | 1,024,500 | N/A |
| Wang Jing | Director | Former | Female | 51 | 24 December 2021 | 17 March 2022 | 0 | 0 | 0 | 0 | 0 | N/A |
| Song Jie | Director | Former | Male | 55 | 28 June 2019 | 27 April 2022 | 0 | 0 | 0 | 0 | 0 | N/A |
| Fan Yuanning | Director | Former | Male | 55 | 28 April 2022 | 6 September 2022 | 0 | 0 | 0 | 0 | 0 | N/A |
| Hu Xiaolin | Independent Director | Former | Male | 44 | 28 June 2019 | 27 April 2022 | 0 | 0 | 0 | 0 | 0 | N/A |
| Li Xuan | Independent Director | Former | Male | 54 | 28 June 2019 | 27 April 2022 | 0 | 0 | 0 | 0 | 0 | N/A |
| Yang Xiangdong | Chairman of the Supervisory Committee | Former | Male | 61 | 28 June 2019 | 27 April 2022 | 0 | 0 | 0 | 0 | 0 | N/A |
| Wei Shuanglai | Supervisor | Former | Male | 55 | 28 June 2019 | 27 April 2022 | 0 | 0 | 0 | 0 | 0 | N/A |
| Chen Xiaobei | Supervisor | Former | Female | 50 | 28 June 2019 | 27 April 2022 | 0 | 0 | 0 | 0 | 0 | N/A |
| Shi Hong | Supervisor | Former | Female | 40 | 28 June 2019 | 27 April 2022 | 0 | 0 | 0 | 0 | 0 | N/A |
| He Daopin | Employee Supervisor | Former | Male | 53 | 28 June 2019 | 27 April 2022 | 32,600 | 0 | 0 | 0 | 32,600 | N/A |
| Yao Xiangjun | Senior management | Former | Male | 45 | 28 June 2019 | 27 April 2022 | 1,265,000 | 0 | 0 | 0 | 1,265,000 | N/A |
| Zhang Zhaohong | Senior management | Former | Male | 52 | 28 June 2019 | 27 April 2022 | 1,498,800 | 0 | 0 | 0 | 1,498,800 | N/A |
BOE Technology Group Co., Ltd. Annual Report 2022
| Zhong Huifeng | Senior management | Former | Male | 52 | 28 June 2019 | 27 April 2022 | 1,310,000 | 0 | 0 | 0 | 1,310,000 | N/A |
| Miao Chuanbin | Senior management | Former | Male | 49 | 28 April 2022 | 1 March 2023 | 758,800 | 0 | 0 | 0 | 758,800 | N/A |
| Xie Zhongdong | Senior management | Former | Male | 52 | 28 April 2022 | 31 March 2023 | 1,057,000 | 0 | 0 | 0 | 1,057,000 | N/A |
| Total | -- | -- | -- | -- | -- | -- | 20,005,381 | 0 | 0 | 0 | 20,005,381 | -- |
Indicate by tick mark whether any director, supervisor or senior management resigned before the expiry of their office terms during the Reporting Period.? Yes □ No
1. On 17 March 2022, the Board of Directors received a resignation letter from Ms. Wang Jing, a non-independent director of the Company. Ms. Wang Jing applied for resignation as a non-independent director and a member of the relevant special committees of the Board of Directors due to job change and will not hold any position in the Company after her resignation.
2. On 6 September 2022, the Board of Directors received a resignation letter from Mr. Fan Yuanning, a non-independent director of the Company. Mr. Fan Yuanning applied for resignation as anon-independent director and a member of the relevant special committees of the Board of Directors due to job change and will not hold any position in the Company after his resignation.
BOE Technology Group Co., Ltd. Annual Report 2022
Change of Directors, Supervisors and Senior Management? Applicable □ Not applicable
| Name | Office title | Type of change | Date of change | Reason for change |
| Wang Jing | Director | Resigned | 17 March 2022 | Resigned voluntarily |
| Song Jie | Director | Resigned upon the expiry of office term | 28 April 2022 | Resigned upon the expiry of office term |
| Hu Xiaolin | Independent Director | Resigned upon the expiry of office term | 28 April 2022 | Resigned upon the expiry of office term |
| Li Xuan | Independent Director | Resigned upon the expiry of office term | 28 April 2022 | Resigned upon the expiry of office term |
| Yang Xiangdong | Chairman of the Supervisory Committee | Resigned upon the expiry of office term | 28 April 2022 | Resigned upon the expiry of office term |
| Wei Shuanglai | Supervisor | Resigned upon the expiry of office term | 28 April 2022 | Resigned upon the expiry of office term |
| Chen Xiaobei | Supervisor | Resigned upon the expiry of office term | 28 April 2022 | Resigned upon the expiry of office term |
| Shi Hong | Supervisor | Resigned upon the expiry of office term | 28 April 2022 | Resigned upon the expiry of office term |
| He Daopin | Employee Supervisor | Resigned upon the expiry of office term | 28 April 2022 | Resigned upon the expiry of office term |
| Yao Xiangjun | Senior management | Resigned upon the expiry of office term | 28 April 2022 | Resigned upon the expiry of office term |
| Zhang Zhaohong | Senior management | Resigned upon the expiry of office term | 28 April 2022 | Resigned upon the expiry of office term |
| Zhong Huifeng | Senior management | Resigned upon the expiry of office term | 28 April 2022 | Resigned upon the expiry of office term |
| Fan Yuanning | Director | Elected | 28 April 2022 | Elected |
| Guo He | Independent director | Elected | 28 April 2022 | Elected |
| Wang Duoxiang | Independent director | Elected | 28 April 2022 | Elected |
| Wang Jin | Chairman of the Supervisory Committee | Elected | 28 April 2022 | Elected |
| Shi Xiaodong | Supervisor | Elected | 28 April 2022 | Elected |
| Xu Jinghe | Supervisor | Elected | 28 April 2022 | Elected |
| Wang Xiping | Senior management | Appointed | 28 April 2022 | Appointed |
| Yang Xiaoping | Senior management | Appointed | 28 April 2022 | Appointed |
| Fan Yuanning | Director | Resigned | 6 September 2022 | Resigned voluntarily |
| Miao Chuanbin | Senior management | Resigned | 1 March 2023 | Resigned voluntarily |
| Xie Zhongdong | Senior management | Resigned | 31 March 2023 | Resigned voluntarily |
| Feng Qiang | Senior management | Appointed | 31 March 2023 | Appointed |
| Guo Huaping | Senior management | Appointed | 31 March 2023 | Appointed |
2. Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and senior
BOE Technology Group Co., Ltd. Annual Report 2022
managementDirectors:
Mr. Chen Yanshun, Master of Economics, Senior Economist, and Senior Accountant. Joining the Company in 1993, he used to beSecretary to the 1
st Board of Directors of the Company, Secretary to the 2
nd
Board of Directors and Vice President, Executive Directorof the 3
rd Board of Directors and Senior Vice President, Executive Director of the 4
th,
thand 6
th
Boards of Directors and President,Vice Chairman of the 7
th Board of Directors and President, Vice Chairman of the 8
thBoard of Directors and Chairman of the ExecutiveCommittee (Chief Executive Officer), and Chairman of the 9
th
Board of Directors and Chairman of the Executive Committee. Also, heonce was Chairman of the Board for a number of subsidiaries including Beijing BOE Optoelectronics Technology Co., Ltd., HefeiBOE Optoelectronics Technology Co., Ltd., Chongqing BOE Optoelectronics Technology Co., Ltd., and BOE Smart Technology Co.,Ltd.Currently, he serves as Chairman of the 10
thBoard of Directors and Chairman of the Executive Committee of the Company. He is alsoChairman of the Board for BOE Optoelectronics Holdings Co., Ltd., BOE Optoelectronics Technology Co., Ltd., BOE Technology(HK) Limited, and Beijing Intelligent Kechuang Technology Development Co., Ltd., in addition to being Vice Chairman of the Boardof Beijing BOE Investment Development Co., Ltd. Meanwhile, he is also Vice Chairman of China Information Technology IndustryFederation (CITIF), Vice Chairman of China Optics & Optoelectronics Manufactures Association (COEMA), Chairman of ChinaOptics & Optoelectronics Manufactures Association LCB (CODA), and Chief Supervisor of The Listed Companies Association ofBeijing. He has been awarded as National Model Worker in 2020 and the Economic Figure of the Year by China News Weekly in 2021.
Mr. Pan Jinfeng, senior management, MBA, senior economist. He once acted as a staff and a staff of Corporate Planning Departmentof Shanghai Sales Company of Beijing Zhaowei Electronics (Group) Co., Ltd., Deputy Manager, Manager of Operation Department,Manager of Zhaowei Building Project Department, Assistant of GM, Deputy GM, GM of Zhaowei Industrial Corporation of BeijingZhaowei Electronics (Group) Co., Ltd. Executive Deputy President of Beijing Zhaowei Electronics (Group) Co., Ltd., Deputy Secretaryof Party Committee, Director, GM of Beijing Yiheng Electronics Group Co., Ltd., Assistant of GM and Deputy GM of BeijingElectronics Holding Co., Ltd.Now, he acts as the Vice Chairman of the 10
thBoard of Directors of the Company, Deputy Secretary of the CPC Committee, Directorand GM of Beijing Electronics Holding Co., Ltd. & Deputy Chairman of the Board of NAURA Technology Group Co., Ltd., Chairmanof the Board of Beijing Electronic Zone High-Tech Group Co.,Ltd. and BE New Energy Technology (Jiangsu) Co., Ltd., Director ofBeijing Electronics Holding & SK Technology Co., Ltd. and Chairman of the Board of Beijing Integrated Circuit Equipment InnovationCenter Co. Ltd. and BE Aisite (Jiangsu) Technology Co., Ltd. He is also Vice Chairman of Beijing Youth Federation, Chairman ofBeijing Electronic Chamber of Commerce and Chairman of Zhongguancun Yunti Technology Innovation Alliance.
Mr. Liu Xiaodong, Bachelor’ degree, Engineer, he ever worked in Research Institute of Beijing Information Optics Apparatus. Hesuccessively took the posts of Director, Deputy General Manager and Secretary of CPC of Beijing Matsushita Color CRT Co., Ltd.,Vice President of the Company and concurrently Director and General Manager of Beijing BOE Optoelectronics Technology Co., Ltd.,Director and General Manager of Hefei BOE Optoelectronics Technology Co., Ltd. Chairman of the Board of Beijing BOE Vision-electronic Technology Co., Ltd. Director and GM of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Deputy Chairman of theBoard of Chongqing BOE Optoelectronics Technology Co., Ltd., Director of TPV Display Technology (China) Limited, Fuzhou BOEOptoelectronics Technology Co., Ltd., Beijing BOE Display Technology Co., Ltd., and BOE Health Investment Management Co., Ltd.,Chairman of the Board of Beijing BOE Sensor Technology Co., Ltd., Director of the 7
thBoard of Directors of the Company, ExecutiveVice President and COO of the Company, Director of the 8
thBoard of Directors, Vice Chairman of the Executive Committee, President& COO of the Company, as well as Vice Chairman of the 9
th
Board of Directors, President and Vice Chairman of the ExecutiveCommittee of the Company.Now he takes the posts of Vice Chairman of the 10
thBoard of Director and a member of the Executive Committee of the Company,
BOE Technology Group Co., Ltd. Annual Report 2022
Chairman of Mianyang BOE Optoelectronics Technology Co., Ltd., Chongqing BOE Display Technology Co., Ltd., Wuhan BOEOptoelectronics Technology Co., Ltd., Yunnan Chuangshijie Optoelectronics Technology Co., Ltd., and Fuzhou BOE DisplayTechnology Co., Ltd., Executive Director of Beijing BOE Technology Development Co., Ltd., Director of Hefei BOE DisplayTechnology Co., Ltd., Chairman of the Board of Beijing BOE Chuangyuan Technology Co., Ltd., and Chairman of the Board ofChengdu BOE Display Technology Co., Ltd.
Mr. Gao Wenbao, PhD in Microelectronics and Solid State Electronics. He joined the Company in 2003 and served as Section Chief,Head of Product Technology, Deputy Director of Technology, Executive Deputy General Manager of BOE, General Manager of TPCSBU, General Manager of Chongqing BOE Display Technology Co., Ltd. ,Director of the 9
thBoard of Directors, Member of theExecutive Committee, and Executive Vice President of the Company of the Company.He is currently Director of the 10
th
Board of Directors, President, Vice Chairman of the Executive Committee, Chief Executive Officerof the display business of the Company, in addition to being Executive Director and Chairman of the Board of Directors of BOEVaritronix Limited, and Chairman of the Board of Beijing Zhongxiangying Technology Co., Ltd.
Ms. Sun Yun, Master of Business, a Senior Accountant. She successively took the posts of Deputy Chief, Chief of Finance Departmentof the Company, as well as Deputy CFO and Chief Auditor of the Company, Director of the 8
thBoard of Directors of the Company,Director of the 9
thBoard of Directors and CFO of the Company, Director of Erdos Yuansheng Optoelectronics Co., Ltd., Beijing BOEVideo Technology Co., Ltd., Beijing BOE Multimedia Science and Technology Co., Ltd., BOE Health Investment Management Co.,Ltd., Beijing BOE Matsushita Color CRT Innovation Co., Ltd. and Supervisor of Beijing Orient Vacuum Electric Co., Ltd.Now she is Director of the 10
th
Board of Directors, Member of the Executive Committee, and Executive Vice President of the Company,in addition to being Director of Beijing BOE Land Co., Ltd., Director of Beijing Yinghe Century Land Co., Ltd., Chairman of theBoard of BOE Innovation Investment Co., Ltd.
Mr. Ye Feng, BS in Engineering, Engineer. Previously, he served as Deputy Factory Manager of Beijing Jianzhong Machinery Factory,a Director of the Board of Directors and General Manager of Beijing Qixing Huachuang Electronic Co., Ltd., Vice President of BeijingBeiguang Electron Group Co., Ltd., Factory Manager of Beijing Dahua Radio Instrument Factory, Chairman of Beijing Dahua RadioInstrument Company, Ltd., and Director of the 9
th
Board of Directors of the Company.He is currently a Director of the 10
thBoard of Directors, a full-time Director assigned by Beijing Electronic Holding Co., Ltd., aDirector of Beijing Zhaowei Electronics (Group) Co., Ltd., and a Director of NAURA Technology Group.
Independent Directors:
Mr. Tang Shoulian, professor, holds a master's degree.He used to be Director of Finance Office, Dean of School of Management and Humanities, Secretary of Party Committee of School ofEconomics and Management, Executive Dean of School of Economics and Management, and Standing Committee of AcademicCommittee and Chairman of Labor Dispute Mediation Committee of Beijing University of Posts and Telecommunications (BUPT),and Independent Director of the 9
th
Board of Directors of the Company. He has served as a member of the Expert Committee onTelecommunications Economy of the Ministry of Industry and Information Technology, a permanent member of the ChineseAssociation of Market Development, a standing member of the Information Law Research Society of the China Law Society, a seniormember of the Chinese Society of Technology Economics, a standing member of the Commerce Statistical Society of China, and areviewer of the Management Science Department of the National Natural Science Foundation of China.He is currently an Independent Director of the 10
th
Board of Directors of the Company.
BOE Technology Group Co., Ltd. Annual Report 2022
Mr. Zhang Xinmin, Doctor of Management, Professor, was formerly the Dean of the International Business School of the Universityof International Business and Economics, a member of CPC's Standing Committee and Vice President of the University of InternationalBusiness and Economics, and Independent Director of the 9
thBoard of Directors of the Company.He is currently an Independent Director of the 10
thBoard of Directors of the Company, an Independent Director of MinmetalsDevelopment Co., Ltd., an Independent Director of COFCO Capital Holdings Co., Ltd., an Independent Director of China MehecoGroup Co., Ltd., an external Supervisor of Xiamen International Bank Limited, a professor of accounting and doctoral supervisor ofthe International Business School at the University of International Business and Economics, a member of the Business AdministrationDiscipline Review Group of the Academic Degrees Committee of the State Council, Vice President of the China CommercialAccounting Institute, and an expert who enjoys special allowance from the State Council.
Mr. Guo He, a professor and PhD supervisor at the School of Law / School of Intellectual Property of Renmin University of China.He currently serves as an Independent Director of the 10th Board of Directors of the Company. He also serves as the Vice Presidentand Secretary General of the Intellectual Property Law Research Association of the China Law Society, the Vice Chairman of theChina Intellectual Property Research Association, a member of the expert group of the Domain Name Dispute Resolution Centre ofthe China International Trade Arbitration Commission and a member of the expert group of the Asian Domain Name DisputeResolution Centre.
Mr. Wang Duoxiang, Doctor of Management, is a researcher and doctoral supervisor at the School of Engineering, Peking University.He was the General Manager of Xiamen PKU Taipu Pharmaceutical Co., Ltd., Chairman of Xiamen Tobefar Technology Co., Ltd.,the Deputy Director of the College of Engineering of Peking University, the Deputy Mayor of Baotou Municipal People's Governmentof Inner Mongolia and the Vice President of Southern University of Science and Technology.He currently serves as an Independent Director of the 10th Board of Directors of the Company, a researcher of the College ofEngineering of Peking University, Director of the Beijing Institute of Collaborative Innovation, Director of the Beijing-Tianjin-HebeiNational Technology Innovation Centre, and Director of the China Research Centre for Industry-University-Research IntegrationInnovation System.
Supervisors:
Ms. Wang Jin, Doctor of Laws, a senior economist. She was the Deputy General Manager of the Legal and Risk ManagementDepartment, the Deputy General Manager of the Legal Department and the Deputy General Manager of the Corporate DevelopmentDepartment/Legal Department of Beijing Branch of China United Network Communications Group Co., Ltd.She currently serves as the Chairman of the 10th Supervisory Committee of the Company and the general counsel of Beijing ElectronicsHoldings Co., Ltd. She is also Director of Beijing Yiheng Electronics Group Co., Ltd., Director of Beijing ether Electronics Group Co.,Ltd. and Director of Beijing Qixing Huadian Technology Group Co., Ltd.
Mr. Sun Fuqing, Master of Engineering, Senior Accountant. He was formerly Assistant Financial Manager of Beijing C & WElectronics (Group) Co., Ltd., Manager of Finance Department of Beijing Tianlong Co., Ltd., Deputy Chief of Finance Department ofBeijing Electronics Holding Co., Ltd., Vice Dean of Beijing Information Technology College, CFO of Beijing Dahua Radio InstrumentFactory, Deputy Party Secretary, Director and General Manager of Beijing Yiheng Electron Group Co., Ltd., Deputy Director ofAdjustment Guarantee Center of Beijing Electronics Holding Co., Ltd., and Supervisor of the 9
th
Supervisory Committee of theCompany.He is currently a Supervisor of the 10
thSupervisory Committee of the Company, Chief Controller of Financial Management Departmentof Beijing Electronics Holdings Limited, and is also a Director of Beijing Electric Control Jiuyi Industrial Development CompanyLimited, Chairman and General Manager of Beijing BOE Investment Development Company Limited, and a Director of Beijing Capitel
BOE Technology Group Co., Ltd. Annual Report 2022
Co., Ltd.
Mr. Shi Xiaodong, MBA, an economist. He was a personnel specialist at Beijing Panasonic Control Devices Co., Ltd., the Managerof the Human Resources Department of CITIC Guoan Shihua International Financial Information Co., Ltd., the ManagementConsultant of Bosizhilian Management Consultant Co., Ltd., the Manager of the Corporate Management Department, the Manager ofthe Human Resources Department, the Assistant General Manager and Deputy General Manager of Zhaowei Technology Co., Ltd.,the Executive Vice President of Beijing Zhaowei Electronics (Group) Co., Ltd. and the Secretary of the Party Branch and the DeputyGeneral Manager and Chairman of the Trade Union of Beijing Electric Control Aisikai Technology Co., Ltd.He is currently a Supervisor of the 10th Supervisory Committee of the Company and the Deputy Director of the Operation andManagement Department of Beijing Electronics Holdings Co., Ltd. (presiding over the work). He is also Director of Beijing etherElectronics Group Co., Ltd., Director of Beijing Jingdian Import & Export Company Co. Ltd., Director of Beijing Qixing HuadianTechnology Group Co., Ltd., and Director of Beijing Zhengdong Electronic Power Group Co., Ltd.
Ms. Xu Jinghe, Master of Science in Management, Certified Management Accountant (USA), with the professional qualification ofthe Certified Public Accountant (China).She currently serves as a Supervisor of the 10th Supervisory Committee of the Company and the Deputy Director of the Investmentand Development Department of Beijing Yizhuang Investment Holding Co., Ltd.
Mr. Yan Jun, bachelor. He once acted as the Deputy GM of Beijing Nissin Electronic Precision Components Co., Ltd., Minister ofCorporate Culture/Party Affairs Department, Chairman of Labor Union in Chongqing BOE Optoelectronics Technology Co., Ltd.,Deputy Director of General Office of the Group, and Employee Supervisor of the 9
thSupervisory Committee of the Company.Now he acts as the Employee Supervisor of the 10
thSupervisory Committee, Deputy Head of Party Mass/Corporate Culture Center,Deputy Secretary of Discipline and Inspection Committee, Deputy Chairman of Labor Union in the Company.
Mr. Xu Yangping, Master of Civil and Commercial Law. He was former Deputy Minister, Minister of the Company’s LegalDepartment, and Employee Supervisor of the 7
th
, 8th
and 9
thSupervisory Committees of the Company.Now he acts as Employee Supervisor of the 10
thSupervisory Committee and Counsel of the Company, and Chief of the Group’s LegalCenter, in addition to being Director of Gaochuang (Suzhou) Electronics Co., Ltd, Beijing BOE Energy Technology Co., Ltd., NanjingBOE Display Technology Co., Ltd., BEHC Industrial Investment Co., Ltd., and Erdos BOE Energy Investment Co., Ltd., as well asSupervisor of BOE Innovation Investment Co., Ltd., Tianjin BOE Innovation Investment Management Co., Ltd., BOE SmartTechnology Co., Ltd., BOE Jingxin Technology Co., Ltd., and Hefei BOE Ruisheng Technology Co., Ltd., among others.
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., Directorof Beijing Asahi Electronic Materials Co., Ltd., Beijing BOE Energy Technology Co., Ltd., Beijing BOE Health Technology Co., Ltd.and Hefei BOE Hospital Co., Ltd., Supervisor of Beijing BOE CHATANI Electronics Co.,Ltd. and Nanjing BOE InformationTechnology Co., Ltd., as well as Employee Supervisor of the 9
th
Supervisory Committee of the Company.Now, he acts as the Employee Supervisor of the 10
th
Supervisory Committee, Head of the Capital Center, and Head of the TaxationCenter of the Company, in addition to being Director of Beijing BOE Vacuum Electric Co., Ltd., Director of Beijing BOE MatsushitaColor CRT Innovation Co., Ltd., Chengdu BOE Hospital Co., Ltd., Suzhou BOE Hospital Co., Ltd. and Gaochuang (Suzhou)Electronics Co., Ltd., BOE Optical Science and Technology Co., Ltd. and BOE Environmental Energy Technology Co., Ltd.
BOE Technology Group Co., Ltd. Annual Report 2022
Senior Management:
Mr. Feng Qiang, Master of Executive Master of Business Administration, Master of Engineering, and Engineer. Joining the Companyin 1998, he used to be the vice general manager and general manager of the Company’s Science Park Business Headquarters, vicepresident of the Company, executive director & executive vice general manager of Beijing BOE Land Co., Ltd., executive director &executive vice general manager and general manager of Beijing Yinghe Century Land Co., Ltd., general manager of Beijing MatsushitaColor CRT Co., Ltd., and Co-CEO of the Smart Healthcare Service BG.Now he is a member and executive vice president of the Executive Committee of the Company, Chairman of the Board & CEO of theSmart Medicine and Engineering Business, Chairman of the Board of BOE Health Investment Management Co., Ltd., Chairman of theBoard of Beijing BOE Life Technology Co., Ltd., Chairman of the Board of Beijing BOE Land Co., Ltd., Chairman of the Board ofBeijing Yinghe Century Land Co., Ltd., Chairman of the Board of BOE Regenerative Medical Technologies Co. Ltd., and Chairmanof the Board of Beijing BOE Songcai Innovation Co., Ltd.
Mr. Wang Xiping, with a Bachelor's degree, was the Manager of Nanjing Hanyu Caixin Technology Co., Ltd. He joined the Companyin 2009 and served as the Head of the Company's Production Management Centre, the General Manager of Hefei XinshengOptoelectronics Technology Co., Ltd. and the General Manager, Display Business Co-CEO and Chief Procurement Officer of WuhanBOE Optoelectronics Technology Co., Ltd.He is currently a member of the Executive Committee and an Executive Vice President of the Company, the Head of the DisplayDevices and IoT Innovation Business Centre, and the Chairman of BOE Environmental Energy 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. Zhang Yu, engineer, holds a master's degree. He has served as the Deputy Director of the Executive Office of the Company,General Manager of Hefei Office, Supervisor of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Director of Hefei XinjingyuanElectronic Materials Co., Ltd.and Hefei BOE Optoelectronics Technology Co., Ltd.He is currently a member of the Executive Committee, Executive Vice President, Chief Human Resources Officer and Chief Reformand IT Management Officer of the Company. He was awarded the "National Model Worker" in 2020.
Ms. Yang Xiaoping, with a Master's degree, was the Deputy Director and Director of the Accounting and Finance Department of theCompany, the Centre Director of the Accounting and Taxation Centre, the Center Director of the Budget Center and the VCFO of theGroup.She is currently a member of the Executive Committee, Executive Vice President, and the Chief Financial Officer of the Company andthe Director of multiple subsidiaries, including Director of Beijing BOE Optoelectronics Technology Co., Ltd., Director of ChengduBOE Optoelectronics Technology Co., Ltd., Director of Hefei BOE Optoelectronics Technology Co., Ltd., Director of Beijing BOEDisplay Technology Co., Ltd., Director of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Director of Chongqing BOEOptoelectronics Technology Co., Ltd., Director of Fuzhou BOE Optoelectronics Technology Co., Ltd. and Director of Wuhan BOE
BOE Technology Group Co., Ltd. Annual Report 2022
Optoelectronics Technology Co., Ltd.
Mr. Guo Huaping, holds a master’s degree. He once worked as the vice general manager of Beijing 798 Cultural Creative IndustryInvestment Co., Ltd., Deputy Secretary of the CPC Committee of Beijing Jile Electronics Group Co., Ltd., the minister of the CPCPublicity Department/Corporate Culture Department of Beijing Electronics Holdings Co., Ltd. and general manager of Beijing JingdianImport and Export Co., Ltd.Now, he is the senior vice president, CCO and leader of Labor Union of the Company.
Mr. Liu Hongfeng, a master’s degree holder. He once worked as the Deputy Chief of the Planning and Finance Department, theDeputy Chief and Chief of the Board Secretary’s Office, the Securities Representative and the Secretary to the 7
th, 8th
and 9
thBoardsof Directors of the Company.Now he is a Vice President and the Secretary to the 10th Board of Directors of the Company, as well as a Director of Beijing NissinElectronics Precision Component Co., Ltd. and a 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 |
| Ye Feng | Beijing Electronics Holdings Co., Ltd. | Full-time Director Dispatched | 31 August 2021 | - | Yes |
| Wang Jin | Beijing Electronics Holdings Co., Ltd. | General Counsel | 1 February 2021 | - | Yes |
| Sun Fuqing | Beijing Electronics Holdings Co., Ltd. | Finance Minister | 24 August 2021 | - | Yes |
| Shi Xiaodong | Beijing Electronics Holdings Co., Ltd. | Deputy Chief of the Operation and Management Department | 11 November 2021 | - | Yes |
| Notes to post-holding in shareholder’s unit | The documents for holding the posts of shareholders entities haven’t listed the expiry date. | ||||
Offices held concurrently in other entities:
? Applicable □ Not applicable
| Name | Other entity | Office held in the entity | Start of tenure | End of tenure | Remuneration or allowance from the entity |
| Zhang Xinmin | University of International Business and Economics | Professor, and Doctor Advisor | - | - | Yes |
| Guo He | Renmin University of China | Professor, and Doctor Advisor | - | - | Yes |
| Wang Duoxiang | College of Engineering of Peking University | Researcher, and Doctor Advisor | - | - | Yes |
| Xu Jinghe | Beijing Yizhuang Investment | Deputy Chief of the | - | - | Yes |
BOE Technology Group Co., Ltd. Annual Report 2022
| Holdings Limited | Investment Development Department | ||
| Notes to post-holding in other entities | Due to the above personnel’s units were special, their start dates and ending dates of the office terms have not been fixed. | ||
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and seniormanagement as well as those who left in the Reporting Period:
□ Applicable ? Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and seniormanagement:
(1) Determining Basis and Decision-making Procedure of Remuneration of Directors, Supervisors and Senior ManagementProposal on Adjustment of Allowance for Directors and Supervisors was reviewed and approved on the 1
st
Extraordinary GeneralMeeting of 2019 held by the Company on 28 June 2019, of which, the allowance for independent directors was adjusted to RMB0.2million (pre-tax) per year from RMB0.15 million; the allowance for the Company’s executive directors and employee supervisors aswell as directors and supervisors holding posts in shareholder’s unit was cancelled.
(2) During the Reporting Period, the total after-tax remuneration received by directors, supervisors and senior managers in the companyamounted to RMB 56.6374 million, and the withholding of individual income tax by the company amounted to RMB 32.6059million.Allowance for independent directors is RMB0.2 million (pre-tax) per year in 2022. For details please referred to the statementbelow.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
| Name | Office title | Gender | Age | Incumbent/Former | Total after-tax remuneration received from the Company in 2022 | Individual income tax withheld by the Company in 2022 | Any remuneration from related party |
| Chen Yanshun | Chairman of the Board, Chief of Executive Committee | Male | 57 | Incumbent | 492.28 | 330.35 | No |
| Pan Jinfeng | Vice Chairman of the Board | Male | 43 | Incumbent | 0.00 | 0.00 | - |
| Liu Xiaodong | Vice Chairman of the Board, member of Executive Committee | Male | 58 | Incumbent | 542.49 | 371.43 | No |
| Gao Wenbao | Director, President, Vice Chairman of Executive Committee | Male | 47 | Incumbent | 447.03 | 291.60 | No |
| Sun Yun | Member of Executive Committee, Executive vice president | Female | 53 | Incumbent | 465.93 | 308.80 | No |
| Ye Feng | Director | Male | 57 | Incumbent | 0.00 | 0.00 | - |
| Tang Shoulian | Independent director | Male | 70 | Incumbent | 16.50 | 3.50 | - |
| Zhang Xinmin | Independent director | Male | 60 | Incumbent | 16.50 | 3.50 | - |
| Guo He | Independent director | Male | 60 | Incumbent | 11.20 | 2.13 | - |
| Wang Duoxiang | Independent director | Male | 53 | Incumbent | 11.20 | 2.13 | - |
| Wang Jin | Chairman of the Supervisory Committee | Female | 47 | Incumbent | 0.00 | 0.00 | - |
| Sun Fuqing | Supervisor | Male | 49 | Incumbent | 0.00 | 0.00 | - |
| Shi Xiaodong | Supervisor | Male | 48 | Incumbent | 0.00 | 0.00 | - |
| Xu Jinghe | Supervisor | Female | 39 | Incumbent | 0.00 | 0.00 | - |
| Yan Jun | Employee supervisor | Male | 51 | Incumbent | 113.73 | 25.62 | No |
| Xu Yangping | Employee supervisor | Male | 48 | Incumbent | 140.17 | 43.06 | No |
BOE Technology Group Co., Ltd. Annual Report 2022
| Teng Jiao | Employee supervisor | Male | 40 | Incumbent | 195.95 | 85.15 | No |
| Wang Xiping | Member of Executive Committee, Executive vice president | Male | 44 | Incumbent | 389.44 | 218.68 | No |
| Feng Liqiong | Member of Executive Committee, Executive vice president, lead counsel | Female | 50 | Incumbent | 422.94 | 273.62 | No |
| Zhang Yu | Member of Executive Committee, Executive vice president | Male | 52 | Incumbent | 302.69 | 176.34 | No |
| Yang Xiaoping | Member of Executive Committee, Executive vice president, CFO | Female | 43 | Incumbent | 321.25 | 190.41 | No |
| Liu Hongfeng | Vice president, Secretary of the Board | Male | 44 | Incumbent | 234.22 | 119.21 | No |
| Wang Jing | Director | Female | 51 | Former | 0.00 | 0.00 | - |
| Song Jie | Director | Male | 55 | Former | 0.00 | 0.00 | - |
| Fan Yuanning | Director | Male | 55 | Former | 0.00 | 0.00 | - |
| Hu Xiaolin | Independent director | Male | 44 | Former | 5.40 | 1.27 | - |
| Li Xuan | Independent director | Male | 54 | Former | 5.40 | 1.27 | - |
| Yang Xiangdong | Chairman of the Supervisory Committee | Male | 61 | Former | 0.00 | 0.00 | - |
| Wei Shuanglai | Supervisor | Male | 55 | Former | 0.00 | 0.00 | - |
| Chen Xiaobei | Supervisor | Female | 50 | Former | 0.00 | 0.00 | - |
| Shi Hong | Supervisor | Female | 40 | Former | 0.00 | 0.00 | - |
| He Daopin | Employee supervisor | Male | 53 | Former | 146.32 | 47.85 | No |
| Yao Xiangjun | Senior management | Male | 45 | Former | 269.80 | 146.35 | No |
| Zhang Zhaohong | Senior management | Male | 52 | Former | 235.03 | 119.90 | No |
| Zhong Huifeng | Senior management | Male | 52 | Former | 416.77 | 268.58 | No |
| Miao Chuanbin | Senior management | Male | 49 | Former | 210.52 | 99.86 | No |
| Xie Zhongdong | Senior management | Male | 52 | Former | 250.98 | 129.98 | No |
| Total | -- | -- | -- | -- | 5,663.74 | 3,260.59 | -- |
VI Performance of Duty by Directors in the Reporting Period
1. General Meeting Convened during the Reporting Period
| Meeting | Date of the meeting | Disclosure date | Meeting resolutions |
| The 37th Meeting of the 9th Board of Directors | 27 January 2022 | 28 January 2022 | The Proposal on Revising the Management System for Professional Managers and the Proposal on Election of Members of the Special Committee of the Board of Directors were deliberated and approved. |
| The 38th Meeting of the 9th Board of Directors | 14 March 2022 | 15 March 2022 | The Proposal on the Intended Capital Injection to Tianjin Xianzhilian Investment Centre (Limited Partnership) and Related Transactions was deliberated and approved. |
| The 39th Meeting of the 9th Board of Directors | 30 March 2022 | 31 March 2022 | The following reports and proposals were deliberated and approved, i.e., Report on Business Operations for 2021, Report on the Work of the Board of Directors for 2021, Full Annual Report and Summary for 2021, Financial Final Report for 2021 and Business Plan for 2022, Proposal for the Distribution of Profits for 2021, Special Statement on Non-operating Funds Utilization and Other Related Financial Transactions in 2021, Special Report on Deposit and Usage of Raised Fund in 2021, Proposal on Expected Routine Connected Transactions for 2021, Proposal for Change in Accounting Policy, Proposal on Borrowing and Credit Line, Proposal on the Development of Structured Deposits and Other Principal-protected Business, Proposal on Provision of Guarantee by a Subsidiary of Beijing BOE Energy Technology Co., Ltd. for the 200,000 kW Photovoltaic Project of Sonid Right Banner, |
BOE Technology Group Co., Ltd. Annual Report 2022
| Proposal on Provision of Guarantee for BOE Vision Electronic Technology Co., Ltd., Proposal on the Intended Appointment of an Audit Agency for 2022, Proposal on Repurchase of Domestic Listed Foreign Investment Shares (B Share) of the Company, 2021 Annual Internal Control Evaluation Report, 2021 Annual Corporate Social Responsibility Report, Proposal for Authorizing the Chairman of the Board to Exercise his/her Powers, Proposal on the Election of the Board of Directors, Proposal on Purchase of Liability Insurance for Directors, Supervisors, and Senior Managers, Proposal on the Amendment of the Articles of Association of the Company and other Policies, Proposal on the Revision of the Governance Policies of the Company, and Proposal for Holding the 2021 Annual General Meeting of Shareholders. | |||
| The 40th Meeting of the 9th Board of Directors | 22 April 2022 | - | The Proposal on the Company's Business Objectives, Remuneration and Appraisal of the Chairman of the Executive Committee in 2022 was deliberated and approved. |
| The 41st Meeting of the 9th Board of Directors | 27 April 2022 | - | The Proposal on the First Quarter Report for 2022 was deliberated and approved. |
| The 1st Meeting of the 10th Board of Directors | 28 April 2022 | 29 April 2022 | The following reports and proposals were deliberated and approved, i.e., Proposal on the Election of the Chairman and the Vice Chairman of the Tenth Session of the Board of Directors, Proposal on the Organization of the Special Committee of the Tenth Session of the Board of Directors, Proposal on the Appointment of Senior Managers of the Company, and Proposal on the Appointment of Securities Affairs Representatives of the Company. |
| The 2nd Meeting of the 10th Board of Directors | 19 July 2022 | 20 July 2022 | The Proposal on the Intended Acceptance of Part of the Equity of Hefei BOE Display Technology Co., Ltd. and Related Transactions and the Proposal on Convening the First Extraordinary General Meeting of Shareholders for 2022 were deliberated and approved. |
| The 3rd Meeting of the 10th Board of Directors | 28 July 2022 | - | The Proposal on the Capital Injection to BOE Yiyun Technology Co., Ltd. by a Subsidiary of the Company and Related Transactions, the Proposal on Increasing the Expected Routine Connected Transactions for 2022, and the Proposal on the Capital Increase, Share Expansion, and Implementation of Equity Incentive Schemes of the Subsidiaries of the Company were deliberated and approved. |
| The 4th Meeting of the 10th Board of Directors | 19 August 2022 | - | The Proposal on the Remuneration and Appraisal of the Chairman of the Executive Committee in 2021 was deliberated and approved. |
| The 5th Meeting of the 10th Board of Directors | 26 August 2022 | 30 August 2022 | The following reports and proposals were deliberated and approved, i.e., Proposal for Deliberation on the Full Text and Summary of the Semi-Annual Report for 2022, Proposal for Deliberation on the Special Report on the Deposit and Actual Use of Raised Funds for the Semi-Annual Period of 2022, Proposal for Deliberation on the Summary Statement of Non-operating Funds Utilization and Other Related Financial Transactions in the Semi-annual Period of 2022, Proposal on Adjustment of Exercise Price of Stock Options and Repurchase Price of Restricted Shares, Proposal for the Repurchase and Write-off of Certain Restricted Shares, Proposal for the Write-off of Certain Stock Options, Proposal on the Revision of the Governance Policies of the Company, and Proposal on Changing the Term of the General Meeting of Shareholders and Convening the First Extraordinary General Meeting of Shareholders for 2022. |
| The 6th Meeting of the 10th Board of Directors | 28 October 2022 | 31 October 2022 | The following proposals were deliberated and approved, i.e., Proposal on Deliberation on the Third Quarter Report of 2022, Proposal on the Investment for the Development of the Project of the Production Lines of the 6th Generation Semiconductor Display Devices of BOE, Proposal on the Change of Registered Capital and the Amendment of the Articles of Association of the Company and other Policies, Proposal on the Revision of the Governance Policies of the Company, and Proposal on Convening a General Meeting of Shareholders. |
BOE Technology Group Co., Ltd. Annual Report 2022
| The 7th Meeting of the 10th Board of Directors | 4 November 2022 | 7 November 2022 | The Proposal on the Intended Subscription of A shares Issued by HC SemiTek Corporation Limited to Specific Targets in a Non-public Manner was deliberated and approved. |
| The 8th Meeting of the 10th Board of Directors | 16 November 2022 | 17 November 2022 |
The Proposal on the Intended Capital Injection to BEHC Industrial InvestmentCo., Ltd. and Related Transactions was deliberated and approved.
| The 9th Meeting of the 10th Board of Directors | 22 November 2022 | - | The Proposal on the Intended Sale of Certain Shares of Some of the Company's Subsidiaries was deliberated and approved. |
| The 10th Meeting of the 10th Board of Directors | 28 December 2022 | 30 December 2022 | The Proposal on the Intended Acceptance of Part of the Equity of Hefei BOE Display Technology Co., Ltd. and Related Transactions was deliberated and approved. |
2. Attendance of Directors at Board Meetings and General Meetings
| Attendance of directors at board meetings and general meetings | |||||||
| Director | Total number of board meetings the director was eligible to attend | Board meetings attended on site | Board meetings attended by way of telecommunication | Board meetings attended through a proxy | Board meetings the director failed to attend | The director failed to attend two consecutive board meetings (yes/no) | General meetings attended |
| Chen Yanshun | 15 | 4 | 11 | 0 | 0 | No | 2 |
| Pan Jinfeng | 15 | 1 | 14 | 0 | 0 | No | 0 |
| Liu Xiaodong | 15 | 4 | 11 | 0 | 0 | No | 3 |
| Gao Wenbao | 15 | 2 | 13 | 0 | 0 | No | 1 |
| Sun Yun | 15 | 4 | 11 | 0 | 0 | No | 3 |
| Ye Feng | 15 | 3 | 12 | 0 | 0 | No | 3 |
| Tang Shoulian | 15 | 3 | 12 | 0 | 0 | No | 3 |
| Zhang Xinmin | 15 | 2 | 13 | 0 | 0 | No | 3 |
| Guo He | 10 | 3 | 7 | 0 | 0 | No | 0 |
| Wang Duoxiang | 10 | 2 | 7 | 1 | 0 | No | 1 |
| Wang Jing | 2 | 0 | 2 | 0 | 0 | No | 0 |
| Song Jie | 5 | 0 | 4 | 1 | 0 | No | 0 |
| Hu Xiaolin | 5 | 0 | 5 | 0 | 0 | No | 1 |
| Li Xuan | 5 | 0 | 5 | 0 | 0 | No | 0 |
| Fan Yuanning | 5 | 2 | 3 | 0 | 0 | No | 0 |
Why any independent director failed to attend two consecutive board meetings:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.
□ Yes ? No
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2022
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.?Yes □ NoSuggestions from directors adopted or not adopted by the CompanyThe Board of Directors of the Company strictly obeyed relevant laws and regulations as well as the rules and regulations of theCompany to fulfill the responsibilities seriously, in order to guarantee the standardization and effectiveness of BOE's governancestructure. The Company's Board of Directors has a reasonable structure and a moderate number of people. All of them are equippedwith good professional background, and necessary knowledge, skills and quality to fulfill their responsibilities. They learned about andkept a constant focus on BOE’s production and operation, financial status, and influence and risks of significant events. They also tookthe initiative to search for information needed in their decision-making so as to ensure efficient operation and scientific decision-making of the Board of Directors. The executive directors of the Company are responsible for the operations management of theCompany. They understand the business and operational status of the Company, and with rich management experience, they can makedecisions efficiently. Non-executive directors are shareholder directors. As the communication bridge between shareholders and themanagement of the Company, they can combine the suggestions of shareholders with long-term interests of the Company, andparticipate in the decision-making process of significant events of the Company to protect the interests of shareholders. Independentdirectors are experts and scholars in the fields of technology, finance, law, and etc. They can express their opinions and views accordingto their expertise and advantages. During the Reporting Period, in accordance with Company Law, Securities Law, Stock Listing Rules,Guidance on Establishing Independent Director System for Listed Companies, Articles of Association, Rules of Procedure for the Boardof Directors and Independent Director Policy, directors of the Company paid special attention to the standardized operation of theCompany, performed their duties diligently, issued much precious professional advice in terms of the perfection of policies and routineoperating decision-making, etc., and issued their independent and fair opinions as independent directors on the related-partytransactions, engagement of audit firm, dividend plan, recruitment of senior management, and other events needing their opinionsoccurred in the Reporting Period, as well as played their due roles in perfecting the supervisory mechanism of the Company, protectingthe legal right of the Company and the whole shareholders.VII Performance of Duty by Specialized Committees under the Board in the Reporting Period
| Committee | Members | Number of meetings convened | Convened date | Content | Important opinions and suggestions raised | Other information about the performance of duty | Details about issues with objections (if any) |
| Strategy Committee under the 9th Board of Directors | Director: Mr. Chen Yanshun; Members: Mr. Liu Xiaodong, Ms. Sun Yun, Mr. Gao Wenbao | 6 | 17 January 2022 | Proposals that needed to be reported to the Board of Directors for approval were reviewed. | No objection | - | N/A |
| 4 March 2022 | - | N/A | |||||
| 18 March 2022 | - | N/A | |||||
| 12 April 2022 | - | N/A | |||||
| 15 April 2022 | - | N/A | |||||
| 18 April 2022 | - | N/A | |||||
| Strategy Committee under the 10th Board of Directors | Director: Mr. Chen Yanshun; Members: Mr. Liu Xiaodong, Ms. Sun Yun, Mr. Gao Wenbao | 10 | 28 April 2022 | Proposals that needed to be reported to the Board of Directors for approval were reviewed. Meanwhile, the election of the Secretary of the Tenth Session of the Strategy Committee was approved. Moreover, the | No objection | - | N/A |
BOE Technology Group Co., Ltd. Annual Report 2022
| members of the Strategic Advisory Committee of the Tenth Session of the Board of Directors were nominated. | |||||||
| 8 July 2022 | Proposals that needed to be reported to the Board of Directors for approval were reviewed. | No objection | - | N/A | |||
| 18 July 2022 | - | N/A | |||||
| 9 August 2022 | - | N/A | |||||
| 16 August 2022 | - | N/A | |||||
| 18 October 2022 | Proposals that needed to be reported to the Board of Directors for approval were reviewed. Meanwhile, authorities related to organization and HR strategy were granted. | No objection | - | N/A | |||
| 31 October 2022 | Proposals that needed to be reported to the Board of Directors for approval were reviewed. | No objection | - | N/A | |||
| 1 November 2022 | - | N/A | |||||
| 11 November 2022 | - | N/A | |||||
| 16 December 2022 | - | N/A | |||||
| Risk Control and Audit Committee under the 9th Board of Directors | Convener (Director): Mr. Zhang Xinmin; Members: Mr. Song Jie, Mr. Li Xuan, Mr. Tang Shoulian | 1 | 25 January 2022 | Financial and accounting statements prepared by the Company, the Report on the Audit Work of CPAs for Annual Audit and other relevant reports, and the Summary of Risk Management and Audit Work for 2021 were reviewed. Meanwhile, the 2022 Audit Plan was deliberated. | No objection | - | N/A |
| Convener (Director): Mr. Zhang Xinmin; Members: Mr. Song Jie, Mr. Li Xuan, Mr. Tang Shoulian, Mr. Ye Feng | 2 | 18 March 2022 | The 2021 Financial and Accounting Report, the 2021 Annual Internal Control Evaluation Report, the Proposal on the Intended Appointment of an Audit Agency for 2022, and the Special Report on Deposit and Use of the Raised Funds of 2021 were deliberated. | No objection | - | N/A | |
| 15 April 2022 | The Proposal on the First Quarter Report for 2022 was deliberated. | No objection | - | N/A | |||
| Risk Control and Audit Committee under the 10th Board of Directors | Convener (Director): Mr. Zhang Xinmin; Members: Mr. Tang Shoulian, Mr. Guo He, Mr. Wang Duoxiang, Mr. Ye Feng | 2 | 16 August 2022 | The Proposal for Deliberation on the Full Text and Summary of the Semi-Annual Report for 2022 and the Proposal for Deliberation on the Special Report on the Deposit and Actual Use of Raised Funds for the Semi-Annual Period of 2022 were deliberated. | No objection | - | N/A |
| 18 October 2022 | The Proposal on Deliberation on the Third | No objection | - | N/A |
BOE Technology Group Co., Ltd. Annual Report 2022
| Quarter Report of 2022 was deliberated. | |||||||
| Nomination & Remuneration & Appraisal Committee under the 9th Board of Directors | Convener (Director): Mr. Li Xuan; Members: Mr. Hu Xiaolin, Mr. Tang Shoulian, Mr. Zhang Xinmin | 1 | 7 January 2022 | The Proposal on Revising the Management System for Professional Managers was deliberated. | No objection | - | N/A |
| Convener (Director): Mr. Li Xuan; Members: Ms. Wang Jing, Mr. Hu Xiaolin, Mr. Tang Shoulian, Mr. Zhang Xinmin | 1 | 16 March 2022 | The Proposal on the Election of the Board of Directors and the Proposal on Purchase of Liability Insurance for Directors, Supervisors, and Senior Managers were deliberated. | No objection | - | N/A | |
| Convener (Director): Mr. Li Xuan; Members: Mr. Hu Xiaolin, Mr. Tang Shoulian, Mr. Zhang Xinmin | 2 | 7 April 2022 | The Proposal on the Company's Business Objectives, Remuneration and Appraisal of the Chairman of the Executive Committee in 2022 was deliberated. | No objection | - | N/A | |
| 18 April 2022 | The Proposal on the Appointment of Senior Managers of the Company and the Proposal on the Appointment of Securities Affairs Representatives of the Company were deliberated. | No objection | - | N/A | |||
| Nomination & Remuneration & Appraisal Committee under the 10th Board of Directors | Convener (Director): Mr. Guo He; Members: Mr. Fan Yuanning, Mr. Tang Shoulian, Mr. Zhang Xinmin, Mr. Wang Duoxiang | 2 | 9 August 2022 | The Proposal on the Company's Business Objectives, Remuneration and Appraisal of the Chairman of the Executive Committee in 2022 was deliberated. | No objection | - | N/A |
| 16 August 2022 | The Proposal on Adjustment of Exercise Price of Stock Options and Repurchase Price of Restricted Shares, the Proposal for the Repurchase and Write-off of Certain Restricted Shares, and the Proposal for the Write-off of Certain Stock Options were deliberated. | No objection | - | N/A |
VIII Performance of Duty by the Supervisory CommitteeIndicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting Period.
□Yes ? No
The Supervisory Committee raised no objections in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2022
IX Employees
1. Number, Functions and Educational Backgrounds of Employees
| Number of in-service employees of the Company as the parent at the period-end | 2,730 |
| Number of in-service employees of major subsidiaries at the period-end | 61,833 |
| Total number of in-service employees | 88,343 |
| Total number of paid employees in the Reporting Period | 88,343 |
| Number of retirees to whom the Company as the parent or its major subsidiaries need to pay retirement pensions | 12 |
| Functions | |
| Function | Employees |
| Production | 55,434 |
| Sales | 2,856 |
| Technical | 26,395 |
| Financial | 789 |
| Administrative | 244 |
| Manager | 1,990 |
| Other | 635 |
| Total | 88,343 |
| Educational backgrounds | |
| Educational background | Employees |
| Doctor | 391 |
| Master | 9,301 |
| Bachelor | 22,653 |
| College | 25,817 |
| Technical secondary school | 11,249 |
| Other | 18,932 |
| Total | 88,343 |
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
As a professional organization for talent training, BOE University (BOEU) conveys the Group's strategic requirements to employees,as well as facilitates the implementation of such requirements, through education and training, in order to promote the construction ofBOE's talent training system. Meanwhile, BOEU continues to promote talent cultivation in terms of mindset renewal, cognitivedevelopment, and ability improvement, so as to promote talent cultivation and intellectual capital appreciation, export cultural valueand influence, facilitate the achievement of strategic goals, and play a positive role in value promotion, requirement implementationand talent cultivation.In 2022, BOEU attracted 28,343 trainees, and the training duration totaled 301,541 hours. Specifically:
1. In terms of leading talent cultivation, program upgrading was completed as the programs launched since 2016 were replaced by aseries of new programs, such as the BOE Leading Talent Cultivation Program and the BOE MiniMBA. Moreover, the average trainingduration reached 41 hours, representing a performance level of top-class enterprises.
BOE Technology Group Co., Ltd. Annual Report 2022
2. In terms of manager cultivation, the cultivation program for middle-level and first-line managers was implemented as planned, whilethe participation rate of the Group's cadres in the Group's required courses considerably increased.
3. In terms of professional cultivation, the approach of high-quality general curricula was explored with the focus on trans-organizational improvements in professional skills.
4. In terms of industrial talent training, the cultivation program for newly employed university graduates was comprehensively updated,as U Class admitted 9,190 students who studied for 48,166 hours in total.
5. In terms of the exploration of the digital learning mode, the newly launched digital learning platform provided more convenienceand more effective support for online operation, content recommendation, learning motivation and learning interaction. As a result, thelog-in sessions of the platform totaled 406,520.In 2022, BOEU hosted the First Knowledge Contributors' Meeting, where outstanding training programs, courses, cases, teachers andtraining partners of the Group in 2022 were selected and commended. A total of 83 business organizations actively applied for theselection, which was conducted in multiple rounds by 144 business judges. Among more than 3000 outcomes of intellectual capitalcompeted with each other, 100 Best Cases of the Year, 10 Best Training Programs of the Year, 33 Best Training Partners of the Year,50 Best Courses of the Year, and 62 Best Teachers of the Year were generated. The aim of the display and commendation of theseaward-winning achievements is to encourage more outstanding BOE-ers to actively participate in talent empowerment, as well as thedevelopment and application of intellectual capital, and to promote the sharing and dissemination of excellent experiences from theinternal.
4. Labor Outsourcing
□Applicable ? Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy, especially the cash dividend policy, was formulated, executed or revised in the Reporting Period:
□Applicable ? Not applicable
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts that theCompany has made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders arepositive.
□Applicable ? Not applicable
Final dividend plan for the Reporting Period? Applicable □ Not applicable
| Bonus shares for every 10 shares (share) | 0 |
| Dividend for every 10 shares (RMB) (tax inclusive) | 0.61 |
| Total shares as the basis for the profit distribution proposal (share) | 37,668,177,369 |
| Cash dividends (RMB) (tax inclusive) | 2,297,758,819.51 |
| Cash dividends in other forms (such as share repurchase) (RMB) | 1,044,247,462.99 |
| Total cash dividends (including those in other forms) (RMB) | 3,342,006,282.50 |
| Attributable profit (RMB) | 6,594,097,131.00 |
| Total cash dividends (including those in other forms) as % of total profit distribution (%) | 145.45% |
| Cash dividend policy adopted | |
| If the Company is in a growth stage and has any plan for significant expenditure, in profit distribution, the proportion of cash dividends shall be 20% or above. | |
| Details about the proposal for profit distribution and converting capital reserve into share capital | |
| Based on the total shares of 37,668,177,369 after the deduction of shares held through the special account for repurchase, the Company | |
BOE Technology Group Co., Ltd. Annual Report 2022
planned to distribute, with the undistributed profit, a cash dividend of RMB0.61 (tax inclusive) per 10 shares to all its shareholders. Andno bonus share was granted, nor was any capital reserve converted into share capital. If the total share capital of the Company changesdue to factors such as the conversion of convertible bonds to shares, share repurchases, the exercise of rights regarding equity incentives,and the listing of increased shares after refinancing before the implementation of the distribution scheme, the adjustment will be conductedaccording to the principle of "the distribution amount will be adjusted with a fixed distribution ratio". The specific distributed amountshall be subject to the actual distributed amount. The said proposal is in compliance with the Company’s Articles of Association andrelevant approval procedure, and the independent directors have expressed their independent opinion on the proposal, which fully protectsthe legal rights and interests of the minority investors.
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures forEmployees
? Applicable □ Not applicable
1. Equity incentive
The Company held the 15th Meeting of the 9th Board of Directors and the 2nd Extraordinary General Meeting of 2020 on 27 August2020 and 17 November 2020 respectively and deliberated and approved the 2020 Stock Option and Restricted Stock Grant Program,in which the Company intends to implement the Equity Incentive Scheme, including both the Stock Option Incentive Scheme and theRestricted Stock Incentive Scheme. On 30 October 2020, the Company received the Approval on the Implementation of the EquityIncentive Scheme of BOE (J.G.Z. [2020] No. 77) from the State-owned Assets Supervision and Administration Commission of People'sGovernment of Beijing Municipality forwarded by Beijing Electronics Holding Co., Ltd, the actual controller, and the State-ownedAssets Supervision and Administration Commission of People's Government of Beijing Municipality approved in principle theimplementation of this incentive scheme by the Company. Following the approval of the Proposal on the First Grant of Stock Optionsand Restricted Shares to Incentive Objects at the 20th Meeting of the 9th Board of Directors and the 8th Meeting of the 9th SupervisoryCommittee, the Company disclosed the Announcement on Completion of Registration of the First Grant of the 2020 Stock Option andRestricted Stock Incentive Scheme (Announcement No.: 2020-086) on 31 December 2020. Following the approval of the Proposal onthe Awarding of Reserved Stock Options to Incentive Objects at the 31st Meeting of the 9th Board of Directors and the 13th Meetingof the 9th Supervisory Committee, the Company disclosed the Announcement on Completion of Registration of the Reserved andGranted Stock Option of the 2020 Stock Option and Restricted Stock Incentive Scheme (Announcement No.: 2021-084) on 23 October2021. The Company disclosed the Announcement on Adjustment of the Exercise Price of the Stock Option and the Restricted ShareRepurchase Price in the 2020 Stock Option and Restricted Stock Incentive Scheme of the Company (Announcement No.: 2022-059) on30 August 2022. Since the equity distribution of the Company for 2021 has been completed, the restricted share repurchase priceinvolved in this incentive scheme is adjusted from RMB2.62/share to RMB2.41/share, the exercise price of the first grant of the stockoption is adjusted from RMB5.33/share to RMB5.12/share, and the exercise price of the reserved and granted stock option is adjustedfrom RMB5.83/share to RMB5.62/share. The Company disclosed the Announcement on the Repurchase and Write-off of CertainRestricted Shares (Announcement No.: 2022-060) and the Announcement on the Write-off of Certain Stock Options (AnnouncementNo.: 2022-061) on 30 August 2022, in which the Company intends to repurchase and cancel 6,153,700 shares of restricted shares andcancel a total of 24,073,200 shares of stock options in this incentive scheme that have been awarded to incentive objects but have notbeen exercised by them since some incentive objects voluntarily resigned for personal reasons. Moreover, the above-mentioned mattersregarding the repurchase and write-off of restricted shared were deliberated and approved in the First Extraordinary General Meetingof Shareholders of 2022 held on 15 September 2022. Following the approval of the Proposal on the Achievement of Exercise Conditionsof the First Exercise Schedule for the Stock Option Granted by the Stock Option Incentive Scheme of 2020 and the Fulfillment of theExercise Conditions for the Stock Option Granted for the First Time, the Proposal on the Repurchase and Write-off of CertainRestricted Shares and the Proposal for the Write-off of Certain Stock Options at the 13th Meeting of the 10th Board of Directors andthe 4th Meeting of the 10th Supervisory Committee, the Company disclosed the relevant announcements on the website ofcninfo.com.cn on 4 April 2023.
