ANNUAL REPORT 2022
April 2023
Message to Our Shareholders
Upon the past of a fruitful year, we are now standing at a new beginning.
2022 was not an easy year. Despite all those severe and unprecedented challenges, everyone at BOE
has continued forging ahead with diligence and fortitude, actively overcoming external challenges
like economic downturns and market fluctuations. As a result, BOE has achieved above-average
operating results industry-wide. During the year, BOE recorded operating revenue of RMB178.41
billion, with a net profit attributable to BOE shareholders of RMB7.55 billion. This is indicative of a
significant improvement in the resilience of its operations amid a downturn in the industry. There
have been steady and rising shipments of mainstream LCD applications throughout the year. The
shipment area in five application domains, namely smartphones, tablet PCs, laptops, monitors, and
TVs, continued to rank first globally, while the market share in innovative application fields like tiled
display screens and vehicle-mounted products also ranked first in the world. Flexible AMOLEDs
continued to maintain a growing momentum and even achieved further breakthroughs in terms of
shipment volume, with an 30% increase.
Under the strategic guidance of “Screen-Connected IoT”, BOE also achieved a series of outstanding
results in the business of Internet of Things (IoT) transformation. The revenue of system solutions
increased by more than 41%, and the revuenue of sensing business, MLED business, smart medical
industry business increased by over 41%, nearly 85% and over 19%, respectively.Also, multiple
benchmark projects were created successfully in various segment application scenarios related to IoT,
including smart industrial parks, smart finance, and visual arts.
During the course of its development, BOE’s goal is to pursue high-quality growth. With continuous
exploration, BOE has constantly been making the focus of its high-quality development clear and
definite.
Use Strategic Guidance to Drive High-quality Development
BOE has put in place a “1+4+N+Ecosystem” business development structure by centring on the
development strategy of “Screen-Connected IoT” and by further improving its pattern of development.
"1" represents semiconductor display, which is the core capacity and quality resources accumulated
by BOE, as well as the source and origin of the Company's transformation and development. "4" is a
high-potential channel and direction of development selected based on BOE's core competence and
value chain extension, as well as the four main fronts of the Company's IoT transformation, namely
the IoT Innovation business, the Sensor business, the MLED business and the Smart Medical
Engineering business. "N" refers to the subdivided application scenarios of IoT that are continuously
explored and cultivated by BOE, as well as the specific focus of the Company's IoT transformation
development. And “Ecosystem” is an industrial ecological development circle constructed by the
Company in collaboration with many partners and by aggregating the resources of the industrial chain
and ecosystem chain.
Enhance Core Capacity with Innovation as the Driving Force
BOE has always insisted on having technology serve the public through technological and product
innovation. So far, BOE has already independently applied for a total of over 80,000 patents, of which
more than 28,000 are related to OLED. This has effectively strengthened the core patent portfolio and
continuously improved the patent attack and defence system. In 2022, BOE ranked 11th worldwide
in terms of the number of patents granted by the US according to IFI, and it has also been among the
global top 20 for five consecutive years. With a total of 1,884 PCT patent applications, BOE ranked
7th worldwide in terms of the number of PCT patent applications submitted to the World Intellectual
Property Organization, and it has been among the global top 10 for seven consecutive years.
Meanwhile, BOE has been adhering to the dual drivers of “technology + brand” and deepening its
BOE Technology Group Co., Ltd. Annual Report 2022
promotion of the three technology brands ADS PRO, f-OLED, and α-MLED on the customer end.
Currently, the relevant products have won orders from eight brand customers, while many other new
products have made their global debut. BOE continues to lead the industry and build a leading edge
with a strong technology presence.
Build a Strong Team to Win in the Competition
Talent is the key to a successful business. BOE is consistently strengthening its talent management as
well as its incentive mechanism, and it is always striving to fully mobilize the enthusiasm, initiative,
and creativity of its talented personnel at all levels through mechanisms such as its professional
manager system, contract-based appraisal, equity incentives, and incubation of innovation.
Meanwhile, BOE is also always taking a global view and doing its best to not only gather outstanding
talented personnel in the industry, but also train its talent through systematic training projects that
span every BOE employee’s entire career. Moreover, by continuously strengthening and improving
its talent selection, training, deployment and retention system, BOE is continuing to build a high-
level team of talent that will promote the Company’s stable and high-quality development over the
long term. BOE upholds the development principle of “market orientation, internationalization and
professionalization” and strives to globalize its operations. Among the talented personnel who have
made important contributions to the Company’s high-quality development, there are nearly 400
foreign experts as well as over 2,600 overseas employees.
Sketch Out a Bright Future with Green Practices
Throughout the course of its development, BOE has actively been practicing the concept of green and
low-carbon development, which includes reducing carbon emissions in an orderly manner by
promoting carbon neutrality pilot projects and using clean energy, as well as boosting its unified
planning and effective implementation of peak carbon emissions and eventual carbon neutrality. In
2022, BOE established and improved its carbon emission management system and defined the target
and path for peak carbon emissions and eventual carbon neutrality. In the future, BOE will implement
further measures for achieving peak carbon emissions, develop its path toward carbon neutrality, and
ensure the orderly implementation of its “peak carbon emissions and carbon neutrality” strategy “in
three steps”. Meanwhile, BOE will also continue to practice the development concept of “Creating a
Better Future Together”, and to continue making contributions toward building a peaceful, stable,
prosperous, and beautiful home for all.
2023 marks the 30th anniversary of the founding of BOE. Looking back on the past, BOE people
have used their entrepreneurial enthusiasm and dreams to lead China’s semiconductor display
industry in achieving progress from “0” to “1”, and have helped the industry lead the world by
achieving epoch-making breakthroughs. And looking ahead to the future, BOE people will seek to
fully implement the “Screen-Connected IoT” development strategy through an even more energetic
fighting spirit and to keep making progress toward becoming “a global leader in the IoT innovation
sector”.
I would like to express my heartfelt gratitude to all our shareholders for accompanying us all the way
along. And we look forward to your continuous support as we continue on the journey to be the most
respected company on earth!
Chairman of BOE
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BOE Technology Group Co., Ltd. Annual Report 2022
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referred
to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the
contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Mr. Chen Yanshun, the Company’s legal representative, Mr. Gao Wenbao, President, Ms. Yang
Xiaoping, Chief Financial Officer, and Mr. Teng Jiao, head of the financial department
(equivalent to financial manager) hereby guarantee that the Financial Statements carried in
this Report are factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report and
its summary.
Any plans for the future and other forward-looking statements mentioned in this Report shall
NOT be considered as absolute promises of the Company to investors. Investors, among others,
shall be sufficiently aware of the risk and shall differentiate between plans and forecasts and
promises.
The Board has approved a final dividend plan for the Reporting Period. Based on
37,668,177,369 shares, a cash dividend of RMB0.61 (tax inclusive) per 10 shares is to be
distributed to all the shareholders, with no bonus issue from either profit or capital reserves.
This Report and its summary have been prepared in Chinese and translated into English.
Should there be any discrepancies or misunderstandings between the two versions, the Chinese
versions shall prevail.
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BOE Technology Group Co., Ltd. Annual Report 2022
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 4
Part II Corporate Information and Key Financial Information ................................................... 9
Part III Management Discussion and Analysis ............................................................................. 14
Part IV Corporate Governance ...................................................................................................... 43
Part V Environmental and Social Responsibility .......................................................................... 73
Part VI Significant Events ............................................................................................................... 81
Part VII Share Changes and Shareholder Information ............................................................... 97
Part VIII Preferred Shares ............................................................................................................ 109
Part IX Bonds ................................................................................................................................. 110
Part X Financial Statements ......................................................................................................... 115
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BOE Technology Group Co., Ltd. Annual Report 2022
Documents Available for Reference
(I) The financial statements signed and sealed by the Company’s legal representative, President, Chief Financial Officer and head of
the financial department (equivalent to financial manager);
(II) The original of the Independent Auditor’s Report sealed by the CPA firm and signed and sealed by the certified public accountants;
(III) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the Reporting
Period; and
(IV) This Report disclosed in other securities markets.
All the above mentioned documents are available at the Board Secretary’s Office of the Company.
Chairman of the Board (signature): Mr. Chen Yanshun
Date of the Board’s approval of this Report: 31 March 2023
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BOE Technology Group Co., Ltd. Annual Report 2022
Definitions
Term Definition
“BOE”, the “Company”, the “Group” or BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where
“we” the context otherwise requires
The cninfo website http://www.cninfo.com.cn/
CSRC The China Securities Regulatory Commission
SZSE, the Stock Exchange The Shenzhen Stock Exchange
The Stock Listing Rules The Stock Listing Rules of the Shenzhen Stock Exchange
Guideline No. 1 of the Shenzhen Stock Exchange Regarding Self-disciplinary
The Compliance in Operation of Main
Activities and Regulation of Listed Companies—Compliance in Operation of
Board Listed Companies
Main Board Listed Companies
The Articles of Association The Articles of Association of BOE Technology Group Co., Ltd.
The Company Law The Company Law of the People’s Republic of China
The Securities Law The Securities Law of the People’s Republic of China
OLED Organic Light Emitting Diode
LED Light-emitting Diode
MLED Mini/Micro LED
Mini/Micro LED Submillimeter/Micro Light Emitting Diode
TFT-LCD Thin Film Transistor Liquid Crystal Display
AMOLED Active-matrix Organic Light Emitting Diode
Oxide A compound of oxygen and another chemical element
Microdisplay Microdisplay technology
IoT Internet of Things
A type of radiation that can pass through objects that are not transparent and make
X-ray
it possible to see inside them
SID The Society for Information Display
DIA Display Industry Awards
EPQ A drive technology
HSR A frequency multiplication technology
EPD Electrophoretic Display
P0.9 Point 0.9mm
COG Chip (Mini LED) On Glass
SMD Surface Mount Technology
COB Chip (Mini LED) On Board (PCB)
dB Decibel
MNT Monitor, generally referring to the 27~34 inch model
MNT Gaming Monitor Gaming
mm Millimeter
nit Unit for brightness
LCD Liquid Crystal Display
Panel Display panel
IC Integrated Circuit Chip
Cell Liquid crystal cell
AA 区 Active area
LD Local Dimming
An integrated circuit chip that can decode video signals and make them receivable
Scaler IC
by LCD panels
CPU Central Processing Unit
DSC Display Stream Compression
SaaS Software as a Service
AI Artificial Intelligence
Pitch Distance between two points
LTPS Low Temperature Poly-Silicon
LTPO Low Temperature Polycrystalline Oxide
VR Virtual Reality
EES Enhanced efficiency structure
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BOE Technology Group Co., Ltd. Annual Report 2022
FPXD Flat Panel X-ray Detector
TPC Tablet Personal Computer
ODM Original Design Manufacturer
ADS Pro One of BOE’s three major technology brands
SBTi Science Based Targets initiative
TN Raster Twisted Nematic LCD Raster
BOEU BOE University
Chemical Oxygen Demand, a chemical measurement of the amount of reducing
COD
substances to be oxidised in a water sample
Digital Cinema Initiatives - Protocol 3, wide color gamut standards released by the
DCI-P3
American film industry, which are widely used color standards for digital movies
Mask Mask for pattern etching
TFT Thin Film Transistor
8
BOE Technology Group Co., Ltd. Annual Report 2022
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name BOE-A, BOE-B Stock code 000725, 200725
Previous stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 京东方科技集团股份有限公司
Abbr. 京东方
Company name in English (if
BOE TECHNOLOGY GROUP CO., LTD.
any)
Abbr. (if any) BOE
Legal representative Chen Yanshun
Registered address 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China
Zip code 100015
Past changes of registered address N/A
Office address 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China
Zip code 100176
Company website www.boe.com
Email address ir@boe.com.cn
II Contact Information
Item Board Secretary Securities Representative
Name Liu Hongfeng Luo Wenjie
12 Xihuan Middle Road, Beijing 12 Xihuan Middle Road, Beijing
Office Address Economic-Technological Development Economic-Technological Development
Area, P.R.China Area, P.R.China
Tel. 010-64318888 ext. 010-64318888 ext.
Fax 010-64366264 010-64366264
E-mail address liuhongfeng@boe.com.cn luowenjie@boe.com.cn
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this
http://www.szse.cn
Report is disclosed
Media and website where this Report is China Securities Journal, Shanghai Securities News, Securities Times, Ta Kung Pao (HK),
disclosed http://www.cninfo.com.cn/
Place where this Report is lodged Board Secretary’s Office
IV Changes to Company Registered Information
Unified social credit code No change
Change to principal activity of the Company since going public (if any) No change
Every change of controlling shareholder since incorporation (if any) No change
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BOE Technology Group Co., Ltd. Annual Report 2022
V Other Information
The independent audit firm hired by the Company:
Name KPMG Huazhen LLP
Office address 8/F, East Tower 2, Oriental Plaza, 1 East Chang An Avenue, Dongcheng District, Beijing
Accountants writing signatures Su Xing and Chai Jing
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
Applicable □ Not applicable
Name Office address Representatives Supervision period
Room 2203, North Tower, Shanghai Securities
Han Yong and 20 August 2021-31 December
China Securities Co., Ltd. Plaza, 528 Pudong South Road, Pudong New
Liao Ling 2022
Area, Shanghai
Building F12, China IOT International
Hua Ying Securities Company Jin Cheng and Wu 20 August 2021-31 December
Innovation Park, 200 Linghu Avenue, Xinwu
Limited Yi 2022
District, Wuxi City
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
Yes □ No
Reason for retrospective restatement: Change of accounting policy.
2022-
over-2021
2021 2020
Item 2022 change
(%)
Before Restated Restated Before Restated
Operating revenue
178,413,731,179.00 219,309,799,505.00 221,035,718,012.00 -19.28% 135,552,569,729.00 135,552,569,729.00
(RMB)
Net profit
attributable to the
7,550,877,790.00 25,830,935,500.00 25,960,751,646.00 -70.91% 5,035,627,952.00 5,035,627,952.00
listed company’s
shareholders (RMB)
Net profit
attributable to the
listed company’s
-2,228,652,161.00 23,937,539,752.00 24,067,355,898.00 -109.26% 2,670,454,834.00 2,670,454,834.00
shareholders before
exceptional gains
and losses (RMB)
Net cash generated
from/used in
43,021,967,305.00 62,270,556,324.00 62,698,688,556.00 -31.38% 39,251,773,458.00 39,251,773,458.00
operating activities
(RMB)
Basic earnings per
0.19 0.71 0.71 -73.24% 0.13 0.13
share (RMB/share)
Diluted earnings per
-- 0.71 0.71 -- 0.13 0.13
share (RMB/share)
Weighted average
5.45% 23.84% 23.93% -18.48% 5.15% 5.15%
return on equity (%)
Change of
31
Item 31 December 2022 31 December 2021 31 December 2020
December
2022 over
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BOE Technology Group Co., Ltd. Annual Report 2022
31
December
2021 (%)
Before Restated Restated Before Restated
Total assets (RMB) 420,562,103,212.00 449,726,980,355.00 450,232,603,404.00 -6.59% 424,256,806,331.00 424,297,693,499.00
Equity attributable
to the listed
136,089,410,395.00 142,925,547,899.00 143,204,240,947.00 -4.97% 103,276,766,835.00 103,312,344,036.00
company’s
shareholders (RMB)
Reason for accounting policy change and correction of accounting error:
The relevant data have been retrospectively restated in accordance with the Interpretation No. 15 of the Accounting Standards for
Business Enterprises issued by the Ministry of Finance.
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there was
uncertainty about the Company’s ability to continue as a going concern.
□ Yes No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative.
Yes □ No
Item 2022 2021 Remark
Operating revenue (RMB) 178,413,731,179.00 221,035,718,012.00 N/A
Amount deducted from
0.00 0.00 N/A
operating revenue (RMB)
Operating revenue after
178,413,731,179.00 221,035,718,012.00 N/A
deduction (RMB)
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable Not applicable
No difference for the Reporting Period.
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BOE Technology Group Co., Ltd. Annual Report 2022
VIII Key Financial Information by Quarter
Unit: RMB
Item Q1 Q2 Q3 Q4
Operating revenue 50,475,809,458.00 41,134,432,411.00 41,134,145,106.00 45,669,344,204.00
Net profit attributable to the listed
4,388,727,184.00 2,206,934,554.00 -1,304,557,522.00 2,259,773,574.00
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 3,511,402,963.00 728,053,130.00 -2,688,031,763.00 -3,780,076,491.00
exceptional gains and losses
Net cash generated from/used in
14,755,368,710.00 13,356,631,955.00 2,918,435,636.00 11,991,531,004.00
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.
□ Yes No
IX Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item 2022 2021 2020 Note
Gain or loss on disposal of non-current assets (inclusive
5,445,499,094.00 174,174,600.00 373,432,171.00 N/A
of impairment allowance write-offs)
Tax rebates, reductions and exemptions given with ultra
0.00 0.00 0.00 N/A
vires approval or in lack of official approval documents
Government subsidies charged to current profit or loss
(exclusive of government subsidies consistently given in
the Company’s ordinary course of business at fixed 5,458,665,272.00 2,077,537,306.00 2,332,107,692.00 N/A
quotas or amounts as per governmental policies or
standards)
Capital occupation charges on non-financial enterprises
0.00 0.00 0.00 N/A
that are charged to current profit or loss
Gain equal to the amount by which investment costs for
the Company to obtain subsidiaries, associates and joint
ventures are lower than the Company’s enjoyable fair 0.00 0.00 0.00 N/A
value of identifiable net assets of investees when making
investments
Gain or loss on non-monetary asset swaps 0.00 0.00 0.00 N/A
Gain or loss on assets entrusted to other entities for
0.00 0.00 0.00 N/A
investment or management
Allowance for asset impairments due to acts of God such
0.00 0.00 0.00 N/A
as natural disasters
Gain or loss on debt restructuring 0.00 0.00 0.00 N/A
Restructuring costs in staff arrangement, integration, etc. 0.00 0.00 0.00 N/A
Gain or loss on the over-fair value amount as a result of
0.00 0.00 0.00 N/A
transactions with distinctly unfair prices
Current profit or loss on subsidiaries obtained in business
combinations involving enterprises under common
0.00 0.00 0.00 N/A
control from the period-beginning to combination dates,
net
Gain or loss on contingencies that do not arise in the
0.00 0.00 0.00 N/A
Company’s ordinary course of business
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BOE Technology Group Co., Ltd. Annual Report 2022
Gain or loss on fair-value changes in held-for-trading
financial assets and liabilities & income from disposal of
held-for-trading financial assets and liabilities and
275,498,559.00 121,656,142.00 82,698,484.00 N/A
available-for-sale financial assets (exclusive of the
effective portion of hedges that arise in the Company’s
ordinary course of business)
Reversed portions of impairment allowances for
18,395,999.00 20,304,301.00 15,447,820.00 N/A
receivables which are tested individually for impairment
Gain or loss on loan entrustments 0.00 0.00 0.00 N/A
Gain or loss on fair-value changes in investment property
of which subsequent measurement is carried out using 0.00 0.00 0.00 N/A
the fair value method
Effects of all adjustments required by taxation,
accounting and other applicable laws and regulations on 0.00 0.00 0.00 N/A
current profit or loss
Income from charges on entrusted management 0.00 0.00 0.00 N/A
Non-operating income and expense other than the above 90,115,764.00 90,587,512.00 65,391,368.00 N/A
Other gains and losses that meet the definition of
0.00 0.00 0.00 N/A
exceptional gain/loss
Less: Income tax effects 133,580,776.00 191,362,477.00 185,966,533.00 N/A
Non-controlling interests effects (net of tax) 1,375,063,961.00 399,501,636.00 317,937,884.00 N/A
Total 9,779,529,951.00 1,893,395,748.00 2,365,173,118.00 --
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.
1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable Not applicable
No such cases for the Reporting Period.
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BOE Technology Group Co., Ltd. Annual Report 2022
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
In the macro environment of frequent geopolitical risks and global economic downturn, inflation remained at high levels, consumer
confidence and capacity continued to be low, fixed expenditure inhibited consumption upgrade, and purchasing strategies on the brand
end became conservative. As a result, the semiconductor display industry saw an imbalance between supply and demand, and the
industry development was under significant pressure throughout the year. The prices of mainstream semiconductor display application
products declined throughout the year, and panel procurement on the brand end adopted a conservative posture. Although the overall
utilisation ratio of panel factories remained relatively low, they still faced great shipment pressure. The growth engine of the consumer
electronics industry shifted from traditional applications such as mobile phones, laptops, and TVs to new segmented application fields
such as VR/AR and smart watches, and semiconductor display technology also gradually transformed into a development pattern with
LCD as the focus and OLED and Narrow Pixel Pitch LED displays as highlights.
Currently, China attaches great importance to developing the real economy, continues to promote the high-end, smart, and green
development of the manufacturing industry, and accelerates the construction of China’s strength in manufacturing, product quality and
digital development. IoT is one of the important infrastructures in the digital economy era. Sensors, artificial intelligence, edge
computing, big data, and other technology applications are accelerating iterative development, speeding up the construction of the
ecology of the Internet of Everything (IoE) and promoting the rapid development of demand-side scenarios. Supported by increasingly
mature technology and growing demand for intelligence, smart screens, industrial sensors, and automotive electronics have gained
first-mover advantage and the product market scale continues to expand. As the technology gradually matures and the potential for
integration applications is unleashed, a variety of IoT technologies will be integrated into industry, transportation, finance, architecture,
energy, and other industries and boost the rapid development of the industrial IoT, Intelligent Car Networking, smart finance, smart
industrial parks, smart energy and other IoT application industries.
At the 20th National Congress of the Communist Party of China, it was mentioned that we should promote the construction of a healthy
China, prioritise the protection of people's health in strategic development, and improve the policies of promoting people's health.
Several policies jointly encourage the research, development, and application of innovative medical devices and biomedicine, actively
promote the domestic substitution of medical devices and equipment, and accelerate the construction of a health service system
featuring the integration of prevention and treatment, the integration of medicine and health care, and intelligence, providing broad
development prospects for innovative medical engineering products and integrated health care services for prevention and treatment.
II Principal Activity of the Company in the Reporting Period
BOE Technology Group Co., Ltd. is a leading IoT company providing intelligent interface products and professional services for
information interaction and human health. Based on a deep understanding of the intrinsic laws of the market and practical exploration,
and in order to further enhance its value creation capability, BOE has put forward the development strategy of "Screen-Connected IoT"
based on its core genes and capabilities, seizing the ubiquitous growth opportunities of "screen", and fully leveraging its core advantage
of "screen" to integrate screens into more market segments and application scenarios by integrating more functions and deriving more
forms. By doing so, BOE will realize the user perception revolution of "screen as terminal" in the digital era, build an industrial ecology
of "screen as platform and screen as system", and reshape the value growth model. At the same time, based on the strategic design of
"Screen-Connected IoT", BOE will bring a new connotation to the "1+4+N+Ecosystem" development structure under the new
development pattern.
"1" represents semiconductor display, which is the core capacity and quality resources accumulated by BOE, as well as the source and
origin of the Company's transformation and development.
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BOE Technology Group Co., Ltd. Annual Report 2022
"4" is a high-potential channel and direction of development selected based on BOE's core competence and value chain extension, as
well as the four main fronts of the Company's IoT transformation, namely the IoT Innovation business, the Sensor business, the MLED
business and the Smart Medical Engineering business.
"N" refers to the subdivided application scenarios of IoT that are continuously explored and cultivated by BOE, as well as the specific
focus of the Company's IoT transformation development.
“Ecosystem” is an industrial ecological development circle constructed by the Company in collaboration with many partners and by
aggregating the resources of the industrial chain and ecosystem chain.
The Company's core businesses are summarized as follows:
1. The Display Devices business
The Display Devices business offers integrated design and manufacturing services for devices, and is committed to providing interface
devices applying TFT-LCD, AMOLED, Microdisplay and other technologies, focusing on providing customers with high-quality
display devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicle-mounted, electronic shelf label (ESL), industrial control,
household medical applications, applications on wearable devices, whiteboards, tiled display screens, commercial devices, VR/AR
devices, etc.
2. The IoT Innovation business
The IoT Innovation business offers integrated design and manufacturing services for system solutions, and provides customers with
competitive smart terminal products for TVs, monitors, laptops, tablets, low-power devices, IoT, 3D display, etc. Backed by AI and
big data technologies, it focuses on products and services combining hardware and software, providing integrated IoT solutions for
segments including smart industrial parks, smart finance, visual arts, smart public service, smart transportation, etc.
3. The Sensor business
The Sensor and Solution business offers integrated design and manufacturing services for system solutions, focuses on medical
biological segment, smart transportation and construction displays, consumer electronics, industrial sensors and other fields, and
provides customers with design and manufacturing of sensor devices and system solution services, with specific products and solutions
including back plates for flat panel X-ray detectors (FPXD), digital microfluidic chips, intelligent PDLC glass and PDLC system
solutions, fingerprint identification sensors and systems, as well as industrial sensors and solutions, among others.
4. The MLED business
MLED business renders Mini-LED backlight products with high reliability and high partition of dimming for LCD of tablet PCs,
laptops, monitors, TVs, vehicles, wearable devices, etc., as well as Mini/Micro-LED display product solutions with high brightness,
high reliability and high contrast for segment markets of outdoor, commercial, transparent, specialized and other displays. All these
products are designed and manufactured in an integrated manner.
5. The Smart Medical Engineering business
The Smart Medical Engineering business adopts the professional service model to combine technologies with medicine and integrate
medicine and engineering with innovation, so as to provide people-oriented services for families, communities and hospitals. It connects
testing equipment, healthcare workers and customers through the health IoT platform to build a smart health management ecosystem
where customers enjoy health services including prevention, treatment, therapy and nursing.
Meanwhile, with a specific focus on "N", the Company provides hardware and software integrated system solutions for different
industries, including industrial IoT, smart energy, digital art, and other fields, which can provide customers with all-dimensional, one-
stop and smart new experience under IoT scenarios.
III Core Competitiveness Analysis
1. Excellent management team
Since the Company implemented the strategy of "conducting overseas acquisitions and taking root in domestic markets" and entered
15
BOE Technology Group Co., Ltd. Annual Report 2022
the semiconductor display industry at a high starting point, it has developed into a leading enterprise in the global semiconductor
display industry after years of robust growth. The Company's management team has solid professional knowledge, rich industry
experience, leading management level and keen strategic vision. Thanks to their efforts, the Company continued to grow stronger in
the semiconductor display field, and grasped future development opportunities to firmly promote the Company's IoT transformation,
and rendered a lot of achievements. In the context of the complex global political and economic situation, and the weak consumer
electronic demand, among others, the Company's management overcame many difficulties, led the team to turn the downturn into
growth opportunities, actively seized market opportunities, and strengthened its core capabilities. As a result, the Company led the way
in operating quality industry-wide in the year.
2. Stable market position and capability of innovation and market expansion
The Company's semiconductor display products ranked first in the world in terms of the shipment volume and shipment area throughout
the year. Among them, the five mainstream applications of LCDs, namely, smartphones, tablet PCs, laptops, monitors, and TVs,
continued to rank first globally, and the market share of flexible OLEDs for smartphones was nearly 20%.
The innovation business continued to grow rapidly, making significant progress in technology and product enhancement, market
promotion and expansion, revenue growth and value creation, etc. In 2022, the revenue of system solutions grew by over 41% year-
on-year; the sensor business grew by over 41% year-on-year; the MLED business grew by over 85% year-on-year; and the smart
medical engineering business revenue grew by nearly 20% year-on-year.
3. Well-established technology R&D system and technology leadership
With the short-, medium-, and long-term technology R&D system, the Company actively laid out forward-looking technology
directions while accelerating the productisation of technology to ensure that the Company's technological strength continued to lead.
In terms of patent achievements, as of the end of 2022, the Company's cumulative independent patent applications exceeded 80,000.
Among the new patent applications filed in the year, over 90% were invention patents and over 33% were overseas patents, with patent
applications in the fields of flexible OLEDs, sensors, artificial intelligence and big data accounting for over 50%, covering many
countries and regions such as the U.S., Europe, Japan and Korea. The Company held a total of over 40,000 validly granted patents
worldwide and was ranked among the Top 20 Organizations Granted US Patent in the world for five consecutive years (ranked 11th
in 2022). Regarding industry standards, the Chinese electronics industry standard the Optical Performance Test Methods for Vehicle
Head-up Displays, which the Company took the lead in formulating, was approved and released by the Ministry of Industry and
Information Technology, becoming the first authoritative test standard for the HUD (Head-Up Display) industry in China. The MNT
"S+ Standard" was awarded the third-party certification by the China Optics and Optoelectronics Industry Association. The Industrial
Design Centre won 13 design awards including two Red Dot Awards, and was qualified as a leading design institution in Beijing and
a design innovation centre in Beijing. As for awards and honours, BOE's National Engineering Research Centre for New-type Displays
won the honour of only National Engineering Research Centre for New-type Displays in the display industry under the supervision of
the National Development and Reform Commission. Also, the project of R&D and industrialisation of high refresh rate display
technology based on super-dimensional field technology won the First Prize of Beijing Science and Technology Progress in 2021. In
terms of product and technology development, the Company was the world's first the launch a number of LCD technologies, leading
the direction of technology upgrade. For example, TV products adopt ADS PRO technology, which achieve image quality comparable
to OLED through material improvement and process design optimisation and are successfully introduced to top customers, setting off
a new wave of LCD image quality revolution. The 86 inch COG AM Mini LED backlight unit won the SID DIA Award - 2022 Display
Component of the Year, and COG P0.9 and COB P0.9-1.5 full series products achieved mass production for several brand customers.
The first launch rate of sensor device products increased rapidly, FPXD products were introduced to top customers in Europe and the
U.S., and front-mounted passenger vehicle products of dimming windows were successfully introduced. The Company won the honour
of MIT Technology Review's "50 Smartest Companies in the World" for its self-developed light and shadow devices. The "Human
Umbilical Cord Mesenchymal Stem Cell Membrane", the self-developed Class-1 new drug of regenerative medicine entered Phase I
clinical trials, which was the world's first mesenchymal stem cell membrane product to be approved for clinical trials.
4. Efficient management system and lean management capability
16
BOE Technology Group Co., Ltd. Annual Report 2022
The Company has established an operational management mechanism of "three offices and three managements" through a platform-
based organisational design. An agile front office, an intensive middle office, and an efficient back office were built, and an
organisational operating mechanism with strategic management, procedure management, and performance management extending
vertically in place was constructed and continuously optimised and upgraded. The Company firmly promoted digital transformation,
achieved the in-depth integration between online and offline, and continued to deepen the digital management system of "Agile
Response, Efficient Collaboration, and Full-range Access" to improve the Company's management quality and operational efficiency.
BOE continuously optimised its operation mechanism, promoted the centralisation and scale of products, continued to strengthen
platform linkages and connections and maximised its advantages of intensification, continuously enhancing the efficiency of production
lines. The 8.5th generation of TFT-LCD production line in Fuzhou became the first enterprise in the Chinese Mainland to be awarded
as the "lighthouse factory" in the industry; the 8.5th generation of TFT-LCD production line won a national award for benchmarking
enterprises of smart manufacturing; the Generation 8.5 TFT-LCD production line in Chongqing became the first semiconductor display
panel manufacturer in the Chinese mainland to join SBTi.
