BOE Technology Group Co., Ltd.
ENGLISH TRANSLATION OF FINANCIAL STATEMENTS FOR THE YEAR 1 JANUARY
2020 TO 31 DECEMBER 2020
IF THERE IS ANY CONFLICT BETWEEN THE CHINESE VERSION AND ITS ENGLISH
TRANSLATION, THE CHINESE VERSION WILL PREVAIL
AUDITOR’S REPORT
毕马威华振审字第 2102796 号
All shareholders of BOE Technology Group Co., Ltd.:
Opinion
We have audited the accompanying financial statements of BOE Technology Group
Company Limited (“BOE”), which comprise the consolidated and company’s balance sheet
as at 31 December 2020, the consolidated and company’s income statement, the
consolidated and company’s cash flow statement, and the consolidated and company’s
statement 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’s financial position of BOE as at 31 December 2020, and its
consolidated and company’s 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.
Page 1 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2102796 号
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the 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” 23 and “V. Notes to the
consolidated financial statements” 44.
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 the terms, and evaluate whether 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 recognised 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, delivery receipts,
that revenue may not be recognised in a etc. to evaluate whether revenue is
correct period. recognised in accordance with the
accounting policy of BOE Group;
On a sampling basis and according to
different trading terms, cross check the
revenue recorded before and after the
balance sheet date against relevant
supporting files such as relevant orders,
shipping orders, sales invoices, customs
declarations, delivery receipts, etc. to
evaluate whether revenue is recorded in
the appropriate period;
Page 2 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2102796 号
Key Audit Matters (continued)
Revenue recognition (continued)
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 23 and “V. Notes to the
consolidated financial statements” 44.
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 certification on
the balance of accounts receivable as at
the balance sheet date and the sales
transaction amount during the current
year;
On a sampling basis, check the written-
back of revenue after the balance sheet
date (including sales discounts and sales
returns, etc.) with relevant supporting
documents to assess whether revenue is
recorded in the appropriate period;
Select revenue accounting entries that
meet specific risk criteria and check
related supporting documents.
Page 3 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2102796 号
Key Audit Matters (continued)
Book value of fixed assets and construction in progress
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 13, 14 and “V. Notes to the
consolidated financial statements” 14, 15.
How the matter was addressed in our
The Key Audit Matter audit
BOE Group continued to invest in building Our audit procedures to assess the book
production lines of display device to expand value of fixed assets and construction in
its production capacity. As at 31 December progress included the following:
2020, the book value of fixed assets and
construction in progress amounted to RMB Evaluate the design and operation
267,442 million. effectiveness of key internal controls
(including estimating useful life and
The judgement made by the management residual values, etc.) related to the
on the following aspects will affect the book integrity, existence and accuracy of fixed
value of fixed assets and construction in assets and construction in progress;
progress, including:
Check the physical status of construction
Determine which type of expenditures are in progress and fixed assets on a
qualified for capitalisation; sampling basis;
Determine the timing for transferring Check capital expenditures with relevant
construction in progress to fixed assets supporting documents (including
and making depreciation; purchase agreements/orders, acceptance
orders, engineering construction
Estimate the useful life and residual value contracts, project progress reports, etc.)
of corresponding fixed assets. on a sampling basis;
We identified the book value of fixed assets
and construction in progress of BOE Group Assess whether the capitalised
as a key audit matter because the valuation commissioning expenses for the current
of the book value of fixed assets and year are in compliance with relevant
construction in progress involves significant capitalisation conditions; check the
judgement from the management and it is of commissioning expenses with relevant
importance to the consolidated financial supporting documents on a sampling
statements. basis;
On the basis of sampling, assess the
timing for transferring construction in
progress to fixed assets, through the
inspection of commissioning situation and
the documents for transferring
construction in progress to fixed assets;
Based on our understanding of industry
practices and actual operating conditions
of assets, we evaluate the management’s
estimation of the useful life and residual
value of fixed assets.
Page 4 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2102796 号
Key Audit Matters (continued)
Impairment of fixed assets and intangible assets
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 19 and “V. Notes to the
consolidated financial statements” 14, 16.
How the matter was addressed in our
The Key Audit Matter audit
BOE Group principally generates revenue Our audit procedures to assess the
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
dramatic fluctuation. As at 31 December indications, and assess the design and
2020, the book value of fixed assets and operation effectiveness of key internal
intangible assets amounted to RMB 236,743 controls for impairment tests;
million, 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
The management classifies asset groups management’s classification basis of
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
For asset groups with impairment the management;
indications, the management assesses
whether the book value of fixed assets and For asset groups with significant
intangible assets as at 31 December 2020 impairment risk, assess the competence,
were impaired by calculating the present professional quality and objectivity of
value of expected future cash flows. experts hired by the management; and
Calculating the present value of expected adopt our own valuation experts’ work,
future cash flows requires management to assess if discount rates used for
make significant judgements, especially for estimating the present value of future
the estimation of future selling prices, sales cash flows by management are within the
volume and applicable discount rate. range used by other companies in the
same industry;
Page 5 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2102796 号
Key Audit Matters (continued)
Impairment of fixed assets and intangible assets (continued)
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 19 and “V. Notes to the
consolidated financial statements” 14, 16.
How the matter was addressed in our
The Key Audit Matter audit
We identified the impairment of fixed assets Our audit procedures to assess the
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.
Page 6 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2102796 号
Other Information
BOE’s management is responsible for the other information. The other information comprises
all the information included in 2020 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 the ability of
BOE to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless BOE either intends to
liquidate or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the financial reporting
process of BOE.
Page 7 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2102796 号
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from 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 the 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.
Page 8 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2102796 号
Auditor’s Responsibilities for the Audit of the Financial Statement (continued)
Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within BOE to express an opinion on the financial statements. We are
responsible for the instruction, supervision and execution of Conch Group’s audit, and assume
full responsibility for the 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
Zhang Huan (Engagement Partner)
Beijing China Chai Jing
9 April 2021
Page 9 of 9
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
Assets
Current assets
Cash at bank and on hand V. 1 73,694,296,095 56,972,723,239
Financial assets held for trading V. 2 4,367,201,833 5,809,184,994
Bills receivable V. 3 215,994,373 331,145,492
Accounts receivable V. 4 22,969,140,355 18,135,687,806
Prepayments V. 5 1,119,595,984 626,985,706
Other receivables V. 6 658,114,833 706,171,112
Inventories V. 7 17,875,454,490 12,396,194,762
Contract assets V. 8 49,897,395 -
Assets held for sale V. 9 186,892,645 173,910,820
Other current assets V. 10 7,848,869,252 9,296,637,067
Total current assets 128,985,457,255 104,448,640,998
The notes on pages 31 to 174 form part of these financial statements.
Page 1
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Assets (continued)
Non-current assets
Long-term equity investments V. 11 3,693,170,224 2,718,037,934
Investments in other equity instruments V. 12 533,645,423 632,076,647
Investment properties V. 13 1,196,168,511 1,241,242,850
Fixed assets V. 14 224,866,586,069 125,786,241,938
Construction in progress V. 15 42,575,849,952 87,376,782,527
Intangible assets V. 16 11,875,926,448 7,416,416,829
Goodwill V. 17 1,400,357,242 707,603,856
Long-term deferred expenses V. 18 299,634,100 345,424,409
Deferred tax assets V. 19 205,041,088 248,153,761
Other non-current assets V. 20 8,624,970,019 9,491,581,559
Total non-current assets 295,271,349,076 235,963,562,310
Total assets 424,256,806,331 340,412,203,308
The notes on pages 31 to 174 form part of these financial statements.
Page 2
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Liabilities and shareholders’ equity
Current liabilities
Short-term loans V. 21 8,599,569,471 6,366,717,121
Bills payable V. 22 1,231,533,895 2,028,917,980
Accounts payable V. 23 27,164,171,682 21,183,567,553
Advance payments received V. 24 124,040,749 1,260,732,785
Contract liabilities V. 25 3,440,720,535 -
Employee benefits payable V. 26 3,758,623,797 2,373,745,454
Taxes payable V. 27 1,077,686,869 730,996,129
Other payables V. 28 32,867,709,024 24,570,589,610
Non-current liabilities due within one
year V. 29 24,500,550,121 18,849,281,019
Other current liabilities V. 30 2,194,716,852 1,013,738,515
Total current liabilities 104,959,322,995 78,378,286,166
The notes on pages 31 to 174 form part of these financial statements.
Page 3
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Liabilities and shareholders’ equity
(continued)
Non-current liabilities
Long-term loans V. 31 132,452,767,135 107,730,595,615
Debentures payable V. 32 398,971,739 387,878,384
Long-term payables V. 33 2,114,175,683 984,520,824
Provisions V. 34 - 16,457,010
Deferred income V. 35 4,246,231,468 2,204,400,566
Deferred tax liabilities V. 19 1,427,601,154 1,451,825,357
Other non-current liabilities V. 36 5,260,001,443 8,200,542,412
Total non-current liabilities 145,899,748,622 120,976,220,168
Total liabilities 250,859,071,617 199,354,506,334
The notes on pages 31 to 174 form part of these financial statements.
Page 4
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V. 37 34,798,398,763 34,798,398,763
Other equity instruments V. 38 14,146,997,427 8,013,156,853
Capital reserve V. 39 37,435,655,934 38,353,242,364
Less: Treasury shares V. 40 1,036,298,508 -
Other comprehensive income V. 41 (22,198,072) (4,566,639)
Surplus reserve V. 42 2,444,416,669 1,516,139,709
Retained earnings V. 43 15,509,794,622 12,381,758,005
Total equity attributable to shareholders
of the Company 103,276,766,835 95,058,129,055
Non-controlling interests 70,120,967,879 45,999,567,919
Total shareholders’ equity 173,397,734,714 141,057,696,974
Total liabilities and shareholders’ equity 424,256,806,331 340,412,203,308
These financial statements were approved by the Board of Directors of the Company on 9
April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (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 31 to 174 form part of these financial statements.
Page 5
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
Assets
Current assets
Cash at bank and on hand XV. 1 4,375,497,010 3,680,770,048
Bills receivable - 84,230,531
Accounts receivable XV. 2 3,974,212,308 646,533,115
Prepayments 12,185,651 77,682,682
Other receivables XV. 3 16,345,474,583 4,827,398,094
Inventories 18,622,283 13,935,401
Other current assets XV. 4 177,761,718 109,497,897
Total current assets 24,903,753,553 9,440,047,768
The notes on pages 31 to 174 form part of these financial statements.
Page 6
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Assets (continued)
Non-current assets
Long-term equity investments XV. 5 182,135,057,208 159,389,864,760
Investments in other equity instruments 81,192,872 79,405,724
Investment properties 271,212,241 280,525,802
Fixed assets 1,009,178,229 949,104,308
Construction in progress 418,343,961 358,933,667
Intangible assets XV. 6 1,380,069,827 1,493,632,264
Long-term deferred expenses 105,439,681 109,216,398
Deferred tax assets XV. 7 - 360,268,466
Other non-current assets 2,611,437,988 162,516,190
Total non-current assets 188,011,932,007 163,183,467,579
Total assets 212,915,685,560 172,623,515,347
The notes on pages 31 to 174 form part of these financial statements.
Page 7
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Liabilities and shareholders’ equity
Current liabilities
Short-term loans - 1,220,000,000
Accounts payable 272,241,469 27,919,341
Advance payments received XV. 8 18,286,458 2,117,568,995
Employee benefits payable XV. 9 516,060,153 252,206,075
Taxes payable 87,179,892 107,287,957
Other payables XV. 10 6,541,918,681 5,260,470,974
Non-current liabilities due within one
year 7,847,210,073 5,490,440,787
Other current liabilities 1,977,977 1,423,133
Total current liabilities 15,284,874,703 14,477,317,262
Non-current liabilities
Long-term loans XV. 11 38,360,714,121 33,310,701,574
Deferred income XV. 12 3,633,342,446 4,627,393,256
Deferred tax liabilities XV. 7 385,697,604 -
Other non-current liabilities 56,156,661,805 33,297,240,830
Total non-current liabilities 98,536,415,976 71,235,335,660
Total liabilities 113,821,290,679 85,712,652,922
The notes on pages 31 to 174 form part of these financial statements.
Page 8
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V. 37 34,798,398,763 34,798,398,763
Other equity instruments V. 38 14,146,997,427 8,013,156,853
Capital reserve XV. 13 36,696,079,366 37,608,039,685
Less: Treasury shares V. 40 1,036,298,508 -
Other comprehensive income XV. 14 90,713,133 193,638,576
Surplus reserve V. 42 2,444,416,669 1,516,139,709
Retained earnings XV. 15 11,954,088,031 4,781,488,839
Total shareholders’ equity 99,094,394,881 86,910,862,425
Total liabilities and shareholders’ equity 212,915,685,560 172,623,515,347
These financial statements were approved by the Board of Directors of the Company on 9
April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (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 31 to 174 form part of these financial statements.
Page 9
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
I. Operating income V. 44 135,552,569,729 116,059,590,164
II. Less: Operating costs V. 44 108,823,122,756 98,446,269,296
Taxes and surcharges V. 45 1,078,900,085 861,100,605
Selling and distribution expenses V. 46 3,137,719,001 2,917,865,380
General and administrative
expenses V. 47 6,203,600,521 5,214,948,027
Research and development
expenses V. 48 7,622,597,925 6,699,973,240
Financial expenses V. 49 2,650,153,972 1,994,150,258
Including: Interest expenses 3,497,697,709 2,525,136,209
Interest income 873,376,712 840,190,118
Add: Other income V. 50 2,337,705,817 2,605,658,711
Investment income V. 51 897,891,109 342,620,691
Including: Income from
investment in
associates and joint
ventures 444,407,986 200,020,686
Gains from changes in fair value V. 52 31,936,339 137,473,077
Credit losses V. 53 1,827,519 (28,262,627)
Impairment losses V. 54 (3,280,425,399) (2,584,183,258)
Gains from asset disposals V. 55 19,061,846 79,029
III. Operating profit 6,044,472,700 398,668,981
Add: Non-operating income V. 56 120,503,628 208,430,198
Less: Non-operating expenses V. 56 72,139,666 103,349,078
The notes on pages 31 to 174 form part of these financial statements.
Page 10
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
IV. Profit before income tax 6,092,836,662 503,750,101
Less: Income tax expenses V. 57 1,564,566,246 979,991,504
V. Net profit/(losses) for the year 4,528,270,416 (476,241,403)
Attributable to:
Shareholders of the Company 5,035,627,952 1,918,643,871
Non-controlling interests (507,357,536) (2,394,885,274)
The notes on pages 31 to 174 form part of these financial statements.
Page 11
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
VI. Other comprehensive income, net of
tax V. 41 165,945,656 228,445,653
Other comprehensive income (net of
tax) attributable to owners of the
Company 177,438,725 236,859,881
(1) Items that will not be reclassified
to profit or loss
a. Other comprehensive income
recognised under equity
method 136,381,254 366,930,596
b. Changes in fair value of
investments in other equity
instruments (19,975,534) (36,688,762)
(2) Items that may be reclassified to
profit or loss
a. Other comprehensive income
recognised under equity
method 11,835 -
b. Translation differences arising
from translation of foreign
currency financial statements 61,021,170 (93,381,953)
Other comprehensive income
(net of tax) attributable to non-
controlling interests (11,493,069) (8,414,228)
The notes on pages 31 to 174 form part of these financial statements.
Page 12
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
VII. Total comprehensive income for the
year 4,694,216,072 (247,795,750)
Attributable to shareholders of the
Company 5,213,066,677 2,155,503,752
Attributable to non-controlling interests (518,850,605) (2,403,299,502)
VIII. Earnings per share
(1) Basic earnings per share V. 58 0.13 0.05
(2) Diluted earnings per share V. 58 0.13 0.05
These financial statements were approved by the Board of Directors of the Company on 9
April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (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 31 to 174 form part of these financial statements.
Page 13
BOE Technology Group Co., Ltd.
Company income statement
for the year ended 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
I. Operating income XV. 16 4,541,676,195 4,785,387,719
II. Less: Operating costs 22,304,841 29,852,957
Taxes and surcharges XV. 17 40,889,596 41,488,521
General and administrative
expenses 858,750,449 741,464,420
Research and development
expenses XV. 18 2,102,895,125 2,184,751,287
Financial expenses XV. 19 916,538,545 903,880,632
Including: Interest expenses 970,259,855 934,776,554
Interest income 37,793,976 41,156,445
Add: Other income XV. 20 970,989,167 945,400,212
Investment income XV. 21 2,429,685,102 2,185,769,102
Including: Income from
investment in
associates and joint
ventures 416,901,621 244,595,829
Credit losses (5,376,889) (62,558,750)
Impairment losses - (32,000,000)
III. Operating profit 3,995,595,019 3,920,560,466
Add: Non-operating income 6,879,087 4,120,515
Less: Non-operating expenses 11,908,850 8,305,483
IV. Profit before income tax 3,990,565,256 3,916,375,498
Less: Income tax expenses XV. 22 251,373,672 230,811,042
V. Net profit 3,739,191,584 3,685,564,456
The notes on pages 31 to 174 form part of these financial statements.
Page 14
BOE Technology Group Co., Ltd.
Company income statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
VI. Other comprehensive income, net of
tax XV. 14 136,131,965 389,401,782
(1) Items that will not be reclassified
to profit or loss
a. Other comprehensive income
recognised under equity
method 136,381,254 366,930,596
b. Changes in fair value of
investments in other equity
instruments (261,124) 22,471,186
(2) Items that may be reclassified to
profit or loss 11,835 -
VII. Total comprehensive income for the
year 3,875,323,549 4,074,966,238
These financial statements were approved by the Board of Directors of the Company on 9
April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (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 31 to 174 form part of these financial statements.
Page 15
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 152,737,944,370 131,939,100,428
Refund of taxes 11,677,125,705 9,211,921,444
Proceeds from other operating
activities 5,178,686,102 4,372,301,569
Sub-total of cash inflows 169,593,756,177 145,523,323,441
Payment for goods and services (115,414,695,545) (103,103,588,751)
Payment to and for employees (10,375,043,429) (11,274,232,340)
Payment of various taxes (2,493,092,709) (2,151,136,164)
Payment for other operating activities (2,059,151,036) (2,911,286,992)
Sub-total of cash outflows (130,341,982,719) (119,440,244,247)
Net cash inflow from operating
activities V. 59(1) 39,251,773,458 26,083,079,194
The notes on pages 31 to 174 form part of these financial statements.
Page 16
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
II. Cash flows from investing activities:
Proceeds from disposal of investments 23,039,182,987 33,515,656,910
Investment returns received 79,109,825 93,386,997
Net proceeds from disposal of fixed
assets, intangible assets and other
long-term assets 177,874,045 19,822,394
Net amount received from subsidiaries V. 59(2) 954,155,710 33,640,033
Net proceeds from disposal of
subsidiaries 336,086,996 -
Proceeds from other investing
activities 945,857,001 2,287,178,748
Sub-total of cash inflows 25,532,266,564 35,949,685,082
Payment for acquisition of fixed
assets, intangible assets and other
long-term assets (44,215,334,543) (49,415,897,698)
Payment for acquisition of investments (20,725,326,161) (33,949,914,820)
Net payment for acquisition of
subsidiaries and other business units . 59(2) (1,895,124,119) -
Payment for other investing activities (2,103,448,590) -
Sub-total of cash outflows (68,939,233,413) (83,365,812,518)
Net cash outflow from investing
activities (43,406,966,849) (47,416,127,436)
The notes on pages 31 to 174 form part of these financial statements.
Page 17
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
III. Cash flows from financing activities:
Proceeds from investors 10,377,793,629 14,066,343,889
Including: Proceeds from non-
controlling shareholders
of subsidiaries 10,377,793,629 14,066,343,889
Proceeds from issuance of debentures 5,966,660,000 8,075,977,975
Proceeds from borrowings 50,709,738,711 53,575,950,243
Net amount of monetary movements
for pledging loans 2,927,370,511 -
Proceeds from other financing
activities 920,016,046 6,000,000
Sub-total of cash inflows 70,901,578,897 75,724,272,107
The notes on pages 31 to 174 form part of these financial statements.
Page 18
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
III. Cash flows from financing activities
(continued):
Repayments of borrowings (38,547,043,449) (36,944,543,462)
Payment for dividends or interest (6,520,054,957) (6,746,163,635)
Including: Profits paid to non-
controlling shareholders
of subsidiaries (88,810,446) (10,911,242)
Net amount of monetary movements
for pledging loans - (287,261,600)
Payment for other financing activities (2,016,750,534) (3,967,658,080)
Sub-total of cash outflows (47,083,848,940) (47,945,626,777)
Net cash inflow from financing
activities 23,817,729,957 27,778,645,330
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents (1,868,121,768) 474,027,965
V. Net increase in cash and cash
equivalents V. 59(1) 17,794,414,798 6,919,625,053
Add: Cash and cash equivalents
at the beginning of the year 50,270,321,573 43,350,696,520
VI. Cash and cash equivalents
at the end of the year V. 59(3) 68,064,736,371 50,270,321,573
These financial statements were approved by the Board of Directors of the Company on 9
April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (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 31 to 174 form part of these financial statements.
Page 19
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 3,125,955,887 6,487,868,213
Proceeds from other operating
activities 77,211,104 53,961,183
Sub-total of cash inflows 3,203,166,991 6,541,829,396
Payment for goods and services (952,364,398) (1,576,266,273)
Payment to and for employees (977,064,794) (942,542,615)
Payment of various taxes (513,631,723) (528,982,127)
Payment for other operating activities (644,659,863) (1,042,770,921)
Sub-total of cash outflows (3,087,720,778) (4,090,561,936)
Net cash inflow from operating
activities XV. 23(1) 115,446,213 2,451,267,460
II. Cash flows from investing activities:
Proceeds from disposal of
investments 931,412,417 191,270,404
Investment returns received 1,208,468,425 1,006,558,146
Net proceeds from disposal of fixed
assets 303,987 2,791,799
Proceeds from other investing
activities 470,877,944 3,334,425,767
Sub-total of cash inflows 2,611,062,773 4,535,046,116
The notes on pages 31 to 174 form part of these financial statements.
Page 20
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
II. Cash flows from investing activities
(continued):
Payment for acquisition of fixed
assets, intangible assets and other
long-term assets (412,494,447) (1,158,649,934)
Payment for acquisition of
investments (20,477,410,853) (15,438,773,685)
Payment for other investing activities (12,405,000,000) (5,866,921,400)
Sub-total of cash outflows (33,294,905,300) (22,464,345,019)
Net cash outflow from investing
activities (30,683,842,527) (17,929,298,903)
III. Cash flows from financing activities:
Proceeds from issuance of
debentures 5,966,660,000 8,000,000,000
Proceeds from borrowings 21,867,000,000 19,341,142,361
Proceeds from other financing
activities 23,967,730,377 14,869,430,596
Sub-total of cash inflows 51,801,390,377 42,210,572,957
Repayments of borrowings (15,767,047,454) (17,830,000,000)
Payment for dividends and interest (2,254,787,893) (2,289,037,712)
Payment for other financing activities (2,398,651,425) (6,801,944,858)
Sub-total of cash outflows (20,420,486,772) (26,920,982,570)
Net cash inflow from financing
activities 31,380,903,605 15,289,590,387
The notes on pages 31 to 174 form part of these financial statements.
Page 21
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents (133,212,123) 39,397,054
V. Net (decrease)/increase in cash and
cash equivalents XV. 23(1) 679,295,168 (149,044,002)
Add: Cash and cash equivalents at
the beginning of the year 3,680,770,048 3,829,814,050
VI. Cash and cash equivalents
at the end of the year XV. 23(2) 4,360,065,216 3,680,770,048
These financial statements were approved by the Board of Directors of the Company on 9
April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (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 31 to 174 form part of these financial statements.
Page 22
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2020
(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 34,798,398,763 8,013,156,853 38,353,242,364 - (4,566,639) 1,516,139,709 12,381,758,005 95,058,129,055 45,999,567,919 141,057,696,974
Add: Changes in accounting policies III. 35 - - - - - 533,906,114 (533,906,114) - - -
Adjusted balance at the beginning of the year 34,798,398,763 8,013,156,853 38,353,242,364 - (4,566,639) 2,050,045,823 11,847,851,891 95,058,129,055 45,999,567,919 141,057,696,974
II. Changes in equity during the year
1. Total comprehensive income - - - - 177,438,725 - 5,035,627,952 5,213,066,677 (518,850,605) 4,694,216,072
2. Shareholders’ contributions of capital
(1) Contribution by non-controlling
interests - - - - - - - - 10,663,566,927 10,663,566,927
(2) Contribution by holders of other
equity instruments V. 38 - 5,967,915,094 - - - - - 5,967,915,094 - 5,967,915,094
(3) Repurchase of treasury shares V. 40 - - - 1,998,774,694 - - - (1,998,774,694) - (1,998,774,694)
(4) Business combinations involving
entities not under common control VI. 1 - - - - - - - - 14,293,193,400 14,293,193,400
(5) Changes in shareholding ratio of
subsidiaries V. 39 - - 76,020,559 - - - - 76,020,559 (76,020,559) -
(6) Equity-settled share-based
payments XI - - (946,466,251) (962,476,186) - - - 16,009,935 1,201,528 17,211,463
3. Appropriation of profits
(1) Appropriation for surplus reserve V. 42 - - - - - 373,919,158 (373,919,158) - - -
(2) Accrued interest on holders of other
equity instruments V. 38 - 485,925,480 - - - - (485,925,480) - - -
(3) Payment for interest on holders of
other equity instruments V. 38 - (320,000,000) - - - - - (320,000,000) - (320,000,000)
(4) Distributions to shareholders V. 43 - - - - - - (695,967,975) (695,967,975) (88,810,446) (784,778,421)
The notes on pages 31 to 174 form part of these financial statements.
Page 23
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2020 (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. 41/43 - - - - (195,070,158) 23,905,741 171,164,417 - - -
5. Others
(1) Disposal of subsidiaries to equity
method accounting VI. 2 - - (46,470,087) - - (3,454,053) 3,454,053 (46,470,087) (146,654,227) (193,124,314)
(2) Other movements in equity of
associates V. 11 - - 7,011,400 - - - - 7,011,400 - 7,011,400
(3) Others - - (7,682,051) - - - 7,508,922 (173,129) (6,226,058) (6,399,187)
III. Balance at the end of the year 34,798,398,763 14,146,997,427 37,435,655,934 1,036,298,508 (22,198,072) 2,444,416,669 15,509,794,622 103,276,766,835 70,120,967,879 173,397,734,714
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (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 31 to 174 form part of these financial statements.
Page 24
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity comprehensive Retained Non-controlling
Note Share capital instruments Capital reserve income Surplus reserve earnings Sub-total interests Total
I. Balance at the beginning of the
year 34,798,398,763 - 38,213,100,596 (291,856,968) 1,152,626,310 11,977,119,533 85,849,388,234 34,499,426,498 120,348,814,732
II. Changes in equity during the year
1. Total comprehensive income - - - 236,859,881 - 1,918,643,871 2,155,503,752 (2,403,299,502) (247,795,750)
2. Shareholders’ contributions of
capital
(1) Contributed by non-
controlling interests - - - - - - - 14,066,343,889 14,066,343,889
(2) Non-controlling interests’
decrease of capital - - - - - - - (40,233,450) (40,233,450)
(3) Contribution by holders of
other equity instruments - 7,957,047,264 - - - - 7,957,047,264 - 7,957,047,264
(4) Business combinations
involving entities not
under common control - - - - - - - 11,310,000 11,310,000
(5) Change in shareholding
ratio of subsidiaries - - 123,068,274 - - - 123,068,274 (123,068,274) -
3. Appropriation of profits
(1) Appropriation for surplus
reserve V. 43 - - - - 368,556,446 (368,556,446) - - -
(2) Accrued interest on
holders of other equity
instruments - 56,109,589 - - - (56,109,589) - - -
(3) Distributions to
shareholders - - - - - (1,043,951,963) (1,043,951,963) (10,911,242) (1,054,863,205)
The notes on pages 31 to 174 form part of these financial statements.
Page 25
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity comprehensive Retained Non-controlling
Note Share capital instruments Capital reserve income Surplus reserve earnings Sub-total interests Total
4. Transfers within equity
(1) Transfer of other
comprehensive income
to retained earnings V. 43 - - - 50,430,448 (5,043,047) (45,387,401) - - -
5. Others - - 17,073,494 - - - 17,073,494 - 17,073,494
III. Balance at the end of the year 34,798,398,763 8,013,156,853 38,353,242,364 (4,566,639) 1,516,139,709 12,381,758,005 95,058,129,055 45,999,567,919 141,057,696,974
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (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 31 to 174 form part of these financial statements.
