ANNUAL REPORT 2023
April 2024
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BOE Technology Group Co., Ltd. Annual Report 2023
Message to Our Shareholders
As time passes, we continue to innovate and achieve new milestones.
The year 2023 marked a significant milestone for BOE as we celebrated our 30th anniversary in the
industry. Our journey to this point has been fraught with challenges, yet our unwavering resolve and
dedication have borne fruit, which can be seen in the significant developmental strides we have
achieved. This past year, with its backdrop of complex global, political, and economic shifts, as well
as ongoing adjustments in industrial structures, has presented us with a unique array of challenges.
However, the resilience and tenacity of the BOE team have ensured the stability and incremental
growth of our operations. Our operating revenue and net profit before exceptional gains and losses
have shown consistent quarterly growth. Most notably, our net profit attributable to shareholders
before exceptional gains and losses, surged by 71.74% year on year, giving us a more solid foundation
for sustained, high-quality growth.
Expanding markets and enhancing industry standing
We maintained our global leadership in terms of both shipment volume and shipment area of LCD,
and did so across five mainstream product categories. Our innovative IoT products in segments such
as low power consumption, tiled display screens, and digital signage continued to dominate global
shipments. A record-high milestone was reached with nearly 120 million flexible OLED units shipped
annually, and this was complemented by the initiation of China's first 8.6G AMOLED production line,
further affirming our technological leadership. Our transformational endeavours have also borne fruit
across various sectors. Our smart finance sector expanded its strategic customer base, while our
sensor and smart medical engineering sectors have both achieved significant year-on-year growth in
operating revenue. Our strategic integration with HC SemiTek in the MLED sector has also refined
our industrial layout. Moreover, Zhongxiangying has been recognized as a national "Little Giant"
firm for being professional, sophisticated, distinctive and novel, and Energy Technology is listed
among the nation's third list of smart photovoltaic pilot demonstration enterprises.
Driving innovation to empower high-quality industrial development
BOE has cumulatively filed applications for over 90,000 patents as of 2023, with inventions
comprising over 90% of the past year's filings and international patents exceeding 33%. And we were
named for the sixth consecutive year to the Global Top 20 of the U.S. granted patent ranking. The
globally acclaimed display industry event SID 2023 marked our debut of world-class technologies
and highlighted our capture of nine prestigious awards, further enhancing our presence in the industry
through leading technological innovation. The BOE Global Innovation Partner Conference 2023, the
biggest ever in our history, served as a professional platform for ecosystem construction and
collaborative exchange, drew unprecedented participation from industry experts, ecosystem partners,
and leading companies worldwide, and fueled further momentum for high-quality development
within the industry. To maintain the technological edge, BOE has established key innovation
platforms in semiconductor displays, IoT innovation, and sensor devices. Together with our partners,
our collaborative efforts in the advancement of key technology are accelerating the IoT
transformation. In particular, our IoT innovation platform is dedicated to exploring specialized
application scenarios, while the sensor technology platform is zeroing in on cutting-edge
optoelectronic and novel sensor technologies. These initiatives are designed to cultivate a more open
and collaborative innovation ecosystem, paving the way for the industry’s high-quality, synergistic
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BOE Technology Group Co., Ltd. Annual Report 2023
advancement.
Using mechanisms to improve scientific management and enhance efficiency
In the past year, we refined our operational and management mechanisms even further. With the
operational mechanism "three offices and three managements" that integrates “an agile front office,
an intensive middle office, and an efficient back office” with “strategy, procedures and performance”,
our "Platform + Battle Team" operational model has strengthened management’s responsibility,
establishing a matrixed management style where “Battle Teams lead engagements while Platforms
handle infrastructure”. This system ensures a customer-centric and business-oriented methodology,
effectively marshalling resources and fostering the development of capabilities. This setup not only
facilitates the sharing of platform resources and capabilities to leverage economies of scale, but also
maximizes internal efficiency and collaboration, propelling continuous business growth. Being listed
among world-class demonstration enterprises by the State-owned Assets Supervision and
Administration Commission of the State Council in 2023 along with six other local enterprises is a
testament to our past endeavours and achievements, as well as the faith in our potential for future
excellence.
Staying committed to green development and resolutely pursuing a path of low carbon
emissions
In 2023, BOE published the Towards Carbon Neutrality: BOE’s Low-Carbon Development Report,
which pledged carbon neutrality in our display operations by 2050. As part of our daily operations
and management, we unswervingly adhere to the sustainable development principles of "Green+,
Innovation+, Community+." By coordinating green management initiatives, building green factories,
establishing green supply chains, and developing green, low-carbon products, we are showing our
commitment to implementing comprehensive green development practices. Meanwhile, we are also
aiming to share our low-carbon development experiences with our industry partners through a
replicable and referential decarbonization blueprint, one that is designed to aid the industry's
transition towards green development. As we forge ahead, BOE remains dedicated to leading by
example in terms of making low-carbon commitments, endeavouring to safeguard our planet and
create a better future for the world.
Looking back at our 30-year journey, BOE has played a pivotal role in leading China's semiconductor
display industry from its nascent stages to global prominence. Looking forward, we are poised to
continue this trajectory of excellence, creating a brighter future for the industry and society at large.
We are also committed to doubling down on our strategy of "Empower IoT with Display", joining
forces with numerous ecosystem partners as we embark on another 30-year journey of brilliance in
the IoT era!
We deeply appreciate the unwavering trust and support of our shareholders throughout. As we embark
on the next 30 years and continue taking steps towards realizing BOE's grand vision, we also look
forward to your continued partnership in “Building a World-class Company and Embracing a Better
Future”!
Chairman of BOE
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BOE Technology Group Co., Ltd. Annual Report 2023
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 referred
to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the
contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Mr. Chen Yanshun, the Company’s legal representative, Mr. Gao Wenbao, President, Ms. Yang
Xiaoping, Chief Financial Officer, and Mr. Teng Jiao, head of the financial department
(equivalent to financial manager) hereby guarantee that the Financial Statements carried in
this Report are factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report and
its summary.
Any plans for the future and other forward-looking statements mentioned in this Report shall
NOT 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 and
promises.
The Board has approved a final dividend plan for the Reporting Period. Based on
37,652,529,195 shares, a cash dividend of RMB0.3 (tax inclusive) per 10 shares is to be
distributed 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 Chinese
versions shall prevail.
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BOE Technology Group Co., Ltd. Annual Report 2023
Table of Contents
Message to Our Shareholders ........................................................................................................... 1
Part I Important Notes, Table of Contents and Definitions ........................................................... 3
Part II Corporate Information and Key Financial Information ................................................... 9
Part III Management Discussion and Analysis ............................................................................. 14
Part IV Corporate Governance ...................................................................................................... 50
Part V Environmental and Social Responsibility .......................................................................... 83
Part VI Significant Events ............................................................................................................... 91
Part VII Share Changes and Shareholder Information ............................................................. 108
Part VIII Preferred Shares ............................................................................................................ 118
Part IX Bonds ................................................................................................................................. 119
Part X Financial Statements ......................................................................................................... 122
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BOE Technology Group Co., Ltd. Annual Report 2023
Documents Available for Reference
(I) The financial statements signed and sealed by the Company’s legal representative, President, Chief Financial Officer and head of
the 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 Reporting
Period; and
(IV) This Report disclosed in other securities markets.
All the above mentioned documents are available at the Board Secretary’s Office of the Company.
Chairman of the Board (signature): Mr. Chen Yanshun
Date of the Board’s approval of this Report: 29 March 2024
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BOE Technology Group Co., Ltd. Annual Report 2023
Definitions
Term Definition
“BOE”, the “Company”, the “Group” or BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where
“we” the context otherwise requires
The cninfo website http://www.cninfo.com.cn/
CSRC The China Securities Regulatory Commission
SZSE, the Stock Exchange The Shenzhen Stock Exchange
The Company Law The Company Law of the People’s Republic of China
The Securities Law The Securities Law of the People’s Republic of China
Guideline No. 1 of the Shenzhen Stock Exchange Regarding Self-disciplinary
The Compliance in Operation of Main Board
Activities and Regulation of Listed Companies—Compliance in Operation of
Listed Companies
Main Board Listed Companies
The Stock Listing Rules The Stock Listing Rules of the Shenzhen Stock Exchange
The Articles of Association The Articles of Association of BOE Technology Group Co., Ltd.
The Rules of Procedure for the Board of The Rules of Procedure for the Board of Directors of BOE Technology Group
Directors Co., Ltd.
The Rules for Independent Directors The Rules for Independent Directors of BOE Technology Group Co., Ltd.
The Rules of Procedure for the Supervisory The Rules of Procedure for the Supervisory Committee of BOE Technology
Committee Group Co., Ltd.
The Methods for the Administration of The Methods for the Administration of Information Disclosure of BOE
Information Disclosure Technology Group Co., Ltd.
16K 16K resolution (15360 × 8640 pixels)
A wireless technology with a frequency band between 2.400 GHz and 2.4835
2.4G
GHz
2/3D 2D and 3D switching
3D MNT 3D Monitor
4K 4K resolution (3840× 2160 pixels)
Advanced Dimensional Super Field Conversion Technology (BOE's unique and
ADS pro
industry-leading high-end LCD technology solution)
AI Artificial Intelligence
AMD Advanced Micro Devices, Inc.
AMOLED Active-matrix Organic Light Emitting Diode
AP Access Point
Box Soundbox
BT 2020 A colour gamut standard
C3, E3 BOE Smart All-in-One Models
CHPI A high-speed interface technology
CMMI5 Capability Maturity Model Integration 5
COB Chip (Mini LED) On Board (PCB)
COE Color filter on encapsulation
COG Chip (Mini LED) On Glass
CPU Central Processing Unit
CsI Cesium iodide
DIC Display Innovation China
DMS Driver Monitor System
Dual Gate Structure of a field effect transistor
EPD Electronic Paper Display
ESL Electronic Shelf Label
F0 Fundamental frequency
Flexible Multi- Layer On Cell, a solution for integrated touch control that puts the
FMLOC
touch layer on top of the flexible OLED package
FPXD Flat Panel X-Ray Detector
A display technology developed by AMD (Advanced Micro Devices) to provide a
FreeSync Premium Pro
smoother, higher quality gaming experience
Gaming High refresh rate gaming display
GOA Gate on Array, gate drive circuit drive technology embedded in array substrate
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BOE Technology Group Co., Ltd. Annual Report 2023
Standard ITU-TH.629.1: Scenarios, Framework and Metadata for Digitalized
H.629.1 Artwork Images Display System approved by the International
Telecommunication Union
HDR High dynamic range images
Smart cockpit innovation scenarios covering Healthiness, Entertainment,
HERO
Relaxation and Office
HSR Hardware Super Resulation
Hz Hertz
ICDT International Conference on Display Technology
IFA Internationale Funkausstellung Berlin
Intel Intel Corp.
IoT Internet of Things
IPD Integrated Passive Device
Kg Kilogram
LCD Liquid Crystal Display
LED Light-emitting Diode
Local Dimming An LCD TV technology
Logo A printed design or symbol
LTPO Low Temperature Polycrystalline Oxide
LTPS Low Temperature Poly-Silicon
MEMS Micro-Electro-Mechanical System
MES Manufacturing Execution System
Microdisplay A display technology
MIP Mirco LED In Package
MLED Mini/Micro LED
mm Millimetre
MNT Monitor, generally referring to 27~34 inch monitors
MNT Gaming Gaming monitor
ms Millisecond
NB Note Book
NFC A wireless communication technology
nits Unit Of Luminance
OLED Organic Light Emitting Diode
OT Oxygen Tai Chi
Oxide Oxide thin film transistor technology
P3 MNT A display technology for signal link integration
Pad bending A display panel manufacturing technique
Pitch Distance between two points
PPI Pixels Per Inch
SAAS Software as a Service
SID The Society for Information Display
SID PCA People's Choice Awards by the Society for Information Display
Intelligent functions of the display product configuration, such as distance
Smart feature
sensing, human body sensing, etc.
Smart GOA A smart drive circuit control technology
SMD Surface Mount Technology
Support Win10/11 Monitors are compatible with both Win10/Win11 systems
Tcon Timing controller
TDDI Touch and Display Driver Integration
Microsoft Teams, an intelligent chat-based team collaboration tool that
Teams synchronises document sharing and provides members with instant messaging
tools including voice and video conferencing
TFT-LCD Thin Film Transistor Liquid Crystal Display
TGV Through Glass Via
Tier1 Tier-1 supplier of automotive parts and components
TPC Tablet Personal Computer
TV Television
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BOE Technology Group Co., Ltd. Annual Report 2023
UB Cell Natural and realistic display as Ultra Black, Ultra Bright, Ultra Brilliant
VESA Video Electronics Standards Association
VR/AR Virtual Reality /Augmented Reality
A type of radiation that can pass through objects that are not transparent and make
X-ray
it possible to see inside them
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BOE Technology Group Co., Ltd. Annual Report 2023
Part II Corporate Information and Key Financial Information
I 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
BOE TECHNOLOGY GROUP CO., LTD.
any)
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
12 Xihuan Middle Road, Beijing 12 Xihuan Middle Road, Beijing
Office Address Economic-Technological Development Economic-Technological Development
Area, P.R.China 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
http://www.szse.cn
Report is disclosed
Media and website where this Report is China Securities Journal, Shanghai Securities News, Securities Times, Ta Kung Pao (HK),
disclosed 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
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BOE Technology Group Co., Ltd. Annual Report 2023
V Other Information
The independent audit firm hired by the Company:
Name KPMG Huazhen LLP
Office address 8/F, East Tower 2, Oriental Plaza, 1 East Chang An Avenue, Dongcheng District, Beijing
Accountants writing signatures Su Xing and Chai Jing
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
Yes □ No
Reason for retrospective restatement:
Change of accounting policy.
2023-
over-2022
2022 2021
Item 2023 change
(%)
Before Restated Restated Before Restated
Operating revenue
174,543,445,895.00 178,413,731,179.00 178,413,731,179.00 -2.17% 219,309,799,505.00 221,035,718,012.00
(RMB)
Net profit
attributable to the
2,547,435,360.00 7,550,877,790.00 7,541,423,198.00 -66.22% 25,830,935,500.00 25,960,751,646.00
listed company’s
shareholders (RMB)
Net profit
attributable to the
listed company’s
-632,561,344.00 -2,228,652,161.00 -2,238,106,753.00 71.74% 23,937,539,752.00 24,067,355,898.00
shareholders before
exceptional gains
and losses (RMB)
Net cash generated
from/used in
38,301,826,884.00 43,021,967,305.00 43,021,967,305.00 -10.97% 62,270,556,324.00 62,698,688,556.00
operating activities
(RMB)
Basic earnings per
0.06 0.19 0.19 -68.42% 0.71 0.71
share (RMB/share)
Diluted earnings per
0.06 0.19 0.19 -68.42% 0.71 0.71
share (RMB/share)
Weighted average
1.89% 5.45% 5.45% -3.56% 23.84% 23.93%
return on equity (%)
Change of
31
December
31 December 2022 2023 over 31 December 2021
Item 31 December 2023 31
December
2022 (%)
Before Restated Restated Before Restated
Total assets (RMB) 419,187,099,795.00 420,562,103,212.00 420,567,865,936.00 -0.33% 449,726,980,355.00 450,232,603,404.00
Equity attributable 129,428,307,067.00 136,089,410,395.00 136,086,175,204.00 -4.89% 142,925,547,899.00 143,204,240,947.00
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BOE Technology Group Co., Ltd. Annual Report 2023
to the listed
company’s
shareholders (RMB)
Reason for accounting policy change and correction of accounting error:
As required by Interpretations No. 16 and No. 15 for the Accounting Standards for Business Enterprises issued by the Ministry of
Finance, the Group has retrospectively restated relevant financial statement items at the beginning of the year and in the same period
of last year. The said changes of accounting policies have no significant impact on the Company’s financial condition and operating
results.
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there was
uncertainty 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 exceptional
gains and losses was negative.
Yes □ No
Item 2023 2022 Remark
Operating revenue (RMB) 174,543,445,895.00 178,413,731,179.00 N/A
Amount deducted from
158,513,905.00 0.00 N/A
operating revenue (RMB)
Operating revenue after
174,384,931,990.00 178,413,731,179.00 N/A
deduction (RMB)
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
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BOE Technology Group Co., Ltd. Annual Report 2023
Item Q1 Q2 Q3 Q4
Operating revenue 37,973,495,034.00 42,204,380,186.00 46,337,198,045.00 48,028,372,630.00
Net profit attributable to the listed
247,315,140.00 488,494,469.00 286,347,794.00 1,525,277,957.00
company’s shareholders
Net profit attributable to the listed
company’s shareholders before -1,667,931,828.00 83,491,537.00 92,352,417.00 859,526,530.00
exceptional gains and losses
Net cash generated from/used in
10,122,426,068.00 6,121,243,055.00 6,815,610,632.00 15,242,547,129.00
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.
□ Yes No
IX Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item 2023 2022 2021 Note
Gain or loss on disposal of non-current assets
-18,043,310.00 5,445,499,094.00 174,174,600.00 N/A
(inclusive of impairment allowance write-offs)
Government grants recognised in current profit or loss
(exclusive of those that are closely related to the
Company's normal business operations and given in
3,793,619,228.00 5,458,665,272.00 2,077,537,306.00 N/A
accordance with defined criteria and in compliance
with government policies, and have a continuing
impact on the Company's profit or loss)
Gain or loss on fair-value changes in financial assets
and liabilities held by a non-financial enterprise, as
well as on disposal of financial assets and liabilities 360,708,461.00 275,498,559.00 121,656,142.00 N/A
(exclusive of the effective portion of hedges that arise
in the Company’s ordinary course of business)
Capital occupation charges on a non-financial
0.00 0.00 0.00 N/A
enterprise that are charged to current profit or loss
Gain or loss on assets entrusted to other entities for
0.00 0.00 0.00 N/A
investment or management
Gain or loss on loan entrustments 0.00 0.00 0.00 N/A
Asset losses due to acts of God such as natural
0.00 0.00 0.00 N/A
disasters
Reversed portions of impairment allowances for
receivables which are tested individually for 43,996,519.00 18,395,999.00 20,304,301.00 N/A
impairment
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 0.00 0.00 0.00 N/A
enjoyable fair value of identifiable net assets of
investees when making investments
Current profit or loss on subsidiaries obtained in
business combinations involving enterprises under
0.00 0.00 0.00 N/A
common control from the period-beginning to
combination dates, net
Gain or loss on non-monetary asset swaps 0.00 0.00 0.00 N/A
Gain or loss on debt restructuring 0.00 0.00 0.00 N/A
One-off costs incurred by the Company as a result of 0.00 0.00 0.00 N/A
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BOE Technology Group Co., Ltd. Annual Report 2023
discontinued operations, such as expenses for
employee arrangements
One-time effect on current profit or loss due to
adjustments in tax, accounting and other laws and 0.00 0.00 0.00 N/A
regulations
One-time share-based payments recognized due to
cancellation and modification of equity incentive 0.00 0.00 0.00 N/A
plans
Gain or loss on changes in the fair value of employee
benefits payable after the vesting date for cash-settled 0.00 0.00 0.00 N/A
share-based payments
Gain or loss on fair-value changes in investment
property of which subsequent measurement is carried 0.00 0.00 0.00 N/A
out using the fair value method
Income from transactions with distinctly unfair prices 0.00 0.00 0.00 N/A
Gain or loss on contingencies that are unrelated to the
0.00 0.00 0.00 N/A
Company's normal business operations
Income from charges on entrusted management 0.00 0.00 0.00 N/A
Non-operating income and expense other than the
333,923,695.00 90,115,764.00 90,587,512.00 N/A
above
Other gains and losses that meet the definition of
0.00 0.00 0.00 N/A
exceptional gain/loss
Less: Income tax effects 227,580,473.00 133,580,776.00 191,362,477.00 N/A
Non-controlling interests effects (net of tax) 1,106,627,416.00 1,375,063,961.00 399,501,636.00 N/A
Total 3,179,996,704.00 9,779,529,951.00 1,893,395,748.00 --
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.
1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable Not applicable
No such cases for the Reporting Period.
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BOE Technology Group Co., Ltd. Annual Report 2023
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
Looking back in 2023, the global geopolitical landscape was fraught with tension, the industrial chain underwent accelerated
restructuring, and the broader consumer market exhibited sluggish performance. The semiconductor display industry consistently
unleashed its supply-side capacity, while the tepid recovery in end-user demand led to a more cautious procurement stance among
panel buyers. Consequently, the industry operated under considerable strain.
Despite the challenges, ample opportunities persist. Today, semiconductor displays fuel a multitude of industries, and the seamless
integration within the Internet of Everything's ecosystem drives the swift evolution of demand-side scenarios. This spans across
intelligent screens, industrial sensors, automotive electronics, and various consumer terminals. Bolstered by ongoing innovations and
breakthroughs in UHD, ultra-high-refresh, flexible OLED, Mini/MicroLED, and other advanced display technologies, these
advancements continually boost the performance of terminals. Notably, vehicle-mounted and foldable screen applications have
experienced a surge in growth and development. The accelerated digital transformation has unleashed fresh business prospects.
Semiconductor display technology, when fused with artificial intelligence, the Internet of Things, and other cutting-edge innovations,
significantly propels the burgeoning growth of markets for industrial IoT, Intelligent Car Networking, smart finance, smart industrial
parks, smart energy and other IoT application industries. Concurrently, the nation is steadfastly advancing the Healthy China initiative,
fostering and endorsing health tech innovations, and expediting the establishment of a health service system featuring the integration
of prevention and treatment and the integration of medicine and health care. This strategic move offers expansive development potential
for the medical and health sectors, invigorating the expanding medical services market encompassing medical engineering, recreational
communities, and health IoT solutions.
II Principal Operations of the Company in the Reporting Period
(I) About the Company
In constant pursuit of excellence, BOE Technology Group Co., Ltd. is an innovative IoT company dedicated to providing intelligent
interface products and professional services for information interaction and human health.
With the vision “To Be the Most Respected Company on Earth”, and upholding the values of integrity & reliability, dedication to
customers, being people-oriented, openness and innovation, as well as the business philosophy of doing the right thing, innovation and
progress seeking, BOE has been forging ahead through innovation. Upon three decades of development in the industry, BOE has grown
into a world leader in the semiconductor display industry and an innovative company in the IoT sector. At present, it has a significant
number of intelligent manufacturing bases in Beijing, Hefei, Chengdu, Chongqing, Fuzhou, Mianyang, Wuhan, Kunming, Ordos, etc.,
with subsidiaries in the United States, Germany, Japan, South Korea, Singapore, India, Vietnam, Mexico, Brazil, the United Arab
Emirates and other countries and regions, as well as a service system that covers multiple regions of the world, such as Europe,
Americas, Asia, and Africa. To embrace the development trends of the IoT era, BOE has put in place a development architecture of
"1+4+N+Ecosystem", among which:
"1" represents semiconductor display, which is the core capacity and quality resources accumulated by BOE, as well as the source and
origin of the Company's transformation and development.
"4" is a high-potential channel and direction of development selected based on BOE's core competence and value chain extension, as
well as the four main fronts of the Company's IoT transformation, namely the IoT Innovation business, the Sensor business, the MLED
business and the Smart Engineering Medicine business.
"N" refers to the subdivided application scenarios of IoT that are continuously explored and cultivated by BOE, as well as the specific
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BOE Technology Group Co., Ltd. Annual Report 2023
focus of the Company's IoT transformation development.
“Ecosystem” is an industrial ecological development circle constructed by the Company in collaboration with many partners and by
aggregating the resources of the industrial chain and ecosystem chain.
(II) About the Company’s principal operations
1. The Display Devices business
The Display Devices business offers integrated design and manufacturing services for devices, and is committed to providing interface
devices applying TFT-LCD, AMOLED, Microdisplay and other technologies, focusing on providing customers with high-quality
display devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicles, VR/AR devices, etc.
2. The IoT Innovation business
The IoT Innovation business offers integrated design and manufacturing services for system solutions, and provides customers with
competitive smart terminal products for TVs, monitors, laptops, tablets, low-power devices, IoT, 3D display, etc. Backed by AI and
big data technologies, it focuses on products and services combining hardware and software, providing integrated IoT solutions for
segments including smart industrial parks, smart finance, etc.
3. The Sensor business
The Sensor and Solution business offers integrated design and manufacturing services for glass- and silicon-based system solutions,
focuses on smart display windows, innovative glass-based sensor devices, MEMS sensors, industrial sensors, consumer electronics and
other fields, and provides customers with products and solutions including intelligent PDLC windows and PDLC system solutions,
industrial sensors and solutions, MEMS sensors, and back plates for flat panel X-ray detectors (FPXD), among others.
4. The MLED business
MLED business renders LED backlight products with high quality and reliability for LCD of TVs, monitors, notebooks, vehicles,
VR/AR devices, etc., as well as Mini/Micro-LED display products with high brightness, high reliability and high contrast for segment
markets of outdoor, commercial, transparent, specialized and other displays. All these products are designed and manufactured in an
integrated manner.
5. The Smart Engineering Medicine business
The Smart Engineering Medicine business adopts a professional service model to provide products, services and solutions in relation
to medical care, smart nursing, medical-engineering integration, etc. Meanwhile, this business is committed to providing a closed loop
of through-life health services with health management as the core, medical terminals as the traction, and digital hospitals and
recreational communities as the support. It connects testing equipment, healthcare workers and customers through the smart health
management ecosystem where customers enjoy professional health services including prevention, treatment, therapy and nursing.
6. The “N” business
With a specific focus on the "N" business, the Company provides hardware and software integrated system solutions for different
segments, including smart vehicle connection, industrial IoT, digital art, etc., which can provide customers with all-dimensional, one-
stop and smart new experience under IoT scenarios. For example, in terms of smart vehicle connection, the business integrates DMS,
gesture recognition, touch feedback, naked-eye 3D and other cutting-edge functions, focuses on the intelligent cockpit "HERO"
innovative application scenarios that include four dimensions of healthiness, entertainment, relaxation, and office, and provides
customers with professional integrated solutions, which can bring a new and more intelligent driving experience. The industrial IoT
business provides enterprises with solutions, products, and services like smart production, smart factory, and cloud services. Relying
on its self-developed industrial Internet platform, it helps realise refined operation and management and achieve cost reduction and
efficiency enhancement from all procedures of design, supply, production, and sales, offering all-dimensional, one-stop and smart
industrial IoT solutions to customers and empowering customers in their digital transformation. In the field of digital artworks, the
business adheres to "culture + technology" cross-field integration and innovation, launches the "one million digital culture experience
scenario programme" around International Standard H.629.1 for digital art display, and join hands with ecosystem partners at the
content-, technology- and application-ends, so as to empower culture with display products and solutions with more functions and
15
BOE Technology Group Co., Ltd. Annual Report 2023
forms and better experience.
III Core Competitiveness Analysis
1. Adhering to the “Empower IoT with Display” strategy and building a value growth system that is coordinative based on the
ecosystem
Based on years of practical exploration in the semiconductor display and Internet of Things (IoT) industry, the Company has proposed
an innovative strategy of "Empower IoT with Display" that is suitable for the transformation and development of its IoT. It regards
"display" as an important port for human information interaction and the first channel that shows the integration of digital and real
world in the IoT era, seizing the ubiquitous growth opportunities of "display", and fully leveraging its core advantage of "display" to
work with partners to continuously expand the application capabilities of "display" by integrating more functions, deriving more forms,
and inserting more scenarios. In this way, the Company will achieve the user perception revolution of "display as terminal" in the
digital era, build an industrial ecology of "display as platform and display as system", and reshape the value growth model.
Guided by the strategy of "Empower IoT with display", the Company has established a value creation system for the entire industry
chain, from display panels to smart terminals to system solutions. With the strongest product competitiveness and system integration
ability in the industry, it is able to meet various needs of customers. In the meanwhile, it always adheres to openness and cooperation.
Joining hands with ecosystem partners, it is shifting from "independent company value creation" to "coordinative ecosystem value
creation” by strengthening the empowerment effect of business ecosystem coordination, in pursuit of a new value growth model.
2. Maintaining industry leadership and cultivating efficient and agile market responsiveness
The Company stays attuned to digital and intelligent industry trends, swiftly identifies customer needs, and closely monitors market
shifts. By proactively pursuing development opportunities and leveraging its current business, it catalyzes fresh market breakthroughs
and capitalizes on prime strategic positioning. To solidify its market stronghold across core businesses, the Company fortifies its dual
marketing platforms—domestic and international—empowering rapid business expansion through a responsive, platform-centric,
regionally targeted, and locally adapted marketing framework.
In 2023, the Company sustained its leadership in the semiconductor display market, maintaining its top global ranking in LCD
shipments overall and across five key application segments. In LCD, the Company continuously refined its product mix, reinforced
dominance in premium flagship items, and secured the number one spot worldwide in shipments for ultra-large-size (≥85 inches)
products, while also making headway in the high-end TV market through its ADS Pro product line. In OLED, the Company shipped
nearly 120 million flexible AMOLED units, resulting in a substantial year-over-year improvement in profitability from maturing
production lines.
The Company’s ongoing efforts in driving the IoT transformation continue to bear fruit in terms of market expansion. It retains the
world’s leading position in IoT application terminal shipments across whiteboards, splicing products, and advertising machines. Over
50 national benchmark projects employing intelligent park solutions have been deployed, serving over 700 clients. The smart finance
platform upgrade went online, reaching multiple bank branches nationwide, achieving full coverage in all 31 provinces and
municipalities. The Company launched pioneering Cloud-based Splicing and AI-powered all-in-one machines like the C3 and E3
models. Strategic collaborations were forged with key MLED industry partners, including Shanghai Film, laying the groundwork for
initial market penetration in the Asia-Pacific and Europe. The sensor business division introduced a full spectrum of reader products
into the OLED domain, marking the mass production debut of its first high-value-added flexible FPXD product. With the core
capabilities of its digital hospital growing stronger, the Company managed over 1.25 million annual outpatient visits-a near 50% YoY
hike-and witnessed around 54,000 discharges, representing over 65% yearly growth, alongside marked improvement in operational
standards.
3. Persistently reinforcing technology foundation and expediting technology and product innovation
16
BOE Technology Group Co., Ltd. Annual Report 2023
The Company persistently strengthens its technology innovation framework, constructing a comprehensive innovation environment,
finalizing the establishment of three core technology centers, and nurturing closer collaboration between industries, academic entities,
and research bodies. The Company has built a technology architecture of “Empower IoT with Display” that is suitable for the
transformation and development of its IoT, including device layer, terminal layer, platform layer, and application layer. With a
systematic technological innovation capability that integrates software and hardware, provides key support for the value extension of
its “device - terminal - scenario”.
In terms of technology and products, the Company debuted the 4.7-inch 650PPI full-colour lithography AMQLED display prototype
at SID and secured the SID 2023 People’s Choice Award with its 42.2-inch multifunctional all-in-one smart cockpit super module
featuring on-screen haptics. Its self-developed OLED COE folding and other platform technologies have successfully transitioned to
commercial products. Moreover, the Company attained CMMI5 certification for its software engineering capabilities and management
standards, contributing to recognition as a National Industrial Design Center by the Ministry of Industry and Information Technology.
It spearheaded the release of the group standard “Ultra-High-Definition Video Processing Algorithms Interface Technical
Specifications” and participated in drafting the nation’s pioneering generative AI standards. In terms of the molecular diagnostics
business, the Company extended the use of its cutting-edge multi-omics liquid biopsy platform. Deploying the industry’s pioneering
co-testing technology, the Company embarked on multi-center clinical partnerships with numerous tertiary hospitals to tackle
hematological oncology and early-stage Alzheimer’s diagnosis and therapy.
In terms of patents, the Company intensified efforts towards acquiring high-quality intellectual property rights. By the end of 2023, it
had cumulatively lodged over 90,000 independent patent applications, with over 30,000 pertaining to flexible OLED technology.
Annually, over 90% of new patent applications are for inventions, and more than 33% are filed internationally, spanning jurisdictions
such as the U.S., Europe, Japan, South Korea, and others. These patents cover diverse sectors including flexible OLEDs, sensing, AI,
big data, among others. The Company now possesses over 40,000 valid patents globally. Furthermore, for six consecutive years, the
Company has featured among the global Top 20 Organizations Granted US Patent, ranking 15th worldwide in 2023. This consistent
achievement underscores the Company’s robust innovative prowess and its status as a technological trailblazer within the industry.
4. Strengthening lean management expertise and advancing digital transformation and process optimization
The Company persists in enhancing its lean management approach, embracing lean philosophy, focusing on strategic resource
investments, and establishing a streamlined, digitalized, standardized, and process-driven operational structure to solidify its position
as a global leader with enhanced competitive strengths.
In terms of operational management, it keeps improving the platform-based organisational design and optimises the operational
management system of “three offices and three managements”. The Company combines the organisational mechanism of an agile front
office, an intensive middle office, and an efficient back office with key measures such as strategy, procedures and performance to
continuously strengthen the coordinated operation of the three offices and increase the Company’s operational efficiency. Additionally,
under the “three offices and three managements” operational framework, the Company piloted a “Platform + Battle Team” model—a
matrixed management style where “Battle Teams lead engagements while Platforms handle infrastructure.” This method reinforces
customer-centric management, balances responsibilities and rights, fosters internal synergy, and aids successful business execution.
In terms of digital transformation, the Company has fortified its online process systems, advanced process digitization and digital
operations, and continued to promote the construction of “one digital and visible BOE” with digital transformation projects as breach.
The Company has rolled out version 2.0 of its new management system for digital transformation projects, completing implementation,
change and value of digital transformation projects, identifying key control points during the process and consolidating the results of
the system to promote the effectiveness of the implementation. Simultaneously, the Company has continued refining digitalization
across diverse areas, ensuring seamless collaboration with key projects and business workflow execution.
5. Inheriting the cultural value system, and staying true to the mission of development
Upon three decades of ups and downs, the Company has always been adhering to the entrepreneurial spirit of innovation and diligence.
It sticks to the establishment of the cultural atmosphere that refers to "step forward and bear your responsibilities bravely, use your
17
BOE Technology Group Co., Ltd. Annual Report 2023
time efficiently, and innovate proactively without fear of hardship" and guides its employees to work and develop their career under
the principles of "scholar wisdom, commercial thinking, and chivalrous bearing", "observe the problem and bear the responsibility
from an overall point of view, think from a different point of view and clarify the responsibilities of each position, dare to raise problems
and help solve them", and so on. Thus, "three virtues" and "five spirits" can be formed. "Three virtues" refers to the gratitude for
building ideal and belief oriented and sustainable entrepreneurial organisations, the awe for building sustainable innovation and
learning oriented organisations, and the transcendence for building organisations with large talent tanks, while "five spirits" refer to
backbone, ambition, courage, morale, and confidence. In the face of the opportunities and challenges in a new era, all BOE people will
unite as one, firmly carry on and promote the excellent corporate culture and values, stay true to the mission of development, and
relentlessly pursue the vision of “To Be the Most Respected Company on Earth”.
IV Core Business Analysis
1. Overview
1. The Display Devices business
During the Reporting Period, the Company maintained its leadership position, bolstering its development advantages with operating
revenue approximating RMB147,053 million. LCD shipments remained globally dominant, with numerous world-first technologies
and products solidifying its technological superiority. Sales of ADS Pro TVs in the high-end market topped nearly one million units,
while flexible OLED shipments saw significant year-on-year growth, achieving key technological advancements and introducing
products based on self-developed platforms. Additionally, by seizing market opportunities and starting to build the inaugural 8.6-
generation AMOLED production line, the Company reinforced its lead in the semiconductor display industry.
2. The IoT Innovation business
During the Reporting Period, the Company fortified its presence in mainstream markets and ventured into niche sectors, amassing
approximately RMB38.9 billion in revenue, reflecting a year-on-year growth rate of around 13.30%. The intelligent terminal business
thrived: TV operations improved, yielding a 105% YoY profit increase; MNT terminal shipments rose to rank among the top three
globally; TPC and NB terminal businesses rapidly grew, with operating revenue surging 70% and 50% respectively YoY. The Company
strengthened its low-power EPD industrial chain, integrating “ESL - innovative product module - whole device” manufacturing
services. IoT terminal business developed segmented markets, with splicing products, advertising machines, and whiteboard devices
topping global shipments charts for the first time. The MNT branded product featuring the Company’s 3D terminal debuted at the IFA
in September. The system solution business witnessed milestones too: The construction of smart industrial parks for the Mangrove
Tree Resort World Qingdao has been successfully delivered, setting a new benchmark for cultural and tourism park scenarios. The
smart finance sector facilitated banks’ digital transformations, adding 30 provincial branches and launching SaaS-level innovations
like financial digital assistants and green outlet IoT controls. Branded products unveiled new Cloud-based Splicing, intelligent all-in-
one machines C3 and E3 series, while expanding partnerships with leading automotive industry customers and enhancing market clout.
3. The Sensor business
During the Reporting Period, the Company concentrated on high-growth channels, driving high-quality development, recording
approximately RMB405 million in revenue, a year-on-year increase of around 32.13%. Suzhou BOE Sensor experienced a staggering
300% YoY revenue surge; medical imaging revenue grew 45% YoY, with the first batch of flexible, high-value FPXD products
entering mass production, alongside the completion of the second-phase mass production for self-built CsI, enhancing product
profitability. Meanwhile, the MEMS test line successfully navigated through the TGV core process, commencing mass production of
2D and 3D IPD products, with the first shipment of pressure sensors accomplished.
4. The MLED business
During the Reporting Period, the Company enhanced technology and product competitiveness, vigorously expanded markets, and
generated approximately RMB2,902 million in operating revenue, representing an approximate year-on-year increase of 81.42%. It
18
BOE Technology Group Co., Ltd. Annual Report 2023
completed the strategic integration of the listed platform, expediting its MLED chip supply chain. Glass-based active matrix direct
display products advanced significantly, with Pitch 0.9mm entering mass production and Pitch 0.5mm passing critical processes and
producing sample outputs. Moreover, the Company forged strategic alliances with key industry players like Shanghai Film, and
aggressively pursued overseas business, breaking new ground (“from zero to one”). It successfully launched backlighting solutions for
top-tier overseas commercial display customers, marking a breakthrough in the high-end glass-based commercial display market, while
also seeing a more than 50% growth in high-end IT and automotive projects.
5. The Smart Engineering Medicine business
During the Reporting Period, the Company consistently fortified the operational proficiency of its digital hospitals, significantly
elevating operational quality. Operating revenue reached approximately RMB2,792 million, reflecting a rise of about 26.71%. Total
outpatient visits at digital hospitals surged by around 50% YoY, and total discharges grew by over 65% YoY. Notably: OASIS
International Hospital maintained operational excellence improvements and achieved full-year profitability; Suzhou BOE Hospital
honed specialties in cardiovascular medicine, gastroenterology, and orthopedics, further enhancing its reputation; Chengdu BOE
Hospital collaborated with Beijing Anzhen Hospital to establish a national cardiovascular disease collaborative center and initiated the
West China Tumor Specialty Alliance, thereby augmenting its service capacity and specialty influence; Hefei BOE Hospital’s
Orthopaedics Department performed complex robotic-assisted spinal surgeries, positioning itself as a regional leader in technical
capability.
6. The “N” business
The Company continuously innovated in specialized domains, creating multiple “specialised, sophisticated, distinctive, and innovative”
models. In the industrial IoT field, the Company independently developed semiconductor wafer MES products, accomplishing a
groundbreaking entry for MEMS and optical chip clients. A low-code intelligent manufacturing platform was deployed in nearly 20
SMEs. In the intelligent energy field, new energy construction tripled in size YoY, and emerging carbon trading transactions doubled
YoY. In the UHD display field, the Company contributed to iconic projects like Yibin’s “Three Rivers and Six Banks” urban media
network and the National Grand Theater Art Exhibition Center. In the smart vehicle connection filed, the Company partnered with
several leading domestic automakers, securing a sustainable future for the business. Meanwhile, in the digital art field, the Company
took part in formulating and releasing the industry’s first paper-based eye-care learning machine standard, “Paper-Based Learning
Machine Visual Fatigue Reduction Specifications,” and secured the world’s first EYEGUARDA+ gold certification for its small-class
screen products aimed at children’s eye protection.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2023 2022
As % of total As % of total Change
Item
Operating revenue operating revenue Operating revenue operating revenue (%)
(%) (%)
Total 174,543,445,895.00 100% 178,413,731,179.00 100% -2.17%
By operating division
Display Devices
147,053,141,751.00 84.25% 150,150,853,163.00 84.17% -2.06%
business
IoT Innovation
38,900,197,799.00 22.29% 34,334,478,938.00 19.24% 13.30%
business
Sensor business 405,037,922.00 0.23% 306,552,648.00 0.17% 32.13%
MLED business 2,902,110,558.00 1.66% 1,599,702,766.00 0.90% 81.42%
Smart Engineering
2,791,584,190.00 1.60% 2,203,142,667.00 1.23% 26.71%
Medicine business
Others and offset -17,508,626,325.00 -10.03% -10,180,999,003.00 -5.71% 71.97%
19
BOE Technology Group Co., Ltd. Annual Report 2023
By product category
Display Devices
147,053,141,751.00 84.25% 150,150,853,163.00 84.17% -2.06%
business
IoT Innovation
38,900,197,799.00 22.29% 34,334,478,938.00 19.24% 13.30%
business
Sensor business 405,037,922.00 0.23% 306,552,648.00 0.17% 32.13%
MLED business 2,902,110,558.00 1.66% 1,599,702,766.00 0.90% 81.42%
Smart Engineering
2,791,584,190.00 1.60% 2,203,142,667.00 1.23% 26.71%
Medicine business
Others and offset -17,508,626,325.00 -10.03% -10,180,999,003.00 -5.71% 71.97%
By operating segment
Mainland China 80,541,975,332.00 46.15% 74,124,463,690.00 41.54% 8.66%
Other regions in Asia 55,229,893,619.00 31.64% 63,351,896,814.00 35.51% -12.82%
Europe 5,504,039,510.00 3.15% 5,745,261,109.00 3.22% -4.20%
America 33,250,560,809.00 19.05% 35,121,526,346.00 19.69% -5.33%
Other regions 16,976,625.00 0.01% 70,583,220.00 0.04% -75.95%
By marketing model
Direct sales 174,543,445,895.00 100.00% 178,413,731,179.00 100.00% -2.17%
(2) Operating Division, Product Category, Operating Segment or Marketing Model Contributing over 10%
of Operating Revenue or Operating Profit
Applicable □ Not applicable
Unit: RMB
Gross YoY change in YoY change
YoY change in
Item Operating revenue Cost of sales profit operating in gross profit
cost of sales (%)
margin revenue (%) margin (%)
By operating division
Display Devices
147,053,141,751.00 133,565,229,836.00 9.17% -2.06% -3.00% 0.88%
business
IoT Innovation
38,900,197,799.00 35,289,028,777.00 9.28% 13.30% 10.66% 2.16%
business
By product category
Display Devices
147,053,141,751.00 133,565,229,836.00 9.17% -2.06% -3.00% 0.88%
business
IoT Innovation
38,900,197,799.00 35,289,028,777.00 9.28% 13.30% 10.66% 2.16%
business
By operating segment
Mainland China 80,541,975,332.00 71,407,866,573.00 11.34% 8.66% 10.43% -1.42%
Other regions in
55,229,893,619.00 47,582,905,390.00 13.85% -12.82% -14.86% 2.06%
Asia
America 33,250,560,809.00 28,697,860,450.00 13.69% -5.33% -10.00% 4.48%
By marketing model
Direct sales 174,543,445,895.00 152,633,061,367.00 12.55% -2.17% -3.11% 0.85%
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
Yes □ No
Operating division Item Unit 2023 2022 Change (%)
Sales volume K㎡ 77,400.00 76,039.00 1.79%
TFT-LCD
Output K㎡ 78,107.00 75,620.00 3.29%
20
BOE Technology Group Co., Ltd. Annual Report 2023
Inventory K㎡ 5,690.00 4,983.00 14.19%
Sales volume K㎡ 1,704.00 1,125.00 51.45%
AMOLED Output K㎡ 1,737.00 1,157.00 50.04%
Inventory K㎡ 141.00 108.00 30.37%
Reason for any over 30% YoY movements in the data above
Applicable □ Not applicable
The sales volume and output of AMOLED increased by over 30% in 2023 as compared to last year primarily due to the transfer 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
2023 2022
By operating As % of total As % of Change
Item
division Cost of sales cost of sales Cost of sales total cost of (%)
(%) sales (%)
Display Devices Materials, labor costs,
133,565,229,836.00 87.51% 137,702,662,276.00 87.41% -3.00%
business depreciation, etc.
IoT Innovation Materials, labor costs,
35,289,028,777.00 23.12% 31,888,691,477.00 20.24% 10.66%
business depreciation, etc.
Materials, labor costs,
Sensor business 330,401,208.00 0.22% 241,869,035.00 0.15% 36.60%
depreciation, etc.
Materials, labor costs,
MLED business 3,226,930,635.00 2.11% 1,709,769,060.00 1.09% 88.73%
depreciation, etc.
SmartEngineering Materials, labor costs,
2,241,522,000.00 1.47% 1,809,802,648.00 1.15% 23.85%
Medicine business depreciation, etc.
Materials, labor costs,
Others and offset -22,020,051,089.00 -14.43% -15,822,228,344.00 -10.04% 39.17%
depreciation, etc.
Unit: RMB
2023 2022
By product As % of total As % of Change
Item
category Cost of sales cost of sales Cost of sales total cost of (%)
(%) sales (%)
Display Devices Materials, labor costs,
133,565,229,836.00 87.51% 137,702,662,276.00 87.41% -3.00%
business depreciation, etc.
IoT Innovation Materials, labor costs,
35,289,028,777.00 23.12% 31,888,691,477.00 20.24% 10.66%
business depreciation, etc.
Materials, labor costs,
Sensor business 330,401,208.00 0.22% 241,869,035.00 0.15% 36.60%
depreciation, etc.
Materials, labor costs,
MLED business 3,226,930,635.00 2.11% 1,709,769,060.00 1.09% 88.73%
depreciation, etc.
Smart
Materials, labor costs,
Engineering 2,241,522,000.00 1.47% 1,809,802,648.00 1.15% 23.85%
depreciation, etc.
Medicine business
Materials, labor costs,
Others and offset -22,020,051,089.00 -14.43% -15,822,228,344.00 -10.04% 39.17%
depreciation, etc.
Note:
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BOE Technology Group Co., Ltd. Annual Report 2023
The major cost of sales items such as materials and depreciation are considered as business secrets. In order to avoid the leakage of
these secrets, which could result in damage to the interests of the Company and its investors, cost of sales is only presented with respect
to 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 □ No
The changes in the scope of consolidated financial statements for the Reporting Period had no significant impact on segment data.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 62,410,123,266.00
Total sales to top five customers as % of total sales of the
35.76%
Reporting Period (%)
Total sales to related parties among top five customers as % of
0.00%
total sales of the Reporting Period (%)
Information about top five customers:
Sales revenue contributed for As % of total sales revenue
No. Customer
the Reporting Period (RMB) (%)
1 Customer A 26,082,948,856.00 14.94%
2 Customer B 10,089,892,320.00 5.78%
3 Customer C 9,596,035,425.00 5.50%
4 Customer D 9,213,390,969.00 5.28%
5 Customer E 7,427,855,696.00 4.26%
Total -- 62,410,123,266.00 35.76%
Other information about major customers:
□ Applicable Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 22,623,977,598.00
Total purchases from top five suppliers as % of total purchases
18.11%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
0.00%
as % of total purchases of the Reporting Period (%)
Information about top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Supplier A 6,535,708,601.00 5.23%
2 Supplier B 4,796,843,034.00 3.84%
3 Supplier C 4,180,220,681.00 3.35%
4 Supplier D 3,684,896,835.00 2.95%
5 Supplier E 3,426,308,447.00 2.74%
Total -- 22,623,977,598.00 18.11%
Other information about major suppliers:
□ Applicable Not applicable
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BOE Technology Group Co., Ltd. Annual Report 2023
3. Expense
Unit: RMB
Item 2023 2022 Change (%) Reason for any significant change
Selling
3,736,940,205.00 4,233,290,297.00 -11.72% N/A
expense
Administrati
5,944,875,540.00 6,247,637,006.00 -4.85% N/A
ve expense
Finance Increased interest income and net
1,150,310,546.00 2,445,130,575.00 -52.96%
costs exchange gain in the Reporting Period
R&D
11,319,503,088.00 11,100,768,677.00 1.97% N/A
expense
4. R&D Investments
Applicable □ Not applicable
Names of
main Project Expected impact on the future
Project objectives Objectives to be achieved
R&D progress development of the Company
projects
1. To achieve a static contrast
ratio improvement up to 3000:1
Under mass and a reduction of reflectivity
To produce LCDs with an
production, down to 0.7% for the product;
image quality comparable To achieve a platform-based leap in
with higher
UB Cell to that of OLEDs and a technological capability and
image 2. To improve colour shift and
(Taishan cost lower than that of become a mainstream technology
quality increase the colour gamut to
Project) OLEDs and enhance for display products and a strategic
under reach 95% of BT2020 standard
BOE’s competitiveness in leader for product upgrading.
developmen for the product;
high-end products.
t
3. To achieve mass production
of high-end flagship models.
1.To fully introduce high- To further enhance the mobility of
To further utilize the mobility products (mass Oxide materials, significantly
advantages of high production has been achieved improve product features such as
mobility and low leakage except for in vehicle-mounted high refresh, narrow bezels, and
current of oxides, develop applications) and to complete high transmittance, and deliver
new device structures, the establishment of a new
Oxide In progress cost-effective technology solutions;
create advanced and device structure product construct the BOE Oxide brand
reliable oxide process platform; based on BOE’s production
capability, and achieve
2. To tackle persistent quality capacity edge and offer robust
overall improvement of
issues and enhance the support for boosting BOE’s product
product performance.
reliability of oxide products. competitiveness.
To promote the 1. To issue CHPI3.0 protocol
CHPI and application of CHPI and and complete chip development
and application; To research and promote BOE’s
ultra-low ultra-low-power drive
own signal transmission protocol,
power technology in TV, MNT
2. To complete the development build the screen-chip-whole device
consumpti and NB products, and In progress
of ultra-low power technology industry chain, create technical
on realise the autonomy of
based on CHPI protocol; barriers, and form product
technolog high-speed transmission
performance and cost advantages.
y interface and low-power 3. To realise mass production of
drive technology. TV/MNT/NB products.
To realise refresh rate TV/NB 1. To realise mass production of To realise the upgrading of the
multiplication without products all TV products and achieve refresh rate of HSR as a standard
HSR
loss of visual resolution under mass mass production of Dual Gate technology of the whole TV series,
under the same hardware production low-cost solution; expand its application to MNT/NB
23
BOE Technology Group Co., Ltd. Annual Report 2023
conditions and achieve and MNT 2. NB/MNT office/game mode products to realise one-key
specification products switchable products are switching of office/game display
improvement and cost under introduced into customers’ modes and low-cost, and facilitate
reduction. developmen high-end models. BOE to further enhance the
t competitiveness of its products.
1. To render miniaturized and
thinner whole device;
2. To shorten links, eliminate
To build Tcon fully signal transmission bandwidth To redefine the configurations of
integrated MNT solution limitations, and realise refresh modules, systems, and PC
based on the MNT Full rate upgrade from 100Hz to functionalities, and achieve
HD mainstream product 120Hz without increasing cost; innovative breakthroughs in MNT
P3 MNT In progress
platform and by 3. To realise screen parameter product form factors, which will
integrating the functions setting software; enhance the value of BOE products
of the system chip into the and reshape the MNT industrial
timing control chip. 4. To enable remote firmware chain strategically.
updates for timing control
chips, facilitate troubleshooting
and extend the operational
lifespan.
1. To achieve mass production
of the full-spectrum natural
circular polarization display To collaborate with TV Rheinland
eye-protection solution; to publish the White Paper on
To create BOE’s unique Circadian Functionality in
2. To adjust the ratio of
round polarized light eye Electronic Display Products,
rhythmic friendly wavelengths
protection display, In progress, develop proprietary intellectual
for backlight, automatically
physiological rhythm with some property in natural light-emulating
Health simulating natural light at
adjustment and anti- products eye care technology, pioneer a new
display different times to align with
bacterial and anti-virus under mass trend in health-focused displays
users’ physiological needs, and
function of a full range of production incorporating anti-bacterial and
complete the technological
health display technology anti-viral properties, enhance
reserve;
solutions. product competitiveness and
3. To source materials and make provide strong support to elevate
a technological breakthrough in BOE’s market competitiveness.
antibacterial and antiviral
technology.
1. To realise light
intensity/colour temperature
detection function through the
incell light sensors with self-
developed algorithm;
2. To complete the development
To realise the integration of in-panel integrated NFC To integrate more functions into the
of photoinduction, NFC, technology, compatible with panel and provide consumers with
Panel as in-box heating, Smart TDDI functionality; more convenient and cost-effective
In progress
system GOA and other functions 3. To achieve heating up products, so that the panel can offer
to enhance product controllable In-Cell heating and more value-added benefits and can
competitiveness. mass-produce automotive be applied to more scenarios.
electronic rearview mirror
products;
4. To adjust TFT voltages using
Smart GOA technology, extend
GOA lifetime, and complete
technical validation.
To further improve the 1. To achieve mass production The related technical achievements
Gaming Under mass
product refresh rate and of several high-end gaming won the first prize of Beijing
24
BOE Technology Group Co., Ltd. Annual Report 2023
products enhance the production. flagship products while Science and Technology Progress
competitiveness of BOE achieving the technology Award. Relying on BOE’s advanced
in Gaming series products reserve of a high refresh rate of high refresh rate technology, it will
through comprehensive 500+Hz for medium to large- achieve the import of all high-end
technology upgrades. sized products. products for brand customers,
provides users with the ultimate
2. To achieve extremely fast smooth gaming experience, seizes
response within 1ms. the high-end gaming market, and
helps BOE enhance its
competitiveness in the field of e-
sports and realise profitable growth.
To secure the 2023 SID Display
To integrate multiple Panel-integrated features Week PCA Award, lead the trend
Automoti functions based on the include under-panel cameras, towards high-definition large-size
ve high-resolution ultra large haptic feedback, light sensing smart displays in vehicles, develop
In progress
Intelligent screen and create a new integration, and switchable multifunctional, intelligent cockpit
Cockpit concept of intelligent peep-proof, among various solutions for automobiles, and boost
cockpit. other functionalities. the competitiveness of vehicle
products.
To win the Gold Award for Display
of the Year at ICDT 2023 and
To realise glass-based To develop 20×30 large-size
secure the Silver Award for Display
ultrasonic fingerprint under-panel ultrasonic
Fingerprin Application of the Year at DIC
recognition technology Under mass fingerprint identification
t on 2023; fully leverage the advantages
and develop large-size, production. module with integrated
Display of glass-based products, explore
pressure-sensitive pressure-sensing function and
new business directions with
integrated functions. realise mass production.
potential for commercialization and
strengthen BOE’s brand value.
To realise switchable To realise four-sided peep-proof
Advanced To integrate more functions into
peep-proof technology for switchable and partial peep-
Active display products to meet customer
multiple products, Which proof technologies, mass
Privacy/S Under mass needs and apply the technology to
meet users' needs for production for notebook-
hare production. the notebooks, vehicle displays,
privacy protection and associated products, as well as
switchable monitors and other areas to capture
enhance product import of monitor-related and
Panel a greater market share.
competitiveness. vehicle-mounted products.
To integrate touch
1. To achieve implementation of The adoption of this technology
capabilities using
Medium- the flexible FMLOC technology will facilitate further integration and
FMLOC technology to
size Under mass with Active Pen support; slimming of touch-enabled display
both fulfill human-
FMLOC + production. solutions, laying the groundwork
machine interface 2. To realise an integrated and
active pen for diversified product form factor
demands and accomplish slimmed-down screen design. offerings.
product slimming.
To integrate flexible
To complete mass production
Mass OLED technology,
integration verification of Pad
productio implement four-side The introduction of this product is
bending technology, FMLOC
n of narrow bezels, combine Under mass conducive to OLED’s further
active pen technology, and
flexible FMLOC technology with production. breakthrough in the flat panel/NB
module material lightweight
flat panel active pen, launch a fully market, enhancing BOE’s influence.
technology and achieve mass
products flexible tablet product and
production.
achieve mass production.
Wearable
form To break through the To improve the competitiveness of
To complete the breakthrough
factor traditional flat form of flexible wearable, increase the
of wearable product form and
technolog wearable and realise In progress competitiveness of wearable
help to improve the
y breakthroughs in form technology, and broaden the
competitiveness of terminals.
developm factor (spherical, folding). product line.
ent
25
BOE Technology Group Co., Ltd. Annual Report 2023
Polarizer functions will be
integrated into the display module,
To remove module thereby enhancing the added value
COE 1. Power consumption
polarizer; Under mass for the display manufacturer. COE
technolog reduction >20%;
To reduce power production. is primarily utilized for foldable
y 2. Thickness reduction >50μm.
consumption. devices, providing consumers with
a thinner and more portable
experience.
1. To realise frequency
conversion from 1 to 120Hz;
To incorporate standard-setting
LTPO 2.0 To realise higher 2. To make frequency technologies for foldable and high-
Under mass
pixel precision frequency conversion for dynamic images end flagship models to extend
production.
circuit conversion. smoother; consumer standby times and
enhance user experiences.
3. To extend the life of the
whole device.
To achieve technology To output small-pitch
To realise BOE’s technological
breakthrough in the technology solutions and
breakthrough in the direction of
direction of process routes, including new
LTPS P0.5 Mini/Micro small-pitch splicing
Mini/MicroLED display, side-wiring bonding technology
technolog display, establish technological
enhance technical (V2.0), high-voltage MIP
y In progress barriers, and accelerate BOE’s all-
capability, and explore technology, ultra-thin structure
developm round layout of Mini/Micro display
feasible technology and design, etc., to provide technical
ent products thereby enhancing BOE’s
process routes for mass accumulation for subsequent
influence in the Mini/Micro display
production of subsequent small-pitch product
industry.
small-pitch products. development.
Splicing
products It provides customers with
Glass-based large-size under mass
splicing products; ultra-high specification To strategically position MNT
Medium- production products with 1K/2K/4K- MLED gaming products and catere
and large- MLED glass-based high Product dimming zones, a peak to the premium demands of the
size COG dimming zones product design brightness up to 2000nit, ultra- esports market; to gain recognition
Backlight development; validation high reliability and a million- from top international customers
products for high grade contrast ratio, entering the and enhance market share in the
MLED product cost high-end market of MNT MLED display segment.
reduction. dimming
zones Gaming and tilted displays.
completed
NB products obtain the VESA
To achieve product
HDR1000 certification and
specifications of ultra- To release ultra-high dimming
achieve product specifications
high dimming zones, zones products for the gaming
Small- of ultra-high dimming zones,
ultra-high brightness and laptop market to maintain the
and ultra-high brightness and an
an ultra-high contrast Company’s leading position in the
medium- Under mass ultra-high contrast ratio for
ratio for high-end gaming NB Mini LED market and offer the
size production. gaming laptops to bring
laptops to meet the advantages of energy saving,
backlight ultimate experience to gaming
demand of top customers thinness, wide colour gamut, high
products laptop users and assist key
and bring ultimate contrast ratio and fine dynamic
customers in realizing the
experience to gaming dimming zones.
continued leadership of high-
laptop users.
end gaming laptops.
To cooperate with To introduce Mini LED
To achieve breakthrough in the
multiple automobile or technology to enhance the
development of vehicle-amounted
Vehicle Tier1 brands to enhance vehicle-amounted LCD display
Mini LED products, greatly
backlight the in-vehicle screen to In progress effect, reach product
enhance the performance of LCD
products realise product specifications of high dimming
vehicle-amounted products and
specifications of high zones, high brightness, and an
support automotive customers in
dimming zones, high ultra-high contrast ratio and
their growth trajectory toward
brightness, and ultra-high compete with the visual effects
26
BOE Technology Group Co., Ltd. Annual Report 2023
contrast ratio, and bring a achieved by OLED screens. intelligent vehicle development.
new ultimate experience
to automobile users.
Implement multiple-partition
Local Dimming control to To enhance brand customers’
To enhance customers’
achieve high contrast ratios, recognition of BOE’s technical
high-end product
The product integrate BOE’s capabilities and realise the high-end
High-end positioning in the North
client has 120Hz→240Hz HSR hardware Gaming TV technology card;
GamingT American market and
been partitioning technology and promote the market application of
V Project assist customers to
launched. ADS pro features and ADS Pro technology and enhance
enhance the brand image
successfully pass AMD Free- the market competitiveness of
and win market share.
Sync Premium Pro certification BOE’s high-end TVs.
for the esports industry.
To realise a more
To obtain Microsoft Teams
humanized Smart feature
certification, complete To successfully complete Microsoft
display experience and
FreeSync Premium Pro Teams display technology
solve the problems of HD The product
Teams certification, utilize LCD driver certification, realise the Company’s
audio and video client has
Certified acceleration technology and display technology enhancement
technology as well as been
Monitors high-bandwidth digital content and lay a solid foundation for the
intelligent echo launched.
protection technology (Support Company’s high-end display
cancellation technology
Win10/11) to achieve better technology development.
based on the Teams
customer experience.
certified features.
1. To accommodate a total of
four models from Intel and
AMD platforms;
Expand laptop brand
2. To achieve a dual-side
customer base and To uphold a strong reputation for
narrow bezel design of 5mm
Developm implement common-mode BOE and its customers with
and reach a screen-to-body ratio
ent of design to produce the The product professional development
of 87.5%;
light same product model with client has capabilities and sound product
gaming two distinct CPU been 3. To realise a sleek design with quality, thereby laying the
all-round platforms – one based on launched. a thickness of 18mm and a foundation for securing greater
laptop off-the-shelf solutions and weight of 1.9kg, available in breakthroughs with brand
another built on self- two colour options - Dawn customers.
developed technology. White and Dusk Grey -
complemented by an ice-blue
glowing logo and a dawn-
inspired light strip.
To render a 3813 x 2.2 ultra-
thin screen surpassing industry
standards, develop and design
Bare Ear To complete the The product
an ultra-low F0 core TPC flagship products will achieve
3D Spatial development of 13-inch client has
technology, employ a Box ultra- a qualitative leap in product
Audio bare ear 3D spatial audio been
high/low frequency crossover development capabilities.
TPC TPC. launched.
design, and achieve an ultra-
narrow camera leading the
industry at the same time.
1. Implement 5Hz ultra-low
frequency refresh to increase
OT 5Hz- battery life by 20%;
To complete the research
144Hz 2. Enable ultra-wide frequency Self-developed TPC products based
and development of 5Hz- R&D
Dynamic range refresh from 5Hz to on Oxide 5Hz-144Hz dynamic
144Hz dynamic refresh completed.
Refresh 144Hz; refresh.
TPC.
TPC
3. Develop BOE’s proprietary
DFS frame cutting service
(finger touch frame cutting and
27
BOE Technology Group Co., Ltd. Annual Report 2023
60Hz frame cutting for active
pens).
To design and develop a
proprietary 2.4 GHz To implement a 2.4GHz
communication protocol proprietary protocol To develop 2.4G proprietary
for use in low-power communication system that protocols for the application of EPD
EPD, develop electronic ensures a minimum lifespan of in various sectors such as smart
shelf labels (ESLs) and 5 years for electronic tags, retail, smart warehousing, and
Long-
access points (APs), and utilise 2.4GHz wireless healthcare, explore other uses of
distance
implement cloud platform technology for fast refreshing of EPD in untapped areas, achieve
range AP
management and control R&D electronic labels, develop a complete ownership of independent
technolog
systems capable of completed. cloud management platform intellectual property rights and
y
remotely updating ESL capable of managing APs and mastery of core technologies,
developm
content; ultimately tags, ensure that a single AP can enhance the competitive edge of
ent
penetrate the market for handle a load of at least 36,000 electronic paper-derived products,
electronic paper tags, and configure each AP to and drive revenue growth and
derivative products while perform a full graphic refresh diverse development of the
achieving complete for no less than 1,500 tags per Company.
technological autonomy hour.
and economic benefits.
To position the 2/3D switchable
To broaden the
naked-eye 3D MNT product at the
application of 2D/3D To realise the 2D/3D switchable
forefront of the industry, achieve
switchable naked-eye 3D naked-eye 3D display feature,
one-button switching between 2D
technology in MNT ensure high 3D transmission
Under mass and 3D modes, incorporate eye-
Naked- products, support single- rate while maintaining lossless
production. tracking technology for single-user,
eye 3D user high mobility 2D images, integrate an on-
highly flexible mobile viewing
MNT viewing, enhance the The product board 3D display processing
experiences, widely apply this
Product immersive nature of 3D client has chip, reduce main frame
technology in individual-use
Developm viewing experiences, and been configuration requirements,
scenarios such as 3D gaming, video
ent Project achieve the independent launched. provide 3D software and
playback, 3D live streaming, and
development of MNT software development kits and
software conversions and empower
products with switchable support the 3D conversion of
customers to participate in IFA
2/3D naked-eye 3D multiple scenarios.
exhibitions where they have
display capabilities.
secured two prestigious awards.
To realise the independent R&D To develop ultra-large-sized naked-
Ultra- The growing appetite for
of ultra-large-sized, ultra-high- eye 3D display devices with ultra-
large size naked-eye 3D advertising
resolution, high colour-gamut, high resolution and lossless
16K machines is driving
and wide-view-angle playback capabilities, enabling
naked-eye widespread demand, and
3Dcommercial display set, and multiple viewers to simultaneously
3D BOE’s independent
independently develop 16K move around freely while enjoying
commerci development of extra- R&D
interlacing layout algorithms as an immersive experience, suitable
al display large size naked-eye 3D completed.
well as a 16K 3D player to for applications in sectors such as
machine displays bolsters its
provide users with high- advertising, conferences, and
technolog technological backbone
definition, premium-quality, education, thus contributing to
y for business expansion in
immersive, and highly flexible BOE’s leadership in setting the
developm the commercial 3D
3D viewing experiences benchmark for the 3D display
ent project display domain.
through naked-eye 3D products. industry.
