INTERIM REPORT 2019
August 2019
BOE Technology Group Co., Ltd. Interim Report 2019
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. Liu Xiaodong, President, Ms.
Sun Yun, Chief Financial Officer, and Ms. Yang Xiaoping, 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 directors of the Company except for the following attended in person the Board
meeting for the review of this Report and its summary.
Reason for not attending the Proxy entrusted to attend the
Name Office title
meeting in person meeting
Pan Jinfeng Director Due to work Li Yantao
Wang Chenyang Director Due to work Li Yantao
Li Xuan Independent director Due to work Hu Xiaolin
The Company has no interim dividend plan, either in the form of cash or stock.
Any plans for the future, development strategies and other forward-looking statements
mentioned in this Report and its summary shall NOT be considered as absolute promises of
the Company to investors. Therefore, investors are reminded to exercise caution when making
investment decisions. For further information, see “X Risks Facing the Company and
Countermeasures” in Part IV herein.
This Report has been prepared as per the Chinese Accounting Standards for Business
Enterprises and other relevant regulations.
This Report and its summary have been prepared in both Chinese and 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. Interim Report 2019
Table of Contents
Part I Important Notes, Table of Contents and Definitions ......................................................... 2
Part II Corporate Information and Key Financial Information ................................................. 6
Part III Business Summary ........................................................................................................ 10
Part IV Operating Performance Discussion and Analysis ......................................................... 14
Part V Significant Events ............................................................................................................ 26
Part VI Share Changes and Shareholder Information .............................................................. 42
Part VII Preferred Shares ........................................................................................................... 49
Part VIII Directors, Supervisors and Senior Management ....................................................... 50
Part IX Corporate Bonds............................................................................................................ 55
Part X Financial Statements ....................................................................................................... 56
Part XI Documents Available for Reference ............................................................................ 234
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BOE Technology Group Co., Ltd. Interim Report 2019
Definitions
Term Definition
“BOE”, the “Company”, the BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where the context
“Group” or “we” otherwise requires
The cninfo website http://www.cninfo.com.cn/
CSRC The China Securities Regulatory Commission
The Stock Listing Rules The Stock Listing Rules of the Shenzhen Stock Exchange (Revised in November 2018)
SZSE, the Stock Exchange The Shenzhen Stock Exchange
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
OASIS Hospital OASIS International Hospital
IHS Markit Information Handling Services, Inc. & Markit Ltd.
AMOLED Active-matrix Organic Light Emitting Diode
AMQLED Active Matrix Quantum-dot Light Emitting Diode
OLED Organic Light Emitting Diode
VR/AR Virtual Reality /Augmented Reality
IoT Internet of Things
AI Artificial Intelligence
IFI IFI CLAIMS Patent Services
IEC International Electrotechnical Commission
LCD Liquid Crystal Display
LTPS Low Temperature Poly-silicon
FPXD Flat Panel X-ray Detector
TDDI Touch and Display Driver Integration
WQHD Wide Quad High Definition, i.e. 2560×1440 definition
COF+COB Chip On Film + Chip On Board
WXGA Wide Extended Graphics Array, i.e. 1280×800 definition
WUXGA Widescreen Ultra eXtended Graphics Array, i.e. 1920×1200 definition
OGM Tilt Active Pen One Glass of Metal-mesh Tilt Active Pen
MSMX-ray Metal-Silicon-Metal X-ray
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BOE Technology Group Co., Ltd. Interim Report 2019
d-PCR Digital Polymerase Chain Reaction
ITU International Telecommunication Union
ICT Information and Communication Technology
2019 SID Best in Show The “Best in Show” Award granted by The Society for Information Display for 2019
COPQ Cost Of Poor Quality
APS Active Pixel Sensor
MEMS Micro-Electro-Mechanical System
SDK Software Development Kit
BD Cell BOE Dual Cell
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BOE Technology Group Co., Ltd. Interim Report 2019
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name BOE-A, BOE-B Stock code 000725, 200725
Changed 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. (if any) 京东方
Company name in English (if
BOE TECHNOLOGY GROUP CO., LTD.
any)
Abbr. (if any) BOE
Legal representative Chen Yanshun
II Contact Information
Item Board Secretary Securities Representative
Name Liu Hongfeng Huang Rong
12 Xihuan Middle Road, Beijing 12 Xihuan Middle Road, Beijing
Address Economic-Technological Development Area, Economic-Technological Development Area,
P.R.China P.R.China
Tel. 010－64318888 ext. 010－64318888 ext.
Fax 010－64366264 010－64366264
Email address liuhongfeng@boe.com.cn huangrong@boe.com.cn
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website addr ess and
email address of the Company in the Reporting Period.
□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2018 Annual Report.
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BOE Technology Group Co., Ltd. Interim Report 2019
2. Media for Information Disclosure and Place where this Report is Lodged
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s
periodic reports in the Reporting Period.
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the
Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information can
be found in the 2018 Annual Report.
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reasons for the retrospective restatements:
Changes to the accounting policies.
H1 2018 Change (%)
Item H1 2019
Before Restated Restated
Operating revenue (RMB) 55,039,208,687.00 43,473,904,966.00 43,473,904,966.00 26.60%
Net profit attributable to the listed
1,668,448,449.00 2,975,206,500.00 2,975,206,500.00 -43.92%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 651,490,434.00 978,868,759.00 1,503,020,477.00 -56.65%
exceptional gains and losses (RMB)
Net cash generated from/used in
11,594,984,349.00 11,439,605,846.00 11,581,507,174.00 0.12%
operating activities (RMB)
Basic earnings per share (RMB/share) 0.048 0.085 0.085 -43.53%
Diluted earnings per share
0.048 0.085 0.085 -43.53%
(RMB/share)
Weighted average return on equity (%) 1.92% 3.45% 3.45% -1.53%
31 December 2018 Change (%)
Item 30 June 2019
Before Restated Restated
Total assets (RMB) 317,061,830,609.00 304,028,491,385.00 304,028,491,385.00 4.29%
Equity attributable to the listed
86,523,347,828.00 85,856,748,703.00 85,856,748,703.00 0.78%
company’s shareholders (RMB)
Reasons for the changes to the accounting policies and correction of accounting errors:
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BOE Technology Group Co., Ltd. Interim Report 2019
In the 2018 Annual Report, the net profit attributable to the listed company’s shareholders before exceptional gains and losses was
restated according to the audit results. According to the interpretations of the regulatory document CK [2018] No.15, government
subsidies received, whether related to assets or income, shall be presented as cash generated from operating activities” in the cash
flow statements.
V 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 Net Asset Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Net Profit and Net Asset Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
XI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets (inclusive of impairment
-672,378.00 N/A
allowance write-offs)
Tax rebates, reductions and exemptions given with ultra vires approval or
0.00 N/A
in lack of official approval documents
Government subsidies charged to current profit or loss (exclusive of
government subsidies given in the Company’s ordinary course of business 1,152,320,986.00 N/A
at fixed quotas or amounts as per the government’s uniform standards)
Capital occupation charges on non-financial enterprises that are charged to
0.00 N/A
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
0.00 N/A
Company’s enjoyable fair value of identifiable net assets of investees when
making investments
Gain or loss on non-monetary asset swaps 0.00 N/A
Gain or loss on assets entrusted to other entities for investment or 0.00 N/A
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BOE Technology Group Co., Ltd. Interim Report 2019
management
Allowance for asset impairments due to acts of God such as natural
0.00 N/A
disasters
Gain or loss on debt restructuring 0.00 N/A
Restructuring costs in staff arrangement, integration, etc. 0.00 N/A
Gain or loss on the over-fair value amount as a result of transactions with
0.00 N/A
distinctly unfair prices
Current profit or loss on subsidiaries obtained in business combinations
involving enterprises under common control from the period-beginning to 0.00 N/A
combination dates, net
Gain or loss on contingencies that do not arise in the Company’s ordinary
0.00 N/A
course of business
Gain or loss on fair-value changes in trading and derivative financial assets
and liabilities & income from disposal of trading and derivative financial
assets and liabilities and other investments in debt obligations (exclusive of 79,628,679.00 N/A
the effective portion of hedges that arise in the Company’s ordinary course
of business)
Reversed portions of impairment allowances for accounts receivable and
701,302.00 N/A
contract assets which are tested individually for impairment
Gain or loss on loan entrustments 0.00 N/A
Gain or loss on fair-value changes in investment property of which
0.00 N/A
subsequent measurement is carried out using the fair value method
Effects of all adjustments required by taxation, accounting and other
0.00 N/A
applicable laws and regulations on current profit or loss
Income from charges on entrusted management 0.00 N/A
Non-operating income and expense other than the above 51,173,190.00 N/A
Other gains and losses that meet the definition of exceptional gain/loss 0.00 N/A
Less: Income tax effects 70,992,401.00 N/A
Non-controlling interests effects (net of tax) 195,201,363.00 N/A
Total 1,016,958,015.00 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or 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. Interim Report 2019
Part III Business Summary
I Principal Activity of the Company in the Reporting Period
Is the Company subject to any industry-specific disclosure requirements?
No.