Page 26
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2020
(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 34,798,398,763 8,013,156,853 37,608,039,685 - 193,638,576 1,516,139,709 4,781,488,839 86,910,862,425
Add: Changes in accounting policies III. 35 - - - - - 533,906,114 4,805,155,027 5,339,061,141
Adjusted balance at the beginning of the year 34,798,398,763 8,013,156,853 37,608,039,685 - 193,638,576 2,050,045,823 9,586,643,866 92,249,923,566
II. Changes in equity during the year
1. Total comprehensive income - - - - 136,131,965 - 3,739,191,584 3,875,323,549
2. Shareholders’ contributions of capital
(1) Contribution by holders of other equity
instruments V. 38 - 5,967,915,094 - - - - - 5,967,915,094
(2) Repurchase of treasury shares V. 40 - - - 1,998,774,694 - - - (1,998,774,694)
(3) Equity-settled share-based payments XI - - (945,264,723) (962,476,186) - - - 17,211,463
3. Appropriation of profits
(1) Appropriation for surplus reserve V. 42 - - - - - 373,919,158 (373,919,158) -
(2) Accrued interest on holders of other
equity instruments V. 38 - 485,925,480 - - - - (485,925,480) -
(3) Payment for interest on holders of other
equity instruments V. 38 - (320,000,000) - - - - - (320,000,000)
(4) Distributions to shareholders V. 43 - - - - - - (695,967,975) (695,967,975)
The notes on pages 31 to 174 form part of these financial statements.
Page 27
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2020 (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 XV. 14/15 - - - - (239,057,408) 23,905,741 215,151,667 -
5. Others
(1) Disposal of subsidiaries to equity
method accounting VI. 2 - - - - - (3,454,053) (31,086,473) (34,540,526)
(2) Other movements in equity of associates XV. 5 - - 33,304,404 - - - - 33,304,404
III. Balance at the end of the year 34,798,398,763 14,146,997,427 36,696,079,366 1,036,298,508 90,713,133 2,444,416,669 11,954,088,031 99,094,394,881
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (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 31 to 174 form part of these financial statements.
Page 28
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity comprehensive
Note Share capital instruments Capital reserve income Surplus reserve Retained earnings Total
I. Balance at the beginning of the year 34,798,398,763 - 37,590,966,191 (246,193,654) 1,152,626,310 2,609,929,782 75,905,727,392
II. Changes in equity during the year
1. Total comprehensive income - - - 389,401,782 - 3,685,564,456 4,074,966,238
2. Shareholders’ contributions of
capital
Contribution by holders of other
equity instruments - 7,957,047,264 - - - - 7,957,047,264
3. Appropriation of profits
(1) Appropriation for surplus
reserve - - - - 368,556,446 (368,556,446) -
(2) Accrued interest on holders
of other equity instruments - 56,109,589 - - - (56,109,589) -
(3) Distributions to shareholders - - - - - (1,043,951,963) (1,043,951,963)
The notes on pages 31 to 174 form part of these financial statements.
Page 29
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity comprehensive
Share capital instruments Capital reserve income Surplus reserve Retained earnings Total
4. Transfers within equity
(1) Transfer of other
comprehensive income to
retained earnings - - - 50,430,448 (5,043,047) (45,387,401) -
5. Others - - 17,073,494 - - - 17,073,494
III. Balance at the end of the year 34,798,398,763 8,013,156,853 37,608,039,685 193,638,576 1,516,139,709 4,781,488,839 86,910,862,425
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (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 31 to 174 form part of these financial statements.
Page 30
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, smart systems innovation business, smart medicine &
engineering integration business, sensor and application solutions business and Mini-LED
business. For information about the subsidiaries of the Company, refer to Note VII.
II. Basis of preparation
The financial statements have been prepared on the going concern basis.
The Group has adopted the revised “Accounting Standard for Business Enterprises No. 22 –
Financial Instruments: Recognition and Measurement” and related new financial instruments
standards, issued by the Ministry of Finance (“MOF”) of the People’s Republic of China in
2017, since 1 January 2019. In addition, it has adopted the revised “Accounting Standard for
Business Enterprises No. 14 – Revenue” issued by the MOF in 2017 since 1 January 2020
(see Note III.35), and has not adopted the revised “Accounting Standard for Business
Enterprises No. 21 – Leases” issued by the MOF in 2018.
Certain overseas subsidiaries of the Group have adopted the revised “Accounting Standard
for Business Enterprises No. 21 – Leases”, issued by the MOF in 2018. The adoption of the
above standards does not have a material impact on the Group’s consolidated financial
position and consolidated financial performance.
III. Significant accounting policies and accounting estimates
1 Statement of compliance
The financial statements have been prepared in accordance with the requirements of
Accounting Standards for 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 2020, 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 2014.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
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.8.
5 Accounting treatments for business combinations involving entities under common control
and not under common control
A transaction constitutes a business combination when the Group obtains control of one or
more entities (or a group of 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
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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(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.17). 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.
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.11(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.
6 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
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
owners’ equity of the subsidiary, the excess is still allocated against the non-controlling
interests.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
(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.6(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
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
control shall be recognised in other comprehensive income and transferred to profit or loss
when the parent eventually loses control of the subsidiary.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(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.
7 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.
8 Foreign currency transactions and translation of foreign currency financial statements
When the Group receives capital in foreign currencies from investors, the capital is translated
to Renminbi at the 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.15). 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.
9 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.11),
receivables, payables, loans and borrowings, debentures payable and share capital.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(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 asset 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.23.
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in which
a financial asset is 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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(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.
The Group derecognises a financial liability (or part of it) only when its contractual obligation
(or part of it) is extinguished.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(6) Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;
- contract assets;
- Debt investments at FVOCI
Financial assets measured at fair value, including debt investments or equity securities at
FVPL, equity securities 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 trade receivables and contract assets are always measured at an
amount equal to lifetime ECL. 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 trade receivables and contract assets, the Group measures loss allowance at an
amount equal to 12-month ECL for the following financial instruments, and at an amount
equal to lifetime ECL for all other financial instruments.
- If the financial instrument is determined to have low credit risk at the balance sheet date;
- If the credit risk on a financial instrument has not increased significantly since initial
recognition.
Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a low
risk of default, the borrower has a 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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
10 Inventories
(1) Classification and cost
Inventories include raw materials, work in progress, finished goods and reusable materials.
Reusable materials include low-value consumables, packaging materials and 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) Measurement method of cost of inventories
Cost of inventories recognised is calculated using the weighted average method.
Consumables including low-value consumables and packaging materials are charged to
profit or loss upon receipt. The amortisation charge is included in the cost of the related
assets or recognised in profit or loss for the current period.
(3) Basis for determining the net realisable value and method for provision for obsolete
inventories
At the balance sheet date, inventories are carried at the lower of cost and net realisable
value.
Net realisable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion 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.
(4) Inventory count system
The Group maintains a perpetual inventory system.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
11 Long-term equity investments
(1) Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business
combination involving entities under common control is the Company’s share of 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.29). 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.19.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
In the Group’s consolidated financial statements, investments in subsidiaries are
accounted for in accordance with the policies described in Note III.6.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint
control (see Note III.11(3)) and rights to the net assets of the arrangement.
An associate is an entity over which the Group has significant influence (see Note
III.11(3)).
An investment in a joint venture or an associate is accounted for using the equity
method for subsequent measurement, unless the investment is classified as held for
sale (see Note III.29).
The accounting treatments under the equity method adopted by the Group are as
follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest
in the fair value of 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.
- 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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
For the impairment of the investments in joint ventures and associates, refer to Note
III.19.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(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.
12 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.29). For the impairment of the investment properties, refer to Note III.19.
The estimated useful lives, residual value rates and depreciation rates of each class 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%
13 Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods,
for use in supply of services, for rental or for administrative purposes with useful lives over
one accounting year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and any
directly attributable expenditure 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.14.
Where the parts of an item of fixed assets have different useful lives or provide benefits to
the Group in a different pattern, thus necessitating use of different depreciation rates or
methods, each part is recognised as a separate fixed asset.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.29).
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) (%) (%)
Plant & buildings 10 - 50 years 3% - 10% 1.8% - 9.7%
Equipment 2 - 25 years 0 - 10% 3.6% - 50%
Others 2 - 10 years 0 - 10% 9.0% - 50%
Useful lives, estimated residual values and depreciation methods are reviewed at least at
each year-end.
(3) For the impairment of the fixed assets, refer to Note III.19.
(4) For the recognition, measurement and depreciation of fixed assets acquired under finance
leases, refer to Note III. 28(3).
(5) Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between 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.
14 Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour, capitalised
borrowing costs (see Note III.15), and any other costs directly attributable to bringing the
asset to working condition for its intended use.
A self-constructed asset is classified as construction in progress and transferred to fixed
asset when it is ready for its intended use. No depreciation is provided against construction
in progress.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Construction in progress is stated in the balance sheet at cost less accumulated impairment
losses (see Note III.19).
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
15 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
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.
16 Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortisation
(where the estimated useful life is finite) and impairment losses (see Note III.19). For 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.29).
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
The respective amortisation periods for intangible assets are as follows:
Amortisation period
Item (years)
Land use rights 20 - 50 years
Patent and proprietary technology 5 - 20 years
Computer software 3 - 10 years
Others 5 - 20 years
Useful lives and amortisation methods of intangible asset with finite useful life are reviewed
at least at each year-end. An 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.
Expenditure on an internal research and development project is classified into expenditure
incurred during the research phase and expenditure incurred during the development phase.
Expenditure during the research phase is expensed when incurred. Expenditure during the
development phase is capitalised if development costs can be measured reliably, the product
or process is technically and commercially feasible, and the Group intends to and has
sufficient resources to complete the development. Capitalised development costs are stated
in the balance sheet at cost less impairment losses (see Note III.19). Other development
expenditure is recognised as an expense in the period in which it is incurred.
17 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’s
interest in the fair value of 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.19). On disposal of an asset group or a set of asset groups,
any attributable goodwill is written off and included in the calculation of the profit or loss on
disposal.
18 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 period
Item (years)
Payment for public facilities construction and use 10 - 15 years
Cost of operating lease assets improvement 2 - 10 years
Others 2 - 10 years
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
19 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based
on internal and external sources of information to determine whether there is any indication
of impairment:
- fixed assets
- construction in progress
- intangible assets
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In addition, the
Group estimates the 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.20) 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
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.
20 Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
21 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.
22 Share-based payments
(1) Classification of share-based payments
Share-based payment transactions in the Group are equity-settled share-based payments.
(2) Accounting treatment of share-based payments
- Equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for 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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
23 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.
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
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
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.9(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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
24 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
- 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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
25 Employee benefits
(1) Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medical
insurance, work injury insurance, maternity insurance and housing fund, measured at the
amount incurred or accrued at the applicable benchmarks and rates, are recognised as a
liability as the employee provides services, with a corresponding charge to profit or loss or
included in 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 insurance
plan and unemployment insurance 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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
26 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 recognises 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 amortised; 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 amortised based on the carrying amount after being offset and the
remaining useful life of relevant assets.
For the government grants related to income which are used to compensate for related costs
or losses of the Group in the future period, it shall be recognised as deferred income, and
included in profit and loss or used to offset related costs; otherwise it shall be directly
included in profit and loss or used to offset related costs.
In respect of the policy-based preferential loan interest subsidy obtained by the Group, if the
interest subsidy is 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
capitalised as part of the cost of the asset (see Note III.15), the interest subsidy shall be used
to offset relevant asset costs.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
27 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they
relate to a business combination 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.
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.
Page 64
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
28 Operating leases and finance leases
A lease is classified as either a finance lease or an operating lease. A lease is classified as a
finance lease if it 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.
(1) Operating lease charges
Rental payments under operating leases are recognised as part of the cost of another related
asset or as expenses on a straight-line basis over the lease term.
(2) Assets leased out under operating leases
Fixed assets leased out under operating leases, except for investment properties (see Note
III.12), are depreciated in accordance with the Group’s depreciation policies described in
Note III.13(2). Impairment losses are recognised in accordance with the accounting policy
described in Note III.19. Income derived from operating leases is recognised in profit or loss
using the straight-line method over the lease term. If initial direct costs incurred in respect of
the assets leased out are material, the costs are initially capitalised and subsequently
amortised in profit or loss over the lease term on the same basis as the lease income.
Otherwise, the costs are charged to profit or loss immediately.
(3) Assets acquired under finance leases
At the commencement of the lease term, the minimum lease payments are recorded as long-
term payables. The difference between the carrying amount of the leased assets and the
minimum lease payments is accounted for as unrecognised finance charges. Initial direct
costs attributable to a finance lease that are incurred by the Group are added to the carrying
amount of the leased asset. Depreciation and impairment losses are accounted for in
accordance with the accounting policies described in Notes III.13(2) and III.19, respectively.
If there is reasonable certainty that the Group will obtain ownership of a leased asset at the
end of the lease term, the leased asset is depreciated over its estimated useful life.
Otherwise, the leased asset is depreciated over the shorter of the lease term and its
estimated useful life.
Unrecognised finance charges arising from a finance lease are recognised using an effective
interest method over the lease term. The amortisation is accounted for in accordance with
the principles of borrowing costs (see Note III.15).
At the balance sheet date, the long-term payables arising from finance leases, net of the
unrecognised finance charges, are analysed and separately presented as long-term
payables or non-current liabilities due within one year.
29 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when the
carrying amount of a non-current asset 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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.20) less costs to sell (except financial assets (see Note
III.9) and deferred tax assets (see Note III.27)) initially and subsequently. Any excess of the
carrying amount over the fair value (see Note III.20) less costs to sell is recognised as an
impairment loss in profit or loss.
30 Hedge accounting
Hedge accounting is a method which recognises in profit or loss (or other comprehensive
income) the gain or loss on the hedging instrument and the hedged item in the same
accounting period(s) to represent the effect of risk management.
Hedged items are items that expose the Group to risks of changes in fair value or cash flows
and that are designated as being hedged and can be reliably measured. The Group’s
hedged items include fixed-rate borrowings that expose the Group to the risk of changes in
fair value, a firm commitment that is settled with a fixed amount of foreign currency and that
exposes the Group to foreign currency risk.
A hedging instrument is a designated financial instrument whose changes in fair value or
cash flows are expected to offset changes in the fair value or cash flows of the hedged item.
For a hedge of foreign currency risk, the foreign currency risk component of a non-derivative
financial asset or non-derivative financial liability may also be designated as a hedging
instrument provided that it is not an investment in an equity instrument for which an entity
has elected to present changes in the fair value in other comprehensive income.
The Group assesses at the inception of a hedging relationship, and on an ongoing basis,
whether the hedging relationship meets the hedge effectiveness requirements. A hedging
relationship is regarded as having met the hedge effectiveness requirements if all of the
following conditions are satisfied:
- There is an economic relationship between the hedged item and the hedging instrument.
- The effect of credit risk does not dominate the value changes that result from the
economic relationship.
- The hedge ratio of the hedging relationship is the same as that resulting from the quantity
of the hedged item that the entity actually hedges and the quantity of the hedging
instrument that the entity actually uses to hedge that quantity of the hedged item.
When a hedging relationship no longer meets the hedge effectiveness requirements due to
the hedge ratio, but the risk management objective of the designated hedging relationship
remains unchanged, the Group rebalances the hedging relationship. Rebalancing refers to
the adjustments made to the designated quantities of the hedged item or the hedging
instrument of an already existing hedging relationship for the purpose of maintaining a hedge
ratio that complies with the hedge effectiveness requirements.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
The Group discontinues applying hedge accounting in any of the following circumstances:
- The hedging relationship no longer meets the risk management objective on the basis of
which it qualified for hedge accounting.
- The hedging instrument expires or is sold, terminated or exercised.
- There is no longer an economic relationship between the hedged item and the hedging
instrument or the effect of credit risk starts to dominate the value changes that result from
that economic relationship.
- The hedging relationship no longer meets other criteria for applying hedge accounting.
Cash flow hedges
A cash flow hedge is a hedge of the exposure to variability in cash flows. The portion of the
gain or loss on a hedging instrument that is determined to be an effective hedge is
recognised in other comprehensive income as a cash flow hedge reserve. The amount of the
cash flow hedge reserve is adjusted to the lower of the following (in absolute amounts):
- the cumulative gain or loss on the hedging instrument from inception of the hedge;
- the cumulative change in present value of the expected future cash flows on the hedged
item from inception of the hedge.
The change in the amount of the cash flow hedge reserve is recognised in other
comprehensive income in each period.
The portion of the gain or loss on the hedging instrument that is determined to be
ineffectiveness is recognised in profit or loss.
If a hedged forecast transaction subsequently results in the recognition of a non-financial
asset or non-financial liability, or a hedged forecast transaction for a non-financial asset or
non-financial liability becomes a firm commitment for which fair value hedge accounting is
applied, the Group removes that amount from the cash flow hedge reserve and includes it in
the initial cost or other carrying amount of the asset or liability.
For cash flow hedges other than those covered above, that amount is reclassified from the
cash flow hedge reserve to profit or loss as a reclassification adjustment in the same period
or periods during which the hedged expected future cash flows affect profit or loss.
When the Group discontinues hedge accounting for a cash flow hedge, the amount of the
accumulated cash flow hedge reserve recognised in other comprehensive income is
accounted for as follows:
- If the hedged future cash flows are still expected to occur, that amount will remain in the
cash flow hedge reserve, and be accounted for in accordance with the above policy.
- If the hedged future cash flows are no longer expected to occur, that amount is
immediately reclassified from the cash flow hedge reserve to profit or loss as a
reclassification adjustment.
31 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will be
approved after the balance sheet date, are not recognised as a liability at the balance sheet
date but are disclosed in the notes separately.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
32 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.
33 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 similar economic characteristics and are same or similar in respect of the nature of
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. Reportable segments are identified
based on operating segments taking into account of materiality principle.
Inter-segment revenues are measured on the basis of the actual transaction prices for such
transactions for segment reporting. Segment accounting policies are consistent with those for
the consolidated financial statements.
34 Significant accounting estimates and judgements
The preparation of the financial statements requires management to make estimates and
assumptions that affect 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
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.13 and 16) and provision for impairment of
various types of assets (see Notes V.4, 6, 7, 8, 11, 14, 15, 16 and 17 and Notes XV.2, 3, 5
and 6). Other significant accounting estimates are as follows:
(i) Note V.19: – Recognition of deferred tax assets;
(ii) Note V.30 – Warranty provisions;
(iii) Note IX – Valuation of fair value of financial instruments; and
(iv) Note XI: – Share-based payments.
Significant judgements made by the Group in the application of accounting policies are as
follows:
(i) Note VII.1(1) –Significant judgements and assumptions in determining control over
other entity.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
35 Changes in accounting policies
(1) Description and reasons of changes in accounting policies
In 2020, the Group has adopted the following accounting standards issued by the MOF
recently:
- CAS No.14 - Revenue (Revised) (“new revenue standard”)
- CAS Bulletin No.13 (Caikuai [2019] No.21)
- The Accounting Treatment of COVID-19-Related Rent Concessions (Caikuai [2020] No.
10)
(a) New revenue standard
New revenue standard replaces CAS No.14 – Revenue and CAS No.15 - Construction
Contracts issued by the MOF in 2006 (“previous revenue standard”).
Under previous revenue standard, the Group recognised revenue when the risks and
rewards had passed to the customers. The Group's revenue from sales of goods was
recognised when the following conditions were met: the significant risks and rewards of
ownership of the goods had been transferred to the customer, the amount of revenue
and related costs could be reliably measured, the relevant economic benefits would
probably flow to the Group and the Group retained neither continuing managerial
involvement to the degree usually associated with ownership nor effective control over
the goods sold. Revenue from rendering of services and revenue from construction
contracts were recognised by reference to the stage of completion of the transaction at
the balance sheet date.
Under new revenue standard, revenue is recognised when the customer obtains
control of the promised goods or services in the contract:
- 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.
The Group satisfies a performance obligation over time if certain criteria is met; or
otherwise, a performance obligation is satisfied at a point in time. 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
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. 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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
- The Group have adjusted the relevant accounting policies in accordance with the
specific provisions on specific matters or transactions under new revenue standard,
such as contract costs, warranties, principal versus agent considerations, sale with a
right of return, customer options for additional goods or services, licensing,
repurchase agreements, advance receipts, non-refundable upfront fee, etc.
- Under new revenue standard, the Group presents a contract asset or a contract
liability in the balance sheet based on the relationship between the Group's
performance and the customer's payment. At the same time, the Group provides
more disclosures on revenue and related information based on the disclosure
requirements under new revenue standard, such as relevant accounting policies,
significant judgements (measurement of variable consideration, the method used to
allocate the transaction price to each performance obligation, the assumption used
for estimating stand-alone selling price of each performance obligation, etc.),
information of contracts with customers (revenue recognised in current period,
contract balance, performance obligation, etc.), information of assets related to
contract costs, etc.
The effect of adopting new revenue standard on the Group’s accounting policies are as
follows:
- When there is a third party participating in sales of goods to customers, under
previous revenue standard, the Group determines whether it is a principal or an
agent by comprehensively taking into account whether it has pricing rights and
assumes any inventory risk and credit risk and other factors. Under new revenue
standard, the Group determines according to the following conditions: 1) the entity
transfers to the customer after having obtained the control of the goods or other
assets from a third party; 2) the entity can engage a third party to provide services to
the customer on its behalf; 3) after obtaining control of the goods from a third party,
the entity integrates the goods with other goods by providing a significant service to
form a compound output to transfer to the customer.
- The transportation costs related to sales contract assumed by the Group are
presented as selling expenses under previous revenue standard. According to the
accounting requirements of new revenue standard, transportation is a necessary
activity when the Group is fulfilling the sales contract, and therefore the related costs
are the costs to fulfil a contract, which will be adjusted to be presented under
operating costs after the adoption of new revenue standard.
- For advance from customers for transfer of goods (or rendering of services), under
previous revenue standard, the Group will include it in “Advance from customers”.
Under new revenue standard, the Group presents its obligation to transfer goods for
which the Group has received consideration from the customer in the balance sheet
as a “contract liability” since 1 January 2020, depending on the relationship between
the entity's performance and the customer's payment. Comparative figures are not
restated.
- For the transfer of products with a right of return, under previous revenue standard
the Group made a reasonable estimation of the return based on experience, then
adjusted revenue and corresponding cost for the amount expected to be returned
and recognised the difference as a liability. Under new revenue standard, the Group
recognises a refund liability based on the amount expected to be returned. The
product expected to be returned is initially recognised as an asset for the right to
recover returned goods.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Page 72
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
- For the revenue from granting of a licence of intellectual property to subsidiaries of
the Group, under previous revenue standard, the company recognises revenue
according to the period and method of charging as stipulated in the relevant
contracts or agreements. Under new revenue standard, 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: 1) 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; 2) the rights granted by the licence directly expose the
customer to any positive or negative effects of the Group’s activities; and 3) those
activities do not result in the transfer of a good or a service to the customer as those
activities occur. When the Company grants a licence of intellectual property to
subsidiaries, the revenue shall be recognised at a point in time.
The Group has recognised the cumulative effect of initial application as an adjustment
to the opening balance of retained earnings and the amount of other relevant items in
the financial statements at 1 January 2020, and comparative information has not been
restated. The Group only adjusted the cumulative effect of contracts that were not
completed before 1 January 2020 to the opening balance of retained earnings and the
amount of other relevant items in the financial statements at 1 January 2020.
The following tables provide information of the impact on each of the line items in the
consolidated income statement and company income statement, and the consolidated
balance sheet and company balance sheet, as well as the consolidated cash flow
statement and company cash flow statement for the year ended 31 December 2020
had the previous policies still been applied in the year.
- The effects on each of the line items in the consolidated income statement and
company income statement for the year ended 31 December 2020 are analysed as
follows:
Decrease in the line items for the year
as a result of applying new accounting
policies
The Group The Company
Operating income from principal activities (9,117,107,992) (1,200,000,000)
Operating cost of principal activities (8,446,207,600) -
Selling and distribution expenses (670,900,392) -
Profit before income tax - (1,200,000,000)
Income tax expenses - (180,000,000)
Net profit for the year - (1,020,000,000)
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
- The effects on each of the line items in the consolidated balance sheet and
company balance sheet as at 31 December 2020 are analysed as follows:
Decrease/(increase) in the line items as
a result of applying new accounting
policies
The Group The Company
Assets
Accounts receivable (49,897,395) 1,723,155,949
Contract assets 49,897,395 -
Other current assets 131,986,424 -
Deferred tax assets - (315,937,260)
Other non-current assets - 2,250,000,000
Liabilities
Advance from customers (3,719,511,537) (1,108,092,452)
Contract liabilities 3,440,720,535 -
Other current liabilities 410,777,426 -
Deferred tax liabilities - (446,250,000)
Shareholders’ equity
Surplus reserve - 431,906,114
Retained earnings - 3,887,155,027
The impact of the adoption of new revenue standard on each of the line items in the
consolidated balance sheet and company balance sheet as at 1 January 2020 are
analysed as follows:
The Group
31 December 2019 1 January 2020 Adjustments
Assets
Current assets
Cash at bank and on hand 56,972,723,239 56,972,723,239 -
Financial assets held for trading 5,809,184,994 5,809,184,994 -
Bills receivable 331,145,492 331,145,492 -
Accounts receivable 18,135,687,806 18,107,976,861 (27,710,945)
Contract assets - 27,710,945 27,710,945
Prepayments 626,985,706 626,985,706 -
Other receivables 706,171,112 706,171,112 -
Inventories 12,396,194,762 12,396,194,762 -
Assets held for sale 173,910,820 173,910,820 -
Other current assets 9,296,637,067 9,375,901,777 79,264,710
Total current assets 104,448,640,998 104,527,905,708 79,264,710
Non-current assets
Long-term equity investments 2,718,037,934 2,718,037,934 -
Investments in other equity
instruments 632,076,647 632,076,647 -
Investment properties 1,241,242,850 1,241,242,850 -
Fixed assets 125,786,241,938 125,786,241,938 -
Construction in progress 87,376,782,527 87,376,782,527 -
Intangible assets 7,416,416,829 7,416,416,829 -
Goodwill 707,603,856 707,603,856 -
Long-term deferred expenses 345,424,409 345,424,409 -
Deferred tax assets 248,153,761 248,153,761 -
Other non-current assets 9,491,581,559 9,491,581,559 -
Total non-current assets 235,963,562,310 235,963,562,310 -
Total assets 340,412,203,308 340,491,468,018 79,264,710
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
The Group
31 December 2019 1 January 2020 Adjustments
Liabilities and shareholders’ equity
Current liabilities
Short-term loans 6,366,717,121 6,366,717,121 -
Bills payable 2,028,917,980 2,028,917,980 -
Accounts payable 21,183,567,553 21,183,567,553 -
Advance payments received 1,260,732,785 123,152,835 (1,137,579,950)
Contract liabilities - 1,083,074,827 1,083,074,827
Employee benefits payable 2,373,745,454 2,373,745,454 -
Taxes payable 730,996,129 730,996,129 -
Other payables 24,570,589,610 24,570,589,610 -
Non-current liabilities due within
one year 18,849,281,019 18,849,281,019 -
Other current liabilities 1,013,738,515 1,147,508,348 133,769,833
Total current liabilities 78,378,286,166 78,457,550,876 79,264,710
Non-current liabilities
Long-term loans 107,730,595,615 107,730,595,615 -
Debentures payable 387,878,384 387,878,384 -
Long-term payables 984,520,824 984,520,824 -
Provisions 16,457,010 16,457,010 -
Deferred income 2,204,400,566 2,204,400,566 -
Deferred tax liabilities 1,451,825,357 1,451,825,357 -
Other non-current liabilities 8,200,542,412 8,200,542,412 -
Total non-current liabilities 120,976,220,168 120,976,220,168 -
Total liabilities 199,354,506,334 199,433,771,044 79,264,710
Shareholders’ equity
Share capital 34,798,398,763 34,798,398,763 -
Other equity instruments 8,013,156,853 8,013,156,853 -
Capital reserve 38,353,242,364 38,353,242,364 -
Other comprehensive income (4,566,639) (4,566,639) -
Surplus reserve 1,516,139,709 2,050,045,823 533,906,114
Retained earnings 12,381,758,005 11,847,851,891 (533,906,114)
Total equity attributable to
shareholders of the Company 95,058,129,055 95,058,129,055 -
Non-controlling interests 45,999,567,919 45,999,567,919 -
Total shareholders’ equity 141,057,696,974 141,057,696,974 -
Total liabilities and shareholders’ equity 340,412,203,308 340,491,468,018 79,264,710
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
The Company
31 December 2019 1 January 2020 Adjustments
Assets
Current assets
Cash at bank and on hand 3,680,770,048 3,680,770,048 -
Bills receivable 84,230,531 84,230,531 -
Accounts receivable 646,533,115 1,698,906,221 1,052,373,106
Prepayments 77,682,682 77,682,682 -
Other receivables 4,827,398,094 4,827,398,094 -
Inventories 13,935,401 13,935,401 -
Other current assets 109,497,897 109,497,897 -
Total current assets 9,440,047,768 10,492,420,874 1,052,373,106
Non-current assets
Long-term equity investments 159,389,864,760 159,389,864,760 -
Investments in other equity
instruments 79,405,724 79,405,724 -
Investment properties 280,525,802 280,525,802 -
Fixed assets 949,104,308 949,104,308 -
Construction in progress 358,933,667 358,933,667 -
Intangible assets 1,493,632,264 1,493,632,264 -
Long-term deferred expenses 109,216,398 109,216,398 -
Deferred tax assets 360,268,466 - (360,268,466)
Other non-current assets 162,516,190 3,337,516,190 3,175,000,000
Total non-current assets 163,183,467,579 165,998,199,113 2,814,731,534
Total assets 172,623,515,347 176,490,619,987 3,867,104,640
Page 76
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
The Company
31 December 2019 1 January 2020 Adjustments
Liabilities and shareholders’ equity
Current liabilities
Short-term loans 1,220,000,000 1,220,000,000 -
Accounts payable 27,919,341 27,919,341 -
Advance payments received 2,117,568,995 9,476,543 (2,108,092,452)
Contract liabilities - 51,148,261 51,148,261
Employee benefits payable 252,206,075 252,206,075 -
Taxes payable 107,287,957 107,287,957 -
Other payables 5,260,470,974 5,260,470,974 -
Non-current liabilities due within one year 5,490,440,787 5,490,440,787 -
Other current liabilities 1,423,133 4,492,029 3,068,896
Total current liabilities 14,477,317,262 12,423,441,967 (2,053,875,295)
Non-current liabilities
Long-term loans 33,310,701,574 33,310,701,574 -
Deferred income 4,627,393,256 4,627,393,256 -
Deferred tax liabilities - 581,918,794 581,918,794
Other non-current liabilities 33,297,240,830 33,297,240,830 -
Total non-current liabilities 71,235,335,660 71,817,254,454 581,918,794
Total liabilities 85,712,652,922 84,240,696,421 (1,471,956,501)
Shareholders’ equity
Share capital 34,798,398,763 34,798,398,763 -
Other equity instruments 8,013,156,853 8,013,156,853 -
Capital reserve 37,608,039,685 37,608,039,685 -
Other comprehensive income 193,638,576 193,638,576 -
Surplus reserve 1,516,139,709 2,050,045,823 533,906,114
Retained earnings 4,781,488,839 9,586,643,866 4,805,155,027
Total shareholders’ equity 86,910,862,425 92,249,923,566 5,339,061,141
Total liabilities and shareholders’ equity 172,623,515,347 176,490,619,987 3,867,104,640
Page 77
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(b) CAS Bulletin No.13
CAS Bulletin No.13 amends the three elements that constitute a business, provides
specific guidance on the determination of a business, and introduces an optional
concentration test when the acquirer determines whether the acquired operating
activities or asset portfolios not involving enterprises under common control constitute
a business.