BOE Technology Group Co., Ltd. Annual Report 2022
Equity incentives for directors and senior management in the Reporting Period:
? Applicable □ Not applicable
Unit: share
| Name | Office title | Share options held at the period-begin | Share options granted in the Reporting Period | Shares feasible to exercise during the Reporting Period | Shares exercised during the Reporting Period | Exercise price of exercised shares during the Reporting Period (RMB/share) | Share options held at the period-end | Market price at the period-end (RMB/share) | Number of restricted shares held at the period-begin | Number of released shares for the Reporting Period | Number of restricted shares newly granted during the Reporting Period | The grant price of restricted shares (RMB/share) | Number of restricted shares held at the period-end |
| Chen Yanshun | Chairman of the Board, Chief of Executive Committee | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 2,000,000 | 0 | 0 | 0 | 2,000,000 |
| Liu Xiaodong | Vice Chairman of the Board, member of Executive Committee | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 1,800,000 | 0 | 0 | 0 | 1,800,000 |
| Gao Wenbao | Director, President, Vice Chairman of Executive Committee | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 1,500,000 | 0 | 0 | 0 | 1,500,000 |
| Sun Yun | Director, Member of Executive Committee, Executive vice president | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 1,500,000 | 0 | 0 | 0 | 1,500,000 |
| Feng Qiang | Member of Executive Committee, Executive vice president | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 750,000 | 0 | 0 | 0 | 750,000 |
| Wang Xiping | Member of Executive Committee, Executive vice president | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 750,000 | 0 | 0 | 0 | 750,000 |
| Feng Liqiong | Member of Executive Committee, Executive vice president, lead counsel | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 1,000,000 | 0 | 0 | 0 | 1,000,000 |
| Zhang Yu | Member of Executive Committee, Executive vice president | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 634,000 | 0 | 0 | 0 | 634,000 |
| Yang Xiaoping | Member of Executive Committee, Executive | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 634,000 | 0 | 0 | 0 | 634,000 |
BOE Technology Group Co., Ltd. Annual Report 2022
| vice president, CFO | |||||||||||||
| Guo Huaping | Senior vice president, Chief Culture Officer | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Liu Hongfeng | Vice president, Secretary of the Board | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 750,000 | 0 | 0 | 0 | 750,000 |
| Miao Chuanbin | Former senior management | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 650,000 | 0 | 0 | 0 | 650,000 |
| Xie Zhongdong | Former senior management | 0 | 0 | 0 | 0 | 0 | 0 | 3.38 | 750,000 | 0 | 0 | 0 | 750,000 |
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 12,718,000 | 0 | 0 | -- | 12,718,000 |
| Note (if any) | 1. 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. 2. Since March 2023, Mr. Miao Chuanbin and Mr. Xie Zhongdong were no longer the senior management (Professional Manager) and creased to hold any position in the Company, its branches or majority-owned subsidiaries due to their departure, and the restricted shares granted to them will be repurchased and cancelled in accordance with the provisions of this Incentive Plan; 3. In March 2023, Mr. Feng Qiang and Mr. Guo Huaping were engaged as the Company’s senior management (Professional Manager). | ||||||||||||
Appraisal of and Incentive for Senior ManagementAccording to the Articles of Association, Management System for Professional Managers and the Performance Management System, members of the senior management of the Company areappointed by the Board of Directors and sign the Appointment Contract and the Annual Target Responsibility Paper. The annual performance assessment and appointment period assessment willbe implemented. The annual performance assessment is determined by the annual task breakdown of the current year's targets and the appointment period targets, and the appointment periodassessment is based on medium- and long-term targets, and the salary and rewards are delivered according to the assessment results. Meanwhile, according to BOE's 2020 Stock Option andRestricted Stock Incentive Scheme and relevant laws and regulations, the granted stock interests will be determined to be unlocked after the lock-up period based on the achievement of relevantconditions.
BOE Technology Group Co., Ltd. Annual Report 2022
2. Implementation of Employee Stock Ownership Plans
□Applicable ? Not applicable
3. Other Incentive Measures for Employees
□Applicable ? Not applicable
XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
In line with the reform, the establishment of internal control regulation was enhanced according to the requirements for the establishment of internal control regulation of listed companies and theCompany's strategic requirements. Specifically, the internal control system was optimized and the internal control policies were revised, so as to guarantee the implementation of innovation andreform and promote the compliance and efficient development of business.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□Yes ? No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
| Subsidiary | Integration plan | Integration progress | Problem | Countermeasures taken | Settlement progress | Follow-up settlement plan |
| N/A | - | - | - | - | - | - |
XIV Internal Control Self-Evaluation Report or Independent Auditor’s Report on Internal Control
1. Internal Control Self-Evaluation Report
| Disclosure date of the internal control self-evaluation report | 4 April 2023 |
BOE Technology Group Co., Ltd. Annual Report 2022
| Index to the disclosed internal control self-evaluation report | On 4 April 2023, the Company disclosed 2022 Internal Control Appraisal Report, refer to www.cninfo.com.cn for details. | |
| Evaluated entities’ combined assets as % of consolidated total assets | 97.80% | |
| Evaluated entities’ combined operating revenue as % of consolidated operating revenue | 97.25% | |
| 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: Material weakness: The amount reported incorrectly is ≥1‰* total amount of assets of the Group (operating revenue) Serious weakness: 0.5‰*total amount of assets of the Group (operating revenue)≤ the amount reported incorrectly<1‰*total amount of assets of the Group (operating revenue) Common weakness: 0.1‰*total group assets (operating revenue)≤ the amount reported incorrectly <0.5‰*total group assets (operating revenue) | The quantitative standards for internal control defects not related to financial reporting determined by the Company are consistent with those over the financial reporting. See the left side for details. |
| Number of material weaknesses in internal control over financial reporting | 0 | |
BOE Technology Group Co., Ltd. Annual Report 2022
| Number of material weaknesses in internal control not related to financial reporting | 0 |
| Number of serious weaknesses in internal control over financial reporting | 0 |
| Number of serious weaknesses in internal control not related to financial reporting | 0 |
2. Independent Auditor’s Report on Internal Control
? Applicable □ Not applicable
| Opinion paragraph in the independent auditor’s report on internal control | |
| We believe that the Company and important subsidiaries make valid internal control on financial report in all significant aspects on 31 December 2022 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 | 4 April 2023 |
| Index to such report disclosed | The Company disclosed the Audit Report on Internal Control on 4 April 2023, for details, please refer to http://www.cninfo.com.cn |
| Type of the auditor’s opinion | Standard unqualified opinion |
| Material weaknesses in internal control not related to financial reporting | No |
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal control.
□Yes ? No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal control self-evaluation report issued by the Company’s Board.?Yes □ NoXV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed Company Governance
Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
Part V Environmental and Social ResponsibilityI Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental protection authorities of China.?Yes □ NoPolicies and industry standards pertaining to environmental protectionWith the establishment of an integrated environment management system based on ISO 14001, the Company strictly complies with the laws and regulations such as the Environmental ProtectionLaw of the People's Republic of China, Water Pollution Prevention and Control Law, Air Pollution Prevention and Control Law and Law on the Prevention and Control of Environmental Pollutionby Solid Waste. The green environment management system was built in combination with the requirements of a series of management systems, such as ISO 9001, QC 080000, ISO 14001 andISO 50001.Environmental protection administrative licenseCorresponding environmental impact assessments have been conducted for all construction projects under the control of the Company in conformity with applicable national and local laws andregulations, and corresponding administrative licenses have also been obtained.The regulations for industrial emissions and the particular requirements for controlling pollutant emissions that are associated with production and operational activities.
| Name of polluter | Type of major pollutants | Name of major pollutants | Way of discharge | Number of discharge outlets | Distribution of discharge outlets | Discharge concentration/intensity | Discharge standards implemented | Total discharge | Approved total discharge | Excessive discharge |
| Beijing BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 55.63 mg/L | 500 mg/L | 159.38t | 828.418t | None |
| Ammonia nitrogen | 2.91 mg/L | 45 mg/L | 8.36t | 59.173t | ||||||
| The 4.5th generation TFT-LCD production | Waste water pollutant | COD | Standard emission after being | 1 | North side of factory | 114.21 mg/L | 500 mg/L | 106.89t | 385.3t | None |
| Ammonia nitrogen | 15.58 mg/L | 45 mg/L | 14.62t | 54.69t |
BOE Technology Group Co., Ltd. Annual Report 2022
| line of Chengdu BOE Optoelectronics Technology Co., Ltd. | treated by sewage treatment system | |||||||||
| Hefei BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 30.98mg/L | 380mg/L | 105.83t | 1081.55t | None |
| Ammonia nitrogen | 1.51mg/L | 30mg/L | 5.21t | 101.23t | ||||||
| Beijing BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 (main wast water outlet) | East gate of factory | 115.27mg/L | 500mg/l | 492.40t | 1570.32t | None |
| Ammonia nitrogen | 17.70mg/L | 45mg/l | 74.86t | 183.20t | ||||||
| COD | 1(S2 domestic sewage outlet II) | South gate of dormitory area | 42.83mg/L | 500mg/l | 6.25t | 80.76t | ||||
| Ammonia nitrogen | 25.45mg/L | 45mg/l | 3.63t | 6.06t | ||||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast side of factory | 135mg/L | 350mg/L | 768.1517t | 3135.0363t | None |
| Ammonia nitrogen | 10.4mg/L | 35mg/L | 59.23t | 313.5036t | ||||||
| Erdos Yuansheng Optoelectronics Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 79.12mg/L | 500mg/L | 102.84t | 713.81t | None |
| Ammonia nitrogen | 3.53mg/L | 45mg/L | 4.74t | 76.82t | ||||||
| The 6th generation flexible AMOLED production line of Chengdu BOE Optoelectronics | Waste water pollutant | COD | Standard emission after being treated by sewage | 1 | North side of factory | 36.67mg/L | 500mg/L | 140.28t | 2443.16t | None |
| Ammonia nitrogen | 17.30mg/L | 45mg/L | 67.23t | 203.53t |
BOE Technology Group Co., Ltd. Annual Report 2022
| Technology Co., Ltd. | treatment system | |||||||||
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 91.23mg/L | 400mg/L | 348.42t | 1900.24t | None |
| Ammonia nitrogen | 5.13mg/L | 30mg/L | 19.39t | 146.17t | ||||||
| Hefei BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 54.58mg/L | 400mg/L | 541.89t | 4759.56t | None |
| Ammonia nitrogen | 13.1mg/L | 35mg/L | 128.67t | 416.46t | ||||||
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast side of factory | 12.54 mg/L | 500 mg/L | 56.35t | 297.50t | None |
| Ammonia nitrogen | 0.26 mg/L | 45 mg/L | 1.18t | 29.75t | ||||||
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 20.69mg/L | 500mg/L | 78.84t | 7130.58t | None |
| Ammonia nitrogen | 1.71mg/L | 45mg/L | 6.53t | 368.59t | ||||||
| Chongqing BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 11.01mg/L | 400mg/L | 21.3t | 4171.2t | None |
| Ammonia nitrogen | 1.78mg/L | 35mg/L | 2.5t | 398.4t | ||||||
| Wuhan BOE Optoelectronics Technology Co., | Waste water | COD | Standard emission | 1 | Northeast corner of | 23.96mg/L | 30mg/L | 115.67t | 488.6t | None |
| Ammonia | 0.09mg/L | 1.5mg/L | 0.43t | 24.45t |
BOE Technology Group Co., Ltd. Annual Report 2022
| Ltd. | pollutant | nitrogen | after being treated by sewage treatment system | factory | ||||||
| Nanjing BOE Display Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | South side of factory | 71.2mg/L | 500mg/L | 239.53t | 2215.01t | None |
| Ammonia nitrogen | 2.79mg/L | 45mg/L | 9t | 183.67t | ||||||
| Chengdu BOE Display Sci-tech Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 155.00mg/L | 500mg/L | 964.17t | 4310.1t | None |
| Ammonia nitrogen | 14.03mg/L | 45mg/L | 87.27t | 148.8t | ||||||
| BOE (Hebei) Mobile Display Technology Co., Ltd. | Waste water pollutant | COD | Discharged into sewage treatment plant through municipal pipes | 1 | North side of factory | 135.453mg/L | 500mg/L | 11.103t | 88.491t | None |
| Ammonia nitrogen | 6.583mg/L | 45mg/L | 0.54t | 7.754t | ||||||
| Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. | Waste water pollutant | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 127.6mg/L | 500mg/L | 6.37t | Industrial and domestic sewage of the project, upon treatment, is discharged to the industrial sewage plant of Linkong Industrial Park in Dianzhong New Zone, Kunming, | None |
BOE Technology Group Co., Ltd. Annual Report 2022
| Yunnan Province and included in the total discharge of the sewage plant. | |||||
| Ammonia nitrogen | 13.9mg/L | 45mg/L | 0.69t | Industrial and domestic sewage of the project, upon treatment, is discharged to the industrial sewage plant of Linkong Industrial Park in Dianzhong New Zone, Kunming, Yunnan Province and included in the total discharge of the sewage plant. |
BOE Technology Group Co., Ltd. Annual Report 2022
Treatment of pollutantsThe waste water which is generated by each subordinate subsidiary of the Company can be divided in to industrial waste water andhousehold waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separately according todifferent natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water is collected byrain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory, industrial waste wateris discharged into sewage treatment factory through municipal pipe network for intense treatment. Household waste water compriseshousehold fecal waste water and canteen oily waste water etc, after pretreatment, the waste water is discharged into municipal sewagetreatment factory. All industrial and household waste water is not discharged directly, and the concentration and total amount of drainagesatisfy the requirements of national and local relevant standards.The exhaust gas which is emitted by each subordinate subsidiary mainly comes from technology exhaust gas during production process,generally including acid exhaust gas, alkaline exhaust gas, special exhaust gas and organic exhaust gas etc. Various exhaust gas can beemitted after being treated by independent emission treatment system. The emission concentration and total amount satisfy the nationaland local relevant standards.The waste materials which are generated by each subordinate subsidiary can be divided into general industrial solid waste, hazardouswaste materials and household waste materials, and they all handed over to qualified recycler for regular treatment. The disposal rateof hazardous waste materials is 100%.Self-monitoring PlanCurrently, major pollutant-discharging units subordinated to the Company have worked out corresponding self-monitoring planaccording to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectivelyformulated by Beijing BOE Display Technology Co., Ltd. and Beijing BOE Optoelectronics Technology Co., Ltd. have been publishedvia Beijing Environmental Information Disclosure Platform for Enterprises and Institutions and the Company’s official website.Contingency Plan for Emergent Environmental IncidentsEvery subsidiary of the Company has formulated, updated and filed corresponding contingency plan for emergent environmentalincidents in local environmental protection departments according to their requirements. However, such contingency plan consists ofcomprehensive plan, special plan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardouswastes and dangerous chemicals etc. Meanwhile, drills must be conducted regularly.Input in environment governance and protection and payment of environmental protection taxThe Company unremittingly advocates and practices the idea of sustainable environmental development. By continuously increasinginvestment in environmental governance and protection, and improving the production and operation processes regardingenvironmental impacts, the Company effectively minimized the impact of operation on the environment. Subsidiaries of the Companythat emit taxable pollutants to the environment shall strictly comply with the requirements of the Environmental Protection Tax Lawof the People's Republic of China and the local government and pay the environmental protection taxes.Measures taken to decrease carbon emission in the Reporting Period and corresponding effects? Applicable □ Not applicableTo respond to the national "3060" double carbon goal and guarantee the unified planning and effective implementation of carbonemission peak and carbon neutrality of the Company, BOE, in 2022, clearly raised a carbon emission management policy featuring"comprehensive coordination, continuous reduction in carbon emissions, value extension and green development". Meanwhile, itincluded the performance in carbon emission management in the Company's performance management system to promote theCompany's management of carbon emission.On the basis of the "6·24" action plan for peaking carbon emissions, more detailed measures and action plans for green management,green products, green manufacturing, green recycling, green investment and green actions were implemented. Meanwhile, in order to
BOE Technology Group Co., Ltd. Annual Report 2022
improve the digital management of the Company's "double carbon" affairs, an efficient and unified enterprise management and controlplatform was developed to realize full-process management featuring optimization and control at the source, continuous improvementsin the energy structure, dynamic control of processes, and effective analysis of data.Subsidiaries achieve the goal of energy-saving and emission reduction through the operation of the energy management system andthe incentive energy-saving program through refined management on the energy management platform. Results of energy-saving andemission reduction: The number of energy-saving and emission reduction projects was 151 in total in 2022. As at the end of December,
165.2831 million kWh of electricity, 8.5354 million tons of water, 48,300 cubic meters of natural gas, 13.5584 million cubic meters ofnitrogen, and 3.4 thousand cubic meters of vapor had been saved.Meanwhile, in order to cope with the challenges and opportunities brought by carbon trading, subsidiaries in Beijing actively conductedcarbon emission trading and accumulated carbon trading experience to assist the Company in achieving its goals of carbon emissionpeak and carbon neutrality.Administrative penalties imposed for environmental issues during the Reporting Period
| Name | Reason | Case | Result | Influence on production and operation | Rectification measures |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environment information that should be disclosedNoOther related environment protection informationThe Company fully considers design for recycling, universal design and minimal design of products in the product design stage, adheresto the green management concept of the full life cycle of products, and follows the principles of minimizing energy and resourceconsumption, minimizing the impact on the ecological environment and maximizing the recyclability.In order to reduce the impact of the logistics transportation process on the environment, the Company and its partners constantlyimprove the transportation management system, carry out reasonable layout and planning of transportation stations and routes, improvethe delivery efficiency, and reduce greenhouse gas emissions.II Social ResponsibilityBOE discloses its Corporate Social Responsibility Report every year. As of 2022, BOE had consecutively disclosed SocialResponsibility Report for 13 years. Please view and download such report via official website of BOE www.boe.com or Cninfo .III Consolidation and Expansion of Poverty Alleviation Outcomes, and Rural RevitalizationTo thoroughly implement the national strategy of rural revitalization, BOE made concerted and effective efforts in educationinnovation, health support and consumption support. By promoting the effective coordination between the consolidation and expansionof the achievements of poverty alleviation and rural revitalization, BOE composed a new chapter of rural revitalization.
1. Education innovation
BOE always aims to use innovative technology to promote education in remote areas and support rural revitalization. We continuedthe implementation of the "Lighting the Way to Growth" education project for public benefits. BOE donated 40 smart classrooms inHuize County, Yunnan Province, Taihu County, Anhui Province, and Xixiang County, Shaanxi Province, in 2022. Equipped withBOE's smart solutions for education in an all-round way, these classrooms facilitated the hardware construction and improved thesoftware capacity of local township center schools of these counties. Moreover, through comprehensive training, BOE contributed tothe improvement of the basic teaching quality and digital teaching capacity of local teachers. In total, the project has resulted in more
BOE Technology Group Co., Ltd. Annual Report 2022
than 70 smart classrooms that have benefited more than 24,000 students and more than 1,000 teachers in remote areas. Thus, the projecthas comprehensively promoted digital education in remote areas, giving more and more children and teenagers in remote areas in Chinaaccess to high-quality, digital resources of education.
2. Health support
BOE gave play to its own advanced medical resources and talent advantages to continuously pay attention to the social developmentof health care. To support the Rural Angel Project initiated by the China Foundation for Rural Development in Taihu County, AnhuiProvince, BOE, in 2022, provided "angel kits for itinerant medical services" for 200 grass-roots doctors from 15 township healthcenters, one community health service center, 10 neighborhood committee health stations, and 174 administrative village health stationsin Taihu County. The provision of hardware and equipment for routine itinerant medical services, especially for older people andinfants in rural areas, improved the basic medical capacity of rural doctors. Hefei BOE Hospital donated RMB1 million to Anhui RedCross Foundation to help patients in need of kidney dialysis, or with cataract or heart diseases (congenital heart diseases and valvularheart diseases); Chengdu BOE Hospital visited the 3,500-meter-high plateau areas of Dege County in Garze Tibetan AutonomousPrefecture twice to provide medical services for Tibetan compatriots, including free cataract surgeries for 23 Tibetans and free surgeriesfor three patients with a cleft lip or palate after the screening of infants and children with a cleft lip or palate; moreover, Chengdu BOEHospital visited Liangshan Yi Autonomous Prefecture twice to carry out congenital heart disease screening, and completed more than30 congenital heart disease surgeries; additionally, other hospitals also carried out plenty of health-related public welfare events, suchas free diagnosis and knowledge publicity.
3. Consumption support
Through "purchases as assistance", BOE gave play to the centralized procurement platform of BOE's business company on the basisof farmer-benefiting policies. By establishing a long-term assistance mechanism with the assistance target via the business mode of"purchases as assistance", the BOE Chengqi Pasture and Source Area was developed. High quality agricultural and sideline productswith the feature of "multitudinous, small-sized and dispersed" from poor populations were integrated, as 411 kinds of green, organicand healthy food ingredients were procured in a centralized manner, including Yandaoxiang series (red beans, mung beans, barley,black rice, etc.) Shennongjia wild flower honey, and Maolanshanyu mulberry fungus. The mechanism not only promoted the localdevelopment of agricultural products, but also guaranteed the food safety of BOE's employees. Additionally, more than RMB10 millionof consumption support in 2022 facilitated the economic growth of the assistance target. Moreover, various digital means for "digitalsupport for agriculture", such as e-commerce live streaming for agricultural assistance, were adopted to expand the sales channels ofthe supported products, seek more market opportunities for them, and promote the standardization, branding and commercialization ofthe production of agricultural products. Furthermore, support groups were organized and their functions and responsibilities were fullyexerted to continuously expand the resource pool of supported agricultural products. With these efforts, BOE strove to expand andcreate an inventory of full-range and characteristic agricultural products with core competitiveness, so as to accumulate practicalexperience for long-term, reproducible and characteristic rural revitalization.
BOE Technology Group Co., Ltd. Annual Report 2022
Part VI Significant EventsI Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and other Entities Fulfilledin the Reporting Period or Ongoing at the Period-end
? Applicable □ Not applicable
| Commitment | Promisor | Type of commitment | Details of commitment | Date of commitment making | Term of commitment | Fulfillment |
| Commitments made in share reform | - | - | - | - | - | |
| Commitments made in acquisition documents or shareholding alteration documents | - | - | - | - | - | |
| Commitments made in time of asset restructuring | - | - | - | - | - | |
| Commitments made in time of IPO or refinancing | - | - | - | - | - | |
| Equity incentive commitments | - | - | - | - | - | |
| Other commitments made to minority interests | The Chairman of the Board: Mr. Chen Yanshun Vice Chairman of the Board: Mr. Liu Xiaodong Director: Ms. Sun Yun and Mr. Gao Wenbao Supervisor: Mr. Xu Yangping, Mr. Yan Jun and Mr. Teng Jiao Senior Management: Ms. Feng Liqiong and Mr. Liu Hongfeng Former Supervisor: Mr. He Daopin Former Senior | Other commitments | In accordance with the Announcement on the Commitments of not Reducing the Shareholding by Some Directors, Supervisors and Senior Management (No.: 2020-001) disclosed by the Company on 22 February 2020, some of the Company’s directors, supervisors and senior managers, based on their confidence in the Company’s future development and their recognition of the corporate value, promise not to reduce or transfer any shares held in BOE (A shares), not to entrust others to manage specific shares, not to authorize others to execute their voting right by means of any agreement, trust or other arrangements and not to require the Company to repurchase any specific shares during the terms of office and within 6 months after their tenures expire so as to promote the Company’s continuous, stable and healthy development and maintain the rights and interests of the Company and all shareholders. For any newly-added shares derived from the assignment of rights and interests including the share donation and the reserved funds converted into share capital during the period (corresponding to the specific | 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). | Fulfilled for former supervisor Mr. He Daopin, former senior management Mr. Yao Xiangjun, Mr. Zhang Zhaohong and Mr. Zhong Huifeng; ongoing for other directors, |
BOE Technology Group Co., Ltd. Annual Report 2022
| Management: Mr. Yao Xiangjun, Mr. Zhang Zhaohong, Mr. Zhong Huifeng, Mr. Xie Zhongdong and Mr. Miao Chuanbin | shares), they shall still keep their promises till the commitment period expires. | supervisors and senior management | ||||
| Other commitments | - | - | - | - | - | |
| Executed on time or not | Yes | |||||
| Specific reasons for failing to fulfill commitments on time and plans for next step (if any) | N/A | |||||
BOE Technology Group Co., Ltd. Annual Report 2022
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still withinthe forecast period, explain why the forecast has been reached for the Reporting Period.
□Applicable ? Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its RelatedParties for Non-Operating Purposes
□ Applicable ? Not applicable
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□ Applicable ? Not applicable
No such cases in the Reporting Period.IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion” onthe Financial Statements
□ Applicable ? Not applicable
V Explanations Given by the Board of Directors, the Supervisory Board and the IndependentDirectors (if any) Regarding the Independent Auditor's “Modified Opinion” on the FinancialStatements of the Reporting Period
□ Applicable ? Not applicable
VI YoY Changes to Accounting Policies, Estimates or Correction of Material Accounting Errors? Applicable □ Not applicableThe Group, in 2022, implemented the Accounting Standards for Business Enterprises and relevant provisions and guidelinespromulgated by the Ministry of Finance in recent years, which mainly includes:
- The provision in the Interpretation No. 15 of Accounting Standards for Business Enterprises (C.K. [2021] No. 35) ("InterpretationNo. 15") of "accounting treatment of external sales of products or by-product produced by the enterprise before the fixed assets reachthe intended usable state or during the research and development process";- The provision in Interpretation No. 15 of "judgment on loss-making contracts"; and- Notice on Matters Related to the Application of the Regulations on the Provisions on Accounting Treatment of Rent ConcessionsAssociated with the COVID-19 Pandemic (C.K. [2022] No.13).- The provision in the Interpretation No. 16 of Accounting Standards for Business Enterprises (C.K. [2022] No. 31) ("InterpretationNo. 16") of "accounting treatment of the income tax effect of financial instrument related dividend whose issuer is classified asequity instrument"; and- The provision in Interpretation No. 16 of "accounting treatment of share-based payment in cash settlement modified into share-based payment in equity settlement by the enterprise"The above changes in accounting policies will not exert a significant impact on the Company's financial condition, operating resultand cash flow.
BOE Technology Group Co., Ltd. Annual Report 2022
VII YoY Changes to the Scope of the Consolidated Financial Statements? Applicable □ Not applicable3 subsidiaries were established in the current period, and they are BOE Environmental and Energy Technology Co., Ltd. with 100%shareholding, Chengdu BOE Display Technology Co., Ltd. with 52.63% shareholding and Beijing BOE Chuangyuan Technology Co.,Ltd. with 79.31% shareholding.2 subsidiaries were disposed in the current period.BOE Smart Retail (Hong Kong) Co., Ltd.a subsidiary of the Group, sold its sharesof SES Imagotag SA Co.Ltd.. After the sale was completed,the Group has lost control of SES Imagotag SA Co.Ltd.. The shareholdingratio decreased to 32.56%.During the year, SES Imagotag SA Co.Ltd. made contributions to BOE Art Cloud Technology Co.,Ltd.,which is an associate of the Group with its 51% equity interest in BOE Digital Technology Co., Ltd..After the completion of equitydelivery，the Group has lost control of BOE Digital Technology Co., Ltd.. The shareholding ratio decreased to 15%.
VIII Engagement and Disengagement of Independent Auditor
Current independent auditor
| Name of the domestic independent auditor | KPMG Huazhen (LLP) |
| The Company’s payment to the domestic independent auditor (RMB’0,000) | 1,220 |
| How many consecutive years the domestic independent auditor has provided audit service for the Company | 18 |
| Names of the certified public accountants from the domestic independent auditor writing signatures on the auditor’s report | Su Xing, Chai Jing |
| How many consecutive years the certified public accountants from the domestic independent auditor have provided audit service for the Company | 1 year for Su Xing, 3 years for Chai Jing |
| Name of the foreign independent auditor (if any) | N/A |
| The Company’s payment to the foreign independent auditor (RMB’0,000) (if any) | 0 |
| How many consecutive years the foreign independent auditor has provided audit service for the Company (if any) | N/A |
| Names of the certified public accountants from the foreign independent auditor writing signatures on the auditor’s report (if any) | N/A |
| How many consecutive years the certified public accountants from the foreign independent auditor have provided audit service for the Company (if any) | N/A |
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
□Yes ? No
Independent auditor, financial advisor or sponsor engaged for internal control audit? Applicable □ Not applicableDuring the year, the Company engaged KPMG Huazhen (LLP) as the Company's internal control audit accounting firm, and theCompany paid KPMG Huazhen (LLP) total compensation of RMB12.2 million for the 2022 annual audit and internal control audit.IX Possibility of Delisting after Disclosure of this Report
□ Applicable ? Not applicable
X Insolvency and Reorganization
□ Applicable ? Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2022
XI Major Legal Matters? Applicable □ Not applicable
| General information | Involved amount (RMB’0,000) | Provision | Progress | Decisions and effects | Execution of decisions | Disclosure date | Index to disclosed information |
| Litigations for 2022 (including carryforwards in previous years ) | 25,476.46 | No | N/A | N/A | N/A | - | N/A |
XII Punishments and Rectifications
□ Applicable ? Not applicable
No such cases in the Reporting Period.XIII Credit Quality of the Company as well as Its Controlling Shareholder and ActualController
□ Applicable ? Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□ Applicable ? Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with any
BOE Technology Group Co., Ltd. Annual Report 2022
related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable ? Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in any otherfinance business with any related parties.
7. Other Major Related-Party Transactions
? Applicable □ Not applicableNoneIndex to the public announcements about the said related-party transactions disclosed
| Title of public announcement | Disclosure date | Disclosure website |
| Announcement on Capital Increase to Tianjin Xianzhi Chain Investment Center (Limited Partnership) and the Related-party Transaction | 15 March 2022 | www.cninfo.com.cn |
| Announcement on Estimated Continuing Related-party Transactions for 2022 | 31 March 2022 | www.cninfo.com.cn |
| Announcement on the Receipt of Equity Interests in Hefei BOE Display Technology Co., Ltd. and the Related-party Transaction | 20 July 2022 | www.cninfo.com.cn |
| Announcement on Capital Increase to BEHC Industrial Investment Co., Ltd. and the Related-party Transaction | 17 November 2022 | www.cninfo.com.cn |
| Announcement on the Receipt of Equity Interests in Hefei BOE Display Technology Co., Ltd. and the Related-party Transaction | 30 December 2022 | www.cninfo.com.cn |
XV Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable ? Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2022
2. Major Guarantees
? Applicable □ Not applicable
Unit: RMB'0,000
| Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries) | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| N/A | ||||||||||
| Guarantees provided by the Company as the parent for its subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Ordos YuanSheng Optoelectronics Co., Ltd. | 30 November 2016 | 550,987 | 15 March 2017 | 118,637 | Joint-liability | N/A | N/A | 2017-3-17 to 2027-3-17 | Not | Not |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 24 April 2017 | 2,275,979 | 30 August 2017 | 1,623,979 | Joint-liability | N/A | N/A | 2017-9-6 to 2029-9-6 | Not | Not |
| Hefei BOE Display Technology Co., Ltd. | 30 November 2016 | 1,694,774 | 30 August 2017 | 744,941 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2017-9-7 to 2027-9-7 | Not | Not |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 9 December 2015 | 1,347,157 | 8 November 2016 | 234,099 | Joint-liability | N/A | N/A | 2016-12-19 to 2026-7-4 | Not | Not |
| Mianyang BOE Optoelectronics Co., Ltd. | 18 May 2018 | 2,111,549 | 18 September 2018 | 1,841,790 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2018-9-26 to 2031-9-26 | Not | Not |
| Chongqing BOE Display | 27 April 2020 | 2,050,189 | 29 December 2020 | 1,245,675 | Joint-liability | N/A | The secured party provides | 2020-12-31 to 2033-12-31 | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2022
| Technology Co., Ltd. | a counter guarantee for the guarantor | |||||||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 25 March 2019 | 2,027,279 | 16 August 2019 | 1,523,558 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2019-8-23 to 2032-8-23 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 180,000 | 12 May 2021 | 90,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-5-12 to 2026-5-31 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 120,000 | 12 May 2021 | 120,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-5-12 to 2026-6-6 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 109,308 | 29 July 2021 | 27,346 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-7-29 to 2025-6-17 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 19,098 | 13 August 2021 | 6,250 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-8-13 to 2025-4-28 | Not | Not |
| Nanjing BOE Display Technology Co., Ltd. | 23 September 2020 | 10,500 | 27 December 2021 | 4,500 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-12-27 to 2026-8-24 | Not | Not |
| Chengdu BOE Hospital Co., Ltd. | 27 April 2020 | 240,000 | 15 June 2020 | 140,309 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2020-6-15 to 2042-6-30 | Not | Not |
| Total approved line for such | 0 | Total actual amount of such | -913,426 | |||||||
BOE Technology Group Co., Ltd. Annual Report 2022
| guarantees in the Reporting Period (B1) | guarantees in the Reporting Period (B2) | |||||||||
| Total approved line for such guarantees at the end of the Reporting Period (B3) | 12,736,819 | Total actual balance of such guarantees at the end of the Reporting Period (B4) | 7,721,084 | |||||||
| Guarantees provided between subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Yaoguang New Energy (Shouguang) Co., Ltd. | N/A | 3,600 | 30 September 2020 | 3,443 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Suzhou Industrial Park Taijing Photovoltaic Co., Ltd. | N/A | 2,800 | 30 September 2020 | 2,678 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qingmei Solar Energy Technology (Lishui) Co., Ltd. | N/A | 3,300 | 30 September 2020 | 2,806 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qinghong Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 1,700 | 30 September 2020 | 1,446 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qinghui Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 1,100 | 30 September 2020 | 935 | Joint-liability | N/A | N/A | 2020-9-30 to 2034-9-30 | Not | Not |
| Qinghao Solar Energy Technology (Jinhua) Co., Ltd. | N/A | 890 | 18 December 2017 | 570 | Joint-liability, pledge | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Xiangqing Solar Energy Technology (Dongyang) Co., Ltd | N/A | 3,476 | 18 December 2017 | 1,888 | Joint-liability, pledge | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Qingyue Solar Energy Technology (Wuyi) Co., Ltd | N/A | 960 | 18 December 2017 | 522 | Joint-liability, pledge | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Qingyou Solar | N/A | 2,210 | 18 December 2017 | 1,430 | Joint-liability, | Equity | N/A | 2017-12-18 to 2032- | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2022
| Energy Technology (Longyou) Co., Ltd | pledge | interests | 12-18 | |||||||
| Qingfan Solar Energy Technology (Quzhou) Co., Ltd | N/A | 1,855 | 18 December 2017 | 1,008 | Joint-liability, pledge | Equity interests | N/A | 2017-12-18 to 2032-12-18 | Not | Not |
| Taihang Electric Power Technology (Ningbo) Co., Ltd | N/A | 300 | 3 December 2020 | 261 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Guoji Energy (Ningbo) Co., Ltd. | N/A | 1,800 | 3 December 2020 | 1,567 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Hongyang Solar Energy Power Generation (Anji) Co., Ltd. | N/A | 2,500 | 3 December 2020 | 2,176 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Ke’en Solar Energy Power Generation (Pingyang) Co., Ltd. | N/A | 1,600 | 3 December 2020 | 1,393 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Dongze Photovoltaic Power Generation (Wenzhou) Co., Ltd. | N/A | 1,400 | 3 December 2020 | 1,219 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Aifeisheng Investment and Management (Wenzhou) Co, Ltd. | N/A | 700 | 3 December 2020 | 609 | Joint-liability | N/A | N/A | 2020-12-3 to 2034-12-3 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 12,800 | 23 October 2017 | 12,430 | Pledge | Charging right | N/A | 2017-10-24 to 2032-10-23 | Not | Not |
| Beijing BOE Energy Technology Co., Ltd. | N/A | 20,560 | 15 August 2018 | 14,240 | Pledge | Charging right | N/A | 2018-9-26 to 2032-12-21 | Not | Not |
| Beijing BOE Energy Technology Co., | N/A | 25,418 | 28 November 2017 | 21,418 | Pledge | Charging right | N/A | 2017-12-1 to 2032-12-1 | Not | Not |
BOE Technology Group Co., Ltd. Annual Report 2022
| Ltd. | ||||||||||
| Hefei BOE Hospital Co., Ltd. | 27 April 2018 | 130,000 | 27 April 2018 | 124,500 | Joint-liability | N/A | N/A | 2018-4-27 to 2036-4-27 | Not | Not |
| Beijing BOE Life Technology Co., Ltd. | N/A | 60,000 | 29 December 2021 | 20,000 | Joint-liability | N/A | The secured party provides a counter guarantee for the guarantor | 2021-12-29 to 2039-12-28 | Not | Not |
| Total approved line for such guarantees in the Reporting Period (C1) | 208,938 | Total actual amount of such guarantees in the Reporting Period (C2) | -67,635 | |||||||
| Total approved line for such guarantees at the end of the Reporting Period (C3) | 487,907 | Total actual balance of such guarantees at the end of the Reporting Period (C4) | 216,540 | |||||||
| Total guarantee amount (total of the three kinds of guarantees above) | ||||||||||
| Total guarantee line approved in the Reporting Period (A1+B1+C1) | 208,938 | Total actual guarantee amount in the Reporting Period (A2+B2+C2) | -981,061 | |||||||
| Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 13,224,726 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 7,937,624 | |||||||
| Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets | 58.33% | |||||||||
| 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) | 124,500 | |||||||||
| Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) | 1,133,153 | |||||||||
| Total of the three amounts above (D+E+F) | 1,257,653 | |||||||||
| 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 | |||||||||
Note: 1. The Proposal on Provision of Guarantee by A Subsidiary of Beijing BOE Energy Technology Co., Ltd. for the 200,000 kW Photovoltaic Project of Sonid Right Banner was approved byvoting at the 2021 Annual General Meeting of BOE Technology Group Co., Ltd. on 28 April 2022, but the guarantee is no longer implemented due to the change of business;
BOE Technology Group Co., Ltd. Annual Report 2022
2. The Proposal on Provision of Guarantee for BOE Vision Electronic Technology Co., Ltd. was approved by voting at the 2021 Annual General Meeting of BOE Technology Group Co., Ltd. on28 April 2022 and the guarantee liabilities regarding the item have not occurred by 31 December 2022.Compound guaranteesNone
BOE Technology Group Co., Ltd. Annual Report 2022
3. Cash Entrusted for Wealth Management
(1) Cash Entrusted for Wealth Management
? Applicable □ Not applicableOverviews of cash entrusted for wealth management during the Reporting Period
Unit: RMB'0,000
| Specific type | Capital resources | Amount incurred | Undue balance | Unrecovered overdue amount | Unrecovered overdue amount with provision for impairment |
| Bank structured deposit | Self-owned funds | 1,695,600 | 1,689,920 | 0 | 0 |
| Total | 1,695,600 | 1,689,920 | 0 | 0 | |
Particulars of entrusted cash management with single significant amount or low security and bad liquidity
□ Applicable ? Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for entrustedasset management
□ Applicable ? Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVI Other Significant Events
? Applicable □ Not applicable
1. On 18 October 2019, the Company disclosed the Announcement on the Company’s Application for CSRC’s Approval for its PublicIssue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801 Approval fromCSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominal value no more thanRMB30 billion to qualified investors.
| Bond name | Abbr. | Bond code | Date of issue | Maturity |
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) | 19BOEY1 | 112741 | 28 October 2019 | 29 October 2022 |
| 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 |
| 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 |
| 2020 Public Offering of Renewable Corporate Bonds of | 20BOEY3 | 149108 | 24 April 2020 | 27 April 2023 |
BOE Technology Group Co., Ltd. Annual Report 2022
| BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | ||||
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | 22BOEY1 | 149861 | 24 March 2022 | 25 March 2025 |
The Company disclosed 2022 "20BOEY1" Interest Payment Announcement (Announcement No. 2022-006) on 24 February 2022. Theinterest payment plan was RMB36.40 (including tax) every ten bonds. The Company disclosed 2022 "20BOEY2" Interest PaymentAnnouncement (Announcement No. 2022-013) on 17 March 2022. The interest payment plan was RMB35.40 (including tax) per tenbonds. The Company disclosed 2022 "20BOEY3" Interest Payment Announcement (Announcement No. 2022-037) on 23 April 2022.The interest payment plan was RMB35.00 (including tax) per ten bonds. On 9 September 2022, the Company disclosed theAnnouncement on Not Exercising the Issuer’s Renewal Option for the 2019 Public Offering of Renewable Corporate Bonds of BOE(for Qualified Investors) (Phase I) (Announcement No. 2022-067). 19BOEY1 will reach its maturity of three years on 28 October 2022.As per the relevant Prospectus and Listing Announcement, the Company has decided not to exercise the issuer’s renewal option on19BOEY1 and will fully redeem the said bonds instead. On 27 October 2022, the Company disclosed the Announcement on theRedemption of Corporate Bonds “19BOEY1” with Interest & the Delisting of the Bonds (Announcement No. 2022-073). The Companywill repay on 31 October 2022 the principals of the said bonds, together with the interest from 29 October 2021 to 28 October 2022,and delist the bonds. The Company disclosed the Announcement on Not Exercising the Issuer’s Renewal Option for the 2020 PublicOffering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds)(Announcement No. 2023-001) on 7 January 2023, and the third anniversary of 20BOEY1 falls on 27 February 2023. According to therelevant provisions of the Prospectus and the Listing Declaration, the Company decides not to exercise the renewal option of bondissuer. That is, the current bonds are to be fully redeemed. The Company disclosed the Announcement on Not Exercising the Issuer’sRenewal Option for the 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemicprevention and control bonds) (Announcement No. 2023-002) on 31 January 2023, and the third anniversary of 20BOEY2 falls on 18March 2023. According to the relevant provisions of the Prospectus and the Listing Declaration, the Company decides not to exercisethe renewal option of bond issuer. That is, the current bonds are to be fully redeemed. As the Company disclosed the Announcementon the Redemption of the Principal and Interest of the "20BOEY1" Corporate Bonds and the De-listing of the Bonds (AnnouncementNo. 2023-005) on 24 February 2023, it will pay the interest of the bonds generated between 28 February 2022 and 27 February 2023,as well as the principal of the bonds, on 28 February 2023, and de-list the bonds. The Company disclosed the Announcement on NotExercising the Issuer’s Renewal Option for the 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors)(Phase III) (epidemic prevention and control bonds) (Announcement No. 2023-008) on 15 March 2023, and the third anniversary of20BOEY3 falls on 27 April 2023. According to the relevant provisions of the Prospectus and the Listing Declaration, the Companydecides not to exercise the renewal option of bond issuer. That is, the current bonds are to be fully redeemed. As the Company disclosedthe Announcement on the Redemption of the Principal and Interest of the "20BOEY2" Corporate Bonds and the De-listing of the Bonds(Announcement No. 2023-009) on 16 March 2023, it will pay the interest of the bonds generated between 19 March 2022 and 18 March2023, as well as the principal of the bonds, on 20 March 2023, and de-list the bonds. The Company disclosed 2023 "22BOEY1" InterestPayment Announcement (Announcement No. 2023-010) on 23 March 2023. The interest payment plan was RMB35.00 (including tax)every ten bonds.
2. On 16 January 2021, the Company disclosed the Announcement on the Resolution of the 21st Meeting of the 9th Board of Directors(Announcement No. 2021-001) and the Plan for Non-Public Offering of A-Shares in 2021, and other related announcements, in whichthe Company intends to make a non-public offering of A-shares to no more than 35 specific investors including Jing Guorui Fund. Thenet fund raised was expected to be no more than RMB20 billion. On 19 August 2021, the Company disclosed the Report on the Non-public Offering of A-shares by BOE Technology Group Co., Ltd. & the Announcement on the Listing of these Shares (announcementNo. 2021-058), along with other relevant announcements. 3,650,377,019 new shares were issued in the non-public offering, whichwere listed on the Shenzhen Stock Exchange on 20 August 2021. On 18 February 2022, the Company disclosed the SuggestiveAnnouncement on Relieving Restricted Non-publicly Offered A Shares in 2021 (Announcement No.: 2022-005). On 21 February 2022,
BOE Technology Group Co., Ltd. Annual Report 2022
2,932,244,165 restricted shares of non-publicly offered A shares in 2021 were relieved and could be traded in the market. The numberof the relieved restricted shares accounted for 8.5058% of non-restricted shares of the Company, and 7.6270% of the total share capitalof the Company. The Company disclosed the Suggestive Announcement on Relieving Restricted Non-publicly Offered A Shares in2021 (Announcement No.: 2023-004) on 17 February 2023. A total of 718,132,854 restricted shares of the Company's non-publiclyoffered A shares in 2021 were relieved on 20 February 2023 and could be traded on the market thereafter. The number of the relievedrestricted shares accounted for 1.9324% of the Company's non-restricted shares, and 1.8801% of the Company's total share capital.
3. Following the approval of the Proposal on the Repurchase of Some Public Shares at the 31st Meeting of the 9th Board of Directors,the Company disclosed the Announcement No. 2021-067 on the Repurchase of Some Public Shares on 31 August 2021. The Companycarried out the first repurchase on 2 September 2021 and disclosed the Announcement No. 2021-077 on the First Repurchase of SomePublic Shares on 3 September 2021. On 2 March 2022, the Company disclosed the Announcement on the Completed Implementationof Share Repurchase Programme and Repurchase Implementation Results (Announcement No.: 2022-007). As at 28 February 2022,the Company has implemented the repurchase of the Company's shares by means of centralized bidding through a special securitiesaccount for the repurchase, and the cumulative number of A Shares repurchased was 499,999,919, accounting for approximately 1.3330%of the Company's A Shares and 1.3005% of the Company's total share capital, with the highest transaction price of RMB5.96 per shareand the lowest transaction price of RMB4.68 per share. The total amount paid was RMB2,620,105,418.52 (including other fixedexpenses such as commissions). The above repurchase of the Company was in line with the requirements of relevant laws andregulations, as well as the established repurchase programme of the Company. The total fund of this share repurchase didn't exceed theamount proposed to be used in the repurchase programme, and the number of shares repurchased has reached the cap of shares underthe repurchase programme. So far, this share repurchase has been implemented and completed as planned.
4. Following the approval of the Proposal on the Repurchase of Domestically Listed Foreign Shares (B-shares) at the 39th Meeting ofthe 9th Board of Directors and the 2021 Annual General Meeting, the Company disclosed the Announcement No. 2022-030 on thePlan for the Repurchase of Domestically Listed Foreign Shares (B-shares) on 31 March 2022 and the Report on the Repurchase ofDomestically Listed Foreign Shares (B-shares) (Announcement No. 2022-046) on 10 May 2022. The Company carried out the firstrepurchase on 27 June 2022 and disclosed the Announcement No. 2022-050 on the First Repurchase of Domestically Listed ForeignShares (B-shares) on 28 June 2022. On 6 September 2022, the Company disclosed the Announcement No. 2022-065 on the Completionof the Implementation of the Share Repurchase Plan & the Repurchase Results. As of 2 September 2022, all the repurchased shareshad been settled, with the total amount used reaching the upper limit of the repurchase amount. The Company has implemented therepurchase of the Company's shares by means of centralized bidding through a special securities account for the repurchase, and thecumulative number of B-shares repurchased was 243,229,361, accounting for approximately 25.9829% of the Company's B-shares and
0.6327% of the Company's total share capital, with the highest transaction price of HKD4.32 per share and the lowest transaction priceof HKD3.65 per share. The total amount paid was HKD999,999,946.81 (inclusive of transaction costs). The above repurchase of theCompany was in line with the requirements of relevant laws and regulations, as well as the established repurchase programme of theCompany. On 22 September 2022, the Company disclosed the Announcement on the Completion of the Retirement of RepurchasedShares & Share Changes (Announcement No. 2022-071). The aforesaid 243,229,361 repurchased shares have been retired on 20September 2022 with the Shenzhen branch of China Securities Depository and Clearing Co., Ltd., with the retired number of shares,date of completion and term of retirement all in compliance with the applicable laws and regulations.
5. On 29 April 2022, the Company disclosed the Announcement on the Resolutions of the 2021 Annual General Meeting(Announcement No. 2022-041), the Announcement on the Resolutions of the First Meeting of the 10th Board of Directors(Announcement No. 2022-043), and the Announcement on the Resolutions of the First Meeting of the 10th Supervisory Committee(Announcement No. 2022-044). Re-election proposals were approved at these meetings. As such, the re-election has been completed.For further information, see the relevant announcements.
6. On 24 May 2022, the Company disclosed the Announcement on the Distribution of the 2021 Final Dividend (Announcement No.2022-048). As the 2021 Final Dividend Plan had been approved at the 2021 Annual General Meeting on 28 April 2022, the Companydistributed a 2021 final dividend of RMB2.10 per 10 shares (dividend to B-shareholders paid in HKD according to the central parity
BOE Technology Group Co., Ltd. Annual Report 2022
rate of RMB and HKD declared by the People’s Bank of China on the first working day immediately after the date of the relevantgeneral meeting resolution), with no bonus issue from either profit or capital reserves.
| Overview of significant event | Disclosure date | Disclosure website |
| Announcement on Capital Increase to Tianjin Xianzhi Chain Investment Center (Limited Partnership) and the Related-party Transaction | 15 March 2022 | www.cninfo.com.cn |
| Announcement on the Receipt of Equity Interests in Hefei BOE Display Technology Co., Ltd. and the Related-party Transaction | 20 July 2022 | www.cninfo.com.cn |
| Announcement on Investment in the Project of BOE 6th Generation of New Semiconductor Display Device Production Line | 31 October 2022 | www.cninfo.com.cn |
Announcement on Subscription in A-Shares Issued by HC Semitek Corporationto Specific Objects
| Announcement on Subscription in A-Shares Issued by HC Semitek Corporation to Specific Objects | 7 November 2022 | www.cninfo.com.cn |
| Announcement on Capital Increase to BEHC Industrial Investment Co., Ltd. and the Related-party Transaction | 17 November 2022 | www.cninfo.com.cn |
| Announcement on Selling Some Stocks of Subsidiaries | 30 November 2022 | www.cninfo.com.cn |
| Announcement on the Receipt of Equity Interests in Hefei BOE Display Technology Co., Ltd. and the Related-party Transaction | 30 December 2022 | www.cninfo.com.cn |
XVII Significant Events of Subsidiaries
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
Part VII 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 | 3,972,199,930 | 10.33% | 0 | 0 | 0 | -2,939,069,640 | -2,939,069,640 | 1,033,130,290 | 2.70% |
| 1. Shares held by the state | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. Shares held by state-owned corporations | 1,472,764,818 | 3.83% | 0 | 0 | 0 | -754,631,964 | -754,631,964 | 718,132,854 | 1.88% |
| 3. Shares held by other domestic investors | 1,898,530,477 | 4.94% | 0 | 0 | 0 | -1,609,392,541 | -1,609,392,541 | 289,137,936 | 0.76% |
| Among which: Shares held by domestic corporations | 1,603,357,266 | 4.17% | 0 | 0 | 0 | -1,603,357,266 | -1,603,357,266 | 0 | 0.00% |
| Shares held by domestic individuals | 295,173,211 | 0.77% | 0 | 0 | 0 | -6,035,275 | -6,035,275 | 289,137,936 | 0.76% |
| 4. Shares held by foreign investors | 600,904,635 | 1.56% | 0 | 0 | 0 | -575,045,135 | -575,045,135 | 25,859,500 | 0.07% |
| Among which: Shares held by foreign corporations | 574,254,935 | 1.49% | 0 | 0 | 0 | -574,254,935 | -574,254,935 | 0 | 0.00% |
| Shares held by foreign individuals | 26,649,700 | 0.07% | 0 | 0 | 0 | -790,200 | -790,200 | 25,859,500 | 0.07% |
| II. Non-restricted shares | 34,473,546,552 | 89.67% | 0 | 0 | 0 | 2,689,686,579 | 2,689,686,579 | 37,163,233,131 | 97.30% |
| 1. RMB ordinary shares | 33,537,433,064 | 87.23% | 0 | 0 | 0 | 2,932,915,940 | 2,932,915,940 | 36,470,349,004 | 95.48% |
| 2. Domestically listed foreign shares | 936,113,488 | 2.43% | 0 | 0 | 0 | -243,229,361 | -243,229,361 | 692,884,127 | 1.81% |
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 38,445,746,482 | 100.00% | 0 | 0 | 0 | -249,383,061 | -249,383,061 | 38,196,363,421 | 100.00% |
Reasons for share changes:
? Applicable □ Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
A total of 2,932,244,165 restricted shares of the Company's non-publicly issued RMB ordinary shares in 2021 were relieved on 21 February 2022.During the Reporting Period, the Company repurchased and cancelled 6,153,700 restricted shares that had been authorized to 17 incentive recipients but were still locked, resulting in a decreaseof 6,153,700 restricted shares of the Company's equity incentive.During the Reporting Period, the Company completed the election procedure, the shares held by resigned directors, supervisors and senior management personnel were relieved, and the sharesheld by newly appointed directors, supervisors and senior management personnel become the management lock-up shares. In total, the Company's management lock-up shares decreased by671,775.During the Reporting Period, the Company completed the share buyback schedule, as a total of 243,229,361 B shares were bought back by the Company and were cancelled on 20 September2022.During the Reporting Period, the total number of shares decreased by 249,383,061. Specifically, restricted shares decreased by 2,939,069,640, and non-restricted shares increased by 2,689,686,579.Approval of share changes:
□ Applicable ? Not applicable
Transfer of share ownership:
□ Applicable ? Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary shareholders and other financial indicators of the prior year and theprior accounting period, respectively:
? Applicable □ Not applicable
| Item | January-December 2022 |
| Basic earnings per share (RMB/share) | 0.19 |
| Diluted earnings per share (RMB/share) | -- |
| Item | 31 December 2022 |
| Equity per share attributable to the Company’s ordinary shareholders | 3.42 |
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 | Restricted shares relieved of the period | Restricted shares amount at the period-end | Restricted reasons | Restricted shares relieved date |
BOE Technology Group Co., Ltd. Annual Report 2022
| period | ||||||
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | 718,132,854 | 0 | 0 | 718,132,854 | Private placement | 21 February 2023 |
| Fuqing Huirong Venture Capital Co., Ltd. | 538,599,640 | 0 | 538,599,640 | 0 | - | 21 February 2022 |
| MORGAN STANLEY & CO.INTERNATIONAL PLC. | 271,095,152 | 0 | 271,095,152 | 0 | - | 21 February 2022 |
| Caitong Fund - PSBC - Caitong Fund - No. 1 Asset Management Plan of Bohai Life in Yuquan | 179,533,214 | 0 | 179,533,214 | 0 | - | 21 February 2022 |
| Yiwu Harmonious Jinhong Equity Investment Partnership (L.P.) | 179,533,213 | 0 | 179,533,213 | 0 | - | 21 February 2022 |
| Shandong Haixiang Equity Investment Fund Management Co., Ltd. | 147,163,387 | 0 | 147,163,387 | 0 | - | 21 February 2022 |
| Hongta Securities Co., Ltd. | 143,626,570 | 0 | 143,626,570 | 0 | - | 21 February 2022 |
| JPMORGAN CHASE BANK,NATIONAL ASSOCIATION | 116,696,588 | 0 | 116,696,588 | 0 | - | 21 February 2022 |
| Shanghai Gao Yi Asset Management Partnership (L.P.) - Gao Yi Xiaofeng No. 2 Zhixin Fund | 107,719,928 | 0 | 107,719,928 | 0 | - | 21 February 2022 |
| Haitong Securities Co., Ltd. | 99,030,520 | 0 | 99,030,520 | 0 | - | 21 February 2022 |
| Other non-public offering restricted shareholders | 1,149,245,953 | 0 | 1,149,245,953 | 0 | - | 21 February 2022 |
| Locked shares of executives | 3,038,411 | 434,625 | 1,106,400 | 2,366,636 | Locked shares of executives | - |
| Restricted shares for equity incentive | 318,784,500 | 0 | 6,153,700 | 312,630,800 | Restricted shares for equity incentive | - |
| Total | 3,972,199,930 | 434,625 | 2,939,504,265 | 1,033,130,290 | -- | -- |
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 | ||||||||
| N/A | ||||||||
BOE Technology Group Co., Ltd. Annual Report 2022
| Convertible corporate bonds, convertible corporate bonds separately traded and corporate bonds | ||||||||
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | 25 March 2022 | 3.50% | 2,000,000,000 | 7 April 2022 | 2,000,000,000 | 25 March 2025 | See the Announcement on the Listing on the Shenzhen Stock Exchange of the 2022 Public Offering of Renewable Corporate Bonds of BOE (for Professional Investors) (Digital Economy) (Phase I) disclosed on http://www.cninfo.com.cn/ | 7 April 2022 |
| Other derivative securities | ||||||||
| N/A | ||||||||
Notes: None
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures? Applicable □ Not applicableDuring the Reporting Period, the Company repurchased and cancelled 243,229,361 B-Shares, resulting in a decrease of 243,229,361 shares of the Company's shares.During the Reporting Period, the Company repurchased and cancelled 6,153,700 restricted shares, resulting in a decrease of 6,153,700 shares of the Company's shares.
