BOE Technology Group Co., Ltd.
ENGLISH TRANSLATION OF FINANCIAL STATEMENTS
FOR THE YEAR 1 JANUARY 2022 TO 31 DECEMBER 2022
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 2303647 号
The Shareholders of BOE Technology Group Co., Ltd.:
Opinion
We have audited the accompanying financial statements of BOE Technology Group Co., Ltd.
(“BOE”), which comprise the consolidated and company balance sheets as at 31 December
2022, the consolidated and company income statements, the consolidated and company
cash flow statements, the consolidated and company statements of changes in shareholders’
equity for the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects,
the consolidated and company financial position of BOE as at 31 December 2022, and the
consolidated and company financial performance and cash flows of BOE for the year then
ended in accordance with Accounting Standards for Business Enterprises issued by the
Ministry of Finance of the People’s Republic of China.
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified Public
Accountants (“CSAs”). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of BOE in accordance with the China Code of Ethics for Certified Public
Accountants (“the Code”), and we have fulfilled our other ethical responsibilities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Page 1 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2303647 号
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of 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” 43.
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
sampling basis to identify relevant trading
various trading terms. BOE Group judges
the transfer timing of control according to terms, and evaluate whether the
the trading terms, and recognises revenue accounting policies for revenue
accordingly. Depending on the trading recognition of BOE Group meet the
terms, the income is usually recognized requirements of the Enterprise
when the goods are delivered and received, Accounting Standards;
or when they are received by the carrier. On a sampling basis and according to
We identified the recognition of BOE different trading terms, reconcile the
Group’s revenue as a key audit matter revenue recorded in the current year to
because revenue, as one of BOE Group’s relevant supporting files such as relevant
key performance indicators, involves various orders, shipping orders, sales invoices,
trading terms, and there is an inherent risk customs declarations, bills of lading,
that revenue may not be recognised in a delivery receipts, etc. to evaluate whether
correct period. revenue is recognised in accordance with
the accounting policy of BOE Group;
On a sampling basis and according to
different trading terms, cross check the
revenue recorded before and after the
balance sheet date against relevant
supporting files such as relevant orders,
shipping orders, sales invoices, customs
declarations, bills of lading, delivery
receipts, etc. to evaluate whether
revenue is recorded in the appropriate
period;
Page 2 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2303647 号
Key Audit Matters (continued)
Revenue recognition (continued)
Refer to Note III. 23 of the accounting policy to the financial statements and Note V. 43 to to
the consolidated financial statements.
How the matter was addressed in our
The Key Audit Matter
audit
Select a sample based on the
characteristics and nature of customer's
transaction, and perform confirmation
procedures on the balance of accounts
receivable as at the balance sheet date
and the sales transaction amount during
the current year;
On a sampling basis, check the written-
back of revenue after the balance sheet
date (including sales discounts and sales
returns, etc.) with relevant supporting
documents to assess whether revenue is
recorded in the appropriate period;
Select revenue accounting entries that
meet specific risk criteria and check
related supporting documents.
Page 3 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2303647 号
Key Audit Matters (continued)
Book value of fixed assets and construction in progress
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 13, 14 and “V. Notes to the
consolidated financial statements” 14, 15.
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:
2022, the book value of fixed assets and
construction in progress amounted to RMB Evaluate the design and operation
249.373 billion. 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
Estimate the useful life and residual construction contracts, project progress
value of corresponding fixed assets. reports, etc.) on a sampling basis;
We identified the book value of fixed assets Assess whether the capitalised
and construction in progress of BOE Group commissioning expenses for the current
as a key audit matter because the valuation year are in compliance with relevant
of the book value of fixed assets and capitalization conditions; check the
construction in progress involves significant commissioning expenses with relevant
judgement from the management and it is of supporting documents on a sampling
importance to the consolidated financial basis;
statements.
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 2303647 号
Key Audit Matters (continued)
Impairment of fixed assets and intangible assets
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 19 and “V. Notes to the
consolidated financial statements” 14, 16.
How the matter was addressed in our
The Key Audit Matter audit
BOE Group principally generates revenue Our audit procedures to evaluate
from the production and sale of display impairment of fixed assets and intangible
device. Due to the fluctuation of supply- assets included the following:
demand relationship of display device and
the influence of technology upgrading, the Evaluate management’s identification of
profit level of different production lines suffer asset groups, assessment of impairment
indications, and assess the design and
dramatic fluctuation. As at 31 December
2022, the book value of fixed assets and operation effectiveness of key internal
intangible assets amounted to RMB 214.935 controls for impairment tests;
billion, the judgement on impairment Based on our understanding of BOE
indications and impairment test are material Group’s businesses and relevant
to BOE Group’s financial statements. accounting standards, evaluate
The management classifies asset groups management’s classification basis of
asset groups and judgement basis of
based on the smallest identifiable group of
assets that generates cash inflows that are impairment indications;
independent, and continuously monitors the For asset groups with impairment
trend of market of supply and demand as indications, based on our understanding
well as the technology evolution; of the industry, compare the key
comprehensively judges impairment assumptions in the calculation of
indications of each asset group in recoverable amounts used by
accordance with market trends, operating management with external available data
conditions of production lines and and historical analysis, including future
technological advanced performance, and selling prices, sales volume and discount
performs impairment test on asset groups if rate used by management, evaluate the
any impairment indication exists. key assumptions and estimations used
by the management;
For asset groups with impairment
indications, the management assesses For asset groups with significant
whether the book value of fixed assets and impairment risk, assess the competence,
intangible assets as at 31 December 2022 professional quality and objectivity of
were impaired by calculating the present experts hired by the management; and
value of expected future cash flows. adopt our own valuation experts’ work,
Calculating the present value of expected assess if discount rates used for
future cash flows requires management to estimating the present value of future
make significant judgements, especially for cash flows by management are within the
the estimation of future selling prices, sales range used by other companies in the
volume and applicable discount rate. same industry;
Page 5 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2303647 号
Key Audit Matters (continued)
Impairment of fixed assets and intangible assets (continued)
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 19 and “V. Notes to the
consolidated financial statements” 14, 16.
How the matter was addressed in our
The Key Audit Matter audit
We identified the impairment of fixed assets Our audit procedures to evaluate
and intangible assets as a key audit matter impairment of fixed assets and intangible
because the book value of fixed assets and assets included the following:
intangible assets is significant to the
financial statements; management’s Compare estimations used for calculating
significant judgements and estimations are the present value of expected future cash
involved in assessing the classification basis flows in the previous year by the
of asset groups, existence of impairment management with the actual situation in
indications and impairment test of asset this year to consider the historical
groups with impairment indications, which accuracy of management’s forecast
may exist errors or potential management results;
bias. Perform sensitivity analysis on key
assumptions, including future selling
prices, sales volume and discount rates,
used in the calculation of recoverable
amount by the management; assess how
changes in key assumptions (individually
or collectively) will lead to different results
and assess whether there are indications
of management bias in the selection of
key assumptions;
Consider whether the disclosure of
impairment of fixed assets and intangible
assets in the financial statements is
consistent with relevant accounting
policy.
Page 6 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2303647 号
Other Information
BOE’s management is responsible for the other information. The other information comprises
all the information included in 2022 annual report of BOE, other than the financial statements
and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this
regard.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with the Accounting Standards for Business Enterprises, and for
the design, implementation and maintenance of such internal control necessary to enable
that the financial statements are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is responsible for assessing BOE’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to
liquidate BOE or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing BOE’s financial reporting
process.
Page 7 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2303647 号
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with CSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on BOE’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause BOE to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Page 8 of 9
AUDITOR’S REPORT (continued)
毕马威华振审字第 2303647 号
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within BOE to express an opinion on the financial
statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence
and, where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
KPMG Huazhen LLP Certified Public Accountants
Registered in the People’s Republic of China
Su Xing (Engagement Partner)
Beijing, China Chai Jing
31 March 2023
Page 9 of 9
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2022
(Expressed in Renminbi Yuan)
Note 2022 2021
Assets
Current assets
Cash at bank and on hand V.1 68,800,307,369 80,986,835,088
Financial assets held for trading V.2 17,187,993,936 10,028,172,853
Bills receivable V.3 211,792,061 217,734,298
Accounts receivable V.4 28,203,647,569 35,503,414,820
Prepayments V.5 589,764,680 1,112,880,007
Other receivables V.6 975,809,236 1,922,828,378
Inventories V.7 22,787,814,225 27,805,161,436
Contract assets V.8 71,636,461 75,698,324
Non-current assets due within one
year 8,561,307 7,700,735
Other current assets V.9 3,394,036,919 3,578,919,710
Total current assets 142,231,363,763 161,239,345,649
The notes on pages 30 to 175 form part of these financial statements.
1
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
Assets (continued)
Non-current assets
Long-term receivables 28,637,449 29,918,542
Long-term equity investments V.10 12,421,878,851 6,040,948,317
Investments in other equity
instruments V.11 483,060,306 519,088,146
Other non-current financial assets V.12 2,022,967,681 606,895,447
Investment properties V.13 1,122,025,138 1,158,365,401
Fixed assets V.14 205,987,050,430 227,141,366,884
Construction in progress V.15 43,386,134,668 32,099,711,879
Right-of-use assets V.60 687,120,946 753,164,237
Intangible assets V.16 8,948,327,143 11,209,498,406
Goodwill V.17 660,823,651 1,130,006,987
Long-term deferred expenses V.18 556,941,377 636,530,502
Deferred tax assets V.19 70,250,425 190,335,524
Other non-current assets V.20 1,955,521,384 7,477,427,483
Total non-current assets 278,330,739,449 288,993,257,755
Total assets 420,562,103,212 450,232,603,404
The notes on pages 30 to 175 form part of these financial statements.
2
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
Liabilities and shareholders’ equity
Current liabilities
Short-term loans V.21 2,373,938,871 2,072,057,332
Bills payable V.22 870,221,538 827,958,031
Accounts payable V.23 29,834,720,464 32,455,830,694
Advance payments received V.24 79,848,977 146,140,084
Contract liabilities V.25 2,411,717,792 3,765,081,554
Employee benefits payable V.26 2,818,532,823 5,133,155,237
Taxes payable V.27 1,331,401,188 2,200,249,305
Other payables V.28 19,632,223,269 23,835,374,942
Non-current liabilities due within one
year V.29 22,703,750,744 28,874,958,714
Other current liabilities V.30 3,613,967,673 4,051,532,509
Total current liabilities 85,670,323,339 103,362,338,402
The notes on pages 30 to 175 form part of these financial statements.
3
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
Liabilities and shareholders’ equity
(continued)
Non-current liabilities
Long-term loans V.31 123,143,479,690 116,078,666,587
Debentures payable V.32 - 359,586,437
Lease liabilities V.60 538,586,010 669,130,264
Long-term payables V.33 229,587,077 906,592,838
Deferred income V.34 5,156,347,332 6,416,089,611
Deferred tax liabilities V.19 1,274,406,833 1,525,622,873
Other non-current liabilities V.35 2,499,075,805 3,535,809,876
Total non-current liabilities 132,841,482,747 129,491,498,486
Total liabilities 218,511,806,086 232,853,836,888
The notes on pages 30 to 175 form part of these financial statements.
4
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V.36 38,196,363,421 38,445,746,482
Other equity instruments V.37 8,176,366,808 14,146,997,427
Capital reserve V.38 55,218,504,392 53,917,609,094
Less: Treasury shares V.39 3,508,201,911 3,415,768,207
Other comprehensive income V.40 (1,073,768,030) 113,551,147
Surplus reserve V.41 3,241,063,934 2,889,590,205
Retained earnings V.42 35,839,081,781 37,106,514,799
Total equity attributable to
shareholders of the Company 136,089,410,395 143,204,240,947
Non-controlling interests 65,960,886,731 74,174,525,569
Total shareholders’ equity 202,050,297,126 217,378,766,516
Total liabilities and shareholders’ equity 420,562,103,212 450,232,603,404
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
5
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2022
(Expressed in Renminbi Yuan)
Note 2022 2021
Assets
Current assets
Cash at bank and on hand 7,121,641,234 5,609,364,822
Accounts receivable XV.1 4,863,665,269 4,828,855,275
Prepayments 7,045,311 12,669,107
Other receivables XV.2 19,878,145,375 15,449,830,610
Inventories 15,065,947 15,853,238
Other current assets 57,226,515 167,179,023
Total current assets 31,942,789,651 26,083,752,075
Non-current assets
Long-term equity investments XV.3 214,308,953,020 210,945,821,235
Investments in other equity
instruments 60,434,464 63,458,868
Other non-current financial assets 1,416,072,234 -
Investment properties 251,870,591 261,526,129
Fixed assets 921,510,043 961,944,766
Construction in progress 616,247,335 551,352,449
Right-of-use assets 126,373,643 170,173,793
Intangible assets 1,122,230,564 1,243,806,868
Long-term deferred expenses 384,123,386 441,560,097
Other non-current assets 1,080,322,988 1,744,751,520
Total non-current assets 220,288,138,268 216,384,395,725
Total assets 252,230,927,919 242,468,147,800
The notes on pages 30 to 175 form part of these financial statements.
6
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
Liabilities and shareholders’ equity
Current liabilities
Accounts payable 312,100,258 61,519,244
Advance payments received 14,819,929 20,038,334
Contract liabilities 19,200 -
Employee benefits payable 282,792,422 640,728,285
Taxes payable 139,166,672 244,586,957
Other payables XV.5 4,249,391,146 2,880,884,768
Non-current liabilities due within one
year 2,704,607,119 10,909,326,195
Other current liabilities 20,283,257 29,190,783
Total current liabilities 7,723,180,003 14,786,274,566
Non-current liabilities
Long-term loans XV.6 39,557,500,000 32,208,500,000
Lease liabilities 85,830,813 129,343,868
Deferred income 1,933,587,746 2,906,951,707
Deferred tax liabilities XV.4 111,987,272 225,816,218
Other non-current liabilities XV.7 96,394,661,805 74,506,661,805
Total non-current liabilities 138,083,567,636 109,977,273,598
Total liabilities 145,806,747,639 124,763,548,164
The notes on pages 30 to 175 form part of these financial statements.
7
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V.36 38,196,363,421 38,445,746,482
Other equity instruments V.37 8,176,366,808 14,146,997,427
Capital reserve XV.8 53,693,627,213 53,598,033,152
Less: Treasury shares V.39 3,508,201,911 3,415,768,207
Other comprehensive income XV.9 340,345 89,024,650
Surplus reserve V.41 3,241,063,934 2,889,590,205
Retained earnings XV.10 6,624,620,470 11,950,975,927
Total shareholders’ equity 106,424,180,280 117,704,599,636
Total liabilities and shareholders’ equity 252,230,927,919 242,468,147,800
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
8
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
Note 2022 2021
I. Operating income V.43 178,413,731,179 221,035,718,012
II. Less: Operating costs V.43 157,530,566,152 157,298,825,781
Taxes and surcharges V.44 1,275,171,339 1,424,205,826
Selling and distribution expenses V.45 4,233,290,297 5,484,589,978
General and administrative
expenses V.46 6,247,637,006 6,693,373,589
Research and development
expenses V.47 11,100,768,677 10,616,426,327
Financial expenses V.48 2,445,130,575 3,682,379,202
Including: Interest expenses 3,572,211,438 4,866,778,333
Interest income 1,483,022,892 1,050,431,325
Add: Other income V.49 5,485,529,324 2,092,765,728
Investment income V.50 6,094,267,884 1,347,489,345
Including: Income from
investment in
associates and joint
ventures 528,103,680 1,245,036,895
Gains from changes in fair value V.51 159,344,584 84,966,963
Credit losses V.52 (51,577,226) (28,409,869)
Impairment losses V.53 (7,304,471,630) (4,478,251,852)
Gains from asset disposals V.54 10,965,556 153,505,791
III. Operating (loss) / profit (24,774,375) 35,007,983,415
Add: Non-operating income V.55 163,242,857 131,607,946
Less: Non-operating expenses V.55 87,249,543 55,215,102
The notes on pages 30 to 175 form part of these financial statements.
9
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
IV. Profit before income tax 51,218,939 35,084,376,259
Less: Income tax expenses V.56 1,788,394,107 4,187,971,404
V. Net (loss) / profit for the year (1,737,175,168) 30,896,404,855
Shareholders of the Company 7,550,877,790 25,960,751,646
Non-controlling interests (9,288,052,958) 4,935,653,209
The notes on pages 30 to 175 form part of these financial statements.
10
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
VI. Other comprehensive income, net of
tax V.40 (1,158,016,792) 155,717,231
Other comprehensive income (net of
tax) attributable to owners of the
Company (1,164,537,236) 190,988,004
(1) Items that will not be
reclassified to profit or loss
1. Other comprehensive
income recognised
under equity method (53,367,649) 68,869,497
2. Changes in fair value of
investments in other
equity instruments (79,547,426) (40,618,274)
(2) Items that may be reclassified
to profit or loss
1. Other comprehensive
income recognised
under equity method 127,867 (296,553)
2. Translation differences
arising from translation of
foreign currency financial
statements (1,031,750,028) 163,033,334
Other comprehensive income (net of
tax) attributable to non-controlling
interests 6,520,444 (35,270,773)
The notes on pages 30 to 175 form part of these financial statements.
11
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
VII. Total comprehensive income for the
year (2,895,191,960) 31,052,122,086
Attributable to shareholders of the
Company 6,386,340,554 26,151,739,650
Attributable to non-controlling interests (9,281,532,514) 4,900,382,436
VIII. Earnings per share:
(1) Basic earnings per share V.57 0.19 0.71
(2) Diluted earnings per share V.57 Not applicable 0.71
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
12
BOE Technology Group Co., Ltd.
Company income statement
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
Note 2022 2021
I. Operating income XV.11 4,873,328,715 5,716,998,034
II. Less: Operating costs 10,080,268 16,459,454
Taxes and surcharges XV.11 55,342,015 36,630,410
General and administrative
expenses 1,348,187,653 1,577,032,602
Research and development
expenses 2,046,032,751 2,330,865,497
Financial expenses 574,596,105 798,736,264
Including: Interest expenses 631,737,202 892,768,026
Interest income 96,658,931 93,003,346
Add: Other income 948,637,354 948,922,174
Investment income XV.12 1,934,087,931 2,755,668,691
Including: Income from
investment in
associates and
joint ventures 328,861,860 864,640,400
Credit losses (18,126,642) (5,247,340)
Losses from asset disposals - (773,327)
III. Operating profit 3,703,688,566 4,655,844,005
Add: Non-operating income 6,873,424 7,424,220
Less: Non-operating expenses 26,617,581 5,915,655
IV. Profit before income tax 3,683,944,409 4,657,352,570
Less: Income tax expenses XV.13 202,080,897 260,856,004
V. Net profit for the year 3,481,863,512 4,396,496,566
The notes on pages 30 to 175 form part of these financial statements.
13
BOE Technology Group Co., Ltd.
Company income statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
VI. Other comprehensive income, net of
tax XV.9 (55,810,525) 53,550,302
(1) Items that will not be reclassified
to profit or loss
1. Other comprehensive income
recognised under equity
method (53,367,649) 68,869,497
2. Changes in fair value of
investments in other equity
instruments (2,570,743) (15,073,903)
(2) Items that may be reclassified to
profit or loss 127,867 (245,292)
VII. Total comprehensive income for the
year 3,426,052,987 4,450,046,868
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
14
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
Note 2022 2021
I. Cash flows from operating
activities:
Proceeds from sale of goods and
rendering of services 193,327,661,415 221,840,098,206
Refund of taxes 17,259,338,469 13,173,129,922
Proceeds from other operating
activities 7,397,264,096 5,925,158,408
Sub-total of cash inflows 217,984,263,980 240,938,386,536
Payment for goods and services (142,617,274,685) (146,642,673,111)
Payment to and for employees (19,821,022,609) (17,908,235,464)
Payment of various taxes (5,394,897,972) (5,149,971,194)
Payment for other operating
activities (7,129,101,409) (8,538,818,211)
Sub-total of cash outflows (174,962,296,675) (178,239,697,980)
Net cash flows generated from
operating activities V.58(1) 43,021,967,305 62,698,688,556
The notes on pages 30 to 175 form part of these financial statements.
15
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
II. Cash flows from investing activities:
Proceeds from disposal of investments 83,038,823,137 33,071,343,623
Investment returns received 461,543,173 180,030,588
Net proceeds from disposal of fixed
assets, intangible assets and other
long-term assets 26,645,620 69,111,303
Net proceeds from disposal of
subsidiaries 936,758,922 -
Proceeds from other investing
activities 1,311,942,470 3,438,995,631
Sub-total of cash inflows 85,775,713,322 36,759,481,145
Payment for acquisition of fixed
assets, intangible assets and other
long-term assets (29,398,245,045) (36,098,078,337)
Payment for acquisition of investments (92,205,577,385) (41,638,460,294)
Net payment for acquisition of
subsidiaries - (2,815,535)
Net payment for disposal of
subsidiaries (144,689,766) (160,887,997)
Sub-total of cash outflows (121,748,512,196) (77,900,242,163)
Net cash flows used in investing
activities (35,972,798,874) (41,140,761,018)
The notes on pages 30 to 175 form part of these financial statements.
16
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
III. Cash flows from financing activities:
Proceeds from investors 2,301,848,242 31,519,607,755
Including: Proceeds from non-
controlling shareholders
of subsidiaries 2,301,848,242 11,187,003,325
Proceeds from issuance of debentures 2,000,000,000 -
Proceeds from borrowings 49,812,750,352 31,028,727,811
Proceeds from other financing
activities 771,327,623 1,106,689,881
Sub-total of cash inflows 54,885,926,217 63,655,025,447
The notes on pages 30 to 175 form part of these financial statements.
17
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
III. Cash flows from financing activities
(continued):
Repayments of borrowings (51,681,667,124) (48,435,579,182)
Payment for redeeming bonds (8,000,000,000) -
Payment for dividends or interest (13,828,515,479) (10,261,666,002)
Including: Profits paid to non-
controlling shareholders
of subsidiaries (39,388,061) (34,862,550)
Payment for other financing activities (2,548,995,476) (17,139,649,816)
Sub-total of cash outflows (76,059,178,079) (75,836,895,000)
Net cash flow used in financing
activities (21,173,251,862) (12,181,869,553)
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents 1,882,635,112 (817,308,273)
V. Net (decrease) / increase in cash and
cash equivalents V.58(1) (12,241,448,319) 8,558,749,712
Add: Cash and cash equivalents at
the beginning of the year 76,623,486,083 68,064,736,371
VI. Cash and cash equivalents at the end
of the year V.58(3) 64,382,037,764 76,623,486,083
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
18
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
Note 2022 2021
I. Cash flows from operating
activities:
Proceeds from sale of goods and
rendering of services 5,650,186,755 5,868,891,208
Proceeds from other operating
activities 2,005,413,901 406,266,493
Sub-total of cash inflows 7,655,600,656 6,275,157,701
Payment for goods and services (1,161,216,577) (1,038,043,873)
Payment to and for employees (1,681,332,214) (1,532,937,459)
Payment of various taxes (676,007,600) (495,289,004)
Payment for other operating
activities (452,287,489) (2,504,787,813)
Sub-total of cash outflows (3,970,843,880) (5,571,058,149)
Net cash flows generated from
operating activities XV.14(1) 3,684,756,776 704,099,552
II. Cash flows from investing
activities:
Proceeds from disposal of
investments 330,944,027 890,504,898
Proceeds from disposal of
subsidiaries - 230,142,095
Investment returns received 1,257,584,843 2,129,623,919
Net proceeds from disposal of
fixed assets 241,034 13,445,008
Proceeds from other investing
activities 10,546,180,253 2,075,919,565
Sub-total of cash inflows 12,134,950,157 5,339,635,485
The notes on pages 30 to 175 form part of these financial statements.
19
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
II. Cash flows from investing activities
(continued):
Payment for acquisition of fixed
assets, intangible assets and other
long-term assets (405,565,299) (715,641,262)
Payment for acquisition of investments (3,989,687,433) (30,498,556,648)
Payment for other investing activities (14,117,701,133) (825,000,000)
Sub-total of cash outflows (18,512,953,865) (32,039,197,910)
Net cash flows used in investing
activities (6,378,003,708) (26,699,562,425)
III. Cash flows from financing activities:
Proceeds from investors - 20,332,604,430
Proceeds from issuance of debentures 2,000,000,000 -
Proceeds from borrowings 25,000,000,000 14,303,000,000
Proceeds from other financing
activities 24,936,039,463 20,888,483,038
Sub-total of cash inflows 51,936,039,463 55,524,087,468
Repayments of borrowings (25,827,547,455) (17,355,376,312)
Payment for redeeming bonds (8,000,000,000) -
Payment for dividends and interest (9,842,819,608) (5,524,312,554)
Payment for other financing activities (4,136,747,868) (5,389,705,939)
Sub-total of cash outflows (47,807,114,931) (28,269,394,805)
Net cash flows generated from
financing activities 4,128,924,532 27,254,692,663
The notes on pages 30 to 175 form part of these financial statements.
20
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Note 2022 2021
IV. Effect of foreign exchange rate changes
on cash and cash equivalents 76,264,084 (19,357,657)
V. Net increase in cash and cash equivalents XV.14(1) 1,511,941,684 1,239,872,133
Add: Cash and cash equivalents at the
beginning of the year 5,599,937,349 4,360,065,216
VI. Cash and cash equivalents at the end of
the year XV.14(2) 7,111,879,033 5,599,937,349
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
21
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity Less: Treasury comprehensive Retained Non-controlling
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Sub-total interests Total
I. Balance at the beginning of the
year 38,445,746,482 14,146,997,427 53,917,609,094 3,415,768,207 113,551,147 2,889,590,205 37,106,514,799 143,204,240,947 74,174,525,569 217,378,766,516
II. Changes in equity during the
year
1. Total comprehensive
income - - - - (1,164,537,236) - 7,550,877,790 6,386,340,554 (9,281,532,514) (2,895,191,960)
2. Shareholders’
contributions of capital
(1) Contribution by non-
controlling
interests - - - - - - - - 2,301,848,242 2,301,848,242
(2) Repurchase of
treasury shares V.39 - - - 1,048,154,539 - - - (1,048,154,539) - (1,048,154,539)
(3) Cancellation of
treasury shares V.36/38/39 (249,383,061) - (641,811,942) (891,195,003) - - - - - -
(4) Equity-settled share-
based payments XI - - 654,336,707 (64,525,832) - - - 718,862,539 44,728,854 763,591,393
(5) Contribution by
holders of other
equity instruments V.37 - 1,989,320,755 - - - - - 1,989,320,755 - 1,989,320,755
(6) Payment for capital
of holders of other
equity instruments V.37 - (7,957,047,264) (42,952,736) - - - - (8,000,000,000) - (8,000,000,000)
3. Appropriation of profits
(1) Appropriation for
surplus reserve V.41 - - - - - 348,186,351 (348,186,351) - - -
(2) Accrued interest on
holders of other
equity instruments V.37 - 530,695,890 - - - - (530,695,890) - - -
(3) Payment for interest
on holders of other
equity instruments V.37 - (533,600,000) - - - - - (533,600,000) - (533,600,000)
(4) Distributions to
shareholders V.42 - - - - - - (7,958,923,130) (7,958,923,130) (54,411,212) (8,013,334,342)
The notes on pages 30 to 175 form part of these financial statements.