Founded in April 1993, BOE Technology Group Co., Ltd. (“BOE”) is an IoT company providing intelligent interface products and
services for information interaction and human health. In 2019, BOE adhered to its strategy of transforming further towards an IoT
company. Its seven business groups kept promoting transformation and growth, tapping into IoT application needs and sharpening its
competitive edges in market segments. Working with the B2B Chief Sales Platform Officer, the OMO Chief Sales Platform Officer,
the Branding and Global Market Center, the Information Technology Development Center, and other professional service platforms,
the three major business divisions of interface devices (D), smart IoT (S) and smart medicine and engineering (H) continued to
enhance marketing, technological and systematic abilities and promote fast growth.
1. Interface Devices (D)
Division D consists of the Display and Sensor BG, and the Sensor and Application Solution BG. The Display and Sensor BG designs
and manufactures related devices with a B2B model. The display device business offers TFT-LCD, AMOLED, Microdisplay and
other intelligent interface devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicles, electronic shelf label (ESL), tiled
display screens, industrial control, wearable devices, VR/AR devices, electronic tags, white goods, healthcare, mobile payment,
interactive whiteboards, etc. And the sensor device business provides integrated design and manufacturing services of sensor devices
for use in medical detection, household detection, communication and transportation, smart homes, etc. The Sensor and Application
Solution BG provides sensor system solutions for B2B customers of medical imaging, biological detection, smart screens, liquid
crystal antennas, fingerprint identification and the like, with products including flat panel X-ray detectors (FPXD), digital
microfluidic chips, PDLC glass, fingerprint identification systems, etc.
2. Smart IoT (S)
Division S is divided into the Intelligent Manufacturing Service BG, the IoT Solution BG and the Digital Art IoT Platform BG. The
Intelligent Manufacturing Service BG designs and manufactures, for its global B2B partners, the most competitive whole-widget
smart manufacturing solutions of TVs, monitors, electronic blackboards, electronic signs, commercial display products, electronic
tags, self-service and mobile terminals, among others. Supported by AI, big data and cloud computing technologies, the IoT Solution
BG focuses on segment markets and offers integrated IoT solutions of smart retail, smart finance, digital hospitals, smart business
offices, smart homes, smart transportation, smart education and smart energy, empowering these industries. The Digital Art IoT
Platform BG with a B2C IoT platform model is committed to brightening everyday life with the beauty of art and offering the best
user experience. The featured product, BOE iGallery, integrates voice interaction and other information technologies with digital art,
providing users with various services including artistic appreciation, art knowledge, picture book reading, photo sharing, art mall and
visual aesthetics in multiple scenarios such as an art gallery at home, aesthetic enlightenment for children and offices. It helps
introduce art to everyone and unveils more beauty of art.
3. Smart Medicine and Engineering (H)
Division H includes the Mobile Healthcare IoT Platform BG and the Smart Healthcare Service BG. The Mobile Healthcare IoT
Platform BG with a B2C IoT platform model, integrating smart terminals and apps, as well as based on AI and big data algorithms,
enables users to enjoy personalized healthcare services without leaving home, including vital signs monitoring and analysis, AI-based
disease risk prediction, health courses from experts, online diagnosis and registration for medical examination. The Smart Healthcare
Service BG covers digital hospitals, digital human body, regenerative medicine, healthcare parks, etc. It offers B2C customers
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BOE Technology Group Co., Ltd. Interim Report 2019
online-and-offline integrated professional healthcare services focused on digital medical care and supplemented by smart nursing
home and healthcare park integrated solutions, as well as by industrial park operations and the like.
II Significant Changes in Major Assets
1. Significant Changes in Major Assets
Major assets Main reason for significant changes
Equity assets N/A
Fixed assets Transfer of new project into fixed assets in the Reporting Period
Intangible assets N/A
Construction in progress N/A
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
Is the Company subject to any industry-specific disclosure requirements?
No.
1. The Company firmly promoted and implemented innovation and transformation and further improved global
competitiveness
BOE firmly promoted and implemented the development strategy of IoT transformation. Three major business divisions, namely the
Interface Devices, the Smart IoTand the Smart Medicine and Engineering, realized fast development, which further improved its
global market competitiveness.
The Interface Devices: Construction of the new line of the Display and Sensor BG proceeded in order, and the 6th Generation
Chengdu Flexible AMOLED Production Line’s shipping quantity in the first half of the year increased over 300% when compared to
that last year with the product yield achieving a new high; the 10.5th Generation BOE Hefei TFT-LCD Production Line realized mass
production, and the product yield exceeded 90%; the 10.5th Generation BOE Wuhan TFT-LCD production line was fully equipped
with various devices; the 6th Generation Chongqing Flexible AMOLED Production Line was smoothly constructed as scheduled.
As for the Sensor and Application Solution BG, the occupancy of various medical imaging products exceeded 70% on various client
sides; products were steadily delivered to overseas customers; customized products were successfully certified. In fact, the smart
screens high-speed train project was reviewed and approved; the double-curved LCD smart dimming window was launched to the
world and it’s able to realize Level-7 dynamic light dimming; the fingerprint identification capacitance-type product was smoothly
developed and samples were sent to the client; in terms of Flow Cell Gene Detection Products, the mass production and delivery
work were realized.
The Smart IoT: As for the smart factory 1 upgrade project of the Intelligent Manufacturing Service BG, various devices were moved
in, and they would be put into service as scheduled; smart factory 2 large-size flexible automation equipment was manufactured as
scheduled. In the Digital Art IoT Platform BG, iGallery M2 appeared on the market; the R&D of new iGallery S3 and R1 was carried
out smoothly as planned with the transactions increasing over 100% when compared to that last year. Meanwhile, in the IoT Solution
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BOE Technology Group Co., Ltd. Interim Report 2019
BG, smart finance obtained more than 1000 branch transformation orders; in the first half of the year, over 330 branches were
successfully transformed in total, and the bank client behavior trace analysis system was also independently developed; smart
political education independently developed and completed the 75” 8K broadcasting system, and for digital exhibitions, the
benchmarking project—The Palace Museum Hall of Moral Cultivation Digital Exhibition was successfully implemented. The Smart
Medicine and Engineering: the Mobile Healthcare IoT Platform BG successfully launched 15 peripheral productsincluding smart
watch, body fat calculator and blood pressure meter etc.. In the first half of the year, the APP registered users realized a
month-on-month increase of over 220%. In the Smart Healthcare Service BG, the Oasis International hospital’s outpatient visits
realized a year-on-year increase of 33%, and the outpatient service satisfaction was further improved; Hefei Hospital was completely
open for service, and the accumulated outpatient visits exceeded 30,000. And the medical insurance coverage expand to Hefei city as
well as its four subordinated counties and one district achived in Hefei Hospital.
2. The Company stuck to client orientation and further increased its market shares.
According to IHS Markit data, the shipment of BOE display screens was ranking the 1st in the world with the shipping area realizing
a year-on-year increase of 23%. Special effort was made to continuously enhance the market share of five major mainstream products,
and various products such as MBL LCD smart phone, TPC, NB, MNT and TV continued their leading role all over the globe. The
shipping of innovative applications realized a year-on-year growth of 21%, and the shipping area increased 49% on a year-on-year
basis. In particular, the market share of ESL and wearable products ranked the 1stin the world and the splicing products the 2nd. The
sales and internal shipping occupancy of various high value-added products like featuring HD, touch control, narrow frame and large
size and the internal shipping occupancy largely increased. For OLED products, various first-class brand clients at home and abroad
were introduced gradually and the flexible OLED smart phone’s market share ranked 2nd in the world.
Besides, a new breakthrough was made in the Smart Manufacturing Service Finished Product Market. Finished TV sales in Europe
realized a 4-times year-on-year increase, and various large-screen project clients were developed; the market share of finished HD
MNT, e-sports products and hi-end machines was continuously improved; the mass production of commercial display 55’’ splicing
machines and POS machines was steadily carried out.
3. The Company reinforced independent innovation and further promoted innovation ability.
The Company has made great achievement in various products and the technological development. For example, 6.4’’ blind hole
project’s mass production was successfully introduced and 11’’ TDDI product development was completed; 23.8’’ peep-proof
products were successfully launched; the first BD Cell product in the world realized the super high contrast and won 2019 SID Best
in Show Award; in early July, the Company cooperated with its clients to launch the first folding-screen TV; the samples of the
silica-based Micro-OLED product with world highest PPI 0.39” were sent to the clients; for the printing OLED 55” 8K Technology
Development Project, various full-color prototypes were lightened; the car-mounted A-column see-through displays’ overall
solutions were completed; for the complete appliance development, 21.5”-32” full series of e-sports products were covered and the
mass production was initiated; besides, 32’’ and 43’’ low-cost non-frame series of products were also developed; the capacitance
touch-control full-lamination products were successfully developed; the development of conference table cards and medical labels
was completed and the mass production was conducted. APS MSM 4” X-ray detection and imaging prototypes were well
manufactured; for the quick-response LCD antenna project, 4*4 unit antenna design and manufacturing were completed; in respect of
the glass-based MEMS project, samples of the capacitance ultrasonic transducer were packed and sealed and tested, and various
component indicators were met; the waveguide display brightness improved 60%; the glass-based digital PCR micro-fluidic chip was
applied to successfully recognize the glioma’s clinic specimen.
The Company also made certain progress in the field of AI and the big data technology application, and independently developed the
smart network marketing & advertising management system, the super HD distance diagnosis system, the cloud screen information
sending system, the smart home whole house control system and other software systems; the technological development of table
cards, smart panels, car-mounted double-sided screen and the distance diagnosis ALL-IN-ONE machine was completed; the similar
picture search, the picture processing SDK, the knowledge mapping and other technologies were properly applied to initiate the
production.