To foster the ecosystem of
To establish a BOE naked-eye 3D
naked-eye 3D content and To enable real-time viewing of
software content ecosystem,
3D work to solve the issues 2D videos converted to 4K
provide a seamless integration of
Content of low engagement and high-definition 3D format while
R&D hardware and software solutions for
Intelligent challenging promotion playing and achieve cost-
completed. BOE’s naked-eye 3D devices,
Generatio faced by 3D hardware due effective realization of 3D
enhance the product
n System to a scarcity of content, video calls with enhanced
competitiveness and enrich the 3D
through dedicated stereoscopic effects.
software environment.
software solutions.
Smartban To complete the Launched. To optimize fundamental To continuously refine the technical
k branch innovative development functionalities to enhance capabilities of core products,
28
BOE Technology Group Co., Ltd. Annual Report 2023
integrated of application scenarios customer experience, enhance the competitiveness of
managem within the digital successfully develop eight BOE’s financial industry solutions,
ent transformation strategy innovative SAAS applications expand system solution capacities
platform for smart banks, provide a to diversify banking customer in inclusive finance, innovation
2.X broader range of system solution scenarios, and integrate finance, and green finance
project solution capabilities and IoT energy consumption directions and facilitate sustained,
enhance the monitoring, AI invisible high-quality growth for BOE’s
competitiveness of core watermark monitoring, and AI smart financial services business.
products. gaze tracking technologies to
finalize the practical
implementation of these
technological innovations and
boost product competitiveness.
The new generation of smart
Completed the development and
Develop smart window window solution products is a
commercialization of updated
solution products for technological innovation, and
Smart smart window solution
architecture, upgrading for the traditional
window products. By adjusting the
transportation and other Launched to buildings and vehicle windows.
solution window transmittance, improve
scenes. Create the market The market size of this product is
developm the user experience, upgrade
environmental light huge. Through the completion of
ent smart windows technology for
adaptive smart window this product development, the
architecture, transportation and
products. company obtains more market
other scenes.
opportunities.
Solar- Apply solar power and
powered wireless transmission
wireless technology, we develop Develop a smart window Solve architectural customer pain
smart the smart window solution product that powered points and improve customer
Developing
window solution product that by green energy and without experience. Get potential
solution powered by green energy wiring requirements. customers.
developm and without wiring
ent requirements.
Complete photoelectric sensor,
Photoelect Develop a general
slot sensor, color sensor, fiber Exploring the market for sensors
ric sensor photoelectric sensor Mass
optic sensor product and solutions in the field of
developm product for industrial production.
development and mass industrial automation.
ent automation.
production.
The target product of this project is
High-
Output prototype, and its the main product in the field of
precision
technical indicators such as industrial sensor. The company will
measurem Develop a high-precision
Developing measurement accuracy, expand the industrial sensor market
ent sensor measurement sensor.
response time etc. meet such as new energy,
developm
requirements. semiconductors, and lasers by this
ent
product.
1. Enhancing the dynamic
response characteristics of the
panels to reduce ghosting and By improving the product
FPXD
Improve the product Mass improve frame rate; performance, the company will
developm
competitiveness of FPXD. production. expand the application filed of
ent 2. Developing high sensitivity FPXD products.
scintillators process to improve
signal-to-noise ratio.
Particulars about R&D personnel:
Item 2023 2022 Change (%)
Number of R&D personnel 21,888 21,075 3.86%
R&D personnel as % of total employees 24.17% 23.86% 0.31%
Educational background of R&D personnel
29
BOE Technology Group Co., Ltd. Annual Report 2023
Bachelor’s degree 13,237 12,835 3.13%
Master’s degree 6,620 6,297 5.13%
Age structure of R&D personnel
Below 30 8,478 9,513 -10.88%
30~40 11,238 10,046 11.87%
Particulars about R&D investments:
Item 2023 2022 Change (%)
R&D investments (RMB) 12,563,352,690.00 12,601,880,481.00 -0.31%
R&D investments as % of operating revenue 7.20% 7.06% 0.14%
Capitalized R&D investments (RMB) 2,099,546,599.00 2,036,264,271.00 3.11%
Capitalized R&D investments as % of total R&D
16.71% 16.16% 0.55%
investments
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable Not applicable
5. Cash Flows
Unit: RMB
Item 2023 2022 Change (%)
Subtotal of cash generated from operating
197,467,109,087.00 217,984,263,980.00 -9.41%
activities
Subtotal of cash used in operating activities 159,165,282,203.00 174,962,296,675.00 -9.03%
Net cash generated from/used in operating
38,301,826,884.00 43,021,967,305.00 -10.97%
activities
Subtotal of cash generated from investing
75,280,272,801.00 85,775,713,322.00 -12.24%
activities
Subtotal of cash used in investing activities 104,582,082,981.00 121,748,512,196.00 -14.10%
Net cash generated from/used in investing
-29,301,810,180.00 -35,972,798,874.00 18.54%
activities
Subtotal of cash generated from financing
30,633,001,231.00 54,885,926,217.00 -44.19%
activities
Subtotal of cash used in financing activities 52,294,369,872.00 76,059,178,079.00 -31.25%
Net cash generated from/used in financing
-21,661,368,641.00 -21,173,251,862.00 -2.31%
activities
Net increase in cash and cash equivalents -12,289,056,016.00 -12,241,448,319.00 -0.39%
Explanation of why any of the data above varies significantly:
Applicable □ Not applicable
Net cash generated from operating activities decreased 10.97% year on year, primarily driven by the decreased sales and tax and levy
rebates during the Reporting Period.
Net cash generated from investing activities increased 18.54%year on year, primarily driven by the decrease in cash paid for the
acquisition and construction of long-term assetsthe increased net inflow from investments in wealth management instruments 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 Reporting
30
BOE Technology Group Co., Ltd. Annual Report 2023
Period
□ Applicable Not applicable
V Analysis of Non-Core Businesses
Applicable □ Not applicable
Unit: RMB
As % of total
Item Amount Source/Reason Recurrent or not
profit
Returns recognized on investments in
Return on investment 810,709,642.00 44.23% Not
associates during the Reporting Period
Gain/loss on changes
291,542,233.00 15.91% N/A Not
in fair value
Inventory valuation allowances
Asset impairments -2,406,230,634.00 -131.27% Not
established based on market conditions
Non-operating income 383,996,163.00 20.95% N/A Not
Non-operating expense 69,649,357.00 3.80% N/A Not
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2023 1 January 2023 Change in
Reason for any significant
Item As a % of total As a % of total percentag
Amount Amount change
assets assets e (%)
Monetary assets 72,467,392,718.00 17.29% 68,800,307,369.00 16.36% 0.93% N/A
Accounts
33,365,416,490.00 7.96% 28,203,647,569.00 6.71% 1.25% N/A
receivable
Contract assets 95,710,742.00 0.02% 71,636,461.00 0.02% 0.00% N/A
Inventories 24,119,667,325.00 5.75% 22,787,814,225.00 5.42% 0.33% N/A
Investment
1,412,553,446.00 0.34% 1,122,025,138.00 0.27% 0.07% N/A
property
Long-term
equity 13,731,696,627.00 3.28% 12,421,878,851.00 2.95% 0.33% N/A
investments
Fixed assets 210,371,476,524.00 50.19% 205,987,050,430.00 48.98% 1.21% N/A
Transfer of new
Construction in constructions to fixed
29,670,115,546.00 7.08% 43,386,134,668.00 10.32% -3.24%
progress assets during the
Reporting Period
Right-of-use
724,344,345.00 0.17% 687,120,946.00 0.16% 0.01% N/A
assets
Short-term
1,746,184,534.00 0.42% 2,373,938,871.00 0.56% -0.14% N/A
borrowings
Contract
3,000,168,620.00 0.72% 2,411,717,792.00 0.57% 0.15% N/A
liabilities
Long-term
121,546,339,022.00 29.00% 123,143,479,690.00 29.28% -0.28% N/A
borrowings
Lease liabilities 542,141,496.00 0.13% 538,586,010.00 0.13% 0.00% N/A
Indicate by tick mark whether overseas assets account for a larger proportion of total assets.
□ Applicable Not applicable
31
BOE Technology Group Co., Ltd. Annual Report 2023
2. Assets and Liabilities at Fair Value
Applicable □ Not applicable
Unit: RMB
Gain/loss on
Cumulative fair- Impairment
fair-value
value changes allowance for Purchased in the Sold in the
Item Beginning amount changes in the Other changes Ending amount
charged to the Reporting Reporting Period Reporting Period
Reporting
equity Period
Period
Financial assets
1. Held-for-trading
financial assets (excluding
17,187,993,936.00 88,938,906.00 0.00 0.00 61,259,686,426.00 70,639,200,000.00 0.00 7,755,964,495.00
derivative financial
assets)
2.Derivative financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
assets
3. Investments in other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
debt obligations
4. Investments in other
483,060,306.00 0.00 -235,537,897.00 0.00 2,197,830.00 0.00 -3,035,565.00 494,629,577.00
equity instruments
5. Other non-current
2,022,967,681.00 202,603,327.00 0.00 0.00 28,207,317.00 0.00 0.00 2,253,778,325.00
financial assets
Subtotal of financial
19,694,021,923.00 291,542,233.00 -235,537,897.00 0.00 61,290,091,573.00 70,639,200,000.00 -3,035,565.00 10,504,372,397.00
assets
Investment property 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Productive living assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Receivable financing 0.00 0.00 0.00 0.00 0.00 0.00 408,534,622.00 408,534,622.00
Total of the above 19,694,021,923.00 291,542,233.00 -235,537,897.00 0.00 61,290,091,573.00 70,639,200,000.00 405,499,057.00 10,912,907,019.00
Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contents of other changes:
N/A
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes No
32
BOE Technology Group Co., Ltd. Annual Report 2023
3. Restricted Asset Rights as at the Period-End
Unit: RMB
Item Ending carrying value Reason for restriction
Mainly security deposits, and amounts put in pledge for the issuance of notes
Monetary assets 1,869,539,464.00
payable
Endorsed and transferred with right of recourse, and those put in pledge for the
Notes receivable 230,354,069.00
issuance of notes payable
Fixed assets 136,319,471,935.00 As collateral for guarantee
Intangible assets 1,546,929,316.00 As collateral for guarantee
Construction in progress 2,925,304,165.00 As collateral for guarantee
Investment property 100,605,150.00 As collateral for guarantee
Total 142,992,204,099.00 --
VII Investments Made
1. Total Investment Amount
Applicable □ Not applicable
Investments made in this Reporting Period (RMB) Investments made in the prior year (RMB) Change (%)
1,116,622,231.00 7,529,231,984.00 -85.17%
2. Significant Equity Investments Acquired in the Reporting Period
Applicable □ Not applicable
Unit: RMB
Index
(if
Date
Investmen Any any)
Return in (if
The Term of Type of the t progress legal to
Principal Way of Amount of Funding Anticipate the any)
Investee Company’ Co-investor investmen investee’s as of the matter disclo
operations investment investment source d income Reportin of
s interest t products balance involve sed
g Period disclo
sheet date d or not infor
sure
matio
n
33
BOE Technology Group Co., Ltd. Annual Report 2023
This project
intends to
The produce
Investment
Administrativ mainly high-
in the
Chengdu Self- e Committee end touch
constructio 29 www.
BOE Newly funded of the display for
n of the 19,999,400,000.0 Nove cninfo
Display incorporate 52.63% and Chengdu Hi- - notebooks/tabl - - - No
BOE 8.6G 0 mber .com.c
Technolog d externall Tech et PCs, among
AMOLED 2023 n
y Co., Ltd. y funded Industrial others,
production
Development focusing on
line
Zone medium-sized
OLED IT
products.
19,999,400,000.0
Total -- -- -- -- -- -- -- -- - - -- -- --
0
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable Not applicable
4. Financial Investments
(1) Securities Investments
Applicable □ Not applicable
Unit: RMB
Account Profit/loss on
Variety Name Cumulative fair Sold in
ing fair value Purchased in Profit/loss in Fundi
of Code of of Initial investment Beginning value changes this Ending carrying Accountin
measure changes in this this Reporting this Reporting ng
securitie securities securit cost carrying value charged to Reportin value g title
ment Reporting Period Period source
s ies equity g Period
model Period
Other
Domesti Fair equity Self-
c/overse 600658.SH BEZ 90,160,428.00 value 53,614,432.00 0.00 -28,710,041.00 0.00 0.00 728,606.00 61,450,387.00 instrument funde
as stock method investmen d
t
Domesti 01963.HK Bank 120,084,375.00 Fair 91,600,150.00 0.00 -29,667,668.00 0.00 0.00 9,885,131.00 90,416,707.00 Other Self-
34
BOE Technology Group Co., Ltd. Annual Report 2023
c/overse of value equity funde
as stock Chong method instrument d
qing investmen
t
New Other
Domesti Centur Fair equity Self-
c/overse 01518.HK y 140,848,850.00 value 9,098,008.00 0.00 -123,360,576.00 0.00 0.00 0.00 17,488,274.00 instrument funde
as stock Health method investmen d
care t
Held-for-
Domesti Fair Self-
trading
c/overse 002841.SZ CVTE 299,999,939.00 value 256,525,783.00 -53,808,754.00 0.00 0.00 0.00 -53,808,754.00 202,717,029.00 funde
as stock method financial d
assets
Held-for-
Domesti Fair Self-
ASE trading
c/overse 688720.SH 29,999,976.00 value 0.00 28,484,211.00 0.00 29,999,976.00 0.00 28,484,211.00 58,484,187.00 funde
as stock M method financial d
assets
Other securities investments held
0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
at the period-end
Total 681,093,568.00 -- 410,838,373.00 -25,324,543.00 -181,738,285.00 29,999,976.00 0.00 -14,710,806.00 430,556,584.00 -- --
(2) Investments in Derivative Financial Instruments
□ Applicable Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
Applicable □ Not applicable
(1) Overall Usage of Funds Raised
Applicable □ Not applicable
Unit: RMB’0,000
Total Accumulati Proportion The usage Amount
Total funds Accumulati Total funds Total
Year Way of raising Net proceeds funds used ve funds of and of funds
raised ve funds with usage unused
in the with usage accumulat destination raised idle
35
BOE Technology Group Co., Ltd. Annual Report 2023
Current used changed changed ive funds funds of unused for over
Period with usage funds two years
changed
Private placement of
2021 2,033,260 1,986,951 166,166 2,033,260 100,000 100,000 4.92% 0 N/A 0
shares
Renewable corporate
2022 200,000 198,888 0 200,000 0 0 0.00% 0 N/A 0
bonds
Total -- 2,233,260 2,185,839 166,166 2,233,260 100,000 100,000 4.48% 0 -- 0
Explanation of overall usage of funds raised
The Company raised RMB2,000,000,000 from the above-mentioned offering of perpetual bonds during 2022, and the net proceeds exclusive of issuance costs were RMB1,988,880,000, which
would be used for capital increase to subsidiary and replenishing the working capital. The raised funds have been used up, conforming to the provisions of the prospectus.
The cumulative amount of raised funds through private placement of shares was RMB20,332,599,995.83, and the net proceeds after deducting issuance costs were RMB19,869,507,400. In
the Reporting Period, the raised funds were used according to project investment plans and have been used up, conforming to the relevant promise.
(2) Commitment Projects of Fund Raised
Applicable □ Not applicable
Unit: RMB’0,000
Whether
Changed or Investmen Accumulative Realized
Investment Whether occurred
Committed investment not Committed t amount investment Investment schedule Date of reaching income in
amount after reached significant
project and super raise (including investment in the amount as of as the period-end intended use of the
adjustment anticipate changes in
fund arrangement partial amount Reporting the period-end (3)＝(2)/(1) the project Reporting
(1) d income project
changes) Period (2) Period
feasibility
Committed investment project
Project of repaying the
loan from Fuzhou Urban
Not 300,000 300,000 0 300,000 100.00% No N/A N/A Not
Construction Investment
Group
Acquisition of 24.06%
equity interests in Wuhan
Not 650,000 650,000 0 650,000 100.00% No N/A N/A Not
BOE Optoelectronics
Technology Co., Ltd.
Project of a capital
increase to Chongqing Not 600,000 600,000 66,166 600,000 100.00% December 2024 N/A N/A Not
BOE Display Technology
36
BOE Technology Group Co., Ltd. Annual Report 2023
Co., Ltd. and the relevant
construction
Project of BOE’s 6th new-
type semi-conductor
Yes 100,000 100,000 100,000 100,000 100.00% December 2025 N/A N/A Not
display device production
line
Project of a capital
increase to Chengdu BOE
Not 50,000 50,000 0 50,000 100.00% April 2021 N/A N/A Not
Hospital Co., Ltd. and the
relevant construction
Supplementing working
capital with the funds
Not 286,951 286,951 0 286,951 100.00% No N/A N/A Not
raised in the 2021 private
placement of shares
22BOEY1-Capital
increase to Chengdu BOE
Not 100,000 100,000 0 100,000 100.00% No N/A N/A Not
Optoelectronics
Technology Co., Ltd.
22BOEY1- Capital
increase to Chongqing
Not 90,000 90,000 0 90,000 100.00% No N/A N/A Not
BOE Display Technology
Co., Ltd.
22BOEY1–
Supplementing working Not 10,000 8,888 0 8,888 100.00% No N/A N/A Not
capital
Subtotal of committed
-- 2,186,951 2,185,839 166,166 2,185,839 -- -- N/A -- --
investment project
Super raised funds arrangement
N/A
Total -- 2,186,951 2,185,839 166,166 2,185,839 -- -- N/A -- --
Describe project by All raised funds for the committed investment project (22BOEY1) and the committed investment projects (repaying the loan from Fuzhou Urban Construction
project any failure to Investment Group / acquisition of 24.06% equity interests in Wuhan BOE Optoelectronics Technology Co., Ltd. / Supplementing working capital with the funds
meet the schedule or raised in the 2021 private placement of shares) have been used up. As a result, the Company's main business will be developed, its competitiveness will be
anticipated income, as enhanced, its debt-to-asset ratio will be effectively reduced, its debt paying ability will be strengthened, and its financial position will be improved. The input of
well as the reasons “N/A” in the “anticipated income” is because these projects do not directly generate economic benefits. The committed investment project (a capital increase to
(including reasons for Chengdu BOE Hospital Co., Ltd. and the relevant construction) has not yet entered into the period of stable operation and profitability. The committed investment
inputting “N/A” for project (BOE’s 6th new-type semi-conductor display device production line) is now under construction (construction period: 2023-2025), which is expected to
“Whether reached achieve mass production in 2025. The committed investment project (a capital increase to Chongqing BOE Display Technology Co., Ltd. and the relevant
37
BOE Technology Group Co., Ltd. Annual Report 2023
anticipated income”) construction) is to be carried out by three phases. Phase I and Phase II have reached the intended targets, and are in the process of continuous production scheduling
according to market demand and customer introduction. Phase III equipment have been delayed to varying degrees in terms of equipment transport, move-in and
debugging due to the market environment and other external reasons. It is expected that Phase III will be fully put into mass production in 2024 by actively
installing and debugging equipment.
Notes of condition of
significant changes
N/A
occurred in project
feasibility
Amount, usage and
schedule of super raise N/A
fund
Changes in
implementation address of N/A
investment project
Adjustment of
implementation mode of N/A
investment project
Applicable
Advance investments in As at 31 December 2023, the funds raised through Phase I of renewable corporate bonds of 2022 were used to swap with advance project investments of RMB1.9
projects financed with billion, of which RMB1 billion was swapped with the advance investment in Chengdu BOE Optoelectronics Technology Co., Ltd. with equity funds, and the
raised funds and swaps of remaining RMB0.9 billion was swapped with the advance investment in Chongqing BOE Display Technology Co., Ltd. with equity funds.
such advance investments As at 31 December 2023, the Company had replaced the prior invested funds of the committed investment projects with the raised funds from the non-public
with subsequent raised 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
funds 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 N/A
temporarily
Amount of surplus in Applicable
project implementation As at 31 December 2023, the funds raised through the perpetual bonds have been used up, with a balance of RMB0.7457 million in the raised funds account,
and the reasons which was the interest income generated during the deposit period.
Usage and destination of
There is a balance of RMB0.7457 million in the account of the funds raised through the perpetual bonds, which will be used to pay the interest for the bonds.
unused funds
Problems incurred in fund
using and disclosure or N/A
other condition
38
BOE Technology Group Co., Ltd. Annual Report 2023
(3) Re-purposed Raised Funds
Applicable □ Not applicable
Unit: RMB’0,000
Time
Significant
Total raised Cumulative when the Returns Meeting
Investment change to
funds to be Investment in investment project is derived the
progress as at feasibility of
Re-purposed project Former project invested in the the Reporting amount at ready for in the expecte
the period-end the re-
re-purposed Period the period- its Reportin d returns
(3)＝(2)/(1) purposed
project (1) end (2) intended g Period or not
project
use
Project of a capital increase to
Yunnan Chuangshijie
Project of BOE’s 6th new-type
Optoelectronics Technology December
semi-conductor display device 100,000 100,000 100,000 100.00% N/A N/A No
Co., Ltd. for the construction 2025
production line
of the 12-inch silicon-based
OLED project
Total -- 100,000 100,000 100,000 -- -- 0 -- --
The change of this raised funds investment project is a prudent judgement based on the actual situation in the implementation of the project and in
conjunction with the Company's actual business development needs. As the silicon-based OLED industry is in the early stage of rapid development and
technological innovations are surging, the Company has not yet arranged for the launch of Phase II and Phase III of the project based on the
consideration of the risk of continuous changes in technological processes and market demand. In order to improve the efficiency of the use of the
raised funds, upon prudent study, the Company decided to terminate the raised funds investment in the project of a capital increase to Yunnan
Reasons for change, decision- Chuangshijie Optoelectronics Technology Co., Ltd. for the construction of the 12-inch silicon-based OLED project. The new investment project will
making process and disclosure of help the Company's high-end display technology achieve industrialisation, enhance the shipment of high-end products, accelerate the implementation of
information (project by project) the "Empower IoT with Display" strategy, and consolidate the position in the industry. According to the Proposal on Certain Re-purposed Project
Invested with Funds Raised in the 2021 Private Placement of Shares, which has been approved at the 21 st Meeting of the 10th Board of Directors and the
7th Meeting of the 10th Supervisory Committee on 30 October 2023, as well as at the Second Extraordinary General Meeting of Shareholders in 2023
dated 16 November 2023, part of the raised funds would be re-purposed. The re-adjustments have been disclosed in Announcement No. 2023-055 of
BOE Technology Group Co., Ltd. on Certain Re-purposed Project Invested with Funds Raised in the 2021 Private Placement of Shares dated 31
October 2023.
Reasons for not reaching the
scheduled progress or expected N/A
returns (project by project)
Particulars about significant
No significant change
change to feasibility of the re-
39
BOE Technology Group Co., Ltd. Annual Report 2023
purposed project
VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable Not applicable
IX Main Controlled and Joint Stock Companies
Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
Relationsh
Principal activities Registered
Name ip with the Total assets Net assets Operating revenue Operating profit Net profit
capital
Company
R&D, Production, and sales
Chongqing
of semi-conductor display
BOE
device, complete machine,
Optoelectro
Subsidiary and relevant products; 3,845,200,000 41,380,299,808.00 30,214,115,689.00 17,443,100,796.00 3,919,040,876.00 3,418,322,929.00
nics
import and export business
Technology
and technology consulting
Co., Ltd.
of goods.
Hefei
Xinsheng Investment construction,
R&D, Production, and sales
Optoelectro
Subsidiary of relevant products of 9,750,000,000 27,433,011,295.00 16,136,446,581.00 18,168,085,482.00 803,350,078.00 781,812,792.00
nics TFT-LCD and its matching
Technology products.
Co., Ltd.
40
BOE Technology Group Co., Ltd. Annual Report 2023
Hefei BOE Investment construction,
Optoelectro R&D, Production, and sales
nics Subsidiary of relevant products of 2,700,000,000 16,379,625,158.00 10,697,299,783.00 5,458,088,809.00 851,455,350.00 811,325,616.00
Technology TFT-LCD and its matching
Co., Ltd. products.
Subsidiaries obtained or disposed in this Reporting Period
Applicable □ Not applicable
Effects on the overall operations
Name of subsidiary How the subsidiary was acquired or disposed of
and performance
Mianyang BOE Electronic Technology Co., Ltd. Incorporated with investment No significant effects
Beijing Shiyan Technology Co., Ltd. Incorporated with investment No significant effects
Wuhan BOE Smart Energy Co., Ltd. Incorporated with investment No significant effects
BOE Smart Internet Hospital (Chengdu) Co., Ltd. Incorporated with investment No significant effects
Beijing BOE Shengshi Technology Co., Ltd. Incorporated with investment No significant effects
Beijing United Ultra High-Definition Video Technology
Business combination not under common control No significant effects
Collaboration Center Co., Ltd.
HC SemiTek Corporation and its subsidiaries Business combination not under common control No significant effects
Suzhou BOE Human Resource Development Co., Ltd. De-registered No significant effects
Information about major majority- and minority-owned subsidiaries:
N/A
41
BOE Technology Group Co., Ltd. Annual Report 2023
X Structured Bodies Controlled by the Company
□ Applicable Not applicable
XI Prospects
As we look ahead to 2024, economic restructuring and industrial chain revamping stand as prevailing trends. The meteoric rise of the
digital economy has expedited the seamless fusion of IoT, generative AI, cloud computing, and big data into niche applications,
catalyzing digital transformations across diverse sectors. Going forward, the Company commits to the essence of high-quality growth,
striving to achieve substantial qualitative leaps and rational quantitative expansion, thus enhancing operational efficiency, optimizing
business operations, and fostering overall high-quality development. The Company plans to concentrate on refining the operational
excellence of its display business while fortifying the core innovation capabilities to reinforce its comprehensive competitive edge.
Leveraging the accrued advantages in display technology – particularly the “display” prowess and associated peripherals – the
Company aims to allocate resources judiciously in pivotal domains. This strategic approach is designed to propel enduring corporate
growth and sustainable advancement.
1. "1+4+N+Ecosystem" business development structure
Display Devices business: The Company will proactively leverage the advantages of the industry leader and continue to spearhead the
healthy development of the industry. Meanwhile, it will focus on optimizing the structure of LCD products and speed up the
establishment of a comprehensive leading position in the innovative application market. It will also accelerate the improvement of
OLED technology strength, continue to optimize product performance, increase the proportion of high-end products, accelerate the
development of new application markets, and further strengthen the competitive edges.
IoT Innovation business: The Company will enhance the capabilities of software and hardware integration and system design and
integration, continue to develop strategic customers, and strengthen cooperation with partners within the ecosystem. Also, it will work
harder on segment application scenarios of IoT, strengthen the implementation of benchmark projects, develop blockbuster products,
enhance brand influence, and accelerate the growth of business scale.
Sensor business: The Company will continue to deepen the development of smart screens, MEMS sensors and industrial sensors,
among others, as well as focus on breakthroughs in new areas such as glass-based encapsulation, to provide customers with high-
performance products and services.
MLED business: The Company will create a Mini/Micro LED product group with active driver and COG at its core and coordinated
development of COB and SMD, strengthen the collaboration and integration with upstream and downstream resources, continuously
enrich the product mix, enhance product competitiveness, expand applications and expedite the development of business landscape.
Smart Engineering Medicine business: The Company will continue to deepen the "construction of a closed-loop service system with
health management as the core, medical engineering products as the traction, and digital hospitals as the support", strengthen its core
capabilities 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-scale
application scenarios, continue to deepen its advantageous tracks, accelerate the growth of core capabilities, and speed up the
exploration 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", fully
integrate 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
transformation to further improve operational efficiency and business performance, and boost long-term, stable and high-quality
42
BOE Technology Group Co., Ltd. Annual Report 2023
development.
3. " Carbon Peaking and Carbon Neutrality Goals " task
The Company will deepen the implementation of the concept of green development, and continue to strengthen the efficient and
comprehensive utilization at multiple sources, the integrated management of energy supply, distribution, use and storage, and digital
management 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 and
Interviews
Applicable □ Not applicable
Type of
Way of the Main discussions and Index to the
Date Place communic commun Communication party materials provided by the relevant
ation ication Company information
party
Instituti
12 January 2023 Conference call By phone Crescent Park Management
on
Company On-site Instituti Caitong Securities, Golden
18 January 2023 Main discussions:
Conference Room visit on Sun Securities
Answered questions from
Golden Sun Securities, investors.
Instituti Materials provided by the
19 January 2023 Conference call By phone AEGON-INDUSTRIAL
on Fund Company:
The Company’s Interim
JPMorgan Asset Report 2022, Third
Instituti
19 January 2023 Conference call By phone Management, Morgan Quarterly Report 2022, and
on Stanley other materials that had been
disclosed to the public.
Guosen Securities, China
Instituti
20 January 2023 Conference call By phone Southern Asset
on Management
Main discussions:
1. Industry and market
www.cninfo
overview;
.com.cn
2. The Company’s
operations; and
3. Answered questions from
Mianyang BOE
investors.
Optoelectronics On-site Instituti 12 institutions including
2 February 2023 Materials provided by the
Technology Co., visit on Golden Sun Securities
Company:
Ltd.
The Company’s Interim
Report 2022, Third
Quarterly Report 2022, 2022
Annual Earnings Forecast,
and other materials that had
been disclosed to the public.
Instituti
6 February 2023 Conference call By phone FengHe Capital Main discussions:
on
Answered questions from
Fullgoal Fund, China investors.
Company On-site Instituti Merchants Fund, GF Materials provided by the
7 February 2023
Conference Room visit on Securities, China Galaxy Company:
Securities The Company’s Interim
43
BOE Technology Group Co., Ltd. Annual Report 2023
Report 2022, Third
Chengdu BOE
Quarterly Report 2022, 2022
Optoelectronics On-site Instituti Seven institutions
14 February 2023 Annual Earnings Forecast,
Technology Co., visit on including Goldman Sachs
and other materials that had
Ltd.
been disclosed to the public.
Main discussions:
1. Industry and Company
overview; and
2. Answered questions from
investors.
Materials provided by the
BOE Technology On-site Instituti 19 institutions including
21 February 2023 Company:
Innovation Center visit on Funding Capital
The Company’s Interim
Report 2022, Third
Quarterly Report 2022, 2022
Annual Earnings Forecast,
and other materials that had
been disclosed to the public.
Main discussions:
UBS, Korea Investment
Answered questions from
BOE Technology On-site Instituti Management, Franchise
22 February 2023 investors.
Innovation Center visit on Capital, China Pinacle
Equity Management Materials provided by the
Company:
The Company’s Interim
Report 2022, Third
Company Instituti CITIC Securities, Sequoia Quarterly Report 2022, 2022
23 February 2023 By phone
Conference Room on Capital, Shibang Fund Annual Earnings Forecast,
and other materials that had
been disclosed to the public.
Main discussions:
Answered questions from
investors.
Investors attending BOE's Materials provided by the
4 April 2023 http://rs.p5w.net/ Other Other 2022 Annual Results Company:
Online Presentation The Company’s Annual
Report 2022, and other
materials that had been
disclosed to the public.
Main discussions:
1. Industry and market
overview;
2. The Company’s
operations; and
3. Answered questions from
154 institutions including
Company Instituti investors.
4 April 2023 By phone 3W Fund Management
Conference Room on limited Materials provided by the
Company:
The Company’s Third
Quarterly Report 2022,
Annual Report 2022, and
other materials that had been
disclosed to the public.
Main discussions:
1. Industry and market
Instituti 139 institutions including overview;
3 May 2023 Conference call By phone
on FOUNTAIN BRIDGE 2. The Company’s
operations; and
3. Answered questions from
44
BOE Technology Group Co., Ltd. Annual Report 2023
investors.
Materials provided by the
Company:
The Company’s Annual
Report 2022, First Quarterly
Report 2023, and other
materials that had been
disclosed to the public.
Chengdu BOE
Optoelectronics
Technology Co., 6 institutions including
On-site Instituti China Orient Asset
19 May 2023 Ltd., and BOE
visit on Management
Chengdu Vehical- (International)
Mounted Display
Base
BANK NEGARA
BOE Technology On-site Instituti MALAYSIA, China Asset
22 May 2023
Innovation Center visit on Management, CITIC
Securities
Instituti
23 May 2023 Conference call By phone Tengyue Capital
on
Chengdu BOE
Optoelectronics
Technology Co.,
On-site Instituti 7 institutions including
26 May 2023 Ltd. , and BOE Main discussions:
visit on Alliancebernstein
Chengdu Vehical- Answered questions from
Mounted Display investors.
Base Materials provided by the
Company On-site Instituti Company:
14 June 2023 Harvest Fund
Conference Room visit on The Company’s Annual
Report 2022, First Quarterly
Fidelity
Company Instituti Report 2023, and other
26 June 2023 By phone Management&Research
Conference Room on (Hong Kong) Limited materials that had been
disclosed to the public.
CCB Pension, Harvest
Company On-site Instituti Fund, CITIC Asset
30 June 2023
Conference Room visit on Management, CITIC
Securities
Company Instituti Yinhua Fund, GF
30 June 2023 By phone
Conference Room on Securities
Company On-site Instituti
5 July 2023 Gao Yi Asset Management
Conference Room visit on
Company Instituti
12 July 2023 By phone Goldman Sachs
Conference Room on
Company On-site Instituti New China Asset
13 July 2023
Conference Room visit on Management
BOE Technology On-site Instituti
14 July 2023 Foresight Fund
Innovation Center visit on
Main discussions:
1. Industry and market
Instituti 173 institutions including
16 July 2023 Conference call By phone overview;
on Aspex Management
2. The Company’s
operations; and
45
BOE Technology Group Co., Ltd. Annual Report 2023
3. Answered questions from
investors.
Materials provided by the
Company:
The Company’s Annual
Report 2022, First Quarterly
Report 2023, 2023 Interim
Earnings Forecast, and other
materials that had been
disclosed to the public.
Main discussions:
Answered questions from
investors.
Materials provided by the
Company:
Company On-site Instituti
17 July 2023 Huaxi Securities The Company’s Annual
Conference Room visit on
Report 2022, First Quarterly
Report 2023, 2023 Interim
Earnings Forecast, and other
materials that had been
disclosed to the public.
Main discussions:
Answered questions from
investors.
Investors attending BOE's Materials provided by the
31 August 2023 http://rs.p5w.net/ Other Other 2023 Semi-Annual Results Company:
Online Presentation The Company’s Interim
Report 2023, and other
materials that had been
disclosed to the public.
Main discussions:
1. Industry and market
overview;
2. The Company’s operating
results;
3. The Company’s operating
209 institutions including performance; and
Instituti Acuity Knowledge 4. Answered questions from
31 August 2023 Conference call By phone
on Partners (Hong Kong) investors.
Limited Materials provided by the
Company:
The Company’s First
Quarterly Report 2023,
Interim Report 2023, and
other materials that had been
disclosed to the public.
Beijing BOE Main discussions:
Display On-site Instituti Answered questions from
6 September 2023 Guotai Leasing
Technology Co., visit on investors.
Ltd. Materials provided by the
Company:
The Company’s First
Company On-site Instituti China Merchants Fund, GF Quarterly Report 2023,
8 September 2023
Conference Room visit on Securities Interim Report 2023, and
other materials that had been
disclosed to the public.
Beijing Center Main discussions:
25 October 2023 Other Other Media and investors
and the “EasyIR” Answered questions from
46
BOE Technology Group Co., Ltd. Annual Report 2023
(http://irm.cninfo. participating in the investors.
com.cn) platform "Crossing Growth and Materials provided by the
Riding the Wind -
of the Shenzhen Company:
Collective Exchange
Stock Exchange Activity" organized by the None.
Shenzhen Stock Exchange
Main discussions:
1. Industry and market
overview;
2. The Company’s operating
results an performance; and
3. Answered questions from
185 institutions including investors.
Instituti
1 November 2023 Conference call By phone Allianz Global Investors Materials provided by the
on Asia Pacific Limited Company:
The Company’s First
Quarterly Report 2023,
Interim Report 2023, Third
Quarterly Report 2023, and
other materials that had been
disclosed to the public.
Main discussions:
Answered questions from
investors.
Materials provided by the
Company:
BOE Technology On-site Instituti
17 November 2023 Loyal Valley The Company’s First
Innovation Center visit on
Quarterly Report 2023,
Interim Report 2023, Third
Quarterly Report 2023, and
other materials that had been
disclosed to the public.
Main discussions:
Answered questions from
investors.
252 institutions including Materials provided by the
Instituti Balyasny Asset Company:
28 November 2023 Conference call By phone
on Management (Hong Kong) Announcement on
Limited Investment in the
Construction of BOE’s 8.6
AMOLED Production Line
Project
Instituti UG INVESTMENT Main discussions:
30 November 2023 Conference call By phone
on ADVISERS Answered questions from
investors.
BOE Core On-site Instituti Shenzhen Hongchou Materials provided by the
22 December 2023
Comptence Tower visit on Investment Company:
The Company’s First
BOE Core On-site Instituti Zhong Ou Asset, Tebon Quarterly Report 2023,
27 December 2023
Comptence Tower visit on Securities Interim Report 2023, Third
Quarterly Report 2023, and
BOE Core On-site Instituti Chang Xin Asset other materials that had been
28 December 2023
Comptence Tower visit on Management disclosed to the public.
47
BOE Technology Group Co., Ltd. Annual Report 2023
XIII Implementation of the Action Plan for “Dual Enhancement of Quality and Profitability”
Indicate whether the Company has disclosed its Action Plan for “Dual Enhancement of Quality and Profitability”.
Yes □ No
In adherence to the “investor-centric” ethos of listed entities and to protect the interests of all shareholders, the Company, imbued with
confidence in its future prospects and recognizing its inherent value, released the Action Plan for “Dual Enhancement of Quality and
Profitability” on 28 February 2024. This Plan, devised in line with the Company’s overarching strategic blueprint, aims to consistently
bolster its core strengths and elevate both the Company’s quality and investment worth. Here are the specific implementation measures:
1. Pursue the “Core Business Focus and Premium Growth Strategy”
BOE specializes in crafting intelligent interface products and expert services that support information exchange and human wellness,
drawing from extensive know-how and practical experience in semiconductor display and IoT sectors. It has innovatively devised the
“Empower IoT with Display” strategy, custom-fit for their IoT evolution, giving birth to the “1+4+N+Ecosystem” business model.
“1” refers to the semiconductor display business, where the Company solidifies its dominance and maintains a commanding lead. “4”
highlights the high-potential IoT-focused sectors, witnessing numerous transformation outcomes and continuous improvement in
operational quality. Meanwhile, “N” represents the array of specialized, niche market segments where the Company diligently
penetrates and crafts distinctive “specialised, sophisticated, distinctive, and innovative” models.
Moving forward, the Company’s multifaceted business strategies will consistently be guided by “Empower IoT with Display”,
leveraging the “1+4+N+Ecosystem” model for growth. We will remain steadfast in focusing on our core business, aiming to maximize
resource recycling and drive premium business development, thereby generating excellent shareholder returns.
2. Uphold “Innovation as the Prime Mover”
The Company consistently prioritizes technology and innovation, consistently dedicating approximately 7% of its annual revenue to
R&D, with 1.5% allocated specifically to fundamental and frontier tech exploration. As a result, it has emerged as a global front-runner
in semiconductor display R&D investment, establishing a firm groundwork for industry-leading innovation and technological
superiority. Moreover, the Company persistently reinforces its portfolio of high-quality patents. By 2023, it had cumulatively lodged
over 90,000 independent patent applications, with more than 90% of new annual filings being invention patents. More than one-third
of these patents were filed internationally, extending coverage to the U.S., Europe, Japan, South Korea, and other territories across
diverse sectors such as flexible OLED, sensing, AI, big data, etc. The Company now possesses over 40,000 valid patents globally.
Furthermore, for six consecutive years, the Company has featured among the global Top 20 Organizations Granted US Patent.
Moreover, to maintain its technological edge, the Company has built a technology architecture of “Empower IoT with Display” that is
suitable for the transformation and development of its IoT, including device layer, terminal layer, platform layer, and application layer.
With a systematic technological innovation capability that integrates software and hardware, provides key support for the value
extension of its “device - terminal - scenario”. Furthermore, it proactively constructs three core technology pillars—semiconductor
display, IoT innovation, and sensor devices—and collaborates with partners on key research to hasten the IoT transformation journey.
In the future, the Company will persistently uphold “innovation as the primary driver,” ensuring targeted resource investments in key
sectors. It will further intensify collaboration among industry, academia, and research institutions to facilitate tackling core technologies,
thereby steadily enhancing its own technological competitiveness.
3. Maintain “Ethical and Top-Quality Corporate Governance”
To comply with reforms on independent directors, the Company has aligned with recently updated legal and regulatory frameworks,
such as the Revised Guidelines for Articles of Association of Listed Companies, Management Measure for Independent Directors of
Listed Companies, and 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, to revise its Articles of Association. In response to
strategic growth needs, the Company has modified ten governance systems, including the Articles of Association and annexes,
Independent Director System, and the Structure and Procedures of the Board’s Risk Control and Audit Committees. These amendments,
48
BOE Technology Group Co., Ltd. Annual Report 2023
including the Articles and annexes pending the 2023 AGM’s review and approval for implementation, aim to refine internal controls
and significantly elevate the standardization of the Company’s operations.
To protect the rights and interests of independent directors and provide better conditions for independent directors to perform their
duties, the Company has set up an allowance for independent directors; actively promoted the participation of independent directors in
the prior communication meetings of major projects and assisted independent directors to participate in the preliminary research and
demonstration of major projects in advance; and continued to optimize the way of independent directors’ performance of their duties
by carrying out on-site research and visits to production lines. The Company continues to provide better conditions for independent
directors to perform their duties in terms of resources, information and funding, and to improve the guarantee mechanism for
independent directors to perform their duties.
The Company will abide by the principles of “integrity, standardisation, transparency, and responsibility”, regulate itself and
continuously improve the level of governance to robustly safeguard shareholders’ rights and interests. The management commits to
boosting operational and managerial proficiency, continuously enhancing the Company’s core competitiveness, profitability, and
overall risk management capacity, aiming to reward investors and drive the Company’s high-quality growth.
4. Conduct transparent and efficient information disclosure
By 2023, the Company has achieved eight straight years of Grade A ratings for information disclosure by the Shenzhen Stock Exchange.
Upholding strict adherence to legal and regulatory requirements, the Company abides by the “accuracy, completeness, and truthfulness”
principle in disclosing information, catering to investor needs and actively fulfilling social responsibilities. Having published a social
responsibility report (sustainability report) for 14 straight years, the Company bolsters information disclosure transparency. Moving
forward, it will further enhance disclosure quality, effectively communicate corporate value, and strive to provide a sound basis for
investors’ valuation judgments and interest protection.
5. Contributie to “Coexistence and Win-Win with Investors”
The Company persists in showing gratitude to shareholders for their long-standing support through consistent share repurchases and
cash dividends. Over the period 2015-2023, it has distributed cash dividends for nine consecutive years, totaling over RMB20 billion,
maintaining an annual cash dividend payout ratio above 30% of the parent company’s net profits since 2018. This ensures investors
benefit from the Company’s growth achievements.
In 2023, the Company planned to distribute a cash dividend of RMB1.13 billion, representing 44.34% of the net profits attributable to
the parent company in the consolidated financial statements.
Furthermore, between 2020 and 2022, the Company conducted share repurchases for three straight years, spending over RMB4.6
billion cumulatively on A-share repurchases and nearly HKD1 billion on B-share repurchases. In 2023, the Company retired around
500 million repurchased shares, reducing its registered capital to heighten earnings per share.
The Company persists in a proactive, professional, and diverse approach to investor relations management. For institutional investors,
it maintains close ties with the market through regular engagement in institutional research, attendance at brokerage strategy
conferences, and hosting institutional roadshows. For small and medium-sized investors, the Company capitalizes on various platforms,
including Shareholders’ General Meetings, online result presentations, Shenzhen Stock Exchange’s e-interaction platform, investor
hotlines, and email services, to engage actively and respond to queries, gather feedback, and facilitate rights exercise.
49
BOE Technology Group Co., Ltd. Annual Report 2023
Part IV Corporate Governance
I General Information of Corporate Bonds
1. Standardized Operation and Perfection of Corporate Governance Structure of the Company in the Reporting Period
The Company has stringently followed laws and rules such as Company Law, Securities Laws, Code of Corporate Governance for
Listed Companies, etc., and requirements of Stock Listing Rules of the Shenzhen Stock Exchange, Guidelines of the Main-Board for
the Standardized Operation of Companies, to continuously improve the corporate governance of the Company, to perfect internal
control system as well as to promote corporate governance level of the Company.
During Reporting Period, the Company’s board of directors, board of supervisors and senior executives strictly in line with the
requirement of related laws and Company rules and regulations perform their obligations; ensure the standardization and effectiveness
of corporate governance. During the Reporting Period, the Company revised the Articles of Association and continued to promote the
Company’s governance in many ways. Actively arranged the Company's directors, supervisors to join special training organized by
the Securities regulatory bureau of Beijing, and organized on-site research for independent directors. The Company kept regularly self-
inspection of the related party fund transaction, external guarantee as well as the shareholding and its changes of the directors,
supervisors and senior executives, and strengthened the communication of the investors through the Shenzhen Stock Exchange
Investors Interactive Platform.
In the Reporting Period, corporate governance of the Company was perfected and operated normally, which was in total compliance
with 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 of
ensuring legitimacy and validity of shareholders’ general meetings, actively provided conveniences including internet voting for
minority shareholders’ joining the general meeting of the shareholders.
(2) About Relationship between the Controlling Shareholder and the Company
The Company was independent from the controlling shareholder and the actual controller in terms of personnel, assets, financing,
organization and business. The controlling shareholder and actual controller of the Company was able to strictly control its behaviors,
with no direct or indirect intervention in the Company’s decision-making, production and operating activities by violating relevant
laws, regulations and the Articles of Association, no behaviors in relation to occupying significant funds of the Company, and no
behaviors 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 regulations
and the Company’s actual situation. All directors possessed necessary knowledge, skills and quality for duty performance. They all
performed their duties as stipulated in the Articles of Association honestly, faithfully and diligently. They learned about and kept a
constant focus on the Company’s production and operation, its financial status and influence and risks of significant events. They also
took the initiative to search for information needed in their decision-making so as to ensure efficient operation and scientific decision-
making of the Board of Directors. Board sessions were organized and convened in strict compliance with the Articles of Association
and Rules of Procedure for the Board of Directors. There were three special committees under the Board of Directors, namely, the
50
BOE Technology Group Co., Ltd. Annual Report 2023
Strategic Committee, the Nomination, Remuneration and Appraisal Committee and the Risk Control and Audit Committee. The
Company also formulated rules of procedure for all the said special committees so that they could perform better.
(4) About Supervisors and the Supervisory Committee
Within the Reporting Period, the Supervisory Committee has enhanced its ability to supervise the legality and compliance of duty
performance 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 relevant
matters, etc., the Supervisory Committee supervised the Company’s finance, duty performance of directors and senior management
staffs, management and capital flows between the Company and its related parties, and safeguarded the legitimate interests and rights
of the Company and its shareholders. Sessions of the Supervisory Committee were organized and convened in strict compliance with
the Articles of Association and the Rules of Procedure for the Supervisory Committee so as to ensure the Supervisory Committee’s
activities 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 the
Standardized Operation of Companies, the Articles of Association and Management Methods for Information Disclosure and other
requirements, the Company disclosed information in a timely and fair manner and ensured the factuality, accuracy and completeness
of the information disclosed.
The Company highly values investor relations and has set up a specialized investor relations team to consistently execute investor
relations functions with proactive, professional, and diverse strategies.
For institutional investors, the Company maintains effective communication channels with diverse types, ensuring persistent market
visibility. It offers top-notch service through institutional surveys, brokerage strategy sessions, and organized roadshows for institutions.
In terms of serving small and medium-sized investors, the Company consistently prioritizes their service and upholds equal treatment.
It maintains active interaction and communication with medium and small investors by means of shareholder meetings, online
performance presentations, the Shenzhen Stock Exchange’s platform, investor hotlines and investor mailboxes, answers their questions,
heeds their suggestions, and facilitates the exercise of their rights. The Company aims to promote the open, transparent, efficient and
consistent communication between the Company, investors and analyst of securities, made them known more about the development
strategy, operation conditions and technical achievements of the Company.
Meanwhile, the Company has joined hands with a third-party professional IR service agency to conduct investor relations activities via
the digitao platform, which makes the communication become more convenient between the investor and the Company and ensures
the compliance and fairness of the investor relations activities.
In terms of investor protection, the Company actively responds to the call of the Securities and Futures Commission, the Stock
Exchange and the China Association for Public Companies, and utilizes a blend of online and offline approaches to conduct investor
education initiatives, consistently enhancing investors’ investment literacy. Key emphasis is placed on fully implementing the
registration system, promoting wise investment decisions, and embodying the social responsibility of listed corporations.
Indicate by tick mark whether there is any material in-compliance with laws, administrative regulations and the regulatory documents
issued 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 in
Business, 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.
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BOE Technology Group Co., Ltd. Annual Report 2023
1. In business, the Company was independent from the controlling shareholder and the actual controller, with its own production and
business departments and management system, the Company had the capability to make its own decisions, assume sole responsibility
for 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 operating
management team. Chief of Executive Committee, President, Chief Financial Officer, Secretary of the Board as well as other senior
management staffs of the Company all worked on full-time basis in the Company and did not hold any post in or receive any
remuneration in the controlling shareholder unit.
3. In assets, the Company had independent and complete assets. With clear ownership on its assets, the Company independently owned
the production system, ancillary production system as well as supporting facilities for major businesses, as well as assets like land use
rights and intellectual property rights, etc.. Neither the controlling shareholder nor the actual controller appropriated any assets of the
Company.
4. In organization, the Company had established its organization completely independent from the controlling shareholder and the
actual controller, with independent and sound organs and corporate governance structure. The Company had not handled any official
affairs jointly with the controlling shareholder or the actual controller. There were no subordinate relationships between the controlling
shareholder & its functional departments and the Company & its functional departments.
5. In financing, the Company had established independent financial departments, with full-time finance personnel. The Company had
also formulated a standard and independent finance accounting system as well as financial measurement system, established the
corporate financial management archives and deployed relevant administrative personnel for them, opened independent account in
bank, and paid tax independently.
III Horizontal Competition
□ Applicable Not applicable
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Meeting Type participati Date of the meeting Disclosure date Meeting resolutions
on ratio
The following reports and proposals
were deliberated and approved, i.e.,
Report on the Work of the Board of
Directors for 2022, Report on the Work
of the Board of Supervisors for 2022,
Full Annual Report and Summary for
2022, Financial Final Report for 2022
The 2022 and Business Plan for 2023, Proposal
Annual
Annual
General 23.11% 5 May 2023 6 May 2023 for the Distribution of Profits for 2022,
General
Meeting the Proposal on Borrowing and Credit
Meeting
Line, the Proposal on the Development
of Structured Deposits and Other
Principal-protected Business, the
Proposal on the Appointment of an
Audit Agency for 2023, the Proposal on
the Repurchase and Retirement of
Certain Restricted Shares
The 1st Extraordin The following proposals were
24.73% 14 August 2023 15 August 2023
Extraordinar ary deliberated and approved: the Proposal
52
BOE Technology Group Co., Ltd. Annual Report 2023
y General General on Election of Non-Independent
Meeting of Meeting Directors of the 10th Board of Directors,
2023
the Proposal on the Retirement of
Certain Treasury Stocks in the Special
Repurchase Securities Account
The following proposals were
The 2nd deliberated and approved: the Proposal
Extraordin on the Change in Some Fundraising
Extraordinar
ary
y General 26.47% 16 November 2023 17 November 2023 Projects of the 2021 Private Equity
General
Meeting of Offering, the Proposal on the
Meeting
2023 Repurchase and Retirement of Certain
Restricted Shares
The following proposals were
The 3rd deliberated and approved: the Proposal
Extraordin on the Investment for the Development
Extraordinar
ary
y General 26.87% 14 December 2023 15 December 2023 of the Project of the Production Lines
General
Meeting of of the 8.6th Generation AMOLED, the
Meeting
2023 Proposal on Changing the Usage of
Repurchased Shares and Retirement
2. Extraordinary General Meetings Convened at the Request of Preferred Shareholders with Resumed
Voting Rights
□ Applicable Not applicable
53
BOE Technology Group Co., Ltd. Annual Report 2023
V Directors, Supervisors and Senior Management
1. Basic Information
Increase Decrease
Incum Beginning in the in the Other Ending
Gende Reason for
Name Age Office title bent/F Start of tenure End of tenure shareholdin Reporting Reporting increase/dec shareholdin
r change
ormer g (share) Period Period rease (share) g (share)
(share) (share)
Incum
Chairman of the Board 28 June 2019 27 April 2025
Chen bent
Male 58 2,900,000 0 0 0 2,900,000 N/A
Yanshun Chairman of the Executive Incum
20 May 2016 27 April 2025
Committee bent
Incum
Director 28 June 2019 27 April 2025
bent
Gao
Male 48 President, and Vice 1,860,700 0 0 0 1,860,700 N/A
Wenbao Incum
Chairman of the Executive 28 April 2022 27 April 2025
bent
Committee
Wu Incum
Male 48 Director 14 August 2023 27 April 2025 0 0 0 0 0 N/A
Lishun bent
Incum
Ye Feng Male 58 Director 14 December 2021 27 April 2025 0 0 0 0 0 N/A
bent
Tang
Incum
Shoulia Male 71 Independent director 30 May 2020 27 April 2025 0 0 0 0 0 N/A
n bent
Zhang Incum
Male 61 Independent director 18 May 2021 27 April 2025 0 0 0 0 0 N/A
Xinmin bent
Incum
Guo He Male 61 Independent director 28 April 2022 27 April 2025 0 0 0 0 0 N/A
bent
Wang
Incum
Duoxian Male 54 Independent director 28 April 2022 27 April 2025 0 0 0 0 0 N/A
bent
g
Wang Femal Chairman of the Incum
48 28 April 2022 27 April 2025 0 0 0 0 0 N/A
Jin e Supervisory Committee bent
Sun Incum
Male 50 Supervisor 14 December 2021 27 April 2025 0 0 0 0 0 N/A
Fuqing bent
Shi Incum
Male 49 Supervisor 28 April 2022 27 April 2025 0 0 0 0 0 N/A
Xiaodon bent
54
BOE Technology Group Co., Ltd. Annual Report 2023
g
Xu Femal Incum
40 Supervisor 28 April 2022 27 April 2025 0 0 0 0 0 N/A
Jinghe e bent
Incum
Yan Jun Male 52 Employee Supervisor 28 June 2019 27 April 2025 32,000 0 0 0 32,000 N/A
bent
Xu
Incum
Yangpin Male 49 Employee Supervisor 10 July 2013 27 April 2025 35,000 0 0 0 35,000 N/A
g bent
Teng Incum
Male 41 Employee Supervisor 28 June 2019 27 April 2025 55,200 0 0 0 55,200 N/A
Jiao bent
Forme
Liu Vice Chairman of the Board 28 June 2019 12 March 2024
r
Xiaodon Male 59 2,480,000 0 0 0 2,480,000 N/A
Member of the Executive Incum
g 28 April 2022 27 April 2025
Committee bent
Forme
Director 9 June 2017 12 March 2024
r
Femal
Sun Yun 54 Member of the Executive 1,989,481 0 0 0 1,989,481 N/A
e Incum
Committee, and Executive 26 December 2014 27 April 2025
bent
Vice President
Member of the Executive
Feng Incum
Male 47 Committee, and Executive 31 March 2023 27 April 2025 975,700 0 0 0 975,700 N/A
Qiang bent
Vice President
Member of the Executive
Wang Incum
Male 45 Committee, and Executive 28 April 2022 27 April 2025 852,400 0 0 0 852,400 N/A
Xiping bent
Vice President
Member of the Executive
Incum
Committee, and Executive 28 June 2019 27 April 2025
Feng Femal bent
51 Vice President 1,360,000 0 0 0 1,360,000 N/A
Liqiong e
Incum
Lead Counsel 22 August 2007 27 April 2025
bent
Member of the Executive
Zhang Incum
Male 53 Committee, and Executive 28 April 2022 27 April 2025 751,600 0 0 0 751,600 N/A
Yu bent
Vice President
Member of the Executive
Incum
Yang Committee, and Executive 31 March 2023 27 April 2025
Femal bent
Xiaopin 44 Vice President 742,300 0 0 0 742,300 N/A
e
g Incum
Chief Financial Officer 28 April 2022 27 April 2025
bent
Guo Male 46 Senior Vice President, Incum 31 March 2023 27 April 2025 0 0 0 0 0 N/A
55
BOE Technology Group Co., Ltd. Annual Report 2023
Huaping Chief Culture Officer bent
Yue Senior Vice President, Incum
Male 56 28 April 2023 27 April 2025 553,440 0 0 0 553,440 N/A
Zhanqiu Chief Audit Officer bent
Incum
Liu Vice President 20 May 2016 27 April 2025
bent
Hongfen Male 45 1,024,500 0 0 0 1,024,500 N/A
Incum
g Board Secretary 10 July 2013 27 April 2025
bent
Pan Forme
Male 44 Vice Chairman of the Board 28 June 2019 23 January 2024 0 0 0 0 0 N/A
Jinfeng r
The Company
repurchased
and
deregistered the
restricted
Miao shares held by
Forme
Chuanbi Male 50 Senior management 28 June 2019 1 March 2023 758,800 0 0 -650,000 108,800 him in
r
n accordance
with the 2020
Stock Option
and Restricted
Share Incentive
Plan (Draft).
The Company
repurchased
and
deregistered the
restricted
Xie shares held by
Forme
Zhongd Male 53 Senior management 22 April 2011 31 March 2023 1,057,000 0 0 -750,000 307,000 him in
r
ong accordance
with the 2020
Stock Option
and Restricted
Share Incentive
Plan (Draft).
Total -- -- -- -- -- -- 17,428,121 0 0 -1,400,000 16,028,121 --
Note: On 31 March 2023, the Board of Directors engaged Mr. Feng Qiang and Mr. Guo Huaping as senior management of the Company; on 28 April 2023, the Board of Directors engaged Mr.
Yue Zhanqiu as senior management of the Company. Thus, the beginning shareholding of Mr. Feng Qiang, Mr. Guo Huaping and Mr. Yue Zhanqiu shall be filled in with the number of shares held
on the date of appointment
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BOE Technology Group Co., Ltd. Annual Report 2023
Indicate by tick mark whether any director, supervisor or senior management resigned before the expiry of their office terms during the Reporting Period.
Yes □ No
1. On 1 March 2023, the Board of Directors of the Company acknowledged Mr. Miao Chuanbin’s resignation as Senior VP & Chief Cultural Officer due to a job change. Following his departure,
he will not hold any positions within the Company.
2. On 31 March 2023, the Board of Directors of the Company acknowledged Mr. Xie Zhongdong’s resignation as Senior VP, Chief Audit Officer, and Chief Risk Control Officer due to personal
reasons. Following his departure, he will not hold any positions within the Company.
3. On 12 March 2024, the Board of Directors of the Company accepted written resignations from Mr. Liu Xiaodong, Vice Chairman, and Ms. Sun Yun, Director. Due to his advancing age, Mr.
Liu Xiaodong resigned from his roles as Director, Vice Chairman, and Special Committee member, yet will remain part of the Executive Committee following his resignation. Meanwhile, Ms.
Sun Yun stepped down as Director and Special Committee member but will continue as an Executive Committee member and Executive Vice President following her resignation.
57
BOE Technology Group Co., Ltd. Annual Report 2023
Change of Directors, Supervisors and Senior Management
Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Miao Chuanbin Senior management Dismissed 1 March 2023 Resigned voluntarily
Xie Zhongdong Senior management Dismissed 31 March 2023 Resigned voluntarily
Feng Qiang Senior management Appointed 31 March 2023 Appointed
Guo Huaping Senior management Appointed 31 March 2023 Appointed
Yue Zhanqiu Senior management Appointed 28 April 2023 Appointed
Wu Lishun Director Elected 14 August 2023 Elected
Vice Chairman of the
Pan Jinfeng Resigned 23 January 2024 Resigned voluntarily
Board
Vice Chairman of the
Liu Xiaodong Resigned 12 March 2024 Resigned voluntarily
Board
Sun Yun Director Resigned 12 March 2024 Resigned voluntarily
2. Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and senior
management
Directors:
Mr. Chen Yanshun, Master of Economics, Senior Economist, and Senior Accountant. Joining the Company in 1993, he used to be
Secretary to the 1st Board of Directors of the Company, Secretary to the 2nd Board of Directors and Vice President, Executive Director
of the 3rd Board of Directors and Senior Vice President, Executive Director of the 4th, 5th and 6th Boards of Directors and President,
Vice Chairman of the 7th Board of Directors and President, Vice Chairman of the 8th Board of Directors and Chairman of the Executive
Committee (Chief Executive Officer), and Chairman of the 9th Board of Directors and Chairman of the Executive Committee. Also,
he once was Chairman of the Board for a number of subsidiaries including Beijing BOE Optoelectronics Technology Co., Ltd., Hefei
BOE Optoelectronics Technology Co., Ltd., Chongqing BOE Optoelectronics Technology Co., Ltd., and BOE Smart Technology Co.,
Ltd.
Currently, he serves as Chairman of the 10th Board of Directors and Chairman of the Executive Committee of the Company. He is also
Chairman of the Board for BOE Optoelectronics Holdings Co., Ltd., BOE Optoelectronics Technology Co., Ltd. Meanwhile, he is also
Vice Chairman of China Information Technology Industry Federation (CITIF), Vice Chairman of China Optics & Optoelectronics
Manufactures Association (COEMA), Chairman of China Optics & Optoelectronics Manufactures Association LCB (CODA). He has
been awarded as National Model Worker in 2020, the Economic Figure of the Year by China News Weekly in 2021, and David Sarnoff
Industry Achievement Award in 2024.
Mr. Gao Wenbao, PhD in Microelectronics and Solid State Electronics. He joined the Company in 2003.
He is currently Director of the 10th Board of Directors, President, Vice Chairman of the Executive Committee, in addition to being
Executive Director and Chairman of the Board of Directors of BOE Varitronix Limited, and Chairman of the Board of Beijing
Zhongxiangying Technology Co., Ltd.
Mr. Wu Lishun, Master of Business Administration, graduated from the Joint Program in Business Administration offered by the
University of International Business and Economics and the University of Maryland, USA. Mr. Wu was a Consultant and Manager of
KPMG Huazhen, Senior Manager and Business Director of Beijing Dayue Consulting Company, Deputy Manager of the Planning and
Finance Department, Deputy Manager of the Financing and Planning Department (presiding over the work), and Manager of the
Financing and Planning Department of Beijing Infrastructure Investment Co., Ltd., Deputy General Manager of Beijing Capital Group
Co., Ltd., Member of the Party Committee and Deputy General Manager of Beijing Capital Group Co., Ltd., Member of the Party
58
BOE Technology Group Co., Ltd. Annual Report 2023
Committee and Deputy Director of the State-owned Assets Supervision and Administration Commission of People’s Government of
Beijing Municipality, Deputy Secretary of the Party Committee, Director and General Manager of Beijing State-owned Capital
Operation and Management Company Limited.
He is currently a director of the Tenth Session of the Board of Directors of the Company, Secretary of the Party Committee and
Chairman of the Board of Directors of Beijing State-owned Capital Operation and Management Company Limited, Chairman of the
Board of Directors of First Capital Securities Co., Ltd., and a director of Shoucheng Holdings Limited.
Mr. Ye Feng, BS in Engineering, Engineer. Previously, he served as Deputy Factory Manager of Beijing Jianzhong Machinery Factory,
a Director of the Board of Directors and General Manager of Beijing Qixing Huachuang Electronic Co., Ltd., Vice President of Beijing
Beiguang Electron Group Co., Ltd., Factory Manager of Beijing Dahua Radio Instrument Factory, Chairman of Beijing Dahua Radio
Instrument Company, Ltd., and Director of the 9th Board of Directors of the Company.
He is currently a Director of the 10th Board of Directors, a full-time Director assigned by Beijing Electronic Holding Co., Ltd., a
Director of Beijing Zhaowei Electronics (Group) Co., Ltd., and a Director of NAURA Technology Group.
Mr. Tang Shoulian, professor, holds a master's degree. He used to be Director of Finance Office, Dean of School of Management and
Humanities, Secretary of Party Committee of School of Economics and Management, Executive Dean of School of Economics and
Management, and Standing Committee of Academic Committee and Chairman of Labor Dispute Mediation Committee of Beijing
University of Posts and Telecommunications (BUPT), and Independent Director of the 9th Board of Directors of the Company. He has
served as a member of the Expert Committee on Telecommunications Economy of the Ministry of Industry and Information
Technology, a permanent member of the Chinese Association of Market Development, a standing member of the Information Law
Research Society of the China Law Society, a senior member of the Chinese Society of Technology Economics, a standing member of
the Commerce Statistical Society of China, and a reviewer of the Management Science Department of the National Natural Science
Foundation of China.
He is currently an Independent Director of the 10th Board of Directors of the Company.
Mr. Zhang Xinmin, Doctor of Management, Professor, was formerly the Dean of the International Business School of the University
of International Business and Economics, a member of CPC's Standing Committee and Vice President of the University of International
Business and Economics, and Independent Director of the 9th Board of Directors of the Company.
He is currently an Independent Director of the 10th Board of Directors of the Company, an Independent Director of Minmetals
Development Co., Ltd., an Independent Director of COFCO Capital Holdings Co., Ltd., an Independent Director of China Meheco
Group Co., Ltd., an external Supervisor of Xiamen International Bank Limited, a professor of accounting and doctoral supervisor of
the International Business School at the University of International Business and Economics, a member of the Business Administration
Discipline Review Group of the Academic Degrees Committee of the State Council, Vice President of the China Commercial
Accounting Institute, Vice President of Banking Accounting Society of China, and a recipient 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 President
and Secretary General of the Intellectual Property Law Research Association of the China Law Society, the Vice Chairman of the
China Intellectual Property Research Association, and the Vice President of China Written Works Copyright Society.
Mr. Wang Duoxiang, Doctor of Management, is a researcher and doctoral supervisor at the School of Engineering, Peking University.