22
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity Less: Treasury comprehensive Non-controlling
Note Share capital instruments Capital reserve shares income Surplus reserve Retained earnings Sub-total interests Total
4. Transfers within equity
(1) Transfer of other
comprehensive
income to
retained
earnings V.40/41/42 - - - - (22,781,941) 3,287,378 19,494,563 - - -
5. Others
(1) Other movements
in equity of
associates V.10 - - 274,685,689 - - - - 274,685,689 845,261 275,530,950
(2) Disposal of
equities in
subsidiaries V.38 - - - - - - - - (1,154,255,778) (1,154,255,778)
(3) Others V.38 - - 1,056,637,580 - - - - 1,056,637,580 (70,861,691) 985,775,889
III. Balance at the end of the
year 38,196,363,421 8,176,366,808 55,218,504,392 3,508,201,911 (1,073,768,030) 3,241,063,934 35,839,081,781 136,089,410,395 65,960,886,731 202,050,297,126
These financial statements were approved by the Board of Directors of the Company on 31 March 2023.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
23
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity Less: Treasury comprehensive Retained Non-controlling
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Sub-total interests Total
I. Balance at the beginning of the year 34,798,398,763 14,146,997,427 37,435,655,934 1,036,298,508 (22,198,072) 2,444,416,669 15,509,794,622 103,276,766,835 70,120,967,879 173,397,734,714
Add: Changes in accounting policies - - - - - - 35,577,201 35,577,201 5,309,967 40,887,168
Adjusted balance at the beginning of the year 34,798,398,763 14,146,997,427 37,435,655,934 1,036,298,508 (22,198,072) 2,444,416,669 15,545,371,823 103,312,344,036 70,126,277,846 173,438,621,882
II. Changes in equity during the year
1. Total comprehensive income - - - - 190,988,004 - 25,960,751,646 26,151,739,650 4,900,382,436 31,052,122,086
2. Shareholders’ contributions of capital
(1) Contribution by ordinary
shareholders V.36 3,650,377,019 - 16,219,134,815 - - - - 19,869,511,834 - 19,869,511,834
(2) Contribution by non-controlling
interests - - - - - - - - 11,187,003,325 11,187,003,325
(3) Decrease of capital by non-
controlling interests - - 322,947 - - - - 322,947 (8,482,947) (8,160,000)
(4) Repurchase of treasury shares V.39 - - - 2,428,003,419 - - - (2,428,003,419) - (2,428,003,419)
(5) Cancellation of treasury shares V.36/38/39 (3,029,300) - (14,270,384) (17,299,684) - - - - - -
(6) Equity-settled share-based
payments XI - - 598,701,862 (31,234,036) - - - 629,935,898 41,990,775 671,926,673
3. Appropriation of profits
(1) Appropriation for surplus reserve V.41 - - - - - 439,649,657 (439,649,657) - - -
(2) Accrued interest on holders of
other equity instruments V.37 - 533,600,000 - - - - (533,600,000) - - -
(3) Payment for interest on holders of
other equity instruments V.37 - (533,600,000) - - - - - (533,600,000) - (533,600,000)
(4) Distributions to shareholders V.42 - - - - - - (3,476,073,919) (3,476,073,919) (34,862,550) (3,510,936,469)
The notes on pages 30 to 175 form part of these financial statements.
24
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2021 (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.40/42 - - - - (55,238,785) 5,523,879 49,714,906 - - -
5. Others
(1) Other movements in equity of
associates V.10 - - 51,030,550 - - - - 51,030,550 - 51,030,550
(2) Acquisition of non-controlling
interests V.38 - - (658,923,890) - - - - (658,923,890) (12,180,161,432) (12,839,085,322)
(3) Disposal of equities in subsidiaries V.38 - - 288,039,797 - - - - 288,039,797 146,828,923 434,868,720
(4) Others V.38 - - (2,082,537) - - - - (2,082,537) (4,450,807) (6,533,344)
III. Balance at the end of the year 38,445,746,482 14,146,997,427 53,917,609,094 3,415,768,207 113,551,147 2,889,590,205 37,106,514,799 143,204,240,947 74,174,525,569 217,378,766,516
These financial statements were approved by the Board of Directors of the Company on 31 March 2023.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
25
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
Less: Other
Other equity Treasury comprehensive Surplus Retained
Note Share capital instruments Capital reserve shares income reserve earnings Total
I. Balance at the beginning of the year 38,445,746,482 14,146,997,427 53,598,033,152 3,415,768,207 89,024,650 2,889,590,205 11,950,975,927 117,704,599,636
II. Changes in equity during the year
1. Total comprehensive income - - - - (55,810,525) - 3,481,863,512 3,426,052,987
2. Shareholders’ contributions of
capital
(1) Repurchase of treasury shares V.39 - - - 1,048,154,539 - - - (1,048,154,539)
(2) Cancellation of treasury V.36/38/
shares 39 (249,383,061) - (641,811,942) (891,195,003) - - - -
(3) Equity-settled share-based
payments XI - - 699,065,561 (64,525,832) - - - 763,591,393
(4) Contribution by holders of
other equity instruments V.37 - 1,989,320,755 - - - - - 1,989,320,755
(5) Payment for capital of holders
of other equity instruments V.37/38 - (7,957,047,264) (42,952,736) - - - - (8,000,000,000)
3. Appropriation of profits
(1) Appropriation for surplus
reserve V.41 - - - - - 348,186,351 (348,186,351) -
(2) Accrued interest on holders of
other equity instruments V.37 - 530,695,890 - - - - (530,695,890) -
(3) Payment for interest on
holders of other equity
instruments V.37 - (533,600,000) - - - - - (533,600,000)
(4) Distributions to shareholders V.42 - - - - - - (7,958,923,130) (7,958,923,130)
The notes on pages 30 to 175 form part of these financial statements.
26
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Less: Other
Other equity 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.9/10 - - - - (32,873,780) 3,287,378 29,586,402 -
5. Others
(1) Other movements in
equity of associates XV.3 - - 141,386,796 - - - - 141,386,796
(2) Others - - (60,093,618) - - - - (60,093,618)
III. Balance at the end of the year 38,196,363,421 8,176,366,808 53,693,627,213 3,508,201,911 340,345 3,241,063,934 6,624,620,470 106,424,180,280
These financial statements were approved by the Board of Directors of the Company on 31 March 2023.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
27
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensiv Retained
Note Share capital instruments Capital reserve shares e income Surplus reserve earnings Total
I. Balance at the beginning of the year 34,798,398,763 14,146,997,427 36,696,079,366 1,036,298,508 90,713,133 2,444,416,669 11,954,088,031 99,094,394,881
II. Changes in equity during the year
1. Total comprehensive income - - - - 53,550,302 - 4,396,496,566 4,450,046,868
2. Shareholders’ contributions of
capital
(1) Contribution by ordinary
shareholders V.36 3,650,377,019 - 16,219,134,815 - - - - 19,869,511,834
(2) Repurchase of treasury shares V.39 - - - 2,428,003,419 - - - (2,428,003,419)
(3) Cancellation of treasury V.36/38/
shares 39 (3,029,300) - (14,270,384) (17,299,684) - - - -
(4) Equity-settled share-based
payments XI - - 640,692,637 (31,234,036) - - - 671,926,673
3. Appropriation of profits
(1) Appropriation for surplus
reserve V.41 - - - - - 439,649,657 (439,649,657) -
(2) Accrued interest on holders of
other equity instruments V.37 - 533,600,000 - - - - (533,600,000) -
(3) Payment for interest on
holders of other equity
instruments V.37 - (533,600,000) - - - - - (533,600,000)
(4) Distributions to shareholders V.42 - - - - - - (3,476,073,919) (3,476,073,919)
The notes on pages 30 to 175 form part of these financial statements.
28
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2021 (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.9/10 - - - - (55,238,785) 5,523,879 49,714,906 -
5. Others
(1) Other movements in equity of
associates XV.3 - - 53,544,976 - - - - 53,544,976
(2) Others - - 2,851,742 - - - - 2,851,742
III. Balance at the end of the year 38,445,746,482 14,146,997,427 53,598,033,152 3,415,768,207 89,024,650 2,889,590,205 11,950,975,927 117,704,599,636
These financial statements were approved by the Board of Directors of the Company on 31 March 2023.
Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 175 form part of these financial statements.
29
BOE Technology Group Co., Ltd.
Notes to the financial statements
(Expressed in Renminbi Yuan unless otherwise indicated)
I. Company status
BOE Technology Group Company Limited (the “Company”) is a company limited by shares
established on 9 April 1993 in Beijing, with its head office located at Beijing. The parent of
the Company and the Company’s ultimate holding company is Beijing Electronics Holdings
Co., Ltd. (“Electronics Holdings”).
The Company and its subsidiaries (referred to as the “Group”) comprise five main business
segments: display business, Internet of Things (IoT) innovation business, sensor business,
MLED business and smart medicine & engineering 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.
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 2022, 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.
2 Accounting period
The accounting period is from 1 January to 31 December.
3 Operating cycle
The Company takes the period from the acquisition of assets for processing to until the
ultimate realisation of cash or cash equivalents as a normal operating cycle. The operating
cycle of the Company is usually less than 12 months.
30
4 Functional currency
The Company’s functional currency is Renminbi and these financial statements are
presented in Renminbi. Functional currency is determined by the Company and its
subsidiaries on the basis of the currency in which major income and costs are denominated
and settled. Some of the Company’s subsidiaries have functional currencies that are different
from the Company’s functional currency. Their financial statements have been translated
based on the accounting policy set out in Note III.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.
(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.
31
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
owners’ equity of the subsidiary, the excess is still allocated against the non-controlling
interests.
When the accounting period or accounting policies of a subsidiary are different from those of
the Company, the Company makes necessary adjustments to the financial statements of the
subsidiary based on the Company’s own accounting period or accounting policies. Intra-
group balances and transactions, and any unrealised profit or loss arising from intra-group
transactions, are eliminated when preparing the consolidated financial statements.
Unrealised losses resulting from intra-group transactions are eliminated in the same way as
unrealised gains, unless they represent impairment losses that are recognised in the
financial statements.
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period, through a business
combination involving entities under common control, the financial statements of the
subsidiary are included in the consolidated financial statements based on the carrying
amounts of the assets and liabilities of the subsidiary in the financial statements of the
ultimate controlling party as if the combination had occurred at the date that the ultimate
controlling party first obtained control. The opening balances and the comparative figures of
the consolidated financial statements are also restated.
Where a subsidiary was acquired during the reporting period, through a business
combination involving entities not under common control, the identifiable assets and liabilities
of the acquired subsidiaries are included in the scope of consolidation from the date that
control commences, based on the fair value of those identifiable assets and liabilities at the
acquisition date.
32
(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
control shall be recognised in other comprehensive income and transferred to profit or loss
when the parent eventually loses control of the subsidiary.
(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling
shareholders or disposes of a portion of an interest in a subsidiary without a change in
control, the difference between the proportion interests of the subsidiary’s net assets being
acquired or disposed and the amount of the consideration paid or received is adjusted to the
capital reserve (share premium) in the consolidated balance sheet, with any excess adjusted
to retained earnings.
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.
33
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.
(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Group
becomes a party to the contractual provisions of a financial instrument.
A financial or financial liability is measured initially at fair value. For financial assets and
financial liabilities at fair value through profit or loss, any related directly attributable
transaction costs are charged to profit or loss; for other categories of financial assets and
financial liabilities, any related directly attributable transaction costs are included in their
initial costs. A trade receivable, without significant financing component or practical
expedient applied for one year or less contracts, is initially measured at the transaction price
in accordance with Note III.20.
34
(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.
35
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.
36
(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.
37
The Group derecognises a financial liability (or part of it) only when its contractual obligation
(or part of it) is extinguished.
(6) Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;
- contract assets;
- debt investments at FVOCI; and
- lease receivables
Financial assets measured at fair value, including debt investments or equity securities at
FVTPL, equity securities designated at FVOCI and derivative financial assets, are not subject
to the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the
entity in accordance with the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period
(including extension options) over which the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life
of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible
within the 12 months after the balance sheet date (or a shorter period if the expected life of
the instrument is less than 12 months).
Loss allowances for trade receivables, lease 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, lease 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.
38
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.
39
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.
40
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.
41
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.
42
In the Group’s consolidated financial statements, subsidiaries are accounted for in
accordance with the policies described in Note III.6.
(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have 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.
43
- The Group discontinues recognising its share of further losses of the investee after
the carrying amount of the long-term equity investment and any long-term interest
that in substance forms part of the Group’s net investment in the joint venture or
associate is reduced to zero, except to the extent that the Group has an obligation to
assume additional losses. If the joint venture or associate subsequently reports net
profits, the Group resumes recognising its share of those profits only after its share
of the profits has fully covered the share of losses not recognised.
For the impairment of the investments in joint ventures and associates, refer to Note
III.19.
(3) Criteria for determining the existence of joint control or significant influence over an investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists
only when decisions about 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%
44
13 Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in the production of
goods, supply of services, for rental or for administrative purposes with useful lives over one
year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and any
directly attributable expenditure for bringing the asset to working condition for its intended
use. The cost of self-constructed assets is measured in accordance with the policy set out in
Note III.14.
Where the parts of an item of fixed assets have different useful lives or provide benefits to
the Group in a different pattern, thus necessitating use of different depreciation rates or
methods, each part is recognised as a separate fixed asset.
Any subsequent costs including the cost of replacing part of an item of fixed assets are
recognised as assets when it 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) (%) (%)
Buildings 10 - 50 years 3% - 10% 1.8% - 9.7%
Equipment 2 - 25 years 0 - 10% 3.6% - 50%
Others 2 - 10 years 0 - 10% 9.0% - 50%
Useful lives, residual values and depreciation methods are reviewed at least at each year-
end.
(3) For the impairment of the fixed assets, refer to Note III.19.
(4) Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.
45
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.
Construction in progress is stated in the balance sheet at cost less accumulated impairment
losses (see Note III.19).
When an enterprise sells products or by-products produced before a fixed asset is available
for its intended use, the proceeds and related cost are accounted for in accordance with CAS
14 – Revenue and CAS 1 – Inventories respectively, and recognised in profit or loss for the
current period.
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 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.
46
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).
The respective amortisation periods for intangible assets are as follows:
Amortisation
Item period (years)
Land use rights 20 - 50 years
Patent and proprietary technology 5 - 20 years
Computer software 3 - 10 years
Others 5 - 20 years
Useful lives and amortisation methods of intangible asset with finite useful life are reviewed
at least at each year-end. An 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.
47
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.
When an enterprise sells products or by-products produced in the course of research and
development, the proceeds and related cost are accounted for in accordance with CAS 14 –
Revenue and CAS 1 – Inventories respectively, and recognised in profit or loss for the
current period.
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
Item period (years)
Payment for public facilities construction and use 10 - 15 years
Leasehold improvements 2 - 10 years
Others 2 - 10 years
19 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based
on internal and external sources of information to determine whether there is any indication
of impairment:
- fixed assets
- construction in progress
- right-of-use assets
- intangible assets
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses, etc.
48
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.
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.
49
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.
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.
50
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
inception, that the period between when the Group transfers a promised good or service to a
customer and when the customer pays for that good or service will be one year or less.
The Group satisfies a performance obligation over time if one of the following criteria is met;
or otherwise, a performance obligation is satisfied at a point in time:
- the customer simultaneously receives and consumes the benefits provided by the Group’s
performance as the Group performs;
- the customer can control the asset created or enhanced during the Group’s performance;
or
- the Group’s performance does not create an asset with an alternative use to it and the
Group has an enforceable right to payment for performance completed to date.
For performance obligation satisfied over time, the Group recognises revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. When
the outcome of that performance obligation cannot be measured reasonably, but the Group
expects to recover the costs incurred in satisfying the performance obligation, the Group
recognises revenue only to the extent of the costs incurred until such time that it can
reasonably measure the outcome of the performance obligation.
51
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.
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)
52
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.
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.
53
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.
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 and
unemployment insurance plans based on the applicable benchmarks and rates stipulated by
the government. Annuity is accrued based on the gross salaries of the employees. Basic
pension insurance contributions payable are recognised as a liability as the employee
provides services, with a corresponding charge to profit or loss or included in the cost of
assets where appropriate.
54
(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.
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 recognizes the long-term assets purchased
and constructed, deferred income is included in profit and loss based on a reasonable and
systematic approach by stages when related assets are initially depreciated or amortized; or
the deferred income is written off against the carrying amount of the asset when the asset
becomes ready for its intended status or intended use. If the Group obtains government
grants related to the assets after relevant long-term assets are put into use, deferred income
is included in profit and loss based on a reasonable and systematic approach by stages
within the remaining useful life of relevant assets, or the deferred income is written off
against the carrying amount of relevant asset when the grants are obtained; the assets shall
be depreciated or amortized based on the carrying amount after being offset and the
remaining useful life of relevant assets.
A grant that compensates the Group for expenses or losses to be incurred in the future is
recognised as deferred income, and included in current income or offset against related
expenses in the periods in which the expenses or losses are recognised. Or included in
current income or offset against the related expenses directly.
55
In respect of the policy-based preferential loan interest subsidy obtained by the Group, if the
interest subsidy is appropriated to the lending bank which shall provide loans to the Group at
the policy-based preferential interest rate, the actual loan amount is used as the entry value
and relevant borrowing costs are calculated on the basis of the loan principal and the
preferential interest rate. If the interest subsidy is directly appropriated to the Group, relevant
borrowing costs shall be offset by corresponding interest subsidy. If borrowing costs are
capitalized as part of the cost of the asset (see Note III. 15), the interest subsidy shall be
used to offset relevant asset costs.
27 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they
relate to a business combination 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.
56
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.
28 Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
To assess whether a contract conveys the right to control the use of an identified asset, the
Group assesses whether:
- the contract involves the use of an identified asset. An identified asset may be specified
explicitly or implicitly specified in a contract and should be physically distinct, or capacity
portion or other portion of an asset that is not physically distinct but it represents
substantially all of the capacity of the asset and thereby provides the customer with the
right to obtain substantially all of the economic benefits from the use of the asset. If the
supplier has a substantive substitution right throughout the period of use, then the asset is
not identified;
- the lessee has the right to obtain substantially all of the economic benefits from use of the
asset throughout the period of use;
- the lessee has the right to direct the use of the asset.
For a contract that contains more separate lease components, the lessee and the lessor
separate lease components and account for each lease component as a lease separately.
For a contract that contains lease and non-lease components, the lessee and the lessor
separate lease components from non-lease components. For a contract that contains lease
and non-lease components, the lessee allocates the consideration in the contract to each
lease component on the basis of the relative stand-alone price of the lease component and
the aggregate stand-alone price of the non-lease components. The lessor allocates the
consideration in the contract in accordance with the accounting policy in Note III.23.
(1) As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement
date. The right-of-use asset is initially measured at cost, which comprises the initial amount
of the lease liability, any lease payments made at or before the commencement date (less
any lease incentives received), any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the site on which it is located or
restore the underlying asset to the condition required by the terms and conditions of the
lease.
57
The right-of-use asset is depreciated using the straight-line method. If the lessee is
reasonably certain to exercise a purchase option by the end of the lease term, the right-of-
use asset is depreciated over the remaining useful lives of the underlying asset. Otherwise,
the right-of-use asset is depreciated from the commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end of the lease term. Impairment losses of
right-of-use assets are accounted for in accordance with the accounting policy described in
Note III.19.
The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted using the interest rate implicit in the lease or, if
that rate cannot be readily determined, the Group’s incremental borrowing rate.
A constant periodic rate is used to calculate the interest on the lease liability in each period
during the lease term with a corresponding charge to profit or loss or included in the cost of
assets where appropriate. Variable lease payments not included in the measurement of the
lease liability is charged to profit or loss or included in the cost of assets where appropriate
as incurred.
Under the following circumstances after the commencement date, the Group remeasures
lease liabilities based on the present value of revised lease payments:
- there is a change in the amounts expected to be payable under a residual value
guarantee;
- there is a change in future lease payments resulting from a change in an index or a rate
used to determine those payments;
- there is a change in the assessment of whether the Group will exercise a purchase,
extension or termination option, or there is a change in the exercise of the extension or
termination option.
When the lease liability is remeasured, a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term
leases that have a lease term of 12 months or less and leases of low-value assets. The
Group recognises the lease payments associated with these leases in profit or loss or as the
cost of the assets where appropriate using the straight-line method or other systematic basis
over the lease term.
(2) As a lessor
The Group determines at lease inception whether each lease is a finance lease or an
operating lease. A lease is classified as a finance lease if it transfers substantially all the
risks and rewards incidental to ownership of an underlying asset irrespective of whether the
legal title to the asset is eventually transferred. An operating lease is a lease other than a
finance lease.
When the Group is a sub-lessor, it assesses the lease classification of a sub-lease with
reference to the right-of-use asset arising from the head lease, not with reference to the
underlying asset. If a head lease is a short-term lease to which the Group applies practical
expedient described above, then it classifies the sub-lease as an operating lease.
58
Under a finance lease, at the commencement date, the Group recognises the finance lease
receivable and derecognises the finance lease asset. The finance lease receivable is initially
measured at an amount equal to the net investment in the lease. The net investment in the
lease is measured at the aggregate of the unguaranteed residual value and the present
value of the lease receivable that are not received at the commencement date, discounted
using the interest rate implicit in the lease.
The Group calculates and recognises interest income for each period of the lease term
based on a fixed periodic interest rate. The derecognition and impairment of the finance
lease receivable are recognised in accordance with the accounting policy in Note III.9.
Variable lease payments not included in the measurement of net investment in the lease are
recognised as income as they are earned.
Lease receipts from operating leases is recognised as income using the straight-line method
or other systematic basis over the lease term. The initial direct costs incurred in respect of
the operating lease are initially capitalised and subsequently amortised in profit or loss over
the lease term on the same basis as the lease income. Variable lease payments not included
in lease receipts are recognised as income as they are earned.
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.
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), deferred tax assets (see note III.27). 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.
59
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 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.
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.
60
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.
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 the similar economic characteristics and are same or similar in respect of the nature of
each segment’s products and services, the nature of production processes, the types or
classes of customers for the products and services, the methods used to distribute the
products or provide the services, and the nature of the regulatory environment.
61
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, 10, 14, 15, 16 and 17). 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. – Fair value measurements of financial instruments; and
(iv) Note XI: Share-based payments.
Significant judgements made by the Group in the application of accounting policies are as
follows:
(i) Note VII. 1(1) –Disclosure of significant judgements and assumptions of control and
exercising significant influence over other entities.
35. Changes in significant accounting policies
(1) Description of and reasons for changes in accounting policies
In 2022, the Group has adopted the revised accounting requirements and guidance under
CAS newly issued by the Ministry of Finance (“MOF”) as follows:
- “Accounting for selling outputs that are produced before fixed assets are available for
intended use or produced in the course of research and development” (“accounting for
sales before intended use") in CAS Bulletin No.15 (Caikuai [2021] No.35);
- “Determining whether a contract is onerous” in CAS Bulletin No.15;
- Notice of Application Issues for Accounting Treatment of COVID-19-Related Rent
Concessions (Caikuai [2022] No.13);
- “Accounting for the income tax consequences of dividends on financial instruments
classified as equity instruments by the issuer” in CAS Bulletin No.16 (Caikuai [2022]
No.31); and
- “Accounting for the modification of a share-based payment transaction that changes the
classification of the transaction from cash-settled to equity-settled” in CAS Bulletin No.16
62
(a) Main effects of adopting the above requirements and guidance
(i) Accounting for sales before intended use
In accordance with CAS Bulletin No.15, the Group accounts for the proceeds and
related cost arising from the sale of products or by-products produced before the
fixed asset is available for its intended use and in the course of research and
development (“sales before intended use”) in accordance with CAS 14 – Revenue
and CAS 1 – Inventories respectively, and recognises them in profit or loss for the
current period. The net amount of proceeds from such sales before intended use
less related costs is no longer offset against the cost of the fixed asset or research
and development expenditure.
These provisions are effective from 1 January 2022. The Group has made
retrospective adjustments in accordance with these provisions for sales before
intended use occurring between 1 January 2021 and the date of initial
implementation.
The adoption of Bulletin No.15 does not have a significant effect on the financial
position and financial performance of the Company.
(ii) “Determining whether a contract is onerous”
In accordance with CAS Bulletin No.15, when determining whether a contract is
onerous, the Group includes in its estimated cost of fulfilling the contract the
amount of the incremental cost of fulfilling the contract and the allocation of other
costs directly attributable to fulfilling the contract.
The adoption of Bulletin No.15 does not have a significant effect on the financial
position and financial performance of the Group and the Company.
(iii) Caikuai [2022] No.13
The Accounting Treatment of COVID-19-Related Rent Concessions (Caikuai
[2020] No.10) provides a practical expedient under certain conditions for rent
concessions occurring as a direct consequence of the COVID-19 pandemic.
According to the provisions of Caikuai [2022] No.13, the practical expedient of
Caikuai [2020] No.10 can continue to apply to eligible reduction in lease payments
that are originally due after 30 June 2022.
The adoption of the above regulation does not have a significant effect on the
financial position and financial performance of the Group and the Company.
(iv) Accounting for the income tax consequences of dividends on financial instruments
classified as equity instruments by the issuer
In accordance with CAS Bulletin No.16, for financial instruments classified as
equity instruments (such as perpetual bonds classified as equity instruments, etc.)
in accordance with the CAS No. 37 - Presentation and Disclosure of Financial
Instruments and other requirements, if the relevant dividend payments are
deductible for income tax purposes according to the relevant provisions of tax
policies, the Group (as the issuer) shall recognise the income tax consequences of
dividends when it recognises a liability to pay a dividend. The Group shall
recognise the income tax consequences of dividends in (1) profit or loss, if those
payments are distributions of profits generated from transactions or events
previously recognised in profits or loss; or (2) the items of owner's equity, if those
payments are distributions of profits generated from the transactions or events
previously recognised in the items of owner's equity.
63
The adoption of Bulletin No.16 does not have a significant effect on the financial
position and financial performance of the Group and the Company.
(v) Accounting for the modification of a share-based payment transaction that
changes the classification of the transaction from cash-settled to equity-settled
In accordance with CAS Bulletin No.16, if the terms and conditions of a cash-
settled share-based payment transaction are modified such that it becomes an
equity-settled share-based payment transaction, the Group shall, at the
modification date:
measure the equity-settled share-based payment at its fair value as at the
modification date and recognise in equity that fair value to the extent that the
services have been rendered up to that date;
derecognise the liability for the cash-settled share-based payment as at the
modification date; and
immediately recognise in profit or loss the difference between the carrying
amount of the liability and the amount recognised in equity.
If the modification extends or shortens the vesting period, the Group applies the
modified vesting period to the above accounting treatment.
The adoption of Bulletin No.16 does not have a significant effect on the financial
position and financial performance of the Group and the Company.