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BOE Technology Group Co., Ltd. Interim Report 2019
The patent layout was continuously optimized. In the first half of the year, there were 4872 new patent applications, of which,
overseas patents exceeded 35%, and flexible OLED, sensor, AI, big data and other significant patents exceeded 2500. Meanwhile,
2953 new patent licenses were added, of which, American patent licenses exceeded 1200. In respect of the technical standard, 25
external technical standards were formulated and revised in the first half of the year. In particular, the “see-through display” IEC
International Standard was officially issued.
4. The Company further improved operational efficiency via strengthening lean management.
Continuous improvement was made in the production line’s technological level and process capabilities. The 10.5th Generation Hefei
TFT-LCD Production Line was put into service in full capacity; the 8.5th Generation Chongqing TFT-LCD Production Line MBL
comprehensive shipping rate exceeded 94%; the 8.5th Generation Fuzhou TFT-LCD Production Line’s monthly productivity could
reach 165Ksh, setting a new high, and the yield rate was stabilized at above 97%; the 6th Generation Hefei TFT-LCD Production
Line’s product structure was continuously optimized with the high value-added products occupying over 90%. Through advocating
the energy saving and emission reduction and strictly controlling the consumption of spare parts, the overall fixed out-of-pocket cost
declined about 6% on a year-on-year basis. The business quality management level of the display service would improve
continuously. Meanwhile, the smart manufacturing service finished machine’s COPQ declined to 0.93%, and the material abnormal
hours decreased over 35% on a year-on-year basis.
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BOE Technology Group Co., Ltd. Interim Report 2019
Part IV Operating Performance Discussion and Analysis
I Overview
The first half of 2019 saw complicated and changeable global political and economic conditions. Global economic growth slowed
down under mounting downward pressure. In terms of the semi-conductor display industry, the massive and quick release of
production capacity of advanced-generation products, weak market demand and severe oversupply led to decreasing panel prices and
a considerable drop in profitability. Under the double pressures of the China-U.S. trade friction and an industry though, the Company
was faced with extremely severe challenges in its operations. On the other hand, in view of good market opportunities for innovative
display application, sensors, smart IoT and smart medicine and engineering, the Company carried on with its IoT transformation
strategy. From an overall perspective, the Company achieved stable growth in operating revenue against market pressure and a
shrinking market size in the first half of 2019. For this period, the Company recorded operating revenue of approximately RMB55
billion, up by around 27% year-on-year.
1. The Company’s Market Position was Steadily Improved.
The shipment of complete display panels was ranking the first place in the world, and the shipping area was accordingly increasing
on a year-on-year basis; five major products of smart phone LCD, table PCs display screen, laptop display screen, displayer display
screen and TV display screen continued to make their shipping quantity rank the first place in the world. Meanwhile, the shipping
quantity and shipping area of innovation application products increased largely. Nevertheless, the market share of ESL and wearable
products ranked first in the world and the splicing products the second. The sales of various high value-added products featuring HD,
touch control, narrow frame and Borderless/65"+ and the internal shipping occupancy largely increased.
The first AMOLED (flexible) production in the Mainland of China - Chengdu 6th generation of AMOLED (flexible) production line
realized steady improvement of yield and supply for first-tire brand manufacturers, and the shipping quantity in the first half of the
year exceeded ten million pieces; the Mianyang 6th AMOLED (flexible) production line was applied for the mass production; the
flexible OLED smart phone’s market occupancy was largely improved; the first TFT-LCD Production Line of the highest generation
in the world-- the 10.5th Generation BOE Hefei TFT-LCD Production Line realized the production in a full capacity.
As for the smart factory 1 upgrade project of the Intelligent Manufacturing Service BG, various devices were moved in, and they
would be put into service as scheduled; Smart factory 2 large-size flexible automation equipment was manufactured as scheduled.
New breakthrough was made in developing the smart manufacturing service complete machine market. The finished TV sales
achieved on the domestic market realized a year-on-year increase of 60%, and 32’’ and 43’’ low-cost non-frame series of products
were developed; the mass production of non-frame full-display series of products was fully initiated; finished MNT products were
successfully developed and the full series of 21.5"-32"Gaming products were put into mass production. As a result, the shipping
quantity geared to the finished display strategy clients increased on a year-on-year basis.
The operating revenue and the outpatient visits achieved by OASIS International Hospital increased accordingly, and the medica l
satisfaction was further improved. In March, Hefei Hospital was completely open for service, and the outpatient visits exceeded
30,000 with its medical insurance coverage spreading to Hefei City and four subordinated counties and one district. The Mobile
Healthcare IoT Platform BG put 15 peripheral products on the market for sale including smart watch, body fat calculator and blood
pressure meter etc.. In the first half of the year, the APP registered users realized a month-on-month increase of over 220%.
2. The Innovation and Transformation Business was orderly carried out.
The occupancy of various medical imaging products exceeded 70% on various client sides; products were steadily delivered to
overseas customers; customized products were successfully certified. In terms of Flow Cell Gene Detection Products, the mass
production and delivery work were realized. The double-curved LCD smart dimming window was launched to the world and it’s put
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BOE Technology Group Co., Ltd. Interim Report 2019
into service of Beijing-Xiong'an High-speed Train; samples of the fingerprint identification capacitance-type product were sent to 7
door lock clients. Meanwhile, the smart finance obtained more than 1000 branch transformation orders; in the first half of the year,
over 330 branches were successfully transformed in total; in addition, the smart political education business independently developed
the 75” 8K broadcasting system, and for digital exhibitions, the benchmarking project—The Palace Museum Hall of Moral
Cultivation Digital Exhibition was successfully implemented.
In April, the new iGallery M2 was launched on the market, and the R&D of the new iGallery S3 and new children’s picture book
reader R1 proceeded as scheduled; the product’s transactions increased over 100% on a year-on-year basis; the APP newly-added
registered users saw a year-on-year increase of 27%. In the first half of the year, the operating revenue of smart retails achieved a
year-on-year increase of about 50%; the service-oriented transformation made great progress, and the mode of “retails=service” was
implemented among particular clients.
The Mobile Healthcare IoT Platform BG put 15 peripheral products on the market for sale including smart watch, body fat calculator
and blood pressure meter etc.. In the first half of the year, the APP registered users and the monthly active users increased
significantly.
In term of OMO, the operating revenue and the sales volume all achieved corresponding increase; in the first half of the year, 51
urban partners were developed in total.
3. The Technological Innovative Ability was continuously improved.
The number of patent applications remained its rapid growth trend. In the first half of the year, there were 4872 new patent
applications, of which, patent for invention occupied over 90% and overseas patents exceeded 35%. Meanwhile, flexible OLED,
sensor, AI, big data and other significant patents exceeded 2500. 2953 new patent licenses were added, of which, American patent
licenses exceeded 1200. Accordingly, certain progress was also made in the R&D of various transformation technologies related to
the sensors, AI and the big data and the medicine-industry integration. In respect of the technical standard, 25 external technical
standards were formulated and revised in the first half of the year. In particular, the “see-through display” IEC International Standard
was officially issued.
II Analysis of Core Businesses
See “I Overview” above.
Year-on-year changes in key financial data:
Unit: RMB
Main reason for
Item H1 2019 H1 2018 Change (%)
change
Operating revenue 55,039,208,687.00 43,473,904,966.00 26.60% --
Increased along with
Cost of sales 45,812,333,231.00 35,144,582,131.00 30.35%
the sales
Selling expense 1,365,287,286.00 1,294,782,594.00 5.45% --
Administrative expense 2,197,183,494.00 2,143,708,550.00 2.49% --
Finance costs 1,166,753,372.00 1,201,173,655.00 -2.87% --
Income tax expense 673,775,041.00 659,568,560.00 2.15% --
R&D expense 3,893,611,519.00 3,645,381,340.00 6.81% --
Net cash generated from/used in 11,594,984,349.00 11,581,507,174.00 0.12% --
15
BOE Technology Group Co., Ltd. Interim Report 2019
operating activities
Net cash generated from/used in
-21,610,149,309.00 -23,949,538,497.00 N/A --
investing activities
Net cash generated from/used in
6,881,107,844.00 8,148,650,744.00 -15.56% --
financing activities
Net increase in cash and cash
-3,107,362,959.00 -4,823,287,992.00 N/A --
equivalents
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes in the Reporting Period.