In addition, CAS Bulletin No.13 has further clarified that related parties of an entity also
include the joint venture(s) or associate(s) of the other members (including the parent
and subsidiaries) in the same group that includes the entity, and the other joint
venture(s) or associate(s) of the investors who exercise joint control over the entity, etc.
CAS Bulletin No.13 takes effect on 1 January 2020. The Group has adopted the
accounting policy change prospectively. The adoption of CAS Bulletin No.13 does not
have any significant effect on the financial position, financial performance or related
party disclosures of the Group.
(c) Caikuai [2020] No.10
Caikuai [2020] No.10 provides a practical expedient under certain conditions for rent
concessions occurring as a direct consequence of the Covid-19 pandemic. If an entity
elects to apply the practical expedient, the entity does not need to assess whether a
lease modification has occurred or to reassess the lease classification.
Caikuai [2020] No.10 takes effect on 24 June 2020 (the implementation date). The
entity is allowed to adjust the related rent concessions that occurred between 1
January 2020 and the implementation date. The adoption of Caikuai [2020] No.10 does
not have any significant effect on the financial position or financial performance of the
Group.
Page 78
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
IV. Taxation
1 Main types of taxes and corresponding tax rates
Tax type Tax basis Tax rate
Value-added tax (VAT) Output VAT is calculated on product sales and 6%, 9%, 10%,
taxable services revenue. The basis for VAT 13%, 16%
payable is to deduct input VAT from the output
VAT for the period
City maintenance and Based on VAT paid, VAT exemption and offset 7%, 5%
construction tax for the period
Education surcharges 3%, 2%
and local education Based on VAT paid, VAT exemption and offset
surcharges for the period
Corporate income tax Based on taxable profits 15% - 33%
2 Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2019: 15%).
Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatment No.
28, corporate income tax for key advanced and high-tech enterprises supported by the State
is applicable to a preferential tax rate of 15%.
On 2 December 2020, the Company renewed the High-tech Enterprise Certificate No.
GR202011004594, which was entitled jointly by Beijing Municipal Science and Technology
Commission, Beijing Municipal Financial Bureau, Beijing Municipal State Administration of
Taxation and Beijing Municipal Local Administration of Taxation. 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.
Page 79
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
The 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 Encouraged enterprise in
Optoelectronics) 15% Western Regions
Encouraged enterprise in
Chongqing BOE Optoelectronics Co., Ltd. (Chongqing BOE) 15% Western Regions
BOE (Hebei) Mobile Technology Co., Ltd. (BOE Hebei) 15% High-tech Enterprise
BOE Optical Science and technology Co., Ltd. (Optical
Technology) 15% High-tech Enterprise
Beijing BOE CHATANI Electronics Co., Ltd. (Beijing
CHATANI) 15% High-tech Enterprise
Hefei BOE Display Lighting Co., Ltd. (Hefei Display Lighting) 15% High-tech Enterprise
Chongqing BOE Display Lighting Co., Ltd. (Chongqing
Display Lighting) 15% High-tech Enterprise
Hefei BOE Semiconductor Co., Ltd. (Hefei Semiconductor) 15% High-tech Enterprise
Beijing BOE Special Display Technology Co., Ltd. (Special
Display) 15% High-tech Enterprise
Beijing BOE Vacuum Electronics Co., Ltd. (Vacuum
Electronics) 15% High-tech Enterprise
Beijing BOE Vacuum Technology Co., Ltd. (Vacuum
Technology) 15% High-tech Enterprise
Beijing BOE Energy Technology Co., Ltd. (BOE Energy) 15% High-tech Enterprise
Fuzhou BOE Optoelectronics Technology Co., Ltd. (Fuzhou
BOE) 15% High-tech Enterprise
Hefei BOE Vision-Electronic Technology Co., Ltd. (Hefei
Technology) 15% High-tech Enterprise
Mianyang BOE Optoelectronics Technology Co., Ltd. Encouraged enterprise in
(Mianyang BOE) 15% Western Regions
BOE Wisdom IOT Technology Co., Ltd. (Wisdom IOT) 15% High-tech Enterprise
K-Tronics (Suzhou) Technology Co., Ltd.
(Suzhou K-Tronics) 15% High-tech Enterprise
Beijing BOE Sensing Technology Co., Ltd. (Sensing
Technology) 15% High-tech Enterprise
Chongqing BOE Smart Electronic System Co., Ltd. Encouraged enterprise in
(Chongqing 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 CEC Panda FPD Technology Co., Ltd. (Nanjing CEC
Panda) 15% High-tech Enterprise
Chengdu CEC Panda Display Technology Co., Ltd. (Chengdu Encouraged enterprise in
CEC Panda) 15% Western Regions
BOE Regenerative Medical Technology Co., Ltd.
(Regenerative Medical) 15% High-tech Enterprise
Page 80
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
2020 2019
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
Cash on hand
RMB 277,055 352,736
USD 1,493 6.5249 9,741 1,927 6.9762 13,443
HKD 55,494 0.8416 46,706 96,829 0.8958 86,739
JPY 58,474 0.0632 3,698 51,485 0.0641 3,300
KRW 490,445 0.0060 2,941 490,690 0.0060 2,944
Other foreign currencies 60,900 79,176
Sub-total 401,041 538,338
Bank deposits
RMB 39,618,620,160 22,108,949,641
USD 4,051,241,539 6.5249 26,433,945,919 3,793,451,398 6.9762 26,463,875,643
HKD 21,037,675 0.8416 17,706,149 17,880,803 0.8958 16,017,623
JPY 15,628,343,064 0.0632 988,273,902 11,996,438,527 0.0641 768,971,710
KRW 521,128,601 0.0060 3,125,209 700,598,718 0.0060 4,203,592
EUR 136,705,809 8.0250 1,097,064,115 110,515,896 7.8155 863,736,985
Other foreign currencies 46,443,965 43,452,413
Sub-total 68,205,179,419 50,269,207,607
Other monetary funds
RMB 3,949,848,676 3,728,439,717
USD 218,704,451 6.5249 1,427,024,669 421,172,173 6.9762 2,938,181,313
HKD 15 0.8416 13 3,156 0.8958 2,827
JPY 1,769,656,282 0.0632 111,842,277 567,260,199 0.0641 36,353,437
Sub-total 5,488,715,635 6,702,977,294
Total 73,694,296,095 56,972,723,239
Including: Total overseas deposits were equivalent to RMB 7,025,632,935 (2019: RMB
5,864,466,250).
As at 31 December 2020, other monetary funds were pledged by the Group amounting to
RMB 99,133,679 for long-term loans, and USD 152,091,672 were pledged for short-term
loans. The rest of other restricted monetary funds, amounting to RMB 4,396,583,003, were
the deposits in commercial banks as security.
As at 31 December 2019, other monetary funds were pledged by the Group amounting to
USD 342,000,000 for short-term loans, and RMB 151,840,291 and USD 7,500,000 were
pledged for long-term loans. The rest of other restricted monetary funds, amounting to RMB
4,112,379,475, were the deposits in commercial banks as security.
2 Financial assets held for trading
31 December 31 December
Item 2020 2019
Financial assets at fair value through profit or loss
- Structured deposit and wealth management
products 4,367,201,833 5,809,184,994
Page 81
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
3 Bills receivable
(1) Classification of bills receivable
31 December 31 December
Item 2020 2019
Bank acceptance bills 215,994,373 331,145,492
Total 215,994,373 331,145,492
All of the above bills are due within one year.
(2) The pledged bills receivable of the Group at the end of the year
As at 31 December 2020, there is no pledged bills for the Group (2019: Nil).
(3) Outstanding endorsed or discounted bills that have not matured at the end of the year
Amount Amount not
derecognised as derecognised as
at 31 December at 31 December
Item 2020 2020
Bank acceptance bills 4,370,824 60,214,157
Total 4,370,824 60,214,157
For the year ended 31 December 2020, there was no amount transferred to accounts
receivable from bills receivable due to non-performance of the issuers of the Group (2019:
Nil).
4 Accounts receivable
(1) The Group’s accounts receivable by customer type:
31 December 31 December
Item 2020 2019
Amounts due from related parties 38,773,536 1,960,247
Amounts due from other customers 22,988,229,841 18,481,732,857
Sub-total 23,027,003,377 18,483,693,104
Less: Provision for bad and doubtful debts 57,863,022 348,005,298
Total 22,969,140,355 18,135,687,806
Page 82
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) The Group’s accounts receivable by currency type:
2020 2019
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 8,322,396,079 8,041,480,485
USD 2,136,679,897 6.5249 13,941,622,660 1,438,995,152 6.9762 10,038,717,980
JPY 36,855,786 0.0632 2,329,286 25,172,988 0.0641 1,613,589
Other foreign currencies 760,655,352 401,881,050
Sub-total 23,027,003,377 18,483,693,104
Less: Provision for bad and doubtful
debts 57,863,022 348,005,298
Total 22,969,140,355 18,135,687,806
(3) The ageing analysis of accounts receivable is as follows:
31 December 31 December
2020 2019
Within 1 year (inclusive) 22,515,188,628 17,872,807,760
Over 1 year but within 2 years (inclusive) 256,800,012 233,485,656
Over 2 years but within 3 years (inclusive) 172,351,904 68,549,411
Over 3 years 82,662,833 308,850,277
Sub-total 23,027,003,377 18,483,693,104
Less: Provision for bad and doubtful debts 57,863,022 348,005,298
Total 22,969,140,355 18,135,687,806
The ageing is counted starting from the date when accounts receivable are recognised.
(4) Accounts receivable by provisioning method
31 December 2020
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 60,093,972 0% 41,752,588 69% 18,341,384
- Customers with low credit risk 1,036,981,635 5% - 0% 1,036,981,635
Collective assessment
- Customers with moderate credit risk 21,929,927,770 95% 16,110,434 0% 21,913,817,336
Total 23,027,003,377 100% 57,863,022 0% 22,969,140,355
31 December 2019
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 334,464,437 2% 334,419,437 100% 45,000
- Customers with low credit risk 1,398,318,800 7% 38,734 0% 1,398,280,066
Collective assessment
- Customers with moderate credit risk 16,750,909,867 91% 13,547,127 0% 16,737,362,740
Total 18,483,693,104 100% 348,005,298 2% 18,135,687,806
Page 83
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(a) Criteria for collective assessment in 2020 and details:
Customer group Basis
With special matters, litigations or the deterioration
Customers with high credit risk of customers’ credit status
Banks, insurance companies, large state-owned
Customers with low credit risk enterprises and public institutions
Customers with moderate credit
risk Customers not included in Groups above
(b) Assessment of ECLs on accounts receivable in 2020:
At all times the Group measures the impairment loss for accounts receivable at an
amount equal to lifetime ECLs, and the ECLs are based on the number of overdue
days and the expected loss rate. According to the Group’s historical experience,
different loss models are applicable to different customer groups.
(5) Movements of provisions for bad and doubtful debts:
31 December 31 December
2020 2019
Balance at the beginning of the year 348,005,298 325,211,590
Charge during the year 13,048,035 23,510,271
Recoveries during the year (15,387,358) (1,493,365)
Written-off during the year (285,159,459) (4,211,814)
Translation differences (2,643,494) 4,988,616
Balance at the end of the year 57,863,022 348,005,298
(6) Five largest accounts receivable by debtor at the end of the year
The total of five largest accounts receivable of the Group at the end of the year was RMB
7,874,647,846, representing 34% of the total accounts receivable, and no provision was
made for bad and doubtful debts after assessment.
5 Prepayments
(1) The Group’s prepayments by category:
31 December 31 December
2020 2019
Prepayment for inventory 617,801,035 107,673,472
Prepayment for electricity and water 230,580,992 271,295,136
Others 271,213,957 248,017,098
Total 1,119,595,984 626,985,706
Page 84
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) The ageing analysis of prepayments is as follows:
31 December 2020 31 December 2019
Percentage Percentage
Ageing Amount (%) Amount (%)
Within 1 year (inclusive) 1,008,648,097 90% 459,763,565 73%
Over 1 year but within 2 years (inclusive) 18,143,348 2% 148,351,079 24%
Over 2 years but within 3 years (inclusive) 84,733,056 8% 17,719,439 3%
Over 3 years 8,071,483 - 1,151,623 -
Total 1,119,595,984 100% 626,985,706 100%
The ageing is counted starting from the date when prepayments are recognised.
The total of five largest prepayments of the Group at the end of the year is RMB
712,385,803, representing 64% of the total prepayments.
6 Other receivables
31 December 31 December
Note 2020 2019
Interest receivable 2,037,452 215,977,831
Dividends receivable 1,842,137 -
Others (1) 654,235,244 490,193,281
Total 658,114,833 706,171,112
(1) Others
(a) The Group’s other receivable by customer type:
31 December 31 December
Customer type 2020 2019
Amounts due from related parties 14,062,445 603,515
Amounts due from other customers 649,216,811 498,225,877
Sub-total 663,279,256 498,829,392
Less: Provision for bad and doubtful
debts 9,044,012 8,636,111
Total 654,235,244 490,193,281
Page 85
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(b) The Group’s other receivable by currency type:
31 December 2020 31 December 2019
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 577,989,243 457,159,067
USD 7,746,274 6.5249 50,543,663 3,966,373 6.9762 27,670,211
JPY 35,289,875 0.0632 2,230,320 42,000,525 0.0641 2,692,234
Other foreign currencies 32,516,030 11,307,880
Sub-total 663,279,256 498,829,392
Less: Provision for bad and
doubtful debts 9,044,012 8,636,111
Total 654,235,244 490,193,281
(c) The ageing analysis of the Group’s other receivables is as follows:
31 December 31 December
2020 2019
Within 1 year (inclusive) 336,023,652 209,994,098
Over 1 year but within 2 years
(inclusive) 65,883,117 25,165,256
Over 2 years but within 3 years
(inclusive) 18,983,553 14,546,942
Over 3 years 242,388,934 249,123,096
Sub-total 663,279,256 498,829,392
Less: Provision for bad and doubtful
debts 9,044,012 8,636,111
Total 654,235,244 490,193,281
The ageing is counted starting from the date when other receivables are recognised.
(d) Other receivables by provisioning method
31 December 2020
Book value Provision for impairment
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Individual assessment 9,044,012 1% 9,044,012 100% -
Collective assessment 654,235,244 99% - 0% 654,235,244
Total 663,279,256 100% 9,044,012 1% 654,235,244
31 December 2019
Book value Provision for impairment
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Individual assessment 8,636,111 2% 8,636,111 100% -
Collective assessment 490,193,281 98% - - 490,193,281
Total 498,829,392 100% 8,636,111 2% 490,193,281
Page 86
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(e) Movements of provisions for bad and doubtful debts
31 December 31 December
2020 2019
Balance at the beginning of the year 8,636,111 2,933,581
Charge during the year 572,266 6,251,161
Recoveries during the year (60,462) (5,440)
Written-off during the year (103,903) (543,191)
Balance at the end of the year 9,044,012 8,636,111
(f) The Group’s other receivables categorised by nature
31 December 31 December
Nature 2020 2019
VAT refunds and export tax rebate 41,149,236 10,648,330
Amount due from equity transfer 200,000,000 200,000,000
Surety and deposits 171,340,282 178,899,557
Others 250,789,738 109,281,505
Sub-total 663,279,256 498,829,392
Less: Provision for bad and doubtful
debts 9,044,012 8,636,111
Total 654,235,244 490,193,281
(g) Five largest other receivables by debtor at the end of the year
The total of five largest other receivables of the Group at the end of the year was RMB
359,386,051, most of which are amount due from equity transfer and deposits. No
provision is made for bad and doubtful debts after assessment.
Page 87
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
7 Inventories
(1) The Group’s inventories by category:
31 December 2020 1 January 2020/31 December 2019
Provision for
impairment of
inventories/Provision
for impairment of
costs to fulfil a Provision for
contract with a impairment of
Book value customer Carrying amount Book value inventories Carrying amount
Raw materials 8,068,822,655 933,491,391 7,135,331,264 4,663,835,151 288,351,560 4,375,483,591
Work in progress 2,811,789,420 583,885,537 2,227,903,883 1,750,768,537 372,043,796 1,378,724,741
Finished goods 10,074,715,347 1,767,518,826 8,307,196,521 7,671,273,928 1,152,223,633 6,519,050,295
Consumables 162,817,575 - 162,817,575 122,936,135 - 122,936,135
Costs to fulfil a contract with a customer 42,205,247 - 42,205,247 - - -
Total 21,160,350,244 3,284,895,754 17,875,454,490 14,208,813,751 1,812,618,989 12,396,194,762
As at 31 December 2020, there was no amount of capitalised borrowing cost in the Group’s closing balance of inventories (2019: Nil).
As at 31 December 2020, the Group had no inventory used as collateral (2019: Nil).
Page 88
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) An analysis of provision for impairment of inventories of the Group is as follows:
Balance at Balance at
the beginning Charge the end
of the year during the year Decrease during the year of the year
Reversals Write-off
Raw materials 288,351,560 843,256,105 (143,418,140) (54,698,134) 933,491,391
Work in progress 372,043,796 462,312,355 (204,781,587) (45,689,027) 583,885,537
Finished goods 1,152,223,633 2,521,348,291 (969,342,859) (936,710,239) 1,767,518,826
Total 1,812,618,989 3,826,916,751 (1,317,542,586) (1,037,097,400) 3,284,895,754
Page 89
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
8 Contract assets
(1) The Group’s contract assets by customer type:
A contract asset is the Group’s right to consideration in exchange for goods or services that it
has transferred to a customer when that right is conditional on something other than the
passage of time.
(2) Significant changes in the contract assets during the year:
Significant changes in the contract assets of the Group are as follows:
2020
RMB
Balance under previous revenue standard -
Adjustment on initial application of the new revenue standard 27,710,945
Balance at the beginning of the year after adjustment 27,710,945
Transfers from contract assets recognised receivables (24,932,485)
Increase in contract assets resulting from no unconditional right
obtained 47,118,935
Balance at 31 December 2020 49,897,395
(3) Additions, recoveries or reversals of provision for contract asset during the year:
2020
Balance at the beginning of the year -
Additions during the year 207,800
Recoveries during the year -
Written-off during the year -
Balance at the end of the year 207,800
9 Assets held for sale
2020
Non-current assets held for sale
Carrying amount Fair value
Fixed assets 157,662,559 328,796,100
Intangible assets 29,230,086 55,251,000
Total of assets held for sale 186,892,645 384,047,100
Page 90
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
In March 2018, K-Tronics (Suzhou) Technology Co., Ltd., a subsidiary of the Company,
entered into the Recovery Agreement of Land and Properties with Management Committee
of Wujiang Economic and Technological Development Zone to sell properties and other
attachments located in Wujiang Economic and Technological Development Zone. As at 31
December 2020, the carrying amount of the assets held for sale above is RMB 186,892,645.
K-Tronics (Suzhou) Technology Co., Ltd. and the Management Committee of Wujiang
Economic and Technological Development Zone agreed that the recovery price of the
subject matter is RMB 384,047,100, which is determined according to the evaluation report.
The disposal of relevant assets was completed in March 2021.
10 Other current assets
31 December 2020 1 January 2020 31 December 2019
VAT on tax credits 6,447,432,350 5,979,120,265 5,979,120,265
Input tax to be verified or deducted 1,068,285,033 1,984,055,118 1,984,055,118
Prepaid income taxes 23,710,045 45,154,225 45,154,225
Wealth management products 2,611,572 1,162,273,445 1,162,273,445
Costs receivables for recovering
products from a customer 131,986,424 79,264,710 -
Others 174,843,828 126,034,014 126,034,014
Total 7,848,869,252 9,375,901,777 9,296,637,067
11 Long-term equity investments
(1) The Group’s long-term equity investments by category:
2020 2019
Investments in associates 4,722,215,043 3,495,896,246
Sub-total 4,722,215,043 3,495,896,246
Less: Provision for impairment 1,029,044,819 777,858,312
Total 3,693,170,224 2,718,037,934
Page 91
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(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 income Other distribution of foreign currency Balance at
the beginning Increase in Decrease in recognised under comprehensive Other equity cash dividends financial the end
Investee of the year capital capital equity method income movements or profits statements of the year
Beijing Nissin Electronics Precision
Component Co., Ltd. 483,248 - - (219,390) - - - - 263,858
Beijing Nittan Electronic Co., Ltd. 64,808,755 - - 8,588,066 - - (2,000,000) - 71,396,821
Erdos BOE Energy Investment Co., Ltd. 907,348,226 - - (1,185,089) - - - - 906,163,137
Beijing Infi-Hailin Venture Investment Co.,
Ltd. 663,215 - - 503,309 - - - - 1,166,524
Beijing Infi-Hailin Venture Investment (Limited
Partnership) 74,384,952 - (79,000,000) (210,320) 5,702,455 (877,087) - - -
TPV Display Technology (China) Limited 24,545,664 - - 282,600 - - - - 24,828,264
Beijing Xindongneng Investment Fund
(Limited Partnership) 1,944,514,849 - (427,412,416) 410,089,641 130,950,251 - - - 2,058,142,325
Beijing Xindongneng Investment
Management Co., Ltd. 7,410,061 - - 2,511,565 - - (2,000,000) - 7,921,626
Shenzhen Yunyinggu Technology Co., Ltd. 12,715,084 - - (5,368,560) 60,150 14,504,213 - - 21,910,887
Beijing Xloong Technologies Co., Ltd. 22,237,044 - - (2,470,104) - - - - 19,766,940
Beijing Innovation Industry Investment Co.,
Ltd. 100,363,345 100,000,000 - 3,699,909 - - - - 204,063,254
Beijing Electric Control Industry Investment
Co., Ltd. 16,841,609 183,000,000 - 679,994 (319,767) 81,278 - - 200,283,114
Hunan BOE Yiyun Science & Technology
Co., Ltd. - 253,630,000 - - - - - - 253,630,000
New on Technology Co., Ltd. 2,727,606 - - (366,860) - - - 39,292 2,400,038
Cnoga Medical Co., Ltd. 307,506,903 - - (15,779,857) - (6,697,004) - (18,509,718) 266,520,324
Beijing Zhonglianhe Ultra HD Collaborative
Technology Centre Co., Ltd. 2,715,260 - - (288,351) - - - - 2,426,909
Shenzhen Jiangcheng Technology Co., Ltd. 6,630,425 - - (1,278,128) - - - (340,836) 5,011,461
BOE Houji Technology (Beijing) Co., Ltd. - 1,200,000 - (282,367) - - - - 917,633
Tianjin Xianzhilian Investment Centre (Limited
Partnership) - 429,000,000 - 45,207,278 - - - - 474,207,278
BioChain (Beijing) Science & Technology, Inc. - 200,000,000 - 203,487 - - - - 200,203,487
Tianjin Xianzhilian Investment Management
Centre (Limited Partnership) - 900,000 - 91,163 - - - - 991,163
Sub-total 3,495,896,246 1,167,730,000 (506,412,416) 444,407,986 136,393,089 7,011,400 (4,000,000) (18,811,262) 4,722,215,043
Less: Provision for impairment 777,858,312 1,029,044,819
Total 2,718,037,934 3,693,170,224
Page 92
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
As at 31 December 2020, Hefei Xin Jing Yuan Electronic Materials Co., Ltd. suffered
continuous loss and the Group does 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. As at 31 December 2020,
the accumulated unrecognised investment losses were RMB 18,207,308 (2019: RMB
17,817,673).
12 Investments in other equity instruments
31 December 31 December
Item 2020 2019
Listed equity instruments investment
- Beijing Electronic City High Tech Group Co., Ltd. 74,372,840 72,585,692
- Bank of Chongqing Co., Ltd. 102,845,668 105,407,103
- CSC Securities Co., Ltd. - 68,545,920
- New Century Medical Holding Co., Ltd. 36,995,513 53,586,259
Unlisted equity instruments investment
- Teralane Semiconductor Inc. - -
- Zhejiang BOE Display Technology Co., Ltd. 321,256 321,256
- Zhejiang Qiusheng Photoelectric Technology Co.,
Ltd. 248,776 248,776
- National Engineering Laboratory of Digital
Television (Beijing) Co., Ltd. 6,250,000 6,250,000
- Danhua Capital, L. P. 32,624,500 26,160,750
- Danhua Capital II, L.P. 65,249,007 64,529,850
- Kateeva Inc. 77,939,931 83,330,709
- DEPICT INC. - -
- Meta Company - -
- MOOV INC. 26,207,585 28,020,288
- ZGLUE INC. - 10,464,288
- Nanosys INC. 48,936,750 52,321,500
- Ceribell INC. 8,482,363 9,069,052
- Baebies INC. 28,668,368 30,651,239
- Illumina Fund I, L.P. 21,320,235 17,181,203
- ACQIS Technology, Inc. 1,304,980 1,395,242
- KA IMAGING INC. 1,877,651 2,007,520
- Beijing Dongfang Electronic Industry Co., Ltd. - -
Total 533,645,423 632,076,647
Note*: In 2020, the Company disposed of its shares in CSC Securities Co., Ltd. and
derecognised its investments in Teralane Semiconductor Inc., DEPICT INC. and Meta
Company, with gains and or losses accumulated in other comprehensive income
reclassified to retained earnings, totalling RMB 55,855,250. See Note V.41.