IV Core Business Analysis
1. Overview
1. The Display Devices business
The Company continued to strengthen its leading position in the semiconductor display sector, achieving operating revenue of
approximately RMB157,949 million in this business segment during the Reporting Period. The mainstream applications of LCDs
continued to rank first globally, and the overall sales of innovative applications have increased by over 40% year-on-year. Specifically,
the Company has the world's largest market share in the fields of tilted displays and vehicles. For large-size LCDs, the Company has
adopted the ADS Pro technology to create top-notch image quality comparable to that of OLEDs and has won the certification of the
highest-end flagship product technology for the industry's top customers for the first time. The shipment volume of flexible OLEDs
grew against the trend and achieved breakthroughs in the mass production of displays for vehicles and foldable laptops, and the
proportion of high-end products continued to rise.
2. The IoT Innovation business
BOE has made breakthroughs in its business layout and made headway in market expansion, achieving operating revenue of
approximately RMB27,245 million in this business segment during the Reporting Period. In terms of the smart terminal business, the
sales of TV terminals grew by over 40%. TPC terminal undertook high-end flagship product projects for key customers through an
innovative ODM model. Autonomous design has been achieved for low-power EPD terminals. IoT terminals continued to explore
niche markets. The cumulative shipment volume of the first ODM projector ranked first in the Tmall "11.11" LCD projector sales
ranking at the first day. As for 3D terminals, the Company launched the sales of the world's first consumer-grade 11-inch 2K TN
lenticular naked-eye 3D product and 27-inch LCD light valve product. Regarding the system solutions business, the "BOE IPC 2022
Smart Culture and Tourism Park Industry Summit" was held in Taoxichuan, further expanding the Company's influence in the industry.
Smart finance continued to boost the smart transformation of bank outlets. Concerning visual art, the light and shadow installation
independently developed and designed by the Company made a splash at the world-renowned ice and snow event, as the Company
continued to create a typical case of the integration between technology and art. Furthermore, the "1,000 Screens in 100 Cities" project
has been launched in over ten locations in Beijing, and the business model has been successfully replicated in many places across the
country.
3. The Sensor business
BOE has made breakthroughs in market expansion, customer introduction, and new product R&D, achieving operating revenue of
approximately RMB307 million in this business segment during the Reporting Period, up approximately 41.80% year-on-year. In
medical and biological fields, the sales among top customers in Europe and the United States increased. In terms of smart window
17
BOE Technology Group Co., Ltd. Annual Report 2022
vehicle applications, the shipment volume of dimming windows rapidly grew, which highlighted new scenarios for dimming displays,
and self-developed transparent display OLED products were shipped in bulk. Regarding architecture, the Beijing Sub-centre Library,
the National Communication Centre for Science and Technology, and other landmark buildings were successfully launched. Moreover,
the independent brand production line in Suzhou was smoothly commissioned.
4. The MLED business
BOE has made breakthroughs in multiple areas of products, technology, and markets, achieving operating revenue of approximately
RMB847 million in this business segment during the Reporting Period, up 84.79% year-on-year. Full series products of direct displays
COG P0.9, COB P0.9~1.5 achieved mass production for several brand customers, and LTPS technology achieved box lighting and
was sampled and submitted. The backlight vehicle display project was successfully imported into the 4.82-inch Mini project of domestic
new energy customers, the 2.48-inch and 5.46-inch VR projects were smoothly put into mass production and delivered, and The 86
inch COG AM Mini LED backlight unit won the SID DIA Award - 2022 Display Component of the Year. For the upstream layout, the
Company efficiently integrated core ecological resources and effectively consolidated its industry-leading advantages.
5. The Smart Medical Engineering business
BOE continued to improve the digital hospital and health management professional capabilities, and achieved operating revenue of
approximately RMB2,203 million in this business segment during the Reporting Period, up approximately 19.31% year on year. In
terms of smart medical engineering, the total outpatient volume of the digital hospital has increased by over 80% year-on-year and the
total discharge volume has increased by over 100% year-on-year. The Company has cooperated with medical schools/research institutes
such as Chengdu Medical College and the Institute of Medical Engineering of the Chinese Academy of Sciences. The regenerative
medicine heart valves have been approved for clinical trials by the State Drug Administration, and the Company was certified as a
"specialised, sophisticated, distinctive, and innovative" small and medium-sized enterprise in Beijing.
6. The "N" business
Beijing Zhongxiangying Technology Co., Ltd. continued to improve the integration of software and hardware and the first traditional
closed beta test and advanced closed beta test customers. The Chengdu Jingdian vehicle display base has achieved mass production
and will link with the upstream and downstream enterprises to form strong advantages of large-scale and intensive production. Smart
energy was launched in the green, smart, and low-carbon demonstration park project of the 13th Research Institute of China Electronics
Technology Group Corporation.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2022 2021
Item As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 178,413,731,179.00 100% 221,035,718,012.00 100% -19.28%
By operating division
Display Devices
157,949,486,684.00 88.53% 203,938,462,632.00 92.26% -22.55%
business
IoT Innovation business 27,245,456,382.00 15.27% 28,379,332,761.00 12.84% -4.00%
Sensor business 306,552,648.00 0.17% 216,187,403.00 0.10% 41.80%
MLED business 846,820,654.00 0.47% 458,249,184.00 0.21% 84.79%
Smart Medical
2,203,142,669.00 1.23% 1,846,551,592.00 0.84% 19.31%
Engineering business
Others and offset -10,137,727,858.00 -5.67% -13,803,065,560.00 -6.25% -26.55%
By product category
18
BOE Technology Group Co., Ltd. Annual Report 2022
Display Devices
157,949,486,684.00 88.53% 203,938,462,632.00 92.26% -22.55%
business
IoT Innovation business 27,245,456,382.00 15.27% 28,379,332,761.00 12.84% -4.00%
Sensor business 306,552,648.00 0.17% 216,187,403.00 0.10% 41.80%
MLED business 846,820,654.00 0.47% 458,249,184.00 0.21% 84.79%
Smart Medical
2,203,142,669.00 1.23% 1,846,551,592.00 0.84% 19.31%
Engineering business
Others and offset -10,137,727,858.00 -5.67% -13,803,065,560.00 -6.25% -26.55%
By operating segment
Mainland China 74,124,463,690.00 41.54% 95,015,382,254.00 42.99% -21.99%
Other regions in Asia 63,351,896,814.00 35.51% 96,677,882,907.00 43.74% -34.47%
Europe 5,745,261,109.00 3.22% 5,478,685,804.00 2.48% 4.87%
America 35,121,526,346.00 19.69% 23,770,495,392.00 10.75% 47.75%
Other regions 70,583,220.00 0.04% 93,271,655.00 0.04% -24.33%
By marketing model
Direct sales 178,413,731,179.00 100.00% 221,035,718,012.00 100.00% -19.28%
(2) Operating Division, Product Category, Operating Segment or Marketing Model Contributing over 10%
of Operating Revenue or Operating Profit
Applicable □ Not applicable
Unit: RMB
Gross YoY change in YoY change in
YoY change in cost
Item Operating revenue Cost of sales profit operating gross profit
of sales (%)
margin revenue (%) margin (%)
By operating division
Display Devices
157,949,486,684.00 145,362,979,605.00 7.97% -22.55% -3.20% -18.40%
business
IoT Innovation
27,245,456,382.00 24,666,540,176.00 9.47% -4.00% -2.00% -1.84%
business
By product category
Display Devices
157,949,486,684.00 145,362,979,605.00 7.97% -22.55% -3.20% -18.40%
business
IoT Innovation
27,245,456,382.00 24,666,540,176.00 9.47% -4.00% -2.00% -1.84%
business
By operating segment
Mainland China 74,124,463,690.00 64,665,209,361.00 12.76% -21.99% -3.47% -16.74%
Other regions in
63,351,896,814.00 55,885,057,929.00 11.79% -34.47% -18.35% -17.41%
Asia
America 35,121,526,346.00 31,887,489,254.00 9.21% 47.75% 84.73% -18.17%
By marketing model
Direct sales 178,413,731,179.00 157,530,566,152.00 11.70% -19.28% 0.15% -17.14%
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
Yes □ No
Operating division Item Unit 2022 2021 Change (%)
Sales volume K㎡ 76,039.00 75,969.00 0.09%
TFT-LCD Output K㎡ 75,620.00 79,091.00 -4.39%
Inventory K㎡ 4,983.00 6,000.00 -16.95%
AMOLED Sales volume K㎡ 1,125.00 836.00 34.61%
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BOE Technology Group Co., Ltd. Annual Report 2022
Output K㎡ 1,157.00 855.00 35.44%
Inventory K㎡ 108.00 62.00 74.84%
Reason for any over 30% YoY movements in the data above
Applicable □ Not applicable
The sales volume, output and inventory of AMOLED increased by over 30% in 2022 as compared to last year primarily due to the
transfer of new production line to fixed assets, which provided additional production capacity.
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□ Applicable Not applicable
(5) Breakdown of Cost of Sales
By operating division and product category
Unit: RMB
2022 2021
By operating As % of As % of
Item total cost total cost Change (%)
division Cost of sales Cost of sales
of sales of sales
(%) (%)
Display Devices Materials, labor costs,
145,362,979,605.00 92.28% 150,165,560,834.00 95.47% -3.20%
business depreciation, etc.
IoT Innovation Materials, labor costs,
24,666,540,176.00 15.66% 25,169,654,631.00 16.00% -2.00%
business depreciation, etc.
Materials, labor costs,
Sensor business 241,869,035.00 0.15% 166,800,549.00 0.11% 45.00%
depreciation, etc.
Materials, labor costs,
MLED business 864,618,690.00 0.55% 444,702,497.00 0.28% 94.43%
depreciation, etc.
Smart Medical
Materials, labor costs,
Engineering 1,809,802,648.00 1.15% 1,370,997,955.00 0.87% 32.01%
depreciation, etc.
business
Materials, labor costs,
Others and offset -15,415,244,002.00 -9.79% -20,018,890,685.00 -12.73% -23.00%
depreciation, etc.
Unit: RMB
2022 2021
As % of As % of
By product category Item total cost total cost Change (%)
Cost of sales Cost of sales
of sales of sales
(%) (%)
Display Devices Materials, labor costs,
145,362,979,605.00 92.28% 150,165,560,834.00 95.47% -3.20%
business depreciation, etc.
IoT Innovation Materials, labor costs,
24,666,540,176.00 15.66% 25,169,654,631.00 16.00% -2.00%
business depreciation, etc.
Materials, labor costs,
Sensor business 241,869,035.00 0.15% 166,800,549.00 0.11% 45.00%
depreciation, etc.
Materials, labor costs,
MLED business 864,618,690.00 0.55% 444,702,497.00 0.28% 94.43%
depreciation, etc.
Smart Medical
Materials, labor costs,
Engineering 1,809,802,648.00 1.15% 1,370,997,955.00 0.87% 32.01%
depreciation, etc.
business
Materials, labor costs,
Others and offset -15,415,244,002.00 -9.79% -20,018,890,685.00 -12.73% -23.00%
depreciation, etc.
Note:
20
BOE Technology Group Co., Ltd. Annual Report 2022
The major cost of sales items such as materials and depreciation are considered as business secrets. In order to avoid the leakage of
these secrets, which could result in damage to the interests of the Company and its investors, cost of sales is only presented with respect
to the industry segment to which the Company belongs in the table above.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
Yes □ No
The changes in the scope of consolidated financial statements for the Reporting Period had no significant impact on segment data.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 72,684,539,035.00
Total sales to top five customers as % of total sales of the
40.73%
Reporting Period (%)
Total sales to related parties among top five customers as % of
0.00%
total sales of the Reporting Period (%)
Information about top five customers:
Sales revenue contributed for As % of total sales revenue
No. Customer
the Reporting Period (RMB) (%)
1 Customer A 28,511,004,302.00 15.98%
2 Customer B 11,260,786,611.00 6.31%
3 Customer C 11,052,550,583.00 6.19%
4 Customer D 11,045,660,610.00 6.19%
5 Customer E 10,814,536,929.00 6.06%
Total -- 72,684,539,035.00 40.73%
Other information about major customers:
□ Applicable Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 24,841,912,420.00
Total purchases from top five suppliers as % of total purchases
20.16%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
0.00%
as % of total purchases of the Reporting Period (%)
Information about top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Supplier A 7,160,793,040.00 5.81%
2 Supplier B 5,514,870,912.00 4.47%
3 Supplier C 4,646,600,343.00 3.77%
4 Supplier D 3,852,546,689.00 3.13%
5 Supplier E 3,667,101,436.00 2.98%
Total -- 24,841,912,420.00 20.16%
Other information about major suppliers:
□ Applicable Not applicable
21
BOE Technology Group Co., Ltd. Annual Report 2022
3. Expense
Unit: RMB
Item 2022 2021 Change (%) Reason for any significant change
Selling
4,233,290,297.00 5,484,589,978.00 -22.81% Decreased sales
expense
Administr
ative 6,247,637,006.00 6,693,373,589.00 -6.66% N/A
expense
Finance
2,445,130,575.00 3,682,379,202.00 -33.60% Decreased interest expense
costs
R&D
11,100,768,677.00 10,616,426,327.00 4.56% N/A
expense
4. R&D Investments
Applicable □ Not applicable
Names of
Project Expected impact on the future
main R&D Project objectives Objectives to be achieved
progress development of the Company
projects
1. To increase the static contrast
To produce LCDs with an It is expected to achieve a
ratio of the product to 2500:1 and
image quality comparable to platform-based leap in
reduce the reflectivity to 1.2%.
that of OLEDs and a cost technological capability and
Taishan Under mass 2. To improve colour shift and
lower than that of OLEDs and become a mainstream
Project production. increase the colour gamut to DCI
enhance BOE's technology for display products
P3 99.5%.
competitiveness in high-end and a strategic leader for
3. To achieve mass production of
products. product upgrading.
high-end flagship models.
The self-developed projector
To achieve high specification To achieve leading specifications light engine can play an
and low cost through of optical engines in the off-axis important role in leading and
Projector transmission rate ratio, brightness, uniformity, promoting the technical
light enhancement and light path Under mass colour gamut, throw ratio and parameters of panels, light
engine design and optimisation based production. sharpness and mass production of engines and the whole device,
system on the technical advantage of optical engine systems for which is conducive to
the projector's core display vertical/horizontal hermetic enhancing BOE' brand
device. projectors. influence and capturing a
sizable projector market share.
The relevant technical
achievements has won the first
1. To achieve mass production of prize of Beijing Science and
To achieve a high refresh rate
several high-end gaming flagship Technology Progress Award.
with advanced HSR and EPQ
products while achieving the Relying on BOE's advanced
High technology in combination
Under mass technology reserve of a high high refresh rate technology, it
refresh with fast response technology
production. refresh rate of 500+Hz for will achieve the ultimate
rate to improve the
medium- and large-size products. smoothness of electronic sports
competitiveness of electronic
2. To achieve extremely fast and gaming, which can capture
sports products.
response within 1ms. the high-end electronic sports
market and increase
profitability.
Oxide has the advantages of 1. To improve mobility and The enhancement of Oxide
high mobility and low leakage achieve mass production of high- process layout and capability
current. The objective is to mobility target materials. can significantly improve
Oxide achieve overall improvement In progress. 2. To achieve the extreme low product performance in high
in product performance such frequency specification of 10Hz frequency, low frequency,
as a high refresh rate and a and reduce the power narrow bezel and high
low frequency by building consumption of products. transparency. Compared with
22
BOE Technology Group Co., Ltd. Annual Report 2022
advanced Oxide process the LTPS process, it has the
capability. competitive advantage of low
costs, which will effectively
enhance the competitiveness of
BOE products.
To integrate more functions into
To realise switchable peep-
To realise four-sided peep-proof display products to meet
proof technology for multiple
switchable and partial peep-proof customer needs and apply the
products to meet users' needs
Peep-proof In progress. technologies and imported them technology to the laptops,
for privacy protection and
laptops, monitors and vehicle vehicle displays, monitors and
enhance product
products. other areas to capture a greater
competitiveness.
market share.
It is expected to break through
To realise the fast start-up of
To realise controllable the limitations of low-
display products and
temperature rise, establish the temperature display and achieve
improved LCD response
temperature rise uniformity the integration of more
In-box speed in cold temperatures in Under mass
simulation model and achieve functions into the screen, so as
heating extremely cold regions production.
mass production of electronic rear to enhance the added value of
through the embedded heating
view mirrors and other vehicle the product, attract customers'
module within Cell AA to
products. attention and seize the low-
improve safety performance.
temperature scenario market.
The Q9 light emitting device The technology has been
screen consumes 15% less power imported into several products
Q9 next
than the previous generation Q8, to enhance the basic
generation
To develop devices of high has a 20% increase in peak specifications for flexible
device Under mass
efficiency and long life brightness, an increase in DCI-P3 screens, which meets customers'
developme production.
materials. colour gamut from 110% to 115% requirements for product
nt
and a 10% increase in lifetime specification and captures the
technology
and limits harmful blue light to market volume of mid- to high-
below 6.0%. end models.
1. It is expected to highlight the
1. To realise the C-shaped convex
characteristics of flexible
fixed curvature form.
To meet the demand for OLEDs, expand the application
2. To achieve the development of
Vehicle C- cooler and more scenario of vehicle displays and
Customer C-shaped convex cover glass.
shaped technologically advanced strive for a larger vehicle
products 3. To achieve the development of
convex interior styling for luxury display market;
have been C-shaped convex module stacking
centre flagship models and highlight 2. Flexible vehicle curved forms
launched. structure.
display the multiform display feature can expand the customer base
4. To achieve the development of
of flexible OLEDs. for high-end vehicle displays
the C-shaped convex module
and enhance the added value of
lamination process.
products.
Developm
ent of low-
The product has been launched
temperatur
1. To achieve a 1Hz low refresh on the Watch3 series. It
e To enhance the battery life of The product
rate display and save power promotes the equipment of
polycrystal the whole device and optimise client has
consumption. LTPO technology in wearable
line oxide the display through low- been
2. The flickering will be less than flagship products and enhances
(LTPO) frequency technology. launched.
-50dB, invisible to the naked eye. the technological
autonomo
competitiveness of the product.
us pixel
products
EES light This technology has been
efficiency To improve the efficiency of imported into Honor's customer
Under mass To improve light output efficiency
enhancem light output on the front side product Magic Vs to enhance
production. by 8%.
ent of OLED panels. the competitiveness of the
technology product.
Developm To develop a D-IC with ultra- Product To meet the latest functional It validates single IC design
23
BOE Technology Group Co., Ltd. Annual Report 2022
ent of high PPI to enable a single IC import in requirements of customers. To capabilities and module
single IC to drive a large foldable progress. complete product development production processes. It is
drive phone with a high refresh and validation and successfully expected to reserve good IC
technology rate. import the technology into resources for the subsequent
for ultra- At the same time, it is product development. expanding foldable screen
high pixels compatible with the market and improve the speed
per inch requirements of high-end of market response.
(PPI) tablet PCs and saves IC
foldable development and procurement
phones costs.
Developm
ent of the This technology has been
To further enhance the
flexible imported into Honor's customer
bending competitiveness of To achieve an in-fold bend
foldable product Magic V & Vs to
foldable products and reduce Under mass droplet radius of R1.5mm by
product enhance the competitiveness of
the gap between the screens production. adjusting the stacking structure to
with an products and BOE's market
of the foldable form of the match the bending stress.
R1.5mm share in the foldable product
whole device.
in-fold market.
droplet
It is expected to realise BOE's
technological breakthrough in
To achieve mass production of the field of Mini/Micro
To make breakthroughs in products, meet the requirements displays, which can penetrate
Developm
Mini/Micro LED display of ultra-high image quality, low into the field of consumer
ent of Under mass
technology and enhance power consumption and healthy electronics, such as vehicle
LTPS P0.9 production.
product specifications in the eye care and lay the foundation displays, TVs and other display
products
commercial display sector. for small-spacing and Micro LED products and will cover all Pitch
displays. products. To accelerate BOE's
all-round layout of Mini/Micro
display products.
P1.5
products:
Under mass
1. To complete BOE's layout To open up the COB small-
production.
of all Pitch products in the 1. To improve the COB product spacing product line, improve
Developm P1.25
COB product line. line and realise low-cost solutions BOE's product lines, lay a solid
ent of products:
2. To achieve the for large sizes. foundation for the Company's
COB Under mass
technological solution to the 2. To improve the optical next generation products and
products production.
best price-performance ratio specifications. help seize the COB market
P0.9
for COB products. share.
products:
Under mass
production.
MNT COG
1. To create Gaming MNT The MNT Mini LED gaming
products: It provides customers with ultra-
products with ultra-high products are launched to match
Under mass high specification products with
Medium- brightness, ultra-high the high-end needs of the
production. 1K/2K/4K-grade partitioning, a
and large- partitioning and thinness. electronic sports market. They
55" COG peak brightness up to 2000nits,
size COG 2. Mini LED glass-based are expected to gain recognition
Mini LED ultra-high reliability and a
Backlight tilted display products make from international top
tilted million-grade contrast ratio,
products breakthroughs in the customers and enhance BOE's
display entering the high-end market of
application of high-end influence in the field of glass-
products: In MNT Gaming and tilted displays.
models. based Mini LED displays.
progress.
1. To achieve product 16" Mini 1. NB products obtain the VESA It marks a breakthrough in
Small- and
specifications of ultra-high LED HDR1000 certification and small- and medium-size
medium-
partitioning, ultra-high products: achieve product specifications of technology and offers the
size
brightness and an ultra-high Under mass ultra-high partitioning, ultra-high advantages of energy saving,
backlight
contrast ratio for high-end production. brightness and an ultra-high thinness, wide colour gamut,
products
gaming laptops to meet the 2.48" contrast ratio for gaming laptops high contrast ratio and fine
24
BOE Technology Group Co., Ltd. Annual Report 2022
demand of top customers and products: to bring ultimate experience to dynamic partitioning while
bring ultimate experience to Under mass gaming laptop users. retaining the advantages of
gaming laptop users. production. 2. To realise the ultra-high LCD products.
2. To create VR products with contrast ratio and low latency of
high brightness and a high LCD VR products.
contrast ratio through high
partitioning design.
It will be the first Mini LED TV
To achieve the development and
To complete the development terminal product, complete the
Mini The product mass production of 100-grade
of Mini LED TV terminal technology development
LED TV client has partitioning LD panels and
products to enrich the high- reserve of multi-partition LD
developme been backlight technology with high
end TV terminal product line panels and enhance the market
nt project launched. brightness, ultra thinness and a
category. competitiveness of TV terminal
wide colour gamut.
products.
The design of dual Scalar ICs
will be successfully completed
with a 4K 144Hz high
4K144Hz To complete the dual Scaler 4K 144Hz, dual Scaler IC design;
bandwidth output, which will
dual Scaler design with DSC data The product to complete the development of
make the Company a market
IC display compression technology to client has local backlight adjustment design,
technology leader, add to the
technology solve the problem of been flicker-free design, adaptive
competitiveness of the
developme insufficient high frequency launched. synchronisation and other
Company's display technology
nt width at 4K 144Hz. functions.
and improve customer
experience while boosting
product sales.
1. To create an ultra-clear, high-
refresh-rate eye-protection full
Developm The project provides customers
To increase the resolution, screen.
ent of with mature product design and
refresh rate and number of 2. To realise premium sound with
high-end process solutions, makes new
power amplifier drives, The product eight power amplifier drives and
ultra-clear innovations in terms of
improve the battery life of the client has eight speakers to produce
thin and schedule, technology, processes
whole device, achieve ultra been surrounding sound.
light and economic efficiency, and
thinness and create premium launched. 3. A 10,050mAh battery for long
business provides valuable guidelines for
sound with surrounding all-weather life.
tablet PC subsequent project
sound. 4. Extreme lightness and thinness
products development.
of 6.49mm and a brand new
tactile quality.
1. It is BOE's first whole laptop
Developm self-developed productisation
To achieve mass production of
ent of an project, with a new Intel platform
self-developed laptops as
ultra-quiet, To complete BOE's first with a 6W CPU and a metal
planned by the development
long- independent development of a Under mass battery cover.
project, generate revenue, and
battery- whole laptop and achieve production. 2. A laptop with a 14" 16:10
contribute to the steady growth
life, thin mass production. narrow bezel, thinness and
of the laptop terminal product
and light lightness, ultra price-performance
line.
laptop ratio and a thickness of only
17.5mm.
By developing independent
To develop whiteboard
platform products with By building the mainstream size
education platform products
Developm compatibility, the Company will platform, it will promote the
with multi-compatible
ent of launch a full set of whole device mainstream products and
structure (dual system,
meeting/ed solutions including independent technology realisation of the
Infrared/capacitive touch R&D
ucation mould platforms, self-developed whole device business in the
compatible) to lay the product completed.
device boards, and compatible touch field, establish the Company's
foundation for the meeting
platform solutions to complete the good image as a technological
device and education device
products 65/75/86-inch product layout for brand and enhance product
market and support market
the mainstream market and seize competitiveness and revenue.
expansion.
the market.
25
BOE Technology Group Co., Ltd. Annual Report 2022
The 1.54" innovative product is a
electronic paper student card with
To expand the innovative
Smart low power consumption, into
business market, lay out the
student Innovative products for the which the home-school smart
Under mass education market and provide
card education market terminal system is integrated. The
production. new products for innovative
developme segmentation. product adopts eye care
product business breakthroughs
nt technology, and its battery life is
in 2023.
significantly longer than that of
the LCD display.
Purely self-developed
Naked-eye 3D technology is
To realise the completely technology can effectively
Developm more and more widely used.
independent research and enhances BOE's brand value. It
ent project In response to the industry
development of 3D core supports multi-person
of multi- challenges such as dizziness
technology, and solve the industry simultaneous free moving
person caused by the display of
challenges such as a limited viewing with a large free
simultaneo current industry products and
R&D viewing distance, support movement range. Since users
us free a fixed viewing distance, the
completed. multiple-person free moving can experience viewing without
moving Company aims to achieve
viewing, and create naked-eye 3D dizziness, the technology can be
viewing of purely independent research
products with high definition, widely used in media
naked-eye and development of 3D
high image quality, high promotion, exhibition display,
3D technology, solve the
immersion and excellent free business meetings, audio and
technology problems and improve the 3D
viewing experience. video entertainment and other
effect and user experience.
scenarios.
To enrich basic functional
Focusing on the digital and innovation and meet the needs of
smart transformation of bank customers in the segmentation. To This platform provides bank
outlets, the Company optimise the three-tier outlets with comprehensive
provides digital management function of banks digital service capabilities,
2.0 transformation solutions and covering the head office, through intelligent systems and
developme services for banking branches, and sub-branches, and products integration soft and
nt of the customers with the SaaS enhance the following six digital hard strengths. It is an
integrated version of the integrated capabilities of banks during the implementation of the strategy
Launched.
manageme management platform for whole procedure of customer of "Screen-Connected IoT" in
nt platform smart outlets as the core, in service: Deepening customers' the financial industry,
for smart combination with artificial impression, enhancing customer designated to enhance BOE's
outlets intelligence, big data, cloud experiences, utilising big data, competitiveness in digital
computing and other conducting precision marketing, solutions in the financial
technologies and with multi- connecting online and offline industry and deepen brand
modal interactive terminals as services, and strengthening influences.
the carrier. comprehensive operations and
management.
To provide solutions covering
multiple scenarios such as
Guided by the concept of
cultural tourism parks, office
"smart management", the
parks and campuses, and build a
project will penetrate smart Incorporating BOE's practical
park operation service platform
services into all aspects of the experience in the park operation
Park based on "big data + AI"
park's operation services, use industry, the project will create
operation capabilities, achieve smart
big data to guide the park's a sustainable, iterative and
service services such as investment
operation services for In progress. efficient operation management
platform attraction operation, scenic spot
enterprises and visitors, help system to enhance the value
developme operation, parking lot operation,
the enterprises in the park to chain of BOE's services in the
nt office incubation, campus
precisely expand their park industry and create a new
services and marketing
customer bases and improve business growth engine.
promotion, realise the
the park's monetisation
convergence and sharing of park
capacity.
resources and broaden the width
of park services.
Developm To build the Company's own Launched. 24/7 continuous operation, The overseas digital signage
26
BOE Technology Group Co., Ltd. Annual Report 2022
ent of brand terminal products in maximum brightness of 500nit, project product is BOE's first
BOE multiple sizes which meet the 50,000 hours of backlight life, own-brand whole device
overseas core display performance certified by overseas sales product for overseas market,
digital requirements of multiple countries and regions. helping BOE to develop
signage scenarios and adapt to the overseas business.
open software ecosystem
series to achieve high price-
performance ratio and meet
the multi-scenario application
needs of overseas customers.
To accomplish a realistic and
smooth simulation of a wide
range of common pen shapes and It realises BOE's technological
significantly reduce writing innovation in the field of touch
To develop smooth, smart and
latency on the touch screen. To screen writing and expands the
Developm aesthetically pleasing
enable accurate and fast use scenarios of touch terminal
ent of handwriting interaction
Under mass recognition of handwritten products. By deepening
natural technology for touch screen
production. content such as Chinese, English, integration with terminal
writing products to enhance the
formulas and graphics. To hardware, it will continuously
technology market application potential
significantly improve the improve the use experience and
of screen products.
handwriting interaction capability form the core competitiveness
of ink screen tablet PCs, meeting of the products.
all-in-one devices and other
products.
To meet the demand for
interconnection between
To realise multi-screen mutual
smart terminal devices such
casting, multi-person annotation,
as all-in-one devices, TVs, To realise scenarios to launch
multi-screen control, AI screen
Developm business displays and the "Screen-Connected IoT"
casting, etc. in multi-screen
ent of personal devices, and build strategy, empower BOE's multi-
Under mass scenarios. To launch all-in-one
BOE multi-screen linkage, multi- category smart terminal
production. devices and commercial display
Share screen control, file sharing products, achieve multi-screen
products to create multi-screen
technology and other scenario application interaction and enhance the
linkage for meeting scenarios,
scenarios with BOE display competitiveness of products.
education scenarios and home
devices as the core to enhance
scenarios.
the competitiveness of BOE
terminal products.
The Company has already
mass-produced two models and
is currently developing five
Developm To achieve large-size FPXD
products. The Company will
ent of To achieve integrated extra imaging by tilting exposure
Under mass become a manufacturer with
large-size large-size FPXD imaging without the need for tilting
production. large-size tilting capability in
FPXD through Mask tilting. multiple FPXD backplanes
the market, preparing the
technology together.
Company's products for
occupying the large-size display
market.