59
BOE Technology Group Co., Ltd. Annual Report 2023
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 Government
of 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 of
Engineering of Peking University, Director of the Beijing Institute of Collaborative Innovation, Director of the Beijing-Tianjin-Hebei
National Technology Innovation Centre, and Director of the China Research Centre for Industry-University-Research Integration
Innovation System.
Supervisors:
Ms. Wang Jin, Doctor of Laws, a senior economist. She was the Deputy General Manager of the Legal and Risk Management
Department, the Deputy General Manager of the Legal Department and the Deputy General Manager of the Corporate Development
Department/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 Electronics
Holdings Co., Ltd. She is concurrently the Chairman of the Supervisory Committee of NAURA Technology Group Co., Ltd., 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 & W
Electronics (Group) Co., Ltd., Manager of Finance Department of Beijing Tianlong Co., Ltd., Deputy Chief of Finance Department of
Beijing Electronics Holding Co., Ltd., Vice Dean of Beijing Information Technology College, CFO of Beijing Dahua Radio Instrument
Factory, Deputy Party Secretary, Director and General Manager of Beijing Yiheng Electron Group Co., Ltd., Deputy Director of
Adjustment Guarantee Center of Beijing Electronics Holding Co., Ltd., and Supervisor of the 9th Supervisory Committee of the
Company.
He is currently a Supervisor of the 10th Supervisory Committee of the Company, Chief Controller of Financial Management
Department of Beijing Electronics Holdings Limited, and is also a Director of NAURA Technology Group Co., Ltd. and Beijing
Electric Control Jiuyi Industrial Development Company Limited, Chairman and General Manager of Beijing BOE Investment
Development Company Limited, and a Director of Beijing Capitel Co., Ltd.
Mr. Shi Xiaodong, MBA, a senior economist. He was a personnel specialist at Beijing Panasonic Control Devices Co., Ltd., the
Manager of the Human Resources Department of CITIC Guoan Shihua International Financial Information Co., Ltd., the Management
Consultant of Bosizhilian Management Consultant Co., Ltd., the Manager of the Corporate Management Department, the Manager of
the 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 Deputy
General Manager and Chairman of the Trade Union of Beijing Electric Control Aisikai Technology Co., Ltd.
He is currently a Supervisor of the 10th Supervisory Committee of the Company and the Director of the Operation and Management
Department of Beijing Electronics Holdings Co., Ltd. He is also Director of Beijing ether Electronics Group Co., Ltd., Director of
Beijing Jingdian Import & Export Company Co. Ltd., Director of Beijing Qixing Huadian Technology Group Co., Ltd., Director of
Beijing Zhengdong Electronic Power Group Co., Ltd., and Director of Beijing Industrial Design Research Institute Co., Ltd.
Ms. Xu Jinghe, Master of Science in Management, Certified Management Accountant (USA), with the professional qualification of
the Certified Public Accountant (China).
She currently serves as a Supervisor of the 10th Supervisory Committee of the Company and the Deputy Director of the Investment
and Development Department of Beijing Yizhuang Investment Holding Co., Ltd.
60
BOE Technology Group Co., Ltd. Annual Report 2023
Mr. Yan Jun, bachelor. He once acted as the Deputy GM of Beijing Nissin Electronic Precision Components Co., Ltd., Minister of
Corporate Culture/Party Affairs Department, Chairman of Labor Union in Chongqing BOE Optoelectronics Technology Co., Ltd.,
Deputy Director of General Office of the Group, and Employee Supervisor of the 9th Supervisory Committee of the Company.
Now he acts as the Employee Supervisor of the 10th Supervisory Committee, Deputy Head of Party Mass/Corporate Culture Center in
the Company.
Mr. Xu Yangping, Master of Civil and Commercial Law. He was former Deputy Minister, Minister of the Company’s Legal
Department, and Employee Supervisor of the 7th, 8th and 9th Supervisory Committees of the Company, Director of Erdos BOE Energy
Investment Co., Ltd., and Supervisor of BOE Innovation Investment Co., Ltd.,.
Now he acts as Employee Supervisor of the 10th Supervisory Committee and Counsel of the Company, and Chief of the Group’s Legal
Center, in addition to being Director of Gaochuang (Suzhou) Electronics Co., Ltd, Beijing BOE Energy Technology Co., Ltd., Nanjing
BOE Display Technology Co., Ltd., BEHC Industrial Investment Co., Ltd., Supervisor of Tianjin BOE Innovation Investment
Management Co., Ltd., BOE Smart Technology 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 of
Performance Analysis and Head of the Taxation Center of the Company and Minister of Accounting Department of Beijing BOE
Display Technology Co., Ltd., Director of Beijing Asahi Electronic Materials Co., Ltd., Beijing BOE Energy Technology Co., Ltd.,
Beijing BOE Health Technology Co., Ltd. and Hefei BOE Hospital Co., Ltd., Supervisor of Beijing BOE CHATANI Electronics
Co.,Ltd. and Nanjing BOE Information Technology Co., Ltd., as well as Employee Supervisor of the 9th Supervisory Committee of
the Company.
Now, he acts as the Employee Supervisor of the 10th Supervisory Committee, VCFO, and Head of the Capital Management Center of
the Company, in addition to being Director of Beijing BOE Vacuum Electric Co., Ltd., Director of Beijing BOE Matsushita Color 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., BOE Environmental Energy Technology Co., Ltd. and BOE Innovation Investment
Co., Ltd.
Senior Management:
Mr. Liu Xiaodong, Bachelor’ degree, Engineer, he ever worked in Research Institute of Beijing Information Optics Apparatus. He
successively 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 the
Board of Chongqing BOE Optoelectronics Technology Co., Ltd., Director of TPV Display Technology (China) Limited, Fuzhou BOE
Optoelectronics Technology Co., Ltd., Beijing BOE Display Technology Co., Ltd., and BOE Health Investment Management Co., Ltd.,
Chairman of the Board of Beijing BOE Sensor Technology Co., Ltd., Director of the 7th Board of Directors of the Company, Executive
Vice President and COO of the Company, Director of the 8th Board of Directors, Vice Chairman of the Executive Committee, President
& COO of the Company, as well as Vice Chairman of the 9th Board of Directors, President, Vice Chairman of the Executive Committee,
and Vice Chairman of the 10th Board of Director of the Company.
Now he takes the posts of a member of the Executive Committee of the Company, Chairman of Mianyang BOE Optoelectronics
Technology Co., Ltd., Chongqing BOE Display Technology Co., Ltd., Wuhan BOE Optoelectronics Technology Co., Ltd., Yunnan
Chuangshijie Optoelectronics Technology Co., Ltd., and Fuzhou BOE Display Technology Co., Ltd., Executive Director of Beijing
61
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Development Co., Ltd., Director of Hefei BOE Display Technology Co., Ltd., Chairman of the Board of Beijing
BOE Chuangyuan Technology Co., Ltd., and Chairman of the Board of Chengdu BOE Display Technology Co., Ltd.
Ms. Sun Yun, Master of Business, a Senior Accountant. She successively took the posts of Deputy Chief, Chief of Finance Department
of the Company, as well as Deputy CFO and Chief Auditor of the Company, Director of the 8th Board of Directors of the Company,
Director of the 9th Board of Directors, CFO and Director of the 10th Board of Directors of the Company, Director of Erdos Yuansheng
Optoelectronics Co., Ltd., Beijing BOE Video Technology Co., Ltd., Beijing BOE Multimedia Science and Technology Co., Ltd.,
BOE Health Investment Management Co., Ltd., Beijing BOE Matsushita Color CRT Innovation Co., Ltd. and Supervisor of Beijing
Orient Vacuum Electric Co., Ltd.
Now she is 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 the Board of BOE Innovation Investment
Co., Ltd.
Mr. Feng Qiang, Master of Executive Master of Business Administration, Master of Engineering, and Engineer. Joining the Company
in 1998, he used to be the vice general manager and general manager of the Company’s Science Park Business Headquarters, vice
president of the Company, Chairman of the Board of BOE Regenerative Medical Technologies Co. Ltd., 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 Matsushita Color CRT Co., Ltd., Co-CEO of the Smart Healthcare
Service BG, and Chairman of the Board & CEO of the Smart Medicine and Engineering Business.
Now he is a member of the Executive Committee, executive vice president and Chief Human Resource Officer of the Company,
Chairman of the Board of Beijing BOE Life Technology Co., Ltd., Chairman of the Board of Beijing BOE Land Co., Ltd., Chairman
of the Board of Beijing Yinghe Century Land Co., Ltd., and Chairman of the Board of Beijing BOE Songcai Innovation Co., Ltd.,
Director of Chongqing BOE Smart Technology Co., Ltd., Shenzhen BOE Smart Technology Co., Ltd. and Chengdu BOE Smart
Technology Co., Ltd.
Mr. Wang Xiping, with a Bachelor's degree, was the Manager of Nanjing Hanyu Caixin Technology Co., Ltd. He served as the Head
of the Company's Production Management Centre, the General Manager of Hefei Xinsheng Optoelectronics Technology Co., Ltd. and
the General Manager, Display Business Co-CEO and Chief Procurement Officer of Wuhan BOE Optoelectronics Technology Co., Ltd.
He is currently a member of the Executive Committee and an Executive Vice President of the Company, the Head of the Display
Devices and IoT Innovation Business Centre, the Chairman of BOE Environmental Energy Technology Co., Ltd., and Director of BOE
Innovation Investment Co., Ltd.
Ms. Feng Liqiong, Bachelor Degree and Lawyer of the Company, she has served as Senior Vice President and Minister of Legal
Affairs Department of the Company, and as Secretary of the 5th and 6th Board of Directors.
Now she is member of Executive Committee, Executive Vice President, Chief Counsel, Chief Reform and IT Management Officer 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 Xinjingyuan
Electronic Materials Co., Ltd.and Hefei BOE Optoelectronics Technology Co., Ltd.
He is currently a member of the Executive Committee, Executive Vice President, Chairman of the Board & CEO of the Smart Medicine
and Engineering Business. He was awarded the "National Model Worker" in 2020.
62
BOE Technology Group Co., Ltd. Annual Report 2023
Ms. Yang Xiaoping, with a Master's degree, was the Deputy Director and Director of the Accounting and Finance Department of the
Company, the Centre Director of the Accounting and Taxation Centre, the Center Director of the Budget Center and the VCFO of the
Group.
She is currently a member of the Executive Committee, Executive Vice President, and the Chief Financial Officer of the Company and
the Director of Beijing BOE Optoelectronics Technology Co., Ltd., Director of Chengdu BOE Optoelectronics Technology Co., Ltd.,
Director of Hefei BOE Optoelectronics Technology Co., Ltd., Director of Beijing BOE Display Technology Co., Ltd., Director of
Hefei Xinsheng Optoelectronics Technology Co., Ltd., Director of Chongqing BOE Optoelectronics Technology Co., Ltd., Director of
Fuzhou BOE Optoelectronics Technology Co., Ltd. and Director of Wuhan BOE Optoelectronics Technology Co., Ltd.
Mr. Guo Huaping, holds a master’s degree. He once worked as the vice general manager of Beijing 798 Cultural Creative Industry
Investment Co., Ltd., Deputy Secretary of the CPC Committee of Beijing Jile Electronics Group Co., Ltd., the minister of the CPC
Publicity Department/Corporate Culture Department of Beijing Electronics Holdings Co., Ltd. and general manager of Beijing Jingdian
Import and Export Co., Ltd.
Now, he is the senior vice president, CCO and leader of Labor Union of the Company.
Mr. Yue Zhanqiu, holding a Master’s degree and certified as a Senior Accountant, has served as the Chief of Finance Section and
Chief Accountant of the Power Division of the Company, Finance Manager of Beijing Huamin Smart Card System Manufacturing Co.,
Ltd., CFO of Beijing Sevenstar Science & Technology Co., Ltd., CFO and Board Secretary of Beijing Sevenstar Electronics Co., Ltd.,
CFO, Deputy General Manager, and General Manager of Beijing Oriental Optoelectronics Technology Co., Ltd., as well as VCFO,
Chief Information Officer, and Chief Operating Officer of Beijing BOE Optoelectronics Technology Co., Ltd., VCFO and CIO of the
Company, and COO of BOE Innovation Investment Co., Ltd.
Currently, he serves as Senior Vice President and Chief Audit Officer of the Company, Supervisor of HC Semitek Corporation,
Supervisor of Chengdu BOE Optoelectronics Technology Co., Ltd., Supervisor of Chongqing BOE Display Technology Co., Ltd.,
Supervisor of Hefei BOE Display Technology Co., Ltd., Supervisor of Chengdu BOE Display Technology Co., Ltd., Supervisor of
BOE Healthcare Co., Ltd., Supervisor of Fuzhou BOE Optoelectronics Technology Co., Ltd., and Supervisor of Nanjing BOE Display
Technology Co., Ltd.
Mr. Liu Hongfeng, a master’s degree holder. He once worked as the Deputy Chief of the Planning and Finance Department, the
Deputy Chief and Chief of the Board Secretary’s Office, the Securities Representative, the Secretary to the 7th, 8th and 9th Boards of
Directors of the Company and Supervisor of Beijing Yinghe Century Land Co., Ltd.
Now he is a Vice President and the Secretary to the 10th Board of Directors of the Company, as well as a Director of Beijing Nissin
Electronics Precision Component Co., Ltd. and member vice president of the 3rd Council of China Association for Public Companies.
Offices held concurrently in shareholding entities:
Applicable □ Not applicable
Remuneration
or allowance
Office held in the End of
Name Shareholding entity Start of tenure from the
shareholding entity tenure
shareholding
entity
Secretary of the Party
Beijing State-owned Capital Operation
Wu Lishun Committee and Chairman 5 December 2023 - Yes
and Management Company Limited
of the Board
Ye Feng Beijing Electronics Holdings Co., Ltd. Full-time Director 31 August 2021 - Yes
63
BOE Technology Group Co., Ltd. Annual Report 2023
Dispatched
Wang Jin Beijing Electronics Holdings Co., Ltd. General Counsel 1 February 2021 - Yes
Sun Fuqing Beijing Electronics Holdings Co., Ltd. Finance Minister 24 August 2021 - Yes
Chief of the Operation
Shi Xiaodong Beijing Electronics Holdings Co., Ltd. and Management 14 July 2023 - Yes
Department
Deputy Chief of the
Beijing Yizhuang Investment Holding
Xu Jinghe Investment Development 14 October 2021 - Yes
Co.,Ltd.
Department
Notes to post-
holding in
The documents for holding the posts of shareholders entities haven’t listed the expiry date.
shareholder’s
unit
Offices held concurrently in other entities:
Applicable □ Not applicable
Remuneration
End of or allowance
Name Other entity Office held in the entity Start of tenure
tenure from the
entity
University of International Business Professor, and Doctor
Zhang Xinmin - - Yes
and Economics Advisor
Professor, and Doctor
Guo He Renmin University of China - - Yes
Advisor
Researcher, and Doctor
Wang Duoxiang College of Engineering(COE), PKU - - Yes
Advisor
Notes to post-
holding in other Due to the above personnel’s units were special, their start dates and ending dates of the office terms have not been fixed.
entities
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and senior
management 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 senior
management:
(1) Determining Basis and Decision-making Procedure of Remuneration of Directors, Supervisors and Senior Management
Proposal on Adjustment of Allowance for Directors and Supervisors was reviewed and approved on the 1 st Extraordinary General
Meeting of 2019 held by the Company on 28 June 2019, of which, the allowance for independent directors was adjusted to RMB0.2
million (pre-tax) per year from RMB0.15 million (pre-tax) per year; the allowance for the Company’s executive directors and employee
supervisors as well as directors and supervisors holding posts in shareholder’s unit was cancelled.
(2) During the Reporting Period, the total remuneration received by directors, supervisors and senior managers in the Company
amounted to RMB 54.0365million (pre-tax). Allowance for independent directors is RMB0.2 million (pre-tax) per year in 2023. For
details please referred to the statement below.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
Total pre-tax Any
Incumbent remuneration remuneration
Name Gender Age Office title
/Former received from from related
the Company party
Chen Yanshun Male 58 Chairman of the Board, and Incumbent 520.1 No
64
BOE Technology Group Co., Ltd. Annual Report 2023
Chairman of the Executive
Committee
Director, President, and Vice
Gao Wenbao Male 48 Chairman of the Executive Incumbent 653.71 No
Committee
Wu Lishun Male 48 Director Incumbent 0 -
Ye Feng Male 58 Director Incumbent 0 -
Tang Shoulian Male 71 Independent director Incumbent 20 -
Zhang Xinmin Male 61 Independent director Incumbent 20 -
Guo He Male 61 Independent director Incumbent 20 -
Wang
Male 54 Independent director Incumbent 20 -
Duoxiang
Chairman of the Supervisory
Wang Jin Female 48 Incumbent 0 -
Committee
Sun Fuqing Male 50 Supervisor Incumbent 0 -
Shi Xiaodong Male 49 Supervisor Incumbent 0 -
Xu Jinghe Female 40 Supervisor Incumbent 0 -
Yan Jun Male 52 Employee Supervisor Incumbent 67.8 No
Xu Yangping Male 49 Employee Supervisor Incumbent 153.61 No
Teng Jiao Male 41 Employee Supervisor Incumbent 202.46 No
Vice Chairman of the Board Former
Liu Xiaodong Male 59 Member of the Executive 512.15 No
Incumbent
Committee
Director Former
Member of the Executive
Sun Yun Female 54 441.93 No
Committee, and Executive Vice Incumbent
President
Member of the Executive
Feng Qiang Male 47 Committee, and Executive Vice Incumbent 394.98 No
President
Member of the Executive
Wang Xiping Male 45 Committee, and Executive Vice Incumbent 399.53 No
President
Member of the Executive
Feng Liqiong Female 51 Committee, Executive Vice Incumbent 432.7 No
President, and Lead Counsel
Member of the Executive
Zhang Yu Male 53 Committee, and Executive Vice Incumbent 373.8 No
President
Member of the Executive
Committee, Executive Vice
Yang Xiaoping Female 44 Incumbent 314.91 No
President, and Chief Financial
Officer
Senior Vice President, Chief
Guo Huaping Male 46 Incumbent 176.75 No
Culture Officer
Senior Vice President, Chief Audit
Yue Zhanqiu Male 56 Incumbent 235.05 No
Officer
Liu Hongfeng Male 45 Vice President, and Board Secretary Incumbent 344.93 No
Pan Jinfeng Male 44 Vice Chairman of the Board Former 0 -
Miao Chuanbin Male 50 Senior management Former 58.43 -
Xie Zhongdong Male 53 Senior management Former 40.81 -
Total -- -- -- -- 5,403.65 --
According to the reporting rules, the disclosed compensation figures represent the annual cash remuneration attributed to the current
period based on accrual. Note that for some directors and supervisors, the total remuneration amounts provided are estimates as their
evaluations are still ongoing.
Other notes:
65
BOE Technology Group Co., Ltd. Annual Report 2023
□ Applicable Not applicable
VI Performance of Duty by Directors in the Reporting Period
1. Board Meeting Convened during the Reporting Period
Meeting Date of the meeting Disclosure date Meeting resolutions
The Proposal on the Implementation of the Employee Co-
The 11th Meeting investment Plan for the 3D Light Field Project by
of the 10th Board 3 February 2023 - Subsidiaries and the Proposal on the Implementation of
of Directors the Employee Co-investment Plan for the Smart Window
Project by Subsidiaries were deliberated and approved.
The 12th Meeting The Proposal on the Company’s Business Objectives,
Remuneration, and Evaluation of the Chairman of the
of the 10th Board 9 March 2023 -
Executive Committee for 2023 was deliberated and
of Directors approved.
The following reports and proposals were deliberated and
approved, i.e., Report on Business Operations for 2022,
Report on the Work of the Board of Directors for 2022, Full
Annual Report and Summary for 2022, Financial Final
Report for 2022 and Business Plan for 2023, Proposal for
the Distribution of Profits for 2022, Special Statement on
Non-operating Funds Utilization and Other Related
Financial Transactions in 2022, Proposal on Expected
Routine Connected Transactions for 2023, Special Report
on Deposit and Usage of Raised Fund in 2022, Proposal
on the Development of Structured Deposits and Other
Principal-protected Business, Proposal on Borrowing and
The 13th Meeting Credit Line, Proposal on the Intended Appointment of an
Audit Agency for 2023, 2022 Annual Internal Control
of the 10th Board 31 March 2023 4 April 2023
Evaluation Report, Social Responsibility Report for 2022,
of Directors Proposal on the Achievement of Exercise Conditions of the
First Exercise Schedule for the Stock Option Granted by
the Stock Option Incentive Scheme of 2020 and the
Fulfillment of the Exercise Conditions for the Stock Option
Granted for the First Time, Proposal on the Repurchase
and Write-off of Certain Restricted Shares, Proposal for
the Write-off of Certain Stock Options, Proposal on the
Appointment of Senior Management of the Company and
Adjustment of the Composition of the Executive Committee
of the Company, Proposal for Authorizing the Chairman of
the Board to Exercise his/her Powers, and Proposal for
Holding the 2022 Annual General Meeting of
Shareholders.
The 14th Meeting
The Proposal on Investment and Construction of BOE’s
of the 10th Board 3 April 2023 -
High-end Module Project was deliberated and approved.
of Directors
The 15th Meeting The Proposal on the First Quarter Report for 2023 and the
of the 10th Board 28 April 2023 29 April 2023 Proposal on the Appointment of Senior Managers of the
of Directors Company were deliberated and approved.
The 16th Meeting The Proposal on the Proposed Participation in the
Investment in Beijing Electro-Control Digital Intelligence
of the 10th Board 30 June 2023 -
Technology Limited Liability Company and Connected
of Directors Transactions was deliberated and approved.
The 17th Meeting
24 July 2023 25 July 2023 The Proposal on the Election of Non-Independent
of the 10th Board
66
BOE Technology Group Co., Ltd. Annual Report 2023
of Directors Directors for the Tenth Session of the Board of Directors
of the Company, Proposal on the Cancellation of Part of
the Treasury Shares in the Company’s Special Securities
Account for Repurchase, and Proposal on Convening a
General Meeting of Shareholders were deliberated and
approved.
The 18th Meeting The Proposal on the Remuneration and Appraisal of the
Chairman of the Executive Committee in 2022 and the
of the 10th Board 7 August 2023 -
Performance-Based Remuneration for the Term of 2020-
of Directors 2022 was deliberated and approved.
The Proposal for Deliberation on the Full Text and
Summary of the Semi-Annual Report for 2023, the
Proposal for Deliberation on the Special Report on the
Deposit and Actual Use of Raised Funds for the Semi-
The 19th Meeting Annual Period of 2023, Proposal for Deliberation on the
Summary Statement of Non-operating Funds Utilization
of the 10th Board 25 August 2023 29 August 2023
and Other Related Financial Transactions in the Semi-
of Directors annual Period of 2023, Proposal on Adjustment of
Exercise Price of Stock Options and Repurchase Price of
Restricted Shares, Proposal on Proposed Investment and
Construction of BOE’s Vietnam Project were deliberated
and approved.
The 20th Meeting
The Proposal on the Signing of the Technology License
of the 10th Board 9 October 2023 -
Agreement was deliberated and approved.
of Directors
The Proposal on Deliberation on the Third Quarter Report
of 2023, Proposal on Changes to Certain Fundraising
Project of the 2021 Non-public Offering, Proposal on
Election of Members of the Special Committee of the
Board of Directors, Proposal for the Repurchase and
The 21st Meeting Write-off of Certain Restricted Shares, Proposal for the
of the 10th Board 30 October 2023 31 October 2023 Write-off of Certain Stock Options, Proposal on
of Directors Subsidiary’s Proposed Participation in the Establishment
of the Beijing-Tianjin Co-Development (Beijing) Equity
Investment Fund Partnership (Limited Partnership) and
Connected Transactions and Proposal on Convening a
General Meeting of Shareholders were deliberated and
approved.
The 22nd Meeting The Proposal on the Repurchase of Subsidiary’s
of the 10th Board 13 November 2023 - Corporate Land in Suzhou Industrial Park was deliberated
of Directors and approved.
The Proposal on the Investment for the Development of the
Project of the Production Lines of the 8.6th Generation
The 23rd Meeting Semiconductor Display Devices of BOE, Proposal on
of the 10th Board 28 November 2023 29 November 2023 Changing the Purpose of the Repurchased Shares and
of Directors Cancellation of the Same and Proposal on Convening a
General Meeting of Shareholders were deliberated and
approved.
The 24th Meeting The Proposal on the Company’s Business Objectives,
Remuneration and Appraisal of the Chairman of the
of the 10th Board 22 December 2023 -
Executive Committee in 2023 was deliberated and
of Directors approved.
The 25th Meeting The Proposal on the Fulfillment of the Exercise Conditions
of the 10th Board 26 December 2023 27 December 2023 of the First Exercise Period of Stock Options Reserved for
of Directors Grant Under the 2020 Stock Option and Restricted Stock
Incentive Plan and the Proposal on the Closure of Fund-
67
BOE Technology Group Co., Ltd. Annual Report 2023
Raising Projects and Permanent Replenishment of
Liquidity with the Savings of Fund-Raising Funds were
deliberated and approved.
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
The director
Total number Board
Board Board failed to
of board Board meetings
meetings meetings the attend two General
meetings the meetings attended by
Director attended director consecutive meetings
director was attended on way of
through a failed to board attended
eligible to site telecommuni
proxy attend meetings
attend cation
(yes/no)
Chen
15 1 14 0 0 No 3
Yanshun
Gao Wenbao 15 1 14 0 0 No 4
Wu Lishun 7 0 7 0 0 No 0
Ye Feng 15 1 14 0 0 No 4
Tang
15 2 13 0 0 No 4
Shoulian
Zhang
15 1 14 0 0 No 4
Xinmin
Guo He 15 2 13 0 0 No 2
Wang
15 2 13 0 0 No 2
Duoxiang
Pan Jinfeng 15 0 15 0 0 No 0
Liu
15 2 13 0 0 No 3
Xiaodong
Sun Yun 15 2 13 0 0 No 3
Why any independent director failed to attend two consecutive board meetings:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.
□ Yes No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.
Yes □ No
Suggestions from directors adopted or not adopted by the Company
The Board of Directors of the Company strictly obeyed relevant laws and regulations as well as the rules and regulations of the
Company to fulfill the responsibilities seriously, in order to guarantee the standardization and effectiveness of BOE's governance
structure. The Company's Board of Directors has a reasonable structure and a moderate number of people. All of them are equipped
with good professional background, and necessary knowledge, skills and quality to fulfill their responsibilities. They learned about and
kept a constant focus on BOE’s production and operation, financial status, and influence and risks of significant events. They also took
the initiative to search for information needed in their decision-making so as to ensure efficient operation and scientific decision-
making of the Board of Directors. The executive directors of the Company are responsible for the operations management of the
68
BOE Technology Group Co., Ltd. Annual Report 2023
Company. They understand the business and operational status of the Company, and with rich management experience, they can make
decisions efficiently. Non-executive directors are shareholder directors. As the communication bridge between shareholders and the
management of the Company, they can combine the suggestions of shareholders with long-term interests of the Company, and
participate in the decision-making process of significant events of the Company to protect the interests of shareholders. Independent
directors are experts and scholars in the fields of technology, finance, law, and etc. They can express their opinions and views according
to their expertise and advantages. During the Reporting Period, in accordance with Company Law, Securities Law, Measures for
Administration of Independent Directors of Listed Companies, Stock Listing Rules, Articles of Association, Rules of Procedure for the
Board of Directors and Independent Director Policy, directors of the Company paid special attention to the standardized operation of
the Company, performed their duties diligently, issued much precious professional advice in terms of the perfection of policies and
routine operating decision-making, etc., as well as played their due roles in perfecting the supervisory mechanism of the Company,
protecting the legal right of the Company and the whole shareholders.
VII Performance of Duty by Specialized Committees under the Board in the Reporting Period
Other
Number informat Details
Important
of ion about
opinions
meeting about issues
Committee Members Convened date Content and
s the with
suggestion
convene perform objections
s raised
d ance of (if any)
duty
No
19 January 2023 - N/A
objection
No
27 February 2023 - N/A
objection
No
21 March 2023 - N/A
objection
No
23 March 2023 - N/A
objection
No
18 April 2023 - N/A
objection
No
20 June 2023 - N/A
objection
Director: Mr.
The proposals to be No
Chen 12 July 2023 - N/A
submitted to the Board objection
Strategy Yanshun;
of Directors were No
Committee Members: 28 July 2023 - N/A
deliberated and the objection
under the Mr. Liu 16
Company’s medium- No
10th Board of Xiaodong, 15 August 2023 - N/A
and long-term objection
Directors Ms. Sun Yun,
strategic plans were No
Mr. Gao 21 September 2023 - N/A
approved. objection
Wenbao
No
19 October 2023 - N/A
objection
No
2 November 2023 - N/A
objection
No
17 November 2023 - N/A
objection
No
28 November 2023 - N/A
objection
No
12 December 2023 - N/A
objection
No
15 December 2023 - N/A
objection
69
BOE Technology Group Co., Ltd. Annual Report 2023
Financial and
accounting statements
prepared by the
Company, the Report
on the Audit Work of
CPAs for Annual Audit
and other relevant
No
6 February 2023 reports, and the - N/A
Summary of Risk objection
Management and
Audit Work for 2022
were reviewed.
Meanwhile, the 2023
Audit Plan was
deliberated.
The 2022 Financial
and Accounting
Report, 2022 Internal
Control Self-
Evaluation Report,
Proposal on the
Convener No
21 March 2023 Intended Appointment - N/A
(Director): of an Audit Agency for objection
Mr. Zhang 2023, and the Special
Risk Control Report on Deposit and
Xinmin;
and Audit Use of the Raised
Members:
Committee Funds of 2022 were
Mr. Tang 5 deliberated.
under the
Shoulian, Mr.
10th Board of
Guo He, Mr.
Directors The Proposal on
Wang
Deliberation on the
Duoxiang, No
18 April 2023 First Quarter Report - N/A
Mr. Ye Feng of 2023 was objection
deliberated.
The Proposal for
Deliberation on the
Full Text and
Summary of the Semi-
Annual Report for
2023 and the Proposal
No
15 August 2023 for Deliberation on - N/A
the Special Report on objection
the Deposit and Actual
Use of Raised Funds
for the Semi-Annual
Period of 2023 were
deliberated.
The Proposal on
Deliberation on the
No
18 October 2023 Third Quarter Report - N/A
of 2023 was objection
deliberated.
Nomination Convener The Proposal on the
& (Director): Company’s Business
Remuneratio Mr. Guo He; Objectives, No
8 24 February 2023 Remuneration and - N/A
n& Members: objection
Appraisal Mr. Tang Appraisal of the
Chairman of the
Committee Shoulian, Mr. Executive Committee
70
BOE Technology Group Co., Ltd. Annual Report 2023
under the Zhang in 2023 was
10th Board of Xinmin, Mr. deliberated.
Directors Wang
Duoxiang The Proposal on the
Achievement of
Exercise Conditions of
the First Exercise
Schedule for the Stock
Option Granted by the
Stock Option Incentive
Scheme of 2020 and
the Fulfillment of the
Exercise Conditions
for the Stock Option
Granted for the First
Time, Proposal on the
Repurchase and No
21 March 2023 - N/A
Write-off of Certain objection
Restricted Shares,
Proposal for the
Write-off of Certain
Stock Options, and
Proposal on the
Appointment of Senior
Management of the
Company and
Adjustment of the
Composition of the
Executive Committee
of the Company were
deliberated.
The Proposal on the
Appointment of Senior
No
18 April 2023 Managers of the - N/A
Company was objection
deliberated.
The Proposal on
Termination of the
Function of Beijing
Intelligent Technology
Development
Company Limited as No
8 June 2023 - N/A
the Equity Incentive objection
Platform for the
Company’s
Entrepreneurial
Backbone was
deliberated.
The Proposal on the
Election of Non-
Independent Directors
for the Tenth Session No
7 July 2023 - N/A
of the Board of objection
Directors of the
Company was
deliberated.
The Proposal on the
Remuneration and No
27 July 2023 - N/A
Appraisal of the objection
Chairman of the
71
BOE Technology Group Co., Ltd. Annual Report 2023
Executive Committee
in 2022 and the
Performance-Based
Remuneration for the
Term of 2020-2022
was deliberated.
The Proposal on
Adjustment of
Exercise Price of
No
15 August 2023 Stock Options and - N/A
Repurchase Price of objection
Restricted Shares was
deliberated.
The Proposal on the
Repurchase and
Write-off of Certain
Restricted Shares and No
18 October 2023 - N/A
the Proposal for the objection
Write-off of Certain
Stock Options were
deliberated.
The Proposal on the
Fulfillment of the
Exercise Conditions of
the First Exercise
Period of Stock
Options Reserved for
Grant Under the 2020
Convener Stock Option and
(Director): Restricted Stock
Nomination No
Mr. Guo He; 12 December 2023 Incentive Plan and the - N/A
& Proposal on the objection
Members:
Remuneratio Company’s Business
Mr. Wu Objectives,
n&
Lishun, Mr. Remuneration, and
Appraisal 2
Tang Evaluation of the
Committee
Shoulian, Mr. Chairman of the
under the Executive Committee
Zhang
10th Board of for 2023 were
Xinmin, Mr.
Directors deliberated.
Wang
Duoxiang
The Proposal on
Waiver of Exercise of
the First Exercise
No
20 December 2023 Period of Stock - N/A
Options Granted for objection
the First Time was
deliberated.
VIII Performance of Duty by the Supervisory Committee
Indicate 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.
72
BOE Technology Group Co., Ltd. Annual Report 2023
IX Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent
2,592
at the period-end
Number of in-service employees of major subsidiaries at the
57,237
period-end
Total number of in-service employees 90,563
Total number of paid employees in the Reporting Period 90,563
Number of retirees to whom the Company as the parent or its
19
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 56,851
Sales 2,858
Technical 27,086
Financial 814
Administrative 261
Manager 2,049
Other 644
Total 90,563
Educational backgrounds
Educational background Employees
Doctor 389
Master 9,352
Bachelor 22,994
College 26,917
Technical secondary school 11,103
Other 19,808
Total 90,563
2. Employee Remuneration Policy
The Company has established the remuneration system based on the position, ability and business performance, paid attention to the
external competitive compensation and internal fairness, strengthening the control of the group as well as considering the difference
among all business and subsidiaries.
3. Employee Training Plans
As a professional organization for talent training, BOE University (BOEU) conveys the Group's strategic requirements to employees,
as well as facilitates the implementation of such requirements, through education and training, in order to promote the construction of
BOE's talent training system. Meanwhile, BOEU continues to promote talent cultivation in terms of mindset renewal, cognitive
development, and ability improvement, so as to promote talent cultivation and intellectual capital appreciation, export cultural value
and influence, facilitate the achievement of strategic goals, and play a positive role in value promotion, requirement implementation
and talent cultivation.
In 2023, BOEU prioritized its three main values—cultivation & empowerment, intellectual capital buildup, and innovation &
optimization—while focusing on its “efficiency-centric, synergy-driven, internally-strengthening, and refinement-oriented” approach.
It pushed forward its innovation and transformation strategy, expedited the development of a digital learning model, and empowered
key talents to enhance the abilities of cadres and staff to tackle challenges. Throughout the year, BOEU delivered 330,000 hours of
73
BOE Technology Group Co., Ltd. Annual Report 2023
training and engaged over 40,000 trainers to cater to diverse skill-enhancement needs for leaders, managers, professionals, and
industrialists, offering rich, varied training formats and expertly curated courses.
4. Labor Outsourcing
□Applicable Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy, especially the cash dividend policy, was formulated, executed or revised in the Reporting Period:
□Applicable Not applicable
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts that the
Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders are
positive.
□Applicable Not applicable
Final dividend plan for the Reporting Period
Applicable □ Not applicable
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 0.3
Total shares as the basis for the profit distribution proposal 37,652,529,195
(share)
Cash dividends (RMB) (tax inclusive) 1,129,575,875.85
Cash dividends in other forms (such as share repurchase)
0.00
(RMB)
Total cash dividends (including those in other forms) (RMB) 1,129,575,875.85
Attributable profit (RMB) 7,186,134,196.00
Total cash dividends (including those in other forms) as % of
100%
total profit distribution (%)
Cash dividend policy adopted
If the Company is in a growth stage and has any plan for significant expenditure, in profit distribution, the proportion of cash
dividends shall be 20% or above.
Details about the proposal for profit distribution and converting capital reserve into share capital
Based on the total shares of 37,652,529,195, the Company planned to distribute, with the undistributed profit, a cash dividend of
RMB0.3 (tax inclusive) per 10 shares to all its shareholders. And no bonus share was granted, nor was any capital reserve converted
into share capital. If the total share capital of the Company changes due to factors such as the conversion of convertible bonds to
shares, share repurchases, the exercise of rights regarding equity incentives, and the listing of increased shares after refinancing
before the implementation of the distribution scheme, the adjustment will be conducted according to the principle of "the distribution
amount will be adjusted with a fixed distribution ratio". The specific distributed amount shall be subject to the actual distributed
amount. The said proposal is in compliance with the Company’s Articles of Association and relevant approval procedure, which
fully protects the legal rights and interests of the minority investors.
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
Applicable □ Not applicable
74
BOE Technology Group Co., Ltd. Annual Report 2023
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 August
2020 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 the
Restricted Stock Incentive Scheme. Following the approval of the Proposal on the First Grant of Stock Options and Restricted Shares
to Incentive Objects at the 20th Meeting of the 9th Board of Directors and the 8th Meeting of the 9th Supervisory Committee, the
Company disclosed the Announcement on Completion of Registration of the First Grant of the 2020 Stock Option and Restricted Stock
Incentive Scheme (Announcement No. 2020-086) on 30 December 2020. Following the approval of the Proposal on the Awarding of
Reserved Stock Options to Incentive Objects at the 31st Meeting of the 9th Board of Directors and the 13th Meeting of the 9th
Supervisory Committee, the Company disclosed the Announcement on Completion of Registration of the Reserved and Granted Stock
Option of the 2020 Stock Option and Restricted Stock Incentive Scheme (Announcement No.: 2021-084) on 23 October 2021.
The Company disclosed the Announcement on the Achievement of Lifting the Restriction Conditions in the First Lifting Restriction
Period for Restricted Stocks Granted by the 2020 Stock Option and Restricted Stock Incentive Scheme and on the Satisfaction of the
Exercise Conditions of the First Exercise Schedule of the First Granted Stock Option (Announcement No.: 2023-020) on 4 April 2023.
The lifting of the restriction conditions in the first lifting restriction period for restricted stocks granted by the 2020 Stock Option and
Restricted Stock Incentive Scheme of the Company has been achieved, and the first exercise schedule of the first granted stock option
has satisfied the exercise conditions. A total of 746 awardees met the conditions for the lifting of the restrictions, resulting in a total of
102,260,780 shares of restricted stock that could be lifted. A total of 1,820 awardees were eligible for stock option exercise, resulting
in a total of 183,779,741 shares of stock options available for exercise. The Company disclosed the Announcement on the Repurchase
and Write-off of Certain Restricted Stocks (Announcement No.: 2023-021) and the Announcement on the Write-off of Certain Stock
Options (Announcement No.: 2023-022) on 4 April 2023, in which the Company intends to repurchase and cancel 10,298,610 restricted
shares and 16,801,747 shares of stock option that have been granted to incentive objects but have not been exercised by them since
some incentive objects resigned, died, gave up voluntarily, and failed to meet the performance appraisal goals for personal reasons.
Moreover, the above-mentioned matters regarding the repurchase and cancelation of restricted stocks were deliberated and approved
in the Annual General Meeting of Shareholders of 2022 held on 5 May 2023. The Company disclosed the Reminder Announcement on
Release and Circulation of Restricted Shares Granted under the 2020 Stock Option and Restricted Stock Incentive Scheme in the First
Release Period (Announcement No.: 2023-026) on 7 April 2023. The total number of incentive targets who meet the conditions for
releasing the restricted shares is 746, and the number of restricted shares that can be released is 102,260,780 shares, accounting for
0.2677% of the total share capital of the Company at present. The listing date for the lifted restricted stocks is 11 April 2023. The
Company disclosed the Announcement on Adjustment of the Exercise Price of the Stock Option and the Restricted Share Repurchase
Price in the 2020 Stock Option and Restricted Stock Incentive Scheme of the Company (Announcement No.: 2023-045) on 29 August
2023. Since the equity distribution of the Company for 2022 has been completed, the restricted stock repurchase price involved in this
incentive scheme is adjusted from RMB2.41/share to RMB2.349/share, the exercise price of the first grant of the stock option is
adjusted from RMB5.12/share to RMB5.059/share, and the exercise price of the reserved and granted stock option is adjusted from
RMB5.62/share to RMB5.559/share. The Company disclosed the Announcement on the Repurchase and Write-off of Certain Restricted
Shares (Announcement No. 2023-056) and the Announcement on the Write-off of Certain Stock Options (Announcement No. 2023-
057) on 31 October 2023, in which the Company intends to repurchase and cancel 5,349,564 shares of restricted shares and cancel a
total of 13,771,890 shares of stock options in this incentive scheme that have been awarded to incentive objects but have not been
exercised by them since some incentive objects left their jobs, died, retired or resigned for personal reasons. Moreover, the above-
mentioned matters regarding the repurchase and write-off of restricted shared were deliberated and approved in the Second
Extraordinary General Meeting of Shareholders of 2023 held on 16 November 2023. The Company disclosed the Announcement on
the Achievement of the Exercise Conditions for the First Exercise Period of the Stock Options Reserved for Grant under the 2020 Stock
75
BOE Technology Group Co., Ltd. Annual Report 2023
Option and Restricted Stock Incentive Plan (Announcement No. 2023-074) on 27 December 2023, and the conditions for the exercise
of the first exercise period of the stock options reserved for grant under the 2020 Stock Option and Restricted Stock Incentive Plan of
the Company were met, and a total of 93 incentive recipients who met the conditions for the exercise of options were eligible to exercise
the options this time. The total number of incentive recipients meeting the conditions for the exercise of options is 93, and the number
of stock options exercisable is 9,468,320. At the Twenty-eighth Meeting of the Tenth Session of the Board of Directors and the Ninth
Meeting of the Tenth Session of the Board of Supervisors of the Company, the Proposal on the Achievement of the Conditions for
Release of Restricted Shares during the Second Release Period of the Restricted Shares Granted under the 2020 Stock Option and
Restricted Share Incentive Plan and the Meeting of the Second Exercise Period of the First Granted Stock Options Fulfillment of the
Conditions for the Exercise of the Options, the Proposal on the Repurchase and Write-off of Certain Restricted Shares and the Proposal
for the Write-off of Certain Stock Options were deliberated and approved. The relevant announcements were disclosed on the website
of cninfo.com.cn on 2 April 2024.
76
BOE Technology Group Co., Ltd. Annual Report 2023
Equity incentives for directors and senior management in the Reporting Period:
Applicable □ Not applicable
Unit: share
Exercise Number
Shares
price of Market Number of
Share Share feasible Shares Share Number of
exercised price at of restricted The grant
options options to exercise options restricted Number of
shares the released shares price of
held at granted exercise d during held at shares held restricted
Name Office title during the period- shares for newly restricted
the in the during the the at the shares held at
Reporting end the granted shares
period- Reportin the Reportin period- period- the period-end
Period (RMB/s Reporting during the (RMB/share)
begin g Period Reportin g Period end begin
(RMB/sha hare) Period Reporting
g Period
re) Period
Chairman of the Board,
Chen
Chief of Executive 0 0 0 0 0 0 3.90 2,000,000 680,000 0 0 1,320,000
Yanshun
Committee
Director, President, Vice
Gao
Chairman of Executive 0 0 0 0 0 0 3.90 1,500,000 510,000 0 0 990,000
Wenbao
Committee
Liu
Member of Executive
Xiaodon 0 0 0 0 0 0 3.90 1,800,000 612,000 0 0 1,188,000
Committee
g
Member of Executive
Sun Yun Committee, Executive vice 0 0 0 0 0 0 3.90 1,500,000 510,000 0 0 990,000
president
Member of Executive
Feng
Committee, Executive vice 0 0 0 0 0 0 3.90 750,000 255,000 0 0 495,000
Qiang
president
Member of Executive
Wang
Committee, Executive vice 0 0 0 0 0 0 3.90 750,000 255,000 0 0 495,000
Xiping
president
Member of Executive
Feng
Committee, Executive vice 0 0 0 0 0 0 3.90 1,000,000 340,000 0 0 660,000
Liqiong president, lead counsel
Member of Executive
Zhang
Committee, Executive vice 0 0 0 0 0 0 3.90 634,000 215,560 0 0 418,440
Yu
president
Yang Member of Executive
Xiaopin Committee, Executive vice 0 0 0 0 0 0 3.90 634,000 215,560 0 0 418,440
g president, CFO
Guo Senior vice president, Chief 0 0 0 0 0 0 3.90 0 0 0 0 0
77
BOE Technology Group Co., Ltd. Annual Report 2023
Huaping Culture Officer
Yue Senior vice president, Chief
0 0 0 0 0 0 3.90 418,440 0 0 0 418,440
Zhanqiu Audit Officer
Liu
Vice president, Secretary of
Hongfen 0 0 0 0 0 0 3.90 750,000 255,000 0 0 495,000
the Board
g
Miao
Chuanbi Former senior management 0 0 0 0 0 0 3.90 650,000 0 0 0 0
n
Xie
Zhongd Former senior management 0 0 0 0 0 0 3.90 750,000 0 0 0 0
ong
Total -- 0 0 0 0 -- 0 -- 13,136,440 3,848,120 0 -- 7,888,320
1. On 31 March 2023, the Board of Directors engaged Mr. Feng Qiang and Mr. Guo Huaping as senior management of the Company; on 28 April 2023, the Board
of Directors engaged Mr. Yue Zhanqiu as senior management of the Company. Thus, the beginning shareholding of Mr. Feng Qiang, Mr. Guo Huaping and Mr.
Yue Zhanqiu shall be filled in with the number of shares held on the date of appointment
2. The lifting of the restriction conditions in the first lifting restriction period for restricted stocks granted by the 2020 Stock Option and Restricted Stock Incentive
Scheme of the Company has been achieved. The listing date is 11 April 2023. The above lifting of the restrictions resulted in a reduction in the number of restricted
shares granted to directors and senior management at the end of the Reporting Period. After the lifting of certain restricted shares held by the Company’s directors
and senior management in this incentive scheme, the locking and trading of shares held by them shall comply with the Company Law, the Securities Law, the
Note (if any)
Management Rules for Shares Held by Directors, Supervisors, and Senior Management of Listed Companies and Changes in Such Shares (2022 Revision), the
Guidelines No. 1 of the Shenzhen Stock Exchange on the Self-regulation of Listed Companies -- Standardised Operation of the Companies Listed on the
Mainboard, the Guidelines No. 10 of the Shenzhen Stock Exchange on the Self-regulation of Listed Companies -- Management of Share Changes, and other the
relevant laws and regulations.
3. Mr. Miao Chuanbin and Mr. Xie Zhongdong resigned from the senior management of the Company in March 2023 and will no longer hold any position in the
Company after their resignation. On 25 May 2023, the Company repurchased and cancelled the restricted shares held by Mr. Miao Chuanbin and Mr. Xie
Zhongdong which had been granted but not lifted in accordance with the provisions of the 2020 Stock Option and Restricted Stock Incentive Scheme (Draft).
Appraisal of and Incentive for Senior Management
According to the Articles of Association, Management System for Professional Managers and the Performance Management System, members of the senior management of the Company are
appointed by the Board of Directors and sign the Appointment Contract and the Annual Target Responsibility Paper. The annual performance assessment and appointment period assessment will
be 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 period
assessment 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 and
Restricted 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 relevant
conditions.
78
BOE Technology Group Co., Ltd. Annual Report 2023
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 the
Company’s strategic requirements. Specifically, the internal control system was optimized, so as to guarantee the implementation of innovation and reform and promote the compliance and
efficient development of business.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□Yes No
79
BOE Technology Group Co., Ltd. Annual Report 2023
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
Follow-
Counterm
Settlement up
Subsidiary Integration plan Integration progress Problem easures
progress settleme
taken
nt plan
The Board of Directors
BOE Technology Group Co.,
of HC Semitek
Ltd., while preserving the
Corporation has
independence of listed
completed its renewal,
company HC Semitek
and the directors
Corporation across assets,
HC SemiTek nominated by BOE
personnel, finance, N/A N/A N/A N/A
Corporation Technology Group Co.,
organization, and operations,
Ltd. will give their
will collaborate with it to
opinions and
jointly propel the execution of
suggestions to its
the “Empower IoT with
management through the
Display” strategy.
Board of Directors.
The integration was
Resources were integrated to completed on 21 March
complete the capital increase in 2023.
Beijing United Ultra High- Beijing United Ultra
Beijing United Definition Video Technology High-Definition Video
Ultra High- Collaboration Center Co., Ltd. Technology
Definition and integration was completed Collaboration Center
Video by the end of March 2023. Co., Ltd. is mainly
N/A N/A N/A N/A
Technology Beijing United Ultra High- engaged in visual arts,
Collaboration Definition Video Technology smart government, and
Center Co., Collaboration Center Co., Ltd. smart transportation
Ltd. is a key component of BOE businesses, accelerating
Group’s “Empower IoT with the implementation of
Display” transformation BOE Group’s
strategy. “Empower IoT with
Display” strategy.
XIV Internal Control Evaluation Report or Independent Auditor’s Report on Internal
Control
1. Internal Control Evaluation Report
Disclosure date of the internal control
2 April 2024
self-evaluation report
Index to the disclosed internal control On 2 April 2024, the Company disclosed 2023 Internal Control Appraisal Report, refer to
self-evaluation report www.cninfo.com.cn for details.
Evaluated entities’ combined assets
99.62%
as % of consolidated total assets
Evaluated entities’ combined
operating revenue as % of 99.44%
consolidated operating revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over Weaknesses in internal control not related to
Type
financial reporting financial reporting
The nature standards of internal control Evaluation standards for internal defects not
deficiency evaluation over financial related to financial reporting specified by the
Nature standard reporting determined by the Company are as Company are as below:
follows: Material weakness:
Material weakness: In case of the following (1) The business scope of the Company
80
BOE Technology Group Co., Ltd. Annual Report 2023
situations, it will be deemed as that major violates national laws and regulations
defects (including but not limited to the seriously;
following situations) may occur: (2) The decision-making procedure is not
(1) Directors, supervisors and Senior scientific, major decision errors are released,
Management make the malpractices; the development strategies of the Company
(2) The enterprise corrects the released are deviated from severely and major property
financial statements; losses are caused for the Company;
(3) The certified public accountant finds that (3) Safety and environmental accidents occur,
there is a material misstatement in the current resulting in major negative effects on the
financial report, but the internal control fails Company;
to find the misstatement in the process of (4) A lot of senior management personnel and
operation; key technicians leave the Company;
(4) Supervision of the risk control and audit (5) Important business lacks system control or
committee and the internal audit organization the system is failure;
for internal control is ineffective. Serious (6) Material weaknesses or serious
weakness refers to one or combination of weaknesses are not corrected.
several control items, and its severity and Serious weakness refers to one or
economic consequence are lower than those combination of several control items, and its
of the material weaknesses but may still severity and economic consequence are lower
affect the real and accurate objective of the than those of the material weaknesses but may
financial report. still affect the enterprise to deviate from the
The common weakness refers to other control goal.
internal control weaknesses except for The common weakness refers to other internal
material weaknesses and serious weaknesses. control defects except for material
weaknesses and Serious weakness.
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 quantitative standards for internal control
the Group (operating revenue) defects not related to financial reporting
Serious weakness: 0.5‰*total amount of determined by the Company are consistent
Quantitative standard
assets of the Group (operating revenue)≤ the with those over the financial reporting. See
amount reported incorrectly<1‰*total the left side for details.
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)
Number of material weaknesses in
internal control over financial 0
reporting
Number of material weaknesses in
internal control not related to financial 0
reporting
Number of serious weaknesses in
internal control over financial 0
reporting
Number of serious weaknesses in
internal control not related to financial 0
reporting
2. Independent Auditor’s Report on Internal Control
Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We believe that the Company and important subsidiaries make valid internal control on financial report in all significant aspects on
31 December 2023 according to the Basic Rules on Enterprise Internal Control and other relevant stipulations.
Independent auditor’s report on internal control disclosed or
Disclosed
not
Disclosure date 2 April 2024
Index to such report disclosed The Company disclosed the Audit Report on Internal Control on
81
BOE Technology Group Co., Ltd. Annual Report 2023
2 April 2024, for details, please refer to
http://www.cninfo.com.cn
Type of the auditor’s opinion Standard unqualified opinion
Material weaknesses in internal control not related to financial
No
reporting
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 □ No
XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
Not applicable
82
BOE Technology Group Co., Ltd. Annual Report 2023
Part V Environmental and Social Responsibility
I 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 □ No
Policies and industry standards pertaining to environmental protection
With 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 Protection Law 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 Pollution by 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 and ISO 50001.
Environmental protection administrative license
Corresponding environmental impact assessments have been conducted for all construction projects under the control of the Company
in conformity with applicable national and local laws and regulations, the corresponding environmental impact assessment approval
and administrative licenses including the emission permit have also been obtained.
The regulations for industrial emissions and the particular requirements for controlling pollutant emissions which are associated with
production and operational activities.
Type Name Numb Discharg
of of Way Distribut Approv Excess
er of Discharge e Total
Name of of ion of ed total ive
major major discha concentration/int standards discha
polluter discha discharg dischar dischar
polluta polluta rge ensity impleme rge
rge e outlets ge ge
nts nts outlets nted
COD Standa 32.90mg/L 500mg/L 91.33t 828.42t
rd
emissi
on
Beijing
after
BOE Waste Northwe
Ammo being
Optoelectro water st corner
nia treated 1 None
nics polluta of 2.36mg/L 45mg/L 6.67t 59.17t
nitroge by
Technology nt factory
n sewag
Co., Ltd.
e
treatm
ent
system
The 4.5th Standa 153.32
generation COD rd 160.61mg/L 500mg/L 564.14t
t
TFT-LCD Waste emissi
North
production water Ammo on
1 side of None
line of polluta nia after
factory 9.73mg/L 45mg/L 8.43t 50.77t
Chengdu nt nitroge being
BOE n treated
Optoelectro by
83
BOE Technology Group Co., Ltd. Annual Report 2023
nics sewag
Technology e
Co., Ltd. treatm
ent
system
Standa 1,081.5
COD 29.38mg/L 380mg/L 97.74t
rd 5t
emissi
on
Hefei BOE after
Waste Northwe
Optoelectro being
water Ammo st corner
nics treated 1 None
polluta nia of
Technology by 1.22mg/L 30mg/L 4.13t 101.23t
nt nitroge factory
Co., Ltd. sewag
n
e
treatm
ent
system
Standa 1 402.04 1,570.3
COD 98.58mg/L 500mg/l
rd (main t 2t
East gate
Ammo emissi waste
of
nia on water
factory 12.87mg/L 45mg/l 53.35t 183.20t
Beijing nitroge after outlet
Waste
BOE n being )
water
Display treated 1(S2 None
polluta
Technology COD by domes 59.75mg/L 500mg/l 7.75t 80.76t
nt South
Co., Ltd. sewag tic
gate of
Ammo e sewag
dormitor
nia treatm e
y area 12.01mg/L 45mg/l 1.59t 6.06t
nitroge ent outlet
n system II)
Standa 339.83 3,135.0
COD rd 63.03mg/L 350mg/L
t 4t
emissi
on
Hefei after
Xinsheng Waste
being Northeas
Optoelectro water Ammo treated 1 t side of None
nics polluta nia
Technology by factory 12.62mg/L 35mg/L 67.81t 313.50t
nt nitroge
Co., Ltd. sewag
n e
treatm
ent
system
COD Standa 31.62mg/L 500mg/L 37.88t 713.81t
rd
emissi
on
Erdos after
Waste
Yuansheng Ammo being North
water
Optoelectro nia treated 1 side of None
nics Co., polluta 0.42mg/L 45mg/L 0.52t 76.82t
nitroge by factory
Ltd. nt
n sewag
e
treatm
ent
system
84
BOE Technology Group Co., Ltd. Annual Report 2023
Standa
102.11 6,383.1
The 6th COD rd 24.06mg/L 500mg/L
t 6t
generation emissi
flexible on
AMOLED after
production Waste
being North
line of water
Ammo treated 1 side of None
Chengdu polluta
BOE nia by factory
nt 11.95mg/L 45mg/L 53.62t 574.48t
Optoelectro nitroge sewag
nics n e
Technology treatm
Co., Ltd. ent
system
Standa 262.27 1,900.2
COD 66.48 mg/L 400mg/L
rd t 4t
emissi
on
Chongqing after
BOE Waste
being South
Optoelectro water Ammo
treated 1 side of None
nics polluta nia
Technology by factory 8.44 mg/L 30mg/L 33.78t 146.17t
nt nitroge
Co., Ltd. sewag
n
e
treatm
ent
system
Standa 732.60 4,759.5
COD 64.50mg/L 350mg/L
rd t 6t
emissi
on
after
Hefei BOE Waste
being North
Display water Ammo
treated 1 side of None
Technology polluta nia 126.31
Co., Ltd. by factory 11.07mg/L 35mg/L 416.46t
nt nitroge t
sewag
n
e
treatm
ent
system
Standa
COD 12.21mg/l 500mg/L 56.88t 297.50t
rd
emissi
on
Fuzhou after
BOE Waste
being Northeas
Optoelectro water Ammo
treated 1 t side of None
nics polluta nia
Technology by factory 0.42mg/l 45mg/L 1.93t 29.75t
nt nitroge
Co., Ltd. sewag
n
e
treatm
ent
system
Mianyang Standa 4,326.1
Waste COD rd 24.14mg/L 500mg/L 68.75t
BOE North 2t
Optoelectro water emissi
Ammo 1 side of None
nics polluta on
Technology nia factory 3.18mg/L 45mg/L 9.09t 262.00t
nt after
Co., Ltd. nitroge being
85
BOE Technology Group Co., Ltd. Annual Report 2023
n treated
by
sewag
e
treatm
ent
system
Standa 4,171.2
COD 19.69mg/L 400mg/L 48.17t
rd 0t
emissi
on
Chongqing after
Waste
BOE being North
water Ammo
Display treated 1 side of None
polluta nia
Technology by factory 1.39mg/L 35mg/L 3.24t 398.40t
nt nitroge
Co., Ltd. sewag
n
e
treatm
ent
system
Standa 245.71
COD 23.34mg/L 30mg/L 488.6t
rd t
emissi
on
Wuhan after
BOE Waste Northeas
being
Optoelectro water Ammo t corner
treated 1 None
nics polluta nia of
Technology by 0.07mg/L 1.5mg/L 0.74t 25.85t
nt nitroge factory
Co., Ltd. sewag
n
e
treatm
ent
system
Standa 462.12 1,903.9
COD 88.29mg/L 500mg/L
rd t 9t
emissi
on
Nanjing after
Waste
BOE being South
water Ammo
Display treated 1 side of None
Technology polluta nia
by factory 3.56mg/L 45mg/L 18.81t 171.37t
Co., Ltd. nt nitroge
sewag
n
e
treatm
ent
system
Standa 1,141. 4,310.1
COD 183.25mg/L 500mg/L
rd 90t 0t
emissi
on
Chengdu
Waste after Northwe
BOE
water Ammo being st corner
Display 1 None
polluta nia treated of
Sci-tech 10.69mg/L 45mg/L 66.61t 148.80t
nt nitroge by factory
Co., Ltd.
n sewag
e
treatm
ent
86
BOE Technology Group Co., Ltd. Annual Report 2023
system
Industri
al and
COD 148.37mg/L 500mg/L 7.85t domesti
c
sewage
of the
project,
upon
treatme
nt, is
dischar
ged to
the
Standa industri
rd al
emissi sewage
Yunnan on plant of
Chuangshij after Linkon
Waste Northwe
ie being g
water st corner
Optoelectro treated 1 Industri None
nics polluta of
Ammo by al Park
Technology nt factory
nia sewag in
Co., Ltd. 12.41mg/L 45mg/L 0.64t
nitroge e Dianzh
n treatm ong
ent New
system Zone,
Kunmin
g,
Yunnan
Provinc
e and
include
d in the
total
dischar
ge of
the
sewage
plant.
Treatment of pollutants
The waste water which is generated by each subordinate subsidiary of the Company can be divided in to industrial waste water and
household waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separately according to
different natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water is collected by
rain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory, industrial waste water
is discharged into sewage treatment factory through municipal pipe network for intense treatment. Household waste water comprises
household fecal waste water and canteen oily waste water etc, after pretreatment, the waste water is discharged into municipal sewage
treatment factory. All industrial wastewater and domestic sewage is not discharged directly, and the concentration and total amount of
drainage satisfy the requirements of national and local relevant standards.
The exhaust gas which is emitted by each subordinate subsidiary mainly comes from technology exhaust gas during production process,
generally including acid exhaust gas, alkaline exhaust gas, special exhaust gas and organic exhaust gas etc. Various exhaust gas can be
emitted after being treated by independent emission treatment system. The emission concentration and total amount satisfy the national
and local relevant standards. The solid waste materials which are generated by each subordinate subsidiary can be divided into general
87
BOE Technology Group Co., Ltd. Annual Report 2023
industrial solid waste, hazardous waste materials and household waste materials, and they all handed over to qualified recycler for
regular treatment. The disposal rate of hazardous waste materials is 100%.
Self-monitoring Plan
Currently, major pollutant-discharging units subordinated to the Company have worked out corresponding self-monitoring plan
according to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectively
formulated by Beijing BOE Display Technology Co., Ltd. and Beijing BOE Optoelectronics Technology Co., Ltd. have been published
via Beijing Environmental Information Disclosure Platform for Enterprises and Institutions and the Company’s official website.
Contingency Plan for Emergent Environmental Incidents
Every subsidiary of the Company has formulated, updated and filed corresponding contingency plan for emergent environmental
incidents in local environmental protection departments according to their requirements. However, such contingency plan consists of
comprehensive plan, special plan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardous
wastes and dangerous chemicals etc. Meanwhile, drills must be conducted regularly.
Input in environment governance and protection and payment of environmental protection tax
The Company unremittingly advocates and practices the idea of sustainable environmental development. By continuously increasing
investment in environmental governance and protection, and improving the production and operation processes regarding
environmental impacts, the Company effectively minimized the impact of operation on the environment. Subsidiaries of the Company
subject to the environmental protection tax shall pay the environmental protection taxes strictly complying with the requirements of
the Environmental Protection Tax Law of the People's Republic of China and the local government.
Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
Applicable □ Not applicable
To respond to the national "3060" double carbon goal and guarantee the unified planning and effective implementation of carbon
emission peak and carbon neutrality of the Company, clearly raised a carbon emission management policy featuring "comprehensive
coordination, continuous reduction in carbon emissions, value extension and green development" and management objective featuring
“Achieve carbon emission peak and carbon neutrality of the Company”. Meanwhile, it included the performance in carbon emission
management in the Company's performance management system to promote the Company's management of carbon emission.
On the basis of the "624" 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
improve the digital management of the Company's "double carbon" affairs, an efficient and unified enterprise management and control
platform was developed to realize full-process management featuring optimization and control at the source, continuous improvements
in the energy structure, dynamic control of processes, and effective analysis of data.
The Company sets carbon targets in a scientific way. As a representative of the company, Chongqing BOE Optoelectronics Technology
Co., Ltd. officially joined the Science Based Targets initiative (SBTi) and made a commitment to keep the increase in global average
temperature 1.5°C below pre-industrial levels. Thereby, it becomes the first semiconductor display panel manufacturer in Chinese
mainland to join SBTi. It carried out internal carbon inventory in accordance with the GHG Protocol to determine the base year for
emission reduction and set emission reduction targets, and then planned the path to achieve the targets.
Subsidiaries achieve the goal of energy-saving and emission reduction through the operation of the energy management system and
the incentive energy-saving program through refined management on the energy management platform.
In 2023, 111.3186 million kWh of electricity, 2.6923 million tons of water, 578,600 cubic meters of natural gas, 609,700 cubic meters
of nitrogen, and 15.9 thousand tons of vapor had accumulatively been saved.
Meanwhile, in order to cope with the challenges and opportunities brought by carbon trading, subsidiaries in Beijing actively conducted
carbon emission trading and accumulated carbon trading experience to assist the Company in achieving its goals of carbon emission
88
BOE Technology Group Co., Ltd. Annual Report 2023
peak and carbon neutrality.
Administrative penalties imposed for environmental issues during the Reporting Period
Influence on
Rectification
Name Reason Case Result production and
measures
operation
N/A N/A N/A N/A N/A N/A
Other environment information that should be disclosed
No
Other related environment protection information
The Company fully considers design for recycling, universal design and minimal design of products in the product design stage, adheres
to the green management concept of the full life cycle of products, and follows the principles of minimizing energy and resource
consumption, 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 constantly
improve the transportation management system, carry out reasonable layout and planning of transportation stations and routes, improve
the delivery efficiency, and reduce greenhouse gas emissions.
II Social Responsibility
With the sustainable development concept of Green+, Innovation+ and Community+ as its management and operation philosophy,
BOE actively participates in the practices of the "Empower IoT with Display" and the industrial value innovation ecosystem that is
"Powered by BOE" with global partners.
As of 2023, BOE had consecutively disclosed Social Responsibility Report for 14 years. Please view and download such report via
official website of BOE www.boe.com or Cninfo.
III Consolidation and Expansion of Poverty Alleviation Outcomes, and Rural Revitalization
Throughout the years, BOE has vigorously expanded its global footprint, ceaselessly constructing the “Powered by BOE” industrial
value innovation ecosystem. By leveraging technological innovation, it empowers diverse application scenarios and strategic layouts,
upholding the philosophy of sustainable development, fulfilling its corporate social responsibility, and holistically driving the high-
quality advancement of rural rejuvenation.