Page 93
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(1) Investments in other equity instruments:
Accumulated gains
or losses Reason for
recognised Amount transferred transferring
in other from other from other
Reason for being designated Dividend income comprehensive comprehensive comprehensive
at fair value through other recognised income income to retained income to retained
Item comprehensive income for the year (“-” for losses) earnings earnings
Listed equity instruments investment
With the intention of
establishing or maintaining
a long-term investment for
- Beijing Electronic City High Tech Group Co., Ltd. strategic reasons 1,842,137 (15,787,588) - Not applicable
With the intention of
establishing or maintaining
a long-term investment for
- Bank of Chongqing Co., Ltd. strategic reasons 5,804,204 (17,238,707) - Not applicable
With the intention of
establishing or maintaining
a long-term investment for
- CSC Securities Co., Ltd. strategic reasons - - 1,768,891 Disposals
With the intention of
establishing or maintaining
a long-term investment for
- New Century Medical Holding Co., Ltd. strategic reasons - (103,853,337) - Not applicable
Unlisted equity instruments investment
With the intention of
establishing or maintaining
a long-term investment for
- Teralane Semiconductor Inc. strategic reasons - - 11,868,000 Disposals
With the intention of
establishing or maintaining
a long-term investment for
- Zhejiang BOE Display Technology Co., Ltd. strategic reasons - - - Not applicable
With the intention of
establishing or maintaining
- Zhejiang Qiusheng Photoelectric Technology Co., a long-term investment for
Ltd. strategic reasons 1,410,307 - - Not applicable
With the intention of
establishing or maintaining
- National Engineering Laboratory of Digital a long-term investment for
Television (Beijing) Co., Ltd. strategic reasons - - - Not applicable
With the intention of
establishing or maintaining
a long-term investment for
- Danhua Capital, L. P. strategic reasons 2,544,309 (1,901,875) - Not applicable
With the intention of
establishing or maintaining
a long-term investment for
- Danhua Capital II, L.P. strategic reasons 13,800,800 (2,398,744) - Not applicable
With the intention of
establishing or maintaining
a long-term investment for
- Kateeva Inc. strategic reasons - (4,922,536) - Not applicable
With the intention of
establishing or maintaining
a long-term investment for
- DEPICT INC. strategic reasons - - 13,049,800 Disposals
With the intention of
establishing or maintaining
a long-term investment for
- Meta Company strategic reasons - - 29,168,559 Disposals
With the intention of
establishing or maintaining
a long-term investment for
- MOOV INC. strategic reasons - (1,655,254) - Not applicable
With the intention of
establishing or maintaining
a long-term investment for
- ZGLUE INC. strategic reasons - (10,405,488) - Not applicable
With the intention of
establishing or maintaining
a long-term investment for
- Nanosys INC. strategic reasons - (1,412,250) - Not applicable
With the intention of
establishing or maintaining a
long-term investment for
- Ceribell INC. strategic reasons - (179,920) - Not applicable
With the intention of
establishing or maintaining a
long-term investment for
- Baebies INC. strategic reasons - (455,186) - Not applicable
With the intention of
establishing or maintaining a
long-term investment for
- Illumina Fund I, L.P. strategic reasons 974,930 (831,445) - Not applicable
With the intention of
establishing or maintaining
a long-term investment for
- ACQIS Technology, Inc. strategic reasons - (258,980) - Not applicable
With the intention of
establishing or maintaining
a long-term investment for
- KA IMAGING INC. strategic reasons - (129,869) - Not applicable
With the intention of
establishing or maintaining
a long-term investment for
- Beijing Dongfang Electronic Industry Co., Ltd. strategic reasons - (180,000) - Not applicable
Total 26,376,687 (161,611,179) 55,855,250
Page 94
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
13 Investment properties
Land use rights Buildings Total
Cost
Balance at the beginning of
the year 687,434,677 1,015,816,127 1,703,250,804
Additions during the year - 362,715 362,715
Balance at the end of
the year 687,434,677 1,016,178,842 1,703,613,519
Less: Accumulated depreciation or
amortisation
Balance at the beginning of
the year 140,772,403 321,235,551 462,007,954
Additions during the year 13,878,768 31,558,286 45,437,054
Balance at the end of
the year 154,651,171 352,793,837 507,445,008
Carrying amounts
At the end of the year 532,783,506 663,385,005 1,196,168,511
At the beginning of the year 546,662,274 694,580,576 1,241,242,850
Page 95
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
14 Fixed assets
(1) Analysis of the Group’s fixed assets are as follows:
Item Plant & buildings Equipment Others Total
Cost
Balance at the beginning of the year 39,066,346,904 164,514,903,439 5,055,062,392 208,636,312,735
Additions during the year
- Purchases 106,424,539 251,499,388 1,147,743,024 1,505,666,951
- Transfers from construction in
progress 11,166,278,131 70,039,183,590 714,148,657 81,919,610,378
- Additions due to business
combinations involving entities
not under common control 12,057,991,192 26,025,800,334 147,032,752 38,230,824,278
Disposals or written-offs during
the year (18,533,992) (631,239,330) (123,488,328) (773,261,650)
Translation differences (480,626) (23,703,787) (1,990,617) (26,175,030)
Balance at the end of the year 62,378,026,148 260,176,443,634 6,938,507,880 329,492,977,662
Less: Accumulated depreciation
Balance at the beginning of the year 5,124,055,712 74,655,780,434 2,278,538,681 82,058,374,827
Charge during the year 1,189,328,945 19,439,177,557 1,249,871,496 21,878,377,998
Disposals or written-offs during
the year (9,053,218) (468,884,836) (87,743,009) (565,681,063)
Translation differences (468,222) (2,345,666) (3,312,810) (6,126,698)
Balance at the end of the year 6,303,863,217 93,623,727,489 3,437,354,358 103,364,945,064
Less: Provision for impairment
Balance at the beginning of the year 1,073,381 784,836,694 5,785,895 791,695,970
Charge during the year - 432,986,334 72,215,116 505,201,450
Disposals or written-offs during
the year - (35,236,905) (213,986) (35,450,891)
Balance at the end of the year 1,073,381 1,182,586,123 77,787,025 1,261,446,529
Carrying amounts
At the end of the year 56,073,089,550 165,370,130,022 3,423,366,497 224,866,586,069
At the beginning of the year 33,941,217,811 89,074,286,311 2,770,737,816 125,786,241,938
In 2020, some of the equipment of the Group is idle and there is no clear use plan. The
Group evaluated the recoverable amount of these equipment and made a full provision for
impairment of RMB 505,201,450 based on the evaluation results.
Page 96
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) Fixed assets acquired under finance leases
31 December 2020 31 December 2019
Original book Accumulated Provision for Carrying Original book Accumulated Provision for Carrying
Item value depreciation impairment amount value depreciation impairment amount
Plant & buildings 11,291,665 4,864,383 - 6,427,282 11,291,665 4,610,694 - 6,680,971
Machinery & equipment 3,234,619,899 16,817,720 - 3,217,802,179 111,358,145 10,816,754 - 100,541,391
Total 3,245,911,564 21,682,103 - 3,224,229,461 122,649,810 15,427,448 - 107,222,362
The Group’s fixed assets under finance leases represented a youth apartment under finance
lease for the Company, which is used for the purposes of the staff dormitory; and machinery
and equipment under finance leases.
(3) Fixed assets pending certificates of ownership
As at 31 December 2020, fixed assets pending certificates of ownership totalled RMB
20,426,632,149 (31 December 2019: RMB 8,208,580,798) and certificates of ownership is
still being processed.
15 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
2020 2019
Provision for Carrying Provision for Carrying
Item Book value impairment amount Book value impairment amount
The 6th generation AMOLED project -
Mianyang 10,195,964,634 - 10,195,964,634 34,753,609,842 - 34,753,609,842
The 6th generation LTPS/AMOLED
project - Chengdu 1,609,674,328 - 1,609,674,328 19,490,899,526 - 19,490,899,526
The 6th generation AMOLED project -
Chongqing 11,920,916,965 - 11,920,916,965 1,462,975,936 - 1,462,975,936
The 10.5th generation TFT-LCD project -
Wuhan 10,551,056,190 - 10,551,056,190 24,749,508,699 - 24,749,508,699
Others 8,298,237,835 - 8,298,237,835 6,919,788,524 - 6,919,788,524
Total 42,575,849,952 - 42,575,849,952 87,376,782,527 - 87,376,782,527
Page 97
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) Movements of major construction projects in progress during the year
Accumulated
Balance at Percentage of capitalised Interest Interest rate for
the beginning of Additions Transfers to Transfer to Balance at the actual cost to interest at the capitalised in capitalisation in Sources of
Item Budget the year during the year fixed assets intangible assets end of the year budget (%) end of the year 2020 2020 (%) funding
The 6th generation AMOLED Self-raised funds
project - Mianyang 46,500,000,000 34,753,609,842 5,358,315,087 (29,648,604,321) (267,355,974) 10,195,964,634 89.04% 1,198,529,778 585,397,750 3.42% and borrowings
The 6th generation
LTPS/AMOLED project - Self-raised funds
Chengdu 46,500,000,000 19,490,899,526 4,552,866,676 (22,409,432,296) (24,659,578) 1,609,674,328 91.85% - 367,526,893 1.77% and borrowings
The 6th generation AMOLED Self-raised funds
project - Chongqing 46,500,000,000 1,462,975,936 10,460,532,891 (2,591,862) - 11,920,916,965 26.05% 1,242,708 1,242,708 2.04% and borrowings
The 10.5th generation TFT-LCD Self-raised funds
project - Wuhan 46,000,000,000 24,749,508,699 9,659,161,031 (23,848,967,181) (8,646,359) 10,551,056,190 77.36% 115,596,222 317,760,483 3.81% and borrowings
Page 98
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
16 Intangible assets
(1) Intangible assets
Patent and
proprietary Computer
Land use rights technology software Others Total
Original book value
Balance at the beginning of the
year 4,091,243,669 3,718,555,116 1,042,610,560 1,305,739,329 10,158,148,674
Additions during the year
- Purchases 299,431,151 248,991,522 27,684,102 2,383,123 578,489,898
- Transfers from construction
in progress 62,430,272 - 413,899,417 - 476,329,689
- Non-controlling shareholders’
contribution of capital - - - 285,773,298 285,773,298
- Additions due to business
combinations involving
entities not under common
control 804,621,761 2,978,191,033 56,802,736 - 3,839,615,530
Disposals during the year (5,002,886) (2,768,601) (2,000,735) (42,887,739) (52,659,961)
Balance at the end of the year 5,252,723,967 6,942,969,070 1,538,996,080 1,551,008,011 15,285,697,128
Less: Accumulated amortisation
Balance at the beginning of the
year 303,706,213 1,601,698,094 652,198,832 184,128,706 2,741,731,845
Charge during the year 95,749,974 350,459,099 158,475,804 86,677,458 691,362,335
Disposals during the year (1,400,083) (1,387,324) (2,000,735) (18,535,358) (23,323,500)
Balance at the end of the year 398,056,104 1,950,769,869 808,673,901 252,270,806 3,409,770,680
Carrying amounts
At the end of the year 4,854,667,863 4,992,199,201 730,322,179 1,298,737,205 11,875,926,448
At the beginning of the year 3,787,537,456 2,116,857,022 390,411,728 1,121,610,623 7,416,416,829
(2) Land use rights pending certificates of ownership
As at 31 December 2020, intangible assets pending certificates of ownership totalled RMB
4,694,121 (31 December 2019: RMB 614,842,056).
Page 99
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
17 Goodwill
(1) Changes in goodwill
Balance at Balance at
the beginning of Additions during the end of
Name of investee Note the year the year the year
Book value
Beijing Yinghe Century Co., Ltd. 42,940,434 - 42,940,434
K-Tronics (Suzhou) technology Co.,
Ltd. 8,562,464 - 8,562,464
Beijing BOE Optoelectronics
Technology Co., Ltd. 4,423,876 - 4,423,876
BOE Healthcare Investment &
Management Co., Ltd. 146,460,790 - 146,460,790
SES Imagotag SA Co., Ltd. 706,406,821 - 706,406,821
Chengdu CEC Panda Display
Technology Co., Ltd. (a) - 537,038,971 537,038,971
Nanjing CEC Panda FPD
Technology Co., Ltd. (b) - 155,714,415 155,714,415
Sub-total 908,794,385 692,753,386 1,601,547,771
Provision for impairment
Beijing BOE Optoelectronics
Technology Co., Ltd. (4,423,876) - (4,423,876)
SES Imagotag SA Co., Ltd. (196,766,653) - (196,766,653)
Sub-total (201,190,529) - (201,190,529)
Carrying amount 707,603,856 692,753,386 1,400,357,242
(a) As disclosed in Note VI.1, the Group obtained the control of Chengdu CEC Panda on
17 December 2020. The excess of the combination cost over the Group’s interest in
the fair value of Chengdu CEC Panda’s identifiable assets and liabilities, amounting to
RMB 537,038,971, was recognised as goodwill attributable to Chengdu CEC Panda.
(b) As disclosed in Note VI.1, the Group obtained the control of Nanjing CEC Panda on 24
December 2020. The excess of the combination cost over the Group’s interest in the
fair value of Nanjing CEC Panda’s identifiable assets and liabilities, amounting to RMB
155,714,415, was recognised as goodwill attributable to Nanjing CEC Panda.
(2) Provision for impairment of goodwill
The recoverable amount of Beijing Yinghe Century Co., Ltd. (“Yinghe Century”), Suzhou K-
Tronics, BOE Healthcare Investment & Management Co., Ltd. (“Health Investment”) and
SES Imagotag SA Co., Ltd., Nanjing CEC Panda and Chengdu CEC Panda is determined
based on the present value of expected future cash flows. When predicting the present value
of cash flow, the cash flow in the next 5 years is determined based on the financial budget
approved by the management. The cash flow in the years after the 5-year financial budget
will remain stable. The pre-tax discount rate is determined with reference to comparable
companies and related capital structures.
Page 100
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
18 Long-term deferred expenses
Balance at Balance at
the beginning of Additions during Decrease the end of
the year the year during the year the year
Payment for public facilities construction and
use 82,702,566 - (15,370,224) 67,332,342
Cost of operating lease assets improvement 28,066,255 5,227,728 (19,121,157) 14,172,826
Others 234,655,588 84,706,547 (101,233,203) 218,128,932
Total 345,424,409 89,934,275 (135,724,584) 299,634,100
19 Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets and liabilities
2020 2019
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 122,139,756 27,180,254 131,848,265 29,587,380
Changes in fair value of investments in
other equity instruments 121,789,193 18,268,379 135,444,338 20,316,651
Depreciation of fixed assets 179,801,722 30,341,276 147,798,525 25,764,520
Assessed value added by investing real
estate in subsidiaries 131,003,100 32,750,775 136,556,956 34,139,239
Accumulated losses 424,212,759 132,565,377 361,764,556 111,182,956
Others 64,633,800 14,628,946 214,882,405 40,237,079
Sub-total 1,043,580,330 255,735,007 1,128,295,045 261,227,825
Amount offset (50,693,919) (13,074,064)
Balance after offsetting 205,041,088 248,153,761
Deferred tax liabilities:
Revaluation due to business combinations
involving entities not under common
control (2,395,173,489) (713,559,149) (2,594,143,798) (772,597,483)
Depreciation of fixed assets (4,622,699,062) (721,371,438) (4,178,779,443) (643,417,497)
Long-term equity investments (120,141,687) (18,021,253) (120,141,687) (18,021,253)
Others (142,029,410) (25,343,233) (161,910,113) (30,863,188)
Sub-total (7,280,043,648) (1,478,295,073) (7,054,975,041) (1,464,899,421)
Amount offset 50,693,919 13,074,064
Balance after offsetting (1,427,601,154) (1,451,825,357)
Page 101
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) Details of unrecognised deferred tax assets
2020 2019
Deductible temporary differences 16,442,282,572 9,708,406,691
Deductible tax losses 25,680,094,343 15,354,248,296
Total 42,122,376,915 25,062,654,987
As at 31 December 2020, the deductible temporary differences are mainly provisions for the
subsidiaries’ impairment of assets. 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. The change of unrecognised
deferred tax assets for the year was mainly due to consideration of RMB 8,253,348,675
generated by the acquisition of Nanjing CEC Panda and Chengdu CEC Panda.
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
Year Note 2020 2019
2020 - 58,901,625
2021 78,927,101 80,449,618
2022 416,996,721 435,146,446
2023 518,668,889 605,118,016
2024 1,129,623,213 1,028,882,595
2025 2,987,078,958 494,894,618
2026 848,779,232 227,711,720
2027 128,972,134 133,673,301
2028 5,149,658,963 4,215,818,107
2029 10,575,127,795 7,359,029,807
2030 2,846,283,820 -
Others (a) 999,977,517 714,622,443
Total 25,680,094,343 15,354,248,296
(a) According to the applicable local tax laws, loss of some overseas subsidiaries of the
Group has indefinite carry-over period to deduct the future taxable income.
Page 102
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
20 Other non-current assets
1 January 2020/
31 December 31 December
Note 2020 2019
VAT on tax credits 3,720,414,204 2,482,410,097
Deferred VAT for imported equipment 2,444,720,228 5,027,130,119
Prepayment for fixed assets 1,476,495,591 1,159,943,991
Gains from transfer of exploration right (a) 512,802,600 512,802,600
Prepayments for construction 130,568,100 43,162,425
Others 339,969,296 266,132,327
Total 8,624,970,019 9,491,581,559
(a) On 31 December 2020, gains from transfer of exploration right are amount for the
transfer of exploration paid by the Group through Erdos BOE Energy Investment Co.,
Ltd. to Ministry of Natural Resources of Inner Mongolia.
21 Short-term loans
31 December 2020
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
currency Exchange rate equivalents pledged
Bank loans
- RMB 600,623,333 Collateralised
- RMB 1,853,305,416 Guaranteed
- RMB 2,872,713,095 Credited
Sub-total 5,326,641,844
Foreign currency bank loans
- USD 346,986,252 6.5249 2,264,050,596 Guaranteed
- USD 132,229,237 6.5249 862,782,549 Credited
- JPY 2,310,305,559 0.0632 146,094,482 Credited
Sub-total 3,272,927,627
Total 8,599,569,471
Page 103
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
2019
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
currency Exchange rate equivalents pledged
Bank loans
- RMB 1,706,000,000 Pledged
- RMB 3,570,500,000 Credited
Sub-total 5,276,500,000
Foreign currency bank loans
- USD 75,000,000 6.9762 523,215,000 Pledged
- USD 74,983,524 6.9762 523,100,057 Credited
- JPY 685,049,220 0.0641 43,902,064 Credited
Sub-total 1,090,217,121
Total 6,366,717,121
The interest rate of short-term loans for the Group ranged from 0.50% to 5.90% in 2020
(2019: 0.40% to 4.35%).
As at 31 December 2020, no short-term loan was past due (2019: Nil).
22 Bills payable
31 December 31 December
2020 2019
Bank acceptance bills 1,130,824,139 1,812,309,507
Commercial acceptance bills 100,709,756 216,608,473
Total 1,231,533,895 2,028,917,980
There is no due but unpaid bill payable at the end of the year. The bills above are all due
within one year.
Page 104
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
23 Accounts payable
(1) The Group’s accounts payable by category are as follows:
31 December 31 December
2020 2019
Payables to related parties 108,759,439 77,847,042
Payables to third parties 27,055,412,243 21,105,720,511
Total 27,164,171,682 21,183,567,553
(2) The Group’s accounts payable by currency are as follows:
2020 2019
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
- RMB 18,877,719,728 - 14,353,247,507
- USD 1,065,301,852 6.5249 6,950,988,054 869,901,566 6.9762 6,068,607,305
- JPY 7,851,845,994 0.0632 496,236,667 10,667,212,793 0.0641 683,768,340
- Other foreign currencies 839,227,233 - 77,944,401
Total 27,164,171,682 21,183,567,553
As at 31 December 2020, the Group had no individually significant accounts payable ageing
more than one year.
24 Advance payments received
Item 31 December 2020 1 January 2020 31 December 2019
Advances from related parties 6,018,519 60,990 60,990
Advances from third parties 1180,022,230 123,091,845 1,260,671,795
Total 124,040,749 123,152,835 1,260,732,785
Page 105
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
25 Contract liabilities
Item 31 December 2020 1 January 2020 31 December 2019
Sale of goods 3,440,720,535 1,083,074,827 -
Contract liabilities primarily relate to the Group’s advances from goods purchase and sale
contracts. The Group 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.
Significant changes in the contract liabilities of the Group are as follows:
2020
RMB
Balance under previous revenue standard -
Adjustment on initial application of the new revenue standard 1,083,074,827
Balance at the beginning of the year after adjustment 1,083,074,827
Revenue recognised that was included in the contract liability balance at
the beginning of year (985,358,861)
Increase of contract liabilities due to cash received at the end of the year 3,343,004,569
Balance at 31 December 2020 3,440,720,535
26 Employee benefits payable
(1) Employee benefits payable:
Balance at Balance at
1 January Accrued Decreased 31 December
Note 2020 during the year during the year 2020
Short-term employee benefits (2) 2,317,952,892 14,505,206,045 (13,089,586,475) 3,733,572,462
Post-employment benefits
- defined contribution plans (3) 30,809,715 603,373,645 (612,555,327) 21,628,033
Termination benefits 24,982,847 6,049,760 (27,609,305) 3,423,302
Total 2,373,745,454 15,114,629,450 (13,729,751,107) 3,758,623,797
Page 106
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Balance at Balance at
1 January Accrued Decreased 31 December
Note 2019 during the year during the year 2019
Short-term employee benefits (2) 2,175,807,665 11,808,187,563 (11,666,042,336) 2,317,952,892
Post-employment benefits
- defined contribution plans (3) 34,353,845 892,704,459 (896,248,589) 30,809,715
Termination benefits 14,769,661 21,224,469 (11,011,283) 24,982,847
Total 2,224,931,171 12,722,116,491 (12,573,302,208) 2,373,745,454
(2) Short-term employee benefits
Balance at Balance at
1 January Accrued Decreased 31 December
2020 during the year during the year 2020
Salaries, bonuses, allowances 1,884,102,804 12,377,361,943 (11,076,670,492) 3,184,794,255
Staff welfare - 813,811,158 (813,811,158) -
Social insurance 32,323,849 428,892,729 (428,549,166) 32,667,412
Medical insurance 28,537,074 397,973,661 (396,959,327) 29,551,408
Work-related injury insurance 1,592,189 17,318,426 (17,296,483) 1,614,132
Maternity insurance 2,194,586 13,600,642 (14,293,356) 1,501,872
Housing fund 27,503,744 572,216,189 (572,578,874) 27,141,059
Labour union fee, staff and workers’
education fee 345,146,487 294,743,728 (172,165,296) 467,724,919
Staff bonus and welfare fund 7,282,591 13,270,618 - 20,553,209
Other short-term employee benefits 21,593,417 4,909,680 (25,811,489) 691,608
Total 2,317,952,892 14,505,206,045 (13,089,586,475) 3,733,572,462
Balance at Balance at
1 January Accrued Decreased 31 December
2019 during the year during the year 2019
Salaries, bonuses, allowances 1,817,946,511 9,760,123,875 (9,693,967,582) 1,884,102,804
Staff welfare - 726,894,238 (726,894,238) -
Social insurance 31,310,324 506,406,607 (505,393,082) 32,323,849
Medical insurance 27,150,184 458,152,049 (456,765,159) 28,537,074
Work-related injury insurance 2,048,914 24,547,049 (25,003,774) 1,592,189
Maternity insurance 2,111,226 23,707,509 (23,624,149) 2,194,586
Housing fund 22,081,660 534,751,562 (529,329,478) 27,503,744
Labour union fee, staff and workers’
education fee 274,477,650 258,158,151 (187,489,314) 345,146,487
Staff bonus and welfare fund 7,282,591 - - 7,282,591
Other short-term employee benefits 22,708,929 21,853,130 (22,968,642) 21,593,417
Total 2,175,807,665 11,808,187,563 (11,666,042,336) 2,317,952,892
Page 107
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(3) Post-employment benefits - defined contribution plans
Balance at Balance at
1 January Accrued Decreased 31 December
2020 during the year during the year 2020
Basic pension insurance 26,271,958 547,052,137 (554,271,266) 19,052,829
Unemployment insurance 1,072,077 23,115,986 (23,077,129) 1,110,934
Annuity 3,465,680 33,205,522 (35,206,932) 1,464,270
Total 30,809,715 603,373,645 (612,555,327) 21,628,033
Balance at Balance at
1 January Accrued Decreased 31 December
2019 during the year during the year 2019
Basic pension insurance 29,206,273 835,731,675 (838,665,990) 26,271,958
Unemployment insurance 964,893 30,896,288 (30,789,104) 1,072,077
Annuity 4,182,679 26,076,496 (26,793,495) 3,465,680
Total 34,353,845 892,704,459 (896,248,589) 30,809,715
27 Taxes payable
2020 2019
Value-added tax 40,678,414 104,968,721
Corporate income tax 442,103,385 225,781,442
Individual income tax 60,823,097 46,299,098
City construction tax 239,633,339 159,162,466
Education surcharges and local education
surcharges 171,225,887 114,515,524
Others 123,222,747 80,268,878
Total 1,077,686,869 730,996,129
Page 108
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
28 Other payables
31 December 31 December
Note 2020 2019
Interest payable 1,946,267 721,325,540
Dividends payable 6,451,171 14,568,242
Others (1) 32,859,311,586 23,834,695,828
Total 32,867,709,024 24,570,589,610
(1) Others
(a) The Group’s other payables by category are as follows:
31 December 31 December
Note 2020 2019
Projects and equipment 22,081,009,426 19,265,984,958
Fund transaction (Note) 3,044,729,475 25,236,605
Equity acquisition VI. 1 2,236,488,561 338,596
Deferred VAT for imported
equipment 1,920,558,529 2,277,269,457
Repurchase obligation of restricted
shares V. 40 875,333,536 -
Accrued water and electricity charges
and freight 711,995,694 475,398,269
Security deposits 576,740,323 565,971,653
External agency fee 95,378,987 95,525,591
Others 1,317,077,055 1,128,970,699
Total 32,859,311,586 23,834,695,828
The Group’s significant other payables aged over one year are payables of projects
and equipment.
Note: The other payables by the Group to CEC Panda as at 31 December 2020 are
amounts and interests due to original controlling shareholders of Nanjing CEC Panda
and Chengdu CEC Panda acquired this year, with interest rates of 2.175% and 0%.
Page 109
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(b) The Group’s other payables by currency are as follows:
31 December 2020 31 December 2019
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 25,021,226,671 14,900,017,469
USD 834,593,184 6.5249 5,445,637,067 939,445,424 6.9762 6,553,759,167
JPY 36,887,427,437 0.0632 2,331,285,414 36,516,333,058 0.0641 2,340,696,949
Other foreign currencies 61,162,434 40,222,243
Total 32,859,311,586 23,834,695,828
29 Non-current liabilities due within one year
As at 31 December, the non-current liabilities due within one year for the Group were long-
term loans and long-term payables due within one year.
31 December 2020
Credited
RMB/ /collateralised
Amount in original Guaranteed
Note currency Exchange rate RMB equivalents /pledged
Bank loans
- RMB 28,108,784 Pledged
- RMB 5,654,665,718 Collateralised
- RMB 1,562,733 Guaranteed
- RMB 8,650,207,807 Credited
- USD 1,397,735,847 6.5249 9,120,086,628 Collateralised
- EUR 415,746 8.0250 3,336,362 Credited
- EUR 7,920,370 8.0250 63,560,969 Pledged
Sub-total V. 31 23,521,529,001
Long-term payables V. 33 979,021,120
Total 24,500,550,121
Page 110
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
31 December 2019
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 3,548,760,000 Collateralised
- RMB 5,660,431,884 Credited
- RMB 27,187,500 Pledged
- USD 1,192,400,000 6.9762 8,318,420,880 Collateralised
- EUR 144,950,000 7.8155 1,132,856,725 Pledged
- EUR 415,746 7.8155 3,249,263 Credited
Sub-total V. 31 18,690,906,252
Long-term payables V. 33 158,374,767
Total 18,849,281,019
The interest rate of RMB long-term loans due within one year for the Group ranged from 0%
to 5.88% in 2020 (2019: from 0% to 5.64%).
30 Other current liabilities
Item 31 December 2020 1 January 2020 31 December 2019
Warranty provisions 1,615,534,790 940,668,393 940,668,393
Refund liability 144,834,876 79,264,710 -
Pending output VAT 278,791,002 64,391,101 9,885,978
Others 155,556,184 63,184,144 63,184,144
Total 2,194,716,852 1,147,508,348 1,013,738,515
The other current liabilities of the Group were warranty provision accrued. The warranty
provision mainly relates to 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.
Page 111
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
31 Long-term loans
31 December 2020
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 564,470,036 Pledged
- RMB 58,205,922,053 Collateralised
- RMB 3,245,238,880 Guaranteed
- RMB 48,593,938,457 Credited
- USD 6,647,918,240 6.5249 43,377,001,724 Collateralised
- EUR 67,323,142 8.0250 540,268,215 Pledged
- EUR 180,368,445 8.0250 1,447,456,771 Credited
Less: Long-term loans due
within one year V. 29 23,521,529,001
Total 132,452,767,135
31 December 2019
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 590,727,344 Pledged
- RMB 45,290,913,200 Collateralised
- RMB 760,000,000 Guaranteed
- RMB 38,988,142,361 Credited
- USD 5,603,270,000 6.9762 39,089,532,174 Collateralised
- EUR 3,721,275 7.8155 29,083,625 Credited
- EUR 214,075,000 7.8155 1,673,103,163 Pledged
Less: Long-term loans due
within one year V. 29 18,690,906,252
Total 107,730,595,615
The interest rate of RMB long-term loans for the Group ranged from 0% to 5.90% in 2020
(2019: from 0% to 5.64%). The increase in the upper limit of the interest rate of RMB long-
term loans in 2020 is mainly due to the higher interest rate of Nanjing CEC Panda, which is
newly included in the scope of consolidated financial statements.
32 Debentures payable
(1) Debentures payable
31 December 31 December
Item 2020 2019
Debentures payable 398,971,739 387,878,384
Less: Debentures payable due within one year - -
Total 398,971,739 387,878,384
Page 112
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) The movements of debentures payable:
Balance at Increase Amortisation Repayment Balance at
Maturity Issuance the beginning during the Interest at of discounts during the Translation the end
Debenture Face value Issuance date period amount of the year year face value or premium period differences of the year
EUR EUR
Euro PP 10,000,000 2016.12.29 7 years 10,000,000 77,674,350 - 2,764,825 108,611 (2,764,825) 2,083,842 79,866,803
EUR EUR
Euro PP 30,000,000 2017.03.29 6 years 30,000,000 233,145,481 - 8,294,475 401,058 (8,294,475) 6,256,001 239,802,540
EUR EUR
Euro PP 10,000,000 2019.07.22 6 years 10,000,000 77,058,553 - 3,594,273 175,447 (3,594,273) 2,068,396 79,302,396
Total 387,878,384 - 14,653,573 685,116 (14,653,573) 10,408,239 398,971,739
SES Imagotag SA Co., Ltd. issued two private placement bonds with a total face value of Euro 40 million to institutional investors on 29
December 2016 and 29 March 2017. The coupon rate of the bonds is 3.50% and the maturity date is 29 December 2023. Interest payments are
made annually and the principle amount will be paid when the bonds become due.