3. Existing Staff-Held Shares
□Applicable ? Not applicable
III Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
Unit: share
| Number of ordinary shareholders at the period-end | 1,545,309 (including 1,512,990 A-shareholders and 32,319 B-shareholders) | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 1,408,195（including 1,375,930 A-shareholders and 32,265 B-shareholders） |
BOE Technology Group Co., Ltd. Annual Report 2022
| 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, marked or frozen | |
| Status | Shares | |||||||
| Beijing State-owned Capital Operation and Management Company Limited | State-owned legal person | 10.64% | 4,063,333,333 | - | 0 | 4,063,333,333 | N/A | 0 |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 3.80% | 1,450,193,281 | 81,195,445 | 0 | 1,450,193,281 | N/A | 0 |
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.15% | 822,092,180 | - | 0 | 822,092,180 | N/A | 0 |
| Beijing Jing Guorui Soe Reform and Development Fund (L.P.) | Other | 1.88% | 718,132,854 | - | 718,132,854 | 0 | N/A | 0 |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 1.74% | 666,195,772 | - | 0 | 666,195,772 | N/A | 0 |
| Fuqing Huirong Venture Capital Co., Ltd. | Domestic non-state-owned legal person | 1.40% | 533,984,340 | -4,615,300 | 0 | 533,984,340 | N/A | 0 |
| Ningxia Risheng High-tech Industry Co., Ltd. | Domestic non-state-owned legal person | 0.92% | 350,925,766 | 241,746,500 | 0 | 350,925,766 | N/A | 0 |
| Sinatay Life Insurance Co., Ltd.-Traditional Product | Other | 0.80% | 305,330,128 | - | 0 | 305,330,128 | N/A | 0 |
| Beijing Yizhuang Investment Holdings Co., Ltd | State-owned legal person | 0.74% | 281,295,832 | 119,705,000 | 0 | 281,295,832 | N/A | 0 |
| Beijing Electronics Holdings Co., Ltd. | State-owned legal person | 0.72% | 273,735,583 | - | 0 | 273,735,583 | N/A | 0 |
| Strategic investors or general corporations becoming top-ten ordinary shareholders due to placing of new shares (if any) | Naught | |||||||
| Related or acting-in-concert parties among the shareholders above | 1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co., Ltd. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder. 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right, agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights as a shareholder. 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 5. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting- | |||||||
BOE Technology Group Co., Ltd. Annual Report 2022
| in-Concert Agreement with Beijing Electronics Holdings Co., Ltd. 6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited. 7. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | |||
| Explain if any of the shareholders above was involved in entrusting/being entrusted with voting rights or waiving voting rights | 1. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right, agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights as a shareholder. 2. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 3. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd. | ||
| Special account for share repurchases (if any) among the top 10 shareholders | At the end of the Reporting Period, among the top ten shareholders of the Company, the special securities account for the repurchase of BOE Technology Group Co., Ltd. held 528,186,052 shares, accounting for 1.38%. According to relevant regulations in the Rule No. 2 for Content and Format of Information Disclosure of the Company Issuing Securities Publicly, if there are repurchase accounts in the top ten shareholders of the Company, it should be specified, but these shareholders should not be included and listed as the top ten shareholders. | ||
| Shareholdings of the top ten unrestricted ordinary shareholders | |||
| Name of shareholder | Number of unrestricted ordinary shares held at the period-end | Shares by type | |
| Type | Shares | ||
| Beijing State-owned Capital Operation and Management Company Limited | 4,063,333,333 | RMB ordinary share | 4,063,333,333 |
| Hong Kong Securities Clearing Company Ltd. | 1,450,193,281 | RMB ordinary share | 1,450,193,281 |
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB ordinary share | 822,092,180 |
| Hefei Jianxiang Investment Co., Ltd. | 666,195,772 | RMB ordinary share | 666,195,772 |
| Fuqing Huirong Venture Capital Co., Ltd. | 533,984,340 | RMB ordinary share | 533,984,340 |
| Ningxia Risheng High-tech Industry Co., Ltd. | 350,925,766 | RMB ordinary share | 350,925,766 |
| Sinatay Life Insurance Co., Ltd.-Traditional Product | 305,330,128 | RMB ordinary share | 305,330,128 |
| Beijing Yizhuang Investment Holdings Co., Ltd | 281,295,832 | RMB ordinary share | 281,295,832 |
| Beijing Electronics Holdings Co., Ltd. | 273,735,583 | RMB ordinary share | 273,735,583 |
| Xu Lili | 241,325,298 | RMB ordinary share | 241,325,298 |
| Related or acting-in-concert parties among top 10 unrestricted ordinary shareholders, as well as between top 10 unrestricted ordinary shareholders and top 10 shareholders | 1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co., Ltd. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder. | ||
BOE Technology Group Co., Ltd. Annual Report 2022
| 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right, agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights as a shareholder. 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 5. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd. 6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited. 7. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | |
| Top 10 ordinary shareholders involved in securities margin trading (if any) (see note 4) | 1. Shareholder Ningxia Risheng High-tech Industry Co., Ltd. held 308,342,066 shares in the Company via its credit securities account, and shareholder Xu Lili held 234,594,498 shares in the Company via her credit securities account. 2. The shares held by Beijing Yizhuang Investment Holdings Co., Ltd. in the Company increased by 119,705,000 shares due to the return of securities under securities refinancing. 3. The shares held by Shareholder Fuqing Huirong Venture Capital Co., Ltd. in the Company decrease by 4,615,300 shares due to securities refinancing. 4. Shareholders Beijing State-owned Capital Operation and Management Company Limited, Beijing BOE Investment & Development Co., Ltd., Beijing Jing Guorui SOE Reform and Development Fund (L.P.), Hefei Jianxiang Investment Co., Ltd., Beijing Electronics Holdings Co., Ltd. and Sinatay Life Insurance Co., Ltd.-Traditional Product were not involved in securities refinancing. 5. Except for the aforesaid, the Company does not know any other top-10 ordinary shareholder who was involved in securities refinancing. |
Note：The number of ordinary shareholders at the month-end prior to the disclosure of this Report is for the total number of common Stockholders of the Company as of March 20, 2023. At theend of the month before the disclosure date (March 31, 2023)，A-shareholders is 1,332,076; Due to the "T+3" trading rule for B shares, the Company failed to obtain the number of B-shareholdersat the end of the month before the disclosure date from China Securities Depository and Clearing Corporation Limited on the disclosure date.Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes ? No
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2022
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal personType of the controlling shareholder: legal person
| Name of controlling shareholder | Legal representative/person in charge | Date of establishment | Unified social credit code | Principal activity |
| Beijing Electronics Holdings Co., Ltd. | Zhang Jinsong | 8 April 1997 | 91110000633647998H | Operation and management of state-owned assets within authorization; communications equipment, audio & visual products for broadcasting and television, computer and its supporting equipment and the applied products, electronic raw material and components, home electric appliances and electronic products, electronic surveying instruments and meters, mechanical and electric equipment, electronic transportation products and investment in business fields other than electronics and its management, development of real estate, lease and sales of commodity apartments, property management. (The market entity shall independently choose business items and carry out business activities according to law. For items requiring approval according to law, the company must obtain approval from related authorities before carrying out the business activities. The company shall not engage in business activities that are banned and restricted in the national and municipal industrial policies.) |
| Controlling shareholder’s holdings in other listed companies at home or abroad in the Reporting Period | Beijing Electronic Shareholding Co., Ltd. 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 49,952,842 shares of A share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371), which accounted for 9.45% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered 33.70% of the total shares amount of NAURA Technology Group Co., Ltd.；it held 420,573,126 shares of A share of Beijing Yandong Microelectronic Co.,Ltd. (Stock Code: 688172), which accounted for 35.07% of the total shares of Beijing Yandong Microelectronic Co.,Ltd. Beijing Electronic Shareholding Co., Ltd. held 58,175,076 shares of A shares of BAIC BluePark New Energy Technology Co.,Ltd. (Stock Code: 600733), which accounted for 1.36% 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
BOE Technology Group Co., Ltd. Annual Report 2022
| Name of actual controller | Legal representative/person in charge | Date of establishment | Unified social credit code | Principal activity |
| Beijing Electronics Holdings Co., Ltd. | Zhang Jinsong | 8 April 1997 | 91110000633647998H | Operation and management of state-owned assets within authorization; communications equipment, audio & visual products for broadcasting and television, computer and its supporting equipment and the applied products, electronic raw material and components, home electric appliances and electronic products, electronic surveying instruments and meters, mechanical and electric equipment; electronic transportation products and investment in business fields other than electronics and its management, development of real estate, lease and sales of commodity apartments, property management. (The market entity shall independently choose business items and carry out business activities according to law. For items requiring approval according to law, the company must obtain approval from related authorities before carrying out the business activities. The company shall not engage in business activities that are banned and restricted in the national and municipal industrial policies.) |
| Other listed companies at home or abroad controlled by the actual controller in the Reporting Period | Beijing Electronic Shareholding Co., Ltd. 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 49,952,842 shares of A share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371), which accounted for 9.45% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered 33.70% of the total shares amount of NAURA Technology Group Co., Ltd.;it held 420,573,126 shares of A share of Beijing Yandong Microelectronic Co.,Ltd. (Stock Code: 688172), which accounted for 35.07% of the total shares of Beijing Yandong Microelectronic Co.,Ltd..Beijing Electronic Shareholding Co., Ltd. held 58,175,076 shares of A shares of BAIC BluePark New Energy Technology Co.,Ltd. (Stock Code: 600733), which accounted for 1.36% of the total shares of BAIC BluePark New Energy Technology Co.,Ltd. | |||
Change of the actual controller during the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company:
BOE Technology Group Co., Ltd. Annual Report 2022
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%, Zhao Caiyong
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 Management Centertransferred its 70% stake directly held in the Company to Beijing Electronics Holding Co., Ltd. for managing through a SharesManagement Agreement, and Beijing Electronics Holding Co., Ltd. obtained the shareholder’s rights other than the disposal andearnings rights attached to the 70% stake; and Beijing State-Owned Capital Operation and Management Center agreed in a VotingRights Exercise Agreement to align itself with Beijing Electronics Holding Co., Ltd. when exercising its voting rights of the remaining30% stake directly held by it in the Company.
3. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed theActing-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd.
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the LargestShareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the Company held byThem
□Applicable ? Not applicable
5. Other 10% or Greater Corporate Shareholders
? Applicable □ Not applicable
| Name of corporate shareholder | Legal representative/person in charge | Date of establishment | Registered capital | Principal activity |
| Beijing State-owned Capital Operation and Management Company Limited | Zhao Jifeng | 30 December 2008 | RMB50 billion | Operation and management of state-owned capital, investment and investment management; assets management; organize the reorganization as well as the merger and acquisition of the enterprise assets. |
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,Reorganizer and Other Commitment Makers
□Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
IV Specific Implementation of Share Repurchase during the Reporting Period
Progress on any share repurchase? Applicable □ Not applicable
| Disclosure time of plan | Number of shares to be repurchased | As % of total share capital | Amount of all repurchased shares | Term of repurchase | Usage | Number of shares repurchased (share) | Number of shares repurchased as % of the underlying stocks involved in the equity incentive plan (if any) |
| 31 August 2021 | 350 million shares to 500 million shares | 0.91%-1.30% of the total share capital at the time of disclosure of the repurchase plan | Not exceeding RMB3 billion | Not exceeding 12 months since the date when the share repurchase plan was reviewed and approved by the Board. | Implementation of equity incentive plan | 499,999,919 | 84.86% |
| 31 March 2022 | 200 million shares to 300 million shares | 0.52%-0.78% of the total share capital at the time of disclosure of the repurchase plan | Not exceeding HKD1 billion | Within 6 months since the date when the share repurchase plan was reviewed and approved by the shareholders’ meeting. | Cancel and reduce the registered capital of the Company correspondingly | 243,229,361 | - |
Progress on reducing the repurchased shares by means of centralized bidding
□Applicable ? Not applicable
BOE Technology Group Co., Ltd. Annual Report 2022
Part VIII Preference Shares
□ Applicable ? Not applicable
No preference shares in the Reporting Period.
BOE Technology Group Co., Ltd. Annual Report 2022
Part IX Bonds? Applicable □ Not applicableI Enterprise Bonds
□ Applicable ? Not applicable
No enterprise bonds in the Reporting Period.II Corporate Bonds? Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB
| Bond name | Abbr. | Bond code | Date of issue | Value date | Maturity | Balance | Coupon rate | Way of redemption | Trade place |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | 20BOEY3 | 149108 | 24 April 2020 | 27 April 2020 | 27 April 2023 | 2,000,000,000.00 | 3.50% | If the issuer does not execute its right in the deferred interest payment, corresponding interests shall be paid for this issue of bonds yearly, and the last installment of interest shall be paid with the redemption of principal. | SZSE |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital | 22BOEY1 | 149861 | 24 March 2022 | 25 March 2022 | 25 March 2025 | 2,000,000,000.00 | 3.50% | If the issuer does not execute its right in the deferred interest | SZSE |
BOE Technology Group Co., Ltd. Annual Report 2022
| Economy) (Phase I) | 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. | |||
| Appropriate arrangement of the investors (if any) | Only for the qualified investors | |||
| Applicable trade mechanism | Centralized bidding trade and negotiated block trade | |||
| Risk of delisting (if any) and countermeasures | Not | |||
Overdue bonds
□ Applicable ? Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the Investor Protection Clause
? Applicable □ Not applicableFor the renewable corporate bonds “20BOEY1”, “20BOEY2”, “20BOEY3” and “22BOEY1”, 3 interest-bearing years shall be regarded as a cycle. At the end of each cycle, the issuer shall havethe right to conditionally extend the issue of bonds for another cycle (3 years) or choose to fully redeem the due bonds at the end of the cycle. Following the full redemption of the "20BOEY1"and "20BOEY2" renewable corporate bonds on 28 February 2023 and 20 March 2023, respectively, the Company disclosed the Announcement on Not Exercising the Renewal Option of Issuerfor the Renewable Corporate Bonds (to Qualified Investors) (the Third Issue) (Pandemic Prevention and Control Bonds) Publicly Issued by the Company in 2020 (Announcement No. 2023-008)on 15 March 2023. As at the date of approval of this annual report, the Company has not exercised the renewal option of issuer. Additionally, as the above-mentioned renewable corporate bondsincorporate the option of issuer to postpone interest payment, the Company has not exercised such option as at the date of approval of this annual report.
3. Intermediary
| Bond | Intermediary | Office address | Signature accountant | Contact person of intermediary | Contact number |
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I), 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds), 2020 Public Offering of Renewable | China Securities Co., Ltd. | Rm. 2203, North Tower, Shanghai Securities Plaza, 528 Pudong Road South, | Zhang Huan, Liu Jingyuan, Su Xing, Wang Ting | Zhu Mingqiang, Han Yong, Liao Ling, Xu Tianquan | 021-68801569 |
BOE Technology Group Co., Ltd. Annual Report 2022
| Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds), 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds), 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | Shanghai | ||||
| 2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I), 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds), 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control bonds), 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds), 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | China Lianhe Credit Rating Co., Ltd. | 12/F, PICC Building, No.2 Jianwai Street, Chaoyang District, Beijing | None | Li Jie, Sun Jing | 010-85679696 |
Indicate by tick mark whether above intermediary changed in the Reporting Period
□Yes ? No
BOE Technology Group Co., Ltd. AnnualReport 2022
4. List of the Usage of the Raised Funds
Unit: RMB
| Bonds | Total amount | Amount spent | Unused amount | Operation of special account for raised funds (if any) | Rectification of raised funds for violation operation (if any) | Whether is consistent with the usage, using plan and other agreements stipulated in the raising specification |
| 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic prevention and control bonds) | 2,000,000,000.00 | 2,000,000,000.00 | 0.00 | N/A | N/A | Yes |
| 2022 Public Offering of Renewable Corporate Bonds of BOE (for professional investors) (Digital Economy) (Phase I) | 2,000,000,000.00 | 2,000,000,000.00 | 0.00 | N/A | N/A | Yes |
The raised funds were used for project construction
□Applicable ? Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.
□Applicable ? Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□Applicable ? Not applicable
6. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measuresas well as Influence on Equity of Bond Investors during the Reporting Period
□Applicable ? Not applicable
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable ? Not applicable
No such cases in the Reporting Period.IV Convertible Corporate Bonds
□ Applicable ? Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. AnnualReport 2022
V Losses of Scope of Consolidated Financial Statements during the Reporting PeriodExceeding 10% of Net Assets up the Period-end of Last Year
□Applicable ? Not applicable
VI Matured Interest-bearing Debt excluding Bonds up the Period-end
□Applicable ? Not applicable
VII Whether there was any Violation of Rules and Regulations during the ReportingPeriod
□Yes ? No
VIII The Major Accounting Data and the Financial Indicators of the Recent 2 Years of theCompany up the Period-end
Unit: RMB’0,000
| Item | 31 December 2022 | 31 December 2021 | Change |
| Current ratio | 1.66 | 1.56 | 6.41% |
| Debt/asset ratio | 51.96% | 51.72% | 0.24% |
| Quick ratio | 1.39 | 1.29 | 7.75% |
| Item | 2022 | 2021 | Change |
| Net profit after deducting non-recurring profit or loss | -222,865 | 2,406,736 | -109.26% |
| Total debt ratio of EBITDA | 25.57% | 50.40% | -24.83% |
| Times interest earned | 1.01 | 7.72 | -86.92% |
| Times interest earned of cash | 8.88 | 10.77 | -17.55% |
| EBITDA-to-interest coverage (times) | 9.45 | 14.31 | -33.96% |
| Loan repayment rate | 100.00% | 100.00% | 0.00% |
| Interest coverage | 100.00% | 100.00% | 0.00% |
BOE Technology Group Co., Ltd. AnnualReport 2022
Part X Financial StatementsI Independent Auditor’s Report
| Type of the independent auditor’s opinion | Standard unqualified audit opinion |
| Date of signing this report | 31 March 2023 |
| Name of the independent auditor | KPMG Huazhen Certified Public Accountants (LLP) |
| Reference number of auditor’s report | KPMGHZSZ No.【2303647】 |
| Name of the certified public accountants | Su Xing, Chai Jing |
AUDITOR’S REPORT
毕马威华振审字第2303647号
The Shareholders of BOE Technology Group Co., Ltd.:
Opinion
We have audited the accompanying financial statements of BOE Technology Group Co., Ltd.(“BOE”), which comprise the consolidated and company balance sheets as at 31 December2022, the consolidated and company income statements, the consolidated and companycash flow statements, the consolidated and company statements of changes in shareholders’equity for the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects,the consolidated and company financial position of BOE as at 31 December 2022, and theconsolidated and company financial performance and cash flows of BOE for the year thenended in accordance with Accounting Standards for Business Enterprises issued by theMinistry of Finance of the People’s Republic of China.
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified PublicAccountants (“CSAs”). Our responsibilities under those standards are further described in theAuditor’s Responsibilities for the Audit of the Financial Statements section of our report. Weare independent of BOE in accordance with the China Code of Ethics for Certified PublicAccountants (“the Code”), and we have fulfilled our other ethical responsibilities inaccordance with the Code. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.
BOE Technology Group Co., Ltd. AnnualReport 2022
AUDITOR’S REPORT (continued)
毕马威华振审字第2303647号
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of mostsignificance in our audit of the financial statements of the current period. These matters wereaddressed in the context of our audit of the financial statements as a whole, and in formingour opinion thereon, and we do not provide a separate opinion on these matters.
| Revenue recognition | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 23 and “V. Notes to the consolidated financial statements” 43. | |
| The Key Audit Matter | How the matter was addressed in our audit |
| The revenue of BOE and its subsidiaries (“BOE Group”) is mainly derived from the sales of products relating to display device across the domestic and overseas market. The sales contracts/orders signed between BOE Group and its customers (mainly electronic equipment manufacturers) contain various trading terms. BOE Group judges the transfer timing of control according to the trading terms, and recognises revenue accordingly. Depending on the trading terms, the income is usually recognized when the goods are delivered and received, or when they are received by the carrier. We identified the recognition of BOE Group’s revenue as a key audit matter because revenue, as one of BOE Group’s key performance indicators, involves various trading terms, and there is an inherent risk that revenue may not be recognised in a correct period. | Our audit procedures to evaluate revenue recognition included the following: ? Evaluate the design and operation effectiveness of key internal controls related to revenue recognition; ? Check key sales contracts/orders on a sampling basis to identify relevant trading terms, and evaluate whether the accounting policies for revenue recognition of BOE Group meet the requirements of the Enterprise Accounting Standards; ? On a sampling basis and according to different trading terms, reconcile the revenue recorded in the current year to relevant supporting files such as relevant orders, shipping orders, sales invoices, customs declarations, bills of lading, delivery receipts, etc. to evaluate whether revenue is recognised in accordance with the accounting policy of BOE Group; ? On a sampling basis and according to different trading terms, cross check the revenue recorded before and after the balance sheet date against relevant supporting files such as relevant orders, shipping orders, sales invoices, customs declarations, bills of lading, delivery receipts, etc. to evaluate whether revenue is recorded in the appropriate period; |
BOE Technology Group Co., Ltd. AnnualReport 2022
AUDITOR’S REPORT (continued)
毕马威华振审字第2303647号
Key Audit Matters (continued)
| Revenue recognition (continued) | |
| Refer to Note III. 23 of the accounting policy to the financial statements and Note V. 43 to to the consolidated financial statements. | |
| The Key Audit Matter | How the matter was addressed in our audit |
| ? Select a sample based on the characteristics and nature of customer's transaction, and perform confirmation procedures on the balance of accounts receivable as at the balance sheet date and the sales transaction amount during the current year; ? On a sampling basis, check the written-back of revenue after the balance sheet date (including sales discounts and sales returns, etc.) with relevant supporting documents to assess whether revenue is recorded in the appropriate period; ? Select revenue accounting entries that meet specific risk criteria and check related supporting documents. | |
BOE Technology Group Co., Ltd. AnnualReport 2022
AUDITOR’S REPORT (continued)
毕马威华振审字第2303647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 2022, the book value of fixed assets and construction in progress amounted to RMB 249.373 billion. 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 capitalization 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. |
BOE Technology Group Co., Ltd. AnnualReport 2022
AUDITOR’S REPORT (continued)
毕马威华振审字第2303647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 2022, the book value of fixed assets and intangible assets amounted to RMB 214.935 billion, the judgement on impairment indications and impairment test are material to BOE Group’s financial statements. The management classifies asset groups based on the smallest identifiable group of assets that generates cash inflows that are independent, and continuously monitors the trend of market of supply and demand as well as the technology evolution; comprehensively judges impairment indications of each asset group in accordance with market trends, operating conditions of production lines and technological advanced performance, and performs impairment test on asset groups if any impairment indication exists. For asset groups with impairment indications, the management assesses whether the book value of fixed assets and intangible assets as at 31 December 2022 were impaired by calculating the present value of expected future cash flows. Calculating the present value of expected future cash flows requires management to make significant judgements, especially for the estimation of future selling prices, sales volume and applicable discount rate. | Our audit procedures to evaluate impairment of fixed assets and intangible assets included the following: ? Evaluate management’s identification of asset groups, assessment of impairment indications, and assess the design and operation effectiveness of key internal controls for impairment tests; ? Based on our understanding of BOE Group’s businesses and relevant accounting standards, evaluate management’s classification basis of asset groups and judgement basis of impairment indications; ? For asset groups with impairment indications, based on our understanding of the industry, compare the key assumptions in the calculation of recoverable amounts used by management with external available data and historical analysis, including future selling prices, sales volume and discount rate used by management, evaluate the key assumptions and estimations used by the management; ? For asset groups with significant impairment risk, assess the competence, professional quality and objectivity of experts hired by the management; and adopt our own valuation experts’ work, assess if discount rates used for estimating the present value of future cash flows by management are within the range used by other companies in the same industry; |
BOE Technology Group Co., Ltd. AnnualReport 2022
AUDITOR’S REPORT (continued)
毕马威华振审字第2303647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 evaluate impairment of fixed assets and intangible assets included the following: ? Compare estimations used for calculating the present value of expected future cash flows in the previous year by the management with the actual situation in this year to consider the historical accuracy of management’s forecast results; ? Perform sensitivity analysis on key assumptions, including future selling prices, sales volume and discount rates, used in the calculation of recoverable amount by the management; assess how changes in key assumptions (individually or collectively) will lead to different results and assess whether there are indications of management bias in the selection of key assumptions; ? Consider whether the disclosure of impairment of fixed assets and intangible assets in the financial statements is consistent with relevant accounting policy. |
BOE Technology Group Co., Ltd. AnnualReport 2022
AUDITOR’S REPORT (continued)
毕马威华振审字第2303647号
Other Information
BOE’s management is responsible for the other information. The other information comprisesall the information included in 2022 annual report of BOE, other than the financial statementsand our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistentwith the financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatementof this other information, we are required to report that fact. We have nothing to report in thisregard.
Responsibilities of Management and Those Charged with Governance for the FinancialStatements
Management is responsible for the preparation and fair presentation of the financialstatements in accordance with the Accounting Standards for Business Enterprises, and forthe design, implementation and maintenance of such internal control necessary to enablethat the financial statements are free from material misstatement, whether due to fraud orerror.
In preparing the financial statements, management is responsible for assessing BOE’s abilityto continue as a going concern, disclosing, as applicable, matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate BOE or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing BOE’s financial reportingprocess.
BOE Technology Group Co., Ltd. AnnualReport 2022
AUDITOR’S REPORT (continued)
毕马威华振审字第2303647号
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements asa whole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with CSAs will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:
? Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
? Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances.
? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
? Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertaintyexists related to events or conditions that may cast significant doubt on BOE’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we arerequired to draw attention in our auditor’s report to the related disclosures in the financialstatements or, if such disclosures are inadequate, to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor’s report. However,future events or conditions may cause BOE to cease to continue as a going concern.
? Evaluate the overall presentation, structure and content of the financial statements,including the disclosures, and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
BOE Technology Group Co., Ltd. AnnualReport 2022
AUDITOR’S REPORT (continued)
毕马威华振审字第2303647号
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
? Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within BOE to express an opinion on the financialstatements. We are responsible for the direction, supervision and performance of thegroup audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence, and communicate with them allrelationships and other matters that may reasonably be thought to bear on our independenceand, where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine thosematters that were of most significance in the audit of the financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure about the matter or when, inextremely rare circumstances, we determine that a matter should not be communicated inour report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
KPMG Huazhen LLP Certified Public AccountantsRegistered in the People’s Republic of China
Su Xing (Engagement Partner)
Beijing, China Chai Jing
31 March 2023
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2022(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| Assets | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current assets | ? | ? | ? | ? |
| Cash at bank and on hand | V.1 | 68,800,307,369 | ? | 80,986,835,088 |
| Financial assets held for trading | V.2 | 17,187,993,936 | ? | 10,028,172,853 |
| Bills receivable | V.3 | 211,792,061 | ? | 217,734,298 |
| Accounts receivable | V.4 | 28,203,647,569 | ? | 35,503,414,820 |
| Prepayments | V.5 | 589,764,680 | ? | 1,112,880,007 |
| Other receivables | V.6 | 975,809,236 | ? | 1,922,828,378 |
| Inventories | V.7 | 22,787,814,225 | ? | 27,805,161,436 |
| Contract assets | V.8 | 71,636,461 | ? | 75,698,324 |
| Non-current assets due within one year | ? | 8,561,307 | ? | 7,700,735 |
| Other current assets | V.9 | 3,394,036,919 | ? | 3,578,919,710 |
| ? | ? | ? | ? | ? |
| Total current assets | ? | 142,231,363,763 | ? | 161,239,345,649 |
????
????
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| Assets (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Non-current assets | ? | ? | ? | ? |
| Long-term receivables | ? | 28,637,449 | ? | 29,918,542 |
| Long-term equity investments | V.10 | 12,421,878,851 | ? | 6,040,948,317 |
| Investments in other equity instruments | V.11 | 483,060,306 | ? | 519,088,146 |
| Other non-current financial assets | V.12 | 2,022,967,681 | ? | 606,895,447 |
| Investment properties | V.13 | 1,122,025,138 | ? | 1,158,365,401 |
| Fixed assets | V.14 | 205,987,050,430 | ? | 227,141,366,884 |
| Construction in progress | V.15 | 43,386,134,668 | ? | 32,099,711,879 |
| Right-of-use assets | V.60 | 687,120,946 | ? | 753,164,237 |
| Intangible assets | V.16 | 8,948,327,143 | ? | 11,209,498,406 |
| Goodwill | V.17 | 660,823,651 | ? | 1,130,006,987 |
| Long-term deferred expenses | V.18 | 556,941,377 | ? | 636,530,502 |
| Deferred tax assets | V.19 | 70,250,425 | ? | 190,335,524 |
| Other non-current assets | V.20 | 1,955,521,384 | ? | 7,477,427,483 |
| ? | ? | ? | ? | ? |
| Total non-current assets | ? | 278,330,739,449 | ? | 288,993,257,755 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Total assets | ? | 420,562,103,212 | ? | 450,232,603,404 |
???
???
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| Liabilities and shareholders’ equity | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current liabilities | ? | ? | ? | ? |
| Short-term loans | V.21 | 2,373,938,871 | ? | 2,072,057,332 |
| Bills payable | V.22 | 870,221,538 | ? | 827,958,031 |
| Accounts payable | V.23 | 29,834,720,464 | ? | 32,455,830,694 |
| Advance payments received | V.24 | 79,848,977 | ? | 146,140,084 |
| Contract liabilities | V.25 | 2,411,717,792 | ? | 3,765,081,554 |
| Employee benefits payable | V.26 | 2,818,532,823 | ? | 5,133,155,237 |
| Taxes payable | V.27 | 1,331,401,188 | ? | 2,200,249,305 |
| Other payables | V.28 | 19,632,223,269 | ? | 23,835,374,942 |
| Non-current liabilities due within one year | V.29 | 22,703,750,744 | ? | 28,874,958,714 |
| Other current liabilities | V.30 | 3,613,967,673 | ? | 4,051,532,509 |
| ? | ? | ? | ? | ? |
| Total current liabilities | ? | 85,670,323,339 | ? | 103,362,338,402 |
????
????
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Non-current liabilities | ? | ? | ? | ? |
| Long-term loans | V.31 | 123,143,479,690 | ? | 116,078,666,587 |
| Debentures payable | V.32 | - | ? | 359,586,437 |
| Lease liabilities | V.60 | 538,586,010 | ? | 669,130,264 |
| Long-term payables | V.33 | 229,587,077 | ? | 906,592,838 |
| Deferred income | V.34 | 5,156,347,332 | ? | 6,416,089,611 |
| Deferred tax liabilities | V.19 | 1,274,406,833 | ? | 1,525,622,873 |
| Other non-current liabilities | V.35 | 2,499,075,805 | ? | 3,535,809,876 |
| ? | ? | ? | ? | ? |
| Total non-current liabilities | ? | 132,841,482,747 | ? | 129,491,498,486 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities | ? | 218,511,806,086 | ? | 232,853,836,888 |
| ? |
???
???
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Shareholders’ equity | ? | ? | ? | ? |
| Share capital | V.36 | 38,196,363,421 | ? | 38,445,746,482 |
| Other equity instruments | V.37 | 8,176,366,808 | ? | 14,146,997,427 |
| Capital reserve | V.38 | 55,218,504,392 | ? | 53,917,609,094 |
| Less: Treasury shares | V.39 | 3,508,201,911 | ? | 3,415,768,207 |
| Other comprehensive income | V.40 | (1,073,768,030) | ? | 113,551,147 |
| Surplus reserve | V.41 | 3,241,063,934 | ? | 2,889,590,205 |
| Retained earnings | V.42 | 35,839,081,781 | ? | 37,106,514,799 |
| ? | ? | ? | ? | ? |
| Total equity attributable to shareholders of the Company | ? | 136,089,410,395 | ? | 143,204,240,947 |
| ? | ? | ? | ? | ? |
| Non-controlling interests | ? | 65,960,886,731 | ? | 74,174,525,569 |
| ? | ? | ? | ? | ? |
| Total shareholders’ equity | ? | 202,050,297,126 | ? | 217,378,766,516 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | ? | 420,562,103,212 | ? | 450,232,603,404 |
????
????
These financial statements were approved by the Board of Directors of the Company on 31March 2023.
| Chen Yanshun Chairman of the Board | Gao Wenbao Chief Executive Officer | Yang Xiaoping Chief Financial Officer | Teng Jiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2022(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| Assets | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current assets | ? | ? | ? | ? |
| Cash at bank and on hand | 7,121,641,234 | ? | 5,609,364,822 | |
| Accounts receivable | XV.1 | 4,863,665,269 | ? | 4,828,855,275 |
| Prepayments | ? | 7,045,311 | ? | 12,669,107 |
| Other receivables | XV.2 | 19,878,145,375 | ? | 15,449,830,610 |
| Inventories | ? | 15,065,947 | ? | 15,853,238 |
| Other current assets | 57,226,515 | ? | 167,179,023 | |
| ? | ? | ? | ? | ? |
| Total current assets | ? | 31,942,789,651 | ? | 26,083,752,075 |
| ? | ? | ? | ? | ? |
| Non-current assets | ? | ? | ? | ? |
| Long-term equity investments | XV.3 | 214,308,953,020 | ? | 210,945,821,235 |
| Investments in other equity instruments | ? | 60,434,464 | ? | 63,458,868 |
| Other non-current financial assets | 1,416,072,234 | ? | - | |
| Investment properties | ? | 251,870,591 | ? | 261,526,129 |
| Fixed assets | ? | 921,510,043 | ? | 961,944,766 |
| Construction in progress | ? | 616,247,335 | ? | 551,352,449 |
| Right-of-use assets | 126,373,643 | ? | 170,173,793 | |
| Intangible assets | 1,122,230,564 | ? | 1,243,806,868 | |
| Long-term deferred expenses | ? | 384,123,386 | ? | 441,560,097 |
| Other non-current assets | ? | 1,080,322,988 | ? | 1,744,751,520 |
| ? | ? | ? | ? | ? |
| Total non-current assets | ? | 220,288,138,268 | ? | 216,384,395,725 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Total assets | ? | 252,230,927,919 | ? | 242,468,147,800 |
?
?
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| Liabilities and shareholders’ equity | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current liabilities | ? | ? | ? | ? |
| Accounts payable | ? | 312,100,258 | ? | 61,519,244 |
| Advance payments received | 14,819,929 | ? | 20,038,334 | |
| Contract liabilities | ? | 19,200 | ? | - |
| Employee benefits payable | 282,792,422 | ? | 640,728,285 | |
| Taxes payable | ? | 139,166,672 | ? | 244,586,957 |
| Other payables | XV.5 | 4,249,391,146 | ? | 2,880,884,768 |
| Non-current liabilities due within one year | ? | 2,704,607,119 | ? | 10,909,326,195 |
| Other current liabilities | ? | 20,283,257 | ? | 29,190,783 |
| ? | ? | ? | ? | ? |
| Total current liabilities | ? | 7,723,180,003 | ? | 14,786,274,566 |
| ? | ? | ? | ? | ? |
| Non-current liabilities | ? | ? | ? | ? |
| Long-term loans | XV.6 | 39,557,500,000 | ? | 32,208,500,000 |
| Lease liabilities | 85,830,813 | ? | 129,343,868 | |
| Deferred income | 1,933,587,746 | ? | 2,906,951,707 | |
| Deferred tax liabilities | XV.4 | 111,987,272 | ? | 225,816,218 |
| Other non-current liabilities | XV.7? | 96,394,661,805 | ? | 74,506,661,805 |
| ? | ? | ? | ? | ? |
| Total non-current liabilities | ? | 138,083,567,636 | ? | 109,977,273,598 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities | ? | 145,806,747,639 | ? | 124,763,548,164 |
????
????
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Shareholders’ equity | ? | ? | ? | ? |
| Share capital | V.36 | 38,196,363,421 | ? | 38,445,746,482 |
| Other equity instruments | V.37 | 8,176,366,808 | ? | 14,146,997,427 |
| Capital reserve | XV.8 | 53,693,627,213 | ? | 53,598,033,152 |
| Less: Treasury shares | V.39 | 3,508,201,911 | ? | 3,415,768,207 |
| Other comprehensive income | XV.9 | 340,345 | ? | 89,024,650 |
| Surplus reserve | V.41 | 3,241,063,934 | ? | 2,889,590,205 |
| Retained earnings | XV.10 | 6,624,620,470 | ? | 11,950,975,927 |
| ? | ? | ? | ? | ? |
| Total shareholders’ equity | ? | 106,424,180,280 | ? | 117,704,599,636 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | ? | 252,230,927,919 | ? | 242,468,147,800 |
???
???
These financial statements were approved by the Board of Directors of the Company on 31March 2023.
| Chen Yanshun Chairman of the Board | Gao Wenbao Chief Executive Officer | Yang Xiaoping Chief Financial Officer | Teng Jiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2022(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| I. Operating income | V.43 | 178,413,731,179 | ? | 221,035,718,012 |
| ? | ? | ? | ? | ? |
| II. Less: Operating costs | V.43 | 157,530,566,152 | ? | 157,298,825,781 |
| Taxes and surcharges | V.44 | 1,275,171,339 | ? | 1,424,205,826 |
| Selling and distribution expenses | V.45 | 4,233,290,297 | ? | 5,484,589,978 |
| General and administrative expenses | V.46 | 6,247,637,006 | ? | 6,693,373,589 |
| Research and development expenses | V.47 | 11,100,768,677 | ? | 10,616,426,327 |
| Financial expenses | V.48 | 2,445,130,575 | ? | 3,682,379,202 |
| Including: Interest expenses | ? | 3,572,211,438 | ? | 4,866,778,333 |
| Interest income | ? | 1,483,022,892 | ? | 1,050,431,325 |
| Add: Other income | V.49 | 5,485,529,324 | ? | 2,092,765,728 |
| Investment income | V.50 | 6,094,267,884 | ? | 1,347,489,345 |
| Including: Income from investment in associates and joint ventures | ? | 528,103,680 | ? | 1,245,036,895 |
| Gains from changes in fair value | V.51 | 159,344,584 | ? | 84,966,963 |
| Credit losses | V.52 | (51,577,226) | ? | (28,409,869) |
| Impairment losses | V.53 | (7,304,471,630) | ? | (4,478,251,852) |
| Gains from asset disposals | V.54 | 10,965,556 | ? | 153,505,791 |
| ? | ? | ? | ? | ? |
| III. Operating (loss) / profit | ? | (24,774,375) | ? | 35,007,983,415 |
| ? | ? | ? | ? | ? |
| Add: Non-operating income | V.55 | 163,242,857 | ? | 131,607,946 |
| Less: Non-operating expenses | V.55 | 87,249,543 | ? | 55,215,102 |
????
????
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| IV. Profit before income tax | ? | 51,218,939 | ? | 35,084,376,259 |
| ? | ? | ? | ? | ? |
| Less: Income tax expenses | V.56 | 1,788,394,107 | ? | 4,187,971,404 |
| ? | ? | ? | ? | ? |
| V. Net (loss) / profit for the year | ? | (1,737,175,168) | ? | 30,896,404,855 |
| ? | ? | ? | ? | ? |
| Shareholders of the Company | ? | 7,550,877,790 | ? | 25,960,751,646 |
| Non-controlling interests | ? | (9,288,052,958) | ? | 4,935,653,209 |
???
???
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| VI. Other comprehensive income, net of tax | V.40 | (1,158,016,792) | ? | 155,717,231 |
| ? | ? | ? | ? | ? |
| Other comprehensive income (net of tax) attributable to owners of the Company | ? | (1,164,537,236) | ? | 190,988,004 |
| (1) Items that will not be reclassified to profit or loss | ? | ? | ? | ? |
| 1. Other comprehensive income recognised under equity method | ? | (53,367,649) | ? | 68,869,497 |
| 2. Changes in fair value of investments in other equity instruments | ? | (79,547,426) | ? | (40,618,274) |
| (2) Items that may be reclassified to profit or loss | ? | ? | ? | ? |
| 1. Other comprehensive income recognised under equity method | ? | 127,867 | ? | (296,553) |
| 2. Translation differences arising from translation of foreign currency financial statements | ? | (1,031,750,028) | ? | 163,033,334 |
| Other comprehensive income (net of tax) attributable to non-controlling interests | ? | 6,520,444 | ? | (35,270,773) |
????
????
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| VII. Total comprehensive income for the year | ? | (2,895,191,960) | ? | 31,052,122,086 |
| ? | ? | ? | ? | ? |
| Attributable to shareholders of the Company | ? | 6,386,340,554 | ? | 26,151,739,650 |
| Attributable to non-controlling interests | ? | (9,281,532,514) | ? | 4,900,382,436 |
| ? | ? | ? | ? | ? |
| VIII. Earnings per share: | ? | ? | ? | ? |
| (1) Basic earnings per share | V.57 | 0.19 | ? | 0.71 |
| (2) Diluted earnings per share | V.57 | Not applicable | ? | 0.71 |
???
???
These financial statements were approved by the Board of Directors of the Company on 31March 2023.
| Chen Yanshun Chairman of the Board | Gao Wenbao Chief Executive Officer | Yang Xiaoping Chief Financial Officer | Teng Jiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2022(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| I. Operating income | XV.11 | 4,873,328,715 | ? | 5,716,998,034 |
| ? | ? | ? | ? | ? |
| II. Less: Operating costs | ? | 10,080,268 | ? | 16,459,454 |
| Taxes and surcharges | XV.11 | 55,342,015 | ? | 36,630,410 |
| General and administrative expenses | ? | 1,348,187,653 | ? | 1,577,032,602 |
| Research and development expenses | 2,046,032,751 | ? | 2,330,865,497 | |
| Financial expenses | 574,596,105 | ? | 798,736,264 | |
| Including: Interest expenses | 631,737,202 | ? | 892,768,026 | |
| Interest income | 96,658,931 | ? | 93,003,346 | |
| Add: Other income | 948,637,354 | ? | 948,922,174 | |
| Investment income | XV.12 | 1,934,087,931 | ? | 2,755,668,691 |
| Including: Income from investment in associates and joint ventures | ? | 328,861,860 | ? | 864,640,400 |
| Credit losses | ? | (18,126,642) | ? | (5,247,340) |
| Losses from asset disposals | ? | - | ? | (773,327) |
| ? | ? | ? | ? | ? |
| III. Operating profit | ? | 3,703,688,566 | ? | 4,655,844,005 |
| ? | ? | ? | ? | ? |
| Add: Non-operating income | ? | 6,873,424 | ? | 7,424,220 |
| Less: Non-operating expenses | ? | 26,617,581 | ? | 5,915,655 |
| ? | ? | ? | ? | ? |
| IV. Profit before income tax | ? | 3,683,944,409 | ? | 4,657,352,570 |
| ? | ? | ? | ? | ? |
| Less: Income tax expenses | XV.13 | 202,080,897 | ? | 260,856,004 |
| ? | ? | ? | ? | ? |
| V. Net profit for the year | ? | 3,481,863,512 | ? | 4,396,496,566 |
????
????
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| VI. Other comprehensive income, net of tax | XV.9 | (55,810,525) | ? | 53,550,302 |
| (1) Items that will not be reclassified to profit or loss | ? | ? | ? | ? |
| 1. Other comprehensive income recognised under equity method | ? | (53,367,649) | ? | 68,869,497 |
| 2. Changes in fair value of investments in other equity instruments | ? | (2,570,743) | ? | (15,073,903) |
| (2) Items that may be reclassified to profit or loss | ? | 127,867 | ? | (245,292) |
| ? | ? | ? | ? | ? |
| VII. Total comprehensive income for the year | ? | 3,426,052,987 | ? | 4,450,046,868 |
???
???
These financial statements were approved by the Board of Directors of the Company on 31March 2023.
| Chen Yanshun Chairman of the Board | Gao Wenbao Chief Executive Officer | Yang Xiaoping Chief Financial Officer | Teng Jiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2022(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| I. Cash flows from operating activities: | ? | ? | ? | ? |
| Proceeds from sale of goods and rendering of services | ? | 193,327,661,415 | ? | 221,840,098,206 |
| Refund of taxes | ? | 17,259,338,469 | ? | 13,173,129,922 |
| Proceeds from other operating activities | ? | 7,397,264,096 | ? | 5,925,158,408 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 217,984,263,980 | ? | 240,938,386,536 |
| ? | ? | ? | ? | ? |
| Payment for goods and services | ? | (142,617,274,685) | ? | (146,642,673,111) |
| Payment to and for employees | ? | (19,821,022,609) | ? | (17,908,235,464) |
| Payment of various taxes | ? | (5,394,897,972) | ? | (5,149,971,194) |
| Payment for other operating activities | ? | (7,129,101,409) | ? | (8,538,818,211) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (174,962,296,675) | ? | (178,239,697,980) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flows generated from operating activities | V.58(1) | 43,021,967,305 | ? | 62,698,688,556 |
???
???
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| II. Cash flows from investing activities: | ? | ? | ? | ? |
| Proceeds from disposal of investments | ? | 83,038,823,137 | ? | 33,071,343,623 |
| Investment returns received | ? | 461,543,173 | ? | 180,030,588 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | ? | 26,645,620 | ? | 69,111,303 |
| Net proceeds from disposal of subsidiaries | ? | 936,758,922 | ? | - |
| Proceeds from other investing activities | ? | 1,311,942,470 | ? | 3,438,995,631 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 85,775,713,322 | ? | 36,759,481,145 |
| ? | ? | ? | ? | ? |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | ? | (29,398,245,045) | ? | (36,098,078,337) |
| Payment for acquisition of investments | ? | (92,205,577,385) | ? | (41,638,460,294) |
| Net payment for acquisition of subsidiaries | ? | - | ? | (2,815,535) |
| Net payment for disposal of subsidiaries | ? | (144,689,766) | ? | (160,887,997) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (121,748,512,196) | ? | (77,900,242,163) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flows used in investing activities | ? | (35,972,798,874) | ? | (41,140,761,018) |
???
???
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| III. Cash flows from financing activities: | ? | ? | ? | ? |
| Proceeds from investors | ? | 2,301,848,242 | ? | 31,519,607,755 |
| Including: Proceeds from non-controlling shareholders of subsidiaries | ? | 2,301,848,242 | ? | 11,187,003,325 |
| Proceeds from issuance of debentures | ? | 2,000,000,000 | ? | - |
| Proceeds from borrowings | ? | 49,812,750,352 | ? | 31,028,727,811 |
| Proceeds from other financing activities | ? | 771,327,623 | ? | 1,106,689,881 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 54,885,926,217 | ? | 63,655,025,447 |
???
???
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| III. Cash flows from financing activities (continued): | ? | ? | ? | ? |
| Repayments of borrowings | ? | (51,681,667,124) | ? | (48,435,579,182) |
| Payment for redeeming bonds | ? | (8,000,000,000) | ? | - |
| Payment for dividends or interest | ? | (13,828,515,479) | ? | (10,261,666,002) |
| Including: Profits paid to non-controlling shareholders of subsidiaries | ? | (39,388,061) | ? | (34,862,550) |
| Payment for other financing activities | ? | (2,548,995,476) | ? | (17,139,649,816) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (76,059,178,079) | ? | (75,836,895,000) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flow used in financing activities | ? | (21,173,251,862) | ? | (12,181,869,553) |
| ? | ? | ? | ? | ? |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | ? | 1,882,635,112 | ? | (817,308,273) |
| ? | ||||
| ? | ? | ? | ? | ? |
| V. Net (decrease) / increase in cash and cash equivalents | V.58(1) | (12,241,448,319) | ? | 8,558,749,712 |
| ? | ? | ? | ? | ? |
| Add: Cash and cash equivalents at the beginning of the year | ? | 76,623,486,083 | ? | 68,064,736,371 |
| ? | ? | ? | ? | ? |
| VI. Cash and cash equivalents at the end of the year | V.58(3) | 64,382,037,764 | ? | 76,623,486,083 |
???
???
These financial statements were approved by the Board of Directors of the Company on 31March 2023.
| Chen Yanshun Chairman of the Board | Gao Wenbao Chief Executive Officer | Yang Xiaoping Chief Financial Officer | Teng Jiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2022(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| I. Cash flows from operating activities: | ? | ? | ? | ? |
| Proceeds from sale of goods and rendering of services | ? | 5,650,186,755 | ? | 5,868,891,208 |
| Proceeds from other operating activities | ? | 2,005,413,901 | ? | 406,266,493 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 7,655,600,656 | ? | 6,275,157,701 |
| ? | ? | ? | ? | ? |
| Payment for goods and services | ? | (1,161,216,577) | ? | (1,038,043,873) |
| Payment to and for employees | ? | (1,681,332,214) | ? | (1,532,937,459) |
| Payment of various taxes | ? | (676,007,600) | ? | (495,289,004) |
| Payment for other operating activities | ? | (452,287,489) | ? | (2,504,787,813) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (3,970,843,880) | ? | (5,571,058,149) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash flows generated from operating activities | XV.14(1) | 3,684,756,776 | ? | 704,099,552 |
| ? | ? | ? | ? | ? |
| II. Cash flows from investing activities: | ? | ? | ? | ? |
| Proceeds from disposal of investments | ? | 330,944,027 | ? | 890,504,898 |
| Proceeds from disposal of subsidiaries | ? | - | ? | 230,142,095 |
| Investment returns received | ? | 1,257,584,843 | ? | 2,129,623,919 |
| Net proceeds from disposal of fixed assets | ? | 241,034 | ? | 13,445,008 |
| Proceeds from other investing activities | ? | 10,546,180,253 | ? | 2,075,919,565 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 12,134,950,157 | ? | 5,339,635,485 |
????
????
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| II. Cash flows from investing activities (continued): | ? | ? | ? | ? |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | ? | (405,565,299) | ? | (715,641,262) |
| Payment for acquisition of investments | ? | (3,989,687,433) | ? | (30,498,556,648) |
| Payment for other investing activities | ? | (14,117,701,133) | ? | (825,000,000) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (18,512,953,865) | ? | (32,039,197,910) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash flows used in investing activities | ? | (6,378,003,708) | ? | (26,699,562,425) |
| ? | ? | ? | ? | ? |
| III. Cash flows from financing activities: | ? | ? | ? | ? |
| Proceeds from investors | ? | - | ? | 20,332,604,430 |
| Proceeds from issuance of debentures | ? | 2,000,000,000 | ? | - |
| Proceeds from borrowings | ? | 25,000,000,000 | ? | 14,303,000,000 |
| Proceeds from other financing activities | ? | 24,936,039,463 | ? | 20,888,483,038 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 51,936,039,463 | ? | 55,524,087,468 |
| ? | ? | ? | ? | ? |
| Repayments of borrowings | ? | (25,827,547,455) | ? | (17,355,376,312) |
| Payment for redeeming bonds | ? | (8,000,000,000) | ? | - |
| Payment for dividends and interest | ? | (9,842,819,608) | ? | (5,524,312,554) |
| Payment for other financing activities | ? | (4,136,747,868) | ? | (5,389,705,939) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (47,807,114,931) | ? | (28,269,394,805) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flows generated from financing activities | ? | 4,128,924,532 | ? | 27,254,692,663 |
????
????
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. AnnualReport 2022
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | ? | 76,264,084 | ? | (19,357,657) |
| ? | ||||
| ? | ? | ? | ? | ? |
| V. Net increase in cash and cash equivalents | XV.14(1) | 1,511,941,684 | ? | 1,239,872,133 |
| ? | ? | ? | ? | ? |
| Add: Cash and cash equivalents at the beginning of the year | ? | 5,599,937,349 | ? | 4,360,065,216 |
| ? | ? | ? | ? | ? |
| VI. Cash and cash equivalents at the end of the year | XV.14(2) | 7,111,879,033 | ? | 5,599,937,349 |
????
????
These financial statements were approved by the Board of Directors of the Company on 31March 2023.
| Chen Yanshun Chairman of the Board | Gao Wenbao Chief Executive Officer | Yang Xiaoping Chief Financial Officer | Teng Jiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. Annual Report 2022
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2022(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | ? | ? | |||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | Surplus reserve | ? | Retained earnings | Sub-total | Non-controlling interests | Total | ||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||||
| I. Balance at the beginning of the year | ? | 38,445,746,482 | 14,146,997,427 | 53,917,609,094 | ? | 3,415,768,207 | 113,551,147 | 2,889,590,205 | 37,106,514,799 | 143,204,240,947 | 74,174,525,569 | 217,378,766,516 | |||||||
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||||
| 1. Total comprehensive income | ? | - | - | - | ? | - | (1,164,537,236) | - | 7,550,877,790 | 6,386,340,554 | (9,281,532,514) | (2,895,191,960) | |||||||
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||||
| (1) Contribution by non-controlling interests | ? | - | - | - | ? | - | - | - | - | - | 2,301,848,242 | 2,301,848,242 | |||||||
| (2) Repurchase of treasury shares | V.39 | - | - | - | ? | 1,048,154,539 | - | - | - | (1,048,154,539) | - | (1,048,154,539) | |||||||
| (3) Cancellation of treasury shares | V.36/38/39 | (249,383,061) | - | (641,811,942) | ? | (891,195,003) | - | - | - | - | - | - | |||||||
| (4) Equity-settled share-based payments | XI | - | - | 654,336,707 | ? | (64,525,832) | - | - | - | 718,862,539 | 44,728,854 | 763,591,393 | |||||||
| (5) Contribution by holders of other equity instruments | V.37 | - | 1,989,320,755 | - | ? | - | - | - | - | 1,989,320,755 | - | 1,989,320,755 | |||||||
| (6) Payment for capital of holders of other equity instruments | V.37 | - | (7,957,047,264) | (42,952,736) | ? | - | - | - | - | (8,000,000,000) | - | (8,000,000,000) | |||||||
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||||
| (1) Appropriation for surplus reserve | V.41 | - | - | - | ? | - | - | 348,186,351 | (348,186,351) | - | - | - | |||||||
| (2) Accrued interest on holders of other equity instruments | V.37 | - | 530,695,890 | - | ? | - | - | - | (530,695,890) | - | - | - | |||||||
| (3) Payment for interest on holders of other equity instruments | V.37 | - | (533,600,000) | - | ? | - | - | - | - | (533,600,000) | - | (533,600,000) | |||||||
| (4) Distributions to shareholders | V.42 | - | - | - | ? | - | - | - | (7,958,923,130) | (7,958,923,130) | (54,411,212) | (8,013,334,342) | |||||||
???
???
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. Annual Report 2022
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | |||||||||||||
| ? | Note | Share capital | Other equity instruments | Capital reserve | ? | Less: Treasury shares | Other comprehensive income | Surplus reserve | Retained earnings | Sub-total | Non-controlling interests | Total | |||||
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||||
| (1) Transfer of other comprehensive income to retained earnings | V.40/41/42 | - | - | - | - | (22,781,941) | 3,287,378 | 19,494,563 | - | - | - | ||||||
| 5. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||||
| (1) Other movements in equity of associates | V.10 | - | - | 274,685,689 | - | - | - | - | 274,685,689 | 845,261 | 275,530,950 | ||||||
| (2) Disposal of equities in subsidiaries | V.38 | - | - | - | - | - | - | - | - | (1,154,255,778) | (1,154,255,778) | ||||||
| (3) Others | V.38 | - | - | 1,056,637,580 | - | - | - | - | 1,056,637,580 | (70,861,691) | 985,775,889 | ||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||||
| III. Balance at the end of the year | ? | 38,196,363,421 | 8,176,366,808 | 55,218,504,392 | 3,508,201,911 | (1,073,768,030) | 3,241,063,934 | 35,839,081,781 | 136,089,410,395 | 65,960,886,731 | 202,050,297,126 | ||||||
???
???
These financial statements were approved by the Board of Directors of the Company on 31 March 2023.
| Chen Yanshun Chairman of the Board | Gao Wenbao Chief Executive Officer | Yang Xiaoping Chief Financial Officer | Teng Jiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. Annual Report 2022
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | ? | ? | ||||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 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 |
| Add: Changes in accounting policies | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 35,577,201 | ? | 35,577,201 | ? | 5,309,967 | ? | 40,887,168 |
| Adjusted balance at the beginning 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 | ? | 15,545,371,823 | ? | 103,312,344,036 | ? | 70,126,277,846 | ? | 173,438,621,882 |
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | - | ? | 190,988,004 | ? | - | ? | 25,960,751,646 | ? | 26,151,739,650 | ? | 4,900,382,436 | ? | 31,052,122,086 |
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Contribution by ordinary shareholders | V.36 | 3,650,377,019 | ? | - | ? | 16,219,134,815 | ? | - | ? | - | ? | - | ? | - | ? | 19,869,511,834 | ? | - | ? | 19,869,511,834 |
| (2) Contribution by non-controlling interests | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 11,187,003,325 | ? | 11,187,003,325 |
| (3) Decrease of capital by non-controlling interests | ? | - | ? | - | ? | 322,947 | ? | - | ? | - | ? | - | ? | - | ? | 322,947 | ? | (8,482,947) | ? | (8,160,000) |
| (4) Repurchase of treasury shares | V.39 | - | ? | - | ? | - | ? | 2,428,003,419 | ? | - | ? | - | ? | - | ? | (2,428,003,419) | ? | - | ? | (2,428,003,419) |
| (5) Cancellation of treasury shares | V.36/38/39 | (3,029,300) | ? | - | ? | (14,270,384) | ? | (17,299,684) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| (6) Equity-settled share-based payments | XI | - | ? | - | ? | 598,701,862 | ? | (31,234,036) | ? | - | ? | - | ? | - | ? | 629,935,898 | ? | 41,990,775 | ? | 671,926,673 |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V.41 | - | ? | - | ? | - | ? | - | ? | - | ? | 439,649,657 | ? | (439,649,657) | ? | - | ? | - | ? | - |
| (2) Accrued interest on holders of other equity instruments | V.37 | - | ? | 533,600,000 | ? | - | ? | - | ? | - | ? | - | ? | (533,600,000) | ? | - | ? | - | ? | - |
| (3) Payment for interest on holders of other equity instruments | V.37 | - | ? | (533,600,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (533,600,000) | ? | - | ? | (533,600,000) |
| (4) Distributions to shareholders | V.42 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (3,476,073,919) | ? | (3,476,073,919) | ? | (34,862,550) | ? | (3,510,936,469) |
????