(b) The effects on the financial statements
The effects on each of the line items in the consolidated balance sheet as at 31
December 2022 are as follows:
Increase/(decrease) in the
line items for the year as a
result of applying new
accounting policies
The Group
Assets:
Inventories 125,164,818
Fixed assets 370,255,620
Construction in progress (122,638,939)
Shareholders’ equity:
Retained earnings 98,225,752
Capital reserve 112,771,892
Non-controlling interests 161,783,855
64
The effects on each of the line items in the consolidated income statement for the year
ended 31 December 2022 are as follows:
Increase/(decrease) in the
line items for the year as a
result of applying new
accounting policies
The Group
Operating income 1,407,856,936
Operating costs 1,514,976,278
Research and development expenses 25,722,208
Losses before income tax (132,841,550)
Net loss for the year (132,841,550)
Attributable to: Shareholders of the Company (67,167,595)
Non-controlling interests (65,673,955)
The effects on each of the line items in the consolidated cash flow statement for the year
ended 31 December 2022 are as follows:
Increase/(decrease) in the
line items for the year as a
result of applying new
accounting policies
The Group
Proceeds from sale of goods and rendering of services 1,558,099,468
Payment for goods and services 1,615,780,128
Payment to and for employees 119,971,211
Payment for acquisition of fixed assets, intangible assets
and other long-term assets (177,651,871)
(c) The effects on the comparative financial statements
The effects of these changes in accounting policies on the Group’s net profit for the year
ended 31 December 2021, and opening and closing balances of shareholders’ equity as
at 1 January and 31 December 2021 are summarised as follows:
The Group
2021 2021
2021 Closing balance of Opening balance of
Net profit shareholders’ equity shareholders’ equity
Net profit and shareholders’
equity before adjustments 30,431,668,974 216,873,143,467 173,397,734,714
The effects of sales before
intended use 464,735,881 505,623,049 40,887,168
Net profit and shareholders’
equity after adjustments 30,896,404,855 217,378,766,516 173,438,621,882
65
The effects on each of the line items in the consolidated balance sheet as at 31
December 2021 are as follows:
The Group
The amounts of
Before adjustments adjustments After adjustments
Assets:
Inventories 27,724,806,939 80,354,497 27,805,161,436
Fixed assets 226,695,489,704 445,877,180 227,141,366,884
Construction in progress 32,120,320,507 (20,608,628) 32,099,711,879
Shareholders’ equity:
Retained earnings 36,941,121,452 165,393,347 37,106,514,799
Capital reserve 53,804,309,393 113,299,701 53,917,609,094
Non-controlling interests 73,947,595,568 226,930,001 74,174,525,569
The effects on each of the line items in the consolidated income statement for the year
ended 31 December 2021 are as follows:
The Group
The amounts of
Before adjustments adjustments After adjustments
Operating income 219,309,799,505 1,725,918,507 221,035,718,012
Operating costs 155,985,225,295 1,313,600,486 157,298,825,781
Research and development
expenses 10,668,844,187 (52,417,860) 10,616,426,327
Profit before income tax 34,619,640,378 464,735,881 35,084,376,259
Net profit for the year 30,431,668,974 464,735,881 30,896,404,855
Attributable to: Shareholders of
the Company 25,830,935,500 129,816,146 25,960,751,646
Non-controlling
interests 4,600,733,474 334,919,735 4,935,653,209
The effects on each of the line items in the consolidated cash flow statement for the year
ended 31 December 2021 are as follows:
The Group
The amounts of
Before adjustments adjustments After adjustments
Proceeds from sale of goods and
rendering of services 219,962,740,822 1,877,357,384 221,840,098,206
Payment for goods and services 145,205,421,170 1,437,251,941 146,642,673,111
Payment to and for employees 17,896,262,253 11,973,211 17,908,235,464
Payment for acquisition of fixed
assets, intangible assets and other
long-term assets 35,669,946,105 428,132,232 36,098,078,337
66
(d) After retrospective adjustments of the above accounting policy changes, the
consolidated balance sheet as at 1 January 2021 are as follows:
The Group
Assets
Current assets:
Cash at bank and on hand 73,694,296,095
Financial assets held for trading 4,367,201,833
Bills receivable 215,994,373
Accounts receivable 22,969,140,355
Prepayments 1,119,595,984
Other receivables 658,114,833
Inventories 17,919,205,338
Contract assets 49,897,395
Assets held for sale 186,892,645
Other current assets 7,848,869,252
Total current assets 129,029,208,103
Non-current assets:
Long-term equity investments 3,693,170,224
Investments in other equity instruments 533,645,423
Investment properties 1,196,168,511
Fixed assets 224,866,586,069
Construction in progress 42,572,986,272
Intangible assets 11,875,926,448
Goodwill 1,400,357,242
Long-term deferred expenses 299,634,100
Deferred tax assets 205,041,088
Other non-current assets 8,624,970,019
Total non-current assets 295,268,485,396
Total assets 424,297,693,499
67
The Group
Liabilities and shareholders’ equity
Current liabilities:
Short-term loans 8,599,569,471
Bills payable 1,231,533,895
Accounts payable 27,164,171,682
Advance payments received 124,040,749
Contract liabilities 3,440,720,535
Employee benefits payable 3,758,623,797
Taxes payable 1,077,686,869
Other payables 32,867,709,024
Non-current liabilities due within one year 24,500,550,121
Other current liabilities 2,194,716,852
Total current liabilities 104,959,322,995
Non-current liabilities:
Long-term loans 132,452,767,135
Debentures payable 398,971,739
Long-term payables 2,114,175,683
Deferred income 4,246,231,468
Deferred tax liabilities 1,427,601,154
Other non-current liabilities 5,260,001,443
Total non-current liabilities 145,899,748,622
Total liabilities 250,859,071,617
Shareholders’ equity:
Share capital 34,798,398,763
Other equity instruments 14,146,997,427
Capital reserve 37,435,655,934
Less: Treasury shares 1,036,298,508
Other comprehensive income (22,198,072)
Surplus reserve 2,444,416,669
Retained earnings 15,545,371,823
Total equity attributable to shareholders of the Company 103,312,344,036
Non-controlling interests 70,126,277,846
Total shareholders’ equity 173,438,621,882
Total liabilities and shareholders’ equity 424,297,693,499
68
IV. Taxation
1 Main types of taxes and corresponding tax rates
Tax type Tax basis Tax rate
Output VAT is calculated on product sales and
Value-added tax taxable services revenue. The basis for VAT payable
6%, 9%, 13%
(VAT) is to deduct input VAT from the output VAT for the
period
City maintenance Based on VAT paid, VAT exemption and offset for the
7%, 5%
and construction tax period
Education
surcharges and Based on VAT paid, VAT exemption and offset for the
3%, 2%
local education period
surcharges
Corporate income
Based on taxable profits 15% - 30%
tax
2 Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2021: 15%).
Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatment No.
28, corporate income tax for key advanced and high-tech enterprises supported by the 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 Tax Service, State
Taxation Administration. The Company is subject to corporate income tax rate of 15% since
the date of certification with the valid period of three years.
The income tax rate applicable to other subsidiaries of the Group is 25% other than the
following subsidiaries and the overseas subsidiaries which subject to the local income tax
rate.
69
The subsidiaries that are entitled to preferential tax treatments are as follows:
Preferential
Company name rate Reason
Beijing BOE Optoelectronics Technology Co., Ltd. (BOE OT) 15% High-tech Enterprise
Chengdu BOE Optoelectronics Technology Co., Ltd. (Chengdu
Optoelectronics) 15% High-tech Enterprise
Hefei BOE Optoelectronics Technology Co., Ltd. (Hefei BOE) 15% High-tech Enterprise
Beijing BOE Display Technology Co., Ltd. (BOE Display) 15% High-tech Enterprise
Hefei Xinsheng Optoelectronics Technology Co., Ltd. (Hefei
Xinsheng) 15% High-tech Enterprise
Ordos Yuansheng Optoelectronics Co., Ltd. (Yuansheng
Optoelectronics) 15% High-tech Enterprise
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 Encouraged enterprise in
Lighting) 15% Western Regions
Beijing BOE Vacuum Electronics Co., Ltd. (Vacuum
Electronics) 15% High-tech Enterprise
Beijing BOE Vacuum Technology Co., Ltd. (Vacuum
Technology) 15% High-tech Enterprise
Beijing BOE Energy Technology Co., Ltd. (BOE Energy) 15% High-tech Enterprise
Fuzhou BOE Optoelectronics Technology Co., Ltd. (Fuzhou
BOE) 15% High-tech Enterprise
Hefei BOE Display Technology Co., Ltd. (Hefei Technology) 15% High-tech Enterprise
Mianyang BOE Optoelectronics Technology Co., Ltd.
(Mianyang BOE) 15% High-tech Enterprise
BOE Wisdom IOT Technology Co., Ltd. (Wisdom IOT) 15% High-tech Enterprise
K-Tronics (Suzhou) Technology Co., Ltd. (Suzhou K-Tronics) 15% High-tech Enterprise
Beijing BOE Sensing Technology Co., Ltd. (Sensing
Technology) 15% High-tech Enterprise
Chongqing BOE Smart Electronic System Co., Ltd. (Chongqing Encouraged enterprise in
Smart Electronic) 15% Western Regions
Beijing BOE Health Technology Co., Ltd. (Health Technology) 15% High-tech Enterprise
Chongqing BOE Electronic Technology Co., Ltd. (Chongqing Encouraged enterprise in
Electronic Technology) 15% Western Regions
Wuhan BOE Optoelectronics Technology Co., Ltd. (Wuhan
BOE) 15% High-tech Enterprise
Nanjing BOE Display Technology Co., Ltd. (Nanjing
Technology) 15% High-tech Enterprise
Chengdu BOE Display Sci-tech Co., Ltd.. (Chengdu Display
Sci-tech) 15% High-tech Enterprise
BOE Regenerative Medical Technology Co., Ltd.
(Regenerative Medical) 15% High-tech Enterprise
Beijing Zhongxiangying Technology Co., Ltd. (Beijing
Zhongxiangying) 15% High-tech Enterprise
Yunnan Invensight Optoelectronics Technology Co., Ltd.
(Yunnan Invensight) 15% High-tech Enterprise
BOE Mled Technology Co., Ltd. (Mled Technology) 15% High-tech Enterprise
Hefei BOE Semiconductor Co., Ltd. (Hefei Semiconductor) 15% High-tech Enterprise
70
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
2022 2021
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
Cash on hand
RMB 796,306 336,429
USD 1,773 6.9646 12,348 1,480 6.3757 9,438
HKD 35,650 0.8933 31,846 35,673 0.8176 29,166
JPY 106,508 0.0524 5,581 528,014 0.0554 29,252
KRW 70,909 0.0055 390 70,185 0.0054 379
Other foreign currencies 49,796 47,311
Sub-total 896,267 451,975
Bank deposits
RMB 43,646,054,088 51,889,193,811
USD 2,681,806,253 6.9646 18,677,707,830 3,615,879,387 6.3757 23,053,762,209
HKD 364,050,751 0.8933 325,206,536 9,520,528 0.8176 7,783,984
JPY 10,556,434,427 0.0524 553,157,164 13,848,652,635 0.0554 767,215,356
KRW 578,139,636 0.0055 3,179,768 1,094,268,704 0.0054 5,909,051
EUR 200,208,832 7.4229 1,486,130,139 135,902,777 7.2197 981,177,279
Other foreign currencies 78,007,216 55,392,165
Sub-total 64,769,442,741 76,760,433,855
Other monetary funds
RMB 3,914,979,538 3,857,498,365
USD 13,176,444 6.9646 91,768,662 49,772,132 6.3757 317,332,183
HKD 438,830 0.8933 392,007 7 0.8176 6
JPY 435,651,794 0.0524 22,828,154 922,720,289 0.0554 51,118,704
Sub-total 4,029,968,361 4,225,949,258
Total 68,800,307,369 80,986,835,088
Including: Total overseas deposits were equivalent to RMB 5,780,461,058 (2021: RMB
7,197,634,319).
As at 31 December 2022, other monetary funds included deposits with securities companies
by the Group amounting to RMB 2,609,817, used as refundable deposits for stock
repurchase and payment for settlement with third party platform, which can be withdrew on
demand. The rest was restricted monetary funds, of which, RMB 164,299,257 was pledged
for issuance of bills payable, and an equivalent to RMB 3,863,059,287 was mainly deposits
in commercial banks as security.
As at 31 December 2021, other monetary funds included deposits with securities companies
by the Group amounting to RMB 73,244,093, used as refundable deposits for stock
repurchase and payment for settlement with third party platform, which can be withdrew on
demand. The rest was restricted monetary funds, of which, RMB 91,976,204 was pledged for
issuance of bills payable, and an equivalent to RMB 4,060,728,961 was mainly deposits in
commercial banks as security.
71
2 Financial assets held for trading
31 December 31 December
Item 2022 2021
Financial assets at fair value through profit or loss
- Structured deposit and wealth management
products 16,931,468,153 10,028,172,853
- Investment in equity instruments 256,525,783 -
Total 17,187,993,936 10,028,172,853
3 Bills receivable
(1) Classification of bills receivable
31 December 31 December
Item 2022 2021
Bank acceptance bills 211,292,061 217,734,298
Commercial acceptance bills 500,000 -
Total 211,792,061 217,734,298
All of the above bills are due within one year.
(2) The pledged bills receivable of the Group at the end of the year
As at 31 December 2022, the Group does not have any pledged bills receivable (2021: RMB
8,441,900).
(3) Outstanding endorsed or discounted bills that have not matured at the end of the year
Item
Amount Amount not
derecognised as derecognised as
at 31 December at 31 December
2022 2022
Bank acceptance bills 289,638,315 28,239,380
For the year ended 31 December 2022, there was no amount transferred to accounts
receivable from bills receivable due to non-performance of the issuers of the Group (2021:
Nil).
72
4 Accounts receivable
(1) The Group’s accounts receivable by customer type:
31 December 31 December
Item 2022 2021
Amounts due from related parties 1,070,848,317 88,954,909
Amounts due from other customers 27,252,679,049 35,496,227,051
Sub-total 28,323,527,366 35,585,181,960
Less: Provision for bad and doubtful debts 119,879,797 81,767,140
Total 28,203,647,569 35,503,414,820
(2) The Group’s accounts receivable by currency type:
2022 2021
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 12,806,183,088 12,064,153,278
USD 2,139,614,722 6.9646 14,901,560,693 3,551,733,364 6.3757 22,644,786,409
JPY 5,046,551 0.0524 264,439 1,985,544 0.0554 109,999
Other foreign currencies 615,519,146 876,132,274
Sub-total 28,323,527,366 35,585,181,960
Less: Provision for bad and doubtful
debts 119,879,797 81,767,140
Total 28,203,647,569 35,503,414,820
(3) The ageing analysis of accounts receivable is as follows:
31 December 31 December
2022 2021
Within 1 year (inclusive) 27,791,874,623 35,052,439,412
Over 1 year but within 2 years (inclusive) 232,130,123 190,180,631
Over 2 years but within 3 years (inclusive) 151,304,998 181,687,107
Over 3 years 148,217,622 160,874,810
Sub-total 28,323,527,366 35,585,181,960
Less: Provision for bad and doubtful debts 119,879,797 81,767,140
Total 28,203,647,569 35,503,414,820
The ageing is counted starting from the date when accounts receivable are recognised.
73
(4) Accounts receivable by provisioning method
31 December 2022
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 62,016,470 0% 59,921,373 97% 2,095,097
- Customers with low credit risk 1,359,564,251 5% - 0% 1,359,564,251
Collective assessment
- Customers with moderate credit risk 26,901,946,645 95% 59,958,424 0% 26,841,988,221
Total 28,323,527,366 100% 119,879,797 0% 28,203,647,569
31 December 2021
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 66,060,901 0% 46,406,137 70% 19,654,764
- Customers with low credit risk 1,209,167,604 4% - 0% 1,209,167,604
Collective assessment
- Customers with moderate credit risk 34,309,953,455 96% 35,361,003 0% 34,274,592,452
Total 35,585,181,960 100% 81,767,140 0% 35,503,414,820
(a) Criteria for collective assessment in 2022 and details:
Customer group Basis
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 2022:
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
2022 2021
Balance at the beginning of the year 81,767,140 57,863,022
Charge during the year 77,823,874 48,438,509
Recoveries during the year (27,926,578) (20,188,349)
Written-off during the year (14,534,442) (3,474,488)
Translation differences 2,749,803 (871,554)
Balance at the end of the year 119,879,797 81,767,140
74
(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
12,252,460,319, representing 43% 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
2022 2021
Prepayment for inventory 261,349,159 648,790,765
Prepayment for electricity, water, gas and
power 234,247,912 290,002,465
Others 94,167,609 174,086,777
Total 589,764,680 1,112,880,007
(2) The ageing analysis of prepayments is as follows:
31 December 2022 31 December 2021
Ageing Amount Percentage (%) Amount Percentage (%)
Within 1 year (inclusive) 471,778,052 80% 1,088,149,020 98%
Over 1 year but within 2 years (inclusive) 112,700,267 19% 9,828,654 1%
Over 2 years but within 3 years (inclusive) 2,959,783 1% 2,531,759 0%
Over 3 years 2,326,578 0% 12,370,574 1%
Total 589,764,680 100% 1,112,880,007 100%
The ageing is counted starting from the date when prepayments are recognised.
The total of five largest prepayments of the Group at the end of the year is RMB
256,769,053, representing 44% of the total prepayments.
6 Other receivables
31 December 31 December
Note 2022 2021
Dividends receivable - 2,414,503
Others (1) 975,809,236 1,920,413,875
Total 975,809,236 1,922,828,378
75
(1) Others
(a) The Group’s other receivables by customer type:
31 December 31 December
Customer type 2022 2021
Amounts due from related parties 16,588,534 1,901,777
Amounts due from other customers 969,833,087 1,927,555,914
Sub-total 986,421,621 1,929,457,691
Less: Provision for bad and doubtful
debts 10,612,385 9,043,816
Total 975,809,236 1,920,413,875
(b) The Group’s other receivables by currency type:
31 December 2022 31 December 2021
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 480,934,242 808,428,477
USD 69,194,294 6.9646 481,910,580 170,390,641 6.3757 1,086,359,610
JPY 316,069 0.0524 16,562 - - -
Other foreign currencies 23,560,237 34,669,604
Sub-total 986,421,621 1,929,457,691
Less: Provision for bad and
doubtful debts 10,612,385 9,043,816
Total 975,809,236 1,920,413,875
(c) The ageing analysis of the Group’s other receivables is as follows:
31 December 31 December
2022 2021
Within 1 year (inclusive) 367,646,687 1,637,506,264
Over 1 year but within 2 years
(inclusive) 362,777,830 21,232,566
Over 2 years but within 3 years
(inclusive) 14,948,621 24,183,841
Over 3 years 241,048,483 246,535,020
Sub-total 986,421,621 1,929,457,691
Less: Provision for bad and doubtful
debts 10,612,385 9,043,816
Total 975,809,236 1,920,413,875
The ageing is counted starting from the date when other receivables are recognised.
76
(d) Other receivables by provisioning method
31 December 2022
Book value Provision for impairment
Percentag Percentag Carrying
Category Amount e (%) Amount e (%) amount
Individual assessment 10,612,385 1% 10,612,385 100% -
Collective assessment 975,809,236 99% - 0% 975,809,236
Total 986,421,621 100% 10,612,385 1% 975,809,236
31 December 2021
Book value Provision for impairment
Percentag Percentag Carrying
Category Amount e (%) Amount e (%) amount
Individual assessment 9,043,816 0% 9,043,816 100% -
Collective assessment 1,920,413,875 100% - 0% 1,920,413,875
Total 1,929,457,691 100% 9,043,816 0% 1,920,413,875
(e) Movements of provisions for bad and doubtful debts
31 December 31 December
2022 2021
Balance at the beginning of the year 9,043,816 9,044,012
Charge during the year 1,679,930 275,661
Recoveries during the year - (115,952)
Written-off during the year (111,361) (159,905)
Balance at the end of the year 10,612,385 9,043,816
(f) The Group’s other receivables categorised by nature
31 December 31 December
Nature 2022 2021
VAT refunds and export tax rebate 512,851 253,311
Amounts due from equity transfer 200,000,000 200,000,000
Surety and deposits Note 598,972,862 1,518,208,550
Others 186,935,908 210,995,830
Sub-total 986,421,621 1,929,457,691
Less: Provision for bad and doubtful
debts 10,612,385 9,043,816
Total 975,809,236 1,920,413,875
77
Note: As at 31 December 2022, an equivalent to RMB 436,628,186 (2021: RMB
1,056,493,338) of the surety and deposits mainly represented production capacity
surety paid by the Group to suppliers.
(g) Five largest other receivables by debtor at the end of the year
The total of five largest other receivables of the Group at the end of the year was RMB
656,304,152, most of which were surety and amounts due from equity transfer. No
provision is made for bad and doubtful debts after assessment.
7 Inventories
(1) The Group’s inventories by category:
31 December 2022 31 December 2021
Provision for Provision for
impairment of impairment of
inventories/Provi inventories/Provi
sion for sion for
impairment of impairment of
costs to fulfil a costs to fulfil a
contract with a contract with a
Book value customer Carrying amount Book value customer Carrying amount
Raw materials 11,178,326,632 2,890,923,826 8,287,402,806 12,029,879,462 2,083,190,076 9,946,689,386
Work in progress 4,879,573,518 1,316,529,598 3,563,043,920 4,080,209,516 732,973,017 3,347,236,499
Finished goods 14,699,012,100 4,072,862,311 10,626,149,789 17,108,598,457 2,795,564,803 14,313,033,654
Consumables 147,843,921 - 147,843,921 130,472,966 - 130,472,966
Costs to fulfil a contract with a customer 163,373,789 - 163,373,789 67,728,931 - 67,728,931
Total 31,068,129,960 8,280,315,735 22,787,814,225 33,416,889,332 5,611,727,896 27,805,161,436
As at 31 December 2022, there was no amount of capitalised borrowing cost in the Group’s
closing balance of inventories (2021: Nil).
As at 31 December 2022, the Group had no inventory used as collateral (2021: Nil).
(2) An analysis of provision for impairment of inventories of the Group is as follows:
Balance at the
beginning of the Charge during the Decrease during Balance at the
year year the year end of the year
Raw materials 2,083,190,076 1,535,322,358 (727,588,608) 2,890,923,826
Work in progress 732,973,017 1,103,212,064 (519,655,483) 1,316,529,598
Finished goods 2,795,564,803 8,482,398,827 (7,205,101,319) 4,072,862,311
Total 5,611,727,896 11,120,933,249 (8,452,345,410) 8,280,315,735
8 Contract assets
(1) The Group’s contract assets by customer type:
A contract asset is the Group’s right to consideration in exchange for goods or services that it
has transferred to a customer when that right is conditional on something other than the
passage of time.
78
(2) Significant changes in the contract assets during the year:
Significant changes in the contract assets of the Group are as follows:
2022
RMB
Balance at the beginning of the year 75,698,324
Transfers from contract assets recognised at the beginning of the
year to receivables (65,331,121)
Increase in contract assets resulting from no unconditional right
obtained 61,269,258
Balance at the end of the year 71,636,461
(3) Movements of provision for contract assets during the year:
2022 2021
Balance at the beginning of the year - 207,800
Decrease from disposal of subsidiaries - (207,800)
Balance at the end of the year - -
9 Other current assets
31 December 31 December
2022 2021
VAT on tax credits 2,556,625,457 2,643,490,711
Prepaid income taxes 331,652,233 20,739,659
Input tax to be verified or deducted 329,605,466 575,209,816
Costs receivables for recovering products
from a customer 108,097,353 126,447,496
Others 68,056,410 213,032,028
Total 3,394,036,919 3,578,919,710
79
10 Long-term equity investments
(1) The Group’s long-term equity investments by category:
2022 2021
Investments in joint ventures 392,291,560 -
Investments in associates 13,086,523,900 7,066,228,472
Sub-total 13,478,815,460 7,066,228,472
Less: Provision for impairment 1,056,936,609 1,025,280,155
Total 12,421,878,851 6,040,948,317
80
(2) Movements of long-term equity investments during the year are as follows:
Movements during the year
Translation
differences
arising from
Investment Declared translation of
Balance at the (loss) / income Other distribution of foreign currency
beginning of the Increase in Decrease in recognised under comprehensive Other equity cash dividends or financial Balance at the
Investee year capital capital equity method income movements profits statements end of the year
Joint venture
Chongqing Maite Optoelectronics Co., Ltd. - 400,000,000 - (7,708,440) - - - - 392,291,560
Sub-total - 400,000,000 - (7,708,440) - - - - 392,291,560
Associates
Erdos BOE Energy Investment Co., Ltd. 1,409,666,833 405,200,000 - (2,983,503) - - - - 1,811,883,330
Beijing Xindongneng Investment Fund
(Limited Partnership) 2,088,917,867 - (129,798,594) 241,130,621 (61,062,079) - (104,317,491) - 2,034,870,324
Beijing Innovation Industry Investment Co.,
Ltd. 207,564,573 - - 15,651,980 - - - - 223,216,553
Beijing Electric Control Industry Investment
Co., Ltd. 231,777,557 21,234,700 - (2,556,780) 7,694,430 - - - 258,149,907
BOE Art Cloud Technology Co., Ltd. 286,976,389 129,500,000 (130,381,715) 10,026,871 - 134,476,619 - - 430,598,164
Cnoga Medical Co., Ltd. 253,501,065 - - - - - - 23,414,968 276,916,033
Tianjin Xianzhilian Investment Centre (Limited
Partnership) 968,341,880 234,000,000 - 184,737,344 - - - - 1,387,079,224
BioChain (Beijing) Science & Technology, Inc. 339,845,254 - - (5,751,469) - - - - 334,093,785
Beijing YanDong MicroElectronic Co., Ltd. 1,009,985,276 - - 34,518,797 - 126,743,478 - - 1,171,247,551
SES Imagotag SA Co., Ltd. - 4,871,837,182 - 11,536,838 - - - - 4,883,374,020
Others 269,651,778 46,917,149 (87,070,668) 49,501,421 63,317 14,310,853 (18,731,712) 452,871 275,095,009
Sub-total 7,066,228,472 5,708,689,031 (347,250,977) 535,812,120 (53,304,332) 275,530,950 (123,049,203) 23,867,839 13,086,523,900
Total 7,066,228,472 6,108,689,031 (347,250,977) 528,103,680 (53,304,332) 275,530,950 (123,049,203) 23,867,839 13,478,815,460
Less: Provision for impairment 1,025,280,155 1,056,936,609
Total 6,040,948,317 12,421,878,851
81
As at 31 December 2022, Hefei Xin Jing Yuan Electronic Materials Co., Ltd. still suffered 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 2022, the accumulated
unrecognised investment losses were RMB 14,922,087 (2021: RMB 20,352,876).
As at 31 December 2022, Beijing Infi-Hailin Venture Investment Co., Ltd. made a profit and
made up for the unrecognised investment losses of RMB 1,152,818 in the prior year, and
recognised investment income amounting to RMB 2,073,333 during the year.
11 Investments in other equity instruments
31 December 31 December
Items 2022 2021
Listed equity instruments investment
- Beijing Electronic City High Tech Group Co., Ltd. 53,614,432 56,638,836
- Bank of Chongqing Co., Ltd. 91,600,150 91,875,688
- New Century Medical Holding Co., Ltd. 9,098,008 19,810,485
Unlisted equity instruments investment
- Danhua Capital, L. P. 34,823,000 31,878,500
- Danhua Capital II, L.P. 69,646,002 63,757,002
- Kateeva Inc. 83,192,147 76,157,736
- Nanosys INC 21,591,641 47,817,750
- Baebies INC 30,600,273 28,012,830
- Illumina Fund I,L.P. 31,079,577 25,607,407
- Horizon Robotics, Inc. 35,616,005 31,722,880
- Others 22,199,071 45,809,032
Total 483,060,306 519,088,146
82
(1) Investments in other equity instruments:
Accumulated
Reason for being gains or losses Amount Reason for
designated at fair recognised in transferred from transferring from
value through other other other
other Dividend income comprehensive comprehensive comprehensive
comprehensive recognised for the income income to retained income to retained
Item income year (“-” for losses) earnings earnings
Listed equity instruments investment
With the intention
of establishing or
maintaining a
long-term
- Beijing Electronic City High Tech Group investment for
Co., Ltd. strategic reasons 206,209 (36,545,996) - Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Bank of Chongqing Co., Ltd. strategic reasons 9,918,634 (28,484,225) - Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- New Century Medical Holding Co., Ltd. strategic reasons - (131,750,842) - Not applicable
Unlisted equity instruments investment
With the intention
of establishing or
maintaining a
long-term
investment for
- Danhua Capital, L. P. strategic reasons 5,045,925 296,625 - Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Danhua Capital II, L.P. strategic reasons 20,183,700 1,998,251 - Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Kateeva Inc. strategic reasons - 329,681 - Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Nanosys INC strategic reasons - (28,757,359) - Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Baebies INC strategic reasons - 1,476,718 - Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Illumina Fund I,L.P. strategic reasons - 1,110,906 - Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Horizon Robotics, Inc. strategic reasons - 3,661,505 - Not applicable
With the intention
of establishing or
maintaining a Transfer out due
long-term to bankruptcy
investment for liquidation
- Others strategic reasons - (38,958,805) (10,091,839) derecognition
Total 35,354,468 (255,623,541) (10,091,839)
83
12 Other non-current financial assets
Item 2022 2021
Financial assets at fair value through profit or loss 2,022,967,681 606,895,447
Including: Investments in equity instruments 2,022,967,681 606,895,447
Total 2,022,967,681 606,895,447
13 Investment properties
Land use rights Buildings Total
Cost
Balance at the beginning of the year 687,434,677 1,022,831,969 1,710,266,646
Additions during the year - 5,461,739 5,461,739
Balance at the end of the year 687,434,677 1,028,293,708 1,715,728,385
Less: Accumulated depreciation or
amortisation
Balance at the beginning of the year 168,017,805 383,883,440 551,901,245
Additions during the year 13,622,701 28,179,301 41,802,002
Balance at the end of the year 181,640,506 412,062,741 593,703,247
Carrying amounts
At the end of the year 505,794,171 616,230,967 1,122,025,138
At the beginning of the year 519,416,872 638,948,529 1,158,365,401
84
14 Fixed assets
(1) Analysis of the Group’s fixed assets are as follows:
Item Plant & buildings Equipment Others Total
Cost
Balance at the beginning of the year 65,746,184,870 289,073,320,848 10,027,118,299 364,846,624,017
Additions during the year
- Purchases 22,873,906 576,061,450 1,874,710,266 2,473,645,622
- Transfers from construction in
progress 195,460,071 9,633,715,949 732,046,393 10,561,222,413
- Written-down against government
interest discounts (16,355,538) (166,721,924) (12,987) (183,090,449)
Decrease due to disposal of subsidiaries (61,688,333) (185,865,467) (88,382,014) (335,935,814)
Transfers to construction in progress - (1,161,980,085) (29,857,355) (1,191,837,440)
Disposals or written-offs during the year (176,295) (446,815,683) (169,873,534) (616,865,512)
Translation differences 4,131,352 29,007,311 6,239,955 39,378,618
Balance at the end of the year 65,890,430,033 297,350,722,399 12,351,989,023 375,593,141,455
Less: Accumulated depreciation
Balance at the beginning of the year 7,908,069,483 122,199,288,667 5,704,812,685 135,812,170,835
Charge during the year 2,072,464,102 29,207,688,566 1,947,737,403 33,227,890,071
Decrease due to disposal of subsidiaries (30,181,955) (137,710,504) (23,163,432) (191,055,891)
Transfers to construction in progress - (730,517,943) (21,961,743) (752,479,686)
Disposals or written-offs during the year (13,666) (374,611,961) (69,200,542) (443,826,169)
Translation differences 391,129 15,781,865 1,425,638 17,598,632
Balance at the end of the year 9,950,729,093 150,179,918,690 7,539,650,009 167,670,297,792
Less: Provision for impairment
Balance at the beginning of the year 34,480 1,704,957,933 188,093,885 1,893,086,298
Charge during the year - 132,578,826 10,492,666 143,071,492
Transfers to construction in progress - (19,908,202) (165,882) (20,074,084)
Disposals or written-offs during the year - (77,467,003) (2,823,470) (80,290,473)
Balance at the end of the year 34,480 1,740,161,554 195,597,199 1,935,793,233
Carrying amounts
At the end of the year 55,939,666,460 145,430,642,155 4,616,741,815 205,987,050,430
At the beginning of the year 57,838,080,907 165,169,074,248 4,134,211,729 227,141,366,884
In 2022, some of the equipment of the Group is idle and there is no clear use plan. The
Group evaluated the recoverable amount of these equipment and made provisions for
impairment of RMB 143,071,492 (2021: RMB 675,831,912) based on the evaluation results.