Breakdown of core businesses:
Unit: RMB
YoY change in YoY change in
Gross profit YoY change in
Item Operating revenue Cost of sales operating gross profit
margin cost of sales (%)
revenue (%) margin (%)
By operating division
Interface
50,896,645,297.00 42,975,736,712.00 15.56% 29.94% 33.67% -2.36%
Devices
Smart IoT 7,521,943,172.00 6,831,554,480.00 9.18% 2.38% 1.39% 0.89%
Smart Medicine
663,753,643.00 322,726,810.00 51.38% 26.09% 31.71% -2.07%
and Engineering
Others 3,567,353,945.00 4,206,107.00 99.88% 40.63% -17.31% 0.08%
Offset -7,610,487,370.00 -4,321,890,878.00 43.21% 24.65% 8.18% 8.64%
By product category
Interface
50,896,645,297.00 42,975,736,712.00 15.56% 29.94% 33.67% -2.36%
Devices
Smart IoT 7,521,943,172.00 6,831,554,480.00 9.18% 2.38% 1.39% 0.89%
Smart Medicine
663,753,643.00 322,726,810.00 51.38% 26.09% 31.71% -2.07%
and Engineering
Others 3,567,353,945.00 4,206,107.00 99.88% 40.63% -17.31% 0.08%
Offset -7,610,487,370.00 -4,321,890,878.00 43.21% 24.65% 8.18% 8.64%
By operating segment
Mainland China 27,097,587,363.00 22,451,197,150.00 17.15% 34.79% 38.67% -2.31%
Other regions in
22,704,809,090.00 18,663,083,700.00 17.80% 16.22% 19.40% -2.19%
Asia
Europe 2,405,571,859.00 2,211,081,530.00 8.08% 57.19% 65.41% -4.57%
Americas 2,722,205,077.00 2,397,217,579.00 11.94% 21.76% 24.03% -1.61%
16
BOE Technology Group Co., Ltd. Interim Report 2019
Other regions 109,035,298.00 89,753,272.00 17.68% 61.50% 69.60% -3.93%
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
As % of profit Recurrent
Item Amount Source/Reason
before taxation or not
Return on investment 13,565,371.00 0.75% N/A Not
Gain/loss on changes in Changes in the fair value of wealth
55,666,155.00 3.09% Not
fair value management investments held
Amount provided for inventory falling price
Asset impairments -598,106,867.00 -33.19% Not
impairment according to market conditions
Governmental subsidies received in the
Non-operating income 96,343,532.00 5.35% Not
Reporting Period
Non-operating expense 11,848,340.00 0.66% N/A Not
Governmental subsidies received in the
Other income 1,117,952,927.00 62.04% Not
Reporting Period
IV Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2019 30 June 2018 Change in
Reason for material
Item As % of As % of percentage
Amount Amount change
total assets total assets (%)
Monetary capital 47,191,670,697.00 14.88% 50,581,910,423.00 18.31% -3.43% N/A
Accounts receivable 19,267,673,050.00 6.08% 17,356,033,029.00 6.28% -0.20% N/A
Inventories 14,352,489,459.00 4.53% 10,933,542,222.00 3.96% 0.57% N/A
Investment property 1,261,474,153.00 0.40% 1,278,070,770.00 0.46% -0.06% N/A
Long-term equity
2,625,460,926.00 0.83% 3,443,815,633.00 1.25% -0.42% N/A
investments
Transfer of new project
Fixed assets 128,481,365,480.00 40.52% 84,979,890,697.00 30.76% 9.76% into fixed assets during
the Reporting Period
Construction in progress 71,479,480,514.00 22.54% 73,903,155,311.00 26.75% -4.21% N/A
Short-term borrowings 7,719,908,693.00 2.43% 2,213,431,454.00 0.80% 1.63% N/A
17
BOE Technology Group Co., Ltd. Interim Report 2019
New loan for new
Long-term borrowings 107,924,953,091.00 34.04% 83,261,644,214.00 30.14% 3.90% project in the Reporting
Period
A decline in wealth
management product
investments due to
maturity and the
reclassification due to
Other current assets 8,311,011,893.00 2.62% 18,930,028,377.00 6.85% -4.23%
the adoption of the new
accounting standards
governing financial
instruments in the
Reporting Period
Increase in payables for
engineering and
Other payables 26,202,215,431.00 8.26% 16,759,925,924.00 6.07% 2.19%
equipment in the
Reporting Period
18
BOE Technology Group Co., Ltd. Interim Report 2019
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on fair-value Cumulative fair-value Impairment
Purchased in the Sold in the
Item Beginning amount changes in the Reporting changes charged to allowance for the Ending amount
Reporting Period Reporting Period
Period equity Reporting Period
Financial assets
1. Financial assets at fair
value through profit or loss 5,534,413,566.00 55,666,155.00 55,666,155.00 0.00 7,995,988,956.00 9,653,077,735.00 3,932,990,942.00
(exclusive of derivatives)
2. Derivative financial assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Other investments in debt
0.00 0.00 0.00 0.00 0.00 0.00 0.00
obligations
4. Other investments in equity
721,155,927.00 -21,315,625.00 -337,260,678.00 0.00 4,230,269.00 0.00 704,070,571.00
instruments
Subtotal of financial assets 6,255,569,493.00 34,350,530.00 -281,594,523.00 0.00 8,000,219,225.00 9,653,077,735.00 4,637,061,513.00
Investment property 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Productive living assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of the above 6,255,569,493.00 34,350,530.00 -281,594,523.00 0.00 8,000,219,225.00 9,653,077,735.00 4,637,061,513.00
Financial liabilities 71,000,000.00 0.00 0.00 0.00 0.00 0.00 71,000,000.00
Material changes in the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
19
BOE Technology Group Co., Ltd. Interim Report 2019
3. Restricted Asset Rights as at the Period-End
Item Ending carrying value Restriction reason
Monetary capital 6,948,337,136.00 As pledge for guarantee and as security deposits
49,271,680.00 Discounted and transferred with right of recourse, endorsed and
Notes receivable
transferred with right of recourse, as pledge for opening notes payable
Inventories 0.00 Naught
Fixed assets 97,485,999,524.00 As mortgage for guarantee
Intangible assets 1,297,670,069.00 As mortgage for guarantee
Investment property 43,707,923.00 As mortgage for guarantee
Construction in progress 43,789,518,170.00 As mortgage for guarantee
Total 149,614,504,502.00 --
V Investments Made
1. Total Investments Made
√ Applicable □ Not applicable
Investments made in this Reporting Period Investments made in the same period of
Change（%）
(RMB) last year (RMB)
121,230,269.00 914,421,769.00 -86.74%
2. Significant Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
20
BOE Technology Group Co., Ltd. Interim Report 2019
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Accountin Gain/Loss on Source
Accumulated Purchase Sold in
g fair value Gain/loss in of
Variety of Code of Name of Initial Beginning fair value d in Report Ending carrying Accounting
measurem changes in Reporting investm
security security security investment cost carrying value changes charged Reportin ing value title
ent Reporting Period ent
to equity g Period Period
method Period funds
Other
Domestic/ Self-ow
TPV Fair value investment
Foreign HK00903 134,658,158.00 25,613,279.00 -13,747,290.00 -122,792,169.00 0.00 0.00 470,591.00 11,865,989.00 ned
Technology method in equity
stock funds
instruments
Other
Domestic/ Self-ow
Electronic Fair value investment
Foreign SH600658 90,160,428.00 83,995,943.00 24,960,718.00 18,796,234.00 0.00 0.00 1,883,379.00 108,956,662.00 ned
Zone method in equity
stock funds
instruments
Other
Domestic/ Self-ow
Bank of Fair value investment
Foreign HK01963 120,084,375.00 98,705,065.00 3,275,047.00 -33,197,286.00 0.00 0.00 3,820,841.00 102,206,616.00 ned
Chongqing method in equity
stock funds
instruments
Other
Domestic/ Self-ow
China Fair value investment
Foreign HK06066 70,041,364.00 44,412,577.00 13,690,782.00 -11,192,865.00 0.00 0.00 0.00 58,219,470.00 ned
Securities method in equity
stock funds
instruments
Domestic/ New century Fair value Other Self-ow
HK01518 140,848,850.00 125,909,253.00 -50,673,011.00 -65,790,317.00 0.00 0.00 0.00 75,472,547.00
Foreign medical method investment ned
21
BOE Technology Group Co., Ltd. Interim Report 2019
stock treatment in equity funds
instruments
Other securities investments held at
0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
the period-end
Total 555,793,175.00 -- 378,636,117.00 -22,493,754.00 -214,176,403.00 0.00 0.00 6,174,811.00 356,721,284.00 -- --
Disclosure date of the
announcement about the board’s N/A
consent for the securities investment
Disclosure date of the
announcement about the general
N/A
meeting’s consent for the securities
investment (if any)
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI 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
22
BOE Technology Group Co., Ltd. Interim Report 2019
VII 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
Operating Operating
Name with the Principal activity Registered capital Total assets Net assets Net profit
revenue profit
Company
Chengdu BOE R&D, design, production, and sales of
Optoelectronics Subsidiary the new type display devices and the 22,000,000,000.00 45,720,209,434.00 20,681,538,015.00 5,270,294,757.00 227,565,105.00 209,509,425.00
Technology Co., Ltd. components
Investment, construction, R&D,
Hefei BOE
production and sales of the relevant
Optoelectronics Subsidiary 9,000,000,000.00 15,607,954,140.00 12,271,460,212.00 5,132,365,082.00 702,834,118.00 605,811,749.00
products of thin film transistor LCD and
Technology Co., Ltd.
its auxiliary products
R&D, production and sales of
Chongqing BOE semi-conductor display device,
Optoelectronics Subsidiary complete machine and its auxiliary 19,226,000,000.00 38,503,103,453.00 25,875,930,943.00 9,999,179,181.00 610,979,592.00 528,135,258.00
Technology Co., Ltd. products; import and export of goods
and technical consultancy
Subsidiaries obtained or disposed in the Reporting Period:
□ Applicable √ Not applicable
23
BOE Technology Group Co., Ltd. Interim Report 2019
Information about major majority- and minority-owned subsidiaries:
None
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Risks Facing the Company and Countermeasures
1. Risk of Macroeconomic Fluctuation
The first half of 2019 saw a stable global economy but with complexities. On the part of the political situation, the Company was
confronted again with the threat of the trade protection and the unilateralism and the intensified risks on the trade and investment side.