Developm
To boosting the Company's
ent of
To achieve the productisation To productise flexible dimming revenue, enhance technological
flexible
of flexible passenger vehicle In progress. films and apply them to dimming barriers, increase technological
smart
sunroofs. sunroofs for passenger vehicles. competitiveness and broaden
window
product lines.
technology
Developm To develop a thin, light and To improve the visibility of the
ent of portable large-area glass- To complete product development Company's fingerprint and
security based TFT optical fingerprint In progress. and certification and achieve palmprint products and provide
biometric capture device with glare mass production and delivery. a benchmark for the launch of
sensor resistance. subsequent large-area
27
BOE Technology Group Co., Ltd. Annual Report 2022
technology fingerprint and palmprint
products.
The new generation of window
To completed the research and
dimming system products are a
development and
technological innovation and
To develop a set of dimming commercialisation of new
upgrade for the transparent
system products applied to window dimming system
Smart function of traditional building
architecture, traffic and other Under products. To replace the purely
window and vehicle glass windows. The
scenarios and create future developmen transparent function of traditional
dimming products have business value
technology-based glass t. glass windows, increase the
solutions such as stock market and new
window products with comfort of users and
market applications with a huge
ambient light adaption. comprehensively upgrade the
market size and can enhance the
window technology for buildings
Company's revenue and create
and traffic.
potential market opportunities.
To complete the production of
information interaction products
To develop a set of systematic
integrating transparent display,
products combining To complete the leading
Integrated Developme dimming and touch control,
transparent OLED displays technology product that integrates
dimming nt help the Company's product
with dimming glass, which transparent display and dimming
solutions completed, layout of light self-adaptive
can be applied to new and realise technology transparent
for in information interaction window
technology interactive information interactive window
transparent commercial products in future self-driving
windows of transparent products which can be applied in
displays trials. cars, high-tech information
display in various various environments.
office and other fields and
environments.
expand the "Screen-Connected
IoT" industry market.
Particulars about R&D personnel:
Item 2022 2021 Change (%)
Number of R&D personnel 21,075 19,708 6.94%
R&D personnel as % of total employees 23.86% 24.80% -0.94%
Educational background of R&D personnel
Bachelor’s degree 12,835 11,780 8.96%
Master’s degree 6,297 6,035 4.34%
Age structure of R&D personnel
Below 30 9,513 9,335 1.91%
30~40 10,046 9,530 5.41%
Particulars about R&D investments:
Item 2022 2021 Change (%)
R&D investments (RMB) 12,601,880,481.00 12,442,970,747.00 1.28%
R&D investments as % of operating revenue 7.06% 5.63% 1.43%
Capitalized R&D investments (RMB) 2,036,264,271.00 2,067,727,404.00 -1.52%
Capitalized R&D investments as % of total R&D
16.16% 16.62% -0.46%
investments
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable Not applicable
28
BOE Technology Group Co., Ltd. Annual Report 2022
5. Cash Flows
Unit: RMB
Item 2022 2021 Change (%)
Subtotal of cash generated from operating activities 217,984,263,980.00 240,938,386,536.00 -9.53%
Subtotal of cash used in operating activities 174,962,296,675.00 178,239,697,980.00 -1.84%
Net cash generated from/used in operating
43,021,967,305.00 62,698,688,556.00 -31.38%
activities
Subtotal of cash generated from investing activities 85,775,713,322.00 36,759,481,145.00 133.34%
Subtotal of cash used in investing activities 121,748,512,196.00 77,900,242,163.00 56.29%
Net cash generated from/used in investing
-35,972,798,874.00 -41,140,761,018.00 12.56%
activities
Subtotal of cash generated from financing activities 54,885,926,217.00 63,655,025,447.00 -13.78%
Subtotal of cash used in financing activities 76,059,178,079.00 75,836,895,000.00 0.29%
Net cash generated from/used in financing
-21,173,251,862.00 -12,181,869,553.00 -73.81%
activities
Net increase in cash and cash equivalents -12,241,448,319.00 8,558,749,712.00 -243.03%
Explanation of why any of the data above varies significantly:
Applicable □ Not applicable
Net cash generated from operating activities decreased 31.38% year on year, primarily driven by the decreased sales.
Net cash generated from financing activities decreased 73.81% year on year, primarily driven by that there was no private placement
of A-stock shares during the Reporting Period.
Net increase in cash and cash equivalents decreased 243.03% year on year, primarily driven by the decreased sales and that there was
no private placement of A-stock shares during the Reporting Period.
Reason for any big difference between the net cash generated from/used in operating activities and the net profit for this Reporting
Period
□ Applicable Not applicable
V Analysis of Non-Core Businesses
Applicable □ Not applicable
Unit: RMB
As % of
Item Amount Source/Reason Recurrent or not
total profit
Due to cease of control of SES-imagotag,
Return on investment 6,094,267,884.00 11898.47% Gain from remeasurement of fair value of Not
remaining shares in the reporting period.
Gain/loss on changes in
159,344,584.00 311.10% N/A Not
fair value
Inventory valuation allowances established
Asset impairments -7,304,471,630.00 -14261.27% Not
based on market conditions
Non-operating income 163,242,857.00 318.72% N/A Not
Non-operating expense 87,249,543.00 170.35% N/A Not
29
BOE Technology Group Co., Ltd. Annual Report 2022
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2022 1 January 2022 Change in Reason for any
Item As a % of total As a % of total percentage significant
Amount Amount (%) change
assets assets
Monetary
68,800,307,369.00 16.36% 80,986,835,088.00 17.99% -1.63% N/A
assets
Accounts
28,203,647,569.00 6.71% 35,503,414,820.00 7.89% -1.18% N/A
receivable
Contract assets 71,636,461.00 0.02% 75,698,324.00 0.02% 0.00% N/A
Inventories 22,787,814,225.00 5.42% 27,805,161,436.00 6.18% -0.76% N/A
Investment
1,122,025,138.00 0.27% 1,158,365,401.00 0.26% 0.01% N/A
property
Long-term
equity 12,421,878,851.00 2.95% 6,040,948,317.00 1.34% 1.61% N/A
investments
Fixed assets 205,987,050,430.00 48.98% 227,141,366,884.00 50.45% -1.47% N/A
Increased
Construction investments in
43,386,134,668.00 10.32% 32,099,711,879.00 7.13% 3.19%
in progress new
constructions
Right-of-use
687,120,946.00 0.16% 753,164,237.00 0.17% -0.01% N/A
assets
Short-term
2,373,938,871.00 0.56% 2,072,057,332.00 0.46% 0.10% N/A
borrowings
Contract -0.27%
2,411,717,792.00 0.57% 3,765,081,554.00 0.84% N/A
liabilities
Long-term
123,143,479,690.00 29.28% 116,078,666,587.00 25.78% 3.50% N/A
borrowings
Lease
538,586,010.00 0.13% 669,130,264.00 0.15% -0.02% N/A
liabilities
Indicate by tick mark whether overseas assets account for a larger proportion of total assets.
□ Applicable Not applicable
30
BOE Technology Group Co., Ltd. Annual Report 2022
2. Assets and Liabilities at Fair Value
Applicable □ Not applicable
Unit: RMB
Gain/loss on fair-
Cumulative fair- Impairment
value changes in Purchased in the Sold in the
Item Beginning amount value changes allowance for the Other changes Ending amount
the Reporting Reporting Period Reporting Period
charged to equity Reporting Period
Period
Financial assets
1. Held-for-
trading financial
assets (excluding 10,635,068,300.00 159,344,584.00 0.00 0.00 91,514,151,283.00 82,907,879,110.00 0.00 19,210,961,617.00
derivative
financial assets)
2.Derivative
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
financial assets
3. Investments in
other debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
obligations
4. Investments in
other equity 519,088,146.00 0.00 -255,623,541.00 0.00 4,470,719.00 10,091,839.00 0.00 483,060,306.00
instruments
Subtotal of
11,154,156,446.00 159,344,584.00 -255,623,541.00 0.00 91,518,622,002.00 82,917,970,949.00 0.00 19,694,021,923.00
financial assets
Investment
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
property
Productive living
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
assets
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of the above 11,154,156,446.00 159,344,584.00 -255,623,541.00 0.00 91,518,622,002.00 82,917,970,949.00 0.00 19,694,021,923.00
Financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
liabilities
Contents of other changes:
N/A
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes No
31
BOE Technology Group Co., Ltd. Annual Report 2022
3. Restricted Asset Rights as at the Period-End
Unit: RMB
Item Ending carrying value Reason for restriction
Mainly security deposits, and amounts put
Monetary assets 4,027,358,544.00
in pledge for the issuance of notes payable
Endorsed and transferred with right of
Notes receivable 28,239,380.00 recourse, and those put in pledge for the
issuance of notes payable
Inventories 0.00 N/A
Fixed assets 140,418,857,377.00 As collateral for guarantee
Intangible assets 1,461,125,786.00 As collateral for guarantee
Construction in progress 2,051,101,917.00 As collateral for guarantee
Investment property 39,718,001.00 As collateral for guarantee
Total 148,026,401,005.00 --
VII Investments Made
1. Total Investment Amount
Applicable □ Not applicable
Investments made in this Reporting Investments made in the prior year
Change (%)
Period (RMB) (RMB)
7,529,231,984.00 2,501,899,622.00 200.94%
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable Not applicable
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable Not applicable
32
BOE Technology Group Co., Ltd. Annual Report 2022
4. Financial Investments
(1) Securities Investments
Applicable □ Not applicable
Unit: RMB
Profit/loss
on fair Cumulative Sold in
Accountin Purchased Profit/loss
Code of Name of Initial Beginning value fair value this Ending Fundi
Variety of g in this in this Accounti
securitie securitie investment carrying changes in changes Reporti carrying ng
securities measurem Reporting Reporting ng title
s s cost value this charged to ng value source
ent model Period Period
Reporting equity Period
Period
Other
- equity
Self-
Domestic/over SH6006 Electron 90,160,428. Fair value 56,638,836. 53,614,432. instrume
0.00 36,545,996. 0.00 0.00 206,209.00 funde
seas stock 58 ic Zone 00 method 00 00 nt
00 d
investme
nt
Other
- equity
Bank of Self-
Domestic/over HK019 120,084,37 Fair value 91,875,688. 9,918,634. 91,600,150. instrume
Chongqi 0.00 28,484,225. 0.00 0.00 funde
seas stock 63 5.00 method 00 00 00 nt
ng 00 d
investme
nt
Other
New - equity
Self-
Domestic/over HK015 Century 140,848,85 Fair value 19,810,485. 9,098,008.0 instrume
0.00 131,750,84 0.00 0.00 0.00 funde
seas stock 18 Healthc 0.00 method 00 0 nt
2.00 d
are investme
nt
Held-
- - for- Self-
Domestic/over SZ0028 299,999,93 Fair value 299,999,93 256,525,78
CVTE 0.00 43,474,156 0.00 0.00 43,474,156 trading funde
seas stock 41 9.00 method 9.00 3.00
.00 .00 financial d
assets
Other securities investments held at
0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
the period-end
651,093,59 168,325,00 - - 299,999,93 - 410,838,37
Total -- 0.00 -- --
2.00 9.00 43,474,156 196,781,06 9.00 33,349,313 3.00
33
BOE Technology Group Co., Ltd. Annual Report 2022
.00 3.00 .00
(2) Investments in Derivative Financial Instruments
□ Applicable Not applicable
No such cases in the Reporting Period.
Note: The Company sold a number of shares in relation to the derivative investments in the Reporting Period, thereby ceasing control. With these investments excluded from the consolidated
financial statements, the Company’s derivative investment amount stood at nil at the end of the Reporting Period.
5. Use of Funds Raised
Applicable □ Not applicable
(1) Overall Usage of Funds Raised
Applicable □ Not applicable
Unit: RMB’0,000
Proportion of
Total funds Accumulative Amount of
Total funds accumulative The usage and
Total funds used in the Accumulative funds with Total unused funds raised
Year Way of raising with usage funds with destination of
raised Current fund used usage funds idle for over
changed usage unused funds
Period changed two years
changed
Continuously
used for the
Private placement construction
2021 2,033,260 117,277 1,867,094 0 0 0.00% 166,166 0
of stocks of equity
investment
project
Renewable
2022 200,000 200,000 200,000 0 0 0.00% 0 N/A 0
corporate bonds
Total -- 2,233,260 317,277 2,067,094 0 0 0.00% 166,166 -- 0
Explanation of overall usage of funds raised
The Company raised RMB2,000,000,000 from the above-mentioned offering of perpetual bonds during 2022, and the net proceeds exclusive of issuance costs were RMB1,988,880,000, which
would be used for capital increase to subsidiary and replenishing the working capital. The raised funds have been used up, conforming to the provisions of the prospectus.
The cumulative amount of raised funds through private placement of stocks was RMB20,332,599,995.83, and the net proceeds after deducting issuance costs were RMB19,869,507,400. In the
34
BOE Technology Group Co., Ltd. Annual Report 2022
Reporting Period, the raised funds were used according to project investment plans, conforming to the relevant promise.
(2) Commitment Projects of Fund Raised
Applicable □ Not applicable
Unit: RMB’0,000
Investment Date of Whether
Changed schedule Realized
Investment Accumulative reaching Whether occurred
Committed investment or not as the income in
Committed Investment amount amount in the investment amount intended reached significant
project and super raise (including period-end the
investment amount after adjustment (1) Reporting as of the period-end use of anticipated changes
fund arrangement partial Reporting
Period (2) (3)＝ the income in project
changes) Period
(2)/(1) project feasibility
Committed investment project
Repaying the loans from
Fuzhou Urban
No 300,000 300,000 0 300,000 100.00% N/A N/A No
Construction Investment
Group Co., Ltd.
Acquiring 24.06% of
equity interests in Wuhan
No 650,000 650,000 0 650,000 100.00% N/A N/A No
BOE Optoelectronics
Technology Co., Ltd.
Capital increase in
Chongqing BOE Display August
No 600,000 600,000 113,504 533,834 88.97% N/A N/A No
Technology Co., Ltd. and 2023
construction
Capital increase in Yunnan
Chuangshijie
January
Optoelectronics No 100,000 100,000 0 0 0.00% N/A N/A No
2024
Technology Co., Ltd. and
construction
Capital increase in
April
Chengdu BOE Hospital No 50,000 50,000 3,773 50,000 100.00% N/A N/A No
2021
Co., Ltd. and construction
Supplementing the
working capital by the
No 286,951 286,951 0 286,951 100.00% N/A N/A No
2021 private placement of
shares
22BOEY1-Capital
increase in Chengdu BOE
No 100,000 100,000 100,000 100,000 100.00% N/A N/A No
Optoelectronics
Technology Co., Ltd.
35
BOE Technology Group Co., Ltd. Annual Report 2022
22BOEY1-Capital
increase in Chongqing
No 90,000 90,000 90,000 90,000 100.00% N/A N/A No
BOE Display Technology
Co., Ltd.
22BOEY1- Supplementing
No 10,000 8,888 8,888 8,888 100.00% N/A N/A No
the working capital
Subtotal of committed
-- 2,186,951 2,185,839 316,165 2,019,673 -- -- -- --
investment project
Super raised funds arrangement
N/A
Total -- 2,186,951 2,185,839 316,165 2,019,673 -- -- N/A -- --
All raised funds for the committed investment project (22BOEY1) and the committed investment projects (repaying the loans from Fuzhou Urban Construction
Investment Group Co., Ltd. / acquiring 24.06% of equity interests in Wuhan BOE Optoelectronics Technology Co., Ltd. / supplementing the working capital by the
2021 private placement of shares) have been put to use and the expected benefits thereof are not applicable since the economic benefits are not directly generated.
Describe project by project
The committed investment project (capital increase in Chengdu BOE Hospital Co., Ltd. and construction) is in the early stage of opening and has not entered into the
any failure to meet the
operation and profitability period. The committed investment projects (capital increase in Chongqing BOE Display Technology Co., Ltd. and construction /capital
schedule or anticipated
increase in Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and construction) have not yet reached the scheduled useful state and the expected benefits
income, as well as the
thereof are not applicable.
reasons (including reasons
The committed investment project (capital increase in Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and construction) is implemented in three stages.
for inputting “N/A” for
In the first stage, the Company invests with its own funds. It has realized the production of goods in small batches in 2021 and stable delivery in 2022 which is
“Whether reached
currently in normal operation. Since the silicon-based OLED industry is in the early stage of rapid development and the technological innovation is emerging endlessly,
anticipated income”)
the Company successively launches the second and third stages considering the risks of changing technology and market demand so as to ensure the capacity matching
the growing market demand and profitability. As of the disclosure date of this Report, the raised funds for the 12-inch silicon-based OLED project has not yet been
put into use and will be invested based on market conditions subsequently.
Notes of condition of
significant changes
N/A
occurred in project
feasibility
Amount, usage and
schedule of super raise N/A
fund
Changes in
implementation address of N/A
investment project
Adjustment of
implementation mode of N/A
investment project
Advance investments in Applicable
projects financed with As at 31 December 2022, the funds raised through Phase I of renewable corporate bonds of 2022 were used to swap with advance project investments of RMB1.9
raised funds and swaps of billion, of which RMB1 billion was swapped with the advance investment in Chengdu BOE Optoelectronics Technology Co., Ltd. with equity funds, and the remaining
such advance investments RMB0.9 billion was swapped with the advance investment in Chongqing BOE Display Technology Co., Ltd. with equity funds.
with subsequent raised
36
BOE Technology Group Co., Ltd. Annual Report 2022
funds As at 31 December 2022, the Company had replaced the prior invested funds of the committed investment projects with the raised funds from the non-public offering
of shares for a total amount of RMB6,023.0660 million . Of these, RMB3 billion was to replace the Company's own funds invested in repaying the loan of Fuzhou
Urban Construction Investment Group. RMB250 million was to replace the own funds invested in BOE Health Investment Management Company Limited, and
RMB2,773.0660 million was to replace the own funds invested in Chongqing BOE Display Technology Co., Ltd.
Idle fund supplementing
the current capital N/A
temporarily
Applicable
Amount of surplus in As at 31 December 2022, the funds raised through the perpetual bonds have been used up, with a balance of RMB1.098 million in the raised funds account, which
project implementation was the interest income generated during the deposit period.
and the reasons As at 31 December 2022, the balance of the raised funds from the non-public offering of shares was RMB1,717.5872 million, representing the unused raised funds
and interest income generated during the deposit period.
There is a balance of RMB1.098 million in the account of the funds raised through the perpetual bonds, which will be used to pay the interest for the bonds; and there
Usage and destination of
is a balance of RMB1,717.5872 million in the account of the funds raised through the private placement, which will be invested step by step in the projects of Yunnan
unused funds
Chuangshijie Optoelectronics Technology Co., Ltd. and Chongqing BOE Display Technology Co., Ltd.
Problems incurred in fund
using and disclosure or N/A
other condition
(3) Re-purposed Raised Funds
□ Applicable Not applicable
No such cases in the Reporting Period.
VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
Applicable □ Not applicable
Transactio Equity Date of Transactio Net profit Effect on Ratio of Pricing Related- Relationsh Equity Execute Disclosu Index to
37
BOE Technology Group Co., Ltd. Annual Report 2022
n party investme sale n price contributed the the net principle party ip between investme d as re date disclosed
nt sold (RMB0’00 to the Company profit transactio the nt schedule information
0) Company contribut n or not transaction involved d or not;
from the ed by the party and has been if not,
period- sale of the all give
begin to the equity Company transferre reasons
the date of investme d or not and
sale nt to the measure
(RMB0’00 Company s taken
0) ’s total
net profit
(%)
The
Company
has Sold on a
ceased to secondary
control market,
Equity SES and with the
investme 25 has total 30
Institution www.cninfo.com.
nt in SES Novemb 124,807.00 162.00 excluded 66.43% transaction No - Yes - Novemb
al investor cn
imagotag er 2022 it from considerati er 2022
S.A. the on not
consolida exceeding
te 0.18 billion
financial euro.
statement
s.
IX Main Controlled and Joint Stock Companies
Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
Relationship Principal
Name with the activities Registered capital Total assets Net assets Operating revenue Operating profit Net profit
Company
Chongqing Subsidiary R&D, 19,226,000,000.00 50,215,357,747.00 42,295,896,874.00 22,475,277,054.00 4,982,156,785.00 4,260,338,675.00
38
BOE Technology Group Co., Ltd. Annual Report 2022
BOE Production,
Optoelectronics and sales of
Technology semi-
Co., Ltd. conductor
display
device,
complete
machine,
and relevant
products;
import and
export
business and
technology
consulting
of goods.
Investment
construction,
R&D,
Hefei Xinsheng Production,
and sales of
Optoelectronics
Subsidiary relevant 19,500,000,000.00
Technology products of
Co., Ltd. TFT-LCD
and its
matching
products. 34,984,843,717.00 25,484,857,733.00 23,099,173,107.00 2,249,652,657.00 2,074,574,833.00
Investment
construction,
R&D,
Production,
Hefei BOE
and sales of
Optoelectronics
Subsidiary relevant 9,000,000,000.00 23,098,545,346.00 16,474,099,268.00 7,004,241,037.00 682,126,280.00 600,777,647.00
Technology
products of
Co., Ltd.
TFT-LCD
and its
matching
products.
39
BOE Technology Group Co., Ltd. Annual Report 2022
Subsidiaries obtained or disposed in this Reporting Period
Applicable □ Not applicable
How the subsidiary was acquired or Effects on the overall operations and
Name of subsidiary
disposed of performance
BOE Environmental and Energy
Incorporated with investment No significant effects
Technology Co., Ltd.
Chengdu BOE Display Technology Co.,
Incorporated with investment No significant effects
Ltd.
Beijing BOE Chuangyuan Technology
Incorporated with investment No significant effects
Co., Ltd.
See the Announcement of BOE
SES Imagotag SA Co.Ltd. Traded on a secondary market Technology Group Co., Ltd. on the Sale
of Certain Shares Held in a Subsidiary
BOE Digital Technology Co., Ltd. Equity replacement No significant effects
Information about major majority- and minority-owned subsidiaries: N/A
X Structured Bodies Controlled by the Company
□ Applicable Not applicable
XI Prospects
1. "1+4+N+Ecosystem" business development structure
Display Devices business: The Company will accelerate the improvement of OLED technology strength, continue to optimize product
performance, increase the proportion of high-end products, accelerate the development of new application markets, and further
strengthen the competitive edges. Meanwhile, it will focus on optimizing the structure of LCD products and speed up the establishment
of a comprehensive leading position in the innovative application market. It will also proactively leverage the advantages of the industry
leader and continue to spearhead the healthy development of the industry.
IoT Innovation business: The Company will enhance the capabilities of software and hardware integration and system design and
integration, continue to develop strategic customers, and strengthen cooperation with partners within the ecosystem. Also, it will
strengthen the implementation of benchmark projects, enhance brand influence, and accelerate the growth of business scale.
Sensor business: The Company will continue to deepen the development of medical biology, smart screens, consumer electronics, and
industrial sensors, to provide customers with high-performance products and services.
MLED business: The Company will create a Mini/Micro LED product group with active driver and COG at its core and coordinated
development of COB and SMD, strengthen the collaboration and integration with upstream and downstream resources, continuously
enrich the product mix, enhance product competitiveness, expand applications and expedite the development of business landscape.
Smart Medical Engineering business: The Company will continue to deepen the "construction of a closed-loop service system with
health management as the core, medical engineering products as the traction, and digital hospitals as the support", strengthen its core
capabilities and accelerate its business development.
“N” business: Based on the "1+4" network to reach the demand side and the market side, the Company will achieve large-scale
application scenarios, continue to deepen its advantageous tracks, accelerate the growth of core capabilities, and speed up the
exploration of emerging application markets, thereby ushering in a new era of high quality and high speed growth.
“Ecosystem”: The Company will uphold the concept of "in-depth cooperation, collaborative development and value co-creation", fully
integrate key industrial resources, enhance the overall value creation capability and create a sharing and win-win ecosystem.
2. Digital transformation
With the aim of building "a digital, visible BOE", the Company will promote, in an accurate and in-depth manner, a series of digital
40
BOE Technology Group Co., Ltd. Annual Report 2022
transformation to further improve operational efficiency and business performance, and boost long-term, stable and high-quality
development.
3. "Double carbon" task
The Company will deepen the implementation of the concept of green development, and continue to strengthen the efficient and
comprehensive utilization at multiple sources, the integrated management of energy supply, distribution, use and storage, and digital
management capabilities through source decarbonization, process decarbonization, and intelligent carbon management to create a zero-
carbon integrated energy service system.
XII Communications with the Investment Community such as Researches, Inquiries and
Interviews
Applicable □ Not applicable
Index to
Type of
Way of Main discussions and the
the Communication
Date Place communicat materials provided by the relevant
communic party
ion Company informa
ation party
tion
Company Main discussions:
Perseverance Asset
10 January 2022 Conference By phone Institution 1. The Company’s operating
Room Management
results and operations; and
2. Answered questions from
investors.
10 institutions Materials provided by the
Company including China Company:
15 January 2022 Conference By phone Institution Alpha Fund The Company’s Interim
Room Management (HK) Report 2021, Third Quarterly
Limited Report 2021, and other
materials that had been
disclosed to the public.
Company Main discussions:
123 institutions
6 April 2022 Conference By phone Institution 1. The Company’s operating
Room including Acuity
results and operations; and
Company
One-site China Galaxy 2. Answered questions from
14 April 2022 Conference Institution
visit Securities investors.
Room
Materials provided by the www.cn
Company: info.co
Company 10 institutions The Company’s Third m.cn
19 April 2022 Conference By phone Institution including Bosera Quarterly Report 2021,
Room Funds Annual Report 2021, and
other materials that had been
disclosed to the public.
Company 108 institutions
29 April 2022 Conference By phone Institution including Acuity Main discussions:
Room Knowledge Partners 1. The Company’s operating
Company results and operations; and
13 May 2022 Conference By phone Institution BlackRock 2. Answered questions from
Room investors.
Company Materials provided by the
26 May 2022 Conference By phone Institution T Rowe Price Company:
Room
The Company’s Annual
Company
31 May 2022 Conference By phone Institution Ishana Capital Report 2021, First Quarterly
Room Report 2022, and other
Company materials that had been
Golden Trust,
24 June 2022 Conference By phone Institution disclosed to the public.
Room Visione Asset, and
41
BOE Technology Group Co., Ltd. Annual Report 2022
IDG Capital
Main discussions:
1. The Company’s operations;
and
2. Answered questions from
investors.
Company 63 institutions Materials provided by the
30 August 2022 Conference By phone Institution including Acuity Company:
Room Knowledge Partners The Company’s Annual
Report 2021, First Quarterly
Report 2022, Interim Report
2022, and other materials that
had been disclosed to the
public.
Main discussions:
1. Industry and market
overview;
2. The Company’s operations;
and
3. Answered questions from
Company 178 institutions investors.
31 October 2022 Conference By phone Institution including 3W Fund, Materials provided by the
Room and Aspex Company:
The Company’s First
Quarterly Report 2022,
Interim Report 2022, Third
Quarterly Report 2022 and
other materials that had been
disclosed to the public.
Main discussions:
1. HC Semitek’s
considerations for introducing
BOE as the controlling
shareholder;
2. BOE’s development
strategy;
Company
243 institutions 3. Developments and future
6 November 2022 Conference By phone Institution
Room including Point 72 planning of BOE’s MLED
business;
4. Introduction to HC Semitek
and its products; and
5. Answered questions from
investors.
Materials provided by the
Company: None
Company Main discussions:
Neo-Criterion
22 November 2022 Conference By phone Institution 1. Industry and market
Room Capital
overview;
Company
BOCOM Schroders, 2. Answered questions from
9 December 2022 Conference By phone Institution
Room and GF Securities investors.
Materials provided by the
Company:
Company The Company’s Interim
Credit Suisse, and
16 December 2022 Conference By phone Institution Report 2022, Third Quarterly
Room Citigroup
Report 2022 and other
materials that had been
disclosed to the public.
42
BOE Technology Group Co., Ltd. Annual Report 2022
Part IV Corporate Governance
I General Information of Corporate Bonds
1. Standardized Operation and Perfection of Corporate Governance Structure of the Company in the Reporting Period
The Company has stringently followed laws and rules such as Company Law, Securities Laws, Code of Corporate Governance for
Listed Companies, etc., and requirements of Guidelines of the Main-Board for the Standardized Operation of Companies, to
continuously improve the corporate governance of the Company, to perfect internal control system as well as to promote corporate
governance level of the Company.
During Reporting Period, the Company’s board of directors, board of supervisors and senior executives strictly in line with the
requirement of related laws and Company rules and regulations perform their obligations; ensure the standardization and effectiveness
of corporate governance. During the Reporting Period, the Company revised the Articles of Association and continued to promote the
Company’s governance in many ways. Actively arranged the Company's new directors, supervisors to join special training organized
by the Securities regulatory bureau of Beijing, regularly carry out the theme of the franco-prussian propaganda inside the Company.
The Company preserved the related party fund transaction, external guarantee and regularly self-inspection of the shareholding and its
changes of the directors, supervisors and senior executives, and strengthened the communication of the investors through the Shenzhen
Stock Exchange Investors Interactive Platform.
In the Reporting Period, corporate governance of the Company was perfected and operated normally, which was in total compliance
with various requirements on corporate governance of listed companies. No problems such as horizontal competition or illegal related-
party transactions caused by partial restructuring or other reasons were found. The Company will continue to follow the concept of
“honesty, standard, transparency and responsibility”, regulate itself and continuously improve the level of governance.
Main governance of the Company was as follows:
(1) About Shareholders and Shareholders’ General Meetings
As per the Company’s Articles of Association, shareholders enjoyed rights and assumed obligations according to the shares they held.
Organizing and convening procedures of the Company’s shareholders’ general meetings were in compliance with laws and regulations.
The Company paid high attention to legal interests of its shareholders, especially its minority shareholders. Meanwhile, on the basis of
ensuring legitimacy and validity of shareholders’ general meetings, actively provided conveniences including internet voting for
minority shareholders’ joining the general meeting of the shareholders.
(2) About Relationship between the Controlling Shareholder and the Company
The Company was independent from the controlling shareholder and the actual controller in terms of personnel, assets, financing,
organization and business. The controlling shareholder and actual controller of the Company was able to strictly control its behaviors,
with no direct or indirect intervention in the Company’s decision-making, production and operating activities by violating relevant
laws, regulations and the Articles of Association, no behaviors in relation to occupying significant funds of the Company, and no
behaviors in relation to asking the Company to provide guarantees for it or other parties.
(3) About Directors and the Board of Directors
During the Reporting Period, the composition of the Board of Directors of the Company was in line with requirements of regulations
and the Company’s actual situation. All directors possessed necessary knowledge, skills and quality for duty performance. They all
performed their duties as stipulated in the Articles of Association honestly, faithfully and diligently. They learned about and kept a
constant focus on the Company’s production and operation, its financial status and influence and risks of significant events. They also
took the initiative to search for information needed in their decision-making so as to ensure efficient operation and scientific decision-
making of the Board of Directors. Board sessions were organized and convened in strict compliance with the Articles of Association
and Rules of Procedure for the Board of Directors. There were three special committees under the Board of Directors, namely, the
43
BOE Technology Group Co., Ltd. Annual Report 2022
Strategic Committee, the Nomination, Remuneration and Appraisal Committee and the Risk Control and Audit Committee. The
Company also formulated rules of procedure for all the said special committees so that they could perform better.