(2) Fixed assets pending certificates of ownership
As at 31 December 2022, fixed assets pending certificates of ownership totalled RMB
7,110,462,456 (31 December 2021: RMB 7,892,064,184) and certificates of ownership is still
being processed.
85
15 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
31 December 2022 31 December 2021
Provision for Provision for
Item Book value impairment Carrying amount Book value impairment Carrying amount
The 6th generation AMOLED project -
Chongqing 31,013,623,277 - 31,013,623,277 24,774,517,248 - 24,774,517,248
Others 12,446,773,478 74,262,087 12,372,511,391 7,369,688,455 44,493,824 7,325,194,631
Total 43,460,396,755 74,262,087 43,386,134,668 32,144,205,703 44,493,824 32,099,711,879
In 2022, some of the engineering projects of the Group is idle and cannot be further used.
The Group evaluated the residual values of these engineering projects and made a provision
for impairment of RMB 29,768,263 based on the evaluation results.
(2) Movements of major construction projects in progress during the year
Percentage Accumulated Interest rate
Balance at the of actual capitalised Interest for
beginning of Additions Transfers to Balance at the cost to interest at the capitalised capitalisation Sources of
Item Budget the year during the year fixed assets end of the year budget (%) end of the year in 2022 in 2022 (%) funding
The 6th generation Self-raised
AMOLED project - funds and
Chongqing 46,500,000,000 24,774,517,248 6,243,115,489 (4,009,460) 31,013,623,277 70.04% 624,014,961 438,224,219 4.24% borrowings
86
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 5,539,522,787 6,978,992,728 1,676,849,060 1,549,958,675 15,745,323,250
Additions during the year
- Purchases 256,914,399 8,532,419 121,172,137 - 386,618,955
- Transfers from construction in
progress - - 114,068,215 112,297 114,180,512
Decrease due to disposal of
subsidiaries - (1,732,355,021) (17,486,779) (846,913,855) (2,596,755,655)
Disposals during the year - - (548,585) - (548,585)
Translation differences - (9,139,455) 947,362 2,450,615 (5,741,478)
Written-down against interest
discount - (771,120) (120,528) (771,120) (1,662,768)
Balance at the end of the year 5,796,437,186 5,245,259,551 1,894,880,882 704,836,612 13,641,414,231
Less: Accumulated amortisation
Balance at the beginning of the year 524,719,007 2,613,841,165 999,888,044 397,376,628 4,535,824,844
Charge during the year 135,495,338 602,728,282 198,089,822 85,027,074 1,021,340,516
Decrease due to disposal of
subsidiaries - (652,040,647) (5,447,593) (204,670,848) (862,159,088)
Disposals during the year - - (490,789) - (490,789)
Translation differences - (2,483,639) 168,335 886,909 (1,428,395)
Balance at the end of the year 660,214,345 2,562,045,161 1,192,207,819 278,619,763 4,693,087,088
Carrying amount at the end of the
year 5,136,222,841 2,683,214,390 702,673,063 426,216,849 8,948,327,143
Carrying amount at the beginning of
the year 5,014,803,780 4,365,151,563 676,961,016 1,152,582,047 11,209,498,406
87
17 Goodwill
(1) Changes in goodwill
Balance at the Decrease due to
beginning of the Additions during disposal of Balance at the
Name of investee year the year subsidiaries end of the year
Book value
Beijing Yinghe Century Co., Ltd. 42,940,434 - - 42,940,434
K-Tronics (Suzhou) technology Co.,
Ltd. 8,562,464 - - 8,562,464
Beijing BOE Optoelectronics
Technology Co., Ltd. 4,423,876 - - 4,423,876
BOE Healthcare Investment &
Management Co., Ltd. 146,460,790 - - 146,460,790
SES Imagotag SA Co., Ltd. 706,406,821 - (706,406,821) -
Chengdu BOE Display Sci-tech Co.,
Ltd.. (Chengdu Display Sci-tech) 537,038,971 - - 537,038,971
Nanjing BOE Display Technology Co.,
Ltd. 155,714,415 - - 155,714,415
Hefei Jiangcheng Technology Co., Ltd. 9,391,961 - (9,391,961) -
Sub-total 1,610,939,732 - (715,798,782) 895,140,950
Provision for impairment
Beijing BOE Optoelectronics
Technology Co., Ltd. (4,423,876) - - (4,423,876)
BOE Healthcare Investment &
Management Co., Ltd. (82,137,669) - - (82,137,669)
SES Imagotag SA Co., Ltd. (394,371,200) - 394,371,200 -
Chengdu BOE Display Sci-tech Co.,
Ltd.. (Chengdu Display Sci-tech) - (147,755,754) - (147,755,754)
Sub-total (480,932,745) (147,755,754) 394,371,200 (234,317,299)
Carrying amount 1,130,006,987 (147,755,754) (321,427,582) 660,823,651
(2) Provision for impairment of goodwill
The recoverable amount of Beijing Yinghe Century Co., Ltd., Suzhou K-Tronics, BOE
Healthcare Investment & Management Co., Ltd. (“Health Investment”), Chengdu Display Sci-
tech and Nanjing BOE Display Technology Co., Ltd. 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.
As at 31 December 2022, as the present value of future cash flows of the asset group to
which Chengdu Display Sci-tech's goodwill belongs was lower than the carrying amount of
the asset group, the Group made an impairment provision of RMB 147,755,754 for the
relevant goodwill.
88
18 Long-term deferred expenses
Balance at Additions during Decrease during Balance at
31December 2021 the year the year 31December 2022
Payment for public facilities construction and
use 51,962,118 - (10,800,827) 41,161,291
Leasehold improvements 10,325,942 16,912,468 (7,807,977) 19,430,433
Others 574,242,442 61,375,716 (139,268,505) 496,349,653
Total 636,530,502 78,288,184 (157,877,309) 556,941,377
19 Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets and liabilities
2022 2021
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 151,264,910 31,020,460 113,867,486 24,884,958
Changes in fair value of investments in
other equity instruments 142,547,604 21,382,141 139,523,200 20,928,480
Depreciation of fixed assets 239,415,255 37,326,236 201,462,125 34,642,083
Assessed value added by investing real
estate in subsidiaries 119,895,400 29,973,850 125,449,252 31,362,313
Accumulated losses 459,130 75,757 422,990,806 118,064,555
Government grant 143,385,420 21,507,813 209,807,147 31,471,072
Others 59,695,684 9,274,649 306,215,006 19,010,893
Sub-total 856,663,403 150,560,906 1,519,315,022 280,364,354
Amount offset (80,310,481) (90,028,830)
Balance after offsetting 70,250,425 190,335,524
Deferred tax liabilities:
Revaluation due to business combinations
involving entities not under common
control (882,129,374) (217,980,404) (2,197,597,331) (584,383,821)
Depreciation of fixed assets (7,266,110,223) (1,094,970,944) (6,388,163,232) (984,779,332)
Long-term equity investments (120,141,687) (18,021,253) (120,141,687) (18,021,253)
Others (151,491,002) (23,744,713) (167,106,175) (28,467,297)
Sub-total (8,419,872,286) (1,354,717,314) (8,873,008,425) (1,615,651,703)
Amount offset 80,310,481 90,028,830
Balance after offsetting (1,274,406,833) (1,525,622,873)
89
(2) Details of unrecognised deferred tax assets
2022 2021
Deductible temporary differences 22,749,630,064 24,215,956,667
Deductible tax losses 44,677,908,573 19,433,679,291
Total 67,427,538,637 43,649,635,958
As at 31 December 2022, the accumulated deductible temporary differences are mainly
subsidiaries’ impairment provisions of assets and accrual of expenses. Due to the
uncertainty that there will be sufficient taxable income to cover these deductible differences
in future periods, the deferred income tax assets were not recognised in consideration of
prudence.
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
Year Note 2022 2021
2022 - 316,585,394
2023 280,957,810 290,518,573
2024 451,137,106 458,962,394
2025 1,253,378,510 1,276,919,825
2026 1,473,908,686 1,785,437,184
2027 3,146,172,377 14,979,073
2028 2,279,355,553 2,221,266,958
2029 5,008,814,339 5,296,070,440
2030 4,196,348,029 4,368,141,751
2031 2,502,424,694 2,406,109,565
2032 23,569,766,818 -
Others (a) 515,644,651 998,688,134
Total 44,677,908,573 19,433,679,291
(a) According to the applicable local tax laws, loss of some overseas subsidiaries of the
Group has indefinite carry-over period to deduct the future taxable income.
90
20 Other non-current assets
31 December 31 December
2022 2021
Surety 1,338,834,402 1,339,517,936
Prepayments for construction 153,690,890 224,400,336
Prepayment for fixed assets 148,834,349 572,510,455
VAT on tax credits - 3,424,055,815
Deferred VAT for imported equipment 2,696,796 1,407,330,930
Others 311,464,947 509,612,011
Total 1,955,521,384 7,477,427,483
21 Short-term loans
31 December 2022
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
currency Exchange rate equivalents pledged
Bank loans
- RMB 901,622,500 Guaranteed
- RMB 30,006,237 Credited
Sub-total 931,628,737
Foreign currency bank loans
- USD 128,585,504 6.9646 895,546,601 Credited
- JPY 205,792,620 0.0524 10,783,533 Credited
- HKD 600,000,000 0.8933 535,980,000 Credited
Sub-total 1,442,310,134
Total 2,373,938,871
91
31 December 2021
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
currency Exchange rate equivalents pledged
Bank loans
- RMB 1,352,433,750 Guaranteed
- RMB 140,148,195 Credited
Sub-total 1,492,581,945
Foreign currency bank loans
- USD 83,382,510 6.3757 531,621,869 Credited
- JPY 863,548,156 0.0554 47,853,518 Credited
Sub-total 579,475,387
Total 2,072,057,332
As at 31 December 2022, no short-term loan was past due (2021: Nil).
22 Bills payable
31 December 31 December
2022 2021
Bank acceptance bills 847,418,525 663,001,350
Commercial acceptance bills 22,803,013 164,956,681
Total 870,221,538 827,958,031
There is no due but unpaid bill payable at the end of the year. The bills above are all due
within one year.
92
23 Accounts payable
(1) The Group’s accounts payable by category are as follows:
31 December 31 December
2022 2021
Payables to related parties 179,047,266 142,557,107
Payables to third parties 29,655,673,198 32,313,273,587
Total 29,834,720,464 32,455,830,694
(2) The Group’s accounts payable by currency are as follows:
2022 2021
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
- RMB 21,162,560,832 23,743,766,250
- USD 1,146,041,405 6.9646 7,981,719,969 1,093,846,298 6.3757 6,974,035,842
- JPY 9,299,005,433 0.0524 487,267,885 10,050,541,520 0.0554 556,800,000
- Other foreign currencies 203,171,778 1,181,228,602
Total 29,834,720,464 32,455,830,694
As at 31 December 2022, the Group had no significant accounts payable with ageing of more
than one year.
24 Advance payments received
31 December 31 December
Item 2022 2021
Advances from related parties 188,623 961,806
Advances from third parties 79,660,354 145,178,278
Total 79,848,977 146,140,084
93
25 Contract liabilities
31 December 31 December
Item 2022 2021
Sale of goods 2,411,717,792 3,765,081,554
Contract liabilities primarily relate to the Group’s advances from goods purchase and 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:
2022
RMB
Balance at the beginning of the year 3,765,081,554
Revenue recognised that was included in the contract liability balance at
the beginning of year (3,578,825,023)
Increase of contract liabilities due to cash received at the end of the year 2,225,461,261
Balance at the end of the year 2,411,717,792
94
26 Employee benefits payable
(1) Employee benefits payable:
Balance at
Balance at Accrued during Decrease during 31 December
Note 1 January 2022 the year the year 2022
Short-term employee benefits (2) 5,098,605,495 16,306,120,923 (18,748,357,070) 2,656,369,348
Post-employment benefits
- defined contribution plans (3) 34,235,855 1,643,219,063 (1,619,403,086) 58,051,832
Termination benefits 313,887 125,276,407 (21,478,651) 104,111,643
Total 5,133,155,237 18,074,616,393 (20,389,238,807) 2,818,532,823
Balance at
Balance at Accrued during Decrease during 31 December
Note 1 January 2021 the year the year 2021
Short-term employee benefits (2) 3,733,572,462 18,689,911,958 (17,324,878,925) 5,098,605,495
Post-employment benefits
- defined contribution plans (3) 21,628,033 1,142,227,556 (1,129,619,734) 34,235,855
Termination benefits 3,423,302 26,091,251 (29,200,666) 313,887
Total 3,758,623,797 19,858,230,765 (18,483,699,325) 5,133,155,237
(2) Short-term employee benefits
Balance at
Balance at Accrued during Decrease during 31 December
1 January 2022 the year the year 2022
Salaries, bonuses, allowances 4,304,276,089 12,995,283,767 (15,610,071,500) 1,689,488,356
Staff welfare - 1,212,939,702 (1,212,939,702) -
Social insurance 43,095,684 780,825,248 (778,894,329) 45,026,603
Medical insurance 38,317,039 720,094,785 (718,045,022) 40,366,802
Work-related injury insurance 2,583,340 44,668,965 (44,821,987) 2,430,318
Maternity insurance 2,195,305 16,061,498 (16,027,320) 2,229,483
Housing fund 33,089,973 946,098,096 (949,389,930) 29,798,139
Labour union fee, staff and workers’
education fee 697,018,542 370,534,929 (196,078,722) 871,474,749
Staff bonus and welfare fund 20,553,209 - - 20,553,209
Other short-term employee benefits 571,998 439,181 (982,887) 28,292
Total 5,098,605,495 16,306,120,923 (18,748,357,070) 2,656,369,348
95
Balance at
Balance at Accrued during Decrease during 31 December
1 January 2021 the year the year 2021
Salaries, bonuses, allowances 3,184,794,255 15,851,656,348 (14,732,174,514) 4,304,276,089
Staff welfare - 1,087,174,457 (1,087,174,457) -
Social insurance 32,667,412 612,771,541 (602,343,269) 43,095,684
Medical insurance 29,551,408 563,695,980 (554,930,349) 38,317,039
Work-related injury insurance 1,614,132 32,393,361 (31,424,153) 2,583,340
Maternity insurance 1,501,872 16,682,200 (15,988,767) 2,195,305
Housing fund 27,141,059 679,488,225 (673,539,311) 33,089,973
Labour union fee, staff and workers’
education fee 467,724,919 445,370,010 (216,076,387) 697,018,542
Staff bonus and welfare fund 20,553,209 - - 20,553,209
Other short-term employee benefits 691,608 13,451,377 (13,570,987) 571,998
Total 3,733,572,462 18,689,911,958 (17,324,878,925) 5,098,605,495
(3) Post-employment benefits - defined contribution plans
Balance at
Balance at Accrued during Decrease during 31 December
1 January 2022 the year the year 2022
Basic pension insurance 30,284,940 1,408,163,207 (1,401,435,524) 37,012,623
Unemployment insurance 906,583 45,871,870 (45,457,632) 1,320,821
Annuity 3,044,332 189,183,986 (172,509,930) 19,718,388
Total 34,235,855 1,643,219,063 (1,619,403,086) 58,051,832
Balance at
Balance at Accrued during Decrease during 31 December
1 January 2021 the year the year 2021
Basic pension insurance 19,052,829 1,055,978,182 (1,044,746,071) 30,284,940
Unemployment insurance 1,110,934 38,192,020 (38,396,371) 906,583
Annuity 1,464,270 48,057,354 (46,477,292) 3,044,332
Total 21,628,033 1,142,227,556 (1,129,619,734) 34,235,855
96
27 Taxes payable
2022 2021
Value-added tax 142,337,422 101,448,944
Corporate income tax 287,859,236 1,266,575,648
Individual income tax 48,228,934 58,763,365
City construction tax 428,525,949 383,455,432
Education surcharges and local education
surcharges 306,515,854 274,382,851
Others 117,933,793 115,623,065
Total 1,331,401,188 2,200,249,305
28 Other payables
31 December 31 December
Note 2022 2021
Interest payable 151,200 126,701
Dividends payable 6,410,514 6,561,972
Others (1) 19,625,661,555 23,828,686,269
Total 19,632,223,269 23,835,374,942
97
(1) Others
(a) The Group’s other payables by category are as follows:
31 December 31 December
Note 2022 2021
Projects and equipment 13,185,841,311 16,494,274,603
Fund transaction (Note) 3,130,038,067 3,077,116,568
Deferred VAT for imported
equipment 196,440,706 927,825,520
Repurchase obligation of restricted
shares V.39 753,440,228 835,215,390
Accrued water and electricity charges
and freight 407,770,818 348,955,956
Security and deposits 505,702,125 537,788,828
External agency fee 172,851,477 193,251,964
Others 1,273,576,823 1,414,257,440
Total 19,625,661,555 23,828,686,269
The Group’s significant other payables aged over one year are payables of projects
and equipment.
Note: The other payables by the Group as at 31 December 2022 are amounts and
interests due to original controlling shareholders of Nanjing Display Technology
and Chengdu Display Sci-tech acquired in 2020, with interest rates of 2.175%
and 0%.
(b) The Group’s other payables by currency are as follows:
31 December 2022 31 December 2021
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 13,336,886,237 16,157,489,471
USD 736,000,871 6.9646 5,125,951,666 857,826,112 6.3757 5,469,241,942
JPY 18,492,932,844 0.0524 969,029,681 38,321,236,336 0.0554 2,122,996,493
Other foreign currencies 193,793,971 78,958,363
Total 19,625,661,555 23,828,686,269
98
29 Non-current liabilities due within one year
As at 31 December, the non-current liabilities due within one year for the Group were long-
term loans due within one year, lease liabilities,long-term payables and contribution of non-
controlling interests with redemption provisions.
31 December 2022
Credited/
collateralised
Amount in RMB/RMB guaranteed/
Note original currency Exchange rate equivalents pledged
Bank loans
- RMB 117,008,022 Pledged
- RMB 11,356,508,048 Collateralised
- RMB 94,144,290 Guaranteed
- RMB 5,528,984,741 Credited
- USD 694,159,756 6.9646 4,834,545,037 Collateralised
Sub-total 21,931,190,138
Long-term payables V.33 143,117,840
Lease liabilities V.60 118,302,766
Contribution of non-controlling
interests with redemption
provisions V.35 511,140,000
Total 22,703,750,744
31 December 2021
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 27,993,413 Pledged
- RMB 7,544,963,177 Collateralised
- RMB 1,718,446 Guaranteed
- RMB 11,614,011,025 Credited
- USD 1,136,473,175 6.3757 7,245,812,022 Collateralised
- USD 63,796,480 6.3757 406,747,218 Guaranteed
- EUR 141,129,872 7.2197 1,018,915,337 Credited
- EUR 6,605,651 7.2197 47,690,819 Pledged
Sub-total 27,907,851,457
Long-term payables V.33 520,546,343
Lease liabilities V.60 92,788,055
Contribution of non-controlling
interests with redemption
provisions V.35 353,772,859
Total 28,874,958,714
99
30 Other current liabilities
31 December 31 December
Item 2022 2021
Warranty provisions 3,368,859,501 3,595,808,261
Refund liability 101,672,253 141,997,964
Pending output VAT 139,462,782 216,565,073
Others 3,973,137 97,161,211
Total 3,613,967,673 4,051,532,509
The other current liabilities of the Group were warranty provision. The warranty 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.
31 Long-term loans
31 December 2022
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 1,058,900,427 Pledged
- RMB 49,363,519,760 Collateralised
- RMB 4,326,076,807 Guaranteed
- RMB 58,386,326,488 Credited
- USD 4,586,027,388 6.9646 31,939,846,346 Collateralised
Less: Long-term loans due within one
year V.29 21,931,190,138
Total 123,143,479,690
100
31 December 2021
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 537,167,163 Pledged
- RMB 54,546,276,790 Collateralised
- RMB 3,703,662,752 Guaranteed
- RMB 46,573,377,423 Credited
- USD 5,747,119,917 6.3757 36,641,912,455 Collateralised
- USD 101,494,400 6.3757 647,097,846 Guaranteed
- EUR 12,407,013 7.2197 89,574,912 Pledged
- EUR 172,784,008 7.2197 1,247,448,703 Credited
Less: Long-term loans due within one
year V.29 27,907,851,457
Total 116,078,666,587
32 Debentures payable
(1) Debentures payable
31 December 31 December
Item 2022 2021
Debentures payable - 359,586,437
Less: Debentures payable due within one year - -
Total - 359,586,437
101
(2) The movements of debenture payable:
Amortisatio
Balance at Increase n of Decrease due Balance at
Maturity Issuance the beginning during the Interest at discounts or to disposal of Translation the end of the
Debenture Face value Issuance date period amount of the year year face value premium subsidiaries differences year
EUR EUR
Euro PP 10,000,000 2016.12.29 7 years 10,000,000 71,955,154 - 2,268,020 95,736 (76,355,057) 2,036,147 -
EUR EUR
Euro PP 30,000,000 2017.03.29 6 years 30,000,000 216,118,687 - 6,804,060 353,720 (229,394,798) 6,118,331 -
EUR EUR
Euro PP 10,000,000 2019.07.22 6 years 10,000,000 71,512,596 - 2,948,426 158,190 (76,678,281) 2,059,069 -
Total 359,586,437 - 12,020,506 607,646 (382,428,136) 10,213,547 -
SES Imagotag SA Co., Ltd. (“SES”) issued two private placement bonds with a total face value of Euro 40 million to institutional investors on 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 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.
102
33 Long-term payables
31 December 31 December
Item 2022 2021
Obligations under finance leases 372,704,917 1,427,139,181
Less: Obligations under finance leases due within one
year 143,117,840 520,546,343
Total 229,587,077 906,592,838
As at 31 December 2022, the Group sold and leased back some of its machinery and
equipment and construction in progress. Since asset sales and lease transactions are
interrelated, and it is almost certain that they will be repurchased after the lease term expires,
the Group conducts accounting treatment according to mortgage loans and presents them as
long-term payables.
34 Deferred income
Balance at the Amounts
beginning of the Additions during recognised in Balance at the
Item year the year other income Other changes end of the year
Related to assets 3,865,273,297 704,986,506 (739,587,184) (32,283,470) 3,798,389,149
Related to income 2,550,816,314 2,610,333,056 (3,781,917,899) (21,273,288) 1,357,958,183
Total 6,416,089,611 3,315,319,562 (4,521,505,083) (53,556,758) 5,156,347,332
35 Other non-current liabilities
31 December 31 December
Item Note 2022 2021
Contribution of non-controlling interests
with redemption provisions (1) 2,499,075,805 3,020,160,654
Deferred VAT for imported equipment - 479,505,410
Others - 36,143,812
Total 2,499,075,805 3,535,809,876
103
(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. The
Company recognises the above non-controlling interests contribution as a financial liability
which is subsequently measured at the cost of amortisation.
The Company has an obligation to repurchase part of the equity of non-controlling interests
of its subsidiary Fuzhou BOE on 29 September 2023, with the repurchase principal of RMB
500,000,000, and the Company recognised the principal and interest of the financial liabilities
for the redemption obligation to non-current liabilities due within one year (Note V.29).
36 Share capital
Balance at the
beginning of the Balance at the
year Changes during the year end of the year
Issuance of new Cancellation of
shares treasury shares Sub-total
Total shares 38,445,746,482 - (249,383,061) (249,383,061) 38,196,363,421
On 20 September 2022, the Company repurchased and cancelled 243,229,361 domestically
listed foreign shares (B shares) at China Securities Depository and Clearing Corporation
Limited Shenzhen Branch. After the repurchase and cancellation, the total share capital of
the Company changed from 38,445,746,482 to 38,202,517,121 shares.
On 14 October 2022, the Company repurchased and cancelled 6,153,700 shares of
restricted shares at China Securities Depository and Clearing Corporation Limited Shenzhen
Branch. After the repurchase and cancellation, the total share capital of the Company
changed from 38,202,517,121 to 38,196,363,421 shares.
37 Other equity instruments
(1) Financial instruments (including perpetual bonds) that remain outstanding at the end of the
year are set out as follows:
Maturity
date or Conditions
Outstanding financial Accounting Issuance renewal for Conversion
instruments Issuance date classification Interest rate price Quantity Amount status conversion status
Equity RMB Not Not
20BOEY1 28 February 2020 instrument 3.64% 100/bond 20 million RMB 2 billion 3+N years applicable applicable
Equity RMB Not Not
20BOEY2 19 March 2020 instrument 3.54% 100/bond 20 million RMB 2 billion 3+N years applicable applicable
Equity RMB Not Not
20BOEY3 27 April 2020 instrument 3.50% 100/bond 20 million RMB 2 billion 3+N years applicable applicable
Equity RMB Not Not
22BOEY1 25 March 2022 instrument 3.50% 100/bond 20 million RMB 2 billion 3+N years applicable applicable
Total 80 million RMB 8 billion
104
(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”); On March 25, 2022, 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. (digital
economy) in 2022 (the First Phase), which referred to as 22BOEY1 (“2022 bond”).
Both 2019 bond, 2020 bond and 2022 bond have a base term of 3 years and take 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, 2020 bond and 2022 bond at the end of the
period. The nominal interest rate of the 2019 bond, 2020 bond and 2022 bond is fixed during
the first period, and then is reset once every period. The nominal interest rate in the first
period is the initial benchmark interest rate plus the initial spread, and the nominal interest
rate in the subsequent period is adjusted to the current benchmark interest rate plus the
initial spread and 300 basis points. Therefore, when the Company exercises the renewal
option, the nominal interest rate will significantly increase, and the corresponding nominal
interest will also increase sharply. The 2019 bond, 2020 bond and 2022 bond have an
issuer’s right to defer the payment of interest. Unless a mandatory interest payment event
occurs (including distributions to ordinary shareholders and decrease of registered capital).
At each interest payment date of the bonds, the Company may choose at its discretion
whether to defer the payment of the current interest as well as all the deferred interests and
the yields under this term until the next interest payment date without being subjected to any
limit on the number of interest deferring attempts.