As the industrial pattern and the financial stability were impacted, the world’s economic risks and uncertainty increased significantly;
China’s economic development slowed down with the optimized structure and the converted new normal status of kinetic energy.
Namely, it would transform from a high-speed growth mode into a high-quality development mode, and the structural reform on the
supply side served as a significant measure taken to propel China’s economic transformation and reform under the new normal status.
In terms of the industry environment, since the second half of the year 2017, the industry had entered into the trough. In this case, the
mainstream market demands slowed down; the new productivity released quickly in a centralized manner; the periodic oversupply
and the disordered competition resulted in the large-scale adjustment of various full-scale products, especially TV products in the
long run; the OLED industrial chain was not so matured and would result in higher costs; the market demands could not meet the
expected requirements and the new capacities released in a much fiercer way; however, the advancement of 5G commercial
application and the accelerated development of AI would energize and catalyze the explosive development of IoT subdivided
application scenarios, becoming a new growth point in this industry. Under this background, the Company persisted in transformation
and upgrading driven by innovation, continued strengthening lean management, optimized product structure, improved efficiency of
product operation, accelerated improving AMOLED global competitiveness, promoted the rapid development of sensor business,
consolidated the basis for software and hardware technology integration, accelerate core capacity building of information and
healthcare, and comprehensively promoted the improvement of profitability.
2. Challenges Arising from the Transformation of IoT
The IoT transformation was the only way and the inevitable choice for the Company to balance its business structure and realize its
leaping development. While firmly sticking to the IoT transformation strategy, the Company should be aware of rigorous challenges
arising from the transformation of IoT. Firstly, it’s required to reduce the risk of the continuous upgrading of trade frictions and any
adverse impact caused by the increasing uncertainty in the political situation; secondly, it’s required to win the decisive battle related
to the global semi-conductor display industry as the semi-conductor display business played a critical role in the Company’s stable
development as well as the base point and the propeller for the transformation of IoT; thirdly, it’s required to quickly make
corresponding breakthrough during the transformation of IoT. The Company put forward the concept of IoT transformation in 2013,
and clearly defined the IoT ecological chain construction strategy of “Ecoresystem: Open and Connected” in 2016. At present, the
Company has made certain progress in various subdivided fields including the display and sensor innovation market, IoT solutions,
digital arts, mobile healthcare and health service etc.. However, the development and the APP platform operation capacity need
further improvements. Accordingly, a batch of IoT application enterprises are emerging in such subdivided fields including the
security and protection and the education. As the strategic window is transient, it’s extremely urgent to make critical breakthroughs.
24
BOE Technology Group Co., Ltd. Interim Report 2019
Part V Significant Events
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
The 2018 Annual General Annual General
33.98% 26 April 2019 27 April 2019 www.cninfo.com.cn
Meeting Meeting
The 1st Extraordinary General Extraordinary
33.99% 28 June 2019 29 June 2019 www.cninfo.com.cn
Meeting of 2019 general meeting
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
II Interim Dividend Plan for the Reporting Period
□ Applicable √ Not applicable
The Company has no interim dividend plan.
III Commitments of the Company’s Actual Controller, Shareholders, Connected Parties and
Acquirer, as well as the Company and Other Commitment Makers, Fulfilled in the Reporting
Period or still Ongoing at Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of CPAs Firm
Has the Interim financial report been audited?
□Yes √ No
This Interim Report is unaudited.
V Explanations Given by Board of Directors and Supervisory Committee Regarding
“Modified Auditor’s Report” Issued by CPAs Firm for the Reporting Period
□ Applicable √ Not applicable
25
BOE Technology Group Co., Ltd. Interim Report 2019
VI Explanations Given by Board of Directors Regarding “Modified Auditor’s Report” Issued
for Last Year
□ Applicable √ Not applicable
VII Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits or arbitrations:
√ Applicable □Not applicable
Trial results Situation of
Lawsuit Whether
Process of and execution of
Basic situation of lawsuit amount form into Disclosure
lawsuit influences of judgment of Disclosure date
(arbitration) (RMB estimated index
(arbitration) lawsuit lawsuit
‘0,000) liabilities
(arbitration) (arbitration)
Disputes case of sales For details,
contract that BOE see Annual
This case came to
Technology (HK) Limited Report of
trial at Beijing
sued LeTV Mobile 2018 of BOE
High People’s
Intelligent Information Technology
Court on 8 March
Technology (Beijing) Co., 28,471.43 No Unknown N/A 26 March 2019 Group Co.,
2019. The next
Ltd, LeTV Holdings Ltd. disclosed
step is to wait for
(Beijing) Co., Ltd., Le Sai on
the court’s notice
Mobile Technology www.cninfo.c
or judgment.
(Beijing) Co., Ltd. and om.cn. on 26
Mr. JiaYueting March 2019
Other legal matters:
√ Applicable □Not applicable
Situation of
Lawsuit Trial results and
Basic situation of Whether form Process of execution of
amount influences of Disclosure Disclosure
lawsuit into estimated lawsuit judgment of
(RMB lawsuit date index
(arbitration) liabilities (arbitration) lawsuit
‘0,000) (arbitration)
(arbitration)
Litigations for the
first half year of
2019 (including 9,181.79 No N/A N/A N/A N/A N/A
carryforwards in
previous years )
26
BOE Technology Group Co., Ltd. Interim Report 2019
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Credit Conditions of the Company as well as its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
√ Applicable □ Not applicable
No such cases in the Reporting Period.
XII 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. Credits and Liabilities with Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Major Related-Party Transactions
√ Applicable □Not applicable
Naught
Index to the current announcements about the said related-party transactions disclosed
27
BOE Technology Group Co., Ltd. Interim Report 2019
Title of current announcement Disclosure date Disclosure website
Announcement on the Prediction of 2019 Annual
26 March 2019 www.cninfo.com.cn
Routine Related-party Transaction
XIII Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV 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.
2. Major guarantees
√ Applicable □ Not applicable
28
BOE Technology Group Co., Ltd. Interim Report 2019
(1) Guarantees
Unit: RMB'0,000
Guarantees provided by the Company for external parties (exclusive of those for subsidiaries)
Actual occurrence
Disclosure date of the Having Guarantee for
Line of date Actual guarantee
Obligor guarantee line Type of guarantee Term of guarantee expired or a related
guarantee (Agreement signing amount
announcement not party or not
date)
N/A
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees in the
0 0
Period (A1) Reporting Period (A2)
Total approved line for such guarantees at the end of the Total actual balance of such guarantees at the
0 0
Reporting Period (A3) end of the Reporting Period (A4)
Guarantees provided by the Company for its subsidiaries
Actual occurrence
Disclosure date of the Having Guarantee for
Line of date Actual guarantee
Obligor guarantee line Type of guarantee Term of guarantee expired or a related
guarantee (Agreement signing amount
announcement not party or not
date)
Hefei BOE Photoelectric 23 July 2010 to 23 July
14 August 2014 753,595 12 March 2015 14,945 Joint liability guarantee No No
Technology Co., Ltd. 2019
Hefei XinSheng Photoelectric 6 January 2014 to 6
14 August 2014 1,271,820 15 January 2015 564,028 Joint liability guarantee No No
Technology Co., Ltd. January 2022
Ordos YuanSheng Photoelectric 17 March 2017 to 17
30 November 2016 549,683 15 March 2017 429,599 Joint liability guarantee No No
Co., Ltd. March 2025
Chengdu BOE Photoelectric 6 September 2017 to 6
25 April 2017 2,301,057 30 August 2017 1,808,547 Joint liability guarantee No No
Technology Co., Ltd. September 2027
29
BOE Technology Group Co., Ltd. Interim Report 2019
Opening date of the
Chengdu BOE Photoelectric
25 April 2017 450,000 30 August 2017 181,665 Joint liability guarantee letter of guarantee to 31 No No
Technology Co., Ltd.
July 2023
Chongqing BOE Photoelectric 5 November 2014 to 5
14 August 2014 1,458,316 29 September 2014 727,522 Joint liability guarantee No No
Technology Co., Ltd. November 2022
Hefei BOE Display Technology 7 September 2017 to 7
1 December 2016 1,683,995 30 August 2017 1,532,733 Joint liability guarantee No No
Co., Ltd. September 2025
Opening date of the
Hefei BOE Display Technology
1 December 2016 450,000 21 December 2017 207,000 Joint liability guarantee letter of guarantee to 31 No No
Co., Ltd.
March 2024
Fuzhou BOE Photoelectric 19 December 2016 to 19
10 December 2015 1,337,987 8 November 2016 1,143,004 Joint liability guarantee No No
Technology Co., Ltd. December 2024
Opening date of the
Fuzhou BOE Photoelectric
10 December 2015 300,000 8 November 2016 156,000 Joint liability guarantee letter of guarantee to 28 No No
Technology Co., Ltd.
December 2023
Mianyang BOE Photoelectric 26 September 2018 to
18 May 2018 2,120,961 18 September 2018 1,365,374 Joint liability guarantee No No
Technology Co., Ltd. 26 September 2028
Opening date of the
Mianyang BOE Photoelectric
18 May 2018 460,000 22 June 2018 248,000 Joint liability guarantee letter of guarantee to 31 No No
Technology Co., Ltd.