(4) About Supervisors and the Supervisory Committee
Within the Reporting Period, the Supervisory Committee has enhanced its ability to supervise the legality and compliance of duty
performance of the Company’s financial staffs, directors and senior managers. By way of attending shareholders’ general meetings,
sitting in on board sessions, checking the Company’s compliance with laws and finance periodically, issuing its opinions on relevant
matters, etc., the Supervisory Committee supervised the Company’s finance, duty performance of directors and senior management
staffs, management and capital flows between the Company and its related parties, and safeguarded the legitimate interests and rights
of the Company and its shareholders. Sessions of the Supervisory Committee were organized and convened in strict compliance with
the Articles of Association and the Rules of Procedure for the Supervisory Committee so as to ensure the Supervisory Committee’s
activities for duty performance were rightful and valid.
(5) About Information Disclosure and Transparency
According to the Company Law, the Stock Listing Rules of the Shenzhen Stock Exchange, the Guidelines of the Main-Board for the
Standardized Operation of Companies, the Articles of Association and Management Methods for Information Disclosure and other
requirements, the Company disclosed information in a timely and fair manner and ensured the factuality, accuracy and completeness
of the information disclosed.
The Company places great emphasis on communication with investors and has set up a dedicated team for investor relations. It
maintains active interaction with investors by means of shareholder meetings, online performance presentations, the Shenzhen Stock
Exchange’s platform, investor hotlines and investor mailboxes. It also engages in communication with investors, answers their
questions, heeds their suggestions, and facilitates the exercise of shareholders' rights. The Company aims to promote the open,
transparent, efficient and consistent communication between the Company, investors and analyst of securities, made them known more
about the strategy, operation and development of the Company. Meanwhile, the Company has joined hands with a third-party
professional IR service agency to make the communication become more convenient between the investor and the Company via the
digital platform. The compliance and fairness of the investor relations work have also been ensured. In terms of investor protection,
the Company uses a combination of online and offline means to strengthen its publicity and education efforts for investors. The
Company has opened up new media platforms and released publicity information of activities such as "National Investor Protection
Promotion Day". The "Investor Protection" column is set up under the "Investor Relations" section of the Company's official website,
and a series of articles on investor education are released in conjunction with hot topics. In addition, the Company cooperates with
brokerage firms and provides educational lectures and training to investors, which are well received by investors
2. Governance Systems of the Company Revised during the Reporting Period
During the Reporting Period, based on the development demand, the Company revised some governance systems which had been
disclosed on Cninfo and details were presented in the following table:
Disclosure date Name of system Established/Revised
28 January 2022 Management System for Professional Managers Revised
31 March 2022 Articles of Association Revised
31 March 2022 Rules of Procedure for General Meetings Revised
31 March 2022 Rules of Procedure for the Board of Directors Revised
31 March 2022 Rules of Procedure for the Supervisory Committee Revised
Composition and Rules of Procedure for the Strategy Committee of
31 March 2022 Revised
the Board of Directors
31 March 2022 Independent Director System Revised
Measures for the Management of the Provision of Guarantees for
31 March 2022 Revised
External Entities
30 August 2022 Measures for the Management of Information Disclosure Revised
30 August 2022 Measures for the Management of Related-party Transactions Revised
30 August 2022 Information Insider Registration and Management System Revised
30 August 2022 External Information User Management System Revised
44
BOE Technology Group Co., Ltd. Annual Report 2022
Measures for the Management of Shares Held by Directors,
30 August 2022 Supervisors and Senior Management in the Company and Their Revised
Changes
30 August 2022 Work Rules for Board Secretary Revised
Accountability System for Material Errors in the Disclosure of Annual
30 August 2022 Revised
Reports
31 October 2022 Articles of Association Revised
31 October 2022 Rules of Procedure for the Board of Directors Revised
31 October 2022 Rules of Procedure for the Supervisory Committee Revised
31 October 2022 Internal Reporting System for Material Information Revised
31 October 2022 Investor Relations Management System Revised
Indicate by tick mark whether there is any material in-compliance with laws, administrative regulations and the regulatory documents
issued by the CSRC governing the governance of listed companies.
□ Yes No
No such cases in the Reporting Period.
II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Business, Personnel, Asset, Organization and Financial Affairs
The Company was independent from the controlling shareholder and the actual controller in terms of business, personnel, assets,
organization and financing, with independent & complete business and capability to operate independently.
1. In business, the Company was independent from the controlling shareholder and the actual controller, with its own production and
business departments and management system, the Company had the capability to make its own decisions, assume sole responsibility
for its profits and losses, and operate independently with independent and complete business.
2. In personnel, the Company was completely independent in labor, staff and remunerations. The Company had its own operating
management team. Chief of Executive Committee, President, Chief Financial Officer, Secretary of the Board as well as other senior
management staffs of the Company all worked on full-time basis in the Company and did not hold any post in or receive any
remuneration in the controlling shareholder unit.
3. In assets, the Company had independent and complete assets. With clear ownership on its assets, the Company independently owned
the production system, ancillary production system as well as supporting facilities for major businesses, as well as assets like land use
rights and intellectual property rights, etc.. Neither the controlling shareholder nor the actual controller appropriated any assets of the
Company.
4. In organization, the Company had established its organization completely independent from the controlling shareholder and the
actual controller, with independent and sound organs and corporate governance structure. The Company had not handled any official
affairs jointly with the controlling shareholder or the actual controller. There were no subordinate relationships between the controlling
shareholder & its functional departments and the Company & its functional departments.
5. In financing, the Company had established independent financial departments, with full-time finance personnel. The Company had
also formulated a standard and independent finance accounting system as well as financial measurement system, established the
corporate financial management archives and deployed relevant administrative personnel for them, opened independent account in
bank, and paid tax independently.
III Horizontal Competition
□ Applicable Not applicable
45
BOE Technology Group Co., Ltd. Annual Report 2022
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Date of the Disclosure
Meeting Type participation Meeting resolutions
meeting date
ratio
The following reports and proposals were
deliberated and approved, i.e., Report on the
Work of the Board of Directors for 2021, Report
on the Work of the Board of Supervisors for
2021, Full Annual Report and Summary for
2021, Financial Final Report for 2021 and
Business Plan for 2022, Proposal for the
Distribution of Profits for 2021, Proposal on
Borrowing and Credit Line, Proposal on the
Development of Structured Deposits and Other
Principal-protected Business, Proposal on
Provision of Guarantee by A Subsidiary of
Beijing BOE Energy Technology Co., Ltd. for
The 2021 the 200,000 kW Photovoltaic Project of Sonid
Annual
Annual
General 24.61% 28 April 2022 29 April 2022 Right Banner, Proposal on Provision of
General
Meeting Guarantee for BOE Vision Electronic
Meeting
Technology Co., Ltd., Proposal on the Intended
Appointment of an Audit Agency for 2022,
Proposal on Repurchase of Domestic Listed
Foreign Investment Shares (B Share) of the
Company, Proposal on Purchase of Liability
Insurance for Directors, Supervisors, and Senior
Managers, Proposal on the Amendment of the
Articles of Association of the Company and other
Policies, Proposal on the Amendment of the
Rules of Procedure for the Supervisory
Committee, Election of Non-Independent
Directors, Election of Independent Directors, and
Election of Supervisors.
The 1st
Extraordin The Proposal on the Repurchase and Retirement
Extraordinary
ary 15 September 16 September
General 21.42% of Certain Restricted Shares was deliberated and
General 2022 2022
Meeting of approved.
Meeting
2022
The following proposals were deliberated and
approved: The Proposal on the Investment for the
Development of the Project of the Production
The 2nd Lines of the 6th Generation Semiconductor
Extraordin
Extraordinary
ary 18 November 19 November Display Devices of BOE, the Proposal on the
General 21.34%
General 2022 2022 Change of Registered Capital and the
Meeting of
Meeting Amendment of the Articles of Association of the
2022
Company and other Policies and the Proposal on
the Amendment of the Rules of Procedures for
the Supervisory Committee.
2. Extraordinary General Meetings Convened at the Request of Preferred Shareholders with Resumed
Voting Rights
□ Applicable Not applicable
46
BOE Technology Group Co., Ltd. Annual Report 2022
V Directors, Supervisors and Senior Management
1. Basic Information
Increase Decrease
Beginning in the in the Other Ending Reason
Start of End of
Name Office title Incumbent/Former Gender Age shareholding Reporting Reporting increase/decrease shareholding for
tenure tenure
(share) Period Period (share) (share) change
(share) (share)
Chairman of
the Board,
Chen and 28 April 27 April
Incumbent Male 57 2,900,000 0 0 0 2,900,000 N/A
Yanshun Chairman of 2022 2025
the Executive
Committee
Vice
Pan 28 April 27 April
Chairman of Incumbent Male 43 0 0 0 0 0 N/A
Jinfeng 2022 2025
the Board
Vice
Chairman of
the Board,
Liu 28 April 27 April
and member Incumbent Male 58 2,480,000 0 0 0 2,480,000 N/A
Xiaodong 2022 2025
of the
Executive
Committee
Director,
President,
Gao and Vice 28 April 27 April
Incumbent Male 47 1,860,700 0 0 0 1,860,700 N/A
Wenbao Chairman of 2022 2025
the Executive
Committee
Director,
member of
the Executive
Committee, 28 April 27 April
Sun Yun Incumbent Female 53 1,989,481 0 0 0 1,989,481 N/A
and 2022 2025
Executive
Vice
President
28 April 27 April
Ye Feng Director Incumbent Male 57 0 0 0 0 0 N/A
2022 2025
Tang Independent 28 April 27 April
Incumbent Male 70 0 0 0 0 0 N/A
Shoulian director 2022 2025
47
BOE Technology Group Co., Ltd. Annual Report 2022
Zhang Independent 28 April 27 April
Incumbent Male 60 0 0 0 0 0 N/A
Xinmin director 2022 2025
Independent 28 April 27 April
Guo He Incumbent Male 60 0 0 0 0 0 N/A
director 2022 2025
Wang Independent 28 April 27 April
Incumbent Male 53 0 0 0 0 0 N/A
Duoxiang director 2022 2025
Chairman of
the 28 April 27 April
Wang Jin Incumbent Female 47 0 0 0 0 0 N/A
Supervisory 2022 2025
Committee
Sun 28 April 27 April
Supervisor Incumbent Male 49 0 0 0 0 0 N/A
Fuqing 2022 2025
Shi 28 April 27 April
Supervisor Incumbent Male 48 0 0 0 0 0 N/A
Xiaodong 2022 2025
28 April 27 April
Xu Jinghe Supervisor Incumbent Female 39 0 0 0 0 0 N/A
2022 2025
Employee 28 April 27 April
Yan Jun Incumbent Male 51 32,000 0 0 0 32,000 N/A
Supervisor 2022 2025
Xu Employee 28 April 27 April
Incumbent Male 48 35,000 0 0 0 35,000 N/A
Yangping Supervisor 2022 2025
Employee 28 April 27 April
Teng Jiao Incumbent Male 40 55,200 0 0 0 55,200 N/A
Supervisor 2022 2025
Member of
the Executive
Committee,
Wang 28 April 27 April
and Incumbent Male 44 852,400 0 0 0 852,400 N/A
Xiping 2022 2025
Executive
Vice
President
Member of
the Executive
Committee,
Feng Executive 28 April 27 April
Incumbent Female 50 1,360,000 0 0 0 1,360,000 N/A
Liqiong Vice 2022 2025
President,
and Lead
Counsel
Member of
the Executive
Committee,
28 April 27 April
Zhang Yu and Incumbent Male 52 751,600 0 0 0 751,600 N/A
2022 2025
Executive
Vice
President
48
BOE Technology Group Co., Ltd. Annual Report 2022
Member of
the Executive
Committee,
Executive
Yang 28 April 27 April
Vice Incumbent Female 43 742,300 0 0 0 742,300 N/A
Xiaoping 2022 2025
President,
and Chief
Financial
Officer
Vice
Liu President, 28 April 27 April
Incumbent Male 44 1,024,500 0 0 0 1,024,500 N/A
Hongfeng and Board 2022 2025
Secretary
24
17 March
Wang Jing Director Former Female 51 December 0 0 0 0 0 N/A
2022
2021
28 June 27 April
Song Jie Director Former Male 55 0 0 0 0 0 N/A
2019 2022
6
Fan 28 April
Director Former Male 55 September 0 0 0 0 0 N/A
Yuanning 2022
2022
Independent 28 June 27 April
Hu Xiaolin Former Male 44 0 0 0 0 0 N/A
Director 2019 2022
Independent 28 June 27 April
Li Xuan Former Male 54 0 0 0 0 0 N/A
Director 2019 2022
Chairman of
Yang the 28 June 27 April
Former Male 61 0 0 0 0 0 N/A
Xiangdong Supervisory 2019 2022
Committee
Wei 28 June 27 April
Supervisor Former Male 55 0 0 0 0 0 N/A
Shuanglai 2019 2022
Chen 28 June 27 April
Supervisor Former Female 50 0 0 0 0 0 N/A
Xiaobei 2019 2022
28 June 27 April
Shi Hong Supervisor Former Female 40 0 0 0 0 0 N/A
2019 2022
Employee 28 June 27 April
He Daopin Former Male 53 32,600 0 0 0 32,600 N/A
Supervisor 2019 2022
Yao Senior 28 June 27 April
Former Male 45 1,265,000 0 0 0 1,265,000 N/A
Xiangjun management 2019 2022
Zhang Senior 28 June 27 April
Former Male 52 1,498,800 0 0 0 1,498,800 N/A
Zhaohong management 2019 2022
49
BOE Technology Group Co., Ltd. Annual Report 2022
Zhong Senior 28 June 27 April
Former Male 52 1,310,000 0 0 0 1,310,000 N/A
Huifeng management 2019 2022
Miao Senior 28 April 1 March
Former Male 49 758,800 0 0 0 758,800 N/A
Chuanbin management 2022 2023
Xie Senior 28 April 31 March
Former Male 52 1,057,000 0 0 0 1,057,000 N/A
Zhongdong management 2022 2023
Total -- -- -- -- -- -- 20,005,381 0 0 0 20,005,381 --
Indicate by tick mark whether any director, supervisor or senior management resigned before the expiry of their office terms during the Reporting Period.
Yes □ No
1. On 17 March 2022, the Board of Directors received a resignation letter from Ms. Wang Jing, a non-independent director of the Company. Ms. Wang Jing applied for resignation as a non-
independent director and a member of the relevant special committees of the Board of Directors due to job change and will not hold any position in the Company after her resignation.
2. On 6 September 2022, the Board of Directors received a resignation letter from Mr. Fan Yuanning, a non-independent director of the Company. Mr. Fan Yuanning applied for resignation as a
non-independent director and a member of the relevant special committees of the Board of Directors due to job change and will not hold any position in the Company after his resignation.
50
BOE Technology Group Co., Ltd. Annual Report 2022
Change of Directors, Supervisors and Senior Management
Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Wang Jing Director Resigned 17 March 2022 Resigned voluntarily
Resigned upon the
Resigned upon the
Song Jie Director expiry of office 28 April 2022
expiry of office term
term
Resigned upon the
Resigned upon the
Hu Xiaolin Independent Director expiry of office 28 April 2022
expiry of office term
term
Resigned upon the
Resigned upon the
Li Xuan Independent Director expiry of office 28 April 2022
expiry of office term
term
Resigned upon the
Chairman of the Resigned upon the
Yang Xiangdong expiry of office 28 April 2022
Supervisory Committee expiry of office term
term
Resigned upon the
Resigned upon the
Wei Shuanglai Supervisor expiry of office 28 April 2022
expiry of office term
term
Resigned upon the
Resigned upon the
Chen Xiaobei Supervisor expiry of office 28 April 2022
expiry of office term
term
Resigned upon the
Resigned upon the
Shi Hong Supervisor expiry of office 28 April 2022
expiry of office term
term
Resigned upon the
Resigned upon the
He Daopin Employee Supervisor expiry of office 28 April 2022
expiry of office term
term
Resigned upon the
Resigned upon the
Yao Xiangjun Senior management expiry of office 28 April 2022
expiry of office term
term
Resigned upon the
Zhang Resigned upon the
Senior management expiry of office 28 April 2022
Zhaohong expiry of office term
term
Resigned upon the
Resigned upon the
Zhong Huifeng Senior management expiry of office 28 April 2022
expiry of office term
term
Fan Yuanning Director Elected 28 April 2022 Elected
Guo He Independent director Elected 28 April 2022 Elected
Wang Duoxiang Independent director Elected 28 April 2022 Elected
Chairman of the
Wang Jin Elected 28 April 2022 Elected
Supervisory Committee
Shi Xiaodong Supervisor Elected 28 April 2022 Elected
Xu Jinghe Supervisor Elected 28 April 2022 Elected
Wang Xiping Senior management Appointed 28 April 2022 Appointed
Yang Xiaoping Senior management Appointed 28 April 2022 Appointed
Fan Yuanning Director Resigned 6 September 2022 Resigned voluntarily
Miao Chuanbin Senior management Resigned 1 March 2023 Resigned voluntarily
Xie Zhongdong Senior management Resigned 31 March 2023 Resigned voluntarily
Feng Qiang Senior management Appointed 31 March 2023 Appointed
Guo Huaping Senior management Appointed 31 March 2023 Appointed
2. Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and senior
51
BOE Technology Group Co., Ltd. Annual Report 2022
management
Directors:
Mr. Chen Yanshun, Master of Economics, Senior Economist, and Senior Accountant. Joining the Company in 1993, he used to be
Secretary to the 1st Board of Directors of the Company, Secretary to the 2nd Board of Directors and Vice President, Executive Director
of the 3rd Board of Directors and Senior Vice President, Executive Director of the 4th, 5th and 6th Boards of Directors and President,
Vice Chairman of the 7th Board of Directors and President, Vice Chairman of the 8th Board of Directors and Chairman of the Executive
Committee (Chief Executive Officer), and Chairman of the 9th Board of Directors and Chairman of the Executive Committee. Also, he
once was Chairman of the Board for a number of subsidiaries including Beijing BOE Optoelectronics Technology Co., Ltd., Hefei
BOE Optoelectronics Technology Co., Ltd., Chongqing BOE Optoelectronics Technology Co., Ltd., and BOE Smart Technology Co.,
Ltd.
Currently, he serves as Chairman of the 10th Board of Directors and Chairman of the Executive Committee of the Company. He is also
Chairman of the Board for BOE Optoelectronics Holdings Co., Ltd., BOE Optoelectronics Technology Co., Ltd., BOE Technology
(HK) Limited, and Beijing Intelligent Kechuang Technology Development Co., Ltd., in addition to being Vice Chairman of the Board
of Beijing BOE Investment Development Co., Ltd. Meanwhile, he is also Vice Chairman of China Information Technology Industry
Federation (CITIF), Vice Chairman of China Optics & Optoelectronics Manufactures Association (COEMA), Chairman of China
Optics & Optoelectronics Manufactures Association LCB (CODA), and Chief Supervisor of The Listed Companies Association of
Beijing. He has been awarded as National Model Worker in 2020 and the Economic Figure of the Year by China News Weekly in 2021.
Mr. Pan Jinfeng, senior management, MBA, senior economist. He once acted as a staff and a staff of Corporate Planning Department
of Shanghai Sales Company of Beijing Zhaowei Electronics (Group) Co., Ltd., Deputy Manager, Manager of Operation Department,
Manager of Zhaowei Building Project Department, Assistant of GM, Deputy GM, GM of Zhaowei Industrial Corporation of Beijing
Zhaowei Electronics (Group) Co., Ltd. Executive Deputy President of Beijing Zhaowei Electronics (Group) Co., Ltd., Deputy Secretary
of Party Committee, Director, GM of Beijing Yiheng Electronics Group Co., Ltd., Assistant of GM and Deputy GM of Beijing
Electronics Holding Co., Ltd.
Now, he acts as the Vice Chairman of the 10th Board of Directors of the Company, Deputy Secretary of the CPC Committee, Director
and GM of Beijing Electronics Holding Co., Ltd. & Deputy Chairman of the Board of NAURA Technology Group Co., Ltd., Chairman
of the Board of Beijing Electronic Zone High-Tech Group Co.,Ltd. and BE New Energy Technology (Jiangsu) Co., Ltd., Director of
Beijing Electronics Holding & SK Technology Co., Ltd. and Chairman of the Board of Beijing Integrated Circuit Equipment Innovation
Center Co. Ltd. and BE Aisite (Jiangsu) Technology Co., Ltd. He is also Vice Chairman of Beijing Youth Federation, Chairman of
Beijing Electronic Chamber of Commerce and Chairman of Zhongguancun Yunti Technology Innovation Alliance.
Mr. Liu Xiaodong, Bachelor’ degree, Engineer, he ever worked in Research Institute of Beijing Information Optics Apparatus. He
successively took the posts of Director, Deputy General Manager and Secretary of CPC of Beijing Matsushita Color CRT Co., Ltd.,
Vice President of the Company and concurrently Director and General Manager of Beijing BOE Optoelectronics Technology Co., Ltd.,
Director and General Manager of Hefei BOE Optoelectronics Technology Co., Ltd. Chairman of the Board of Beijing BOE Vision-
electronic Technology Co., Ltd. Director and GM of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Deputy Chairman of the
Board of Chongqing BOE Optoelectronics Technology Co., Ltd., Director of TPV Display Technology (China) Limited, Fuzhou BOE
Optoelectronics Technology Co., Ltd., Beijing BOE Display Technology Co., Ltd., and BOE Health Investment Management Co., Ltd.,
Chairman of the Board of Beijing BOE Sensor Technology Co., Ltd., Director of the 7th Board of Directors of the Company, Executive
Vice President and COO of the Company, Director of the 8th Board of Directors, Vice Chairman of the Executive Committee, President
& COO of the Company, as well as Vice Chairman of the 9th Board of Directors, President and Vice Chairman of the Executive
Committee of the Company.
Now he takes the posts of Vice Chairman of the 10th Board of Director and a member of the Executive Committee of the Company,
52
BOE Technology Group Co., Ltd. Annual Report 2022
Chairman of Mianyang BOE Optoelectronics Technology Co., Ltd., Chongqing BOE Display Technology Co., Ltd., Wuhan BOE
Optoelectronics Technology Co., Ltd., Yunnan Chuangshijie Optoelectronics Technology Co., Ltd., and Fuzhou BOE Display
Technology Co., Ltd., Executive Director of Beijing BOE Technology Development Co., Ltd., Director of Hefei BOE Display
Technology Co., Ltd., Chairman of the Board of Beijing BOE Chuangyuan Technology Co., Ltd., and Chairman of the Board of
Chengdu BOE Display Technology Co., Ltd.
Mr. Gao Wenbao, PhD in Microelectronics and Solid State Electronics. He joined the Company in 2003 and served as Section Chief,
Head of Product Technology, Deputy Director of Technology, Executive Deputy General Manager of BOE, General Manager of TPC
SBU, General Manager of Chongqing BOE Display Technology Co., Ltd. ,Director of the 9th Board of Directors, Member of the
Executive Committee, and Executive Vice President of the Company of the Company.
He is currently Director of the 10th Board of Directors, President, Vice Chairman of the Executive Committee, Chief Executive Officer
of the display business of the Company, in addition to being Executive Director and Chairman of the Board of Directors of BOE
Varitronix Limited, and Chairman of the Board of Beijing Zhongxiangying Technology Co., Ltd.
Ms. Sun Yun, Master of Business, a Senior Accountant. She successively took the posts of Deputy Chief, Chief of Finance Department
of the Company, as well as Deputy CFO and Chief Auditor of the Company, Director of the 8th Board of Directors of the Company,
Director of the 9th Board of Directors and CFO of the Company, Director of Erdos Yuansheng Optoelectronics Co., Ltd., Beijing BOE
Video Technology Co., Ltd., Beijing BOE Multimedia Science and Technology Co., Ltd., BOE Health Investment Management Co.,
Ltd., Beijing BOE Matsushita Color CRT Innovation Co., Ltd. and Supervisor of Beijing Orient Vacuum Electric Co., Ltd.
Now she is Director of the 10th Board of Directors, Member of the Executive Committee, and Executive Vice President of the Company,
in addition to being Director of Beijing BOE Land Co., Ltd., Director of Beijing Yinghe Century Land Co., Ltd., Chairman of the
Board of BOE Innovation Investment Co., Ltd.
Mr. Ye Feng, BS in Engineering, Engineer. Previously, he served as Deputy Factory Manager of Beijing Jianzhong Machinery Factory,
a Director of the Board of Directors and General Manager of Beijing Qixing Huachuang Electronic Co., Ltd., Vice President of Beijing
Beiguang Electron Group Co., Ltd., Factory Manager of Beijing Dahua Radio Instrument Factory, Chairman of Beijing Dahua Radio
Instrument Company, Ltd., and Director of the 9th Board of Directors of the Company.
He is currently a Director of the 10th Board of Directors, a full-time Director assigned by Beijing Electronic Holding Co., Ltd., a
Director of Beijing Zhaowei Electronics (Group) Co., Ltd., and a Director of NAURA Technology Group.
Independent Directors:
Mr. Tang Shoulian, professor, holds a master's degree.
He used to be Director of Finance Office, Dean of School of Management and Humanities, Secretary of Party Committee of School of
Economics and Management, Executive Dean of School of Economics and Management, and Standing Committee of Academic
Committee and Chairman of Labor Dispute Mediation Committee of Beijing University of Posts and Telecommunications (BUPT),
and Independent Director of the 9th Board of Directors of the Company. He has served as a member of the Expert Committee on
Telecommunications Economy of the Ministry of Industry and Information Technology, a permanent member of the Chinese
Association of Market Development, a standing member of the Information Law Research Society of the China Law Society, a senior
member of the Chinese Society of Technology Economics, a standing member of the Commerce Statistical Society of China, and a
reviewer of the Management Science Department of the National Natural Science Foundation of China.
He is currently an Independent Director of the 10th Board of Directors of the Company.
53
BOE Technology Group Co., Ltd. Annual Report 2022
Mr. Zhang Xinmin, Doctor of Management, Professor, was formerly the Dean of the International Business School of the University
of International Business and Economics, a member of CPC's Standing Committee and Vice President of the University of International
Business and Economics, and Independent Director of the 9th Board of Directors of the Company.
He is currently an Independent Director of the 10th Board of Directors of the Company, an Independent Director of Minmetals
Development Co., Ltd., an Independent Director of COFCO Capital Holdings Co., Ltd., an Independent Director of China Meheco
Group Co., Ltd., an external Supervisor of Xiamen International Bank Limited, a professor of accounting and doctoral supervisor of
the International Business School at the University of International Business and Economics, a member of the Business Administration
Discipline Review Group of the Academic Degrees Committee of the State Council, Vice President of the China Commercial
Accounting Institute, and an expert who enjoys special allowance from the State Council.
Mr. Guo He, a professor and PhD supervisor at the School of Law / School of Intellectual Property of Renmin University of China.
He currently serves as an Independent Director of the 10th Board of Directors of the Company. He also serves as the Vice President
and Secretary General of the Intellectual Property Law Research Association of the China Law Society, the Vice Chairman of the
China Intellectual Property Research Association, a member of the expert group of the Domain Name Dispute Resolution Centre of
the China International Trade Arbitration Commission and a member of the expert group of the Asian Domain Name Dispute
Resolution Centre.
Mr. Wang Duoxiang, Doctor of Management, is a researcher and doctoral supervisor at the School of Engineering, Peking University.
He was the General Manager of Xiamen PKU Taipu Pharmaceutical Co., Ltd., Chairman of Xiamen Tobefar Technology Co., Ltd.,
the Deputy Director of the College of Engineering of Peking University, the Deputy Mayor of Baotou Municipal People's Government
of Inner Mongolia and the Vice President of Southern University of Science and Technology.
He currently serves as an Independent Director of the 10th Board of Directors of the Company, a researcher of the College of
Engineering of Peking University, Director of the Beijing Institute of Collaborative Innovation, Director of the Beijing-Tianjin-Hebei
National Technology Innovation Centre, and Director of the China Research Centre for Industry-University-Research Integration
Innovation System.
Supervisors:
Ms. Wang Jin, Doctor of Laws, a senior economist. She was the Deputy General Manager of the Legal and Risk Management
Department, the Deputy General Manager of the Legal Department and the Deputy General Manager of the Corporate Development
Department/Legal Department of Beijing Branch of China United Network Communications Group Co., Ltd.
She currently serves as the Chairman of the 10th Supervisory Committee of the Company and the general counsel of Beijing Electronics
Holdings Co., Ltd. She is also Director of Beijing Yiheng Electronics Group Co., Ltd., Director of Beijing ether Electronics Group Co.,
Ltd. and Director of Beijing Qixing Huadian Technology Group Co., Ltd.
Mr. Sun Fuqing, Master of Engineering, Senior Accountant. He was formerly Assistant Financial Manager of Beijing C & W
Electronics (Group) Co., Ltd., Manager of Finance Department of Beijing Tianlong Co., Ltd., Deputy Chief of Finance Department of
Beijing Electronics Holding Co., Ltd., Vice Dean of Beijing Information Technology College, CFO of Beijing Dahua Radio Instrument
Factory, Deputy Party Secretary, Director and General Manager of Beijing Yiheng Electron Group Co., Ltd., Deputy Director of
Adjustment Guarantee Center of Beijing Electronics Holding Co., Ltd., and Supervisor of the 9th Supervisory Committee of the
Company.
He is currently a Supervisor of the 10th Supervisory Committee of the Company, Chief Controller of Financial Management Department
of Beijing Electronics Holdings Limited, and is also a Director of Beijing Electric Control Jiuyi Industrial Development Company
Limited, Chairman and General Manager of Beijing BOE Investment Development Company Limited, and a Director of Beijing Capitel
54
BOE Technology Group Co., Ltd. Annual Report 2022
Co., Ltd.
Mr. Shi Xiaodong, MBA, an economist. He was a personnel specialist at Beijing Panasonic Control Devices Co., Ltd., the Manager
of the Human Resources Department of CITIC Guoan Shihua International Financial Information Co., Ltd., the Management
Consultant of Bosizhilian Management Consultant Co., Ltd., the Manager of the Corporate Management Department, the Manager of
the Human Resources Department, the Assistant General Manager and Deputy General Manager of Zhaowei Technology Co., Ltd.,
the Executive Vice President of Beijing Zhaowei Electronics (Group) Co., Ltd. and the Secretary of the Party Branch and the Deputy
General Manager and Chairman of the Trade Union of Beijing Electric Control Aisikai Technology Co., Ltd.
He is currently a Supervisor of the 10th Supervisory Committee of the Company and the Deputy Director of the Operation and
Management Department of Beijing Electronics Holdings Co., Ltd. (presiding over the work). He is also Director of Beijing ether
Electronics Group Co., Ltd., Director of Beijing Jingdian Import & Export Company Co. Ltd., Director of Beijing Qixing Huadian
Technology Group Co., Ltd., and Director of Beijing Zhengdong Electronic Power Group Co., Ltd.