The 2019 bond with a three-year issuance period will expire on 28 October 2022. The
Company has decided not to exercise the bond issuer’s option to renew the bond and has
paid the principal and interest of the bond in full. As at 31 December 2022, the actual
issuance of the 2020 bond and 2022 bond amounted to RMB 8,000,000,000 in total, and the
Company considers that the renewable corporate bonds do not meet the definition of
financial liabilities, and therefore will charge the total amount of the issuance to other equity
instruments after deducting underwriting fees and other transaction costs.
(3) Movement of the financial instruments (including perpetual bonds) that remain outstanding at
the end of the year:
Outstanding At the beginning of the year Additions during the year Decrease during the year Accumulated interest At the end of the year
financial Carrying Carrying Carrying Charge for the Paid during Carrying
instruments Quantity amount Quantity amount Quantity amount year the year Quantity amount
19BOEY1 80,000,000 8,014,033,565 - - (80,000,000) (7,957,047,264) 263,013,699 (320,000,000) - -
20BOEY1 20,000,000 2,050,610,478 - - - - 72,800,000 (72,800,000) 20,000,000 2,050,610,478
20BOEY2 20,000,000 2,045,184,865 - - - - 70,800,000 (70,800,000) 20,000,000 2,045,184,865
20BOEY3 20,000,000 2,037,168,519 - - - - 70,000,000 (70,000,000) 20,000,000 2,037,168,519
22BOEY1 - - 20,000,000 1,989,320,755 - - 54,082,191 - 20,000,000 2,043,402,946
Total 140,000,000 14,146,997,427 20,000,000 1,989,320,755 (80,000,000) (7,957,047,264) 530,695,890 (533,600,000) 80,000,000 8,176,366,808
105
(4) Relevant information of amounts attributable to holders of equity instruments:
31 December 31 December
2022 2021
Attributable to shareholders of the Company 136,089,410,395 143,204,240,947
- Equity attributable to ordinary shareholders of
the Company 127,913,043,587 129,057,243,520
- Equity attributable to holders of the Company’s
other equity instruments 8,176,366,808 14,146,997,427
Equity attributable to non-controlling shareholders 65,960,886,731 74,174,525,569
- Equity attributable to non-controlling ordinary
shareholders 65,960,886,731 74,174,525,569
- Equity attributable to non-controlling
shareholders of other equity instruments - -
(5) Accrued interest on holders of other equity instruments
In 2022, as the above-mentioned issued renewable corporate bonds are cumulative other
equity instruments, the Company accrued interest of RMB 530,695,890 on renewable
corporate bonds from undistributed profits and paid interest of RMB 533,600,000 on
renewable corporate bonds.
38 Capital reserve
Other capital
Item Note Share premium reserves Total
Balance at the beginning of the year 53,380,787,828 536,821,266 53,917,609,094
Add: Changes in shareholding ratio
of subsidiaries 1,135,268,806 - 1,135,268,806
Equity-settled share-based
payment XI - 654,336,707 654,336,707
Other movements in equity of
associates V.10 - 274,685,689 274,685,689
Cancellation of treasury shares (641,811,942) - (641,811,942)
Others (42,952,736) (78,631,226) (121,583,962)
Balance at the end of the year 53,831,291,956 1,387,212,436 55,218,504,392
106
39 Treasury shares
Balance at the
beginning of the Additions during Reductions during Balance at the
Item year the year the year end of the year
Treasury shares 3,415,768,207 1,048,154,539 (955,720,835) 3,508,201,911
According to the Proposal of Repurchase of Certain Domestically Listed Foreign Shares (B
shares) by the Company deliberated on an item-by-item basis and adopted in the 39th
meeting of the ninth session of the Board of Directors held on 30 March 2022 and the 2021
annual general meeting of shareholders held on 28 April 2022, the Company repurchased its
shares through centralised price bidding transactions with a designated securities account for
repurchase. The Company has repurchased the first batch of shares on 27 June 2022. By
the delivery date 2 September 2022, the Company repurchased 243,229,361 B shares in
total by paying total consideration of RMB 856,052,540. On 20 September 2022, the
Company completed the repurchase and cancellation procedures at China Securities
Depository and Clearing Corporation Limited Shenzhen Branch. The shortfall between the
cancelled treasury shares and the share capital of RMB 612,823,179 is deducted from
Capital reserve - Share premium.
According to the Proposal of Repurchase of Certain Public Shares by the Company
deliberated and adopted in the thirty-first meeting of the ninth session of the Board of
Directors meeting held on 27 August 2021, the Company is allowed to use its own funds to
repurchase certain of its shares through centralised price bidding transactions. The Company
repurchased the shares for the first time on 2 September 2021. The Company has
repurchased its shares by centralised price bidding transactions with a designated securities
account for repurchase during 2022. The Company repurchased 39,580,919 A shares in total
by paying total consideration of RMB 192,101,999.
According to the Proposal of Repurchase and Cancellation of Certain Restricted Shares by
the Company deliberated and adopted in the fifth meeting of the tenth session of the Board
of Directors meeting held on 26 August 2022, the Company completed repurchase and
cancellation of 6,153,700 restricted shares before 14 October 2022 at an average
repurchased price of RMB 5.71/share. The corresponding reduction of the treasury shares
are RMB 35,142,463, the shortfall between the cancelled treasury shares and the share
capital of RMB 28,988,763 is deducted against Capital reserve—Share premium.
In 2022, the Company recognised RMB 64,525,832 of restricted share dividends against
Other payables—the Repurchased obligation of restricted shares (Note V. 28) and Treasury
shares.
107
40 Other comprehensive income
Movements during the year
Less: Amount Less: Transfer of
Balance at the transferred Net-of-tax other Balance at the end
end of previous from other Net-of-tax amount amount comprehensive of the year
year attributable Less: comprehensive attributable to attributable to income to attributable to
to shareholders Income tax income to profit shareholders of the non-controlling retained shareholders of the
Item of the Company Before-tax amount expenses or loss Company interests earnings Company
Items that will not be reclassified to profit or
loss 34,424,335 (133,368,736) (453,661) - (132,915,075) - 22,781,941 (121,272,681)
Including: Other comprehensive income
recognised under equity
method 207,633,206 (53,367,649) - - (53,367,649) - 32,873,780 121,391,777
Changes in fair value of
investments in other equity
instruments (173,208,871) (80,001,087) (453,661) - (79,547,426) - (10,091,839) (242,664,458)
Items that may be reclassified to profit or loss 79,126,812 (1,011,198,322) - 13,903,395 (1,031,622,161) 6,520,444 - (952,495,349)
Including: Other comprehensive income
recognised under equity
method (284,718) 63,317 - (64,550) 127,867 - - (156,851)
Translation differences arising
from translation of foreign
currency financial statements 79,411,530 (1,011,261,639) - 13,967,945 (1,031,750,028) 6,520,444 - (952,338,498)
Total 113,551,147 (1,144,567,058) (453,661) 13,903,395 (1,164,537,236) 6,520,444 22,781,941 (1,073,768,030)
108
41 Surplus reserve
Balance at the
beginning of the Additions during Others changes Balance at the
Item year the year during the year end of the year
Statutory surplus reserve 2,599,918,896 348,186,351 3,287,378 2,951,392,625
Discretionary surplus reserve 289,671,309 - - 289,671,309
Total 2,889,590,205 348,186,351 3,287,378 3,241,063,934
42 Retained earnings
Item Note 2022 2021
Retained earnings at the beginning of the
year (before adjustment) 37,106,514,799 15,509,794,622
Total adjustments for opening retained
earnings (“+” for increase; “-” for
decrease) - 35,577,201
Retained earnings at the beginning of the
year (after adjustment) 37,106,514,799 15,545,371,823
Add: Net profits for the year attributable to
shareholders of the Company 7,550,877,790 25,960,751,646
Less: Appropriation for statutory surplus
reserve 348,186,351 439,649,657
Interest on holders of other equity
instruments V.37 530,695,890 533,600,000
Dividends to ordinary shares 7,958,923,130 3,476,073,919
Transfer of other comprehensive
income to retained earnings (a) (19,494,563) (49,714,906)
Retained earnings at the end of the year 35,839,081,781 37,106,514,799
According to the Annual Shareholders’ Meeting for 2021 held on 28 April 2022, the Company
distributed cash dividends to shareholders of A shares and B shares on 30 May 2022 (A
shares) and 1 June 2022 (B shares), with RMB 2.1 (2021: RMB 1) every 10 shares and a
profit distribution amount of RMB 7,961,342,043. Considering the turnover rate, the
corresponding dividends of the expected non-exercisable portions of restricted shares are
RMB 2,418,913 with a profit distribution of RMB 7,958,923,130 (2021: RMB 3,476,073,919).
As at 31 December 2022, the consolidated retained earnings attributable to the Company
included appropriation to surplus reserves made by the Company’s subsidiaries amounting
to RMB 6,206,465,315 (2021: RMB 5,488,720,290).
(a) The amounts both transferred from other comprehensive income to retained earnings
which is associates’ gains from disposal of other equity instrument investments
included in retained earnings and changes in the fair value of other equity instrument
investments are carried out to retained earnings in 2022 are RMB 19,494,563 (2021:
RMB 49,714,906).
109
43 Operating income and operating costs
2022 2021
Item Income Cost Income Cost
Principal activities 174,113,214,324 154,442,890,090 217,251,896,977 155,258,379,475
Other operating activities 4,300,516,855 3,087,676,062 3,783,821,035 2,040,446,306
Total 178,413,731,179 157,530,566,152 221,035,718,012 157,298,825,781
Including: Revenue from contracts with
customers 177,667,655,331 157,352,470,042 220,166,407,207 157,114,068,547
Other income - Leases 746,075,848 178,096,110 869,310,805 184,757,234
Information on income of principal activities has been included in Note XIV.
Revenue and the related costs of the Group's sales before intended use are as follows:
Relating to ordinary activities:
2022 2021
Operating income 1,407,856,936 1,725,918,507
Operating costs 1,514,976,278 1,313,600,486
44 Taxes and surcharges
2022 2021
Property tax 561,061,660 502,150,698
City maintenance and construction tax 268,999,607 386,889,711
Education surcharges and local education
surcharges 193,572,818 278,848,244
Stamp duty 167,033,833 168,092,921
Land use tax 50,378,527 49,797,281
Others 34,124,894 38,426,971
Total 1,275,171,339 1,424,205,826
110
45 Selling and distribution expenses
2022 2021
Warranty provisions 2,390,095,031 3,417,085,420
Staff costs 1,112,021,277 1,350,848,641
Share-based payments 97,853,078 75,191,185
Others 633,320,911 641,464,732
Total 4,233,290,297 5,484,589,978
46 General and administrative expenses
2022 2021
Staff costs 3,251,030,370 3,810,075,453
Repair expense 68,934,663 94,713,646
Depreciation and amortisation 971,573,303 931,978,993
Share-based payments 238,162,832 218,406,816
Others 1,717,935,838 1,638,198,681
Total 6,247,637,006 6,693,373,589
47 Research and development expenses
2022 2021
Staff costs 4,601,448,025 5,065,671,981
Material expenses 1,907,254,468 1,678,488,408
Depreciation and amortisation 2,000,893,037 1,913,242,133
Share-based payments 269,690,937 241,880,815
Others 2,321,482,210 1,717,142,990
Total 11,100,768,677 10,616,426,327
111
48 Financial expenses
2022 2021
Interest expenses from loans 4,033,749,371 5,219,339,546
Less: Borrowing costs capitalised 461,537,933 352,561,213
Interest income from bank deposits (1,483,022,892) (1,050,431,325)
Exchange losses / (gains) 258,458,498 (248,019,022)
Other financial expenses 97,483,531 114,051,216
Total 2,445,130,575 3,682,379,202
The interest rate per annum, at which the borrowing costs were capitalised by the Group,
was 3.25% - 4.25% (2021: 0.76% - 3.24%) for the year.
49 Other income
2022 2021
Government grants related to assets 739,587,184 507,320,798
Government grants related to income 4,717,326,643 1,567,752,188
Others 28,615,497 17,692,742
Total 5,485,529,324 2,092,765,728
The amount of government subsidies related to income received by the Group in 2022 and
directly included in other income was RMB 935,408,744.
112
50 Investment income
Note 2022 2021
Income from long-term equity investments
accounted for using the equity method V.10 528,103,680 1,245,036,895
Investment income from disposal of long-
term equity investments VI.1 829,872,568 37,327,797
Dividend income from investments in other
equity instruments V.11 35,354,468 24,695,749
Including: Dividend income from
investments in other equity instruments
held at the balance sheet date 35,354,468 24,695,749
Investment income from disposal of
financial assets held for trading 116,153,975 36,689,179
Investment income from disposal of debt
investments - 3,739,725
Gains from remeasurement of remaining
equity interests to fair value upon loss of
control VI.1 4,266,631,856 -
Others 318,151,337 -
Total 6,094,267,884 1,347,489,345
51 Gains from changes in fair value
Item 2022 2021
Financial assets held for trading 159,344,584 84,966,963
52 Credit losses
Item 2022 2021
Accounts receivable 49,897,296 28,250,160
Other receivables 1,679,930 159,709
Total 51,577,226 28,409,869
113
53 Impairment losses
2022 2021
Impairment losses of inventories 6,975,372,718 3,437,630,440
Impairment losses of fixed assets 143,071,492 675,831,912
Impairment losses of construction in progress 29,768,263 83,037,514
Impairment losses of long-term equity investments 8,503,403 2,009,770
Impairment losses of goodwill 147,755,754 279,742,216
Total 7,304,471,630 4,478,251,852
54 Gains from asset disposals
Amount recognised
in extraordinary
gain and loss in
Item 2022 2021 2022
Gains from the disposal of assets held for sale - 156,565,635 -
Gains / (losses) from disposal of fixed assets 7,963,317 (4,596,757) 7,963,317
Gains from disposal of intangible assets - 29,726 -
Losses from disposal of construction in
progress - (94,570) -
Gains from disposal of right-of-use assets 3,002,239 1,601,757 3,002,239
Total 10,965,556 153,505,791 10,965,556
114
55 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 2022 2021 2022
Government grants 1,751,445 2,464,320 1,751,445
Others 161,491,412 129,143,626 161,491,412
Total 163,242,857 131,607,946 163,242,857
Government grants recognised in profit or loss for the current period
Item 2022 2021
Policy incentives and others 1,751,445 2,464,320
(2) Non-operating expenses
Amount recognised
in extraordinary
gain and loss in
2022 2021 2022
Donations provided 28,491,697 4,901,023 28,491,697
Losses from scrapping of non-current assets 17,322,542 18,096,305 17,322,542
Others 41,435,304 32,217,774 41,435,304
Total 87,249,543 55,215,102 87,249,543
115
56 Income tax expenses
Note 2022 2021
Current tax expense based on tax law and
regulations 1,675,605,623 4,072,640,975
Changes in deferred tax assets/liabilities (1) 112,788,484 115,330,429
Total 1,788,394,107 4,187,971,404
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
2022 2021
Origination and reversal of temporary differences 112,788,484 115,330,429
(2) Reconciliation between income tax expenses and accounting profit:
2022 2021
Profit before taxation 51,218,939 35,084,376,259
Expected income tax expenses at tax rate of 15% 7,682,841 5,262,656,439
Add: Effect of different tax rates applied by
subsidiaries (14,751,718) 54,451,529
Effect of non-deductible costs, expenses and
losses 315,429,605 236,708,708
Tax effect of weighted deduction and tax
preference (2,652,168,644) (1,428,917,005)
Utilisation of prior year tax losses (49,695,309) (1,690,731,054)
Tax effect of deductible losses of deferred tax
assets not recognised 4,456,877,895 815,217,892
Tax effect of deductible temporary differences
of deferred tax assets not recognised (274,980,563) 1,006,609,982
Effects of tax rate changes on deferred tax - (68,025,087)
Income tax expenses 1,788,394,107 4,187,971,404
116
In accordance with the Announcement of the Ministry of Finance, the State Taxation
Administration and the Ministry of Science and Technology on Increasing Efforts for Pre-tax
Deduction to Support Scientific and Technological Innovation (Announcement [2022] No.28
of the Ministry of Finance and the State Taxation Administration), high-tech enterprises are
allowed to deduct the full amount of equipment and appliances newly purchased during the
period from 1 October 2022 to 31 December 2022 from the taxable income amount on a one-
off basis in the current year and allowed to conduct 100% weighted deduction before tax.
57 Basic earnings per share and diluted earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable 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.
2022 2021
Consolidated net profit attributable to shareholders
of the Company 7,550,877,790 25,960,751,646
Less: Current interest of other equity instruments 530,695,890 533,600,000
Less: Current dividends of restricted shareholders 64,525,832 31,234,036
Consolidated net profit attributable to ordinary
shareholders of the Company 6,955,656,068 25,395,917,610
Weighted average number of ordinary shares
outstanding (shares) 37,502,641,911 35,704,986,088
Basic earnings per share (RMB/share) 0.19 0.71
Weighted average number of ordinary shares is calculated as follows:
2022 2021
Issued ordinary shares at the beginning of the year 37,638,356,849 34,448,398,830
Add: Weighted average number of ordinary shares
issued in current period - 1,330,137,380
Less: Weighted average number of ordinary shares
repurchased in current period 135,714,938 73,550,122
Weighted average number of ordinary shares at the
end of the year 37,502,641,911 35,704,986,088
117
58 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
2022 2021
(a) Reconciliation of net (loss) / profit to cash
flows from operating activities:
Net (loss) / profit (1,737,175,168) 30,896,404,855
Add: Credit losses 51,577,226 28,409,869
Impairment loss 7,304,471,630 4,478,251,852
Depreciation of fixed assets,
investment properties and right-of-
use assets 33,422,031,705 33,432,161,074
Amortisation of intangible assets 995,315,014 1,185,263,603
Amortisation of long-term deferred
expenses 83,058,206 130,732,527
Gains from disposal of fixed assets,
intangible assets, and other long-
term assets (10,965,556) (154,943,108)
Losses from scrapping of fixed assets
and intangible assets 15,873,895 18,096,305
Financial expenses 4,070,314,610 4,521,336,008
Gains from changes in fair value (159,344,584) (84,966,963)
Investment income (6,094,267,884) (1,347,489,345)
Share-based payments 649,427,866 640,692,637
Change in deferred income (1,259,742,279) 2,177,609,983
Change in deferred tax assets 25,329,486 14,705,564
Change in deferred tax liabilities 136,748,088 100,681,820
Increase in inventories (3,360,776,944) (13,376,494,050)
Decrease / ( increase) in operating
receivables 7,975,232,270 (8,905,074,070)
Increase in operating payables 914,859,724 8,943,309,995
Net cash flows from operating activities 43,021,967,305 62,698,688,556
118
(b) Change in cash and cash equivalents:
2022 2021
Cash and cash equivalents at the end of the
year 64,382,037,764 76,623,486,083
Less: Cash and cash equivalents at the
beginning of the year 76,623,486,083 68,064,736,371
Net (decrease) / increase in cash and cash
equivalents (12,241,448,319) 8,558,749,712
(2) Information on acquisition or disposal of subsidiaries during the current year:
Information on acquisition of subsidiaries:
2022 2021
Cash or cash equivalents paid during the
year for acquiring subsidiaries during the
year - (5,916,812)
Less: Cash and cash equivalents held by
acquired subsidiaries - (3,101,277)
Net payment for acquisition of subsidiaries - (2,815,535)
Information on disposal of subsidiaries:
2022 2021
Cash or cash equivalents received during
the year for disposing of subsidiaries
during the year 1,248,072,000 -
Less: Cash and cash equivalents held by
acquired subsidiaries 311,313,078 -
Net cash received for disposing of
subsidiaries 936,758,922 -
2022 2021
Cash or cash equivalents received during
the year for disposing of subsidiaries
during the year - 88,028,400
Less: Cash and cash equivalents held by
acquired subsidiaries 144,689,766 248,916,397
Net payment for disposal of subsidiaries (144,689,766) (160,887,997)
119
(3) Details of cash and cash equivalents
2022 2021
Cash on hand 896,267 451,975
Bank deposits available on demand 64,378,531,680 76,549,790,015
Other monetary funds available on demand 2,609,817 73,244,093
Closing balance of cash and cash equivalents 64,382,037,764 76,623,486,083
Note: The cash and cash equivalents disclosed above do not include the interest accrued
on bank deposits at the end of the period and the use of other currency funds subject
to restrictions.
59 Assets with restrictive ownership titles or right of use
Balance at the
beginning of the Additions during Decreases during Balance at the end
Item year the year the year of the year Reason for restriction
Mainly deposits, pledged for
Cash at bank and on hand 4,152,705,165 2,382,241,772 (2,507,588,393) 4,027,358,544 drawing bills payable
Endorsed with resource and
Bills receivable 23,902,855 28,239,380 (23,902,855) 28,239,380 pledged for drawing bill
Investment properties 41,247,205 - (1,529,204) 39,718,001 Mortgaged as collateral
Fixed assets 171,435,160,686 2,484,511,825 (33,500,815,134) 140,418,857,377 Mortgaged as collateral
Construction in progress 316,234,570 17,494,722,323 (15,759,854,976) 2,051,101,917 Mortgaged as collateral
Intangible assets 1,623,510,499 - (162,384,713) 1,461,125,786 Mortgaged as collateral
Total 177,592,760,980 22,389,715,300 (51,956,075,275) 148,026,401,005
120
60 Leases
(1) As a lessee
Right-of-use assets
Plant & buildings Equipment Others Total
Cost
Balance at the beginning of the year 567,247,967 107,357,735 192,885,015 867,490,717
Additions during the year 229,346,204 15,740,262 5,538,270 250,624,736
Decrease due to disposal of subsidiaries (49,677,267) - - (49,677,267)
Decreases during the year (80,820,628) (107,136,932) - (187,957,560)
Translation differences 20,192,444 - - 20,192,444
Balance at the end of the year 686,288,720 15,961,065 198,423,285 900,673,070
Accumulated depreciation
Balance at the beginning of the year 82,687,553 22,013,731 9,625,196 114,326,480
Charge for the year 146,686,766 4,393,747 10,482,467 161,562,980
Decrease due to disposal of subsidiaries (15,326,483) - - (15,326,483)
Decreases during the year (24,030,120) (25,897,396) - (49,927,516)
Translation differences 2,916,663 - - 2,916,663
Balance at the end of the year 192,934,379 510,082 20,107,663 213,552,124
Provision for impairment
Balance at the beginning of the year and
at the end of the year - - - -
Carrying amount
Carrying amount at the end of the year 493,354,341 15,450,983 178,315,622 687,120,946
Carrying amount at the beginning of the
year 484,560,414 85,344,004 183,259,819 753,164,237
Lease liabilities
Item Note 31 December 2022 1 January 2022
Long-term lease liabilities 656,888,776 761,918,319
Less: lease liabilities due within one
year V.29 118,302,766 92,788,055
Total 538,586,010 669,130,264
In 2022, the Group, as the lessee, chooses the simplified treatment method for short-term
lease expenses, low-value asset lease expenses and the amount of income obtained from
sublease of right-of-use assets is not significant.
121
VI. Change of consolidation scope
1 Disposal of subsidiaries
Disposal of investments in subsidiaries through a single transaction resulting in loss of control
Investment
income or
loss
transferred
Difference from other
between Gain or loss comprehensi
consideration Proportion Carrying from Method and ve income
received and the of remaining amount of Fair value of remeasureme key related to
related share of shareholdin remaining remaining nt of assumptions previous
net assets in g on the equity equity remaining for determining equity
Shareholding Date of Basis for consolidated date of interests on interests on equity the fair value investments
being Disposal losing determining date financial losing the date of the date of interests to of remaining in
Name of enterprise Disposal price disposed (%) method control of losing control statements control losing control losing control fair value equity interests subsidiaries
Equity delivery
and completing
changes in the Asset
BOE Digital Technology Co., Equity 31 August Articles of appraisal
Ltd. 129,500,000 51% replacement 2022 Association 62,130,573 15% 19,794,533 38,081,355 18,286,822 report -
Completing re-
Transactions election of The stock
within the 28 members of the closing price
secondary November Board of when control is
SES Imagotag SA Co., Ltd. 1,248,072,000 9.51% market 2022 Directors 753,774,050 32.56% 623,492,148 4,871,837,182 4,248,345,034 lost 13,967,945
1) The Group previously had actual control over BOE Digital Technology Co., Ltd. ("Digital Technology") through its subsidiaries SES and
Wisdom IOT. During the year, SES made contributions to BOE Art Cloud Technology Co., Ltd.which is an associate of the Group with its
51% equity interest in Digital Technology. The equity delivery was completed on 31 August 2022. Then the Group has lost control of
Digital Technology. In the consolidated financial statements, the long-term equity investment is re-measured at its fair value at the date
when control is lost.
122
2) BOE Smart Retail (Hong Kong) Co., Ltd. (hereinafter referred to as "Smart Retail"), a subsidiary of the Group, sold its 9.51% of the
shares of SES on November 25, 2022. After the sale was completed, Smart Retail's shareholding percentage in SES dropped from
42.07% to 32.56%. On 28 November 2022, Paris time, SES convened an extraordinary Board meeting to re-electing members of the
Board of Directors, therefore, Smart Retail no longer has a majority vote on the Board of Directors of SES, the Group has lost control
of SES. In the consolidated financial statements, the long-term equity investment is re-measured at its fair value at the date when
control is lost.
2 Other reasons for change of consolidation scope
During the year, the Company newly established three tier-one subsidiaries, namely BOE Environmental Energy Technology Co., Ltd.,
Chengdu BOE Display Technology Co., Ltd., and Beijing BOE Chuangyuan Technology Co., Ltd. ("Chuangyuan Technology").