????
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. Annual Report 2022
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2021 (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.40/42 | - | ? | - | ? | - | ? | - | ? | (55,238,785) | ? | 5,523,879 | ? | 49,714,906 | ? | - | ? | - | ? | - |
| 5. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Other movements in equity of associates | V.10 | - | ? | - | ? | 51,030,550 | ? | - | ? | - | ? | - | ? | - | ? | 51,030,550 | ? | - | ? | 51,030,550 |
| (2) Acquisition of non-controlling interests | V.38 | - | ? | - | ? | (658,923,890) | ? | - | ? | - | ? | - | ? | - | ? | (658,923,890) | ? | (12,180,161,432) | ? | (12,839,085,322) |
| (3) Disposal of equities in subsidiaries | V.38 | - | ? | - | ? | 288,039,797 | ? | - | ? | - | ? | - | ? | - | ? | 288,039,797 | ? | 146,828,923 | ? | 434,868,720 |
| (4) Others | V.38 | - | ? | - | ? | (2,082,537) | ? | - | ? | - | ? | - | ? | - | ? | (2,082,537) | ? | (4,450,807) | ? | (6,533,344) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 38,445,746,482 | ? | 14,146,997,427 | ? | 53,917,609,094 | ? | 3,415,768,207 | ? | 113,551,147 | ? | 2,889,590,205 | ? | 37,106,514,799 | ? | 143,204,240,947 | ? | 74,174,525,569 | ? | 217,378,766,516 |
??
??
These financial statements were approved by the Board of Directors of the Company on 31 March 2023.
| Chen Yanshun Chairman of the Board | Gao Wenbao Chief Executive Officer | Yang Xiaoping Chief Financial Officer | Teng Jiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. Annual Report 2022
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2022(Expressed in Renminbi Yuan)
| ? | Note | Share capital | ? | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Surplus reserve | Retained earnings | ? | Total | |||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||
| I. Balance at the beginning of the year | ? | 38,445,746,482 | 14,146,997,427 | 53,598,033,152 | 3,415,768,207 | 89,024,650 | 2,889,590,205 | 11,950,975,927 | ? | 117,704,599,636 | ||||
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||
| 1. Total comprehensive income | ? | - | - | - | - | (55,810,525) | - | 3,481,863,512 | ? | 3,426,052,987 | ||||
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||
| (1) Repurchase of treasury shares | V.39 | - | - | - | 1,048,154,539 | - | - | - | ? | (1,048,154,539) | ||||
| (2) Cancellation of treasury shares | V.36/38/39 | (249,383,061) | - | (641,811,942) | (891,195,003) | - | - | - | ? | - | ||||
| (3) Equity-settled share-based payments | XI | - | - | 699,065,561 | (64,525,832) | - | - | - | ? | 763,591,393 | ||||
| (4) Contribution by holders of other equity instruments | V.37 | - | 1,989,320,755 | - | - | - | - | - | ? | 1,989,320,755 | ||||
| (5) Payment for capital of holders of other equity instruments | V.37/38 | - | (7,957,047,264) | (42,952,736) | - | - | - | - | ? | (8,000,000,000) | ||||
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||
| (1) Appropriation for surplus reserve | V.41 | - | - | - | - | - | 348,186,351 | (348,186,351) | ? | - | ||||
| (2) Accrued interest on holders of other equity instruments | V.37 | - | 530,695,890 | - | - | - | - | (530,695,890) | ? | - | ||||
| (3) Payment for interest on holders of other equity instruments | V.37 | - | (533,600,000) | - | - | - | - | - | ? | (533,600,000) | ||||
| (4) Distributions to shareholders | V.42 | - | - | - | - | - | - | (7,958,923,130) | ? | (7,958,923,130) |
????
????
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. Annual Report 2022
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)
| ? | Note | Share capital | ? | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Surplus reserve | Retained earnings | Total | ||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| (1) Transfer of other comprehensive income to retained earnings | XV.9/10 | - | - | - | - | (32,873,780) | 3,287,378 | 29,586,402 | - | |||||
| 5. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| (1) Other movements in equity of associates | XV.3 | - | - | 141,386,796 | - | - | - | - | 141,386,796 | |||||
| (2) Others | ? | - | - | (60,093,618) | - | - | - | - | (60,093,618) | |||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| III. Balance at the end of the year | ? | 38,196,363,421 | 8,176,366,808 | 53,693,627,213 | 3,508,201,911 | 340,345 | 3,241,063,934 | 6,624,620,470 | 106,424,180,280 |
???
???
These financial statements were approved by the Board of Directors of the Company on 31 March 2023.
| Chen Yanshun Chairman of the Board | Gao Wenbao Chief Executive Officer | Yang Xiaoping Chief Financial Officer | Teng Jiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. Annual Report 2022
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)
| ? | Note | Share capital | ? | Other equity instruments | Capital reserve | Less: Treasury shares | ? | Other comprehensive income | Surplus reserve | Retained earnings | Total | |||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| I. Balance at the beginning of the year | ? | 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 | |||||
| II. Changes in equity during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| 1. Total comprehensive income | ? | - | - | - | - | 53,550,302 | - | 4,396,496,566 | 4,450,046,868 | |||||
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| (1) Contribution by ordinary shareholders | V.36 | 3,650,377,019 | - | 16,219,134,815 | - | - | - | - | 19,869,511,834 | |||||
| (2) Repurchase of treasury shares | V.39 | - | - | - | 2,428,003,419 | - | - | - | (2,428,003,419) | |||||
| (3) Cancellation of treasury shares | V.36/38/39 | (3,029,300) | - | (14,270,384) | (17,299,684) | - | - | - | -? | |||||
| (4) Equity-settled share-based payments | XI | - | - | 640,692,637 | (31,234,036) | - | - | - | 671,926,673 | |||||
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||
| (1) Appropriation for surplus reserve | V.41 | - | - | - | - | - | 439,649,657 | (439,649,657) | - | |||||
| (2) Accrued interest on holders of other equity instruments | V.37 | - | 533,600,000 | - | - | - | - | (533,600,000) | - | |||||
| (3) Payment for interest on holders of other equity instruments | V.37 | - | (533,600,000) | - | - | - | - | - | (533,600,000) | |||||
| (4) Distributions to shareholders | V.42 | - | - | - | - | - | - | (3,476,073,919) | (3,476,073,919) |
????
????
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd. Annual Report 2022
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2021 (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.9/10 | - | ? | - | ? | - | ? | - | ? | (55,238,785) | ? | 5,523,879 | ? | 49,714,906 | ? | - |
| 5. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Other movements in equity of associates | XV.3 | - | ? | - | ? | 53,544,976 | ? | - | ? | - | ? | - | ? | - | ? | 53,544,976 |
| (2) Others | ? | - | ? | - | ? | 2,851,742 | ? | - | ? | - | ? | - | ? | - | ? | 2,851,742 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 38,445,746,482 | ? | 14,146,997,427 | ? | 53,598,033,152 | ? | 3,415,768,207 | ? | 89,024,650 | ? | 2,889,590,205 | ? | 11,950,975,927 | ? | 117,704,599,636 |
??
??
These financial statements were approved by the Board of Directors of the Company on 31 March 2023.
| Chen Yanshun Chairman of the Board | Gao Wenbao Chief Executive Officer | Yang Xiaoping Chief Financial Officer | Teng Jiao The head of the accounting department | (Company stamp) | ||||
| (Signature and stamp) | (Signature and stamp) | (Signature and stamp) | (Signature and stamp) |
The notes on pages 30 to 175 form part of these financial statements.
BOE Technology Group Co., Ltd.Notes to the financial statements(Expressed in Renminbi Yuan unless otherwise indicated)
I. Company status
BOE Technology Group Company Limited (the “Company”) is a company limited by sharesestablished on 9 April 1993 in Beijing, with its head office located at Beijing. The parent ofthe Company and the Company’s ultimate holding company is Beijing Electronics HoldingsCo., Ltd. (“Electronics Holdings”).
The Company and its subsidiaries (referred to as the “Group”) comprise five main businesssegments: display business, Internet of Things (IoT) innovation business, sensor business,MLED business and smart medicine & engineering business. For information about thesubsidiaries of the Company, refer to Note VII.
II. Basis of preparation
The financial statements have been prepared on the going concern basis.
III. Significant accounting policies and accounting estimates
1 Statement of compliance
The financial statements have been prepared in accordance with the requirements ofAccounting Standards for Business Enterprises or referred to as China AccountingStandards (“CAS”) issued by the MOF. These financial statements present truly andcompletely the consolidated financial position and financial position of the Company as at 31December 2022, and the consolidated financial performance and financial performance andthe consolidated cash flows and cash flows of the Company for the year then ended.
These financial statements also comply with the disclosure requirements of “Regulation onthe Preparation of Information Disclosures by Companies Issuing Securities, No. 15: GeneralRequirements for Financial Reports” as revised by the China Securities RegulatoryCommission (“CSRC”) in 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 theultimate realisation of cash or cash equivalents as a normal operating cycle. The operatingcycle of the Company is usually less than 12 months.
4 Functional currency
The Company’s functional currency is Renminbi and these financial statements arepresented in Renminbi. Functional currency is determined by the Company and itssubsidiaries on the basis of the currency in which major income and costs are denominatedand settled. Some of the Company’s subsidiaries have functional currencies that are differentfrom the Company’s functional currency. Their financial statements have been translatedbased on the accounting policy set out in Note III.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 ormore entities (or a group of assets or net assets). Business combination is classified aseither business combinations involving enterprises under common control or businesscombinations not involving enterprises under common control.
For a transaction not involving enterprises under common control, the acquirer determineswhether acquired set of assets constitute a business. The Group may elect to apply thesimplified assessment method, the concentration test, to determine whether an acquired setof assets is not a business. If the concentration test is met and the set of assets isdetermined not to be a business, no further assessment is needed. If the concentration testis not met, the Group shall perform the assessment according to the guidance on thedetermination of a business.
When the set of assets the group acquired does not constitute a business, acquisition costsshould be allocated to each identifiable assets and liabilities at their acquisition date fairvalues. It is not required to apply the accounting of business combination described asbelow.
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business combination inwhich all of the combining entities are ultimately controlled by the same party or parties bothbefore and after the business combination, and that control is not transitory. The assetsacquired and liabilities assumed are measured based on their carrying amounts in theconsolidated financial statements of the ultimate controlling party at the combination date.The difference between the carrying amount of the net assets acquired and the considerationpaid for the combination (or the total par value of shares issued) is adjusted against sharepremium in the capital reserve, with any excess adjusted against retained earnings. Anycosts directly attributable to the combination are recognised in profit or loss when incurred.The combination date is the date on which one combining entity obtains control of othercombining entities.
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a businesscombination in which all of the combining entities are not ultimately controlled by the sameparty or parties both before and after the business combination. Where (1) the aggregate ofthe acquisition-date fair value of assets transferred (including the acquirer’s previously heldequity interest in the acquiree), liabilities incurred or assumed, and equity securities issuedby the acquirer, in exchange for control of the acquiree, exceeds (2) the acquirer’s interest inthe acquisition-date fair value of the acquiree’s identifiable net assets, the difference isrecognised as goodwill (see Note III.17). If (1) is less than (2), the difference is recognised inprofit or loss for the current period. The costs of issuing equity or debt securities as a part ofthe consideration for the acquisition are included in the carrying amounts of these equity ordebt securities upon initial recognition. Other acquisition-related costs are expensed whenincurred. Any difference between the fair value and the carrying amount of the assetstransferred as consideration is recognised in profit or loss. The acquiree’s identifiable asset,liabilities and contingent liabilities, if the recognition criteria are met, are recognised by theGroup at their acquisition-date fair value. The acquisition date is the date on which theacquirer obtains control of the acquiree.
For a business combination involving entities not under common control and achieved instages, the Group remeasures its previously-held equity interest in the acquiree to itsacquisition-date fair value and recognises any resulting difference between the fair value andthe carrying amount as investment income or other comprehensive income for the currentperiod. In addition, any amount recognised in other comprehensive income and otherchanges in the owners’ equity under equity accounting in prior reporting periods relating tothe previously-held equity interest that may be reclassified to profit or loss are transferred toinvestment income at the date of acquisition (see Note III.11(2)(b)); Any previously-heldequity interest that is designated as equity investment at fair value through othercomprehensive income, the other comprehensive income recognised in prior reportingperiods is transferred to retained earnings and surplus reserve at the date of acquisition.
6 Consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the consolidatedfinancial statements comprise the Company and its subsidiaries. Control exists when theinvestor has all of following: power over the investee; exposure, or rights, to variable returnsfrom its involvement with the investee and has the ability to affect those returns through itspower over the investee. When assessing whether the Group has power, only substantiverights (held by the Group and other parties) are considered. The financial position, financialperformance and cash flows of subsidiaries are included in the consolidated financialstatements from the date that control commences until the date that control ceases.
Non-controlling interests are presented separately in the consolidated balance sheet withinshareholders’ equity. Net profit or loss attributable to non-controlling shareholders ispresented separately in the consolidated income statement below the net profit line item.Total comprehensive income attributable to non-controlling shareholders is presentedseparately in the consolidated income statement below the total comprehensive income lineitem.
When the amount of loss for the current period attributable to the non-controllingshareholders of a subsidiary exceeds the non-controlling shareholders’ share of the openingowners’ equity of the subsidiary, the excess is still allocated against the non-controllinginterests.
When the accounting period or accounting policies of a subsidiary are different from those ofthe Company, the Company makes necessary adjustments to the financial statements of thesubsidiary based on the Company’s own accounting period or accounting policies. Intra-group balances and transactions, and any unrealised profit or loss arising from intra-grouptransactions, are eliminated when preparing the consolidated financial statements.Unrealised losses resulting from intra-group transactions are eliminated in the same way asunrealised gains, unless they represent impairment losses that are recognised in thefinancial statements.
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period, through a businesscombination involving entities under common control, the financial statements of thesubsidiary are included in the consolidated financial statements based on the carryingamounts of the assets and liabilities of the subsidiary in the financial statements of theultimate controlling party as if the combination had occurred at the date that the ultimatecontrolling party first obtained control. The opening balances and the comparative figures ofthe consolidated financial statements are also restated.
Where a subsidiary was acquired during the reporting period, through a businesscombination involving entities not under common control, the identifiable assets and liabilitiesof the acquired subsidiaries are included in the scope of consolidation from the date thatcontrol commences, based on the fair value of those identifiable assets and liabilities at theacquisition date.
(3) Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or losses arerecognised as investment income for the current period. The remaining equity interests is re-measured at its fair value at the date when control is lost, any resulting gains or losses arealso recognised as investment income for the current period.
When the Group loses control of a subsidiary in multiple transactions in which it disposes ofits long-term equity investment in the subsidiary in stages, the following are considered todetermine whether the Group should account for the multiple transactions as a bundledtransaction:
- arrangements are entered into at the same time or in contemplation of each other;- arrangements work together to achieve an overall commercial effect;- the occurrence of one arrangement is dependent on the occurrence of at least one otherarrangement;- one arrangement considered on its own is not economically justified, but it is economicallyjustified when considered together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, thetransactions conducted before the loss of control of the subsidiary are accounted for inaccordance with the accounting policy for partial disposal of equity investment in subsidiarieswhere control is retained (see Note III.6(4)).
If each of the multiple transactions forms part of a bundled transaction which eventuallyresults in the loss of control in the subsidiary, these multiple transactions are accounted foras a single transaction. In the consolidated financial statements, the difference between theconsideration received and the corresponding proportion of the subsidiary’s net assets(calculated continuously from the acquisition date) in each transaction prior to the loss ofcontrol shall be recognised in other comprehensive income and transferred to profit or losswhen the parent eventually loses control of the subsidiary.
(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controllingshareholders or disposes of a portion of an interest in a subsidiary without a change incontrol, the difference between the proportion interests of the subsidiary’s net assets beingacquired or disposed and the amount of the consideration paid or received is adjusted to thecapital reserve (share premium) in the consolidated balance sheet, with any excess adjustedto retained earnings.
7 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily withdraw ondemand, and short-term, highly liquid investments that are readily convertible into knownamounts of cash and are subject to an insignificant risk of change in value.
8 Foreign currency transactions and translation of foreign currency financial statements
When the Group receives capital in foreign currencies from investors, the capital is translatedto Renminbi at the spot exchange rate at the date of the receipt. Other foreign currencytransactions are, on initial recognition, translated to Renminbi at the spot exchange rates onthe dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the spotexchange rate at the balance sheet date. The resulting exchange differences are generallyrecognised in profit or loss, unless they arise from the re-translation of the principal andinterest of specific borrowings for the acquisition and construction of qualifying assets (seeNote III.15). Non-monetary items that are measured at historical cost in foreign currenciesare translated to Renminbi using the exchange rate at the transaction date. Non-monetaryitems that are measured at fair value in foreign currencies are translated using the exchangerate at the date the fair value is determined. The resulting exchange differences arerecognised in profit or loss, except for the differences arising from the re-translation of equityinvestments at fair value through other comprehensive income, which are recognised in othercomprehensive income.
In translating the financial statements of a foreign operation, assets and liabilities of foreignoperation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items, excluding retained earnings and the translation differences in othercomprehensive income, are translated to Renminbi at the spot exchange rates at thetransaction dates. Income and expenses of foreign operation are translated to Renminbi atthe rates that approximate the spot exchange rates at the transaction dates. The resultingtranslation differences are recognised in other comprehensive income. The translationdifferences accumulated in shareholders’ equity with respect to a foreign operation aretransferred to profit or loss in the period when the foreign operation is disposed.
9 Financial instruments
Financial instruments include cash at bank and on hand, investments in debt and equitysecurities other than those classified as long-term equity investments (see Note III.11),receivables, payables, loans and borrowings, debentures payable and share capital.
(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Groupbecomes a party to the contractual provisions of a financial instrument.
A financial or financial liability is measured initially at fair value. For financial assets andfinancial liabilities at fair value through profit or loss, any related directly attributabletransaction costs are charged to profit or loss; for other categories of financial assets andfinancial liabilities, any related directly attributable transaction costs are included in theirinitial costs. A trade receivable, without significant financing component or practicalexpedient applied for one year or less contracts, is initially measured at the transaction pricein accordance with Note III.20.
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in whicha financial asset is managed and its contractual cash flow characteristics. On initialrecognition, a financial asset is classified as measured at amortised cost, at fair valuethrough other comprehensive income (“FVOCI”), or at fair value through profit or loss(“FVTPL”).
Financial assets are not reclassified subsequent to their initial recognition unless theGroup changes its business model for managing financial assets in which case allaffected financial assets are reclassified on the first day of the first reporting periodfollowing the change in the business model.
A financial asset is measured at amortised cost if it meets both of the followingconditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collectcontractual cash flows; and- its contractual terms give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions andis not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collectingcontractual cash flows and selling financial assets; and- its contractual terms give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group mayirrevocably elect to present subsequent changes in the investment’s fair value in othercomprehensive income. This election is made on an investment-by-investment basis.The instrument meets the definition of equity from the perspective of the issuer.
All financial assets not classified as measured at amortised cost or FVOCI asdescribed above are measured at FVTPL. On initial recognition, the Group mayirrevocably designate a financial asset that otherwise meets the requirements to bemeasured at amortised cost or at FVOCI as at FVTPL if doing so eliminates orsignificantly reduces an accounting mismatch that would otherwise arise.
The business model refers to how the Group manages its financial assets in order togenerate cash flows. That is, the Group’s business model determines whether cashflows will result from collecting contractual cash flows, selling financial assets or both.The Group determines the business model for managing the financial assets accordingto the facts and based on the specific business objective for managing the financialassets determined by the Group’s key management personnel.
In assessing whether the contractual cash flows are solely payments of principal andinterest, the Group considers the contractual terms of the instrument. For the purposesof this assessment, ‘principal’ is defined as the fair value of the financial asset on initialrecognition. ‘Interest’ is defined as consideration for the time value of money and forthe credit risk associated with the principal amount outstanding during a particularperiod of time and for other basic lending risks and costs, as well as a profit margin.The Group also assesses whether the financial asset contains a contractual term thatcould change the timing or amount of contractual cash flows such that it would notmeet this condition.
(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains andlosses, including any interest or dividend income, are recognised in profit or lossunless the financial assets are part of a hedging relationship.
- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effectiveinterest method. A gain or loss on a financial asset that is measured at amortisedcost and is not part of a hedging relationship shall be recognised in profit or losswhen the financial asset is derecognised, reclassified, through the amortisationprocess or in order to recognise impairment gains or losses.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculatedusing the effective interest method, impairment and foreign exchange gains andlosses are recognised in profit or loss. Other net gains and losses are recognised inother comprehensive income. On derecognition, gains and losses accumulated inother comprehensive income are reclassified to profit or loss.
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised asincome in profit or loss. Other net gains and losses are recognised in othercomprehensive income. On derecognition, gains and losses accumulated in othercomprehensive income are reclassified to retained earnings.
(3) Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (includingderivative financial liability) or it is designated as such on initial recognition.
Financial liabilities at FVTPL are subsequently measured at fair value and net gains andlosses, including any interest expense, are recognised in profit or loss, unless the financialliabilities are part of a hedging relationship.
- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effectiveinterest method.
(4) Offsetting
Financial assets and financial liabilities are generally presented separately in the balancesheet, and are not offset. However, a financial asset and a financial liability are offset and thenet amount is presented in the balance sheet when both of the following conditions aresatisfied:
- The Group currently has a legally enforceable right to set off the recognised amounts；- The Group intends either to settle on a net basis, or to realise the financial asset andsettle the financial liability simultaneously.
(5) Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;- the financial asset has been transferred and the Group transfers substantially all of therisks and rewards of ownership of the financial asset; or；- the financial asset has been transferred, although the Group neither transfers nor retainssubstantially all of the risks and rewards of ownership of the financial asset, it does notretain control over the transferred asset.
Where a transfer of a financial asset in its entirety meets the criteria for derecognition, thedifference between the two amounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date ofderecognition;- the sum of the consideration received from the transfer and, when the transferred financialasset is a debt investment at FVOCI, any cumulative gain or loss that has beenrecognised directly in other comprehensive income for the part derecognised.
The Group derecognises a financial liability (or part of it) only when its contractual obligation(or part of it) is extinguished.
(6) Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;- contract assets;- debt investments at FVOCI; and- lease receivables
Financial assets measured at fair value, including debt investments or equity securities atFVTPL, equity securities designated at FVOCI and derivative financial assets, are not subjectto the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as thepresent value of all cash shortfalls (i.e. the difference between the cash flows due to theentity in accordance with the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period(including extension options) over which the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected lifeof a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possiblewithin the 12 months after the balance sheet date (or a shorter period if the expected life ofthe instrument is less than 12 months).
Loss allowances for trade receivables, lease receivables and contract assets are alwaysmeasured at an amount equal to lifetime ECL. ECLs on these financial assets are estimatedusing a provision matrix based on the Group’s historical credit loss experience, adjusted forfactors that are specific to the debtors and an assessment of both the current and forecastgeneral economic conditions at the balance sheet date.
Except for trade receivables, lease receivables and contract assets, the Group measuresloss allowance at an amount equal to 12-month ECL for the following financial instruments,and at an amount equal to lifetime ECL for all other financial instruments.
- If the financial instrument is determined to have low credit risk at the balance sheet date;- If the credit risk on a financial instrument has not increased significantly since initialrecognition.
Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a lowrisk of default, the borrower has a strong capacity to meet its contractual cash flowobligations in the near term and adverse changes in economic and business conditions in thelonger term may, but will not necessarily, reduce the ability of the borrower to fulfil itscontractual cash flow obligations.
Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly sinceinitial recognition, the Group compares the risk of default occurring on the financialinstrument assessed at the balance sheet date with that assessed at the date of initialrecognition.
When determining whether the credit risk of a financial asset has increased significantlysince initial recognition and when estimating ECL, the Group considers reasonable andsupportable information that is relevant and available without undue cost or effort, includingforward-looking information. In particular, the following information is taken into account:
- failure to make payments of principal or interest on their contractually due dates;- an actual or expected significant deterioration in a financial instrument’s external orinternal credit rating (if available);- an actual or expected significant deterioration in the operating results of the debtor; and- existing or forecast changes in the technological, market, economic or legal environmentthat have a significant adverse effect on the debtor’s ability to meet its obligation to theGroup.
Depending on the nature of the financial instruments, the assessment of a significantincrease in credit risk is performed on either an individual basis or a collective basis. Whenthe assessment is performed on a collective basis, the financial instruments are groupedbased on shared credit risk characteristics, such as past due status and credit risk ratings.
The Group assumes that the credit risk on a financial asset has increased significantly if it ismore than 30 days past due.
Credit-impaired financial assets
At each balance sheet date, the Group assesses whether financial assets carried atamortised cost and debt investments at FVOCI are credit-impaired. A financial asset is‘credit-impaired’ when one or more events that have a detrimental impact on the estimatedfuture cash flows of the financial asset have occurred. Evidence that a financial asset iscredit-impaired includes the following observable data:
- significant financial difficulty of the borrower or issuer;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the borrower’s financial difficulty, theGroup having granted to the borrower a concession that would not otherwise consider;- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or- the disappearance of an active market for that financial asset because of financialdifficulties.
Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financialinstrument’s credit risk since initial recognition. Any change in the ECL amount is recognisedas an impairment gain or loss in profit or loss. The Group recognises an impairment gain orloss for all financial instruments with a corresponding adjustment to their carrying amountthrough a loss allowance account, except for debt investments that are measured at FVOCI,for which the loss allowance is recognised in other comprehensive income.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to theextent that there is no realistic prospect of recovery. A write-off constitutes a derecognitionevent. This is generally the case when the Group determines that the debtor does not haveassets or sources of income that could generate sufficient cash flows to repay the amountssubject to the write-off. However, financial assets that are written off could still be subject toenforcement activities in order to comply with the Group’s procedures for recovery ofamounts due.
Subsequent recoveries of an asset that was previously written off are recognised as areversal of impairment in profit or loss in the period in which the recovery occurs.
(7) Equity instrument
The consideration received from the issuance of equity instruments net of transaction costsis recognised in shareholders’ equity. Consideration and transaction costs paid by theCompany for repurchasing self-issued equity instruments are deducted from shareholders’equity.
When the Company repurchases its own shares, those shares are treated as treasuryshares. All expenditure relating to the repurchase is recorded in the cost of the treasuryshares, with the transaction recording in the share register. Treasury shares are excludedfrom profit distributions and are presented as a deduction under shareholders’ equity in thebalance sheet.
When treasury shares are cancelled, the share capital should be reduced to the extent of thetotal par value of the treasury shares cancelled. Where the cost of the treasury sharescancelled exceeds the total par value, the excess is deducted from capital reserve (sharepremium), surplus reserve and retained earnings sequentially. If the cost of treasury sharescancelled is less than the total par value, the difference is credited to the capital reserve(share premium).
When treasury shares are disposed of, any excess of proceeds above cost is recognised incapital reserve (share premium); otherwise, the shortfall is deducted against capital reserve(share premium), surplus reserve and retained earnings sequentially.
(8) Perpetual bonds
At initial recognition, the Group classifies the perpetual bonds issued or their components asfinancial assets, financial liabilities or equity instruments based on their contractual terms andtheir economic substance after considering the definition of financial assets, financialliabilities and equity instruments.
Perpetual bonds issued that should be classified as equity instruments are recognised inequity based on the actual amount received. Any distribution of dividends or interests duringthe instruments’ duration is treated as profit appropriation. When the perpetual bonds areredeemed according to the contractual terms, the redemption price is charged to equity.
10 Inventories
(1) Classification and cost
Inventories include raw materials, work in progress, finished goods and reusable materials.Reusable materials include low-value consumables, packaging materials and othermaterials, which can be used repeatedly but do not meet the definition of fixed assets.
Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase,costs of conversion and other expenditure incurred in bringing the inventories to their presentlocation and condition. In addition to the purchase cost of raw materials, work in progressand finished goods include direct labour costs and an appropriate allocation of productionoverheads.
(2) 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 toprofit or loss upon receipt. The amortisation charge is included in the cost of the relatedassets 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 realisablevalue.
Net realisable value is the estimated selling price in the ordinary course of business less theestimated costs of completion and the estimated costs necessary to make the sale andrelevant taxes. The net realisable value of materials held for use in the production ismeasured based on the net realisable value of the finished goods in which they will beincorporated. The net realisable value of the inventory held to satisfy sales or servicecontracts is measured based on the contract price, to the extent of the quantities specified insales contracts, and the excess portion of inventories is measured based on general sellingprices.
Any excess of the cost over the net realisable value of each category of inventories isrecognised as a provision for obsolete inventories, and is recognised in profit or loss.
(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 entities under common control is the Company’s share of thecarrying amount of the subsidiary’s equity in the consolidated financial statements ofthe ultimate controlling party at the combination date. The difference between theinitial investment cost and the carrying amount of the consideration given is adjustedto the share premium in the capital reserve, with any excess adjusted to retainedearnings. For a long-term equity investment in a subsidiary acquired through abusiness combination achieved in stages which do not form a bundled transactionand involving entities under common control, the Company determines the initialcost of the investment in accordance with the above policies. The differencebetween this initial cost and the sum of the carrying amount of previously-heldinvestment and the consideration paid for the shares newly acquired is adjusted tocapital premium in the capital reserve, with any excess adjusted to retainedearnings.
- For a long-term equity investment obtained through a business combination notinvolving entities under common control, the initial cost comprises the aggregate ofthe fair value of assets transferred, liabilities incurred or assumed, and equitysecurities issued by the Company, in exchange for control of the acquiree. For along-term equity investment obtained through a business combination not involvingentities under common control and achieved through multiple transactions in stageswhich do not form a bundled transaction, the initial cost comprises the carryingamount of the previously-held equity investment in the acquiree immediately beforethe acquisition date, and the additional investment cost at the acquisition date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combinationis initially recognised at the amount of cash paid if the Group acquires theinvestment by cash, or at the fair value of the equity securities issued if aninvestment is acquired by issuing equity securities.
(2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments insubsidiaries are accounted for using the cost method for subsequent measurementunless the investment is classified as held for sale (see Note III.29). Except for cashdividends or profit distributions declared but not yet distributed that have been includedin the price or consideration paid in obtaining the investments, the Companyrecognises its share of the cash dividends or profit distributions declared by theinvestee as investment income for the current period.
The investments in subsidiaries are stated in the balance sheet at cost lessaccumulated impairment losses.
For the impairment of the investments in subsidiaries, refer to Note III.19.
In the Group’s consolidated financial statements, subsidiaries are accounted for inaccordance with the policies 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 jointcontrol (see Note III.11(3)) and rights to the net assets of the arrangement.
An associate is an entity over which the Group has significant influence (see NoteIII.11(3)).
An investment in a joint venture or an associate is accounted for using the equitymethod for subsequent measurement, unless the investment is classified as held forsale (see Note III.29).
The accounting treatments under the equity method adopted by the Group are asfollows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interestin the fair value of the investee’s identifiable net assets at the date of acquisition, theinvestment is initially recognised at cost. Where the initial investment cost is lessthan the Group’s interest in the fair value of the investee’s identifiable net assets atthe date of acquisition, the investment is initially recognised at the investor’s shareof the fair value of the investee’s identifiable net assets, and the difference isrecognised in profit or loss.
- After the acquisition of the investment, the Group recognises its share of theinvestee’s profit or loss and other comprehensive income as investment income orlosses and other comprehensive income respectively, and adjusts the carryingamount of the investment accordingly. Once the investee declares any cashdividends or profit distributions, the carrying amount of the investment is reduced bythe amount attributable to the Group. Changes in the Group’s share of theinvestee’s owners’ equity, other than those arising from the investee’s net profit orloss, other comprehensive income or profit distribution (referred to as “otherchanges in owners’ equity”), is recognised directly in the Group’s equity, and thecarrying amount of the investment is adjusted accordingly.
- In calculating its share of the investee’s net profits or losses, other comprehensive
income and other changes in owners’ equity, the Group recognises investmentincome and other comprehensive income after making appropriate adjustments toalign the accounting policies or accounting periods with those of the Group based onthe fair value of the investee’s identifiable net assets at the date of acquisition.Unrealised profits and losses resulting from transactions between the Group and itsassociates or joint ventures are eliminated to the extent of the Group’s interest in theassociates or joint ventures. Unrealised losses resulting from transactions betweenthe Group and its associates or joint ventures are eliminated in the same way asunrealised gains but only to the extent that there is no impairment.
- The Group discontinues recognising its share of further losses of the investee afterthe carrying amount of the long-term equity investment and any long-term interestthat in substance forms part of the Group’s net investment in the joint venture orassociate is reduced to zero, except to the extent that the Group has an obligation toassume additional losses. If the joint venture or associate subsequently reports netprofits, the Group resumes recognising its share of those profits only after its shareof the profits has fully covered the share of losses not recognised.
For the impairment of the investments in joint ventures and associates, refer to NoteIII.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 existsonly when decisions about the relevant activities (activities with significant impact on thereturns of the arrangement) require the unanimous consent of the parties sharing control.
The following factors are usually considered when assessing whether the Group canexercise joint control over an investee:
- Whether no single participant party is in a position to control the investee’s relatedactivities unilaterally;- Whether strategic decisions relating to the investee’s related activities require theunanimous consent of all participant parties that sharing of control.
Significant influence is the power to participate in the financial and operating policy decisionsof an investee but does not have control or joint control over those policies.
12 Investment properties
Investment properties are properties held either to earn rental income or for capitalappreciation or for both. Investment properties are accounted for using the cost model andstated in the balance sheet at cost less accumulated depreciation, amortisation andimpairment losses. The cost of investment property, less its estimated residual value andaccumulated impairment losses, is depreciated or amortised using the straight-line methodover its estimated useful life, unless the investment property is classified as held for sale (seeNote III.29). For the impairment of the investment properties, refer to Note III.19.
The estimated useful lives, residual value rates and depreciation rates of each class ofinvestment properties are as follows:
| ? | Estimated useful life (years) | ? | Residual value rate (%) | ? | Depreciation rate (%) |
| ? | ? | ? | ? | ? | ? |
| Land use rights | 32 - 50 years | ? | 0.0% | ? | 2.0% - 3.1% |
| Buildings | 20 - 40 years | ? | 0% - 10.0% | ? | 2.3% - 5.0% |
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13 Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in the production ofgoods, supply of services, for rental or for administrative purposes with useful lives over oneyear.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and anydirectly attributable expenditure for bringing the asset to working condition for its intendeduse. The cost of self-constructed assets is measured in accordance with the policy set out inNote III.14.
Where the parts of an item of fixed assets have different useful lives or provide benefits tothe Group in a different pattern, thus necessitating use of different depreciation rates ormethods, each part is recognised as a separate fixed asset.
Any subsequent costs including the cost of replacing part of an item of fixed assets arerecognised as assets when it is probable that the economic benefits associated with thecosts will flow to the Group, and the carrying amount of the replaced part is derecognised.The costs of the day-to-day maintenance of fixed assets are recognised in profit or loss asincurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation andimpairment losses.
(2) Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated impairmentlosses, is depreciated using the straight-line method over its estimated useful life, unless thefixed asset is classified as held for sale (see Note III.29).
The estimated useful lives, residual value rates and depreciation rates of each class of fixedassets are as follows:
| Class | Estimated useful life (years) | ? | Residual value rate (%) | ? | Depreciation rate (%) |
| ? | ? | ? | ? | ? | ? |
| Buildings | 10 - 50 years | ? | 3% - 10% | ? | 1.8% - 9.7% |
| Equipment | 2 - 25 years | ? | 0 - 10% | ? | 3.6% - 50% |
| Others | 2 - 10 years | ? | 0 - 10% | ? | 9.0% - 50% |
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Useful lives, residual values and depreciation methods are reviewed at least at each year-end.
(3) For the impairment of the fixed assets, refer to Note III.19.
(4) Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or- when no future economic benefit is expected to be generated from its use or disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset aredetermined as the difference between the net disposal proceeds and the carrying amount ofthe item, and are recognised in profit or loss on the date of retirement or disposal.
14 Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour, capitalisedborrowing costs (see Note III.15), and any other costs directly attributable to bringing theasset to working condition for its intended use.
A self-constructed asset is classified as construction in progress and transferred to fixedasset when it is ready for its intended use. No depreciation is provided against constructionin progress.
Construction in progress is stated in the balance sheet at cost less accumulated impairmentlosses (see Note III.19).
When an enterprise sells products or by-products produced before a fixed asset is availablefor its intended use, the proceeds and related cost are accounted for in accordance with CAS14 – Revenue and CAS 1 – Inventories respectively, and recognised in profit or loss for thecurrent period.
15 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition and construction of aqualifying asset are capitalised as part of the cost of the asset. Other borrowing costs arerecognised as financial expenses when incurred.
During the capitalisation period, the amount of interest (including amortisation of anydiscount or premium on borrowing) to be capitalised in each accounting period is determinedas follows:
- Where funds are borrowed specifically for the acquisition and construction of a qualifyingasset, the amount of interest to be capitalised is the interest expense calculated usingeffective interest rates during the period less any interest income earned from depositingthe borrowed funds or any investment income on the temporary investment of those fundsbefore being used on the asset.
- To the extent that the Group borrows funds generally and uses them for the acquisitionand construction of a qualifying asset, the amount of borrowing costs eligible forcapitalisation is determined by applying a capitalisation rate to the weighted average ofthe excess amounts of cumulative expenditure on the asset over the above amounts ofspecific borrowings. The capitalisation rate is the weighted average of the interest ratesapplicable to the general-purpose borrowings. The capitalisation rate is the weightedaverage of the interest rates applicable to the general-purpose borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated futurecash flow through the expected life of the borrowing or, when appropriate, a shorter period tothe initially recognised amount of the borrowings.
During the capitalisation period, exchange differences related to the principal and interest ona specific-purpose borrowing denominated in foreign currency are capitalised as part of thecost of the qualifying asset. The exchange differences related to the principal and interest onforeign currency borrowings other than a specific-purpose borrowing are recognised as afinancial expense when incurred.
The capitalisation period is the period from the date of commencement of capitalisation ofborrowing costs to the date of cessation of capitalisation, excluding any period over whichcapitalisation is suspended. Capitalisation of borrowing costs commences when expenditurefor the asset is being incurred, borrowing costs are being incurred and activities of acquisitionand construction that are necessary to prepare the asset for its intended use are in progress,and ceases when the assets become ready for their intended use. When the parts of thequalifying assets acquired or constructed that are eligible for capitalisation are completedseparately, and each part is available for use in other parts of the construction process orcan be sold externally, and for the purpose of making the parts of the assets ready for use ornecessary for the sales status, the acquisition or construction activities have beensubstantially completed, the Group ceases the capitalisation of the borrowing costs related tothe parts of the assets. Capitalisation of borrowing costs is suspended when the acquisitionand construction activities are interrupted abnormally for a period of more than three months.
16 Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortisation(where the estimated useful life is finite) and impairment losses (see Note III.19). For anintangible asset with finite useful life, its cost less estimated residual value and accumulatedimpairment losses is amortised using the straight-line method over its estimated useful life,unless the intangible asset is classified as held for sale (see Note III.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 |
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Useful lives and amortisation methods of intangible asset with finite useful life are reviewedat least at each year-end. An intangible asset is regarded as having an indefinite useful lifeand is not amortised when there is no foreseeable limit to the period over which the asset isexpected to generate economic benefits for the Group. At the balance sheet date, the Groupdoes not have any intangible assets with indefinite useful lives.
Expenditure on an internal research and development project is classified into expenditureincurred during the research phase and expenditure incurred during the development phase.
Expenditure during the research phase is expensed when incurred. Expenditure during thedevelopment phase is capitalised if development costs can be measured reliably, the productor process is technically and commercially feasible, and the Group intends to and hassufficient resources to complete the development. Capitalised development costs are statedin the balance sheet at cost less impairment losses (see Note III.19). Other developmentexpenditure is recognised as an expense in the period in which it is incurred.
When an enterprise sells products or by-products produced in the course of research anddevelopment, the proceeds and related cost are accounted for in accordance with CAS 14 –Revenue and CAS 1 – Inventories respectively, and recognised in profit or loss for thecurrent period.
17 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’sinterest in the fair value of the identifiable net assets of the acquiree under a businesscombination not involving entities under common control.
Goodwill is not amortised and is stated in the balance sheet at cost less accumulatedimpairment losses (see Note III.19). On disposal of an asset group or a set of asset groups,any attributable goodwill is written off and included in the calculation of the profit or loss ondisposal.
18 Long-term deferred expenses
Long-term deferred expenses are amortised using a straight-line method within the benefitperiod. The respective amortisation periods for such expenses are as follows:
| Item | Amortisation period (years) |
| ? | ? |
| Payment for public facilities construction and use | 10 - 15 years |
| Leasehold improvements | 2 - 10 years |
| Others | 2 - 10 years |
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19 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date basedon internal and external sources of information to determine whether there is any indicationof impairment:
- fixed assets- construction in progress- right-of-use assets- intangible assets- investment properties measured using a cost model- long-term equity investments- goodwill- long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In addition, theGroup estimates the recoverable amounts of goodwill at each year-end, irrespective ofwhether there is any indication of impairment. Goodwill is allocated to each asset group orset of asset groups, which is expected to benefit from the synergies of the combination forthe purpose of impairment testing.
The recoverable amount of an asset (or asset group, set of asset groups) is the higher of itsfair value (see Note III.20) less costs to sell and its present value of expected future cashflows.
An asset group is composed of assets directly related to cash generation and is the smallestidentifiable group of assets that generates cash inflows that are largely independent of thecash inflows from other assets or asset groups.
The present value of expected future cash flows of an asset is determined by discounting thefuture cash flows, estimated to be derived from continuing use of the asset and from itsultimate disposal, to their present value using an appropriate pre-tax discount rate.
An impairment loss is recognised in profit or loss when the recoverable amount of an asset isless than its carrying amount. A provision for impairment of the asset is recognisedaccordingly. Impairment losses related to an asset group or a set of asset groups areallocated first to reduce the carrying amount of any goodwill allocated to the asset group orset of asset groups, and then to reduce the carrying amount of the other assets in the assetgroup or set of asset groups on a pro rata basis. However, such allocation would not reducethe carrying amount of an asset below the highest of its fair value less costs to sell (ifmeasurable), its present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
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 inan orderly transaction between market participants at the measurement date.
When measuring fair value, the Group takes into account the characteristics of the particularasset or liability (including the condition and location of the asset and restrictions, if any, onthe sale or use of the asset) that market participants would consider when pricing the assetor liability at the measurement date, and uses valuation techniques that are appropriate inthe circumstances and for which sufficient data and other information are available tomeasure fair value. Valuation techniques mainly include the market approach, the incomeapproach and the cost approach.
21 Provisions
A provision is recognised for an obligation related to a contingency if the Group has apresent obligation that can be estimated reliably, and it is probable that an outflow ofeconomic benefits will be required to settle the obligation.
A provision is initially measured at the best estimate of the expenditure required to settle therelated present obligation. Where the effect of the time value of money is material, provisionsare determined by discounting the expected future cash flows. Factors pertaining to acontingency such as the risks, uncertainties and time value of money are taken into accountas a whole in reaching the best estimate. Where there is a continuous range of possibleoutcomes for the expenditure required, and each possible outcome in that range is as likelyas any other, the best estimate is the mid-point of that range. In other cases, the bestestimate is determined according to the following circumstances:
- Where the contingency involves a single item, the best estimate is the most likelyoutcome.- Where the contingency involves a large population of items, the best estimate isdetermined by weighting all possible outcomes by their associated probabilities.
The Group reviews the carrying amount of a provision at the balance sheet date and adjuststhe carrying amount to the current best estimate.
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 equityinstruments and recognises the costs or expenses as the services are received, with acorresponding increase in capital reserve.
23 Revenue recognition
Revenue is the gross inflow of economic benefits arising in the course of the Group’sordinary activities when the inflows result in increase in shareholders’ equity, other thanincrease relating to contributions from shareholders.
Revenue is recognised when the Group satisfies the performance obligation in the contractby transferring the control over relevant goods or services to the customers.
Where a contract has two or more performance obligations, the Group determines the stand-alone selling price at contract inception of the distinct good or service underlying eachperformance obligation in the contract and allocates the transaction price in proportion tothose stand-alone selling prices. The Group recognises as revenue the amount of thetransaction price that is allocated to each performance obligation. The stand-alone sellingprice is the price at which the Group would sell a promised good or service separately to acustomer. If a stand-alone selling price is not directly observable, the Group considers allinformation that is reasonably available to the entity, maximises the use of observable inputsto estimate the stand-alone selling price.
For the contract which the Group grants a customer the option to acquire additional goods orservices (such as, loyalty points, discount coupons for future purchase, etc.,), the Groupassesses whether the option provides a material right to the customer. If the option providesa material right, the Group recognises the option as a performance obligation, andrecognises revenue when those future goods or services are transferred or when the optionexpires. If the stand-alone selling price for a customer’s option to acquire additional goods orservices is not directly observable, the Group estimates it, taking into account all relevantinformation, including the difference in the discount that the customer would receive whenexercising the option or without exercising the option, and the likelihood that the option willbe exercised.
For the contract with a warranty, the Group analyses the nature of the warranty provided, ifthe warranty provides the customer with a distinct service in addition to the assurance thatthe product complies with agreed-upon specifications, the Group recognises for the promisedwarranty as a performance obligation. Otherwise, the Group accounts for the warranty inaccordance with the requirements of CAS No.13 – Contingencies.
The transaction price is the amount of consideration to which the Group expects to beentitled in exchange for transferring promised goods or services to a customer, excludingamounts collected on behalf of third parties. The Group recognises the transaction price onlyto the extent that it is highly probable that a significant reversal in the amount of cumulativerevenue recognised will not occur when the uncertainty associated with the variableconsideration is subsequently resolved. To determine the transaction price for contracts inwhich a customer promises consideration in a form other than cash, the Group measures thenon-cash consideration at fair value. If the Group cannot reasonably estimate the fair valueof the non-cash consideration, the Group measures the consideration indirectly by referenceto the stand-alone selling price of the goods or services promised to the customer inexchange for the consideration. Where the contract contains a significant financingcomponent, the Group recognises the transaction price at an amount that reflects the pricethat a customer would have paid for the promised goods or services if the customer had paidcash for those goods or services when (or as) they transfer to the customer. The differencebetween the amount of promised consideration and the cash selling price is amortised usingan effective interest method over the contract term. The Group does not adjust theconsideration for any effects of a significant financing component if it expects, at contractinception, that the period between when the Group transfers a promised good or service to acustomer and when the customer pays for that good or service will be one year or less.
The Group satisfies a performance obligation over time if one of the following criteria is met;or otherwise, a performance obligation is satisfied at a point in time:
- the customer simultaneously receives and consumes the benefits provided by the Group’sperformance as the Group performs;- the customer can control the asset created or enhanced during the Group’s performance;or- the Group’s performance does not create an asset with an alternative use to it and the
Group has an enforceable right to payment for performance completed to date.
For performance obligation satisfied over time, the Group recognises revenue over time bymeasuring the progress towards complete satisfaction of that performance obligation. Whenthe outcome of that performance obligation cannot be measured reasonably, but the Groupexpects to recover the costs incurred in satisfying the performance obligation, the Grouprecognises revenue only to the extent of the costs incurred until such time that it canreasonably measure the outcome of the performance obligation.
For performance obligation satisfied at a point in time, the Group recognises revenue at thepoint in time at which the customer obtains control of relevant goods or services. Todetermine whether a customer has obtained control of goods or services, the Groupconsiders the following indicators:
- the Group has a present right to payment for the goods or services;- the Group has transferred physical possession of the goods to the customer;- the Group has transferred the legal title of the goods or the significant risks and rewards ofownership of the goods to the customer; and- the customer has accepted the goods or services.
The Group determines whether it is a principal or an agent, depending on whether it obtainscontrol of the specified good or service before that good or service is transferred to acustomer. The Group is a principal if it controls the specified good or service before that goodor service is transferred to a customer, and recognises revenue in the gross amount ofconsideration to which it has received (or receivable). Otherwise, the Group is an agent, andrecognises revenue in the amount of any fee or commission to which it expects to be entitled.The fee or commission is the net amount of consideration that the Group retains after payingthe other party the consideration, or is the established amount or proportion.
For the sale of a product with a right of return, the Group recognises revenue when theGroup obtains control of that product, in the amount of consideration to which the Groupexpects to be entitled in exchange for the product transferred (i.e. excluding the amount ofwhich expected to be returned), and recognises a refund liability for the products expected tobe returned. Meanwhile, an asset is recognised in the amount of carrying amount of theproduct expected to be returned less any expected costs to recover those products (includingpotential decreases in the value of returned products), and carry forward to cost in theamount of carrying amount of the transferred products less the above costs. At the end ofeach reporting period, the Group updates its assessment of future sales return. If there is anychange, it is accounted for as a change in accounting estimate.
The Group determines whether the licence transfers to a customer either at a point in time orover time. If all of the following criteria are met, revenue is recognised for performanceobligations satisfied over time. Otherwise, revenue is recognised for performance obligationssatisfied at a point in time.
- the contract requires, or the customer reasonably expects, that the Group will undertake
activities 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 those
activities occur.
The Group recognises revenue for a sales-based or usage-based royalty promised inexchange for a licence of intellectual property only when (or as) the later of the followingevents occurs:
- the subsequent sale or usage occurs; and- the performance obligation has been satisfied (or partially satisfied)
For a change in the scope or price of a contract that is approved by the parties to thecontract, the Group accounts for the contract modification according to the followingsituations:
- The addition of promised goods or services are distinct and the price of the contractincreases by an amount of consideration reflects stand-alone selling prices of theadditional promised goods or services, the Group shall account for a contract modificationas a separate contract.
- If the above criteria are not met, and the remaining goods or services are distinct from thegoods or services transferred on the date of the contract modification, the Group accountsfor the contract modification as if it were a termination of the existing contract and thecreation of a new contract.
- If the above criteria are not met, and the remaining goods or services are not distinct fromthe goods or services transferred on the date of the contract modification, the Groupaccounts for the contract modification as if it were a part of the existing contract. Theeffect that the contract modification has on the revenue is recognised as an adjustment torevenue in the reporting period.
A contract asset is the Group’s right to consideration in exchange for goods or services that ithas transferred to a customer when that right is conditional on something other than thepassage of time. The Group recognises loss allowances for expected credit loss on contractassets (see Note III.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 usuallycontain various trading terms. Depending on the trading terms, customers obtaincontrol of the goods when the goods are delivered and received, or when they arereceived by the carrier. Revenue of sale of goods is recognised at that point in time.
For the transfer of goods with a right of return, revenue is recognised to the extent thatit is highly probable that a significant reversal in the amount of cumulative revenuerecognised will not occur. Therefore, the amount of revenue recognised is adjusted forthe amount expected to be returned, which are estimated based on the historical data.The Group recognises a refund liability based on the amount expected to be returned.An asset is initially measured by reference to the former carrying amount of the productexpected to be returned less any expected costs to recover those products (includingpotential decreases in the value to the Group of returned products). At each balancesheet date, the Group updates the measurement of the refund liability for changes inexpectations about the amount of funds. The above asset and liability are adjustedaccordingly.
(2) Rendering of services
The Group recognises the revenue from rendering of services within a certain period oftime according to the progress of the performance as the customer simultaneouslyreceives and consumes the benefits provided by the Group’s performance as theGroup performs. Otherwise, for performance obligation satisfied at a point in time, theGroup recognises revenue at the point in time at which the customer obtains control ofrelevant services.
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 beenobtained. The Group recognises as an asset the incremental costs of obtaining a contractwith a customer if it expects to recover those costs. Other costs of obtaining a contract areexpensed when incurred.
If the costs to fulfil a contract with a customer are not within the scope of inventories or otheraccounting standards, the Group recognises an asset from the costs incurred to fulfil acontract only if those costs meet all of the following criteria:
- the costs relate directly to an existing contract or to a specifically identifiable anticipatedcontract, including direct labour, direct materials, allocations of overheads (or similarcosts), costs that are explicitly chargeable to the customer and other costs that areincurred only because the Group entered into the contract- the costs generate or enhance resources of the Group that will be used in satisfying (or incontinuing to satisfy) performance obligations in the future; and- the costs are expected to be recovered.
Assets recognised for the incremental costs of obtaining a contract and assets recognised forthe costs to fulfil a contract (the “assets related to contract costs”) are amortised on asystematic basis that is consistent with the transfer to the customer of the goods or servicesto which the assets relate and recognised in profit or loss for the current period.
The Group recognises an impairment loss in profit or loss to the extent that the carryingamount of an asset related to contract costs exceeds:
- remaining amount of consideration that the Group expects to receive in exchange for thegoods or services to which the asset relates; less- the costs that relate directly to providing those goods or services that have not yet beenrecognised as expenses.
25 Employee benefits
(1) Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medicalinsurance, work injury insurance, maternity insurance and housing fund, measured at theamount incurred or accrued at the applicable benchmarks and rates, are recognised as aliability as the employee provides services, with a corresponding charge to profit or loss orincluded in the cost of assets where appropriate.
(2) Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China, the Groupparticipated in a defined contribution basic pension insurance plan and unemploymentinsurance plan in the social insurance system established and managed by governmentorganisations, and annuity plan established by the Group in compliance with the nationalpolicy of the corporation annuity. The Group makes contributions to basic pension andunemployment insurance plans based on the applicable benchmarks and rates stipulated bythe government. Annuity is accrued based on the gross salaries of the employees. Basicpension insurance contributions payable are recognised as a liability as the employeeprovides services, with a corresponding charge to profit or loss or included in the cost ofassets where appropriate.
(3) Post-employment benefits – defined benefit plans
During the reporting period, the Group did not have defined benefit plans.
(4) Termination benefits
When the Group terminates the employment with employees before the employmentcontracts expire, or provides compensation under an offer to encourage employees to acceptvoluntary redundancy, a provision is recognised with a corresponding expense in profit orloss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because of
an employee termination plan or a curtailment proposal;- When the Group has a formal detailed restructuring plan involving the payment oftermination benefits and has raised a valid expectation in those affected that it will carryout the restructuring by starting to implement that plan or announcing its main features tothose affected by it.
26 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets fromthe government to the Group except for capital contributions from the government in thecapacity as an investor in the Group.
A government grant is recognised when there is reasonable assurance that the grant will bereceived and that the Group will comply with the conditions attaching to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at theamount received or receivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured at fair value.
Government grants related to assets are grants whose primary condition is that the Groupqualifying for them should purchase, construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets.
Those related to daily activities of the Company are included in other income or used to writeoff related cost based on the nature of economic businesses, or included in non-operatingincome and expense in respect of those not related to daily activities of the Company.
With respect to the government grants related to assets, if the Group first obtainsgovernment grants related to assets and then recognizes the long-term assets purchasedand constructed, deferred income is included in profit and loss based on a reasonable andsystematic approach by stages when related assets are initially depreciated or amortized; orthe deferred income is written off against the carrying amount of the asset when the assetbecomes ready for its intended status or intended use. If the Group obtains governmentgrants related to the assets after relevant long-term assets are put into use, deferred incomeis included in profit and loss based on a reasonable and systematic approach by stageswithin the remaining useful life of relevant assets, or the deferred income is written offagainst the carrying amount of relevant asset when the grants are obtained; the assets shallbe depreciated or amortized based on the carrying amount after being offset and theremaining useful life of relevant assets.
A grant that compensates the Group for expenses or losses to be incurred in the future isrecognised as deferred income, and included in current income or offset against relatedexpenses in the periods in which the expenses or losses are recognised. Or included incurrent income or offset against the related expenses directly.
In respect of the policy-based preferential loan interest subsidy obtained by the Group, if theinterest subsidy is appropriated to the lending bank which shall provide loans to the Group atthe policy-based preferential interest rate, the actual loan amount is used as the entry valueand relevant borrowing costs are calculated on the basis of the loan principal and thepreferential interest rate. If the interest subsidy is directly appropriated to the Group, relevantborrowing costs shall be offset by corresponding interest subsidy. If borrowing costs arecapitalized as part of the cost of the asset (see Note III. 15), the interest subsidy shall beused to offset relevant asset costs.
27 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that theyrelate to a business combination or items recognised directly in equity (including othercomprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on taxableincome for the year, plus any adjustment to tax payable in respect of previous years.
At the balance sheet date, current tax assets and liabilities are offset only if the Group has alegally enforceable right to set them off and also intends either to settle on a net basis or torealise the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporarydifferences respectively, being the differences between the carrying amounts of assets andliabilities for financial reporting purposes and their tax bases, which include the deductiblelosses and tax credits carried forward to subsequent periods. Deferred tax assets arerecognised to the extent that it is probable that future taxable profits will be available againstwhich deductible temporary differences can be utilised.
Deferred tax is not recognised for the temporary differences arising from the initialrecognition of assets or liabilities in a transaction that is not a business combination and thataffects neither accounting profit nor taxable profit (or deductible loss). Deferred tax is notrecognised for taxable temporary differences arising from the initial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences thatwould follow from the expected manner of recovery or settlement of the carrying amounts ofthe assets and liabilities, using tax rates enacted at the balance sheet date that are expectedto be applied in the period when the asset is recovered or the liability is settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and isreduced to the extent that it is no longer probable that the related tax benefits will be utilised.Such reduction is reversed to the extent that it becomes probable that sufficient taxableprofits will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all ofthe following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and currenttax assets;
- they relate to income taxes levied by the same tax authority on either:
- the same taxable entity; or- different taxable entities which intend either to settle the current tax liabilities andcurrent tax assets on a net basis, or to realise the assets and settle the liabilitiessimultaneously, in each future period in which significant amounts of deferred taxliabilities or deferred tax assets are expected to be settled or recovered.