Ms. Xu Jinghe, Master of Science in Management, Certified Management Accountant (USA), with the professional qualification of
the Certified Public Accountant (China).
She currently serves as a Supervisor of the 10th Supervisory Committee of the Company and the Deputy Director of the Investment
and Development Department of Beijing Yizhuang Investment Holding Co., Ltd.
Mr. Yan Jun, bachelor. He once acted as the Deputy GM of Beijing Nissin Electronic Precision Components Co., Ltd., Minister of
Corporate Culture/Party Affairs Department, Chairman of Labor Union in Chongqing BOE Optoelectronics Technology Co., Ltd.,
Deputy Director of General Office of the Group, and Employee Supervisor of the 9th Supervisory Committee of the Company.
Now he acts as the Employee Supervisor of the 10th Supervisory Committee, Deputy Head of Party Mass/Corporate Culture Center,
Deputy Secretary of Discipline and Inspection Committee, Deputy Chairman of Labor Union in the Company.
Mr. Xu Yangping, Master of Civil and Commercial Law. He was former Deputy Minister, Minister of the Company’s Legal
Department, and Employee Supervisor of the 7th, 8th and 9th Supervisory Committees of the Company.
Now he acts as Employee Supervisor of the 10th Supervisory Committee and Counsel of the Company, and Chief of the Group’s Legal
Center, in addition to being Director of Gaochuang (Suzhou) Electronics Co., Ltd, Beijing BOE Energy Technology Co., Ltd., Nanjing
BOE Display Technology Co., Ltd., BEHC Industrial Investment Co., Ltd., and Erdos BOE Energy Investment Co., Ltd., as well as
Supervisor of BOE Innovation Investment Co., Ltd., Tianjin BOE Innovation Investment Management Co., Ltd., BOE Smart
Technology Co., Ltd., BOE Jingxin Technology Co., Ltd., and Hefei BOE Ruisheng Technology Co., Ltd., among others.
Mr. Teng Jiao, bachelor of Administration. He once acted as the Deputy Minister of Planning and Finance Department, Minister of
Performance Analysis of the Company and Minister of Accounting Department of Beijing BOE Display Technology Co., Ltd., Director
of Beijing Asahi Electronic Materials Co., Ltd., Beijing BOE Energy Technology Co., Ltd., Beijing BOE Health Technology Co., Ltd.
and Hefei BOE Hospital Co., Ltd., Supervisor of Beijing BOE CHATANI Electronics Co.,Ltd. and Nanjing BOE Information
Technology Co., Ltd., as well as Employee Supervisor of the 9th Supervisory Committee of the Company.
Now, he acts as the Employee Supervisor of the 10th Supervisory Committee, Head of the Capital Center, and Head of the Taxation
Center of the Company, in addition to being Director of Beijing BOE Vacuum Electric Co., Ltd., Director of Beijing BOE Matsushita
Color CRT Innovation Co., Ltd., Chengdu BOE Hospital Co., Ltd., Suzhou BOE Hospital Co., Ltd. and Gaochuang (Suzhou)
Electronics Co., Ltd., BOE Optical Science and Technology Co., Ltd. and BOE Environmental Energy Technology Co., Ltd.
55
BOE Technology Group Co., Ltd. Annual Report 2022
Senior Management:
Mr. Feng Qiang, Master of Executive Master of Business Administration, Master of Engineering, and Engineer. Joining the Company
in 1998, he used to be the vice general manager and general manager of the Company’s Science Park Business Headquarters, vice
president of the Company, executive director & executive vice general manager of Beijing BOE Land Co., Ltd., executive director &
executive vice general manager and general manager of Beijing Yinghe Century Land Co., Ltd., general manager of Beijing Matsushita
Color CRT Co., Ltd., and Co-CEO of the Smart Healthcare Service BG.
Now he is a member and executive vice president of the Executive Committee of the Company, Chairman of the Board & CEO of the
Smart Medicine and Engineering Business, Chairman of the Board of BOE Health Investment Management Co., Ltd., Chairman of the
Board of Beijing BOE Life Technology Co., Ltd., Chairman of the Board of Beijing BOE Land Co., Ltd., Chairman of the Board of
Beijing Yinghe Century Land Co., Ltd., Chairman of the Board of BOE Regenerative Medical Technologies Co. Ltd., and Chairman
of the Board of Beijing BOE Songcai Innovation Co., Ltd.
Mr. Wang Xiping, with a Bachelor's degree, was the Manager of Nanjing Hanyu Caixin Technology Co., Ltd. He joined the Company
in 2009 and served as the Head of the Company's Production Management Centre, the General Manager of Hefei Xinsheng
Optoelectronics Technology Co., Ltd. and the General Manager, Display Business Co-CEO and Chief Procurement Officer of Wuhan
BOE Optoelectronics Technology Co., Ltd.
He is currently a member of the Executive Committee and an Executive Vice President of the Company, the Head of the Display
Devices and IoT Innovation Business Centre, and the Chairman of BOE Environmental Energy Technology Co., Ltd.
Ms. Feng Liqiong, Bachelor Degree and Lawyer of the Company, she has served as Senior Vice President and Minister of Legal
Affairs Department of the Company, and as Secretary of the 5th and 6th Board of Directors.
Now she is member of Executive Committee, Executive Vice President, Chief Counsel and Director of Beijing BOE Land Co., Ltd.
and Beijing Yinghe Science & Century Technology Development Co., Ltd.
Mr. Zhang Yu, engineer, holds a master's degree. He has served as the Deputy Director of the Executive Office of the Company,
General Manager of Hefei Office, Supervisor of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Director of Hefei Xinjingyuan
Electronic Materials Co., Ltd.and Hefei BOE Optoelectronics Technology Co., Ltd.
He is currently a member of the Executive Committee, Executive Vice President, Chief Human Resources Officer and Chief Reform
and IT Management Officer of the Company. He was awarded the "National Model Worker" in 2020.
Ms. Yang Xiaoping, with a Master's degree, was the Deputy Director and Director of the Accounting and Finance Department of the
Company, the Centre Director of the Accounting and Taxation Centre, the Center Director of the Budget Center and the VCFO of the
Group.
She is currently a member of the Executive Committee, Executive Vice President, and the Chief Financial Officer of the Company and
the Director of multiple subsidiaries, including Director of Beijing BOE Optoelectronics Technology Co., Ltd., Director of Chengdu
BOE Optoelectronics Technology Co., Ltd., Director of Hefei BOE Optoelectronics Technology Co., Ltd., Director of Beijing BOE
Display Technology Co., Ltd., Director of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Director of Chongqing BOE
Optoelectronics Technology Co., Ltd., Director of Fuzhou BOE Optoelectronics Technology Co., Ltd. and Director of Wuhan BOE
56
BOE Technology Group Co., Ltd. Annual Report 2022
Optoelectronics Technology Co., Ltd.
Mr. Guo Huaping, holds a master’s degree. He once worked as the vice general manager of Beijing 798 Cultural Creative Industry
Investment Co., Ltd., Deputy Secretary of the CPC Committee of Beijing Jile Electronics Group Co., Ltd., the minister of the CPC
Publicity Department/Corporate Culture Department of Beijing Electronics Holdings Co., Ltd. and general manager of Beijing Jingdian
Import and Export Co., Ltd.
Now, he is the senior vice president, CCO and leader of Labor Union of the Company.
Mr. Liu Hongfeng, a master’s degree holder. He once worked as the Deputy Chief of the Planning and Finance Department, the
Deputy Chief and Chief of the Board Secretary’s Office, the Securities Representative and the Secretary to the 7th, 8th and 9th Boards
of Directors of the Company.
Now he is a Vice President and the Secretary to the 10th Board of Directors of the Company, as well as a Director of Beijing Nissin
Electronics Precision Component Co., Ltd. and a Supervisor of Beijing Yinghe Century Land Co., Ltd.
Offices held concurrently in shareholding entities:
Applicable □ Not applicable
Office held in
Remuneration or
the End of
Name Shareholding entity Start of tenure allowance from the
shareholding tenure
shareholding entity
entity
Beijing Electronics Holdings
Pan Jinfeng GM 11 December 2020 -- Yes
Co., Ltd.
Full-time
Beijing Electronics Holdings
Ye Feng Director 31 August 2021 - Yes
Co., Ltd.
Dispatched
Beijing Electronics Holdings General
Wang Jin 1 February 2021 - Yes
Co., Ltd. Counsel
Beijing Electronics Holdings Finance
Sun Fuqing 24 August 2021 - Yes
Co., Ltd. Minister
Deputy Chief
of the
Beijing Electronics Holdings
Shi Xiaodong Operation and 11 November 2021 - Yes
Co., Ltd.
Management
Department
Notes to post-
holding in
The documents for holding the posts of shareholders entities haven’t listed the expiry date.
shareholder’s
unit
Offices held concurrently in other entities:
Applicable □ Not applicable
Remuneration or
Start of End of
Name Other entity Office held in the entity allowance from
tenure tenure
the entity
University of International Professor, and Doctor
Zhang Xinmin - - Yes
Business and Economics Advisor
Professor, and Doctor
Guo He Renmin University of China - - Yes
Advisor
College of Engineering of Researcher, and Doctor
Wang Duoxiang - - Yes
Peking University Advisor
Xu Jinghe Beijing Yizhuang Investment Deputy Chief of the - - Yes
57
BOE Technology Group Co., Ltd. Annual Report 2022
Holdings Limited Investment Development
Department
Notes to post-
Due to the above personnel’s units were special, their start dates and ending dates of the office terms have not
holding in other
been fixed.
entities
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and senior
management as well as those who left in the Reporting Period:
□ Applicable Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and senior
management:
(1) Determining Basis and Decision-making Procedure of Remuneration of Directors, Supervisors and Senior Management
Proposal on Adjustment of Allowance for Directors and Supervisors was reviewed and approved on the 1 st Extraordinary General
Meeting of 2019 held by the Company on 28 June 2019, of which, the allowance for independent directors was adjusted to RMB0.2
million (pre-tax) per year from RMB0.15 million; the allowance for the Company’s executive directors and employee supervisors as
well as directors and supervisors holding posts in shareholder’s unit was cancelled.
(2) During the Reporting Period, the total after-tax remuneration received by directors, supervisors and senior managers in the company
amounted to RMB 56.6374 million, and the withholding of individual income tax by the company amounted to RMB 32.6059
million.Allowance for independent directors is RMB0.2 million (pre-tax) per year in 2022. For details please referred to the statement
below.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
Total after- Individual
tax income Any
remuneratio tax remunerat
Incumbent/
Name Office title Gender Age n received withheld ion from
Former
from the by the related
Company in Company party
2022 in 2022
Chairman of the Board, Chief of Executive
Chen Yanshun Male 57 Incumbent 492.28 330.35 No
Committee
Pan Jinfeng Vice Chairman of the Board Male 43 Incumbent 0.00 0.00 -
Vice Chairman of the Board, member of
Liu Xiaodong Male 58 Incumbent 542.49 371.43 No
Executive Committee
Director, President, Vice Chairman of Executive
Gao Wenbao Male 47 Incumbent 447.03 291.60 No
Committee
Member of Executive Committee, Executive vice
Sun Yun Female 53 Incumbent 465.93 308.80 No
president
Ye Feng Director Male 57 Incumbent 0.00 0.00 -
Tang Shoulian Independent director Male 70 Incumbent 16.50 3.50 -
Zhang Xinmin Independent director Male 60 Incumbent 16.50 3.50 -
Guo He Independent director Male 60 Incumbent 11.20 2.13 -
Wang
Independent director Male 53 Incumbent 11.20 2.13 -
Duoxiang
Wang Jin Chairman of the Supervisory Committee Female 47 Incumbent 0.00 0.00 -
Sun Fuqing Supervisor Male 49 Incumbent 0.00 0.00 -
Shi Xiaodong Supervisor Male 48 Incumbent 0.00 0.00 -
Xu Jinghe Supervisor Female 39 Incumbent 0.00 0.00 -
Yan Jun Employee supervisor Male 51 Incumbent 113.73 25.62 No
Xu Yangping Employee supervisor Male 48 Incumbent 140.17 43.06 No
58
BOE Technology Group Co., Ltd. Annual Report 2022
Teng Jiao Employee supervisor Male 40 Incumbent 195.95 85.15 No
Member of Executive Committee, Executive vice
Wang Xiping Male 44 Incumbent 389.44 218.68 No
president
Member of Executive Committee, Executive vice
Feng Liqiong Female 50 Incumbent 422.94 273.62 No
president, lead counsel
Member of Executive Committee, Executive vice
Zhang Yu Male 52 Incumbent 302.69 176.34 No
president
Yang Member of Executive Committee, Executive vice
Female 43 Incumbent 321.25 190.41 No
Xiaoping president, CFO
Liu Hongfeng Vice president, Secretary of the Board Male 44 Incumbent 234.22 119.21 No
Wang Jing Director Female 51 Former 0.00 0.00 -
Song Jie Director Male 55 Former 0.00 0.00 -
Fan Yuanning Director Male 55 Former 0.00 0.00 -
Hu Xiaolin Independent director Male 44 Former 5.40 1.27 -
Li Xuan Independent director Male 54 Former 5.40 1.27 -
Yang
Chairman of the Supervisory Committee Male 61 Former 0.00 0.00 -
Xiangdong
Wei Shuanglai Supervisor Male 55 Former 0.00 0.00 -
Chen Xiaobei Supervisor Female 50 Former 0.00 0.00 -
Shi Hong Supervisor Female 40 Former 0.00 0.00 -
He Daopin Employee supervisor Male 53 Former 146.32 47.85 No
Yao Xiangjun Senior management Male 45 Former 269.80 146.35 No
Zhang
Senior management Male 52 Former 235.03 119.90 No
Zhaohong
Zhong
Senior management Male 52 Former 416.77 268.58 No
Huifeng
Miao
Senior management Male 49 Former 210.52 99.86 No
Chuanbin
Xie
Senior management Male 52 Former 250.98 129.98 No
Zhongdong
Total -- -- -- -- 5,663.74 3,260.59 --
VI Performance of Duty by Directors in the Reporting Period
1. General Meeting Convened during the Reporting Period
Date of the Disclosure
Meeting Meeting resolutions
meeting date
The 37th Meeting The Proposal on Revising the Management System for Professional Managers
28 January
of the 9th Board of 27 January 2022 and the Proposal on Election of Members of the Special Committee of the
2022
Directors Board of Directors were deliberated and approved.
The 38th Meeting The Proposal on the Intended Capital Injection to Tianjin Xianzhilian
15 March
of the 9th Board of 14 March 2022 Investment Centre (Limited Partnership) and Related Transactions was
2022
Directors deliberated and approved.
The following reports and proposals were deliberated and approved, i.e.,
Report on Business Operations for 2021, Report on the Work of the Board of
Directors for 2021, Full Annual Report and Summary for 2021, Financial
Final Report for 2021 and Business Plan for 2022, Proposal for the
Distribution of Profits for 2021, Special Statement on Non-operating Funds
The 39th Meeting
31 March Utilization and Other Related Financial Transactions in 2021, Special Report
of the 9th Board of 30 March 2022
2022 on Deposit and Usage of Raised Fund in 2021, Proposal on Expected Routine
Directors
Connected Transactions for 2021, Proposal for Change in Accounting Policy,
Proposal on Borrowing and Credit Line, Proposal on the Development of
Structured Deposits and Other Principal-protected Business, Proposal on
Provision of Guarantee by a Subsidiary of Beijing BOE Energy Technology
Co., Ltd. for the 200,000 kW Photovoltaic Project of Sonid Right Banner,
59
BOE Technology Group Co., Ltd. Annual Report 2022
Proposal on Provision of Guarantee for BOE Vision Electronic Technology
Co., Ltd., Proposal on the Intended Appointment of an Audit Agency for 2022,
Proposal on Repurchase of Domestic Listed Foreign Investment Shares (B
Share) of the Company, 2021 Annual Internal Control Evaluation Report,
2021 Annual Corporate Social Responsibility Report, Proposal for
Authorizing the Chairman of the Board to Exercise his/her Powers, Proposal
on the Election of the Board of Directors, Proposal on Purchase of Liability
Insurance for Directors, Supervisors, and Senior Managers, Proposal on the
Amendment of the Articles of Association of the Company and other Policies,
Proposal on the Revision of the Governance Policies of the Company, and
Proposal for Holding the 2021 Annual General Meeting of Shareholders.
The 40th Meeting The Proposal on the Company's Business Objectives, Remuneration and
of the 9th Board of 22 April 2022 - Appraisal of the Chairman of the Executive Committee in 2022 was deliberated
Directors and approved.
The 41st Meeting
The Proposal on the First Quarter Report for 2022 was deliberated and
of the 9th Board of 27 April 2022 -
approved.
Directors
The following reports and proposals were deliberated and approved, i.e.,
Proposal on the Election of the Chairman and the Vice Chairman of the Tenth
The 1st Meeting of
Session of the Board of Directors, Proposal on the Organization of the Special
the 10th Board of 28 April 2022 29 April 2022
Committee of the Tenth Session of the Board of Directors, Proposal on the
Directors
Appointment of Senior Managers of the Company, and Proposal on the
Appointment of Securities Affairs Representatives of the Company.
The Proposal on the Intended Acceptance of Part of the Equity of Hefei BOE
The 2nd Meeting
Display Technology Co., Ltd. and Related Transactions and the Proposal on
of the 10th Board 19 July 2022 20 July 2022
Convening the First Extraordinary General Meeting of Shareholders for 2022
of Directors
were deliberated and approved.
The Proposal on the Capital Injection to BOE Yiyun Technology Co., Ltd. by
a Subsidiary of the Company and Related Transactions, the Proposal on
The 3rd Meeting
Increasing the Expected Routine Connected Transactions for 2022, and the
of the 10th Board 28 July 2022 -
Proposal on the Capital Increase, Share Expansion, and Implementation of
of Directors
Equity Incentive Schemes of the Subsidiaries of the Company were deliberated
and approved.
The 4th Meeting
The Proposal on the Remuneration and Appraisal of the Chairman of the
of the 10th Board 19 August 2022 -
Executive Committee in 2021 was deliberated and approved.
of Directors
The following reports and proposals were deliberated and approved, i.e.,
Proposal for Deliberation on the Full Text and Summary of the Semi-Annual
Report for 2022, Proposal for Deliberation on the Special Report on the
Deposit and Actual Use of Raised Funds for the Semi-Annual Period of 2022,
Proposal for Deliberation on the Summary Statement of Non-operating Funds
The 5th Meeting Utilization and Other Related Financial Transactions in the Semi-annual
30 August
of the 10th Board 26 August 2022 Period of 2022, Proposal on Adjustment of Exercise Price of Stock Options
2022
of Directors and Repurchase Price of Restricted Shares, Proposal for the Repurchase and
Write-off of Certain Restricted Shares, Proposal for the Write-off of Certain
Stock Options, Proposal on the Revision of the Governance Policies of the
Company, and Proposal on Changing the Term of the General Meeting of
Shareholders and Convening the First Extraordinary General Meeting of
Shareholders for 2022.
The following proposals were deliberated and approved, i.e., Proposal on
Deliberation on the Third Quarter Report of 2022, Proposal on the Investment
for the Development of the Project of the Production Lines of the 6th
The 6th Meeting
28 October 31 October Generation Semiconductor Display Devices of BOE, Proposal on the Change
of the 10th Board
2022 2022 of Registered Capital and the Amendment of the Articles of Association of the
of Directors
Company and other Policies, Proposal on the Revision of the Governance
Policies of the Company, and Proposal on Convening a General Meeting of
Shareholders.
60
BOE Technology Group Co., Ltd. Annual Report 2022
The 7th Meeting The Proposal on the Intended Subscription of A shares Issued by HC SemiTek
4 November 7 November
of the 10th Board Corporation Limited to Specific Targets in a Non-public Manner was
2022 2022
of Directors deliberated and approved.
The 8th Meeting
16 November 17 November The Proposal on the Intended Capital Injection to BEHC Industrial Investment
of the 10th Board
2022 2022 Co., Ltd. and Related Transactions was deliberated and approved.
of Directors
The 9th Meeting
22 November The Proposal on the Intended Sale of Certain Shares of Some of the Company's
of the 10th Board -
2022 Subsidiaries was deliberated and approved.
of Directors
The 10th Meeting The Proposal on the Intended Acceptance of Part of the Equity of Hefei BOE
28 December 30 December
of the 10th Board Display Technology Co., Ltd. and Related Transactions was deliberated and
2022 2022
of Directors approved.
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
The director
Total number Board
Board Board failed to
of board Board meetings
meetings meetings the attend two General
meetings the meetings attended by
Director attended director consecutive meetings
director was attended on way of
through a failed to board attended
eligible to site telecommuni
proxy attend meetings
attend cation
(yes/no)
Chen
15 4 11 0 0 No 2
Yanshun
Pan Jinfeng 15 1 14 0 0 No 0
Liu
15 4 11 0 0 No 3
Xiaodong
Gao Wenbao 15 2 13 0 0 No 1
Sun Yun 15 4 11 0 0 No 3
Ye Feng 15 3 12 0 0 No 3
Tang
15 3 12 0 0 No 3
Shoulian
Zhang
15 2 13 0 0 No 3
Xinmin
Guo He 10 3 7 0 0 No 0
Wang
10 2 7 1 0 No 1
Duoxiang
Wang Jing 2 0 2 0 0 No 0
Song Jie 5 0 4 1 0 No 0
Hu Xiaolin 5 0 5 0 0 No 1
Li Xuan 5 0 5 0 0 No 0
Fan
5 2 3 0 0 No 0
Yuanning
Why any independent director failed to attend two consecutive board meetings:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.
□ Yes No
No such cases in the Reporting Period.
61
BOE Technology Group Co., Ltd. Annual Report 2022
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.
Yes □ No
Suggestions from directors adopted or not adopted by the Company
The Board of Directors of the Company strictly obeyed relevant laws and regulations as well as the rules and regulations of the
Company to fulfill the responsibilities seriously, in order to guarantee the standardization and effectiveness of BOE's governance
structure. The Company's Board of Directors has a reasonable structure and a moderate number of people. All of them are equipped
with good professional background, and necessary knowledge, skills and quality to fulfill their responsibilities. They learned about and
kept a constant focus on BOE’s production and operation, financial status, and influence and risks of significant events. They also took
the initiative to search for information needed in their decision-making so as to ensure efficient operation and scientific decision-
making of the Board of Directors. The executive directors of the Company are responsible for the operations management of the
Company. They understand the business and operational status of the Company, and with rich management experience, they can make
decisions efficiently. Non-executive directors are shareholder directors. As the communication bridge between shareholders and the
management of the Company, they can combine the suggestions of shareholders with long-term interests of the Company, and
participate in the decision-making process of significant events of the Company to protect the interests of shareholders. Independent
directors are experts and scholars in the fields of technology, finance, law, and etc. They can express their opinions and views according
to their expertise and advantages. During the Reporting Period, in accordance with Company Law, Securities Law, Stock Listing Rules,
Guidance on Establishing Independent Director System for Listed Companies, Articles of Association, Rules of Procedure for the Board
of Directors and Independent Director Policy, directors of the Company paid special attention to the standardized operation of the
Company, performed their duties diligently, issued much precious professional advice in terms of the perfection of policies and routine
operating decision-making, etc., and issued their independent and fair opinions as independent directors on the related-party
transactions, engagement of audit firm, dividend plan, recruitment of senior management, and other events needing their opinions
occurred in the Reporting Period, as well as played their due roles in perfecting the supervisory mechanism of the Company, protecting
the legal right of the Company and the whole shareholders.
VII Performance of Duty by Specialized Committees under the Board in the Reporting Period
Other
Numb informat Details
Important
er of ion about
opinions
meetin about issues
Committee Members Convened date Content and
gs the with
suggestion
conve perform objections
s raised
ned ance of (if any)
duty
17 January 2022 - N/A
Strategy Director: Mr. Chen
4 March 2022 Proposals that needed to be - N/A
Committee Yanshun;
18 March 2022 reported to the Board of No - N/A
under the 9th Members: Mr. Liu 6
12 April 2022 Directors for approval were objection - N/A
Board of Xiaodong, Ms. Sun
15 April 2022 reviewed. - N/A
Directors Yun, Mr. Gao Wenbao
18 April 2022 - N/A
Proposals that needed to be
reported to the Board of
Strategy Director: Mr. Chen
Directors for approval were
Committee Yanshun;
reviewed. Meanwhile, the No
under the Members: Mr. Liu 10 28 April 2022 - N/A
election of the Secretary of objection
10th Board Xiaodong, Ms. Sun
the Tenth Session of the
of Directors Yun, Mr. Gao Wenbao
Strategy Committee was
approved. Moreover, the
62
BOE Technology Group Co., Ltd. Annual Report 2022
members of the Strategic
Advisory Committee of the
Tenth Session of the Board
of Directors were
nominated.
8 July 2022 Proposals that needed to be - N/A
18 July 2022 reported to the Board of No - N/A
9 August 2022 Directors for approval were objection - N/A
16 August 2022 reviewed. - N/A
Proposals that needed to be
reported to the Board of
Directors for approval were
No
18 October 2022 reviewed. Meanwhile, - N/A
objection
authorities related to
organization and HR
strategy were granted.
31 October 2022 Proposals that needed to be - N/A
1 November 2022 reported to the Board of No - N/A
11 November 2022 Directors for approval were objection - N/A
16 December 2022 reviewed. - N/A
Financial and accounting
statements prepared by the
Company, the Report on the
Audit Work of CPAs for
Convener (Director):
Annual Audit and other
Mr. Zhang Xinmin;
relevant reports, and the No
Members: Mr. Song 1 25 January 2022 - N/A
Summary of Risk objection
Jie, Mr. Li Xuan, Mr.
Management and Audit
Tang Shoulian
Work for 2021 were
Risk reviewed. Meanwhile, the
Control and 2022 Audit Plan was
Audit deliberated.
Committee The 2021 Financial and
under the 9th Accounting Report, the 2021
Board of Annual Internal Control
Directors Evaluation Report, the
Convener (Director):
Proposal on the Intended No
Mr. Zhang Xinmin; 18 March 2022 - N/A
Appointment of an Audit objection
Members: Mr. Song
2 Agency for 2022, and the
Jie, Mr. Li Xuan, Mr.
Special Report on Deposit
Tang Shoulian, Mr. Ye
and Use of the Raised Funds
Feng
of 2021 were deliberated.
The Proposal on the First
No
15 April 2022 Quarter Report for 2022 was - N/A
objection
deliberated.
The Proposal for
Deliberation on the Full Text
and Summary of the Semi-
Risk Convener (Director):
Annual Report for 2022 and
Control and Mr. Zhang Xinmin;
the Proposal for No
Audit Members: Mr. Tang 16 August 2022 - N/A
Deliberation on the Special objection
Committee Shoulian, Mr. Guo 2
Report on the Deposit and
under the He, Mr. Wang
Actual Use of Raised Funds
10th Board Duoxiang, Mr. Ye
for the Semi-Annual Period
of Directors Feng
of 2022 were deliberated.
The Proposal on No
18 October 2022 - N/A
Deliberation on the Third objection
63
BOE Technology Group Co., Ltd. Annual Report 2022
Quarter Report of 2022 was
deliberated.
Convener (Director):
Mr. Li Xuan; The Proposal on Revising
Members: Mr. Hu the Management System for No
1 7 January 2022 - N/A
Xiaolin, Mr. Tang Professional Managers was objection
Shoulian, Mr. Zhang deliberated.
Xinmin
The Proposal on the
Convener (Director):
Election of the Board of
Mr. Li Xuan;
Directors and the Proposal
Members: Ms. Wang No
1 16 March 2022 on Purchase of Liability - N/A
Nomination Jing, Mr. Hu Xiaolin, objection
Insurance for Directors,
& Mr. Tang Shoulian,
Supervisors, and Senior
Remunerati Mr. Zhang Xinmin
Managers were deliberated.
on &
The Proposal on the
Appraisal
Company's Business
Committee
Objectives, Remuneration
under the 9th No
7 April 2022 and Appraisal of the - N/A
Board of objection
Chairman of the Executive
Directors Convener (Director):
Committee in 2022 was
Mr. Li Xuan;
deliberated.
Members: Mr. Hu
2 The Proposal on the
Xiaolin, Mr. Tang
Appointment of Senior
Shoulian, Mr. Zhang
Managers of the Company
Xinmin
and the Proposal on the No
18 April 2022 - N/A
Appointment of Securities objection
Affairs Representatives of
the Company were
deliberated.
The Proposal on the
Company's Business
Objectives, Remuneration
No
9 August 2022 and Appraisal of the - N/A
objection
Nomination Chairman of the Executive
& Convener (Director): Committee in 2022 was
Remunerati Mr. Guo He; deliberated.
on & Members: Mr. Fan The Proposal on Adjustment
Appraisal Yuanning, Mr. Tang 2 of Exercise Price of Stock
Committee Shoulian, Mr. Zhang Options and Repurchase
under the Xinmin, Mr. Wang Price of Restricted Shares,
10th Board Duoxiang the Proposal for the No
16 August 2022 - N/A
of Directors Repurchase and Write-off of objection
Certain Restricted Shares,
and the Proposal for the
Write-off of Certain Stock
Options were deliberated.
VIII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting Period.
□Yes No
The Supervisory Committee raised no objections in the Reporting Period.
64
BOE Technology Group Co., Ltd. Annual Report 2022
IX Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent at the
2,730
period-end
Number of in-service employees of major subsidiaries at the period-
61,833
end
Total number of in-service employees 88,343
Total number of paid employees in the Reporting Period 88,343
Number of retirees to whom the Company as the parent or its major
12
subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 55,434
Sales 2,856
Technical 26,395
Financial 789
Administrative 244
Manager 1,990
Other 635
Total 88,343
Educational backgrounds
Educational background Employees
Doctor 391
Master 9,301
Bachelor 22,653
College 25,817
Technical secondary school 11,249
Other 18,932
Total 88,343
2. Employee Remuneration Policy
The Company has established the remuneration system based on the position, ability and business performance, paid attention to the
external competitive compensation and internal fairness, strengthening the control of the group as well as considering the difference
among all business groups and subsidiaries.
3. Employee Training Plans
As a professional organization for talent training, BOE University (BOEU) conveys the Group's strategic requirements to employees,
as well as facilitates the implementation of such requirements, through education and training, in order to promote the construction of
BOE's talent training system. Meanwhile, BOEU continues to promote talent cultivation in terms of mindset renewal, cognitive
development, and ability improvement, so as to promote talent cultivation and intellectual capital appreciation, export cultural value
and influence, facilitate the achievement of strategic goals, and play a positive role in value promotion, requirement implementation
and talent cultivation.
In 2022, BOEU attracted 28,343 trainees, and the training duration totaled 301,541 hours. Specifically:
1. In terms of leading talent cultivation, program upgrading was completed as the programs launched since 2016 were replaced by a
series of new programs, such as the BOE Leading Talent Cultivation Program and the BOE MiniMBA. Moreover, the average training
duration reached 41 hours, representing a performance level of top-class enterprises.