SES Imagotag SA Co., Ltd. issued a private placement bond with a total face value of Euro 10 million to institutional investors on 22 July 2019.
The coupon rate of the bond is 4.55% and the maturity date is 22 July 2025. Interest payments are made annually, and the principle amount will
be paid when the bond becomes due.
Page 113
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
33 Long-term payables
31 December 31 December
Item Note 2020 2019
Obligations under finance leases (1) 3,093,196,803 1,142,895,591
Less: Obligations under finance leases due
within one year 979,021,120 158,374,767
Total 2,114,175,683 984,520,824
(1) Details of obligations under finance leases included in long-term payables
As at 31 December, the total future minimum lease payments under finance leases were as
follows:
31 December 31 December
Minimum lease payments 2020 2019
Within 1 year (inclusive) 1,175,045,108 240,790,871
After 1 year but within 2 years (inclusive) 1,061,063,290 211,473,668
After 2 years but within 3 years (inclusive) 559,312,651 198,335,280
After 3 years 840,557,857 866,709,073
Sub-total 3,635,978,906 1,517,308,892
Less: Unrecognised finance charges 542,782,103 374,413,301
Total 3,093,196,803 1,142,895,591
The Group leased back some of its sold machinery, equipment and constructions in
progress. The sales of the assets are related to the leases, and the Group basically can
ensure to buy back the asset after lease term. Therefore, the Group adopts the accounting
treatment of collateral loans.
Page 114
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
34 Provisions
31 December 31 December
Name of investee 2020 2019
Pending implementation of the agreement - 16,457,010
In 2009, the Group ceased producing several products and stopped fulfilling the purchase
contract related to production. Due to the indemnity incurred accordingly, the Group accrued
provisions according to reasonable estimation of loss.
35 Deferred income
Balance at Amounts Balance at
the beginning of Additions recognised in the end of
Item the year during the year other income Other changes the year
Related to assets 1,959,522,274 1,420,632,945 (310,532,631) (222,882,969) 2,846,739,619
Related to income 244,878,292 1,628,055,408 (471,110,335) (2,331,516) 1,399,491,849
Total 2,204,400,566 3,048,688,353 (781,642,966) (225,214,485) 4,246,231,468
36 Other non-current liabilities
31 December 31 December
Item Note 2020 2019
Contribution of non-controlling interests
with redemption provisions (1) 3,710,474,960 3,699,127,228
Deferred VAT for imported equipment 1,472,958,998 4,409,269,015
Others 76,567,485 92,146,169
Total 5,260,001,443 8,200,542,412
(1) Contribution of non-controlling interests with redemption provisions
The contribution of non-controlling interests with redemption provisions is mainly due to the
redemption obligation of the Company to the non-controlling interests of Fuzhou BOE and
BOE Smart Retail (Hong Kong) Co., Ltd. The Company recognises the above non-controlling
interests contribution as a financial liability which is subsequently measured at the cost of
amortisation. The carrying amount as at 31 December 2020 is RMB 3,710,474,960.
Page 115
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
37 Share capital
Balance at Balance at
the beginning of the end of
the year the year
Total shares 34,798,398,763 34,798,398,763
38 Other equity instruments
(1) Financial instruments (including perpetual bonds) that remain outstanding at the end of the
year are set out as follows:
Maturity
date or
Issuance Accounting Issuance renewal Conditions for Conversion
Outstanding financial instruments date classification Interest rate price Quantity Amount status conversion status
29 October Equity RMB
19BOEY1 2019 instrument 4.0% 100/bond 80 million RMB 8 billion 3+N years Not Applicable Not Applicable
28 February Equity RMB
20BOEY1 2020 instrument 3.6% 100/bond 20 million RMB 2 billion 3+N years Not Applicable Not Applicable
19 March Equity RMB
20BOEY2 2020 instrument 3.5% 100/bond 20 million RMB 2 billion 3+N years Not Applicable Not Applicable
27 April Equity RMB
20BOEY3 2020 instrument 3.5% 100/bond 20 million RMB 2 billion 3+N years Not Applicable Not Applicable
Total 140 million RMB 14 billion
(2) Major terms
On 29 October 2019, with the approval document No. 1801 [2019] of the China Securities
Regulatory Commission (“CSRC”), the Company successfully issued a renewable corporate
bond to qualified investors. The full name of the bond was Renewable Corporate Bond
Publicly Issued by BOE Technology Group Co., Ltd. (to qualified investors) in 2019 (the First
Phase), which referred to as 19BOEY1 (“2019 bond”); on 28 February 2020, 19 March 2020
and 27 April 2020, the Company issued renewable corporate bonds to qualified investors.
The full name of these bonds was Renewable Corporate Bond Publicly Issued by BOE
Technology Group Co., Ltd. (to qualified investors) in 2020, which referred to as 20BOEY1、
20BOEY2、20BOEY3 respectively (“2020 bond”).
Both 2019 bond and 2020 bond have a base term of 3 years and take every three interest-
bearing years as a period. 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 2019 bond and 2020 bond at the end of the period. The nominal interest
rate of the 2019 bond and 2020 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 2019 bond
and 2020 bond have an issuer’s right to defer the payment of interest. Unless a mandatory
interest payment event occurs (including distributions to ordinary shareholders and decrease
of 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.
Page 116
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
The actual issuance of the 2019 bond and 2020 bond amounted to RMB 14,000,000,000 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 issue to other
equity instruments after deducting underwriting fees and other transaction costs.
(3) Movement of the financial instruments (including and perpetual bonds) that remain
outstanding at the end of the year:
At the beginning of the year Additions during the year Accumulated interest At the end of the year
Carrying Carrying Charge for Paid during
Outstanding financial instruments Quantity amount Quantity amount the year the year Quantity Carrying amount
19BOEY1 80,000,000 8,013,156,853 - - 320,876,712 (320,000,000) 80,000,000 8,014,033,565
20BOEY1 - - 20,000,000 1,989,179,245 61,431,233 - 20,000,000 2,050,610,478
20BOEY2 - - 20,000,000 1,989,320,755 55,864,110 - 20,000,000 2,045,184,865
20BOEY3 - - 20,000,000 1,989,415,094 47,753,425 - 20,000,000 2,037,168,519
Total 80,000,000 8,013,156,853 60,000,000 5,967,915,094 485,925,480 (320,000,000) 140,000,000 14,146,997,427
(4) Relevant information of amounts attributable to holders of equity instruments
31 December 31 December
2020 2019
Attributable to shareholders of the Company 103,276,766,835 95,058,129,055
- Equity attributable to ordinary shareholders
of the Company 89,129,769,408 87,044,972,202
- Equity attributable to holders of the Company’s
other equity instruments 14,146,997,427 8,013,156,853
Equity attributable to non-controlling shareholders 70,120,967,879 45,999,567,919
- Equity attributable to non-controlling ordinary
shareholders 70,120,967,879 45,999,567,919
- Equity attributable to non-controlling
shareholders of other equity instruments - -
(5) Accrued interest on holders of other equity instruments
In 2020, as the above-mentioned issued renewable corporate bonds are cumulative other
equity instruments, the Company accrued interest of RMB 485,925,480 on renewable
corporate bonds from undistributed profits and paid interest of RMB 320,000,000 on
renewable corporate bonds.
Page 117
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
39 Capital reserve
Other capital
Item Note Share premiums reserves Total
Balance at the beginning of the year 37,546,517,053 806,725,311 38,353,242,364
Add: Change in shareholding ratio of
subsidiaries - 76,020,559 76,020,559
Equity-settled share-based
payments XI - (946,466,251) (946,466,251)
Other movements in equity of
associates V. 11 - 7,011,400 7,011,400
Less: Disposal of subsidiaries to
equity method accounting - 46,470,087 46,470,087
Others - 7,682,051 7,682,051
Balance at the end of the year 37,546,517,053 (110,861,119) 37,435,655,934
40 Treasury shares
At the beginning Additions Reductions At the end
Item of the year during the year during the year of the year
Treasury shares - 1,998,774,694 (962,476,186) 1,036,298,508
Total - 1,998,774,694 (962,476,186) 1,036,298,508
According to the Proposal of Repurchase of Certain Public Shares by the Company
deliberated and adopted in the fifteenth meeting of the ninth session of the Board of Directors
meeting held on 27 August 2020, the Company completed repurchase of shares through
centralised price bidding before 3 September 2020. The Company repurchased 349,999,933
A shares in total by paying total consideration of RMB 1,998,774,694.
The repurchased shares are placed with the designated securities account for the use of
Company’s repurchase, during which the Company is not entitled to have voting rights at the
shareholders’ general meeting, or rights of profit appropriations, increasing share capital by
transfer of reserves, allotment of share and pledge etc. The repurchased shares will be used
for implementing incentive plan. For shares failed to be used in this way within 36 months
after being repurchased, the shares will be cancelled by performing related procedures.
As disclosed in Note XI, there is a vesting period for the restricted share incentive plans
granted by the Group in 2020. If the incentive object resigns during the vesting period, the
Company will repurchase the unlocked restricted shares at the exercise price. Therefore, the
Company recognized a total of RMB 875,333,536 in restricted share subscription funds from
restricted share incentive objects as other payables—the Repurchased obligation of
restricted shares (Note V. 28 (1)) and Treasury Shares. The difference of RMB 962,476,186
between the amount paid by the Company to repurchase the above-mentioned Treasury
Shares from the public market and the repurchase obligation is transferred to the Capital
reserve-Other capital reserve.
Page 118
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
41 Other comprehensive income
Movements during the year
Balance at the end Less: Transfer of Balance at the end
of previous year Net-of-tax amount other of the year
attributable to attributable to Net-of-tax amount comprehensive attributable to
shareholders of the Less: Income tax shareholders of the attributable to non- income to retained shareholders of the
Item Company Before-tax amount expenses Company controlling interests earnings Company
Items that will not be reclassified to profit or
loss 140,076,335 118,453,992 2,048,272 116,405,720 - (195,070,158) 61,411,897
Including: Other comprehensive income
recognised under equity method 308,546,648 136,381,254 - 136,381,254 - (250,925,408) 194,002,494
Changes in fair value of investments in other
equity instruments (168,470,313) (17,927,262) 2,048,272 (19,975,534) - 55,855,250 (132,590,597)
Items that may be reclassified to profit or loss (144,642,974) 49,539,936 - 61,033,005 (11,493,069) - (83,609,969)
Including: Other comprehensive income
recognised under equity method - 11,835 - 11,835 - - 11,835
Translation differences arising from translation
of foreign currency financial statements (144,642,974) 49,528,101 - 61,021,170 (11,493,069) - (83,621,804)
Total (4,566,639) 167,993,928 2,048,272 177,438,725 (11,493,069) (195,070,158) (22,198,072)
Page 119
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
42 Surplus reserve
Balance at
Balance at Add: Changes in the beginning of Balance at
the beginning of accounting the year after Additions Other changes the end of
Item the year policies adjustment during the year during the year the year
Statutory surplus reserve 1,226,468,400 533,906,114 1,760,374,514 373,919,158 20,451,688 2,154,745,360
Discretionary surplus reserve 289,671,309 289,671,309 - - 289,671,309
Total 1,516,139,709 533,906,114 2,050,045,823 373,919,158 20,451,688 2,444,416,669
43 Retained earnings
Item Note 2020 2019
Retained earnings at the beginning of the
year (before adjustment) 12,381,758,005 N/A
Add: Changes in accounting policies (533,906,114) N/A
Retained earnings at the beginning of the
year (after adjustment) 11,847,851,891 11,977,119,533
Add: Net profits for the year attributable to
shareholders of the Company 5,035,627,952 1,918,643,871
Less: Appropriation for statutory surplus
reserve 373,919,158 368,556,446
Interest on holders of other equity
instruments V. 38 485,925,480 56,109,589
Dividends to ordinary shares 695,967,975 1,043,951,963
Transfer of other comprehensive
income to retained earnings (a) (171,164,417) 45,387,401
Effect of accounting for disposal of
subsidiaries to equity method (3,454,053) -
Others (7,508,922) -
Retained earnings at the end of the year 15,509,794,622 12,381,758,005
According to the Annual Shareholders’ Meeting for 2019 held on 29 May 2020, the Company
distributed cash dividends to all shareholders on 3 July 2020, with RMB 0.2 every 10 shares
(2019: RMB 0.3) and a total dividend of RMB 695,967,975 (2019: RMB 1,043,951,963)
distributed.
As at 31 December 2020, the consolidated retained earnings attributable to the Company
included appropriation to surplus reserves made by the Company’s subsidiaries amounting
to RMB 2,958,648,210 (2019: RMB 2,197,635,471).
(a) The amounts transferred from other comprehensive income to retained earnings in
2020 includes RMB 225,832,867 of associates’ gains from disposal of other equity
instrument investments included in retained earnings and RMB 54,668,450 of the
Group losses from disposals of other equity instrument investments included in
retained earnings.
Page 120
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
44 Operating income and operating costs
2020 2019
Item Income Cost Income Cost
Principal activities 131,839,051,171 107,017,283,266 112,869,129,027 96,547,463,221
Other operating activities 3,713,518,558 1,805,839,490 3,190,461,137 1,898,806,075
Total 135,552,569,729 108,823,122,756 116,059,590,164 98,446,269,296
Including: Income related to the new revenue
standard 134,406,942,755 108,402,500,151 Not applicable Not applicable
Revenue related to the lease
standard 1,145,626,974 420,622,605 Not applicable Not applicable
Details of operating income:
2019
Operating income from principal activities
- Sale of goods 112,869,129,027
Other operating income
- Sales of raw materials 1,049,219,352
- Rental income of investment properties 1,164,355,875
- Others 976,885,910
Total 116,059,590,164
Information on income of principal activities has been included in Note XIV.
45 Taxes and surcharges
2020 2019
Property tax 401,351,553 352,251,436
City maintenance and construction tax 266,845,054 190,993,833
Education surcharges and local education
surcharges 192,450,398 136,854,543
Stamp duty 136,589,158 108,178,185
Land use tax 45,748,963 43,676,217
Others 35,914,959 29,146,391
Total 1,078,900,085 861,100,605
Page 121
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
46 Selling and distribution expenses
2020 2019
Warranty provisions 1,616,634,833 927,748,774
Staff costs 965,992,069 698,586,373
Logistics 73,934,798 589,504,713
Others 481,157,301 702,025,520
Total 3,137,719,001 2,917,865,380
47 General and administrative expenses
2020 2019
Staff cost 2,869,736,815 2,456,007,113
Repair expense 1,658,988,344 1,221,489,432
Depreciation and amortisation 726,690,746 586,695,417
Others 948,184,616 950,756,065
Total 6,203,600,521 5,214,948,027
48 Research and development expenses
2020 2019
Staff cost 3,621,724,397 2,764,095,983
Material expenses 1,395,642,077 1,517,000,923
Depreciation and amortisation 1,501,402,837 1,234,104,120
Others 1,103,828,614 1,184,772,214
Total 7,622,597,925 6,699,973,240
49 Financial expenses
2020 2019
Interest expenses from loans 4,807,347,590 3,651,979,758
Less: Borrowing costs capitalised 1,309,649,881 1,126,843,549
Interest income from bank deposits (873,376,712) (840,190,118)
Net exchange (gains)/losses (73,110,352) 226,570,667
Other financial expenses 98,943,327 82,633,500
Total 2,650,153,972 1,994,150,258
The capitalization rate used by the Group to determine the capitalization amount of
borrowing costs was1.77% - 3.81% (2019: 3.73% - 4.84%) for the year.
Page 122
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
50 Other income
2020 2019
Government grants related to assets 310,532,631 316,744,767
Government grants related to income 2,016,628,502 2,287,022,704
Others 10,544,684 1,891,240
Total 2,337,705,817 2,605,658,711
The amount of government subsidies received by the Group in 2020 and directly included in
other income was RMB 1,545,518,167.
51 Investment income
Note 2020 2019
Income from long-term equity investments
accounted for using the equity method V. 11 444,407,986 200,020,686
Investment income from disposal of long-
term equity investments 280,374,469 48,846,682
Dividend income from investments in other
equity instruments V. 12 26,376,687 9,984,205
Including: Dividend income from
investments in other equity
instruments derecognised
during the year - 471,354
Dividend income from investments in other
equity instruments held at the balance
sheet date 26,376,687 9,512,851
Investment income from disposal of
financial assets held for trading 18,157,931 46,195,167
Interest income from debt investments 22,213,061 19,869,375
Investment income from disposal of debt
investments 10,391,153 17,704,576
Gain from remeasurement of remaining
equity interests to fair value upon the loss
of control VI. 2 95,969,822 -
Total 897,891,109 342,620,691
Page 123
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
52 Gains from changes in fair value
Item 2020 2019
Financial assets held for trading 31,936,339 66,473,077
Gains from changes in fair value of derivative
financial liabilities - 71,000,000
Total 31,936,339 137,473,077
53 Credit losses
Item 2020 2019
Accounts receivable (2,339,323) 22,016,906
Other receivables 511,804 6,245,721
Total (1,827,519) 28,262,627
54 Impairment losses
2020 2019
Impairment losses of inventories 2,509,374,165 1,986,350,231
Impairment losses of fixed assets 505,201,450 160,345,034
Impairment losses of long-term equity investments 265,641,984 240,721,340
Impairment losses of goodwill - 196,766,653
Impairment losses of contract assets 207,800 -
Total 3,280,425,399 2,584,183,258
55 Gains from asset disposals
Amount recognised
in extraordinary
gain and loss in
Item 2020 2019 2020
Gains from disposal of fixed assets 11,403,591 79,029 11,403,591
Gains from disposal of intangible assets 7,658,255 - 7,658,255
Total 19,061,846 79,029 19,061,846
Page 124
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
56 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 2020 2019 2020
Government grants 4,946,559 36,867,390 4,946,559
Others 115,557,069 171,562,808 115,557,069
Total 120,503,628 208,430,198 120,503,628
Government grants recognised in profit or loss for the current period
Item 2020 2019
Policy incentives and others 4,946,559 36,867,390
(2) Non-operating expenses
Amount recognised
in extraordinary
gain and loss in
2020 2019 2020
Donations provided 13,324,588 9,985,603 13,324,588
Losses from scrapping of non-current assets 22,698,482 31,048,028 22,698,482
Others 36,116,596 62,315,447 36,116,596
Total 72,139,666 103,349,078 72,139,666
Page 125
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
57 Income tax expenses
Note 2020 2019
Current tax expense for the period based
on tax law and regulations 1,547,783,003 956,184,825
Changes in deferred tax assets/liabilities (1) 16,783,243 23,806,679
Total 1,564,566,246 979,991,504
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
2020 2019
Origination and reversal of temporary differences 16,783,243 23,806,679
(2) Reconciliation between income tax expenses and accounting profit:
2020 2019
Profit before taxation 6,092,836,662 503,750,101
Expected income tax expense at tax rate of 15% 913,925,499 75,562,515
Add: Effect of different tax rates applied by
subsidiaries (26,770,857) 7,640,088
Effect of non-deductible costs, expense and
losses 89,724,266 58,923,605
Effect of weighted pre-tax deduction and tax
preference (643,677,261) (590,392,743)
Utilisation of prior year tax losses (95,546,933) (20,942,179)
Effect of deductible losses of deferred tax
assets not recognised 515,687,922 1,358,934,997
Effect of deductible temporary differences of
deferred tax assets not recognised 811,223,610 106,073,260
Effect of tax rates changes on deferred tax - (15,808,039)
Income tax expenses 1,564,566,246 979,991,504
Page 126
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
According to Notice on Increasing the Pre-tax Deduction Ratio of Research and
Development Expenses (Caishui [2018] No. 99) issued by the Ministry of Finance, the State
Administration of Taxation and the Ministry of Science and Technology Finance and
Taxation, in order to further encourage enterprises to increase investment in research and
development, support scientific and technological innovation, the research and development
expenses incurred from the research and development activities carried out by enterprises,
which do not form intangible assets and are included in the current profits and losses, can be
deducted in accordance with provisions, with 75% of the actual amount is deducted before
tax additionally during the period from 1 January 2018 to 31 December 2020.
58 Basic earnings per share and diluted earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable to
ordinary shareholders of the Company by the weighted average number of ordinary shares
outstanding. The Group does not have any potential dilutive ordinary shares for the listed
years.
2020 2019
Net profit attributable to the Company’s
shareholders 5,035,627,952 1,918,643,871
Less: Current interest of other equity instruments 485,925,480 56,109,589
Consolidated net profit attributable to ordinary
shareholders of the Company 4,549,702,472 1,862,534,282
Weighted average number of ordinary shares
outstanding (share) 34,684,107,122 34,798,398,763
Basic earnings per share (RMB/share) 0.13 0.05
Weighted average number of ordinary shares is calculated as follows:
2020 2019
Issued ordinary shares at the beginning of the year 34,798,398,763 34,798,398,763
Less: Weighted average number of ordinary shares
for the period 114,291,641 -
Weighted average number of ordinary shares at the
end of the year 34,684,107,122 34,798,398,763
Page 127
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
59 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
2020 2019
(a) Reconciliation of net profit to cash flows from
operating activities:
Net profits/(losses) 4,528,270,416 (476,241,403)
Add: Credit losses (1,827,519) 28,262,627
Impairment losses 3,280,425,399 2,584,183,258
Depreciation of fixed assets and
investment properties 21,680,555,167 18,357,209,097
Amortisation of intangible assets 758,817,609 505,881,147
Amortisation of long-term deferred
expenses 123,440,347 123,883,157
Gains from disposal of fixed assets,
intangible assets, and other long-term
assets (19,786,363) (79,029)
Losses from scrapping of fixed assets
and intangible assets 22,698,482 28,585,575
Financial expenses 3,835,299,300 2,849,179,043
Gains from changes in fair value (31,936,339) (137,473,077)
Investment income (897,891,109) (342,620,691)
Share-based payments 15,779,427 -
Change in deferred income 2,101,629,423 276,854,045
Change in deferred tax assets 43,112,673 (9,992,167)
Change in deferred tax liabilities (26,272,475) 33,798,846
Increase in inventories (6,687,901,867) (2,397,146,821)
Decrease in operating payables 2,870,511,767 1,113,154,602
Increase in operating payables 7,656,849,120 3,545,640,985
Net cash flows from operating activities 39,251,773,458 26,083,079,194
(b) Net changes in cash and cash equivalents:
2020 2019
Cash and cash equivalents at the end of the
year 68,064,736,371 50,270,321,573
Less: Cash and cash equivalents at the
beginning of the year 50,270,321,573 43,350,696,520
Net increase in cash and cash equivalents 17,794,414,798 6,919,625,053
Page 128
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) Information on acquisition of subsidiaries during the year
Information on acquisition of subsidiaries:
2020 2019
Cash and cash equivalents paid during the year for
acquiring subsidiaries during the year 6,374,732,839 -
Less: Cash and cash equivalents held by
subsidiaries 5,433,764,430 33,640,033
Net cash paid for acquisition of subsidiaries 940,968,409 (33,640,033)
(3) Details of cash and cash equivalents
2020 2019
Cash on hand 401,041 538,338
Bank deposits available on demand 68,063,719,329 50,269,207,607
Other monetary funds available on demand 616,001 575,628
Closing balance of cash and cash equivalents 68,064,736,371 50,270,321,573
Note: The cash and cash equivalents disclosed above do not include the interest accrued
on bank deposits at the end of the period and the use of other currency funds subject
to restrictions.
Page 129
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
60 Assets with restrictive ownership title or right of use
Balance at Balance at
the beginning of Additions Decreases the end of
Item the year during the year during the year the year Reason for restriction
Pledged as collateral
Cash at bank and on hand 6,702,401,666 5,550,402,351 (6,764,704,383) 5,488,099,634 and margin deposit
Discounted with
recourse, endorsed
with resource and
pledged for drawing
Bills receivable 57,102,517 95,039,227 (91,927,587) 60,214,157 bills payable
Pledged for drawing
Financial assets held for trading 24,000,000 65,254,917 (89,254,917) - bills payable
Factored and
discounted with
Accounts receivable - 44,682,510 - 44,682,510 recourse
Mortgaged as
Investment properties 43,396,671 21,673,570 (22,111,153) 42,959,088 collateral
Mortgaged as
collateral, leaseback
Fixed assets 93,007,772,827 93,804,470,252 (17,839,310,716) 168,972,932,363 assets
Mortgaged as
Construction in progress 57,083,458,981 24,302,781,621 (60,249,078,522) 21,137,162,080 collateral
Mortgaged as
Intangible assets 1,534,385,843 278,789,101 (44,134,527) 1,769,040,417 collateral
Total 158,452,518,505 124,163,093,549 (85,100,521,805) 197,515,090,249
61 Details of provision for impairment of assets
Reductions during the year
Balance at Balance at
the beginning of Additions Translation the end of
Item Note the year during the year Reversal Transferred out differences the year
RMB RMB RMB RMB RMB RMB
Provision for impairment V.4, 6 356,641,409 13,620,301 (15,447,820) (285,263,362) (2,643,494) 66,907,034
Provision for impairment of
inventories V. 7 1,812,618,989 3,826,916,751 (1,317,542,586) (1,031,978,594) (5,118,806) 3,284,895,754
Provision for impairment of long-
term equity investments V. 11 777,858,312 265,641,984 - - (14,455,477) 1,029,044,819
Provision for impairment of fixed
assets V. 14 791,695,970 505,201,450 - (35,450,891) - 1,261,446,529
Provision for impairment of goodwill V. 17 201,190,529 - - - - 201,190,529
Provision for impairment of contract
assets V. 8 - 207,800 - - - 207,800
Total 3,940,005,209 4,611,588,286 (1,332,990,406) (1,352,692,847) (22,217,777) 5,843,692,465
For reasons of recognition of impairment losses, refer to the notes of relevant assets.
Page 130
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
VI. Change of consolidation scope
1 Business combinations involving entities not under common control
(1) Business combinations involving entities not under common control occurred during the year
(a) Acquisition of Chengdu CEC Panda
In 2020, the Company increased investment in Chengdu CEC Panda by RMB
7,550,000,000 with one-time subscription and instalment payment. After the completion
of capital increase, the Company held 35.0348% of equity interest in Chengdu CEC
Panda. On 17 December 2020, the Company entered into Agreement of Acting in
Concert with shareholders of Chengdu CEC Panda and obtained control of Chengdu
CEC Panda. See Note VII.1. On 23 December 2020, Chengdu CEC Panda completed
industrial and commercial modification registration procedures. As at 31 December
2020, the Company has paid a capital increase of RMB 3,020,000,000, with RMB
4,530,000,000 outstanding.
Chengdu CEC Panda is a company established in Chengdu on 7 December 2015 and
is mainly engaged in research and development, production and sales of TFT-LCD
panels and modules, liquid crystal display monitors, televisions, instruments, machinery
equipment and accessories as well as provision of technical services. Before the
acquisition, Chengdu CEC Panda was jointly established by Nanjing Huadong
Electronic Information & Technology CO., Ltd., Chengdu Xihanggang Industrial
Development Investment Co., Ltd., Chengdu Advanced Manufacturing Industry
Investment Co., Ltd., Chengdu Shuangliu Xingrong Optoelectronic Display Industry
Equity Investment Centre (Limited Partnership), Sichuan Province Integrated Circuit
And Information Security Industry Investment Fund Co., Ltd. and Nanjing CEC Panda
Information Industry Group Co., Ltd.
(b) Acquisition of Nanjing CEC Panda
In 2020, the Company acquired 80.831% of equity interest in Nanjing CEC Panda with
the consideration of RMB 5,591,221,400. As at 15 December 2020, the Company has
paid 60% of equity acquisition fee (i.e. RMB 3,354,732,839). On 24 December 2020,
Nanjing CEC Panda completed industrial and commercial modification registration
procedures. So far, the Company has completed the acquisition of certain equity in
Nanjing CEC Panda. As at 31 December 2020, the outstanding equity acquisition fee
amounted to RMB 2,236,488,561.
Nanjing CEC Panda is a company established in Nanjing 21 November 2012 and is
mainly engaged in research and development, production and sales of TFT-LCD
panels and colour filter, LCD whole-widget module and accessory products. Before the
acquisition, the parent company of Nanjing CEC Panda is Nanjing Huadong Electronic
Information & Technology CO., Ltd. and the ultimate holding company is China
Electronics Corporation.
Page 131
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) Acquisition cost and goodwill
Chengdu CEC Panda Nanjing CEC Panda
Acquisition cost Carrying amount Fair value Carrying amount Fair value
Cash 3,020,000,000 3,020,000,000 3,354,732,839 3,354,732,839
Other payables 2,236,488,561 2,236,488,561
Equity interests held before acquisition date - - - -
Total acquisition cost 3,020,000,000 5,591,221,400
Less: Share of the fair value of the identifiable
net assets acquired 2,482,961,029 5,435,506,985
Amount of acquisition cost more than share of
the fair value of the identifiable net assets
acquired 537,038,971 155,714,415
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
Chengdu CEC Panda Nanjing CEC Panda
Carrying amount Fair value Carrying amount Fair value
Assets
Current assets 5,780,578,892 5,792,754,330 3,057,319,669 3,058,434,669
Non-current assets 25,888,187,662 26,763,545,261 15,092,623,128 16,246,434,439
Liabilities
Current liabilities 6,841,880,080 6,841,880,080 8,661,587,395 8,691,981,056
Non-current liabilities 10,227,290,745 10,227,290,745 3,888,355,404 3,888,355,404
Net assets 14,599,595,729 15,487,128,766 5,599,999,998 6,724,532,648
Less: Non-controlling interests 12,264,740,503 13,004,167,737 1,073,464,000 1,289,025,663
Net assets acquired 2,334,855,226 2,482,961,029 4,526,535,998 5,435,506,985
The Company assessed the fair value of the identifiable assets and liabilities of Chengdu
CEC Panda and Nanjing CEC Panda at the acquisition date. 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.