Shoulder responsibility and pursue innovation
As a significant social actor, BOE actively shoulders its responsibilities by delivering top-notch services and products to stakeholders
and aiding in rural revitalization efforts. BOE established a digital supply chain platform, streamlining farm-to-table food service,
ensuring delivery of agricultural produce to over 100,000 employees within 24 hours, and launched the “Chengqi Yanchuan” brand to
aid farmers, delving into private markets and exploring innovative sales models. Additionally, BOE dispatched exceptional personnel
to Wamiao Village, Dazhuangke Township, Yanqing District, Beijing, to actively participate in grassroots organization development,
foster industries, serve communities, promptly respond to natural disasters, and provide aid. The Company also initiated cultural-
assisted charity events through its “Running Group”, such as “Stepping into Red Zhuangke to Harvest Red Fruits” and “Correcting
Names for Quality Local Produce,” harnessing cultural influence to spread warmth and thereby realizing both the economic value and
social contributions in supporting agriculture and farmers.
Pass on warmth and provide health support
BOE leverages its advanced medical resources and talent edge to innovate in healthcare technology and services, while consistently
focusing on societal health advancements. It raises public health consciousness through diverse medical welfare initiatives,
89
BOE Technology Group Co., Ltd. Annual Report 2023
disseminating health knowledge. Additionally, BOE donates medical resources to underprivileged areas, enhancing local medical
technology standards and granting residents access to personalized healthcare. In 2023, Chengdu BOE Hospital ventured into Sichuan’s
ethnic minority autonomous regions, conducting screenings for 29,365 individuals and 76 schools for congenital heart diseases in
children. Furthermore, BOE energized rural digital education via the “Lighting the Way to Growth” initiative, surpassing 100 smart
classrooms in 2023. This provided over 60,000 educators and students with comprehensive smart education solutions. Simultaneously,
BOE partnered with the Palace Museum to launch the “100 Traditional Culture Public Welfare Lessons in the Palace” scheme, aiming
to bridge the digital divide between urban and rural areas and comprehensively empower digital education in remote regions.
Moving forward, BOE remains steadfast in its vision of “To Be the Most Respected Company on Earth”. Upholding the principles of
Green+, Innovation+, and Community+ sustainability, BOE commits to offering increased backing and services. This dedication is
instrumental in advancing rural revitalization strategies, thereby generating greater societal value and welfare.
90
BOE Technology Group Co., Ltd. Annual Report 2023
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and other Entities Fulfilled
in the Reporting Period or Ongoing at the Period-end
Applicable □ Not applicable
Date of Term of
Type of Fulfillmen
Commitment Promisor Details of commitment commitment commitme
commitment t
making nt
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 - - - - -
The Chairman of the In accordance with the Announcement on the Commitments of not
During the
Board: Mr. Chen Reducing the Shareholding by Some Directors, Supervisors and Senior
term as
Yanshun Management (No.: 2020-001) disclosed by the Company on 22 February
director,
Director: Mr. Gao 2020, some of the Company’s directors, supervisors and senior
supervisor
Wenbao managers, based on their confidence in the Company’s future
or senior
development and their recognition of the corporate value, promise not to
Supervisor: Mr. Xu manager,
reduce or transfer any shares held in BOE (A shares), not to entrust
Yangping, Mr. Yan Jun and in six
others to manage specific shares, not to authorize others to execute their
and Mr. Teng Jiao Other months
Other commitments made to voting right by means of any agreement, trust or other arrangements and 21 February
Senior Management: commitment after the Ongoing
minority interests not to require the Company to repurchase any specific shares during the 2020
s expiration
Mr. Liu Xiaodong, Ms. terms of office and within 6 months after their tenures expire so as to
of the
Sun Yun, Ms. Feng promote the Company’s continuous, stable and healthy development and
term (the
Liqiong and Mr. Liu maintain the rights and interests of the Company and all shareholders.
term
For any newly-added shares derived from the assignment of rights and
Hongfeng determine
interests including the share donation and the reserved funds converted
Former Senior d when
into share capital during the period (corresponding to the specific
Management: Mr. Xie taking
shares), they shall still keep their promises till the commitment period
office).
Zhongdong and Mr. expires.
91
BOE Technology Group Co., Ltd. Annual Report 2023
Miao Chuanbin
Other commitments - - - - -
Executed on time or not Yes
Specific reasons for failing to
fulfill commitments on time and N/A
plans for next step (if any)
92
BOE Technology Group Co., Ltd. Annual Report 2023
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still within
the forecast period, explain why the 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 Related
Parties 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” on
the Financial Statements
□ Applicable Not applicable
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent
Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on the Financial
Statements of the Reporting Period
□ Applicable Not applicable
VI YoY Changes to Accounting Policies, Estimates or Correction of Material Accounting Errors
Applicable □ Not applicable
On 30 November 2022, the Ministry of Finance issued Interpretation No. 16 of Accounting Standards for Business Enterprises, the
content of “accounting treatment for deferred income tax relating to assets and liabilities arising from a single transaction that is not
subject to the initial recognition exemption” in the Interpretation became effective on 1 January 2023; and the content of “accounting
treatment of the income tax effect of financial instrument related dividend whose issuer is classified as equity instrument” and
“accounting treatment of share-based payment in cash settlement modified into share-based payment in equity settlement by the
enterprise” became effective from the date of promulgation.
VII YoY Changes to the Scope of the Consolidated Financial Statements
Applicable □ Not applicable
5 subsidiaries were established in 2023, and they are Mianyang BOE Electronic Technology Co., Ltd., Beijing Shiyan Technology Co.,
Ltd., Wuhan BOE Smart Energy Co., Ltd., BOE Smart Internet Hospital (Chengdu) Co., Ltd. and Beijing BOE Shengshi Technology
Co., Ltd. 2 subsidiaries were merged not under the same control, and they are Beijing United Ultra High-Definition Video Technology
Collaboration Center Co., Ltd., HC SemiTek Corporation and its subsidiaries. One subsidiary, Suzhou BOE Human Resources
Development Co., Ltd., was cancelled.
93
BOE Technology Group Co., Ltd. Annual Report 2023
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
1,210
(RMB’0,000)
How many consecutive years the domestic independent auditor has
19
provided audit service for the Company
Names of the certified public accountants from the domestic
Su Xing, Chai Jing
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants from the
domestic independent auditor have provided audit service for the 2 years for Su Xing, 4 years for Chai Jing
Company
Name of the foreign independent auditor (if any) N/A
The Company’s payment to the foreign independent auditor
0
(RMB’0,000) (if any)
How many consecutive years the foreign independent auditor has
N/A
provided audit service for the Company (if any)
Names of the certified public accountants from the foreign independent
N/A
auditor writing signatures on the auditor’s report (if any)
How many consecutive years the certified public accountants from the
foreign independent auditor have provided audit service for the N/A
Company (if any)
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
□Yes No
Independent auditor, financial advisor or sponsor engaged for internal control audit
Applicable □ Not applicable
During the year, the Company engaged KPMG Huazhen (LLP) as the Company's internal control audit accounting firm, and the
Company paid KPMG Huazhen (LLP) total compensation of RMB12.1 million for the 2023 annual audit and internal control audit.
IX Possibility of Delisting after Disclosure of this Report
□ Applicable Not applicable
X Insolvency and Reorganization
□ Applicable Not applicable
No such cases in the Reporting Period.
XI Major Legal Matters
Applicable □ Not applicable
Index
to
Involved
Disclo disclo
amount Decisions and Execution
General information Provision Progress sure sed
(RMB’0,00 effects of decisions
date infor
0)
matio
n
Litigations for 2023 (including
48,771.67 No N/A N/A N/A - N/A
carryforwards in previous years )
94
BOE Technology Group Co., Ltd. Annual Report 2023
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 Actual
Controller
□ 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
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 other
finance business with any related parties.
95
BOE Technology Group Co., Ltd. Annual Report 2023
7. Other Major Related-Party Transactions
Applicable □ Not applicable
None
Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on Estimated Continuing Related-party Transactions
4 April 2023 www.cninfo.com.cn
for 2023
Announcement on Participation of Subsidiary in Establishment of
Beijing-Tianjin Joint Development (Beijing) Equity Investment Fund 31 October 2023 www.cninfo.com.cn
Partnership (Limited Partnership) and the Related-party Transaction
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.
96
BOE Technology Group Co., Ltd. Annual Report 2023
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)
Havin Guarant
Disclosure date of the Actual Type of Counter g ee for a
Line of Actual occurrence Collateral
Obligor guarantee line guarantee guarante guarantee (if Term of guarantee expire related
guarantee date (if any)
announcement amount e any) d or party or
not not
N/A
Guarantees provided by the Company as the parent for its subsidiaries
Havin Guarant
Disclosure date of the Actual Type of Counter g ee for a
Line of Actual occurrence Collateral
Obligor guarantee line guarantee guarante guarantee (if Term of guarantee expire related
guarantee date (if any)
announcement amount e any) d or party or
not not
Ordos YuanSheng Joint- 2017-3-17 to 2027-3-
30 November 2016 552,699 15 March 2017 53,182 N/A N/A Not Not
Optoelectronics Co., Ltd. liability 17
Chengdu BOE
Joint-
Optoelectronics 24 April 2017 2,287,206 30 August 2017 1,392,242 N/A N/A 2017-9-6 to 2029-9-6 Not Not
Technology Co., Ltd. liability
The secured
party provides a
Hefei BOE Display Joint-
30 November 2016 1,712,144 30 August 2017 199,091 N/A counter 2017-9-7 to 2027-9-7 Not Not
Technology Co., Ltd. liability
guarantee for
the guarantor
Fuzhou BOE
Joint- 2016-12-19 to 2026-
Optoelectronics 9 December 2015 1,359,203 8 November 2016 68,439 N/A N/A Not Not
Technology Co., Ltd. liability 7-4
The secured
party provides a
Mianyang BOE Joint- 2018-9-26 to 2031-9-
18 May 2018 2,122,952 18 September 2018 1,527,070 N/A counter Not Not
Optoelectronics Co., Ltd. liability 26
guarantee for
the guarantor
The secured
Chongqing BOE Display Joint- 2020-12-31 to 2033-
27 April 2020 2,067,573 29 December 2020 1,475,257 N/A party provides a Not Not
Technology Co., Ltd. liability 12-31
counter
97
BOE Technology Group Co., Ltd. Annual Report 2023
guarantee for
the guarantor
The secured
Wuhan BOE party provides a
Joint- 2019-8-23 to 2032-8-
Optoelectronics 25 March 2019 2,044,698 16 August 2019 1,193,717 N/A counter Not Not
Technology Co., Ltd. liability 23
guarantee for
the guarantor
The secured
party provides a
Nanjing BOE Display Joint- 2021-5-12 to 2026-5-
23 September 2020 180,000 12 May 2021 45,000 N/A counter Not Not
Technology Co., Ltd. liability 31
guarantee for
the guarantor
The secured
party provides a
Nanjing BOE Display Joint- 2021-5-12 to 2026-6-
23 September 2020 120,000 12 May 2021 120,000 N/A counter Not Not
Technology Co., Ltd. liability 6
guarantee for
the guarantor
The secured
party provides a
Nanjing BOE Display Joint-
23 September 2020 111,162 29 July 2021 - N/A counter - Yes Not
Technology Co., Ltd. liability
guarantee for
the guarantor
The secured
party provides a
Nanjing BOE Display Joint-
23 September 2020 19,098 13 August 2021 - N/A counter - Yes Not
Technology Co., Ltd. liability
guarantee for
the guarantor
The secured
party provides a
Nanjing BOE Display Joint-
23 September 2020 10,500 27 December 2021 - N/A counter - Yes Not
Technology Co., Ltd. liability
guarantee for
the guarantor
The secured
party provides a
Chengdu BOE Hospital Joint- 2020-6-15 to 2042-6-
27 April 2020 240,000 15 June 2020 152,295 N/A counter Not Not
Co., Ltd. liability 30
guarantee for
the guarantor
Total actual amount of
Total approved line for such guarantees in the
0 such guarantees in the 284,885
Reporting Period (B1)
Reporting Period (B2)
98
BOE Technology Group Co., Ltd. Annual Report 2023
Total actual balance
Total approved line for such guarantees at the end of such guarantees at
12,686,475 6,226,293
of the Reporting Period (B3) the end of the
Reporting Period (B4)
Guarantees provided between subsidiaries
Havin Guarant
Disclosure date of the Actual Type of Counter g ee for a
Line of Actual occurrence Collateral
Obligor guarantee line guarantee guarante guarantee (if Term of guarantee expire related
guarantee date (if any)
announcement amount e any) d or party or
not not
Yaoguang New Energy Joint- 2020-9-30 to 2034-9-
N/A 2,462 30 September 2020 2,156 N/A N/A Not Not
(Shouguang) Co., Ltd. liability 30
Suzhou Industrial Park
Joint- 2020-9-30 to 2034-9-
Taijing Photovoltaic Co., N/A 1,915 30 September 2020 1,677 N/A N/A Not Not
Ltd. liability 30
Qingmei Solar Energy
Joint- 2020-9-30 to 2034-9-
Technology (Lishui) Co., N/A 2,257 30 September 2020 1,758 N/A N/A Not Not
Ltd. liability 30
Qinghong Solar Energy
Joint- 2020-9-30 to 2034-9-
Technology (Jinhua) Co., N/A 1,163 30 September 2020 905 N/A N/A Not Not
Ltd. liability 30
Qinghui Solar Energy
Joint-
Technology (Jinhua) Co., N/A 752 30 September 2020 - N/A N/A - Yes Not
Ltd. liability
Qinghao Solar Energy Joint-
Equity 2017-12-18 to 2032-
Technology (Jinhua) Co., N/A 609 18 December 2017 303 liability, N/A Not Not
Ltd. interests 12-18
pledge
Xiangqing Solar Energy Joint-
Equity 2017-12-18 to 2032-
Technology (Dongyang) N/A 2,377 18 December 2017 1,005 liability, N/A Not Not
Co., Ltd interests 12-18
pledge
Qingyue Solar Energy Joint-
Equity 2017-12-18 to 2032-
Technology (Wuyi) Co., N/A 657 18 December 2017 278 liability, N/A Not Not
Ltd interests 12-18
pledge
Qingyou Solar Energy Joint-
Equity 2017-12-18 to 2032-
Technology (Longyou) N/A 1,512 18 December 2017 761 liability, N/A Not Not
Co., Ltd interests 12-18
pledge
Qingfan Solar Energy Joint-
Equity 2017-12-18 to 2032-
Technology (Quzhou) N/A 1,269 18 December 2017 536 liability, N/A Not Not
Co., Ltd interests 12-18
pledge
Taihang Electric Power
Joint-
Technology (Ningbo) Co., N/A 205 3 December 2020 - N/A N/A - Yes Not
Ltd liability
99
BOE Technology Group Co., Ltd. Annual Report 2023
Guoji Energy (Ningbo) Joint- 2020-12-3 to 2034-
N/A 1,231 3 December 2020 984 N/A N/A Not Not
Co., Ltd. liability 12-3
Hongyang Solar Energy
Joint- 2020-12-3 to 2034-
Power Generation (Anji) N/A 1,710 3 December 2020 1,367 N/A N/A Not Not
Co., Ltd. liability 12-3
Ke’en Solar Energy
Joint- 2020-12-3 to 2034-
Power Generation N/A 1,094 3 December 2020 875 N/A N/A Not Not
(Pingyang) Co., Ltd. liability 12-3
Dongze Photovoltaic
Joint- 2020-12-3 to 2034-
Power Generation N/A 958 3 December 2020 766 N/A N/A Not Not
(Wenzhou) Co., Ltd. liability 12-3
Aifeisheng Investment
Joint- 2020-12-3 to 2034-
and Management N/A 479 3 December 2020 383 N/A N/A Not Not
(Wenzhou) Co, Ltd. liability 12-3
Beijing BOE Energy Charging 2017-10-24 to 2032-
N/A 8,755 23 October 2017 6,352 Pledge N/A Not Not
Technology Co., Ltd. right 10-23
Beijing BOE Energy Charging 2018-9-26 to 2032-
N/A 14,063 15 August 2018 5,520 Pledge N/A Not Not
Technology Co., Ltd. right 12-21
Beijing BOE Energy Charging 2017-12-1 to 2032-
N/A 17,386 28 November 2017 13,185 Pledge N/A Not Not
Technology Co., Ltd. right 12-1
Hefei BOE Hospital Co., Joint- 2018-4-27 to 2036-4-
27 April 2018 130,000 27 April 2018 115,500 N/A N/A Not Not
Ltd. liability 27
The secured
party provides a
Beijing BOE Life Joint- 2021-12-29 to 2039-
N/A 60,000 29 December 2021 27,000 N/A counter Not Not
Technology Co., Ltd. liability 12-28
guarantee for
the guarantor
The secured 23 March 2023 to the
party provides a time when all orders
BOE Vision-Electronic Joint-
30 March 2022 212,481 23 March 2023 3,544 N/A counter under the purchase Not Not
Technology Co., Ltd liability
guarantee for and sales Agreement
the guarantor have been completed
BOE HC SemiTek Joint- 2022-2-18 to 2028-2-
27 January 2022 46,020 17 February 2022 2,232 N/A N/A Not Not
(Suzhou) Co., Ltd. liability 17
BOE HC SemiTek Joint- 2020-9-16 to 2027-9-
26 January 2021 23,010 15 March 2021 2,247 N/A N/A Not Not
(Suzhou) Co., Ltd. liability 16
BOE HC SemiTek Joint- 2023-2-28 to 2026-2-
26 January 2021 23,010 15 March 2021 1,151 N/A N/A Not Not
(Suzhou) Co., Ltd. liability 28
BOE HC SemiTek Joint- 2023-8-22 to 2027-8-
26 January 2021 23,010 3 August 2021 2,278 N/A N/A Not Not
(Suzhou) Co., Ltd. liability 21
BOE HC SemiTek 30 September 2021 34,515 15 November 2021 6,236 Joint- N/A N/A 2021-11-17 to 2029- Not Not
100
BOE Technology Group Co., Ltd. Annual Report 2023
(Suzhou) Co., Ltd. liability 9-25
BOE HC SemiTek Joint- 2023-2-17 to 2027-2-
21 January 2023 46,020 17 February 2023 690 N/A N/A Not Not
(Suzhou) Co., Ltd. liability 17
BOE HC SemiTek Joint- 2023-3-17 to 2027-3-
21 January 2023 46,020 17 March 2023 1,804 N/A N/A Not Not
(Suzhou) Co., Ltd. liability 14
BOE HC SemiTek Joint- 2023-4-27 to 2027-5-
21 January 2023 46,020 25 April 2023 2,301 N/A N/A Not Not
(Suzhou) Co., Ltd. liability 17
BOE HC SemiTek Joint- 2023-6-16 to 2027-6-
21 January 2023 46,020 12 May 2023 920 N/A N/A Not Not
(Suzhou) Co., Ltd. liability 15
BOE HC SemiTek Joint-
27 January 2022 46,020 22 March 2022 - N/A N/A - Yes Not
(Suzhou) Co., Ltd. liability
BOE HC SemiTek Joint-
27 January 2022 46,020 24 March 2022 - N/A N/A - Yes Not
(Suzhou) Co., Ltd. liability
BOE HC SemiTek Joint-
27 January 2022 46,020 18 March 2022 - N/A N/A - Yes Not
(Suzhou) Co., Ltd. liability
BOE HC SemiTek Joint-
27 January 2022 46,020 18 May 2022 - N/A N/A - Yes Not
(Suzhou) Co., Ltd. liability
BOE HC SemiTek Joint-
27 January 2022 46,020 10 May 2022 - N/A N/A - Yes Not
(Suzhou) Co., Ltd. liability
BOE HC SemiTek Joint-
21 January 2023 46,020 29 March 2023 - N/A N/A - Yes Not
(Suzhou) Co., Ltd. liability
Joint- 2023-3-23 to 2027-3-
Crystaland Co., Ltd. 21 January 2023 4,602 19 March 2023 920 N/A N/A Not Not
liability 22
Joint-
Crystaland Co., Ltd. 31 December 2019 11,505 25 April 2020 - N/A N/A - Yes Not
liability
Joint-
Crystaland Co., Ltd. 27 January 2022 9,204 8 July 2022 - N/A N/A - Yes Not
liability
Joint-
Crystaland Co., Ltd. 27 January 2022 9,204 22 November 2022 - N/A N/A - Yes Not
liability
BOE HC SemiTek Joint-
21 January 2023 52,923 3 March 2023 2,301 N/A N/A 2023-3-7 to 2027-7-5 Not Not
(Zhejiang) Co., Ltd. liability
BOE HC SemiTek Joint- 2023-3-14 to 2027-6-
21 January 2023 52,923 13 March 2023 4,602 N/A N/A Not Not
(Zhejiang) Co., Ltd. liability 13
BOE HC SemiTek Joint- 2023-3-28 to 2029-3-
21 January 2023 52,923 28 March 2023 2,289 N/A N/A Not Not
(Zhejiang) Co., Ltd. liability 27
BOE HC SemiTek Joint-
21 January 2023 52,923 6 April 2023 2,289 N/A N/A 2023-4-6 to 2029-4-5 Not Not
(Zhejiang) Co., Ltd. liability
BOE HC SemiTek Joint- 2023-5-22 to 2027-5-
21 January 2023 52,923 15 May 2023 1,369 N/A N/A Not Not
(Zhejiang) Co., Ltd. liability 21
101
BOE Technology Group Co., Ltd. Annual Report 2023
BOE HC SemiTek Joint- 2023-6-19 to 2027-6-
21 January 2023 52,923 16 June 2023 2,301 N/A N/A Not Not
(Zhejiang) Co., Ltd. liability 15
BOE HC SemiTek Joint- 2023-4-28 to 2030-4-
11 March 2023 12,656 26 April 2023 7,472 N/A N/A Not Not
(Zhejiang) Co., Ltd. liability 23
BOE HC SemiTek Joint-
26 January 2021 46,020 7 January 2022 3,405 N/A N/A 2022-1-7 to 2027-1-7 Not Not
(Zhejiang) Co., Ltd. liability
BOE HC SemiTek Joint- 2022-12-2 to 2027-6-
27 January 2022 36,816 2 December 2022 3,567 N/A N/A Not Not
(Zhejiang) Co., Ltd. liability 2
BOE HC SemiTek Joint- 2022-10-26 to 2035-
18 July 2022 31,064 30 August 2022 2,194 N/A N/A Not Not
(Zhejiang) Co., Ltd. liability 6-21
BOE HC SemiTek Joint-
26 January 2021 46,020 7 January 2022 - N/A N/A - Yes Not
(Zhejiang) Co., Ltd. liability
BOE HC SemiTek Joint-
27 January 2022 36,816 6 July 2022 - N/A N/A - Yes Not
(Zhejiang) Co., Ltd. liability
BOE HC SemiTek Joint-
27 January 2022 36,816 15 February 2022 - N/A N/A - Yes Not
(Zhejiang) Co., Ltd. liability
BOE HC SemiTek Joint-
27 January 2022 36,816 9 May 2022 - N/A N/A - Yes Not
(Zhejiang) Co., Ltd. liability
BOE HC SemiTek Joint-
27 January 2022 36,816 17 June 2022 - N/A N/A - Yes Not
(Zhejiang) Co., Ltd. liability
BOE HC SemiTek Joint-
27 February 2017 43,259 1 March 2017 - N/A N/A - Yes Not
(Zhejiang) Co., Ltd. liability
BOE HC SemiTek Joint-
26 January 2021 46,020 24 September 2021 - N/A N/A - Yes Not
(Zhejiang) Co., Ltd. liability
Total actual amount of
Total approved line for such guarantees in the
505,000 such guarantees in the 45,799
Reporting Period (C1)
Reporting Period (C2)
Total actual balance
Total approved line for such guarantees at the end of such guarantees at
1,280,050 237,424
of the Reporting Period (C3) the end of the
Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee line approved in the Reporting amount in the
505,000 330,684
Period (A1+B1+C1) Reporting Period
(A2+B2+C2)
Total actual guarantee
Total approved guarantee line at the end of the balance at the end of
13,966,525 6,463,717
Reporting Period (A3+B3+C3) the Reporting Period
(A4+B4+C4)
102
BOE Technology Group Co., Ltd. Annual Report 2023
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 49.94%
Of which:
Balance of guarantees provided for shareholders, actual controller and their related parties
0
(D)
Balance of debt guarantees provided directly or indirectly for obligors with an over 70%
284,044
debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 0
Total of the three amounts above (D+E+F) 284,044
Joint responsibilities possibly borne or already borne in the Reporting Period for undue
N/A
guarantees (if any)
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
Compound guarantees
None
103
BOE Technology Group Co., Ltd. Annual Report 2023
3. Cash Entrusted for Wealth Management
(1) Cash Entrusted for Wealth Management
Applicable □ Not applicable
Overviews of cash entrusted for wealth management during the Reporting Period
Unit: RMB'0,000
Unrecovered
Unrecovere
overdue amount
Specific type Capital resources Amount incurred Undue balance d overdue
with provision for
amount
impairment
Bank structured
Self-owned funds 1,529,800 705,500 0 0
deposit
Bank structured
Raised funds 40,000 40,000 0 0
deposit
Total 1,569,800 745,500 0 0
Note: Subsidiary HC Semitek Corporation used not more than RMB400,000,000 of idle proceeds for cash management. Details are
disclosed in the announcement of HC Semitek Corporation on the website of cninfo.com.cn on 16 August 2023.
Particulars of entrusted cash management with single significant amount or low security and bad liquidity
□ Applicable Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for entrusted
asset 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 Public
Issue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801 Approval from
CSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominal value no more than
RMB30 billion to qualified investors. Among them, the redeemed and delisted bonds are detailed in the table below:
Redemption
Bond Date of
Bond name Abbr. Maturity and delisting Disclosure index
code issue
date
2019 Public Offering of Renewable 28 October 29 October 31 October
19BOEY1 112741 www.cninfo.com.cn
Corporate Bonds of BOE (for qualified 2019 2022 2022
104
BOE Technology Group Co., Ltd. Annual Report 2023
investors) (Phase I)
2020 Public Offering of Renewable
27 28
Corporate Bonds of BOE (for qualified 28 February
20BOEY1 149046 February February
investors) (Phase I) (epidemic 2023
2020 2023
prevention and control bonds)
2020 Public Offering of Renewable
Corporate Bonds of BOE (for qualified 18 March 19 March 20 March
20BOEY2 149065
investors) (Phase II) (epidemic 2020 2023 2023
prevention and control bonds)
2020 Public Offering of Renewable
Corporate Bonds of BOE (for qualified 24 April 27 April
20BOEY3 149108 27 April 2023
investors) (Phase III) (epidemic 2020 2023
prevention and control bonds)
The bond outstanding as of the disclosure date of this Report is as follows:
Bond name Abbr. Bond code Date of issue Maturity
2022 Public Offering of Renewable
Corporate Bonds of BOE (for
22BOEY1 149861 24 March 2022 25 March 2025
professional investors) (Digital
Economy) (Phase I)
The Company disclosed 2024 "22BOEY1" Interest Payment Announcement (Announcement No. 2024-005) on 21 March 2024. 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 which
the Company intends to make a non-public offering of A-shares to no more than 35 specific investors including Jing Guorui Fund. The
net 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 (announcement
No. 2021-058), along with other relevant announcements. 3,650,377,019 new shares were issued in the non-public offering, which
were listed on the Shenzhen Stock Exchange on 20 August 2021. The Company disclosed the Suggestive Announcement on Relieving
Restricted Non-publicly Offered A Shares in 2021 (Announcement No.: 2023-004) on 17 February 2023. A total of 718,132,854
restricted shares of the Company's non-publicly offered A shares in 2021 were relieved on 20 February 2023 and could be traded on
the market thereafter. The number of the relieved restricted shares accounted for 1.9324% of the Company's non-restricted shares, and
1.8801% of the Company's total share capital.
3. The Company disclosed the Announcement on Resignation of Senior Management (Announcement No.: 2023-006) on 2 March 2023,
due to the change of work, Mr. Miao Chuanbin applied for resignation as Senior Vice President and Chief Culture Officer and will not
hold any position in the Company after his resignation. The Company disclosed the Announcement on Resignation of Senior
Management (Announcement No.: 2023-013) on 1 April 2023, due to personal reasons, Mr. Xie Zhongdong applied for resignation as
Senior Vice President, Chief Audit Officer and Chief Risk Control Officer and will not hold any position in the Company after his
resignation. The Company disclosed the Announcement of Resolutions of the 13th Meeting of the 10th Board of Directors
(Announcement No.: 2023-014) on 4 April 2023, at the 13th Meeting of the 10th Board of Directors, the Company considered and
approved the Proposal on the Appointment of Senior Management of the Company and Adjustment of the Composition of the Executive
Committee of the Company, the Board of Directors appointed Mr. Feng Qiang as a member of the Executive Committee and Executive
Vice President, Mr. Guo Huaping as Senior Vice President and Chief Cultural Officer; and to adjust the current senior management of
the Company, Ms. Yang Xiaoping, from Senior Vice President and Chief Financial Officer to a member of the Executive Committee,
Executive Vice President and Chief Financial Officer. The Company disclosed the Announcement of Resolutions of the 15th Meeting
of the 10th Board of Directors (Announcement No.: 2023-028) on 29 April 2023. At the 15th Meeting of the 10th Board of Directors
of the Company, the Proposal on the Appointment of Senior Management of the Company was reviewed and approved, and the Board
of Directors appointed Mr. Yue Zhanqiu as Senior Vice President and Chief Audit Officer of the Company.
4. On 31 May 2023, the Company disclosed the Announcement No. 2023-034 on the Distribution of the 2022 Final Dividend. As the
2022 Final Dividend Plan had been approved at the 2022 Annual General Meeting on 5 May 2023, the Company distributed a 2022
105
BOE Technology Group Co., Ltd. Annual Report 2023
final dividend of RMB0.61 per 10 shares (dividend to B-shareholders paid in HKD according to the central parity rate of RMB and
HKD declared by the People’s Bank of China on the first working day immediately after the date of the relevant general meeting
resolution), with no bonus issue from either profit or capital reserves.
5. On 25 July 2023, the Company disclosed the Announcement on the Resolutions of the 17th Meeting of the 10th Board of Directors
(Announcement No.: 2023-037) that Mr. Wu Lishun was nominated by the Company’s de facto controller, Beijing Electronics Holdings
Co., Ltd., as a non-independent director for the 10th Board of Directors of the Company. On 15 August 2023, the Company disclosed
the Announcement on the Resolutions of the 1st Extraordinary General Meeting of 2023 (Announcement No.: 2023-041), at which the
Proposal on the Election of Non-independent Director of the 10th Board of Directors of the Company was deliberated and approved,
and Mr. Wu Lishun was elected as a non-independent director of the 10th Board of Directors of the Company.
6. On 27 August 2020, the Company held the 15th Meeting of the 9th Board of Directors and approved the Proposal on the Repurchase
of Certain Public Shares of the Company, whereby the Company proposed to use its own funds to repurchase a portion of RMB-
denominated ordinary shares (A-Shares) issued by the Company by means of centralized bidding for the purpose of the implementation
of the Company’s equity incentive plan. The implementation of the share repurchase plan of the Company was completed on 3
September 2020 and 349,999,933 A-Shares were accumulatively repurchased via centralized bidding. For details, please refer to the
Announcement on the Completion of the Implementation of the Share Repurchase Plan and the Results of the Implementation
(Announcement No.: 2020-058) disclosed by the Company on 5 September 2020. On 21 December 2020, the Company granted
321,813,800 restricted shares to 793 incentive targets and details are in the relevant announcement disclosed by the Company on 22
December 2020. On 25 July 2023, the Company disclosed the Announcement on the Resolutions of the 17th meeting of the 10th Board
of Directors (Announcement No.: 2023-037) and the Announcement on the Cancellation of Certain Treasury Shares in the Company’s
Special Securities Account for Repurchase (Announcement No.: 2023-038). In accordance with the Rules for the Repurchase of Shares
by Listed Companies and Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 9 - Share Repurchase, the
remaining unutilized 28,186,133 shares in the special securities account for repurchase will expire three years from 5 September 2023,
and the Company shall cancelled them and handle relevant cancellation procedures in accordance with regulations. On 15 August 2023,
the Company disclosed the Announcement on the Resolutions of the 1st Extraordinary General Meeting of 2023 (Announcement No.:
2023-041) that the Proposal on the Cancellation of Certain Treasury Shares in the Company’s Special Securities Account for
Repurchase was deliberated and approved at the meeting. On 31 August 2023, the Company disclosed the Announcement on the
Completion of the Cancellation of Certain Treasury Shares in the Company’s Special Securities Account for Repurchase and Share
Changes (Announcement No.: 2023-050). The aforesaid 28,186,133 treasury shares have been cancelled on 29 August 2023 with the
Shenzhen branch of China Securities Depository and Clearing Co., Ltd., with the cancelled number of shares, date of completion and
term of retirement all in compliance with the applicable laws and regulations.
7. According to the Proposal of Repurchase of Certain Public Shares by the Company deliberated and adopted in the thirty-first meeting
of the ninth session of the Board of Directors meeting held on 27 August 2021, the Company is allowed to use its own funds to
repurchase certain of its shares for the implementation of the Company’s share incentive plan. On 28 February 2022, the
implementation of the proposal to repurchase certain of its shares through centralised price bidding transactions was completed, and
the cumulative number of A shares repurchased amounted to 499,999,919, details of which are set out in the Announcement on the
Completed Implementation of Share Repurchase Programme and Repurchase Implementation Results (Announcement No. 2022-007)
dated 2 March 2022. On 29 November 2023, the Company disclosed the Announcement of Resolutions of the Twenty-third Meeting of
the Tenth Session of the Board of Directors (Announcement No. 2023-063) and the Announcement on Changing the Purpose of the
Repurchased Shares and Cancelling Them (Announcement No. 2023-065), which stated that according to the actual situation of the
Company and in order to safeguard the interests of the general public of investors, the Company intends to change the purpose of the
repurchase of the Company’s shares for the year 2021 from “for the implementation of the Company’s share incentive program” to
“for cancellation and corresponding reduction of registered capital”. On 15 December 2023, the Company disclosed the Announcement
of Resolutions of the Third Extraordinary General Meeting of 2023 (Announcement No. 2023-068), at which the Resolution on
Changing the Use of the Repurchased Shares for the Purposes of the Repurchase and for Cancellation was deliberated and approved.
106
BOE Technology Group Co., Ltd. Annual Report 2023
On 27 December 2023, the Company disclosed the Announcement on the Completion of the Retirement of Repurchased Shares &
Share Changes (Announcement No. 2022-071). The aforesaid 499,999,919 treasury shares have been cancelled on 25 December 2023
with the Shenzhen branch of China Securities Depository and Clearing Co., Ltd., with the cancelled number of shares, date of
completion and term of retirement all in compliance with the applicable laws and regulations.
Overview of significant event Disclosure date Disclosure website
Announcement on the Signing of Supplemental Agreement (III) to the
Cooperation Agreement for the Life Science and Technology Industrial Base 10 June 2023 www.cninfo.com.cn
Project
Announcement on Investment and Construction of BOE Vietnam Project 29 August 2023 www.cninfo.com.cn
Announcement on Participation of Subsidiary in Establishment of Beijing-
Tianjin Joint Development (Beijing) Equity Investment Fund Partnership 31 October 2023 www.cninfo.com.cn
(Limited Partnership) and the Related-party Transaction
Announcement on the Investment for the Development of the Project of the
29 November 2023 www.cninfo.com.cn
Production Lines of the 8.6th Generation AMOLED
Announcement on Participation of Subsidiary in Establishment of Beijing
29 November 2023 www.cninfo.com.cn
Xianzhilian Phase II Venture Capital Fund (Limited Partnership)
XVII Significant Events of Subsidiaries
□ Applicable Not applicable
107
BOE Technology Group Co., Ltd. Annual Report 2023
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Item Bonus Bonus issue
Number Percentage New issues Other Subtotal Number Percentage
shares from profit
I. Restricted shares 1,033,130,290 2.70% 0 0 0 -834,171,063 -834,171,063 198,959,227 0.53%
1. Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-owned
718,132,854 1.88% 0 0 0 -718,132,854 -718,132,854 0 0.00%
corporations
3. Shares held by other
289,137,936 0.76% 0 0 0 -106,724,447 -106,724,447 182,413,489 0.48%
domestic investors
Among which: Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
domestic corporations
Shares held
289,137,936 0.76% 0 0 0 -106,724,447 -106,724,447 182,413,489 0.48%
by domestic individuals
4. Shares held by foreign
25,859,500 0.07% 0 0 0 -9,313,762 -9,313,762 16,545,738 0.04%
investors
Among which: Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
foreign corporations
Shares held
25,859,500 0.07% 0 0 0 -9,313,762 -9,313,762 16,545,738 0.04%
by foreign individuals
II. Non-restricted shares 37,163,233,131 97.30% 0 0 0 290,336,837 290,336,837 37,453,569,968 99.47%
1. RMB ordinary shares 36,470,349,004 95.48% 0 0 0 290,336,837 290,336,837 36,760,685,841 97.63%
2. Domestically listed foreign
692,884,127 1.81% 0 0 0 0 0 692,884,127 1.84%
shares
3. Overseas listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 38,196,363,421 100.00% 0 0 0 -543,834,226 -543,834,226 37,652,529,195 100.00%
Reasons for share changes:
Applicable □ Not applicable
108
BOE Technology Group Co., Ltd. Annual Report 2023
1. A total of 718,132,854 restricted shares of the Company's non-publicly issued RMB ordinary shares in 2021 were relieved on 20 February 2023.
2. On 11 April 2023, the Company has lifted the restriction conditions of some restricted stocks granted by the 2020 Stock Option and Restricted Stock Incentive Scheme, and 102,260,780 shares
of restricted stock were actually lifted. During the Reporting Period, the Company repurchased and cancelled 15,648,174 shares of restricted stock that had been authorised to 57 incentive recipients
but were still locked, resulting in a decrease of 117,908,954 shares of restricted stock of the Company's equity incentive.
3. During the Reporting Period, the equity incentive shares held by the Company's directors, supervisors, and senior management were lifted, resulting in an increase of 1,518,620 shares in the
management lock-up shares. The management lock-up shares increased by 270,525 as a result of the Company's hiring of senior management and by 81,600 as a result of the resignation of the
Company's senior management. In total, the Company's management lock-up shares increased by 1,870,745.
4. During the Reporting Period, the total number of shares decreased by 543,834,226. Specifically, restricted shares decreased by 834,171,063, and non-restricted shares increased by 290,336,837.
Approval of share changes:
□ Applicable Not applicable
Transfer of share ownership:
□ Applicable Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary shareholders and other financial indicators of the prior year and the
prior accounting period, respectively:
Applicable □ Not applicable
Item January-December 2023
Basic earnings per share (RMB/share) 0.06
Diluted earnings per share (RMB/share) 0.06
Item 31 December 2023
Equity per share attributable to the Company’s ordinary shareholders 3.41
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable Not applicable
2. Changes in Restricted Shares
Applicable □ Not applicable
Unit: Share
Restricted shares Restricted shares Restricted
Restricted shares Restricted
shares amount Restricted
Name of the shareholders amount at the increased of the relieved of the shares relieved
at the period- reasons
period-begin period period date
end
Beijing Jing Guorui Soe Reform and Development Fund 718,132,854 0 718,132,854 0 - 2023/2/20
109
BOE Technology Group Co., Ltd. Annual Report 2023
(L.P.)
Locked shares
Locked shares of executives 2,366,636 1,870,745 0 4,237,381 -
of executives
Restricted
Restricted shares for equity incentive 312,630,800 0 117,908,954 194,721,846 shares for equity -
incentive
Total 1,033,130,290 1,870,745 836,041,808 198,959,227 -- --
II Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□Applicable Not applicable
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
Applicable □ Not applicable
1. During the Reporting Period, the Company repurchased and cancelled 15,648,174 restricted shares, resulting in a decrease of 15,648,174 shares of the Company's shares.
2. During the Reporting Period, the Company cancelled 528,186,052 shares in the special securities account for repurchase, resulting in a decrease of 528,186,052 shares of the Company’s shares.
3. Existing Staff-Held Shares
□Applicable Not applicable
III Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
Unit: share
Number of ordinary shareholders at
Number of ordinary shareholders at the period- 1,262,795 (including 1,231,014 A-shareholders and 1,189,106（including 1,157,510 A-shareholders
the month-end prior to the
end 31,781 B-shareholders) and 31,596 B-shareholders）
disclosure of this Report
5% or greater shareholders or top 10 shareholders (exclusive of shares lent in refinancing)
Name of shareholder Nature of Sharehold Total shares Increase/decre Restricted shares Unrestricted Shares in pledge, marked or
110
BOE Technology Group Co., Ltd. Annual Report 2023
shareholder ing held at the ase in the held shares held frozen
percentag period-end Reporting
e Period Status Shares
Beijing State-owned Capital Operation and State-owned legal
10.79% 4,063,333,333 - 0 4,063,333,333 N/A 0
Management Company Limited person
Foreign legal
Hong Kong Securities Clearing Company Ltd. 6.05% 2,278,498,375 828,305,094 0 2,278,498,375 N/A 0
person
Beijing BOE Investment & Development Co., State-owned legal
2.18% 822,092,180 - 0 822,092,180 N/A 0
Ltd. person
Beijing Jing Guorui Soe Reform and
Other 1.91% 718,132,854 - 0 718,132,854 N/A 0
Development Fund (L.P.)
State-owned legal
Hefei Jianxiang Investment Co., Ltd. 1.77% 666,195,772 - 0 666,195,772 N/A 0
person
Domestic non-
Fuqing Huirong Venture Capital Co., Ltd. state-owned legal 1.42% 535,302,540 1,318,200 0 535,302,540 In pledge 15,000,000
person
Perseverance Asset Management- Perseverance
Other 0.93% 349,999,919 349,999,919 0 349,999,919 N/A 0
Xiaofeng No.2 Zhixin Fund
Domestic non-
Ningxia Risheng High-tech Industry Co., Ltd. state-owned legal 0.90% 339,525,766 -11,400,000 0 339,525,766 N/A 0
person
Foreign natural
Xu Lili 0.89% 336,599,581 95,274,283 0 336,599,581 N/A 0
person
FOTIC-Foreign Trade Trust- Perseverance
Xiaofeng Hongyuan Assembled Fund Trust Other 0.88% 329,988,907 329,988,907 0 329,988,907 N/A 0
Plan
Strategic investors or general corporations
becoming top-ten ordinary shareholders due to Naught
placing of new shares (if any)
1. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment
Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui
Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the
Related or acting-in-concert parties among the
nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated
shareholders above
by Beijing State-owned Capital Operation and Management Company Limited.
2. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10
shareholders.
Explain if any of the shareholders above was After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right,
involved in entrusting/being entrusted with agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights
voting rights or waiving voting rights as a shareholder.
Special account for share repurchases (if any)
Naught
among the top 10 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
111
BOE Technology Group Co., Ltd. Annual Report 2023
Type Shares
Beijing State-owned Capital Operation and
4,063,333,333 RMB ordinary share 4,063,333,333
Management Company Limited
Hong Kong Securities Clearing Company Ltd. 2,278,498,375 RMB ordinary share 2,278,498,375
Beijing BOE Investment & Development Co.,
822,092,180 RMB ordinary share 822,092,180
Ltd.
Beijing Jing Guorui Soe Reform and
718,132,854 RMB ordinary share 718,132,854
Development Fund (L.P.)
Hefei Jianxiang Investment Co., Ltd. 666,195,772 RMB ordinary share 666,195,772
Fuqing Huirong Venture Capital Group Co.,
535,302,540 RMB ordinary share 535,302,540
Ltd.
Perseverance Asset Management- Perseverance
349,999,919 RMB ordinary share 349,999,919
Xiaofeng No.2 Zhixin Fund
Ningxia Risheng High-tech Industry Co., Ltd. 339,525,766 RMB ordinary share 339,525,766
Xu Lili 336,599,581 RMB ordinary share 336,599,581
FOTIC-Foreign Trade Trust- Perseverance
Xiaofeng Hongyuan Assembled Fund Trust 329,988,907 RMB ordinary share 329,988,907
Plan
1. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment
Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui
Related or acting-in-concert parties among top Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the
10 unrestricted ordinary shareholders, as well
nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated
as between top 10 unrestricted ordinary
shareholders and top 10 shareholders by Beijing State-owned Capital Operation and Management Company Limited.
2. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10
shareholders.
1. Shareholder Ningxia Risheng High-tech Industry Co., Ltd. totally held 339,525,766 shares in the Company, among which, 42,583,700 shares
were held via its general securities account and 296,942,066 shares via its customer credit transactions secured securities account in Ping An
Securities Co., Ltd.
2. Shareholder Xu Lili totally held 336,599,581 shares in the Company, among which, 10,657,200 shares were held via its general securities account,
Top 10 ordinary shareholders involved in
248,713,498 shares via its customer credit transactions secured securities account in GF Securities Co., Ltd. and 77,228,883 shares via its customer
securities margin trading (if any) (see note 4)
credit transactions secured securities account in Ping An Securities Co., Ltd.
3. The shares held by Shareholder Fuqing Huirong Venture Capital Co., Ltd. in the Company increase by 1,318,200 shares due to securities
refinancing.
4. Except for the aforesaid, the remaining top 10 ordinary shareholders were not involved in securities refinancing.
Note: The number of ordinary shareholders at the month-end prior to the disclosure of this Report is as of 20 March 2024. At the month-end prior to the disclosure of this Report (29 March 2024),
the number of A-shareholders is 1,150,568. Due to the "T+3" trading rule for B-shares, the Company had had no access, by the date of this Report’s disclosure, to the number of its B-shareholders
at the month-end prior to the disclosure of this Report from China Securities Depository and Clearing Corporation Limited.
Top 10 shareholders involved in refinancing shares lending
Applicable □ Not applicable
112
BOE Technology Group Co., Ltd. Annual Report 2023
Unit: share
Top 10 shareholders involved in refinancing shares lending
Shares in the common account and Shares lent in refinancing and not Shares in the common account and Shares lent in refinancing and not
credit account at the period-begin yet returned at the period-begin credit account at the period-end yet returned at the period-end
Full name of shareholder
As % of total As % of total share As % of total As % of total
Total shares Total shares Total shares Total shares
share capital capital share capital share capital
Fuqing Huirong Venture Capital Co.,
533,984,340 1.40% 4,615,300 0.01% 535,302,540 1.42% 3,297,100 0.01%
Ltd.
Changes in shares that the top 10 shareholders lend in refinancing compared with the prior period
Applicable □ Not applicable
Unit: share
Changes in shares that the top 10 shareholders lend in refinancing compared with the end of the prior period
Increase/d Shares in the common account and credit account
Shares lent in refinancing and not yet
ecrease in plus shares lent in refinancing and not yet returned
returned at the period-end
Full name of shareholder the at the period-end
Reporting As % of total share As % of total share
Period Total shares Total shares
capital capital
Perseverance Asset Management- Perseverance Xiaofeng No.2 Zhixin Fund Increase 0 0.00% 349,999,919 0.93%
Xu Lili Increase 0 0.00% 336,599,581 0.89%
FOTIC-Foreign Trade Trust- Perseverance Xiaofeng Hongyuan Assembled
Increase 0 0.00% 329,988,907 0.88%
Fund Trust Plan
Sinatay Life Insurance Co., Ltd.-Traditional Product Decrease 0 0.00% 305,330,128 0.81%
Beijing Electronics Holdings Co., Ltd. Decrease 0 0.00% 273,735,583 0.73%
Beijing Yizhuang Investment Holdings Co., Ltd Decrease 0 0.00% 109,295,841 0.29%
113
BOE Technology Group Co., Ltd. Annual Report 2023
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.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Name of
Legal representative/person Date of Unified social credit
controlling Principal activity
in charge establishment code
shareholder
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
Beijing investment in business fields other
Electronics than electronics and its management,
Zhang Jinsong 8 April 1997 91110000633647998H
Holdings Co., development of real estate, lease and
Ltd. 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.)
Beijing Electronic Shareholding Co., Ltd. directly held 508,801,304 shares of A share of Electronic City (Stock Code:
600658), which was of 45.49% of the total shares amount of Electronic City; it directly held 49,952,842 shares of A
Controlling share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code:
shareholder’s 002371), which accounted for 9.42% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic
holdings in Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through holding
other listed the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered 33.61% of the
companies at total shares amount of NAURA Technology Group Co., Ltd.; it directly held 420,573,126 shares of A share of Beijing
home or Yandong Microelectronic Co., Ltd. (Stock Code: 688172), which accounted for 35.07% of the total shares of Beijing
abroad in the Yandong Microelectronic Co.,Ltd. Beijing Electronic Shareholding Co., Ltd. directly held 245,055,177 shares of A
Reporting shares of BAIC BluePark New Energy Technology Co.,Ltd. (Stock Code: 600733), which accounted for 4.40% of the
Period total shares of BAIC BluePark New Energy Technology Co.,Ltd. Beijing Electronic Shareholding Co., Ltd. directly
held 26,068,680 shares of A shares of Shanghai New Vision Microelectronics Co., Ltd. (Stock Code: 688593), which
accounted for 5.67% of the total shares of Shanghai New Vision Microelectronics Co., Ltd.
Change of the controlling shareholder in the Reporting Period:
□ Applicable Not applicable
114
BOE Technology Group Co., Ltd. Annual Report 2023
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 management
Type of the actual controller: legal person
Legal
Name of actual representative Date of Unified social credit
Principal activity
controller /person in establishment code
charge
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
Beijing products and investment in business fields
Electronics other than electronics and its management,
Zhang Jinsong 8 April 1997 91110000633647998H
Holdings Co., development of real estate, lease and sales of
Ltd. 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.)
Beijing Electronic Shareholding Co., Ltd. directly held 508,801,304 shares of A share of Electronic City (Stock
Other listed Code: 600658), which was of 45.49% of the total shares amount of Electronic City; it directly held 49,952,842
companies at shares of A share of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock
home or abroad Code: 002371), which accounted for 9.42% of the total shares of NAURA Technology Group Co., Ltd. Beijing
controlled by the Electronic Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd.
actual controller through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which
in the Reporting covered 33.61% of the total shares amount of NAURA Technology Group Co., Ltd.; it directly held 420,573,126
Period shares of A share of Beijing Yandong Microelectronic Co., Ltd. (Stock Code: 688172), which accounted for
35.07% of the total shares of Beijing Yandong Microelectronic Co.,Ltd.
Change of the actual controller during the Reporting Period:
□ Applicable Not applicable
No such cases in the Reporting Period.
Ownership and control relations between the actual controller and the Company:
115
BOE Technology Group Co., Ltd. Annual Report 2023
Note: 1. 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.
2. 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.
3. Beijing BOE Investment & Development Co., Ltd. completed the capital reduction on 1 December 2023 and became the wholly-
owned subsidiary of Beijing Electronics Holdings Co., Ltd.
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the Largest
Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the Company held by
Them
□Applicable Not applicable
5. Other 10% or Greater Corporate Shareholders
Applicable □ Not applicable
Legal
Name of
representative Date of Registered
corporate Principal activity
/person in establishment capital
shareholder
charge
Operation and management of state-owned
capital, investment and investment management;
Beijing State-
assets management; organize the reorganization
owned Capital
as well as the merger and acquisition of the
Operation and Wu Lishun 30 December 2008 RMB50 billion
enterprise assets. (“1. The company shall not
Management
raise funds in any public manner; 2. It shall not
Company Limited
conduct securities products and financial
derivative transactions in any public manner; 3.
116
BOE Technology Group Co., Ltd. Annual Report 2023
It shall not issue loans; 4. It shall not provide
guarantees for enterprises other those it invests
in; 5. It shall not promise any principal guarantee
or minimum return to investors”; (Market
participants independently select the business
activities and carry out the business activities in
accordance with laws and regulations; sales of
food and business activities subject to approval
in accordance with laws and regulations,
operations may be conducted only with the
approval of relevant government authorities;
business activities prohibited and restricted by
the industrial policies of the state and the city.)
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□Applicable Not applicable
IV Specific Implementation of Share Repurchase during the Reporting Period
Progress on any share repurchase
□Applicable Not applicable
Progress on reducing the repurchased shares by means of centralized bidding
□Applicable Not applicable
117
BOE Technology Group Co., Ltd. Annual Report 2023
Part VIII Preference Shares
□ Applicable Not applicable
No preference shares in the Reporting Period.
118
BOE Technology Group Co., Ltd. Annual Report 2023
Part IX Bonds
Applicable □ Not applicable
I 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
Date
Bond Value Coupon Way of Trade
Bond name Abbr. of Maturity Balance
code date rate redemption place
issue
If the issuer
does not
execute its right
in the deferred
interest
2022 Public Offering payment,
of Renewable corresponding
24 25 25
Corporate Bonds of interests shall
22BOEY1 149861 March March March 200,000 3.50% SZSE
BOE (for professional be paid for this
2022 2022 2025
investors) (Digital issue of bonds
Economy) (Phase I) yearly, and the
last installment
of interest shall
be paid with the
redemption of
principal.
Appropriate arrangement of the investors (if
Only for the qualified investors
any)
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 applicable
119
BOE Technology Group Co., Ltd. Annual Report 2023
For 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 have the right to conditionally extend the issue of bonds for
another cycle (3 years) or choose to fully redeem the due bonds at the end of the cycle. The Company has fully redeemed the
"20BOEY1", “20BOEY2" and “20BOEY3" renewable corporate bonds respectively on 28 February 2023, 20 March 2023 and
27 April 2023. As at the date of approval of this report, the Company has not exercised the renewal option of issuer. Additionally,
as the above-mentioned renewable corporate bonds incorporate the option of issuer to postpone interest payment, the Company
has not exercised such option as at the date of approval of this report.
3. Intermediary
Signature Contact person Contact
Bond Intermediary Office address
accountant of intermediary number
2022 Public Offering of
Rm. 2203, North
Renewable Corporate Zhang Huan, Zhu Mingqiang,
China Tower, Shanghai
Bonds of BOE (for Liu Jingyuan, Han Yong, Liao 021-
Securities Co., Securities Plaza,
professional investors) Su Xing, Wang Ling, Xu 68801569
Ltd. 528 Pudong Road
(Digital Economy) (Phase Ting Tianquan
South, Shanghai
I)
2022 Public Offering of
12/F, PICC
Renewable Corporate
China Lianhe Building, No.2
Bonds of BOE (for Li Jie, Sun 010-
Credit Rating Jianwai Street, None
professional investors) Changzheng 85679696
Co., Ltd. Chaoyang District,
(Digital Economy) (Phase
Beijing
I)
Indicate by tick mark whether above intermediary changed in the Reporting Period
□Yes No
4. List of the Usage of the Raised Funds
Unit: RMB’0,000
Whether is
Operation Rectification consistent with
of special of raised the usage, using
Total Amount Unused account for funds for plan and other
Bonds
amount spent amount raised violation agreements
funds (if operation (if stipulated in the
any) any) raising
specification
2022 Public Offering of Renewable
Corporate Bonds of BOE (for
200,000 200,000 0 N/A N/A Yes
professional investors) (Digital
Economy) (Phase I)
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
120
BOE Technology Group Co., Ltd. Annual Report 2023
6. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measures
as well as Influence on Equity of Bond Investors during the Reporting Period
□Applicable Not applicable
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable Not applicable
No such cases in the Reporting Period.
IV Convertible Corporate Bonds
□ Applicable Not applicable
No such cases in the Reporting Period.
V Losses of Scope of Consolidated Financial Statements during the Reporting Period
Exceeding 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 Reporting
Period
□Yes No
VIII The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0,000
31 December
Item 31 December 2023 Change
2022
Current ratio 1.59 1.66 -4.22%
Debt/asset ratio 52.81% 51.96% 0.85%
Quick ratio 1.32 1.39 -5.04%
Item 2023 2022 Change
Net profit before exceptional gains and losses -63,256 -223,811 71.74%
EBITDA/debt ratio 27.05% 25.57% 1.48%
Times interest earned 1.45 1.01 43.56%
Times interest earned of cash 7.68 8.88 -13.51%
EBITDA-to-interest coverage (times) 9.82 9.45 3.92%
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
121
BOE Technology Group Co., Ltd. Annual Report 2023
Part X Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Standard unqualified audit opinion
Date of signing this report 29 March 2024
Name of the independent auditor KPMG Huazhen Certified Public Accountants (LLP)
Reference number of auditor’s report KPMGHZSZ No. 2404989
Name of the certified public accountants Su Xing, Chai Jing
AUDITOR’S REPORT
毕马威华振审字第 2404989 号
The Shareholders of BOE Technology Group Co., Ltd.:
Opinion
We have audited the accompanying financial statements of BOE Technology Group Co., Ltd.
(“BOE”), which comprise the consolidated and company balance sheets as at 31 December
2023, the consolidated and company income statements, the consolidated and company
cash flow statements, the consolidated and company statements of changes in shareholders’
equity for the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects,
the consolidated and company financial position of BOE as at 31 December 2023, and the
consolidated and company financial performance and cash flows of BOE for the year then
ended in accordance with Accounting Standards for Business Enterprises issued by the
Ministry 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 Public
Accountants (“CSAs”). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of BOE in accordance with the China Code of Ethics for Certified Public
Accountants (“the Code”), and we have fulfilled our other ethical responsibilities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
122
BOE Technology Group Co., Ltd. Annual Report 2023
AUDITOR’S REPORT (continued)
毕马威华振审字第 2404989 号
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
Revenue recognition
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 24 and “V. Notes to the
consolidated financial statements” 46.
How the matter was addressed in our
The Key Audit Matter
audit
The revenue of BOE and its subsidiaries Our audit procedures to evaluate revenue
(“BOE Group”) is mainly derived from the recognition included the following:
sales of products relating to display device
across the domestic and overseas market.
Evaluate the design and operation
effectiveness of key internal controls
The sales contracts/orders signed between related to revenue recognition;
BOE Group and its customers (mainly
electronic equipment manufacturers) contain Check key sales contracts/orders on a
various trading terms. BOE Group judges sampling basis to identify relevant trading
the transfer timing of control according to terms, and evaluate whether the
the trading terms, and recognises revenue accounting policies for revenue
accordingly. Depending on the trading recognition of BOE Group meet the
terms, the income is usually recognized requirements of the Enterprise
when the goods are delivered and received, Accounting Standards;
or when they are received by the carrier. On a sampling basis and according to
We identified the recognition of BOE different trading terms, reconcile the
Group’s revenue as a key audit matter revenue recorded in the current year to
because revenue, as one of BOE Group’s relevant supporting files such as relevant
key performance indicators, involves various orders, shipping orders, sales invoices,
trading terms, and there is an inherent risk customs declarations, bills of lading,
that revenue may not be recognised in a delivery receipts, etc. to evaluate whether
correct period. 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;
123
BOE Technology Group Co., Ltd. Annual Report 2023
AUDITOR’S REPORT (continued)
毕马威华振审字第 2404989 号
Key Audit Matters (continued)
Revenue recognition (continued)
Refer to Note III. 24 of the accounting policy to the financial statements and Note V. 46 to to
the consolidated financial statements.
How the matter was addressed in our
The Key Audit Matter
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.
124
BOE Technology Group Co., Ltd. Annual Report 2023
AUDITOR’S REPORT (continued)
毕马威华振审字第 2404989 号
Key Audit Matters (continued)
Impairment of fixed assets and intangible assets
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 20 and “V. Notes to the
consolidated financial statements” 15, 18.
How the matter was addressed in our
The Key Audit Matter audit
BOE Group principally generates revenue Our audit procedures to evaluate
from the production and sale of display impairment of fixed assets and intangible
device. Due to the fluctuation of supply- assets included the following:
demand relationship of display device and
the influence of technology upgrading, the Evaluate management’s identification of
profit level of different production lines suffer asset groups, assessment of impairment
indications, and assess the design and
dramatic fluctuation. As at 31 December
2023, the book value of fixed assets and operation effectiveness of key internal
intangible assets amounted to RMB 221， controls for impairment tests;
937 billion, the judgement on impairment Based on our understanding of BOE
indications and impairment test are material Group’s businesses and relevant
to BOE Group’s financial statements. accounting standards, evaluate
management’s classification basis of
The management classifies asset groups
based on the smallest identifiable group of asset groups and judgement basis of
assets that generates cash inflows that are impairment indications;
independent, and continuously monitors the For asset groups with impairment
trend of market of supply and demand as indications, based on our understanding
well as the technology evolution; of the industry, compare the key
comprehensively judges impairment assumptions in the calculation of
indications of each asset group in recoverable amounts used by
accordance with market trends, operating management with external available data
conditions of production lines and and historical analysis, including future
technological advanced performance, and selling prices, sales volume and discount
performs impairment test on asset groups if rate used by management, evaluate the
any impairment indication exists. key assumptions and estimations used
by the management;
For asset groups with impairment
indications, the management assesses For asset groups with significant
whether the book value of fixed assets and impairment risk, assess the competence,
intangible assets as at 31 December 2023 professional quality and objectivity of
were impaired by calculating the present experts hired by the management; and
value of expected future cash flows. adopt our own valuation experts’ work,
Calculating the present value of expected assess if discount rates used for
future cash flows requires management to estimating the present value of future
make significant judgements, especially for cash flows by management are within the
the estimation of future selling prices, sales range used by other companies in the
volume and applicable discount rate. same industry;
125
BOE Technology Group Co., Ltd. Annual Report 2023
AUDITOR’S REPORT (continued)
毕马威华振审字第 2404989 号
Key Audit Matters (continued)
Impairment of fixed assets and intangible assets (continued)
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 20 and “V. Notes to the
consolidated financial statements” 15, 18.
How the matter was addressed in our
The Key Audit Matter audit
We identified the impairment of fixed assets Our audit procedures to evaluate
and intangible assets as a key audit matter impairment of fixed assets and intangible
because the book value of fixed assets and assets included the following:
intangible assets is significant to the
financial statements; management’s Compare estimations used for calculating
significant judgements and estimations are the present value of expected future cash
involved in assessing the classification basis flows in the previous year by the
of asset groups, existence of impairment management with the actual situation in
indications and impairment test of asset this year to consider the historical
groups with impairment indications, which accuracy of management’s forecast
may exist errors or potential management results;
bias. 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.
126
BOE Technology Group Co., Ltd. Annual Report 2023
AUDITOR’S REPORT (continued)
毕马威华振审字第 2404989 号
Other Information
BOE’s management is responsible for the other information. The other information comprises
all the information included in 2023 annual report of BOE, other than the financial statements
and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with the Accounting Standards for Business Enterprises, and for
the design, implementation and maintenance of such internal control necessary to enable
that the financial statements are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing BOE’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to
liquidate 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 reporting
process.
127
BOE Technology Group Co., Ltd. Annual Report 2023
AUDITOR’S REPORT (continued)
毕马威华振审字第 2404989 号
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’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 a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence 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 and
maintain 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, and
obtain 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 for
one 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 audit
procedures that are appropriate in the circumstances.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on BOE’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are 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 underlying
transactions and events in a manner that achieves fair presentation.
128
BOE Technology Group Co., Ltd. Annual Report 2023
AUDITOR’S REPORT (continued)
毕马威华振审字第 2404989 号
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within BOE to express an opinion on the financial
statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence
and, where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
KPMG Huazhen LLP Certified Public Accountants
Registered in the People’s Republic of China
Su Xing (Engagement Partner)
Beijing, China Chai Jing
29 March 2024
129
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
Assets
Current assets
Cash at bank and on hand V.1 72,467,392,718 68,800,307,369
Financial assets held for trading V.2 7,755,964,495 17,187,993,936
Bills receivable V.3 375,577,011 211,792,061
Accounts receivable V.4 33,365,416,490 28,203,647,569
Receivables financing V.5 408,534,622 -
Prepayments V.6 558,659,780 589,764,680
Other receivables V.7 726,659,207 975,809,236
Inventories V.8 24,119,667,325 22,787,814,225
Contract assets V.9 95,710,742 71,636,461
Non-current assets due within one
year 8,683,381 8,561,307
Other current assets V.10 3,308,338,931 3,394,036,919
Total current assets 143,190,604,702 142,231,363,763
The notes on pages 30 to 175 form part of these financial statements.
1
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Assets (continued)
Non-current assets
Long-term receivables 3,341,844 28,637,449
Long-term equity investments V.11 13,731,696,627 12,421,878,851
Investments in other equity
instruments V.12 494,629,577 483,060,306
Other non-current financial assets V.13 2,253,778,325 2,022,967,681
Investment properties V.14 1,412,553,446 1,122,025,138
Fixed assets V.15 210,371,476,524 205,987,050,430
Construction in progress V.16 29,670,115,546 43,386,134,668
Right-of-use assets V.17 724,344,345 687,120,946
Intangible assets V.18 11,565,585,700 8,948,327,143
Development costs VI.2 166,977,531 -
Goodwill V.19 704,705,586 660,823,651
Long-term deferred expenses V.20 534,494,564 556,941,377
Deferred tax assets V.21 396,877,020 76,013,149
Other non-current assets V.22 3,965,918,458 1,955,521,384
Total non-current assets 275,996,495,093 278,336,502,173
Total assets 419,187,099,795 420,567,865,936
The notes on pages 30 to 175 form part of these financial statements.
2
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Liabilities and shareholders’ equity
Current liabilities
Short-term loans V.23 1,746,184,534 2,373,938,871
Bills payable V.24 919,313,033 870,221,538
Accounts payable V.25 32,977,603,351 29,834,720,464
Advance payments received V.26 94,704,981 79,848,977
Contract liabilities V.27 3,000,168,620 2,411,717,792
Employee benefits payable V.28 3,100,911,276 2,818,532,823
Taxes payable V.29 1,317,080,022 1,331,401,188
Other payables V.30 19,487,760,965 19,632,223,269
Non-current liabilities due within one
year V.31 24,437,027,442 22,703,750,744
Other current liabilities V.32 3,085,773,591 3,613,967,673
Total current liabilities 90,166,527,815 85,670,323,339
The notes on pages 30 to 175 form part of these financial statements.
3
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Liabilities and shareholders’ equity
(continued)
Non-current liabilities
Long-term loans V.33 121,546,339,022 123,143,479,690
Lease liabilities V.34 542,141,496 538,586,010
Long-term payables V.35 171,611,393 229,587,077
Provisions V.36 3,580,000 -
Deferred income V.37 4,763,051,955 5,156,347,332
Deferred tax liabilities V.21 1,694,639,729 1,289,899,658
Other non-current liabilities V.38 2,500,522,066 2,499,075,805
Total non-current liabilities 131,221,885,661 132,856,975,572
Total liabilities 221,388,413,476 218,527,298,911
The notes on pages 30 to 175 form part of these financial statements.