65
BOE Technology Group Co., Ltd. Annual Report 2022
2. In terms of manager cultivation, the cultivation program for middle-level and first-line managers was implemented as planned, while
the participation rate of the Group's cadres in the Group's required courses considerably increased.
3. In terms of professional cultivation, the approach of high-quality general curricula was explored with the focus on trans-
organizational improvements in professional skills.
4. In terms of industrial talent training, the cultivation program for newly employed university graduates was comprehensively updated,
as U Class admitted 9,190 students who studied for 48,166 hours in total.
5. In terms of the exploration of the digital learning mode, the newly launched digital learning platform provided more convenience
and more effective support for online operation, content recommendation, learning motivation and learning interaction. As a result, the
log-in sessions of the platform totaled 406,520.
In 2022, BOEU hosted the First Knowledge Contributors' Meeting, where outstanding training programs, courses, cases, teachers and
training partners of the Group in 2022 were selected and commended. A total of 83 business organizations actively applied for the
selection, which was conducted in multiple rounds by 144 business judges. Among more than 3000 outcomes of intellectual capital
competed with each other, 100 Best Cases of the Year, 10 Best Training Programs of the Year, 33 Best Training Partners of the Year,
50 Best Courses of the Year, and 62 Best Teachers of the Year were generated. The aim of the display and commendation of these
award-winning achievements is to encourage more outstanding BOE-ers to actively participate in talent empowerment, as well as the
development and application of intellectual capital, and to promote the sharing and dissemination of excellent experiences from the
internal.
4. Labor Outsourcing
□Applicable Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy, especially the cash dividend policy, was formulated, executed or revised in the Reporting Period:
□Applicable Not applicable
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts that the
Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders are
positive.
□Applicable Not applicable
Final dividend plan for the Reporting Period
Applicable □ Not applicable
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 0.61
Total shares as the basis for the profit distribution proposal (share) 37,668,177,369
Cash dividends (RMB) (tax inclusive) 2,297,758,819.51
Cash dividends in other forms (such as share repurchase) (RMB) 1,044,247,462.99
Total cash dividends (including those in other forms) (RMB) 3,342,006,282.50
Attributable profit (RMB) 6,594,097,131.00
Total cash dividends (including those in other forms) as % of total
145.45%
profit distribution (%)
Cash dividend policy adopted
If the Company is in a growth stage and has any plan for significant expenditure, in profit distribution, the proportion of cash dividends
shall be 20% or above.
Details about the proposal for profit distribution and converting capital reserve into share capital
Based on the total shares of 37,668,177,369 after the deduction of shares held through the special account for repurchase, the Company
66
BOE Technology Group Co., Ltd. Annual Report 2022
planned to distribute, with the undistributed profit, a cash dividend of RMB0.61 (tax inclusive) per 10 shares to all its shareholders. And
no bonus share was granted, nor was any capital reserve converted into share capital. If the total share capital of the Company changes
due to factors such as the conversion of convertible bonds to shares, share repurchases, the exercise of rights regarding equity incentives,
and the listing of increased shares after refinancing before the implementation of the distribution scheme, the adjustment will be conducted
according to the principle of "the distribution amount will be adjusted with a fixed distribution ratio". The specific distributed amount
shall be subject to the actual distributed amount. The said proposal is in compliance with the Company’s Articles of Association and
relevant approval procedure, and the independent directors have expressed their independent opinion on the proposal, which fully protects
the legal rights and interests of the minority investors.
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
Applicable □ Not applicable
1. Equity incentive
The Company held the 15th Meeting of the 9th Board of Directors and the 2nd Extraordinary General Meeting of 2020 on 27 August
2020 and 17 November 2020 respectively and deliberated and approved the 2020 Stock Option and Restricted Stock Grant Program,
in which the Company intends to implement the Equity Incentive Scheme, including both the Stock Option Incentive Scheme and the
Restricted Stock Incentive Scheme. On 30 October 2020, the Company received the Approval on the Implementation of the Equity
Incentive Scheme of BOE (J.G.Z. [2020] No. 77) from the State-owned Assets Supervision and Administration Commission of People's
Government of Beijing Municipality forwarded by Beijing Electronics Holding Co., Ltd, the actual controller, and the State-owned
Assets Supervision and Administration Commission of People's Government of Beijing Municipality approved in principle the
implementation of this incentive scheme by the Company. Following the approval of the Proposal on the First Grant of Stock Options
and Restricted Shares to Incentive Objects at the 20th Meeting of the 9th Board of Directors and the 8th Meeting of the 9th Supervisory
Committee, the Company disclosed the Announcement on Completion of Registration of the First Grant of the 2020 Stock Option and
Restricted Stock Incentive Scheme (Announcement No.: 2020-086) on 31 December 2020. Following the approval of the Proposal on
the Awarding of Reserved Stock Options to Incentive Objects at the 31st Meeting of the 9th Board of Directors and the 13th Meeting
of the 9th Supervisory Committee, the Company disclosed the Announcement on Completion of Registration of the Reserved and
Granted Stock Option of the 2020 Stock Option and Restricted Stock Incentive Scheme (Announcement No.: 2021-084) on 23 October
2021. The Company disclosed the Announcement on Adjustment of the Exercise Price of the Stock Option and the Restricted Share
Repurchase Price in the 2020 Stock Option and Restricted Stock Incentive Scheme of the Company (Announcement No.: 2022-059) on
30 August 2022. Since the equity distribution of the Company for 2021 has been completed, the restricted share repurchase price
involved in this incentive scheme is adjusted from RMB2.62/share to RMB2.41/share, the exercise price of the first grant of the stock
option is adjusted from RMB5.33/share to RMB5.12/share, and the exercise price of the reserved and granted stock option is adjusted
from RMB5.83/share to RMB5.62/share. The Company disclosed the Announcement on the Repurchase and Write-off of Certain
Restricted Shares (Announcement No.: 2022-060) and the Announcement on the Write-off of Certain Stock Options (Announcement
No.: 2022-061) on 30 August 2022, in which the Company intends to repurchase and cancel 6,153,700 shares of restricted shares and
cancel a total of 24,073,200 shares of stock options in this incentive scheme that have been awarded to incentive objects but have not
been exercised by them since some incentive objects voluntarily resigned for personal reasons. Moreover, the above-mentioned matters
regarding the repurchase and write-off of restricted shared were deliberated and approved in the First Extraordinary General Meeting
of Shareholders of 2022 held on 15 September 2022. Following the approval of the Proposal on the Achievement of Exercise Conditions
of the First Exercise Schedule for the Stock Option Granted by the Stock Option Incentive Scheme of 2020 and the Fulfillment of the
Exercise Conditions for the Stock Option Granted for the First Time, the Proposal on the Repurchase and Write-off of Certain
Restricted Shares and the Proposal for the Write-off of Certain Stock Options at the 13th Meeting of the 10th Board of Directors and
the 4th Meeting of the 10th Supervisory Committee, the Company disclosed the relevant announcements on the website of
cninfo.com.cn on 4 April 2023.
67
BOE Technology Group Co., Ltd. Annual Report 2022
Equity incentives for directors and senior management in the Reporting Period:
Applicable □ Not applicable
Unit: share
Number
Shares Exercise of
Number
Share Share feasible Shares price of Share Number of restricted
of The grant Number of
options options to exercised exercised options Market price restricted shares
released price of restricted
held at granted exercise during shares held at at the shares held newly
Name Office title shares for restricted shares held
the in the during the during the the period-end at the granted
the shares at the
period- Reporting the Reporting Reporting period- (RMB/share) period- during
Reporting (RMB/share) period-end
begin Period Reporting Period Period end begin the
Period
Period (RMB/share) Reporting
Period
Chairman of the
Chen
Board, Chief of 0 0 0 0 0 0 3.38 2,000,000 0 0 0 2,000,000
Yanshun
Executive Committee
Vice Chairman of the
Liu
Board, member of 0 0 0 0 0 0 3.38 1,800,000 0 0 0 1,800,000
Xiaodong
Executive Committee
Director, President,
Gao
Vice Chairman of 0 0 0 0 0 0 3.38 1,500,000 0 0 0 1,500,000
Wenbao
Executive Committee
Director, Member of
Executive Committee,
Sun Yun 0 0 0 0 0 0 3.38 1,500,000 0 0 0 1,500,000
Executive vice
president
Member of Executive
Feng Qiang Committee, Executive 0 0 0 0 0 0 3.38 750,000 0 0 0 750,000
vice president
Member of Executive
Wang
Committee, Executive 0 0 0 0 0 0 3.38 750,000 0 0 0 750,000
Xiping
vice president
Member of Executive
Feng Committee, Executive
0 0 0 0 0 0 3.38 1,000,000 0 0 0 1,000,000
Liqiong vice president, lead
counsel
Member of Executive
Zhang Yu Committee, Executive 0 0 0 0 0 0 3.38 634,000 0 0 0 634,000
vice president
Yang Member of Executive
0 0 0 0 0 0 3.38 634,000 0 0 0 634,000
Xiaoping Committee, Executive
68
BOE Technology Group Co., Ltd. Annual Report 2022
vice president, CFO
Senior vice president,
Guo
Chief 0 0 0 0 0 0 0 0 0 0 0 0
Huaping
Culture Officer
Liu Vice president,
0 0 0 0 0 0 3.38 750,000 0 0 0 750,000
Hongfeng Secretary of the Board
Miao Former senior
0 0 0 0 0 0 3.38 650,000 0 0 0 650,000
Chuanbin management
Xie Former senior
0 0 0 0 0 0 3.38 750,000 0 0 0 750,000
Zhongdong management
Total -- 0 0 0 0 -- 0 -- 12,718,000 0 0 -- 12,718,000
1. The restricted shares granted to the directors and senior management of the Company are restricted for a period of 24 months, 36 months and 48 months from
the grant date of this equity incentive on 21 December 2020. As at the end of the Reporting Period, all equity incentives received by the directors and senior
management of the Company were unlocked shares.
Note (if any) 2. Since March 2023, Mr. Miao Chuanbin and Mr. Xie Zhongdong were no longer the senior management (Professional Manager) and creased to hold any
position in the Company, its branches or majority-owned subsidiaries due to their departure, and the restricted shares granted to them will be repurchased and
cancelled in accordance with the provisions of this Incentive Plan;
3. In March 2023, Mr. Feng Qiang and Mr. Guo Huaping were engaged as the Company’s senior management (Professional Manager).
Appraisal of and Incentive for Senior Management
According to the Articles of Association, Management System for Professional Managers and the Performance Management System, members of the senior management of the Company are
appointed by the Board of Directors and sign the Appointment Contract and the Annual Target Responsibility Paper. The annual performance assessment and appointment period assessment will
be implemented. The annual performance assessment is determined by the annual task breakdown of the current year's targets and the appointment period targets, and the appointment period
assessment is based on medium- and long-term targets, and the salary and rewards are delivered according to the assessment results. Meanwhile, according to BOE's 2020 Stock Option and
Restricted Stock Incentive Scheme and relevant laws and regulations, the granted stock interests will be determined to be unlocked after the lock-up period based on the achievement of relevant
conditions.
69
BOE Technology Group Co., Ltd. Annual Report 2022
2. Implementation of Employee Stock Ownership Plans
□Applicable Not applicable
3. Other Incentive Measures for Employees
□Applicable Not applicable
XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
In line with the reform, the establishment of internal control regulation was enhanced according to the requirements for the establishment of internal control regulation of listed companies and the
Company's strategic requirements. Specifically, the internal control system was optimized and the internal control policies were revised, so as to guarantee the implementation of innovation and
reform and promote the compliance and efficient development of business.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□Yes No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
Integration Countermeasur Settlement Follow-up
Subsidiary Integration plan Problem
progress es taken progress settlement plan
N/A - - - - - -
XIV Internal Control Self-Evaluation Report or Independent Auditor’s Report on Internal Control
1. Internal Control Self-Evaluation Report
Disclosure date of the internal control self-evaluation
4 April 2023
report
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BOE Technology Group Co., Ltd. Annual Report 2022
Index to the disclosed internal control self-evaluation
On 4 April 2023, the Company disclosed 2022 Internal Control Appraisal Report, refer to www.cninfo.com.cn for details.
report
Evaluated entities’ combined assets as % of consolidated
97.80%
total assets
Evaluated entities’ combined operating revenue as % of
97.25%
consolidated operating revenue
Identification standards for internal control weaknesses
Weaknesses in internal control not related to financial
Type Weaknesses in internal control over financial reporting
reporting
Evaluation standards for internal defects not related to
financial reporting specified by the Company are as below:
The nature standards of internal control deficiency evaluation over Material weakness:
financial reporting determined by the Company are as follows: (1) The business scope of the Company violates national laws
Material weakness: In case of the following situations, it will be and regulations seriously;
deemed as that major defects (including but not limited to the (2) The decision-making procedure is not scientific, major
following situations) may occur: decision errors are released, the development strategies of the
(1) Directors, supervisors and Senior Management make the Company are deviated from severely and major property
malpractices; losses are caused for the Company;
(2) The enterprise corrects the released financial statements; (3) Safety and environmental accidents occur, resulting in
(3) The certified public accountant finds that there is a material major negative effects on the Company;
Nature standard misstatement in the current financial report, but the internal (4) A lot of senior management personnel and key technicians
control fails to find the misstatement in the process of operation; leave the Company;
(4) Supervision of the risk control and audit committee and the (5) Important business lacks system control or the system is
internal audit organization for internal control is ineffective. failure;
Serious weakness refers to one or combination of several control (6) Material weaknesses or serious weaknesses are not
items, and its severity and economic consequence are lower than corrected.
those of the material weaknesses but may still affect the real and Serious weakness refers to one or combination of several
accurate objective of the financial report. control items, and its severity and economic consequence are
The common weakness refers to other internal control weaknesses lower than those of the material weaknesses but may still
except for material weaknesses and serious weaknesses. affect the enterprise to deviate from the control goal.
The common weakness refers to other internal control defects
except for material weaknesses and Serious weakness.
The quantitative standards of internal control deficiency
evaluation over financial reporting determined by the Company
are as follows:
Material weakness: The amount reported incorrectly is ≥1‰* total The quantitative standards for internal control defects not
amount of assets of the Group (operating revenue) related to financial reporting determined by the Company are
Quantitative standard Serious weakness: 0.5‰*total amount of assets of the Group consistent with those over the financial reporting. See the left
(operating revenue)≤ the amount reported incorrectly<1‰*total side for details.
amount of assets of the Group (operating revenue)
Common weakness: 0.1‰*total group assets (operating
revenue)≤ the amount reported incorrectly <0.5‰*total group
assets (operating revenue)
Number of material weaknesses in internal control over
0
financial reporting
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BOE Technology Group Co., Ltd. Annual Report 2022
Number of material weaknesses in internal control not
0
related to financial reporting
Number of serious weaknesses in internal control over
0
financial reporting
Number of serious weaknesses in internal control not
0
related to financial reporting
2. Independent Auditor’s Report on Internal Control
Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We believe that the Company and important subsidiaries make valid internal control on financial report in all significant aspects on 31 December 2022 according to the Basic Rules on Enterprise
Internal Control and other relevant stipulations.
Independent auditor’s report on internal control disclosed or not Disclosed
Disclosure date 4 April 2023
The Company disclosed the Audit Report on Internal Control on 4 April 2023, for details,
Index to such report disclosed
please refer to http://www.cninfo.com.cn
Type of the auditor’s opinion Standard unqualified opinion
Material weaknesses in internal control not related to financial reporting No
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal control.
□Yes No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal control self-evaluation report issued by the Company’s Board.
Yes □ No
XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed Company Governance
Not applicable
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BOE Technology Group Co., Ltd. Annual Report 2022
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental protection authorities of China.
Yes □ No
Policies and industry standards pertaining to environmental protection
With the establishment of an integrated environment management system based on ISO 14001, the Company strictly complies with the laws and regulations such as the Environmental Protection
Law of the People's Republic of China, Water Pollution Prevention and Control Law, Air Pollution Prevention and Control Law and Law on the Prevention and Control of Environmental Pollution
by Solid Waste. The green environment management system was built in combination with the requirements of a series of management systems, such as ISO 9001, QC 080000, ISO 14001 and
ISO 50001.
Environmental protection administrative license
Corresponding environmental impact assessments have been conducted for all construction projects under the control of the Company in conformity with applicable national and local laws and
regulations, and corresponding administrative licenses have also been obtained.
The regulations for industrial emissions and the particular requirements for controlling pollutant emissions that are associated with production and operational activities.
Type of Name of Number of Distribution Discharge Approved
Way of Discharge Total Excessive
Name of polluter major major discharge of discharge standards total
discharge concentration/intensity discharge discharge
pollutants pollutants outlets outlets implemented discharge
COD Standard 55.63 mg/L 500 mg/L 159.38t 828.418t
emission
Beijing BOE
Waste after being Northwest
Optoelectronics
water Ammonia treated by 1 corner of None
Technology Co., 2.91 mg/L 45 mg/L 8.36t 59.173t
pollutant nitrogen sewage factory
Ltd.
treatment
system
The 4.5th Waste COD Standard 114.21 mg/L 500 mg/L 106.89t 385.3t
North side of
generation TFT- water Ammonia emission 1 None
factory 15.58 mg/L 45 mg/L 14.62t 54.69t
LCD production pollutant nitrogen after being
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BOE Technology Group Co., Ltd. Annual Report 2022
line of Chengdu treated by
BOE sewage
Optoelectronics treatment
Technology Co., system
Ltd.
COD Standard 30.98mg/L 380mg/L 105.83t 1081.55t
emission
Hefei BOE
Waste after being Northwest
Optoelectronics
water Ammonia treated by 1 corner of None
Technology Co., 1.51mg/L 30mg/L 5.21t 101.23t
pollutant nitrogen sewage factory
Ltd.
treatment
system
COD 1 (main 115.27mg/L 500mg/l 492.40t 1570.32t
Standard
wast East gate of
Ammonia emission
Beijing BOE water factory 17.70mg/L 45mg/l 74.86t 183.20t
Waste nitrogen after being
Display outlet)
water treated by None
Technology Co., COD 1(S2 42.83mg/L 500mg/l 6.25t 80.76t
pollutant sewage South gate of
Ltd. domestic
Ammonia treatment dormitory
sewage 25.45mg/L 45mg/l 3.63t 6.06t
nitrogen system area
outlet II)
COD Standard 135mg/L 350mg/L 768.1517t 3135.0363t
emission
Hefei Xinsheng Waste after being Northeast
Optoelectronics
water Ammonia treated by 1 side of None
Technology Co., 10.4mg/L 35mg/L 59.23t 313.5036t
Ltd. pollutant nitrogen sewage factory
treatment
system
COD Standard 79.12mg/L 500mg/L 102.84t 713.81t
emission
Erdos Yuansheng Waste after being
North side of
Optoelectronics water Ammonia treated by 1 None
Co., Ltd. factory 3.53mg/L 45mg/L 4.74t 76.82t
pollutant nitrogen sewage
treatment
system
The 6th generation COD Standard 36.67mg/L 500mg/L 140.28t 2443.16t
flexible Waste emission
AMOLED North side of
water Ammonia after being 1 None
production line of factory 17.30mg/L 45mg/L 67.23t 203.53t
Chengdu BOE pollutant nitrogen treated by
Optoelectronics sewage
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BOE Technology Group Co., Ltd. Annual Report 2022
Technology Co., treatment
Ltd. system
COD Standard 91.23mg/L 400mg/L 348.42t 1900.24t
emission
Chongqing BOE Waste after being
Optoelectronics South side of
water Ammonia treated by 1 None
Technology Co., factory 5.13mg/L 30mg/L 19.39t 146.17t
Ltd. pollutant nitrogen sewage
treatment
system
COD Standard 54.58mg/L 400mg/L 541.89t 4759.56t
emission
Hefei BOE Waste after being
Display North side of
water Ammonia treated by 1 None
Technology Co., factory 13.1mg/L 35mg/L 128.67t 416.46t
Ltd. pollutant nitrogen sewage
treatment
system
COD Standard 12.54 mg/L 500 mg/L 56.35t 297.50t
emission
Fuzhou BOE Waste after being Northeast
Optoelectronics
water Ammonia treated by 1 side of None
Technology Co., 0.26 mg/L 45 mg/L 1.18t 29.75t
Ltd. pollutant nitrogen sewage factory
treatment
system
COD Standard 20.69mg/L 500mg/L 78.84t 7130.58t
emission
Mianyang BOE Waste after being
Optoelectronics North side of
water Ammonia treated by 1 None
Technology Co., factory 1.71mg/L 45mg/L 6.53t 368.59t
Ltd. pollutant nitrogen sewage
treatment
system
COD Standard 11.01mg/L 400mg/L 21.3t 4171.2t
emission
Chongqing BOE
Waste after being
Display North side of
water Ammonia treated by 1 None
Technology Co., factory 1.78mg/L 35mg/L 2.5t 398.4t
pollutant nitrogen sewage
Ltd.
treatment
system
Wuhan BOE COD 23.96mg/L 30mg/L 115.67t 488.6t
Waste Standard Northeast
Optoelectronics 1 None
Technology Co., water Ammonia emission corner of 0.09mg/L 1.5mg/L 0.43t 24.45t
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BOE Technology Group Co., Ltd. Annual Report 2022
Ltd. pollutant nitrogen after being factory
treated by
sewage
treatment
system
COD Standard 71.2mg/L 500mg/L 239.53t 2215.01t
emission
Nanjing BOE Waste after being
Display South side of
water Ammonia treated by 1 None
Technology Co., factory 2.79mg/L 45mg/L 9t 183.67t
Ltd. pollutant nitrogen sewage
treatment
system
COD Standard 155.00mg/L 500mg/L 964.17t 4310.1t
emission
Chengdu BOE Waste after being Northwest
Display Sci-tech water Ammonia treated by 1 corner of None
14.03mg/L 45mg/L 87.27t 148.8t
Co., Ltd. pollutant nitrogen sewage factory
treatment
system
COD Discharged 135.453mg/L 500mg/L 11.103t 88.491t
BOE (Hebei) into sewage
Waste
Mobile Display treatment North side of
water Ammonia 1 None
Technology Co., plant through factory 6.583mg/L 45mg/L 0.54t 7.754t
Ltd. pollutant nitrogen
municipal
pipes
Industrial
and domestic
sewage of the
project, upon
Standard
treatment, is
Yunnan emission
discharged to
Chuangshijie Waste after being Northwest
the industrial
Optoelectronics water COD treated by 1 corner of 127.6mg/L 500mg/L 6.37t None
Technology Co., sewage plant
pollutant sewage factory
Ltd. of Linkong
treatment
Industrial
system
Park in
Dianzhong
New Zone,
Kunming,
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BOE Technology Group Co., Ltd. Annual Report 2022
Yunnan
Province and
included in
the total
discharge of
the sewage
plant.
Industrial
and domestic
sewage of the
project, upon
treatment, is
discharged to
the industrial
sewage plant
of Linkong
Industrial
Ammonia
13.9mg/L 45mg/L 0.69t Park in
nitrogen
Dianzhong
New Zone,
Kunming,
Yunnan
Province and
included in
the total
discharge of
the sewage
plant.
77
BOE Technology Group Co., Ltd. Annual Report 2022
Treatment of pollutants
The waste water which is generated by each subordinate subsidiary of the Company can be divided in to industrial waste water and
household waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separately according to
different natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water is collected by
rain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory, industrial waste water
is discharged into sewage treatment factory through municipal pipe network for intense treatment. Household waste water comprises
household fecal waste water and canteen oily waste water etc, after pretreatment, the waste water is discharged into municipal sewage
treatment factory. All industrial and household waste water is not discharged directly, and the concentration and total amount of drainage
satisfy the requirements of national and local relevant standards.
The exhaust gas which is emitted by each subordinate subsidiary mainly comes from technology exhaust gas during production process,
generally including acid exhaust gas, alkaline exhaust gas, special exhaust gas and organic exhaust gas etc. Various exhaust gas can be
emitted after being treated by independent emission treatment system. The emission concentration and total amount satisfy the national
and local relevant standards.
The waste materials which are generated by each subordinate subsidiary can be divided into general industrial solid waste, hazardous
waste materials and household waste materials, and they all handed over to qualified recycler for regular treatment. The disposal rate
of hazardous waste materials is 100%.
Self-monitoring Plan
Currently, major pollutant-discharging units subordinated to the Company have worked out corresponding self-monitoring plan
according to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectively
formulated by Beijing BOE Display Technology Co., Ltd. and Beijing BOE Optoelectronics Technology Co., Ltd. have been published
via Beijing Environmental Information Disclosure Platform for Enterprises and Institutions and the Company’s official website.
Contingency Plan for Emergent Environmental Incidents
Every subsidiary of the Company has formulated, updated and filed corresponding contingency plan for emergent environmental
incidents in local environmental protection departments according to their requirements. However, such contingency plan consists of
comprehensive plan, special plan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardous
wastes and dangerous chemicals etc. Meanwhile, drills must be conducted regularly.
Input in environment governance and protection and payment of environmental protection tax
The Company unremittingly advocates and practices the idea of sustainable environmental development. By continuously increasing
investment in environmental governance and protection, and improving the production and operation processes regarding
environmental impacts, the Company effectively minimized the impact of operation on the environment. Subsidiaries of the Company
that emit taxable pollutants to the environment shall strictly comply with the requirements of the Environmental Protection Tax Law
of the People's Republic of China and the local government and pay the environmental protection taxes.
Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
Applicable □ Not applicable
To respond to the national "3060" double carbon goal and guarantee the unified planning and effective implementation of carbon
emission peak and carbon neutrality of the Company, BOE, in 2022, clearly raised a carbon emission management policy featuring
"comprehensive coordination, continuous reduction in carbon emissions, value extension and green development". Meanwhile, it
included the performance in carbon emission management in the Company's performance management system to promote the
Company's management of carbon emission.
On the basis of the "624" action plan for peaking carbon emissions, more detailed measures and action plans for green management,
green products, green manufacturing, green recycling, green investment and green actions were implemented. Meanwhile, in order to
78
BOE Technology Group Co., Ltd. Annual Report 2022
improve the digital management of the Company's "double carbon" affairs, an efficient and unified enterprise management and control
platform was developed to realize full-process management featuring optimization and control at the source, continuous improvements
in the energy structure, dynamic control of processes, and effective analysis of data.
Subsidiaries achieve the goal of energy-saving and emission reduction through the operation of the energy management system and
the incentive energy-saving program through refined management on the energy management platform. Results of energy-saving and
emission reduction: The number of energy-saving and emission reduction projects was 151 in total in 2022. As at the end of December,
165.2831 million kWh of electricity, 8.5354 million tons of water, 48,300 cubic meters of natural gas, 13.5584 million cubic meters of
nitrogen, and 3.4 thousand cubic meters of vapor had been saved.
Meanwhile, in order to cope with the challenges and opportunities brought by carbon trading, subsidiaries in Beijing actively conducted
carbon emission trading and accumulated carbon trading experience to assist the Company in achieving its goals of carbon emission
peak and carbon neutrality.
Administrative penalties imposed for environmental issues during the Reporting Period
Influence on
Rectification
Name Reason Case Result production and
measures
operation
N/A N/A N/A N/A N/A N/A
Other environment information that should be disclosed
No
Other related environment protection information
The Company fully considers design for recycling, universal design and minimal design of products in the product design stage, adheres
to the green management concept of the full life cycle of products, and follows the principles of minimizing energy and resource
consumption, minimizing the impact on the ecological environment and maximizing the recyclability.
In order to reduce the impact of the logistics transportation process on the environment, the Company and its partners constantly
improve the transportation management system, carry out reasonable layout and planning of transportation stations and routes, improve
the delivery efficiency, and reduce greenhouse gas emissions.
II Social Responsibility
BOE discloses its Corporate Social Responsibility Report every year. As of 2022, BOE had consecutively disclosed Social
Responsibility Report for 13 years. Please view and download such report via official website of BOE www.boe.com or Cninfo .
III Consolidation and Expansion of Poverty Alleviation Outcomes, and Rural Revitalization
To thoroughly implement the national strategy of rural revitalization, BOE made concerted and effective efforts in education
innovation, health support and consumption support. By promoting the effective coordination between the consolidation and expansion
of the achievements of poverty alleviation and rural revitalization, BOE composed a new chapter of rural revitalization.
1. Education innovation
BOE always aims to use innovative technology to promote education in remote areas and support rural revitalization. We continued
the implementation of the "Lighting the Way to Growth" education project for public benefits. BOE donated 40 smart classrooms in
Huize County, Yunnan Province, Taihu County, Anhui Province, and Xixiang County, Shaanxi Province, in 2022. Equipped with
BOE's smart solutions for education in an all-round way, these classrooms facilitated the hardware construction and improved the
software capacity of local township center schools of these counties. Moreover, through comprehensive training, BOE contributed to
the improvement of the basic teaching quality and digital teaching capacity of local teachers. In total, the project has resulted in more
79
BOE Technology Group Co., Ltd. Annual Report 2022
than 70 smart classrooms that have benefited more than 24,000 students and more than 1,000 teachers in remote areas. Thus, the project
has comprehensively promoted digital education in remote areas, giving more and more children and teenagers in remote areas in China
access to high-quality, digital resources of education.
2. Health support
BOE gave play to its own advanced medical resources and talent advantages to continuously pay attention to the social development
of health care. To support the Rural Angel Project initiated by the China Foundation for Rural Development in Taihu County, Anhui
Province, BOE, in 2022, provided "angel kits for itinerant medical services" for 200 grass-roots doctors from 15 township health
centers, one community health service center, 10 neighborhood committee health stations, and 174 administrative village health stations
in Taihu County. The provision of hardware and equipment for routine itinerant medical services, especially for older people and
infants in rural areas, improved the basic medical capacity of rural doctors. Hefei BOE Hospital donated RMB1 million to Anhui Red
Cross Foundation to help patients in need of kidney dialysis, or with cataract or heart diseases (congenital heart diseases and valvular
heart diseases); Chengdu BOE Hospital visited the 3,500-meter-high plateau areas of Dege County in Garze Tibetan Autonomous
Prefecture twice to provide medical services for Tibetan compatriots, including free cataract surgeries for 23 Tibetans and free surgeries
for three patients with a cleft lip or palate after the screening of infants and children with a cleft lip or palate; moreover, Chengdu BOE
Hospital visited Liangshan Yi Autonomous Prefecture twice to carry out congenital heart disease screening, and completed more than
30 congenital heart disease surgeries; additionally, other hospitals also carried out plenty of health-related public welfare events, such
as free diagnosis and knowledge publicity.