28 Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. Acontract is, or contains, a lease if the contract conveys the right to control the use of anidentified asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, theGroup assesses whether:
- the contract involves the use of an identified asset. An identified asset may be specifiedexplicitly or implicitly specified in a contract and should be physically distinct, or capacityportion or other portion of an asset that is not physically distinct but it representssubstantially all of the capacity of the asset and thereby provides the customer with theright to obtain substantially all of the economic benefits from the use of the asset. If thesupplier has a substantive substitution right throughout the period of use, then the asset isnot identified;- the lessee has the right to obtain substantially all of the economic benefits from use of theasset throughout the period of use;- the lessee has the right to direct the use of the asset.
For a contract that contains more separate lease components, the lessee and the lessorseparate lease components and account for each lease component as a lease separately.For a contract that contains lease and non-lease components, the lessee and the lessorseparate lease components from non-lease components. For a contract that contains leaseand non-lease components, the lessee allocates the consideration in the contract to eachlease component on the basis of the relative stand-alone price of the lease component andthe aggregate stand-alone price of the non-lease components. The lessor allocates theconsideration in the contract in accordance with the accounting policy in Note III.23.
(1) As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencementdate. The right-of-use asset is initially measured at cost, which comprises the initial amountof the lease liability, any lease payments made at or before the commencement date (lessany lease incentives received), any initial direct costs incurred and an estimate of costs todismantle and remove the underlying asset or to restore the site on which it is located orrestore the underlying asset to the condition required by the terms and conditions of thelease.
The right-of-use asset is depreciated using the straight-line method. If the lessee isreasonably certain to exercise a purchase option by the end of the lease term, the right-of-use asset is depreciated over the remaining useful lives of the underlying asset. Otherwise,the right-of-use asset is depreciated from the commencement date to the earlier of the end ofthe useful life of the right-of-use asset or the end of the lease term. Impairment losses ofright-of-use assets are accounted for in accordance with the accounting policy described inNote III.19.
The lease liability is initially measured at the present value of the lease payments that are notpaid at the commencement date, discounted using the interest rate implicit in the lease or, ifthat rate cannot be readily determined, the Group’s incremental borrowing rate.
A constant periodic rate is used to calculate the interest on the lease liability in each periodduring the lease term with a corresponding charge to profit or loss or included in the cost ofassets where appropriate. Variable lease payments not included in the measurement of thelease liability is charged to profit or loss or included in the cost of assets where appropriateas incurred.
Under the following circumstances after the commencement date, the Group remeasureslease liabilities based on the present value of revised lease payments:
- there is a change in the amounts expected to be payable under a residual value
guarantee;- there is a change in future lease payments resulting from a change in an index or a rateused to determine those payments;- there is a change in the assessment of whether the Group will exercise a purchase,
extension or termination option, or there is a change in the exercise of the extension or
termination option.
When the lease liability is remeasured, a corresponding adjustment is made to the carryingamount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of theright-of-use asset has been reduced to zero.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-termleases that have a lease term of 12 months or less and leases of low-value assets. TheGroup recognises the lease payments associated with these leases in profit or loss or as thecost of the assets where appropriate using the straight-line method or other systematic basisover the lease term.
(2) As a lessor
The Group determines at lease inception whether each lease is a finance lease or anoperating lease. A lease is classified as a finance lease if it transfers substantially all therisks and rewards incidental to ownership of an underlying asset irrespective of whether thelegal title to the asset is eventually transferred. An operating lease is a lease other than afinance lease.
When the Group is a sub-lessor, it assesses the lease classification of a sub-lease withreference to the right-of-use asset arising from the head lease, not with reference to theunderlying asset. If a head lease is a short-term lease to which the Group applies practicalexpedient described above, then it classifies the sub-lease as an operating lease.
Under a finance lease, at the commencement date, the Group recognises the finance leasereceivable and derecognises the finance lease asset. The finance lease receivable is initiallymeasured at an amount equal to the net investment in the lease. The net investment in thelease is measured at the aggregate of the unguaranteed residual value and the presentvalue of the lease receivable that are not received at the commencement date, discountedusing the interest rate implicit in the lease.
The Group calculates and recognises interest income for each period of the lease termbased on a fixed periodic interest rate. The derecognition and impairment of the financelease receivable are recognised in accordance with the accounting policy in Note III.9.Variable lease payments not included in the measurement of net investment in the lease arerecognised as income as they are earned.
Lease receipts from operating leases is recognised as income using the straight-line methodor other systematic basis over the lease term. The initial direct costs incurred in respect ofthe operating lease are initially capitalised and subsequently amortised in profit or loss overthe lease term on the same basis as the lease income. Variable lease payments not includedin lease receipts are recognised as income as they are earned.
29 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when thecarrying amount of a non-current asset or disposal group will be recovered through a saletransaction rather than through continuing use,.
A disposal group refers to a group of assets to be disposed of, by sale or otherwise, togetheras a whole in a single transaction and liabilities directly associated with those assets that willbe transferred in the transaction.
A non-current asset or disposal group is classified as held for sale when all the followingcriteria are met:
- According to the customary practices of selling such asset or disposal group in similartransactions, the non-current asset or disposal group must be available for immediate salein their present condition subject to terms that are usual and customary for sales of suchassets or disposal groups;- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and hasobtained a firm purchase commitment. The sale is to be completed within one year.
Non-current assets or disposal groups held for sale are stated at the lower of carryingamount and fair value (see Note III.20) less costs to sell (except financial assets (see noteIII.9), deferred tax assets (see note III.27). Any excess of the carrying amount over the fairvalue (see Note III.20) less costs to sell is recognised as an impairment loss in profit or loss.
30 Hedge accounting
Hedge accounting is a method which recognises in profit or loss (or other comprehensiveincome) the gain or loss on the hedging instrument and the hedged item in the sameaccounting 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 flowsand that are designated as being hedged and can be reliably measured. The Group’shedged items include a firm commitment that is settled with a fixed amount of foreigncurrency and that exposes the Group to foreign currency risk.
A hedging instrument is a designated financial instrument whose changes in fair value orcash flows are expected to offset changes in the fair value or cash flows of the hedged item.For a hedge of foreign currency risk, the foreign currency risk component of a non-derivativefinancial 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 entityhas elected to present changes in the fair value in other comprehensive income.
The Group assesses at the inception of a hedging relationship, and on an ongoing basis,whether the hedging relationship meets the hedge effectiveness requirements. A hedgingrelationship is regarded as having met the hedge effectiveness requirements if all of thefollowing conditions are satisfied:
- There is an economic relationship between the hedged item and the hedging instrument.- The effect of credit risk does not dominate the value changes that result from the
economic relationship.- The hedge ratio of the hedging relationship is the same as that resulting from the quantity
of the hedged item that the entity actually hedges and the quantity of the hedging
instrument that the entity actually uses to hedge that quantity of the hedged item.
When a hedging relationship no longer meets the hedge effectiveness requirements due tothe hedge ratio, but the risk management objective of the designated hedging relationshipremains unchanged, the Group rebalances the hedging relationship. Rebalancing refers tothe 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 hedgeratio that complies with the hedge 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 credit risk 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 thegain or loss on a hedging instrument that is determined to be an effective hedge isrecognised in other comprehensive income as a cash flow hedge reserve. The amount of thecash flow hedge reserve is adjusted to the lower of the following (in absolute amounts):
- the cumulative gain or loss on the hedging instrument from inception of the hedge;- the cumulative change in present value of the expected future cash flows on the hedged
item from inception of the hedge.
The change in the amount of the cash flow hedge reserve is recognised in othercomprehensive income in each period.
The portion of the gain or loss on the hedging instrument that is determined to beineffectiveness is recognised in profit or loss.
If a hedged forecast transaction subsequently results in the recognition of a non-financialasset or non-financial liability, or a hedged forecast transaction for a non-financial asset ornon-financial liability becomes a firm commitment for which fair value hedge accounting isapplied, the Group removes that amount from the cash flow hedge reserve and includes it inthe initial cost or other carrying amount of the asset or liability.
For cash flow hedges other than those covered above, that amount is reclassified from thecash flow hedge reserve to profit or loss as a reclassification adjustment in the same periodor periods during which the hedged expected future cash flows affect profit or loss.
When the Group discontinues hedge accounting for a cash flow hedge, the amount of theaccumulated cash flow hedge reserve recognised in other comprehensive income isaccounted for as follows:
- If the hedged future cash flows are still expected to occur, that amount will remain in thecash 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 isimmediately reclassified from the cash flow hedge reserve to profit or loss as areclassification adjustment.
31 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will beapproved after the balance sheet date, are not recognised as a liability at the balance sheetdate but are disclosed in the notes separately.
32 Related parties
If a party has the power to control, jointly control or exercise significant influence overanother party, or vice versa, or where two or more parties are subject to common control orjoint control from another party, they are considered to be related parties. Related partiesmay be individuals or enterprises. Enterprises with which the Company is under commoncontrol only from the State and that have no other related party relationships are notregarded as related parties.
In addition to the related parties stated above, the Company determines related partiesbased on the disclosure requirements of Administrative Procedures on the InformationDisclosures of Listed Companies issued by the CSRC.
33 Segment reporting
Reportable segments are identified based on operating segments which are determinedbased on the structure of the Group’s internal organisation, management requirements andinternal reporting system after taking the materiality principle into account. Two or moreoperating segments may be aggregated into a single operating segment if the segmentshave the similar economic characteristics and are same or similar in respect of the nature ofeach segment’s products and services, the nature of production processes, the types orclasses of customers for the products and services, the methods used to distribute theproducts or provide the services, and the nature of the regulatory environment.
Inter-segment revenues are measured on the basis of the actual transaction prices for suchtransactions for segment reporting. Segment accounting policies are consistent with those forthe consolidated financial statements.
34 Significant accounting estimates and judgements
The preparation of the financial statements requires management to make estimates andassumptions that affect the application of accounting policies and the reported amounts ofassets, liabilities, income and expenses. Actual results may differ from these estimates.Estimates as well as underlying assumptions and uncertainties involved are reviewed on anongoing basis. Revisions to accounting estimates are recognised in the period in which theestimate is revised and in any future periods affected.
Except for accounting estimates relating to depreciation and amortisation of assets such asfixed assets and intangible assets (see Notes III.13 and 16) and provision for impairment ofvarious types of assets (see Notes V.4, 6, 7, 8, 10, 14, 15, 16 and 17). Other significantaccounting estimates are as follows:
(i) Note V.19: Recognition of deferred tax assets;(ii) Note V.30: Warranty provisions;(iii) Note IX. – Fair value measurements of financial instruments; and(iv) Note XI: Share-based payments.
Significant judgements made by the Group in the application of accounting policies are asfollows:
(i) Note VII. 1(1) –Disclosure of significant judgements and assumptions of control and
exercising significant influence over other entities.
35. Changes in significant accounting policies
(1) Description of and reasons for changes in accounting policies
In 2022, the Group has adopted the revised accounting requirements and guidance underCAS newly issued by the Ministry of Finance (“MOF”) as follows:
- “Accounting for selling outputs that are produced before fixed assets are available for
intended use or produced in the course of research and development” (“accounting forsales before intended use") in CAS Bulletin No.15 (Caikuai [2021] No.35);- “Determining whether a contract is onerous” in CAS Bulletin No.15;- Notice of Application Issues for Accounting Treatment of COVID-19-Related Rent
Concessions (Caikuai [2022] No.13);
- “Accounting for the income tax consequences of dividends on financial instrumentsclassified as equity instruments by the issuer” in CAS Bulletin No.16 (Caikuai [2022]No.31); and- “Accounting for the modification of a share-based payment transaction that changes theclassification of the transaction from cash-settled to equity-settled” in CAS Bulletin No.16
(a) Main effects of adopting the above requirements and guidance
(i) Accounting for sales before intended use
In accordance with CAS Bulletin No.15, the Group accounts for the proceeds andrelated cost arising from the sale of products or by-products produced before thefixed asset is available for its intended use and in the course of research anddevelopment (“sales before intended use”) in accordance with CAS 14 – Revenueand CAS 1 – Inventories respectively, and recognises them in profit or loss for thecurrent period. The net amount of proceeds from such sales before intended useless related costs is no longer offset against the cost of the fixed asset or researchand development expenditure.
These provisions are effective from 1 January 2022. The Group has maderetrospective adjustments in accordance with these provisions for sales beforeintended use occurring between 1 January 2021 and the date of initialimplementation.
The adoption of Bulletin No.15 does not have a significant effect on the financialposition and financial performance of the Company.
(ii) “Determining whether a contract is onerous”
In accordance with CAS Bulletin No.15, when determining whether a contract isonerous, the Group includes in its estimated cost of fulfilling the contract theamount of the incremental cost of fulfilling the contract and the allocation of othercosts directly attributable to fulfilling the contract.
The adoption of Bulletin No.15 does not have a significant effect on the financialposition and financial performance of the Group and the Company.
(iii) Caikuai [2022] No.13
The Accounting Treatment of COVID-19-Related Rent Concessions (Caikuai[2020] No.10) provides a practical expedient under certain conditions for rentconcessions occurring as a direct consequence of the COVID-19 pandemic.According to the provisions of Caikuai [2022] No.13, the practical expedient ofCaikuai [2020] No.10 can continue to apply to eligible reduction in lease paymentsthat are originally due after 30 June 2022.
The adoption of the above regulation does not have a significant effect on thefinancial position and financial performance of the Group and the Company.
(iv) Accounting for the income tax consequences of dividends on financial instruments
classified as equity instruments by the issuer
In accordance with CAS Bulletin No.16, for financial instruments classified asequity instruments (such as perpetual bonds classified as equity instruments, etc.)in accordance with the CAS No. 37 - Presentation and Disclosure of FinancialInstruments and other requirements, if the relevant dividend payments aredeductible for income tax purposes according to the relevant provisions of taxpolicies, the Group (as the issuer) shall recognise the income tax consequences ofdividends when it recognises a liability to pay a dividend. The Group shallrecognise the income tax consequences of dividends in (1) profit or loss, if thosepayments are distributions of profits generated from transactions or eventspreviously recognised in profits or loss; or (2) the items of owner's equity, if thosepayments are distributions of profits generated from the transactions or eventspreviously recognised in the items of owner's equity.
The adoption of Bulletin No.16 does not have a significant effect on the financialposition and financial performance of the Group and the Company.
(v) Accounting for the modification of a share-based payment transaction that
changes the classification of the transaction from cash-settled to equity-settled
In accordance with CAS Bulletin No.16, if the terms and conditions of a cash-settled share-based payment transaction are modified such that it becomes anequity-settled share-based payment transaction, the Group shall, at themodification date:
? measure the equity-settled share-based payment at its fair value as at themodification date and recognise in equity that fair value to the extent that theservices have been rendered up to that date;
? derecognise the liability for the cash-settled share-based payment as at themodification date; and
? immediately recognise in profit or loss the difference between the carryingamount of the liability and the amount recognised in equity.
If the modification extends or shortens the vesting period, the Group applies themodified vesting period to the above accounting treatment.
The adoption of Bulletin No.16 does not have a significant effect on the financialposition and financial performance of the Group and the Company.
(b) The effects on the financial statements
The effects on each of the line items in the consolidated balance sheet as at 31December 2022 are as follows:
| Increase/(decrease) in the line items for the year as a result of applying new accounting policies | |
| The Group | |
| ? | ? |
| Assets: | ? |
| Inventories | 125,164,818 |
| Fixed assets | 370,255,620 |
| Construction in progress | (122,638,939) |
| ? | ? |
| Shareholders’ equity: | ? |
| Retained earnings | 98,225,752 |
| Capital reserve | 112,771,892 |
| Non-controlling interests | 161,783,855 |
?
?
The effects on each of the line items in the consolidated income statement for the yearended 31 December 2022 are as follows:
| Increase/(decrease) in the line items for the year as a result of applying new accounting policies | |
| The Group | |
| ? | ? |
| Operating income | 1,407,856,936 |
| Operating costs | 1,514,976,278 |
| Research and development expenses | 25,722,208 |
| Losses before income tax | (132,841,550) |
| Net loss for the year | (132,841,550) |
| Attributable to: Shareholders of the Company | (67,167,595) |
| Non-controlling interests | (65,673,955) |
?
?
The effects on each of the line items in the consolidated cash flow statement for the yearended 31 December 2022 are as follows:
| Increase/(decrease) in the line items for the year as a result of applying new accounting policies | |
| The Group | |
| ? | ? |
| Proceeds from sale of goods and rendering of services | 1,558,099,468 |
| Payment for goods and services | 1,615,780,128 |
| Payment to and for employees | 119,971,211 |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | (177,651,871) |
?
?
(c) The effects on the comparative financial statements
The effects of these changes in accounting policies on the Group’s net profit for the yearended 31 December 2021, and opening and closing balances of shareholders’ equity asat 1 January and 31 December 2021 are summarised as follows:
| The Group | |||||
| 2021 Net profit | ? | 2021 Closing balance of shareholders’ equity | ? | 2021 Opening balance of shareholders’ equity | |
| ? | ? | ? | ? | ? | ? |
| Net profit and shareholders’ equity before adjustments | 30,431,668,974 | ? | 216,873,143,467 | ? | 173,397,734,714 |
| The effects of sales before intended use | 464,735,881 | ? | 505,623,049 | ? | 40,887,168 |
| Net profit and shareholders’ equity after adjustments | 30,896,404,855 | ? | 217,378,766,516 | ? | 173,438,621,882 |
?
?
The effects on each of the line items in the consolidated balance sheet as at 31December 2021 are as follows:
| The Group | |||||
| Before adjustments | ? | The amounts of adjustments | ? | After adjustments | |
| ? | ? | ? | ? | ? | ? |
| Assets: | ? | ? | ? | ? | ? |
| Inventories | 27,724,806,939 | ? | 80,354,497 | ? | 27,805,161,436 |
| Fixed assets | 226,695,489,704 | ? | 445,877,180 | ? | 227,141,366,884 |
| Construction in progress | 32,120,320,507 | ? | (20,608,628) | ? | 32,099,711,879 |
| ? | ? | ? | ? | ? | ? |
| Shareholders’ equity: | ? | ? | ? | ? | ? |
| Retained earnings | 36,941,121,452 | ? | 165,393,347 | ? | 37,106,514,799 |
| Capital reserve | 53,804,309,393 | ? | 113,299,701 | ? | 53,917,609,094 |
| Non-controlling interests | 73,947,595,568 | ? | 226,930,001 | ? | 74,174,525,569 |
?
?
?The effects on each of the line items in the consolidated income statement for the yearended 31 December 2021 are as follows:
| The Group | |||||
| Before adjustments | ? | The amounts of adjustments | ? | After adjustments | |
| ? | ? | ? | ? | ||
| Operating income | 219,309,799,505 | 1,725,918,507 | 221,035,718,012 | ||
| Operating costs | 155,985,225,295 | 1,313,600,486 | 157,298,825,781 | ||
| Research and development expenses | 10,668,844,187 | (52,417,860) | 10,616,426,327 | ||
| Profit before income tax | 34,619,640,378 | 464,735,881 | 35,084,376,259 | ||
| Net profit for the year | 30,431,668,974 | 464,735,881 | 30,896,404,855 | ||
| Attributable to: Shareholders of the Company | 25,830,935,500 | 129,816,146 | 25,960,751,646 | ||
| Non-controlling interests | 4,600,733,474 | 334,919,735 | 4,935,653,209 | ||
?
?
?The effects on each of the line items in the consolidated cash flow statement for the yearended 31 December 2021 are as follows:
| The Group | |||||
| Before adjustments | ? | The amounts of adjustments | ? | After adjustments | |
| ? | ? | ? | ? | ||
| Proceeds from sale of goods and rendering of services | 219,962,740,822 | 1,877,357,384 | 221,840,098,206 | ||
| Payment for goods and services | 145,205,421,170 | 1,437,251,941 | 146,642,673,111 | ||
| Payment to and for employees | 17,896,262,253 | 11,973,211 | 17,908,235,464 | ||
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | 35,669,946,105 | 428,132,232 | 36,098,078,337 | ||
?
?
?(d) After retrospective adjustments of the above accounting policy changes, the
consolidated balance sheet as at 1 January 2021 are as follows:
| ? | The Group |
| Assets | ? |
| ? | ? |
| Current assets: | ? |
| Cash at bank and on hand | 73,694,296,095 |
| Financial assets held for trading | 4,367,201,833 |
| Bills receivable | 215,994,373 |
| Accounts receivable | 22,969,140,355 |
| Prepayments | 1,119,595,984 |
| Other receivables | 658,114,833 |
| Inventories | 17,919,205,338 |
| Contract assets | 49,897,395 |
| Assets held for sale | 186,892,645 |
| Other current assets | 7,848,869,252 |
| ? | ? |
| Total current assets | 129,029,208,103 |
| ? | ? |
| Non-current assets: | ? |
| Long-term equity investments | 3,693,170,224 |
| Investments in other equity instruments | 533,645,423 |
| Investment properties | 1,196,168,511 |
| Fixed assets | 224,866,586,069 |
| Construction in progress | 42,572,986,272 |
| Intangible assets | 11,875,926,448 |
| Goodwill | 1,400,357,242 |
| Long-term deferred expenses | 299,634,100 |
| Deferred tax assets | 205,041,088 |
| Other non-current assets | 8,624,970,019 |
| ? | ? |
| Total non-current assets | 295,268,485,396 |
| ? | ? |
| ? | ? |
| Total assets | 424,297,693,499 |
| ? | ? |
?
?
| ? | The Group |
| Liabilities and shareholders’ equity | ? |
| ? | ? |
| Current liabilities: | ? |
| Short-term loans | 8,599,569,471 |
| Bills payable | 1,231,533,895 |
| Accounts payable | 27,164,171,682 |
| Advance payments received | 124,040,749 |
| Contract liabilities | 3,440,720,535 |
| Employee benefits payable | 3,758,623,797 |
| Taxes payable | 1,077,686,869 |
| Other payables | 32,867,709,024 |
| Non-current liabilities due within one year | 24,500,550,121 |
| Other current liabilities | 2,194,716,852 |
| ? | ? |
| Total current liabilities | 104,959,322,995 |
| ? | ? |
| Non-current liabilities: | ? |
| Long-term loans | 132,452,767,135 |
| Debentures payable | 398,971,739 |
| Long-term payables | 2,114,175,683 |
| Deferred income | 4,246,231,468 |
| Deferred tax liabilities | 1,427,601,154 |
| Other non-current liabilities | 5,260,001,443 |
| ? | ? |
| Total non-current liabilities | 145,899,748,622 |
| ? | |
| ? | ? |
| Total liabilities | 250,859,071,617 |
| ? | |
| ? | ? |
| Shareholders’ equity: | ? |
| Share capital | 34,798,398,763 |
| Other equity instruments | 14,146,997,427 |
| Capital reserve | 37,435,655,934 |
| Less: Treasury shares | 1,036,298,508 |
| Other comprehensive income | (22,198,072) |
| Surplus reserve | 2,444,416,669 |
| Retained earnings | 15,545,371,823 |
| ? | ? |
| Total equity attributable to shareholders of the Company | 103,312,344,036 |
| ? | ? |
| Non-controlling interests | 70,126,277,846 |
| ? | ? |
| Total shareholders’ equity | 173,438,621,882 |
| ? | |
| ? | ? |
| Total liabilities and shareholders’ equity | 424,297,693,499 |
| ? | ? |
?
IV. Taxation
1 Main types of taxes and corresponding tax rates
| Tax type | ? | Tax basis | ? | Tax rate |
| ? | ? | ? | ? | ? |
| Value-added tax (VAT) | ? | Output VAT is calculated on product sales and taxable services revenue. The basis for VAT payable is to deduct input VAT from the output VAT for the period | ? | 6%, 9%, 13% |
| City maintenance and construction tax | ? | Based on VAT paid, VAT exemption and offset for the period | ? | 7%, 5% |
| Education surcharges and local education surcharges | ? | Based on VAT paid, VAT exemption and offset for the period | ? | 3%, 2% |
| Corporate income tax | ? | Based on taxable profits | ? | 15% - 30% |
???
???
2 Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2021: 15%).
Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatment No.28, corporate income tax for key advanced and high-tech enterprises supported by the Stateis applicable to a preferential tax rate of 15%.
On 2 December 2020, the Company renewed the High-tech Enterprise Certificate No.GR202011004594, which was entitled jointly by Beijing Municipal Science and TechnologyCommission, Beijing Municipal Financial Bureau, Beijing Municipal Tax Service, StateTaxation Administration. The Company is subject to corporate income tax rate of 15% sincethe date of certification with the valid period of three years.
The income tax rate applicable to other subsidiaries of the Group is 25% other than thefollowing subsidiaries and the overseas subsidiaries which subject to the local income taxrate.
The subsidiaries that are entitled to preferential tax treatments are as follows:
| Company name | Preferential rate | ? | Reason |
| ? | ? | ? | ? |
| Beijing BOE Optoelectronics Technology Co., Ltd. (BOE OT) | 15% | ? | High-tech Enterprise |
| Chengdu BOE Optoelectronics Technology Co., Ltd. (Chengdu Optoelectronics) | 15% | ? | High-tech Enterprise |
| Hefei BOE Optoelectronics Technology Co., Ltd. (Hefei BOE) | 15% | ? | High-tech Enterprise |
| Beijing BOE Display Technology Co., Ltd. (BOE Display) | 15% | ? | High-tech Enterprise |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. (Hefei Xinsheng) | 15% | ? | High-tech Enterprise |
| Ordos Yuansheng Optoelectronics Co., Ltd. (Yuansheng Optoelectronics) | 15% | ? | High-tech Enterprise |
| Chongqing BOE Optoelectronics Co., Ltd. (Chongqing BOE) | 15% | ? | 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% | ? | Encouraged enterprise in Western Regions |
| Beijing BOE Vacuum Electronics Co., Ltd. (Vacuum Electronics) | 15% | ? | High-tech Enterprise |
| Beijing BOE Vacuum Technology Co., Ltd. (Vacuum Technology) | 15% | ? | High-tech Enterprise |
| Beijing BOE Energy Technology Co., Ltd. (BOE Energy) | 15% | ? | High-tech Enterprise |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. (Fuzhou BOE) | 15% | ? | High-tech Enterprise |
| Hefei BOE Display Technology Co., Ltd. (Hefei Technology) | 15% | ? | High-tech Enterprise |
| Mianyang BOE Optoelectronics Technology Co., Ltd. (Mianyang BOE) | 15% | ? | High-tech Enterprise |
| BOE Wisdom IOT Technology Co., Ltd. (Wisdom IOT) | 15% | ? | High-tech Enterprise |
| K-Tronics (Suzhou) Technology Co., Ltd. (Suzhou K-Tronics) | 15% | ? | High-tech Enterprise |
| Beijing BOE Sensing Technology Co., Ltd. (Sensing Technology) | 15% | ? | High-tech Enterprise |
| Chongqing BOE Smart Electronic System Co., Ltd. (Chongqing Smart Electronic) | 15% | ? | Encouraged enterprise in Western Regions |
| Beijing BOE Health Technology Co., Ltd. (Health Technology) | 15% | ? | High-tech Enterprise |
| Chongqing BOE Electronic Technology Co., Ltd. (Chongqing Electronic Technology) | 15% | ? | Encouraged enterprise in Western Regions |
| Wuhan BOE Optoelectronics Technology Co., Ltd. (Wuhan BOE) | 15% | ? | High-tech Enterprise |
| Nanjing BOE Display Technology Co., Ltd. (Nanjing Technology) | 15% | ? | High-tech Enterprise |
| Chengdu BOE Display Sci-tech Co., Ltd.. (Chengdu Display Sci-tech) | 15% | ? | High-tech Enterprise |
| BOE Regenerative Medical Technology Co., Ltd. (Regenerative Medical) | 15% | ? | High-tech Enterprise |
| Beijing Zhongxiangying Technology Co., Ltd. (Beijing Zhongxiangying) | 15% | ? | High-tech Enterprise |
| Yunnan Invensight Optoelectronics Technology Co., Ltd. (Yunnan Invensight) | 15% | ? | High-tech Enterprise |
| BOE Mled Technology Co., Ltd. (Mled Technology) | 15% | ? | High-tech Enterprise |
| Hefei BOE Semiconductor Co., Ltd. (Hefei Semiconductor) | 15% | ? | High-tech Enterprise |
????
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
| ? | 2022 | ? | 2021 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash on hand | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 796,306 | ? | ? | ? | ? | ? | 336,429 |
| USD | 1,773 | ? | 6.9646 | ? | 12,348 | ? | 1,480 | ? | 6.3757 | ? | 9,438 |
| HKD | 35,650 | ? | 0.8933 | ? | 31,846 | ? | 35,673 | ? | 0.8176 | ? | 29,166 |
| JPY | 106,508 | ? | 0.0524 | ? | 5,581 | ? | 528,014 | ? | 0.0554 | ? | 29,252 |
| KRW | 70,909 | ? | 0.0055 | ? | 390 | ? | 70,185 | ? | 0.0054 | ? | 379 |
| Other foreign currencies | ? | ? | ? | ? | 49,796 | ? | ? | ? | ? | ? | 47,311 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 896,267 | ? | ? | ? | ? | ? | 451,975 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Bank deposits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 43,646,054,088 | ? | ? | ? | ? | ? | 51,889,193,811 |
| USD | 2,681,806,253 | ? | 6.9646 | ? | 18,677,707,830 | ? | 3,615,879,387 | ? | 6.3757 | ? | 23,053,762,209 |
| HKD | 364,050,751 | ? | 0.8933 | ? | 325,206,536 | ? | 9,520,528 | ? | 0.8176 | ? | 7,783,984 |
| JPY | 10,556,434,427 | ? | 0.0524 | ? | 553,157,164 | ? | 13,848,652,635 | ? | 0.0554 | ? | 767,215,356 |
| KRW | 578,139,636 | ? | 0.0055 | ? | 3,179,768 | ? | 1,094,268,704 | ? | 0.0054 | ? | 5,909,051 |
| EUR | 200,208,832 | ? | 7.4229 | ? | 1,486,130,139 | ? | 135,902,777 | ? | 7.2197 | ? | 981,177,279 |
| Other foreign currencies | ? | ? | ? | ? | 78,007,216 | ? | ? | ? | ? | ? | 55,392,165 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 64,769,442,741 | ? | ? | ? | ? | ? | 76,760,433,855 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Other monetary funds | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 3,914,979,538 | ? | ? | ? | ? | ? | 3,857,498,365 |
| USD | 13,176,444 | ? | 6.9646 | ? | 91,768,662 | ? | 49,772,132 | ? | 6.3757 | ? | 317,332,183 |
| HKD | 438,830 | ? | 0.8933 | ? | 392,007 | ? | 7 | ? | 0.8176 | ? | 6 |
| JPY | 435,651,794 | ? | 0.0524 | ? | 22,828,154 | ? | 922,720,289 | ? | 0.0554 | ? | 51,118,704 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 4,029,968,361 | ? | ? | ? | ? | ? | 4,225,949,258 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 68,800,307,369 | ? | ? | ? | ? | ? | 80,986,835,088 |
????
????
Including: Total overseas deposits were equivalent to RMB 5,780,461,058 (2021: RMB7,197,634,319).
As at 31 December 2022, other monetary funds included deposits with securities companiesby the Group amounting to RMB 2,609,817, used as refundable deposits for stockrepurchase and payment for settlement with third party platform, which can be withdrew ondemand. The rest was restricted monetary funds, of which, RMB 164,299,257 was pledgedfor issuance of bills payable, and an equivalent to RMB 3,863,059,287 was mainly depositsin commercial banks as security.
As at 31 December 2021, other monetary funds included deposits with securities companiesby the Group amounting to RMB 73,244,093, used as refundable deposits for stockrepurchase and payment for settlement with third party platform, which can be withdrew ondemand. The rest was restricted monetary funds, of which, RMB 91,976,204 was pledged forissuance of bills payable, and an equivalent to RMB 4,060,728,961 was mainly deposits incommercial banks as security.
2 Financial assets held for trading
| Item | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Financial assets at fair value through profit or loss | ? | ? | ? |
| - Structured deposit and wealth management products | 16,931,468,153 | ? | 10,028,172,853 |
| - Investment in equity instruments | 256,525,783 | ? | - |
| ? | ? | ? | ? |
| Total | 17,187,993,936 | ? | 10,028,172,853 |
????
????
3 Bills receivable
(1) Classification of bills receivable
| Item | ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Bank acceptance bills | ? | 211,292,061 | ? | 217,734,298 |
| Commercial acceptance bills | ? | 500,000 | ? | - |
| ? | ? | ? | ? | ? |
| Total | ? | 211,792,061 | ? | 217,734,298 |
????
????
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 2022, the Group does not have any pledged bills receivable (2021: RMB8,441,900).
(3) Outstanding endorsed or discounted bills that have not matured at the end of the year
| Item | ? | ? | ||
| ? | ? | Amount derecognised as at 31 December 2022 | ? | Amount not derecognised as at 31 December 2022 |
| ? | ? | ? | ? | ? |
| Bank acceptance bills | ? | 289,638,315 | ? | 28,239,380 |
????
????
For the year ended 31 December 2022, there was no amount transferred to accountsreceivable from bills receivable due to non-performance of the issuers of the Group (2021:
Nil).
4 Accounts receivable
(1) The Group’s accounts receivable by customer type:
| Item | ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Amounts due from related parties | ? | 1,070,848,317 | ? | 88,954,909 |
| Amounts due from other customers | ? | 27,252,679,049 | ? | 35,496,227,051 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 28,323,527,366 | ? | 35,585,181,960 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 119,879,797 | ? | 81,767,140 |
| ? | ? | ? | ? | ? |
| Total | ? | 28,203,647,569 | ? | 35,503,414,820 |
????
????
(2) The Group’s accounts receivable by currency type:
| ? | 2022 | ? | 2021 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 12,806,183,088 | ? | ? | ? | ? | ? | 12,064,153,278 |
| USD | 2,139,614,722 | ? | 6.9646 | ? | 14,901,560,693 | ? | 3,551,733,364 | ? | 6.3757 | ? | 22,644,786,409 |
| JPY | 5,046,551 | ? | 0.0524 | ? | 264,439 | ? | 1,985,544 | ? | 0.0554 | ? | 109,999 |
| Other foreign currencies | ? | ? | ? | ? | 615,519,146 | ? | ? | ? | ? | ? | 876,132,274 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 28,323,527,366 | ? | ? | ? | ? | ? | 35,585,181,960 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | ? | ? | ? | 119,879,797 | ? | ? | ? | ? | ? | 81,767,140 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 28,203,647,569 | ? | ? | ? | ? | ? | 35,503,414,820 |
????
????
(3) The ageing analysis of accounts receivable is as follows:
| ? | ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 27,791,874,623 | ? | 35,052,439,412 |
| Over 1 year but within 2 years (inclusive) | ? | 232,130,123 | ? | 190,180,631 |
| Over 2 years but within 3 years (inclusive) | ? | 151,304,998 | ? | 181,687,107 |
| Over 3 years | ? | 148,217,622 | ? | 160,874,810 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 28,323,527,366 | ? | 35,585,181,960 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 119,879,797 | ? | 81,767,140 |
| ? | ? | ? | ? | ? |
| Total | ? | 28,203,647,569 | ? | 35,503,414,820 |
????
????
The ageing is counted starting from the date when accounts receivable are recognised.
(4) Accounts receivable by provisioning method
| ? | 31 December 2022 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 62,016,470 | ? | 0% | ? | 59,921,373 | ? | 97% | ? | 2,095,097 |
| - Customers with low credit risk | 1,359,564,251 | ? | 5% | ? | - | ? | 0% | ? | 1,359,564,251 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with moderate credit risk | 26,901,946,645 | ? | 95% | ? | 59,958,424 | ? | 0% | ? | 26,841,988,221 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 28,323,527,366 | ? | 100% | ? | 119,879,797 | ? | 0% | ? | 28,203,647,569 |
????
????
| ? | 31 December 2021 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 66,060,901 | ? | 0% | ? | 46,406,137 | ? | 70% | ? | 19,654,764 |
| - Customers with low credit risk | 1,209,167,604 | ? | 4% | ? | - | ? | 0% | ? | 1,209,167,604 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with moderate credit risk | 34,309,953,455 | ? | 96% | ? | 35,361,003 | ? | 0% | ? | 34,274,592,452 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 35,585,181,960 | ? | 100% | ? | 81,767,140 | ? | 0% | ? | 35,503,414,820 |
???
???
(a) Criteria for collective assessment in 2022 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 2022:
At all times the Group measures the impairment loss for accounts receivable at anamount equal to lifetime ECLs, and the ECLs are based on the number of overduedays and the expected loss rate. According to the Group’s historical experience,different loss models are applicable to different customer groups.
(5) Movements of provisions for bad and doubtful debts:
| ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Balance at the beginning of the year | 81,767,140 | ? | 57,863,022 |
| Charge during the year | 77,823,874 | ? | 48,438,509 |
| Recoveries during the year | (27,926,578) | ? | (20,188,349) |
| Written-off during the year | (14,534,442) | ? | (3,474,488) |
| Translation differences | 2,749,803 | ? | (871,554) |
| ? | ? | ? | ? |
| Balance at the end of the year | 119,879,797 | ? | 81,767,140 |
????
(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 RMB12,252,460,319, representing 43% of the total accounts receivable, and no provision wasmade for bad and doubtful debts after assessment.
5 Prepayments
(1) The Group’s prepayments by category:
| ? | ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Prepayment for inventory | ? | 261,349,159 | ? | 648,790,765 |
| Prepayment for electricity, water, gas and power | ? | 234,247,912 | ? | 290,002,465 |
| Others | ? | 94,167,609 | ? | 174,086,777 |
| ? | ? | ? | ? | ? |
| Total | ? | 589,764,680 | ? | 1,112,880,007 |
????
????
(2) The ageing analysis of prepayments is as follows:
| ? | 31 December 2022 | ? | 31 December 2021 | ||||
| Ageing | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | 471,778,052 | ? | 80% | ? | 1,088,149,020 | ? | 98% |
| Over 1 year but within 2 years (inclusive) | 112,700,267 | ? | 19% | ? | 9,828,654 | ? | 1% |
| Over 2 years but within 3 years (inclusive) | 2,959,783 | ? | 1% | ? | 2,531,759 | ? | 0% |
| Over 3 years | 2,326,578 | ? | 0% | ? | 12,370,574 | ? | 1% |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 589,764,680 | ? | 100% | ? | 1,112,880,007 | ? | 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 RMB256,769,053, representing 44% of the total prepayments.
6 Other receivables
| ? | Note | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Dividends receivable | ? | - | ? | 2,414,503 |
| Others | (1) | 975,809,236 | ? | 1,920,413,875 |
| ? | ? | ? | ? | ? |
| Total | ? | 975,809,236 | ? | 1,922,828,378 |
????
????
(1) Others
(a) The Group’s other receivables by customer type:
| Customer type | ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Amounts due from related parties | ? | 16,588,534 | ? | 1,901,777 |
| Amounts due from other customers | ? | 969,833,087 | ? | 1,927,555,914 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 986,421,621 | ? | 1,929,457,691 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 10,612,385 | ? | 9,043,816 |
| ? | ? | ? | ? | ? |
| Total | ? | 975,809,236 | ? | 1,920,413,875 |
????
????
(b) The Group’s other receivables by currency type:
| ? | 31 December 2022 | ? | 31 December 2021 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 480,934,242 | ? | ? | ? | ? | ? | 808,428,477 |
| USD | 69,194,294 | ? | 6.9646 | ? | 481,910,580 | ? | 170,390,641 | ? | 6.3757 | ? | 1,086,359,610 |
| JPY | 316,069 | ? | 0.0524 | ? | 16,562 | ? | - | ? | - | ? | - |
| Other foreign currencies | ? | ? | ? | ? | 23,560,237 | ? | ? | ? | ? | ? | 34,669,604 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 986,421,621 | ? | ? | ? | ? | ? | 1,929,457,691 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | ? | ? | ? | 10,612,385 | ? | ? | ? | ? | ? | 9,043,816 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 975,809,236 | ? | ? | ? | ? | ? | 1,920,413,875 |
????
????
(c) The ageing analysis of the Group’s other receivables is as follows:
| ? | ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 367,646,687 | ? | 1,637,506,264 |
| Over 1 year but within 2 years (inclusive) | ? | 362,777,830 | ? | 21,232,566 |
| Over 2 years but within 3 years (inclusive) | ? | 14,948,621 | ? | 24,183,841 |
| Over 3 years | ? | 241,048,483 | ? | 246,535,020 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 986,421,621 | ? | 1,929,457,691 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 10,612,385 | ? | 9,043,816 |
| ? | ? | ? | ? | ? |
| Total | ? | 975,809,236 | ? | 1,920,413,875 |
????
????
The ageing is counted starting from the date when other receivables are recognised.
(d) Other receivables by provisioning method
| ? | 31 December 2022 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | 10,612,385 | ? | 1% | ? | 10,612,385 | ? | 100% | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | 975,809,236 | ? | 99% | ? | - | ? | 0% | ? | 975,809,236 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 986,421,621 | ? | 100% | ? | 10,612,385 | ? | 1% | ? | 975,809,236 |
????
????
| ? | 31 December 2021 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | 9,043,816 | ? | 0% | ? | 9,043,816 | ? | 100% | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | 1,920,413,875 | ? | 100% | ? | - | ? | 0% | ? | 1,920,413,875 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 1,929,457,691 | ? | 100% | ? | 9,043,816 | ? | 0% | ? | 1,920,413,875 |
???
???
(e) Movements of provisions for bad and doubtful debts
| ? | ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 9,043,816 | ? | 9,044,012 |
| Charge during the year | ? | 1,679,930 | ? | 275,661 |
| Recoveries during the year | ? | - | ? | (115,952) |
| Written-off during the year | ? | (111,361) | ? | (159,905) |
| ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 10,612,385 | ? | 9,043,816 |
????
????
(f) The Group’s other receivables categorised by nature
| Nature | ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| VAT refunds and export tax rebate | ? | 512,851 | ? | 253,311 |
| Amounts due from equity transfer | ? | 200,000,000 | ? | 200,000,000 |
| Surety and deposits | Note | 598,972,862 | ? | 1,518,208,550 |
| Others | ? | 186,935,908 | ? | 210,995,830 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 986,421,621 | ? | 1,929,457,691 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 10,612,385 | ? | 9,043,816 |
| ? | ? | ? | ? | ? |
| Total | ? | 975,809,236 | ? | 1,920,413,875 |
????
Note: As at 31 December 2022, an equivalent to RMB 436,628,186 (2021: RMB1,056,493,338) of the surety and deposits mainly represented production capacitysurety paid by the Group to suppliers.
(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 RMB656,304,152, most of which were surety and amounts due from equity transfer. Noprovision is made for bad and doubtful debts after assessment.
7 Inventories
(1) The Group’s inventories by category:
| ? | 31 December 2022 | ? | 31 December 2021 | ||||||||
| ? | Book value | ? | Provision for impairment of inventories/Provision for impairment of costs to fulfil a contract with a customer | ? | Carrying amount | ? | Book value | ? | Provision for impairment of inventories/Provision for impairment of costs to fulfil a contract with a customer | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Raw materials | 11,178,326,632 | ? | 2,890,923,826 | ? | 8,287,402,806 | ? | 12,029,879,462 | ? | 2,083,190,076 | ? | 9,946,689,386 |
| Work in progress | 4,879,573,518 | ? | 1,316,529,598 | ? | 3,563,043,920 | ? | 4,080,209,516 | ? | 732,973,017 | ? | 3,347,236,499 |
| Finished goods | 14,699,012,100 | ? | 4,072,862,311 | ? | 10,626,149,789 | ? | 17,108,598,457 | ? | 2,795,564,803 | ? | 14,313,033,654 |
| Consumables | 147,843,921 | ? | - | ? | 147,843,921 | ? | 130,472,966 | ? | - | ? | 130,472,966 |
| Costs to fulfil a contract with a customer | 163,373,789 | ? | - | ? | 163,373,789 | ? | 67,728,931 | ? | - | ? | 67,728,931 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 31,068,129,960 | ? | 8,280,315,735 | ? | 22,787,814,225 | ? | 33,416,889,332 | ? | 5,611,727,896 | ? | 27,805,161,436 |
????
????
As at 31 December 2022, there was no amount of capitalised borrowing cost in the Group’sclosing balance of inventories (2021: Nil).
As at 31 December 2022, the Group had no inventory used as collateral (2021: Nil).
(2) An analysis of provision for impairment of inventories of the Group is as follows:
| ? | Balance at the beginning of the year | ? | Charge during the year | ? | Decrease during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Raw materials | 2,083,190,076 | ? | 1,535,322,358 | ? | (727,588,608) | ? | 2,890,923,826 |
| Work in progress | 732,973,017 | ? | 1,103,212,064 | ? | (519,655,483) | ? | 1,316,529,598 |
| Finished goods | 2,795,564,803 | ? | 8,482,398,827 | ? | (7,205,101,319) | ? | 4,072,862,311 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 5,611,727,896 | ? | 11,120,933,249 | ? | (8,452,345,410) | ? | 8,280,315,735 |
????
????
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 ithas transferred to a customer when that right is conditional on something other than thepassage of time.
(2) Significant changes in the contract assets during the year:
Significant changes in the contract assets of the Group are as follows:
| ? | ? | 2022 |
| ? | ? | RMB |
| ? | ? | ? |
| Balance at the beginning of the year | ? | 75,698,324 |
| ? | ? | ? |
| Transfers from contract assets recognised at the beginning of the year to receivables | ? | (65,331,121) |
| Increase in contract assets resulting from no unconditional right obtained | ? | 61,269,258 |
| ? | ? | ? |
| Balance at the end of the year | ? | 71,636,461 |
???
???
(3) Movements of provision for contract assets during the year:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Balance at the beginning of the year | - | ? | 207,800 |
| Decrease from disposal of subsidiaries | - | ? | (207,800) |
| ? | ? | ? | ? |
| Balance at the end of the year | - | ? | - |
???
???
9 Other current assets
| ? | ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| VAT on tax credits | ? | 2,556,625,457 | ? | 2,643,490,711 |
| Prepaid income taxes | ? | 331,652,233 | ? | 20,739,659 |
| Input tax to be verified or deducted | ? | 329,605,466 | ? | 575,209,816 |
| Costs receivables for recovering products from a customer | ? | 108,097,353 | ? | 126,447,496 |
| Others | ? | 68,056,410 | ? | 213,032,028 |
| ? | ? | ? | ? | ? |
| Total | ? | 3,394,036,919 | ? | 3,578,919,710 |
????
????
10 Long-term equity investments
(1) The Group’s long-term equity investments by category:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Investments in joint ventures | 392,291,560 | ? | - |
| Investments in associates | 13,086,523,900 | ? | 7,066,228,472 |
| ? | ? | ? | ? |
| Sub-total | 13,478,815,460 | ? | 7,066,228,472 |
| ? | ? | ? | ? |
| Less: Provision for impairment | 1,056,936,609 | ? | 1,025,280,155 |
| ? | ? | ? | ? |
| Total | 12,421,878,851 | ? | 6,040,948,317 |
????
????
(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 (loss) / 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 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Joint venture | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Chongqing Maite Optoelectronics Co., Ltd. | - | ? | 400,000,000 | ? | - | ? | (7,708,440) | ? | - | ? | - | ? | - | ? | - | ? | 392,291,560 |
| Sub-total | - | ? | 400,000,000 | ? | - | ? | (7,708,440) | ? | - | ? | - | ? | - | ? | - | ? | 392,291,560 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Associates | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Erdos BOE Energy Investment Co., Ltd. | 1,409,666,833 | ? | 405,200,000 | ? | - | ? | (2,983,503) | ? | - | ? | - | ? | - | ? | - | ? | 1,811,883,330 |
| Beijing Xindongneng Investment Fund (Limited Partnership) | 2,088,917,867 | ? | - | ? | (129,798,594) | ? | 241,130,621 | ? | (61,062,079) | ? | - | ? | (104,317,491) | ? | - | ? | 2,034,870,324 |
| Beijing Innovation Industry Investment Co., Ltd. | 207,564,573 | - | - | 15,651,980 | - | - | - | - | 223,216,553 | ||||||||
| Beijing Electric Control Industry Investment Co., Ltd. | 231,777,557 | 21,234,700 | - | (2,556,780) | 7,694,430 | - | - | - | 258,149,907 | ||||||||
| BOE Art Cloud Technology Co., Ltd. | 286,976,389 | 129,500,000 | (130,381,715) | 10,026,871 | - | 134,476,619 | - | - | 430,598,164 | ||||||||
| Cnoga Medical Co., Ltd. | 253,501,065 | - | - | - | - | - | - | 23,414,968 | 276,916,033 | ||||||||
| Tianjin Xianzhilian Investment Centre (Limited Partnership) | 968,341,880 | ? | 234,000,000 | ? | - | ? | 184,737,344 | ? | - | ? | - | ? | - | ? | - | ? | 1,387,079,224 |
| BioChain (Beijing) Science & Technology, Inc. | 339,845,254 | - | - | (5,751,469) | - | - | - | - | 334,093,785 | ||||||||
| Beijing YanDong MicroElectronic Co., Ltd. | 1,009,985,276 | ? | - | ? | - | ? | 34,518,797 | ? | - | ? | 126,743,478 | ? | - | ? | - | ? | 1,171,247,551 |
| SES Imagotag SA Co., Ltd. | - | ? | 4,871,837,182 | ? | - | ? | 11,536,838 | ? | - | ? | - | ? | - | ? | - | ? | 4,883,374,020 |
| Others | 269,651,778 | ? | 46,917,149 | ? | (87,070,668) | ? | 49,501,421 | ? | 63,317 | ? | 14,310,853 | ? | (18,731,712) | ? | 452,871 | ? | 275,095,009 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 7,066,228,472 | ? | 5,708,689,031 | ? | (347,250,977) | ? | 535,812,120 | ? | (53,304,332) | ? | 275,530,950 | ? | (123,049,203) | ? | 23,867,839 | ? | 13,086,523,900 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 7,066,228,472 | 6,108,689,031 | (347,250,977) | 528,103,680 | (53,304,332) | 275,530,950 | (123,049,203) | 23,867,839 | 13,478,815,460 | ||||||||
| Less: Provision for impairment | 1,025,280,155 | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | 1,056,936,609 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 6,040,948,317 | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | 12,421,878,851 |
?
?
As at 31 December 2022, Hefei Xin Jing Yuan Electronic Materials Co., Ltd. still suffered lossand the Group does not have an obligation to assume additional losses. Therefore, theCompany discontinues recognising its share of further losses after the carrying amount oflong-term equity investment is reduced to zero. As at 31 December 2022, the accumulatedunrecognised investment losses were RMB 14,922,087 (2021: RMB 20,352,876).
As at 31 December 2022, Beijing Infi-Hailin Venture Investment Co., Ltd. made a profit andmade up for the unrecognised investment losses of RMB 1,152,818 in the prior year, andrecognised investment income amounting to RMB 2,073,333 during the year.
11 Investments in other equity instruments
| Items | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Listed equity instruments investment | ? | ? | ? |
| - Beijing Electronic City High Tech Group Co., Ltd. | 53,614,432 | ? | 56,638,836 |
| - Bank of Chongqing Co., Ltd. | 91,600,150 | ? | 91,875,688 |
| - New Century Medical Holding Co., Ltd. | 9,098,008 | ? | 19,810,485 |
| ? | ? | ? | ? |
| Unlisted equity instruments investment | ? | ? | ? |
| - Danhua Capital, L. P. | 34,823,000 | ? | 31,878,500 |
| - Danhua Capital II, L.P. | 69,646,002 | ? | 63,757,002 |
| - Kateeva Inc. | 83,192,147 | ? | 76,157,736 |
| - Nanosys INC | 21,591,641 | ? | 47,817,750 |
| - Baebies INC | 30,600,273 | ? | 28,012,830 |
| - Illumina Fund I,L.P. | 31,079,577 | ? | 25,607,407 |
| - Horizon Robotics, Inc. | 35,616,005 | ? | 31,722,880 |
| - Others | 22,199,071 | ? | 45,809,032 |
| ? | ? | ? | ? |
| Total | 483,060,306 | ? | 519,088,146 |
????
(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 | ? | 206,209 | ? | (36,545,996) | ? | - | ? | Not applicable |
| - Bank of Chongqing Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 9,918,634 | ? | (28,484,225) | ? | - | ? | Not applicable |
| - New Century Medical Holding Co., Ltd. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (131,750,842) | ? | - | ? | Not applicable |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Unlisted equity instruments investment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Danhua Capital, L. P. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 5,045,925 | ? | 296,625 | ? | - | ? | Not applicable |
| - Danhua Capital II, L.P. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | 20,183,700 | ? | 1,998,251 | ? | - | ? | Not applicable |
| - Kateeva Inc. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 329,681 | ? | - | ? | Not applicable |
| - Nanosys INC | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (28,757,359) | ? | - | ? | Not applicable |
| - Baebies INC | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 1,476,718 | ? | - | ? | Not applicable |
| - Illumina Fund I,L.P. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 1,110,906 | ? | - | ? | Not applicable |
| - Horizon Robotics, Inc. | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | 3,661,505 | ? | - | ? | Not applicable |
| - Others | With the intention of establishing or maintaining a long-term investment for strategic reasons | ? | - | ? | (38,958,805) | ? | (10,091,839) | ? | Transfer out due to bankruptcy liquidation derecognition |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | 35,354,468 | ? | (255,623,541) | ? | (10,091,839) | ? | ? |
????
????
12 Other non-current financial assets
| Item | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Financial assets at fair value through profit or loss | 2,022,967,681 | ? | 606,895,447 |
| Including: Investments in equity instruments | 2,022,967,681 | ? | 606,895,447 |
| ? | ? | ? | ? |
| Total | 2,022,967,681 | ? | 606,895,447 |
??
??
13 Investment properties
| ? | ? | Land use rights | ? | Buildings | ? | Total |
| ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 687,434,677 | ? | 1,022,831,969 | ? | 1,710,266,646 |
| Additions during the year | ? | - | ? | 5,461,739 | ? | 5,461,739 |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 687,434,677 | ? | 1,028,293,708 | ? | 1,715,728,385 |
| ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation or amortisation | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 168,017,805 | ? | 383,883,440 | ? | 551,901,245 |
| Additions during the year | ? | 13,622,701 | ? | 28,179,301 | ? | 41,802,002 |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 181,640,506 | ? | 412,062,741 | ? | 593,703,247 |
| ? | ||||||
| ? | ? | ? | ? | ? | ? | ? |
| Carrying amounts | ? | ? | ? | ? | ? | ? |
| At the end of the year | ? | 505,794,171 | ? | 616,230,967 | ? | 1,122,025,138 |
| ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | ? | 519,416,872 | ? | 638,948,529 | ? | 1,158,365,401 |
????
????
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 | 65,746,184,870 | ? | 289,073,320,848 | ? | 10,027,118,299 | ? | 364,846,624,017 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | 22,873,906 | ? | 576,061,450 | ? | 1,874,710,266 | ? | 2,473,645,622 |
| - Transfers from construction in progress | 195,460,071 | ? | 9,633,715,949 | ? | 732,046,393 | ? | 10,561,222,413 |
| - Written-down against government interest discounts | (16,355,538) | ? | (166,721,924) | ? | (12,987) | ? | (183,090,449) |
| Decrease due to disposal of subsidiaries | (61,688,333) | ? | (185,865,467) | ? | (88,382,014) | ? | (335,935,814) |
| Transfers to construction in progress | - | ? | (1,161,980,085) | ? | (29,857,355) | ? | (1,191,837,440) |
| Disposals or written-offs during the year | (176,295) | ? | (446,815,683) | ? | (169,873,534) | ? | (616,865,512) |
| Translation differences | 4,131,352 | ? | 29,007,311 | ? | 6,239,955 | ? | 39,378,618 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 65,890,430,033 | ? | 297,350,722,399 | ? | 12,351,989,023 | ? | 375,593,141,455 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 7,908,069,483 | ? | 122,199,288,667 | ? | 5,704,812,685 | ? | 135,812,170,835 |
| Charge during the year | 2,072,464,102 | ? | 29,207,688,566 | ? | 1,947,737,403 | ? | 33,227,890,071 |
| Decrease due to disposal of subsidiaries | (30,181,955) | ? | (137,710,504) | ? | (23,163,432) | ? | (191,055,891) |
| Transfers to construction in progress | - | ? | (730,517,943) | ? | (21,961,743) | ? | (752,479,686) |
| Disposals or written-offs during the year | (13,666) | ? | (374,611,961) | ? | (69,200,542) | ? | (443,826,169) |
| Translation differences | 391,129 | ? | 15,781,865 | ? | 1,425,638 | ? | 17,598,632 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 9,950,729,093 | ? | 150,179,918,690 | ? | 7,539,650,009 | ? | 167,670,297,792 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 34,480 | ? | 1,704,957,933 | ? | 188,093,885 | ? | 1,893,086,298 |
| Charge during the year | - | ? | 132,578,826 | ? | 10,492,666 | ? | 143,071,492 |
| Transfers to construction in progress | - | ? | (19,908,202) | ? | (165,882) | ? | (20,074,084) |
| Disposals or written-offs during the year | - | ? | (77,467,003) | ? | (2,823,470) | ? | (80,290,473) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 34,480 | ? | 1,740,161,554 | ? | 195,597,199 | ? | 1,935,793,233 |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amounts | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 55,939,666,460 | ? | 145,430,642,155 | ? | 4,616,741,815 | ? | 205,987,050,430 |
?
| ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 57,838,080,907 | ? | 165,169,074,248 | ? | 4,134,211,729 | ? | 227,141,366,884 |
????
????
In 2022, some of the equipment of the Group is idle and there is no clear use plan. TheGroup evaluated the recoverable amount of these equipment and made provisions forimpairment of RMB 143,071,492 (2021: RMB 675,831,912) based on the evaluation results.
(2) Fixed assets pending certificates of ownership
As at 31 December 2022, fixed assets pending certificates of ownership totalled RMB7,110,462,456 (31 December 2021: RMB 7,892,064,184) and certificates of ownership is stillbeing processed.