4
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V.39 37,652,529,195 38,196,363,421
Other equity instruments V.40 2,043,402,946 8,176,366,808
Capital reserve V.41 52,113,580,746 55,224,885,675
Less: Treasury shares V.42 462,036,240 3,508,201,911
Other comprehensive income V.43 (1,136,997,224) (1,073,768,030)
Special reserve 66,472,402 -
Surplus reserve V.44 3,571,778,635 3,241,063,934
Retained earnings V.45 35,579,576,607 35,829,465,307
Total equity attributable to
shareholders of the Company 129,428,307,067 136,086,175,204
Non-controlling interests 68,370,379,252 65,954,391,821
Total shareholders’ equity 197,798,686,319 202,040,567,025
Total liabilities and shareholders’ equity 419,187,099,795 420,567,865,936
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
5
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
Assets
Current assets
Cash at bank and on hand 4,255,943,334 7,121,641,234
Accounts receivable XVI.1 4,870,413,096 4,863,665,269
Prepayments 4,807,079 7,045,311
Other receivables XVI.2 28,381,628,538 19,878,145,375
Inventories 19,337,053 15,065,947
Other current assets 126,758,000 57,226,515
Total current assets 37,658,887,100 31,942,789,651
Non-current assets
Long-term equity investments XVI.3 191,109,201,591 214,308,953,020
Investments in other equity 62,020,419 60,434,464
instruments
Other non-current financial assets 1,493,778,324 1,416,072,234
Investment properties 246,605,801 251,870,591
Fixed assets 945,373,523 921,510,043
Construction in progress 612,320,190 616,247,335
Right-of-use assets 86,718,376 126,373,643
Intangible assets 997,974,193 1,122,230,564
Long-term deferred expenses 337,051,031 384,123,386
Other non-current assets 1,740,557,308 1,080,322,988
Total non-current assets 197,631,600,756 220,288,138,268
Total assets 235,290,487,856 252,230,927,919
The notes on pages 30 to 175 form part of these financial statements.
6
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Liabilities and shareholders’ equity
Current liabilities
Accounts payable 566,941,531 312,100,258
Advance payments received 10,542,897 14,819,929
Contract liabilities 74,594 19,200
Employee benefits payable 300,267,423 282,792,422
Taxes payable 279,057,718 139,166,672
Other payables XVI.4 3,515,995,979 4,249,391,146
Non-current liabilities due within one
year 4,029,679,945 2,704,607,119
Other current liabilities 77,354,731 20,283,257
Total current liabilities 8,779,914,818 7,723,180,003
Non-current liabilities
Long-term loans XVI.5 44,053,100,000 39,557,500,000
Lease liabilities 42,482,289 85,830,813
Deferred income 954,798,900 1,933,587,746
Deferred tax liabilities 222,201,768 111,987,272
Other non-current liabilities 79,800,793,681 96,394,661,805
Total non-current liabilities 125,073,376,638 138,083,567,636
Total liabilities 133,853,291,456 145,806,747,639
The notes on pages 30 to 175 form part of these financial statements.
7
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V.39 37,652,529,195 38,196,363,421
Other equity instruments V.40 2,043,402,946 8,176,366,808
Capital reserve XVI.6 51,741,820,724 53,693,627,213
Less: Treasury shares V.42 462,036,240 3,508,201,911
Other comprehensive income XVI.7 (296,433,056) 340,345
Surplus reserve V.44 3,571,778,635 3,241,063,934
Retained earnings XVI.8 7,186,134,196 6,624,620,470
Total shareholders’ equity 101,437,196,400 106,424,180,280
Total liabilities and shareholders’ equity 235,290,487,856 252,230,927,919
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
8
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
I. Operating income V.46 174,543,445,895 178,413,731,179
II. Less: Operating costs V.46 152,633,061,367 157,530,566,152
Taxes and surcharges V.47 1,132,985,865 1,275,171,339
Selling and distribution expenses V.48 3,736,940,205 4,233,290,297
General and administrative
expenses V.49 5,944,875,540 6,247,637,006
Research and development
expenses V.50 11,319,503,088 11,100,768,677
Financial expenses V.51 1,150,310,546 2,445,130,575
Including: Interest expenses 3,536,889,899 3,572,211,438
Interest income 2,032,287,888 1,483,022,892
Add: Other income V.52 4,202,333,156 5,485,529,324
Investment income V.53 810,709,642 6,094,267,884
Including: Income from
investment in
associates and joint
ventures 702,555,344 528,103,680
Gains from changes in fair value V.54 291,542,233 159,344,584
Credit losses V.55 (18,562,198) (51,577,226)
Impairment losses V.56 (2,406,230,634) (7,304,471,630)
Gains from asset disposals V.57 13,090,386 10,965,556
III. Operating profit /(loss) 1,518,651,869 (24,774,375)
Add: Non-operating income V.58 383,996,163 163,242,857
Less: Non-operating expenses V.58 69,649,357 87,249,543
The notes on pages 30 to 175 form part of these financial statements.
9
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
IV. Profit before income tax 1,832,998,675 51,218,939
Less: Income tax expenses V.59 1,463,127,346 1,791,720,662
V. Net profit for the year / (loss) 369,871,329 (1,740,501,723)
Shareholders of the Company 2,547,435,360 7,541,423,198
Non-controlling interests (2,177,564,031) (9,281,924,921)
The notes on pages 30 to 175 form part of these financial statements.
10
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
VI. Other comprehensive income, net of
tax V.43 (18,318,697) (1,158,016,792)
Other comprehensive income (net of
tax) attributable to owners of the
Company (114,919,973) (1,164,537,236)
(1) Items that will not be
reclassified to profit or loss
1. Other comprehensive
income recognised
under equity method (302,258,742) (53,367,649)
2. Changes in fair value of
investments in other
equity instruments 4,408,730 (79,547,426)
(2) Items that may be reclassified
to profit or loss
1. Other comprehensive
income recognised
under equity method 38,009 127,867
2. Translation differences
arising from translation of
foreign currency financial
statements 182,892,030 (1,031,750,028)
Other comprehensive income (net of
tax) attributable to non-controlling
interests 96,601,276 6,520,444
The notes on pages 30 to 175 form part of these financial statements.
11
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
VII. Total comprehensive income for the
year 351,552,632 (2,898,518,515)
Attributable to shareholders of the
Company 2,432,515,387 6,376,885,962
Attributable to non-controlling interests (2,080,962,755) (9,275,404,477)
VIII. Earnings per share:
(1) Basic earnings per share V.60 0.06 0.19
(2) Diluted earnings per share V.60 Not applicable Not applicable
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
12
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company income statement
for the year ended 31 December 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
I. Operating income XVI.9 4,708,465,987 4,873,328,715
II. Less: Operating costs VI.9 12,627,567 10,080,268
Taxes and surcharges 43,605,220 55,342,015
General and administrative
expenses 1,332,250,430 1,348,187,653
Research and development
expenses 2,128,570,079 2,046,032,751
Financial expenses 480,003,968 574,596,105
Including: Interest expenses 545,603,838 631,737,202
Interest income 71,059,318 96,658,931
Add: Other income 951,291,761 948,637,354
Investment income XVI.10 1,991,483,354 1,934,087,931
Including: Income from
investment in
associates and
joint ventures 429,364,809 328,861,860
Gains from changes in fair value 49,498,773 -
Credit losses 5,490,866 (18,126,642)
Losses from asset disposals 5,077,109 -
III. Operating profit 3,714,250,586 3,703,688,566
Add: Non-operating income 3,921,345 6,873,424
Less: Non-operating expenses 6,859,836 26,617,581
IV. Profit before income tax 3,711,312,095 3,683,944,409
Less: Income tax expenses 405,340,309 202,080,897
V. Net profit for the year 3,305,971,786 3,481,863,512
The notes on pages 30 to 175 form part of these financial statements.
13
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company income statement
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
VI. Other comprehensive income, net of
tax XVI.7 (295,598,180) (55,810,525)
(1) Items that will not be reclassified
to profit or loss
1. Other comprehensive income
recognised under equity
method (302,258,742) (53,367,649)
2. Changes in fair value of
investments in other equity
instruments 6,660,562 (2,570,743)
(2) Items that may be reclassified to
profit or loss - 127,867
VII. Total comprehensive income for the
year 3,010,373,606 3,426,052,987
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
14
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
I. Cash flows from operating
activities:
Proceeds from sale of goods and
rendering of services 180,947,736,116 193,327,661,415
Refund of taxes 10,373,888,040 17,259,338,469
Proceeds from other operating
activities V.61(1)a 6,145,484,931 7,397,264,096
Sub-total of cash inflows 197,467,109,087 217,984,263,980
Payment for goods and services (129,474,896,348) (142,617,274,685)
Payment to and for employees (18,253,350,198) (19,821,022,609)
Payment of various taxes (3,823,925,586) (5,394,897,972)
Payment for other operating
activities V.61(1)b (7,613,110,071) (7,129,101,409)
Sub-total of cash outflows (159,165,282,203) (174,962,296,675)
Net cash flows generated from
operating activities V.62(1) 38,301,826,884 43,021,967,305
The notes on pages 30 to 175 form part of these financial statements.
15
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
II. Cash flows from investing activities:
Proceeds from disposal of
investments 70,648,492,540 83,038,823,137
Investment returns received 569,248,170 461,543,173
Net proceeds from disposal of fixed
assets, intangible assets and other
long-term assets 62,750,260 26,645,620
Net proceeds for acquisition of
subsidiaries V.62(2) 59,293,141 -
Net proceeds from disposal of
subsidiaries V.62(2) - 936,758,922
Proceeds from other investing
activities V.61(2) a 3,940,488,690 1,311,942,470
Sub-total of cash inflows 75,280,272,801 85,775,713,322
Payment for acquisition of fixed
assets, intangible assets and other
long-term assets (24,807,796,061) (29,398,245,045)
Payment for acquisition of
investments (79,608,953,781) (92,205,577,385)
Net payment for acquisition of
subsidiaries V.62(2) (165,333,139) -
Net payment for disposal of
subsidiaries V.62(2) - (144,689,766)
Sub-total of cash outflows (104,582,082,981) (121,748,512,196)
Net cash flows used in investing
activities (29,301,810,180) (35,972,798,874)
The notes on pages 30 to 175 form part of these financial statements.
16
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
III. Cash flows from financing activities:
Proceeds from investors 3,291,140,600 2,301,848,242
Including: Proceeds from non-
controlling shareholders
of subsidiaries 3,291,140,600 2,301,848,242
Proceeds from issuance of debentures - 2,000,000,000
Proceeds from borrowings 27,341,860,631 49,812,750,352
Proceeds from other financing
activities V.61(3)a - 771,327,623
Sub-total of cash inflows 30,633,001,231 54,885,926,217
The notes on pages 30 to 175 form part of these financial statements.
17
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
III. Cash flows from financing activities
(continued):
Repayments of borrowings (30,091,893,380) (51,681,667,124)
Payment for redeeming bonds (6,000,000,000) (8,000,000,000)
Payment for dividends or interest (8,306,333,083) (13,828,515,479)
Including: Profits paid to non-
controlling
shareholders of
subsidiaries (72,650,624) (39,388,061)
Payment for other financing activities V.61(3) b (7,896,143,409) (2,548,995,476)
Sub-total of cash outflows (52,294,369,872) (76,059,178,079)
Net cash flow used in financing
activities (21,661,368,641) (21,173,251,862)
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents 372,295,921 1,882,635,112
V. Net decrease in cash and cash
equivalents V.62(1) b (12,289,056,016) (12,241,448,319)
Add: Cash and cash equivalents at
the beginning of the year 64,382,037,764 76,623,486,083
VI. Cash and cash equivalents at the
end of the year V.62(3) 52,092,981,748 64,382,037,764
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
18
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
I. Cash flows from operating
activities:
Proceeds from sale of goods and
rendering of services 4,312,367,550 5,650,186,755
Proceeds from other operating
activities 622,801,775 2,005,413,901
Sub-total of cash inflows 4,935,169,325 7,655,600,656
Payment for goods and services (1,098,622,995) (1,161,216,577)
Payment to and for employees (1,333,331,329) (1,681,332,214)
Payment of various taxes (433,065,340) (676,007,600)
Payment for other operating
activities (1,099,330,089) (452,287,489)
Sub-total of cash outflows (3,964,349,753) (3,970,843,880)
Net cash flows generated from
operating activities XVI.11(1) 970,819,572 3,684,756,776
II. Cash flows from investing
activities:
Proceeds from disposal of
investments 1,200,350,000 330,944,027
Proceeds from disposal of
subsidiaries - -
Investment returns received 955,365,976 1,257,584,843
Net proceeds from disposal of
fixed assets 682,093 241,034
Proceeds from other investing
activities 1,260,912,332 10,546,180,253
Sub-total of cash inflows 3,417,310,401 12,134,950,157
The notes on pages 30 to 175 form part of these financial statements.
19
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
II. Cash flows from investing activities
(continued):
Payment for acquisition of fixed
assets, intangible assets and other
long-term assets (618,917,399) (405,565,299)
Payment for acquisition of investments (16,691,342,703) (3,989,687,433)
Payment for other investing activities (5,468,000,000) (14,117,701,133)
Sub-total of cash outflows (22,778,260,102) (18,512,953,865)
Net cash flows used in investing
activities (19,360,949,701) (6,378,003,708)
III. Cash flows from financing activities:
Proceeds from issuance of debentures - 2,000,000,000
Proceeds from borrowings 10,000,000,000 25,000,000,000
Proceeds from other financing
activities 19,830,000,000 24,936,039,463
Sub-total of cash inflows 29,830,000,000 51,936,039,463
Repayments of borrowings (4,184,100,000) (25,827,547,455)
Payment for redeeming bonds (6,000,000,000) (8,000,000,000)
Payment for dividends and interest (3,751,590,381) (9,842,819,608)
Payment for other financing activities (397,385,776) (4,136,747,868)
Sub-total of cash outflows (14,333,076,157) (47,807,114,931)
Net cash flows generated from
financing activities 15,496,923,843 4,128,924,532
The notes on pages 30 to 175 form part of these financial statements.
20
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
IV. Effect of foreign exchange rate changes
on cash and cash equivalents 30,657,074 76,264,084
V. Net (decrease) / increase in cash and
cash equivalents XVI.11(1) (2,862,549,212) 1,511,941,684
Add: Cash and cash equivalents at the
beginning of the year 7,111,879,033 5,599,937,349
VI. Cash and cash equivalents at the end of
the year XVI.11(2) 4,249,329,821 7,111,879,033
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
21
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2023
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity Less: Treasury comprehensive Retained Non-controlling
Note Share capital instruments Capital reserve shares income Special reserve Surplus reserve earnings Sub-total interests Total
I. Balance at the beginning of the year 38,196,363,421 8,176,366,808 55,224,885,675 3,508,201,911 (1,073,768,030) - 3,241,063,934 35,829,465,307 136,086,175,204 65,954,391,821 202,040,567,025
II. Changes in equity during the year
1. Total comprehensive income - - - - (114,919,973) - - 2,547,435,360 2,432,515,387 (2,080,962,755) 351,552,632
2. Shareholders’ contributions of
capital
(1) Contribution by non-controlling
interests - - - - - - - - - 3,291,140,600 3,291,140,600
(2) Cancellation of treasury V.
shares 39/41/42 (543,834,226) - (2,244,946,976) (2,788,781,202) - - - - - - -
(3) Equity-settled share-based
payments XII - - 309,120,206 (257,384,469) - - - - 566,504,675 22,319,221 588,823,896
(4) Payment for capital of holders
of other equity instruments V. 40 - (5,967,915,094) (32,084,906) - - - - - (6,000,000,000) - (6,000,000,000)
3. Appropriation of profits
(1) Appropriation for surplus
reserve V. 44 - - - - - - 330,597,179 (330,597,179) - - -
(2) Accrued interest on holders of
other equity instruments V. 40 - 118,551,232 - - - - - (118,551,232) - - -
(3) Payment for interest on
holders of other equity
instruments V. 40 - (283,600,000) - - - - - - (283,600,000) - (283,600,000)
(4) Distributions to shareholders V. 45 - - - - - - - (2,296,367,348) (2,296,367,348) (106,934,768) (2,403,302,116)
The notes on pages 30 to 175 form part of these financial statements.
22
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity Less: Treasury comprehensive Retained Non-controlling
Note Share capital instruments Capital reserve shares income Special reserve Surplus reserve earnings Sub-total interests Total
4. Transfers within equity
(1) Transfer of other
comprehensive income to V.
retained earnings 43/44/45 - - - - 51,690,779 - 117,522 (51,808,301) - - -
5. Special reserve
(1) Accrued special reserve - - - - - 209,367,057 - - 209,367,057 42,370,558 251,737,615
(2) Used special reserve - - - - - (142,894,655) - - (142,894,655) (29,280,043) (172,174,698)
6. Others
(1) Other movements in equity
of associates V. 11/41 - - 61,662,689 - - - - - 61,662,689 1,229,195 62,891,884
(2) Others V. 41 - - (1,205,055,942) - - - - - (1,205,055,942) 1,276,105,423 71,049,481
III. Balance at the end of the year 37,652,529,195 2,043,402,946 52,113,580,746 462,036,240 (1,136,997,224) 66,472,402 3,571,778,635 35,579,576,607 129,428,307,067 68,370,379,252 197,798,686,319
These financial statements were approved by the Board of Directors of the Company on 29 March 2024.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
23
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity Less: Treasury comprehensive Retained Non-controlling
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Sub-total interests Total
I. Balance at the beginning of the year 38,445,746,482 14,146,997,427 53,917,609,094 3,415,768,207 113,551,147 2,889,590,205 37,106,514,799 143,204,240,947 74,174,525,569 217,378,766,516
Add: Changes in accounting policies - - - - - - (161,882) (161,882) (6,241,664) (6,403,546)
Adjusted balance at the beginning of the year 38,445,746,482 14,146,997,427 53,917,609,094 3,415,768,207 113,551,147 2,889,590,205 37,106,352,917 143,204,079,065 74,168,283,905 217,372,362,970
II. Changes in equity during the year
1. Total comprehensive income - - - - (1,164,537,236) - 7,541,423,198 6,376,885,962 (9,275,404,477) (2,898,518,515)
2. Shareholders’ contributions of capital
(1) Contribution by non-controlling
interests - - - - - - - - 2,301,848,242 2,301,848,242
(2) Repurchase of treasury shares V. 42 - - - 1,048,154,539 - - - (1,048,154,539) - (1,048,154,539)
V.
(3) Cancellation of treasury shares 39/41/42 (249,383,061) - (641,811,942) (891,195,003) - - - - - -
(4) Equity-settled share-based payments XII - - 654,336,707 (64,525,832) - - - 718,862,539 44,728,854 763,591,393
(5) Contribution by holders of other
equity instruments V. 40 - 1,989,320,755 - - - - - 1,989,320,755 - 1,989,320,755
(6) Payment for capital of holders of
other equity instruments V. 40 - (7,957,047,264) (42,952,736) - - - - (8,000,000,000) - (8,000,000,000)
3. Appropriation of profits
(1) Appropriation for surplus reserve V. 44 - - - - - 348,186,351 (348,186,351) - - -
(2) Accrued interest on holders of other
equity instruments V. 40 - 530,695,890 - - - - (530,695,890) - - -
(3) Payment for interest on holders of
other equity instruments V. 40 - (533,600,000) - - - - - (533,600,000) - (533,600,000)
(4) Distributions to shareholders V. 45 - - - - - - (7,958,923,130) (7,958,923,130) (54,411,212) (8,013,334,342)
The notes on pages 30 to 175 form part of these financial statements.
24
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity Less: Treasury comprehensive Retained Non-controlling
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Sub-total interests Total
4. Transfers within equity
(1) Transfer of other
comprehensive income to
retained earnings V. 43/44/45 - - - - (22,781,941) 3,287,378 19,494,563 - - -
5. Others
(1) Other movements in equity of
associates V. 11/41 - - 274,685,689 - - - - 274,685,689 845,261 275,530,950
(2) Disposal of equities in
subsidiaries V. 41 - - - - - - - - (1,154,255,778) (1,154,255,778)
(3) Others V. 41 - - 1,063,018,863 - - - - 1,063,018,863 (77,242,974) 985,775,889
III. Balance at the end of the year 38,196,363,421 8,176,366,808 55,224,885,675 3,508,201,911 (1,073,768,030) 3,241,063,934 35,829,465,307 136,086,175,204 65,954,391,821 202,040,567,025
These financial statements were approved by the Board of Directors of the Company on 29 March 2024.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
25
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2023
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive Retained
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Total
I. Balance at the beginning of the year 38,196,363,421 8,176,366,808 53,693,627,213 3,508,201,911 340,345 3,241,063,934 6,624,620,470 106,424,180,280
II. Changes in equity during the year
1. Total comprehensive income - - - - (295,598,180) - 3,305,971,786 3,010,373,606
2. Shareholders’ contributions of capital
V.
(1) Cancellation of treasury shares 39/41/42 (543,834,226) - (2,244,946,976) (2,788,781,202) - - - -
(2) Equity-settled share-based payments XII - - 331,439,427 (257,384,469) - - - 588,823,896
(3) Payment for capital of holders of other
equity instruments V. 40 - (5,967,915,094) (32,084,906) - - - - (6,000,000,000)
3. Appropriation of profits
(1) Appropriation for surplus reserve V. 44 - - - - - 330,597,179 (330,597,179) -
(2) Accrued interest on holders of other
equity instruments V. 40 - 118,551,232 - - - - (118,551,232) -
(3) Payment for interest on holders of other
equity instruments V. 40 - (283,600,000) - - - - - (283,600,000)
(4) Distributions to shareholders V. 45 - - - - - - (2,296,367,348) (2,296,367,348)
The notes on pages 30 to 175 form part of these financial statements.
26
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2023 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive Retained
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Total
4. Transfers within equity
(1) Transfer of other comprehensive income to
retained earnings XVI. 7/8 - - - - (1,175,221) 117,522 1,057,699 -
5. Others
(1) Other movements in equity of associates XVI. 3/6 - - (6,214,034) - - - - (6,214,034)
III. Balance at the end of the year 37,652,529,195 2,043,402,946 51,741,820,724 462,036,240 (296,433,056) 3,571,778,635 7,186,134,196 101,437,196,400
These financial statements were approved by the Board of Directors of the Company on 29 March 2024.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
27
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive Retained
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Total
I. Balance at the beginning of the year 38,445,746,482 14,146,997,427 53,598,033,152 3,415,768,207 89,024,650 2,889,590,205 11,950,975,927 117,704,599,636
II. Changes in equity during the year
1. Total comprehensive income - - - - (55,810,525) - 3,481,863,512 3,426,052,987
2. Shareholders’ contributions of capital
(1) Repurchase of treasury shares V. 42 - - - 1,048,154,539 - - - (1,048,154,539)
(2) Cancellation of treasury shares V. 39/41/42 (249,383,061) - (641,811,942) (891,195,003) - - - -
(3) Equity-settled share-based payments XII - - 699,065,561 (64,525,832) - - - 763,591,393
(4) Contribution by holders of other equity
instruments V. 40 - 1,989,320,755 - - - - - 1,989,320,755
(5) Payment for capital of holders of other
equity instruments V. 40 - (7,957,047,264) (42,952,736) - - - - (8,000,000,000)
3. Appropriation of profits
(1) Appropriation for surplus reserve V. 44 - - - - - 348,186,351 (348,186,351) -
(2) Accrued interest on holders of other
equity instruments V. 40 - 530,695,890 - - - - (530,695,890) -
(3) Payment for interest on holders of
other equity instruments V. 40 - (533,600,000) - - - - - (533,600,000)
(4) Distributions to shareholders V. 45 - - - - - - (7,958,923,130) (7,958,923,130)
The notes on pages 30 to 175 form part of these financial statements.
28
BOE Technology Group Co., Ltd. Annual Report 2023
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive Retained
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Total
4. Transfers within equity
(1) Transfer of other comprehensive
income to retained earnings XVI. 7/8 - - - - (32,873,780) 3,287,378 29,586,402 -
5. Others
(1) Other movements in equity of
associates XVI. 3/6 - - 141,386,796 - - - - 141,386,796
(2) Others - - (60,093,618) - - - - (60,093,618)
III. Balance at the end of the year 38,196,363,421 8,176,366,808 53,693,627,213 3,508,201,911 340,345 3,241,063,934 6,624,620,470 106,424,180,280
These financial statements were approved by the Board of Directors of the Company on 29 March 2024.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
29
BOE Technology Group Co., Ltd.
Notes to the financial statements
(Expressed in Renminbi Yuan unless otherwise indicated)
I. Company status
BOE Technology Group Company Limited (the “Company”) is a company limited by shares
established on 9 April 1993 in Beijing, with its head office located at Beijing. The parent of
the Company and the Company’s ultimate holding company is Beijing Electronics Holdings
Co., Ltd. (“Electronics Holdings”).
The Company and its subsidiaries (referred to as the “Group”) comprise five main business
segments: display business, Internet of Things (IoT) innovation business, sensor business,
MLED business, smart medicine engineering business and others. For information about the
subsidiaries of the Company, refer to Note VIII.
II. Basis of preparation
The financial statements have been prepared on the going concern basis.
III. Significant accounting policies and accounting estimates
1 Statement of compliance
The financial statements have been prepared in accordance with the requirements of
Accounting Standards for Business Enterprises or referred to as China Accounting
Standards (“CAS”) issued by the MOF. These financial statements present truly and
completely the consolidated financial position and financial position of the Company as at 31
December 2023, and the consolidated financial performance and financial performance and
the 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 on
the Preparation of Information Disclosures by Companies Issuing Securities, No. 15: General
Requirements for Financial Reports” as revised by the China Securities Regulatory
Commission (“CSRC”) in 2023.
2 Accounting period
The accounting period is from 1 January to 31 December.
3 Operating cycle
The Company takes the period from the acquisition of assets for processing to until the
ultimate realisation of cash or cash equivalents as a normal operating cycle. The operating
cycle of the Company is usually less than 12 months.
30
4 Functional currency
The Company’s functional currency is Renminbi and these financial statements are
presented in Renminbi. Functional currency is determined by the Company and its
subsidiaries on the basis of the currency in which major income and costs are denominated
and settled. Some of the Company’s subsidiaries have functional currencies that are different
from the Company’s functional currency. Their financial statements have been translated
based on the accounting policy set out in Note III (9).
5 Method used to determine the materiality threshold and the basis for selection
Items Materiality threshold
Significant receivables for which provisions for Amount of the individual accounts receivable ≥
bad and doubtful are individually assessed
RMB50 million
recoveries or reversals and written-offs
Significant prepayments, contract liabilities, Amount of the individual prepayments exceeds 0.5%
accounts payable and other payables with of the Group’s total assets
ageing of more than one year
Significant construction projects in progress Accumulated carrying amount of individual item at the
end of the period exceeds RMB10 billion
Significant non-wholly-owned subsidiaries ， Total assets of non-wholly-owned subsidiaries exceed
10% of the Group’s total assets or total revenue of
joint ventures or associates
non-wholly-owned subsidiaries exceed 10% of the
Group’s total revenue
Significant capitalised R&D projects Accumulated expenditure of individual R&D project
exceeds 0.5% of the Group’s total assets
6 Accounting treatments for business combinations involving entities under common control
and not under common control
A transaction constitutes a business combination when the Group obtains control of one or
more entities (or a group of assets or net assets). Business combination is classified as
either business combinations involving enterprises under common control or business
combinations not involving enterprises under common control.
For a transaction not involving enterprises under common control, the acquirer determines
whether acquired set of assets constitute a business. The Group may elect to apply the
simplified assessment method, the concentration test, to determine whether an acquired set
of assets is not a business. If the concentration test is met and the set of assets is
determined not to be a business, no further assessment is needed. If the concentration test
is not met, the Group shall perform the assessment according to the guidance on the
determination of a business.
When the set of assets the group acquired does not constitute a business, acquisition costs
should be allocated to each identifiable assets and liabilities at their acquisition date fair
values. It is not required to apply the accounting of business combination described as
below.
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business combination in
which all of the combining entities are ultimately controlled by the same party or parties both
before and after the business combination, and that control is not transitory. The assets
acquired and liabilities assumed are measured based on their carrying amounts in the
31
consolidated financial statements of the ultimate controlling party at the combination date.
The difference between the carrying amount of the net assets acquired and the consideration
paid for the combination (or the total par value of shares issued) is adjusted against share
premium in the capital reserve, with any excess adjusted against retained earnings. Any
costs 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 other
combining entities.
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business
combination in which all of the combining entities are not ultimately controlled by the same
party or parties both before and after the business combination. Where (1) the aggregate of
the acquisition-date fair value of assets transferred (including the acquirer’s previously held
equity interest in the acquiree), liabilities incurred or assumed, and equity securities issued
by the acquirer, in exchange for control of the acquiree, exceeds (2) the acquirer’s interest in
the acquisition-date fair value of the acquiree’s identifiable net assets, the difference is
recognised as goodwill (see Note III.18). If (1) is less than (2), the difference is recognised in
profit or loss for the current period. The costs of issuing equity or debt securities as a part of
the consideration for the acquisition are included in the carrying amounts of these equity or
debt securities upon initial recognition. Other acquisition-related costs are expensed when
incurred. Any difference between the fair value and the carrying amount of the assets
transferred 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 the
Group at their acquisition-date fair value. The acquisition date is the date on which the
acquirer obtains control of the acquiree.
32
For a business combination involving entities not under common control and achieved in
stages, the Group remeasures its previously-held equity interest in the acquiree to its
acquisition-date fair value and recognises any resulting difference between the fair value and
the carrying amount as investment income or other comprehensive income for the current
period. In addition, any amount recognised in other comprehensive income and other
changes in the owners’ equity under equity accounting in prior reporting periods relating to
the previously-held equity interest that may be reclassified to profit or loss are transferred to
investment income at the date of acquisition (see Note III.12(2)(b)); Any previously-held
equity interest that is designated as equity investment at fair value through other
comprehensive income, the other comprehensive income recognised in prior reporting
periods is transferred to retained earnings and surplus reserve at the date of acquisition.
7 Consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the consolidated
financial statements comprise the Company and its subsidiaries. Control exists when the
investor has all of following: power over the investee; exposure, or rights, to variable returns
from its involvement with the investee and has the ability to affect those returns through its
power over the investee. When assessing whether the Group has power, only substantive
rights (held by the Group and other parties) are considered. The financial position, financial
performance and cash flows of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.
Non-controlling interests are presented separately in the consolidated balance sheet within
shareholders’ equity. Net profit or loss attributable to non-controlling shareholders is
presented separately in the consolidated income statement below the net profit line item.
Total comprehensive income attributable to non-controlling shareholders is presented
separately in the consolidated income statement below the total comprehensive income line
item.
When the amount of loss for the current period attributable to the non-controlling
shareholders of a subsidiary exceeds the non-controlling shareholders’ share of the opening
owners’ equity of the subsidiary, the excess is still allocated against the non-controlling
interests.
When the accounting period or accounting policies of a subsidiary are different from those of
the Company, the Company makes necessary adjustments to the financial statements of the
subsidiary 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-group
transactions, are eliminated when preparing the consolidated financial statements.
Unrealised losses resulting from intra-group transactions are eliminated in the same way as
unrealised gains, unless they represent impairment losses that are recognised in the
financial statements.
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period, through a business
combination involving entities under common control, the financial statements of the
subsidiary are included in the consolidated financial statements based on the carrying
amounts of the assets and liabilities of the subsidiary in the financial statements of the
ultimate controlling party as if the combination had occurred at the date that the ultimate
controlling party first obtained control. The opening balances and the comparative figures of
the consolidated financial statements are also restated.
Where a subsidiary was acquired during the reporting period, through a business
combination involving entities not under common control, the identifiable assets and liabilities
of the acquired subsidiaries are included in the scope of consolidation from the date that
control commences, based on the fair value of those identifiable assets and liabilities at the
acquisition date.
33
(3) Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or losses are
recognised 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 are
also recognised as investment income for the current period.
When the Group loses control of a subsidiary in multiple transactions in which it disposes of
its long-term equity investment in the subsidiary in stages, the following are considered to
determine whether the Group should account for the multiple transactions as a bundled
transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- arrangements work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least one other
arrangement;
- one arrangement considered on its own is not economically justified, but it is economically
justified when considered together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, the
transactions conducted before the loss of control of the subsidiary are accounted for in
accordance with the accounting policy for partial disposal of equity investment in subsidiaries
where control is retained (see Note III.7(4)).
If each of the multiple transactions forms part of a bundled transaction which eventually
results in the loss of control in the subsidiary, these multiple transactions are accounted for
as a single transaction. In the consolidated financial statements, the difference between the
consideration received and the corresponding proportion of the subsidiary’s net assets
(calculated continuously from the acquisition date) in each transaction prior to the loss of
control shall be recognised in other comprehensive income and transferred to profit or loss
when the parent eventually loses control of the subsidiary.
(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling
shareholders or disposes of a portion of an interest in a subsidiary without a change in
control, the difference between the proportion interests of the subsidiary’s net assets being
acquired or disposed and the amount of the consideration paid or received is adjusted to the
capital reserve (share premium) in the consolidated balance sheet, with any excess adjusted
to retained earnings.
8 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily withdraw on
demand, and short-term, highly liquid investments that are readily convertible into known
amounts of cash and are subject to an insignificant risk of change in value.
34
9 Foreign currency transactions and translation of foreign currency financial statements
When the Group receives capital in foreign currencies from investors, the capital is translated
to Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency
transactions are, on initial recognition, translated to Renminbi at the spot exchange rates on
the dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot
exchange rate at the balance sheet date. The resulting exchange differences are generally
recognised in profit or loss, unless they arise from the re-translation of the principal and
interest of specific borrowings for the acquisition and construction of qualifying assets (see
Note III.16). Non-monetary items that are measured at historical cost in foreign currencies
are translated to Renminbi using the exchange rate at the transaction date. Non-monetary
items that are measured at fair value in foreign currencies are translated using the exchange
rate at the date the fair value is determined. The resulting exchange differences are
recognised in profit or loss, except for the differences arising from the re-translation of equity
investments at fair value through other comprehensive income, which are recognised in other
comprehensive income.
In translating the financial statements of a foreign operation, assets and liabilities of foreign
operation are translated to Renminbi at the spot exchange rate at the balance sheet date.
Equity items, excluding retained earnings and the translation differences in other
comprehensive income, are translated to Renminbi at the spot exchange rates at the
transaction dates. Income and expenses of foreign operation are translated to Renminbi at
the rates that approximate the spot exchange rates at the transaction dates. The resulting
translation differences are recognised in other comprehensive income. The translation
differences accumulated in shareholders’ equity with respect to a foreign operation are
transferred to profit or loss in the period when the foreign operation is disposed.
10 Financial instruments
Financial instruments include cash at bank and on hand, investments in debt and equity
securities other than those classified as long-term equity investments (see Note III.12),
receivables, payables, loans and borrowings, debentures payable and share capital.
(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Group
becomes a party to the contractual provisions of a financial instrument.
A financial or financial liability is measured initially at fair value. For financial assets and
financial liabilities at fair value through profit or loss, any related directly attributable
transaction costs are charged to profit or loss; for other categories of financial assets and
financial liabilities, any related directly attributable transaction costs are included in their
initial costs. A trade receivable, without significant financing component or practical
expedient applied for one year or less contracts, is initially measured at the transaction price
in accordance with Note III.24.
35
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in which
a financial asset is managed and its contractual cash flow characteristics. On initial
recognition, a financial asset is classified as measured at amortised cost, at fair value
through other comprehensive income (“FVOCI”), or at fair value through profit or loss
(“FVTPL”).
Financial assets are not reclassified subsequent to their initial recognition unless the
Group changes its business model for managing financial assets in which case all
affected financial assets are reclassified on the first day of the first reporting period
following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following
conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect
contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and
is not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may
irrevocably elect to present subsequent changes in the investment’s fair value in other
comprehensive 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 as
described above are measured at FVTPL. On initial recognition, the Group may
irrevocably designate a financial asset that otherwise meets the requirements to be
measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.
36
The business model refers to how the Group manages its financial assets in order to
generate cash flows. That is, the Group’s business model determines whether cash
flows will result from collecting contractual cash flows, selling financial assets or both.
The Group determines the business model for managing the financial assets according
to the facts and based on the specific business objective for managing the financial
assets determined by the Group’s key management personnel.
In assessing whether the contractual cash flows are solely payments of principal and
interest, the Group considers the contractual terms of the instrument. For the purposes
of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial
recognition. ‘Interest’ is defined as consideration for the time value of money and for
the credit risk associated with the principal amount outstanding during a particular
period 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 that
could change the timing or amount of contractual cash flows such that it would not
meet this condition.
(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and
losses, including any interest or dividend income, are recognised in profit or loss
unless the financial assets are part of a hedging relationship.
- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective
interest method. A gain or loss on a financial asset that is measured at amortised
cost and is not part of a hedging relationship shall be recognised in profit or loss
when the financial asset is derecognised, reclassified, through the amortisation
process or in order to recognise impairment gains or losses.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated
using the effective interest method, impairment and foreign exchange gains and
losses are recognised in profit or loss. Other net gains and losses are recognised in
other comprehensive income. On derecognition, gains and losses accumulated in
other comprehensive income are reclassified to profit or loss.
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as
income in profit or loss. Other net gains and losses are recognised in other
comprehensive income. On derecognition, gains and losses accumulated in other
comprehensive income are reclassified to retained earnings.
37
(3) Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including
derivative financial liability) or it is designated as such on initial recognition.
Financial liabilities at FVTPL are subsequently measured at fair value and net gains and
losses, including any interest expense, are recognised in profit or loss, unless the financial
liabilities are part of a hedging relationship.
- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effective
interest method.
(4) Offsetting
Financial assets and financial liabilities are generally presented separately in the balance
sheet, and are not offset. However, a financial asset and a financial liability are offset and the
net amount is presented in the balance sheet when both of the following conditions are
satisfied:
- The Group currently has a legally enforceable right to set off the recognised amounts；
- The Group intends either to settle on a net basis, or to realise the financial asset and
settle the financial liability simultaneously.
(5) Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or；
- the financial asset has been transferred, although the Group neither transfers nor retains
substantially all of the risks and rewards of ownership of the financial asset, it does not
retain control over the transferred asset.
Where a transfer of a financial asset in its entirety meets the criteria for derecognition, the
difference between the two amounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of
derecognition;
- the sum of the consideration received from the transfer and, when the transferred financial
asset is a debt investment at FVOCI, any cumulative gain or loss that has been
recognised directly in other comprehensive income for the part derecognised.
38
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 at
FVTPL, equity securities designated at FVOCI and derivative financial assets, are not subject
to the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the
entity in accordance with the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period
(including extension options) over which the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life
of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible
within the 12 months after the balance sheet date (or a shorter period if the expected life of
the instrument is less than 12 months).
Loss allowances for bills receivable, accounts receivable, receivables under financing and
contract assets arising from ordinary business activities such as sale of goods and provision
of services, as well as lease receivables arising from lease transactions are always
measured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimated
using a provision matrix based on the Group’s historical credit loss experience, adjusted for
factors that are specific to the debtors and an assessment of both the current and forecast
general economic conditions at the balance sheet date.
Except for bills receivable, accounts receivable, receivables under financing, contract assets,
and lease receivables, the Group measures loss allowances at an amount equal to 12-month
ECLs for the following financial instruments, and at an amount equal to lifetime ECLs for all
other financial instruments:
- If the financial instrument is determined to have low credit risk at the balance sheet date;
- If the credit risk on a financial instrument has not increased significantly since initial
recognition.
Provisions for bad and doubtful debts arising from receivables
Categories of groups for collective assessment based on credit risk characteristics and basis
for determination
39
Item classification of partition and combination
Bills receivable Based on the different credit risk characteristics of acceptors,
the Group classifies bills receivable into two groups: bank
acceptance bills and commercial acceptance bills.
Accounts Historically, there is no significant difference in terms of
receivable occurrence of losses among different customer types for the
Group. Therefore, the Group classifies accounts receivable
into three groups, specifically: receivables from customers with
high credit risk, receivables from customers with low credit risk
and receivables from customers with medium credit risk.
Receivables The Group’s receivables under financing are bank acceptance
under financing bills held for dual purposes. As the accepting banks have high
credit ratings, the Group considers all receivables under
financing as a single group.
Other receivables The Group’s other receivables mainly include cash pledges
and deposits receivable, petty cash receivables due from
employees, receivables due from related parties, dividends
receivable, etc. Based on the nature of receivables and the
credit risk characteristics of different counterparties, the Group
classifies other receivables into three groups, specifically:
receivables with high credit risk, receivables with low credit
risk and receivables with medium credit risk.
Contract assets Historically, there is no significant difference in terms of
occurrence of losses among different customer types for the
Group. Therefore, the Group makes provisions for bad and
doubtful debts arising from contract assets on the basis of all
customers being one group without further segmentation by
different customer types.
Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a low
risk of default, the borrower has a strong capacity to meet its contractual cash flow
obligations in the near term and adverse changes in economic and business conditions in the
longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its
contractual cash flow obligations.
40
Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly since
initial recognition, the Group compares the risk of default occurring on the financial
instrument assessed at the balance sheet date with that assessed at the date of initial
recognition.
When determining whether the credit risk of a financial asset has increased significantly
since initial recognition and when estimating ECL, the Group considers reasonable and
supportable information that is relevant and available without undue cost or effort, including
forward-looking information. In particular, the following information is taken into account:
- failure to make payments of principal or interest on their contractually due dates;
- an actual or expected significant deterioration in a financial instrument’s external or
internal credit rating (if available);
- an actual or expected significant deterioration in the operating results of the debtor; and
- existing or forecast changes in the technological, market, economic or legal environment
that have a significant adverse effect on the debtor’s ability to meet its obligation to the
Group.
Depending on the nature of the financial instruments, the assessment of a significant
increase in credit risk is performed on either an individual basis or a collective basis. When
the assessment is performed on a collective basis, the financial instruments are grouped
based on shared credit risk characteristics, such as past due status and credit risk ratings.
The Group assumes that the credit risk on a financial asset has increased significantly if it is
more than 30 days past due.
Credit-impaired financial assets
At each balance sheet date, the Group assesses whether financial assets carried at
amortised cost and debt investments at FVOCI are credit-impaired. A financial asset is
‘credit-impaired’ when one or more events that have a detrimental impact on the estimated
future cash flows of the financial asset have occurred. Evidence that a financial asset is
credit-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, the
Group 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 financial
difficulties.
Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financial
instrument’s credit risk since initial recognition. Any change in the ECL amount is recognised
as an impairment gain or loss in profit or loss. The Group recognises an impairment gain or
loss for all financial instruments with a corresponding adjustment to their carrying amount
through a loss allowance account, except for debt investments that are measured at FVOCI,
for which the loss allowance is recognised in other comprehensive income,other than
offsetting the carrying amount.
41
Write-off
The gross carrying amount of a financial asset is written-off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition
event. This is generally the case when the Group determines that the debtor does not have
assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. However, financial assets that are written-off could still be subject to
enforcement activities in order to comply with the Group’s procedures for recovery of
amounts due.
Subsequent recoveries of an asset that was previously written-off are recognised as a
reversal of impairment in profit or loss in the period in which the recovery occurs.
(7) Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs
is recognised in shareholders’ equity. Consideration and transaction costs paid by the
Company for repurchasing self-issued equity instruments are deducted from shareholders’
equity.
When the Company repurchases its own shares, those shares are treated as treasury
shares. All expenditure relating to the repurchase is recorded in the cost of the treasury
shares, with the transaction recording in the share register. Treasury shares are excluded
from profit distributions and are presented as a deduction under shareholders’ equity in the
balance sheet.
When treasury shares are cancelled, the share capital should be reduced to the extent of the
total par value of the treasury shares cancelled. Where the cost of the treasury shares
cancelled exceeds the total par value, the excess is deducted from capital reserve (share
premium), surplus reserve and retained earnings sequentially. If the cost of treasury shares
cancelled 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 in
capital reserve (share premium); otherwise, the shortfall is deducted against capital reserve
(share premium), surplus reserve and retained earnings sequentially.
(8) Perpetual bonds
At initial recognition, the Group classifies the perpetual bonds issued or their components as
financial assets, financial liabilities or equity instruments based on their contractual terms and
their economic substance after considering the definition of financial assets, financial
liabilities and equity instruments.
Perpetual bonds issued that should be classified as equity instruments are recognised in
equity based on the actual amount received. Any distribution of dividends or interests during
the instruments’ duration is treated as profit appropriation. When the perpetual bonds are
redeemed according to the contractual terms, the redemption price is charged to equity.
42
11 Inventories
(1) Inventory classification
Inventories include raw materials, work in progress, finished goods and reusable materials.
Reusable materials include low-value consumables, packaging materials and other
materials, 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 present
location and condition. In addition to the purchase cost of raw materials, work in progress
and finished goods include direct labour costs and an appropriate allocation of production
overheads.
(2) Issuance valuation methods
Cost of inventories recognised is calculated using the weighted average method.
(3) Inventory system
The Group maintains a perpetual inventory system.
(4) Amortization method for low-value consumables and packing materials
Low-value consumables and working capital materials such as packaging are amortized
using the lump-sum transfer method and are included in the cost of the related assets or in
profit or loss for the current period.
(5) Confirmation criteria and method for provision for obsolete inventories
At the balance sheet date, inventories are carried at the lower of cost and net realisable
value.
Net realisable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale and
relevant taxes. The net realisable value of materials held for use in the production is
measured based on the net realisable value of the finished goods in which they will be
incorporated. The net realisable value of the inventory held to satisfy sales or service
contracts is measured based on the contract price, to the extent of the quantities specified in
sales contracts, and the excess portion of inventories is measured based on general selling
prices.
Any excess of the cost over the net realisable value of each category of inventories is
recognised as a provision for obsolete inventories, and is recognised in profit or loss.
43
12 Long-term equity investments
(1) Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business
combination involving entities under common control is the Company’s share of the
carrying amount of the subsidiary’s equity in the consolidated financial statements of
the ultimate controlling party at the combination date. The difference between the
initial investment cost and the carrying amount of the consideration given is adjusted
to the share premium in the capital reserve, with any excess adjusted to retained
earnings. For a long-term equity investment in a subsidiary acquired through a
business combination achieved in stages which do not form a bundled transaction
and involving entities under common control, the Company determines the initial
cost of the investment in accordance with the above policies. The difference
between this initial cost and the sum of the carrying amount of previously-held
investment and the consideration paid for the shares newly acquired is adjusted to
capital premium in the capital reserve, with any excess adjusted to retained
earnings.
- For a long-term equity investment obtained through a business combination not
involving entities under common control, the initial cost comprises the aggregate of
the fair value of assets transferred, liabilities incurred or assumed, and equity
securities issued by the Company, in exchange for control of the acquiree. For a
long-term equity investment obtained through a business combination not involving
entities under common control and achieved through multiple transactions in stages
which do not form a bundled transaction, the initial cost comprises the carrying
amount of the previously-held equity investment in the acquiree immediately before
the 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 combination
is initially recognised at the amount of cash paid if the Group acquires the
investment by cash, or at the fair value of the equity securities issued if an
investment is acquired by issuing equity securities.
(2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments in
subsidiaries are accounted for using the cost method for subsequent measurement
unless the investment is classified as held for sale (see Note III.31). Except for cash
dividends or profit distributions declared but not yet distributed that have been included
in the price or consideration paid-in obtaining the investments, the Company
recognises its share of the cash dividends or profit distributions declared by the
investee as investment income for the current period.
The investments in subsidiaries are stated in the balance sheet at cost less
accumulated impairment losses.
For the impairment of the investments in subsidiaries, refer to Note III.20.
44
In the Group’s consolidated financial statements, subsidiaries are accounted for in
accordance with the policies described in Note III.7.
(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint
control (see Note III.12(3)) and rights to the net assets of the arrangement.
An associate is an entity over which the Group has significant influence (see Note
III.12(3)).
An investment in a joint venture or an associate is accounted for using the equity
method for subsequent measurement, unless the investment is classified as held for
sale (see Note III.31).
The accounting treatments under the equity method adopted by the Group are as
follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest
in the fair value of the investee’s identifiable net assets at the date of acquisition, the
investment is initially recognised at cost. Where the initial investment cost is less
than the Group’s interest in the fair value of the investee’s identifiable net assets at
the date of acquisition, the investment is initially recognised at the investor’s share
of the fair value of the investee’s identifiable net assets, and the difference is
recognised in profit or loss.
- After the acquisition of the investment, the Group recognises its share of the
investee’s profit or loss and other comprehensive income as investment income or
losses and other comprehensive income respectively, and adjusts the carrying
amount of the investment accordingly. Once the investee declares any cash
dividends or profit distributions, the carrying amount of the investment is reduced by
the amount attributable to the Group. Changes in the Group’s share of the
investee’s owners’ equity, other than those arising from the investee’s net profit or
loss, other comprehensive income or profit distribution (referred to as “other
changes in owners’ equity”), is recognised directly in the Group’s equity, and the
carrying amount of the investment is adjusted accordingly.
- In calculating its share of the investee’s net profits or losses, other comprehensive
income and other changes in owners’ equity, the Group recognises investment
income and other comprehensive income after making appropriate adjustments to
align the accounting policies or accounting periods with those of the Group based on
the 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 its
associates or joint ventures are eliminated to the extent of the Group’s interest in the
associates or joint ventures. Unrealised losses resulting from transactions between
the Group and its associates or joint ventures are eliminated in the same way as
unrealised gains but only to the extent that there is no impairment.
45
- The Group discontinues recognising its share of further losses of the investee after
the carrying amount of the long-term equity investment and any long-term interest
that in substance forms part of the Group’s net investment in the joint venture or
associate is reduced to zero, except to the extent that the Group has an obligation to
assume additional losses. If the joint venture or associate subsequently reports net
profits, the Group resumes recognising its share of those profits only after its share
of the profits has fully covered the share of losses not recognised.
For the impairment of the investments in joint ventures and associates, refer to Note
III.20.
(3) Criteria for determining the existence of joint control or significant influence over an investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists
only when decisions about the relevant activities (activities with significant impact on the
returns of the arrangement) require the unanimous consent of the parties sharing control.
The following factors are usually considered when assessing whether the Group can
exercise joint control over an investee:
- Whether no single participant party is in a position to control the investee’s related
activities unilaterally;
- Whether strategic decisions relating to the investee’s related activities require the
unanimous consent of all participant parties that sharing of control.
Significant influence is the power to participate in the financial and operating policy decisions
of an investee but does not have control or joint control over those policies.
13 Investment properties
Investment properties are properties held either to earn rental income or for capital
appreciation or for both. Investment properties are accounted for using the cost model and
stated in the balance sheet at cost less accumulated depreciation, amortisation and
impairment losses. The cost of investment property, less its estimated residual value and
accumulated impairment losses, is depreciated or amortised using the straight-line method
over its estimated useful life, unless the investment property is classified as held for sale (see
Note III.31). For the impairment of the investment properties, refer to Note III.20.
The estimated useful lives, residual value rates and depreciation rates of each class of
investment properties are as follows:
Estimated useful Residual value rate Depreciation rate
life (years) (%) (%)
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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14 Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in the production of
goods, supply of services, for rental or for administrative purposes with useful lives over one
year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and any
directly attributable expenditure for bringing the asset to working condition for its intended
use. The cost of self-constructed assets is measured in accordance with the policy set out in
Note III.15.
Where the parts of an item of fixed assets have different useful lives or provide benefits to
the Group in a different pattern, thus necessitating use of different depreciation rates or
methods, each part is recognised as a separate fixed asset.
Any subsequent costs including the cost of replacing part of an item of fixed assets are
recognised as assets when it is probable that the economic benefits associated with the
costs 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 as
incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
(2) Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated impairment
losses, is depreciated using the straight-line method over its estimated useful life, unless the
fixed asset is classified as held for sale (see Note III.31).
The estimated useful lives, residual value rates and depreciation rates of each class of fixed
assets are as follows:
Estimated useful Residual value rate Depreciation rate
Class life (years) (%) (%)
Buildings 10 - 50 years 3% - 10% 1.8% - 9.7%
Equipment 2 - 25 years 0 - 10% 3.6% - 50%
Others 2 - 10 years 0 - 10% 9.0% - 50%
Useful lives, residual values and depreciation methods are reviewed at least at each year-
end.
(3) For the impairment of the fixed assets, refer to Note III.20.
(4) Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.
47
Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between the net disposal proceeds and the carrying amount of
the item, and are recognised in profit or loss on the date of retirement or disposal.
15 Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour, capitalised
borrowing costs (see Note III.16), and any other costs directly attributable to bringing the
asset to working condition for its intended use.
A self-constructed asset is classified as construction in progress and transferred to fixed
asset when it is ready for its intended use. No depreciation is provided against construction
in progress.
The criteria according to which, construction projects in progress are transferred to fixed
assets:
Category Criteria for the transfers to fixed assets
Satisfy the acceptance criteria and be available for its predetermined
Plant and buildings readiness for use
Machinery and Installation and commissioning are qualified, and be available for its
equipment
predetermined readiness for use
Construction in progress is stated in the balance sheet at cost less accumulated impairment
losses (see Note III.20).
When an enterprise sells products or by-products produced before a fixed asset is available
for its intended use, 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 the
current period.
16 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition and construction of a
qualifying asset are capitalised as part of the cost of the asset. Other borrowing costs are
recognised as financial expenses when incurred.
During the capitalisation period, the amount of interest (including amortisation of any
discount or premium on borrowing) to be capitalised in each accounting period is determined
as follows:
- Where funds are borrowed specifically for the acquisition and construction of a qualifying
asset, the amount of interest to be capitalised is the interest expense calculated using
effective interest rates during the period less any interest income earned from depositing
the borrowed funds or any investment income on the temporary investment of those funds
before being used on the asset.
- To the extent that the Group borrows funds generally and uses them for the acquisition
and construction of a qualifying asset, the amount of borrowing costs eligible for
capitalisation is determined by applying a capitalisation rate to the weighted average of
the excess amounts of cumulative expenditure on the asset over the above amounts of
specific borrowings. The capitalisation rate is the weighted average of the interest rates
48
applicable to the general-purpose borrowings. The capitalisation rate is the weighted
average of the interest rates applicable to the general-purpose borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated future
cash flow through the expected life of the borrowing or, when appropriate, a shorter period to
the initially recognised amount of the borrowings.
During the capitalisation period, exchange differences related to the principal and interest on
a specific-purpose borrowing denominated in foreign currency are capitalised as part of the
cost of the qualifying asset. The exchange differences related to the principal and interest on
foreign currency borrowings other than a specific-purpose borrowing are recognised as a
financial expense when incurred.
The capitalisation period is the period from the date of commencement of capitalisation of
borrowing costs to the date of cessation of capitalisation, excluding any period over which
capitalisation is suspended. Capitalisation of borrowing costs commences when expenditure
for the asset is being incurred, borrowing costs are being incurred and activities of acquisition
and 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 the
qualifying assets acquired or constructed that are eligible for capitalisation are completed
separately, and each part is available for use in other parts of the construction process or
can be sold externally, and for the purpose of making the parts of the assets ready for use or
necessary for the sales status, the acquisition or construction activities have been
substantially completed, the Group ceases the capitalisation of the borrowing costs related to
the parts of the assets. Capitalisation of borrowing costs is suspended when the acquisition
and construction activities are interrupted abnormally for a period of more than three months.
17 Intangible assets
(1) Estimated useful life and amortisation method
Intangible assets are stated in the balance sheet at cost less accumulated amortisation
(where the estimated useful life is finite) and impairment losses (see Note III.20). For an
intangible asset with finite useful life, its cost less estimated residual value and accumulated
impairment losses is amortised using the straight-line method over its estimated useful life,
unless the intangible asset is classified as held for sale (see Note III.31).
The estimated useful lives, basis for determination and amortisation methods of intangible
assets are as follows:
Basis for Amortisation
Item Estimated useful life (years) determination method
Terms of land use Straight-line
Land use rights 20 - 50 years rights method
Straight-line
Patents and know-how 5 - 20 years Terms of patents method
Straight-line
Computer software 3 - 10 years stimated useful life method
Straight-line
Others 5 - 20 years Estimated useful life method
49
Useful lives and amortisation methods of intangible assets with finite useful life are reviewed
at least at each year-end. An intangible asset is regarded as having an indefinite useful life
and is not amortised when there is no foreseeable limit to the period over which the asset is
expected to generate economic benefits for the Group. At the balance sheet date, the Group
does not have any intangible assets with indefinite useful lives.
(2) The scope of research and development expenditures
The Group aggregates all expenses directly related to R&D activities into R&D expenditures,
which encompass labor costs, material costs, depreciation and amortization, as well as other
miscellaneous expenses. The expenditures on internal research and development projects
within the Group are categorized into two phases: research phase expenditures and
development phase expenditures.
Expenditures in the research phase are recognized as an expense in the current period
when they occur. As for the expenditures in the development phase, if a product or process
developed during this phase is deemed technically and commercially feasible, and the Group
possesses sufficient resources and intention to complete the development work, and the
development phase expenditures can be reliably measured, such expenditures will be
capitalized. Capitalized development expenditures are presented on the balance sheet at
cost less any impairment provision (as per Note 3, Item 20). Other development costs that do
not meet capitalization criteria are recognized as expenses in the period in which they arise.
In instances where products or by-products resulting from the R&D process are sold
externally, the enterprise follows the stipulations outlined in Accounting Standards for
Enterprises No. 14 - Revenue Recognition and No. 1 - Inventories, respectively, to
separately account for the corresponding revenues and costs, ultimately recognizing them as
income or expenses in the current period.
(3) The basis for the classification of internal R&D projects under the research phase and the
development phase
- The phase of planned investigations to acquire new techniques and knowledge should be
identified as the research phase, which is characterised by, among other things, a
planned and exploratory approach.
- The phase of applying research results or other knowledge to a plan or design to produce
new or substantially improved materials, devices, products, etc., prior to commercial
production or use, shall be identified as the development phase, which is characterised by
its relevance and greater likelihood of generating results.
18 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’s
interest in the fair value of the identifiable net assets of the acquiree under a business
combination not involving entities under common control.
Goodwill is not amortised and is stated in the balance sheet at cost less accumulated
impairment losses (see Note III.20). On disposal of an asset group or a set of asset groups,
any attributable goodwill is written-off and included in the calculation of the profit or loss on
disposal.
50
19 Long-term deferred expenses
Long-term deferred expenses are amortised using a straight-line method within the benefit
period. The respective amortisation periods for such expenses are as follows:
Amortisation
Item period (years)
Technology royalty fees prepaid 1 - 11 years
Payment for public facilities construction and use 10 - 15 years
Leasehold improvements 2 - 10 years
Others 2 - 10 years
20 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based
on internal and external sources of information to determine whether there is any indication
of 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, the
Group estimates the recoverable amounts of goodwill at each year-end, irrespective of
whether there is any indication of impairment. Goodwill is allocated to each asset group or
set of asset groups, which is expected to benefit from the synergies of the combination for
the purpose of impairment testing.
The recoverable amount of an asset (or asset group, set of asset groups) is the higher of its
fair value (see Note III.21) less costs to sell and its present value of expected future cash
flows.
An asset group is composed of assets directly related to cash generation and is the smallest
identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or asset groups.
The present value of expected future cash flows of an asset is determined by discounting the
future cash flows, estimated to be derived from continuing use of the asset and from its
ultimate 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 is
less than its carrying amount. A provision for impairment of the asset is recognised
accordingly. Impairment losses related to an asset group or a set of asset groups are
allocated first to reduce the carrying amount of any goodwill allocated to the asset group or
set of asset groups, and then to reduce the carrying amount of the other assets in the asset
group or set of asset groups on a pro rata basis. However, such allocation would not reduce
51
the carrying amount of an asset below the highest of its fair value less costs to sell (if
measurable), its present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
21 Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date.
When measuring fair value, the Group takes into account the characteristics of the particular
asset or liability (including the condition and location of the asset and restrictions, if any, on
the sale or use of the asset) that market participants would consider when pricing the asset
or liability at the measurement date, and uses valuation techniques that are appropriate in
the circumstances and for which sufficient data and other information are available to
measure fair value. Valuation techniques mainly include the market approach, the income
approach and the cost approach.
22 Provisions
A provision is recognised for an obligation related to a contingency if the Group has a
present obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
A provision is initially measured at the best estimate of the expenditure required to settle the
related present obligation. Where the effect of the time value of money is material, provisions
are determined by discounting the expected future cash flows. Factors pertaining to a
contingency such as the risks, uncertainties and time value of money are taken into account
as a whole in reaching the best estimate. Where there is a continuous range of possible
outcomes for the expenditure required, and each possible outcome in that range is as likely
as any other, the best estimate is the mid-point of that range. In other cases, the best
estimate is determined according to the following circumstances:
- Where the contingency involves a single item, the best estimate is the most likely
outcome.
- Where the contingency involves a large population of items, the best estimate is
determined by weighting all possible outcomes by their associated probabilities.
The Group reviews the carrying amount of a provision at the balance sheet date and adjusts
the carrying amount to the current best estimate.
52
23 Share-based payments
(1) Classification of share-based payments
Share-based payment transactions in the Group are equity-settled share-based payments.
(2) Accounting treatment of share-based payments
- Equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for services
received from the employees, the payment is measured at the fair value of the equity
instruments granted to the employees at the grant date. If the equity instruments granted
do not vest until the completion of services for a period, or until the achievement of a
specified performance condition, the Group recognises an amount at each balance sheet
date during the vesting period based on the best estimate of the number of equity
instruments expected to vest according to the newly obtained subsequent information of
the changes of the number of the employees expected to vest the equity instruments. The
Group measures the services received at the grant-date fair value of the equity
instruments and recognises the costs or expenses as the services are received, with a
corresponding increase in capital reserve.
24 Revenue recognition
Revenue is the gross inflow of economic benefits arising in the course of the Group’s
ordinary activities when the inflows result in increase in shareholders’ equity, other than
increase relating to contributions from shareholders.
Revenue is recognised when the Group satisfies the performance obligation in the contract
by 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 each
performance obligation in the contract and allocates the transaction price in proportion to
those stand-alone selling prices. The Group recognises as revenue the amount of the
transaction price that is allocated to each performance obligation. The stand-alone selling
price is the price at which the Group would sell a promised good or service separately to a
customer. If a stand-alone selling price is not directly observable, the Group considers all
information that is reasonably available to the entity, maximises the use of observable inputs
to estimate the stand-alone selling price.
For the contract which the Group grants a customer the option to acquire additional goods or
services (such as, loyalty points, discount coupons for future purchase, etc.,), the Group
assesses whether the option provides a material right to the customer. If the option provides
a material right, the Group recognises the option as a performance obligation, and
recognises revenue when those future goods or services are transferred or when the option
expires. If the stand-alone selling price for a customer’s option to acquire additional goods or
services is not directly observable, the Group estimates it, taking into account all relevant
information, including the difference in the discount that the customer would receive when
exercising the option or without exercising the option, and the likelihood that the option will
be exercised.
53
For the contract with a warranty, the Group analyses the nature of the warranty provided, if
the warranty provides the customer with a distinct service in addition to the assurance that
the product complies with agreed-upon specifications, the Group recognises for the promised
warranty as a performance obligation. Otherwise, the Group accounts for the warranty in
accordance with the requirements of CAS No.13 – Contingencies.
The transaction price is the amount of consideration to which the Group expects to be
entitled in exchange for transferring promised goods or services to a customer, excluding
amounts collected on behalf of third parties. The Group recognises the transaction price only
to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur when the uncertainty associated with the variable
consideration is subsequently resolved. To determine the transaction price for contracts in
which a customer promises consideration in a form other than cash, the Group measures the
non-cash consideration at fair value. If the Group cannot reasonably estimate the fair value
of the non-cash consideration, the Group measures the consideration indirectly by reference
to the stand-alone selling price of the goods or services promised to the customer in
exchange for the consideration. Where the contract contains a significant financing
component, the Group recognises the transaction price at an amount that reflects the price
that a customer would have paid for the promised goods or services if the customer had paid
cash for those goods or services when (or as) they transfer to the customer. The difference
between the amount of promised consideration and the cash selling price is amortised using
an effective interest method over the contract term. The Group does not adjust the
consideration for any effects of a significant financing component if it expects, at contract
inception, that the period between when the Group transfers a promised good or service to a
customer and when the customer pays for that good or service will be one year or less.
The Group satisfies a performance obligation over time if one of the following criteria is met;
or otherwise, a performance obligation is satisfied at a point in time:
- the customer simultaneously receives and consumes the benefits provided by the Group’s
performance as the Group performs;
- the customer can control the asset created or enhanced during the Group’s performance;
or
- the Group’s performance does not create an asset with an alternative use to it and the
Group has an enforceable right to payment for performance completed to date.
For performance obligation satisfied over time, the Group recognises revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. When
the outcome of that performance obligation cannot be measured reasonably, but the Group
expects to recover the costs incurred in satisfying the performance obligation, the Group
recognises revenue only to the extent of the costs incurred until such time that it can
reasonably measure the outcome of the performance obligation.
For performance obligation satisfied at a point in time, the Group recognises revenue at the
point in time at which the customer obtains control of relevant goods or services. To
determine whether a customer has obtained control of goods or services, the Group
considers the following indicators:
- the Group has a present right to payment for the goods or services;
- the Group has transferred physical possession of the goods to the customer;
- the Group has transferred the legal title of the goods or the significant risks and rewards of
ownership of the goods to the customer; and
- the customer has accepted the goods or services.
The Group determines whether it is a principal or an agent, depending on whether it obtains
control of the specified good or service before that good or service is transferred to a
customer. The Group is a principal if it controls the specified good or service before that good
or service is transferred to a customer, and recognises revenue in the gross amount of
consideration to which it has received (or receivable). Otherwise, the Group is an agent, and
recognises revenue in the amount of any fee or commission to which it expects to be entitled.
54
The fee or commission is the net amount of consideration that the Group retains after paying
the other party the consideration, or is the established amount or proportion.