October 2027
Wuhan BOE Photoelectric Not signing the contract
25 March 2019 2,000,000 0 Joint liability guarantee No No
Technology Co., Ltd. yet
Wuhan BOE Photoelectric Not signing the contract
25 March 2019 450,000 0 Joint liability guarantee No No
Technology Co., Ltd. yet
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees in the
2,450,000 132,702
Period (B1) Reporting Period (B2)
Total approved line for such guarantees at the end of the 13,617,400 Total actual balance of such guarantees at the 8,378,416
30
BOE Technology Group Co., Ltd. Interim Report 2019
Reporting Period (B3) end of the Reporting Period (B4)
Guarantees provided between subsidiaries
Actual occurrence
Disclosure date of the Having Guarantee for
Line of date Actual guarantee
Obligor guarantee line Type of guarantee Term of guarantee expired or a related
guarantee (Agreement signing amount
announcement not party or not
date)
Guangtai Solar Energy 20 December 2017 to 6
N/A 5,450 20 December 2017 5,240 Joint liability guarantee No No
Technology (Suzhou) Co., Ltd April 2027
Huanda Trading (Hebei) Co., 15 June 2017 to 16
N/A 14,600 24 May 2017 14,540 Joint liability guarantee No No
Ltd. January 2029
Yangyuan Photovoltaic Power
11 September 2017 to 11
Generation (Huanggang) Co., N/A 4,552 11 September 2017 4,552 Joint liability guarantee No No
September 2027
Ltd
Yaoguang New Energy 31 October 2017 to 31
N/A 4,192 31 October 2017 4,192 Joint liability guarantee No No
(Shouguang) Co., Ltd October 2027
Suzhou Industrial Park Taijing 1 December 2017 to 1
N/A 3,484 1 December 2017 3,484 Joint liability guarantee No No
Photovoltaic Co., Ltd December 2027
Qingmei Solar Energy 21 December 2017 to 21
N/A 4,678 21 December 2017 4,678 Joint liability guarantee No No
Technology (Lishui) Co., Ltd December 2027
Qinghong Solar Energy 21 December 2017 to 21
N/A 2,374 21 December 2017 2,374 Joint liability guarantee No No
Technology (Jinhua) Co., Ltd December 2027
Qinghui Solar Energy 15 December 2017 to 15
N/A 3,666 15 December 2017 3,666 Joint liability guarantee No No
Technology (Jinhua) Co., Ltd December 2027
Hexu Technology (Hefei) Co., 18 May 2018 to 10 May
N/A 538 18 May 2018 538 Joint liability guarantee No No
Ltd 2028
Chenneng Technology (Hefei) N/A 1,068 18 May 2018 1,068 Joint liability guarantee 18 May 2018 to 10 May No No
31
BOE Technology Group Co., Ltd. Interim Report 2019
Co., Ltd 2028
Rongke New Energy (Hefei) 18 December 2017 to 18
N/A 1,400 18 December 2017 1,393 Joint liability guarantee No No
Co., Ltd December 2029
Tianchi New Energy (Hefei) 18 December 2017 to 18
N/A 1,100 18 December 2017 1,093 Joint liability guarantee No No
Co., Ltd December 2029
Qinghao Solar Energy 18 December 2017 to 18
N/A 890 18 December 2017 884 Joint liability guarantee No No
Technology (Jinhua) Co., Ltd December 2029
Xiangqing Solar Energy
18 December 2017 to 18
Technology (Dongyang) Co., N/A 3,476 18 December 2017 3,259 Joint liability guarantee No No
December 2029
Ltd
Qingyue Solar Energy 18 December 2017 to 18
N/A 960 18 December 2017 900 Joint liability guarantee No No
Technology (Wuyi) Co., Ltd December 2029
Qingyou Solar Energy 18 December 2017 to 18
N/A 2,210 18 December 2017 2,204 Joint liability guarantee No No
Technology (Longyou) Co., Ltd December 2029
Qingfan Solar Energy 18 December 2017 to 18
N/A 1,855 18 December 2017 1,739 Joint liability guarantee No No
Technology (Quzhou) Co., Ltd December 2029
Anhui BOE Energy Investment 27 December 2017 to 27
N/A 13,575 27 December 2017 13,485 Joint liability guarantee No No
Co., Ltd December 2029
Taihang Electric Power 19 December 2017 to 18
N/A 600 19 December 2017 544 Joint liability guarantee No No
Technology (Ningbo) Co., Ltd December 2025
19 December 2017 to 18
Guoji Energy (Ningbo) Co., Ltd N/A 2,740 19 December 2017 2,563 Joint liability guarantee No No
December 2025
Hongyang Solar Energy Power 14 December 2017 to 13
N/A 3,500 14 December 2017 3,500 Joint liability guarantee No No
Generation (Anji) Co., Ltd December 2025
Ke’enSolar Energy Power 14 December 2017 to 13
N/A 2,400 14 December 2017 2,245 Joint liability guarantee No No
Generation (Pingyang) Co., Ltd December 2025
32
BOE Technology Group Co., Ltd. Interim Report 2019
Dongze Photovoltaic Power 14 December 2017 to 13
N/A 2,100 14 December 2017 1,965 Joint liability guarantee No No
Generation (Wenzhou) Co., Ltd December 2025
Aifeisheng Investment and
14 December 2017 to 13
Management (Wenzhou) Co, N/A 1,400 14 December 2017 1,310 Joint liability guarantee No No
December 2025
Ltd
27 April 2018 to 27
Hefei BOE Hospital Co., Ltd 27 April 2018 130,000 27 April 2018 66,000 Joint liability guarantee No No
April 2033
Hengchuan New Energy 31 January 2018 to 31
N/A 6,892 31 January 2018 6,768 Joint liability guarantee No No
Technology (Hong’an) Co., Ltd January 2030
Anhui BOE Energy Investment 25 April 2018 to 25
N/A 2,060 25 April 2018 2,050 Joint liability guarantee No No
Co., Ltd April 2030
Junlong New Energy 25 April 2018 to 25
N/A 8,459 25 April 2018 8,417 Joint liability guarantee No No
Technology (Huaibin) Co., Ltd April 2030
Guangnian New Energy 13 December 2018 to 12
N/A 16,000 13 December 2018 15,968 Joint liability guarantee No No
Technology (Shaoxing) Co., Ltd December 2030
Xuhui New Energy Technology 13 December 2018 to 12
N/A 4,500 13 December 2018 4,491 Joint liability guarantee No No
(Shaoxing) Co., Ltd December 2030
12 December 2017 to 7
BOE Technology (HK) Limited N/A 110,220 31 October 2017 110,220 Pledge No No
December 2020
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees in the
0 173
Period (C1) Reporting Period (C2)
Total approved line for such guarantees at the end of the Total actual balance of such guarantees at the
360,939 295,329
Reporting Period (C3) end of the Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Total actual guarantee amount in the
2,450,000 132,875
Reporting Period (A1+B1+C1) Reporting Period (A2+B2+C2)
33
BOE Technology Group Co., Ltd. Interim Report 2019
Total approved guarantee line at the
Total actual guarantee balance at the end of
end of the Reporting Period 13,978,339 8,673,745
the Reporting Period (A4+B4+C4)
(A3+B3+C3)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 100.25%
Of which:
Amount of guarantees provided for shareholders, the actual controller and their related parties
0
(D)
Balance of debt guarantees provided directly or indirectly for obligors with an over 70%
199,848
debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 4,347,578
Total of the three amounts above (D+E+F) 4,347,578
Joint responsibilities possibly borne or already borne in the Reporting Period for undue
N/A
guarantees (if any)
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
Compound guarantees:
Naught
(2) Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
34
BOE Technology Group Co., Ltd. Interim Report 2019
XV Corporate Social Responsibility (CSR)
1. Significant Environment Protection
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major polluter by the environmental protection authorities.
Yes
Number of Distribution Discharge
Name of major Discharge Total Approved total Excessive
Name of polluter Way of discharge discharge of discharge standards
pollutants concentration discharge discharge discharge
outlets outlets implemented
COD Standard emission after Northwest 192.70mg/L 500mg/L 218.102t 702.68t None
Beijing BOE Optoelectronics
being treated by 1 corner of
Technology Co., Ltd.
Ammonia nitrogen sewage treatment system factory 9.69mg/L 45 mg/L 10.972t 55.93t None
The 4.5th generation TFT-LCD
COD Standard emission after 83.88mg/L 500mg/L 44.26t 490.51t None
production line of Chengdu North side
being treated by 1
BOE Optoelectronics of factory
Ammonia nitrogen sewage treatment system 6.99mg/L 45mg/L 3.69t 25.249t None
Technology Co., Ltd.
COD Standard emission after Northwest 51.12 380mg/L 115.118t 1059t None
Hefei BOE Optoelectronics
being treated by 1 corner of
Technology Co., Ltd.
Ammonia nitrogen sewage treatment system factory 4.75 30mg/L 11.423t 99.2t None
COD Standard emission after 147.17mg/L 500mg/l 379.25t 1618.8t None
Beijing BOE Display East gate of
being treated by 1
Technology Co., Ltd. Ammonia nitrogen factory 11.39mg/L 45mg/l 28.88t 134.4t None
sewage treatment system
COD Standard emission after Northeast 60.67mg/L 380mg/L 177.07t 1621.97t None
Hefei Xinsheng Optoelectronics
being treated by 1 gate of
Technology Co., Ltd.