15 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
| ? | 31 December 2022 | ? | 31 December 2021 | ||||||||
| Item | Book value | ? | Provision for impairment | ? | Carrying amount | ? | Book value | ? | Provision for impairment | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| The 6th generation AMOLED project - Chongqing | 31,013,623,277 | ? | - | ? | 31,013,623,277 | ? | 24,774,517,248 | ? | - | ? | 24,774,517,248 |
| Others | 12,446,773,478 | ? | 74,262,087 | ? | 12,372,511,391 | ? | 7,369,688,455 | ? | 44,493,824 | ? | 7,325,194,631 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 43,460,396,755 | ? | 74,262,087 | ? | 43,386,134,668 | ? | 32,144,205,703 | ? | 44,493,824 | ? | 32,099,711,879 |
????
????
In 2022, some of the engineering projects of the Group is idle and cannot be further used.The Group evaluated the residual values of these engineering projects and made a provisionfor impairment of RMB 29,768,263 based on the evaluation results.
(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 | ? | 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 2022 | ? | Interest rate for capitalisation in 2022 (%) | ? | Sources of funding | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||||
| The 6th generation AMOLED project - Chongqing | 46,500,000,000 | 24,774,517,248 | 6,243,115,489 | (4,009,460) | 31,013,623,277 | 70.04% | 624,014,961 | 438,224,219 | ? | 4.24% | ? | 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 | 5,539,522,787 | ? | 6,978,992,728 | ? | 1,676,849,060 | ? | 1,549,958,675 | ? | 15,745,323,250 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | 256,914,399 | ? | 8,532,419 | ? | 121,172,137 | ? | - | ? | 386,618,955 |
| - Transfers from construction in progress | - | ? | - | ? | 114,068,215 | ? | 112,297 | ? | 114,180,512 |
| Decrease due to disposal of subsidiaries | - | ? | (1,732,355,021) | ? | (17,486,779) | ? | (846,913,855) | ? | (2,596,755,655) |
| Disposals during the year | - | ? | - | ? | (548,585) | ? | - | ? | (548,585) |
| Translation differences | - | ? | (9,139,455) | ? | 947,362 | ? | 2,450,615 | ? | (5,741,478) |
| Written-down against interest discount | - | ? | (771,120) | ? | (120,528) | ? | (771,120) | ? | (1,662,768) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 5,796,437,186 | ? | 5,245,259,551 | ? | 1,894,880,882 | ? | 704,836,612 | ? | 13,641,414,231 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated amortisation | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 524,719,007 | ? | 2,613,841,165 | ? | 999,888,044 | ? | 397,376,628 | ? | 4,535,824,844 |
| Charge during the year | 135,495,338 | ? | 602,728,282 | ? | 198,089,822 | ? | 85,027,074 | ? | 1,021,340,516 |
| Decrease due to disposal of subsidiaries | - | ? | (652,040,647) | ? | (5,447,593) | ? | (204,670,848) | ? | (862,159,088) |
| Disposals during the year | - | ? | - | ? | (490,789) | ? | - | ? | (490,789) |
| Translation differences | - | ? | (2,483,639) | ? | 168,335 | ? | 886,909 | ? | (1,428,395) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 660,214,345 | ? | 2,562,045,161 | ? | 1,192,207,819 | ? | 278,619,763 | ? | 4,693,087,088 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount at the end of the year | 5,136,222,841 | ? | 2,683,214,390 | ? | 702,673,063 | ? | 426,216,849 | ? | 8,948,327,143 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount at the beginning of the year | 5,014,803,780 | ? | 4,365,151,563 | ? | 676,961,016 | ? | 1,152,582,047 | ? | 11,209,498,406 |
????
????
17 Goodwill
(1) Changes in goodwill
| Name of investee | ? | Balance at the beginning of the year | ? | Additions during the year | ? | Decrease due to disposal of subsidiaries | ? | 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 BOE Display Sci-tech Co., Ltd.. (Chengdu Display Sci-tech) | ? | 537,038,971 | ? | - | ? | - | ? | 537,038,971 |
| Nanjing BOE Display Technology Co., Ltd. | ? | 155,714,415 | ? | - | ? | - | ? | 155,714,415 |
| Hefei Jiangcheng Technology Co., Ltd. | ? | 9,391,961 | ? | - | ? | (9,391,961) | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | 1,610,939,732 | ? | - | ? | (715,798,782) | ? | 895,140,950 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Provision for impairment | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing BOE Optoelectronics Technology Co., Ltd. | ? | (4,423,876) | ? | - | ? | - | ? | (4,423,876) |
| BOE Healthcare Investment & Management Co., Ltd. | ? | (82,137,669) | ? | - | ? | - | ? | (82,137,669) |
| SES Imagotag SA Co., Ltd. | ? | (394,371,200) | ? | - | ? | 394,371,200 | ? | - |
| Chengdu BOE Display Sci-tech Co., Ltd.. (Chengdu Display Sci-tech) | ? | - | ? | (147,755,754) | ? | - | ? | (147,755,754) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | (480,932,745) | ? | (147,755,754) | ? | 394,371,200 | ? | (234,317,299) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | 1,130,006,987 | ? | (147,755,754) | ? | (321,427,582) | ? | 660,823,651 |
????
????
(2) Provision for impairment of goodwill
The recoverable amount of Beijing Yinghe Century Co., Ltd., Suzhou K-Tronics, BOEHealthcare Investment & Management Co., Ltd. (“Health Investment”), Chengdu Display Sci-tech and Nanjing BOE Display Technology Co., Ltd. is determined based on the presentvalue of expected future cash flows. When predicting the present value of cash flow, thecash 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 is determined with reference to comparable companies and relatedcapital structures.
As at 31 December 2022, as the present value of future cash flows of the asset group towhich Chengdu Display Sci-tech's goodwill belongs was lower than the carrying amount ofthe asset group, the Group made an impairment provision of RMB 147,755,754 for therelevant goodwill.
18 Long-term deferred expenses
| ? | Balance at 31December 2021 | ? | Additions during the year | ? | Decrease during the year | ? | Balance at 31December 2022 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Payment for public facilities construction and use | 51,962,118 | ? | - | ? | (10,800,827) | ? | 41,161,291 |
| Leasehold improvements | 10,325,942 | ? | 16,912,468 | ? | (7,807,977) | ? | 19,430,433 |
| Others | 574,242,442 | ? | 61,375,716 | ? | (139,268,505) | ? | 496,349,653 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 636,530,502 | ? | 78,288,184 | ? | (157,877,309) | ? | 556,941,377 |
????
????
19 Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets and liabilities
| ? | 2022 | ? | 2021 | ||||
| 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 | 151,264,910 | ? | 31,020,460 | ? | 113,867,486 | ? | 24,884,958 |
| Changes in fair value of investments in other equity instruments | 142,547,604 | ? | 21,382,141 | ? | 139,523,200 | ? | 20,928,480 |
| Depreciation of fixed assets | 239,415,255 | ? | 37,326,236 | ? | 201,462,125 | ? | 34,642,083 |
| Assessed value added by investing real estate in subsidiaries | 119,895,400 | ? | 29,973,850 | ? | 125,449,252 | ? | 31,362,313 |
| Accumulated losses | 459,130 | ? | 75,757 | ? | 422,990,806 | ? | 118,064,555 |
| Government grant | 143,385,420 | ? | 21,507,813 | ? | 209,807,147 | ? | 31,471,072 |
| Others | 59,695,684 | ? | 9,274,649 | ? | 306,215,006 | ? | 19,010,893 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 856,663,403 | ? | 150,560,906 | ? | 1,519,315,022 | ? | 280,364,354 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | (80,310,481) | ? | ? | ? | (90,028,830) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | 70,250,425 | ? | ? | ? | 190,335,524 |
?
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax liabilities: | ? | ? | ? | ? | ? | ? | ? |
| Revaluation due to business combinations involving entities not under common control | (882,129,374) | ? | (217,980,404) | ? | (2,197,597,331) | ? | (584,383,821) |
| Depreciation of fixed assets | (7,266,110,223) | ? | (1,094,970,944) | ? | (6,388,163,232) | ? | (984,779,332) |
| Long-term equity investments | (120,141,687) | ? | (18,021,253) | ? | (120,141,687) | ? | (18,021,253) |
| Others | (151,491,002) | ? | (23,744,713) | ? | (167,106,175) | ? | (28,467,297) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | (8,419,872,286) | ? | (1,354,717,314) | ? | (8,873,008,425) | ? | (1,615,651,703) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | 80,310,481 | ? | ? | ? | 90,028,830 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | (1,274,406,833) | ? | ? | ? | (1,525,622,873) |
????
(2) Details of unrecognised deferred tax assets
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Deductible temporary differences | 22,749,630,064 | ? | 24,215,956,667 |
| Deductible tax losses | 44,677,908,573 | ? | 19,433,679,291 |
| ? | ? | ? | ? |
| Total | 67,427,538,637 | ? | 43,649,635,958 |
????
????
As at 31 December 2022, the accumulated deductible temporary differences are mainlysubsidiaries’ impairment provisions of assets and accrual of expenses. Due to theuncertainty that there will be sufficient taxable income to cover these deductible differencesin future periods, the deferred income tax assets were not recognised in consideration ofprudence.
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
| Year | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| 2022 | ? | - | ? | 316,585,394 |
| 2023 | ? | 280,957,810 | ? | 290,518,573 |
| 2024 | ? | 451,137,106 | ? | 458,962,394 |
| 2025 | ? | 1,253,378,510 | ? | 1,276,919,825 |
| 2026 | ? | 1,473,908,686 | ? | 1,785,437,184 |
| 2027 | ? | 3,146,172,377 | ? | 14,979,073 |
| 2028 | ? | 2,279,355,553 | ? | 2,221,266,958 |
| 2029 | ? | 5,008,814,339 | ? | 5,296,070,440 |
| 2030 | ? | 4,196,348,029 | ? | 4,368,141,751 |
| 2031 | ? | 2,502,424,694 | ? | 2,406,109,565 |
| 2032 | ? | 23,569,766,818 | ? | -? |
| Others | (a) | 515,644,651 | ? | 998,688,134 |
| ? | ? | ? | ? | ? |
| Total | ? | 44,677,908,573 | ? | 19,433,679,291 |
????
????
(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
| ? | ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Surety | ? | 1,338,834,402 | ? | 1,339,517,936 |
| Prepayments for construction | ? | 153,690,890 | ? | 224,400,336 |
| Prepayment for fixed assets | ? | 148,834,349 | ? | 572,510,455 |
| VAT on tax credits | ? | - | ? | 3,424,055,815 |
| Deferred VAT for imported equipment | ? | 2,696,796 | ? | 1,407,330,930 |
| Others | ? | 311,464,947 | ? | 509,612,011 |
| ? | ? | ? | ? | ? |
| Total | ? | 1,955,521,384 | ? | 7,477,427,483 |
????
????
21 Short-term loans
| ? | 31 December 2022 | ||||||
| ? | ? | ? | ? | ? | ? | Credited/ collateralised | |
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | guaranteed/ pledged |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 901,622,500 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | 30,006,237 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 931,628,737 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Foreign currency bank loans | ? | ? | ? | ? | ? | ? | ? |
| - USD | 128,585,504 | ? | 6.9646 | ? | 895,546,601 | ? | Credited |
| - JPY | 205,792,620 | ? | 0.0524 | ? | 10,783,533 | ? | Credited |
| - HKD | 600,000,000 | ? | 0.8933 | ? | 535,980,000 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 1,442,310,134 | ? | ? |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 2,373,938,871 | ? | ? |
????
????
| ? | 31 December 2021 | ||||||
| ? | ? | ? | ? | ? | ? | Credited/ collateralised | |
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | guaranteed/ pledged |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 1,352,433,750 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | 140,148,195 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 1,492,581,945 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Foreign currency bank loans | ? | ? | ? | ? | ? | ? | ? |
| - USD | 83,382,510 | ? | 6.3757 | ? | 531,621,869 | ? | Credited |
| - JPY | 863,548,156 | ? | 0.0554 | ? | 47,853,518 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | 579,475,387 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 2,072,057,332 | ? | ? |
???
???
As at 31 December 2022, no short-term loan was past due (2021: Nil).
22 Bills payable
| ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Bank acceptance bills | 847,418,525 | ? | 663,001,350 |
| Commercial acceptance bills | 22,803,013 | ? | 164,956,681 |
| ? | ? | ? | ? |
| Total | 870,221,538 | ? | 827,958,031 |
????
????
There is no due but unpaid bill payable at the end of the year. The bills above are all duewithin one year.
23 Accounts payable
(1) The Group’s accounts payable by category are as follows:
| ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Payables to related parties | 179,047,266 | ? | 142,557,107 |
| Payables to third parties | 29,655,673,198 | ? | 32,313,273,587 |
| ? | ? | ? | ? |
| Total | 29,834,720,464 | ? | 32,455,830,694 |
????
????
(2) The Group’s accounts payable by currency are as follows:
| ? | 2022 | ? | 2021 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | 21,162,560,832 | ? | ? | ? | ? | ? | 23,743,766,250 |
| - USD | 1,146,041,405 | ? | 6.9646 | ? | 7,981,719,969 | ? | 1,093,846,298 | ? | 6.3757 | ? | 6,974,035,842 |
| - JPY | 9,299,005,433 | ? | 0.0524 | ? | 487,267,885 | ? | 10,050,541,520 | ? | 0.0554 | ? | 556,800,000 |
| - Other foreign currencies | ? | ? | ? | ? | 203,171,778 | ? | ? | ? | ? | ? | 1,181,228,602 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 29,834,720,464 | ? | ? | ? | ? | ? | 32,455,830,694 |
????
????
As at 31 December 2022, the Group had no significant accounts payable with ageing of morethan one year.
24 Advance payments received
| Item | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Advances from related parties | 188,623 | ? | 961,806 |
| Advances from third parties | 79,660,354 | ? | 145,178,278 |
| ? | ? | ? | ? |
| Total | 79,848,977 | ? | 146,140,084 |
????
????
25 Contract liabilities
| Item | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Sale of goods | 2,411,717,792 | ? | 3,765,081,554 |
???
???
Contract liabilities primarily relate to the Group’s advances from goods purchase and salecontracts. The Group receives a certain proportion of advances as agreed in contract whenentering into the contract with customers. The revenue related to the contracts will berecognised until the Group satisfies its performance obligation.
Significant changes in the contract liabilities of the Group are as follows:
| ? | 2022 |
| ? | RMB |
| ? | ? |
| Balance at the beginning of the year | 3,765,081,554 |
| ? | ? |
| Revenue recognised that was included in the contract liability balance at the beginning of year | (3,578,825,023) |
| Increase of contract liabilities due to cash received at the end of the year | 2,225,461,261 |
| ? | ? |
| Balance at the end of the year | 2,411,717,792 |
???
???
26 Employee benefits payable
(1) Employee benefits payable:
| ? | Note | Balance at 1 January 2022 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2022 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 5,098,605,495 | ? | 16,306,120,923 | ? | (18,748,357,070) | ? | 2,656,369,348 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 34,235,855 | ? | 1,643,219,063 | ? | (1,619,403,086) | ? | 58,051,832 |
| Termination benefits | ? | 313,887 | ? | 125,276,407 | ? | (21,478,651) | ? | 104,111,643 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 5,133,155,237 | ? | 18,074,616,393 | ? | (20,389,238,807) | ? | 2,818,532,823 |
????
????
| ? | Note | Balance at 1 January 2021 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2021 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 3,733,572,462 | ? | 18,689,911,958 | ? | (17,324,878,925) | ? | 5,098,605,495 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 21,628,033 | ? | 1,142,227,556 | ? | (1,129,619,734) | ? | 34,235,855 |
| Termination benefits | ? | 3,423,302 | ? | 26,091,251 | ? | (29,200,666) | ? | 313,887 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 3,758,623,797 | ? | 19,858,230,765 | ? | (18,483,699,325) | ? | 5,133,155,237 |
???
???
(2) Short-term employee benefits
| ? | Balance at 1 January 2022 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2022 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses, allowances | 4,304,276,089 | ? | 12,995,283,767 | ? | (15,610,071,500) | ? | 1,689,488,356 |
| Staff welfare | - | ? | 1,212,939,702 | ? | (1,212,939,702) | ? | - |
| Social insurance | 43,095,684 | ? | 780,825,248 | ? | (778,894,329) | ? | 45,026,603 |
| Medical insurance | 38,317,039 | ? | 720,094,785 | ? | (718,045,022) | ? | 40,366,802 |
| Work-related injury insurance | 2,583,340 | ? | 44,668,965 | ? | (44,821,987) | ? | 2,430,318 |
| Maternity insurance | 2,195,305 | ? | 16,061,498 | ? | (16,027,320) | ? | 2,229,483 |
| Housing fund | 33,089,973 | ? | 946,098,096 | ? | (949,389,930) | ? | 29,798,139 |
| Labour union fee, staff and workers’ education fee | 697,018,542 | ? | 370,534,929 | ? | (196,078,722) | ? | 871,474,749 |
| Staff bonus and welfare fund | 20,553,209 | ? | - | ? | - | ? | 20,553,209 |
| Other short-term employee benefits | 571,998 | ? | 439,181 | ? | (982,887) | ? | 28,292 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 5,098,605,495 | ? | 16,306,120,923 | ? | (18,748,357,070) | ? | 2,656,369,348 |
????
????
| ? | Balance at 1 January 2021 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2021 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses, allowances | 3,184,794,255 | ? | 15,851,656,348 | ? | (14,732,174,514) | ? | 4,304,276,089 |
| Staff welfare | - | ? | 1,087,174,457 | ? | (1,087,174,457) | ? | - |
| Social insurance | 32,667,412 | ? | 612,771,541 | ? | (602,343,269) | ? | 43,095,684 |
| Medical insurance | 29,551,408 | ? | 563,695,980 | ? | (554,930,349) | ? | 38,317,039 |
| Work-related injury insurance | 1,614,132 | ? | 32,393,361 | ? | (31,424,153) | ? | 2,583,340 |
| Maternity insurance | 1,501,872 | ? | 16,682,200 | ? | (15,988,767) | ? | 2,195,305 |
| Housing fund | 27,141,059 | ? | 679,488,225 | ? | (673,539,311) | ? | 33,089,973 |
| Labour union fee, staff and workers’ education fee | 467,724,919 | ? | 445,370,010 | ? | (216,076,387) | ? | 697,018,542 |
| Staff bonus and welfare fund | 20,553,209 | ? | - | ? | - | ? | 20,553,209 |
| Other short-term employee benefits | 691,608 | ? | 13,451,377 | ? | (13,570,987) | ? | 571,998 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 3,733,572,462 | ? | 18,689,911,958 | ? | (17,324,878,925) | ? | 5,098,605,495 |
???
???
(3) Post-employment benefits - defined contribution plans
| ? | Balance at 1 January 2022 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2022 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 30,284,940 | ? | 1,408,163,207 | ? | (1,401,435,524) | ? | 37,012,623 |
| Unemployment insurance | 906,583 | ? | 45,871,870 | ? | (45,457,632) | ? | 1,320,821 |
| Annuity | 3,044,332 | ? | 189,183,986 | ? | (172,509,930) | ? | 19,718,388 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 34,235,855 | ? | 1,643,219,063 | ? | (1,619,403,086) | ? | 58,051,832 |
????
????
| ? | Balance at 1 January 2021 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2021 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 19,052,829 | ? | 1,055,978,182 | ? | (1,044,746,071) | ? | 30,284,940 |
| Unemployment insurance | 1,110,934 | ? | 38,192,020 | ? | (38,396,371) | ? | 906,583 |
| Annuity | 1,464,270 | ? | 48,057,354 | ? | (46,477,292) | ? | 3,044,332 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 21,628,033 | ? | 1,142,227,556 | ? | (1,129,619,734) | ? | 34,235,855 |
???
???
27 Taxes payable
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Value-added tax | 142,337,422 | ? | 101,448,944 |
| Corporate income tax | 287,859,236 | ? | 1,266,575,648 |
| Individual income tax | 48,228,934 | ? | 58,763,365 |
| City construction tax | 428,525,949 | ? | 383,455,432 |
| Education surcharges and local education surcharges | 306,515,854 | ? | 274,382,851 |
| Others | 117,933,793 | ? | 115,623,065 |
| ? | ? | ? | ? |
| Total | 1,331,401,188 | ? | 2,200,249,305 |
????
????
28 Other payables
| ? | Note | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Interest payable | ? | 151,200 | ? | 126,701 |
| Dividends payable | ? | 6,410,514 | ? | 6,561,972 |
| Others | (1) | 19,625,661,555 | ? | 23,828,686,269 |
| ? | ? | ? | ? | ? |
| Total | ? | 19,632,223,269 | ? | 23,835,374,942 |
????
????
(1) Others
(a) The Group’s other payables by category are as follows:
| ? | Note | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Projects and equipment | ? | 13,185,841,311 | ? | 16,494,274,603 |
| Fund transaction (Note) | ? | 3,130,038,067 | ? | 3,077,116,568 |
| Deferred VAT for imported equipment | ? | 196,440,706 | ? | 927,825,520 |
| Repurchase obligation of restricted shares | V.39 | 753,440,228 | ? | 835,215,390 |
| Accrued water and electricity charges and freight | ? | 407,770,818 | ? | 348,955,956 |
| Security and deposits | ? | 505,702,125 | ? | 537,788,828 |
| External agency fee | ? | 172,851,477 | ? | 193,251,964 |
| Others | ? | 1,273,576,823 | ? | 1,414,257,440 |
| ? | ? | ? | ? | ? |
| Total | ? | 19,625,661,555 | ? | 23,828,686,269 |
????
????
The Group’s significant other payables aged over one year are payables of projectsand equipment.
Note: The other payables by the Group as at 31 December 2022 are amounts and
interests due to original controlling shareholders of Nanjing Display Technologyand Chengdu Display Sci-tech acquired in 2020, with interest rates of 2.175%and 0%.
(b) The Group’s other payables by currency are as follows:
| ? | 31 December 2022 | ? | 31 December 2021 | ||||||||
| ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| RMB | ? | ? | ? | ? | 13,336,886,237 | ? | ? | ? | ? | ? | 16,157,489,471 |
| USD | 736,000,871 | ? | 6.9646 | ? | 5,125,951,666 | ? | 857,826,112 | ? | 6.3757 | ? | 5,469,241,942 |
| JPY | 18,492,932,844 | ? | 0.0524 | ? | 969,029,681 | ? | 38,321,236,336 | ? | 0.0554 | ? | 2,122,996,493 |
| Other foreign currencies | ? | ? | ? | ? | 193,793,971 | ? | ? | ? | ? | ? | 78,958,363 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | 19,625,661,555 | ? | ? | ? | ? | ? | 23,828,686,269 |
????
????
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 due within one year, lease liabilities,long-term payables and contribution of non-controlling interests with redemption provisions.
| ? | ? | 31 December 2022 | ||||||
| ? | ? | ? | ? | ? | ? | ? | Credited/ collateralised | |
| ? | Note | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | guaranteed/ pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | ? | 117,008,022 | ? | Pledged |
| - RMB | ? | ? | ? | ? | ? | 11,356,508,048 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | ? | 94,144,290 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | ? | 5,528,984,741 | ? | Credited |
| - USD | ? | 694,159,756 | ? | 6.9646 | ? | 4,834,545,037 | ? | Collateralised |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | ? | 21,931,190,138 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Long-term payables | V.33 | ? | ? | ? | ? | 143,117,840 | ? | ? |
| Lease liabilities | V.60 | ? | ? | ? | ? | 118,302,766 | ? | ? |
| Contribution of non-controlling interests with redemption provisions | V.35 | ? | ? | ? | ? | 511,140,000 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | ? | 22,703,750,744 | ? | ? |
????
????
| ? | ? | 31 December 2021 | ||||||
| ? | ? | ? | ? | ? | ? | ? | Credited/ collateralised | |
| ? | Note | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | guaranteed/ pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | ? | 27,993,413 | ? | Pledged |
| - RMB | ? | ? | ? | ? | ? | 7,544,963,177 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | ? | 1,718,446 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | ? | 11,614,011,025 | ? | Credited |
| - USD | ? | 1,136,473,175 | ? | 6.3757 | ? | 7,245,812,022 | ? | Collateralised |
| - USD | ? | 63,796,480 | ? | 6.3757 | ? | 406,747,218 | ? | Guaranteed |
| - EUR | ? | 141,129,872 | ? | 7.2197 | ? | 1,018,915,337 | ? | Credited |
| - EUR | ? | 6,605,651 | ? | 7.2197 | ? | 47,690,819 | ? | Pledged |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | ? | ? | ? | ? | ? | 27,907,851,457 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Long-term payables | V.33 | ? | ? | ? | ? | 520,546,343 | ? | ? |
| Lease liabilities | V.60 | ? | ? | ? | ? | 92,788,055 | ? | ? |
| Contribution of non-controlling interests with redemption provisions | V.35 | ? | ? | ? | ? | 353,772,859 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | ? | 28,874,958,714 | ? | ? |
???
???
30 Other current liabilities
| Item | ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Warranty provisions | ? | 3,368,859,501 | ? | 3,595,808,261 |
| Refund liability | ? | 101,672,253 | ? | 141,997,964 |
| Pending output VAT | ? | 139,462,782 | ? | 216,565,073 |
| Others | ? | 3,973,137 | ? | 97,161,211 |
| ? | ? | ? | ? | ? |
| Total | ? | 3,613,967,673 | ? | 4,051,532,509 |
???
???
The other current liabilities of the Group were warranty provision. The warranty provisionmainly relates to the expected after-sales repair warranty to the customers. The provision isestimated by the Management, based on historical claim experience and current actual salesoutcomes.
31 Long-term loans
| ? | ? | 31 December 2022 | ||||||
| ? | ? | ? | ? | ? | ? | ? | Credited/ collateralised | |
| ? | Note | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | guaranteed/ pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | ? | 1,058,900,427 | ? | Pledged |
| - RMB | ? | ? | ? | ? | ? | 49,363,519,760 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | ? | 4,326,076,807 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | ? | 58,386,326,488 | ? | Credited |
| - USD | ? | 4,586,027,388 | ? | 6.9646 | ? | 31,939,846,346 | ? | Collateralised |
| Less: Long-term loans due within one year | V.29 | ? | ? | ? | ? | 21,931,190,138 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | ? | 123,143,479,690 | ? | ? |
????
| ? | ? | 31 December 2021 | ||||||
| ? | ? | ? | ? | ? | ? | ? | Credited/ collateralised | |
| ? | Note | Amount in original currency | ? | Exchange rate | ? | RMB/RMB equivalents | ? | guaranteed/ pledged |
| Bank loans | ? | ? | ? | ? | ? | ? | ? | ? |
| - RMB | ? | ? | ? | ? | ? | 537,167,163 | ? | Pledged |
| - RMB | ? | ? | ? | ? | ? | 54,546,276,790 | ? | Collateralised |
| - RMB | ? | ? | ? | ? | ? | 3,703,662,752 | ? | Guaranteed |
| - RMB | ? | ? | ? | ? | ? | 46,573,377,423 | ? | Credited |
| - USD | ? | 5,747,119,917 | ? | 6.3757 | ? | 36,641,912,455 | ? | Collateralised |
| - USD | ? | 101,494,400 | ? | 6.3757 | ? | 647,097,846 | ? | Guaranteed |
| - EUR | ? | 12,407,013 | ? | 7.2197 | ? | 89,574,912 | ? | Pledged |
| - EUR | ? | 172,784,008 | ? | 7.2197 | ? | 1,247,448,703 | ? | Credited |
| Less: Long-term loans due within one year | V.29 | ? | ? | ? | ? | 27,907,851,457 | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | ? | ? | ? | 116,078,666,587 | ? | ? |
???
???
32 Debentures payable
(1) Debentures payable
| Item | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Debentures payable | - | ? | 359,586,437 |
| Less: Debentures payable due within one year | - | ? | - |
| ? | ? | ? | ? |
| Total | - | ? | 359,586,437 |
????
????
(2) The movements of debenture 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 | ? | Decrease due to disposal of subsidiaries | ? | Translation differences | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Euro PP | EUR 10,000,000 | ? | 2016.12.29 | ? | 7 years | ? | EUR 10,000,000 | ? | 71,955,154 | ? | - | ? | 2,268,020 | ? | 95,736 | (76,355,057) | ? | 2,036,147 | ? | - | |
| Euro PP | EUR 30,000,000 | ? | 2017.03.29 | ? | 6 years | ? | EUR 30,000,000 | ? | 216,118,687 | ? | - | ? | 6,804,060 | ? | 353,720 | (229,394,798) | ? | 6,118,331 | ? | - | |
| Euro PP | EUR 10,000,000 | ? | 2019.07.22 | ? | 6 years | ? | EUR 10,000,000 | ? | 71,512,596 | ? | - | ? | 2,948,426 | ? | 158,190 | (76,678,281) | ? | 2,059,069 | ? | - | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Total | ? | ? | ? | ? | ? | ? | ? | ? | 359,586,437 | ? | - | ? | 12,020,506 | ? | 607,646 | (382,428,136) | ? | 10,213,547 | ? | - |
????
????
SES Imagotag SA Co., Ltd. (“SES”) issued two private placement bonds with a total face value of Euro 40 million to institutional investors on 29December 2016 and 29 March 2017. The coupon rate of the bonds is 3.50% and the maturity date is 29 December 2023. Interest payments aremade annually and the principle amount will be paid when the bonds become due.
SES 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 thebond is 4.55% and the maturity date is 22 July 2025. Interest payments are made annually, and the principle amount will be paid when the bondbecomes due.
33 Long-term payables
| Item | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Obligations under finance leases | 372,704,917 | ? | 1,427,139,181 |
| Less: Obligations under finance leases due within one year | 143,117,840 | ? | 520,546,343 |
| ? | ? | ? | ? |
| Total | 229,587,077 | ? | 906,592,838 |
????
????
As at 31 December 2022, the Group sold and leased back some of its machinery andequipment and construction in progress. Since asset sales and lease transactions areinterrelated, and it is almost certain that they will be repurchased after the lease term expires,the Group conducts accounting treatment according to mortgage loans and presents them aslong-term payables.
34 Deferred income
| Item | Balance at the beginning of the year | ? | Additions during the year | ? | Amounts recognised in other income | ? | Other changes | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Related to assets | 3,865,273,297 | ? | 704,986,506 | ? | (739,587,184) | ? | (32,283,470) | ? | 3,798,389,149 |
| Related to income | 2,550,816,314 | ? | 2,610,333,056 | ? | (3,781,917,899) | ? | (21,273,288) | ? | 1,357,958,183 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 6,416,089,611 | ? | 3,315,319,562 | ? | (4,521,505,083) | ? | (53,556,758) | ? | 5,156,347,332 |
????
????
35 Other non-current liabilities
| Item | Note | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Contribution of non-controlling interests with redemption provisions | (1) | 2,499,075,805 | ? | 3,020,160,654 |
| Deferred VAT for imported equipment | ? | - | ? | 479,505,410 |
| Others | ? | - | ? | 36,143,812 |
| ? | ? | ? | ? | ? |
| Total | ? | 2,499,075,805 | ? | 3,535,809,876 |
????
????
(1) Contribution of non-controlling interests with redemption provisions
The contribution of non-controlling interests with redemption provisions is mainly due to theredemption obligation of the Company to the non-controlling interests of Fuzhou BOE. TheCompany recognises the above non-controlling interests contribution as a financial liabilitywhich is subsequently measured at the cost of amortisation.
The Company has an obligation to repurchase part of the equity of non-controlling interestsof its subsidiary Fuzhou BOE on 29 September 2023, with the repurchase principal of RMB500,000,000, and the Company recognised the principal and interest of the financial liabilitiesfor the redemption obligation to non-current liabilities due within one year (Note V.29).
36 Share capital
| ? | Balance at the beginning of the year | ? | Changes during the year | ? | Balance at the end of the year | ||||
| ? | ? | ? | Issuance of new shares | ? | Cancellation of treasury shares | ? | Sub-total | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total shares | 38,445,746,482 | ? | - | ? | (249,383,061) | ? | (249,383,061) | ? | 38,196,363,421 |
????
????
On 20 September 2022, the Company repurchased and cancelled 243,229,361 domesticallylisted foreign shares (B shares) at China Securities Depository and Clearing CorporationLimited Shenzhen Branch. After the repurchase and cancellation, the total share capital ofthe Company changed from 38,445,746,482 to 38,202,517,121 shares.
On 14 October 2022, the Company repurchased and cancelled 6,153,700 shares ofrestricted shares at China Securities Depository and Clearing Corporation Limited ShenzhenBranch. After the repurchase and cancellation, the total share capital of the Companychanged from 38,202,517,121 to 38,196,363,421 shares.
37 Other equity instruments
(1) Financial instruments (including perpetual bonds) that remain outstanding at the end of the
year are set out as follows:
| Outstanding financial instruments | Issuance date | ? | Accounting classification | ? | Interest rate | ? | Issuance price | ? | Quantity | ? | Amount | ? | Maturity date or renewal status | ? | Conditions for conversion | ? | Conversion status |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 20BOEY1 | 28 February 2020 | ? | Equity instrument | ? | 3.64% | ? | RMB 100/bond | ? | 20 million | ? | RMB 2 billion | ? | 3+N years | ? | Not applicable | ? | Not applicable |
| 20BOEY2 | 19 March 2020 | ? | Equity instrument | ? | 3.54% | ? | RMB 100/bond | ? | 20 million | ? | RMB 2 billion | ? | 3+N years | ? | Not applicable | ? | Not applicable |
| 20BOEY3 | 27 April 2020 | ? | Equity instrument | ? | 3.50% | ? | RMB 100/bond | ? | 20 million | ? | RMB 2 billion | ? | 3+N years | ? | Not applicable | ? | Not applicable |
| 22BOEY1 | 25 March 2022 | ? | Equity instrument | ? | 3.50% | ? | RMB 100/bond | ? | 20 million | ? | RMB 2 billion | ? | 3+N years | ? | Not applicable | ? | Not applicable |
| Total | ? | ? | ? | ? | ? | ? | ? | ? | 80 million | ? | RMB 8 billion | ? | ? | ? | ? | ? | ? |
????
????
(2) Major terms:
On 29 October 2019, with the approval document No. 1801 [2019] of the China SecuritiesRegulatory Commission (“CSRC”), the Company successfully issued a renewable corporatebond to qualified investors. The full name of the bond was Renewable Corporate BondPublicly Issued by BOE Technology Group Co., Ltd. (to qualified investors) in 2019 (the FirstPhase), which referred to as 19BOEY1 (“2019 bond”); on 28 February 2020, 19 March 2020and 27 April 2020, the Company issued renewable corporate bonds to qualified investors.The full name of these bonds was Renewable Corporate Bond Publicly Issued by BOETechnology Group Co., Ltd. (to qualified investors) in 2020, which referred to as 20BOEY1,20BOEY2, 20BOEY3 respectively (“2020 bond”); On March 25, 2022, the Company issuedrenewable corporate bonds to qualified investors. The full name of these bonds wasRenewable Corporate Bond Publicly Issued by BOE Technology Group Co., Ltd. (digitaleconomy) in 2022 (the First Phase), which referred to as 22BOEY1 (“2022 bond”).
Both 2019 bond, 2020 bond and 2022 bond have a base term of 3 years and take everythree interest-bearing years as a period. The Company is entitled to choose to extend thematurity by 1 period at the end of the agreed base term or at the end of each extendedperiod, or choose to fully redeem the 2019 bond, 2020 bond and 2022 bond at the end of theperiod. The nominal interest rate of the 2019 bond, 2020 bond and 2022 bond is fixed duringthe first period, and then is reset once every period. The nominal interest rate in the firstperiod is the initial benchmark interest rate plus the initial spread, and the nominal interestrate in the subsequent period is adjusted to the current benchmark interest rate plus theinitial spread and 300 basis points. Therefore, when the Company exercises the renewaloption, the nominal interest rate will significantly increase, and the corresponding nominalinterest will also increase sharply. The 2019 bond, 2020 bond and 2022 bond have anissuer’s right to defer the payment of interest. Unless a mandatory interest payment eventoccurs (including distributions to ordinary shareholders and decrease of registered capital).At each interest payment date of the bonds, the Company may choose at its discretionwhether to defer the payment of the current interest as well as all the deferred interests andthe yields under this term until the next interest payment date without being subjected to anylimit on the number of interest deferring attempts.
The 2019 bond with a three-year issuance period will expire on 28 October 2022. TheCompany has decided not to exercise the bond issuer’s option to renew the bond and haspaid the principal and interest of the bond in full. As at 31 December 2022, the actualissuance of the 2020 bond and 2022 bond amounted to RMB 8,000,000,000 in total, and theCompany considers that the renewable corporate bonds do not meet the definition offinancial liabilities, and therefore will charge the total amount of the issuance to other equityinstruments after deducting underwriting fees and other transaction costs.
(3) Movement of the financial instruments (including perpetual bonds) that remain outstanding at
the end of the year:
| Outstanding financial instruments | At the beginning of the year | Additions during the year | Decrease during the year | Accumulated interest | ? | At the end of the year | ||||||||||||
| Quantity | Carrying amount | Quantity | Carrying amount | Quantity | Carrying amount | Charge for the year | ? | Paid during the year | Quantity | ? | Carrying amount | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||||||
| 19BOEY1 | 80,000,000 | 8,014,033,565 | - | - | (80,000,000) | (7,957,047,264) | 263,013,699 | (320,000,000) | - | - | ||||||||
| 20BOEY1 | 20,000,000 | 2,050,610,478 | - | - | - | - | 72,800,000 | (72,800,000) | 20,000,000 | 2,050,610,478 | ||||||||
| 20BOEY2 | 20,000,000 | 2,045,184,865 | - | - | - | - | 70,800,000 | (70,800,000) | 20,000,000 | 2,045,184,865 | ||||||||
| 20BOEY3 | 20,000,000 | 2,037,168,519 | - | - | - | - | 70,000,000 | (70,000,000) | 20,000,000 | 2,037,168,519 | ||||||||
| 22BOEY1 | - | - | 20,000,000 | 1,989,320,755 | - | - | 54,082,191 | - | 20,000,000 | 2,043,402,946 | ||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||||||||
| Total | 140,000,000 | 14,146,997,427 | 20,000,000 | 1,989,320,755 | (80,000,000) | (7,957,047,264) | 530,695,890 | (533,600,000) | 80,000,000 | 8,176,366,808 | ||||||||
????
????
(4) Relevant information of amounts attributable to holders of equity instruments:
| ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Attributable to shareholders of the Company | 136,089,410,395 | ? | 143,204,240,947 |
| - Equity attributable to ordinary shareholders of the Company | 127,913,043,587 | ? | 129,057,243,520 |
| - Equity attributable to holders of the Company’s other equity instruments | 8,176,366,808 | ? | 14,146,997,427 |
| Equity attributable to non-controlling shareholders | 65,960,886,731 | ? | 74,174,525,569 |
| - Equity attributable to non-controlling ordinary shareholders | 65,960,886,731 | ? | 74,174,525,569 |
| - Equity attributable to non-controlling shareholders of other equity instruments | - | ? | - |
????
????
(5) Accrued interest on holders of other equity instruments
In 2022, as the above-mentioned issued renewable corporate bonds are cumulative otherequity instruments, the Company accrued interest of RMB 530,695,890 on renewablecorporate bonds from undistributed profits and paid interest of RMB 533,600,000 onrenewable corporate bonds.
38 Capital reserve
| Item | Note | Share premium | ? | Other capital reserves | ? | Total |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 53,380,787,828 | ? | 536,821,266 | ? | 53,917,609,094 |
| Add: Changes in shareholding ratio of subsidiaries | ? | 1,135,268,806 | ? | - | ? | 1,135,268,806 |
| Equity-settled share-based payment | XI | - | ? | 654,336,707 | ? | 654,336,707 |
| Other movements in equity of associates | V.10 | - | ? | 274,685,689 | ? | 274,685,689 |
| Cancellation of treasury shares | ? | (641,811,942) | ? | - | ? | (641,811,942) |
| Others | ? | (42,952,736) | ? | (78,631,226) | ? | (121,583,962) |
| ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 53,831,291,956 | ? | 1,387,212,436 | ? | 55,218,504,392 |
????
????
39 Treasury shares
| Item | Balance at the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Treasury shares | 3,415,768,207 | ? | 1,048,154,539 | ? | (955,720,835) | ? | 3,508,201,911 |
???
???
According to the Proposal of Repurchase of Certain Domestically Listed Foreign Shares (Bshares) by the Company deliberated on an item-by-item basis and adopted in the 39thmeeting of the ninth session of the Board of Directors held on 30 March 2022 and the 2021annual general meeting of shareholders held on 28 April 2022, the Company repurchased itsshares through centralised price bidding transactions with a designated securities account forrepurchase. The Company has repurchased the first batch of shares on 27 June 2022. Bythe delivery date 2 September 2022, the Company repurchased 243,229,361 B shares intotal by paying total consideration of RMB 856,052,540. On 20 September 2022, theCompany completed the repurchase and cancellation procedures at China SecuritiesDepository and Clearing Corporation Limited Shenzhen Branch. The shortfall between thecancelled treasury shares and the share capital of RMB 612,823,179 is deducted fromCapital reserve - Share premium.
According to the Proposal of Repurchase of Certain Public Shares by the Companydeliberated and adopted in the thirty-first meeting of the ninth session of the Board ofDirectors meeting held on 27 August 2021, the Company is allowed to use its own funds torepurchase certain of its shares through centralised price bidding transactions. The Companyrepurchased the shares for the first time on 2 September 2021. The Company hasrepurchased its shares by centralised price bidding transactions with a designated securitiesaccount for repurchase during 2022. The Company repurchased 39,580,919 A shares in totalby paying total consideration of RMB 192,101,999.
According to the Proposal of Repurchase and Cancellation of Certain Restricted Shares bythe Company deliberated and adopted in the fifth meeting of the tenth session of the Boardof Directors meeting held on 26 August 2022, the Company completed repurchase andcancellation of 6,153,700 restricted shares before 14 October 2022 at an averagerepurchased price of RMB 5.71/share. The corresponding reduction of the treasury sharesare RMB 35,142,463, the shortfall between the cancelled treasury shares and the sharecapital of RMB 28,988,763 is deducted against Capital reserve—Share premium.
In 2022, the Company recognised RMB 64,525,832 of restricted share dividends againstOther payables—the Repurchased obligation of restricted shares (Note V. 28) and Treasuryshares.
40 Other comprehensive income
| ? | ? | ? | Movements during the year | ? | ? | ||||||||||
| Item | Balance at the end of previous year attributable to shareholders of the Company | ? | Before-tax amount | ? | Less: Income tax expenses | ? | Less: Amount transferred from other comprehensive income to profit or loss | ? | Net-of-tax amount attributable to shareholders of the Company | ? | Net-of-tax amount attributable to non-controlling interests | ? | Less: Transfer of other comprehensive income to retained earnings | ? | Balance at the end of the year attributable to shareholders of the Company |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||
| Items that will not be reclassified to profit or loss | 34,424,335 | ? | (133,368,736) | (453,661) | ? | - | ? | (132,915,075) | - | ? | 22,781,941 | ? | (121,272,681) | ||
| Including: Other comprehensive income recognised under equity method | 207,633,206 | ? | (53,367,649) | - | ? | - | ? | (53,367,649) | - | ? | 32,873,780 | ? | 121,391,777 | ||
| Changes in fair value of investments in other equity instruments | (173,208,871) | ? | (80,001,087) | (453,661) | ? | - | ? | (79,547,426) | - | ? | (10,091,839) | ? | (242,664,458) | ||
| Items that may be reclassified to profit or loss | 79,126,812 | ? | (1,011,198,322) | - | ? | 13,903,395 | ? | (1,031,622,161) | 6,520,444 | ? | - | ? | (952,495,349) | ||
| Including: Other comprehensive income recognised under equity method | (284,718) | ? | 63,317 | - | ? | (64,550) | ? | 127,867 | - | ? | - | ? | (156,851) | ||
| Translation differences arising from translation of foreign currency financial statements | 79,411,530 | ? | (1,011,261,639) | - | ? | 13,967,945 | ? | (1,031,750,028) | 6,520,444 | ? | - | ? | (952,338,498) | ||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||
| Total | 113,551,147 | ? | (1,144,567,058) | (453,661) | ? | 13,903,395 | ? | (1,164,537,236) | 6,520,444 | ? | 22,781,941 | ? | (1,073,768,030) | ||
?
?
?
41 Surplus reserve
| Item | Balance at the beginning of the year | ? | Additions during the year | ? | Others changes during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Statutory surplus reserve | 2,599,918,896 | ? | 348,186,351 | ? | 3,287,378 | ? | 2,951,392,625 |
| Discretionary surplus reserve | 289,671,309 | ? | - | ? | - | ? | 289,671,309 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,889,590,205 | ? | 348,186,351 | ? | 3,287,378 | ? | 3,241,063,934 |
????
????
42 Retained earnings
| Item | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| Retained earnings at the beginning of the year (before adjustment) | ? | 37,106,514,799 | ? | 15,509,794,622 |
| Total adjustments for opening retained earnings (“+” for increase; “-” for decrease) | - | ? | 35,577,201 | |
| Retained earnings at the beginning of the year (after adjustment) | ? | 37,106,514,799 | ? | 15,545,371,823 |
| Add: Net profits for the year attributable to shareholders of the Company | ? | 7,550,877,790 | ? | 25,960,751,646 |
| Less: Appropriation for statutory surplus reserve | ? | 348,186,351 | ? | 439,649,657 |
| Interest on holders of other equity instruments | V.37 | 530,695,890 | ? | 533,600,000 |
| Dividends to ordinary shares | ? | 7,958,923,130 | ? | 3,476,073,919 |
| Transfer of other comprehensive income to retained earnings | (a) | (19,494,563) | ? | (49,714,906) |
| ? | ? | ? | ? | ? |
| Retained earnings at the end of the year | ? | 35,839,081,781 | ? | 37,106,514,799 |
????
????
According to the Annual Shareholders’ Meeting for 2021 held on 28 April 2022, the Companydistributed cash dividends to shareholders of A shares and B shares on 30 May 2022 (Ashares) and 1 June 2022 (B shares), with RMB 2.1 (2021: RMB 1) every 10 shares and aprofit distribution amount of RMB 7,961,342,043. Considering the turnover rate, thecorresponding dividends of the expected non-exercisable portions of restricted shares areRMB 2,418,913 with a profit distribution of RMB 7,958,923,130 (2021: RMB 3,476,073,919).
As at 31 December 2022, the consolidated retained earnings attributable to the Companyincluded appropriation to surplus reserves made by the Company’s subsidiaries amountingto RMB 6,206,465,315 (2021: RMB 5,488,720,290).
(a) The amounts both transferred from other comprehensive income to retained earnings
which is associates’ gains from disposal of other equity instrument investmentsincluded in retained earnings and changes in the fair value of other equity instrumentinvestments are carried out to retained earnings in 2022 are RMB 19,494,563 (2021:
RMB 49,714,906).
43 Operating income and operating costs
| ? | 2022 | ? | 2021 | ||||
| Item | Income | ? | Cost | ? | Income | ? | Cost |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Principal activities | 174,113,214,324 | ? | 154,442,890,090 | ? | 217,251,896,977 | ? | 155,258,379,475 |
| Other operating activities | 4,300,516,855 | ? | 3,087,676,062 | ? | 3,783,821,035 | ? | 2,040,446,306 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 178,413,731,179 | ? | 157,530,566,152 | ? | 221,035,718,012 | ? | 157,298,825,781 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Including: Revenue from contracts with customers | 177,667,655,331 | ? | 157,352,470,042 | ? | 220,166,407,207 | ? | 157,114,068,547 |
| Other income - Leases | 746,075,848 | ? | 178,096,110 | ? | 869,310,805 | ? | 184,757,234 |
????
????
Information on income of principal activities has been included in Note XIV.
Revenue and the related costs of the Group's sales before intended use are as follows:
Relating to ordinary activities:
| ? | 2022 | ? | 2021 |
| Operating income | 1,407,856,936 | ? | 1,725,918,507 |
| Operating costs | 1,514,976,278 | ? | 1,313,600,486 |
?
?
44 Taxes and surcharges
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Property tax | 561,061,660 | ? | 502,150,698 |
| City maintenance and construction tax | 268,999,607 | ? | 386,889,711 |
| Education surcharges and local education surcharges | 193,572,818 | ? | 278,848,244 |
| Stamp duty | 167,033,833 | ? | 168,092,921 |
| Land use tax | 50,378,527 | ? | 49,797,281 |
| Others | 34,124,894 | ? | 38,426,971 |
| ? | ? | ? | ? |
| Total | 1,275,171,339 | ? | 1,424,205,826 |
????
????
45 Selling and distribution expenses
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Warranty provisions | 2,390,095,031 | ? | 3,417,085,420 |
| Staff costs | 1,112,021,277 | ? | 1,350,848,641 |
| Share-based payments | 97,853,078 | ? | 75,191,185 |
| Others | 633,320,911 | ? | 641,464,732 |
| ? | ? | ? | ? |
| Total | 4,233,290,297 | ? | 5,484,589,978 |
????
????
46 General and administrative expenses
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Staff costs | 3,251,030,370 | ? | 3,810,075,453 |
| Repair expense | 68,934,663 | ? | 94,713,646 |
| Depreciation and amortisation | 971,573,303 | ? | 931,978,993 |
| Share-based payments | 238,162,832 | ? | 218,406,816 |
| Others | 1,717,935,838 | ? | 1,638,198,681 |
| ? | ? | ? | ? |
| Total | 6,247,637,006 | ? | 6,693,373,589 |
????
????
47 Research and development expenses
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Staff costs | 4,601,448,025 | ? | 5,065,671,981 |
| Material expenses | 1,907,254,468 | ? | 1,678,488,408 |
| Depreciation and amortisation | 2,000,893,037 | ? | 1,913,242,133 |
| Share-based payments | 269,690,937 | ? | 241,880,815 |
| Others | 2,321,482,210 | ? | 1,717,142,990 |
| ? | ? | ? | ? |
| Total | 11,100,768,677 | ? | 10,616,426,327 |
????
????
48 Financial expenses
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Interest expenses from loans | 4,033,749,371 | ? | 5,219,339,546 |
| Less: Borrowing costs capitalised | 461,537,933 | ? | 352,561,213 |
| Interest income from bank deposits | (1,483,022,892) | ? | (1,050,431,325) |
| Exchange losses / (gains) | 258,458,498 | ? | (248,019,022) |
| Other financial expenses | 97,483,531 | ? | 114,051,216 |
| ? | ? | ? | ? |
| Total | 2,445,130,575 | ? | 3,682,379,202 |
????
????
The interest rate per annum, at which the borrowing costs were capitalised by the Group,was 3.25% - 4.25% (2021: 0.76% - 3.24%) for the year.
49 Other income
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Government grants related to assets | 739,587,184 | ? | 507,320,798 |
| Government grants related to income | 4,717,326,643 | ? | 1,567,752,188 |
| Others | 28,615,497 | ? | 17,692,742 |
| ? | ? | ? | ? |
| Total | 5,485,529,324 | ? | 2,092,765,728 |
????
????
The amount of government subsidies related to income received by the Group in 2022 anddirectly included in other income was RMB 935,408,744.
50 Investment income
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| Income from long-term equity investments accounted for using the equity method | V.10 | 528,103,680 | ? | 1,245,036,895 |
| Investment income from disposal of long-term equity investments | VI.1? | 829,872,568 | ? | 37,327,797 |
| Dividend income from investments in other equity instruments | V.11 | 35,354,468 | ? | 24,695,749 |
| Including: Dividend income from investments in other equity instruments held at the balance sheet date | ? | 35,354,468 | ? | 24,695,749 |
| Investment income from disposal of financial assets held for trading | ? | 116,153,975 | ? | 36,689,179 |
| Investment income from disposal of debt investments | ? | - | ? | 3,739,725 |
| Gains from remeasurement of remaining equity interests to fair value upon loss of control | VI.1 | 4,266,631,856 | ? | - |
| Others | ? | 318,151,337 | ? | - |
| ? | ? | ? | ? | ? |
| Total | ? | 6,094,267,884 | ? | 1,347,489,345 |
????
????
51 Gains from changes in fair value
| Item | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Financial assets held for trading | 159,344,584 | ? | 84,966,963 |
????
????
52 Credit losses
| Item | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Accounts receivable | 49,897,296 | ? | 28,250,160 |
| Other receivables | 1,679,930 | ? | 159,709 |
| ? | ? | ? | ? |
| Total | 51,577,226 | ? | 28,409,869 |
????
????
53 Impairment losses
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Impairment losses of inventories | 6,975,372,718 | ? | 3,437,630,440 |
| Impairment losses of fixed assets | 143,071,492 | ? | 675,831,912 |
| Impairment losses of construction in progress | 29,768,263 | ? | 83,037,514 |
| Impairment losses of long-term equity investments | 8,503,403 | ? | 2,009,770 |
| Impairment losses of goodwill | 147,755,754 | ? | 279,742,216 |
| ? | ? | ? | ? |
| Total | 7,304,471,630 | ? | 4,478,251,852 |
????
????
54 Gains from asset disposals
| Item | 2022 | ? | 2021 | ? | Amount recognised in extraordinary gain and loss in 2022 |
| ? | ? | ? | ? | ? | ? |
| Gains from the disposal of assets held for sale | - | ? | 156,565,635 | ? | - |
| Gains / (losses) from disposal of fixed assets | 7,963,317 | ? | (4,596,757) | ? | 7,963,317 |
| Gains from disposal of intangible assets | - | ? | 29,726 | ? | - |
| Losses from disposal of construction in progress | - | ? | (94,570) | ? | - |
| Gains from disposal of right-of-use assets | 3,002,239 | ? | 1,601,757 | ? | 3,002,239 |
| ? | ? | ? | ? | ? | ? |
| Total | 10,965,556 | ? | 153,505,791 | ? | 10,965,556 |
????
????
55 Non-operating income and non-operating expenses
(1) Non-operating income by item is as follows:
| Item | 2022 | ? | 2021 | ? | Amount recognised in extraordinary gain and loss in 2022 |
| ? | ? | ? | ? | ? | ? |
| Government grants | 1,751,445 | ? | 2,464,320 | ? | 1,751,445 |
| Others | 161,491,412 | ? | 129,143,626 | ? | 161,491,412 |
| ? | ? | ? | ? | ? | ? |
| Total | 163,242,857 | ? | 131,607,946 | ? | 163,242,857 |
????
????
Government grants recognised in profit or loss for the current period
| Item | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Policy incentives and others | 1,751,445 | ? | 2,464,320 |
???
???
(2) Non-operating expenses
| ? | 2022 | ? | 2021 | ? | Amount recognised in extraordinary gain and loss in 2022 |
| ? | ? | ? | ? | ? | ? |
| Donations provided | 28,491,697 | ? | 4,901,023 | ? | 28,491,697 |
| Losses from scrapping of non-current assets | 17,322,542 | ? | 18,096,305 | ? | 17,322,542 |
| Others | 41,435,304 | ? | 32,217,774 | ? | 41,435,304 |
| ? | ? | ? | ? | ? | ? |
| Total | 87,249,543 | ? | 55,215,102 | ? | 87,249,543 |
????
????
56 Income tax expenses
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| Current tax expense based on tax law and regulations | ? | 1,675,605,623 | ? | 4,072,640,975 |
| Changes in deferred tax assets/liabilities | (1) | 112,788,484 | ? | 115,330,429 |
| ? | ? | ? | ? | ? |
| Total | ? | 1,788,394,107 | ? | 4,187,971,404 |
????
????
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Origination and reversal of temporary differences | 112,788,484 | ? | 115,330,429 |
????
????
(2) Reconciliation between income tax expenses and accounting profit:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Profit before taxation | 51,218,939 | ? | 35,084,376,259 |
| Expected income tax expenses at tax rate of 15% | 7,682,841 | ? | 5,262,656,439 |
| Add: Effect of different tax rates applied by subsidiaries | (14,751,718) | ? | 54,451,529 |
| Effect of non-deductible costs, expenses and losses | 315,429,605 | ? | 236,708,708 |
| Tax effect of weighted deduction and tax preference | (2,652,168,644) | ? | (1,428,917,005) |
| Utilisation of prior year tax losses | (49,695,309) | ? | (1,690,731,054) |
| Tax effect of deductible losses of deferred tax assets not recognised | 4,456,877,895 | ? | 815,217,892 |
| Tax effect of deductible temporary differences of deferred tax assets not recognised | (274,980,563) | ? | 1,006,609,982 |
| Effects of tax rate changes on deferred tax | -? | ? | (68,025,087) |
| ? | ? | ? | ? |
| Income tax expenses | 1,788,394,107 | ? | 4,187,971,404 |
????
????
In accordance with the Announcement of the Ministry of Finance, the State TaxationAdministration and the Ministry of Science and Technology on Increasing Efforts for Pre-taxDeduction to Support Scientific and Technological Innovation (Announcement [2022] No.28of the Ministry of Finance and the State Taxation Administration), high-tech enterprises areallowed to deduct the full amount of equipment and appliances newly purchased during theperiod from 1 October 2022 to 31 December 2022 from the taxable income amount on a one-off basis in the current year and allowed to conduct 100% weighted deduction before tax.
57 Basic earnings per share and diluted earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable toordinary shareholders of the Company by the weighted average number of ordinary sharesoutstanding. The Group does not have any potential dilutive ordinary shares for the listedyears.
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Consolidated net profit attributable to shareholders of the Company | 7,550,877,790 | ? | 25,960,751,646 |
| Less: Current interest of other equity instruments | 530,695,890 | ? | 533,600,000 |
| Less: Current dividends of restricted shareholders | 64,525,832 | ? | 31,234,036 |
| Consolidated net profit attributable to ordinary shareholders of the Company | 6,955,656,068 | ? | 25,395,917,610 |
| Weighted average number of ordinary shares outstanding (shares) | 37,502,641,911 | ? | 35,704,986,088 |
| Basic earnings per share (RMB/share) | 0.19 | ? | 0.71 |
????
????