For the sale of a product with a right of return, the Group recognises revenue when the
Group obtains control of that product, in the amount of consideration to which the Group
expects to be entitled in exchange for the product transferred (i.e. excluding the amount of
which expected to be returned), and recognises a refund liability for the products expected to
be returned. Meanwhile, an asset is recognised in the amount of carrying amount of the
product expected to be returned less any expected costs to recover those products (including
potential decreases in the value of returned products), and carry forward to cost in the
amount of carrying amount of the transferred products less the above costs. At the end of
each reporting period, the Group updates its assessment of future sales return. If there is any
change, it is accounted for as a change in accounting estimate.
The Group determines whether the licence transfers to a customer either at a point in time or
over time. If all of the following criteria are met, revenue is recognised for performance
obligations satisfied over time. Otherwise, revenue is recognised for performance obligations
satisfied 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 negative
effects of the Group’s activities; and
- those activities do not result in the transfer of a good or a service to the customer as those
activities occur.
The Group recognises revenue for a sales-based or usage-based royalty promised in
exchange for a licence of intellectual property only when (or as) the later of the following
events occurs:
- the subsequent sale or usage occurs; and
- the performance obligation has been satisfied (or partially satisfied)
For a change in the scope or price of a contract that is approved by the parties to the
contract, the Group accounts for the contract modification according to the following
situations:
- The addition of promised goods or services are distinct and the price of the contract
increases by an amount of consideration reflects stand-alone selling prices of the
additional promised goods or services, the Group shall account for a contract modification
as a separate contract.
- If the above criteria are not met, and the remaining goods or services are distinct from the
goods or services transferred on the date of the contract modification, the Group accounts
for the contract modification as if it were a termination of the existing contract and the
creation of a new contract.
- If the above criteria are not met, and the remaining goods or services are not distinct from
the goods or services transferred on the date of the contract modification, the Group
accounts for the contract modification as if it were a part of the existing contract. The
effect that the contract modification has on the revenue is recognised as an adjustment to
revenue in the reporting period.
55
A contract asset is the Group’s right to consideration in exchange for goods or services that it
has transferred to a customer when that right is conditional on something other than the
passage of time. The Group recognises loss allowances for expected credit loss on contract
assets (see Note III.10(6)). Accounts receivable is the Group’s right to consideration that is
unconditional (only the passage of time is required). A contract liability is the Group’s
obligation to transfer goods or services to a customer for which the Group has received
consideration (or an amount of consideration is due) from the customer.
The following is the description of accounting policies regarding revenue from the Group’s
principal activities:
(1) Sale of goods
The sales contracts/orders signed between the Group and its customers usually
contain various trading terms. Depending on the trading terms, customers obtain
control of the goods when the goods are delivered and received, or when they are
received by the carrier. Revenue of sale of goods is recognised at that point in time.
For the transfer of goods with a right of return, revenue is recognised to the extent that
it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur. Therefore, the amount of revenue recognised is adjusted for
the 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 product
expected to be returned less any expected costs to recover those products (including
potential decreases in the value to the Group of returned products). At each balance
sheet date, the Group updates the measurement of the refund liability for changes in
expectations about the amount of funds. The above asset and liability are adjusted
accordingly.
(2) Rendering of services
The Group recognises the revenue from rendering of services within a certain period of
time according to the progress of the performance as the customer simultaneously
receives and consumes the benefits provided by the Group’s performance as the
Group performs. Otherwise, for performance obligation satisfied at a point in time, the
Group recognises revenue at the point in time at which the customer obtains control of
relevant services.
25 Contract costs
Contract costs are either the incremental costs of obtaining a contract with a customer or the
costs to fulfil a contract with a customer.
Incremental costs of obtaining a contract are those costs that the Group incurs to obtain a
contract with a customer that it would not have incurred if the contract had not been
obtained. The Group recognises as an asset the incremental costs of obtaining a contract
with a customer if it expects to recover those costs. Other costs of obtaining a contract are
expensed when incurred.
If the costs to fulfil a contract with a customer are not within the scope of inventories or other
accounting standards, the Group recognises an asset from the costs incurred to fulfil a
contract only if those costs meet all of the following criteria:
- the costs relate directly to an existing contract or to a specifically identifiable anticipated
contract, including direct labour, direct materials, allocations of overheads (or similar
costs), costs that are explicitly chargeable to the customer and other costs that are
incurred only because the Group entered into the contract
56
- the costs generate or enhance resources of the Group that will be used in satisfying (or in
continuing to satisfy) performance obligations in the future; and
- the costs are expected to be recovered.
Assets recognised for the incremental costs of obtaining a contract and assets recognised for
the costs to fulfil a contract (the “assets related to contract costs”) are amortised on a
systematic basis that is consistent with the transfer to the customer of the goods or services
to 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 carrying
amount of an asset related to contract costs exceeds:
- remaining amount of consideration that the Group expects to receive in exchange for the
goods or services to which the asset relates; less
- the costs that relate directly to providing those goods or services that have not yet been
recognised as expenses.
26 Employee benefits
(1) Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medical
insurance, work injury insurance, maternity insurance and housing fund, measured at the
amount incurred or accrued at the applicable benchmarks and rates, are recognised as a
liability as the employee provides services, with a corresponding charge to profit or loss or
included in 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 Group
participated in a defined contribution basic pension insurance plan and unemployment
insurance plan in the social insurance system established and managed by government
organisations, and annuity plan established by the Group in compliance with the national
policy of the corporation annuity. The Group makes contributions to basic pension and
unemployment insurance plans based on the applicable benchmarks and rates stipulated by
the government. Annuity is accrued based on the gross salaries of the employees. Basic
pension insurance contributions payable are recognised as a liability as the employee
provides services, with a corresponding charge to profit or loss or included in the cost of
assets where appropriate.
(3) Post-employment benefits – defined benefit plans
During the reporting period, the Group did not have defined benefit plans.
(4) Termination benefits
When the Group terminates the employment with employees before the employment
contracts expire, or provides compensation under an offer to encourage employees to accept
voluntary redundancy, a provision is recognised with a corresponding expense in profit or
loss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because of
an employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of
termination benefits and has raised a valid expectation in those affected that it will carry
out the restructuring by starting to implement that plan or announcing its main features to
those affected by it.
57
27 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from
the government to the Group except for capital contributions from the government in the
capacity as an investor in the Group.
A government grant is recognised when there is reasonable assurance that the grant will be
received and that the Group 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 the
amount 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 Group
qualifying 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 write
off related cost based on the nature of economic businesses, or included in non-operating
income and expense in respect of those not related to daily activities of the Company.
With respect to the government grants related to assets, if the Group first obtains
government grants related to assets and then recognizes the long-term assets purchased
and constructed, deferred income is included in profit and loss based on a reasonable and
systematic approach by stages when related assets are initially depreciated or amortized; or
the deferred income is written off against the carrying amount of the asset when the asset
becomes ready for its intended status or intended use. If the Group obtains government
grants related to the assets after relevant long-term assets are put into use, deferred income
is included in profit and loss based on a reasonable and systematic approach by stages
within the remaining useful life of relevant assets, or the deferred income is written off
against the carrying amount of relevant asset when the grants are obtained; the assets shall
be depreciated or amortized based on the carrying amount after being offset and the
remaining useful life of relevant assets.
A grant that compensates the Group for expenses or losses to be incurred in the future is
recognised as deferred income, and included in current income or offset against related
expenses in the periods in which the expenses or losses are recognised. Or included in
current income or offset against the related expenses directly.
In respect of the policy-based preferential loan interest subsidy obtained by the Group, if the
interest subsidy is appropriated to the lending bank which shall provide loans to the Group at
the policy-based preferential interest rate, the actual loan amount is used as the entry value
and relevant borrowing costs are calculated on the basis of the loan principal and the
preferential interest rate. If the interest subsidy is directly appropriated to the Group, relevant
borrowing costs shall be offset by corresponding interest subsidy. If borrowing costs are
capitalized as part of the cost of the asset (see Note III. 16), the interest subsidy shall be
used to offset relevant asset costs.
58
28 Specific reserve
The Group recognises a safety fund in the specific reserve pursuant to relevant government
regulations, with a corresponding increase in the costs of the related products or expenses.
When the safety fund is subsequently used for revenue expenditure, the specific reserve is
reduced accordingly. When the safety fund is subsequently used for the construction or
acquisition of fixed assets, the Group recognises the capitalised expenditure incurred as the
cost of the fixed assets when the related assets are ready for their intended use. In such
cases, the specific reserve is reduced by the amount that corresponds to the cost of the fixed
assets and the credit side is recognised in the accumulated depreciation with respect to the
related fixed assets. Consequently, such fixed assets are not depreciated in subsequent
periods.
29 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they
relate to a business combination or items recognised directly in equity (including other
comprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on taxable
income for the year, plus 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 a
legally enforceable right to set them off and also intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary
differences respectively, being the differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases, which include the deductible
losses and tax credits carried forward to subsequent periods. Deferred tax assets are
recognised to the extent that it is probable that future taxable profits will be available against
which deductible temporary differences can be utilised.
Deferred tax is not recognised for the temporary differences arising from the initial
recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting profit nor taxable profit (or deductible loss). Deferred tax is not
recognised for taxable temporary differences arising from the initial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences that
would follow from the expected manner of recovery or settlement of the carrying amounts of
the assets and liabilities, using tax rates enacted at the balance sheet date that are expected
to be applied in the period when the asset is recovered or the liability is settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is
reduced to the extent that it is no longer probable that the related tax benefits will be utilised.
Such reduction is reversed to the extent that it becomes probable that sufficient taxable
profits will be available.
59
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all of
the following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current
tax assets;
- they relate to income taxes levied by the same tax authority on either:
- the same taxable entity; or
- different taxable entities which intend either to settle the current tax liabilities and
current tax assets on a net basis, or to realise the assets and settle the liabilities
simultaneously, in each future period in which significant amounts of deferred tax
liabilities or deferred tax assets are expected to be settled or recovered.
30 Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an
identified 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, the
Group assesses whether:
- the contract involves the use of an identified asset. An identified asset may be specified
explicitly or implicitly specified in a contract and should be physically distinct, or capacity
portion or other portion of an asset that is not physically distinct but it represents
substantially all of the capacity of the asset and thereby provides the customer with the
right to obtain substantially all of the economic benefits from the use of the asset. If the
supplier has a substantive substitution right throughout the period of use, then the asset is
not identified;
- the lessee has the right to obtain substantially all of the economic benefits from use of the
asset 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 lessor
separate 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 lessor
separate lease components from non-lease components. For a contract that contains lease
and non-lease components, the lessee allocates the consideration in the contract to each
lease component on the basis of the relative stand-alone price of the lease component and
the aggregate stand-alone price of the non-lease components. The lessor allocates the
consideration in the contract in accordance with the accounting policy in Note III.24.
(1) As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement
date. The right-of-use asset is initially measured at cost, which comprises the initial amount
of the lease liability, any lease payments made at or before the commencement date (less
any lease incentives received), any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the site on which it is located or
restore the underlying asset to the condition required by the terms and conditions of the
lease.
60
The right-of-use asset is depreciated using the straight-line method. If the lessee is
reasonably 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 of
the useful life of the right-of-use asset or the end of the lease term. Impairment losses of
right-of-use assets are accounted for in accordance with the accounting policy described in
Note III.20.
The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted using the interest rate implicit in the lease or, if
that rate cannot be readily determined, the Group’s incremental borrowing rate.
A constant periodic rate is used to calculate the interest on the lease liability in each period
during the lease term with a corresponding charge to profit or loss or included in the cost of
assets where appropriate. Variable lease payments not included in the measurement of the
lease liability is charged to profit or loss or included in the cost of assets where appropriate
as incurred.
Under the following circumstances after the commencement date, the Group remeasures
lease liabilities based on the present value 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 rate
used to determine those payments;
- there is a change in the assessment of whether the Group will exercise a purchase,
extension or termination option, or there is a change in the exercise of the extension or
termination option.
When the lease liability is remeasured, a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term
leases that have a lease term of 12 months or less and leases of low-value assets that
specific lease asset as a brand new asset value is less valuable. The Group recognises the
lease payments associated with these leases in profit or loss or as the cost of the assets
where appropriate using the straight-line method or other systematic basis over the lease
term.
(2) As a lessor
The Group determines at lease inception whether each lease is a finance lease or an
operating lease. A lease is classified as a finance lease if it transfers substantially all the
risks and rewards incidental to ownership of an underlying asset irrespective of whether the
legal title to the asset is eventually transferred. An operating lease is a lease other than a
finance lease.
When the Group is a sub-lessor, it assesses the lease classification of a sub-lease with
reference to the right-of-use asset arising from the head lease, not with reference to the
underlying asset. If a head lease is a short-term lease to which the Group applies practical
expedient described above, then it classifies the sub-lease as an operating lease.
61
Under a finance lease, at the commencement date, the Group recognises the finance lease
receivable and derecognises the finance lease asset. The finance lease receivable is initially
measured at an amount equal to the net investment in the lease. The net investment in the
lease is measured at the aggregate of the unguaranteed residual value and the present
value of the lease receivable that are not received at the commencement date, discounted
using the interest rate implicit in the lease.
The Group calculates and recognises interest income for each period of the lease term
based on a fixed periodic interest rate. The derecognition and impairment of the finance
lease receivable are recognised in accordance with the accounting policy in Note III.10.
Variable lease payments not included in the measurement of net investment in the lease are
recognised as income as they are earned.
Lease receipts from operating leases is recognised as income using the straight-line method
or other systematic basis over the lease term. The initial direct costs incurred in respect of
the operating lease are initially capitalised and subsequently amortised in profit or loss over
the lease term on the same basis as the lease income. Variable lease payments not included
in lease receipts are recognised as income as they are earned.
31 Assets held for sale and discontinued operations
(1) Non-current assets or disposal group as held for sale
The Group classified a non-current asset or disposal group as held for sale when the
carrying amount of a non-current asset or disposal group will be recovered through a sale
transaction rather than through continuing use,.
A disposal group refers to a group of assets to be disposed of, by sale or otherwise, together
as a whole in a single transaction and liabilities directly associated with those assets that will
be transferred in the transaction.
A non-current asset or disposal group is classified as held for sale when all the following
criteria are met:
- According to the customary practices of selling such asset or disposal group in similar
transactions, the non-current asset or disposal group must be available for immediate sale
in their present condition subject to terms that are usual and customary for sales of such
assets or disposal groups;
- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and has
obtained a firm 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 carrying
amount and fair value (see Note III.21) less costs to sell (except financial assets (see note
III.10), deferred tax assets (see note III.29). Any excess of the carrying amount over the fair
value (see Note III.21) less costs to sell is recognised as an impairment loss in profit or loss.
(2) Discontinued operations
The Group classifies a component as a discontinued operation either upon disposal of the
operation or when the operation meets the criteria to be classified as held for sale if it is
separately identifiable and satisfies one of the following conditions:
62
- It represents a separate major line of business or a separate geographical area of
operations;
- It is part of a single coordinated plan to dispose of a separate major line of business or a
separate geographical area of operations;
- It is a subsidiary acquired exclusively with a view to resale.
Where an operation is classified as discontinued in the current period, profit or loss from
continuing operations and profit or loss from discontinued operations are separately
presented in the income statement for the current period. The comparative information for
profit or loss from discontinued operations, which used to presented as profit or loss from
continuing operations in the prior period, is re-presented as profit or loss from discontinued
operations in the comparative income statement.
32 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will be
approved after the balance sheet date, are not recognised as a liability at the balance sheet
date but are disclosed in the notes separately.
33 Related parties
If a party has the power to control, jointly control or exercise significant influence over
another party, or vice versa, or where two or more parties are subject to common control or
joint control from another party, they are considered to be related parties. Related parties
may be individuals or enterprises. Enterprises with which the Company is under common
control only from the State and that have no other related party relationships are not
regarded as related parties.
In addition to the related parties stated above, the Company determines related parties
based on the disclosure requirements of Administrative Procedures on the Information
Disclosures of Listed Companies issued by the CSRC.
34 Segment reporting
Reportable segments are identified based on operating segments which are determined
based on the structure of the Group’s internal organisation, management requirements and
internal reporting system after taking the materiality principle into account. Two or more
operating segments may be aggregated into a single operating segment if the segments
have the similar economic characteristics and are same or similar in respect of the nature of
each segment’s products and services, the nature of production processes, the types or
classes of customers for the products and services, the methods used to distribute the
products 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 such
transactions for segment reporting. Segment accounting policies are consistent with those for
the consolidated financial statements.
35 Significant accounting estimates and judgements
The preparation of the financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates as well as underlying assumptions and uncertainties involved are reviewed on an
63
ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
Except for accounting estimates relating to depreciation and amortisation of assets such as
fixed assets and intangible assets (see Notes III.14 and 17) and provision for impairment of
various types of assets (see Notes V.4, 6, 7, 8, 10, 14, 15, 16, 18 and 19). Other significant
accounting estimates are as follows:
(i) Note V.21: Recognition of deferred tax assets;
(ii) Note V.32: Warranty provisions;
(iii) Note X. – Fair value measurements of financial instruments; and
(iv) Note XII: Share-based payments.
Significant judgements made by the Group in the application of accounting policies are as
follows:
(i) Note VIII. 1(1) –Disclosure of significant judgements and assumptions of control and
exercising significant influence over other entities.
36 Changes in significant accounting policies
(1) Description of and reasons for changes in accounting policies
In 2023 the Group has adopted the revised accounting requirements and guidance under
CASs newly issued by the Ministry of Finance (“MOF”)
(a) “The accounting treatment of deferred tax related to assets and liabilities arising from a
single transaction excluded from the scope of the initial recognition exemption” in CAS
Bulletin No.16 (Caikuai [2022] No.31) (“CAS Bulletin No.16”)
According to the provisions, the Group does not apply the initial recognition exemption
under CAS 18 Income Taxes to temporary differences arising from the initial
recognition of assets or liabilities in a single transaction that is not a business
combination, affects neither accounting profits nor taxable profit (or deductible losses)
and gives rise to equal taxable and deductible temporary differences.
In accordance with the above provisions, the Group has made retrospective
adjustments for relevant transactions that occurred between 1 January 2022 and the
date of initial application and to which the provisions apply. For the taxable and
deductible temporary differences arising from the recognition of lease liabilities and
right-of-use assets on 1 January 2022 as a result of the relevant transactions to which
the provisions apply, the Group has recognised the cumulative effect as an adjustment
to the opening balance of retained earnings and other related financial statement items
for the earliest period presented in the financial statements in accordance with the
above provisions and the requirements of CAS 18 Income Tax.
64
(i) The effects on the financial statements
The effects on each of the line items in the consolidated balance sheet as at 31
December 2023 are as follows:
Increase /
(decrease) in the
line items as a
result of applying
new accounting
policies
The Group
Assets:
Deferred tax assets 7,012,197
Liabilities:
Deferred tax liabilities 14,474,660
Shareholders’ equity:
Retained earnings (7,969,365)
Capital reserve (5,874,381)
Non-controlling interests 6,381,283
The effects on each of the line items in the consolidated income statement for the
year ended 31 December 2023 are as follows:
Increase / (decrease)
in the line items as a
result of applying
new accounting
policies
The Group
Profit before income tax -
Less: Income tax expenses 2,267,638
Net profit for the year (2,267,638)
Attributable to: Shareholders of the Company (1,647,109)
Non-controlling interests (620,529)
65
(ii) The effects on the comparative financial statements
The effects of these changes in accounting policies on the net (loss) for the year
ended 31 December 2022, and opening and closing balances of shareholders’
equity as at 1 January and 31 December 2022 are summarised as follows:
The Group
2022 2022
2022
Closing balance of Opening balance of
Net loss
shareholders’ equity shareholders’ equity
Net loss and shareholders’ equity
before adjustments (1,737,175,168) 202,050,297,126 217,378,766,516
Deferred tax related to assets and
liabilities arising from a single
transaction excluded from the
scope of the initial recognition
exemption (3,326,555) (9,730,101) (6,403,546)
Net loss and shareholders’ equity
after adjustments (1,740,501,723) 202,040,567,025 217,372,362,970
The effects on each of the line items in the consolidated balance sheet as at 31
December 2022 are as follows:
The Group
The amounts of
Before adjustments adjustments After adjustments
Assets:
Deferred tax assets 70,250,425 5,762,724 76,013,149
Liabilities:
Deferred tax liabilities 1,274,406,833 15,492,825 1,289,899,658
Shareholders’ equity
Capital reserve 55,218,504,392 6,381,283 55,224,885,675
Retained earnings 35,839,081,781 (9,616,474) 35,829,465,307
Non-controlling interests 65,960,886,731 (6,494,910) 65,954,391,821
The effects on each of the line items in the consolidated income statement for the
year ended 31 December 2022 are as follows:
The Group
The amounts of
Before adjustments adjustments After adjustments
Profit before income tax 51,218,939 - 51,218,939
Less: Income tax expenses 1,788,394,107 3,326,555 1,791,720,662
Net profit for the year (1,737,175,168) (3,326,555) (1,740,501,723)
Attributable to: Shareholders of the
Company 7,550,877,790 (9,454,592) 7,541,423,198
Non-controlling interests (9,288,052,958) 6,128,037 (9,281,924,921)
66
(iii) After retrospective adjustments of the above accounting policy changes, the
consolidated balance sheet as at 1 January 2022 are as follows:
The Group
Assets
Current assets:
Cash at bank and on hand 80,986,835,088
Financial assets held for trading 10,028,172,853
Bills receivable 217,734,298
Accounts receivable 35,503,414,820
Prepayments 1,112,880,007
Other receivables 1,922,828,378
Inventories 27,805,161,436
Contract assets 75,698,324
Non-current assets due within one year 7,700,735
Other current assets 3,578,919,710
Total current assets 161,239,345,649
Non-current assets:
Long-term receivables 29,918,542
Long-term equity investments 6,040,948,317
Investments in other equity instruments 519,088,146
Other non-current financial assets 606,895,447
Investment properties 1,158,365,401
Fixed assets 227,141,366,884
Construction in progress 32,099,711,879
Right-of-use assets 753,164,237
Intangible assets 11,209,498,406
Goodwill 1,130,006,987
Long-term deferred expenses 636,530,502
Deferred tax assets 198,375,250
Other non-current assets 7,477,427,483
Total non-current assets 289,001,297,481
Total assets 450,240,643,130
67
The Group
Liabilities and shareholders’ equity
Current liabilities:
Short-term loans 2,072,057,332
Bills payable 827,958,031
Accounts payable 32,455,830,694
Advance payments received 146,140,084
Contract liabilities 3,765,081,554
Employee benefits payable 5,133,155,237
Taxes payable 2,200,249,305
Other payables 23,835,374,942
Non-current liabilities due within one year 28,874,958,714
Other current liabilities 4,051,532,509
Total current liabilities 103,362,338,402
Non-current liabilities:
Long-term loans 116,078,666,587
Debentures payable 359,586,437
Lease liabilities 669,130,264
Long-term payables 906,592,838
Deferred income 6,416,089,611
Deferred tax liabilities 1,540,066,145
Other non-current liabilities 3,535,809,876
Total non-current liabilities 129,505,941,758
Total liabilities 232,868,280,160
The Group
Shareholders’ equity:
Share capital 38,445,746,482
Other equity instruments 14,146,997,427
Capital reserve 53,917,609,094
Less: Treasury shares 3,415,768,207
Other comprehensive income 113,551,147
Surplus reserve 2,889,590,205
Retained earnings 37,106,352,917
Total equity attributable to shareholders of the Company 143,204,079,065
Non-controlling interests 74,168,283,905
Total shareholders’ equity 217,372,362,970
Total liabilities and shareholders’ equity 450,240,643,130
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IV. Taxation
1 Main types of taxes and corresponding tax rates
Tax type Tax basis Tax rate
Output VAT is calculated on product sales and
Value-added tax taxable services revenue. The basis for VAT payable
6%, 9%, 13%
(VAT) is to deduct input VAT from the output VAT for the
period
City maintenance Based on VAT paid, VAT exemption and offset for the
7%, 5%
and construction tax period
Education
surcharges and Based on VAT paid, VAT exemption and offset for the
3%, 2%
local education period
surcharges
Corporate income
Based on taxable profits 15% - 30%
tax
2 Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2022: 15%).
Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatment No.
28, corporate income tax for key advanced and high-tech enterprises supported by the State
is applicable to a preferential tax rate of 15%.
On 30 November 2023, the Company renewed the High-tech Enterprise Certificate No.
GR202311004505, which was entitled jointly by Beijing Municipal Science and Technology
Commission, Beijing Municipal Financial Bureau, Beijing Municipal Tax Service, State
Taxation Administration. The Company is subject to corporate income tax rate of 15% since
the date of certification with the valid period of three years.
The income tax rate applicable to other subsidiaries of the Group is 25% other than the
following subsidiaries and the overseas subsidiaries which subject to the local income tax
rate.
69
The main subsidiaries that are entitled to preferential tax treatments are as follows:
Preferential
Company name rate Reason
Beijing BOE Optoelectronics Technology Co., Ltd. (BOE OT) 15% High-tech enterprise
Chengdu BOE Optoelectronics Technology Co., Ltd. (Chengdu
Optoelectronics ) 15% High-tech enterprise
Hefei BOE Optoelectronics Technology Co., Ltd. (Hefei BOE) 15% High-tech enterprise
Beijing BOE Display Technology Co., Ltd. (BOE Display) 15% High-tech enterprise
Hefei Xinsheng Optoelectronics Technology Co., Ltd. (Hefei
Xinsheng) 15% High-tech enterprise
Ordos Yuansheng Optoelectronics Co., Ltd. (Yuansheng
Optoelectronics) 15% High-tech enterprise
Chongqing BOE Optoelectronics Co., Ltd. (Chongqing BOE) 15% High-tech enterprise
Beijing BOE CHATANI Electronics Co., Ltd. (Beijing CHATANI) 15% High-tech enterprise
Hefei BOE Display Lighting Co., Ltd. (Hefei Display Lighting) 15% High-tech enterprise
Chongqing BOE Display Lighting Co., Ltd. (Chongqing Display
Lighting) 15% High-tech enterprise
Beijing BOE Vacuum Electronics Co., Ltd. (Vacuum Electronics) 15% High-tech enterprise
Beijing BOE Vacuum Technology Co., Ltd. (Vacuum Technology) 15% High-tech enterprise
Beijing BOE Energy Technology Co., Ltd. (BOE Energy) 15% High-tech enterprise
Fuzhou BOE Optoelectronics Technology Co., Ltd. (Fuzhou BOE) 15% High-tech enterprise
Hefei BOE Display Technology Co., Ltd. (Hefei Display
Technology) 15% High-tech enterprise
Mianyang BOE Optoelectronics Technology Co., Ltd. (Mianyang
BOE) 15% High-tech enterprise
BOE Wisdom IOT Technology Co., Ltd. (Wisdom IOT) 15% High-tech enterprise
K-Tronics (Suzhou) Technology Co., Ltd. (Suzhou K-Tronics) 15% High-tech enterprise
Beijing BOE Sensing Technology Co., Ltd. (Sensing Technology) 15% High-tech enterprise
Chongqing BOE Smart Electronic System Co., Ltd. (Chongqing Encouraged enterprise in
Smart Electronic) 15% Western Regions
Beijing BOE Health Technology Co., Ltd. (Health Technology) 15% High-tech enterprise
Chongqing BOE Electronic Technology Co., Ltd. (Chongqing Encouraged enterprise in
Electronic Technology) 15% Western Regions
Wuhan BOE Optoelectronics Technology Co., Ltd. (Wuhan BOE) 15% High-tech enterprise
Nanjing BOE Display Technology Co., Ltd. (Nanjing Display
Technology) 15% High-tech enterprise
Chengdu BOE Display Sci-tech Co., Ltd. (Chengdu Display Sci-
tech) 15% High-tech enterprise
BOE Regenerative Medical Technology Co., Ltd. (Regenerative
Medical) 15% High-tech enterprise
Beijing Zhongxiangying Technology Co., Ltd. (Beijing
Zhongxiangying) 15% High-tech enterprise
Yunnan Invensight Optoelectronics Technology Co., Ltd. (Yunnan
Invensight) 15% High-tech enterprise
BOE Mled Technology Co., Ltd. (Mled Technology) 15% High-tech enterprise
Hefei BOE Semiconductor Co.,Ltd. (Hefei Semiconductor) 15% High-tech enterprise
Qingdao BOE Optoelectronics Technology Co., Ltd. (Qingdao
BOE) 15% High-tech enterprise
Hefei BOE Ruisheng Technology Co., Ltd. (Hefei Ruisheng) 15% High-tech enterprise
Chongqing BOE Display Technology Co., Ltd. (Chongqing Display
Technology) 15% High-tech enterprise
Mianyang BOE Electronic Technology Co., Ltd. (Mianyang Encouraged enterprise in
Electronic Technology) 15% Western Regions
BNJ Technology Co., Ltd. (BNJ) 15% High-tech enterprise
Beijing United Ultra High-Definition Video Technology
Collaboration Center Co., Ltd. (Beijing United Ultra HD) 15% High-tech enterprise
70
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
2023 2022
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
Cash on hand
RMB 696,549 796,306
USD 1,978 7.0827 14,010 1,773 6.9646 12,348
HKD 35,281 0.9062 31,972 35,650 0.8933 31,846
JPY 197,450 0.0502 9,912 106,508 0.0524 5,581
KRW 70,909 0.0055 390 70,909 0.0055 390
Other foreign currencies 50,134 49,796
Sub-total 802,967 896,267
Bank deposits
RMB 48,638,787,209 43,646,054,088
USD 3,037,570,050 7.0827 21,514,197,393 2,681,806,253 6.9646 18,677,707,830
HKD 19,237,661 0.9062 17,433,168 364,050,751 0.8933 325,206,536
JPY 3,951,660,159 0.0502 198,373,340 10,556,434,427 0.0524 553,157,164
KRW 1,313,182,909 0.0055 7,222,506 578,139,636 0.0055 3,179,768
EUR 16,331,789 7.8592 128,354,796 200,208,832 7.4229 1,486,130,139
Other foreign currencies 89,596,227 78,007,216
Sub-total 70,593,964,639 64,769,442,741
Other monetary funds
RMB 1,731,642,660 3,914,979,538
USD 16,806,283 7.0827 119,033,861 13,176,444 6.9646 91,768,662
HKD 61,396 0.9062 55,637 438,830 0.8933 392,007
JPY 436,114,622 0.0502 21,892,954 435,651,794 0.0524 22,828,154
Sub-total 1,872,625,112 4,029,968,361
Total 72,467,392,718 68,800,307,369
Including: Total overseas deposits were equivalent to RMB 6,120,969,123 (2022: RMB
5,780,461,058).
As at 31 December 2023, other monetary funds included deposits with securities companies
by the Group amounting to RMB 3,085,648, which can be withdrew on demand. The rest
was restricted monetary funds, of which, RMB 81,101,328was pledged for issuance of bills
payable, and an equivalent to RMB 1,788,438,136was mainly deposits in commercial banks
as security.
As at 31 December 2021, other monetary funds included deposits with securities companies
by the Group amounting to RMB 2,609,817, which can be withdrew on demand. The rest
was restricted monetary funds, of which, RMB 164,299,257 was pledged for issuance of bills
payable, and an equivalent to RMB 3,863,059,287 was mainly deposits in commercial banks
as security.
71
2 Financial assets held for trading
31 December 31 December
Item 2023 2022
Financial assets at fair value through profit or loss
- Structured deposit and wealth management
products 7,476,126,776 16,931,468,153
- Investment in equity instruments 279,837,719 256,525,783
Total 7,755,964,495 17,187,993,936
3 Bills receivable
(1) Classification of bills receivable
31 December 31 December
Item 2023 2022
Bank acceptance bills 342,699,932 211,292,061
Commercial acceptance bills 32,896,723 500,000
Sub-total 375,596,655 211,792,061
Less: Provision for bad and doubtful debts 19,644 -
Total 375,577,011 211,792,061
All of the above bills are due within one year.
(2) The pledged bills receivable of the Group at the end of the year:
Pledged amount
at the end of the
Item year
Bank acceptance bills 58,113,245
72
(3) Outstanding endorsed or discounted bills that have not matured of the Group at the end of
the year:
Item
Amount Amount not
derecognised in derecognised in
2023 2023
Bank acceptance bills - 172,240,824
For the year ended 31 December 2023, there was no amount transferred to accounts
receivable from bills receivable due to non-performance of the issuers of the Group (2022:
Nil).
(4) Bills receivable by provisioning method
31 December 2023
Provision for bad and doubtful
Book value debts
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Collective assessment
- Bank acceptance bills group 342,699,932 91% - 0% 342,699,932
- Commercial acceptance bills
group 32,896,723 9% 19,644 0% 32,877,079
Total 375,596,655 100% 19,644 0% 375,577,011
(5) Movements of provisions for bad and doubtful debts
2023
Commercial
acceptance bills
Balance at the beginning of the year -
Additions during the year 19,644
Recoveries or reversals during the year -
Written-off during the year -
Balance at the end of the year 19,644
73
4 Accounts receivable
(1) The Group’s accounts receivable by customer type:
31 December 31 December
Item 2023 2022
Amounts due from related parties 848,755,589 1,070,848,317
Amounts due from other customers 32,651,912,378 27,252,679,049
Sub-total 33,500,667,967 28,323,527,366
Less: Provision for bad and doubtful debts 135,251,477 119,879,797
Total 33,365,416,490 28,203,647,569
(2) The Group’s accounts receivable by currency type:
2023 2022
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 17,032,805,950 12,806,183,088
USD 2,246,823,876 7.0827 15,913,579,467 2,139,614,722 6.9646 14,901,560,693
JPY 5,572,060 0.0502 279,717 5,046,551 0.0524 264,439
Other foreign currencies 554,002,833 615,519,146
Sub-total 33,500,667,967 28,323,527,366
Less: Provision for bad and doubtful
debts 135,251,477 119,879,797
Total 33,365,416,490 28,203,647,569
(3) The ageing analysis of accounts receivable is as follows:
31 December 31 December
2023 2022
Within 1 year (inclusive) 32,716,203,140 27,791,874,623
Over 1 year but within 2 years (inclusive) 350,015,788 232,130,123
Over 2 years but within 3 years (inclusive) 191,517,633 151,304,998
Over 3 years 242,931,406 148,217,622
Sub-total 33,500,667,967 28,323,527,366
Less: Provision for bad and doubtful debts 135,251,477 119,879,797
Total 33,365,416,490 28,203,647,569
The ageing is counted starting from the date when accounts receivable are recognised.
74
(4) Accounts receivable by provisioning method
31 December 2023
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 24,192,778 0% 21,753,190 90% 2,439,588
- Customers with low credit risk 799,508,925 2% - 0% 799,508,925
Collective assessment
- Customers with moderate credit risk 32,676,966,264 98% 113,498,287 0% 32,563,467,977
Total 33,500,667,967 100% 135,251,477 0% 33,365,416,490
31 December 2022
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 62,016,470 0% 59,921,373 97% 2,095,097
- Customers with low credit risk 1,359,564,251 5% - 0% 1,359,564,251
Collective assessment
- Customers with moderate credit risk 26,901,946,645 95% 59,958,424 0% 26,841,988,221
Total 28,323,527,366 100% 119,879,797 0% 28,203,647,569
(a) Criteria and details for collective assessment:
Customer group Basis
Customers with high credit risk With special matters, litigations or the deterioration
of customers’ credit status
Customers with low credit risk Banks, insurance companies, large state-owned
enterprises and public institutions
Customers with moderate credit Customers not included in Groups above
risk
(b) Assessment of ECLs on accounts receivable:
At all times the Group measures the impairment loss for accounts receivable at an
amount equal to lifetime ECLs, and the ECLs are based on the number of overdue
days and the expected loss rate. According to the Group’s historical experience,
different loss models are applicable to different customer groups.
(5) Movements of provisions for bad and doubtful debts:
31 December 2023
Customers with high Customers with low Customers with
credit risk credit risk moderate credit risk Total
Balance at the beginning of the year 59,921,373 - 59,958,424 119,879,797
Charge during the year 4,972,817 - 71,147,926 76,120,743
Recoveries during the year (43,645,120) - (17,261,740) (60,906,860)
Written-off during the year (68,126) - (213,525) (281,651)
Translation differences 572,246 - (132,798) 439,448
Balance at the end of the year 21,753,190 - 113,498,287 135,251,477
75
31 December 2022
Customers with high Customers with low Customers with
credit risk credit risk moderate credit risk Total
Balance at the beginning of the year 46,406,137 - 35,361,003 81,767,140
Charge during the year 39,701,034 - 38,122,840 77,823,874
Recoveries during the year (18,395,999) - (9,530,579) (27,926,578)
Written-off during the year (8,201,685) - (6,332,757) (14,534,442)
Translation differences 411,886 - 2,337,917 2,749,803
Balance at the end of the year 59,921,373 - 59,958,424 119,879,797
(6) Five largest accounts receivable and contract assets by debtor at the end of the year
The total of five largest accounts receivable and contract assets of the Group at the end of
the year was RMB 11,169,787,517, representing 33% of the total accounts receivable and
contract assets.
.
5 Receivables financing
(1) Receivables financing by category
31 December 31 December
Category 2023 2022
Bank acceptance bills 408,534,622 -
(2) Receivables financing that are endorsed or discounted but have not matured of the Group at
the end of the year:
Category 2023 2023
Amount Amount not
derecognised derecognised
Bank acceptance bills 913,806,803 -
6 Prepayments
(1) The Group’s prepayments by category:
31 December 31 December
2023 2022
Prepayment for electricity, water, gas and
power 238,019,515 234,247,912
Prepayment for inventory 202,223,873 261,349,159
Others 118,416,392 94,167,609
Total 558,659,780 589,764,680
76
(2) The ageing analysis of prepayments is as follows:
31 December 2023 31 December 2022
Ageing Amount Percentage (%) Amount Percentage (%)
Within 1 year (inclusive) 478,067,697 86% 471,778,052 80%
Over 1 year but within 2 years (inclusive) 22,099,954 4% 112,700,267 19%
Over 2 years but within 3 years (inclusive) 53,855,290 9% 2,959,783 1%
Over 3 years 4,636,839 1% 2,326,578 0%
Total 558,659,780 100% 589,764,680 100%
The ageing is counted starting from the date when prepayments are recognised.
The total of five largest prepayments of the Group at the end of the year is RMB
211,232,794, representing 38% of the total prepayments.
7 Other receivables
(1) The Group’s other receivables by customer type:
31 December 31 December
Customer type 2023 2022
Amounts due from related parties 787,519 16,588,534
Amounts due from other customers 738,982,314 969,833,087
Sub-total 739,769,833 986,421,621
Less: Provision for bad and doubtful
debts 13,110,626 10,612,385
Total 726,659,207 975,809,236
(2) The Group’s other receivables by currency type:
31 December 2023 31 December 2022
Amount in Amount in
original Exchange RMB/RMB original Exchange RMB/RMB
currency rate equivalents currency rate equivalents
RMB 478,724,580 480,934,242
USD 33,442,302 7.0827 236,861,792 69,194,294 6.9646 481,910,580
JPY 25,775,874 0.0502 1,293,949 316,069 0.0524 16,562
Other foreign currencies 22,889,512 23,560,237
Sub-total 739,769,833 986,421,621
Less: Provision for bad and
doubtful debts 13,110,626 10,612,385
Total 726,659,207 975,809,236
77
(3) The ageing analysis of the Group’s other receivables is as follows:
31 December 2023 31 December 2022
Within 1 year (inclusive) 330,573,576 367,646,687
Over 1 year but within 2 years (inclusive) 121,561,167 362,777,830
Over 2 years but within 3 years
(inclusive) 40,445,484 14,948,621
Over 3 years 247,189,606 241,048,483
Sub-total 739,769,833 986,421,621
Less: Provision for bad and doubtful
debts 13,110,626 10,612,385
Total 726,659,207 975,809,236
The ageing is counted starting from the date when other receivables are recognised.
(4) The Group’s other receivables by provisioning method
31 December 2023
Book value Provision for impairment
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Individual assessment
- Amounts with high
credit risk 12,515,014 2% 12,515,014 100% -
- Amounts with low
credit risk 705,496,057 95% - 0% 705,496,057
Collective assessment
- Amounts with medium
credit risk 21,758,762 3% 595,612 3% 21,163,150
Total 739,769,833 100% 13,110,626 2% 726,659,207
31 December 2022
Book value Provision for impairment
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Individual assessment
- Accounts with high
credit risk 10,595,616 1% 10,595,616 100% -
- Accounts with low credit
risk 941,381,539 95% - 0% 941,381,539
Collective assessment
- Accounts with medium
credit risk 34,444,466 4% 16,769 0% 34,427,697
Total 986,421,621 100% 10,612,385 1% 975,809,236
78
(5) Movements of provisions for bad and doubtful debts
2023 2022
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Lifetime ECL Lifetime ECL- Lifetime ECL Lifetime ECL-
12-month - Not credit Credit 12-month - Not credit Credit
ECL impaired impaired Total ECL impaired impaired Total
Balance at the
beginning of
the year 9,822 6,947 10,595,616 10,612,385 - 300 9,043,516 9,043,816
Additions
during the
year 131,167 464,145 3,084,758 3,680,070 9,822 6,647 1,663,461 1,679,930
Reversals
during the
year (9,822) (6,647) (334,930) (351,399) - - - -
Written-off
during the
year - - (841,937) (841,937) - - (111,361) (111,361)
Other changes - - 11,507 11,507 -
Balance at the
end of the
year 131,167 464,445 12,515,014 13,110,626 9,822 6,947 10,595,616 10,612,385
(6) The Group’s other receivables categorised by nature
31 December 31 December
Nature 2023 2022
Amounts due from equity transfer 200,000,000 200,000,000
Surety and deposits Note 398,335,916 598,972,862
Others 141,433,917 187,448,759
Sub-total 739,769,833 986,421,621
Less: Provision for bad and doubtful
debts 13,110,626 10,612,385
Total 726,659,207 975,809,236
Note: As at 31 December 2023, an equivalent to RMB 217,669,078 (2022: RMB
436,628,186) of the surety and deposits mainly represented production capacity surety paid
by the Group to suppliers.
(7) Five largest other receivables by debtor at the end of the year
The total of five largest other receivables of the Group at the end of the year was RMB
461,887,815, most of which were surety and amounts due from equity transfer. No provision
is made for bad and doubtful debts after assessment.
79
8 Inventories
(1) The Group’s inventories by category:
31 December 2023 31 December 2022
Provision for Provision for
impairment of impairment of
inventories/Provi inventories/Provi
sion for sion for
impairment of impairment of
costs to fulfil a costs to fulfil a
contract with a contract with a
Book value customer Carrying amount Book value customer Carrying amount
Raw materials 9,443,911,152 2,189,991,288 7,253,919,864 11,178,326,632 2,890,923,826 8,287,402,806
Work in progress 5,564,254,528 1,144,952,516 4,419,302,012 4,879,573,518 1,316,529,598 3,563,043,920
Finished goods 16,215,828,399 4,056,038,972 12,159,789,427 14,699,012,100 4,072,862,311 10,626,149,789
Consumables 189,084,809 - 189,084,809 147,843,921 - 147,843,921
Costs to fulfil a contract with a customer 97,571,213 - 97,571,213 163,373,789 - 163,373,789
Total 31,510,650,101 7,390,982,776 24,119,667,325 31,068,129,960 8,280,315,735 22,787,814,225
As at 31 December 2023, there was no amount of capitalised borrowing cost in the Group’s
closing balance of inventories (2022: Nil).
As at 31 December 2023, the Group had no inventory used as collateral (2022: Nil).
(2) An analysis of provision for impairment of inventories of the Group is as follows:
Balance at the
beginning of the Charge during the Decrease during Balance at the
year year the year end of the year
Raw materials 2,890,923,826 649,806,255 (1,350,738,793) 2,189,991,288
Work in progress 1,316,529,598 777,337,498 (948,914,580) 1,144,952,516
Finished goods 4,072,862,311 2,933,896,375 (2,950,719,714) 4,056,038,972
Total 8,280,315,735 4,361,040,128 (5,250,373,087) 7,390,982,776
9 Contract assets
31 December
2023
Balance at the beginning of the year 71,636,461
Transfers from contract assets recognised at the beginning of the
year to receivables (28,449,015)
Increase in contract assets resulting from no unconditional right
obtained 53,340,951
Sub-total 96,528,397
Less: Provision for bad and doubtful debts 817,655
Balance at the end of the year 95,710,742
80
10 Other current assets
31 December 31 December
2023 2022
VAT on tax credits 2,512,924,348 2,556,625,457
Input tax to be verified or deducted 291,415,443 329,605,466
Prepaid income taxes 166,028,954 331,652,233
Costs receivables for recovering products 140,814,527 108,097,353
from a customer
Others 197,155,659 68,056,410
Total 3,308,338,931 3,394,036,919
11 Long-term equity investments
(1) The Group’s long-term equity investments by category:
2023 2022
Investments in joint ventures 400,375,826 392,291,560
Investments in associates 14,392,984,350 13,086,523,900
Sub-total 14,793,360,176 13,478,815,460
Less: Provision for impairment 1,061,663,549 1,056,936,609
Total 13,731,696,627 12,421,878,851
81
(2) Movements of long-term equity investments during the year are as follows:
Movements during the year
Translation
differences
arising from
Investment Declared translation of
Balance at the income / (loss) Other distribution of foreign currency
beginning of the recognised under comprehensive Other equity cash dividends or financial Balance at the
Investee year Increase Decrease equity method income movements profits statements end of the year
Joint venture
Chongqing Maite Optoelectronics Co., Ltd. 392,291,560 - - 8,075,273 - - - - 400,366,833
Semicon Light (China) Company Limited - 9,118 - - - - - (125) 8,993
Sub-total 392,291,560 9,118 - 8,075,273 - - - (125) 400,375,826
Associates
Erdos BOE Energy Investment Co., Ltd. 1,811,883,330 - - (3,539,256) - - - - 1,808,344,074
Beijing Xindongneng Investment Fund
(Limited Partnership) 2,034,870,324 - - 413,237,868 (341,083,735) - (242,256,254) - 1,864,768,203
Beijing Innovation Industry Investment Co.,
Ltd. 223,216,553 - - 12,953,665 - - - - 236,170,218
Beijing Electric Control Industry Investment
Co., Ltd. 258,149,907 78,035,900 - (1,505,013) 51,071,365 - - - 385,752,159
BOE Art Cloud Technology Co., Ltd. 430,598,164 - - 8,087,341 - (6,214,034) - - 432,471,471
Cnoga Medical Co., Ltd. 276,916,033 - - - - - - 4,695,716 281,611,749
Tianjin Xianzhilian Investment Centre (Limited
Partnership) 1,387,079,224 380,000,000 (8,942,540) 121,848,208 - - (4,240,169) - 1,875,744,723
BioChain (Beijing) Science & Technology, Inc. 334,093,785 - - (14,087,881) - 40,878,430 - - 360,884,334
Beijing YanDong MicroElectronic Co., Ltd. 1,171,247,551 - - 34,876,298 38,009 18,093,355 - - 1,224,255,213
VusionGroup SA
（ex-SES Imagotag SA Co., Ltd.） 4,883,374,020 - - 148,260,071 - - - 61,188,984 5,092,823,075
Chongqing BOE Smart Private Equity
Investment Fund Partnership (Limited
Partnership) 57,545,008 80,000,000 - (3,511,138) - - - - 134,033,870
Jinchuang (Beijing) Equity Investment Fund
Center (Limited Partnership) - 356,400,000 - - - - - - 356,400,000
Others 217,550,001 137,881,773 (2,988,821) (22,140,092) - 10,134,133 (800,000) 88,267 339,725,261
Sub-total 13,086,523,900 1,032,317,673 (11,931,361) 694,480,071 (289,974,361) 62,891,884 (247,296,423) 65,972,967 14,392,984,350
Total 13,478,815,460 1,032,326,791 (11,931,361) 702,555,344 (289,974,361) 62,891,884 (247,296,423) 65,972,842 14,793,360,176
Less: Provision for impairment 1,056,936,609 1,061,663,549
Total 12,421,878,851 13,731,696,627
82
As at 31 December 2023, certain associates invested by the Group suffered loss and the Group did not have an obligation to assume additional
losses. Therefore, the Company discontinues recognising its share of further losses after the carrying amount of long-term equity investment is
reduced to zero, the accumulated unrecognised investment losses amounted to RMB27,004,563 (2022: RMB14,922,087).
12 Investments in other equity instruments
(1) Cases of investments in other equity instruments：
Movements during the year
The gains or losses Cumulative gains or
recorded in other losses recorded in
comprehensive Dividend other comprehensive
Balance at the income for the current income income (losses to be
beginning of Increase in Decrease year (Losses to be Balance at the recognized indicated by a minus
Items the year capital in capital entered with a “-” sign) Other end of the year this year sign "-") Specified reasons
Listed equity instruments investment
- Beijing Electronic City High Tech Intended for long-term holding for
Group Co., Ltd. 53,614,432 - - 7,835,955 - 61,450,387 728,606 (28,710,041) strategic purposes
- Bank of Chongqing Co., Ltd. Intended for long-term holding for
91,600,150 - - (1,183,443) - 90,416,707 9,885,131 (29,667,668) strategic purposes
- New Century Medical Holding Co., Ltd. Intended for long-term holding for
9,098,008 - - 8,390,266 - 17,488,274 - (123,360,576) strategic purposes
Unlisted equity instruments investment
Intended for long-term holding for
—Danhua Capital, L. P. 34,823,000 - - 590,500 - 35,413,500 8,112,915 887,125 strategic purposes
Intended for long-term holding for
—Danhua Capital II, L.P. 69,646,002 - - 1,180,998 - 70,827,000 9,669,593 3,179,249 strategic purposes
Intended for long-term holding for
—Kateeva Inc. 83,192,147 - - 1,410,705 - 84,602,852 - 1,740,386 strategic purposes
Intended for long-term holding for
—Nanosys INC 21,591,641 - - (21,591,641) - - - (52,866,000) strategic purposes
Intended for long-term holding for
—Baebies INC 30,600,273 - - 518,894 - 31,119,167 - 1,995,613 strategic purposes
Intended for long-term holding for
—Illumina Fund I,L.P. 31,079,577 2,197,830 - 537,592 - 33,814,999 22,775 1,752,294 strategic purposes
Intended for long-term holding for
—Horizon Robotics, Inc. 35,616,005 - - 514,325 - 36,130,330 - 4,175,830 strategic purposes
Intended for long-term holding for
—Others 22,199,071 - - 14,202,855 (3,035,565) 33,366,361 - (14,664,109) strategic purposes
Total 483,060,306 2,197,830 - 12,407,006 (3,035,565) 494,629,577 28,419,020 (235,537,897)
83
(2) The explanation for derecognition events that have occurred this year：
Accumulated gains recognised in Accumulated losses recognised in retained
Item retained earnings upon derecognition earnings upon derecognition Reasons for derecognition
Transfers out due to the derecognition in
Nanosys INC - (52,866,000) the liquidation
84
13 Other non-current financial assets
Item 2023 2022
Financial assets at fair value through profit or loss 2,253,778,325 2,022,967,681
Including: Investments in equity instruments 2,253,778,325 2,022,967,681
14 Investment properties
Plant & Construction in
Land use rights buildings progress Total
Cost
Balance at the beginning of the
year 687,434,677 1,028,293,708 - 1,715,728,385
Additions during the year
- Purchases - 47,854,083 62,084,334 109,938,417
- Transfers from fixed assets - 14,125,047 - 14,125,047
- Additions due to business
combinations involving entities
not under common control 97,907,500 133,782,131 - 231,689,631
Disposals during the year - (4,015,756) - (4,015,756)
Other changes - (89,730,944) 38,390,816 (51,340,128)
Balance at the end of the year 785,342,177 1,130,308,269 100,475,150 2,016,125,596
Less: Accumulated depreciation or
amortisation
Balance at the beginning of the
year 181,640,506 412,062,741 - 593,703,247
Charge during the year 14,221,175 50,236,490 - 64,457,665
Transfers from fixed assets - 28,250 - 28,250
Disposals during the year - (3,600,357) - (3,600,357)
Other changes - (51,016,655) - (51,016,655)
Balance at the end of the year 195,861,681 407,710,469 - 603,572,150
Carrying amounts
At the end of the year 589,480,496 722,597,800 100,475,150 1,412,553,446
At the beginning of the year 505,794,171 616,230,967 - 1,122,025,138
85
15 Fixed assets
(1) Analysis of the Group’s fixed assets are as follows:
Item Plant & buildings Equipment Others Total
Cost
Balance at the beginning of the year 65,890,430,033 297,350,722,399 12,351,989,023 375,593,141,455
Additions during the year
- Purchases 2,975,512 329,347,382 1,971,562,327 2,303,885,221
- Transfers from construction in
progress 7,631,374,412 23,074,707,679 1,151,849,525 31,857,931,616
- Additions due to business
combinations involving entities not
under common control 1,711,457,927 3,849,118,978 13,245,160 5,573,822,065
Transfer to investment properties (14,125,047) - - (14,125,047)
Transfers to construction in progress - (2,358,952,818) (64,593,844) (2,423,546,662)
Disposals or written-offs during the year - (775,662,525) (138,468,435) (914,130,960)
Written-down against government
interest discounts - (148,715,529) - (148,715,529)
Reclassified from fixed assets 763,414,828 (37,876,582) (725,538,246) -
Translation differences 2,658,541 9,210,976 2,159,600 14,029,117
Balance at the end of the year 75,988,186,206 321,291,899,960 14,562,205,110 411,842,291,276
Less: Accumulated depreciation
Balance at the beginning of the year 9,950,729,093 150,179,918,690 7,539,650,009 167,670,297,792
Charge during the year 2,013,406,593 29,422,264,324 2,487,867,788 33,923,538,705
Transfer to investment properties (28,250) - - (28,250)
Transfers to construction in progress - (1,469,878,899) (47,440,847) (1,517,319,746)
Disposals or written-offs during the year - (541,189,550) (81,743,439) (622,932,989)
Reclassified from fixed assets 65,703,316 (3,365,817) (62,337,499) -
Translation differences 1,247,094 5,345,109 1,853,823 8,446,026
Balance at the end of the year 12,031,057,846 177,593,093,857 9,837,849,835 199,462,001,538
Less: Provision for impairment
Balance at the beginning of the year 34,480 1,740,161,554 195,597,199 1,935,793,233
Charge during the year - 119,115,566 80,248,218 199,363,784
Transfers to construction in progress - (87,542,076) (676,525) (88,218,601)
Disposals or written-offs during the year - (33,538,571) (4,586,631) (38,125,202)
Balance at the end of the year 34,480 1,738,196,473 270,582,261 2,008,813,214
Carrying amounts
At the end of the year 63,957,093,880 141,960,609,630 4,453,773,014 210,371,476,524
At the beginning of the year 55,939,666,460 145,430,642,155 4,616,741,815 205,987,050,430
In 2023, some of the equipment of the Group is idle and there is no clear use plan. The
Group evaluated the recoverable amount of these equipment and made provisions for
impairment of RMB 199,363,784 (2022: RMB 143,071,492) based on the evaluation results.
(2) Fixed assets pending certificates of ownership
As at 31 December 2023, fixed assets pending certificates of ownership totalled RMB
6,560,001,886 (2022: RMB 7,110,462,456) and certificates of ownership is still being
processed.
86
16 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
31 December 2023 31 December 2022
Provision for Provision for
Item Book value impairment Carrying amount Book value impairment Carrying amount
The 6th generation AMOLED project - Chongqing 15,573,483,601 - 15,573,483,601 31,013,623,277 - 31,013,623,277
Others 14,173,980,651 77,348,706 14,096,631,945 12,446,773,478 74,262,087 12,372,511,391
Total 29,747,464,252 77,348,706 29,670,115,546 43,460,396,755 74,262,087 43,386,134,668
Some of the engineering projects of the Group were idle and cannot be further used. The Group evaluated the residual values of these
engineering projects and made provisions for impairment.
(a) Movements of major construction projects in progress during the year
Cumulative Accumulated Interest Interest rate for
Balance at the Additions during the Fiscal discount Transfers to fixed Balance at the investment in the capitalised interest at capitalised capitalisation in 2023
Item Budget beginning of the year year interest assets Others reduced end of the year project (%) the end of the year in 2023 (%) Sources of funding
The 6th generation AMOLED Self-raised funds
project - Chongqing 46,500,000,000 31,013,623,277 6,232,062,763 (139,357,070) (21,432,183,974) (100,661,395) 15,573,483,601 83.91% 616,688,937 533,623,524 3.95% and borrowings
(b) Provision for impairment of construction in progress during the year
Balance at the beginning Additions during Decreases Balance at the
Item of the year the year during the year end of the year Reason for provision
Projects are idle and cannot be further used or are
Engineering projects, machinery and equipment 74,262,087 3,086,619 - 77,348,706 not planned to be used temporarily.
87
17 Right-of-use assets
(1) As a lessee
Plant and
buildings Equipment Others Total
Cost
Balance at the beginning of the year 686,288,720 15,961,065 198,423,285 900,673,070
Additions during the year 202,226,682 49,505 1,480,835 203,757,022
Additions due to business combinations 8,080,595 - - 8,080,595
involving entities not under common
control
Decreases during the year (55,747,251) (220,804) (5,101,832) (61,069,887)
Translation differences 29,024,340 - 42,875 29,067,215
Balance at the end of the year 869,873,086 15,789,766 194,845,163 1,080,508,015
Accumulated depreciation
Balance at the beginning of the year 192,934,379 510,082 20,107,663 213,552,124
Charge for the year 152,633,217 5,999,682 10,625,520 169,258,419
Reductions during the year (31,391,906) (99,665) (622,665) (32,114,236)
Translation differences 5,425,387 - 41,976 5,467,363
Balance at the end of the year 319,601,077 6,410,099 30,152,494 356,163,670
Provision for impairment
Balance at the beginning and the end of
the year - - - -
Carrying amount
At the end of the year 550,272,009 9,379,667 164,692,669 724,344,345
At the beginning of the year 493,354,341 15,450,983 178,315,622 687,120,946
88
18 Intangible assets
(1) Intangible assets
Patent and
proprietary Computer
Land use rights technology software Others Total
Cost
Balance at the beginning of the year 5,796,437,186 5,245,259,551 1,894,880,882 704,836,612 13,641,414,231
Additions during the year
- Purchases 1,606,702,704 27,983,853 86,579,545 - 1,721,266,102
- Transfers from construction in
progress 258,345,199 - 269,054,659 110,613,208 638,013,066
- Additions due to business
combinations involving entities not
under common control 263,044,065 935,121,201 27,525,660 - 1,225,690,926
- Transfers from development costs - 31,920,961 - - 31,920,961
Translation differences - 77,552 466,220 631,835 1,175,607
Written-down against interest discount - (1,704,103) - - (1,704,103)
Disposals during the year - - (1,285,185) - (1,285,185)
Balance at the end of the year 7,924,529,154 6,238,659,015 2,277,221,781 816,081,655 17,256,491,605
Less: Accumulated amortisation
Balance at the beginning of the year 660,214,345 2,562,045,161 1,192,207,819 278,619,763 4,693,087,088
Charge during the year 169,915,992 559,766,004 219,577,158 49,147,600 998,406,754
Translation differences - 77,552 106,487 282,184 466,223
Disposals during the year - - (1,054,160) - (1,054,160)
Balance at the end of the year 830,130,337 3,121,888,717 1,410,837,304 328,049,547 5,690,905,905
Carrying amount
Carrying amount at the end of the year 7,094,398,817 3,116,770,298 866,384,477 488,032,108 11,565,585,700
Carrying amount at the beginning of the
year 5,136,222,841 2,683,214,390 702,673,063 426,216,849 8,948,327,143
89
19 Goodwill
(1) Changes in goodwill
Balance at the
beginning of the Icrease during the Decrease during Balance at the
Name of investee year year the year end of the year
Book value
Beijing Yinghe Century Co., Ltd. 42,940,434 - - 42,940,434
K-Tronics (Suzhou) technology Co.,
Ltd. 8,562,464 - - 8,562,464
Beijing BOE Optoelectronics
Technology Co., Ltd. 4,423,876 - - 4,423,876
BOE Healthcare Investment &
Management Co., Ltd. 146,460,790 - - 146,460,790
Chengdu BOE Display Sci-tech Co.,
Ltd. 537,038,971 - - 537,038,971
Nanjing BOE Display Technology Co.,
Ltd. 155,714,415 - - 155,714,415
Beijing United Ultra High-Definition
Video Technology Collaboration
Center Co., Ltd. - 14,285,847 - 14,285,847
HC SemiTek Corporation (“HC
SemiTek”) - 29,596,088 - 29,596,088
Sub-total 895,140,950 43,881,935 - 939,022,885
Provision for impairment
Beijing BOE Optoelectronics
Technology Co., Ltd. (4,423,876) - - (4,423,876)
BOE Healthcare Investment &
Management Co., Ltd. (82,137,669) - - (82,137,669)
Chengdu BOE Display Sci-tech Co.,
Ltd. (147,755,754) - - (147,755,754)
Sub-total (234,317,299) - - (234,317,299)
Carrying amount 660,823,651 43,881,935 - 704,705,586
(2) Provision for impairment of goodwill
The recoverable amount of the asset group to which the above goodwill relates is determined
based on the present value of expected future cash flows. When projecting the present value
of cash flows, the cash flows for the most recent five years are determined based on the
financial budgets approved by management, and the cash flows beyond the five-year budget
period were assumed to remain stable. The pre-tax discount rate is determined with
reference to comparable companies and the relevant capital structures.
90
20 Long-term deferred expenses
Balance at Additions during Decrease during Balance at
31December 2022 the year the year 31December 2023
Technology royalty fees prepaid 379,194,821 25,363,191 (70,839,299) 333,718,713
Payment for public facilities construction and
use 41,161,291 458,946 (8,618,117) 33,002,120
Leasehold improvements 19,430,433 55,743,559 (18,357,270) 56,816,722
Others 117,154,832 61,264,352 (67,462,175) 110,957,009
Total 556,941,377 142,830,048 (165,276,861) 534,494,564
21 Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets and liabilities
2023 2022
Deductible/ Deductible/
(taxable) (taxable)
temporary Deferred tax temporary Deferred tax
Item differences assets/(liabilities) differences assets/(liabilities)
Deferred tax assets:
Provision for impairment of assets 586,093,818 98,130,637 151,264,910 31,020,460
Changes in fair value of investments in
other equity instruments 134,711,649 20,206,748 142,547,604 21,382,141
Depreciation of fixed assets 251,343,643 39,115,495 239,415,255 37,326,236
Assessed value added by investing real
estate in subsidiaries 114,341,540 28,585,385 119,895,400 29,973,850
Accumulated losses 2,748,927,099 426,287,990 459,130 75,757
Government grant 64,596,573 9,689,486 143,385,420 21,507,813
Lease Liabilities 564,279,038 119,336,111 417,358,141 89,551,026
Others 11,546,811 2,041,907 86,936,426 15,037,373
Sub-total 4,475,840,171 743,393,759 1,301,262,286 245,874,656
Amount offset (346,516,739) (169,861,507)
Balance after offsetting 396,877,020 76,013,149
Deferred tax liabilities:
Revaluation due to business combinations
involving entities not under common
control (1,745,944,008) (409,875,698) (882,129,374) (217,980,404)
Depreciation of fixed assets (7,154,184,671) (1,077,814,489) (7,266,110,223) (1,094,970,944)
Long-term equity investments (2,113,902,264) (389,497,116) (120,141,687) (18,021,253)
Right of use assets (600,669,199) (130,538,444) (440,696,099) (99,281,127)
Others (203,263,744) (33,430,721) (178,731,744) (29,507,437)
Sub-total (11,817,963,886) (2,041,156,468) (8,887,809,127) (1,459,761,165)
Amount offset 346,516,739 169,861,507
Balance after offsetting (1,694,639,729) (1,289,899,658)
91
(2) Details of unrecognised deferred tax assets
2023 2022
Deductible temporary differences 23,132,234,962 22,749,630,064
Deductible tax losses 57,936,466,170 44,677,908,573
Total 81,068,701,132 67,427,538,637
As at 31 December 2023, the accumulated deductible temporary differences are mainly
subsidiaries’ impairment provisions of assets and accrual of expenses. Due to the
uncertainty that there will be sufficient taxable income to cover these deductible differences
in future periods, the deferred income tax assets were not recognised in consideration of
prudence.
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
Year Note 2023 2022
2023 - 280,957,810
2024 308,958,033 451,137,106
2025 883,311,469 1,253,378,510
2026 1,202,044,391 1,473,908,686
2027 2,385,376,981 3,146,172,377
2028 3,527,170,592 2,279,355,553
2029 5,008,814,339 5,008,814,339
2030 4,200,121,737 4,196,348,029
2031 2,586,384,422 2,502,424,694
2032 23,919,302,827 23,569,766,818
2033 13,399,325,173 -
Others (a) 515,656,206 515,644,651
Total 57,936,466,170 44,677,908,573
(a) According to the applicable local tax laws, loss of some overseas subsidiaries of the
Group has indefinite carry-over period to deduct the future taxable income.
92
22 Other non-current assets
31 December 31 December
2023 2022
Prepayment for fixed assets 2,068,302,892 148,834,349
Surety 1,048,632,965 1,338,834,402
Prepayment for construction 414,936,876 153,690,890
VAT on tax credits 95,942,415 -
Deferred VAT for imported equipment - 2,696,796
Others 338,103,310 311,464,947
Total 3,965,918,458 1,955,521,384
23 Short-term loans
31 December 2023
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
currency Exchange rate equivalents pledged
Bank loans
- RMB 23,498,395 Pledge
- RMB 1,311,144,222 Guaranteed
- RMB 406,271,598 Credited
Sub-total 1,740,914,215
Foreign currency bank loans
- JPY 104,986,438 0.0502 5,270,319 Credited
Sub-total 5,270,319
Total 1,746,184,534
31 December 2022
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
currency Exchange rate equivalents pledged
Bank loans
- RMB 901,622,500 Guaranteed
- RMB 30,006,237 Credited
Sub-total 931,628,737
Foreign currency bank loans
- USD 128,585,504 6.9646 895,546,601 Credited
- JPY 205,792,620 0.0524 10,783,533 Credited
- HKD 600,000,000 0.8933 535,980,000 Credited
Sub-total 1,442,310,134
Total 2,373,938,871
As at 31 December 2023, no short-term loan was past due (2022: Nil).