Ammonia nitrogen sewage treatment system factory 13.42mg/L 30mg/L 38.32t 128.08t None
Erdos Yuansheng COD Standard emission after 1 North side 43.2mg/L 500mg/L 51.9t 713.81t None
35
BOE Technology Group Co., Ltd. Interim Report 2019
Optoelectronics Co., Ltd. being treated by of factory
Ammonia nitrogen 2.5mg/L - 3t 76.82t None
sewage treatment system
The 6th generation flexible
COD Standard emission after 29.83mg/L 500mg/L 69.53t 2213.78t None
AMOLED production line of North side
being treated by 1
Chengdu BOE Optoelectronics of factory
Ammonia nitrogen sewage treatment system 1.10mg/L 45 mg/L 2.60t 214.4t None
Technology Co., Ltd.
Chongqing BOE COD Standard emission after 111.9 400mg/L 269.17t 727.08t None
South side
Optoelectronics Technology being treated by 1
of factory
Co., Ltd. Ammonia nitrogen sewage treatment system 4.635 45mg/L 11.15t 79.424t None
COD Standard emission after 40.5mg/L 400mg/L 166.19t 1189.88t None
Hefei BOE Display Technology North side
being treated by 1
Co., Ltd. of factory
Ammonia nitrogen sewage treatment system 7.44mg/L 35mg/L 30.53t 118.98t None
COD Standard emission after Northeast 93mg/L 500mg/L 250.16t 510.35t None
Fuzhou BOE Optoelectronics
being treated by 1 side of
Technology Co., Ltd.
Ammonia nitrogen sewage treatment system factory 6.39mg/L 45mg/L 17.32t 68.05t None
COD Standard emission after 60.5mg/L 500mg/L 0.59t 11.114t None
BOE Technology Group Co., East side of
being treated by 1
Ltd. factory
Ammonia nitrogen sewage treatment system 20.7mg/L 45mg/L 0.2t 0.341t None
COD Southeast 13.5mg/L 500mg/L 0.69t 13.554t None
side of
Ammonia nitrogen Discharged into sewage factory 1.11mg/L 45mg/L 0.06t 1.01t None
BOE (Hebei) Mobile Display
treatment plant through 2
Technology Co., Ltd.
COD municipal pipes 124mg/L 500mg/L 2.52t 74.937t None
North side
of factory
Ammonia nitrogen 22.4mg/L 45mg/L 0.46t 6.744t None
36
BOE Technology Group Co., Ltd. Interim Report 2019
Construction of pollution prevention equipment and operation condition
During report period, the Company did not have important environmental problem. The Company built strict environmental
management system, and established internal organizational structure to supervise overall environmental performance of the
Company, formulated environmental management regulations and targets, carried out regular supervision for the environmental
management condition of subordinate enterprises to promote the implementation of environmental management work.
Currently, the waste water which is generated by each subordinate enterprise 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.
In additional, the exhaust gas which is emitted by each subordinate enterprise mainly comes from technology exhaust gas during
production process, generally including general exhaust gas, 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.
“4R concept” for the use of materials has been used by the Company since 2007, that is recycle (Recycle), reduction (Reduce),
renewal (Renew) and responsibility (responsibly). The Company promises that the used materials are all in accordance with
requirements of national relevant environmental regulations and the registration, assessment, permission and restriction syst em of
chemicals. In additional, the Company promotes the recycle of package materials constantly. The waste materials which are
generated by each subordinate enterprise 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 Company focuses on the recycle of water resource and advanced cleaning methods such as adverse cleaning etc are adopted for
processing equipment. Most high purity water and chemicals are recycled, reducing the consumption of high purity water, chemical
and other materials maximally and reducing the discharge of waste water and waste materials.
At present, each subordinate enterprise formulates various management methods such as water pollution management, air pollution
management standard, hazardous waste materials management standard, energy management standard etc. The methods specify the
operation and maintenance regulations and requirements of pollutant treatment system, establish regular monitoring and supervising
mechanism, in order to ensure the continuous stable operation of each system.
In recent years, the environmental emission index of the Company is up to national standards such as Sewage Comprehensive
Discharge Standard, Air Pollutant Comprehensive Emission Standard, Industrial Enterprise Environmental Noise Emission Standard
within Factory Boundary, etc and local standards. The Company will continue to promote the environmental management, devote to
forging green factory and improve environmental management level constantly.
Environmental Impact Assessment on Construction Project and Other Administrative Licenses for Environmental Protection
At present, 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.
Contingency Plan for Emergent Environmental Incidents
The Company has formulated and filed corresponding contingency plan for emergent environmental incidents in the environmental
protection agency according to relevant local 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.
37
BOE Technology Group Co., Ltd. Interim Report 2019
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 the company’s official website.
Other environment information that should be disclosed
No
Other related environment protection information
No
2. Measures Taken for Targeted Poverty Alleviation
The Company did not take any targeted measures to help people lift themselves out of poverty during the Reporting Period, also no
subsequent plans.
XVI Other Significant Events
√ Applicable □Not applicable
1. The wholly-owned subsidiary, BOE Technology (Hong Kong) Co., Ltd., filed lawsuits to Beijing Municipal Higher People's Court
against following Defendants: Letv Mobile Intelligent Information Technology (Beijing) Co.,Ltd. (referred to as “Letv Mobile
hereinafter”) , TV Plus Holdings (Beijing) Limited, Leseil Mobile Technology (Beijing) Co.,Ltd. and JiaYueting, with the total
amount of claims being about US$41.84 million. Beijing Municipal Higher People's Court issued Notice of Case Acceptance and
Civil Ruling Paper for property preservation on 6 July 2017 and 31 July 2017 respectively. Letv Mobile raised the jurisdiction
objection to Beijing Municipal Higher People's Court, which was rejected, and also instituted an appeal to the Supreme People's
Court for verdict on jurisdiction objection. The Supreme People's Court has made the final verdict that the appeal of Letv was
rejected and the original verdict was maintained. On 8 March 2019, Beijing Municipal Higher People’s Court opened a court session
for the case firstly and the next step for the Company is to wait for the notice or judgment from the court. For receivables
corresponding to aforementioned amount of claims, the Company has counted provision for bad debts as per regulations in
accounting standard accordingly; therefore, it has uncertain influences on the Company.
2. The corporate bonds (Phase I) of BOE Technology Group Co., Ltd. issued to public qualified investors from 21 March 2016 to 22
March 2016 reached 3 full years by 21 March 2019. According to regulations, the interest should be paid once per year during the
interest-bearing period. According to relevant put provisions stipulated in Raising Instruction Book on the Public-issued Corporation
Bonds (Phase I) by the Company to Qualified Investors in 2016, the Company respectively issued The First Advisory Notice on the
Non-adjustment “16BOE01” Corporate Bonds Nominal Interest Rate and the Investor Put-back Implementation Measures
(No.2019-001), The Second Advisory Notice on the Non-adjustment “16BOE01” Corporate Bonds Nominal Interest Rate and the
Investor Put-back Implementation Measures (No.2019-003) and The Third Advisory Notice on the Non-adjustment “16BOE01”
Corporate Bonds Nominal Interest Rate and the Investor Put-back Implementation Measures (No.2019-004) on 31 January 2019, 1
February 2019 and 12 February 2019. Within the put-back registration period, the investors could wholly or partially sell their
“16BOE01” shares back to the Company with the put price at RMB100/piece (excluding the interest). According to corresponding
data provided by CSDC Shenzhen, the put-back quantity of “16BOE01” was 96,705,976, and the put-back amount reached
RMB9,975,221,424.40 (including the interest). The remaining quantity subject to the trusteeship was 3,294,024. On 14 March 2019,
the Company disclosed 2019 “16BOE01” Interest Payment Announcement (No.2019-009). The interest payment scheme should be
RMB31.5 (taxes included) paid to every 10 bonds. On 21 March 2019 was the day for paying the declared put-back funds and
interests, and the Company paid corresponding put-back principal and current interests to the validly-declared put-back “16BOE01”
38
BOE Technology Group Co., Ltd. Interim Report 2019
bond holder. On 28 March 2019, the Company held the first bonds holder meeting in 2019 for the 2016 corporate bonds. At this
meeting, The Proposal on Advance Payment of 2016 Corporate Bonds of BOE was reviewed and approved, and on 29 March 2019,
The Announcement on the First Bonds Holder Meeting Resolution in 2019 for 2016 Corporate Bonds (No. 2019-022) was issued. On
3 April 2019, the Company paid corresponding interests of “16BOE01” bonds incurred from 21 March 2019 to 2 April 2019.
However, the delisting date was on 3 April 2019 and the interest payment and claims registration day was on 2 April 2019. From the
day 3 April 2019 on, “16BOE01” bonds were delisted and relevant transactions were discontinued via SZSE.
3. The Company issued Pre-disclosure Announcement on Stock Reduction of Shareholders with More than 5% Stocks
(Announcement No.: 2019-007) and Pre-disclosure Announcement on Stock Reduction of Shareholders with More than 5% Stocks
(Announcement No.: 2019-008) on 6 March 2019 respectively; shareholders of the Company as Hefei Jianxiang Investment Co., Ltd.
and Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. planned to reduce no more than 1.00% of general capital of
the Company by means of centralized competitive bidding within 3 months after 15 working days since the issuance of each
Announcement. Aforementioned stock reduction plans were completed by 26 June 2019.