123
VII. Interests in other entities
1 Interests in subsidiaries
(1) Composition of the Group
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Beijing BOE Optoelectronics Beijing, Research and development (“R&D”), design and manufacturing USD Founded by
Technology Co., Ltd. China Beijing, China of TFT-LCD 649,110,000 - 100% investment
Business combinations
Chengdu BOE Optoelectronics Chengdu, Chengdu, R&D, design, manufacturing, and sale of new display devices RMB involving entities not
Technology Co., Ltd. China China and components 25,000,000,000 100% - under common control
Investment, construction, R&D, production and sales of the Business combinations
Hefei BOE Optoelectronics Technology Hefei, relevant products of thin film transistor LCD and its auxiliary RMB involving entities not
Co., Ltd. China Hefei, China products 9,000,000,000 100% - under common control
Beijing BOE Display Technology Co., Beijing, RMB Founded by
Ltd. China Beijing, China Development of TFT-LCD, manufacturing and sale of LCD 17,882,913,500 97.17% 2.83% investment
Investment, construction, R&D, production and sales of the Business combinations
Hefei Xinsheng Optoelectronics Hefei, relevant products of thin film transistor LCD and its auxiliary RMB involving entities not
Technology Co., Ltd. China Hefei, China products 19,500,000,000 99.97% 0.03% under common control
Ordos,
Ordos Yuansheng Optoelectronics Co., China Ordos, China Manufacture and sales of AM-OLED products and auxiliary RMB Founded by
Ltd. products 11,804,000,000 100% - investment
R&D, production and sales of semi-conducting display devices, Business combinations
Chongqing BOE Optoelectronics Chongqing, Chongqing, complete machine and related products; import & export of RMB involving entities not
Technology Co., Ltd. China China goods and technology consulting 19,226,000,000 100% - under common control
Investment, construction, R&D, production and sales of the
relevant products of thin film transistor LCD and its auxiliary
products (separate business site); self-support and agency for
the import and export of various goods and technologies,
except those goods and technologies that are restricted by the
country or prohibited from import and export; business
management consulting and services; property leases;
machinery and equipment leases; technology development,
transfer, consulting and services related to LCD products (For
business activities subject to approval in accordance with laws Business combinations
Fuzhou BOE Optoelectronics Fuzhou, Fuzhou, and regulations, operations may be conducted only with the RMB involving entities not
Technology Co., Ltd. China China approval of the relevant government authorities). 17,600,000,000 83.24% - under common control
Beijing BOE Video Technology Co., Ltd. Beijing, RMB Founded by
(“BOE Video”) China Beijing, China Investment platform, sales of LCD 4,424,095,800 100% - investment
124
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Beijing BOE Vacuum Electronics Co., Beijing, RMB Founded by
Ltd. China Beijing, China Manufacture and sale of vacuum electronic products 33,250,000 57.89% - investment
Beijing BOE Vacuum Technology Co., Beijing, RMB Founded by
Ltd. China Beijing, China Manufacture and sale of electronic tubes 32,000,000 100% - investment
Beijing, Management of engineering projects; real estate development; RMB Founded by
Beijing Yinghe Century Co., Ltd. China Beijing, China public parking lot for motor vehicles service; market survey 233,105,200 100% - investment
BOE Optical Science and technology Suzhou, Suzhou, R&D, production and sales of LCD, back light for display and RMB Founded by
Co., Ltd. China China related components 826,714,059 95.17% - investment
BOE Hyundai LCD (Beijing) Display Beijing, Development, manufacture and sale of liquid display for mobile USD Founded by
Technology Co., Ltd. China Beijing, China termination 5,000,000 75% - investment
BOE (Hebei) Mobile Technology Co., Langfang, Langfang, Manufacture and sale of mobile flat screen display technical RMB Founded by
Ltd. China China products and related services 1,358,160,140 100% - investment
Design, consultancy and service of solar cell, photovoltaic
Beijing BOE Energy Technology Co., Beijing, system, wind power system and solar thermal system as well RMB Founded by
Ltd. China Beijing, China as the assembly units; energy-saving service 1,242,690,058 68.40% - investment
Technology development, technology transfer, technology
consulting and technology services; sales of computer
software, hardware and auxiliary equipment, digital video and
audio technology products, electronic digital products, video
telephone, mobile phones and spare parts, hardware (excluding
electric bicycle), household appliances, photographic
equipment, sporting goods, Class I medical devices, lamps,
stationery, cosmetics, bathroom appliances, knitwear and
textile, clothing, daily necessities, timepieces, glasses, toys and
food; equipment maintenance; import and export of goods;
basic software services; application software service;
machinery and equipment leases; design, production, agency
and publication of advertisements. (Market participants
independently select the business activities and carry out the
business activities in accordance with laws and regulations;
sales of food and business activities subject to approval in
accordance with laws and regulations, operations may be
conducted only with the approval of relevant government
Beijing BOE Multimedia Technology Beijing, authorities; business activities prohibited and restricted by the RMB Founded by
Co., Ltd. China Beijing, China industrial policies of the state and the city.) 400,000,000 100% - investment
Beijing, Technology promotion services, property management, sales of RMB Founded by
Beijing BOE Life Technology Co., Ltd. China Beijing, China electronic products 24,000,000 100% - investment
125
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Ordos,
Ordos City Haosheng Energy China Ordos, China RMB Founded by
Investment Co., Ltd. Energy investment 30,000,000 - 100% investment
Processing, manufacturing and sales of precision electronic
components, semi-conductor devices, micro modules,
Beijing, microelectronic devices and electronic materials; import & RMB Founded by
BOE Semi-conductor Co., Ltd. China Beijing, China export of goods 11,250,000 84% - investment
Hong Kong, British Virgin USD Founded by
BOE Optoelectronics Holding Co., Ltd. China Islands Investment holding 1,000,000,000 100% - investment
KRW Founded by
BOE (Korea) Co., Ltd. Korea Korea Wholesale and retail trade 95,000,000 100% - investment
Business combinations
BOE Healthcare Investment & Beijing, RMB involving entities not
Management Co., Ltd. China Beijing, China Investment management and project investment 7,300,000,000 100% - under common control
Colour TV set, display tube, colour RPTV projection tube and Business combinations
Beijing, materials of electronic components; property management and RMB involving entities not
Beijing Matsushita Colour CRT Co., Ltd. China Beijing, China parking services, etc. 325,754,049 88.80% - under common control
Business combinations
Hefei BOE Display Technology Co., Hefei, Investment, R & D and production of products related to TFT- RMB involving entities not
Ltd. China Hefei, China LCD and the supporting facility 24,000,000,000 8.33% - under common control
Beijing BOE Technology Development Beijing, RMB Founded by
Co., Ltd. China Beijing, China Development, transfer, consulting and service of technology 1,000,000 100% - investment
Hefei BOE Zhuoyin Technology Co., Hefei, Investment, construction, R&D, production and sales of RMB Founded by
Ltd. China Hefei, China products related to OLED display device and auxiliary products 800,000,000 75% - investment
Development, construction, property management and
supporting service of industrial plants and supporting facilities;
information consulting of real estate; lease of commercial
Beijing, facilities, commercial attendants and the supporting service RMB Founded by
Beijing BOE Real Estate Co., Ltd. China Beijing, China facilities; motor vehicles public parking service 55,420,000 70% - investment
Sales of communication equipment, hardware & software of
computer and peripheral units, electronic products, equipment
maintenance; development, transfer, consulting and service
providing of technologies; import & export of goods and
Beijing, technologies, agency of import & export; manufacturing RMB Founded by
Beijing BOE Marketing Co., Ltd. China Beijing, China consignment of electronic products and LCD devices 50,000,000 100% - investment
126
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Beijing Zhongxiangying Technologies Beijing, Technology promotion services, property management, sales of RMB Founded by
Co., Ltd. China Beijing, China electronic products 109,767,000 91.10% - investment
Development, promotion, transfer, consultation and services of
display technology; computer software, hardware and network
system services; the construction, operations and management
of e-commerce platform; product design; conference services;
undertaking exhibitions and presentation activities; computer
animation design; production, R&D and sales of OLED
microdisplays and AR/VR whole widget; warehousing services;
Project investments and management of the invested projects;
Yunnan Invensight Optoelectronics Kunming, Kunming, import and export of goods and technologies; property leases, RMB Founded by
Technology Co., Ltd. China China machinery and equipment leases 3,040,000,000 79.10% - investment
R&D, production and sales of flexible AMOLED, the products Business combinations
are mainly involving
Mianyang BOE Optoelectronics Mianyang, Mianyang, used in smart phones, wearable devices, car display, AR/VR, RMB entities not under
Technology Co., Ltd. China China etc. 26,000,000,000 83.46% - common control
Formation of X-ray sensors, microfluidic chips, biochemical
chips, gene chips, security sensors, microwave antennas,
biosensors, logistics network technology and other
Beijing BOE Sensing Technology Co., Beijing, semiconductor sensors, technology testing, technical RMB Founded by
Ltd. China Beijing, China consulting, technical services, technology transfer 4,651,482,400 100% - investment
Business combinations
involving
Wuhan BOE Optoelectronics Wuhan, Investing, researching, manufacturing and selling TFT-LCD RMB entities not under
Technology Co., Ltd. China Wuhan, China products and accessory products 26,000,000,000 47.14% - common control
Business combinations
R&D, manufacture and sales of semiconductor display devices, involving
Chongqing BOE Display Technology Chongqing, Chongqing, whole widget and relevant products, import and export of goods RMB entities not under
Co., Ltd. (“Chongqing BOE Display”) China China and technical consulting 21,124,724,750 38.46% - common control
R&D, production and sale of TFT-LCD panels, colour filters and
LCD whole-widget modules; providing products and business- Business combinations
related services, as well as other business activities related to involving
Nanjing BOE Display Technology Co., Nanjing, Nanjing, the above; import and export of proprietary and agent RMB entities not under
Ltd. China China commodities and technologies 17,500,000,000 80.83% - common control
127
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Hefei BOE Xingyu Technology Co., Ltd. Hefei, R&D, production and sales of Mini LED backlight components USD Founded by
(“Hefei Xingyu”) China Hefei, China and Mini LED display module components 115,380,000 63.77% - investment
R&D, production and sales of semiconductor display device-
related products and related products; import or export of goods
or technology; display device and component, other electronic
components, and technology development, technology transfer,
technical consulting, related fields related to display devices Business combinations
and electronic products, technical services; business involving
Fuzhou BOE Display Technology Co., Fuzhou, Fuzhou, management consulting; property management; house rental; RMB entities not under
Ltd. (“Fuzhou BOE Display”) China China machinery and equipment rental 50,000,000 43.46% - common control
Beijing, RMB Founded by
BOE Innovation Investment Co., Ltd. China Beijing, China Project investment and investment management 800,000,000 100% - investment
General businesses: technical services, technology
development, technology consulting, technical exchange,
technology transfer, technology promotion; manufacturing of
display devices [operations of branches]; sale of display
devices; manufacturing of electronic components [operations of
branches]; wholesale of electronic components; manufacturing
of others electronic devices [operations of branches]; import
and export of goods; import and export of technology; business
management consulting; property management; non-residential
real estate leasing; machinery and equipment leasing. (Except
for business activities subject to approval in accordance with
Chengdu BOE Display Techlogy Co., Chengdu, Chengdu, laws and regulations, operations are conducted in accordance RMB Founded by
Ltd. China China with the law and business license.) 10,000,000 52.63% - investment
Technology development, technology consulting, technology
transfer, technology services; software development; basic
software services; application software services; computer
system services; internet data services (data centres in Internet
data services, excluding cloud computing data centres with a
PUE over 1.4); information processing and storage support
services; general construction contracting, professional
contracting, labour subcontracting; installation, maintenance
and lease of equipment; literary and artistic creation; computer
animation design; product design; enterprise management;
Beijing, enterprise management consulting; sales of computer, software RMB Founded by
BOE Mled Technology Co., Ltd. China Beijing, China and auxiliary equipment, electronic products. 950,000,000 100% - investment
Provision of hardware and software integrated system solutions
for the IoT market segment; intelligent city, intelligent transport,
Beijing, intelligent finance, intelligent park and the display terminal RMB Founded by
BOE Smart Technology Co., Ltd. China Beijing, China products such as the intelligent all-in-one machines 6,521,250,000 100% - investment
128
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Technology development, technology consulting, technology
services, technology transfer and technology promotion;
software development; basic software services; application
software services; computer system services; sales of
stationery items, sporting goods, household appliances and
electronic products; business management; market research;
economic and trade consulting; business management
consulting; education consulting; public relations services;
corporate image planning; exhibition and presentation activities;
conference services; research and experimental development
in the natural sciences; research and experimental
development in engineering and technology; agricultural
scientific research and experimental development; medical
research and experimental development; copyright agency; arts
and crafts creation services. (Market participants independently
select the business activities and carry out the business
activities in accordance with laws and regulations; sales of food
and business activities subject to approval in accordance with
laws and regulations, operations may be conducted only with
the approval of relevant government authorities; business
Beijing, activities prohibited and restricted by the industrial policies of RMB Founded by
BOE Education Technology Co., Ltd. China Beijing, China the state and the city.) 55,000,000 100% - investment
Technology development, technology services; application
software services; basic software services; sales of daily
necessities, fresh fruit, fresh vegetables, primary edible
agricultural products, household appliances, electronic products
and sporting goods; trade agency; translation services;
conference services; organisation of cultural and artistic
interchange activities (excluding shows); exhibition and
presentation activities; design, production, agency and
publication of advertisements; enterprise management; market
research; real estate information consulting; warehousing
services; public relations services; health management, health
consulting (excluding diagnosis and treatment activities subject
to the approval); ticket agency; hotel booking agency; airline
ticket sales agency; railway and passenger ticket agency
services; tourism consulting; hotel management; automobile
leases; property management; public parking services for motor
vehicle; landscaping management; cleaning services; import
and export of goods, import and export agency, import and
export of technologies; car decoration; operation of sporting
events (excluding high-risk sports); accommodation (branch
operation only); catering services (branch operation only);
beauty services, hairdressing services (branch operation only);
medical services (branch operation only); family services
(branch operation only); inbound tourism business; sales of
food; internet information services. (Market participants
independently select the business activities and carry out the
business activities in accordance with laws and regulations;
sales of food and business activities subject to approval in
accordance with laws and regulations, operations may be
conducted only with the approval of relevant government
Dongfang Chengqi (Beijing) Business Beijing, authorities; business activities prohibited and restricted by the RMB Founded by
Technology Co., Ltd. China Beijing, China industrial policies of the state and the city.) 10,000,000 100% - investment
129
Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Technology development, technology consulting, technology
transfer, technology promotion, technical services, technical
testing of energy-saving technology, environmentally friendly
new energy technology, environmental protection equipment,
solar electrical energy generation, building integrated PV,
electric power, power station operations and maintenance;
software development; Internet data services (data centers for
Internet data services, excluding cloud computing data centres
with a PUE over 1.4); information processing and storage
support services (data centers for information processing and
storage support services, excluding cloud computing data
centres with a PUE over 1.4); contract energy management;
water pollution treatment; air pollution control; solid waste
treatment; soil pollution treatment and restoration services;
environmental protection monitoring; installation, maintenance,
leasing of equipment; professional design services; property
management; sale of special equipment for environment
protection, lighting equipment, electronic products, machinery
and equipment, electrical equipment, instruments, hardware
products, computers, software and auxiliary equipment,
chemical products (excluding licensed chemical products);
import and export of goods; import and export of technology;
import and export agents; power supply business; construction
engineering design; electrical installation services; various
engineering and construction activities; EPC of house
BOE Environmental Energy Technology Beijing, construction and municipal infrastructure projects; construction RMB Founded by
Co., Ltd. China Beijing, China labour subcontracting. 100,000,000 100% - investment
R&D, production and sales of TFT-LCD panels and modules,
Chengdu BOE Display Sci-tech Co., liquid crystal display monitors, televisions, instruments, Business combinations
Ltd. (formerly known as “Chengdu machinery equipment and accessories as well as provision of involving
CEC Panda FPD Technology Co., Chengdu, Chengdu, technical services; foreign trade in form of import and export of RMB entities not under
Ltd.”) China China goods and technology 21,550,000,000 35.03% - common control
Manufacturing of display devices; sale of display devices;
manufacturing of electronic components; wholesale of
electronic components; retail of electronic components;
technical services, technology development, technology
consulting, technical exchange, technology transfer, technology
promotion; import and export of goods; import and export of
technology; business management consulting; property
management; machinery and equipment leasing; manufacturing
of other electronic devices. (Except for business activities
subject to approval in accordance with laws and regulations,
Beijing BOE Chuangyuan Technology Beijing, operations are conducted in accordance with the law and RMB Founded by
Co., Ltd. China Beijing, China business license.) 10,000,000 79.31% - investment
130
The Company signed an agreement of acting in concert with Hefei Core Screen Industrial
Investment Fund (Limited Partnership) on 23 January 2019. Hefei Core Screen Industrial
Investment Fund (Limited Partnership) agreed to act as a person acting in concert according
to the wishes of the Company, and exercised the voting rights unconditionally and irrevocably
in accordance with the opinions of the Company. Therefore, the Company’s voting right ratio
to Hefei Display Technology is 100%.
The Company signed an agreement of acting in concert with the shareholder of Wuhan BOE,
Wuhan Airport Economic Development Zone Industrial Development Investment Group Co.,
Ltd. and Hubei Changbai Industrial Investment Fund Partnership (Limited Partnership) on 25
December 2018 and 5 February 2021. Wuhan Airport Economic Development Zone
Industrial Development Investment Group Co., Ltd. and Hubei Changbai Industrial
Investment Fund Partnership (limited Partnership) agreed to follow the Company’s will to act
as the persons acting in concert, unconditionally and irrevocably exercising voting rights in
accordance with the opinions of the Company, the voting rights of the Company to Wuhan
BOE is 100%.
The Company signed an agreement of acting in concert with shareholders of Chongqing
BOE Display, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership
(Limited Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. on 25
December 2018. The Company signed an agreement of acting in concert with Chongqing
Jingping Equity Investment Fund Partnership (Limited Partnership) on 31 March 2021. The
Company signed an agreement of acting in concert with Chongqing Jianxin Junheng Private
Equity Fund Partnership (Limited Partnership) on 30 June 2021. Chongqing Strategic
Emerging Industry Equity Investment Fund Partnership (Limited Partnership), Chongqing
Yuzi Optoelectronic Industry Investment Co., Ltd., Chongqing Jingping Equity Investment
Fund Partnership (Limited Partnership) and Chongqing Jianxin Junheng Private Equity Fund
Partnership(Limited Partnership) agreed to act as persons acting in concert according to the
will of the Company, and exercise the voting rights unconditionally and irrevocably in
accordance with the opinions of the Company. Therefore, the proportion of voting rights of
the Company to Chongqing BOE is 100%.
The Company signed an agreement of acting in concert with shareholders of Fuzhou BOE
Display, Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou Urban
Construction Investment Group Co., Ltd. on 21 January 2019. Fuqing City Invested-
Construction Investment Group Co., Ltd. and Fuzhou Urban Construction Investment Group
Co., Ltd. agreed to act as persons acting in concert according to the will of the Company, and
exercise the voting rights unconditionally and irrevocably in accordance with the opinions of
the Company. Therefore, the proportion of voting rights of the Company to Fuzhou BOE
Display is 100%.
The Company signed a concerted action agreement with Chengdu Advanced Manufacturing
Industry Investment Co., Ltd., a shareholder of Chengdu Display Sci-tech, and Chengdu
Airport Xingcheng Investment Group Co., Ltd. on December 17, 2020. The Company signed
a concerted action agreement with Nanjing Zhongdian Panda Information Industry Group
Co., Ltd. on December 31, 2020, and signed a concerted action agreement with Zhongdian
Financial Investment Holding Co., Ltd. on June 28, 2022, A concerted action agreement was
signed with Ya'an Yashuang Investment Co., Ltd. on November 30, 2022, and Chengdu
Advanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport Xingcheng
Investment Group Co., Ltd., Ya'an Yashuang Investment Co., Ltd., Nanjing Zhongdian Panda
Information Industry Group Co., Ltd., and Zhongdian Financial Investment Holding Co., Ltd.
acted in concert with the wishes of the company, We unconditionally and irrevocably
exercise our voting rights in accordance with our company's opinions, so our company's
voting rights ratio in Chengdu Display Sci-tech is 96.75%.
131
(2) Material non-wholly owned subsidiaries
Proportion of Llosses
ownership interest attributable to Dividend declared Balance of non-
held by non- non-controlling to non-controlling controlling
controlling interests for the shareholders interests at the
Name of the subsidiary interests year during the year end of the year
Hefei Display Technology 91.67% (3,618,751,980) - 18,822,591,037
Mianyang BOE 16.54% (380,623,218) - 3,556,733,678
Wuhan BOE 52.86% (2,002,557,008) - 13,146,768,173
Chongqing BOE Display 61.54% (201,271,791) - 14,444,887,413
(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
2022 2021 2022 2021 2022 2021 2022 2021
Current assets 12,595,285,193 15,797,281,551 12,372,285,496 9,255,378,733 7,442,285,566 12,711,279,779 8,590,561,462 9,119,260,427
Non-current assets 20,269,449,516 24,332,972,509 37,212,140,922 43,427,820,893 38,934,335,172 38,277,507,503 32,479,448,086 25,994,167,505
Total assets 32,864,734,709 40,130,254,060 49,584,426,418 52,683,199,626 46,376,620,738 50,988,787,282 41,070,009,548 35,113,427,932
Current liabilities 6,306,350,492 7,432,659,554 11,072,411,471 7,343,085,123 6,251,107,827 7,311,202,489 5,410,946,190 3,837,467,534
Non-current
liabilities 6,025,395,194 8,237,784,012 17,008,183,759 21,547,455,635 15,254,593,174 15,031,465,931 12,186,708,120 8,053,464,462
Total liabilities 12,331,745,686 15,670,443,566 28,080,595,230 28,890,540,758 21,505,701,001 22,342,668,420 17,597,654,310 11,890,931,996
Operating income 10,878,478,058 19,895,825,588 16,357,203,835 15,252,416,607 12,845,309,881 16,825,449,551 883,001,124 25,345,522
Net (loss) / profit (3,947,585,884) 3,314,633,884 (2,301,228,643) (998,415,291) (3,788,416,587) 2,811,946,928 (327,058,484) (243,647,739)
Total
comprehensive
income (3,947,585,884) 3,314,633,884 (2,301,228,643) (998,415,291) (3,788,416,587) 2,811,946,928 (327,058,484) (243,647,739)
Cash inflows /
(outflows) in
operating
activities 899,521,665 9,132,590,378 7,118,785,052 3,589,416,228 2,816,292,270 5,734,190,509 (185,310,156) 91,717,067
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
BOE Energy 100.00% 68.40%
Zhongxiangying 100.00% 91.10%
Hefei Xingyu 53.86% 63.77%
132
(2) Impact from transactions with non-controlling interests and equity attributable to the
shareholders of the Company:
The changes in the shareholding of the Company in the owners of above-mentioned other
subsidiaries were caused by the capital increase/decrease of the Company and the capital
increase of their non-controlling interests or the failure to increase capital by the Company
and the non-controlling interests of the subsidiaries in equal proportion, which results in the
increase of capital reserves by RMB 1,135,268,806 . See Note V.38.
3 Interests in associates
Please see Note V.10(2) for details of the summarised financial information of 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.
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.
133
1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. The Group’s credit risk is primarily
attributable to receivables. Exposure to these credit risks is monitored by management on an
ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions.
Management does not foresee any significant credit risks from these deposits and does not
expect that these financial institutions may default and cause losses to the Group.
In respect of receivables, the Group has established a credit policy under which individual
credit evaluations are performed on all customers to determine the credit limit and terms
applicable to the customers. These evaluations focus on the customers’ financial position,
the external ratings of the customers and the record of previous transactions. Receivables
are due within 7 to 120 days from the date of billing. Debtors with balances that are past due
are requested to settle all outstanding balances before any further credit is granted.
Normally, the Group does not obtain collateral from customers.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of
each customer 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 to individual customers. At the balance sheet date, 39% (2021: 39%) of
the Contract assets total accounts receivable were due from the five largest customers of the
Group. In addition, the accounts receivable not overdue or impaired is mainly related to many
clients who don’t have payment in arrears records recently.
The maximum exposure to credit risk is represented by the carrying amount of each financial
asset in the balance sheet. As mentioned in Note XIII, as at 31 December 2022 the Group
does not provide any external guarantees which would expose the Group or the Company to
credit risk.
2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that
are settled by delivering 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.
134
The following tables set out the remaining contractual maturities at the balance sheet date of
the Group’s financial liabilities, which are based on contractual undiscounted cash flows
(including interest payments computed using contractual rates or, if floating, based on rates
current at 31 December) and the earliest date the Group can be required to pay:
2022 Contractual undiscounted cash flow
More than 1 More than 3
Within 1 year or year but less years but less
on demand than 3 years than 5 years More than 5 Carrying amount
(inclusive) (inclusive) (inclusive) years Total of balance sheet
Financial liabilities
Short-term loans 2,472,050,871 - - - 2,472,050,871 2,373,938,871
Bills payable 870,221,538 - - - 870,221,538 870,221,538
Accounts payable 29,834,720,464 - - - 29,834,720,464 29,834,720,464
Other payables 19,632,223,269 - - - 19,632,223,269 19,632,223,269
Non-current liabilities due
within one year 23,132,749,292 - - - 23,132,749,292 22,703,750,744
Long-term loans 4,872,695,550 17,357,391,426 26,251,319,950 99,561,622,533 148,043,029,459 123,143,479,690
Lease liabilities - 246,663,217 123,905,787 323,315,125 693,884,129 538,586,010
Long-term payables - 70,973,955 160,835,968 - 231,809,923 229,587,077
Total 80,814,660,984 17,675,028,598 26,536,061,705 99,884,937,658 224,910,688,945 199,326,507,663
2021 Contractual undiscounted cash flow
More than 1
year but less More than 3 years
Within 1 year or on than 3 years but less than 5 Carrying amount
demand (inclusive) (inclusive) years (inclusive) More than 5 years Total of balance sheet
Financial liabilities
Short-term loans 2,156,682,843 - - - 2,156,682,843 2,072,057,332
Bills payable 827,958,031 - - - 827,958,031 827,958,031
Accounts payable 32,455,830,694 - - - 32,455,830,694 32,455,830,694
Other payables 23,835,374,942 - - - 23,835,374,942 23,835,374,942
Non-current liabilities due
within one year 29,209,146,646 - - - 29,209,146,646 28,874,958,714
Long-term loans 4,195,689,815 19,625,783,023 10,743,655,014 102,812,410,156 137,377,538,008 116,078,666,587
Debentures payable 13,392,544 305,465,507 74,023,980 - 392,882,031 359,586,437
Lease liabilities - 284,759,263 138,423,079 333,385,847 756,568,189 669,130,264
Long-term payables - 373,905,903 211,205,405 457,906,633 1,043,017,941 906,592,838
Total 92,694,075,515 20,589,913,696 11,167,307,478 103,603,702,636 228,054,999,325 206,080,155,839
135
3 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to
cash flow interest rate risk and fair value interest risk, respectively. The Group determines
the appropriate weightings for fixed and floating rate interest-bearing instruments based on
current market conditions and performs regular reviews and monitoring to achieve an
appropriate mix of fixed and floating rate exposure. The Group does not enter into financial
derivatives to hedge interest rate risk.
(a) As at 31 December, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
2022 2021
Effective interest Effective interest
Item rate Amounts rate Amounts
Financial assets
- Cash at bank 0.70%~5.45% 36,597,334,927 0.30%~3.99% 36,894,761,961
Financial liabilities
- Short-term loans 0.25%~5.90% (1,149,712,480) 0.50%~5.90% (2,068,800,511)
- Other payables 0%~2.18% (3,000,000,000) 0%~2.18% (3,000,000,000)
- Non-current liabilities due within
one year 0%~6.86% (7,841,491,191) 0%~6.86% (9,407,794,957)
- Long-term loans 0%~5.90% (25,324,584,996) 0%~5.90% (28,644,395,246)
- Debentures payable - - 3.50%~4.55% (359,586,437)
- Lease liabilities 3.65%~4.75% (538,586,010) 3.85%~4.75% (669,130,264)
- Long-term payables 4.30%~6.86% (229,587,077) 4.65%~6.86% (906,592,838)
Total (1,486,626,827) (8,161,538,292)
Floating rate instruments:
2022 2021
Effective interest Effective interest
Item rate Amounts rate Amounts
Financial assets
- Cash at bank 0.0001%~5.30% 31,723,267,975 0.0001%~2.70% 41,471,269,422
Financial liabilities
- Short-term loans 5.65%~5.84% (1,218,525,680) - -
- Non-current liabilities due within
one year 1.00%~7.44% (14,215,671,815) 1.66%~5.88% (18,827,495,477)
- Long-term loans 1.00%~7.44% (97,816,667,917) 2.30%~5.88% (87,317,668,185)
Total (81,527,597,437) (64,673,894,240)
136
(b) Sensitivity analysis
As at 31 December 2022, it is estimated that a general increase / decrease of 100
basis points in interest rates of variable rate instrument, with all other variables held
constant, would decrease / increase the Group’s net profit and equity by RMB
679,150,000 (2021: RMB 549,530,000).
In respect of the exposure to cash flow interest rate risk arising from floating rate non-
derivative instruments held by the Group at the balance sheet date, the impact on the
net profit and owner’s equity is estimated as an annualised impact on interest expense
or income of such a change in interest rates. The analysis is performed on the same
basis for the previous year.
4 Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, short-term loans
and other assets and liabilities denominated in foreign currencies other than the functional
currency, the Group ensures that its net exposure is kept to an acceptable level by buying or
selling foreign currencies at spot rates when necessary to address short-term imbalances.
(a) The Group’s exposure as at 31 December to currency risk arising from recognized
foreign currency assets or liabilities is mainly denominated in US dollar. The amount of
the USD exposure is net liabilities exposure USD 1,523,210,633 (2021 net liabilities
exposure: USD 177,293,137), translated into RMB 10,608,552,775 (2021: RMB
1,130,367,854), using the spot rate at the balance sheet date. Differences resulting
from the translation of the financial statements denominated in foreign currency are
excluded.
(b) Assuming all other risk variables remained constant, a 5% strengthening / weakening
of the Renminbi against the US dollar at 31 December would have increased /
decreased both the Group’s equity and net profit by the amount RMB 136,665,926
(2021: decreased / increased RMB 164,148,318).
The sensitivity analysis above assumes that the change in foreign exchange rates 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.