Page 132
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
2 Disposal of subsidiaries
(1) Disposal of investments in subsidiaries through a single transaction resulting in loss of control
Investment
Difference income or loss
between transferred
consideration from other
received and the Proportion of Carrying Gain or loss comprehensive
related share of remaining amount of Fair value of from Method and key income related
net assets in shareholding remaining remaining remeasurement assumptions for to previous
Shareholding Basis for consolidated on the date equity interests equity interests of remaining determining the fair equity
disposal being Disposal Date of determining date financial of losing on the date of on the date of equity interests value of remaining investments in
Entity name price disposed (%) method losing control of losing control statements control losing control losing control to fair value equity interests subsidiaries
Completion of
industrial and
commercial
Beijing Asahi Electronic Listing 22 December modification
Materials Co., Ltd. 425,000,000 100% transfer 2020 registration 251,411,452 - - - - - -
Diluted by
other
shareholders’ Change of articles
Hunan BOE Yiyun Science & capital 29 December of association of Subscription price of the
Technology Co., Ltd. - 5.44% contribution 2020 the Company (17,507,070) 48.99% 157,660,178 253,630,000 95,969,822 latest capital increase 46,470,087
The Group has a gain of RMB 251,411,452 on the loss of its control over Beijing Asahi Electronic Materials Co., Ltd., which has been included
in investment income of consolidated financial statements.
The Group lost its control over Hunan BOE Yiyun Science & Technology Co., Ltd. (formerly Beijing BOE Yiyun Technology Co., Ltd.) for the
capital increase of other shareholders. The Company accounted for its investment in Hunan BOE Yiyun Science & Technology Co., Ltd.
(formerly Beijing BOE Yiyun Technology Co., Ltd.) in the company financial statements by using equity method instead of cost method (see
Note XV.5). In the consolidated financial statements, the long-term equity investments is re-measured at its fair value at the date when control is
lost (see Note V.51).
3 Other reasons for change of consolidation scope
The Company has set up five new subsidiaries this year, which are BOE Education Technology Co., Ltd., Dongfang Chengqi (Beijing) Business
Technology Co., Ltd., BOE Innovation Investment Co., Ltd., BOE Smart Technology Co., Ltd., and Hefei BOE Xingyu Technology Co., Ltd.
Page 133
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
VII. Interests in other entities
1 Interests in subsidiaries
(1) Composition of the Group
Shareholding
(or similar equity interest) percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Beijing BOE Optoelectronics Research and development (“R&D”), design
Technology Co., Ltd. Beijing, China Beijing, China and manufacturing of TFT-LCD USD 649,110,000 82.49% 17.51% Founded by investment
Business combinations
Chengdu BOE Optoelectronics R&D, design, manufacturing, and involving entities not under
Technology Co., Ltd. Chengdu, China Chengdu, China sale of new display devices and components RMB 25,000,000,000 100.00% - common control
Investment, construction, R&D, production Business combinations
Hefei BOE Optoelectronics and sales of the relevant products of thin film involving entities not under
Technology Co., Ltd. Hefei, China Hefei, China transistor LCD and its auxiliary products. RMB 9,000,000,000 100.00% - common control
Beijing BOE Display Technology Development of TFT-LCD,
Co., Ltd. Beijing, China Beijing, China manufacturing and sale of LCD RMB 17,882,913,500 97.17% 2.83% Founded by investment
Investment, construction, R&D, production Business combinations
Hefei Xinsheng Optoelectronics and sales of the relevant products of thin film involving entities not under
Technology Co., Ltd. Hefei, China Hefei, China transistor LCD and its auxiliary products. RMB 19,500,000,000 99.97% 0.03% common control
Ordos Yuansheng Optoelectronics Manufacture and sales of AM-OLED
Co., Ltd. Ordos, China Ordos, China products and auxiliary products. RMB 11,804,000,000 100.00% - Founded by investment
R&D, production and sales of semi-
conducting display devices, complete Business combinations
Chongqing BOE Optoelectronics machine and related products; import & involving entities not under
Technology Co., Ltd. Chongqing, China Chongqing, China export of goods and technology consulting. RMB 19,226,000,000 100.00% - common control
Investment, construction, R&D, production Business combinations
Fuzhou BOE Optoelectronics and sales of the relevant products of thin film involving entities not under
Technology Co., Ltd. Fuzhou, China Fuzhou, China transistor LCD and its auxiliary products. RMB 17,600,000,000 81.25% - common control
Manufacture of LCD TV, LCD; technology
Beijing BOE Video Technology Co., development of terminal products and
Ltd. (“BOE Video”) Beijing, China Beijing, China systems such as TFT-LCD display and TV RMB 4,093,500,000 100.00% - Founded by investment
Beijing BOE Vacuum Electronics Manufacture and sale of
Co., Ltd. Beijing, China Beijing, China vacuum electronic products RMB 35,000,000 55.00% - Founded by investment
Beijing BOE Vacuum Technology
Co., Ltd. Beijing, China Beijing, China Manufacture and sale of electronic tubes. RMB 32,000,000 100.00% - Founded by investment
Page 134
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Shareholding
(or similar equity interest) percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Beijing BOE Special Display Development of display products and
Technology Co., Ltd. Beijing, China Beijing, China sale of electronic products. RMB 100,000,000 100% - Founded by investment
Management of engineering projects;
real estate development; public parking lot
Beijing Yinghe Century Co., Ltd. Beijing, China Beijing, China for motor vehicles service; office lease. RMB 233,105,200 100% - Founded by investment
BOE Optical Science and R&D, production and sales of LCD, back
technology Co., Ltd. Suzhou, China Suzhou, China light for display and related components. RMB 826,714,059 95.17% - Founded by investment
BOE Hyundai LCD (Beijing) Display Development, manufacture and sale of
Technology Co., Ltd. Beijing, China Beijing, China liquid display for mobile termination. USD 5,000,000 75% - Founded by investment
Manufacture and sale of mobile flat screen
BOE (Hebei) Mobile Technology display technical products
Co., Ltd. Langfang, China Langfang, China and related services. RMB 1,358,160,140 100% - Founded by investment
Business combinations
Beijing Asahi Electronic Materials Sales of TV bracket glass rod and CTV involving entities not under
Co., Ltd.* Beijing, China Beijing, China low-melting-point solder glass. RMB 61,576,840 100% - common control
Beijing BOE Multimedia Technology Sales of computer software and hardware,
Co., Ltd. Beijing, China Beijing, China digital video-audio products RMB 400,000,000 100% - Founded by investment
Page 135
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Shareholding
(or similar equity interest) percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Design, consultancy and service of solar cell,
photovoltaic system, wind power system and
solar thermal system as well as the
Beijing BOE Energy Technology Beijing, China Beijing, China assembly units; energy-saving service. RMB 850,000,000 100% - Founded by investment
Beijing BOE Life Technology Co.,
Ltd. (Formerly Beijing
Zhongpingxun Technology Co., Technology promotion services, property
Ltd.) Beijing, China Beijing, China management, sales of electronic products RMB 24,000,000 100% - Founded by investment
Beijing Zhongxiangying Technology promotion services, property
Technologies Co., Ltd. Beijing, China Beijing, China management, sales of electronic products RMB 100,000,000 100% - Founded by investment
Ordos City Haosheng Energy
Investment Co., Ltd. Ordos, China Ordos, China Energy investment RMB 30,000,000 - 100% Founded by investment
Processing, manufacturing and sales of
precision electronic components, semi-
conductor devices, micro modules,
microelectronic devices and electronic
BOE Semi-conductor Co., Ltd. Beijing, China Beijing, China materials; import & export of goods RMB 11,250,000 84% - Founded by investment
Design, manufacturing and sales of
electronic-information industry related
BOE Optoelectronics Holding Co., products, investment and
Ltd Hong Kong British Virgin Islands financing businesses USD 1,000,000,000 100% - Founded by investment
Page 136
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Shareholding
(or similar equity interest) percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Business combinations
BOE Healthcare Investment & Investment management and project involving entities not under
Management Co., Ltd. Beijing, China Beijing, China investment RMB 7,300,000,000 100% - common control
Colour TV set, display tube, colour RPTV
projection tube and materials of electronic Business combinations
BeijingMatsushita Colour CRT Co., components; property management and involving entities not under
Ltd. (“Matsushita Colour CRT”) Beijing, China Beijing, China parking services, etc. RMB 325,754,049 88.80% - common control
Investment, R & D and production of Business combinations
Hefei BOE Display Technology Co., products related to TFT-LCD and the involving entities not under
Ltd. Hefei, China Hefei, China supporting facility RMB 24,000,000,000 8.33% - common control
Beijing BOE Technology Development, transfer, consulting and
Development Co., Ltd. Beijing, China Beijing, China service of technology RMB 1,000,000 100% - Founded by investment
BOE Wisdom IOT Technology Co., Development, transfer, consulting, service
Ltd. (“Wisdom IOT Technology”) Beijing, China Beijing, China and promotion of technology RMB 142,000,000 100% - Founded by investment
Investment, construction, R&D, production
Hefei BOE Zhuoyin Technology and sales of products related to OLED
Co., Ltd. Hefei, China Hefei, China display device and auxiliary products RMB 800,000,000 75% - Founded by investment
Development, construction, property
management and supporting service of
industrial plants and supporting facilities;
information consulting of real estate; lease of
commercial facilities, commercial attendants
and the supporting service facilities; motor
Beijing BOE Real Estate Co., Ltd. Beijing, China Beijing, China vehicles public parking service RMB 55,420,000 70% - Founded by 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
technologies, agency of import & export;
manufacturing consignment of electronic
Beijing BOE Marketing Co., Ltd. Beijing, China Beijing, China products and LCD devices RMB 50,000,000 100% - Founded by 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
Yunnan Chuangshijie and presentation activities; computer
Optoelectronic Technology Co., animation design; production, R&D and sales
Ltd. (Formerly Kunming BOE of OLED microdisplays and AR/VR whole
Display Technology Co., Ltd.) Yunnan, China Yunnan, China widget; warehousing services; RMB 3,040,000,000 79.96% - Founded by investment
Page 137
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Shareholding
(or similar equity interest) percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
R&D, production and sales of flexible
AMOLED, the products are mainly Business combinations
Mianyang BOE Optoelectronics used in smart phones, wearable devices, car involving entities not under
Technology Co., Ltd. Mianyang, China Mianyang, China display, AR/VR, etc. RMB 24,000,000,000 66.67% - common control
Formation of X-ray sensors, microfluidic
chips, biochemical chips, gene chips,
security sensors, microwave antennas,
biosensors, logistics network technology and
other semiconductor sensors, technology
Beijing BOE Sensing Technology testing, technical consulting, technical
Co., Ltd. Beijing, China Beijing, China services, technology transfer RMB 50,000,000 100% - Founded by investment
Technology development, technology
transfer, technical consulting, technical
Hunan BOE Yiyun Science & services; technology intermediary services;
Technology Co., Ltd. (Formerly information system integration; basic Business combinations
Beijing BOE Yiyun Science & software services; application software involving entities not under
Technology Co., Ltd.) Changsha, China Changsha, China services; software development RMB 400,000,000 48.99% - common control
Wuhan BOE Optoelectronics Investing, researching, manufacturing Business combinations
Technology Co., Ltd. (Wuhan and selling TFT-LCD products and involving entities not under
BOE) Wuhan, China Wuhan, China accessory products RMB 26,000,000,000 23.08% - common control
R&D, manufacture and sales of
Chongqing BOE Display semiconductor display devices, whole widget Business combinations
Technology Co., Ltd. (Chongqing and relevant products, import and export of involving entities not under
BOE Display) Chongqing, China Chongqing, China goods and technical consulting RMB 6,010,000,000 38.46% - common control
R&D, production and sales of semiconductor
display device-related products and related
products; import or export of goods or
technology; display device and component,
other electronic components, and technology
development, technology transfer, technical
consulting, related fields related to display
devices and electronic products, technical
services; business management consulting; Business combinations
Fuzhou BOE Display Technology property management; house rental; involving entities not under
Co., Ltd. (“Fuzhou BOE Display”) Fuzhou, China Fuzhou, China machinery and equipment rental RMB 50,000,000 43.46% - common control
Page 138
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Shareholding
(or similar equity interest) percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Support colour electronic paper, segment
LCD, TFT-LCD display, covering ESL multi-
frequency protocol, Wi-Fi, BLE and NFC;
multiple communication methods, integrated
electronic paper supply chain resources and
downstream software around electronic shelf
labels platform, image recognition and big Business combinations
data analytics resources to create a involving entities not under
SES Imagotag SA Co., Ltd. Nanterre, France Nanterre, France complete solution for the retail industry EUR 31,516,216 - 68.48% common control
Investment, R&D, manufacturing and sales
of direct display, sensors related to the
display, back light source for LCD and
supporting components; enterprise
management consulting and service; house
rental; equipment rental; technology
Hefei BOE Xingyu Technology Co., development, transfer and consulting
Ltd. Hefei, China Hefei, China services. USD 115,380,000 43.40% - Founded by investment
Technology development, software
development, sales of stationery, sports
goods and household appliances; enterprise
management, economic and trade
consulting, education consulting, public
relations services; natural science,
engineering technology, agricultural science
research and experimental development;
BOE Education Technology Co., copyright agency and process beauty
Ltd. Beijing, China Beijing, China creation services. RMB 55,000,000 100% - Founded by investment
Technology development; sales of primary
edible agricultural products; translation
services, conference services; business
management, real estate information
consulting; ticketing agents, tourism
consulting, warehousing services, public
relations services, car rental; import and
export of goods, technology import and
export; beauty services, medical services;
Dongfang Chengqi (Beijing) inbound tourism business; Internet
Business Technology Co., Ltd. Beijing, China Beijing, China information services. RMB 10,000,000 100% - Founded by investment
BOE Innovation Investment Co., Project investment and investment
Ltd. Beijing, China Beijing, China management RMB 800,000,000 100% - Founded by investment
Page 139
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Shareholding
(or similar equity interest) percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Information system integration services;
technology development, technology
transfer; software development; Internet data
services; real estate brokerage business;
motor vehicle public parking services;
conference services; project management;
property management; lease of office space
and commercial space; labour
subcontracting; import and export of goods,
technology import and export; human
BOE Smart Technology Co., Ltd. Beijing, China Beijing, China resource services. RMB 800,000,000 100% - Founded by investment
R&D, production and sale of TFT-LCD
panels, colour filters and LCD whole-widget
modules; providing products and business-
related services, as well as other business
activities related to the above; import and Business combinations
Nanjing CEC Panda FPD export of proprietary and agent commodities involving entities not under
Technology Co., Ltd. Nanjing, China Nanjing, China and technologies. RMB 17,500,000,000 80.831% - common control
R&D, production and sales of TFT-LCD
panels and modules, liquid crystal display
monitors, televisions, instruments, machinery
equipment and accessories as well as
provision of technical services; foreign trade Business combinations
Chengdu CEC Panda Display in form of import and export of goods and involving entities not under
Technology Co., Ltd. Sichuan, China Sichuan, China technology. RMB 21,550,000,000 35.0348% - common control
* Beijing Asahi Electronic Materials Co., Ltd. and Hunan BOE Yiyun Science & Technology Co., Ltd. are disposed of on 22 December 2020
and 29 December 2020 respectively. See Note VI.2.
The Company signed an agreement of acting in concert with Hefei Core Screen Industrial Investment Fund (Limited Partnership) on 30
November 2016. Hefei Core Screen Industrial 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 71.67%.
Page 140
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
The Company signed an agreement of acting in concert with the shareholder of Wuhan BOE, Wuhan Airport Economic Development Zone
Industrial Development Investment Group Co., Ltd. on 25 December 2018. Wuhan Airport Economic Development Zone Industrial Development
Investment Group Co., Ltd. agreed to follow the Company’s will to act as a person acting in concert, unconditionally and irrevocably exercising
voting rights in accordance with the opinions of the Company, the voting rights of the Company to Wuhan BOE is 69.23%.
The Company signed an agreement of acting in concert with shareholders of Chongqing BOE Display, Chongqing Strategic Emerging Industry
Equity Investment Fund Partnership (Limited Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. on 25 December
2018. Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited Partnership) and Chongqing Yuzi Optoelectronic
Industry Investment Co., Ltd. agreed to act as persons acting in concert according to the will of the Company, and exercise the voting 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 an agreement of acting in concert with shareholders of Chengdu CEC Panda, Chengdu Advanced Manufacturing Industry
Investment Co., Ltd., Chengdu Airport Xingcheng Investment Group Co., Ltd., and Chengdu Airport Xingcheng Construction Management Co.,
Ltd. on 17 December 2020. Chengdu Advanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport Xingcheng Investment Group
Co., Ltd., and Chengdu Airport Xingcheng Construction Management Co., Ltd. agreed to act as persons acting in concert according 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 Chengdu CEC Panda is 100%.
Page 141
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) Material non-wholly owned subsidiaries
Proportion of ownership Profit/(loss) allocated to non- Dividend declared to non- Balance of non-controlling
interest held by non- controlling interests controlling shareholders interests at the end of
Name of the Subsidiary controlling interests during the year during the year the year
Hefei Display Technology 91.67% 3,600,766 - 19,364,095,828
Mianyang BOE 33.33% (270,861,155) - 7,588,781,957
Wuhan BOE 76.92% (115,879,453) - 19,861,266,116
Chongqing BOE Display 61.54% (88,748,272) - 6,245,130,676
(3) Key financial information about material non-wholly owned subsidiaries
The following table sets out the key financial information of the above subsidiaries without offsetting internal transactions, but with adjustments
made for the fair value adjustment at the acquisition date and any differences in accounting policies:
Hefei Display Technology Mianyang BOE Wuhan BOE Chongqing BOE Display
2020 2019 2020 2019 2020 2019 2020 2019
Current assets 13,917,088,962 11,633,732,300 5,001,552,767 3,644,261,703 11,748,881,218 3,684,026,094 4,511,835,708 5,182,267,756
Non-current assets 28,144,487,136 33,264,338,502 45,771,813,314 39,751,190,014 34,698,575,568 27,439,008,544 13,507,596,306 1,634,796,122
Total assets 42,061,576,098 44,898,070,802 50,773,366,081 43,395,451,717 46,447,456,786 31,123,034,638 18,019,432,014 6,817,063,878
Current liabilities 8,775,178,650 9,069,027,029 8,221,423,949 4,971,407,195 5,369,267,140 5,661,729,075 6,962,326,548 716,978,520
Non-current liabilities 12,162,697,407 14,787,288,631 19,783,319,398 17,405,543,775 15,257,510,868 7,429,662,481 909,021,819 97,980,000
Total liabilities 20,937,876,057 23,856,315,660 28,004,743,347 22,376,950,970 20,626,778,008 13,091,391,556 7,871,348,367 814,958,520
Operating income 15,153,402,394 11,455,196,518 1,406,636,788 110,313,244 1,775,338,449 130,054,586 355,365 169,027
Net profit/(loss) 3,927,966 (2,448,838,884) (830,258,844) (252,575,687) (158,596,684) (13,172,938) (144,212,337) (1,354,276)
Total comprehensive income 3,927,966 (2,448,838,884) (830,258,844) (252,575,687) (158,596,684) (13,172,938) (144,212,337) (1,925,302)
Cash inflow/(outflow) in operating activities 3,819,978,355 912,437,769 (1,016,864,877) 184,012,366 2,934,840,804 890,669,009 43,940,351 118,933,310
Page 142
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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
Yunnan Chuangshijie Optoelectronic Technology
Co., Ltd. 69.43% 79.96%
Mianyang BOE Optoelectronics Technology
Co., Ltd. 68.72% 66.67%
(2) Impact from transactions with non-controlling interests and equity attributable to the
shareholders of the Company:
The changes in the shareholding of the Company in the owners of above-mentioned other
subsidiaries were caused by the capital increase of the Company and its non-controlling
interests, which results in the increase of capital reserves by RMB 76,020,559. See Note
V.39.
3 Interests in associates
Please see Note V.11(2) for details of the summarised financial information of the
associates.
No material restrictions on transfers of funds from investees to the Group. The judgement
basis of the Company and 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.
VIII. Risk related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in
the normal course of the Group’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.
Page 143
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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 are 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 15 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 rather than the industry or country/region in which the customers operate.
Therefore, significant concentrations of credit risk primarily arise when the Group has
significant exposure of the total accounts receivable and contract assets to individual
customers. At the balance sheet date, the Group and the Company’s accounts receivable
due from the top five customers account for 33% and 0.02% of the total accounts receivable
and contract assets respectively (2019: 43% and 0.07%). In addition, the 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 XIII, as at 31 December 2020, the Group
does not provide any external guarantees which would expose the Group to credit risk.
Page 144
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(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 the balance sheet date) and the earliest date the Group can be required to pay:
2020 Contractual undiscounted cash flow
More than 1 More than 3
Within 1 year year but less years but less More than Carrying amount
or demand than 3 years than 5 years 5 years Total of balance sheet
Financial liabilities
Short-term loans 8,778,542 ,209 - - - 8,778,542,209 8,599,569,471
Bills payable 1,231,533,895 - - - 1,231,533,895 1,231,533,895
Accounts payable 27,164,171,682 - - - 27,164,171,682 27,164,171,682
Other payables 32,867,709,024 - - - 32,867,709,024 32,867,709,024
Non-current liabilities due
within one year 25,053,537,286 - - - 25,053,537,286 24,500,550,121
Long-term loans 4,957,036,602 28,885,981,505 24,623,632,349 97,458,835,686 155,925,486,142 132,452,767,135
Debentures payable 14,886,375 350,772,750 85,932,140 - 451,591,265 398,971,739
Long-term payables - 1,620,375,941 304,011,108 536,546,749 2,460,933,798 2,114,175,683
Total 100,067,417,073 30,857,130,196 25,013,575,597 97,995,382,435 253,933,505,301 229,329,448,750
2019 Contractual undiscounted cash flow
More than 1 year More than 3
Within 1 year but less than years but less More than Carrying amount
or demand 3 years than 5 years 5 years Total of balance sheet
Financial liabilities
Short-term loans 6,458,040,008 - - - 6,458,040,008 6,366,717,121
Bills payable 2,028,917,980 - - - 2,028,917,980 2,028,917,980
Accounts payable 21,183,567,553 - - - 21,183,567,553 21,183,567,553
Other payables 24,570,589,610 - - - 24,570,589,610 24,570,589,610
Non-current liabilities due
within one year 19,473,884,018 - - - 19,473,884,018 18,849,281,019
Long-term loans 4,478,877,485 8,296,257,569 26,580,720,126 94,478,027,383 133,833,882,563 107,730,595,615
Debentures payable 14,497,753 28,995,505 330,673,806 3,556,053 377,723,117 387,878,384
Long-term payables - 409,808,948 328,617,676 538,091,397 1,276,518,021 984,520,824
Total 78,208,374,407 8,735,062,022 27,240,011,608 95,019,674,833 209,203,122,870 182,102,068,106
Page 145
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(3) Interest rate risk
Interest-bearing financial instruments at floating 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 of the fixed and floating rate interest-bearing instruments based
on the 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:
2020 2019
Effective Effective
Item interest rate Amounts interest rate Amounts
Financial assets
- Cash at bank 0.20%~3.74% 41,745,509,216 0.20% ~ 3.74% 26,721,273,607
Financial liabilities
- Short-term loans 0.50%~5.90% (6,327,791,477) 0.40% - 4.35% (4,643,502,121)
- Non-current liabilities due within
one year 0%~5.29% (12,025,528,359) 0% - 5.64% (9,071,034,895)
- Long-term loans 0%~5.90% (49,498,675,910) 0% - 5.64% (59,667,474,395)
- Debentures payable 3.50%~4.55% (398,971,739) 3.50% - 4.55% (387,878,384)
- Long-term payables 4.17%~7.02% (2,114,175,683) 4.24% ~ 7.09% (984,520,824)
Total (28,619,633,952) (48,033,137,012)
Floating rate instruments:
2020 2019
Effective Effective
Item interest rate Amounts interest rate Amounts
Financial assets
- Cash at bank 0.0001%~3.90% 31,800,233,366 0.0001% ~ 3.90% 30,250,911,294
Financial liabilities
- Short-term loans 2.02%~2.55% (2,263,424,127) 3.56% ~ 3.92% (1,723,215,000)
- Non-current liabilities due within
one year 2.78%~5.88% (12,128,797,769) 1.04% - 6.38% (9,619,871,357)
- Long-term loans 1.11%~5.39% (82,790,180,032) 3.00% ~ 6.38% (48,063,121,220)
Total (65,382,168,562) (29,155,296,283)
(b) Sensitivity analysis
As at 31 December 2020, it is estimated that a general increase/decrease of 100 basis
points in interest rates of floating rate instrument, with all other variables held constant,
would decrease/increase the Group’s net profit and equity by RMB 557,440,000 (2019:
RMB 251,370,000).
In respect of the exposure to cash flow interest rate risk arising from floating rate non-
derivative instruments held by the Group at the balance sheet date, the impact on the
net profit and 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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(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 recognised
foreign currency assets or liabilities is mainly denominated in US dollar. The amount of
the USD exposure is net liabilities exposure USD 2,618,785,628 (2019 net liabilities
exposure: USD 1,791,577,868), translated into RMB 17,087,314,344 (2019: RMB
12,498,405,521), 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) The following are the exchange rates for Renminbi against US dollar applied by the
Group:
Average rate Balance sheet date mid-spot rate
2020 2019 2020 2019
USD 6.7506 6.9197 6.5249 6.9762
Assuming all other risk variables remained constant, a 5% strengthening/weakening of
the Renminbi against the US dollar at 31 December would have increased/decreased
both the Group’s equity and net profit by the amount RMB 333,959,173 (2019: RMB
197,336,145).
The sensitivity analysis above assumes that the change in foreign exchange rates had
been applied to re-measure 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.
IX. Fair value disclosure
The following table presents the fair value information and the fair value hierarchy, at the end
of the current reporting period, of the Group’s assets and liabilities which are measured at
fair value at each balance sheet date on a recurring 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;
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Level 3 inputs: inputs that are unobservable for underlying assets or liabilities.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
1. Fair value of assets measured at fair value at the end of the year
31 December 2020
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 - - 4,367,201,833 4,367,201,833
Including: Structured deposits
and wealth
management
products V. 2 - - 4,367,201,833 4,367,201,833
- Investments in other equity
instruments V. 12 214,214,021 - 319,431,402 533,645,423
Total assets measured at fair value
on a recurring basis 214,214,021 - 4,686,633,235 4,900,847,256
31 December 2019
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 - - 5,809,184,994 5,809,184,994
Including: Structured deposits
and wealth
management
products V. 2 - - 5,809,184,994 5,809,184,994
- Investments in other equity
instruments V. 12 300,124,974 - 331,951,673 632,076,647
Total assets measured at fair value
on a recurring basis 300,124,974 - 6,141,136,667 6,441,261,641
2 Basis of determining the market price for recurring and non-recurring fair value
measurements categorised within Level 1
The Group uses the active market quote as the fair value of financial assets within Level 1.
3 Valuation techniques used and the qualitative and quantitative information of key parameters
for recurring and non-recurring fair value measurements categorised within Level 3
Financial assets held for trading at recurring fair value within Level 3 are bank wealth
management products. For wealth management products measured at fair value, the fair
value is determined based on the discounted cash flow method.
Investments in other equity instruments at recurring fair value within Level 3 are unlisted
equity investments held by the Group, including:
(i) For those who raised a new round of financing in 2020, the Group used the financing
price as the best estimates of their fair value;
(ii) For other investments in other equity instruments, since the operating environment,
operating conditions and financial status of the investee have not changed significantly
during the year, the Group uses the book investment cost as a reasonable estimate of
fair value for measurement.
During 2020, there were no changes in valuation technique of fair value. As at 31 December,
there were no significant discrepancies between the book value and fair value of all the
financial assets and financial liabilities except the above assets measured at fair value and
the non-current assets held for sale presented in Note V.9.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
X. Related parties and related party transactions
1 Information about the parent of the Company
Ultimate
Registered Shareholding Percentage of controlling party
Company name Registered place Business nature capital percentage (%) voting rights (%) of the Company
Operation and
No. 12, management of
Jiuxianqiao state-owned
Road, Chaoyang assets within RMB
Beijing Electronics Holding Co., Ltd. District, Beijing authorisation, etc. 3,139,210,000 0.79% 18.85% Yes
2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Company, refer to Note VII.1.