93
24 Bills payable
31 December 31 December
2023 2022
Bank acceptance bills 919,313,033 847,418,525
Commercial acceptance bills - 22,803,013
Total 919,313,033 870,221,538
There is no due but unpaid bill payable at the end of the year. The bills above are all due
within one year.
25 Accounts payable
(1) The Group’s accounts payable by category are as follows:
31 December 31 December
2023 2022
Payables to related parties 114,282,939 179,047,266
Payables to third parties 32,863,320,412 29,655,673,198
Total 32,977,603,351 29,834,720,464
(2) The Group’s accounts payable by currency are as follows:
2023 2022
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
- RMB 22,178,756,264 21,162,560,832
- USD 1,414,347,882 7.0827 10,017,401,744 1,146,041,405 6.9646 7,981,719,969
- JPY 11,054,142,329 0.0502 554,917,945 9,299,005,433 0.0524 487,267,885
- Other foreign currencies 226,527,398 203,171,778
Total 32,977,603,351 29,834,720,464
As at 31 December 2023, the Group had no significant accounts payable with ageing of more
than one year.
26 Advance payments received
31 December 31 December
Item 2023 2022
Advances from related parties 103,733 188,623
Advances from third parties 94,601,248 79,660,354
Total 94,704,981 79,848,977
94
27 Contract liabilities
(1) The contract liabilities are as follows:
31 December 31 December
Item 2023 2022
Sale of goods 3,000,168,620 2,411,717,792
Contract liabilities primarily relate to the Group’s advances from goods purchase and sale
contracts. The Group receives a certain proportion of advances as agreed in contract when
entering into the contract with customers. The revenue related to the contracts will be
recognised until the Group satisfies its performance obligation.
(2) Significant contract liabilities aged more than 1 year:
31 December The reason for the
Item 2023 non-carryover
Advance receipts 172,566,372 Not yet delivered
Significant changes in the contract liabilities of the Group are as follows:
2023
Balance at the beginning of the year 2,411,717,792
Revenue recognised that was included in the contract liability balance at
the beginning of year (2,059,115,794)
Increase of contract liabilities due to cash received at the end of the year 2,647,566,622
Balance at the end of the year 3,000,168,620
95
28 Employee benefits payable
(1) Employee benefits payable:
Balance at
Balance at Accrued during Decrease during 31 December
Note 1 January 2023 the year the year 2023
Short-term employee benefits (2) 2,656,369,348 16,850,640,827 (16,462,441,948) 3,044,568,227
Post-employment benefits
- defined contribution plans (3) 58,051,832 1,848,632,320 (1,853,563,027) 53,121,125
Termination benefits 104,111,643 50,931,357 (151,821,076) 3,221,924
Total 2,818,532,823 18,750,204,504 (18,467,826,051) 3,100,911,276
Balance at
Balance at Accrued during Decrease during 31 December
Note 1 January 2022 the year the year 2022
Short-term employee benefits (2) 5,098,605,495 16,306,120,923 (18,748,357,070) 2,656,369,348
Post-employment benefits
- defined contribution plans (3) 34,235,855 1,643,219,063 (1,619,403,086) 58,051,832
Termination benefits 313,887 125,276,407 (21,478,651) 104,111,643
Total 5,133,155,237 18,074,616,393 (20,389,238,807) 2,818,532,823
(2) Short-term employee benefits
Balance at
Balance at Accrued during Decrease during 31 December
1 January 2023 the year the year 2023
Salaries, bonuses, allowances 1,689,488,356 13,369,970,316 (13,142,172,990) 1,917,285,682
Staff welfare - 1,200,381,109 (1,200,381,109) -
Social insurance 45,026,603 866,656,861 (874,490,443) 37,193,021
Medical insurance 42,596,285 818,538,486 (826,067,942) 35,066,829
Work-related injury insurance 2,430,318 48,118,375 (48,422,501) 2,126,192
Housing fund 29,798,139 1,034,105,760 (1,044,206,780) 19,697,119
Labour union fee, staff and workers’
education fee 871,474,749 362,090,148 (187,222,198) 1,046,342,699
Staff bonus and welfare fund 20,553,209 - - 20,553,209
Other short-term employee benefits 28,292 17,436,633 (13,968,428) 3,496,497
Total 2,656,369,348 16,850,640,827 (16,462,441,948) 3,044,568,227
Balance at
Balance at Accrued during Decrease during 31 December
1 January 2022 the year the year 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
96
(3) Post-employment benefits - defined contribution plans
Balance at
Balance at Accrued during Decrease during 31 December
1 January 2023 the year the year 2023
Basic pension insurance 37,012,623 1,550,009,517 (1,555,024,760) 31,997,380
Unemployment insurance 1,320,821 51,043,742 (51,324,167) 1,040,396
Annuity 19,718,388 247,579,061 (247,214,100) 20,083,349
Total 58,051,832 1,848,632,320 (1,853,563,027) 53,121,125
Balance at
Balance at Accrued during Decrease during 31 December
1 January 2022 the year the year 2022
Basic pension insurance 30,284,940 1,408,163,207 (1,401,435,524) 37,012,623
Unemployment insurance 906,583 45,871,870 (45,457,632) 1,320,821
Annuity 3,044,332 189,183,986 (172,509,930) 19,718,388
Total 34,235,855 1,643,219,063 (1,619,403,086) 58,051,832
29 Taxes payable
2023 2022
Value-added tax 96,556,759 142,337,422
Corporate income tax 502,726,541 287,859,236
Individual income tax 39,311,660 48,228,934
City construction tax 309,488,421 428,525,949
Education surcharges and local education
surcharges 223,104,253 306,515,854
Others 145,892,388 117,933,793
Total 1,317,080,022 1,331,401,188
30 Other payables
31 December 31 December
Note 2023 2022
Interest payable 175,698 151,200
Dividends payable 39,014,714 6,410,514
Others (1) 19,448,570,553 19,625,661,555
Total 19,487,760,965 19,632,223,269
97
(1) Others
(a) The Group’s other payables by category are as follows:
31 December 31 December
Note 2023 2022
Projects and equipment 13,556,738,142 13,185,841,311
Fund transaction (Note) 3,182,963,067 3,130,038,067
Deferred VAT for imported
equipment 148,348,308 196,440,706
Repurchase obligation of restricted
shares V.42 457,401,616 753,440,228
Accrued water and electricity charges
and freight 113,409,651 407,770,818
Security and deposits 764,238,522 505,702,125
External agency fee 109,646,050 172,851,477
Others 1,115,825,197 1,273,576,823
Total 19,448,570,553 19,625,661,555
The Group’s significant other payables aged over one year are payables of projects
and equipment.
Note: The other payables by the Group as at 31 December 2023 are amounts and
interests due to original controlling shareholders of Nanjing Display Technology and
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 2023 31 December 2022
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 14,629,710,281 13,336,886,237
USD 555,743,933 7.0827 3,936,167,554 736,000,871 6.9646 5,125,951,666
JPY 12,646,824,124 0.0502 634,870,571 18,492,932,844 0.0524 969,029,681
Other foreign currencies 247,822,147 193,793,971
Total 19,448,570,553 19,625,661,555
98
31 Non-current liabilities due within one year
As at 31 December, the non-current liabilities due within one year for the Group were long-
term loans due within one year, lease liabilities, and long-term payables.
31 December 2023
Credited/
collateralised
Amount in RMB/RMB guaranteed/
Note original currency Exchange rate equivalents pledged
Bank loans
- RMB 116,082,704 Pledged
- RMB 11,632,397,549 Collateralised
- RMB 1,584,339,256 Guaranteed
- RMB 7,072,242,667 Credited
- USD 538,790,096 7.0827 3,816,088,613 Collateralised
Sub-total 24,221,150,789
Long-term payables V.35 47,178,393
Lease liabilities V.34 168,698,260
Total 24,437,027,442
31 December 2022
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 117,008,022 Pledged
- RMB 11,356,508,048 Collateralised
- RMB 94,144,290 Guaranteed
- RMB 5,528,984,741 Credited
- USD 694,159,756 6.9646 4,834,545,037 Collateralised
Sub-total 21,931,190,138
Long-term payables V.35 143,117,840
Lease liabilities V.34 118,302,766
Contribution of non-controlling
interests with redemption
provisions V.38 511,140,000
Total 22,703,750,744
99
32 Other current liabilities
31 December 31 December
Item 2023 2022
Warranty provisions 2,751,418,713 3,368,859,501
Refund liability 137,738,457 101,672,253
Pending output VAT 190,865,955 139,462,782
Others 5,750,466 3,973,137
Total 3,085,773,591 3,613,967,673
The other current liabilities of the Group were warranty provision. The warranty provision
mainly relates to the expected after-sales repair warranty to the customers. The provision is
estimated by the Management, based on historical claim experience and current actual sales
outcomes.
33 Long-term loans
31 December 2023
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 815,374,959 Pledged
- RMB 43,946,736,428 Collateralised
- RMB 4,721,896,695 Guaranteed
- RMB 72,344,096,703 Credited
- USD 3,379,980,096 7.0827 23,939,385,026 Collateralised
Less: Long-term loans due within one
year V.31 24,221,150,789
Total 121,546,339,022
31 December 2022
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 1,058,900,427 Pledged
- RMB 49,363,519,760 Collateralised
- RMB 4,326,076,807 Guaranteed
- RMB 58,386,326,488 Credited
- USD 4,586,027,388 6.9646 31,939,846,346 Collateralised
Less: Long-term loans due within
one year V.31 21,931,190,138
Total 123,143,479,690
100
34 Lease liabilities
31 December 1 January
Item Note 2023 2023
Long-term lease liabilities 710,839,756 656,888,776
Less: Lease liabilities due within one year V.31 168,698,260 118,302,766
Total 542,141,496 538,586,010
During the year ended 31 December 2023, income from short-term leases and leases of low-
value assets which are accounted for using the practical expedient as well as sub-leasing
right-of-use assets for which the Group, as a lessee, was not significant.
35 Long-term payables
31 December 31 December
Item 2023 2022
Obligations under finance leases 218,789,786 372,704,917
Less: Obligations under finance leases due within one 47,178,393 143,117,840
year
Total 171,611,393 229,587,077
As at 31 December 2023, the Group sold and leased back some of its machinery and
equipment and construction in progress. Since asset sales and lease transactions are
interrelated, 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 as
long-term payables.
36 Provisions
31 December 31 December
Item 2023 2022
Outstanding litigation 3,580,000 -
37 Deferred income
Balance at the Amounts
beginning of the Additions during recognised in Balance at the
Item year the year other income Other changes end of the year
Related to assets 3,798,389,149 745,618,201 (547,154,297) (238,241,725) 3,758,611,328
Related to income 1,357,958,183 1,939,512,378 (2,293,029,934) - 1,004,440,627
Total 5,156,347,332 2,685,130,579 (2,840,184,231) (238,241,725) 4,763,051,955
101
38 Other non-current liabilities
31 December 31 December
Item Note 2023 2022
Contribution of non-controlling interests
with redemption provisions 2,500,522,066 2,499,075,805
The contribution of non-controlling interests with redemption provisions is mainly due to the
redemption obligation of the Company to the non-controlling interests of Fuzhou BOE. The
Company recognises the above non-controlling interests contribution as a financial liability
which is subsequently measured at the cost of amortisation. According to the contracts, the
Company will eventually carry out the repurchasing plan during the period from 2025 to
2034.
39 Share capital
Balance at the
beginning of the Balance at the
year Changes during the year end of the year
Issuance of new Cancellation of
shares treasury shares Sub-total
Total shares 38,196,363,421 - (543,834,226) (543,834,226) 37,652,529,195
On May 25th, 2023, our company conducted a repurchase and cancellation of 10,298,610
restricted shares at the Shenzhen Branch of China Securities Registration and Clearing
Corporation Limited. Upon completion of this repurchase and cancellation, the company's
total share capital was adjusted from 38,196,363,421 shares to 38,186,064,811 shares.
On August 29th, 2023, our company cancelled 28,186,133 treasury shares held in a
dedicated repurchase account at the Shenzhen Branch of China Securities Registration and
Clearing Corporation Limited. Following this cancellation, the company's total share capital
was further reduced from 38,186,064,811 shares to 38,157,878,678 shares.
On December 25th, 2023, our company proceeded with the cancellation of 499,999,919
treasury shares held in the dedicated repurchase account at the Shenzhen Branch of China
Securities Registration and Clearing Corporation Limited, and simultaneously completed the
repurchase and cancellation of 5,349,564 restricted shares. As a result of this combined
repurchase and cancellation action, the company's total share capital was adjusted down
from 38,157,878,678 shares to 37,652,529,195 shares.
40 Other equity instruments
(1) Financial instruments (including perpetual bonds) that remain outstanding at the end of the
year are set out as follows:
Maturity
date or Conditions
Outstanding financial Accounting Issuance renewal for Conversion
instruments Issuance date classification Interest rate price Quantity Amount status conversion status
Equity RMB Not Not
22BOEY1 25 March 2022 instrument 3.50% 100/bond 20 million RMB 2 billion 3+N years applicable applicable
102
(2) Major terms:
With the approval document No. 1801 [2019] of the China Securities Regulatory Commission
(“CSRC”), the Company issued renewable corporate bonds to qualified investors on March
25, 2022. The full name of these bonds was Renewable Corporate Bond Publicly Issued by
BOE Technology Group Co., Ltd. (digital economy) in 2022 (the First Phase), which referred
to as 22BOEY1 (“2022 bond”).
2022 bond have a base term of 3 years and take every three interest-bearing years as a
period. The Company is entitled to choose to extend the maturity by 1 period at the end of
the agreed base term or at the end of each extended period, or choose to fully redeem the
2022 bond at the end of the period. The nominal interest rate of the 2022 bond is fixed during
the first period, and then is reset once every period. The nominal interest rate in the first
period is the initial benchmark interest rate plus the initial spread, and the nominal interest
rate in the subsequent period is adjusted to the current benchmark interest rate plus the
initial spread and 300 basis points. Therefore, when the Company exercises the renewal
option, the nominal interest rate will significantly increase, and the corresponding nominal
interest will also increase sharply. The 2022 bond have an issuer’s right to defer the payment
of interest. Unless a mandatory interest payment event occurs (including distributions to
ordinary shareholders and decrease of registered capital). At each interest payment date of
the bonds, the Company may choose at its discretion whether to defer the payment of the
current interest as well as all the deferred interests and the yields under this term until the
next interest payment date without being subjected to any limit on the number of interest
deferring attempts.
As at 31 December 2023, the actual issuance of the 2022 bond amounted to RMB
2,000,000,000 in total, and the Company considers that the renewable corporate bonds do
not meet the definition of financial liabilities, and therefore will charge the total amount of the
issuance to other equity instruments 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 At the beginning of the year Additions during the year Decrease during the year Accumulated interest At the end of the year
financial Carrying Carrying Carrying Charge for the Paid during Carrying
instruments Quantity amount Quantity amount Quantity amount year the year Quantity amount
20BOEY1 20,000,000 2,050,610,478 - - (20,000,000) (1,989,179,245) 11,368,767 (72,800,000) - -
20BOEY2 20,000,000 2,045,184,865 - - (20,000,000) (1,989,320,755) 14,935,890 (70,800,000) - -
20BOEY3 20,000,000 2,037,168,519 - - (20,000,000) (1,989,415,094) 22,246,575 (70,000,000) - -
22BOEY1 20,000,000 2,043,402,946 - - - - 70,000,000 (70,000,000) 20,000,000 2,043,402,946
Total 80,000,000 8,176,366,808 - - (60,000,000) (5,967,915,094) 118,551,232 (283,600,000) 20,000,000 2,043,402,946
On February 28, March 19, and April 27, 2020, our company issued the 2020 publicly issued
renewable corporate bonds of BOE Technology Group Co., Ltd. to qualified investors (for
qualified investors), which referred to as 20BOEY1, 20BOEY2, 20BOEY3 respectively (“2020
bond”). As at 31 December 2023, the 2020 bond has been issued for three years, the Company
has not exercised the bond issuer’s renewal option and has fully paid the principal and interest
of the 2020 bond.
103
(4) Relevant information of amounts attributable to holders of equity instruments:
31 December 31 December
2023 2022
Attributable to shareholders of the Company 129,428,307,067 136,086,175,204
- Equity attributable to ordinary shareholders of
the Company 127,384,904,121 127,909,808,396
- Equity attributable to holders of the Company’s
other equity instruments 2,043,402,946 8,176,366,808
Equity attributable to non-controlling shareholders 68,370,379,252 65,954,391,821
- Equity attributable to non-controlling ordinary
shareholders 68,370,379,252 65,954,391,821
- Equity attributable to non-controlling
shareholders of other equity instruments - -
(5) Accrued interest on holders of other equity instruments
In 2023, as the above-mentioned issued renewable corporate bonds are cumulative other
equity instruments, the Company accrued interest of RMB 118,551,232on renewable
corporate bonds from undistributed profits and paid interest of RMB 283,600,000 on
renewable corporate bonds.
41 Capital reserve
Other capital
Item Note Share premium reserves Total
Balance at the beginning of the year 53,837,673,239 1,387,212,436 55,224,885,675
Add: Changes in shareholding ratio
of subsidiaries (1,219,955,094) - (1,219,955,094)
Equity-settled share-based
payment XII - 309,120,206 309,120,206
Other movements in equity of
associates V.11 - 61,662,689 61,662,689
Cancellation of treasury shares (2,244,946,976) - (2,244,946,976)
Others (32,084,906) 14,899,152 (17,185,754)
Balance at the end of the year 50,340,686,263 1,772,894,483 52,113,580,746
104
42 Treasury shares
Balance at the
beginning of the Additions during Reductions during Balance at the
Item year the year the year end of the year
Treasury shares 3,508,201,911 - (3,046,165,671) 462,036,240
According to the resolution passed by the 13th Meeting of the 10th Board of Directors and
the 4th Meeting of the 10th Supervisory Board on March 31st, 2023, regarding 'The Proposal
on Repurchasing and Cancelling Part of Restricted Shares,' the company completed the
repurchase and cancellation of 10,298,610 restricted shares under the incentive plan as of
May 25th, 2023. The average repurchase price per share was RMB 2.41, resulting in a
decrease in treasury shares of RMB 24,819,650, while the difference of RMB 14,521,040
between the cancelled treasury shares and the share capital was deducted from the Capital
reserve - Share premium.
Based on the resolution approved during the same meetings on March 31st, 2023,
concerning 'The Proposal on Achieving the Conditions for the First Lifting of Restrictions
Period for the 2020 Stock Option and Restricted Share Incentive Plan and the First Exercise
Period for the Initial Grant of Stock Options,' the company confirmed that a total of
102,260,780 restricted shares were eligible for lifting restrictions. These shares were listed
for circulation on April 11th, 2023, corresponding to a reduction of RMB 240,210,572 in other
payables - obligation to repurchase restricted shares (Note V. 30) and Treasury shares.
In accordance with the resolution passed by the 17th Meeting of the 10th Board of Directors
on July 24th, 2023, regarding 'The Proposal on Cancelling Part of Treasury shares in the
Company's Dedicated Repurchase Account,' the company finished the cancellation of
28,186,133 shares within the dedicated repurchase account on August 29th, 2023. The
average repurchase price per share was RMB 5.71, reducing treasury shares by RMB
160,964,972. The difference of RMB 132,778,839 between the cancelled treasury shares
and the share capital was then deducted from Capital reserve - Share premium.
Pursuant to the resolution adopted at the 21st Meeting of the 10th Board of Directors and the
7th Meeting of the 10th Supervisory Board on October 30th, 2023, about 'The Proposal on
Repurchasing and Cancelling Part of Restricted Shares,' the company concluded the
repurchase and cancellation of 5,349,564 restricted shares under the incentive plan on
December 25th, 2023. The average repurchase price per share was RMB 2.35, leading to a
decrease in treasury shares of RMB 12,566,126, and the difference of RMB 7,216,562
between the cancelled treasury shares and the share capital was debited against the Capital
reserve - Share premium.
Following the approval at the 23rd Meeting of the 10th Board of Directors on November 28th,
2023, concerning 'The Proposal on Changing the Use of Repurchased Shares and
Cancelling Them,' the company accomplished the change of use and subsequent
cancellation of 499,999,919 shares within the dedicated repurchase account on December
25th, 2023. The average repurchase price per share was RMB 5.24, reducing treasury
shares by RMB 2,620,105,418, and the difference of RMB 2,120,105,499 between the
cancelled treasury shares and the share capital was deducted from the Capital reserve -
Share premium.
During 2023, the company recognized restricted share dividends amounting to RMB
17,173,897, which led to a decrease in other payables - obligation to repurchase restricted
shares (Note V. 30) and Treasury shares.
105
43 Other comprehensive income
Movements during the year
Less: Amount Less: Transfer of
Balance at the transferred Net-of-tax other Balance at the end
end of previous from other Net-of-tax amount amount comprehensive of the year
year attributable Less: comprehensive attributable to attributable to income to attributable to
to shareholders Income tax income to profit shareholders of the non-controlling retained shareholders of the
Item of the Company Before-tax amount expenses or loss Company interests earnings Company
Items that will not be reclassified to profit or
loss (121,272,681) (284,719,598) 13,421,765 - (297,850,012) (291,351) (51,690,779) (367,431,914)
Including: Other comprehensive income
recognised under equity
method 121,391,777 (290,012,370) 12,246,372 - (302,258,742) - 1,175,221 (182,042,186)
Changes in fair value of
investments in other equity
instruments (242,664,458) 5,292,772 1,175,393 - 4,408,730 (291,351) (52,866,000) (185,389,728)
Items that may be reclassified to profit or loss (952,495,349) 279,822,666 - - 182,930,039 96,892,627 - (769,565,310)
Including: Other comprehensive income
recognised under equity
method (156,851) 38,009 - - 38,009 - - (118,842)
Translation differences arising
from translation of foreign
currency financial statements (952,338,498) 279,784,657 - - 182,892,030 96,892,627 - (769,446,468)
Total (1,073,768,030) (4,896,932) 13,421,765 - (114,919,973) 96,601,276 (51,690,779) (1,136,997,224)
106
44 Surplus reserve
Balance at the
beginning of the Additions during Others changes Balance at the
Item year the year during the year end of the year
Statutory surplus reserve 2,951,392,625 330,597,179 117,522 3,282,107,326
Discretionary surplus reserve 289,671,309 - - 289,671,309
Total 3,241,063,934 330,597,179 117,522 3,571,778,635
45 Retained earnings
Item Note 2023 2022
Retained earnings at the beginning of the
year (before adjustment) 35,829,465,307 37,106,514,799
Total adjustments for opening retained
earnings (“+” for increase; “-” for
decrease) - (161,882)
Retained earnings at the beginning of the
year (after adjustment) 35,829,465,307 37,106,352,917
Add: Net profits for the year attributable to
shareholders of the Company 2,547,435,360 7,541,423,198
Less: Appropriation for statutory surplus
reserve 330,597,179 348,186,351
Interest on holders of other equity
instruments V.40 118,551,232 530,695,890
Dividends to ordinary shares a) 2,296,367,348 7,958,923,130
Transfer of other comprehensive
income to retained earnings (b) 51,808,301 (19,494,563)
Retained earnings at the end of the year 35,579,576,607 35,829,465,307
(a) According to the Annual Shareholders’ Meeting for 2022 held on 5 May 2023, the
Company distributed cash dividends to shareholders of A shares and B shares on 7
June 2023 (A shares) and 9 June 2023 (B shares), with RMB 0.61 (2022: RMB 2.1)
every 10 shares and a profit distribution amount of RMB 2,297,635,715. Considering
the turnover rate, the corresponding dividends of the expected non-exercisable
portions of restricted shares are RMB 1,268,367 with a profit distribution of RMB
2,296,367,348 (2022: RMB 7,958,923,130).
(b) The amounts both transferred from other comprehensive income to retained earnings
which is associates’ losses from disposal of other equity instrument investments
included in retained earnings and changes in the fair value of other equity instrument
investments are carried out to retained earnings in 2023 are RMB 51,808,301 (2022:
income RMB 19,494,563).
(c) As at 31 December 2023, the consolidated retained earnings attributable to the
Company included appropriation to surplus reserves made by the Company’s
subsidiaries amounting to RMB 6,738,372,634 (2022: RMB 6,206,465,315).
107
46 Operating income and operating costs
2023 2022
Item Income Cost Income Cost
Principal activities 169,749,300,319 148,637,127,117 174,113,214,324 154,442,890,090
Other operating activities 4,794,145,576 3,995,934,250 4,300,516,855 3,087,676,062
Total 174,543,445,895 152,633,061,367 178,413,731,179 157,530,566,152
Including: Revenue from contracts with
customers 174,029,517,307 152,524,153,735 177,667,655,331 157,352,470,042
Other income 513,928,588 108,907,632 746,075,848 178,096,110
Information on income of principal activities has been included in Note XV.
Revenue and the related costs of the Group's sales before intended use are as follows:
Relating to ordinary activities:
2023 2022
Operating income 2,109,347,934 1,407,856,936
Operating costs 1,877,621,445 1,514,976,278
47 Taxes and surcharges
2023 2022
Property tax 597,939,410 561,061,660
City maintenance and construction tax 171,689,341 268,999,607
Education surcharges and local education
surcharges 125,103,191 193,572,818
Stamp duty 156,907,291 167,033,833
Land use tax 59,008,233 50,378,527
Others 22,338,399 34,124,894
Total 1,132,985,865 1,275,171,339
108
48 Selling and distribution expenses
2023 2022
Warranty provisions 1,840,608,669 2,390,095,031
Staff costs 1,152,898,586 1,112,021,277
Share-based payments 47,456,891 97,853,078
Others 695,976,059 633,320,911
Total 3,736,940,205 4,233,290,297
49 General and administrative expenses
2023 2022
Staff costs 3,190,433,935 3,251,030,370
Depreciation and amortisation 935,214,349 971,573,303
Share-based payments 106,565,976 238,162,832
Repair expense 41,921,740 68,934,663
Others 1,670,739,540 1,717,935,838
Total 5,944,875,540 6,247,637,006
50 Research and development expenses
2023 2022
Staff costs 4,696,640,452 4,601,448,025
Depreciation and amortisation 2,263,292,470 2,000,893,037
Material expenses 1,692,001,767 1,907,254,468
Share-based payments 134,440,962 269,690,937
Others 2,533,127,437 2,321,482,210
Total 11,319,503,088 11,100,768,677
109
51 Financial expenses
2023 2022
Interest expenses from loans 4,093,007,199 4,033,749,371
Less: Borrowing costs capitalised 556,117,300 461,537,933
Interest income from bank deposits (2,032,287,888) (1,483,022,892)
Exchange (gains) / losses (439,326,037) 258,458,498
Other financial expenses 85,034,572 97,483,531
Total 1,150,310,546 2,445,130,575
The interest rate per annum, at which the borrowing costs were capitalised by the Group,
was 2.95% ~ 3.95% (2022: 3.25% ~ 4.25%) for the year.
52 Other income
2023 2022
Government grants related to assets 547,154,297 739,587,184
Government grants related to income 3,443,984,813 4,717,326,643
Weighted deduction of input VAT 177,734,568 4,064,149
Others 33,459,478 24,551,348
Total 4,202,333,156 5,485,529,324
The amount of government subsidies related to income received by the Group in 2023 and
directly included in other income was RMB 1,150,954,879.
110
53 Investment income
Note 2023 2022
Income from long-term equity investments
accounted for using the equity method V.11 702,555,344 528,103,680
Investment income from disposal of long-
term equity investments 1,581,850 829,872,568
Dividend income from investments in other
equity instruments V.12 28,419,020 35,354,468
Including: Dividend income from
investments in other equity instruments
held at the balance sheet date 28,419,020 35,354,468
Investment income from disposal of
financial assets held for trading 69,166,228 116,153,975
Gains from remeasurement of remaining
equity interests to fair value upon loss of
control - 4,266,631,856
Others 8,987,200 318,151,337
Total 810,709,642 6,094,267,884
54 Gains from changes in fair value
Item 2023 2022
Financial assets held for trading 291,542,233 159,344,584
55 Credit losses
Item 2023 2022
Accounts receivable 15,213,883 49,897,296
Other receivables 3,328,671 1,679,930
19,644 -
otes receivable
Total 18,562,198 51,577,226
111
56 Impairment losses
2023 2022
Impairment losses of inventories 2,202,962,576 6,975,372,718
Impairment losses of fixed assets 199,363,784 143,071,492
Impairment losses of construction in progress 3,086,619 29,768,263
Impairment losses of contract assets 817,655 -
Impairment losses of long-term equity investments - 8,503,403
Impairment losses of goodwill - 147,755,754
Total 2,406,230,634 7,304,471,630
57 Gains from asset disposals
Amount recognised
in extraordinary
gain and loss in
Item 2023 2022 2023
Gains from disposal of fixed assets 9,798,475 7,963,317 9,798,475
Gains from disposal of right-of-use assets 3,291,911 3,002,239 3,291,911
Total 13,090,386 10,965,556 13,090,386
58 Non-operating income and non-operating expenses
(1) Non-operating income by item is as follows:
Amount recognised
in extraordinary
gain and loss in
Item 2023 2022 2023
Government grants 13,138,657 1,751,445 13,138,657
Gain on disposal of non-current assets 10,212,047 1,448,647 10,212,047
Revenue from the recycling and disposal of
surplus waste 176,876,507 26,348,893 176,876,507
Others 183,768,952 133,693,872 183,768,952
Total 383,996,163 163,242,857 383,996,163
Government grants recognised in profit or loss for the current period
Item 2023 2022
Policy incentives and others 13,138,657 1,751,445
112
(2) Non-operating expenses
Amount recognised
in extraordinary
gain and loss in
2023 2022 2023
Donations provided 4,201,070 28,491,697 4,201,070
Losses from scrapping of non-current assets 42,927,593 17,322,542 42,927,593
Others 22,520,694 41,435,304 22,520,694
Total 69,649,357 87,249,543 69,649,357
59 Income tax expenses
Note 2023 2022
Current tax expense based on tax law and
regulations 1,311,971,433 1,675,605,623
Changes in deferred tax assets/liabilities (1) 151,155,913 116,115,039
Total 1,463,127,346 1,791,720,662
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
2023 2022
Origination and reversal of temporary differences 151,155,913 116,115,039
(2) Reconciliation between income tax expenses and accounting profit:
2023 2022
Profit before taxation 1,832,998,675 51,218,939
Expected income tax expenses at tax rate of 15% 274,949,801 7,682,841
Add: Effect of different tax rates applied by
subsidiaries 18,028,526 (14,751,718)
Effect of non-deductible costs, expenses and
losses 51,628,306 315,429,605
Tax effect of weighted deduction and tax
preference (1,017,881,773) (2,652,168,644)
Utilisation of prior year tax losses (269,688,693) (49,695,309)
Tax effect of deductible losses of deferred tax
assets not recognised 2,326,078,995 4,456,877,895
Tax effect of deductible temporary differences
of deferred tax assets not recognised 80,012,184 (271,654,008)
Income tax expenses 1,463,127,346 1,791,720,662
113
60 Basic earnings per share and diluted earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable to
ordinary shareholders of the Company by the weighted average number of ordinary shares
outstanding. The Group does not have any potential dilutive ordinary shares for the listed
years.
2023 2022
Consolidated net profit attributable to shareholders
of the Company 2,547,435,360 7,541,423,198
Less: Current interest of other equity instruments 118,551,232 530,695,890
Less: Current dividends of restricted shareholders 17,173,897 64,525,832
Consolidated net profit attributable to ordinary
shareholders of the Company 2,411,710,231 6,946,201,476
Weighted average number of ordinary shares
outstanding (shares) 37,429,510,530 37,502,641,911
Basic earnings per share (RMB/share) 0.06 0.19
Weighted average number of ordinary shares is calculated as follows:
2023 2022
Issued ordinary shares at the beginning of the year 37,355,546,569 37,638,356,849
Add: Weighted average number of ordinary shares
issued in current period - -
Add: Weighted average number of restricted shares
released from lock-up in current period 73,963,961 -
Less: Weighted average number of ordinary shares
repurchased in current period - 135,714,938
Weighted average number of ordinary shares at the
end of the year 37,429,510,530 37,502,641,911
114
61 Cash flow statement
(1) Cash relating to operating activities
a. Proceeds relating to other operating activities:
Item 2023 2022
Government grants received 5,323,824,411 6,165,190,561
Restricted cash at bank and on hand as well as
others related to operating activities 821,660,520 1,232,073,535
Total 6,145,484,931 7,397,264,096
b. Payments relating to other operating activities:
Item 2023 2022
Expenses paid during the period 7,613,110,071 7,129,101,409
(2) Cash relating to investing activities
a. Proceeds relating to other investing activities:
Item 2023 2022
Interest income 1,658,880,796 1,303,694,043
Restricted monetary funds and others related to
investing activities 2,281,607,894 8,248,427
Total 3,940,488,690 1,311,942,470
115
(3) Cash relating to financing activities
a. Proceeds relating to other financing activities:
Item 2023 2022
Cash received for disposing of subsidiaries without
a change in control - 770,432,703
Others - 894,920
Total - 771,327,623
b. Payments relating to other financing activities:
Item 2023 2022
Acquisition of non-controlling interests of
subsidiaries 7,429,009,200 1,048,154,539
Principal and interest related to leases and others 467,134,209 1,500,840,937
Total 7,896,143,409 2,548,995,476
c. Changes in liabilities arising from financing activities:
Additions during the year Decreases during the year
Balance at the
beginning of the Balance at the
year Cash Non-cash Cash Non-cash end of the year
Short-term loans 2,373,938,871 1,064,102,075 1,053,331,132 (2,745,187,544) - 1,746,184,534
Long-term loans (including non-current
liabilities due within one year) 145,074,669,828 26,277,758,556 7,293,169,349 (32,878,107,922) - 145,767,489,811
Lease liabilities (including non-current
liabilities due within one year) 656,888,776 - 429,349,128 (375,398,148) - 710,839,756
Long-term payables (including non-current
liabilities due within one year) 372,704,917 - 29,861,870 (183,777,001) - 218,789,786
Other non-current liabilities (including non-
current liabilities due within one year) 3,010,215,805 - 26,806,261 (536,500,000) - 2,500,522,066
Total 151,488,418,197 27,341,860,631 8,832,517,740 (36,718,970,615) - 150,943,825,953
116
62 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
2023 2022
(a) Reconciliation of net profit / (loss) to cash
flows from operating activities:
Net profit / (loss) 369,871,329 (1,740,501,723)
Add: Credit losses 18,562,198 51,577,226
Impairment loss 2,406,230,634 7,304,471,630
Depreciation of fixed assets,
investment properties and right-of-
use assets 33,721,207,174 33,422,031,705
Amortisation of intangible assets 955,466,291 995,315,014
Amortisation of long-term deferred
expenses 162,353,520 83,058,206
Gains from disposal of fixed assets,
intangible assets, and other long-
term assets (13,090,386) (10,965,556)
Losses from scrapping of fixed assets
and intangible assets 32,715,546 15,873,895
Financial expenses 2,567,467,227 4,070,314,610
Gains from changes in fair value (291,542,233) (159,344,584)
Investment income (810,709,642) (6,094,267,884)
Share-based payments 307,160,605 649,427,866
Change in deferred income (393,295,377) (1,259,742,279)
Change in deferred tax assets (26,847,208) 25,329,486
Change in deferred tax liabilities 178,771,023 140,074,643
Increase in inventories (1,825,979,018) (3,360,776,944)
Increase / ( decrease) in operating
receivables (3,904,919,786) 7,975,232,270
Increase in operating payables 4,781,932,585 914,859,724
Safety fund 66,472,402 -
Net cash flows from operating activities 38,301,826,884 43,021,967,305
117
(b) Change in cash and cash equivalents:
2023 2022
Cash and cash equivalents at the end of the
year 52,092,981,748 64,382,037,764
Less: Cash and cash equivalents at the
beginning of the year 64,382,037,764 76,623,486,083
Net decrease in cash and cash equivalents (12,289,056,016) (12,241,448,319)
(2) Information on acquisition or disposal of subsidiaries during the current year:
Net proceeds for acquisition of subsidiaries:
2023 2022
Cash or cash equivalents paid during the
year for acquiring subsidiaries during the
year (150,000,000) -
Less: Cash and cash equivalents held by
acquired subsidiaries 209,293,141 -
Net proceeds for acquisition of subsidiaries 59,293,141 -
Net payment for acquisition of subsidiaries:
2023 2022
Cash or cash equivalents paid during the
year for acquiring subsidiaries during the
year (2,083,597,236) -
Less: Cash and cash equivalents held by
acquired subsidiaries 1,918,264,097 -
Net payment for acquisition of subsidiaries (165,333,139) -
Net proceeds for disposal of subsidiaries:
2023 2022
Cash or cash equivalents received during
the year for disposing of subsidiaries
during the year - 1,248,072,000
Less: Cash and cash equivalents held by
acquired subsidiaries - 311,313,078
Net cash received for disposing of
subsidiaries - 936,758,922
118
Net payment for disposal of subsidiaries:
2023 2022
Cash or cash equivalents received during
the year for disposing of subsidiaries
during the year - -
Less: Cash and cash equivalents held by
acquired subsidiaries - 144,689,766
Net payment for disposal of subsidiaries - (144,689,766)
(3) Details of cash and cash equivalents
2023 2022
Cash on hand 802,967 896,267
Bank deposits available on demand 52,089,093,133 64,378,531,680
Other monetary funds available on demand 3,085,648 2,609,817
Closing balance of cash and cash equivalents 52,092,981,748 64,382,037,764
Note: The cash and cash equivalents disclosed above do not include the interest accrued
on bank deposits at the end of the period, bank deposits with fixed interest rate and
the use of other currency funds subject to restrictions.
(4) Monetary funds other than cash and cash equivalents
Item 2023 2022 Rationale
Held for investment
Bank deposits with interest at fixed rates 17,740,553,353 - purposes
Mainly refer to margin
deposits pledged for the
issuance of bills
Margin deposits 1,869,539,464 4,027,358,544 payable
Total 19,610,092,817 4,027,358,544
(5) Explanation for presentation of cash flows on a net basis
Relevant facts and
Item circumstances Basis for presentation on a net basis Financial impact
Amounts of restricted Cash inflows and outflows for fast-
deposits placed and turnover, high-value, short-term
recovered are presented items can be presented on a net
Restricted monetary funds on a net basis basis Nil
119
63 Assets with restrictive ownership titles or right of use
2023
Item Book balance Book value Restricted type Restricted circumstances
Notes to the
financial Notes to the financial
Cash at bank and on hand 1,869,539,464 1,869,539,464 statements V.1 statements V.1
Endorsed with resource and
Bills receivable 230,354,069 230,354,069 Pledged pledged for drawing bill
Investment properties 101,775,150 100,605,150 Mortgaged Mortgaged as collateral
Fixed assets 237,742,564,332 136,319,471,935 Mortgaged Mortgaged as collateral
Construction in progress 2,925,304,165 2,925,304,165 Mortgaged Mortgaged as collateral
Intangible assets 1,806,103,571 1,546,929,316 Mortgaged Mortgaged as collateral
Total 244,675,640,751 142,992,204,099
2022
Item Book balance Book value Restricted type Restricted circumstances
Notes to the
financial Notes to the financial
Cash at bank and on hand 4,027,358,544 4,027,358,544 statements V.1 statements V.1
Endorsed with resource and
Bills receivable 28,239,380 28,239,380 Pledged pledged for drawing bill
Investment properties 94,676,065 39,718,001 Mortgaged Mortgaged as collateral
Fixed assets 218,690,717,728 140,418,857,377 Mortgaged Mortgaged as collateral
Construction in progress 2,051,101,917 2,051,101,917 Mortgaged Mortgaged as collateral
Intangible assets 1,658,448,442 1,461,125,786 Mortgaged Mortgaged as collateral
Total 226,550,542,076 148,026,401,005
120
VI. Research and development expenses
1 Presentation by nature
Item 2023 2022
Labour costs 4,722,235,784 4,601,448,025
Material expenses 1,700,125,252 1,907,254,468
Depreciation and amortisation 2,269,453,425 2,000,893,037
Share-based payments 134,440,962 269,690,937
Others 2,537,013,467 2,321,482,210
Total 11,363,268,890 11,100,768,677
Including: research and development
expenditures that are expensed 11,319,503,088 11,100,768,677
research and development
expenditures that are capitalised 43,765,802 -
2 Expenditures on research and development projects which are eligible for capitalisation
Additions due to
business
combinations
Balance at involving
the entities not Internal Recognised as
beginning under common development intangible Balance at the
Item of the year control expenditure assets end of the year
HC SemiTek Corporation LED and Micro-
LED technology development - 155,132,690 43,765,802 (31,920,961) 166,977,531
121
VII. Change of consolidation scope
1 Business combination involving entities not under common control
(1) Business combinations involving entities not under common control occurred during the year
Acquiree from acquisition date to 31 December 2023
Acquisition date of Cost of equity Shareholding Acquisition Basis of acquisition
Entity name equity investment investment acquired (%) method Acquisition date date determination Income Net loss Net cash outflow
Achieving actual
control by holding
more than half of
Beijing United Ultra High-Definition the Board of
Video Technology Collaboration Capital Directors of
Center Co., Ltd. 13 January 2023 152,990,214 56.28% increase 16 January 2023 acquiree 66,154,253 (31,052,687) (85,861,222)
Achieving actual
control by holding
Subscription more than half of
of non-public the Board of
offering Directors of
HC SemiTek Corporation 28 July 2023 2,083,597,236 23.01% shares 31 August 2023 acquiree 1,252,521,862 (372,160,575) (593,987,223)
Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd. was established in November 2018 and headquartered in
Beijing, China, which is mainly engaged in technology promotion and application services, its business scope includes 8K design and
development, integration, recording, production, rebroadcasting, and content production.
HC SemiTek Corporation was established in November 2005 and headquartered in Wuhan, China, which is mainly engaged in the research,
development, production and sales of LED chips, LED epitaxial wafers, sapphire substrates, and third-generation semiconductor compounds
GaN power electronics devices. Prior to the combination, the ultimate controlling party of HC SemiTek Corporation was the State-owned Assets
Supervision and Administration Commission of Zhuhai Government.
122
(2) Acquisition cost and goodwill
Beijing Zhonglianhe Ultra HD
Collaborative Technology Center Co.,
Acquisition cost Ltd. HC SemiTek Corporation
Carrying amount Fair value Carrying amount Fair value
Cash 150,000,000 150,000,000 2,083,597,236 2,083,597,236
Equity interests held before acquisition
date 1,210,671 2,990,214 - -
Total acquisition cost 151,210,671 152,990,214 2,083,597,236 2,083,597,236
Less: Share of the fair value of the
identifiable net assets acquired 138,704,367 2,054,001,148
Goodwill 14,285,847 29,596,088
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
Beijing Zhonglianhe Ultra HD Collaborative
Technology Center Co., Ltd. HC SemiTek Corporation
Carrying amount Fair value Carrying amount Fair value
Assets:
Current assets 227,887,259 227,887,259 5,252,742,512 5,252,742,512
Non-current assets 74,536,116 92,067,362 6,854,631,456 7,853,067,925
Liabilities:
Current liabilities 8,633,836 8,633,836 2,853,491,561 2,853,491,561
Non-current liabilities 68,283,874 72,666,686 1,377,478,403 1,325,760,217
Net assets 225,505,665 238,654,099 7,876,404,004 8,926,558,659
Less: Non-controlling interests 98,591,077 99,949,732 6,064,043,443 6,872,557,511
Net assets acquired 126,914,588 138,704,367 1,812,360,561 2,054,001,148
If there is an active market for the above identifiable assets, the quoted prices in the active
market are used to establish their fair value; if there is no active market, their fair values are
estimated based on the market prices of the same or similar types of assets which have an
active market; if there is no active market for the same asset or similar types of assets,
valuation techniques are used to determine the fair value.
For the above identifiable liabilities, the payable amount or the present value of the
payable amount is its fair value.
2 Other reasons for change of consolidation scope
Except for the increase in the consolidation scope due to the above-mentioned business
combination involving entities not under common control, other increases in the consolidation
scope during the year were new subsidiaries established during the year, and the decreases
in the consolidation scope were cancellations of subsidiaries during the year.
123
VIII. Interests in other entities
1 Interests in subsidiaries
(1) Composition of the Group
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Beijing BOE Optoelectronics Beijing, Research and development (“R&D”), design and manufacturing USD Founded by
Technology Co., Ltd. China Beijing, China of TFT-LCD 649,110,000 - 100% investment
Business combinations
Chengdu BOE Optoelectronics Chengdu, Chengdu, R&D, design, manufacturing, and sale of new display devices RMB involving entities not
Technology Co., Ltd. China China and components 25,000,000,000 100% - under common control
Investment, construction, R&D, production and sales of the Business combinations
Hefei BOE Optoelectronics Technology Hefei, relevant products of thin film transistor LCD and its auxiliary RMB involving entities not
Co., Ltd. China Hefei, China products 2,700,000,000 100% - under common control
Beijing BOE Display Technology Co., Beijing, RMB Founded by
Ltd. China Beijing, China Development of TFT-LCD, manufacturing and sale of LCD 8,941,456,800 97.17% 2.83% investment
Investment, construction, R&D, production and sales of the Business combinations
Hefei Xinsheng Optoelectronics Hefei, relevant products of thin film transistor LCD and its auxiliary RMB involving entities not
Technology Co., Ltd. China Hefei, China products 9,750,000,000 99.97% 0.03% under common control
Ordos,
Ordos Yuansheng Optoelectronics Co., China Ordos, China Manufacture and sales of AM-OLED products and auxiliary RMB Founded by
Ltd. products 11,804,000,000 100% - investment
R&D, production and sales of semi-conducting display devices, Business combinations
Chongqing BOE Optoelectronics Chongqing, Chongqing, complete machine and related products; import & export of RMB involving entities not
Technology Co., Ltd. China China goods and technology consulting 3,845,200,000 100% - under common control
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 Business combinations
Fuzhou BOE Optoelectronics Fuzhou, Fuzhou, and regulations, operations may be conducted only with the RMB involving entities not
Technology Co., Ltd. China China approval of the relevant government authorities). 17,600,000,000 86.08% - under common control
Beijing, RMB Founded by
Beijing BOE Video Technology Co., Ltd. China Beijing, China Investment platform, sales of LCD 5,636,475,800 100% - investment
124
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Beijing BOE Vacuum Electronics Co., Beijing, RMB Founded by
Ltd. China Beijing, China Manufacture and sale of vacuum electronic products 33,250,000 57.89% - investment
Beijing BOE Vacuum Technology Co., Beijing, RMB Founded by
Ltd. China Beijing, China Manufacture and sale of electronic tubes 32,000,000 100% - investment
Beijing, Management of engineering projects; real estate development; RMB Founded by
Beijing Yinghe Century Co., Ltd. China Beijing, China public parking lot for motor vehicles service; market survey 233,105,200 100% - investment
BOE Optical Science and technology Suzhou, Suzhou, R&D, production and sales of LCD, back light for display and RMB Founded by
Co., Ltd. China China related components 826,714,059 95.17% - investment
BOE Hyundai LCD (Beijing) Display Beijing, Development, manufacture and sale of liquid display for mobile USD Founded by
Technology Co., Ltd. China Beijing, China termination 5,000,000 75% - investment
BOE (Hebei) Mobile Technology Co., Langfang, Langfang, Manufacture and sale of mobile flat screen display technical RMB Founded by
Ltd. China China products and related services 1,358,160,140 100% - investment
Design, consultancy and service of solar cell, photovoltaic
Beijing BOE Energy Technology Co., Beijing, system, wind power system and solar thermal system as well RMB Founded by
Ltd. China Beijing, China as the assembly units; energy-saving service 1,242,690,058 68.40% - investment
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
Beijing BOE Multimedia Technology Beijing, authorities; business activities prohibited and restricted by the RMB Founded by
Co., Ltd. China Beijing, China industrial policies of the state and the city.) 400,000,000 100% - investment
Beijing, Technology promotion services, property management, sales of RMB Founded by
Beijing BOE Life Technology Co., Ltd. China Beijing, China electronic products 24,000,000 100% - investment
125
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Ordos,
Ordos City Haosheng Energy China Ordos, China RMB Founded by
Investment Co., Ltd. Energy investment 37,440,000 - 100% investment
Processing, manufacturing and sales of precision electronic
components, semi-conductor devices, micro modules,
Beijing, microelectronic devices and electronic materials; import & RMB Founded by
BOE Semi-conductor Co., Ltd. China Beijing, China export of goods 11,250,000 84% - investment
Hong Kong, British Virgin USD Founded by
BOE Optoelectronics Holding Co., Ltd. China Islands Investment holding 1,000,000,000 100% - investment
KRW Founded by
BOE (Korea) Co., Ltd. Korea Korea Wholesale and retail trade 95,000,000 100% - investment
Business combinations
BOE Healthcare Investment & Beijing, RMB involving entities not
Management Co., Ltd. China Beijing, China Investment management and project investment 18,300,000,000 100% - under common control
Colour TV set, display tube, colour RPTV projection tube and Business combinations
Beijing, materials of electronic components; property management and RMB involving entities not
Beijing Matsushita Colour CRT Co., Ltd. China Beijing, China parking services, etc. 325,754,049 88.80% - under common control
Business combinations
Hefei BOE Display Technology Co., Hefei, Investment, R & D and production of products related to TFT- RMB involving entities not
Ltd. China Hefei, China LCD and the supporting facility 24,000,000,000 36.67% - under common control
Beijing BOE Technology Development Beijing, RMB Founded by
Co., Ltd. China Beijing, China Development, transfer, consulting and service of technology 1,000,000 100% - investment
Hefei BOE Zhuoyin Technology Co., Hefei, Investment, construction, R&D, production and sales of RMB Founded by
Ltd. China Hefei, China products related to OLED display device and auxiliary products 800,000,000 75% - investment
Development, construction, property management and
supporting service of industrial plants and supporting facilities;
information consulting of real estate; lease of commercial
Beijing, facilities, commercial attendants and the supporting service RMB Founded by
Beijing BOE Real Estate Co., Ltd. China Beijing, China facilities; motor vehicles public parking service 55,420,000 70% - investment
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
Beijing, technologies, agency of import & export; manufacturing RMB Founded by
Beijing BOE Marketing Co., Ltd. China Beijing, China consignment of electronic products and LCD devices 50,000,000 100% - investment
126
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Beijing Zhongxiangying Technologies Beijing, Technology promotion services, property management, sales of RMB Founded by
Co., Ltd. China Beijing, China electronic products 109,767,000 91.10% - investment
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;
Yunnan Invensight Optoelectronics Kunming, Kunming, import and export of goods and technologies; property leases, RMB Founded by
Technology Co., Ltd. China China machinery and equipment leases 3,040,000,000 79.10% - investment
R&D, production and sales of flexible AMOLED, the products Business combinations
are mainly involving
Mianyang BOE Optoelectronics Mianyang, Mianyang, used in smart phones, wearable devices, car display, AR/VR, RMB entities not under
Technology Co., Ltd. China China etc. 26,000,000,000 83.46% - common control
Formation of X-ray sensors, microfluidic chips, biochemical
chips, gene chips, security sensors, microwave antennas,
biosensors, logistics network technology and other
Beijing BOE Sensing Technology Co., Beijing, semiconductor sensors, technology testing, technical RMB Founded by
Ltd. China Beijing, China consulting, technical services, technology transfer 4,786,482,400 100% - investment
Business combinations
involving
Wuhan BOE Optoelectronics Wuhan, Investing, researching, manufacturing and selling TFT-LCD RMB entities not under
Technology Co., Ltd. China Wuhan, China products and accessory products 26,000,000,000 47.14% - common control
Business combinations
R&D, manufacture and sales of semiconductor display devices, involving
Chongqing BOE Display Technology Chongqing, Chongqing, whole widget and relevant products, import and export of goods RMB entities not under
Co., Ltd. (“Chongqing BOE Display”) China China and technical consulting 26,000,000,000 38.46% - common control
R&D, production and sale of TFT-LCD panels, colour filters and
LCD whole-widget modules; providing products and business- Business combinations
related services, as well as other business activities related to involving
Nanjing BOE Display Technology Co., Nanjing, Nanjing, the above; import and export of proprietary and agent RMB entities not under
Ltd. China China commodities and technologies 17,500,000,000 80.83% - common control
127
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Hefei, R&D, production and sales of Mini LED backlight components USD Founded by
Hefei BOE Xingyu Technology Co., Ltd. China Hefei, China and Mini LED display module components 115,380,000 65.00% - investment
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 Business combinations
and electronic products, technical services; business involving
Fuzhou BOE Display Technology Co., Fuzhou, Fuzhou, management consulting; property management; house rental; RMB entities not under
Ltd. (“Fuzhou BOE Display”) China China machinery and equipment rental 50,000,000 43.46% - common control
Beijing, RMB Founded by
BOE Innovation Investment Co., Ltd. China Beijing, China Project investment and investment management 4,577,000,000 100% - investment
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
Chengdu BOE Display Techlogy Co., Chengdu, Chengdu, laws and regulations, operations are conducted in accordance RMB Founded by
Ltd. (Chengdu BOE Display) China China with the law and business license.) 38,000,000,000 52.63% - investment
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;
Beijing, enterprise management consulting; sales of computer, software RMB Founded by
BOE Mled Technology Co., Ltd. China Beijing, China and auxiliary equipment, electronic products. 2,140,000,000 100% - investment
Provision of hardware and software integrated system solutions
for the IoT market segment; intelligent city, intelligent transport,
BOE Smart Technology Co., Ltd. Beijing, intelligent finance, intelligent park and the display terminal RMB Founded by
(Smart Technology) China Beijing, China products such as the intelligent all-in-one machines 6,521,250,000 100% - investment
128
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
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
Beijing, activities prohibited and restricted by the industrial policies of RMB Founded by
BOE Education Technology Co., Ltd. China Beijing, China the state and the city.) 55,000,000 100% - investment
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
Dongfang Chengqi (Beijing) Business Beijing, authorities; business activities prohibited and restricted by the RMB Founded by
Technology Co., Ltd. China Beijing, China industrial policies of the state and the city.) 10,000,000 100% - investment
129
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
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
BOE Environmental Energy Technology Beijing, construction and municipal infrastructure projects; construction RMB Founded by
Co., Ltd. China Beijing, China labour subcontracting. 100,000,000 100% - investment
R&D, production and sales of TFT-LCD panels and modules,
liquid crystal display monitors, televisions, instruments, Business combinations
machinery equipment and accessories as well as provision of involving
Chengdu BOE Display Sci-tech Co., Chengdu, Chengdu, technical services; foreign trade in form of import and export of RMB entities not under
Ltd. China China goods and technology 21,550,000,000 35.03% - common control
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
Beijing BOE Chuangyuan Technology Beijing, management; machinery and equipment leasing; manufacturing RMB Founded by
Co., Ltd. (Chuangyuan Technology) China Beijing, China of other electronic devices. 14,500,000,000 60.21% - investment
130
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Primarily engaged in technical services, technology
Beijing, Beijing, development; manufacturing of computer software and RMB
Beijing Shiyan Technology Co., Ltd. China China hardware, as well as peripheral equipment. 209,000,000 80% - Founded by investment
Mianyang BOE Electronic Technology Investment, research and development, production and sales of
Co., Ltd. (Mianyang Electronic Mianyang, Mianyang, products related to semiconductor display and the supporting RMB
Technology) China China products 2,400,000,000 100% - Founded by investment
Research, development, production and sales of LED chips, LED Business combination
Wuhan, Wuhan, epitaxial wafers, sapphire substrates, and third-generation RMB involving entities not
HC SemiTek Corporation China China semiconductor compounds GaN power electronics devices 1,616,698,797 23.01% - under common control
131
The Company signed an agreement of acting in concert with Hefei Core Screen Industrial
Investment Fund (Limited Partnership) on 23 January 2019. Hefei Core Screen Industrial
Investment Fund (Limited Partnership) agreed to act as a person acting in concert according
to the wishes of the Company, and exercised the voting rights unconditionally and irrevocably
in accordance with the opinions of the Company. Therefore, the Company’s voting right ratio
to 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 25
December 2018 and 5 February 2021. Wuhan Airport Economic Development Zone
Industrial Development Investment Group Co., Ltd. and Hubei Changbai Industrial
Investment Fund Partnership (limited Partnership) agreed to follow the Company’s will to act
as the persons acting in concert, unconditionally and irrevocably exercising voting rights in
accordance with the opinions of the Company, the voting rights of the Company to Wuhan
BOE is 100%.
The Company signed an agreement of acting in concert with shareholders of Chongqing
BOE Display, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership
(Limited Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. on 25
December 2018. The Company signed an agreement of acting in concert with Chongqing
Jingping Equity Investment Fund Partnership (Limited Partnership) on 31 March 2021. The
Company signed an agreement of acting in concert with Chongqing Jianxin Junheng Private
Equity Fund Partnership (Limited Partnership) on 30 June 2021. Chongqing Strategic
Emerging Industry Equity Investment Fund Partnership (Limited Partnership), Chongqing
Yuzi Optoelectronic Industry Investment Co., Ltd., Chongqing Jingping Equity Investment
Fund Partnership (Limited Partnership) and Chongqing Jianxin Junheng Private Equity Fund
Partnership(Limited Partnership) agreed to act as persons acting in concert according to the
will of the Company, and exercise the voting rights unconditionally and irrevocably in
accordance with the opinions of the Company. Therefore, the proportion of voting rights of
the Company to Chongqing BOE is 100%.
The Company signed an agreement of acting in concert with shareholders of Fuzhou BOE
Display, Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou Urban
Construction Investment Group Co., Ltd. on 21 January 2019. Fuqing City Invested-
Construction Investment Group Co., Ltd. and Fuzhou Urban Construction Investment Group
Co., Ltd. agreed to act as persons acting in concert according to the will of the Company, and
exercise the voting rights unconditionally and irrevocably in accordance with the opinions of
the Company. Therefore, the proportion of voting rights of the Company to Fuzhou BOE
Display is 100%.
The Company signed a concerted action agreement with Chengdu Advanced Manufacturing
Industry Investment Co., Ltd., a shareholder of Chengdu Display Sci-tech, and Chengdu
Airport Xingcheng Investment Group Co., Ltd. on December 17, 2020. The Company signed
a concerted action agreement with Nanjing Zhongdian Panda Information Industry Group
Co., Ltd. on December 31, 2020, and signed a concerted action agreement with Zhongdian
Financial Investment Holding Co., Ltd. on June 28, 2022, A concerted action agreement was
signed with Ya'an Yashuang Investment Co., Ltd. on November 30, 2022, and Chengdu
Advanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport Xingcheng
Investment Group Co., Ltd., Ya'an Yashuang Investment Co., Ltd., Nanjing Zhongdian Panda
Information Industry Group Co., Ltd., and Zhongdian Financial Investment Holding Co., Ltd.
acted in concert with the wishes of the company, We unconditionally and irrevocably
exercise our voting rights in accordance with our company's opinions, so our company's
voting rights ratio in Chengdu Display Sci-tech is 96.75%.
132
The Company and New Sure Limited entered into the Share Voting Rights Management
Agreement on 4 November 2022, pursuant to which New Sure Limited agreed to
unconditionally and irrevocably delegate to the Company the exercise and management of
its voting, nomination and ancillary rights in respect of its holdings in HC SemiTek
Corporation; the Company and Yiwu Harmony Core Light Equity Investment Partnership
(Limited Partnership) signed an agreement on 10 November 2022, whereby YYiwu Harmony
Core Light Equity Investment Partnership (Limited Partnership) undertook that it would not,
individually, jointly or with the assistance of a third party, seek to obtain the control over HC
SemiTek Corporation; Zhuhai Huafa Technology Industry Group Co., Ltd. issued a
commitment letter to the Company on 10 November 2022, undertaking that Zhuhai Huafa
Technology Industry Group Co., Ltd. and its controlled entities will not seek the control over
HC SemiTek Corporation individually, jointly or with the assistance of third parties, and will
not form a concerted action relationship with the shareholders of HC SemiTek Corporation or
seek the control over HC SemiTek Corporation by way of entrustment, agreement, alliance or
signing of a concerted action agreement, etc. Therefore, the Company's percentage of voting
rights over HC SemiTek Corporation is 26.52%, which makes the Company a controlling
shareholder of HC SemiTek Corporation.
(2) Material non-wholly owned subsidiaries
Proportion of Losses
ownership interest attributable to Dividend declared Balance of non-
held by non- non-controlling to non-controlling controlling
controlling interests for the shareholders interests at the
Name of the subsidiary interests year during the year end of the year
Mianyang BOE 16.54% (3,998,675) - 3,554,429,180
Wuhan BOE 52.86% (157,799,681) - 12,993,173,506
Chongqing BOE Display 61.54% (792,915,395) - 14,775,015,526
(3) Key financial information about material non-wholly owned subsidiaries
The following table sets out the key financial information of the above subsidiaries without
offsetting internal transactions, but with adjustments made for the fair value adjustment at the
acquisition date and any differences in accounting policies:
Mianyang BOE Wuhan BOE Chongqing BOE Display
2023 2022 2023 2022 2023 2022
Current assets 10,753,172,652 12,372,285,496 6,885,618,252 7,442,285,566 8,098,980,132 8,590,561,462
Non-current assets 35,310,022,879 37,212,140,922 35,269,508,547 38,934,583,089 37,527,686,707 32,479,448,086
Total assets 46,063,195,531 49,584,426,418 42,155,126,799 46,376,868,655 45,626,666,839 41,070,009,548
Current liabilities 11,025,760,688 11,072,411,471 5,377,137,118 6,251,107,827 8,612,279,639 5,410,946,190
Non-current liabilities 13,547,536,533 17,008,183,759 12,197,638,748 15,254,879,708 13,005,587,192 12,186,708,120
Total liabilities 24,573,297,221 28,080,595,230 17,574,775,866 21,505,987,535 21,617,866,831 17,597,654,310
Operating income 19,379,451,169 16,357,203,835 14,876,922,434 12,845,309,881 4,226,393,760 883,001,124
Net loss (24,175,792) (2,301,228,643) (298,523,801) (3,788,455,205) (1,288,455,305) (327,058,484)
Total comprehensive income (24,175,792) (2,301,228,643) (298,523,801) (3,788,455,205) (1,288,455,305) (327,058,484)
Cash inflows / (outflows) in
operating activities 5,668,948,328 7,118,785,052 5,254,058,686 2,816,292,270 171,287,026 (185,310,156)
133
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 After changes of
interests interests
Hefei Display Technology 8.33% 36.67%
Chuangyuan Technology 79.31% 60.21%
(2) Impact from transactions with non-controlling interests and equity attributable to the
shareholders of the Company:
The changes in the shareholding of the Company in the owners of above-mentioned other
subsidiaries were caused by the capital increase/decrease of the Company and the capital
increase of their non-controlling interests or the failure to increase capital by the Company
and the non-controlling interests of the subsidiaries in equal proportion and the acquisition of
the non-controlling interests, which results in the decrease of capital reserves by RMB
1,219,955,094. See Note V. 41.
3 Interests in associates
Please see Note V.11(2) for details of the summarised financial information of the
associates.
No material restrictions on transfers of funds from investees to the Group. The judgement
basis of the Company and its subsidiaries to hold lower than 20% of the voting rights of other
entities but have significant influence on the entity is due to the fact that the Company and its
subsidiaries have seats in the board of directors of the entity, and the Company and
subsidiaries of the Company may have significant influence on the entity through the
representation of the directors in the process of formulating financial and operating policies.
IX. Risk related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in
the 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 above
risks and their sources, their changes during the year, and the Group’s objectives, policies
and processes for measuring and managing risks, and their changes during the year.
134
The Group aims to seek appropriate balance between the risks and benefits from its use of
financial instruments and to mitigate the adverse effects that the risks of financial instruments
have on the Group’s financial performance. Based on such objectives, the Group’s risk
management policies are established to identify and analyse the risks faced by the Group, to
set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities. The internal audit department of the Group undertakes
both regular and ad-hoc reviews of risk management controls and procedures.
1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. The Group’s credit risk is primarily
attributable to receivables. Exposure to these credit risks is monitored by management on an
ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions.
Management does not foresee any significant credit risks from these deposits and does not
expect 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 individual
credit evaluations are performed on all customers to determine the credit limit and terms
applicable to the customers. These evaluations focus on the customers’ financial position,
the external ratings of the customers and the record of previous transactions. Receivables
are due within 7 to 120 days from the date of billing. Debtors with balances that are past due
are 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 of
each customer. Therefore, significant concentrations of credit risk primarily arise when the
Group has significant exposure to individual customers. At the balance sheet date, 36%
(2022: 39%) of the Contract assets total accounts receivable were due from the five largest
customers of the Group. In addition, the accounts receivable not overdue or impaired is
mainly related to many clients who don’t have payment in arrears records recently.
The maximum exposure to credit risk is represented by the carrying amount of each financial
asset in the balance sheet. As mentioned in Note XIV, as at 31 December 2023 the Group
does not provide any external guarantees which would expose the Group or the Company to
credit risk.
135
2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that
are settled by delivering cash or another financial asset. The Company and its individual
subsidiaries are responsible for their own cash management, including short-term investment
of cash surpluses and the raising of loans to cover expected cash demands, subject to
approval by the Company’s board when the borrowings exceed certain predetermined levels
of authority. The Group’s policy is to regularly monitor its liquidity requirements and its
compliance with lending covenants, to ensure that it maintains sufficient reserves of cash,
readily realisable marketable securities and adequate committed lines of funding from major
financial institutions to meet its liquidity requirements in the short and longer term.