137
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;
Level 3 inputs: Inputs that are unobservable for underlying assets or liabilities;
1 Fair value of assets measured at fair value at the end of the year
31 December 2022
Level 1 Fair value Level 2 Fair value Level 3 Fair value
Assets Note measurement measurement measurement Total
Recurring fair value measurements
- Financial assets held for trading V.2 256,525,783 - 16,931,468,153 17,187,993,936
Including: Structured deposit
and wealth-
management
products - - 16,931,468,153 16,931,468,153
Investments in
equity instruments 256,525,783 - - 256,525,783
- Investments in other equity
instruments V.11 154,312,590 - 328,747,716 483,060,306
- Other non-current financial assets V.12 - - 2,022,967,681 2,022,967,681
Including: Investments in
equity instruments - - 2,022,967,681 2,022,967,681
Total assets measured at fair value
on a recurring basis 410,838,373 - 19,283,183,550 19,694,021,923
31 December 2021
Level 1 Fair value Level 2 Fair value Level 3 Fair value
Assets Note measurement measurement measurement Total
Recurring fair value measurements
- Financial assets held for trading V.2 - - 10,028,172,853 10,028,172,853
Including: Structured deposit
and wealth-
management
products - - 10,028,172,853 10,028,172,853
- Investments in other equity
instruments V.11 168,325,009 - 350,763,137 519,088,146
- Other non-current financial assets V.12 - - 606,895,447 606,895,447
Including: Investments in
equity instruments - - 606,895,447 606,895,447
Total assets measured at fair value
on a recurring basis 168,325,009 - 10,985,831,437 11,154,156,446
138
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 and other non-current financial assets 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 2022, the Group used the financing
price as the best estimates of their fair value;
(ii) For other investments in other equity instruments, since the operating environment,
operating conditions and financial status of the investee have not changed significantly
during the year, the Group uses the book investment cost as a reasonable estimate of
fair value for measurement.
4 During 2022, there were no changes in valuation technique of fair value. As at 31 December,
the Group held no assets and liabilities measured at fair value. All financial assets and
financial liabilities of the Group are carried at amounts not materially different from their fair
value.
X. Related parties and related party transactions
1 Information about the parent of the Company
Percentage of Ultimate
Shareholding voting rights controlling party
Company name Registered place Business nature Registered capital percentage (%) (%) of the Company
Operation and
management of
No. 12, state-owned
Jiuxianqiao assets within
Road, Chaoyang authorisation, RMB
Beijing Electronics Holding Co., Ltd. District, Beijing etc. 3,139,210,000 0.72% 12.20% Yes
2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Group, refer to Note VII.1.
139
3 Information about joint ventures and associates of the Company
Associates and joint ventures that have related party transactions with the Group during this
year or the previous year are as follows:
Name of entity Relationship with the Company
Associate of the Group and the
Beijing Nittan Electronic Co., Ltd. Company
Associate of the Group and the
Beijing BOE Art Cloud Technology Co., Ltd. Company
Associate of the Group and the
Beijing Xindongneng Investment Management Co., Ltd. Company
Associate of the Group and the
TPV Display Technology (China) Limited Company
Associate of the Group and the
BOE Digital Technology Co., Ltd. Company
Associate of the Group and the
Beijing BOE Art Cloud (Suzhou)Technology Co., Ltd. Company
Associate of the Group and the
Beijing BOE Art Cloud (Hangzhou)Technology Co., Ltd. Company
Hefei Xin Jing Yuan Electronic Materials Co., Ltd. Associate of the Group
Beijing BOE Microbial Technology Co., Ltd. Associate of the Group
Biochain (Beijing) Science-Technology.Inc. Associate of the Group
BOE Houji Technology (Beijing) Co., Ltd. Associate of the Group
SES Imagotag SA Co., Ltd. Associate of the Group
Subsidiary of associate of the
SES-Imagotag GmbH Co., Ltd. Group
Subsidiary of associate of the
Pervasive Displays Inc Group
Subsidiary of associate of the
Beijing Borcheng Medical Laboratory Co. Ltd. Group
140
4 Information on other related parties
Name of other related parties Related-party relationship
Under the same control of the ultimate
Beijing BOE Investment Development Co., Ltd. holding company
Under the same control of the ultimate
NAURA Technology Group Co., Ltd. holding company
Beijing Zhengdong Electronic Power Group Co., Under the same control of the ultimate
Ltd. holding company
Beijing Dongdian Industrial Development Co., Under the same control of the ultimate
Ltd. holding company
Beijing Naura Microelectronics Equipment Co., Under the same control of the ultimate
Ltd. holding company
Under the same control of the ultimate
Sevenstar Semiconductor Technologies Co., Ltd. holding company
Beijing Zhaowei Technology Development Co., Under the same control of the ultimate
Ltd. holding company
Under the same control of the ultimate
Beijing C&W Intelligent Equipment Co., Ltd. holding company
Under the same control of the ultimate
Beijing Ether Electronics Group Co., Ltd. holding company
Under the same control of the ultimate
Beijing Yansong Economic and Trade Co., Ltd. holding company
Beijing Ripeness Sanyuan Instrumentation Co., Under the same control of the ultimate
Ltd. holding company
Beijing Electronics Holding & SK Technology Under the same control of the ultimate
Co., Ltd. holding company
Beijing Electrical Control Jiuyi Industrial Under the same control of the ultimate
Development Company holding company
761 Workshop (Beijing) Technology Under the same control of the ultimate
Development Co., Ltd. holding company
Under the same control of the ultimate
Beijing Smart-Aero Display Technology Co., Ltd. holding company
Beijing Electrical Energy Technology (Jiangsu) Under the same control of the ultimate
Co., Ltd. holding company
Under the same control of the ultimate
Beijing Peony Electronic Group Co., Ltd. holding company
Beijing Electric Control Industry Investment Co., Under the same control of the ultimate
Ltd. holding company
Baic Electronics Holding SK (Jiangsu) Under the same control of the ultimate
Technology Co., Ltd. holding company
Under the same control of the ultimate
Beijing 797 Audio Co., Ltd. holding company
Bei Jing Yan Dong Microelectronic Technology Under the same control of the ultimate
Co., Ltd. holding company
Associate of enterprise that is under the
New Vision Microelectronics (Hong Kong) same control of the ultimate holding
Limited company
Associate of enterprise that is under the
same control of the ultimate holding
Beijing Senju Electronic Materials Co., Ltd. company
Beijing Yizhuang Environmental Technology
Group Co., Ltd. Other related parties
China Minsheng Banking Corp., Ltd. Other related parties
Hefei Construction Investment and Holding Co.,
Ltd. Other related parties
Beijing Jingcheng Machinery Electric Holding
Co., Ltd. Other related parties
Nexchip Semiconductor Corporation Other related parties
Hefei Visionox Technology Co., Ltd. Other related parties
141
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 2022 2021
Purchase of goods 658,905,000 965,818,931
Procurement of equipment 155,286,378 255,199,826
Receiving services 12,843,982 24,377,762
Payment of interest expenses 43,423,377 20,715,586
Total 870,458,737 1,266,112,105
The Company
Nature of transaction 2022 2021
Purchase of goods 32,203,231 9,164,606
Receiving services 63,840,655 249,160,057
Payment of interest expenses 42,314,510 19,860,031
Total 138,358,396 278,184,694
(2) Sale of goods/rendering of services
The Group
Nature of transaction 2022 2021
Sale of goods 1,168,302,006 416,546,796
Rendering of services 12,004,788 10,267,108
Income from interest received 23,183,395 21,292,904
Total 1,203,490,189 448,106,808
142
The Company
Nature of transaction 2022 2021
Sale of goods 101,930 23,488,144
Rendering of services 4,742,920,134 5,561,607,938
Income from interest received 15,398,605 17,015,526
Total 4,758,420,669 5,602,111,608
(3) Leases
(a) As the lessor
The Group
Lease income Lease income
recognised in recognised in
Type of assets leased 2022 2021
Investment properties 7,925,143 5,114,048
The Company
Lease income Lease income
recognised in recognised in
Type of assets leased 2022 2021
Investment properties 65,287,838 70,534,069
(b) As the lessee
The Group
Lease expense Lease expense
recognised in recognised in
Type of assets leased 2022 2021
Fixed assets 2,886,041 2,804,351
143
The Company
Lease expense Lease expense
recognised in recognised in
Type of assets leased 2022 2021
Fixed assets 48,562,349 -
(4) Funding from related parties
The Company
Name of related party Amount of funding Inception date Maturity date
Funds received
Subsidiary of the parent company 2,000,000,000 09/06/2017 Long-term
Subsidiary of the parent company 4,000,000,000 09/06/2017 Long-term
Subsidiary of the parent company 1,000,000,000 23/12/2016 Long-term
Subsidiary of the parent company 200,000,000 28/07/2017 Long-term
Subsidiary of the parent company 1,600,000,000 04/12/2017 Long-term
Subsidiary of the parent company 700,000,000 13/04/2018 Long-term
Subsidiary of the parent company 650,000,000 25/04/2018 Long-term
Subsidiary of the parent company 3,000,000,000 27/04/2018 Long-term
Subsidiary of the parent company 3,000,000,000 28/05/2018 Long-term
Subsidiary of the parent company 2,500,000,000 31/08/2018 Long-term
Subsidiary of the parent company 3,800,000,000 19/07/2018 Long-term
Subsidiary of the parent company 3,500,000,000 01/08/2018 Long-term
Subsidiary of the parent company 1,500,000,000 24/05/2019 Long-term
Subsidiary of the parent company 2,000,000,000 27/05/2019 Long-term
Subsidiary of the parent company 360,000,000 24/04/2020 Long-term
Subsidiary of the parent company 1,300,000,000 21/05/2019 Long-term
Subsidiary of the parent company 500,000,000 28/05/2019 Long-term
Subsidiary of the parent company 500,000,000 21/05/2019 Long-term
Subsidiary of the parent company 1,000,000,000 26/07/2019 Long-term
Subsidiary of the parent company 300,000,000 08/07/2020 Long-term
Subsidiary of the parent company 2,500,000,000 06/07/2020 Long-term
Subsidiary of the parent company 2,000,000,000 03/07/2020 Long-term
Subsidiary of the parent company 1,200,000,000 06/07/2020 Long-term
Subsidiary of the parent company 1,000,000,000 20/08/2020 Long-term
Subsidiary of the parent company 1,700,000,000 12/10/2020 Long-term
Subsidiary of the parent company 3,000,000,000 05/11/2020 Long-term
Subsidiary of the parent company 2,358,000,000 07/12/2020 Long-term
Subsidiary of the parent company 900,000,000 11/12/2020 Long-term
144
Name of related party Amount of funding Inception date Maturity date
Funds received
Subsidiary of the parent company 1,700,000,000 28/12/2020 Long-term
Subsidiary of the parent company 2,300,000,000 28/12/2020 Long-term
Subsidiary of the parent company 1,200,000,000 30/09/2015 Long-term
Subsidiary of the parent company 1,000,000,000 09/03/2021 Long-term
Subsidiary of the parent company 1,000,000,000 18/03/2021 Long-term
Subsidiary of the parent company 4,000,000,000 25/03/2021 Long-term
Subsidiary of the parent company 2,500,000,000 30/03/2021 Long-term
Subsidiary of the parent company 4,500,000,000 23/06/2021 Long-term
Subsidiary of the parent company 500,000,000 30/06/2021 Long-term
Subsidiary of the parent company 1,000,000,000 30/06/2021 Long-term
Subsidiary of the parent company 1,000,000,000 06/07/2021 Long-term
Subsidiary of the parent company 2,000,000,000 29/12/2021 Long-term
Subsidiary of the parent company 2,800,000,000 30/12/2021 Long-term
Subsidiary of the parent company 6,000,000,000 30/12/2021 Long-term
Subsidiary of the parent company 1,500,000,000 31/12/2021 Long-term
Subsidiary of the parent company 1,000,000,000 27/01/2022 Long-term
Subsidiary of the parent company 200,000,000 31/12/2021 Long-term
Subsidiary of the parent company 800,000,000 15/06/2022 Long-term
Subsidiary of the parent company 400,000,000 31/12/2021 Long-term
Subsidiary of the parent company 1,000,000,000 31/12/2021 Long-term
Subsidiary of the parent company 6,500,000,000 23/08/2022 Long-term
Subsidiary of the parent company 1,100,000,000 08/10/2022 Long-term
Subsidiary of the parent company 800,000,000 20/10/2022 Long-term
Subsidiary of the parent company 1,000,000,000 25/10/2022 Long-term
Subsidiary of the parent company 1,000,000,000 25/10/2022 Long-term
Subsidiary of the parent company 200,000,000 10/11/2022 Long-term
Subsidiary of the parent company 650,000,000 16/03/2021 16/03/2026
Total 95,718,000,000
145
Name of related party Amount of funding Inception date Maturity date
Funds provided
Subsidiary of the parent company 1,100,000,000 30/09/2022 Right to request return at any time
Subsidiary of the parent company 1,400,000,000 29/09/2022 Right to request return at any time
Subsidiary of the parent company 1,700,000,000 29/09/2022 Right to request return at any time
Subsidiary of the parent company 1,490,000,000 21/10/2020 Right to request return at any time
Subsidiary of the parent company 200,000,000 29/10/2020 Right to request return at any time
Subsidiary of the parent company 300,000,000 10/05/2022 Right to request return at any time
Subsidiary of the parent company 700,000,000 07/05/2022 Right to request return at any time
Subsidiary of the parent company 200,000,000 27/06/2022 Right to request return at any time
Subsidiary of the parent company 300,000,000 27/06/2022 Right to request return at any time
Subsidiary of the parent company 700,000,000 29/10/2020 Right to request return at any time
Subsidiary of the parent company 1,000,000,000 28/10/2022 Right to request return at any time
Subsidiary of the parent company 285,000,000 24/11/2020 Right to request return at any time
Subsidiary of the parent company 473,000,000 24/11/2020 Right to request return at any time
Subsidiary of the parent company 590,000,000 19/02/2020 Right to request return at any time
Subsidiary of the parent company 460,000,000 19/02/2020 Right to request return at any time
Subsidiary of the parent company 200,000,000 08/07/2021 Right to request return at any time
Subsidiary of the parent company 300,000,000 08/07/2021 Right to request return at any time
Subsidiary of the parent company 300,000,000 08/07/2021 Right to request return at any time
Subsidiary of the parent company 50,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 29,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 158,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 123,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 261,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 81,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 90,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 173,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 433,000,000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 20,000,000 11/08/2022 Right to request return at any time
Subsidiary of the parent company 32,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 50,000,000 11/08/2022 Right to request return at any time
Subsidiary of the parent company 50,000,000 15/07/2022 Right to request return at any time
Subsidiary of the parent company 91,000,000 11/08/2022 Right to request return at any time
Subsidiary of the parent company 60,000,000 15/07/2022 Right to request return at any time
Subsidiary of the parent company 151,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 56,000,000 15/07/2022 Right to request return at any time
Subsidiary of the parent company 46,000,000 15/07/2022 Right to request return at any time
Subsidiary of the parent company 26,701,133 14/04/2022 Right to request return at any time
Subsidiary of the parent company 52,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 65,000,000 14/04/2022 Right to request return at any time
Subsidiary of the parent company 300,000,000 06/04/2022 Right to request return at any time
Subsidiary of the parent company 200,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 800,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 300,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 600,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 600,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 400,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 800,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 600,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 500,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 200,000,000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 20,000,000 16/12/2022 Right to request return at any time
Subsidiary of the parent company 50,000,000 27/03/2015 26/12/2024
Subsidiary of the parent company 30,000,000 21/01/2016 21/01/2025
Subsidiary of the parent company 200,000,000 12/10/2020 12/10/2030
Total 19,395,701,133
146
(5) Remuneration of key management personnel
The Group and the Company
Item 2022 2021
Remuneration of key management personnel RMB 86,665,000 RMB 110,629,000
The remuneration of key management personnel above does not include the one with
respect to share-based payments scheme.
6 Receivables from and payables to related parties
Receivables from related parties
The Group
Note 2022 2021
Provision for Provision for
Item Book value impairment Book value impairment
Cash at bank and on hand (1) 965,569,850 - 1,060,805,464 -
Accounts receivable 1,070,848,317 4,986,221 88,954,909 4,883,531
Prepayments 6,615,367 - 1,118,145 -
Other receivables 16,588,534 - 1,901,777 -
Contract assets 2,402,974 - 122,743 -
The Company
Note 2022 2021
Provision for Provision for
Item Book value impairment Book value impairment
Cash at bank and on hand (1) 8,850 - 6,830 -
Accounts receivable 4,867,860,690 4,315,658 4,827,924,553 -
Prepayments 146,368 - 165,134 -
Other receivables 19,686,877,080 16,868,539 15,287,017,182 2,964,404
Other non-current assets 1,080,000,000 - 1,740,000,000 -
Payables to related parties
The Group
Item Note 2022 2021
Accounts payable 179,047,266 142,557,107
Advance payments received 188,623 961,806
Contract liabilities 34,164,291 3,717,500
Other payables 182,554,398 178,187,139
Non-current liabilities due within one year (2) 6,000,000 -
Long-term loans (2) 1,257,250,000 1,435,000,000
147
The Company
Item Note 2022 2021
Accounts payable 27,646,402 18,924,459
Advance payments received 169,459 3,212,352
Other payables 2,921,972,111 1,364,404,865
Long-term loans (2) 1,186,250,000 1,435,000,000
Other non-current liabilities 96,394,661,805 74,506,661,805
(1) The Group's and the Company's cash at bank and on hand were deposit in China
Minsheng Bank Co.
(2) The Group's and the Company's non-current liabilities and long-term borrowings due
within one year are borrowings from China Minsheng Bank Co.
7 Commitments of the related parties
As at balance sheet date, the commitments of the related parties, which are signed but not
listed in financial statement are as following:
2022 2021
Procurement of equipment 69,753,978 72,274,623
XI. Share-based payments
On 17 December 2020, the Board of Directors of the Company approved the implementation
of share options and restricted share incentive plans from 2020. The shares for the share
options and restricted share incentive plans are from the Company’s Renminbi A-share
ordinary shares repurchased from secondary market. The plans are presented as follows:
(a) Share option incentive plan
The initial grant date was 21 December 2020, and the implementation was completed
on 25 December 2020. The actual number of grantees was 1,988, with a number of
grants of 596,229,700 shares. The reserved grant date was 27 August 2021, the actual
number of grantees was 110, and the number of grants is 33,000,000 shares, this grant
was completed on 22 October 2021.
The share options are exercised in three phases after 24 months from the grant date.
The exercise ratios for each phase are 34%, 33%, and 33%, respectively. The
corresponding exercise dates are 2 years, 3 years, and 4 years from the grant date.
When the Company’s performance meets the corresponding criteria, the proportion of
exercisable rights of the above-mentioned share options is determined based on the
business performance of the incentive object’s operation and the contribution value of
the incentive object. In accordance with the plan, the Company will deregister the
current exercisable shares of the options obtained by the incentive objects if the
exercise criteria stipulated in this plan are not met.
148
(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.
As at 31 December 2022, the total costs recognised by the Group’s equity-settled
share-based payments in the consolidated financial statement was RMB 699,065,561,
and the accumulated amount of capital reserve paid by equity-settled share-based
payments amounted to RMB 1,364,808,372 (2021: 645,945,833). In the Company’s
financial statements, the Company recognised its long-term equity investment of RMB
534,225,046 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
164,840,515, as well as a capital reserve of RMB 699,065,561.
Based on relevant provisions of the restricted share incentive plan for the 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.
149
(1) Method for determining the fair value of equity instruments at the grant date is as
follows:
Share options:
The fair value of equity instruments at the grant date is determined based on the
difference between the assessed fair value of the exercisable share options at each
grant date and the subscription price in RMB (RMB 1.68/share, RMB 1.93/share and
RMB 2.09/share, respectively); the fair value of equity instruments at the reserved
grant date is determined based on the difference between the assessed fair value of
the exercisable share options at each reserved grant date and the subscription price in
RMB (RMB 1.70/share, RMB 2.02/share and RMB 2.17/share, respectively).
Restricted shares:
The fair value of equity instruments at the grant date is determined based on the
difference between the fair value of shares at the grant date and the subscription price
at RMB 2.68/share.
(2) Basis of determining the number of equity instruments expected to vest
At each balance sheet date during the vesting period, the best estimation is made
according to the latest information, such as the number of employees who are granted
options and the completion of performance indicators, and the number of equity
instruments expected to vest is revised accordingly. On the vesting date, the estimated
number is equal to the number of equity instruments that are ultimately vested.
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.
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 2021. 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.
150
As at 31 December 2022 and 31 December 2021, the Group’s asset-liability ratios are as
follows:
2022 2021
Asset-liability ratio 51.96% 51.72%
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 2022 2021
Contracts entered into but not performed or partially
performed 31,109,629,604 36,353,906,810
Contracts authorized but not entered into 100,442,930,917 84,007,549,386
Total 131,552,560,521 120,361,456,196
The Group’s contracts authorised but not entered into mainly included the fixed assets that
Fuzhou BOE Display Technology Co., Ltd. , Beijing BOE Chuangyuan Technology Co., Ltd. ,
Chongqing BOE Display Technology Co., Ltd. , BOE Healthcare Investment & Management
Co., Ltd. , Qingdao BOE Optoelectronics Technology Co., Ltd., BOE Wisdom IOT
Technology Co., Ltd., Chongqing BOE Smart Technology Co., Ltd. , BOE Varitronix Limited
and BOE Mled Technology Co., Ltd. planned to purchase in subsequent years and project
equipment that the Group planned to purchase in subsequent years.
The Company 2022 2021
Contracts entered into but not performed or partially
performed 28,350,937,574 25,226,123,138
The Company’s contracts entered into but not performed or partially performed mainly
included guaranteed investments in Beijing BOE Chuangyuan Technology Co., Ltd. , BOE
Healthcare Investment & Management Co., Ltd. , BOE Smart Technology Co., Ltd. and
Yunnan Invensight Optoelectronics Technology Co., Ltd.
151
2 Guarantee
(1) The Group as the guarantor
As at 31 December 2022, the Group did not have guarantees provided for external
enterprises.
(2) The Company as the guarantor
At 31 December 2022, Chengdu Optoelectronics pledged its land use right with carrying
amount of RMB 39,337,190, machinery and equipment with carrying amount of RMB
21,397,326,923 and plants and buildings with carrying amount of RMB 2,324,144,465 as
collaterals to obtain long-term loans of USD 578,700,000 and RMB 12,209,380,000. The
Company provides joint-liability guarantee for the above loans.
At 31 December 2022, Yuansheng Optoelectronics pledged its land use rights with carrying
amount of RMB 43,484,881, machinery and equipment with carrying amount of RMB
5,459,351,367 and plant and buildings with carrying amount of RMB 2,018,273,173 as
collaterals to obtain long-term loans of RMB 1,186,370,000. The Company provides joint-
liability guarantee for the above loans.
At 31 December 2022, Chongqing BOE Display pledged its land use right with carrying
amount of RMB 159,786,737 as collaterals to obtain long-term loans of USD 1,034,000,000
and RMB 5,226,000,000. The Company provides joint-liability guarantee for the above loans.
In addition, the Company provides joint-liability guarantee for the letters of credit issued but
not accepted of USD 4,174,159 and JPY 5,451,000.
At 31 December 2022, Fuzhou BOE pledged its land use rights with carrying amount of RMB
198,149,305, machinery and equipment with carrying amount of RMB 6,282,771,779 and
plant and buildings with carrying amount of RMB 2,911,886,447 as collaterals to obtain long-
term loans of USD 219,000,000 and RMB 815,740,000. The Company provides joint-liability
guarantee for the above loans.
At 31 December 2022, Hefei Display Technology pledged its land use right with carrying
amount of RMB 273,876,498, with machinery and equipment carrying amount of RMB
12,507,752,146 and plants and buildings with carrying amount of RMB 3,489,590,026 as
collaterals to obtain long-term loans of USD 585,090,000 and RMB 3,374,494,080. The
Company provides joint-liability guarantee for the above loans.
At 31 December 2022, Mianyang BOE pledged its land use rights with carrying amount of
RMB 372,381,841, machinery and equipment with carrying amount of RMB 24,533,264,774
and plant and buildings with carrying amount of RMB 4,761,337,214 as collaterals to obtain
long-term loans of USD 694,730,000 and RMB 13,579,379,340. The Company provides
joint-liability guarantee for the above loans.
152
At 31 December 2022, Wuhan BOE pledged its land use right with carrying amount of RMB
244,216,967, machinery and equipment with carrying amount of RMB 22,797,889,738 and
plants and buildings with carrying amount of RMB 4,741,134,307 as collaterals to obtain
long-term loans of USD 1,181,500,000 and RMB 6,956,330,000. The Company provides
joint-liability guarantee for the above loans. In addition, the Company provides joint-liability
guarantee for the letters of credit issued but not accepted of JPY 965,950,000.
At 31 December 2022, Chengdu BOE Hospital Co., Ltd. obtain long-term loans of RMB
1,403,092,146. The Company provides joint-liability guarantee for the above loans.
At 31 December 2022, Nanjing BOE Display pledged its plant and buildings with carrying
amount of RMB 4,052,329,316 as collaterals to obtain long-term loans of USD 65,440,000.
The Company guarantees 60% of the above loan (i.e., USD 39,264,000) by means of a
counter guarantee with joint-liability guarantee. Nanjing BOE Display pledged its machinery
and equipment with carrying amount of RMB 319,824,268 as collaterals to obtain finance
lease loans of RMB 107,500,000. The Company provides joint-liability guarantee for the
above loans. In addition, the Company provided joint-liability guarantee by means of counter
guarantee for its short-term borrowings of RMB 900,000,000 and long-term borrowings of
RMB 1,200,000,000.
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. This business focuses on providing high-quality
smartphones, tablet PCs, laptops, monitors, TVs, vehicles, electronic shelf label (ESL),
industrial control, domiciliary medical applications, wearable devices, interactive
whiteboards , splice displays, business devices, VR/AR devices and other display
devices for customers.
(b) IInternet of Things (IoT) innovation business — The IoT innovation business integrates
manufacturing models for system solution design, providing customers with competitive
smart terminal products in the fields of TVs, monitors, laptops, tablet PCs, low power
consumption products, IoT, 3D displays, etc. With artificial intelligence and big data as
technical support, it focuses on products and services that integrate software and
hardware, providing integrated solutions in IoT segments such as smart finance, smart
industrial parks, visual arts, smart administration, smart transportation etc.
153
(c) Sensor business — The sensor and application solutions integrate manufacturing
models for system solution design. It focuses on various fields such as medical bio-
detection, transportation and construction intelligence visions, consumer electronics,
microwave communication and industrial sensing, providing customers with integrated
design and manufacturing of sensor devices and system solution services. Specific
products and solutions include flat panel X-ray detectors (FPXD), digital microfluidic
chips, PDLC glass, fingerprint identification systems, industrial sensors, etc.
(d) MLED business — The MLED integrates design and manufacturing of devices and
provides Mini-LED backlight products with strong reliability and high dynamic range
that allow precisely brightness adjustment for smartphones, tablet PCs, laptops,
monitors, TVs, car displays, wearables and other products; besides, it provides
Mini/Micro-LED display products with high brightness, strong reliability and high
contrast for the usage of outdoor display, commercial display, transparent display,
special display and other scenarios.
(e) Smart medicine and engineering business — The smart medicine and engineering
provides professional healthcare services and features the innovative integration of
medical and engineering by integrating engineering technology and medical science.
Adhering to people-centred thought, this business focuses on family, community and
hospital, connecting testing equipment, medical personnel and costumers by health IoT
platform, constructing intelligent health administrative ecosystem, providing customers
with a "prevision-treatment-nursing" full-chained health services.
(f) Others — Other service mainly includes technical development service and patent
maintenance service.
The main reason to separate the segments is that the Group independently manages
the display business, IoT innovation business, sensor and application solutions, MLED
and smart medicine and engineering and other businesses. As these business
segments manufacture and sale different products, apply different manufacturing
processes and specifies in gross profit, the business segments are managed
independently. The management evaluates the performance and allocates resources
according to the profit of each business segment and does not take financing cost and
investment income into account.
154
2 Accounting policies for the measurements of reporting segments
For the purposes of assessing segment performance, the Group’s management regularly reviews the revenue and costs attributable to each
reportable segment. Inter-segment sales are determined with reference to prices charged to external parties for similar orders.