3 Information about joint ventures and associates of the Company
Associates and joint ventures that have related party transactions with the Group during this
year or the previous year are as follows:
Relationship with the
Name of entity Company
Associate of the Group
Beijing Nittan Electronic Co., Ltd. and the Company
Associate of the Group
TPV Display Technology (China) Limited and the Company
Associate of the Group
Shenzhen Yunyinggu Technology Co., Ltd. and the Company
Associate of the Group
Beijing Xindongneng Investment Management Co., Ltd. and the Company
BOE Houji Technology (Beijing) Co., Ltd. Associate of the Group
Beijing Zhonglianhe Ultra HD Collaborative Technology Centre
Co., Ltd. Associate of the Group
Hefei Xin Jing Yuan Electronic Materials Co., Ltd. Associate of the Group
Subsidiary of associate of
Changzhou Xiruojia Medical Technology Co., Ltd. the Group
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
4 Information on other related parties
Name of other related parties Related party relationship
Beijing Zhengdong Electronic Power Group Co., Ltd. Under the same control of the
ultimate holding company
Beijng NAURA Microelectronics Equipment Co., Ltd. Under the same control of the
ultimate holding company
Sevenstar Semiconductor Technologies Co., Ltd. Under the same control of the
ultimate holding company
Beijing Zhaowei Technology Development Co., Ltd. Under the same control of the
ultimate holding company
Beijing C&W Intelligent Equipment Co., Ltd. Under the same control of the
ultimate holding company
Beijing BBEF Science & Technology Co., Ltd. Under the same control of the
ultimate holding company
Beijing Yandong Microelectronic Co., Ltd. Under the same control of the
ultimate holding company
Beijing Ether Electronics Group Co., Ltd. Under the same control of the
ultimate holding company
Beijing Dongdian Industrial Development Co., Ltd. Under the same control of the
ultimate holding company
Beijing Electrical Control Jiuyi Industrial Development Under the same control of the
Company ultimate holding company
Beijing BOE Investment Development Co., Ltd. Under the same control of the
ultimate holding company
Beijing Yansong Economic and Trade Co., Ltd. Under the same control of the
ultimate holding company
Beijing Electronics Holding & SK Technology Co., Ltd. Under the same control of the
ultimate holding company
Baic Electronics Holding SK (Jiangsu) Technology Co., Ltd. Under the same control of the
ultimate holding company
Beijing Zhaowei Electronic (Group) Co., Ltd. Under the same control of the
ultimate holding company
761 Workshop (Beijing) Technology Development Co., Ltd. Under the same control of the
ultimate holding company
Beijing Electric Control Industry Investment Co., Ltd. Under the same control of the
ultimate holding company
Beijing Feiyu Micro Electronics Co., Ltd. Under the same control of the
ultimate holding company
Beijing Senju Electronic Materials Co., Ltd. Associate of enterprise that is
under the same control of the
ultimate holding company
New Vision Microelectronics (Hong Kong) Limited Associate of enterprise that is
under the same control of the
ultimate holding company
Beijing Electric Vehicle Co., Ltd. Other related parties
China United Network Communications Limited Other related parties
Hefei Yisiwei Integrated Circuit Co., Ltd. Other related parties
Chengdu ESWIN IC Design Co., Ltd. Other related parties
Haining Yisiwei IC Design Co., Ltd. Other related parties
Page 151
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
5 Transactions with related parties
The transactions below with related parties were conducted under normal commercial terms
or agreements.
(1) Purchase of goods and equipment, and receiving of services (excluding remuneration of key
management personnel)
The Group
Nature of transaction 2020 2019
Purchase of goods 698,585,167 480,284,012
Procurement of equipment 169,998,650 397,005,152
Receiving of services 17,527,375 17,744,265
Total 886,111,192 895,033,429
The Company
Nature of transaction 2020 2019
Purchase of goods 14,438,544 12,379,363
Receiving of services 544,225,068 844,688,884
Payment of interest expenses - 65,689,459
Total 558,663,612 922,757,706
(2) Sale of goods/rendering of services
The Group
Nature of transaction 2020 2019
Sale of goods 20,817,125 2,846,583
Rendering of services 4,762,316 4,670,427
Total 25,579,441 7,517,010
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
The Company
Nature of transaction 2020 2019
Sale of goods 3,366,359 -
Rendering of services 4,406,612,262 4,635,072,473
Interest income received 4,044,123 318,036
Total 4,414,022,744 4,635,390,509
(3) Leases
(a) As the lessor
The Group
Lease income Lease income
recognised in recognised in
Type of assets leased 2020 2019
Investment properties 1,092,879 1,176,283
The Company
Lease income Lease income
recognised in recognised in
Type of assets leased 2020 2019
Investment properties 66,764,268 63,700,904
(b) As the lessee
The Group
Lease expense Lease expense
recognised in recognised in
Type of assets leased 2020 2019
Fixed assets 2,329,933 3,082,942
Page 153
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(4) Funding from related party
The Company
Amount of
Name of related party funding Inception date Maturity date
Funds received
Subsidiary of the parent company 500,000,000 28/5/2019 31/12/2025
Subsidiary of the parent company 300,000,000 8/7/2020 8/7/2025
Subsidiary of the parent company 2,000,000,000 9/6/2017 31/12/2025
Subsidiary of the parent company 700,000,000 13/4/2018 31/12/2025
Subsidiary of the parent company 2,000,000,000 27/5/2019 31/12/2025
Subsidiary of the parent company 360,000,000 24/4/2020 31/12/2025
Subsidiary of the parent company 2,500,000,000 6/7/2020 6/7/2025
Subsidiary of the parent company 1,700,000,000 12/10/2020 12/10/2025
Subsidiary of the parent company 1,700,000,000 28/12/2020 28/12/2025
Subsidiary of the parent company 1,200,000,000 30/9/2015 31/12/2025
Subsidiary of the parent company 650,000,000 25/4/2018 31/12/2025
Subsidiary of the parent company 3,500,000,000 1/8/2018 31/12/2025
Subsidiary of the parent company 1,500,000,000 24/5/2019 31/12/2025
Subsidiary of the parent company 2,000,000,000 3/7/2020 3/7/2025
Subsidiary of the parent company 2,500,000,000 5/11/2020 5/11/2025
Subsidiary of the parent company 500,000,000 11/12/2020 11/12/2025
Subsidiary of the parent company 200,000,000 28/7/2017 31/12/2025
Subsidiary of the parent company 1,600,000,000 4/12/2017 31/12/2025
Subsidiary of the parent company 3,800,000,000 19/7/2018 31/12/2025
Subsidiary of the parent company 1,000,000,000 26/7/2019 31/12/2025
Subsidiary of the parent company 1,000,000,000 20/8/2020 20/8/2025
Subsidiary of the parent company 4,000,000,000 9/6/2017 31/12/2025
Subsidiary of the parent company 1,000,000,000 23/12/2016 31/12/2025
Subsidiary of the parent company 3,000,000,000 27/4/2018 31/12/2025
Subsidiary of the parent company 2,490,000,000 31/8/2018 31/12/2025
Subsidiary of the parent company 500,000,000 21/5/2019 31/12/2025
Subsidiary of the parent company 2,000,000,000 28/12/2020 28/12/2025
Subsidiary of the parent company 1,200,000,000 6/7/2020 6/7/2025
Subsidiary of the parent company 3,000,000,000 28/5/2018 31/12/2025
Subsidiary of the parent company 1,300,000,000 21/5/2019 31/12/2025
Subsidiary of the parent company 2,500,000,000 28/9/2020 28/9/2025
Subsidiary of the parent company 3,280,000,000 7/12/2020 7/12/2025
Total 55,480,000,000
Page 154
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Amount of
Name of related party funding Inception date Maturity date
Funds provided
Subsidiary of the parent company 50,000,000 27/3/2015 26/12/2021
Subsidiary of the parent company 30,000,000 21/1/2016 21/1/2022
Subsidiary of the parent company 15,000,000 20/1/2020 20/1/2022
Subsidiary of the parent company 200,000,000 12/10/2020 12/10/2030
Subsidiary of the parent company 100,000,000 13/12/2019 13/12/2022
Subsidiary of the parent company 150,000,000 20/12/2019 19/12/2022
Subsidiary of the parent company 100,000,000 24/12/2019 24/12/2022
Subsidiary of the parent company 200,000,000 27/4/2020 19/12/2022
Subsidiary of the parent company 50,000,000 28/4/2020 17/12/2022
Subsidiary of the parent company 300,000,000 24/11/2020 24/11/2023
Subsidiary of the parent company 1,200,000,000 5/11/2020 28/10/2023
Subsidiary of the parent company 50,000,000 13/12/2019 13/12/2022
Subsidiary of the parent company 800,000,000 17/12/2019 17/12/2022
Subsidiary of the parent company 650,000,000 20/12/2019 19/12/2022
Subsidiary of the parent company 100,000,000 24/12/2019 24/12/2022
Subsidiary of the parent company 770,000,000 19/2/2020 17/2/2023
Subsidiary of the parent company 800,000,000 30/4/2020 17/2/2023
Subsidiary of the parent company 1,490,000,000 21/10/2020 20/10/2023
Subsidiary of the parent company 500,000,000 24/11/2020 24/11/2023
Subsidiary of the parent company 250,000,000 13/12/2019 13/12/2022
Subsidiary of the parent company 450,000,000 20/12/2019 19/12/2022
Subsidiary of the parent company 50,000,000 24/12/2019 24/12/2022
Subsidiary of the parent company 150,000,000 25/12/2019 17/12/2022
Subsidiary of the parent company 400,000,000 13/12/2019 13/12/2022
Subsidiary of the parent company 120,000,000 24/12/2019 17/12/2022
Subsidiary of the parent company 180,000,000 24/12/2019 24/12/2022
Subsidiary of the parent company 70,000,000 28/4/2020 24/12/2022
Subsidiary of the parent company 130,000,000 28/4/2020 17/12/2022
Subsidiary of the parent company 500,000,000 20/11/2020 20/11/2023
Subsidiary of the parent company 800,000,000 19/2/2020 17/2/2023
Subsidiary of the parent company 170,000,000 28/2/2020 17/2/2023
Subsidiary of the parent company 1,700,000,000 20/11/2020 20/11/2023
Subsidiary of the parent company 1,800,000,000 29/10/2020 28/10/2023
Subsidiary of the parent company 1,480,000,000 24/11/2020 24/11/2023
Total 15,805,000,000
(5) Remuneration of key management personnel
The Group and the Company
Item 2020 2019
Remuneration of key management personnel 56,368,000 49,799,000
The remuneration of key management personnel above does not include the one with
respect to 2020 share-based payments scheme.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
6 Receivables from and payables to related parties
Receivables from related parties
The Group
2020 2019
Provision for Provision for
Item Book value impairment Book value impairment
Accounts receivable 38,773,536 - 1,960,247 -
Prepayments 7,678,237 - 2,259,308 -
Other receivables 14,062,445 - 603,515 -
The Company
2020 2019
Provision for Provision for
Item Book value impairment Book value impairment
Accounts receivable 3,988,518,583 14,979,329 659,753,039 14,979,329
Prepayments 153,768 - 833,053 -
Dividends receivable 460,261,502 - 941,634,611 -
Other receivables 15,724,164,267 46,377,509 3,889,934,009 41,038,073
Other non-current assets 2,606,920,400 - 156,920,400 -
Payables to related parties
The Group
Item 2020 2019
Accounts payable 108,759,439 77,847,042
Advance payments received 6,018,519 60,990
Contract liabilities 1,604,187 -
Other payables 183,204,239 166,424,203
The Company
Item 2020 2019
Accounts payable 236,990,054 1,093,063
Advance payments received 8,735,465 2,108,152,470
Other payables 3,051,622,542 4,739,212,844
Other non-current liabilities 56,156,661,805 33,297,240,830
7 Commitments of the related parties
As at balance sheet date, the commitments of the related parties, which are signed but not
listed in financial statement are as following:
2020 2019
Procurement of equipment 254,763,625 133,794,504
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
XI. Share-based payments
At 17 December 2020, the Board of Directors of the Company approved the implementation
of share options and restricted share incentive plans. 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. Vesting plans of share options and restricted share
incentive plans are as follows:
(a) Share option incentive plan
The share option incentive plan is classified into initial grant and reserved grant. The
initial grant date was 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 number of reserved grants was 33,000,000 shares. The grant
date, grant recipients, and implementation completion date, etc. are to be confirmed.
The share options are exercised in three phases after 24 months from the grant date.
The exercise ratios for each 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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
The incentive objects involved in this share option and restricted share incentive plans are
qualified employees of the Company and its subsidiaries. The Company acts as a settlement
company, and the Company and its subsidiaries act as service recipients. As at 31
December 2020, the total costs recognised by the Group’s equity-settled share-based
payments in the consolidated financial statement was RMB 17,211,463, and the
accumulated amount of capital reserve paid by equity-settled share-based payments
amounted to RMB 16,009,935. In the Company’s financial statements, the Company
recognised its long-term equity investment of RMB 13,407,214 in its subsidiary at the fair
value of the equity instruments at the grant date, and recognised expenses arising from
share-based payments of RMB 3,804,249, as well as a capital reserve of RMB 17,211,463.
As at 31 December 2020, the company received a total of RMB 875,333,536 in restricted
share subscription funds from restricted share incentive objects. 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. 28
(1) for the repurchased obligation set out in other payables.
(1) Method for determining the fair value of equity instruments at the grant date
Share options:
The fair value of equity instruments at the grant date is determined based on the
difference between the assessed 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).
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.
XII. 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.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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.
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 2019. 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 2020 and 31 December 2019, the Group’s asset-liability ratios are as
follows:
2020 2019
Asset-liability ratio 59.13% 58.56%
Neither the Company nor any of its subsidiaries are subject to externally imposed capital
requirements.
XIII. Commitments and contingencies
1 Significant commitments
(1) Capital commitments
The Group 2020 2019
Contracts entered into but not performed or partially
performed 58,885,156,561 59,347,872,614
Contracts authorised but not entered into 74,192,859,943 102,974,551,619
Total 133,078,016,504 162,322,424,233
The Group’s contracts authorised but not entered into mainly included the fixed assets that
Chongqing BOE Display, Fuzhou BOE Display, Health Investment and Wuhan BOE planned
to purchase in subsequent years and project equipment that the Group planned to purchase
in subsequent years.
The Company 2020 2019
Contracts entered into but not performed or partially
performed 39,391,365,336 36,732,291,172
The Company’s contracts entered into but not performed or partially performed mainly
included guaranteed investments in Chongqing BOE Display, Fuzhou BOE Display and
Health Investment.
Page 159
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) Operating lease commitments
As at 31 December, the total future minimum lease payments under non-cancellable
operating leases of the Group’s properties were payable as follows:
Item 2020 2019
Within 1 year (inclusive) 76,151,901 56,919,248
After 1 year but within 2 years (inclusive) 38,471,518 34,440,482
After 2 years but within 3 years (inclusive) 21,725,645 31,151,809
After 3 years 33,043,339 61,129,358
Total 169,392,403 183,640,897
As at 31 December 2020, the Company had no significant operating lease commitments.
2 Guarantee
(1) The Group as the guarantor
As at 31 December 2020, the Group did not have guarantees provided for external
enterprises.
(2) The Company as the guarantor
At 31 December 2020, Chengdu Optoelectronics pledged its land use right with carrying
amount of RMB 41,177,526, construction in progress with carrying amount of RMB
1,221,864,173, machinery and equipment with carrying amount of RMB 32,627,157,411 and
plants and buildings with carrying amount of RMB 2,432,658,572 as collaterals to obtain
long-term loans of USD 901,460,000 and RMB 15,717,800,000. 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 USD 449,008 and JPY
27,540,000 and the long-term letter of guarantee issued but not accepted of RMB
1,118,500,000.
At 31 December 2020, Yuansheng Optoelectronics pledged its plants and buildings with
carrying amount of RMB 2,184,506,985, machinery and equipment with carrying amount of
RMB 9,074,094,053 and land use right with carrying amount of RMB 45,644,499 as
collaterals to obtain long-term loans of RMB 1,922,730,000. The Company provides joint-
liability guarantee for the above loans.
At 31 December 2020, Chongqing BOE Display pledged its land use right with carrying
amount of RMB 166,784,696 as collaterals to obtain long-term loans of USD 124,000,000
and RMB 1,000,000. The Company provides joint-liability guarantee for the above loans. In
addition, the Company provides joint-liability guarantee for the short-term loan of USD
170,000,000 and the letters of credit issued but not accepted of USD 301,146,607 and JPY
18,938,564,000.
At 31 December 2020, Hefei Xinsheng pledged its land use right with carrying amount of
RMB 113,894,779, plants and buildings with carrying amount of RMB 3,016,644,938 and
equipment with carrying amount of RMB 3,528,523,204 as collaterals to obtain long-term
loans of USD 268,120,000. The Company provides joint-liability guarantee for the above
loans.
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Financial statements for the year ended 31 December 2020
Page 161
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
At 31 December 2020, Chongqing BOE pledged its land use right with carrying amount of
RMB 132,311,810 and machinery and equipment and buildings with carrying amount of RMB
10,742,935,343 as collaterals to obtain long-term loans of USD 562,240,000 and RMB
255,600,000. The Company provides joint-liability guarantee for the above loans.
At 31 December 2020, Fuzhou BOE pledged its land use right with carrying amount of RMB
207,436,937, plants and buildings with carrying amount of RMB 3,069,470,678 and
machinery and equipment with carrying amount of RMB 10,668,568,525 as collaterals to
obtain long-term loans of USD 729,000,000 and RMB 3,450,060,000. The Company
provides joint-liability guarantee for the above loans. In addition, the Company provides joint-
liability guarantee for the long-term letter of guarantee issued but not accepted of RMB
720,000,000.
At 31 December 2020, Hefei Display Technology pledged its land use right with carrying
amount of RMB 286,639,674, buildings with carrying amount of RMB 3,919,531,110 and
machinery and equipment with carrying amount of RMB 18,739,242,411 as collaterals to
obtain long-term loans of USD 1,342,090,000 and RMB 6,118,214,080. 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 899,600,000.
At 31 December 2020, Mianyang BOE pledged its land use right with carrying amount of
RMB 384,360,333, buildings with carrying amount of RMB 111,133,982, machinery and
equipment with carrying amount of RMB 23,758,696,685 and construction in progress with
carrying amount of RMB 9,712,245,614 as collaterals to obtain long-term loans of USD
802,000,000 and RMB 13,182,730,000. 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 USD 22,911,342 and JPY 3,424,770,000 and the long-term
letter of guarantee issued but not accepted of RMB 1,690,000,000.
At 31 December 2020, Wuhan BOE pledged its machinery and equipment with carrying
amount of RMB 18,290,634,775, land use right with carrying amount of RMB 254,850,879
and construction in progress with carrying amount of RMB 10,092,665,066 as collaterals to
obtain long-term loans of USD 1,158,000,000 and RMB 7,673,000,000. 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 USD 2,440,000 and JPY
3,340,856,000.
At 31 December 2020, Chengdu Hospital obtain long-term loans of RMB 999,092,146. The
Company provides joint-liability guarantee for the above loans.
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Financial statements for the year ended 31 December 2020
XIV. 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, which develops a platform that integrates panels, modules,
whole widget and services. This business focuses on providing high-quality
smartphones, tablet PCs, laptops, monitors, TVs, vehicles, electronic shelf label (ESL),
tiled display screens, industrial control, wearable devices, VR/AR devices, electronic
tags, white goods, healthcare, mobile payment, interactive whiteboards and other
intelligent display devices for customers. Besides, this business provides the most
competitive whole-widget smart manufacturing services for 3C display, smart IoTs,
system platform and other fields.
(b) Smart systems innovation business — The smart systems innovation business
integrates designs of system solutions. Supported by AI and big data technologies, this
business focuses on soft and hard products and services and offers integrated IoT
solutions of smart government affairs, urban beautification, smart transportation, smart
finance, smart education, smart park and smart energy.
(c) Smart medicine and engineering business — The smart medicine and engineering
business provides professional healthcare services and features the innovative
integration of medical and engineering by integrating technology and medical science.
Adhering to people-centred thought, this business focuses on family, community and
hospital and emphasizes developing four core businesses, such as health
management, health technology, digital hospital and technology services. It strives to
create interconnection among testing equipment, medical personnel and customers
through healthcare IoT platform and build an intelligent health management ecosystem
to provide customers with one-stop health services of "prevention-diagnosis and
treatment-health care”.
(d) Sensor and application solutions business — The sensor and application solutions
business integrates design and manufacturing of B2B system solutions. This business
focuses on medical detection, household detection, communication and transportation,
smart homes and other fields to provide customers with integrated design and
manufacturing services of sensor devices; besides, this business provides sensor
system solutions of medical imaging, biological detection, smart screens, microwave
communication, fingerprint identification and the like, with products including flat panel
X-ray detectors (FPXD), digital microfluidic chips, PDLC glass, fingerprint identification
systems, etc.
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BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(e) Mini-LED business — The Mini-LED business integrates design and manufacturing of
devices and provides Mini-LED backlight products with strong reliability and high
dynamic range that allow precisely brightness adjustment for smartphones, tablet PCs,
laptops, monitors, TVs and other products; besides, it provides Mini/Micro-LED display
products with high brightness, strong reliability and high dynamic range for use in
outdoor display, commercial display and other scenarios.
(f) Others — Other service mainly includes technical development service and patent
maintenance service.
The main reason to separate the segments is that the Group independently manages
the display business, smart systems innovation business, smart medicine &
engineering integration business, sensor and application solutions business, Mini-LED
business and other businesses. As these business segments manufacture and
distribute different products, apply different manufacturing processes and specify in
gross profit, these 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.
(2) Accounting policies for the measurements of reportable segments
For the purposes of assessing segment performance, the Group’s management regularly
reviews the revenue and expenses attributable to each reportable segment. Inter-segment
sales are determined with reference to prices charged to external parties for similar orders.
Page 164
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
2020
Smart
medicine & Sensor and
Smart systems engineering application
Display innovation integration solutions Mini-LED
business business business business business Others Elimination Total
Operating income 131,970,602,256 1,328,060,494 1,522,460,282 119,817,921 - 7,372,351,461 (6,760,722,685) 135,552,569,729
Operating costs 107,769,219,236 981,563,055 724,268,025 75,405,672 - 2,213,785,494 (2,941,118,726) 108,823,122,756
2019
Smart
medicine & Sensor and
Smart systems engineering application
Display innovation integration solutions Mini-LED
business business business business business Others Elimination Total
Operating income 113,741,071,151 821,226,259 1,357,484,752 62,748,635 - 7,320,141,513 (7,243,082,146) 116,059,590,164
Operating costs 98,329,154,262 498,624,217 668,875,829 30,963,371 - 1,681,836,505 (2,763,184,888) 98,446,269,296
The Company develops various businesses by using common assets and liabilities and therefore, it could not analyse assets and liabilities of
each reportable segment respectively by business. Besides, the Group restates comparative information in 2019 according to segment
reporting in 2020.
Page 165
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(3) Secondary segment reporting (regional segments)
(a) The geographical information is based on the location of customers receiving services
or goods.
The information of the Group’s external transactions based by locations is as follows:
Operating income from external
customers
2020 2019
Chinese mainland 65,241,679,286 59,444,025,767
Other Asian countries and regions 54,895,384,319 45,030,859,656
Europe 4,804,966,123 4,511,337,220
America 10,316,934,261 6,911,922,720
Other regions 293,605,740 161,444,801
Total 135,552,569,729 116,059,590,164
(b) Divided based on asset locations
The geographical location of the specified non-current assets is based on the physical
location of the asset, in the 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 jointly controlled enterprises. Most
of the non-current assets in the Group are located in the Chinese mainland.
(4) Major customers
Operating income of display business from which is over 10% of the Group’s total operating
income ended up with 2 customers (2019: 2 customers). The operating income from these
customers represented RMB 35,420,533,749 (2019: RMB 30,980,334,746), which was
approximately 26% (2019: 27%) of the Group’s total operating income.
XV. Notes to the Company’s financial statements
1 Cash at bank and on hand
2020 2019
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
Cash on hand
USD 5 6.5249 31 5 6.9762 35
HKD 165 0.8416 139 165 0.8958 148
JPY 51,325 0.0632 3,244 51,325 0.0641 3,290
KRW 420,000 0.0060 2,520 420,000 0.0060 2,520
Other foreign currencies 16,662 16,943
Sub-total 22,596 22,936
Bank deposits
RMB 2,694,966,600 1,355,519,593
USD 257,341,260 6.5249 1,679,125,986 333,055,313 6.9762 2,323,460,475
HKD 1,641,906 0.8416 1,381,828 1,972,588 0.8958 1,767,044
Sub-total 4,375,474,414 3,680,747,112
Total 4,375,497,010 3,680,770,048
Including: Total overseas deposits were equivalent to RMB 150,742 (2019: RMB 161,168).
Page 166
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
2 Accounts receivable
(1) The Company’s accounts receivable by customer type:
31 December 31 December
2020 2019
Amounts due from subsidiaries 3,988,518,583 659,753,039
Amounts due from other customers 5,995,278 7,044,176
Sub-total 3,994,513,861 666,797,215
Less: Provision for bad and doubtful debts 20,301,553 20,264,100
Total 3,974,212,308 646,533,115
(2) The ageing analysis of accounts receivable is as follows:
Ageing 2020 2019
Within 1 year (inclusive) 3,813,737,996 646,534,878
Over 1 year but within 2 years (inclusive) 163,379,898 2,866,370
Over 2 years but within 3 years (inclusive) - -
Over 3 years 17,395,967 17,395,967
Sub-total 3,994,513,861 666,797,215
Less: Provision for bad and doubtful debts 20,301,553 20,264,100
Total 3,974,212,308 646,533,115
The ageing is counted starting from the date when accounts receivable are recognised.
(3) Accounts receivable by provisioning method
2020
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 5,283,008 0% 5,283,008 100% -
- Customers with low credit risk 3,988,518,583 100% 14,979,329 0% 3,973,539,254
Collective assessment
- Customers with moderate credit risk 712,270 0% 39,216 6% 673,054
Total 3,994,513,861 100% 20,301,553 1% 3,974,212,308
Page 167
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
2019
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 5,283,008 1% 5,283,008 100% -
- Customers with low credit risk 660,348,948 99% 14,979,329 2% 645,369,619
Collective assessment
- Customers with moderate credit risk 1,165,259 0% 1,763 0% 1,163,496
Total 666,797,215 100% 20,264,100 3% 646,533,115
(4) Additions and recoveries of provision for bad and doubtful debts during the year:
2020 2019
Balance at the beginning of the year 20,264,100 2,889,866
Charge during the year 37,453 17,416,444
Written-off during the year - 42,210
Balance at the end of the year 20,301,553 20,264,100
For the year ended 31 December 2020, the Company had no individually significant write-off
or recovery of doubtful debts which had been fully or substantially made in prior years.
(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB 3,706,332,124,
amounting to 93% of the 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.
3 Other receivables
31 December 31 December
Note 2020 2019
Dividends receivable (1) 460,261,502 941,634,611
Others (2) 15,885,213,081 3,885,763,483
Total 16,345,474,583 4,827,398,094
Page 168
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(1) Dividends receivable
31 December 31 December
2020 2019
Yinghe Century - 572,694,778
Hefei BOE - 350,000,000
Beijing BOE Land Co., Ltd. - 18,939,833
Chongqing BOE Optoelectronics Technology
Co., Ltd. 400,000,000 -
Beijing Electronics Zone Investment and
Development Co., Ltd. 1,842,137 -
BOE (Korea) Co., Ltd. 6,125,106 -
Beijing Matsushita Colour Innovation Co., Ltd. 52,294,259 -
Total 460,261,502 941,634,611
(2) Others
(a) The Company’s other receivables by customer type:
31 December 31 December
Customer type 2020 2019
Amounts due from subsidiaries 15,710,102,798 3,889,330,494
Amounts due from other related parties 14,061,469 603,515
Amounts due from other customers 210,988,466 28,545,610
Sub-total 15,935,152,733 3,918,479,619
Less: Provision for bad and doubtful debts 49,939,652 44,600,216
Total 15,885,213,081 3,873,879,403
(b) The Company’s other receivables by currency:
2020 2019
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 15,935,152,733 3,930,341,042
HKD - - - 25,293 0.8958 22,657
Sub-total 15,935,152,733 3,930,363,699
Less: Provision for bad and
doubtful debts 49,939,652 44,600,216
Total 15,885,213,081 3,885,763,483
Page 169
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(c) The ageing analysis of other receivables of the Company is as follows:
2020 2019
Within 1 year (inclusive) 12,252,487,143 3,734,855,375
Over 1 year but within 2 years (inclusive) 3,610,709,401 59,484,488
Over 2 years but within 3 years (inclusive) 19,445,996 56,743,629
Over 3 years 52,510,193 79,280,207
Sub-total 15,935,152,733 3,930,363,699
Less: Provision for bad and doubtful debts 49,939,652 44,600,216
Total 15,885,213,081 3,885,763,483
The ageing is counted starting from the date when other receivables are recognised.