The following tables set out the remaining contractual maturities at the balance sheet date of
the Group’s financial liabilities, which are based on contractual undiscounted cash flows
(including interest payments computed using contractual rates or, if floating, based on rates
current at 31 December) and the earliest date the Group can be required to pay:
2023 Contractual undiscounted cash flow
More than 1 More than 3
Within 1 year or year but less years but less
on demand than 3 years than 5 years More than 5 Carrying amount
(inclusive) (inclusive) (inclusive) years Total of balance sheet
Financial liabilities
Short-term loans 1,773,280,214 - - - 1,773,280,214 1,746,184,534
Bills payable 919,313,033 - - - 919,313,033 919,313,033
Accounts payable 32,977,603,351 - - - 32,977,603,351 32,977,603,351
Other payables 19,487,760,965 - - - 19,487,760,965 19,487,760,965
Non-current liabilities due
within one year 24,831,720,125 - - - 24,831,720,125 24,437,027,442
Long-term loans 4,248,101,826 18,954,443,798 31,730,890,357 87,859,873,238 142,793,309,219 121,546,339,022
Lease liabilities - 253,329,174 164,561,752 240,102,072 657,992,998 542,141,496
Long-term payables - 76,675,721 43,243,078 74,598,363 194,517,162 171,611,393
Total 84,237,779,514 19,284,448,693 31,938,695,187 88,174,573,673 223,635,497,067 201,827,981,236
2022 Contractual undiscounted cash flow
More than 1
year but less More than 3 years
Within 1 year or on than 3 years but less than 5 Carrying amount
demand (inclusive) (inclusive) years (inclusive) More than 5 years Total 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
136
3 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to
cash flow interest rate risk and fair value interest risk, respectively. The Group determines
the appropriate weightings for fixed and floating rate interest-bearing instruments based on
current market conditions and performs regular reviews and monitoring to achieve an
appropriate mix of fixed and floating rate exposure. The Group does not enter into financial
derivatives to hedge interest rate risk.
(a) As at 31 December, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
2023 2022
Effective interest Effective interest
Item rate Amounts rate Amounts
Financial assets
- Cash at bank 1.00%~6.25% 34,032,083,693 0.70%~5.45% 36,597,334,927
Financial liabilities
- Short-term loans 0.38%~5.90% (1,427,826,333) 0.25%~5.90% (1,149,712,480)
- Other payables 0%~2.18% (3,000,000,000) 0%~2.18% (3,000,000,000)
- Non-current liabilities due within
one year 0%~6.51% (11,321,474,654) 0%~6.86% (7,841,491,191)
- Long-term loans 1.20%~6.37% (39,919,524,039) 0%~5.90% (25,324,584,996)
- Lease liabilities 3.50%~4.75% (542,141,496) 3.65%~4.75% (538,586,010)
- Long-term payables 4.20%-6.51% (171,611,393) 4.30%~6.86% (229,587,077)
Total (22,350,494,222) (1,486,626,827)
Floating rate instruments:
2023 2022
Effective interest Effective interest
Item rate Amounts rate Amounts
Financial assets
- Cash at bank 0.0001%~6.25% 37,628,227,990 0.0001%~5.30% 31,723,267,975
Financial liabilities
- Short-term loans 3.10%~3.60% (316,400,000) 5.65%~5.84% (1,218,525,680)
- Non-current liabilities due within
one year 1.00%~6.33% (12,588,822,776) 1.00%~7.44% (14,215,671,815)
- Long-term loans 1.00%~6.33% (81,623,331,304) 1.00%~7.44% (97,816,667,917)
Total (56,900,326,090) (81,527,597,437)
137
(b) Sensitivity analysis
As at 31 December 2023, it is estimated that a general increase / decrease of 100
basis points in interest rates of variable rate instrument, with all other variables held
constant, would decrease / increase the Group’s net profit and equity by RMB
481,870,000 (2021: RMB 679,150,000).
In respect of the exposure to cash flow interest rate risk arising from floating rate non-
derivative instruments held by the Group at the balance sheet date, the impact on the
net profit and owner’s equity is estimated as an annualised impact on interest expense
or income of such a change in interest rates. The analysis is performed on the same
basis for the previous year.
4 Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, short-term loans
and other assets and liabilities denominated in foreign currencies other than the functional
currency, the Group ensures that its net exposure is kept to an acceptable level by buying or
selling foreign currencies at spot rates when necessary to address short-term imbalances.
(a) The Group’s exposure as at 31 December to currency risk arising from recognized
foreign currency assets or liabilities is mainly denominated in US dollar. The amount of
the USD exposure is net liabilities exposure USD 191,267,567 (2022 net liabilities
exposure: USD 1,523,210,633), translated into RMB 1,354,690,797 (2022: RMB
10,608,552,775), using the spot rate at the balance sheet date. Differences resulting
from the translation of the financial statements denominated in foreign currency are
excluded.
(b) Assuming all other risk variables remained constant, a 5% strengthening / weakening
of the Renminbi against the US dollar at 31 December would have decreased /
increased both the Group’s equity and net profit by the amount RMB 105,886,060
(2022: increased / decreased RMB 136,665,926). The exchange difference that can be
capitalized for foreign currency specific borrowings has no impact on group’s equity
and net profit.
The sensitivity analysis above assumes that the change in foreign exchange rates had
been applied to re-measure those financial instruments held by the Group which
expose the Group to foreign currency risk at the balance sheet date. The analysis
excludes differences that would result from the translation of the financial statements
denominated in foreign currency. The analysis is performed on the same basis for the
previous year.
5 Other price risks
Other price risks include stock price risk and commodity price risk.
138
X. Fair value disclosure
The following table presents the fair value information and the fair value hierarchy, at the end
of the current reporting period, of the Group’s assets and liabilities which are measured at
fair value at each balance sheet date on a recurring or non-recurring basis. The level in
which fair value measurement is categorised is determined by the level of the fair value
hierarchy of the lowest level input that is significant to the entire fair value measurement. The
levels are defined as follows:
Level 1 inputs: unadjusted quoted prices in active markets that are observable at the
measurement date for identical assets or liabilities;
Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly
observable for underlying assets or liabilities;
Level 3 inputs: Inputs that are unobservable for underlying assets or liabilities;
1 Fair value of assets measured at fair value at the end of the year
31 December 2023
Level 1 Fair value Level 2 Fair value Level 3 Fair value
Assets Note measurement measurement measurement Total
Recurring fair value measurements
- Financial assets held for trading V.2 261,201,215 - 7,494,763,280 7,755,964,495
Including: Structured deposit
and wealth-
management
products - - 7,476,126,776 7,476,126,776
Investments in
equity instruments 261,201,215 - 18,636,504 279,837,719
- Receivables financing V.5 - - 408,534,622 408,534,622
- Investments in other equity
instruments V.12 169,355,368 - 325,274,209 494,629,577
- Other non-current financial assets V.13 - - 2,253,778,325 2,253,778,325
Including: Investments in
equity instruments - - 2,253,778,325 2,253,778,325
Total assets measured at fair value
on a recurring basis 430,556,583 - 10,482,350,436 10,912,907,019
31 December 2022
Level 1 Fair value Level 2 Fair value Level 3 Fair value
Assets Note measurement measurement measurement Total
Recurring fair value measurements
- Financial assets held for trading V.2 256,525,783 - 16,931,468,153 17,187,993,936
Including: Structured deposit
and wealth-
management
products - - 16,931,468,153 16,931,468,153
Investments in
equity instruments 256,525,783 - - 256,525,783
- Investments in other equity
instruments V.12 154,312,590 - 328,747,716 483,060,306
- Other non-current financial assets V.13 - - 2,022,967,681 2,022,967,681
Including: Investments in
equity instruments - - 2,022,967,681 2,022,967,681
Total assets measured at fair value
on a recurring basis 410,838,373 - 19,283,183,550 19,694,021,923
139
2 Basis of determining the market price for recurring and non-recurring fair value
measurements categorised within Level 1
The Group uses the active market quote as the fair value of financial assets within Level 1.
3 Valuation techniques used and the qualitative and quantitative information of key parameters
for recurring and non-recurring fair value measurements categorised within Level 3
For bank wealth management products measured at fair value, the fair value is determined
based on the discounted cash flow method.
Receivables financing that are subject to recurring Level 3 fair value measurement are bills
receivable with short remaining maturities, for which the fair value determined is equal to the
original carrying amount.
Equity instrument investments are unlisted equity investments held by the Group, including:
(i) For those who raised a new round of financing in 2023, the Group used the financing
price as the best estimates of their fair value;
(ii) For other investments in other equity instruments, since the operating environment,
operating conditions and financial status of the investee have not changed significantly
during the year, the Group uses the book investment cost as a reasonable estimate of
fair value for measurement.
4 During 2023, there were no changes in valuation technique of fair value. As at 31 December,
the Group held no assets and liabilities measured at fair value. All financial assets and
financial liabilities of the Group are carried at amounts not materially different from their fair
value.
XI. Related parties and related party transactions
1 Information about the parent of the Company
Percentage of Ultimate
Shareholding voting rights controlling party
Company name Registered place Business nature Registered capital percentage (%) (%) of the Company
Operation and
Area A, No. 6 management of
West 6th Street, state-owned
Sanlitun, assets within
Chaoyang authorisation, RMB
Beijing Electronics Holding Co., Ltd. District, Beijing etc. 3,139,210,000 0.73% 12.37% Yes
2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Group, refer to Note VIII.1.
140
3 Information about joint ventures and associates of the Company
Associates and joint ventures that have related party transactions with the Group during this
year or the previous year are as follows:
Name of entity Relationship with the Company
Associate of the Group and the
Beijing BOE Art Cloud Technology Co., Ltd. Company
Associate of the Group and the
Beijing Xindongneng Investment Management Co., Ltd. Company
Associate of the Group and the
Suzhou Chuangyi Culture Technology Co., Ltd. Company
Associate of the Group and the
TPV Display Technology (China) Limited Company
Associate of the Group and the
BOE Digital Technology Co., Ltd. Company
Associate of the Group and the
Beijing BOE Art Cloud (Suzhou)Technology Co., Ltd. Company
Associate of the Group and the
Beijing BOE Art Cloud (Hangzhou)Technology Co., Ltd. Company
Associate of the Group and the
Beijing BOE Art Cloud (Beijing)Technology Co., Ltd. Company
Beijing BOE Art Cloud (Yibin)Technology Co., Ltd. Associate of the Group and the
Company
Beijing Nissin Electronics Precision Component Co., Ltd. Associate of the Group and the
Company
Beijing Infi-Hailin Venture Investment (Limited Associate of the Group and the
Partnership) Company
Hefei Xin Jing Yuan Electronic Materials Co., Ltd. Associate of the Group
Beijing BOE Microbial Technology Co., Ltd. Associate of the Group
Biochain (Beijing) Science-Technology.Inc. Associate of the Group
BOE Houji Technology (Beijing) Co., Ltd. Associate of the Group
Vusion Group SA ( Formerly known as SES Imagotag SA
Co., Ltd.) Associate of the Group
Beijing Houji Zhilian Information Technology Co., Ltd. Associate of the Group
Hefei Jiangcheng Technology Co., Ltd. Associate of the Group
Subsidiary of associate of the
SES-Imagotag GmbH Co., Ltd. Group
Chongqing Maite Optoelectronics Co., Ltd. Subsidiary of associate of the
Group
Subsidiary of associate of the
Pervasive Displays Inc Group
Subsidiary of associate of the
Beijing Borcheng Medical Laboratory Co. Ltd. Group
141
4 Information on other related parties
Name of other related parties Related-party relationship
Beijing Smart-Aero Display Technology Co., Ltd. Under the same control of the ultimate holding company
Beijing Zhengdong Electronic Power Group Co., Ltd. Under the same control of the ultimate holding company
Beijing Information Technology College Under the same control of the ultimate holding company
Baic Electronics SK (Jiangsu) Technology Co., Ltd. Under the same control of the ultimate holding company
Beijing Electrical Control Jiuyi Industrial Development Under the same control of the ultimate holding company
Company
Beijing Electronic Digital Intelligence Technology Co., Under the same control of the ultimate holding company
Ltd.
BeiJing D.Park Cultural Development Co., Ltd. Under the same control of the ultimate holding company
Beijing C&W Intelligent Equipment Co., Ltd. Under the same control of the ultimate holding company
Beijng NAURA Microelectronics Equipment Co.,Ltd. Under the same control of the ultimate holding company
Beijing Zhaowei Technology Development Co., Ltd. Under the same control of the ultimate holding company
761 Workshop (Beijing) Technology Development Co., Under the same control of the ultimate holding company
Ltd.
Sevenstar Semiconductor Technologies Co.,Ltd. Under the same control of the ultimate holding company
Beijing Electronic Information Technology College Under the same control of the ultimate holding company
Beijing Ether Electronics Group co. , Ltd. Under the same control of the ultimate holding company
Beijing BOE Investment Development Co., Ltd. Under the same control of the ultimate holding company
Electronic City (Tianjin) Mobile Internet Industry Platform Under the same control of the ultimate holding company
Development Co., Ltd.
NAURA Technology Group Co., Ltd. Under the same control of the ultimate holding company
Beijing Yandong Microelectronic Co., Ltd. Under the same control of the ultimate holding company
Beijing Yandong Microelectronic Technology Co., Ltd. Under the same control of the ultimate holding company
Beijing Electronic City Shuzhi Technology Co., Ltd. Under the same control of the ultimate holding company
Beijing Dongdian Industrial Development Co., Ltd. Under the same control of the ultimate holding company
Beijing Electronics Holding & SK Technology Co., Ltd. Under the same control of the ultimate holding company
Beijing Zhengdong Power Equipment Installation Under the same control of the ultimate holding company
Engineering Co., Ltd.
Beijing Electric Intelligent Energy Co., Ltd. Under the same control of the ultimate holding company
Beijing Dahua Electronic Instrument Corporation Under the same control of the ultimate holding company
Beijing C&W Electronics(Group) Co., Ltd. Under the same control of the ultimate holding company
Beijing Sevenstar PV Group Co., Ltd. Under the same control of the ultimate holding company
Beijing C&W Zifu Equipment Technology Co., Ltd. Under the same control of the ultimate holding company
Beijing 798 Culture Technology Co., Ltd. Associate of enterprise that is under the same control of
the ultimate holding company
New Vision Micro.(Hong Kong) Co., Ltd. Associate of enterprise that is under the same control of
the ultimate holding company
Beijing Senju Electronic Materials Co., Ltd. Associate of enterprise that is under the same control of
the ultimate holding company
Shanghai New Vision Microelectronics Co., Ltd. Associate of enterprise that is under the same control of
the ultimate holding company
China Minsheng Banking Corp., Ltd. Other related parties
Beijing Yizhuang Environmental Technology Group Co., Other related parties
Ltd.
Nexchip Semiconductor Corporation Other related parties
Hefei Construction Investment and Holding Co., Ltd. Other related parties
Hefei Visionox Technology Co., Ltd. Other related parties
142
5 Transactions with related parties
The transactions below with related parties were conducted under normal commercial terms
or agreements.
(1) Purchase of goods and equipment, and receiving of services (excluding remuneration of key
management personnel).
The Group
Nature of transaction 2023 2022
Purchase of goods 663,371,654 658,905,000
Procurement of equipment 236,814,153 155,286,378
Receiving services 14,986,020 12,843,982
Payment of interest expenses 33,637,490 43,423,377
Total 948,809,317 870,458,737
The Company
Nature of transaction 2023 2022
Purchase of goods 34,372,208 32,203,231
Receiving services 127,843,351 63,840,655
Procurement of equipment 368,000 -
Payment of interest expenses 30,926,480 42,314,510
Total 193,510,039 138,358,396
(2) Sale of goods/rendering of services
The Group
Nature of transaction 2023 2022
Sale of goods 3,929,802,831 1,168,302,006
Rendering of services 23,418,868 12,004,788
Income from interest received 28,454,504 23,183,395
Total 3,981,676,203 1,203,490,189
143
The Company
Nature of transaction 2023 2022
Sale of goods 582,164 101,930
Rendering of services 4,610,851,622 4,742,920,134
Income from interest received 15,702,137 15,398,605
Total 4,627,135,923 4,758,420,669
(3) Leases
(a) As the lessor
The Group
Lease income Lease income
recognised in recognised in
Type of assets leased 2023 2022
Investment properties 9,823,412 7,925,143
The Company
Lease income Lease income
recognised in recognised in
Type of assets leased 2023 2022
Investment properties 65,795,509 65,287,838
144
(b) As the lessee
The Group
Rental expenses for practical Variable lease payments not
expedient of short-term leases and included in the measurement of Assumed interest expenses from
the leases of low-value assets the lease liability Rental payments lease liabilities Increased right-of-use assets
Type of assets
Name of lessor leased 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Beijing Dongdian Industrial Development Co.,
Ltd. Fixed assets - - - - 2,801,931 2,676,474 124,586 209,567 - -
Hefei Jiangcheng Technology Co., Ltd. Fixed assets 328,378 - - - - - - - - -
The Company
Rental expenses for practical Variable lease payments not
expedient of short-term leases and included in the measurement of Assumed interest expenses from
the leases of low-value assets the lease liability Rental payments lease liabilities Increased right-of-use assets
Type of assets
Name of lessor leased 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
eijing BOE Optoelectronics Technology Co.,
Ltd. Fixed assets - - - - 42,971,406 45,409,539 4,093,830 7,113,575 - -
145
(4) Funding from related parties
The Company
Name of related party Amount of funding Inception date Maturity date
Funds received
Subsidiary of the parent company 3,000,000,000 28/05/2018 Long-term
Subsidiary of the parent company 500,000,000 28/05/2019 Long-term
Subsidiary of the parent company 1,300,000,000 28/05/2019 Long-term
Subsidiary of the parent company 300,000,000 08/07/2020 Long-term
Subsidiary of the parent company 2,500,000,000 06/07/2020 Long-term
Subsidiary of the parent company 2,000,000,000 03/07/2020 Long-term
Subsidiary of the parent company 1,700,000,000 12/10/2020 Long-term
Subsidiary of the parent company 3,000,000,000 05/11/2020 Long-term
Subsidiary of the parent company 1,700,000,000 28/12/2020 Long-term
Subsidiary of the parent company 1,000,000,000 28/12/2020 Long-term
Subsidiary of the parent company 2,358,000,000 07/12/2020 Long-term
Subsidiary of the parent company 1,000,000,000 09/03/2021 Long-term
Subsidiary of the parent company 1,000,000,000 18/03/2021 Long-term
Subsidiary of the parent company 4,000,000,000 25/03/2021 Long-term
Subsidiary of the parent company 2,500,000,000 30/03/2021 Long-term
Subsidiary of the parent company 4,500,000,000 23/06/2021 Long-term
Subsidiary of the parent company 1,000,000,000 05/07/2021 Long-term
Subsidiary of the parent company 2,000,000,000 29/12/2021 Long-term
Subsidiary of the parent company 3,400,000,000 29/12/2021 Long-term
Subsidiary of the parent company 6,000,000,000 29/12/2021 Long-term
Subsidiary of the parent company 1,500,000,000 31/12/2021 Long-term
Subsidiary of the parent company 200,000,000 31/12/2021 Long-term
Subsidiary of the parent company 1,000,000,000 27/01/2022 Long-term
Subsidiary of the parent company 500,000,000 31/12/2021 Long-term
Subsidiary of the parent company 750,000,000 15/06/2022 Long-term
146
Name of related party Amount of funding Inception date Maturity date
Funds received
Subsidiary of the parent company 1,000,000,000 31/12/2021 Long-term
Subsidiary of the parent company 7,000,000,000 23/08/2022 Long-term
Subsidiary of the parent company 1,500,000,000 08/10/2022 Long-term
Subsidiary of the parent company 500,000,000 10/11/2022 Long-term
Subsidiary of the parent company 1,000,000,000 20/10/2022 Long-term
Subsidiary of the parent company 1,000,000,000 25/10/2022 Long-term
Subsidiary of the parent company 1,000,000,000 25/10/2022 Long-term
Subsidiary of the parent company 1,000,000,000 11/01/2023 Long-term
Subsidiary of the parent company 150,000,000 11/01/2023 Long-term
Subsidiary of the parent company 2,400,000,000 11/01/2023 Long-term
Subsidiary of the parent company 2,600,000,000 11/01/2023 Long-term
Subsidiary of the parent company 50,000,000 11/01/2023 Long-term
Subsidiary of the parent company 250,000,000 11/01/2023 Long-term
Subsidiary of the parent company 3,750,000,000 11/01/2023 Long-term
Subsidiary of the parent company 800,000,000 11/01/2023 Long-term
Subsidiary of the parent company 1,000,000,000 11/01/2023 Long-term
Subsidiary of the parent company 200,000,000 09/06/2023 Long-term
Subsidiary of the parent company 100,000,000 09/06/2023 Long-term
Subsidiary of the parent company 400,000,000 09/06/2023 Long-term
Subsidiary of the parent company 800,000,000 09/06/2023 Long-term
Subsidiary of the parent company 450,000,000 09/06/2023 Long-term
Subsidiary of the parent company 1,290,000,000 09/06/2023 Long-term
Subsidiary of the parent company 1,550,000,000 09/06/2023 Long-term
Subsidiary of the parent company 400,000,000 09/06/2023 Long-term
Subsidiary of the parent company 540,000,000 09/06/2023 Long-term
Subsidiary of the parent company 340,000,000 01/12/2023 Long-term
Total 79,778,000,000
147
Name of related party Amount of funding Inception date Maturity date
Funds provided
Subsidiary of the parent company 237,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 161,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 600,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 285,000,000 24/11/2020 Right to request return at any time
Subsidiary of the parent company 300,000,000 10/05/2022 Right to request return at any time
Subsidiary of the parent company 200,000,000 29/10/2020 Right to request return at any time
Subsidiary of the parent company 700,000,000 29/10/2020 Right to request return at any time
Subsidiary of the parent company 123,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 800,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 88,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 1,100,000,000 29/09/2022 Right to request return at any time
Subsidiary of the parent company 2,000,000,000 03/01/2023 Right to request return at any time
Subsidiary of the parent company 261,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 189,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 300,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 1,490,000,000 21/10/2020 Right to request return at any time
Subsidiary of the parent company 473,000,000 24/11/2020 Right to request return at any time
Subsidiary of the parent company 570,000,000 30/06/2022 Right to request return at any time
Subsidiary of the parent company 175,000,000 08/07/2021 Right to request return at any time
Subsidiary of the parent company 81,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 600,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 162,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 700,000,000 07/05/2022 Right to request return at any time
Subsidiary of the parent company 1,700,000,000 26/12/2022 Right to request return at any time
Subsidiary of the parent company 1,400,000,000 29/09/2022 Right to request return at any time
Subsidiary of the parent company 201,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 600,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 262,500,000 08/07/2021 Right to request return at any time
Subsidiary of the parent company 90,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 800,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 159,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 1,700,000,000 29/09/2022 Right to request return at any time
Subsidiary of the parent company 2,000,000,000 28/10/2022 Right to request return at any time
Subsidiary of the parent company 173,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 600,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 118,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 433,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 201,701,133 14/04/2022 Right to request return at any time
Subsidiary of the parent company 500,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 300,000,000 06/04/2022 Right to request return at any time
Subsidiary of the parent company 262,500,000 08/07/2021 Right to request return at any time
Subsidiary of the parent company 72,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 200,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 116,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 300,000,000 27/06/2022 Right to request return at any time
Subsidiary of the parent company 200,000,000 27/06/2022 Right to request return at any time
Subsidiary of the parent company 80,000,000 27/03/2015 21/01/2025
Subsidiary of the parent company 200,000,000 12/10/2020 12/10/2030
Subsidiary of the parent company 20,000,000 16/12/2022 Right to request return at any time
Total 24,283,701,133
148
(5) Remuneration of key management personnel
The Group and the Company
Item 2023 2022
Remuneration of key management personnel 51,002,000 86,665,000
The remuneration of key management personnel above does not include the one with
respect to share-based payments scheme.
6 Receivables from and payables to related parties
Receivables from related parties
The Group
Note 2023 2022
Provision for Provision for
Item Book value impairment Book value impairment
Cash at bank and on hand (1) 1,147,791,923 - 965,569,850 -
Accounts receivable 848,755,589 4,883,714 1,070,848,317 4,986,221
Prepayments 10,054,763 - 6,615,367 -
Other receivables 787,519 - 16,588,534 -
Contract assets 6,977,790 - 2,402,974 -
Other non-current assets 16,934,571 - 14,026,424 -
The Company
Note 2023 2022
Provision for Provision for
Item Book value impairment Book value impairment
Cash at bank and on hand (1) 511,657 - 8,850 -
Accounts receivable 4,874,309,921 4,315,658 4,867,860,690 4,315,658
Prepayments - - 146,368 -
Other receivables 28,179,338,207 12,280,686 19,686,877,080 16,868,539
Other non-current assets 1,740,000,000 - 1,080,000,000 -
Payables to related parties
The Group
Item Note 2023 2022
Accounts payable 114,282,939 179,047,266
Advance payments received 103,733 188,623
Contract liabilities 24,068,821 34,164,291
Other payables 202,371,165 182,554,398
Non-current liabilities due within one year (2) 6,000,000 6,000,000
Long-term loans (2) 1,107,750,000 1,257,250,000
149
The Company
Item Note 2023 2022
89,999,263 27,646,402
Accounts payable
Advance payments received 798,119 169,459
Other payables 2,791,489,305 2,921,972,111
Long-term loans (2) 1,042,750,000 1,186,250,000
Other non-current liabilities 79,800,793,681 96,394,661,805
(1) The Group's and the Company's cash at bank and on hand were deposit in China
Minsheng Bank Co.
(2) The Group's and the Company's non-current liabilities and long-term borrowings due
within one year are borrowings from China Minsheng Bank Co.
7 Commitments of the related parties
As at balance sheet date, the commitments of the related parties, which are signed but not
listed in financial statement are as following:
2023 2022
Procurement of equipment 65,703,454 69,753,978
XII. Share-based payments
1 Equity instruments
Exercised
Granted during during the
the year year Unlocked during the year Forfeited during the year
Quantit Amoun Quantit Amoun
Type of grantees y t y t Quantity Amount Quantity Amount
Senior management appointed by the
Board of Directors - - - - 3,848,120 10,312,962 1,400,000 3,752,000
Technical experts, middle
management and above level - - - - 98,412,660 263,745,929 14,248,174 38,185,106
Manager, senior technical cadre - - - - - - 200,631,536 337,061,981
Total - - - - 102,260,780 274,058,891 216,279,710 378,999,087
Share options or other equity instruments outstanding at the end of the year
Other equity instruments outstanding at the end of the
Share options outstanding at the end of the year year
Remaining contractual
Type of grantees Range of exercise prices life Range of exercise prices Remaining contractual life
Manager, senior
technical cadre RMB 5.059 – 5.559 / share 1 - 3 years / /
150
2 Equity-settled share-based payments
On 17 December 2020, the Board of Directors of the Company approved the implementation
of share options and restricted share incentive plans from 2020. The shares for the share
options and restricted share incentive plans are from the Company’s Renminbi A-share
ordinary 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 completed
on 25 December 2020. The actual number of grantees was 1,988, with a number of
grants of 596,229,700 shares. The reserved grant date was 27 August 2021, the actual
number of grantees was 110, and the number of grants is 33,000,000 shares, this grant
was 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. The
corresponding 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 of
exercisable rights of the above-mentioned share options is determined based on the
business performance of the incentive object’s operation and the contribution value of
the incentive object. In accordance with the plan, the Company will deregister the
current exercisable shares of the options obtained by the incentive objects if the
exercise 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 the
implementation was completed on 29 December 2020. The actual number of grantees
was 793, with a number of grants of 321,813,800 share.
The lock-up periods of the restricted share incentive plan are the 24, 36 and 48 months
from the grant date, respectively. During the lock-up period, restricted shares granted
to the incentive object under this plan shall not be transferred, used for guarantee or
debt repayment before the lock-up release. Lock-up restricted shares are released in
three phases after 24 months from the grant date. The release ratios for each phase
are 34%, 33%, and 33%, respectively. The corresponding release dates are 2 years, 3
years, and 4 years from the grant date. The actual number released shall be based on
performance assessment result for the previous year.
When the Company’s performance meets the corresponding criteria, the release
proportion of the above-mentioned restricted shares is determined based on the
business performance of the incentive object’s operation and the contribution value of
the incentive object. The Company will repurchase the locked restricted shares at the
granted price of the incentive objects if the release criteria stipulated in this plan are not
met, and the incentive object shall not release the restricted shares for the current
period.
The total costs recognised by the Group’s equity-settled share-based payments in the
consolidated financial statement was RMB 331,439,427, and the accumulated amount
of capital reserve paid by equity-settled share-based payments amounted to RMB
1,578,168,710. In the Company’s financial statements, the Company recognised its
long-term equity investment of RMB 254,548,584 in its subsidiary at the fair value of
151
the equity instruments at the grant date, and recognised expenses arising from share-
based payments of RMB 76,890,843, as well as a capital reserve of RMB 331,439,427.
Based on relevant provisions of the restricted share incentive plan for the service
period, if the granted object resigns before the release date, the Company will
repurchase the restricted shares that have not been released at the subscription price
of the granted object. Please refer to Note V. 30 (1) for the repurchased obligation set
out 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 the
difference between the assessed fair value of the exercisable share options at each
grant date and the subscription price in RMB (RMB 1.68/share, RMB 1.93/share and
RMB 2.09/share, respectively); the fair value of equity instruments at the reserved
grant date is determined based on the difference between the assessed fair value of
the exercisable share options at each reserved grant date and the subscription price in
RMB (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 the
difference between the fair value of shares at the grant date and the subscription price
at RMB 2.68/share.
(2) Basis of determining the number of equity instruments expected to vest
At each balance sheet date during the vesting period, the best estimation is made
according to the latest information, such as the number of employees who are granted
options and the completion of performance indicators, and the number of equity
instruments expected to vest is revised accordingly. On the vesting date, the estimated
number is equal to the number of equity instruments that are ultimately vested.
XIII. Capital management
The Group’s primary objectives when managing capital are to safeguard its ability to continue
as a going concern, so that it can continue to provide returns for shareholders, by pricing
products and services commensurately with the level of risk and by securing access to
finance at a reasonable cost.
The Group defines “capital” as including all components of equity, less unaccrued proposed
dividends. The balances of related party transactions are not regarded by the Group as
capital.
The Group’s capital structure is regularly reviewed and managed to achieve an optimal
structure and return for shareholders. Factors for the Group’s consideration include: its future
funding requirements, capital efficiency, actual and expected profitability, expected cash
flows, and expected capital expenditure. Adjustments are made to the capital structure in
light of changes in economic conditions affecting the Group.
152
The Group’s capital structure is monitored on the basis of an adjusted net debt-to-capital
ratio (total liabilities divided by total assets). The capital management strategies exerted by
the Group remained unchanged from 2022. In order to maintain or adjust the ratio, the Group
may adjust the amount of dividends paid to shareholders, request new loans, issue new
shares, or sell assets to reduce debt.
As at 31 December 2023 and 31 December 2022, the Group’s asset-liability ratios are as
follows:
2023 2022
Asset-liability ratio 52.81% 51.96%
Neither the Company nor any of its subsidiaries are subject to externally imposed capital
requirements.
XIV. Commitments and contingencies
1 Significant commitments
(1) Capital commitments
The Group 2023 2022
Contracts entered into but not performed or partially
performed 15,399,501,743 31,109,629,604
Contracts authorized but not entered into 123,338,068,701 100,442,930,917
Total 138,737,570,444 131,552,560,521
The Group’s contracts authorised but not entered into mainly included the fixed assets that
Chengdu BOE Display Sci-tech Co., Ltd., BOE Healthcare Investment & Management Co.,
Ltd., Beijing BOE Chuangyuan Technology Co., Ltd. Management Co., Ltd., Qingdao BOE
Optoelectronics Technology Co., Ltd., Chongqing BOE Display Technology Co., Ltd. and
BOE Wisdom IOT Technology Co., Ltd. planned to purchase in subsequent years and
project equipment that the Group planned to purchase in subsequent years.
The Company 2023 2022
Contracts entered into but not performed or partially
performed 42,398,401,670 28,350,937,574
The Company’s contracts entered into but not performed or partially performed mainly
included guaranteed investments in Chengdu BOE Display Sci-tech Co., Ltd., Beijing BOE
Chuangyuan Technology Co., Ltd. Management Co., Ltd., BOE Healthcare Investment &
Management Co., Ltd., BOE Wisdom IOT Technology Co., Ltd., Mianyang BOE Electronic
Technology Co., Ltd. and Yunnan Invensight Optoelectronics Technology Co., Ltd.
153
2 Guarantee
(1) The Group as the guarantor
As at 31 December 2023, the Group did not have guarantees provided for external
enterprises.
(2) The Company as the guarantor
At 31 December 2023, Chengdu Optoelectronics pledged its land use right with carrying
amount of RMB 38,417,021, machinery and equipment with carrying amount of RMB
17,224,190,248 and plants and buildings with carrying amount of RMB 2,266,634,905 as
collaterals to obtain long-term loans of USD 578,700,000 and RMB 9,823,660,000. The
Company provides joint-liability guarantee for the above loans.
At 31 December 2023, Yuansheng Optoelectronics pledged its land use right with carrying
amount of RMB 42,405,072, machinery and equipment with carrying amount of RMB
3,912,197,528 and plants and buildings with carrying amount of RMB 2,166,212,374 as
collaterals to obtain long-term loans of RMB 531,820,000. The Company provides joint-
liability guarantee for the above loans.
At 31 December 2023, Chongqing BOE Display pledged its land use right with carrying
amount of RMB 156,287,757, machinery and equipment with carrying amount of RMB
15,749,885,667 and plants and buildings with carrying amount of RMB 3,643,694,666 as
collaterals to obtain long-term loans of USD 1,008,140,000 and RMB 7,612,218,976. The
Company provides joint-liability guarantee for the above loans.
At 31 December 2023, Fuzhou BOE pledged its land use right with carrying amount of RMB
193,505,488, machinery and equipment carrying amount of RMB 4,056,778,651 and plants
and buildings with carrying amount of RMB 2,835,712,839 as collaterals to obtain long-term
loans of USD 66,000,000 and RMB 216,930,000. The Company provides joint-liability
guarantee for the above loans.
At 31 December 2023, Hefei Display Technology pledged its land use right with carrying
amount of RMB 267,494,910, machinery and equipment with carrying amount of RMB
9,426,450,403 and plants and buildings with carrying amount of RMB 3,400,676,062 as
collaterals to obtain long-term loans of RMB 1,990,914,080. The Company provides joint-
liability guarantee for the above loans.
At 31 December 2023, Mianyang BOE pledged its land use right with carrying amount of
RMB 364,054,376, machinery and equipment carrying amount of RMB 21,837,380,218 and
plants and buildings with carrying amount of RMB 4,721,085,480 as collaterals to obtain
long-term loans of USD 694,730,000 and RMB 10,350,138,900. The Company provides
joint-liability guarantee for the above loans.
154
At 31 December 2023, Wuhan BOE pledged its land use right with carrying amount of RMB
238,900,011, machinery and equipment with carrying amount of RMB 18,732,587,486 and
plants and buildings with carrying amount of RMB 4,625,942,334 as collaterals to obtain
long-term loans of USD 904,500,000 and RMB 5,523,000,000. The Company provides joint-
liability guarantee for the above loans. In addition, the Company provides joint-liability
guarantee for the letters of credit issued but not accepted of JPY 156,600,000.
At 31 December 2023, Chengdu BOE Hospital Co., Ltd. obtained long-term loans of RMB
1,522,953,257. The Company provides joint-liability guarantee for the above loans.
At 31 December 2023, Nanjing Display Technology obtained short-term loans of RMB
450,000,000 and long-term loans of RMB 1,200,000,000. The Company provides joint-
liability guarantee for the above loans by means of counter guarantee.
XV . Segment reporting
1 Segment reporting considerations
The Group management reviews the operation performance and allocates resources
according 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 other
intelligent interface devices. This business focuses on providing high-quality
smartphones, tablet PCs, laptops, monitors, TVs, vehicles, VR/AR and other display
devices for customers.
(b) Internet of Things (IoT) innovation business — The IoT innovation business integrates
manufacturing models for system solution design, providing customers with competitive
smart terminal products in the fields of TVs, monitors, laptops, tablet PCs, low power
consumption products, IoT, 3D displays, etc. With artificial intelligence and big data as
technical support, it focuses on products and services that integrate software and
hardware, providing integrated solutions in IoT segments such as smart finance, smart
industrial parks, etc.
(c) Sensor business - The sensor and application solutions integrate manufacturing
models for system solution design, covering both glass-based and silicon-based areas.
It focuses on smart windows, innovative glass-based sensor devices, MEMS sensors,
industrial sensors, and consumer electronics, providing customers with products and
solutions including smart dimming windows and dimming system solutions, industrial
sensors and solutions, MEMS sensors, and X-ray flat panel detector backplanes.
(d) MLED business — The integrates design and manufacturing of devices and provides
Mini-LED backlight products with high quality and strong reliability as well as high
dynamic range that allow precisely brightness adjustment for TVs, monitors, laptops,
car displays, VR/AR and other products; besides, it provides Mini/Micro-LED display
products with high brightness, strong reliability and high contrast for use in outdoor
display, commercial display, transparent display, special display and other scenarios.
155
(e) Smart engineering medicine business - The smart engineering medicine business is a
professional service model, providing services and solutions in healthcare, intelligent
rehabilitation, and medical-engineering integration products. Meanwhile, the smart
engineering medicine business is committed to building a closed loop of full-cycle
health services with health management as the core, medical-engineering terminals as
the traction, digital hospitals and rehabilitation communities as the support, to create an
intelligent health management ecosystem, to connect testing equipment, healthcare
personnel and customers, and to provide customers with the "prevision-treatment-
nursing" full-chained health services.
(f) Others - In addition to the above businesses, the Group provides software-hardware
fusion and system integration solutions for different industries, specifically including
intelligent internet of vehicles, industrial interconnection, digital art and other segments,
which can provide customers with all-round, one-stop and intelligent new experiences
in IoT segmented scenarios.
The main reason to separate the segments is that the Group independently manages
the display business, IoT innovation business, sensor and application solutions, MLED,
smart medicine and engineering and other businesses. As these business segments
manufacture and sale different products, apply different manufacturing processes and
specifies in gross profit, the business segments are managed independently. The
management evaluates the performance and allocates resources according to the
profit of each business segment and does not take financing cost and investment
income into account.
156
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 each
reportable segment. Inter-segment sales are determined with reference to prices charged to external parties for similar orders.
2023
Smart
engineering
IoT innovation medicine
Display business business Sensor business MLED business business Others Offsetting Total
Operating income 147,053,141,751 38,900,197,799 405,037,922 2,902,110,558 2,791,584,190 6,850,103,017 (24,358,729,342) 174,543,445,895
Operating costs 133,565,229,836 35,289,028,777 330,401,208 3,226,930,635 2,241,522,000 1,196,726,016 (23,216,777,105) 152,633,061,367
2022
Smart
engineering
IoT innovation medicine
Display business business Sensor business MLED business business Others Offsetting Total
Operating income 150,150,853,163 34,334,478,938 306,552,648 1,599,702,766 2,203,142,667 11,941,121,572 (22,122,120,575) 178,413,731,179
Operating costs 137,702,662,276 31,888,691,477 241,869,035 1,709,769,060 1,809,802,648 4,881,797,483 (20,704,025,827) 157,530,566,152
The Group develops various businesses by using common assets and liabilities and therefore, it could not analyse assets and liabilities of each
reportable segment respectively by business. Besides, the Group restates comparative information in 2022 according to segment reporting in
2023
157
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’s
operating income from external customers:
Operating income from external
customers
2023 2022
Mainland China 80,541,975,332 74,124,463,690
Other Asian countries and regions 55,229,893,619 63,351,896,814
Europe 5,504,039,510 5,745,261,109
America 33,250,560,809 35,121,526,346
Other regions 16,976,625 70,583,220
Total 174,543,445,895 178,413,731,179
(b) Divided based on asset locations
The geographical location of the specified non-current assets is based on the physical
location of the asset, in the case of fixed assets; the location of the operation to which
they are allocated, in the case of intangible assets and goodwill; and the location of
operations, in the case of interests in associates and joint ventures. Most of the non-
current assets in the Group are located in the Chinese mainland.
4 Major customers
The Group has one customer (2022: One), the operating income from which is over 10% of
the Group’s total operating income in display business. The operating income from the
customer, which represents approximately 15% of the Group’s total operating income, is
summarised in the table below:
Customer 2023 2022
RMB RMB
Customer 1 26,082,948,856 28,511,004,302
158
XVI. Notes to the Company’s financial statements
1 Accounts receivable
(1) The Company’s accounts receivable by customer type:
31 December 31 December
2023 2022
Amounts due from related parties 4,874,309,921 4,867,860,690
Amounts due from other customers 3,667,594 4,289,987
Sub-total 4,877,977,515 4,872,150,677
Less: Provision for bad and doubtful debts 7,564,419 8,485,408
Total 4,870,413,096 4,863,665,269
(2) The ageing analysis of accounts receivable is as follows:
Ageing 2023 2022
Within 1 year (inclusive) 3,662,390,168 3,813,706,724
Over 1 year but within 2 years (inclusive) 869,370,034 742,074,869
Over 2 years but within 3 years (inclusive) 37,761,471 182,932,357
Over 3 years 308,455,842 133,436,727
Sub-total 4,877,977,515 4,872,150,677
Less: Provision for bad and doubtful debts 7,564,419 8,485,408
Total 4,870,413,096 4,863,665,269
The ageing is counted starting from the date when accounts receivable is recognised.
159
(3) Accounts receivable by provisioning method
2023
Book value Provision for impairment
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Individual assessment
- Customers with high credit risk 7,564,419 0% 7,564,419 100% -
- Customers with low credit risk 4,869,994,263 100% - 0% 4,869,994,263
Collective assessment
- Customers with moderate credit risk 418,833 0% - 0% 418,833
Total 4,877,977,515 100% 7,564,419 0% 4,870,413,096
2022
Book value Provision for impairment
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Individual assessment
- Customers with high credit risk 8,406,011 0% 8,406,011 100% -
- Customers with low credit risk 4,863,603,112 100% - 0% 4,863,603,112
Collective assessment
- Customers with moderate credit risk 141,554 0% 79,397 56% 62,157
Total 4,872,150,677 100% 8,485,408 0% 4,863,665,269
(4) Additions and recoveries of provision for bad and doubtful debts during the year:
31 December 2023 31 December 2022
Customers with
Customers with Customers with Customers with Customers with Customers with moderate credit
high credit risk low credit risk moderate credit risk Total high credit risk low credit risk risk Total
Balance at the beginning of the year - 79,397 8,406,011 8,485,408 - 174,299 4,090,353 4,264,652
Charge during the year - 9,367 - 9,367 - - 4,315,658 4,315,658
Recoveries during the year - (88,764) (841,592) (930,356) - (94,902) - (94,902)
Written-off during the year - - - - - - - -
Balance at the end of the year - - 7,564,419 7,564,419 - 79,397 8,406,011 8,485,408
160
(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB 4,613,531,874,
amounting to 95% of the total accounts receivable at the end of the year, and no provisions
for bad and doubtful debts were made at the end of the year.
2 Other receivables
31 December 31 December
Note 2023 2022
Dividends receivable (1) 1,189,273,456 333,352,986
Others (2) 27,192,355,082 19,544,792,389
Total 28,381,628,538 19,878,145,375
(1) Dividends receivable
31 December 31 December
2023 2022
Beijing Matsushita Colour Innovation Co., Ltd. 468,758,202 333,352,986
BOE Optoelectronics Holdings Co., Ltd. 545,367,900 -
Chongqing BOE Optoelectronics Technology Co., Ltd. 135,000,000 -
Beijing BOE Land Co., Ltd. 40,147,354 -
Total 1,189,273,456 333,352,986
161
(2) Others
(a) The Company’s other receivables by customer type:
31 December 31 December
Customer type 2023 2022
Amounts due from subsidiaries 26,989,987,234 19,338,630,021
Amounts due from other related parties 77,517 14,894,073
Amounts due from other customers 218,428,250 211,976,091
Sub-total 27,208,493,001 19,565,500,185
Less: Provision for bad and doubtful debts 16,137,919 20,707,796
Total 27,192,355,082 19,544,792,389
(b) The Company’s other receivables by currency:
As at 31 December 2023 and 31 December 2022, there is no other receivables in foreign
currency.
(c) The ageing analysis of other receivables of the Company is as follows:
2023 2022
Within 1 year (inclusive) 26,906,173,796 15,304,792,246
Over 1 year but within 2 years (inclusive) 136,005,824 2,669,590,657
Over 2 years but within 3 years (inclusive) 68,122,231 1,515,874,424
Over 3 years 98,191,150 75,242,858
Sub-total 27,208,493,001 19,565,500,185
Less: Provision for bad and doubtful debts 16,137,919 20,707,796
Total 27,192,355,082 19,544,792,389
The ageing is counted starting from the date when other receivables are recognised.
162
(d) Other receivables by provisioning method
31 December 2023
Book value Provision for impairment
Carrying
Category Amount Percentage (%) Amount Percentage (%) amount
Individual assessment
- Accounts with high creditrisk 16,137,919 0% 16,137,919 100% -
- Accounts with low credit risk 27,192,355,082 100% - 0% 27,192,355,082
合计 27,208,493,001 100% 16,137,919 0% 27,192,355,082
31 December 2022
Book value Provision for impairment
Carrying
Category Amount Percentage (%) Amount Percentage (%) amount
Individual assessment
- Accounts with high creditrisk 20,707,796 0% 20,707,796 100% -
- Accounts with low credit risk 19,544,792,389 100% - 0% 19,544,792,389
合计 19,565,500,185 100% 20,707,796 0% 19,544,792,389
(e) Movements of provisions for bad and doubtful debts
2023 2022
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Lifetime
ECL - Not Lifetime Lifetime ECL - Lifetime
12-month credit ECL- Credit 12-month Not credit ECL- Credit
ECL impaired impaired Total ECL impaired impaired Total
Balance at the beginning of the
year - - 20,707,796 20,707,796 - - 6,801,910 6,801,910
Additions during the year - - 176,044 176,044 - - 13,905,886 13,905,886
Recoveries during the year - - (4,745,921) (4,745,921) - - - -
Balance at the end of the year - - 16,137,919 16,137,919 - - 20,707,796 20,707,796
(f) Other receivables categorised by nature
Nature of other receivables Note 2023 2022
Transaction amount 26,989,987,234 19,338,630,021
Others 218,505,767 226,870,164
Sub-total 27,208,493,001 19,565,500,185
Less: Provision for bad and doubtful debts 16,137,919 20,707,796
Total 27,192,355,082 19,544,792,389
(i) As of December 31, 2023 and December 31, 2022, the Company's current
accounts mainly consisted of loans receivable from subsidiaries.
163
(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 Company
amounted to RMB 22,299,935,803 in total, most of which are amounts due to/from
related parties within the Group. No provision is made for bad and doubtful debts after
assessment.
3 Long-term equity investments
(1) The Company’s long-term equity investments by category:
2023 2022
Investments in subsidiaries 187,984,376,186 211,178,767,516
Investments in associates and joint ventures 3,156,825,405 3,162,185,504
Sub-total 191,141,201,591 214,340,953,020
Less: Provision for impairment 32,000,000 32,000,000
Total 191,109,201,591 214,308,953,020
164
(2) Investments in subsidiaries:
Increase during the year
Balance of Balance of
provision for provision for
impairment at impairment at
Balance at the Increase in Share-based Decrease during Balance at the end of the beginning the end of the
Subsidiary beginning of the year investments payments the year* the year of the year year
Chengdu BOE Optoelectronics Technology Co.,
Ltd. 25,108,960,003 - 23,902,297 - 25,132,862,300 - -
Hefei BOE Optoelectronics Technology Co., Ltd. 9,063,122,784 - 11,097,252 (6,300,000,000) 2,774,220,036 - -
Beijing BOE Display Technology Co., Ltd. 17,647,311,114 - 64,743,016 (8,688,599,600) 9,023,454,530 - -
Hefei Xinsheng Optoelectronics Technology Co.,
Ltd. 20,155,950,604 - 16,389,386 (9,747,500,000) 10,424,839,990 - -
Ordos Yuansheng Optoelectronics Co., Ltd. 11,814,307,688 - 2,116,517 - 11,816,424,205 - -
Chongqing BOE Optoelectronics Technology
Co., Ltd. 19,599,657,767 - 6,918,631 (15,380,800,000) 4,225,776,398 - -
Fuzhou BOE Optoelectronics Technology Co.,
Ltd. 14,701,372,178 536,500,000 5,777,659 - 15,243,649,837 - -
Beijing BOE Video Technology Co., Ltd. (“BOE
Video”) 4,427,357,720 20,000,000 500,543 - 4,447,858,263 - -
Beijing BOE Vacuum Electronics Co., Ltd. 19,933,529 - 192,584 - 20,126,113 - -
Beijing BOE Vacuum Technology Co., Ltd. 32,000,000 - - - 32,000,000 32,000,000 32,000,000
Beijing Yinghe Century Co., Ltd. 352,398,076 - 5,786,399 - 358,184,475 - -
BOE Optical Science and technology Co., Ltd. 667,477,273 - 2,075,965 - 669,553,238 - -
BOE Hyundai LCD (Beijing) Display Technology
Co., Ltd. 41,986,755 - 1,849,933 - 43,836,688 - -
BOE (Hebei) Mobile Technology Co., Ltd. 1,356,283,555 - 512,739 - 1,356,796,294 - -
Beijing BOE Multimedia Technology Co., Ltd. 400,000,000 - - - 400,000,000 - -
Beijing BOE Energy Technology Co., Ltd. 857,581,382 - 668,534 - 858,249,916 - -
Beijing BOE Life Technology Co., Ltd. 10,000,000 - - - 10,000,000 - -
Beijing Zhongxiangying Technologies Co., Ltd. 102,267,168 - 223,794 - 102,490,962 - -
BOE Semi-conductor Co., Ltd. 9,450,000 - - - 9,450,000 - -
BOE Optoelectronics Holding Co., Ltd. 3,487,684,762 - - - 3,487,684,762 - -
BOE Healthcare Investment & Management Co.,
Ltd. 7,824,073,441 1,597,000,000 1,920,735 - 9,422,994,176 - -
Hefei BOE Display Technology Co., Ltd. 2,041,579,920 6,929,009,200 9,264,463 - 8,979,853,583 - -
Beijing BOE Technology Development Co., Ltd. 2,512,354 - 443,220 - 2,955,574 - -
Hefei BOE Zhuoyin Technology Co., Ltd. 604,704,163 - 894,613 - 605,598,776 - -
Beijing BOE Real Estate Co., Ltd. 9,480,764 - 519,398 - 10,000,162 - -
Beijing BOE Marketing Co., Ltd. 31,573,496 - 311,874 - 31,885,370 - -
BOE (Korea) Co., Ltd. 7,095,901 - 1,897,359 - 8,993,260 - -
Yunnan Invensight Optoelectronics Technology
Co., Ltd. 1,518,597,279 - 2,951,109 - 1,521,548,388 - -
Mianyang BOE Optoelectronics Technology Co.,
Ltd. 22,342,273,335 - 5,265,626 - 22,347,538,961 - -
Beijing BOE Sensing Technology Co., Ltd. 4,496,105,589 35,000,000 5,988,185 - 4,537,093,774 - -
Wuhan BOE Optoelectronics Technology Co.,
Ltd. 12,524,485,421 - 6,353,040 - 12,530,838,461 - -
Chongqing BOE Display Technology Co., Ltd. 9,312,579,810 700,275,250 4,624,825 - 10,017,479,885 - -
Fuzhou BOE Display Technology Co., Ltd. 22,836,726 - 223,794 - 23,060,520 - -
Beijing Matsushita Colour CRT Co., Ltd. 5,151,625 - 994,383 - 6,146,008 - -
BOE Innovation Investment Co., Ltd. 3,198,191,319 479,000,000 569,023 - 3,677,760,342 - -
Hefei BOE Xingyu Technology Co., Ltd. 506,367,236 - 540,515 - 506,907,751 - -
BOE Education Technology Co., Ltd. 29,259,274 - - - 29,259,274 - -
Dongfang Chengqi (Beijing) Business
Technology Co., Ltd. 13,786,416 - 2,140,752 - 15,927,168 - -
BOE Smart Technology Co., Ltd. 2,072,000,000 650,000,000 - - 2,722,000,000 - -
Nanjing BOE Display Technology Co., Ltd. 5,598,629,797 - 4,042,190 - 5,602,671,987 - -
Chengdu BOE Display Sci-tech Co., Ltd.
(Chengdu Display Sci-tech) 7,557,371,638 - 4,267,100 - 7,561,638,738 - -
BOE Mled Technology Co., Ltd. 1,312,793,925 146,000,000 6,012,620 - 1,464,806,545 - -
BOE Environmental Energy Technology Co.,
Ltd. 50,000,000 - 1,886,158 - 51,886,158 - -
Chengdu BOE Display Technology Co., Ltd. 5,263,000 394,725,000 - - 399,988,000 - -
Beijing BOE Chuangyuan Technology Co., Ltd - 2,249,653,000 - - 2,249,653,000
Mianyang BOE Electronics Technology Co., Ltd - 680,000,000 - - 680,000,000
Beijing Shiyan Technology Co., Ltd - 167,200,000 - - 167,200,000
HC SemiTek Corporation - 2,083,597,236 - - 2,083,597,236
Others** 236,952,729 - 50,682,353 - 287,635,082 - -
Total 211,178,767,516 16,667,959,686 254,548,584 (40,116,899,600) 187,984,376,186 32,000,000 32,000,000
* As of December 31, 2023, this year's reduction in capital contribution to the subsidiary by our company has been
completed, and the total amount of capital reduction receivable amounts to RMB 40,116,899,600 Within this
figure, our company has received RMB 1,200,000,000 as capital reduction proceeds. Furthermore, an
aggregate amount of RMB 36,144,229,375 from the capital reduction receivable has been utilized to offset the
principal and interest on internal loans extended by our company to the subsidiary. As of the reporting period,
there remains an outstanding capital reduction receivable of RMB 2,772,670,225, which is recorded under other
accounts receivable.
** Others represented equity-settled share-based payments granted by the Company to employees of other
subsidiaries.
For information about the major subsidiaries of the Company, refer to Note VIII. 1.
165
(3) Investments in associates:
Movements during the year
Investment Declared Balance of
Balance at the (loss) / income Other distribution of provision for
beginning of the Increase in Decrease in under equity comprehensive Other equity cash dividends or Balance at the impairment at the
Investee year investments investments method income movements profits end of the year end of the year
Erdos BOE Energy Investment Co., Ltd. 136,459,610 - - (530,631) - - - 135,928,979 -
Beijing Xindongneng Investment Fund
(Limited Partnership) 2,034,870,324 - - 413,237,868 (341,083,735) - (242,256,254) 1,864,768,203 -
Beijing Innovation Industry Investment Co.,
Ltd. 223,216,553 - - 12,953,665 - - - 236,170,218 -
Beijing Electric Control Industry Investment
Co., Ltd. 258,149,907 78,035,900 - (1,505,013) 51,071,365 - - 385,752,159 -
Beijing BOE Art Cloud Technology Co., Ltd. 359,151,756 - - 8,087,341 - (6,214,034) - 361,025,063 -
Others 150,337,354 28,300,000 (1,778,150) (2,878,421) - - (800,000) 173,180,783 -
otal 3,162,185,504 106,335,900 (1,778,150) 429,364,809 (290,012,370) (6,214,034) (243,056,254) 3,156,825,405 -
166
4 Other payables
Note 2023 2022
Dividends payable 6,451,170 6,410,514
Others (1) 3,509,544,809 4,242,980,632
Total 3,515,995,979 4,249,391,146
(1) Others
(a) The Company’s other payables by category are as follows:
Note 2023 2022
Amounts due to/from
subsidiaries 2,791,489,305 2,912,284,353
Repurchase obligation of
restricted shares V.42 457,401,616 753,440,228
Purchase of projects, equipment
and intangible assets 132,545,852 405,997,313
Others 128,108,036 171,258,738
Total 3,509,544,809 4,242,980,632
(b) The Company’s other payables by currency:
2023 2022
Amount in
Amount in Exchange RMB/RMB original Exchange RMB/RMB
original currency rate equivalents currency rate equivalents
RMB 1,546,430,154 2,182,655,332
USD 276,804,561 7.0827 1,960,523,664 295,816,014 6.9646 2,060,240,211
JPY 51,613,367 0.0502 2,590,991 - - -
UR - - - 11,463 7.4229 85,089
Total 3,509,544,809 4,242,980,632
167
5 Long-term loans
2023 2022
Credited/ Credited/
collateralised collateralised
guaranteed/ guaranteed/
RMB pledged RMB pledged
Bank loans
- RMB 48,042,049,084 Credited 42,222,030,392 Credited
Less: Long-term loans due within one
year 3,988,949,084 Credited 2,664,530,392 Credited
Total 44,053,100,000 39,557,500,000
The interest rate of RMB long-term loans for the Company ranged from 1.20% to 3.30% in
2023 (2022: 0% to 3.53%).
6 Capital reserve
Items Share premium Other capital reserves Total
Balance at the beginning of the year 53,066,616,806 627,010,407 53,693,627,213
Add: Equity-settled share-based payments - 331,439,427 331,439,427
Other movements in equity of associates - (6,214,034) (6,214,034)
Cancellation of treasury shares (2,244,946,976) - (2,244,946,976)
Others (32,084,906) - (32,084,906)
Balance at the end of the year 50,789,584,924 952,235,800 51,741,820,724
7 Other comprehensive income
Movements during the year
Less: Transfer Less: Transfer of
of other other
Balance at the comprehensive comprehensive
beginning of the Before-tax Less: Income tax income to profit income to retained Balance at the
Item year amount expense or loss earnings end of the year
Items that will not be reclassified to profit or
loss 445,935 (282,176,415) 13,421,765 - 1,175,221 (296,327,466)
Including: Other comprehensive income
recognised under equity method 121,611,393 (290,012,370) 12,246,372 - 1,175,221 (181,822,570)
Changes in fair value of
investments in other equity
instruments (121,165,458) 7,835,955 1,175,393 - - (114,504,896)
Items that may be reclassified to profit or
loss (105,590) - - - - (105,590)
Total 340,345 (282,176,415) 13,421,765 - 1,175,221 (296,433,056)
168
8 Retained earnings
Item 2023 2022
Retained earnings at the beginning of the year 6,624,620,470 11,950,975,927
Total adjustments for opening retained earnings (“+”
for increase; “-” for decrease) - -
Retained earnings at the beginning of the year
(after adjustment) 6,624,620,470 11,950,975,927
Add: Net profits for the year 3,305,971,786 3,481,863,512
Less: Appropriation for statutory surplus reserve 330,597,179 348,186,351
Interest on holders of other equity instruments 118,551,232 530,695,890
Dividends to ordinary shares 2,296,367,348 7,958,923,130
Transfer of other comprehensive income to
retained earnings (1,057,699) (29,586,402)
Retained earnings at the end of the year 7,186,134,196 6,624,620,470
9 Operating income and operating costs
2023 2022
Item Income Cost Income Cost
Principal activities 4,669,890,971 11,551,234 4,826,443,711 9,746,176
Other operating activities 38,575,016 1,076,333 46,885,004 334,092
Total 4,708,465,987 12,627,567 4,873,328,715 10,080,268
Including: Revenue from contracts
with customers 4,604,652,687 3,072,136 4,758,053,462 417,034
Other income 103,813,300 9,555,431 115,275,253 9,663,234
169
10 Investment income
2023 2022
Income from long-term equity investments
accounted for using the cost method 1,555,817,904 1,221,116,853
Income from long-term equity investments
accounted for using the equity method 429,364,809 328,861,860
Investment income from disposal of long-term
equity investments 1,581,850 30,000,000
Dividend income from investments in other equity
instruments 728,606 206,209
Including: Dividend income from investments in
other equity instruments held at the balance
sheet date 728,606 206,209
Others 3,990,185 353,903,009
Total 1,991,483,354 1,934,087,931
170
11 Supplementary information on cash flow statement
(1) Supplement to the cash flow statement
2023 2022
(a) Reconciliation of net profit to cash flows from
operating activities:
Net profit 3,305,971,786 3,481,863,512
Add: Depreciation of fixed assets, investment
properties and right-of-use assets 205,071,503 198,186,954
Amortisation of intangible assets 181,868,535 205,316,168
Amortisation of long-term deferred
expenses 73,436,949 53,563,810
Losses from scrapping of fixed assets 4,248,142 11,563
Loss on disposal of fixed assets,
intangible assets and other long-term
assets (5,077,109) -
Credit losses (5,490,866) 18,126,642
Losses from changes in fair value (49,498,773) -
Financial expenses 414,990,764 572,555,726
Investment income (1,991,483,354) (1,934,087,931)
Share-based payments 76,890,841 164,840,515
Change in deferred income (978,788,846) (916,302,566)
Changes in deferred tax assets and
liabilities 97,968,124 (113,828,946)
Decrease in gross inventories (4,271,106) 787,291
Decrease / (increase) in operating
receivables (411,585,912) 780,128,458
Increase / (decrease) in operating
payables 56,568,894 1,173,595,580
Net cash inflow from operating activities 970,819,572 3,684,756,776
171
(b) Net changes in cash and cash equivalents:
2023 2022
Cash and cash equivalents at the end of the
year 4,249,329,821 7,111,879,033
Less: Cash and cash equivalents at the
beginning of the year 7,111,879,033 5,599,937,349
Net increase in cash and cash equivalents (2,862,549,212) 1,511,941,684
(2) Details of cash and cash equivalents
2023 2022
Cash on hand 14,205 13,361
Bank deposits available on demand 4,248,378,624 7,111,658,528
Other monetary funds available on demand 936,992 207,144
Closing balance of cash and cash equivalents 4,249,329,821 7,111,879,033
Note: Cash and cash equivalents disclosed above exclude other monetary fund with restricted
usage.
172
XVII. Extraordinary gains and losses in 2023
2023 2022
Losses from disposal of non-current assets (19,625,160) (4,908,339)
Government grants recognised through profit or
loss (Except for government subsidies that are
closely related to the company's normal
business operations, comply with national
policies and regulations, are enjoyed in
accordance with determined standards, and
have a continuous impact on the company's
profit and loss) 3,793,619,228 5,458,665,272
Changes in fair value of financial assets held for
trading and investment income from disposal of
financial assets held for trading 360,708,461 275,498,559
Reversal of provision for bad and doubtful debts of
receivables assessed on an individual basis 43,996,519 18,395,999
Investment income from disposal of long-term
equity investments 1,581,850 829,872,568
Other income from long-term equity investments - 4,620,534,865
Other non-operating income and expenses
besides items above 333,923,695 90,115,764
Sub total 4,514,204,593 11,288,174,688
Tax effect 227,580,473 133,580,776
Extraordinary gains affecting net profit of equity
shareholders of the non-controlling
shareholders 1,106,627,416 1,375,063,961
Total 3,179,996,704 9,779,529,951
Note: 1. There is no impact on BOE Group's disclosure for the year after the implementation based
on the Interpretive Pronouncement on the Preparation of Information Disclosures of
Companies Issuing Public Shares No.1 - Extraordinary Gains and Losses (Revised in
2023).
2. Extraordinary gain and loss item listed above are presented in the amount before
taxation.
173
XVIII. Return on net assets and earnings per share
In accordance with “Regulation on the Preparation of Information Disclosures by Companies
Issuing Securities No.9 – Calculation and Disclosure of the Return on Net Assets and Earnings Per
Share” (2010 revised) issued by the CSRC and relevant accounting standards, the Group’s return
on net assets and earnings per share are calculated as follows:
Weighted average
return on net Basic earnings per Diluted earnings
Profit for the reporting period assets (%) share per share
Net profit attributable to the Company’s
ordinary equity shareholders 1.89% 0.06 Not applicable
Net profit excluding extraordinary gain and
loss attributable to the Company’s ordinary
equity shareholders (0.60%) (0.02) Not applicable
1 Calculation of earnings per share
(1) Basic earnings per share
For calculation of the basic earnings per share, refer to Note V.60.
(2) Basic earnings per share excluding extraordinary gain and loss
Basic earnings per share excluding extraordinary gain and loss is calculated as dividing
consolidated net profit excluding extraordinary gain and loss attributable to ordinary shareholders
of the Company by the weighted average number of ordinary shares outstanding:
2023 2022
Consolidated net profit attributable to ordinary
shareholders of the Company 2,411,710,231 6,946,201,476
Extraordinary gains and losses attributable to
ordinary shareholders of the Company 3,179,996,704 9,779,529,951
Consolidated net loss excluding extraordinary gain
and loss attributable to the Company’s ordinary
equity shareholders (768,286,473) (2,833,328,475)
Weighted average number of ordinary shares
outstanding 37,429,510,530 37,502,641,911
Basic earnings per share excluding extraordinary
gain and loss (RMB/share) (0.02) (0.08)
174
2 Calculation of weighted average return on net assets
(1) Weighted average return on net assets
Weighted average return on net assets is calculated as dividing consolidated net profit attributable
to ordinary shareholders of the Company by the weighted average amount of consolidated net
assets:
2023 2022
Consolidated net profit attributable to ordinary
shareholders of the Company 2,411,710,231 6,946,201,476
Weighted average amount of consolidated net
assets 127,674,255,464 127,511,655,974
Weighted average return on net assets 1.89% 5.45%
Calculation of weighted average amount of consolidated net assets is as follows:
2023 2022
Consolidated net assets at the beginning of the
year 127,909,808,396 129,057,081,638
Effect of consolidated net profit attributable to
ordinary shareholders of the Company 1,205,855,116 3,473,100,738
Effect of non-public issuance of shares - -
Effect of repurchase of treasury shares - (495,230,613)
Distribution of profits to ordinary shareholders (1,335,983,365) (4,626,435,310)
Effect of change in shareholding ratio of
subsidiaries (418,139,849) 377,180,229
Effect of movements in amounts attributable to
ordinary shareholders of the Company 312,715,166 (274,040,708)
Weighted average amount of consolidated net
assets 127,674,255,464 127,511,655,974
(2) Weighted average return on net assets excluding extraordinary gains and losses
Weighted average return on net assets excluding extraordinary gain and loss is calculated as
dividing consolidated net loss excluding extraordinary gain and loss attributable to ordinary
shareholders of the Company by the weighted average amount of consolidated net assets:
2023 2022
Consolidated net loss excluding extraordinary gain
and loss attributable to the Company’s ordinary
equity shareholders (768,286,473) (2,833,328,475)
Weighted average amount of consolidated net
assets 127,674,255,464 127,511,655,974
Weighted average return on net assets excluding
extraordinary gain and loss (0.60%) (2.22%)
175