3. Consumption support
Through "purchases as assistance", BOE gave play to the centralized procurement platform of BOE's business company on the basis
of farmer-benefiting policies. By establishing a long-term assistance mechanism with the assistance target via the business mode of
"purchases as assistance", the BOE Chengqi Pasture and Source Area was developed. High quality agricultural and sideline products
with the feature of "multitudinous, small-sized and dispersed" from poor populations were integrated, as 411 kinds of green, organic
and healthy food ingredients were procured in a centralized manner, including Yandaoxiang series (red beans, mung beans, barley,
black rice, etc.) Shennongjia wild flower honey, and Maolanshanyu mulberry fungus. The mechanism not only promoted the local
development of agricultural products, but also guaranteed the food safety of BOE's employees. Additionally, more than RMB10 million
of consumption support in 2022 facilitated the economic growth of the assistance target. Moreover, various digital means for "digital
support for agriculture", such as e-commerce live streaming for agricultural assistance, were adopted to expand the sales channels of
the supported products, seek more market opportunities for them, and promote the standardization, branding and commercialization of
the production of agricultural products. Furthermore, support groups were organized and their functions and responsibilities were fully
exerted to continuously expand the resource pool of supported agricultural products. With these efforts, BOE strove to expand and
create an inventory of full-range and characteristic agricultural products with core competitiveness, so as to accumulate practical
experience for long-term, reproducible and characteristic rural revitalization.
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BOE Technology Group Co., Ltd. Annual Report 2022
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and other Entities Fulfilled
in the Reporting Period or Ongoing at the Period-end
Applicable □ Not applicable
Date of
Type of Term of
Commitment Promisor Details of commitment commitment Fulfillment
commitment commitment
making
Commitments made in share
- - - - -
reform
Commitments made in
acquisition documents or
- - - - -
shareholding alteration
documents
Commitments made in time of
- - - - -
asset restructuring
Commitments made in time of
- - - - -
IPO or refinancing
Equity incentive commitments - - - - -
The Chairman of the In accordance with the Announcement on the Commitments of not
Board: Mr. Chen Yanshun Reducing the Shareholding by Some Directors, Supervisors and During the Fulfilled for
Senior Management (No.: 2020-001) disclosed by the Company on term as former
Vice Chairman of the
22 February 2020, some of the Company’s directors, supervisors director, supervisor Mr.
Board: Mr. Liu Xiaodong
and senior managers, based on their confidence in the Company’s supervisor
Director: Ms. Sun Yun and He Daopin,
future development and their recognition of the corporate value, or senior
Mr. Gao Wenbao former senior
promise not to reduce or transfer any shares held in BOE (A shares), manager,
Supervisor: Mr. Xu not to entrust others to manage specific shares, not to authorize and in six management
Other commitments made to Yangping, Mr. Yan Jun and Other 21 February
others to execute their voting right by means of any agreement, trust months after Mr. Yao
minority interests Mr. Teng Jiao commitments 2020
or other arrangements and not to require the Company to repurchase the Xiangjun, Mr.
Senior Management: Ms. any specific shares during the terms of office and within 6 months expiration Zhang
Feng Liqiong and Mr. Liu after their tenures expire so as to promote the Company’s of the term
Zhaohong and
Hongfeng continuous, stable and healthy development and maintain the rights (the term
and interests of the Company and all shareholders. For any newly- determined Mr. Zhong
Former Supervisor: Mr. He Huifeng;
added shares derived from the assignment of rights and interests when taking
Daopin including the share donation and the reserved funds converted into office). ongoing for
Former Senior share capital during the period (corresponding to the specific other directors,
81
BOE Technology Group Co., Ltd. Annual Report 2022
Management: Mr. Yao shares), they shall still keep their promises till the commitment supervisors and
Xiangjun, Mr. Zhang period expires. senior
Zhaohong, Mr. Zhong management
Huifeng, Mr. Xie
Zhongdong and Mr. Miao
Chuanbin
Other commitments - - - - -
Executed on time or not Yes
Specific reasons for failing to
fulfill commitments on time and N/A
plans for next step (if any)
82
BOE Technology Group Co., Ltd. Annual Report 2022
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still within
the forecast period, explain why the forecast has been reached for the Reporting Period.
□Applicable Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable Not applicable
No such cases in the Reporting Period.
IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion” on
the Financial Statements
□ Applicable Not applicable
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent
Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on the Financial
Statements of the Reporting Period
□ Applicable Not applicable
VI YoY Changes to Accounting Policies, Estimates or Correction of Material Accounting Errors
Applicable □ Not applicable
The Group, in 2022, implemented the Accounting Standards for Business Enterprises and relevant provisions and guidelines
promulgated by the Ministry of Finance in recent years, which mainly includes:
- The provision in the Interpretation No. 15 of Accounting Standards for Business Enterprises (C.K. [2021] No. 35) ("Interpretation
No. 15") of "accounting treatment of external sales of products or by-product produced by the enterprise before the fixed assets reach
the intended usable state or during the research and development process";
- The provision in Interpretation No. 15 of "judgment on loss-making contracts"; and
- Notice on Matters Related to the Application of the Regulations on the Provisions on Accounting Treatment of Rent Concessions
Associated with the COVID-19 Pandemic (C.K. [2022] No.13).
- The provision in the Interpretation No. 16 of Accounting Standards for Business Enterprises (C.K. [2022] No. 31) ("Interpretation
No. 16") of "accounting treatment of the income tax effect of financial instrument related dividend whose issuer is classified as
equity instrument"; and
- The provision in Interpretation No. 16 of "accounting treatment of share-based payment in cash settlement modified into share-
based payment in equity settlement by the enterprise"
The above changes in accounting policies will not exert a significant impact on the Company's financial condition, operating result
and cash flow.
83
BOE Technology Group Co., Ltd. Annual Report 2022
VII YoY Changes to the Scope of the Consolidated Financial Statements
Applicable □ Not applicable
3 subsidiaries were established in the current period, and they are BOE Environmental and Energy Technology Co., Ltd. with 100%
shareholding, Chengdu BOE Display Technology Co., Ltd. with 52.63% shareholding and Beijing BOE Chuangyuan Technology Co.,
Ltd. with 79.31% shareholding.
2 subsidiaries were disposed in the current period.BOE Smart Retail (Hong Kong) Co., Ltd.a subsidiary of the Group, sold its shares
of SES Imagotag SA Co.Ltd.. After the sale was completed,the Group has lost control of SES Imagotag SA Co.Ltd.. The shareholding
ratio decreased to 32.56%.During the year, SES Imagotag SA Co.Ltd. made contributions to BOE Art Cloud Technology Co.,
Ltd.,which is an associate of the Group with its 51% equity interest in BOE Digital Technology Co., Ltd..After the completion of equity
delivery，the Group has lost control of BOE Digital Technology Co., Ltd.. The shareholding ratio decreased to 15%.
VIII Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor KPMG Huazhen (LLP)
The Company’s payment to the domestic independent auditor
1,220
(RMB’0,000)
How many consecutive years the domestic independent auditor
18
has provided audit service for the Company
Names of the certified public accountants from the domestic
Su Xing, Chai Jing
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
from the domestic independent auditor have provided audit 1 year for Su Xing, 3 years for Chai Jing
service for the Company
Name of the foreign independent auditor (if any) N/A
The Company’s payment to the foreign independent auditor
0
(RMB’0,000) (if any)
How many consecutive years the foreign independent auditor
N/A
has provided audit service for the Company (if any)
Names of the certified public accountants from the foreign
independent auditor writing signatures on the auditor’s report (if N/A
any)
How many consecutive years the certified public accountants
from the foreign independent auditor have provided audit service N/A
for the Company (if any)
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
□Yes No
Independent auditor, financial advisor or sponsor engaged for internal control audit
Applicable □ Not applicable
During the year, the Company engaged KPMG Huazhen (LLP) as the Company's internal control audit accounting firm, and the
Company paid KPMG Huazhen (LLP) total compensation of RMB12.2 million for the 2022 annual audit and internal control audit.
IX Possibility of Delisting after Disclosure of this Report
□ Applicable Not applicable
X Insolvency and Reorganization
□ Applicable Not applicable
No such cases in the Reporting Period.
84
BOE Technology Group Co., Ltd. Annual Report 2022
XI Major Legal Matters
Applicable □ Not applicable
Involved Execution Disclo Index to
Decisions
General information amount Provision Progress of sure disclosed
and effects
(RMB’0,000) decisions date information
Litigations for 2022
(including carryforwards 25,476.46 No N/A N/A N/A - N/A
in previous years )
XII Punishments and Rectifications
□ Applicable Not applicable
No such cases in the Reporting Period.
XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□ Applicable Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with any
85
BOE Technology Group Co., Ltd. Annual Report 2022
related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in any other
finance business with any related parties.
7. Other Major Related-Party Transactions
Applicable □ Not applicable
None
Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on Capital Increase to Tianjin Xianzhi Chain Investment
15 March 2022 www.cninfo.com.cn
Center (Limited Partnership) and the Related-party Transaction
Announcement on Estimated Continuing Related-party Transactions for 2022 31 March 2022 www.cninfo.com.cn
Announcement on the Receipt of Equity Interests in Hefei BOE Display
20 July 2022 www.cninfo.com.cn
Technology Co., Ltd. and the Related-party Transaction
Announcement on Capital Increase to BEHC Industrial Investment Co., Ltd.
17 November 2022 www.cninfo.com.cn
and the Related-party Transaction
Announcement on the Receipt of Equity Interests in Hefei BOE Display
30 December 2022 www.cninfo.com.cn
Technology Co., Ltd. and the Related-party Transaction
XV Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable Not applicable
No such cases in the Reporting Period.
86
BOE Technology Group Co., Ltd. Annual Report 2022
2. Major Guarantees
Applicable □ Not applicable
Unit: RMB'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Guarantee
Disclosure date Counter
Actual Having for a
of the guarantee Line of Actual occurrence Type of Collateral
Obligor
line date
guarantee
guarantee guarantee (if Term of guarantee expired or related
guarantee
amount (if any) not party or
announcement any)
not
N/A
Guarantees provided by the Company as the parent for its subsidiaries
Guarantee
Disclosure date Counter
Actual Having for a
of the guarantee Line of Actual occurrence Type of Collateral
Obligor
line date
guarantee
guarantee guarantee (if Term of guarantee expired or related
guarantee
amount (if any) not party or
announcement any)
not
Ordos YuanSheng
30 November 2017-3-17 to 2027-3-
Optoelectronics 550,987 15 March 2017 118,637 Joint-liability N/A N/A Not Not
2016 17
Co., Ltd.
Chengdu BOE
Optoelectronics
24 April 2017 2,275,979 30 August 2017 1,623,979 Joint-liability N/A N/A 2017-9-6 to 2029-9-6 Not Not
Technology Co.,
Ltd.
The secured
Hefei BOE party provides
Display 30 November
1,694,774 30 August 2017 744,941 Joint-liability N/A a counter 2017-9-7 to 2027-9-7 Not Not
Technology Co., 2016
Ltd. guarantee for
the guarantor
Fuzhou BOE
Optoelectronics 9 December 2016-12-19 to 2026-7-
1,347,157 8 November 2016 234,099 Joint-liability N/A N/A Not Not
Technology Co., 2015 4
Ltd.
The secured
Mianyang BOE party provides
2018-9-26 to 2031-9-
Optoelectronics 18 May 2018 2,111,549 18 September 2018 1,841,790 Joint-liability N/A a counter Not Not
Co., Ltd. 26
guarantee for
the guarantor
Chongqing BOE The secured 2020-12-31 to 2033-
27 April 2020 2,050,189 29 December 2020 1,245,675 Joint-liability N/A Not Not
Display party provides 12-31
87
BOE Technology Group Co., Ltd. Annual Report 2022
Technology Co., a counter
Ltd. guarantee for
the guarantor
The secured
Wuhan BOE party provides
Optoelectronics 2019-8-23 to 2032-8-
25 March 2019 2,027,279 16 August 2019 1,523,558 Joint-liability N/A a counter Not Not
Technology Co., 23
Ltd. guarantee for
the guarantor
The secured
Nanjing BOE party provides
Display 23 September 2021-5-12 to 2026-5-
180,000 12 May 2021 90,000 Joint-liability N/A a counter Not Not
Technology Co., 2020 31
Ltd. guarantee for
the guarantor
The secured
Nanjing BOE party provides
Display 23 September
120,000 12 May 2021 120,000 Joint-liability N/A a counter 2021-5-12 to 2026-6-6 Not Not
Technology Co., 2020
Ltd. guarantee for
the guarantor
The secured
Nanjing BOE party provides
Display 23 September 2021-7-29 to 2025-6-
109,308 29 July 2021 27,346 Joint-liability N/A a counter Not Not
Technology Co., 2020 17
Ltd. guarantee for
the guarantor
The secured
Nanjing BOE party provides
Display 23 September 2021-8-13 to 2025-4-
19,098 13 August 2021 6,250 Joint-liability N/A a counter Not Not
Technology Co., 2020 28
Ltd. guarantee for
the guarantor
The secured
Nanjing BOE party provides
Display 23 September 2021-12-27 to 2026-8-
10,500 27 December 2021 4,500 Joint-liability N/A a counter Not Not
Technology Co., 2020 24
Ltd. guarantee for
the guarantor
The secured
party provides
Chengdu BOE 2020-6-15 to 2042-6-
27 April 2020 240,000 15 June 2020 140,309 Joint-liability N/A a counter Not Not
Hospital Co., Ltd. 30
guarantee for
the guarantor
Total approved line for such 0 Total actual amount of such -913,426
88
BOE Technology Group Co., Ltd. Annual Report 2022
guarantees in the Reporting Period guarantees in the Reporting
(B1) Period (B2)
Total approved line for such Total actual balance of such
guarantees at the end of the Reporting 12,736,819 guarantees at the end of the 7,721,084
Period (B3) Reporting Period (B4)
Guarantees provided between subsidiaries
Guarantee
Disclosure date Counter
Actual Having for a
of the guarantee Line of Actual occurrence Type of Collateral
Obligor
line date
guarantee
guarantee guarantee (if Term of guarantee expired or related
guarantee
amount (if any) not party or
announcement any)
not
Yaoguang New
Energy 2020-9-30 to 2034-9-
N/A 3,600 30 September 2020 3,443 Joint-liability N/A N/A Not Not
(Shouguang) Co., 30
Ltd.
Suzhou Industrial
Park Taijing 2020-9-30 to 2034-9-
N/A 2,800 30 September 2020 2,678 Joint-liability N/A N/A Not Not
Photovoltaic Co., 30
Ltd.
Qingmei Solar
Energy 2020-9-30 to 2034-9-
N/A 3,300 30 September 2020 2,806 Joint-liability N/A N/A Not Not
Technology 30
(Lishui) Co., Ltd.
Qinghong Solar
Energy 2020-9-30 to 2034-9-
N/A 1,700 30 September 2020 1,446 Joint-liability N/A N/A Not Not
Technology 30
(Jinhua) Co., Ltd.
Qinghui Solar
Energy 2020-9-30 to 2034-9-
N/A 1,100 30 September 2020 935 Joint-liability N/A N/A Not Not
Technology 30
(Jinhua) Co., Ltd.
Qinghao Solar
Energy Joint-liability, Equity 2017-12-18 to 2032-
N/A 890 18 December 2017 570 N/A Not Not
Technology pledge interests 12-18
(Jinhua) Co., Ltd.
Xiangqing Solar
Energy
Joint-liability, Equity 2017-12-18 to 2032-
Technology N/A 3,476 18 December 2017 1,888 N/A Not Not
(Dongyang) Co., pledge interests 12-18
Ltd
Qingyue Solar
Energy Joint-liability, Equity 2017-12-18 to 2032-
N/A 960 18 December 2017 522 N/A Not Not
Technology pledge interests 12-18
(Wuyi) Co., Ltd
Qingyou Solar N/A 2,210 18 December 2017 1,430 Joint-liability, Equity N/A 2017-12-18 to 2032- Not Not
89
BOE Technology Group Co., Ltd. Annual Report 2022
Energy pledge interests 12-18
Technology
(Longyou) Co.,
Ltd
Qingfan Solar
Energy Joint-liability, Equity 2017-12-18 to 2032-
N/A 1,855 18 December 2017 1,008 N/A Not Not
Technology pledge interests 12-18
(Quzhou) Co., Ltd
Taihang Electric
Power 2020-12-3 to 2034-12-
N/A 300 3 December 2020 261 Joint-liability N/A N/A Not Not
Technology 3
(Ningbo) Co., Ltd
Guoji Energy
2020-12-3 to 2034-12-
(Ningbo) Co., N/A 1,800 3 December 2020 1,567 Joint-liability N/A N/A Not Not
Ltd. 3
Hongyang Solar
Energy Power 2020-12-3 to 2034-12-
N/A 2,500 3 December 2020 2,176 Joint-liability N/A N/A Not Not
Generation (Anji) 3
Co., Ltd.
Ke’en Solar
Energy Power
2020-12-3 to 2034-12-
Generation N/A 1,600 3 December 2020 1,393 Joint-liability N/A N/A Not Not
(Pingyang) Co., 3
Ltd.
Dongze
Photovoltaic
2020-12-3 to 2034-12-
Power Generation N/A 1,400 3 December 2020 1,219 Joint-liability N/A N/A Not Not
(Wenzhou) Co., 3
Ltd.
Aifeisheng
Investment and
2020-12-3 to 2034-12-
Management N/A 700 3 December 2020 609 Joint-liability N/A N/A Not Not
(Wenzhou) Co, 3
Ltd.
Beijing BOE
Energy Charging 2017-10-24 to 2032-
N/A 12,800 23 October 2017 12,430 Pledge N/A Not Not
Technology Co., right 10-23
Ltd.
Beijing BOE
Energy Charging 2018-9-26 to 2032-12-
N/A 20,560 15 August 2018 14,240 Pledge N/A Not Not
Technology Co., right 21
Ltd.
Beijing BOE
Charging 2017-12-1 to 2032-12-
Energy N/A 25,418 28 November 2017 21,418 Pledge N/A Not Not
right 1
Technology Co.,
90
BOE Technology Group Co., Ltd. Annual Report 2022
Ltd.
Hefei BOE 2018-4-27 to 2036-4-
27 April 2018 130,000 27 April 2018 124,500 Joint-liability N/A N/A Not Not
Hospital Co., Ltd. 27
The secured
Beijing BOE Life party provides
2021-12-29 to 2039-
Technology Co., N/A 60,000 29 December 2021 20,000 Joint-liability N/A a counter Not Not
12-28
Ltd. guarantee for
the guarantor
Total approved line for such Total actual amount of such
guarantees in the Reporting Period 208,938 guarantees in the Reporting -67,635
(C1) Period (C2)
Total approved line for such Total actual balance of such
guarantees at the end of the Reporting 487,907 guarantees at the end of the 216,540
Period (C3) Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee amount
Total guarantee line approved in the
208,938 in the Reporting Period -981,061
Reporting Period (A1+B1+C1)
(A2+B2+C2)
Total approved guarantee line at the Total actual guarantee balance
end of the Reporting Period 13,224,726 at the end of the Reporting 7,937,624
(A3+B3+C3) Period (A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net
58.33%
assets
Of which:
Balance of guarantees provided for shareholders, actual controller and their
0
related parties (D)
Balance of debt guarantees provided directly or indirectly for obligors with
124,500
an over 70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the
1,133,153
Company’s net assets (F)
Total of the three amounts above (D+E+F) 1,257,653
Joint responsibilities possibly borne or already borne in the Reporting
N/A
Period for undue guarantees (if any)
Provision of external guarantees in breach of the prescribed procedures (if
N/A
any)
Note: 1. The Proposal on Provision of Guarantee by A Subsidiary of Beijing BOE Energy Technology Co., Ltd. for the 200,000 kW Photovoltaic Project of Sonid Right Banner was approved by
voting at the 2021 Annual General Meeting of BOE Technology Group Co., Ltd. on 28 April 2022, but the guarantee is no longer implemented due to the change of business;
91
BOE Technology Group Co., Ltd. Annual Report 2022
2. The Proposal on Provision of Guarantee for BOE Vision Electronic Technology Co., Ltd. was approved by voting at the 2021 Annual General Meeting of BOE Technology Group Co., Ltd. on
28 April 2022 and the guarantee liabilities regarding the item have not occurred by 31 December 2022.
Compound guarantees
None
92
BOE Technology Group Co., Ltd. Annual Report 2022
3. Cash Entrusted for Wealth Management
(1) Cash Entrusted for Wealth Management
Applicable □ Not applicable
Overviews of cash entrusted for wealth management during the Reporting Period
Unit: RMB'0,000
Unrecovered
Unrecovered
overdue amount
Specific type Capital resources Amount incurred Undue balance overdue
with provision for
amount
impairment
Bank structured
Self-owned funds 1,695,600 1,689,920 0 0
deposit
Total 1,695,600 1,689,920 0 0
Particulars of entrusted cash management with single significant amount or low security and bad liquidity
□ Applicable Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for entrusted
asset management
□ Applicable Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVI Other Significant Events
Applicable □ Not applicable
1. On 18 October 2019, the Company disclosed the Announcement on the Company’s Application for CSRC’s Approval for its Public
Issue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801 Approval from
CSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominal value no more than
RMB30 billion to qualified investors.
Bond name Abbr. Bond code Date of issue Maturity
2019 Public Offering of Renewable Corporate Bonds of
19BOEY1 112741 28 October 2019 29 October 2022
BOE (for qualified investors) (Phase I)
2020 Public Offering of Renewable Corporate Bonds of
BOE (for qualified investors) (Phase I) (epidemic 20BOEY1 149046 27 February 2020 28 February 2023
prevention and control bonds)
2020 Public Offering of Renewable Corporate Bonds of
BOE (for qualified investors) (Phase II) (epidemic 20BOEY2 149065 18 March 2020 19 March 2023
prevention and control bonds)
2020 Public Offering of Renewable Corporate Bonds of 20BOEY3 149108 24 April 2020 27 April 2023
93
BOE Technology Group Co., Ltd. Annual Report 2022
BOE (for qualified investors) (Phase III) (epidemic
prevention and control bonds)
2022 Public Offering of Renewable Corporate Bonds of
BOE (for professional investors) (Digital Economy) 22BOEY1 149861 24 March 2022 25 March 2025
(Phase I)
The Company disclosed 2022 "20BOEY1" Interest Payment Announcement (Announcement No. 2022-006) on 24 February 2022. The
interest payment plan was RMB36.40 (including tax) every ten bonds. The Company disclosed 2022 "20BOEY2" Interest Payment
Announcement (Announcement No. 2022-013) on 17 March 2022. The interest payment plan was RMB35.40 (including tax) per ten
bonds. The Company disclosed 2022 "20BOEY3" Interest Payment Announcement (Announcement No. 2022-037) on 23 April 2022.
The interest payment plan was RMB35.00 (including tax) per ten bonds. On 9 September 2022, the Company disclosed the
Announcement on Not Exercising the Issuer’s Renewal Option for the 2019 Public Offering of Renewable Corporate Bonds of BOE
(for Qualified Investors) (Phase I) (Announcement No. 2022-067). 19BOEY1 will reach its maturity of three years on 28 October 2022.
As per the relevant Prospectus and Listing Announcement, the Company has decided not to exercise the issuer’s renewal option on
19BOEY1 and will fully redeem the said bonds instead. On 27 October 2022, the Company disclosed the Announcement on the
Redemption of Corporate Bonds “19BOEY1” with Interest & the Delisting of the Bonds (Announcement No. 2022-073). The Company
will repay on 31 October 2022 the principals of the said bonds, together with the interest from 29 October 2021 to 28 October 2022,
and delist the bonds. The Company disclosed the Announcement on Not Exercising the Issuer’s Renewal Option for the 2020 Public
Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds)
(Announcement No. 2023-001) on 7 January 2023, and the third anniversary of 20BOEY1 falls on 27 February 2023. According to the
relevant provisions of the Prospectus and the Listing Declaration, the Company decides not to exercise the renewal option of bond
issuer. That is, the current bonds are to be fully redeemed. The Company disclosed the Announcement on Not Exercising the Issuer’s
Renewal Option for the 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic
prevention and control bonds) (Announcement No. 2023-002) on 31 January 2023, and the third anniversary of 20BOEY2 falls on 18
March 2023. According to the relevant provisions of the Prospectus and the Listing Declaration, the Company decides not to exercise
the renewal option of bond issuer. That is, the current bonds are to be fully redeemed. As the Company disclosed the Announcement
on the Redemption of the Principal and Interest of the "20BOEY1" Corporate Bonds and the De-listing of the Bonds (Announcement
No. 2023-005) on 24 February 2023, it will pay the interest of the bonds generated between 28 February 2022 and 27 February 2023,
as well as the principal of the bonds, on 28 February 2023, and de-list the bonds. The Company disclosed the Announcement on Not
Exercising the Issuer’s Renewal Option for the 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors)
(Phase III) (epidemic prevention and control bonds) (Announcement No. 2023-008) on 15 March 2023, and the third anniversary of
20BOEY3 falls on 27 April 2023. According to the relevant provisions of the Prospectus and the Listing Declaration, the Company
decides not to exercise the renewal option of bond issuer. That is, the current bonds are to be fully redeemed. As the Company disclosed
the Announcement on the Redemption of the Principal and Interest of the "20BOEY2" Corporate Bonds and the De-listing of the Bonds
(Announcement No. 2023-009) on 16 March 2023, it will pay the interest of the bonds generated between 19 March 2022 and 18 March
2023, as well as the principal of the bonds, on 20 March 2023, and de-list the bonds. The Company disclosed 2023 "22BOEY1" Interest
Payment Announcement (Announcement No. 2023-010) on 23 March 2023. The interest payment plan was RMB35.00 (including tax)
every ten bonds.
2. On 16 January 2021, the Company disclosed the Announcement on the Resolution of the 21st Meeting of the 9th Board of Directors
(Announcement No. 2021-001) and the Plan for Non-Public Offering of A-Shares in 2021, and other related announcements, in which
the Company intends to make a non-public offering of A-shares to no more than 35 specific investors including Jing Guorui Fund. The
net fund raised was expected to be no more than RMB20 billion. On 19 August 2021, the Company disclosed the Report on the Non-
public Offering of A-shares by BOE Technology Group Co., Ltd. & the Announcement on the Listing of these Shares (announcement
No. 2021-058), along with other relevant announcements. 3,650,377,019 new shares were issued in the non-public offering, which
were listed on the Shenzhen Stock Exchange on 20 August 2021. On 18 February 2022, the Company disclosed the Suggestive
Announcement on Relieving Restricted Non-publicly Offered A Shares in 2021 (Announcement No.: 2022-005). On 21 February 2022,
94
BOE Technology Group Co., Ltd. Annual Report 2022
2,932,244,165 restricted shares of non-publicly offered A shares in 2021 were relieved and could be traded in the market. The number
of the relieved restricted shares accounted for 8.5058% of non-restricted shares of the Company, and 7.6270% of the total share capital
of the Company. The Company disclosed the Suggestive Announcement on Relieving Restricted Non-publicly Offered A Shares in
2021 (Announcement No.: 2023-004) on 17 February 2023. A total of 718,132,854 restricted shares of the Company's non-publicly
offered A shares in 2021 were relieved on 20 February 2023 and could be traded on the market thereafter. The number of the relieved
restricted shares accounted for 1.9324% of the Company's non-restricted shares, and 1.8801% of the Company's total share capital.
3. Following the approval of the Proposal on the Repurchase of Some Public Shares at the 31st Meeting of the 9th Board of Directors,
the Company disclosed the Announcement No. 2021-067 on the Repurchase of Some Public Shares on 31 August 2021. The Company
carried out the first repurchase on 2 September 2021 and disclosed the Announcement No. 2021-077 on the First Repurchase of Some
Public Shares on 3 September 2021. On 2 March 2022, the Company disclosed the Announcement on the Completed Implementation
of Share Repurchase Programme and Repurchase Implementation Results (Announcement No.: 2022-007). As at 28 February 2022,
the Company has implemented the repurchase of the Company's shares by means of centralized bidding through a special securities
account for the repurchase, and the cumulative number of A Shares repurchased was 499,999,919, accounting for approximately 1.3330%
of the Company's A Shares and 1.3005% of the Company's total share capital, with the highest transaction price of RMB5.96 per share
and the lowest transaction price of RMB4.68 per share. The total amount paid was RMB2,620,105,418.52 (including other fixed
expenses such as commissions). The above repurchase of the Company was in line with the requirements of relevant laws and
regulations, as well as the established repurchase programme of the Company. The total fund of this share repurchase didn't exceed the
amount proposed to be used in the repurchase programme, and the number of shares repurchased has reached the cap of shares under
the repurchase programme. So far, this share repurchase has been implemented and completed as planned.
4. Following the approval of the Proposal on the Repurchase of Domestically Listed Foreign Shares (B-shares) at the 39th Meeting of
the 9th Board of Directors and the 2021 Annual General Meeting, the Company disclosed the Announcement No. 2022-030 on the
Plan for the Repurchase of Domestically Listed Foreign Shares (B-shares) on 31 March 2022 and the Report on the Repurchase of
Domestically Listed Foreign Shares (B-shares) (Announcement No. 2022-046) on 10 May 2022. The Company carried out the first
repurchase on 27 June 2022 and disclosed the Announcement No. 2022-050 on the First Repurchase of Domestically Listed Foreign
Shares (B-shares) on 28 June 2022. On 6 September 2022, the Company disclosed the Announcement No. 2022-065 on the Completion
of the Implementation of the Share Repurchase Plan & the Repurchase Results. As of 2 September 2022, all the repurchased shares
had been settled, with the total amount used reaching the upper limit of the repurchase amount. The Company has implemented the
repurchase of the Company's shares by means of centralized bidding through a special securities account for the repurchase, and the
cumulative number of B-shares repurchased was 243,229,361, accounting for approximately 25.9829% of the Company's B-shares and
0.6327% of the Company's total share capital, with the highest transaction price of HKD4.32 per share and the lowest transaction price
of HKD3.65 per share. The total amount paid was HKD999,999,946.81 (inclusive of transaction costs). The above repurchase of the
Company was in line with the requirements of relevant laws and regulations, as well as the established repurchase programme of the
Company. On 22 September 2022, the Company disclosed the Announcement on the Completion of the Retirement of Repurchased
Shares & Share Changes (Announcement No. 2022-071). The aforesaid 243,229,361 repurchased shares have been retired on 20
September 2022 with the Shenzhen branch of China Securities Depository and Clearing Co., Ltd., with the retired number of shares,
date of completion and term of retirement all in compliance with the applicable laws and regulations.
5. On 29 April 2022, the Company disclosed the Announcement on the Resolutions of the 2021 Annual General Meeting
(Announcement No. 2022-041), the Announcement on the Resolutions of the First Meeting of the 10th Board of Directors
(Announcement No. 2022-043), and the Announcement on the Resolutions of the First Meeting of the 10th Supervisory Committee
(Announcement No. 2022-044). Re-election proposals were approved at these meetings. As such, the re-election has been completed.
For further information, see the relevant announcements.
6. On 24 May 2022, the Company disclosed the Announcement on the Distribution of the 2021 Final Dividend (Announcement No.
2022-048). As the 2021 Final Dividend Plan had been approved at the 2021 Annual General Meeting on 28 April 2022, the Company
distributed a 2021 final dividend of RMB2.10 per 10 shares (dividend to B-shareholders paid in HKD according to the central parity
95
BOE Technology Group Co., Ltd. Annual Report 2022
rate of RMB and HKD declared by the People’s Bank of China on the first working day immediately after the date of the relevant
general meeting resolution), with no bonus issue from either profit or capital reserves.