(3) Other receivables by provisioning method
2020
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment 49,939,652 0% 49,939,652 100% -
Collective assessment 15,885,213,081 100% - 0% 15,885,213,081
Total 15,935,152,733 100% 49,939,652 0% 15,885,213,081
2019
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment 44,600,216 1% 44,600,216 100% -
Collective assessment 3,873,879,403 99% - 0% 3,885,763,483
Total 3,918,479,619 100% 44,600,216 1% 3,885,763,483
(e) Movements of provisions for bad and doubtful debts
2020 2019
Balance at the beginning of the year 44,600,216 -
Charge for the year 5,339,436 45,142,306
Written-off during the year - 542,090
Balance at the end of the year 49,939,652 44,600,216
Page 170
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(d) Other receivables categorised by nature
Nature of other receivables 2020 2019
Transaction amount 15,844,170,864 3,889,330,494
Others 90,981,869 41,033,205
Sub-total 15,935,152,733 3,930,363,699
Less: Provision for bad and doubtful debts 49,939,652 44,600,216
Total 15,885,213,081 3,885,763,483
(e) Five largest other receivables by debtor at the end of the year
Other receivables at the end of the year due from the top five debtors of the Company
amounted to RMB 14,636,627,155 in total, most of which are borrowings. No provision
is made for bad and doubtful debts after assessment.
4 Other current assets
2020 2019
VAT on tax credits 45,621,676 17,011,521
Others 132,140,042 92,486,376
Total 177,761,718 109,497,897
5 Long-term equity investments
(1) The Company’s long-term equity investments by category:
2020 2019
Investments in subsidiaries 179,426,966,866 157,203,548,708
Investments in associates and joint ventures 2,800,090,342 2,278,316,052
Sub-total 182,227,057,208 159,481,864,760
Less: Provision for impairment 92,000,000 92,000,000
Total 182,135,057,208 159,389,864,760
In previous year, the Company made provision for impairment of investment losses in its
subsidiaries, Special Display and Vacuum Technology, which amounted to RMB 60,000,000
and RMB 32,000,000 respectively.
Page 171
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(2) Investments in subsidiaries:
Balance of Balance of
provision for provision for
Balance at the Balance at impairment at impairment at
beginning of Decrease the end of the beginning of the end of
Subsidiary the year Increase during the year during the year the year the year the year
Increase in Share-based
investments payments
Beijing BOE Optoelectronics
Technology Co., Ltd. 4,172,288,084 - 685,343 - 4,172,973,427 - -
Chengdu BOE Optoelectronics
Technology Co., Ltd. 22,703,149,991 2,300,000,000 1,344,328 - 25,004,494,319 - -
Hefei BOE Optoelectronics Technology
Co., Ltd. 9,000,000,000 - 846,416 - 9,000,846,416 - -
Beijing BOE Display Technology
Co., Ltd. 17,418,713,599 - 2,628,382 - 17,421,341,981 - -
Hefei Xinsheng Optoelectronics
Technology Co., Ltd. 20,082,979,185 - 1,039,425 - 20,084,018,610 - -
Ordos Yuansheng Optoelectronics
Co., Ltd. 11,804,000,000 - 123,592 - 11,804,123,592 - -
Chongqing BOE Optoelectronics
Technology Co., Ltd. 19,565,354,599 - 511,822 - 19,565,866,421 - -
Fuzhou BOE Optoelectronics
Technology Co., Ltd. 14,300,042,079 - 560,840 - 14,300,602,919 - -
Beijing BOE Vision Electronic
Technology Co., Ltd. 3,865,344,500 228,155,500 36,288 - 4,093,536,288 - -
Beijing BOE Vacuum Electronics
Co., Ltd. 19,250,000 - 8,410 - 19,258,410 - -
Beijing BOE Vacuum Technology
Co., Ltd. 32,000,000 - - - 32,000,000 32,000,000 32,000,000
Beijing BOE Special Display
Technology Co., Ltd. 100,000,000 - 113,695 - 100,113,695 60,000,000 60,000,000
Beijing Yinghe Century Co., Ltd. 333,037,433 - 237,796 - 333,275,229 - -
BOE Optical Science and technology
Co., Ltd. 658,961,914 - 80,760 - 659,042,674 - -
BBOE Hyundai LCD Inc. 31,038,525 - 143,435 - 31,181,960 - -
BOE (Hebei) Mobile Technology
Co., Ltd. 1,353,651,020 - 40,543 - 1,353,691,563 - -
Beijing BOE Multimedia Technology
Co., Ltd. 400,000,000 - - - 400,000,000 - -
Beijing BOE Energy Technology
Co., Ltd. 850,000,000 - 110,069 - 850,110,069 - -
Beijing BOE Life Technology
Co., Ltd. 10,000,000 - - - 10,000,000 - -
Beijing Zhongxiangying Technologies
Co., Ltd. 10,000,000 40,000,000 14,864 - 50,014,864 - -
BOE Semi-conductor Co., Ltd. 9,450,000 - - - 9,450,000 - -
BOE Optoelectronics Holding Co., Ltd. 2,768,662,024 443,299,514 - - 3,211,961,538 - -
Beijing Asahi Electronic Materials
Co., Ltd. 30,888,470 - - (30,888,470) - - -
BOE Healthcare Investment &
Management Co., Ltd. 2,953,154,069 3,140,000,000 13,515 - 6,093,167,584 - -
Hefei BOE Display Technology
Co., Ltd. 1,998,765,323 - 573,616 - 1,999,338,939 - -
Beijing BOE Technology Development
Co., Ltd. 1,000,000 - 18,591 - 1,018,591 - -
BOE Wisdom IOT Technology Co., Ltd. 90,670,000 51,330,000 344,796 - 142,344,796 - -
Hefei BOE Zhuoyin Technology
Co., Ltd. 600,000,000 - 66,764 - 600,066,764 - -
Beijing BOE Land Co., Ltd. 7,731,474 - 21,499 - 7,752,973 - -
Beijing BOE Sales Co., Ltd. 30,500,000 - 13,199 - 30,513,199 - -
BOE KOREA Co., Ltd. 788,450 - 84,867 - 873,317 - -
Kunming BOE Display Technology
Co., Ltd. 670,000,000 620,830,000 88,433 - 1,290,918,433 - -
Mianyang BOE Optoelectronics
Technology Co., Ltd. 14,696,980,083 1,280,000,000 380,832 - 15,977,360,915 - -
Beijing BOE Sensing Technology
Co., Ltd. 50,000,000 - 348,624 - 50,348,624 - -
Hunan BOE Yiyun Science &
Technology Co., Ltd. 90,000,000 100,000,000 - (190,000,000) - - -
Wuhan BOE Optoelectronics
Technology Co., Ltd. 4,164,560,516 1,833,990,000 332,380 - 5,998,882,896 - -
Chongqing BOE Display Technology
Co., Ltd. 2,308,857,370 1,649,934,000 190,627 - 3,958,981,997 - -
Fuzhou BOE Display Technology
Co., Ltd. 21,730,000 - 18,591 - 21,748,591 - -
Beijing Matsushita Colour Innovation
Co., Ltd. - - 64,903 - 64,903 - -
BOE Innovation Investment Co., Ltd. - 440,000,000 - - 440,000,000 - -
Hefei BOE Xingyu Technology
Co., Ltd. - 219,139,000 58,471 - 219,197,471 - -
BOE Education Technology Co., Ltd. - 25,000,000 73,981 - 25,073,981 - -
Dongfang Chengqi (Beijing) Business
Technology Co., Ltd. - 8,000,000 - - 8,000,000 - -
BOE Smart Technology Co., Ltd. - 1,440,000,000 - - 1,440,000,000 - -
Nanjing CEC Panda FPD Technology
Co., Ltd. - 5,591,221,400 - - 5,591,221,400 - -
Chengdu CEC Panda Display
Technology Co., Ltd. - 3,020,000,000 - - 3,020,000,000 - -
Others* - - 2,187,517 - 2,187,517 - -
Total 157,203,548,708 22,430,899,414 13,407,214 (220,888,470) 179,426,966,866 92,000,000 92,000,000
*Others are the equity incentive funds paid for subsidiaries of the subsidiaries of BOE Group
to be accrued.
For information about the major subsidiaries of the Company, refer to Note VII. 1.
Page 172
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(3) Investments in associates:
Movements during the year
Declared Balance of
Balance at the Investment Other distribution of provision for
beginning of Increase in Decrease in income under comprehensive Other equity cash dividends or Balance at the impairment at the
Investee the year investments investments equity method income movements profits end of the year end of the year
Beijing Nissin Electronics Precision
Component Co., Ltd. 483,248 - - (219,390) - - - 263,858 -
Beijing Nittan Electronic Co., Ltd. 64,808,755 - - 8,588,066 - - (2,000,000) 71,396,821 -
Erdos BOE Energy Investment Co., Ltd. 9,348,226 - - (1,185,089) - - - 8,163,137 -
Beijing Infi-Hailin Venture Investment
Co., Ltd. 663,215 - - 503,309 - - - 1,166,524 -
Beijing Infi-Hailin Venture Investment
(Limited Partnership) 74,384,952 - (79,000,000) (210,320) 5,702,455 (877,087) - - -
TPV Display Technology (China) Limited 24,545,664 - - 282,600 - - - 24,828,264 -
Beijing Xindongneng Investment Fund
(Limited Partnership) 1,944,514,849 - (427,412,416) 410,089,641 130,950,251 - - 2,058,142,325 -
Beijing Xindongneng Investment
Management Co., Ltd. 7,410,061 - - 2,511,565 - - (2,000,000) 7,921,626 -
Shenzhen Yunyinggu Technology Co., Ltd. 12,715,084 - - (5,368,560) 60,150 14,504,213 - 21,910,887 -
Beijing Xloong Technologies Co., Ltd. 22,237,044 - - (2,470,104) - - - 19,766,940 -
Beijing Innovation Industry Investment
Co., Ltd. 100,363,345 100,000,000 - 3,699,909 - - - 204,063,254 -
Beijing Electric Control Industry Investment
Co., Ltd. 16,841,609 183,000,000 - 679,994 (319,767) 81,278 - 200,283,114 -
Hunan BOE Yiyun Science & Technology
Co., Ltd. - 190,000,000 - (27,412,408) - 19,596,000 - 182,183,592 -
Total 2,278,316,052 473,000,000 (506,412,416) 389,489,213 136,393,089 33,304,404 (4,000,000) 2,800,090,342 -
Page 173
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
6 Intangible assets
Patent and
proprietary Computer
Land use rights technology software Others Total
Book value
Balance at the beginning of the year 794,939,047 1,102,554,707 299,265,973 79,529,998 2,276,289,725
Additions during the year
- Purchases - - 11,893,193 4,797,580 16,690,773
- Transfers from construction
in progress - - 62,998,261 - 62,998,261
Balance at the end of the year 794,939,047 1,102,554,707 374,157,427 84,327,578 2,355,978,759
Less: Accumulated amortisation
Balance at the beginning of the year 52,495,508 595,845,951 133,692,030 623,972 782,657,461
Charge during the year 27,738,406 100,343,266 64,907,673 262,126 193,251,471
Balance at the end of the year 80,233,914 696,189,217 198,599,703 886,098 975,908,932
Carrying amounts
At the end of the year 714,705,133 406,365,490 175,557,724 83,441,480 1,380,069,827
At the beginning of the year 742,443,539 506,708,756 165,573,943 78,906,026 1,493,632,264
7 Deferred tax assets/deferred tax liabilities
31 December 2020 31 December 2019
Deductible/(taxabl Deductible/(taxabl
e) temporary Deferred tax e) temporary Deferred tax
Item differences assets/(liabilities) differences assets/(liabilities)
Deferred tax assets:
Provision for impairment of assets 185,358,501 27,803,775 179,981,612 26,997,242
Changes in fair value of investments in
other equity instruments 121,789,193 18,268,379 135,444,338 20,316,651
Depreciation of fixed assets 145,995,720 21,899,358 111,653,214 16,747,982
Advance payments received - - 1,906,248,410 285,937,261
Others 37,699,653 5,654,948 155,622,634 23,343,394
Sub-total 490,843,067 73,626,460 2,488,950,208 373,342,530
Amount offset (73,626,460) (13,074,064)
Balance after offsetting - 360,268,466
Deferred tax liabilities:
Royalty fees due from subsidiaries (2,975,000,000) (446,250,000) - -
Others (87,160,432) (13,074,064) (87,160,432) (13,074,064)
Sub-total (3,062,160,432) (459,324,064) (87,160,432) (13,074,064)
Amount offset 73,626,460 13,074,064
Balance after offsetting (385,697,604) -
Page 174
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
8 Advance payments received
Item 31 December 2020 1 January 2020 31 December 2019
Advances from related parties 8,735,465 110,018 2,108,152,470
Advances from third parties 9,550,993 9,366,525 9,416,525
Total 18,286,458 9,476,543 2,117,568,995
9 Employee benefits payable
(1) Employee benefits payable:
Balance at Balance at
1 January Accrued Decreased 31 December
Note 2020 during the year during the year 2020
Short-term employee benefits (2) 241,384,459 1,190,821,753 (924,181,005) 508,025,207
Post-employment benefits
- defined contribution plans (3) 10,821,616 66,029,897 (68,816,567) 8,034,946
Termination benefits - 6,942,728 (6,942,728) -
Total 252,206,075 1,263,794,378 (999,940,300) 516,060,153
Balance at Balance at
1 January Accrued Decreased 31 December
Note 2019 during the year during the year 2019
Short-term employee benefits (2) 191,160,309 912,098,158 (861,874,008) 241,384,459
Post-employment benefits
- defined contribution plans (3) 9,978,952 83,250,064 (82,407,400) 10,821,616
Termination benefits - 2,780,894 (2,780,894) -
Total 201,139,261 998,129,116 (947,062,302) 252,206,075
(2) Short-term employee benefits
Balance at Balance at
1 January Accrued Decreased 31 December
2020 during the year during the year 2020
Salaries, bonuses, allowances 188,598,673 1,014,874,667 (764,036,829) 439,436,511
Staff welfare - 45,099,922 (45,099,922) -
Social insurance
Medical insurance 14,688,541 38,992,104 (38,858,702) 14,821,943
Work-related injury insurance 1,104,889 2,639,691 (2,669,154) 1,075,426
Maternity insurance 1,777,726 672,235 (1,212,742) 1,237,219
Housing fund 3,854,824 55,069,148 (53,085,430) 5,838,542
Labour union fee, staff and workers’
education fee 31,359,806 33,473,986 (19,218,226) 45,615,566
Others - - - -
Total 241,384,459 1,190,821,753 (924,181,005) 508,025,207
Page 175
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
Balance at Balance at
1 January Accrued Decreased 31 December
2019 during the year during the year 2019
Salaries, bonuses, allowances 149,498,505 664,206,819 (625,106,651) 188,598,673
Staff welfare - 46,521,914 (46,521,914) -
Social insurance
Medical insurance 13,027,783 44,619,713 (42,958,955) 14,688,541
Work-related injury insurance 939,307 2,862,644 (2,697,062) 1,104,889
Maternity insurance 1,445,194 3,536,732 (3,204,200) 1,777,726
Housing fund 2,846,017 54,005,271 (52,996,464) 3,854,824
Labour union fee, staff and workers’
education fee 23,403,503 26,939,926 (18,983,623) 31,359,806
Others - 69,405,139 (69,405,139) -
Total 191,160,309 912,098,158 (861,874,008) 241,384,459
(3) Post-employment benefits - defined contribution plans
Balance at Balance at
1 January Accrued Decreased 31 December
2020 during the year during the year 2020
Basic pension insurance 11,489,403 55,939,880 (59,412,804) 8,016,479
Unemployment insurance 302,098 2,775,842 (2,706,456) 371,484
Annuity (969,885) 7,314,175 (6,697,307) (353,017)
Total 10,821,616 66,029,897 (68,816,567) 8,034,946
Balance at Balance at
1 January Accrued Decreased 31 December
2019 during the year during the year 2019
Basic pension insurance 9,772,407 73,613,317 (71,896,321) 11,489,403
Unemployment insurance 206,545 3,449,922 (3,354,369) 302,098
Annuity - 6,186,825 (7,156,710) (969,885)
Total 9,978,952 83,250,064 (82,407,400) 10,821,616
10 Other payables
Note 2020 2019
Dividends payable 6,451,171 6,451,171
Others (1) 6,535,467,510 5,254,019,803
Total 6,541,918,681 5,260,470,974
Page 176
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
(1) Others
(a) The Company’s other payables by category are as follows:
Note 2020 2019
Amounts due to/from subsidiaries 3,050,656,626 4,739,139,471
Equity acquisition fee VI. 1 2,236,488,561 -
Repurchase obligation of restricted
shares V. 40 875,333,536 -
Purchase of projects, equipment and
intangible assets 257,829,238 345,872,758
Others 115,159,549 169,007,574
Total 6,535,467,510 5,254,019,803
(b) The Company’s other payables by currency:
2020 2019
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 5,042,463,687 2,257,788,363
USD 228,735,332 6.5249 1,492,475,170 414,300,937 6.9762 2,890,246,197
JPY 8,364,763 0.0632 528,653 157,972,312 0.0641 10,126,025
Total 6,535,467,510 5,158,160,585
11 Long-term loans
2020 2019
Credited/ Credited/
collateralised collateralised
guaranteed/ guaranteed/
RMB pledged RMB pledged
Bank loans
- RMB 46,207,924,194 Credited 38,801,142,361 Credited
Less: Long-term loans due within one year 7,847,210,073 Credited 5,490,440,787 Credited
Total 38,360,714,121 33,310,701,574
The interest rate of RMB long-term loans for the Company ranged from 0% to 4.75% in 2020
(2019: 0% to 4.75%).
12 Deferred income
Balance at Amounts Balance at
the beginning of Additions recognised in the end of
Item the year during the year other income Other changes the year
- related to assets 4,515,402,780 1,696,830 (903,180,554) (1,696,830) 3,612,222,226
- related to income 111,990,476 11,567,200 (12,437,456) (90,000,000) 21,120,220
Total 4,627,393,256 13,264,030 (915,618,010) (91,696,830) 3,633,342,446
Page 177
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
13 Capital reserve
Other capital
Item Share premium reserves Total
Balance at the beginning of the year 37,546,517,053 61,522,632 37,608,039,685
Add: Other movements in equity of associates - 33,304,404 33,304,404
Equity-settled share-based payments - (945,264,723) (945,264,723)
Balance at the end of the year 37,546,517,053 (850,437,687) 36,696,079,366
14 Other comprehensive income
Item Movements during the year
Add: Transfer of
other
Balance at the comprehensive
beginning of Less: Income tax income to retained Balance at the
the year Before-tax amount expense earnings end of the year
Items that will not be reclassified to profit or
loss 193,638,576 138,168,402 2,048,272 (239,057,408) 90,701,298
Including: Other comprehensive income
recognised under equity
method 308,766,264 136,381,254 - (250,925,408) 194,222,110
Changes in fair value of
investments in other equity
instruments (115,127,688) 1,787,148 2,048,272 11,868,000 (103,520,812)
Items that may be reclassified to profit or
loss - 11,835 - - 11,835
Total 193,638,576 138,180,237 2,048,272 (239,057,408) 90,713,133
15 Retained earnings
Item 2020 2019
Retained earnings at the beginning of the year
(before adjustment) 4,781,488,839 Not applicable
Add: Changes in accounting policies 4,805,155,027 Not applicable
Retained earnings at the beginning of the year
(after adjustment) 9,586,643,866 2,609,929,782
Add: Net profits for the year 3,739,191,584 3,685,564,456
Less: Appropriation for statutory surplus reserve 373,919,158 368,556,446
Interest on holders of other equity instruments 485,925,480 56,109,589
Dividends to ordinary shares 695,967,975 1,043,951,963
Transfer of other comprehensive income to
retained earnings (215,151,667) 45,387,401
Effect of accounting for disposal of
subsidiaries to equity method 31,086,473 -
Retained earnings at the end of the year 11,954,088,031 4,781,488,839
Page 178
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
16 Operating income
2020 2019
Item Income Income
Principal activities 3,850,224,763 4,103,362,231
Other operating activities 691,451,432 682,025,488
Total 4,541,676,195 4,785,387,719
Including: Income related to the new revenue
standard 4,418,761,325 Not applicable
Revenue related to the lease standard 122,914,870 Not applicable
Details of operating income:
2019
Operating income from principal activities
- Technology development income 4,103,362,231
Other operating income
- Rental income of investment properties 122,723,329
- Others 559,302,159
Total 4,785,387,719
17 Taxes and surcharges
2020 2019
Property tax 29,195,630 33,323,560
Land use tax 2,834,360 2,849,332
Stamp duty 7,909,675 4,682,297
City maintenance and construction tax 405,990 353,192
Education surcharges and local education
surcharges 289,993 252,276
Others 253,948 27,864
Total 40,889,596 41,488,521
Page 179
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
18 Research and development expenses
2020 2019
Staff cost 686,052,717 544,087,165
Material expenses 70,093,725 74,036,997
Depreciation and amortisation 221,602,752 242,794,178
Commissioned and cooperative development 533,483,606 853,951,463
Others 591,662,325 469,881,484
Total 2,102,895,125 2,184,751,287
19 Financial expenses
2020 2019
Interest expenses from loans 970,259,855 934,776,554
Interest income from bank deposits (37,793,976) (41,156,445)
Net exchange (income)/losses (17,019,010) 7,509,490
Other financial expenses 1,091,676 2,751,033
Total 916,538,545 903,880,632
20 Other income
2020 2019
Government grants related to assets 903,180,554 901,541,269
Government grants related to income 67,808,613 43,858,943
Total 970,989,167 945,400,212
The amount of government grants received by the Company in 2020 and directly included in
other income was RMB 55,371,157.
Page 180
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
21 Investment income
2020 2019
Income from long-term equity investments
accounted for using cost method 1,608,291,389 1,889,790,465
Income from long-term equity investments
accounted for using equity method 416,901,621 244,595,829
Investment income from disposal of long-term
equity investments 401,239,648 49,028,075
Dividend income from investments in other equity
instruments 3,252,444 2,354,733
Including: Dividend income from investments in
other equity instruments derecognised
during the year - 471,354
Dividend income from investments in
other equity instruments held at the
balance sheet date 3,252,444 1,883,379
Total 2,429,685,102 2,185,769,102
22 Income tax expenses
Note 2020 2019
Current tax expense for the period based
on tax law and regulations 449,586,180 313,149,954
Changes in deferred tax assets/liabilities (1) (198,212,508) (82,338,912)
Total 251,373,672 230,811,042
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
2020 2019
Origination and reversal of temporary differences (198,212,508) (82,338,912)
(2) Reconciliation between income tax expenses and accounting profit:
Item 2020 2019
Profit before taxation 3,990,565,256 3,916,375,498
Expected income tax expense at tax rate of 15% 598,584,788 587,456,325
Add: Non-deductible expenses 47,469,071 5,063,076
Non-taxable income (304,718,886) (279,640,682)
Tax deduction for R&D activities (89,961,301) (74,503,110)
Others - (7,564,567)
Income tax expenses 251,373,672 230,811,042
Page 181
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
23 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
2020 2019
(a) Reconciliation of net profit to cash flows from
operating activities:
Net profit 3,739,191,584 3,685,564,456
Add: Credit losses 5,376,889 62,558,750
Impairment losses - 32,000,000
Depreciation of fixed assets and
investment properties 135,264,681 122,776,599
Amortisation of intangible assets 165,094,127 180,015,643
Amortisation of long-term deferred
expenses 36,414,535 34,805,818
Financial expenses 1,044,078,606 996,740,951
Investment income (2,429,685,102) (2,185,769,102)
Changes in deferred revenue tax assets
and liabilities (196,164,236) (69,473,918)
Increase in gross inventories (4,686,882) (4,646,260)
(Increase)/Decrease in operating (1,521,836,219)
receivables 465,794,325
Decrease in operating payables (857,601,770) (869,099,802)
Net cash inflow from operating activities 115,446,213 2,451,267,460
(b) Net changes in cash and cash equivalents:
2020 2019
Cash and cash equivalents at the end of the
year 4,360,065,216 3,680,770,048
Less: Cash and cash equivalents at the
beginning of the year 3,680,770,048 3,829,814,050
Net increase/(decrease) in cash and cash
equivalents 679,295,168 (149,044,002)
(2) Details of cash and cash equivalents
2020 2019
Cash on hand 22,596 22,936
Bank deposits available on demand 4,360,042,620 3,680,747,112
Closing balance of cash and cash equivalents 4,360,065,216 3,680,770,048
Note: Cash and cash equivalents disclosed above exclude other monetary fund with
restricted usage.
24 Assets with restrictive ownership title
As at 31 December 2020, the Company has no assets with restrictive ownership title.
Page 182
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
XVI. Extraordinary gains and losses in 2020
2020 2019
Investment income from disposal of long-
term equity investments 376,344,290 48,846,682
Losses from disposal of non-current assets (2,912,119) (28,506,546)
Government grants recognised through
profit or loss (excluding those that are
closely related to the normal business
operations of the Company and that are
in compliance with national policies and
are subject to constant or fixed amount
according to certain standards) 2,332,107,692 2,640,634,861
Gains or losses arising from changes in fair
value of financial assets held for trading,
and investment income from disposal of
financial assets held for trading 82,698,484 112,668,244
Reversal of provision for bad and doubtful
debts of receivables assessed on an
individual basis 15,447,820 1,498,805
Other non-operating income and expenses
besides items above 65,391,368 96,799,305
Other items qualified as extraordinary gain
and loss Note 2 - 795,126,980
Less: Tax effect 185,966,533 285,904,312
Total 2,683,111,002 3,381,164,019
Including: Extraordinary gains affecting net
profit of equity shareholders of
the Company 2,365,173,118 3,085,437,188
Extraordinary gains affecting net
profit of equity shareholders of
the non-controlling
shareholders 317,937,884 295,726,831
Note 1: Extraordinary gain and loss items listed above are presented in the amount before
taxation.
Note 2: The Company’s capital commitment and conversion obligations to non-controlling
interests of Hefei Xinsheng are included in financial liabilities in accordance with the
relevant accounting standards for financial instruments. In 2019, the Company
signed an "Equity Transfer Agreement" with Hefei Heping Investment Co., Ltd.
("Hefei Heping") that the Company agreed to receive 15.3846% of equity interest in
Hefei Xinsheng held by Hefei Heping, after which, Hefei Xinsheng becomes a
wholly-owned subsidiary of the Company. According to the requirements of the
Accounting Standard, the difference of RMB 795,126,980 between the cash
payment and the book value of this financial liability is included in the current profit
and loss.
Page 183
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
XVII. Return on net assets and earnings per share
In accordance with “Regulation on the Preparation of Information Disclosures by Companies
Issuing Securities No.9 – 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 5.15% 0.13 0.13
Net profit excluding extraordinary gain and
loss attributable to the Company’s ordinary
equity shareholders 2.47% 0.06 0.06
1 Calculation of earnings per share
(1) Basic earnings per share
For calculation of the basic earnings per share, refer to Note V.58.
(2) Basic earnings per share excluding extraordinary gain and loss
Basic earnings per share excluding extraordinary gain and loss is calculated as dividing
consolidated net profit excluding extraordinary gain and loss attributable to ordinary
shareholders of the Company by the weighted average number of ordinary shares
outstanding:
2020 2019
Consolidated net profit attributable to ordinary
shareholders of the Company 4,549,702,472 1,862,534,282
Extraordinary gains and losses attributable to
ordinary shareholders of the Company 2,365,173,118 3,085,437,188
Consolidated net profit excluding extraordinary gain
and loss attributable to the Company’s ordinary
equity shareholders 2,184,529,354 (1,222,902,906)
Weighted average number of ordinary shares
outstanding 34,684,107,122 34,798,398,763
Basic earnings per share excluding extraordinary
gain and loss (RMB/share) 0.06 (0.04)
Page 184
BOE Technology Group Co., Ltd.
Financial statements for the year ended 31 December 2020
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:
2020 2019
Consolidated net profit attributable to ordinary
shareholders of the Company 4,549,702,472 1,862,534,282
Weighted average amount of consolidated net
assets 88,422,792,378 86,381,158,426
Weighted average return on net assets 5.15% 2.16%
Calculation of weighted average amount of consolidated net assets is as follows:
2020 2019
Consolidated net assets at the beginning of the
year 87,044,972,202 85,849,388,234
Effect of consolidated net profit attributable to
ordinary shareholders of the Company 2,274,851,236 931,267,141
Effect of repurchase of treasury shares (666,258,231) -
Distribution of profits to ordinary shareholders (347,983,988) (521,975,982)
Effect of change in shareholding ratio of
subsidiaries 24,957,407 4,049,092
Effect of movements in amounts attributable to
ordinary shareholders of the Company 92,253,752 183,465,298
Weighted average amount of consolidated net
assets 88,422,792,378 86,446,193,783
(2) Weighted average return on net assets excluding extraordinary gain and loss
Weighted average return on net assets excluding extraordinary gain and loss is calculated as
dividing consolidated net profit excluding extraordinary gain and loss attributable to ordinary
shareholders of the Company by the weighted average amount of consolidated net assets:
2020 2019
Consolidated net profit excluding extraordinary gain
and loss attributable to the Company’s ordinary
equity shareholders 2,184,529,354 (1,222,902,906)
Weighted average amount of consolidated net
assets 88,422,792,378 86,446,193,783
Weighted average return on net assets excluding
extraordinary gain and loss 2.47% (1.41%)
Page 185