Weighted average number of ordinary shares is calculated as follows:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Issued ordinary shares at the beginning of the year | 37,638,356,849 | ? | 34,448,398,830 |
| Add: Weighted average number of ordinary shares issued in current period | - | ? | 1,330,137,380 |
| Less: Weighted average number of ordinary shares repurchased in current period | 135,714,938 | ? | 73,550,122 |
| ? | ? | ? | ? |
| Weighted average number of ordinary shares at the end of the year | 37,502,641,911 | ? | 35,704,986,088 |
???
???
58 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
| ? | 2022 | 2021 | |
| ? | ? | ? | |
| (a) Reconciliation of net (loss) / profit to cash flows from operating activities: | ? | ? | |
| ? | ? | ? | |
| Net (loss) / profit | (1,737,175,168) | 30,896,404,855 | |
| Add: Credit losses | 51,577,226 | 28,409,869 | |
| Impairment loss | 7,304,471,630 | 4,478,251,852 | |
| Depreciation of fixed assets, investment properties and right-of-use assets | 33,422,031,705 | 33,432,161,074 | |
| Amortisation of intangible assets | 995,315,014 | 1,185,263,603 | |
| Amortisation of long-term deferred expenses | 83,058,206 | 130,732,527 | |
| Gains from disposal of fixed assets, intangible assets, and other long-term assets | (10,965,556) | (154,943,108) | |
| Losses from scrapping of fixed assets and intangible assets | 15,873,895 | 18,096,305 | |
| Financial expenses | 4,070,314,610 | 4,521,336,008 | |
| Gains from changes in fair value | (159,344,584) | (84,966,963) | |
| Investment income | (6,094,267,884) | (1,347,489,345) | |
| Share-based payments | 649,427,866 | 640,692,637 | |
| Change in deferred income | (1,259,742,279) | 2,177,609,983 | |
| Change in deferred tax assets | 25,329,486 | 14,705,564 | |
| Change in deferred tax liabilities | 136,748,088 | 100,681,820 | |
| Increase in inventories | (3,360,776,944) | (13,376,494,050) | |
| Decrease / ( increase) in operating receivables | 7,975,232,270 | (8,905,074,070) | |
| Increase in operating payables | 914,859,724 | 8,943,309,995 | |
| ? | ? | ? | |
| Net cash flows from operating activities | 43,021,967,305 | 62,698,688,556 |
???
| (b) Change in cash and cash equivalents: | ? | ? | |
| ? | ? | ? | |
| ? | 2022 | 2021 | |
| ? | ? | ? | |
| Cash and cash equivalents at the end of the year | 64,382,037,764 | 76,623,486,083 | |
| Less: Cash and cash equivalents at the beginning of the year | 76,623,486,083 | 68,064,736,371 | |
| ? | ? | ? | |
| Net (decrease) / increase in cash and cash equivalents | (12,241,448,319) | 8,558,749,712 |
????
????
(2) Information on acquisition or disposal of subsidiaries during the current year:
Information on acquisition of subsidiaries:
| ? | ? | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| Cash or cash equivalents paid during the year for acquiring subsidiaries during the year | ? | - | ? | (5,916,812) |
| Less: Cash and cash equivalents held by acquired subsidiaries | ? | - | ? | (3,101,277) |
| ? | ? | ? | ? | ? |
| Net payment for acquisition of subsidiaries | ? | - | ? | (2,815,535) |
?
?
Information on disposal of subsidiaries:
| ? | ? | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| Cash or cash equivalents received during the year for disposing of subsidiaries during the year | ? | 1,248,072,000 | ? | - |
| Less: Cash and cash equivalents held by acquired subsidiaries | ? | 311,313,078 | ? | - |
| ? | ? | ? | ? | ? |
| Net cash received for disposing of subsidiaries | ? | 936,758,922 | ? | - |
?
?
| ? | ? | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| Cash or cash equivalents received during the year for disposing of subsidiaries during the year | ? | - | ? | 88,028,400 |
| Less: Cash and cash equivalents held by acquired subsidiaries | ? | 144,689,766 | ? | 248,916,397 |
| ? | ? | ? | ? | ? |
| Net payment for disposal of subsidiaries | ? | (144,689,766) | ? | (160,887,997) |
(3) Details of cash and cash equivalents
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Cash on hand | 896,267 | ? | 451,975 |
| Bank deposits available on demand | 64,378,531,680 | ? | 76,549,790,015 |
| Other monetary funds available on demand | 2,609,817 | ? | 73,244,093 |
| ? | ? | ? | ? |
| Closing balance of cash and cash equivalents | 64,382,037,764 | ? | 76,623,486,083 |
????
????
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 subjectto restrictions.
59 Assets with restrictive ownership titles 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 | 4,152,705,165 | 2,382,241,772 | (2,507,588,393) | 4,027,358,544 | Mainly deposits, pledged for drawing bills payable | |||
| Bills receivable | 23,902,855 | 28,239,380 | (23,902,855) | 28,239,380 | Endorsed with resource and pledged for drawing bill | |||
| Investment properties | 41,247,205 | - | (1,529,204) | 39,718,001 | Mortgaged as collateral | |||
| Fixed assets | 171,435,160,686 | 2,484,511,825 | (33,500,815,134) | 140,418,857,377 | Mortgaged as collateral | |||
| Construction in progress | 316,234,570 | 17,494,722,323 | (15,759,854,976) | 2,051,101,917 | Mortgaged as collateral | |||
| Intangible assets | 1,623,510,499 | - | (162,384,713) | 1,461,125,786 | Mortgaged as collateral | |||
| ? | ? | ? | ? | ? | ? | |||
| Total | 177,592,760,980 | 22,389,715,300 | (51,956,075,275) | 148,026,401,005 | ? |
????
????
60 Leases
(1) As a lessee
Right-of-use assets
| ? | Plant & buildings | ? | Equipment | ? | Others | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 567,247,967 | ? | 107,357,735 | ? | 192,885,015 | ? | 867,490,717 |
| Additions during the year | 229,346,204 | ? | 15,740,262 | ? | 5,538,270 | ? | 250,624,736 |
| Decrease due to disposal of subsidiaries | (49,677,267) | ? | - | ? | - | ? | (49,677,267) |
| Decreases during the year | (80,820,628) | ? | (107,136,932) | ? | - | ? | (187,957,560) |
| Translation differences | 20,192,444 | ? | - | ? | - | ? | 20,192,444 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 686,288,720 | ? | 15,961,065 | ? | 198,423,285 | ? | 900,673,070 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Accumulated depreciation | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 82,687,553 | ? | 22,013,731 | ? | 9,625,196 | ? | 114,326,480 |
| Charge for the year | 146,686,766 | ? | 4,393,747 | ? | 10,482,467 | ? | 161,562,980 |
| Decrease due to disposal of subsidiaries | (15,326,483) | ? | - | ? | - | ? | (15,326,483) |
| Decreases during the year | (24,030,120) | ? | (25,897,396) | ? | - | ? | (49,927,516) |
| Translation differences | 2,916,663 | ? | - | ? | - | ? | 2,916,663 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 192,934,379 | ? | 510,082 | ? | 20,107,663 | ? | 213,552,124 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Provision for impairment | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year and at the end of the year | - | ? | - | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount at the end of the year | 493,354,341 | ? | 15,450,983 | ? | 178,315,622 | ? | 687,120,946 |
?
| ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount at the beginning of the year | 484,560,414 | ? | 85,344,004 | ? | 183,259,819 | ? | 753,164,237 |
???
???
Lease liabilities
| Item | Note | 31 December 2022 | ? | 1 January 2022 |
| ? | ? | ? | ? | ? |
| Long-term lease liabilities | ? | 656,888,776 | ? | 761,918,319 |
| Less: lease liabilities due within one year | V.29 | 118,302,766 | ? | 92,788,055 |
| ? | ? | ? | ? | ? |
| Total | ? | 538,586,010 | ? | 669,130,264 |
???
???
In 2022, the Group, as the lessee, chooses the simplified treatment method for short-termlease expenses, low-value asset lease expenses and the amount of income obtained fromsublease of right-of-use assets is not significant.
VI. Change of consolidation scope
1 Disposal of subsidiaries
Disposal of investments in subsidiaries through a single transaction resulting in loss of control
| Name of enterprise | 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 | ||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |||||||
| BOE Digital Technology Co., Ltd. | 129,500,000 | 51% | Equity replacement | 31 August 2022 | Equity delivery and completing changes in the Articles of Association | 62,130,573 | 15% | 19,794,533 | 38,081,355 | 18,286,822 | Asset appraisal report | ? | - | |||||||
| SES Imagotag SA Co., Ltd. | 1,248,072,000 | 9.51% | Transactions within the secondary market | 28 November 2022 | Completing re-election of members of the Board of Directors | 753,774,050 | 32.56% | 623,492,148 | 4,871,837,182 | 4,248,345,034 | The stock closing price when control is lost | ? | 13,967,945 |
?
?
1) The Group previously had actual control over BOE Digital Technology Co., Ltd. ("Digital Technology") through its subsidiaries SES and
Wisdom IOT. During the year, SES made contributions to BOE Art Cloud Technology Co., Ltd.which is an associate of the Group with its51% equity interest in Digital Technology. The equity delivery was completed on 31 August 2022. Then the Group has lost control ofDigital Technology. In the consolidated financial statements, the long-term equity investment is re-measured at its fair value at the datewhen control is lost.
2) BOE Smart Retail (Hong Kong) Co., Ltd. (hereinafter referred to as "Smart Retail"), a subsidiary of the Group, sold its 9.51% of the
shares of SES on November 25, 2022. After the sale was completed, Smart Retail's shareholding percentage in SES dropped from
42.07% to 32.56%. On 28 November 2022, Paris time, SES convened an extraordinary Board meeting to re-electing members of theBoard of Directors, therefore, Smart Retail no longer has a majority vote on the Board of Directors of SES, the Group has lost controlof SES. In the consolidated financial statements, the long-term equity investment is re-measured at its fair value at the date whencontrol is lost.
2 Other reasons for change of consolidation scope
During the year, the Company newly established three tier-one subsidiaries, namely BOE Environmental Energy Technology Co., Ltd.,Chengdu BOE Display Technology Co., Ltd., and Beijing BOE Chuangyuan Technology Co., Ltd. ("Chuangyuan Technology").
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 | - | 100% | Founded by investment | ||||
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Chengdu, China | Chengdu, China | ? | R&D, design, manufacturing, and sale of new display devices and components | RMB 25,000,000,000 | 100% | - | Business combinations involving entities not under common control | ||||
| Hefei BOE Optoelectronics Technology Co., Ltd. | Hefei, China | Hefei, China | ? | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products | RMB 9,000,000,000 | 100% | - | Business combinations involving entities not under common control | ||||
| Beijing BOE Display Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Development of TFT-LCD, manufacturing and sale of LCD | RMB 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% | - | 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% | - | Business combinations involving entities not under common control | ||||
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Fuzhou, China | Fuzhou, China | ? | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products (separate business site); self-support and agency for the import and export of various goods and technologies, except those goods and technologies that are restricted by the country or prohibited from import and export; business management consulting and services; property leases; machinery and equipment leases; technology development, transfer, consulting and services related to LCD products (For business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of the relevant government authorities). | RMB 17,600,000,000 | 83.24% | - | Business combinations involving entities not under common control | ||||
| Beijing BOE Video Technology Co., Ltd. (“BOE Video”) | Beijing, China | Beijing, China | ? | Investment platform, sales of LCD | RMB 4,424,095,800 | 100% | - | Founded by investment | ||||
| ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||||
| Name of the subsidiary | Principal place of business | Registered place | ? | Business nature | Registered capital | Direct | Indirect | Acquisition method | ||||
| Beijing BOE Vacuum Electronics Co., Ltd. | Beijing, China | Beijing, China | ? | Manufacture and sale of vacuum electronic products | RMB 33,250,000 | 57.89% | - | Founded by investment | ||||
| Beijing BOE Vacuum Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Manufacture and sale of electronic tubes | RMB 32,000,000 | 100% | - | Founded by investment | ||||
| Beijing Yinghe Century Co., Ltd. | Beijing, China | Beijing, China | ? | Management of engineering projects; real estate development; public parking lot for motor vehicles service; market survey | RMB 233,105,200 | 100% | - | Founded by investment | ||||
| BOE Optical Science and technology Co., Ltd. | Suzhou, China | Suzhou, China | ? | R&D, production and sales of LCD, back light for display and related components | RMB 826,714,059 | 95.17% | - | Founded by investment | ||||
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Development, manufacture and sale of liquid display for mobile termination | USD 5,000,000 | 75% | - | Founded by investment | ||||
| BOE (Hebei) Mobile Technology Co., Ltd. | Langfang, China | Langfang, China | ? | Manufacture and sale of mobile flat screen display technical products and related services | RMB 1,358,160,140 | 100% | - | Founded by investment | ||||
| Beijing BOE Energy Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Design, consultancy and service of solar cell, photovoltaic system, wind power system and solar thermal system as well as the assembly units; energy-saving service | RMB 1,242,690,058 | 68.40% | - | Founded by investment | ||||
| Beijing BOE Multimedia Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Technology development, technology transfer, technology consulting and technology services; sales of computer software, hardware and auxiliary equipment, digital video and audio technology products, electronic digital products, video telephone, mobile phones and spare parts, hardware (excluding electric bicycle), household appliances, photographic equipment, sporting goods, Class I medical devices, lamps, stationery, cosmetics, bathroom appliances, knitwear and textile, clothing, daily necessities, timepieces, glasses, toys and food; equipment maintenance; import and export of goods; basic software services; application software service; machinery and equipment leases; design, production, agency and publication of advertisements. (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.) | RMB 400,000,000 | 100% | - | Founded by investment | ||||
| Beijing BOE Life Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Technology promotion services, property management, sales of electronic products | RMB 24,000,000 | 100% | - | Founded by investment | ||||
| ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||||
| Name of the subsidiary | Principal place of business | Registered place | ? | Business nature | Registered capital | Direct | Indirect | Acquisition method | ||||
| Ordos City Haosheng Energy Investment Co., Ltd. | Ordos, China | Ordos, China | ? | Energy investment | RMB 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, China | British Virgin Islands | ? | Investment holding | USD 1,000,000,000 | 100% | - | Founded by investment | ||||
| BOE (Korea) Co., Ltd. | Korea | Korea | ? | Wholesale and retail trade | KRW 95,000,000 | 100% | - | Founded by investment | ||||
| BOE Healthcare Investment & Management Co., Ltd. | Beijing, China | Beijing, China | ? | Investment management and project investment | RMB 7,300,000,000 | 100% | - | Business combinations involving entities not under common control | ||||
| Beijing Matsushita Colour CRT Co., Ltd. | Beijing, China | Beijing, China | ? | Colour TV set, display tube, colour RPTV projection tube and materials of electronic components; property management and parking services, etc. | RMB 325,754,049 | 88.80% | - | Business combinations involving entities not under common control | ||||
| Hefei BOE Display Technology Co., Ltd. | Hefei, China | Hefei, China | ? | Investment, R & D and production of products related to TFT-LCD and the supporting facility | RMB 24,000,000,000 | 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 | ||||
| Hefei BOE Zhuoyin Technology Co., Ltd. | Hefei, China | Hefei, China | ? | Investment, construction, R&D, production and sales of products related to OLED display device and auxiliary products | RMB 800,000,000 | 75% | - | Founded by investment | ||||
| Beijing BOE Real Estate Co., Ltd. | Beijing, China | Beijing, China | ? | Development, construction, property management and supporting service of industrial plants and supporting facilities; information consulting of real estate; lease of commercial facilities, commercial attendants and the supporting service facilities; motor vehicles public parking service | RMB 55,420,000 | 70% | - | Founded by investment | ||||
| Beijing BOE Marketing Co., Ltd. | Beijing, China | Beijing, China | ? | Sales of communication equipment, hardware & software of computer and peripheral units, electronic products, equipment maintenance; development, transfer, consulting and service providing of technologies; import & export of goods and technologies, agency of import & export; manufacturing consignment of electronic products and LCD devices | RMB 50,000,000 | 100% | - | Founded by investment | ||||
| Shareholding (or similar equity interest) percentage | ||||||||||||
| Name of the subsidiary | Principal place of business | Registered place | ? | Business nature | Registered capital | Direct | Indirect | Acquisition method | ||||
| Beijing Zhongxiangying Technologies Co., Ltd. | Beijing, China | Beijing, China | ? | Technology promotion services, property management, sales of electronic products | RMB 109,767,000 | 91.10% | - | Founded by investment | ||||
| Yunnan Invensight Optoelectronics Technology Co., Ltd. | Kunming, China | Kunming, China | ? | Development, promotion, transfer, consultation and services of display technology; computer software, hardware and network system services; the construction, operations and management of e-commerce platform; product design; conference services; undertaking exhibitions and presentation activities; computer animation design; production, R&D and sales of OLED microdisplays and AR/VR whole widget; warehousing services; Project investments and management of the invested projects; import and export of goods and technologies; property leases, machinery and equipment leases | RMB 3,040,000,000 | 79.10% | - | Founded by investment | ||||
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Mianyang, China | Mianyang, China | ? | R&D, production and sales of flexible AMOLED, the products are mainly used in smart phones, wearable devices, car display, AR/VR, etc. | RMB 26,000,000,000 | 83.46% | - | Business combinations involving entities not under common control | ||||
| Beijing BOE Sensing Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Formation of X-ray sensors, microfluidic chips, biochemical chips, gene chips, security sensors, microwave antennas, biosensors, logistics network technology and other semiconductor sensors, technology testing, technical consulting, technical services, technology transfer | RMB 4,651,482,400 | 100% | - | Founded by investment | ||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Wuhan, China | Wuhan, China | ? | Investing, researching, manufacturing and selling TFT-LCD products and accessory products | RMB 26,000,000,000 | 47.14% | - | Business combinations involving entities not under common control | ||||
| Chongqing BOE Display Technology Co., Ltd. (“Chongqing BOE Display”) | Chongqing, China | Chongqing, China | ? | R&D, manufacture and sales of semiconductor display devices, whole widget and relevant products, import and export of goods and technical consulting | RMB 21,124,724,750 | 38.46% | - | Business combinations involving entities not under common control | ||||
| Nanjing BOE Display Technology Co., Ltd. | Nanjing, China | Nanjing, China | ? | R&D, production and sale of TFT-LCD panels, colour filters and LCD whole-widget modules; providing products and business-related services, as well as other business activities related to the above; import and export of proprietary and agent commodities and technologies | RMB 17,500,000,000 | 80.83% | - | Business combinations involving entities not under common control | ||||
| Shareholding (or similar equity interest) percentage | ||||||||||||
| Name of the subsidiary | Principal place of business | Registered place | ? | Business nature | Registered capital | Direct | Indirect | Acquisition method | ||||
| Hefei BOE Xingyu Technology Co., Ltd. (“Hefei Xingyu”) | Hefei, China | Hefei, China | ? | R&D, production and sales of Mini LED backlight components and Mini LED display module components | USD 115,380,000 | 63.77% | - | Founded by investment | ||||
| Fuzhou BOE Display Technology Co., Ltd. (“Fuzhou BOE Display”) | Fuzhou, China | Fuzhou, China | ? | R&D, production and sales of semiconductor display device-related products and related products; import or export of goods or technology; display device and component, other electronic components, and technology development, technology transfer, technical consulting, related fields related to display devices and electronic products, technical services; business management consulting; property management; house rental; machinery and equipment rental | RMB 50,000,000 | 43.46% | - | Business combinations involving entities not under common control | ||||
| BOE Innovation Investment Co., Ltd. | Beijing, China | Beijing, China | Project investment and investment management | RMB 800,000,000 | 100% | - | Founded by investment | |||||
| Chengdu BOE Display Techlogy Co., Ltd. | Chengdu, China | Chengdu, China | ? | General businesses: technical services, technology development, technology consulting, technical exchange, technology transfer, technology promotion; manufacturing of display devices [operations of branches]; sale of display devices; manufacturing of electronic components [operations of branches]; wholesale of electronic components; manufacturing of others electronic devices [operations of branches]; import and export of goods; import and export of technology; business management consulting; property management; non-residential real estate leasing; machinery and equipment leasing. (Except for business activities subject to approval in accordance with laws and regulations, operations are conducted in accordance with the law and business license.) | RMB 10,000,000 | 52.63% | -? | Founded by investment | ||||
| BOE Mled Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Technology development, technology consulting, technology transfer, technology services; software development; basic software services; application software services; computer system services; internet data services (data centres in Internet data services, excluding cloud computing data centres with a PUE over 1.4); information processing and storage support services; general construction contracting, professional contracting, labour subcontracting; installation, maintenance and lease of equipment; literary and artistic creation; computer animation design; product design; enterprise management; enterprise management consulting; sales of computer, software and auxiliary equipment, electronic products. | RMB 950,000,000 | 100% | - | Founded by investment | ||||
| BOE Smart Technology Co., Ltd. | Beijing, China | Beijing, China | Provision of hardware and software integrated system solutions for the IoT market segment; intelligent city, intelligent transport, intelligent finance, intelligent park and the display terminal products such as the intelligent all-in-one machines | RMB 6,521,250,000 | 100% | - | Founded by investment | |||||
| Shareholding (or similar equity interest) percentage | ||||||||||||
| Name of the subsidiary | Principal place of business | Registered place | ? | Business nature | Registered capital | Direct | Indirect | Acquisition method | ||||
| BOE Education Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Technology development, technology consulting, technology services, technology transfer and technology promotion; software development; basic software services; application software services; computer system services; sales of stationery items, sporting goods, household appliances and electronic products; business management; market research; economic and trade consulting; business management consulting; education consulting; public relations services; corporate image planning; exhibition and presentation activities; conference services; research and experimental development in the natural sciences; research and experimental development in engineering and technology; agricultural scientific research and experimental development; medical research and experimental development; copyright agency; arts and crafts creation services. (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.) | RMB 55,000,000 | 100% | - | Founded by investment | ||||
| Dongfang Chengqi (Beijing) Business Technology Co., Ltd. | Beijing, China | Beijing, China | Technology development, technology services; application software services; basic software services; sales of daily necessities, fresh fruit, fresh vegetables, primary edible agricultural products, household appliances, electronic products and sporting goods; trade agency; translation services; conference services; organisation of cultural and artistic interchange activities (excluding shows); exhibition and presentation activities; design, production, agency and publication of advertisements; enterprise management; market research; real estate information consulting; warehousing services; public relations services; health management, health consulting (excluding diagnosis and treatment activities subject to the approval); ticket agency; hotel booking agency; airline ticket sales agency; railway and passenger ticket agency services; tourism consulting; hotel management; automobile leases; property management; public parking services for motor vehicle; landscaping management; cleaning services; import and export of goods, import and export agency, import and export of technologies; car decoration; operation of sporting events (excluding high-risk sports); accommodation (branch operation only); catering services (branch operation only); beauty services, hairdressing services (branch operation only); medical services (branch operation only); family services (branch operation only); inbound tourism business; sales of food; internet information services. (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.) | RMB 10,000,000 | 100% | - | Founded by investment | |||||
| Shareholding (or similar equity interest) percentage | ||||||||||||
| Name of the subsidiary | Principal place of business | Registered place | ? | Business nature | Registered capital | Direct | Indirect | Acquisition method | ||||
| BOE Environmental Energy Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Technology development, technology consulting, technology transfer, technology promotion, technical services, technical testing of energy-saving technology, environmentally friendly new energy technology, environmental protection equipment, solar electrical energy generation, building integrated PV, electric power, power station operations and maintenance; software development; Internet data services (data centers for Internet data services, excluding cloud computing data centres with a PUE over 1.4); information processing and storage support services (data centers for information processing and storage support services, excluding cloud computing data centres with a PUE over 1.4); contract energy management; water pollution treatment; air pollution control; solid waste treatment; soil pollution treatment and restoration services; environmental protection monitoring; installation, maintenance, leasing of equipment; professional design services; property management; sale of special equipment for environment protection, lighting equipment, electronic products, machinery and equipment, electrical equipment, instruments, hardware products, computers, software and auxiliary equipment, chemical products (excluding licensed chemical products); import and export of goods; import and export of technology; import and export agents; power supply business; construction engineering design; electrical installation services; various engineering and construction activities; EPC of house construction and municipal infrastructure projects; construction labour subcontracting. | RMB 100,000,000 | 100% | -? | Founded by investment | ||||
| Chengdu BOE Display Sci-tech Co., Ltd. (formerly known as “Chengdu CEC Panda FPD Technology Co., Ltd.”) | Chengdu, China | Chengdu, China | ? | R&D, production and sales of TFT-LCD panels and modules, liquid crystal display monitors, televisions, instruments, machinery equipment and accessories as well as provision of technical services; foreign trade in form of import and export of goods and technology | RMB 21,550,000,000 | 35.03% | - | Business combinations involving entities not under common control | ||||
| Beijing BOE Chuangyuan Technology Co., Ltd. | Beijing, China | Beijing, China | ? | Manufacturing of display devices; sale of display devices; manufacturing of electronic components; wholesale of electronic components; retail of electronic components; technical services, technology development, technology consulting, technical exchange, technology transfer, technology promotion; import and export of goods; import and export of technology; business management consulting; property management; machinery and equipment leasing; manufacturing of other electronic devices. (Except for business activities subject to approval in accordance with laws and regulations, operations are conducted in accordance with the law and business license.) | RMB 10,000,000 | 79.31% | -? | Founded by investment | ||||
The Company signed an agreement of acting in concert with Hefei Core Screen IndustrialInvestment Fund (Limited Partnership) on 23 January 2019. Hefei Core Screen IndustrialInvestment Fund (Limited Partnership) agreed to act as a person acting in concert accordingto the wishes of the Company, and exercised the voting rights unconditionally and irrevocablyin accordance with the opinions of the Company. Therefore, the Company’s voting right ratioto Hefei Display Technology is 100%.
The Company signed an agreement of acting in concert with the shareholder of Wuhan BOE,Wuhan Airport Economic Development Zone Industrial Development Investment Group Co.,Ltd. and Hubei Changbai Industrial Investment Fund Partnership (Limited Partnership) on 25December 2018 and 5 February 2021. Wuhan Airport Economic Development ZoneIndustrial Development Investment Group Co., Ltd. and Hubei Changbai IndustrialInvestment Fund Partnership (limited Partnership) agreed to follow the Company’s will to actas the persons acting in concert, unconditionally and irrevocably exercising voting rights inaccordance with the opinions of the Company, the voting rights of the Company to WuhanBOE is 100%.
The Company signed an agreement of acting in concert with shareholders of ChongqingBOE Display, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership(Limited Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. on 25December 2018. The Company signed an agreement of acting in concert with ChongqingJingping Equity Investment Fund Partnership (Limited Partnership) on 31 March 2021. TheCompany signed an agreement of acting in concert with Chongqing Jianxin Junheng PrivateEquity Fund Partnership (Limited Partnership) on 30 June 2021. Chongqing StrategicEmerging Industry Equity Investment Fund Partnership (Limited Partnership), ChongqingYuzi Optoelectronic Industry Investment Co., Ltd., Chongqing Jingping Equity InvestmentFund Partnership (Limited Partnership) and Chongqing Jianxin Junheng Private Equity FundPartnership(Limited Partnership) agreed to act as persons acting in concert according to thewill of the Company, and exercise the voting rights unconditionally and irrevocably inaccordance with the opinions of the Company. Therefore, the proportion of voting rights ofthe Company to Chongqing BOE is 100%.
The Company signed an agreement of acting in concert with shareholders of Fuzhou BOEDisplay, Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou UrbanConstruction Investment Group Co., Ltd. on 21 January 2019. Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou Urban Construction Investment GroupCo., Ltd. agreed to act as persons acting in concert according to the will of the Company, andexercise the voting rights unconditionally and irrevocably in accordance with the opinions ofthe Company. Therefore, the proportion of voting rights of the Company to Fuzhou BOEDisplay is 100%.
The Company signed a concerted action agreement with Chengdu Advanced ManufacturingIndustry Investment Co., Ltd., a shareholder of Chengdu Display Sci-tech, and ChengduAirport Xingcheng Investment Group Co., Ltd. on December 17, 2020. The Company signeda concerted action agreement with Nanjing Zhongdian Panda Information Industry GroupCo., Ltd. on December 31, 2020, and signed a concerted action agreement with ZhongdianFinancial Investment Holding Co., Ltd. on June 28, 2022, A concerted action agreement wassigned with Ya'an Yashuang Investment Co., Ltd. on November 30, 2022, and ChengduAdvanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport XingchengInvestment Group Co., Ltd., Ya'an Yashuang Investment Co., Ltd., Nanjing Zhongdian PandaInformation Industry Group Co., Ltd., and Zhongdian Financial Investment Holding Co., Ltd.acted in concert with the wishes of the company, We unconditionally and irrevocablyexercise our voting rights in accordance with our company's opinions, so our company'svoting rights ratio in Chengdu Display Sci-tech is 96.75%.
(2) Material non-wholly owned subsidiaries
| Name of the subsidiary | Proportion of ownership interest held by non-controlling interests | ? | Llosses attributable to non-controlling interests for the year | ? | Dividend declared to non-controlling shareholders during the year | ? | Balance of non-controlling interests at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Hefei Display Technology | 91.67% | ? | (3,618,751,980) | ? | - | ? | 18,822,591,037 |
| Mianyang BOE | 16.54% | ? | (380,623,218) | ? | - | ? | 3,556,733,678 |
| Wuhan BOE | 52.86% | ? | (2,002,557,008) | ? | - | ? | 13,146,768,173 |
| Chongqing BOE Display | 61.54% | ? | (201,271,791) | ? | - | ? | 14,444,887,413 |
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(3) Key financial information about material non-wholly owned subsidiaries
The following table sets out the key financial information of the above subsidiaries withoutoffsetting internal transactions, but with adjustments made for the fair value adjustment at theacquisition date and any differences in accounting policies:
| ? | Hefei Display Technology | ? | Mianyang BOE | ? | Wuhan BOE | ? | Chongqing BOE Display | ||||||||
| ? | 2022 | ? | 2021 | ? | 2022 | ? | 2021 | ? | 2022 | ? | 2021 | ? | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Current assets | 12,595,285,193 | ? | 15,797,281,551 | ? | 12,372,285,496 | ? | 9,255,378,733 | ? | 7,442,285,566 | ? | 12,711,279,779 | ? | 8,590,561,462 | ? | 9,119,260,427 |
| Non-current assets | 20,269,449,516 | ? | 24,332,972,509 | ? | 37,212,140,922 | ? | 43,427,820,893 | ? | 38,934,335,172 | ? | 38,277,507,503 | ? | 32,479,448,086 | ? | 25,994,167,505 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total assets | 32,864,734,709 | ? | 40,130,254,060 | ? | 49,584,426,418 | ? | 52,683,199,626 | ? | 46,376,620,738 | ? | 50,988,787,282 | ? | 41,070,009,548 | ? | 35,113,427,932 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Current liabilities | 6,306,350,492 | ? | 7,432,659,554 | ? | 11,072,411,471 | ? | 7,343,085,123 | ? | 6,251,107,827 | ? | 7,311,202,489 | ? | 5,410,946,190 | ? | 3,837,467,534 |
| Non-current liabilities | 6,025,395,194 | ? | 8,237,784,012 | ? | 17,008,183,759 | ? | 21,547,455,635 | ? | 15,254,593,174 | ? | 15,031,465,931 | ? | 12,186,708,120 | ? | 8,053,464,462 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total liabilities | 12,331,745,686 | ? | 15,670,443,566 | ? | 28,080,595,230 | ? | 28,890,540,758 | ? | 21,505,701,001 | ? | 22,342,668,420 | ? | 17,597,654,310 | ? | 11,890,931,996 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Operating income | 10,878,478,058 | ? | 19,895,825,588 | ? | 16,357,203,835 | ? | 15,252,416,607 | ? | 12,845,309,881 | ? | 16,825,449,551 | ? | 883,001,124 | ? | 25,345,522 |
| Net (loss) / profit | (3,947,585,884) | ? | 3,314,633,884 | ? | (2,301,228,643) | ? | (998,415,291) | ? | (3,788,416,587) | ? | 2,811,946,928 | ? | (327,058,484) | ? | (243,647,739) |
| Total comprehensive income | (3,947,585,884) | ? | 3,314,633,884 | ? | (2,301,228,643) | ? | (998,415,291) | ? | (3,788,416,587) | ? | 2,811,946,928 | ? | (327,058,484) | ? | (243,647,739) |
| Cash inflows / (outflows) in operating activities | 899,521,665 | ? | 9,132,590,378 | ? | 7,118,785,052 | ? | 3,589,416,228 | ? | 2,816,292,270 | ? | 5,734,190,509 | ? | (185,310,156) | ? | 91,717,067 |
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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 |
| ? | ? | ? | ? |
| BOE Energy | 100.00% | ? | 68.40% |
| Zhongxiangying | 100.00% | ? | 91.10% |
| Hefei Xingyu | 53.86% | ? | 63.77% |
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(2) Impact from transactions with non-controlling interests and equity attributable to the
shareholders of the Company:
The changes in the shareholding of the Company in the owners of above-mentioned othersubsidiaries were caused by the capital increase/decrease of the Company and the capitalincrease of their non-controlling interests or the failure to increase capital by the Companyand the non-controlling interests of the subsidiaries in equal proportion, which results in theincrease of capital reserves by RMB 1,135,268,806 . See Note V.38.
3 Interests in associates
Please see Note V.10(2) for details of the summarised financial information of theassociates.
No material restrictions on transfers of funds from investees to the Group. The judgementbasis of the Company and its subsidiaries to hold lower than 20% of the voting rights of otherentities but have significant influence on the entity is due to the fact that the Company and itssubsidiaries have seats in the board of directors of the entity, and the Company andsubsidiaries of the Company may have significant influence on the entity through therepresentation of the directors in the process of formulating financial and operating policies.
VIII. Risk related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments inthe normal course of the Group’s operations:
- Credit risk- Liquidity risk- Interest rate risk- Foreign currency risk- Other price risks
The following mainly presents information about the Group’s exposure to each of the aboverisks and their sources, their changes during the year, and the Group’s objectives, policiesand processes for measuring and managing risks, and their changes during the year.
The Group aims to seek appropriate balance between the risks and benefits from its use offinancial instruments and to mitigate the adverse effects that the risks of financial instrumentshave on the Group’s financial performance. Based on such objectives, the Group’s riskmanagement policies are established to identify and analyse the risks faced by the Group, toset appropriate risk limits and controls, and to monitor risks and adherence to limits. Riskmanagement policies and systems are reviewed regularly to reflect changes in marketconditions and the Group’s activities. The internal audit department of the Group undertakesboth regular and ad-hoc reviews of risk management controls and procedures.
1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for theother party by failing to discharge an obligation. The Group’s credit risk is primarilyattributable to receivables. Exposure to these credit risks is monitored by management on anongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does notexpect that these financial institutions may default and cause losses to the Group.
In respect of receivables, the Group has established a credit policy under which individualcredit evaluations are performed on all customers to determine the credit limit and termsapplicable to the customers. These evaluations focus on the customers’ financial position,the external ratings of the customers and the record of previous transactions. Receivablesare due within 7 to 120 days from the date of billing. Debtors with balances that are past dueare requested to settle all outstanding balances before any further credit is granted.Normally, the Group does not obtain collateral from customers.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics ofeach customer rather than the industry or country/region in which the customers operate.Therefore, significant concentrations of credit risk primarily arise when the Group hassignificant exposure to individual customers. At the balance sheet date, 39% (2021: 39%) ofthe Contract assets total accounts receivable were due from the five largest customers of theGroup. In addition, the accounts receivable not overdue or impaired is mainly related to manyclients who don’t have payment in arrears records recently.
The maximum exposure to credit risk is represented by the carrying amount of each financialasset in the balance sheet. As mentioned in Note XIII, as at 31 December 2022 the Groupdoes not provide any external guarantees which would expose the Group or the Company tocredit risk.
2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations thatare settled by delivering cash or another financial asset. The Company and its individualsubsidiaries are responsible for their own cash management, including short-term investmentof cash surpluses and the raising of loans to cover expected cash demands, subject toapproval by the Company’s board when the borrowings exceed certain predetermined levelsof authority. The Group’s policy is to regularly monitor its liquidity requirements and itscompliance with lending covenants, to ensure that it maintains sufficient reserves of cash,readily realisable marketable securities and adequate committed lines of funding from majorfinancial institutions to meet its liquidity requirements in the short and longer term.
The following tables set out the remaining contractual maturities at the balance sheet date ofthe Group’s financial liabilities, which are based on contractual undiscounted cash flows(including interest payments computed using contractual rates or, if floating, based on ratescurrent at 31 December) and the earliest date the Group can be required to pay:
| ? | 2022 Contractual undiscounted cash flow | ? | ? | ||||||||
| ? | Within 1 year or on demand (inclusive) | ? | More than 1 year but less than 3 years (inclusive) | ? | More than 3 years but less than 5 years (inclusive) | ? | More than 5 years | ? | Total | ? | Carrying amount of balance sheet |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term loans | 2,472,050,871 | ? | - | ? | - | ? | - | ? | 2,472,050,871 | ? | 2,373,938,871 |
| Bills payable | 870,221,538 | ? | - | ? | - | ? | - | ? | 870,221,538 | ? | 870,221,538 |
| Accounts payable | 29,834,720,464 | ? | - | ? | - | ? | - | ? | 29,834,720,464 | ? | 29,834,720,464 |
| Other payables | 19,632,223,269 | ? | - | ? | - | ? | - | ? | 19,632,223,269 | ? | 19,632,223,269 |
| Non-current liabilities due within one year | 23,132,749,292 | ? | - | ? | - | ? | - | ? | 23,132,749,292 | ? | 22,703,750,744 |
| Long-term loans | 4,872,695,550 | ? | 17,357,391,426 | ? | 26,251,319,950 | ? | 99,561,622,533 | ? | 148,043,029,459 | ? | 123,143,479,690 |
| Lease liabilities | - | ? | 246,663,217 | ? | 123,905,787 | ? | 323,315,125 | ? | 693,884,129 | ? | 538,586,010 |
| Long-term payables | - | ? | 70,973,955 | ? | 160,835,968 | ? | - | ? | 231,809,923 | ? | 229,587,077 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 80,814,660,984 | ? | 17,675,028,598 | ? | 26,536,061,705 | ? | 99,884,937,658 | ? | 224,910,688,945 | ? | 199,326,507,663 |
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| ? | 2021 Contractual undiscounted cash flow | ? | ? | ||||||||
| ? | Within 1 year or on demand (inclusive) | ? | More than 1 year but less than 3 years (inclusive) | ? | More than 3 years but less than 5 years (inclusive) | ? | More than 5 years | ? | Total | Carrying amount of balance sheet | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||
| Short-term loans | 2,156,682,843 | ? | - | ? | - | - | ? | 2,156,682,843 | 2,072,057,332 | ||
| Bills payable | 827,958,031 | ? | - | ? | - | - | ? | 827,958,031 | 827,958,031 | ||
| Accounts payable | 32,455,830,694 | ? | - | ? | - | - | ? | 32,455,830,694 | 32,455,830,694 | ||
| Other payables | 23,835,374,942 | ? | - | ? | - | - | ? | 23,835,374,942 | 23,835,374,942 | ||
| Non-current liabilities due within one year | 29,209,146,646 | ? | - | ? | - | - | ? | 29,209,146,646 | 28,874,958,714 | ||
| Long-term loans | 4,195,689,815 | ? | 19,625,783,023 | ? | 10,743,655,014 | 102,812,410,156 | ? | 137,377,538,008 | 116,078,666,587 | ||
| Debentures payable | 13,392,544 | ? | 305,465,507 | ? | 74,023,980 | - | ? | 392,882,031 | 359,586,437 | ||
| Lease liabilities | - | ? | 284,759,263 | ? | 138,423,079 | 333,385,847 | ? | 756,568,189 | 669,130,264 | ||
| Long-term payables | - | ? | 373,905,903 | ? | 211,205,405 | 457,906,633 | ? | 1,043,017,941 | 906,592,838 | ||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ||
| Total | 92,694,075,515 | ? | 20,589,913,696 | ? | 11,167,307,478 | 103,603,702,636 | ? | 228,054,999,325 | 206,080,155,839 | ||
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3 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group tocash flow interest rate risk and fair value interest risk, respectively. The Group determinesthe appropriate weightings for fixed and floating rate interest-bearing instruments based oncurrent market conditions and performs regular reviews and monitoring to achieve anappropriate mix of fixed and floating rate exposure. The Group does not enter into financialderivatives to hedge interest rate risk.
(a) As at 31 December, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
| ? | 2022 | ? | 2021 | ||||
| Item | Effective interest rate | ? | Amounts | ? | Effective interest rate | ? | Amounts |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Financial assets | ? | ? | ? | ? | ? | ? | ? |
| - Cash at bank | 0.70%~5.45% | ? | 36,597,334,927 | ? | 0.30%~3.99% | ? | 36,894,761,961 |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? |
| - Short-term loans | 0.25%~5.90% | ? | (1,149,712,480) | ? | 0.50%~5.90% | ? | (2,068,800,511) |
| - Other payables | 0%~2.18% | (3,000,000,000) | 0%~2.18% | (3,000,000,000) | |||
| - Non-current liabilities due within one year | 0%~6.86% | ? | (7,841,491,191) | ? | 0%~6.86% | ? | (9,407,794,957) |
| - Long-term loans | 0%~5.90% | ? | (25,324,584,996) | ? | 0%~5.90% | ? | (28,644,395,246) |
| - Debentures payable | - | ? | - | ? | 3.50%~4.55% | ? | (359,586,437) |
| - Lease liabilities | 3.65%~4.75% | ? | (538,586,010) | ? | 3.85%~4.75% | ? | (669,130,264) |
| - Long-term payables | 4.30%~6.86% | ? | (229,587,077) | ? | 4.65%~6.86% | ? | (906,592,838) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | (1,486,626,827) | ? | ? | ? | (8,161,538,292) |
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Floating rate instruments:
| ? | 2022 | ? | 2021 | ||||
| Item | Effective interest rate | ? | Amounts | ? | Effective interest rate | ? | Amounts |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Financial assets | ? | ? | ? | ? | ? | ? | ? |
| - Cash at bank | 0.0001%~5.30% | ? | 31,723,267,975 | ? | 0.0001%~2.70% | ? | 41,471,269,422 |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? |
| - Short-term loans | 5.65%~5.84% | ? | (1,218,525,680) | ? | - | ? | - |
| - Non-current liabilities due within one year | 1.00%~7.44% | ? | (14,215,671,815) | ? | 1.66%~5.88% | ? | (18,827,495,477) |
| - Long-term loans | 1.00%~7.44% | ? | (97,816,667,917) | ? | 2.30%~5.88% | ? | (87,317,668,185) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | (81,527,597,437) | ? | ? | ? | (64,673,894,240) |
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(b) Sensitivity analysis
As at 31 December 2022, it is estimated that a general increase / decrease of 100basis points in interest rates of variable rate instrument, with all other variables heldconstant, would decrease / increase the Group’s net profit and equity by RMB679,150,000 (2021: RMB 549,530,000).
In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative instruments held by the Group at the balance sheet date, the impact on thenet profit and owner’s equity is estimated as an annualised impact on interest expenseor income of such a change in interest rates. The analysis is performed on the samebasis for the previous year.
4 Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, short-term loansand other assets and liabilities denominated in foreign currencies other than the functionalcurrency, the Group ensures that its net exposure is kept to an acceptable level by buying orselling foreign currencies at spot rates when necessary to address short-term imbalances.
(a) The Group’s exposure as at 31 December to currency risk arising from recognized
foreign currency assets or liabilities is mainly denominated in US dollar. The amount ofthe USD exposure is net liabilities exposure USD 1,523,210,633 (2021 net liabilitiesexposure: USD 177,293,137), translated into RMB 10,608,552,775 (2021: RMB1,130,367,854), using the spot rate at the balance sheet date. Differences resultingfrom the translation of the financial statements denominated in foreign currency areexcluded.
(b) Assuming all other risk variables remained constant, a 5% strengthening / weakening
of the Renminbi against the US dollar at 31 December would have increased /decreased both the Group’s equity and net profit by the amount RMB 136,665,926(2021: decreased / increased RMB 164,148,318).
The sensitivity analysis above assumes that the change in foreign exchange rates hadbeen applied to re-measure those financial instruments held by the Group whichexpose the Group to foreign currency risk at the balance sheet date. The analysisexcludes differences that would result from the translation of the financial statementsdenominated in foreign currency. The analysis is performed on the same basis for theprevious year.
5 Other price risks
Other price risks include stock price risk and commodity price risk.
IX. Fair value disclosure
The following table presents the fair value information and the fair value hierarchy, at the endof the current reporting period, of the Group’s assets and liabilities which are measured atfair value at each balance sheet date on a recurring or non-recurring basis. The level inwhich fair value measurement is categorised is determined by the level of the fair valuehierarchy of the lowest level input that is significant to the entire fair value measurement. Thelevels are defined as follows:
Level 1 inputs: unadjusted quoted prices in active markets that are observable at the
measurement date for identical assets or liabilities;
Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly
observable for underlying assets or liabilities;
Level 3 inputs: Inputs that are unobservable for underlying assets or liabilities;
1 Fair value of assets measured at fair value at the end of the year
| ? | ? | 31 December 2022 | ||||||
| Assets | Note | Level 1 Fair value measurement | ? | Level 2 Fair value measurement | ? | Level 3 Fair value measurement | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Recurring fair value measurements | ? | ? | ? | ? | ? | ? | ? | ? |
| - Financial assets held for trading | V.2 | 256,525,783 | ? | - | ? | 16,931,468,153 | ? | 17,187,993,936 |
| Including: Structured deposit and wealth-management products | ? | - | ? | - | ? | 16,931,468,153 | ? | 16,931,468,153 |
| Investments in equity instruments | ? | 256,525,783 | ? | - | ? | - | ? | 256,525,783 |
| - Investments in other equity instruments | V.11 | 154,312,590 | ? | - | ? | 328,747,716 | ? | 483,060,306 |
| - Other non-current financial assets | V.12 | - | ? | - | ? | 2,022,967,681 | ? | 2,022,967,681 |
| Including: Investments in equity instruments | ? | - | ? | - | ? | 2,022,967,681 | ? | 2,022,967,681 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total assets measured at fair value on a recurring basis | ? | 410,838,373 | ? | - | ? | 19,283,183,550 | ? | 19,694,021,923 |
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| ? | ? | 31 December 2021 | ||||||
| Assets | Note | Level 1 Fair value measurement | ? | Level 2 Fair value measurement | ? | Level 3 Fair value measurement | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Recurring fair value measurements | ? | ? | ? | ? | ? | ? | ? | ? |
| - Financial assets held for trading | V.2 | - | ? | - | ? | 10,028,172,853 | ? | 10,028,172,853 |
| Including: Structured deposit and wealth-management products | ? | - | ? | - | ? | 10,028,172,853 | ? | 10,028,172,853 |
| - Investments in other equity instruments | V.11 | 168,325,009 | ? | - | ? | 350,763,137 | ? | 519,088,146 |
| - Other non-current financial assets | V.12 | - | ? | - | ? | 606,895,447 | ? | 606,895,447 |
| Including: Investments in equity instruments | ? | - | ? | - | ? | 606,895,447 | ? | 606,895,447 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total assets measured at fair value on a recurring basis | ? | 168,325,009 | ? | - | ? | 10,985,831,437 | ? | 11,154,156,446 |
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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 wealthmanagement products. For wealth management products measured at fair value, the fairvalue is determined based on the discounted cash flow method.
Investments in other equity instruments and other non-current financial assets at recurringfair value within Level 3 are unlisted equity investments held by the Group, including:
(i) For those who raised a new round of financing in 2022, the Group used the financing
price as the best estimates of their fair value;
(ii) For other investments in other equity instruments, since the operating environment,
operating conditions and financial status of the investee have not changed significantlyduring the year, the Group uses the book investment cost as a reasonable estimate offair value for measurement.
4 During 2022, there were no changes in valuation technique of fair value. As at 31 December,
the Group held no assets and liabilities measured at fair value. All financial assets andfinancial liabilities of the Group are carried at amounts not materially different from their fairvalue.
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 | ? | 0.72% | ? | 12.20% | ? | Yes |
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2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Group, 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 thisyear or the previous year are as follows:
| Name of entity | Relationship with the Company |
| ? | ? |
| Beijing Nittan Electronic Co., Ltd. | Associate of the Group and the Company |
| Beijing BOE Art Cloud Technology Co., Ltd. | Associate of the Group and the Company |
| Beijing Xindongneng Investment Management Co., Ltd. | Associate of the Group and the Company |
| TPV Display Technology (China) Limited | Associate of the Group and the Company |
| BOE Digital Technology Co., Ltd. | Associate of the Group and the Company |
| Beijing BOE Art Cloud (Suzhou)Technology Co., Ltd. | Associate of the Group and the Company |
| Beijing BOE Art Cloud (Hangzhou)Technology Co., Ltd. | Associate of the Group and the Company |
| Hefei Xin Jing Yuan Electronic Materials Co., Ltd. | Associate of the Group |
| Beijing BOE Microbial Technology Co., Ltd. | Associate of the Group |
| Biochain (Beijing) Science-Technology.Inc. | Associate of the Group |
| BOE Houji Technology (Beijing) Co., Ltd. | Associate of the Group |
| SES Imagotag SA Co., Ltd. | Associate of the Group |
| SES-Imagotag GmbH Co., Ltd. | Subsidiary of associate of the Group |
| Pervasive Displays Inc | Subsidiary of associate of the Group |
| Beijing Borcheng Medical Laboratory Co. Ltd. | Subsidiary of associate of the Group |
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4 Information on other related parties
| Name of other related parties | Related-party relationship |
| ? | ? |
| Beijing BOE Investment Development Co., Ltd. | Under the same control of the ultimate holding company |
| NAURA Technology Group Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Zhengdong Electronic Power 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 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 Ether Electronics Group 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 Ripeness Sanyuan Instrumentation Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Electronics Holding & SK Technology Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Electrical Control Jiuyi Industrial Development Company | 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 Smart-Aero Display Technology Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Electrical Energy Technology (Jiangsu) Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing Peony Electronic Group 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 |
| Baic Electronics Holding SK (Jiangsu) Technology Co., Ltd. | Under the same control of the ultimate holding company |
| Beijing 797 Audio Co., Ltd. | Under the same control of the ultimate holding company |
| Bei Jing Yan Dong Microelectronic Technology Co., Ltd. | 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 Senju Electronic Materials Co., Ltd. | Associate of enterprise that is under the same control of the ultimate holding company |
| Beijing Yizhuang Environmental Technology Group Co., Ltd. | Other related parties |
| China Minsheng Banking Corp., Ltd. | Other related parties |
| Hefei Construction Investment and Holding Co., Ltd. | Other related parties |
| Beijing Jingcheng Machinery Electric Holding Co., Ltd. | Other related parties |
| Nexchip Semiconductor Corporation | Other related parties |
| Hefei Visionox Technology Co., Ltd. | Other related parties |
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5 Transactions with related parties
The transactions below with related parties were conducted under normal commercial termsor agreements.
(1) Purchase of goods and equipment, and receiving of services (excluding remuneration of key
management personnel).
The Group
| Nature of transaction | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Purchase of goods | 658,905,000 | ? | 965,818,931 |
| Procurement of equipment | 155,286,378 | ? | 255,199,826 |
| Receiving services | 12,843,982 | ? | 24,377,762 |
| Payment of interest expenses | 43,423,377 | ? | 20,715,586 |
| ? | ? | ? | ? |
| Total | 870,458,737 | ? | 1,266,112,105 |
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The Company
| Nature of transaction | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Purchase of goods | 32,203,231 | ? | 9,164,606 |
| Receiving services | 63,840,655 | ? | 249,160,057 |
| Payment of interest expenses | 42,314,510 | ? | 19,860,031 |
| ? | ? | ? | ? |
| Total | 138,358,396 | ? | 278,184,694 |
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(2) Sale of goods/rendering of services
The Group
| Nature of transaction | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Sale of goods | 1,168,302,006 | ? | 416,546,796 |
| Rendering of services | 12,004,788 | ? | 10,267,108 |
| Income from interest received | 23,183,395 | ? | 21,292,904 |
| ? | ? | ? | ? |
| Total | 1,203,490,189 | ? | 448,106,808 |
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The Company
| Nature of transaction | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Sale of goods | 101,930 | ? | 23,488,144 |
| Rendering of services | 4,742,920,134 | ? | 5,561,607,938 |
| Income from interest received | 15,398,605 | ? | 17,015,526 |
| ? | ? | ? | ? |
| Total | 4,758,420,669 | ? | 5,602,111,608 |
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(3) Leases
(a) As the lessor
The Group
| Type of assets leased | Lease income recognised in 2022 | ? | Lease income recognised in 2021 |
| ? | ? | ? | ? |
| Investment properties | 7,925,143 | ? | 5,114,048 |
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The Company
| Type of assets leased | Lease income recognised in 2022 | ? | Lease income recognised in 2021 |
| ? | ? | ? | ? |
| Investment properties | 65,287,838 | ? | 70,534,069 |
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(b) As the lessee
The Group
| Type of assets leased | Lease expense recognised in 2022 | ? | Lease expense recognised in 2021 |
| ? | ? | ? | ? |
| Fixed assets | 2,886,041 | ? | 2,804,351 |
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The Company
| Type of assets leased | Lease expense recognised in 2022 | ? | Lease expense recognised in 2021 |
| ? | ? | ? | ? |
| Fixed assets | 48,562,349 | ? | - |
?
?
(4) Funding from related parties
The Company
| Name of related party | Amount of funding | ? | Inception date | ? | Maturity date |
| ? | ? | ? | ? | ? | ? |
| Funds received | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Subsidiary of the parent company | 2,000,000,000 | ? | 09/06/2017 | ? | Long-term |
| Subsidiary of the parent company | 4,000,000,000 | ? | 09/06/2017 | ? | Long-term |
| Subsidiary of the parent company | 1,000,000,000 | ? | 23/12/2016 | ? | Long-term |
| Subsidiary of the parent company | 200,000,000 | ? | 28/07/2017 | ? | Long-term |
| Subsidiary of the parent company | 1,600,000,000 | ? | 04/12/2017 | ? | Long-term |
| Subsidiary of the parent company | 700,000,000 | ? | 13/04/2018 | ? | Long-term |
| Subsidiary of the parent company | 650,000,000 | ? | 25/04/2018 | ? | Long-term |
| Subsidiary of the parent company | 3,000,000,000 | ? | 27/04/2018 | ? | Long-term |
| Subsidiary of the parent company | 3,000,000,000 | ? | 28/05/2018 | ? | Long-term |
| Subsidiary of the parent company | 2,500,000,000 | ? | 31/08/2018 | ? | Long-term |
| Subsidiary of the parent company | 3,800,000,000 | ? | 19/07/2018 | ? | Long-term |
| Subsidiary of the parent company | 3,500,000,000 | ? | 01/08/2018 | ? | Long-term |
| Subsidiary of the parent company | 1,500,000,000 | ? | 24/05/2019 | ? | Long-term |
| Subsidiary of the parent company | 2,000,000,000 | ? | 27/05/2019 | ? | Long-term |
| Subsidiary of the parent company | 360,000,000 | ? | 24/04/2020 | ? | Long-term |
| Subsidiary of the parent company | 1,300,000,000 | ? | 21/05/2019 | ? | Long-term |
| Subsidiary of the parent company | 500,000,000 | ? | 28/05/2019 | ? | Long-term |
| Subsidiary of the parent company | 500,000,000 | ? | 21/05/2019 | ? | Long-term |
| Subsidiary of the parent company | 1,000,000,000 | ? | 26/07/2019 | ? | Long-term |
| Subsidiary of the parent company | 300,000,000 | ? | 08/07/2020 | ? | Long-term |
| Subsidiary of the parent company | 2,500,000,000 | ? | 06/07/2020 | ? | Long-term |
| Subsidiary of the parent company | 2,000,000,000 | ? | 03/07/2020 | ? | Long-term |
| Subsidiary of the parent company | 1,200,000,000 | ? | 06/07/2020 | ? | Long-term |
| Subsidiary of the parent company | 1,000,000,000 | ? | 20/08/2020 | ? | Long-term |
| Subsidiary of the parent company | 1,700,000,000 | ? | 12/10/2020 | ? | Long-term |
| Subsidiary of the parent company | 3,000,000,000 | ? | 05/11/2020 | ? | Long-term |
| Subsidiary of the parent company | 2,358,000,000 | ? | 07/12/2020 | ? | Long-term |
| Subsidiary of the parent company | 900,000,000 | ? | 11/12/2020 | ? | Long-term |
| Name of related party | Amount of funding | ? | Inception date | ? | Maturity date |
| ? | ? | ? | ? | ? | ? |
| Funds received | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? |
| Subsidiary of the parent company | 1,700,000,000 | ? | 28/12/2020 | ? | Long-term |
| Subsidiary of the parent company | 2,300,000,000 | ? | 28/12/2020 | ? | Long-term |
| Subsidiary of the parent company | 1,200,000,000 | ? | 30/09/2015 | ? | Long-term |
| Subsidiary of the parent company | 1,000,000,000 | ? | 09/03/2021 | ? | Long-term |
| Subsidiary of the parent company | 1,000,000,000 | ? | 18/03/2021 | ? | Long-term |
| Subsidiary of the parent company | 4,000,000,000 | ? | 25/03/2021 | ? | Long-term |
| Subsidiary of the parent company | 2,500,000,000 | ? | 30/03/2021 | ? | Long-term |
| Subsidiary of the parent company | 4,500,000,000 | ? | 23/06/2021 | ? | Long-term |
| Subsidiary of the parent company | 500,000,000 | ? | 30/06/2021 | ? | Long-term |
| Subsidiary of the parent company | 1,000,000,000 | ? | 30/06/2021 | ? | Long-term |
| Subsidiary of the parent company | 1,000,000,000 | ? | 06/07/2021 | ? | Long-term |
| Subsidiary of the parent company | 2,000,000,000 | ? | 29/12/2021 | ? | Long-term |
| Subsidiary of the parent company | 2,800,000,000 | ? | 30/12/2021 | ? | Long-term |
| Subsidiary of the parent company | 6,000,000,000 | ? | 30/12/2021 | ? | Long-term |
| Subsidiary of the parent company | 1,500,000,000 | ? | 31/12/2021 | ? | Long-term |
| Subsidiary of the parent company | 1,000,000,000 | ? | 27/01/2022 | ? | Long-term |
| Subsidiary of the parent company | 200,000,000 | ? | 31/12/2021 | ? | Long-term |
| Subsidiary of the parent company | 800,000,000 | ? | 15/06/2022 | ? | Long-term |
| Subsidiary of the parent company | 400,000,000 | ? | 31/12/2021 | ? | Long-term |
| Subsidiary of the parent company | 1,000,000,000 | ? | 31/12/2021 | ? | Long-term |
| Subsidiary of the parent company | 6,500,000,000 | ? | 23/08/2022 | ? | Long-term |
| Subsidiary of the parent company | 1,100,000,000 | ? | 08/10/2022 | ? | Long-term |
| Subsidiary of the parent company | 800,000,000 | ? | 20/10/2022 | ? | Long-term |
| Subsidiary of the parent company | 1,000,000,000 | ? | 25/10/2022 | ? | Long-term |
| Subsidiary of the parent company | 1,000,000,000 | ? | 25/10/2022 | ? | Long-term |
| Subsidiary of the parent company | 200,000,000 | ? | 10/11/2022 | ? | Long-term |
| Subsidiary of the parent company | 650,000,000 | ? | 16/03/2021 | ? | 16/03/2026 |
| ? | ? | ? | ? | ? | ? |
| Total | 95,718,000,000 | ? | ? | ? | ? |
???
| Name of related party | Amount of funding | Inception date | Maturity date | |
| ? | ? | ? | ? | |
| Funds provided | ? | ? | ? | |
| ? | ? | ? | ? | |
| Subsidiary of the parent company | 1,100,000,000 | 30/09/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 1,400,000,000 | 29/09/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 1,700,000,000 | 29/09/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 1,490,000,000 | 21/10/2020 | Right to request return at any time | |
| Subsidiary of the parent company | 200,000,000 | 29/10/2020 | Right to request return at any time | |
| Subsidiary of the parent company | 300,000,000 | 10/05/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 700,000,000 | 07/05/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 200,000,000 | 27/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 300,000,000 | 27/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 700,000,000 | 29/10/2020 | Right to request return at any time | |
| Subsidiary of the parent company | 1,000,000,000 | 28/10/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 285,000,000 | 24/11/2020 | Right to request return at any time | |
| Subsidiary of the parent company | 473,000,000 | 24/11/2020 | Right to request return at any time | |
| Subsidiary of the parent company | 590,000,000 | 19/02/2020 | Right to request return at any time | |
| Subsidiary of the parent company | 460,000,000 | 19/02/2020 | Right to request return at any time | |
| Subsidiary of the parent company | 200,000,000 | 08/07/2021 | Right to request return at any time | |
| Subsidiary of the parent company | 300,000,000 | 08/07/2021 | Right to request return at any time | |
| Subsidiary of the parent company | 300,000,000 | 08/07/2021 | Right to request return at any time | |
| Subsidiary of the parent company | 50,000,000 | 26/01/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 29,000,000 | 26/01/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 158,000,000 | 26/01/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 123,000,000 | 26/01/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 261,000,000 | 26/01/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 81,000,000 | 26/01/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 90,000,000 | 26/01/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 173,000,000 | 26/01/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 433,000,000 | 26/01/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 20,000,000 | 11/08/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 32,000,000 | 14/04/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 50,000,000 | 11/08/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 50,000,000 | 15/07/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 91,000,000 | 11/08/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 60,000,000 | 15/07/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 151,000,000 | 14/04/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 56,000,000 | 15/07/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 46,000,000 | 15/07/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 26,701,133 | 14/04/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 52,000,000 | 14/04/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 65,000,000 | 14/04/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 300,000,000 | 06/04/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 200,000,000 | 22/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 800,000,000 | 22/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 300,000,000 | 22/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 600,000,000 | 22/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 600,000,000 | 22/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 400,000,000 | 22/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 800,000,000 | 22/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 600,000,000 | 22/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 500,000,000 | 22/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 200,000,000 | 22/06/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 20,000,000 | 16/12/2022 | Right to request return at any time | |
| Subsidiary of the parent company | 50,000,000 | 27/03/2015 | 26/12/2024 | |
| Subsidiary of the parent company | 30,000,000 | 21/01/2016 | 21/01/2025 | |
| Subsidiary of the parent company | 200,000,000 | 12/10/2020 | 12/10/2030 | |
| ? | ? | ? | ? | |
| Total | 19,395,701,133 | ? | ? |
(5) Remuneration of key management personnel
The Group and the Company
| Item | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Remuneration of key management personnel | RMB 86,665,000 | ? | RMB 110,629,000 |
????