2022
Smart medicine &
IoT innovation engineering
Display business business Sensor business MLED business business Others Offsetting Total
Operating income 157,949,486,684 27,245,456,382 306,552,648 846,820,654 2,203,142,669 11,232,889,896 (21,370,617,754) 178,413,731,179
Operating costs 145,362,979,605 24,666,540,176 241,869,035 864,618,690 1,809,802,648 4,446,526,834 (19,861,770,836) 157,530,566,152
2021
Smart medicine &
IoT innovation engineering
Display business business Sensor business MLED business business Others Offsetting Total
Operating income 203,938,462,632 28,379,332,761 216,187,403 458,249,184 1,846,551,592 11,308,029,354 (25,111,094,914) 221,035,718,012
Operating costs 150,165,560,834 25,169,654,631 166,800,549 444,702,497 1,370,997,955 3,100,671,887 (23,119,562,572) 157,298,825,781
The Group develops various businesses by using common assets and liabilities and therefore, it could not analyse assets and liabilities of each
reportable segment respectively by business.
155
3 Secondary segment reporting (regional segments)
(a) The geographical information is based on the location of customers receiving services
or goods
The following table sets out information about the geographical location of the Group’s
operating income from external customers:
Operating income from external
customers
2022 2021
Mainland China 74,124,463,690 95,015,382,254
Other Asian countries and regions 63,351,896,814 96,677,882,907
Europe 5,745,261,109 5,478,685,804
America 35,121,526,346 23,770,495,392
Other regions 70,583,220 93,271,655
Total 178,413,731,179 221,035,718,012
(b) Divided based on asset locations
The geographical location of the specified non-current assets is based on the physical
location of the asset, in the case of fixed assets; the location of the operation to which
they are allocated, in the case of intangible assets and goodwill; and the location of
operations, in the case of interests in associates and joint ventures. Most of the non-
current assets in the Group are located in the Chinese mainland.
4 Major customers
The Group has one customer (2021: None), the operating income from which is over 10% of
the Group’s total operating income (2021: Nil) in display business. The operating income
from the customer, which represents approximately 16% of the Group’s total operating
income, is summarised in the table below:
Customer 2022 2021
RMB RMB
Customer 1 28,511,004,302 *
Note: * means that annual income from the customer accounted for less than 10%.
156
XV. Notes to the Company’s financial statements
1 Accounts receivable
(1) The Company’s accounts receivable by customer type:
31 December 31 December
2022 2021
Amounts due from related parties 4,867,860,690 4,827,924,553
Amounts due from other customers 4,289,987 5,195,374
Sub-total 4,872,150,677 4,833,119,927
Less: Provision for bad and doubtful debts 8,485,408 4,264,652
Total 4,863,665,269 4,828,855,275
(2) The ageing analysis of accounts receivable is as follows:
Ageing 2022 2021
Within 1 year (inclusive) 3,813,706,724 4,506,053,150
Over 1 year but within 2 years (inclusive) 742,074,869 184,286,182
Over 2 years but within 3 years (inclusive) 182,932,357 141,556,611
Over 3 years 133,436,727 1,223,984
Sub-total 4,872,150,677 4,833,119,927
Less: Provision for bad and doubtful debts 8,485,408 4,264,652
Total 4,863,665,269 4,828,855,275
The ageing is counted starting from the date when accounts receivable are recognised.
157
(3) Accounts receivable by provisioning method
2022
Book value Provision for impairment
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Individual assessment
- Customers with high credit risk 8,406,011 0% 8,406,011 100% -
- Customers with low credit risk 4,863,603,112 100% - 0% 4,863,603,112
Collective assessment
- Customers with moderate credit risk 141,554 0% 79,397 56% 62,157
Total 4,872,150,677 100% 8,485,408 0% 4,863,665,269
2021
Book value Provision for impairment
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Individual assessment
- Customers with high credit risk 4,090,353 0% 4,090,353 100% -
- Customers with low credit risk 4,828,194,553 100% - 0% 4,828,194,553
Collective assessment
- Customers with moderate credit risk 835,021 0% 174,299 21% 660,722
Total 4,833,119,927 100% 4,264,652 0% 4,828,855,275
(4) Additions and recoveries of provision for bad and doubtful debts during the year:
2022 2021
Balance at the beginning of the year 4,264,652 20,301,553
Charge during the year 4,315,658 135,218
Recoveries during the year (94,902) (136)
Written-off during the year - (16,171,983)
Balance at the end of the year 8,485,408 4,264,652
158
(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB 4,466,867,289,
amounting to 92% of the total accounts receivable at the end of the year, and no provisions
for bad and doubtful debts were made at the end of the year.
2 Other receivables
31 December 31 December
Note 2022 2021
Dividends receivable (1) 333,352,986 219,715,564
Others (2) 19,544,792,389 15,230,115,046
Total 19,878,145,375 15,449,830,610
(1) Dividends receivable
31 December 31 December
2022 2021
Beijing Matsushita Colour CRT Co., Ltd. 333,352,986 214,240,861
BOE (Korea) Co.,Ltd. - 5,474,703
Total 333,352,986 219,715,564
159
(2) Others
(a) The Company’s other receivables by customer type:
31 December 31 December
Customer type 2022 2021
Amounts due from subsidiaries 19,338,630,021 15,065,482,829
Amounts due from other related parties 14,894,073 1,818,789
Amounts due from other customers 211,976,091 169,615,338
Sub-total 19,565,500,185 15,236,916,956
Less: Provision for bad and doubtful debts 20,707,796 6,801,910
Total 19,544,792,389 15,230,115,046
(b) The Company’s other receivables by currency:
As at 31 December 2022 and 31 December 2021, there is no other receivables in foreign
currency.
(c) The ageing analysis of other receivables of the Company is as follows:
2022 2021
Within 1 year (inclusive) 15,304,792,246 5,896,130,713
Over 1 year but within 2 years (inclusive) 2,669,590,657 6,954,523,850
Over 2 years but within 3 years (inclusive) 1,515,874,424 2,348,713,430
Over 3 years 75,242,858 37,548,963
Sub-total 19,565,500,185 15,236,916,956
Less: Provision for bad and doubtful debts 20,707,796 6,801,910
Total 19,544,792,389 15,230,115,046
The ageing is counted starting from the date when other receivables are recognised.
160
(d) Other receivables by provisioning method
2022
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment 20,707,796 0% 20,707,796 100% -
Collective assessment 19,544,792,389 100% - 0% 19,544,792,389
Total 19,565,500,185 100% 20,707,796 0% 19,544,792,389
2021
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment 6,801,910 0% 6,801,910 100% -
Collective assessment 15,230,115,046 100% - 0% 15,230,115,046
Total 15,236,916,956 100% 6,801,910 0% 15,230,115,046
(e) Movements of provisions for bad and doubtful debts
2022 2021
Balance at the beginning of the year 6,801,910 49,939,652
Charge for the year 13,905,886 5,112,258
Written-off during the year - (48,250,000)
Balance at the end of the year 20,707,796 6,801,910
161
(f) Other receivables categorised by nature
Nature of other receivables Note 2022 2021
Transaction amount (i) 19,338,630,021 15,065,482,829
Others 226,870,164 171,434,127
Sub-total 19,565,500,185 15,236,916,956
Less: Provision for bad and doubtful debts 20,707,796 6,801,910
Total 19,544,792,389 15,230,115,046
(i) As of December 31, 2022 and December 31, 2021, the Company's current accounts
mainly consisted of loans receivable from subsidiaries.
(g) Five largest other receivables by debtor at the end of the year
Other receivables at the end of the year due from the top five debtors of the Company
amounted to RMB 14,977,867,884 in total, most of which are amounts due to/from
related parties within the Group. No provision is made for bad and doubtful debts after
assessment.
3 Long-term equity investments
(1) The Company’s long-term equity investments by category:
2022 2021
Investments in subsidiaries 211,178,767,516 207,777,846,290
Investments in associates and joint ventures 3,162,185,504 3,199,974,945
Sub-total 214,340,953,020 210,977,821,235
Less: Provision for impairment 32,000,000 32,000,000
Total 214,308,953,020 210,945,821,235
The closing balance of long-term equity investments represents the Company's impairment
provision for its subsidiary Beijing BOE Vacuum Technology Co., Ltd. in the prior year of
RMB 32,000,000.
162
(2) Investments in subsidiaries:
Balance of Balance of
provision for provision for
impairment at impairment at
Balance at the Decrease during Balance at the end of the beginning the end of the
Subsidiary beginning of the year Increase during the year the year the year of the year year
Increase in Share-based
investments payments
Beijing BOE Optoelectronics Technology Co.,
Ltd. 4,198,742,954 - 14,526,251 (4,172,288,084) 40,981,121 - -
Chengdu BOE Optoelectronics Technology Co.,
Ltd. 25,055,603,860 - 53,356,143 - 25,108,960,003 - -
Hefei BOE Optoelectronics Technology Co., Ltd. 9,032,079,808 - 31,042,976 - 9,063,122,784 - -
Beijing BOE Display Technology Co., Ltd. 17,520,168,739 - 127,142,375 - 17,647,311,114 - -
Hefei Xinsheng Optoelectronics Technology Co.,
Ltd. 20,122,733,179 - 33,217,425 - 20,155,950,604 - -
Ordos Yuansheng Optoelectronics Co., Ltd. 11,808,874,625 - 5,433,063 - 11,814,307,688 - -
Chongqing BOE Optoelectronics Technology
Co., Ltd. 19,584,823,404 - 14,834,363 - 19,599,657,767 - -
Fuzhou BOE Optoelectronics Technology Co.,
Ltd. 14,687,793,781 - 13,578,397 - 14,701,372,178 - -
Beijing BOE Video Technology Co., Ltd. (“BOE
Video”) 4,094,913,328 330,595,800 1,848,592 - 4,427,357,720 - -
Beijing BOE Vacuum Electronics Co., Ltd. 19,577,537 - 355,992 - 19,933,529 - -
Beijing BOE Vacuum Technology Co., Ltd. 32,000,000 - - - 32,000,000 32,000,000 32,000,000
Beijing Yinghe Century Co., Ltd. 342,184,564 - 10,213,512 - 352,398,076 - -
BOE Optical Science and technology Co., Ltd. 662,168,271 - 5,309,002 - 667,477,273 - -
BOE Hyundai LCD (Beijing) Display Technology
Co., Ltd. 36,624,841 - 5,361,914 - 41,986,755 - -
BOE (Hebei) Mobile Technology Co., Ltd. 1,354,940,194 - 1,343,361 - 1,356,283,555 - -
Beijing BOE Multimedia Technology Co., Ltd. 400,000,000 - - - 400,000,000 - -
Beijing BOE Energy Technology Co., Ltd. 854,286,893 - 3,294,489 - 857,581,382 - -
Beijing BOE Life Technology Co., Ltd. 10,000,000 - - - 10,000,000 - -
Beijing Zhongxiangying Technologies Co., Ltd. 100,578,919 - 1,688,249 - 102,267,168 - -
BOE Semi-conductor Co., Ltd. 9,450,000 - - - 9,450,000 - -
BOE Optoelectronics Holding Co., Ltd. 3,211,961,538 275,723,224 - - 3,487,684,762 - -
BOE Healthcare Investment & Management Co.,
Ltd. 7,283,180,411 540,000,000 893,030 - 7,824,073,441 - -
Hefei BOE Display Technology Co., Ltd. 2,020,815,508 - 20,764,412 - 2,041,579,920 - -
Beijing BOE Technology Development Co., Ltd. 1,724,087 - 788,267 - 2,512,354 - -
BOE Wisdom IOT Technology Co., Ltd. 13,441,936 - 14,954,155 - 28,396,091 - -
Hefei BOE Zhuoyin Technology Co., Ltd. 602,251,996 - 2,452,167 - 604,704,163 - -
Beijing BOE Real Estate Co., Ltd. 8,568,773 - 911,991 - 9,480,764 - -
Beijing BOE Marketing Co., Ltd. 31,014,071 - 559,425 - 31,573,496 - -
BOE (Korea) Co., Ltd. 3,900,987 - 3,194,914 - 7,095,901 - -
Yunnan Invensight Optoelectronics Technology
Co., Ltd. (formerly known as Kunming BOE
Display Technology Co., Ltd.) 1,514,944,989 - 3,652,290 - 1,518,597,279 - -
Mianyang BOE Optoelectronics Technology Co.,
Ltd. 22,329,872,372 - 12,400,963 - 22,342,273,335 - -
Beijing BOE Sensing Technology Co., Ltd. 221,944,202 4,263,288,084 10,873,303 - 4,496,105,589 - -
Wuhan BOE Optoelectronics Technology Co.,
Ltd. 12,511,267,959 - 13,217,462 - 12,524,485,421 - -
Chongqing BOE Display Technology Co., Ltd. 9,085,662,024 218,750,000 8,167,786 - 9,312,579,810 - -
Fuzhou BOE Display Technology Co., Ltd. 22,454,088 - 382,638 - 22,836,726 - -
Beijing Matsushita Colour CRT Co., Ltd. 2,527,690 - 2,623,935 - 5,151,625 - -
BOE Innovation Investment Co., Ltd. 2,964,000,000 234,000,000 191,319 - 3,198,191,319 - -
Hefei BOE Xingyu Technology Co., Ltd. 335,731,430 169,364,156 1,271,650 - 506,367,236 - -
BOE Education Technology Co., Ltd. 27,881,265 - 1,378,009 - 29,259,274 - -
Dongfang Chengqi (Beijing) Business
Technology Co., Ltd. 8,000,000 2,000,000 3,786,416 - 13,786,416 - -
BOE Smart Technology Co., Ltd. 1,822,000,000 250,000,000 - - 2,072,000,000 - -
Nanjing BOE Display Technology Co., Ltd. 5,591,893,772 - 6,736,025 - 5,598,629,797 - -
Chengdu BOE Display Sci-tech Co., Ltd.
(Chengdu Display Sci-tech) 7,550,673,783 - 6,697,855 - 7,557,371,638 - -
BOE Mled Technology Co., Ltd. 600,366,251 700,000,000 12,427,674 - 1,312,793,925 - -
BOE Environmental Energy Technology Co.,
Ltd. - 50,000,000 - - 50,000,000 - -
Chengdu BOE Display Technology Co., Ltd. - 5,263,000 - - 5,263,000 - -
Others* 84,222,261 - 83,353,256 - 167,575,517 - -
Total 207,777,846,290 7,038,984,264 534,225,046 (4,172,288,084) 211,178,767,516 32,000,000 32,000,000
* Others are the equity incentive funds paid for subsidiaries of the subsidiaries of the Group to
be accrued.
For information about the major subsidiaries of the Company, refer to Note VII. 1.
163
(3) Investments in associates:
Movements during the year
Investment Declared Balance of
Balance at the (loss) / income Other distribution of provision for
beginning of the Increase in Decrease in under equity comprehensive Other equity cash dividends or Balance at the impairment at the
Investee year investments investments method income movements profits end of the year end of the year
Erdos BOE Energy Investment Co., Ltd. 76,107,007 60,800,000 - (447,397) - - - 136,459,610 -
Beijing Xindongneng Investment Fund
(Limited Partnership) 2,088,917,867 - (129,798,594) 241,130,621 (61,062,079) - (104,317,491) 2,034,870,324 -
Beijing Innovation Industry Investment Co.,
Ltd. 207,564,573 - - 15,651,980 - - - 223,216,553 -
Beijing Electric Control Industry Investment
Co., Ltd. 231,777,557 21,234,700 - (2,556,780) 7,694,430 - - 258,149,907 -
Beijing BOE Art Cloud Technology Co., Ltd. 215,529,981 - - 9,145,156 - 134,476,619 - 359,151,756 -
Chengdu BOE Automotive Electronics Co.,
Ltd. (formerly known as Chengdu BOE Motor
Electronics Co., Ltd) 200,000,000 - (200,000,000) - - - - - -
Others 180,077,960 - (87,070,668) 65,938,280 63,317 6,910,177 (15,581,712) 150,337,354 -
3,199,974,945 82,034,700 (416,869,262) 328,861,860 (53,304,332) 141,386,796 (119,899,203) 3,162,185,504 -
164
4 Deferred tax assets/deferred tax liabilities
31 December 2022 31 December 2021
Deductible/ Deductible/
(taxable) Deferred tax (taxable)
temporary assets/ temporary Deferred tax
Items differences (liabilities) differences assets/(liabilities)
Deferred tax assets:
Provision for impairment of assets 84,310,502 12,646,575 66,183,860 9,927,579
Changes in fair value of
investments in other equity
instruments 142,547,604 21,382,141 139,523,200 20,928,480
Depreciation of fixed assets 181,992,613 27,298,892 156,677,700 23,501,655
Government grant 143,385,420 21,507,813 209,807,147 31,471,072
Others 38,342,471 5,751,371 59,527,066 8,929,060
Sub-total 590,578,610 88,586,792 631,718,973 94,757,846
Amount offset (88,586,792) (94,757,846)
Balance after offsetting - -
Deferred tax liabilities:
Technology royalty receivable
from subsidiaries (1,250,000,000) (187,500,000) (2,050,000,000) (307,500,000)
Others (87,160,432) (13,074,064) (87,160,432) (13,074,064)
Sub-total (1,337,160,432) (200,574,064) (2,137,160,432) (320,574,064)
Amount offset 88,586,792 94,757,846
Balance after offsetting (111,987,272) (225,816,218)
5 Other payables
Note 2022 2021
Dividends payable 6,410,514 6,561,972
Others (1) 4,242,980,632 2,874,322,796
Total 4,249,391,146 2,880,884,768
165
(1) Others
(a) The Company’s other payables by category are as follows:
Note 2022 2021
Amounts due to/from
subsidiaries 2,912,284,353 1,364,404,865
Repurchase obligation of
restricted shares V.39 753,440,228 835,215,390
Purchase of projects, equipment
and intangible assets 405,997,313 462,535,293
Others 171,258,738 212,167,248
Total 4,242,980,632 2,874,322,796
(b) The Company’s other payables by currency:
2022 2021
Amount in
Amount in Exchange RMB/RMB original Exchange RMB/RMB
original currency rate equivalents currency rate equivalents
RMB 2,182,655,332 2,536,057,636
USD 295,816,014 6.9646 2,060,240,211 52,998,757 6.3757 337,904,175
EUR 11,463 7.4229 85,089 50,000 7.2197 360,985
Total 4,242,980,632 2,874,322,796
166
6 Long-term loans
2022 2021
Credited/ Credited/
collateralised collateralised
guaranteed/ guaranteed/
RMB pledged RMB pledged
Bank loans
- RMB 42,222,030,392 Credited 43,079,530,231 Credited
Less: Long-term loans due within one
year 2,664,530,392 Credited 10,871,030,231 Credited
Total 39,557,500,000 32,208,500,000
The interest rate of RMB long-term loans for the Company ranged from 0% to 3.53% in 2022
(2021: 0% to 3.77%).
7 Other non-current liabilities
31 December 31 December
Item 2022 2021
Payables to related parties 96,394,661,805 74,506,661,805
As of December 31, 2022 and December 31, 2021, the Company's payables to related
parties mainly consisted of loans payables from subsidiaries.
8 Capital reserve
Items Share premium Other capital reserves Total
Balance at the beginning of the year 53,751,381,484 (153,348,332) 53,598,033,152
Add: Equity-settled share-based payments - 699,065,561 699,065,561
Other movements in equity of associates - 141,386,796 141,386,796
Cancellation of treasury shares (641,811,942) - (641,811,942)
Others (42,952,736) (60,093,618) (103,046,354)
Balance at the end of the year 53,066,616,806 627,010,407 53,693,627,213
167
9 Other comprehensive income
Movements during the year
Less: Transfer Less: Transfer of
of other other
Balance at the comprehensive comprehensive
beginning of the Before-tax Less: Income tax income to profit income to retained Balance at the
Item year amount expense or loss earnings end of the year
Items that will not be reclassified to profit or
loss 89,258,107 (56,392,053) (453,661) - 32,873,780 445,935
Including: Other comprehensive income
recognised under equity method 207,852,822 (53,367,649) - - 32,873,780 121,611,393
Changes in fair value of
investments in other equity
instruments (118,594,715) (3,024,404) (453,661) - - (121,165,458)
Items that may be reclassified to profit or
loss (233,457) 63,317 - (64,550) - (105,590)
Total 89,024,650 (56,328,736) (453,661) (64,550) 32,873,780 340,345
10 Retained earnings
Item 2022 2021
Retained earnings at the beginning of the year 11,950,975,927 11,954,088,031
Add: Net profits for the year 3,481,863,512 4,396,496,566
Less: Appropriation for statutory surplus reserve 348,186,351 439,649,657
Interest on holders of other equity instruments 530,695,890 533,600,000
Dividends to ordinary shares 7,958,923,130 3,476,073,919
Transfer of other comprehensive income to
retained earnings (29,586,402) (49,714,906)
Retained earnings at the end of the year 6,624,620,470 11,950,975,927
11 Operating income and operating costs
2022 2021
Item Income Cost Income Cost
Principal activities 4,826,443,711 9,746,176 5,664,683,841 8,880,161
Other operating activities 46,885,004 334,092 52,314,193 7,579,293
Total 4,873,328,715 10,080,268 5,716,998,034 16,459,454
Including: Revenue from contracts 4,758,053,462 417,034 5,594,507,267 6,773,342
with customers
Other income 115,275,253 9,663,234 122,490,767 9,686,112
168
12 Investment income
2022 2021
Income from long-term equity investments
accounted for using the cost method 1,221,116,853 1,841,946,602
Income from long-term equity investments
accounted for using the equity method 328,861,860 864,640,400
Investment income from disposal of long-term
equity
investments 30,000,000 45,527,110
Dividend income from investments in other equity
instruments 206,209 3,554,579
Including: Dividend income from investments in
other equity instruments held at the balance
sheet date 206,209 3,554,579
Others 353,903,009 -
Total 1,934,087,931 2,755,668,691
169
13 Income tax expenses
Note 2022 2021
Current tax expense for the period based
on tax law and regulations 315,456,182 418,134,244
Changes in deferred tax assets/liabilities (1) (113,375,285) (157,278,240)
Total 202,080,897 260,856,004
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
2022 2021
Origination and reversal of temporary differences (113,375,285) (157,278,240)
(2) Reconciliation between income tax expenses and accounting profit:
Item 2022 2021
Profit before taxation 3,683,944,409 4,657,352,570
Expected income tax expense at tax rate of 15% 552,591,661 698,602,886
Add: Non-deductible expenses 32,425,844 22,551,281
Non-taxable income (253,782,990) (362,122,686)
Tax deduction for R&D activities (129,158,755) (107,936,270)
Others 5,137 9,760,793
Income tax expenses 202,080,897 260,856,004
170
14 Supplementary information on cash flow statement
(1) Supplement to the cash flow statement
2022 2021
(a) Reconciliation of net profit to cash flows from
operating activities:
Net profit 3,481,863,512 4,396,496,566
Add: Credit losses 18,126,642 5,247,340
Depreciation of fixed assets, investment
properties and right-of-use assets 198,186,954 186,180,161
Amortisation of intangible assets 205,316,168 175,887,643
Amortisation of long-term deferred
expenses 53,563,810 74,101,005
Loss on disposal of fixed assets,
intangible assets and other long-term
assets - 773,327
Losses from scrapping of fixed assets 11,563 -
Financial expenses 572,555,726 796,624,497
Investment income (1,934,087,931) (2,755,668,691)
Share-based payments 164,840,515 139,972,018
Change in deferred income (916,302,566) (910,723,593)
Changes in deferred tax assets and
liabilities (113,828,946) (159,881,386)
Decrease in gross inventories 787,291 2,769,045
Decrease / (increase) in operating
receivables 780,128,458 (83,241,004)
Increase / (decrease) in operating
payables 1,173,595,580 (1,164,437,376)
Net cash inflow from operating activities 3,684,756,776 704,099,552
171
(b) Net changes in cash and cash equivalents:
2022 2021
Cash and cash equivalents at the end of the
year 7,111,879,033 5,599,937,349
Less: Cash and cash equivalents at the
beginning of the year 5,599,937,349 4,360,065,216
Net increase in cash and cash equivalents 1,511,941,684 1,239,872,133
(2) Details of cash and cash equivalents
2022 2021
Cash on hand 13,361 12,554
Bank deposits available on demand 7,111,658,528 5,527,470,074
Other monetary funds available on demand 207,144 72,454,721
Closing balance of cash and cash equivalents 7,111,879,033 5,599,937,349
Note: Cash and cash equivalents disclosed above exclude other monetary fund with
restricted usage.
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XVI. Extraordinary gains and losses in 2022
2022 2021
Investment income from disposal of long-term
equity investments 829,872,568 37,327,797
Other income from long-term equity investments 4,620,534,865 -
Losses from disposal of non-current assets (4,908,339) 136,846,803
Government grants recognised through profit or
loss (excluding those having close relationships
with the Company’s normal operation and
enjoyed in fixed amount or quantity according to
uniform national standard) 5,458,665,272 2,077,537,306
Changes in fair value of financial assets held for
trading and investment income from disposal of
financial assets held for trading 275,498,559 121,656,142
Reversal of provision for bad and doubtful debts of
receivables assessed on an individual basis 18,395,999 20,304,301
Other non-operating income and expenses
besides items above 90,115,764 90,587,512
Less: Tax effect 133,580,776 191,362,477
Total 11,154,593,912 2,292,897,384
Including: Extraordinary gains affecting net profit
of equity shareholders of the Company 9,779,529,951 1,893,395,748
Extraordinary gains affecting net profit
of equity shareholders of the non-
controlling shareholders 1,375,063,961 399,501,636
Note: Extraordinary gain and loss item listed above are presented in the amount before
taxation.
173
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 5.45% 0.19 Not applicable
Net profit excluding extraordinary gain and
loss attributable to the Company’s ordinary
equity shareholders (2.21%) (0.08) Not applicable
1 Calculation of earnings per share
(1) Basic earnings per share
For calculation of the basic earnings per share, refer to Note V.57.
(2) Basic earnings per share excluding extraordinary gain and loss
Basic earnings per share excluding extraordinary gain and loss is calculated as 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:
2022 2021
Consolidated net profit attributable to ordinary
shareholders of the Company 6,955,656,068 25,395,917,610
Extraordinary gains and losses attributable to
ordinary shareholders of the Company 9,779,529,951 1,893,395,748
Consolidated net (loss) / profit excluding
extraordinary gain and loss attributable to the
Company’s ordinary equity shareholders (2,823,873,883) 23,502,521,862
Weighted average number of ordinary shares
outstanding 37,502,641,911 35,704,986,088
Basic earnings per share excluding extraordinary
gain and loss (RMB/share) (0.08) 0.66
174
2 Calculation of weighted average return on net assets
(1) Weighted average return on net assets
Weighted average return on net assets is calculated as dividing consolidated net profit
attributable to ordinary shareholders of the Company by the weighted average amount of
consolidated net assets:
2022 2021
Consolidated net profit attributable to ordinary
shareholders of the Company 6,955,656,068 25,395,917,610
Weighted average amount of consolidated net
assets 127,513,376,950 106,139,286,422
Weighted average return on net assets 5.45% 23.93%
Calculation of weighted average amount of consolidated net assets is as follows:
2022 2021
Consolidated net assets at the beginning of the
year 129,057,243,520 89,165,346,609
Effect of consolidated net profit attributable to
ordinary shareholders of the Company 3,477,828,034 12,697,958,805
Effect of non-public issuance of shares - 6,623,170,611
Effect of repurchase of treasury shares (495,230,613) (594,867,425)
Distribution of profits to ordinary shareholders (4,626,435,310) (1,738,036,960)
Effect of change in shareholding ratio of
subsidiaries 374,012,026 (426,455,629)
Effect of movements in amounts attributable to
ordinary shareholders of the Company (274,040,707) 412,170,411
Weighted average amount of consolidated net
assets 127,513,376,950 106,139,286,422
(2) Weighted average return on net assets excluding extraordinary gains and losses
Weighted average return on net assets excluding extraordinary gain and loss is calculated as
dividing consolidated net profit excluding extraordinary gain and loss attributable to ordinary
shareholders of the Company by the weighted average amount of consolidated net assets:
2022 2021
Consolidated net (loss) / profit excluding
extraordinary gain and loss attributable to the
Company’s ordinary equity shareholders (2,823,873,883) 23,502,521,862
Weighted average amount of consolidated net
assets 127,513,376,950 106,139,286,422
Weighted average return on net assets excluding
extraordinary gain and loss (2.21%) 22.14%
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