Overview of significant event Disclosure date Disclosure website
Announcement on Capital Increase to Tianjin Xianzhi Chain Investment Center
15 March 2022 www.cninfo.com.cn
(Limited Partnership) and the Related-party Transaction
Announcement on the Receipt of Equity Interests in Hefei BOE Display
20 July 2022 www.cninfo.com.cn
Technology Co., Ltd. and the Related-party Transaction
Announcement on Investment in the Project of BOE 6th Generation of New
31 October 2022 www.cninfo.com.cn
Semiconductor Display Device Production Line
Announcement on Subscription in A-Shares Issued by HC Semitek Corporation
7 November 2022 www.cninfo.com.cn
to Specific Objects
Announcement on Capital Increase to BEHC Industrial Investment Co., Ltd.
17 November 2022 www.cninfo.com.cn
and the Related-party Transaction
Announcement on Selling Some Stocks of Subsidiaries 30 November 2022 www.cninfo.com.cn
Announcement on the Receipt of Equity Interests in Hefei BOE Display
30 December 2022 www.cninfo.com.cn
Technology Co., Ltd. and the Related-party Transaction
XVII Significant Events of Subsidiaries
□ Applicable Not applicable
96
BOE Technology Group Co., Ltd. Annual Report 2022
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Bonus
Item Bonus
Number Percentage New issues issue from Other Subtotal Number Percentage
shares
profit
I. Restricted shares 3,972,199,930 10.33% 0 0 0 -2,939,069,640 -2,939,069,640 1,033,130,290 2.70%
1. Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-owned
1,472,764,818 3.83% 0 0 0 -754,631,964 -754,631,964 718,132,854 1.88%
corporations
3. Shares held by other domestic
1,898,530,477 4.94% 0 0 0 -1,609,392,541 -1,609,392,541 289,137,936 0.76%
investors
Among which: Shares held by
1,603,357,266 4.17% 0 0 0 -1,603,357,266 -1,603,357,266 0 0.00%
domestic corporations
Shares held by
295,173,211 0.77% 0 0 0 -6,035,275 -6,035,275 289,137,936 0.76%
domestic individuals
4. Shares held by foreign
600,904,635 1.56% 0 0 0 -575,045,135 -575,045,135 25,859,500 0.07%
investors
Among which: Shares held by
574,254,935 1.49% 0 0 0 -574,254,935 -574,254,935 0 0.00%
foreign corporations
Shares held by
26,649,700 0.07% 0 0 0 -790,200 -790,200 25,859,500 0.07%
foreign individuals
II. Non-restricted shares 34,473,546,552 89.67% 0 0 0 2,689,686,579 2,689,686,579 37,163,233,131 97.30%
1. RMB ordinary shares 33,537,433,064 87.23% 0 0 0 2,932,915,940 2,932,915,940 36,470,349,004 95.48%
2. Domestically listed foreign
936,113,488 2.43% 0 0 0 -243,229,361 -243,229,361 692,884,127 1.81%
shares
3. Overseas listed foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 38,445,746,482 100.00% 0 0 0 -249,383,061 -249,383,061 38,196,363,421 100.00%
Reasons for share changes:
Applicable □ Not applicable
97
BOE Technology Group Co., Ltd. Annual Report 2022
A total of 2,932,244,165 restricted shares of the Company's non-publicly issued RMB ordinary shares in 2021 were relieved on 21 February 2022.
During the Reporting Period, the Company repurchased and cancelled 6,153,700 restricted shares that had been authorized to 17 incentive recipients but were still locked, resulting in a decrease
of 6,153,700 restricted shares of the Company's equity incentive.
During the Reporting Period, the Company completed the election procedure, the shares held by resigned directors, supervisors and senior management personnel were relieved, and the shares
held by newly appointed directors, supervisors and senior management personnel become the management lock-up shares. In total, the Company's management lock-up shares decreased by
671,775.
During the Reporting Period, the Company completed the share buyback schedule, as a total of 243,229,361 B shares were bought back by the Company and were cancelled on 20 September
2022.
During the Reporting Period, the total number of shares decreased by 249,383,061. Specifically, restricted shares decreased by 2,939,069,640, and non-restricted shares increased by 2,689,686,579.
Approval of share changes:
□ Applicable Not applicable
Transfer of share ownership:
□ Applicable Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary shareholders and other financial indicators of the prior year and the
prior accounting period, respectively:
Applicable □ Not applicable
Item January-December 2022
Basic earnings per share (RMB/share) 0.19
Diluted earnings per share (RMB/share) --
Item 31 December 2022
Equity per share attributable to the Company’s ordinary shareholders 3.42
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable Not applicable
2. Changes in Restricted Shares
Applicable □ Not applicable
Unit: Share
Restricted shares Restricted shares Restricted
Restricted shares Restricted shares
Name of the shareholders amount at the amount at the Restricted reasons shares relieved
period-begin increased of the relieved of the period period-end date
98
BOE Technology Group Co., Ltd. Annual Report 2022
period
Beijing Jing Guorui Soe Reform and 21 February
718,132,854 0 0 718,132,854 Private placement
Development Fund (L.P.) 2023
21 February
Fuqing Huirong Venture Capital Co., Ltd. 538,599,640 0 538,599,640 0 -
2022
MORGAN STANLEY & CO.INTERNATIONAL 21 February
271,095,152 0 271,095,152 0 -
PLC. 2022
Caitong Fund - PSBC - Caitong Fund - No. 1 21 February
179,533,214 0 179,533,214 0 -
Asset Management Plan of Bohai Life in Yuquan 2022
Yiwu Harmonious Jinhong Equity Investment 21 February
179,533,213 0 179,533,213 0 -
Partnership (L.P.) 2022
Shandong Haixiang Equity Investment Fund 21 February
147,163,387 0 147,163,387 0 -
Management Co., Ltd. 2022
21 February
Hongta Securities Co., Ltd. 143,626,570 0 143,626,570 0 -
2022
JPMORGAN CHASE BANK,NATIONAL 21 February
116,696,588 0 116,696,588 0 -
ASSOCIATION 2022
Shanghai Gao Yi Asset Management Partnership 21 February
107,719,928 0 107,719,928 0 -
(L.P.) - Gao Yi Xiaofeng No. 2 Zhixin Fund 2022
21 February
Haitong Securities Co., Ltd. 99,030,520 0 99,030,520 0 -
2022
21 February
Other non-public offering restricted shareholders 1,149,245,953 0 1,149,245,953 0 -
2022
Locked shares of
Locked shares of executives 3,038,411 434,625 1,106,400 2,366,636 -
executives
Restricted shares for
Restricted shares for equity incentive 318,784,500 0 6,153,700 312,630,800 -
equity incentive
Total 3,972,199,930 434,625 2,939,504,265 1,033,130,290 -- --
II Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
Applicable □ Not applicable
Name of Stock and Approved Termination
issue price
derivative securities Issue date Issue amount Listing date amount for date for Disclosure index Disclosure date
(interest)
thereof listing trading
Stock
N/A
99
BOE Technology Group Co., Ltd. Annual Report 2022
Convertible corporate bonds, convertible corporate bonds separately traded and corporate bonds
See the Announcement on
the Listing on the
Shenzhen Stock Exchange
2022 Public Offering of
of the 2022 Public
Renewable Corporate
Offering of Renewable
Bonds of BOE (for 25 March
25 March 2022 3.50% 2,000,000,000 7 April 2022 2,000,000,000 Corporate Bonds of BOE 7 April 2022
professional investors) 2025
(for Professional
(Digital Economy) (Phase
Investors) (Digital
I)
Economy) (Phase I)
disclosed on
http://www.cninfo.com.cn/
Other derivative securities
N/A
Notes: None
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
Applicable □ Not applicable
During the Reporting Period, the Company repurchased and cancelled 243,229,361 B-Shares, resulting in a decrease of 243,229,361 shares of the Company's shares.
During the Reporting Period, the Company repurchased and cancelled 6,153,700 restricted shares, resulting in a decrease of 6,153,700 shares of the Company's shares.
3. Existing Staff-Held Shares
□Applicable Not applicable
III Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
Unit: share
Number of ordinary shareholders
Number of ordinary shareholders at the period- 1,545,309 (including 1,512,990 A-shareholders and 1,408,195（including 1,375,930 A-
at the month-end prior to the
end 32,319 B-shareholders) shareholders and 32,265 B-shareholders）
disclosure of this Report
100
BOE Technology Group Co., Ltd. Annual Report 2022
5% or greater shareholders or top 10 shareholders
Sharehold Increase/decre Shares in pledge,
Nature of ing Total shares held at ase in the Restricted Unrestricted
Name of shareholder marked or frozen
shareholder percentag the period-end Reporting shares held shares held
e Period Status Shares
Beijing State-owned Capital Operation and State-owned
10.64% 4,063,333,333 - 0 4,063,333,333 N/A 0
Management Company Limited legal person
Foreign
Hong Kong Securities Clearing Company Ltd. 3.80% 1,450,193,281 81,195,445 0 1,450,193,281 N/A 0
legal person
Beijing BOE Investment & Development Co., State-owned
2.15% 822,092,180 - 0 822,092,180 N/A 0
Ltd. legal person
Beijing Jing Guorui Soe Reform and
Other 1.88% 718,132,854 - 718,132,854 0 N/A 0
Development Fund (L.P.)
State-owned
Hefei Jianxiang Investment Co., Ltd. 1.74% 666,195,772 - 0 666,195,772 N/A 0
legal person
Domestic
non-state-
Fuqing Huirong Venture Capital Co., Ltd. 1.40% 533,984,340 -4,615,300 0 533,984,340 N/A 0
owned legal
person
Domestic
non-state-
Ningxia Risheng High-tech Industry Co., Ltd. 0.92% 350,925,766 241,746,500 0 350,925,766 N/A 0
owned legal
person
Sinatay Life Insurance Co., Ltd.-Traditional
Other 0.80% 305,330,128 - 0 305,330,128 N/A 0
Product
State-owned
Beijing Yizhuang Investment Holdings Co., Ltd 0.74% 281,295,832 119,705,000 0 281,295,832 N/A 0
legal person
State-owned
Beijing Electronics Holdings Co., Ltd. 0.72% 273,735,583 - 0 273,735,583 N/A 0
legal person
Strategic investors or general corporations
becoming top-ten ordinary shareholders due to Naught
placing of new shares (if any)
1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co.,
Ltd.
2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling
shareholder.
3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting
Right, agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing
Related or acting-in-concert parties among the
the voting rights as a shareholder.
shareholders above
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed
over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol,
and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares,
of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to
Implementation Protocol of Voting Right.
5. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-
101
BOE Technology Group Co., Ltd. Annual Report 2022
in-Concert Agreement with Beijing Electronics Holdings Co., Ltd.
6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui
Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.);
Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund
(L.P.). In addition, among the nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and
Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited.
7. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10
shareholders.
1. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting
Right, agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing
the voting rights as a shareholder.
2. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed
Explain if any of the shareholders above was
over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol,
involved in entrusting/being entrusted with voting
and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares,
rights or waiving voting rights
of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to
Implementation Protocol of Voting Right.
3. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-
in-Concert Agreement with Beijing Electronics Holdings Co., Ltd.
At the end of the Reporting Period, among the top ten shareholders of the Company, the special securities account for the repurchase of
Special account for share repurchases (if any) BOE Technology Group Co., Ltd. held 528,186,052 shares, accounting for 1.38%. According to relevant regulations in the Rule No. 2 for
among the top 10 shareholders Content and Format of Information Disclosure of the Company Issuing Securities Publicly, if there are repurchase accounts in the top ten
shareholders of the Company, it should be specified, but these shareholders should not be included and listed as the top ten shareholders.
Shareholdings of the top ten unrestricted ordinary shareholders
Shares by type
Name of shareholder Number of unrestricted ordinary shares held at the period-end
Type Shares
Beijing State-owned Capital Operation and
4,063,333,333 RMB ordinary share 4,063,333,333
Management Company Limited
Hong Kong Securities Clearing Company Ltd. 1,450,193,281 RMB ordinary share 1,450,193,281
Beijing BOE Investment & Development Co.,
822,092,180 RMB ordinary share 822,092,180
Ltd.
Hefei Jianxiang Investment Co., Ltd. 666,195,772 RMB ordinary share 666,195,772
Fuqing Huirong Venture Capital Co., Ltd. 533,984,340 RMB ordinary share 533,984,340
Ningxia Risheng High-tech Industry Co., Ltd. 350,925,766 RMB ordinary share 350,925,766
Sinatay Life Insurance Co., Ltd.-Traditional
305,330,128 RMB ordinary share 305,330,128
Product
Beijing Yizhuang Investment Holdings Co., Ltd 281,295,832 RMB ordinary share 281,295,832
Beijing Electronics Holdings Co., Ltd. 273,735,583 RMB ordinary share 273,735,583
Xu Lili 241,325,298 RMB ordinary share 241,325,298
Related or acting-in-concert parties among top 10 1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co.,
unrestricted ordinary shareholders, as well as Ltd.
between top 10 unrestricted ordinary shareholders 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling
and top 10 shareholders shareholder.
102
BOE Technology Group Co., Ltd. Annual Report 2022
3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting
Right, agreed to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing
the voting rights as a shareholder.
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed
over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol,
and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares,
of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to
Implementation Protocol of Voting Right.
5. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-
in-Concert Agreement with Beijing Electronics Holdings Co., Ltd.
6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui
Investment Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.);
Beijing Jingguorui Investment Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund
(L.P.). In addition, among the nine members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and
Development Fund (L.P.), three are nominated by Beijing State-owned Capital Operation and Management Company Limited.
7. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10
shareholders.
1. Shareholder Ningxia Risheng High-tech Industry Co., Ltd. held 308,342,066 shares in the Company via its credit securities account,
and shareholder Xu Lili held 234,594,498 shares in the Company via her credit securities account.
2. The shares held by Beijing Yizhuang Investment Holdings Co., Ltd. in the Company increased by 119,705,000 shares due to the return
of securities under securities refinancing.
Top 10 ordinary shareholders involved in 3. The shares held by Shareholder Fuqing Huirong Venture Capital Co., Ltd. in the Company decrease by 4,615,300 shares due to securities
securities margin trading (if any) (see note 4) refinancing.
4. Shareholders Beijing State-owned Capital Operation and Management Company Limited, Beijing BOE Investment & Development Co.,
Ltd., Beijing Jing Guorui SOE Reform and Development Fund (L.P.), Hefei Jianxiang Investment Co., Ltd., Beijing Electronics Holdings
Co., Ltd. and Sinatay Life Insurance Co., Ltd.-Traditional Product were not involved in securities refinancing.
5. Except for the aforesaid, the Company does not know any other top-10 ordinary shareholder who was involved in securities refinancing.
Note：The number of ordinary shareholders at the month-end prior to the disclosure of this Report is for the total number of common Stockholders of the Company as of March 20, 2023. At the
end of the month before the disclosure date (March 31, 2023)，A-shareholders is 1,332,076; Due to the "T+3" trading rule for B shares, the Company failed to obtain the number of B-shareholders
at the end of the month before the disclosure date from China Securities Depository and Clearing Corporation Limited on the disclosure date.
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes No
No such cases in the Reporting Period.
103
BOE Technology Group Co., Ltd. Annual Report 2022
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Name of
Legal representative/person Date of Unified social credit
controlling Principal activity
in charge establishment code
shareholder
Operation and management of state-
owned assets within authorization;
communications equipment, audio &
visual products for broadcasting and
television, computer and its
supporting equipment and the applied
products, electronic raw material and
components, home electric appliances
and electronic products, electronic
surveying instruments and meters,
mechanical and electric equipment,
electronic transportation products and
Beijing investment in business fields other
Electronics than electronics and its management,
Zhang Jinsong 8 April 1997 91110000633647998H
Holdings Co., development of real estate, lease and
Ltd. sales of commodity apartments,
property management. (The market
entity shall independently choose
business items and carry out business
activities according to law. For items
requiring approval according to law,
the company must obtain approval
from related authorities before
carrying out the business activities.
The company shall not engage in
business activities that are banned and
restricted in the national and
municipal industrial policies.)
Beijing Electronic Shareholding Co., Ltd. held 508,801,304 shares of A share of Electronic City (Stock Code:
Controlling 600658), which was of 45.49% of the total shares amount of Electronic City; it held 49,952,842 shares of A share of
shareholder’s NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371), which
holdings in accounted for 9.45% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co.,
other listed Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through holding the wholly-owned
companies at subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered 33.70% of the total shares amount
home or of NAURA Technology Group Co., Ltd.；it held 420,573,126 shares of A share of Beijing Yandong Microelectronic
abroad in the Co.,Ltd. (Stock Code: 688172), which accounted for 35.07% of the total shares of Beijing Yandong Microelectronic
Reporting Co.,Ltd. Beijing Electronic Shareholding Co., Ltd. held 58,175,076 shares of A shares of BAIC BluePark New Energy
Period Technology Co.,Ltd. (Stock Code: 600733), which accounted for 1.36% of the total shares of BAIC BluePark New
Energy Technology Co.,Ltd.
Change of the controlling shareholder in the Reporting Period:
□ Applicable Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets management
Type of the actual controller: legal person
104
BOE Technology Group Co., Ltd. Annual Report 2022
Legal
Name of actual representative Date of Unified social credit
Principal activity
controller /person in establishment code
charge
Operation and management of state-owned
assets within authorization; communications
equipment, audio & visual products for
broadcasting and television, computer and
its supporting equipment and the applied
products, electronic raw material and
components, home electric appliances and
electronic products, electronic surveying
instruments and meters, mechanical and
electric equipment; electronic transportation
Beijing products and investment in business fields
Electronics other than electronics and its management,
Zhang Jinsong 8 April 1997 91110000633647998H
Holdings Co., development of real estate, lease and sales of
Ltd. commodity apartments, property
management. (The market entity shall
independently choose business items and
carry out business activities according to
law. For items requiring approval according
to law, the company must obtain approval
from related authorities before carrying out
the business activities. The company shall
not engage in business activities that are
banned and restricted in the national and
municipal industrial policies.)
Beijing Electronic Shareholding Co., Ltd. held 508,801,304 shares of A share of Electronic City (Stock Code:
600658), which was of 45.49% of the total shares amount of Electronic City; it held 49,952,842 shares of A share
Other listed of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371),
companies at which accounted for 9.45% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic
home or abroad Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through
controlled by the holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered
actual controller 33.70% of the total shares amount of NAURA Technology Group Co., Ltd.;it held 420,573,126 shares of A share
in the Reporting of Beijing Yandong Microelectronic Co.,Ltd. (Stock Code: 688172), which accounted for 35.07% of the total
Period shares of Beijing Yandong Microelectronic Co.,Ltd..Beijing Electronic Shareholding Co., Ltd. held 58,175,076
shares of A shares of BAIC BluePark New Energy Technology Co.,Ltd. (Stock Code: 600733), which accounted
for 1.36% of the total shares of BAIC BluePark New Energy Technology Co.,Ltd.
Change of the actual controller during the Reporting Period:
□ Applicable Not applicable
No such cases in the Reporting Period.
Ownership and control relations between the actual controller and the Company:
105
BOE Technology Group Co., Ltd. Annual Report 2022
Notes: 1. Beijing Intelligent Kechuang Technology Development Co., Ltd. (Intelligent Kechuang) is used as a platform for the
Company to implement equity incentives for its core technical and managerial personnel, who are the 20 nominal shareholders of
Intelligent Kechuang. The ratios of their capital contributions to Intelligent Kechuang do not represent their actual equity percentage.
The equities of Intelligent Kechuang are jointly owned by the awardees of the Company’s equity incentive plans. The capital
contribution ratios of the said 20 people are as follows: Wang Dongsheng 20%, Jiang Yukun 10%, Liang Xinqing 10%, Zhao Caiyong
6.667%, Shi Dong 6.667%, Chen Yanshun 6.667%, Song Ying 6.667%, Han Guojian 6.667%, Gong Xiaoqing 3.333%, Wang Yanjun
3.333%, Wang Jiaheng 3.333%, Liu Xiaodong 3.333%, Ren Jianchang 1.667%, Sun Jiping 1.667%, Zhang Peng 1.667%, Wang Aizhen
1.667%, Mu Chengyuan 1.667%, Xu Yan 1.667%, Hua Yulun 1.667% and Zhong Huifeng 1.667%.
2. When the Company completed a private offering of shares in 2014, Beijing State-Owned Capital Operation and Management Center
transferred its 70% stake directly held in the Company to Beijing Electronics Holding Co., Ltd. for managing through a Shares
Management Agreement, and Beijing Electronics Holding Co., Ltd. obtained the shareholder’s rights other than the disposal and
earnings rights attached to the 70% stake; and Beijing State-Owned Capital Operation and Management Center agreed in a Voting
Rights Exercise Agreement to align itself with Beijing Electronics Holding Co., Ltd. when exercising its voting rights of the remaining
30% stake directly held by it in the Company.
3. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the
Acting-in-Concert Agreement with Beijing Electronics Holdings Co., Ltd.
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable Not applicable
106
BOE Technology Group Co., Ltd. Annual Report 2022
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the Largest
Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the Company held by
Them
□Applicable Not applicable
5. Other 10% or Greater Corporate Shareholders
Applicable □ Not applicable
Legal
representative Date of Registered
Name of corporate shareholder Principal activity
/person in establishment capital
charge
Operation and management of
state-owned capital, investment
Beijing State-owned Capital and investment management;
Operation and Management Zhao Jifeng 30 December 2008 RMB50 billion assets management; organize the
Company Limited reorganization as well as the
merger and acquisition of the
enterprise assets.
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□Applicable Not applicable
107
BOE Technology Group Co., Ltd. Annual Report 2022
IV Specific Implementation of Share Repurchase during the Reporting Period
Progress on any share repurchase
Applicable □ Not applicable
Number of
shares
repurchased
Amount of Number of as % of the
Number of
Disclosure As % of total all Term of shares underlying
shares to be Usage
time of plan share capital repurchased repurchase repurchased stocks
repurchased
shares (share) involved in
the equity
incentive
plan (if any)
0.91%- Not
exceeding 12
1.30% of the months since
total share the date
350 million Not Implementati
capital at the when the
31 August shares to 500 exceeding on of equity
time of share 499,999,919 84.86%
2021 million RMB3 incentive
disclosure of repurchase
shares billion plan
the plan was
reviewed and
repurchase
approved by
plan the Board.
Within 6
months since
0.52%-
the date
0.78% of the Cancel and
when the
total share reduce the
200 million Not share
capital at the registered
31 March shares to 300 exceeding repurchase
time of capital of the 243,229,361 -
2022 million HKD1 plan was
disclosure of Company
shares billion reviewed and
the correspondin
approved by
repurchase gly
the
plan
shareholders’
meeting.
Progress on reducing the repurchased shares by means of centralized bidding
□Applicable Not applicable
108
BOE Technology Group Co., Ltd. Annual Report 2022
Part VIII Preference Shares
□ Applicable Not applicable
No preference shares in the Reporting Period.
109
BOE Technology Group Co., Ltd. Annual Report 2022
Part IX Bonds
Applicable □ Not applicable
I Enterprise Bonds
□ Applicable Not applicable
No enterprise bonds in the Reporting Period.
II Corporate Bonds
Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB
Bond Coupon Trade
Bond name Abbr. Date of issue Value date Maturity Balance Way of redemption
code rate place
If the issuer does not
execute its right in
the deferred interest
payment,
corresponding
2020 Public Offering of Renewable
interests shall be
Corporate Bonds of BOE (for qualified
20BOEY3 149108 24 April 2020 27 April 2020 27 April 2023 2,000,000,000.00 3.50% paid for this issue of SZSE
investors) (Phase III) (epidemic
bonds yearly, and
prevention and control bonds)
the last installment
of interest shall be
paid with the
redemption of
principal.
2022 Public Offering of Renewable If the issuer does not
Corporate Bonds of BOE (for 22BOEY1 149861 24 March 2022 25 March 2022 25 March 2025 2,000,000,000.00 3.50% execute its right in SZSE
professional investors) (Digital the deferred interest
110
BOE Technology Group Co., Ltd. Annual Report 2022
Economy) (Phase I) payment,
corresponding
interests shall be
paid for this issue of
bonds yearly, and
the last installment
of interest shall be
paid with the
redemption of
principal.
Appropriate arrangement of the investors (if any) Only for the qualified investors
Applicable trade mechanism Centralized bidding trade and negotiated block trade
Risk of delisting (if any) and countermeasures Not
Overdue bonds
□ Applicable Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the Investor Protection Clause
Applicable □ Not applicable
For the renewable corporate bonds “20BOEY1”, “20BOEY2”, “20BOEY3” and “22BOEY1”, 3 interest-bearing years shall be regarded as a cycle. At the end of each cycle, the issuer shall have
the right to conditionally extend the issue of bonds for another cycle (3 years) or choose to fully redeem the due bonds at the end of the cycle. Following the full redemption of the "20BOEY1"
and "20BOEY2" renewable corporate bonds on 28 February 2023 and 20 March 2023, respectively, the Company disclosed the Announcement on Not Exercising the Renewal Option of Issuer
for the Renewable Corporate Bonds (to Qualified Investors) (the Third Issue) (Pandemic Prevention and Control Bonds) Publicly Issued by the Company in 2020 (Announcement No. 2023-008)
on 15 March 2023. As at the date of approval of this annual report, the Company has not exercised the renewal option of issuer. Additionally, as the above-mentioned renewable corporate bonds
incorporate the option of issuer to postpone interest payment, the Company has not exercised such option as at the date of approval of this annual report.
3. Intermediary
Signature Contact person of
Bond Intermediary Office address Contact number
accountant intermediary
2019 Public Offering of Renewable Corporate Bonds of BOE (for Rm. 2203, North Zhu Mingqiang,
Zhang Huan, Liu
qualified investors) (Phase I), 2020 Public Offering of Renewable Tower, Shanghai Han Yong, Liao
China Securities Co., Ltd. Jingyuan, Su 021-68801569
Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic Securities Plaza, 528 Ling, Xu
Xing, Wang Ting
prevention and control bonds), 2020 Public Offering of Renewable Pudong Road South, Tianquan
111
BOE Technology Group Co., Ltd. Annual Report 2022
Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic Shanghai
prevention and control bonds), 2020 Public Offering of Renewable
Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic
prevention and control bonds), 2022 Public Offering of Renewable
Corporate Bonds of BOE (for professional investors) (Digital Economy)
(Phase I)
2019 Public Offering of Renewable Corporate Bonds of BOE (for
qualified investors) (Phase I), 2020 Public Offering of Renewable
Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic
prevention and control bonds), 2020 Public Offering of Renewable 12/F, PICC Building,
Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic China Lianhe Credit Rating No.2 Jianwai Street,
None Li Jie, Sun Jing 010-85679696
prevention and control bonds), 2020 Public Offering of Renewable Co., Ltd. Chaoyang District,
Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic Beijing
prevention and control bonds), 2022 Public Offering of Renewable
Corporate Bonds of BOE (for professional investors) (Digital Economy)
(Phase I)
Indicate by tick mark whether above intermediary changed in the Reporting Period
□Yes No
112
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Report 2022
4. List of the Usage of the Raised Funds
Unit: RMB
Whether is
consistent
with the
Rectificatio
Operation of usage, using
n of raised
special plan and
Unused funds for
Bonds Total amount Amount spent account for other
amount violation
raised funds agreements
operation (if
(if any) stipulated in
any)
the raising
specificatio
n
2020 Public Offering of
Renewable Corporate Bonds of
BOE (for qualified investors) 2,000,000,000.00 2,000,000,000.00 0.00 N/A N/A Yes
(Phase III) (epidemic prevention
and control bonds)
2022 Public Offering of
Renewable Corporate Bonds of
2,000,000,000.00 2,000,000,000.00 0.00 N/A N/A Yes
BOE (for professional investors)
(Digital Economy) (Phase I)
The raised funds were used for project construction
□Applicable Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.
□Applicable Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□Applicable Not applicable
6. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measures
as well as Influence on Equity of Bond Investors during the Reporting Period
□Applicable Not applicable
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable Not applicable
No such cases in the Reporting Period.
IV Convertible Corporate Bonds
□ Applicable Not applicable
No such cases in the Reporting Period.
113
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Report 2022
V Losses of Scope of Consolidated Financial Statements during the Reporting Period
Exceeding 10% of Net Assets up the Period-end of Last Year
□Applicable Not applicable
VI Matured Interest-bearing Debt excluding Bonds up the Period-end
□Applicable Not applicable
VII Whether there was any Violation of Rules and Regulations during the Reporting
Period
□Yes No
VIII The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0,000
Item 31 December 2022 31 December 2021 Change
Current ratio 1.66 1.56 6.41%
Debt/asset ratio 51.96% 51.72% 0.24%
Quick ratio 1.39 1.29 7.75%
Item 2022 2021 Change
Net profit after deducting
-222,865 2,406,736 -109.26%
non-recurring profit or loss
Total debt ratio of EBITDA 25.57% 50.40% -24.83%
Times interest earned 1.01 7.72 -86.92%
Times interest earned of cash 8.88 10.77 -17.55%
EBITDA-to-interest coverage
9.45 14.31 -33.96%
(times)
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
114
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Report 2022
Part X Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Standard unqualified audit opinion
Date of signing this report 31 March 2023
Name of the independent auditor KPMG Huazhen Certified Public Accountants (LLP)
Reference number of auditor’s report KPMGHZSZ No.【2303647】
Name of the certified public accountants Su Xing, Chai Jing
AUDITOR’S REPORT
毕马威华振审字第 2303647 号
The Shareholders of BOE Technology Group Co., Ltd.:
Opinion
We have audited the accompanying financial statements of BOE Technology Group Co., Ltd.
(“BOE”), which comprise the consolidated and company balance sheets as at 31 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.
115
BOE Technology Group Co., Ltd. Annual
Report 2022
AUDITOR’S REPORT (continued)
毕马威华振审字第 2303647 号
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of 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;
116
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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.
117
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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.
118
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Report 2022
AUDITOR’S REPORT (continued)
毕马威华振审字第 2303647 号
Key Audit Matters (continued)
Impairment of fixed assets and intangible assets
Refer to the accounting policies set out in the notes to the financial statements “III.
Significant accounting policies and accounting estimates” 19 and “V. Notes to the
consolidated financial statements” 14, 16.
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;
119
BOE Technology Group Co., Ltd. Annual
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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.
120
BOE Technology Group Co., Ltd. Annual
Report 2022
AUDITOR’S REPORT (continued)
毕马威华振审字第 2303647 号
Other Information
BOE’s management is responsible for the other information. The other information 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.
121
BOE Technology Group Co., Ltd. Annual
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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.
122
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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
123
BOE Technology Group Co., Ltd. Annual
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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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual
Report 2022
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. Annual Report 2022
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. Annual Report 2022
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. Annual Report 2022
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. Annual Report 2022
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. Annual Report 2022
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. Annual Report 2022
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. Annual Report 2022
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. Annual Report 2022
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.
172
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%
175