????
The remuneration of key management personnel above does not include the one withrespect to share-based payments scheme.
6 Receivables from and payables to related parties
Receivables from related parties
The Group
| ? | Note | 2022 | ? | 2021 | ||||
| Item | Book value | ? | Provision for impairment | ? | Book value | ? | Provision for impairment | |
| ? | ? | ? | ? | ? | ? | ? | ? | |
| Cash at bank and on hand | (1) | 965,569,850 | ? | - | ? | 1,060,805,464 | ? | - |
| Accounts receivable | 1,070,848,317 | ? | 4,986,221 | ? | 88,954,909 | ? | 4,883,531 | |
| Prepayments | 6,615,367 | ? | - | ? | 1,118,145 | ? | - | |
| Other receivables | 16,588,534 | ? | - | ? | 1,901,777 | ? | - | |
| Contract assets | 2,402,974 | ? | - | ? | 122,743 | ? | - | |
????
????
The Company
| ? | Note | 2022 | ? | 2021 | ||||
| Item | Book value | ? | Provision for impairment | Book value | ? | Provision for impairment | ||
| ? | ? | ? | ? | ? | ||||
| Cash at bank and on hand | (1) | 8,850 | - | 6,830 | - | |||
| Accounts receivable | 4,867,860,690 | 4,315,658 | 4,827,924,553 | - | ||||
| Prepayments | 146,368 | - | 165,134 | - | ||||
| Other receivables | 19,686,877,080 | 16,868,539 | 15,287,017,182 | 2,964,404 | ||||
| Other non-current assets | 1,080,000,000 | - | 1,740,000,000 | - | ||||
????
????
Payables to related parties
The Group
| Item | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | |
| Accounts payable | 179,047,266 | ? | 142,557,107 | |
| Advance payments received | 188,623 | ? | 961,806 | |
| Contract liabilities | 34,164,291 | ? | 3,717,500 | |
| Other payables | 182,554,398 | ? | 178,187,139 | |
| Non-current liabilities due within one year | (2) | 6,000,000 | - | |
| Long-term loans | (2) | 1,257,250,000 | ? | 1,435,000,000 |
????
????
The Company
| Item | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | |
| Accounts payable | 27,646,402 | ? | 18,924,459 | |
| Advance payments received | 169,459 | ? | 3,212,352 | |
| Other payables | 2,921,972,111 | ? | 1,364,404,865 | |
| Long-term loans | (2) | 1,186,250,000 | ? | 1,435,000,000 |
| Other non-current liabilities | 96,394,661,805 | ? | 74,506,661,805 |
????
????
(1) The Group's and the Company's cash at bank and on hand were deposit in China
Minsheng Bank Co.
(2) The Group's and the Company's non-current liabilities and long-term borrowings due
within one year are borrowings from China Minsheng Bank Co.
7 Commitments of the related parties
As at balance sheet date, the commitments of the related parties, which are signed but notlisted in financial statement are as following:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Procurement of equipment | 69,753,978 | ? | 72,274,623 |
????
????
XI. Share-based payments
On 17 December 2020, the Board of Directors of the Company approved the implementationof share options and restricted share incentive plans from 2020. The shares for the shareoptions and restricted share incentive plans are from the Company’s Renminbi A-shareordinary shares repurchased from secondary market. The plans are presented as follows:
(a) Share option incentive plan
The initial grant date was 21 December 2020, and the implementation was completedon 25 December 2020. The actual number of grantees was 1,988, with a number ofgrants of 596,229,700 shares. The reserved grant date was 27 August 2021, the actualnumber of grantees was 110, and the number of grants is 33,000,000 shares, this grantwas completed on 22 October 2021.
The share options are exercised in three phases after 24 months from the grant date.The exercise ratios for each phase are 34%, 33%, and 33%, respectively. Thecorresponding exercise dates are 2 years, 3 years, and 4 years from the grant date.
When the Company’s performance meets the corresponding criteria, the proportion ofexercisable rights of the above-mentioned share options is determined based on thebusiness performance of the incentive object’s operation and the contribution value ofthe incentive object. In accordance with the plan, the Company will deregister thecurrent exercisable shares of the options obtained by the incentive objects if theexercise criteria stipulated in this plan are not met.
(b) Restricted share incentive plan
The grant date of restricted share incentive plan was 21 December 2020, and theimplementation was completed on 29 December 2020. The actual number of granteeswas 793, with a number of grants of 321,813,800 share.
The lock-up periods of the restricted share incentive plan are the 24, 36 and 48 monthsfrom the grant date, respectively. During the lock-up period, restricted shares grantedto the incentive object under this plan shall not be transferred, used for guarantee ordebt repayment before the lock-up release. Lock-up restricted shares are released inthree phases after 24 months from the grant date. The release ratios for each phaseare 34%, 33%, and 33%, respectively. The corresponding release dates are 2 years, 3years, and 4 years from the grant date. The actual number released shall be based onperformance assessment result for the previous year.
When the Company’s performance meets the corresponding criteria, the releaseproportion of the above-mentioned restricted shares is determined based on thebusiness performance of the incentive object’s operation and the contribution value ofthe incentive object. The Company will repurchase the locked restricted shares at thegranted price of the incentive objects if the release criteria stipulated in this plan are notmet, and the incentive object shall not release the restricted shares for the currentperiod.
As at 31 December 2022, the total costs recognised by the Group’s equity-settledshare-based payments in the consolidated financial statement was RMB 699,065,561,and the accumulated amount of capital reserve paid by equity-settled share-basedpayments amounted to RMB 1,364,808,372 (2021: 645,945,833). In the Company’sfinancial statements, the Company recognised its long-term equity investment of RMB534,225,046 in its subsidiary at the fair value of the equity instruments at the grantdate, and recognised expenses arising from share-based payments of RMB164,840,515, as well as a capital reserve of RMB 699,065,561.
Based on relevant provisions of the restricted share incentive plan for the serviceperiod, if the granted object resigns before the release date, the Company willrepurchase the restricted shares that have not been released at the subscription priceof the granted object. Please refer to Note V. 28 (1) for the repurchased obligation setout in other payables.
(1) Method for determining the fair value of equity instruments at the grant date is as
follows:
Share options:
The fair value of equity instruments at the grant date is determined based on thedifference between the assessed fair value of the exercisable share options at eachgrant date and the subscription price in RMB (RMB 1.68/share, RMB 1.93/share andRMB 2.09/share, respectively); the fair value of equity instruments at the reservedgrant date is determined based on the difference between the assessed fair value ofthe exercisable share options at each reserved grant date and the subscription price inRMB (RMB 1.70/share, RMB 2.02/share and RMB 2.17/share, respectively).
Restricted shares:
The fair value of equity instruments at the grant date is determined based on thedifference between the fair value of shares at the grant date and the subscription priceat RMB 2.68/share.
(2) Basis of determining the number of equity instruments expected to vest
At each balance sheet date during the vesting period, the best estimation is madeaccording to the latest information, such as the number of employees who are grantedoptions and the completion of performance indicators, and the number of equityinstruments expected to vest is revised accordingly. On the vesting date, the estimatednumber is equal to the number of equity instruments that are ultimately vested.
XII. Capital management
The Group’s primary objectives when managing capital are to safeguard its ability to continueas a going concern, so that it can continue to provide returns for shareholders, by pricingproducts and services commensurately with the level of risk and by securing access tofinance at a reasonable cost.
The Group defines “capital” as including all components of equity, less unaccrued proposeddividends. The balances of related party transactions are not regarded by the Group ascapital.
The Group’s capital structure is regularly reviewed and managed to achieve an optimalstructure and return for shareholders. Factors for the Group’s consideration include: its futurefunding requirements, capital efficiency, actual and expected profitability, expected cashflows, and expected capital expenditure. Adjustments are made to the capital structure inlight of changes in economic conditions affecting the Group.
The Group’s capital structure is monitored on the basis of an adjusted net debt-to-capitalratio (total liabilities divided by total assets). The capital management strategies exerted bythe Group remained unchanged from 2021. In order to maintain or adjust the ratio, the Groupmay adjust the amount of dividends paid to shareholders, request new loans, issue newshares, or sell assets to reduce debt.
As at 31 December 2022 and 31 December 2021, the Group’s asset-liability ratios are asfollows:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Asset-liability ratio | 51.96% | ? | 51.72% |
????
????
Neither the Company nor any of its subsidiaries are subject to externally imposed capitalrequirements.
XIII. Commitments and contingencies
1 Significant commitments
(1) Capital commitments
| The Group | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Contracts entered into but not performed or partially performed | 31,109,629,604 | ? | 36,353,906,810 |
| Contracts authorized but not entered into | 100,442,930,917 | ? | 84,007,549,386 |
| ? | ? | ? | ? |
| Total | 131,552,560,521 | ? | 120,361,456,196 |
????
????
The Group’s contracts authorised but not entered into mainly included the fixed assets thatFuzhou BOE Display Technology Co., Ltd. , Beijing BOE Chuangyuan Technology Co., Ltd. ,Chongqing BOE Display Technology Co., Ltd. , BOE Healthcare Investment & ManagementCo., Ltd. , Qingdao BOE Optoelectronics Technology Co., Ltd., BOE Wisdom IOTTechnology Co., Ltd., Chongqing BOE Smart Technology Co., Ltd. , BOE Varitronix Limitedand BOE Mled Technology Co., Ltd. planned to purchase in subsequent years and projectequipment that the Group planned to purchase in subsequent years.
| The Company | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Contracts entered into but not performed or partially performed | 28,350,937,574 | ? | 25,226,123,138 |
????
????
The Company’s contracts entered into but not performed or partially performed mainlyincluded guaranteed investments in Beijing BOE Chuangyuan Technology Co., Ltd. , BOEHealthcare Investment & Management Co., Ltd. , BOE Smart Technology Co., Ltd. andYunnan Invensight Optoelectronics Technology Co., Ltd.
2 Guarantee
(1) The Group as the guarantor
As at 31 December 2022, the Group did not have guarantees provided for externalenterprises.
(2) The Company as the guarantor
At 31 December 2022, Chengdu Optoelectronics pledged its land use right with carryingamount of RMB 39,337,190, machinery and equipment with carrying amount of RMB21,397,326,923 and plants and buildings with carrying amount of RMB 2,324,144,465 ascollaterals to obtain long-term loans of USD 578,700,000 and RMB 12,209,380,000. TheCompany provides joint-liability guarantee for the above loans.
At 31 December 2022, Yuansheng Optoelectronics pledged its land use rights with carryingamount of RMB 43,484,881, machinery and equipment with carrying amount of RMB5,459,351,367 and plant and buildings with carrying amount of RMB 2,018,273,173 ascollaterals to obtain long-term loans of RMB 1,186,370,000. The Company provides joint-liability guarantee for the above loans.
At 31 December 2022, Chongqing BOE Display pledged its land use right with carryingamount of RMB 159,786,737 as collaterals to obtain long-term loans of USD 1,034,000,000and RMB 5,226,000,000. The Company provides joint-liability guarantee for the above loans.In addition, the Company provides joint-liability guarantee for the letters of credit issued butnot accepted of USD 4,174,159 and JPY 5,451,000.
At 31 December 2022, Fuzhou BOE pledged its land use rights with carrying amount of RMB198,149,305, machinery and equipment with carrying amount of RMB 6,282,771,779 andplant and buildings with carrying amount of RMB 2,911,886,447 as collaterals to obtain long-term loans of USD 219,000,000 and RMB 815,740,000. The Company provides joint-liabilityguarantee for the above loans.
At 31 December 2022, Hefei Display Technology pledged its land use right with carryingamount of RMB 273,876,498, with machinery and equipment carrying amount of RMB12,507,752,146 and plants and buildings with carrying amount of RMB 3,489,590,026 ascollaterals to obtain long-term loans of USD 585,090,000 and RMB 3,374,494,080. TheCompany provides joint-liability guarantee for the above loans.
At 31 December 2022, Mianyang BOE pledged its land use rights with carrying amount ofRMB 372,381,841, machinery and equipment with carrying amount of RMB 24,533,264,774and plant and buildings with carrying amount of RMB 4,761,337,214 as collaterals to obtainlong-term loans of USD 694,730,000 and RMB 13,579,379,340. The Company providesjoint-liability guarantee for the above loans.
At 31 December 2022, Wuhan BOE pledged its land use right with carrying amount of RMB244,216,967, machinery and equipment with carrying amount of RMB 22,797,889,738 andplants and buildings with carrying amount of RMB 4,741,134,307 as collaterals to obtainlong-term loans of USD 1,181,500,000 and RMB 6,956,330,000. The Company providesjoint-liability guarantee for the above loans. In addition, the Company provides joint-liabilityguarantee for the letters of credit issued but not accepted of JPY 965,950,000.
At 31 December 2022, Chengdu BOE Hospital Co., Ltd. obtain long-term loans of RMB1,403,092,146. The Company provides joint-liability guarantee for the above loans.
At 31 December 2022, Nanjing BOE Display pledged its plant and buildings with carryingamount of RMB 4,052,329,316 as collaterals to obtain long-term loans of USD 65,440,000.The Company guarantees 60% of the above loan (i.e., USD 39,264,000) by means of acounter guarantee with joint-liability guarantee. Nanjing BOE Display pledged its machineryand equipment with carrying amount of RMB 319,824,268 as collaterals to obtain financelease loans of RMB 107,500,000. The Company provides joint-liability guarantee for theabove loans. In addition, the Company provided joint-liability guarantee by means of counterguarantee for its short-term borrowings of RMB 900,000,000 and long-term borrowings ofRMB 1,200,000,000.
XIV . Segment reporting
1 Segment reporting considerations
The Group management reviews the operation performance and allocates resourcesaccording to the business segments below.
(a) Display business — The display business integrates design and manufacturing of
display devices and strives to offer TFT-LCD, AMOLED, Microdisplay and otherintelligent interface devices. This business focuses on providing high-qualitysmartphones, tablet PCs, laptops, monitors, TVs, vehicles, electronic shelf label (ESL),industrial control, domiciliary medical applications, wearable devices, interactivewhiteboards , splice displays, business devices, VR/AR devices and other displaydevices for customers.
(b) IInternet of Things (IoT) innovation business — The IoT innovation business integrates
manufacturing models for system solution design, providing customers with competitivesmart terminal products in the fields of TVs, monitors, laptops, tablet PCs, low powerconsumption products, IoT, 3D displays, etc. With artificial intelligence and big data astechnical support, it focuses on products and services that integrate software andhardware, providing integrated solutions in IoT segments such as smart finance, smartindustrial parks, visual arts, smart administration, smart transportation etc.
(c) Sensor business — The sensor and application solutions integrate manufacturing
models for system solution design. It focuses on various fields such as medical bio-detection, transportation and construction intelligence visions, consumer electronics,microwave communication and industrial sensing, providing customers with integrateddesign and manufacturing of sensor devices and system solution services. Specificproducts and solutions include flat panel X-ray detectors (FPXD), digital microfluidicchips, PDLC glass, fingerprint identification systems, industrial sensors, etc.
(d) MLED business — The MLED integrates design and manufacturing of devices and
provides Mini-LED backlight products with strong reliability and high dynamic rangethat allow precisely brightness adjustment for smartphones, tablet PCs, laptops,monitors, TVs, car displays, wearables and other products; besides, it providesMini/Micro-LED display products with high brightness, strong reliability and highcontrast for the usage of outdoor display, commercial display, transparent display,special display and other scenarios.
(e) Smart medicine and engineering business — The smart medicine and engineering
provides professional healthcare services and features the innovative integration ofmedical and engineering by integrating engineering technology and medical science.Adhering to people-centred thought, this business focuses on family, community andhospital, connecting testing equipment, medical personnel and costumers by health IoTplatform, constructing intelligent health administrative ecosystem, providing customerswith a "prevision-treatment-nursing" full-chained health services.
(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, IoT innovation business, sensor and application solutions, MLEDand smart medicine and engineering and other businesses. As these businesssegments manufacture and sale different products, apply different manufacturingprocesses and specifies in gross profit, the business segments are managedindependently. The management evaluates the performance and allocates resourcesaccording to the profit of each business segment and does not take financing cost andinvestment income into account.
2 Accounting policies for the measurements of reporting segments
For the purposes of assessing segment performance, the Group’s management regularly reviews the revenue and costs attributable to eachreportable segment. Inter-segment sales are determined with reference to prices charged to external parties for similar orders.
| ? | 2022 | ||||||||||||||
| ? | Display business | ? | IoT innovation business | ? | Sensor business | ? | MLED business | ? | Smart medicine & engineering business | ? | Others | ? | Offsetting | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Operating income | 157,949,486,684 | ? | 27,245,456,382 | ? | 306,552,648 | ? | 846,820,654 | ? | 2,203,142,669 | ? | 11,232,889,896 | ? | (21,370,617,754) | ? | 178,413,731,179 |
| Operating costs | 145,362,979,605 | ? | 24,666,540,176 | ? | 241,869,035 | ? | 864,618,690 | ? | 1,809,802,648 | ? | 4,446,526,834 | ? | (19,861,770,836) | ? | 157,530,566,152 |
?
?
| ? | 2021 | ||||||||||||||
| ? | Display business | ? | IoT innovation business | ? | Sensor business | ? | MLED business | ? | Smart medicine & engineering business | ? | Others | ? | Offsetting | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Operating income | 203,938,462,632 | ? | 28,379,332,761 | ? | 216,187,403 | ? | 458,249,184 | ? | 1,846,551,592 | ? | 11,308,029,354 | ? | (25,111,094,914) | ? | 221,035,718,012 |
| Operating costs | 150,165,560,834 | ? | 25,169,654,631 | ? | 166,800,549 | ? | 444,702,497 | ? | 1,370,997,955 | ? | 3,100,671,887 | ? | (23,119,562,572) | ? | 157,298,825,781 |
???
???
The Group develops various businesses by using common assets and liabilities and therefore, it could not analyse assets and liabilities of eachreportable segment respectively by business.
3 Secondary segment reporting (regional segments)
(a) The geographical information is based on the location of customers receiving services
or goods
The following table sets out information about the geographical location of the Group’soperating income from external customers:
| ? | Operating income from external customers | ||
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Mainland China | 74,124,463,690 | ? | 95,015,382,254 |
| Other Asian countries and regions | 63,351,896,814 | ? | 96,677,882,907 |
| Europe | 5,745,261,109 | ? | 5,478,685,804 |
| America | 35,121,526,346 | ? | 23,770,495,392 |
| Other regions | 70,583,220 | ? | 93,271,655 |
| ? | ? | ? | ? |
| Total | 178,413,731,179 | ? | 221,035,718,012 |
????
????
(b) Divided based on asset locations
The geographical location of the specified non-current assets is based on the physicallocation of the asset, in the case of fixed assets; the location of the operation to whichthey are allocated, in the case of intangible assets and goodwill; and the location ofoperations, in the case of interests in associates and joint ventures. Most of the non-current assets in the Group are located in the Chinese mainland.
4 Major customers
The Group has one customer (2021: None), the operating income from which is over 10% ofthe Group’s total operating income (2021: Nil) in display business. The operating incomefrom the customer, which represents approximately 16% of the Group’s total operatingincome, is summarised in the table below:
| Customer | 2022 | 2021 |
| RMB | RMB | |
| Customer 1 | 28,511,004,302 | * |
Note: * means that annual income from the customer accounted for less than 10%.
XV. Notes to the Company’s financial statements
1 Accounts receivable
(1) The Company’s accounts receivable by customer type:
| ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Amounts due from related parties | 4,867,860,690 | ? | 4,827,924,553 |
| Amounts due from other customers | 4,289,987 | ? | 5,195,374 |
| ? | ? | ? | ? |
| Sub-total | 4,872,150,677 | ? | 4,833,119,927 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 8,485,408 | ? | 4,264,652 |
| ? | ? | ? | ? |
| Total | 4,863,665,269 | ? | 4,828,855,275 |
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????
(2) The ageing analysis of accounts receivable is as follows:
| Ageing | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Within 1 year (inclusive) | 3,813,706,724 | ? | 4,506,053,150 |
| Over 1 year but within 2 years (inclusive) | 742,074,869 | ? | 184,286,182 |
| Over 2 years but within 3 years (inclusive) | 182,932,357 | ? | 141,556,611 |
| Over 3 years | 133,436,727 | ? | 1,223,984 |
| ? | ? | ? | ? |
| Sub-total | 4,872,150,677 | ? | 4,833,119,927 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 8,485,408 | ? | 4,264,652 |
| ? | ? | ? | ? |
| Total | 4,863,665,269 | ? | 4,828,855,275 |
????
????
The ageing is counted starting from the date when accounts receivable are recognised.
(3) Accounts receivable by provisioning method
| ? | 2022 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 8,406,011 | ? | 0% | ? | 8,406,011 | ? | 100% | ? | - |
| - Customers with low credit risk | 4,863,603,112 | ? | 100% | ? | - | ? | 0% | ? | 4,863,603,112 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with moderate credit risk | 141,554 | ? | 0% | ? | 79,397 | ? | 56% | ? | 62,157 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 4,872,150,677 | ? | 100% | ? | 8,485,408 | ? | 0% | ? | 4,863,665,269 |
????
????
| ? | 2021 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 4,090,353 | ? | 0% | ? | 4,090,353 | ? | 100% | ? | - |
| - Customers with low credit risk | 4,828,194,553 | ? | 100% | ? | - | ? | 0% | ? | 4,828,194,553 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with moderate credit risk | 835,021 | ? | 0% | ? | 174,299 | ? | 21% | ? | 660,722 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 4,833,119,927 | ? | 100% | ? | 4,264,652 | ? | 0% | ? | 4,828,855,275 |
???
???
(4) Additions and recoveries of provision for bad and doubtful debts during the year:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Balance at the beginning of the year | 4,264,652 | ? | 20,301,553 |
| Charge during the year | 4,315,658 | ? | 135,218 |
| Recoveries during the year | (94,902) | ? | (136) |
| Written-off during the year | - | ? | (16,171,983) |
| ? | ? | ? | ? |
| Balance at the end of the year | 8,485,408 | ? | 4,264,652 |
????
????
(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB 4,466,867,289,amounting to 92% of the total accounts receivable at the end of the year, and no provisionsfor bad and doubtful debts were made at the end of the year.
2 Other receivables
| ? | Note | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? | ? |
| Dividends receivable | (1) | 333,352,986 | ? | 219,715,564 |
| Others | (2) | 19,544,792,389 | ? | 15,230,115,046 |
| ? | ? | ? | ? | ? |
| Total | ? | 19,878,145,375 | ? | 15,449,830,610 |
????
????
(1) Dividends receivable
| ? | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Beijing Matsushita Colour CRT Co., Ltd. | 333,352,986 | ? | 214,240,861 |
| BOE (Korea) Co.,Ltd. | - | ? | 5,474,703 |
| ? | ? | ? | ? |
| Total | 333,352,986 | ? | 219,715,564 |
???
???
(2) Others
(a) The Company’s other receivables by customer type:
| Customer type | 31 December 2022 | ? | 31 December 2021 |
| ? | ? | ? | ? |
| Amounts due from subsidiaries | 19,338,630,021 | ? | 15,065,482,829 |
| Amounts due from other related parties | 14,894,073 | ? | 1,818,789 |
| Amounts due from other customers | 211,976,091 | ? | 169,615,338 |
| ? | ? | ? | ? |
| Sub-total | 19,565,500,185 | ? | 15,236,916,956 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 20,707,796 | ? | 6,801,910 |
| ? | ? | ? | ? |
| Total | 19,544,792,389 | ? | 15,230,115,046 |
????
????
(b) The Company’s other receivables by currency:
As at 31 December 2022 and 31 December 2021, there is no other receivables in foreigncurrency.
(c) The ageing analysis of other receivables of the Company is as follows:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Within 1 year (inclusive) | 15,304,792,246 | ? | 5,896,130,713 |
| Over 1 year but within 2 years (inclusive) | 2,669,590,657 | ? | 6,954,523,850 |
| Over 2 years but within 3 years (inclusive) | 1,515,874,424 | ? | 2,348,713,430 |
| Over 3 years | 75,242,858 | ? | 37,548,963 |
| ? | ? | ? | ? |
| Sub-total | 19,565,500,185 | ? | 15,236,916,956 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 20,707,796 | ? | 6,801,910 |
| ? | ? | ? | ? |
| Total | 19,544,792,389 | ? | 15,230,115,046 |
????
????
The ageing is counted starting from the date when other receivables are recognised.
(d) Other receivables by provisioning method
| ? | 2022 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Individual assessment | 20,707,796 | 0% | ? | 20,707,796 | ? | 100% | ? | - | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Collective assessment | 19,544,792,389 | 100% | ? | - | ? | 0% | ? | 19,544,792,389 | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Total | 19,565,500,185 | 100% | ? | 20,707,796 | ? | 0% | ? | 19,544,792,389 | |
???
???
| ? | 2021 | ||||||||
| ? | Book value | ? | Provision for impairment | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Individual assessment | 6,801,910 | 0% | ? | 6,801,910 | ? | 100% | ? | - | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Collective assessment | 15,230,115,046 | 100% | ? | - | ? | 0% | ? | 15,230,115,046 | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Total | 15,236,916,956 | 100% | ? | 6,801,910 | ? | 0% | ? | 15,230,115,046 | |
??
??
(e) Movements of provisions for bad and doubtful debts
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Balance at the beginning of the year | 6,801,910 | ? | 49,939,652 |
| Charge for the year | 13,905,886 | ? | 5,112,258 |
| Written-off during the year | - | ? | (48,250,000) |
| ? | ? | ? | ? |
| Balance at the end of the year | 20,707,796 | ? | 6,801,910 |
????
????
(f) Other receivables categorised by nature
| Nature of other receivables | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | |
| Transaction amount | (i) | 19,338,630,021 | ? | 15,065,482,829 |
| Others | 226,870,164 | ? | 171,434,127 | |
| ? | ? | ? | ? | |
| Sub-total | 19,565,500,185 | ? | 15,236,916,956 | |
| ? | ? | ? | ? | |
| Less: Provision for bad and doubtful debts | 20,707,796 | ? | 6,801,910 | |
| ? | ? | ? | ? | |
| Total | 19,544,792,389 | ? | 15,230,115,046 |
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????
(i) As of December 31, 2022 and December 31, 2021, the Company's current accounts
mainly consisted of loans receivable from subsidiaries.
(g) Five largest other receivables by debtor at the end of the year
Other receivables at the end of the year due from the top five debtors of the Companyamounted to RMB 14,977,867,884 in total, most of which are amounts due to/fromrelated parties within the Group. No provision is made for bad and doubtful debts afterassessment.
3 Long-term equity investments
(1) The Company’s long-term equity investments by category:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Investments in subsidiaries | 211,178,767,516 | ? | 207,777,846,290 |
| Investments in associates and joint ventures | 3,162,185,504 | ? | 3,199,974,945 |
| ? | ? | ? | ? |
| Sub-total | 214,340,953,020 | ? | 210,977,821,235 |
| ? | ? | ? | ? |
| Less: Provision for impairment | 32,000,000 | ? | 32,000,000 |
| ? | ? | ? | ? |
| Total | 214,308,953,020 | ? | 210,945,821,235 |
????
????
The closing balance of long-term equity investments represents the Company's impairmentprovision for its subsidiary Beijing BOE Vacuum Technology Co., Ltd. in the prior year ofRMB 32,000,000.
(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. | 4,198,742,954 | - | 14,526,251 | (4,172,288,084) | 40,981,121 | - | - | ||||||
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 25,055,603,860 | - | 53,356,143 | - | 25,108,960,003 | - | - | ||||||
| Hefei BOE Optoelectronics Technology Co., Ltd. | 9,032,079,808 | - | 31,042,976 | - | 9,063,122,784 | - | - | ||||||
| Beijing BOE Display Technology Co., Ltd. | 17,520,168,739 | - | 127,142,375 | - | 17,647,311,114 | - | - | ||||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | 20,122,733,179 | - | 33,217,425 | - | 20,155,950,604 | - | - | ||||||
| Ordos Yuansheng Optoelectronics Co., Ltd. | 11,808,874,625 | - | 5,433,063 | - | 11,814,307,688 | - | - | ||||||
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 19,584,823,404 | - | 14,834,363 | - | 19,599,657,767 | - | - | ||||||
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 14,687,793,781 | - | 13,578,397 | - | 14,701,372,178 | - | - | ||||||
| Beijing BOE Video Technology Co., Ltd. (“BOE Video”) | 4,094,913,328 | 330,595,800 | 1,848,592 | - | 4,427,357,720 | - | - | ||||||
| Beijing BOE Vacuum Electronics Co., Ltd. | 19,577,537 | - | 355,992 | - | 19,933,529 | - | - | ||||||
| Beijing BOE Vacuum Technology Co., Ltd. | 32,000,000 | - | - | - | 32,000,000 | 32,000,000 | 32,000,000 | ||||||
| Beijing Yinghe Century Co., Ltd. | 342,184,564 | - | 10,213,512 | - | 352,398,076 | - | - | ||||||
| BOE Optical Science and technology Co., Ltd. | 662,168,271 | - | 5,309,002 | - | 667,477,273 | - | - | ||||||
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | 36,624,841 | - | 5,361,914 | - | 41,986,755 | - | - | ||||||
| BOE (Hebei) Mobile Technology Co., Ltd. | 1,354,940,194 | - | 1,343,361 | - | 1,356,283,555 | - | - | ||||||
| Beijing BOE Multimedia Technology Co., Ltd. | 400,000,000 | - | - | - | 400,000,000 | - | - | ||||||
| Beijing BOE Energy Technology Co., Ltd. | 854,286,893 | - | 3,294,489 | - | 857,581,382 | - | - | ||||||
| Beijing BOE Life Technology Co., Ltd. | 10,000,000 | - | - | - | 10,000,000 | - | - | ||||||
| Beijing Zhongxiangying Technologies Co., Ltd. | 100,578,919 | - | 1,688,249 | - | 102,267,168 | - | - | ||||||
| BOE Semi-conductor Co., Ltd. | 9,450,000 | - | - | - | 9,450,000 | - | - | ||||||
| BOE Optoelectronics Holding Co., Ltd. | 3,211,961,538 | 275,723,224 | - | - | 3,487,684,762 | - | - | ||||||
| BOE Healthcare Investment & Management Co., Ltd. | 7,283,180,411 | 540,000,000 | 893,030 | - | 7,824,073,441 | - | - | ||||||
| Hefei BOE Display Technology Co., Ltd. | 2,020,815,508 | - | 20,764,412 | - | 2,041,579,920 | - | - | ||||||
| Beijing BOE Technology Development Co., Ltd. | 1,724,087 | - | 788,267 | - | 2,512,354 | - | - | ||||||
| BOE Wisdom IOT Technology Co., Ltd. | 13,441,936 | - | 14,954,155 | - | 28,396,091 | - | - | ||||||
| Hefei BOE Zhuoyin Technology Co., Ltd. | 602,251,996 | - | 2,452,167 | - | 604,704,163 | - | - | ||||||
| Beijing BOE Real Estate Co., Ltd. | 8,568,773 | - | 911,991 | - | 9,480,764 | - | - | ||||||
| Beijing BOE Marketing Co., Ltd. | 31,014,071 | - | 559,425 | - | 31,573,496 | - | - | ||||||
| BOE (Korea) Co., Ltd. | 3,900,987 | - | 3,194,914 | - | 7,095,901 | - | - | ||||||
| Yunnan Invensight Optoelectronics Technology Co., Ltd. (formerly known as Kunming BOE Display Technology Co., Ltd.) | 1,514,944,989 | - | 3,652,290 | - | 1,518,597,279 | - | - | ||||||
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 22,329,872,372 | - | 12,400,963 | - | 22,342,273,335 | - | - | ||||||
| Beijing BOE Sensing Technology Co., Ltd. | 221,944,202 | 4,263,288,084 | 10,873,303 | - | 4,496,105,589 | - | - | ||||||
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 12,511,267,959 | - | 13,217,462 | - | 12,524,485,421 | - | - | ||||||
| Chongqing BOE Display Technology Co., Ltd. | 9,085,662,024 | 218,750,000 | 8,167,786 | - | 9,312,579,810 | - | - | ||||||
| Fuzhou BOE Display Technology Co., Ltd. | 22,454,088 | - | 382,638 | - | 22,836,726 | - | - | ||||||
| Beijing Matsushita Colour CRT Co., Ltd. | 2,527,690 | - | 2,623,935 | - | 5,151,625 | - | - | ||||||
| BOE Innovation Investment Co., Ltd. | 2,964,000,000 | 234,000,000 | 191,319 | - | 3,198,191,319 | - | - | ||||||
| Hefei BOE Xingyu Technology Co., Ltd. | 335,731,430 | 169,364,156 | 1,271,650 | - | 506,367,236 | - | - | ||||||
| BOE Education Technology Co., Ltd. | 27,881,265 | - | 1,378,009 | - | 29,259,274 | - | - | ||||||
| Dongfang Chengqi (Beijing) Business Technology Co., Ltd. | 8,000,000 | 2,000,000 | 3,786,416 | - | 13,786,416 | - | - | ||||||
| BOE Smart Technology Co., Ltd. | 1,822,000,000 | 250,000,000 | - | - | 2,072,000,000 | - | - | ||||||
| Nanjing BOE Display Technology Co., Ltd. | 5,591,893,772 | - | 6,736,025 | - | 5,598,629,797 | - | - | ||||||
| Chengdu BOE Display Sci-tech Co., Ltd. (Chengdu Display Sci-tech) | 7,550,673,783 | - | 6,697,855 | - | 7,557,371,638 | - | - | ||||||
| BOE Mled Technology Co., Ltd. | 600,366,251 | 700,000,000 | 12,427,674 | - | 1,312,793,925 | - | - | ||||||
| BOE Environmental Energy Technology Co., Ltd. | - | 50,000,000 | - | - | 50,000,000 | - | - | ||||||
| Chengdu BOE Display Technology Co., Ltd. | - | 5,263,000 | - | - | 5,263,000 | - | - | ||||||
| Others* | 84,222,261 | - | 83,353,256 | - | 167,575,517 | - | - | ||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ||||||
| Total | 207,777,846,290 | 7,038,984,264 | 534,225,046 | (4,172,288,084) | 211,178,767,516 | 32,000,000 | 32,000,000 | ||||||
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????
* Others are the equity incentive funds paid for subsidiaries of the subsidiaries of the 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 (loss) / income under equity method | ? | Other comprehensive income | ? | Other equity movements | ? | Declared distribution of cash dividends or profits | ? | Balance at the end of the year | ? | Balance of provision for impairment at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Erdos BOE Energy Investment Co., Ltd. | 76,107,007 | ? | 60,800,000 | ? | - | ? | (447,397) | ? | - | ? | - | ? | - | ? | 136,459,610 | ? | - |
| Beijing Xindongneng Investment Fund (Limited Partnership) | 2,088,917,867 | ? | - | ? | (129,798,594) | ? | 241,130,621 | ? | (61,062,079) | ? | - | ? | (104,317,491) | ? | 2,034,870,324 | ? | - |
| Beijing Innovation Industry Investment Co., Ltd. | 207,564,573 | ? | - | ? | - | ? | 15,651,980 | ? | - | ? | - | ? | - | ? | 223,216,553 | ? | - |
| Beijing Electric Control Industry Investment Co., Ltd. | 231,777,557 | ? | 21,234,700 | ? | - | ? | (2,556,780) | ? | 7,694,430 | ? | - | ? | - | ? | 258,149,907 | ? | - |
| Beijing BOE Art Cloud Technology Co., Ltd. | 215,529,981 | ? | - | ? | - | ? | 9,145,156 | ? | - | ? | 134,476,619 | ? | - | ? | 359,151,756 | ? | - |
| Chengdu BOE Automotive Electronics Co., Ltd. (formerly known as Chengdu BOE Motor Electronics Co., Ltd) | 200,000,000 | ? | - | ? | (200,000,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| Others | 180,077,960 | ? | - | ? | (87,070,668) | ? | 65,938,280 | ? | 63,317 | ? | 6,910,177 | ? | (15,581,712) | ? | 150,337,354 | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| ? | 3,199,974,945 | ? | 82,034,700 | ? | (416,869,262) | ? | 328,861,860 | ? | (53,304,332) | ? | 141,386,796 | ? | (119,899,203) | ? | 3,162,185,504 | ? | - |
????
????
4 Deferred tax assets/deferred tax liabilities
| ? | 31 December 2022 | ? | 31 December 2021 | ||||
| Items | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/ (liabilities) | ? | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/(liabilities) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax assets: | ? | ? | ? | ? | ? | ? | ? |
| Provision for impairment of assets | 84,310,502 | ? | 12,646,575 | ? | 66,183,860 | ? | 9,927,579 |
| Changes in fair value of investments in other equity instruments | 142,547,604 | ? | 21,382,141 | ? | 139,523,200 | ? | 20,928,480 |
| Depreciation of fixed assets | 181,992,613 | ? | 27,298,892 | ? | 156,677,700 | ? | 23,501,655 |
| Government grant | 143,385,420 | ? | 21,507,813 | ? | 209,807,147 | ? | 31,471,072 |
| Others | 38,342,471 | ? | 5,751,371 | ? | 59,527,066 | ? | 8,929,060 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 590,578,610 | ? | 88,586,792 | ? | 631,718,973 | ? | 94,757,846 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | (88,586,792) | ? | ? | ? | (94,757,846) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | - | ? | ? | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax liabilities: | ? | ? | ? | ? | ? | ? | ? |
| Technology royalty receivable from subsidiaries | (1,250,000,000) | ? | (187,500,000) | ? | (2,050,000,000) | ? | (307,500,000) |
| Others | (87,160,432) | ? | (13,074,064) | ? | (87,160,432) | ? | (13,074,064) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | (1,337,160,432) | ? | (200,574,064) | ? | (2,137,160,432) | ? | (320,574,064) |
?
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | 88,586,792 | ? | ? | ? | 94,757,846 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | (111,987,272) | ? | ? | ? | (225,816,218) |
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5 Other payables
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| Dividends payable | ? | 6,410,514 | ? | 6,561,972 |
| Others | (1) | 4,242,980,632 | ? | 2,874,322,796 |
| ? | ? | ? | ? | ? |
| Total | ? | 4,249,391,146 | ? | 2,880,884,768 |
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(1) Others
(a) The Company’s other payables by category are as follows:
| ? | Note | 2022 | 2021 |
| ? | ? | ? | ? |
| Amounts due to/from subsidiaries | ? | 2,912,284,353 | 1,364,404,865 |
| Repurchase obligation of restricted shares | V.39 | 753,440,228 | 835,215,390 |
| Purchase of projects, equipment and intangible assets | ? | 405,997,313 | 462,535,293 |
| Others | ? | 171,258,738 | 212,167,248 |
| ? | ? | ? | ? |
| Total | ? | 4,242,980,632 | 2,874,322,796 |
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(b) The Company’s other payables by currency:
| ? | 2022 | ? | 2021 | |||||||
| ? | Amount in original currency | ? | Exchange rate | RMB/RMB equivalents | Amount in original currency | Exchange rate | ? | RMB/RMB equivalents | ||
| ? | ? | ? | ? | ? | ? | ? | ||||
| RMB | ? | ? | 2,182,655,332 | ? | ? | 2,536,057,636 | ||||
| USD | 295,816,014 | 6.9646 | 2,060,240,211 | 52,998,757 | 6.3757 | 337,904,175 | ||||
| EUR | 11,463 | 7.4229 | 85,089 | 50,000 | 7.2197 | 360,985 | ||||
| ? | ? | ? | ? | ? | ? | ? | ||||
| Total | ? | ? | 4,242,980,632 | ? | ? | 2,874,322,796 | ||||
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6 Long-term loans
| ? | 2022 | ? | 2021 | ||||
| ? | ? | ? | Credited/ collateralised | ? | ? | ? | Credited/ collateralised |
| ? | RMB | ? | guaranteed/ pledged | ? | RMB | ? | guaranteed/ pledged |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Bank loans | ? | ? | ? | ? | ? | ? | ? |
| - RMB | 42,222,030,392 | ? | Credited | ? | 43,079,530,231 | ? | Credited |
| Less: Long-term loans due within one year | 2,664,530,392 | ? | Credited | ? | 10,871,030,231 | ? | Credited |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 39,557,500,000 | ? | ? | ? | 32,208,500,000 | ? | ? |
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The interest rate of RMB long-term loans for the Company ranged from 0% to 3.53% in 2022(2021: 0% to 3.77%).
7 Other non-current liabilities
| Item | 31 December 2022 | 31 December 2021 | ? | |
| ? | ? | ? | ||
| Payables to related parties | 96,394,661,805 | 74,506,661,805 |
As of December 31, 2022 and December 31, 2021, the Company's payables to relatedparties mainly consisted of loans payables from subsidiaries.
8 Capital reserve
| Items | Share premium | Other capital reserves | ? | Total |
| ? | ? | ? | ? | |
| Balance at the beginning of the year | 53,751,381,484 | (153,348,332) | 53,598,033,152 | |
| Add: Equity-settled share-based payments | - | 699,065,561 | 699,065,561 | |
| Other movements in equity of associates | - | 141,386,796 | 141,386,796 | |
| Cancellation of treasury shares | (641,811,942) | - | (641,811,942) | |
| Others | (42,952,736) | (60,093,618) | (103,046,354) | |
| ? | ? | ? | ? | |
| Balance at the end of the year | 53,066,616,806 | 627,010,407 | 53,693,627,213 |
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9 Other comprehensive income
| ? | ? | ? | Movements during the year | ? | ? | ||||||
| Item | Balance at the beginning of the year | ? | Before-tax amount | ? | Less: Income tax expense | ? | Less: Transfer of other comprehensive income to profit or loss | Less: Transfer of other comprehensive income to retained earnings | ? | Balance at the end of the year | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Items that will not be reclassified to profit or loss | 89,258,107 | ? | (56,392,053) | ? | (453,661) | ? | - | 32,873,780 | ? | 445,935 | |
| Including: Other comprehensive income recognised under equity method | 207,852,822 | ? | (53,367,649) | ? | - | ? | - | 32,873,780 | ? | 121,611,393 | |
| Changes in fair value of investments in other equity instruments | (118,594,715) | ? | (3,024,404) | ? | (453,661) | ? | - | - | ? | (121,165,458) | |
| Items that may be reclassified to profit or loss | (233,457) | ? | 63,317 | ? | - | ? | (64,550) | - | ? | (105,590) | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Total | 89,024,650 | ? | (56,328,736) | ? | (453,661) | ? | (64,550) | 32,873,780 | ? | 340,345 | |
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10 Retained earnings
| Item | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Retained earnings at the beginning of the year | 11,950,975,927 | ? | 11,954,088,031 |
| Add: Net profits for the year | 3,481,863,512 | ? | 4,396,496,566 |
| Less: Appropriation for statutory surplus reserve | 348,186,351 | ? | 439,649,657 |
| Interest on holders of other equity instruments | 530,695,890 | ? | 533,600,000 |
| Dividends to ordinary shares | 7,958,923,130 | ? | 3,476,073,919 |
| Transfer of other comprehensive income to retained earnings | (29,586,402) | ? | (49,714,906) |
| ? | ? | ? | ? |
| Retained earnings at the end of the year | 6,624,620,470 | ? | 11,950,975,927 |
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11 Operating income and operating costs
| ? | 2022 | ? | 2021 | ||||
| Item | Income | ? | Cost | ? | Income | ? | Cost |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Principal activities | 4,826,443,711 | ? | 9,746,176 | ? | 5,664,683,841 | ? | 8,880,161 |
| Other operating activities | 46,885,004 | ? | 334,092 | ? | 52,314,193 | ? | 7,579,293 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 4,873,328,715 | ? | 10,080,268 | ? | 5,716,998,034 | ? | 16,459,454 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Including: Revenue from contracts with customers | 4,758,053,462 | ? | 417,034 | ? | 5,594,507,267 | ? | 6,773,342 |
| Other income | 115,275,253 | ? | 9,663,234 | ? | 122,490,767 | ? | 9,686,112 |
12 Investment income
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Income from long-term equity investments accounted for using the cost method | 1,221,116,853 | ? | 1,841,946,602 |
| Income from long-term equity investments accounted for using the equity method | 328,861,860 | ? | 864,640,400 |
| Investment income from disposal of long-term equity investments | 30,000,000 | ? | 45,527,110 |
| Dividend income from investments in other equity instruments | 206,209 | ? | 3,554,579 |
| Including: Dividend income from investments in other equity instruments held at the balance sheet date | 206,209 | ? | 3,554,579 |
| Others | 353,903,009 | ? | - |
| ? | ? | ? | ? |
| Total | 1,934,087,931 | ? | 2,755,668,691 |
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13 Income tax expenses
| ? | Note | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| Current tax expense for the period based on tax law and regulations | ? | 315,456,182 | ? | 418,134,244 |
| Changes in deferred tax assets/liabilities | (1) | (113,375,285) | ? | (157,278,240) |
| ? | ? | ? | ? | ? |
| Total | ? | 202,080,897 | ? | 260,856,004 |
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(1) The analysis of changes in deferred tax assets/liabilities is set out below:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Origination and reversal of temporary differences | (113,375,285) | ? | (157,278,240) |
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(2) Reconciliation between income tax expenses and accounting profit:
| Item | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Profit before taxation | 3,683,944,409 | ? | 4,657,352,570 |
| Expected income tax expense at tax rate of 15% | 552,591,661 | ? | 698,602,886 |
| Add: Non-deductible expenses | 32,425,844 | ? | 22,551,281 |
| Non-taxable income | (253,782,990) | ? | (362,122,686) |
| Tax deduction for R&D activities | (129,158,755) | ? | (107,936,270) |
| Others | 5,137 | ? | 9,760,793 |
| ? | ? | ? | ? |
| Income tax expenses | 202,080,897 | ? | 260,856,004 |
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14 Supplementary information on cash flow statement
(1) Supplement to the cash flow statement
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| (a) Reconciliation of net profit to cash flows from operating activities: | ? | ? | ? |
| ? | ? | ? | ? |
| Net profit | 3,481,863,512 | ? | 4,396,496,566 |
| Add: Credit losses | 18,126,642 | ? | 5,247,340 |
| Depreciation of fixed assets, investment properties and right-of-use assets | 198,186,954 | ? | 186,180,161 |
| Amortisation of intangible assets | 205,316,168 | ? | 175,887,643 |
| Amortisation of long-term deferred expenses | 53,563,810 | ? | 74,101,005 |
| Loss on disposal of fixed assets, intangible assets and other long-term assets | - | ? | 773,327 |
| Losses from scrapping of fixed assets | 11,563 | ? | - |
| Financial expenses | 572,555,726 | ? | 796,624,497 |
| Investment income | (1,934,087,931) | ? | (2,755,668,691) |
| Share-based payments | 164,840,515 | ? | 139,972,018 |
| Change in deferred income | (916,302,566) | ? | (910,723,593) |
| Changes in deferred tax assets and liabilities | (113,828,946) | ? | (159,881,386) |
| Decrease in gross inventories | 787,291 | ? | 2,769,045 |
| Decrease / (increase) in operating receivables | 780,128,458 | ? | (83,241,004) |
| Increase / (decrease) in operating payables | 1,173,595,580 | ? | (1,164,437,376) |
| ? | ? | ? | ? |
| Net cash inflow from operating activities | 3,684,756,776 | ? | 704,099,552 |
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| (b) Net changes in cash and cash equivalents: | ? | ? | ? |
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Cash and cash equivalents at the end of the year | 7,111,879,033 | ? | 5,599,937,349 |
| Less: Cash and cash equivalents at the beginning of the year | 5,599,937,349 | ? | 4,360,065,216 |
| ? | ? | ? | ? |
| Net increase in cash and cash equivalents | 1,511,941,684 | ? | 1,239,872,133 |
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(2) Details of cash and cash equivalents
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Cash on hand | 13,361 | ? | 12,554 |
| Bank deposits available on demand | 7,111,658,528 | ? | 5,527,470,074 |
| Other monetary funds available on demand | 207,144 | ? | 72,454,721 |
| ? | ? | ? | ? |
| Closing balance of cash and cash equivalents | 7,111,879,033 | ? | 5,599,937,349 |
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Note: Cash and cash equivalents disclosed above exclude other monetary fund with restricted
usage.
XVI. Extraordinary gains and losses in 2022
| ? | ? | 2022 | ? | 2021 |
| ? | ? | ? | ? | ? |
| Investment income from disposal of long-term equity investments | ? | 829,872,568 | ? | 37,327,797 |
| Other income from long-term equity investments | 4,620,534,865 | - | ||
| Losses from disposal of non-current assets | ? | (4,908,339) | ? | 136,846,803 |
| Government grants recognised through profit or loss (excluding those having close relationships with the Company’s normal operation and enjoyed in fixed amount or quantity according to uniform national standard) | ? | 5,458,665,272 | ? | 2,077,537,306 |
| Changes in fair value of financial assets held for trading and investment income from disposal of financial assets held for trading | ? | 275,498,559 | ? | 121,656,142 |
| Reversal of provision for bad and doubtful debts of receivables assessed on an individual basis | ? | 18,395,999 | ? | 20,304,301 |
| Other non-operating income and expenses besides items above | ? | 90,115,764 | ? | 90,587,512 |
| Less: Tax effect | ? | 133,580,776 | ? | 191,362,477 |
| ? | ? | ? | ? | ? |
| Total | ? | 11,154,593,912 | ? | 2,292,897,384 |
| ? | ? | ? | ? | ? |
| Including: Extraordinary gains affecting net profit of equity shareholders of the Company | ? | 9,779,529,951 | ? | 1,893,395,748 |
| Extraordinary gains affecting net profit of equity shareholders of the non-controlling shareholders | ? | 1,375,063,961 | ? | 399,501,636 |
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Note: Extraordinary gain and loss item listed above are presented in the amount before taxation.
XVII. Return on net assets and earnings per share
In accordance with “Regulation on the Preparation of Information Disclosures by CompaniesIssuing Securities No.9 – Calculation and Disclosure of the Return on Net Assets and Earnings PerShare” (2010 revised) issued by the CSRC and relevant accounting standards, the Group’s returnon net assets and earnings per share are calculated as follows:
| Profit for the reporting period | Weighted average return on net assets (%) | ? | Basic earnings per share | ? | Diluted earnings per share |
| ? | ? | ? | ? | ? | ? |
| Net profit attributable to the Company’s ordinary equity shareholders | 5.45% | ? | 0.19 | ? | Not applicable |
| Net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders | (2.21%) | ? | (0.08) | ? | Not applicable |
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1 Calculation of earnings per share
(1) Basic earnings per share
For calculation of the basic earnings per share, refer to Note V.57.
(2) Basic earnings per share excluding extraordinary gain and loss
Basic earnings per share excluding extraordinary gain and loss is calculated as dividingconsolidated net profit excluding extraordinary gain and loss attributable to ordinary shareholdersof the Company by the weighted average number of ordinary shares outstanding:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Consolidated net profit attributable to ordinary shareholders of the Company | 6,955,656,068 | ? | 25,395,917,610 |
| Extraordinary gains and losses attributable to ordinary shareholders of the Company | 9,779,529,951 | ? | 1,893,395,748 |
| Consolidated net (loss) / profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders | (2,823,873,883) | ? | 23,502,521,862 |
| Weighted average number of ordinary shares outstanding | 37,502,641,911 | ? | 35,704,986,088 |
| Basic earnings per share excluding extraordinary gain and loss (RMB/share) | (0.08) | ? | 0.66 |
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2 Calculation of weighted average return on net assets
(1) Weighted average return on net assets
Weighted average return on net assets is calculated as dividing consolidated net profit attributableto ordinary shareholders of the Company by the weighted average amount of consolidated netassets:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Consolidated net profit attributable to ordinary shareholders of the Company | 6,955,656,068 | ? | 25,395,917,610 |
| Weighted average amount of consolidated net assets | 127,513,376,950 | ? | 106,139,286,422 |
| Weighted average return on net assets | 5.45% | ? | 23.93% |
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Calculation of weighted average amount of consolidated net assets is as follows:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Consolidated net assets at the beginning of the year | 129,057,243,520 | ? | 89,165,346,609 |
| Effect of consolidated net profit attributable to ordinary shareholders of the Company | 3,477,828,034 | ? | 12,697,958,805 |
| Effect of non-public issuance of shares | - | ? | 6,623,170,611 |
| Effect of repurchase of treasury shares | (495,230,613) | ? | (594,867,425) |
| Distribution of profits to ordinary shareholders | (4,626,435,310) | ? | (1,738,036,960) |
| Effect of change in shareholding ratio of subsidiaries | 374,012,026 | ? | (426,455,629) |
| Effect of movements in amounts attributable to ordinary shareholders of the Company | (274,040,707) | ? | 412,170,411 |
| ? | ? | ? | ? |
| Weighted average amount of consolidated net assets | 127,513,376,950 | ? | 106,139,286,422 |
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(2) Weighted average return on net assets excluding extraordinary gains and losses
Weighted average return on net assets excluding extraordinary gain and loss is calculated asdividing consolidated net profit excluding extraordinary gain and loss attributable to ordinaryshareholders of the Company by the weighted average amount of consolidated net assets:
| ? | 2022 | ? | 2021 |
| ? | ? | ? | ? |
| Consolidated net (loss) / profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders | (2,823,873,883) | ? | 23,502,521,862 |
| Weighted average amount of consolidated net assets | 127,513,376,950 | ? | 106,139,286,422 |
| Weighted average return on net assets excluding extraordinary gain and loss | (2.21%) | ? | 22.14% |
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