4. The Company issued Announcement on 2018 Implementation of Annual Interest Distribution (Announcement No. 2019-030) on
25 May 2019. The annual interest distribution plan 2018 was reviewed and adopted in 2018 Annual General Meeting held on 26
April 2019. According to the distribution plan, the Company shall allocated annual corporate benefits in 2018 by means of RMB0.3
for every 10 shares (where, the B-share benefit distribution shall be completed with Hong Kong dollar as per conversion rate from
RMB to HKD published by People’s Bank of China on the first working day after Shareholders Meeting of the Company) without
distributing bonus share or transferring shares in the name of public reserve funds.
5. The Company disclosed the Announcement on Resolutions of the 1st Extraordinary General Meeting of 2019 (Announcement No.:
2019-037), Announcement on Resolutions of the 1st Meeting of the 9th Board of Directors (Announcement No.: 2019-039) and
Announcement on Resolutions of the 1st Meeting of the 9th Supervisory Committee (Announcement No.: 2019-040) on 29 June 2019.
Those meetings reviewed and approved proposals related to the general election and the general election has been completed. For
details, please refer to relevant announcements.
Index to disclosure website for
Overview of significant events Disclosure date
interim report
Announcement on Construction of Beijing BOE Life Technology
26 March 2019 www.cninfo.com.cn
Industrial Base (Phase I) via Investment
XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
39
BOE Technology Group Co., Ltd. Interim Report 2019
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Bonus issue
Shares Percentage (%) New issues Bonus shares Other Subtotal Shares Percentage (%)
from profit
I. Restricted shares 2,536,393 0.01% 0 0 0 -675 -675 2,535,718 0.01%
1. Shares held by State 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-owned
0 0.00% 0 0 0 0 0 0 0.00%
legal person
3. Shares held by other
2,536,393 0.01% 0 0 0 -675 -675 2,535,718 0.01%
domestic investors
Among which: Shares held by
2,536,393 0.01% 0 0 0 -675 -675 2,535,718 0.01%
domestic legal person
Shares held by domestic
0 0.00% 0 0 0 0 0 0 0.00%
natural person
4. Shares held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
investors
Among which: Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
foreign legal person
Shares held by foreign natural
0 0.00% 0 0 0 0 0 0 0.00%
person
40
BOE Technology Group Co., Ltd. Interim Report 2019
II. Non-restricted shares 34,795,862,370 99.99% 0 0 0 675 675 34,795,863,045 99.99%
1. RMB common shares 33,859,748,882 97.30% 0 0 0 675 675 33,859,749,557 97.30%
2. Domestically listed foreign
936,113,488 2.69% 0 0 0 0 0 936,113,488 2.69%
shares
3. Overseas listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 34,798,398,763 100.00% 0 0 0 0 0 34,798,398,763 100.00%
Reasons for share changes:
√Applicable □Not applicable
According to Article 3.8.7 stipulated in SZSE Mainboard-listing Company’s Standard Operation Guidance, on the first transaction day each year, for the settlement of Shenzhen Branches, the
shares held by the listed company’s directors, supervisors and senior managers on the last transaction day last year should serve as the base, and the transferable shares in this year could be
calculated based on its 25%. Meanwhile, it’s also required to unlock the circulating shares within the transferable shares this year not subject to any restriction on shares. When any decimals
appeared through calculating the lockable line of credit, the rounding-off principle should prevail; when the remaining shares in one certain account were less than 1,000, its transferable shares
in this year should be the shares held in the Company. The Company’s supervisor Mr. Chen Zhaozhen holds 900 shares of the Company which were released the restriction on trading on 2
January 2019.
Approval of share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchases:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ 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
41
BOE Technology Group Co., Ltd. Interim Report 2019
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 shares Restricted shares
Name of the Restricted shares
amount at the relieved of the increased of the amount at the Restricted reasons
shareholders relieved date
period-begin period period period-end
The Company’s supervisor Mr. Chen Zhaozhen holds 900 shares of the
Shares locked by
2,536,393 675 0 2,535,718 Company which were released the restriction on trading on 2 January 2 January 2019
senior executives
2019 in accordance with regulations.
Total 2,536,393 675 0 2,535,718 -- --
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: Share
Total number of ordinary shareholders at the period-end 1,499,878 (including 1,460,087 A-shareholders and 39,791 B-shareholders)
5% or greater ordinary shareholders or the top 10 ordinary shareholders
Increase/decrease Number of Number of Pledged or frozen
Shareholding Total shares held
Name of shareholder Nature of shareholder during the restricted non-restricted shares
percentage (%) at the period-end
Reporting Period shares held shares held Status Number
Beijing State-owned Capital Operation and State-owned legal person 11.68% 4,063,333,333 - 0 4,063,333,333 N/A 0
42
BOE Technology Group Co., Ltd. Interim Report 2019
Management Center
Chongqing Ezcapital Opto-electronics Industry
State-owned legal person 7.60% 2,643,863,541 -9,136,500 0 2,643,863,541 N/A 0
Investment Co., Ltd.
Hefei Jianxiang Investment Co., Ltd. State-owned legal person 7.21% 2,510,142,953 - 0 2,510,142,953 N/A 0
Beijing Yizhuang Investment Holdings Co., Ltd State-owned legal person 3.48% 1,210,724,041 -30,699,600 0 1,210,724,041 N/A 0
Beijing BOE Investment & Development Co., Ltd. State-owned legal person 2.36% 822,092,180 - 0 822,092,180 N/A 0
Hong Kong Securities Clearing Company Ltd. Foreign legal person 1.25% 434,248,350 -48,960,015 0 434,248,350 N/A 0
Beijing Electronics Holdings Co., Ltd. State-owned legal person 0.79% 273,735,583 - 0 273,735,583 N/A 0
Central Huijin Assets Management Co., Ltd State-owned legal person 0.71% 248,305,300 - 0 248,305,300 N/A 0
Domestic non-state-owned
China Securities Finance Corporation Limited 0.38% 132,480,249 - 0 132,480,249 N/A 0
legal person
Domestic non-state-owned
Xiamen Hengxing Group Co., Ltd. 0.37% 128,825,078 121,909,078 0 128,825,078 N/A 0
legal person
Strategic investors or general corporations becoming
top-ten shareholders due to placing of new shares (if Naught
any) (see Note 3)
1. Beijing State-owned Capital Operation and Management Center 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. and Chongqing Ezcapital Opto-electronics
Industry Investment Co., Ltd, by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares
Related or acting-in-concert parties among the held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the
shareholders above shareholders.
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center 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.
43
BOE Technology Group Co., Ltd. Interim Report 2019
5. Except for the above relationships, the Company does not know any other related party or acting-in-concert party among the top 10
shareholders.
Shareholdings of the top ten unrestricted shareholders
Number of unrestricted shares held at the Shares by type
Name of shareholder
period-end Type Shares
Beijing State-owned Capital Operation and
4,063,333,333 RMB ordinary share 4,063,333,333
Management Center
Chongqing Ezcapital Opto-electronics Industry
2,643,863,541 RMB ordinary share 2,643,863,541
Investment Co., Ltd.
Hefei Jianxiang Investment Co., Ltd. 2,510,142,953 RMB ordinary share 2,510,142,953
Beijing Yizhuang Investment Holdings Co., Ltd 1,210,724,041 RMB ordinary share 1,210,724,041
Beijing BOE Investment & Development Co., Ltd. 822,092,180 RMB ordinary share 822,092,180
Hong Kong Securities Clearing Company Ltd. 434,248,350 RMB ordinary share 434,248,350
Beijing Electronics Holdings Co., Ltd. 273,735,583 RMB ordinary share 273,735,583
Central Huijin Assets Management Co., Ltd 248,305,300 RMB ordinary share 248,305,300
China Securities Finance Corporation Limited 132,480,249 RMB ordinary share 132,480,249
Xiamen Hengxing Group Co., Ltd. 128,825,078 RMB ordinary share 128,825,078
1. Beijing State-owned Capital Operation and Management Center 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.
Related or acting-in-concert parties among top 10
3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronics
unrestricted public shareholders, as well as between top
Industry Investment Co., Ltd, by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares
10 unrestricted public shareholders and top 10
held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the
shareholders
shareholders.
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over
70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol,
44
BOE Technology Group Co., Ltd. Interim Report 2019
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. Except for the above relationships, the Company does not know any other related party or acting-in-concert party among the top 10
shareholders.
The holdings of Beijing Yizhuang Investment Holdings Co., Ltd. in the Company decreased by 30,699,600 shares due to refinancing
Top 10 ordinary shareholders involved in securities
securities lending.
margin trading (if any) (see note 4)
Xiamen Hengxing Group Co., Ltd. holds 8,406,498 shares in the Company in its account of collaterial securities for margin trading.
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.
□ Yea √ No
No such cases in the Reporting Period.
IV. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
45
BOE Technology Group Co., Ltd. Interim Report 2019
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
46
BOE Technology Group Co., Ltd. Interim Report 2019
Part VIII Directors, Supervisors, Senior Management and Staff
I Change in Shareholdings of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
Increase in Decrease in Number of the Number of the Number of the
Beginning the the Ending restricted shares restricted shares restricted shares
Name Office title Incumbent/former shareholding Reporting Reporting shareholding granted at the granted during the granted at the
(share) Period Period (share) period-begin Reporting Period period-end
(share) (share) (share) (share) (share)
Chairman of the Board, Chief of
Chen Yanshun Incumbent 600,000 0 0 600,000 0 0 0
Executive Committee
Pan Jinfeng Vice Chairman of the Board Incumbent 0 0 0 0 0 0 0
Vice Chairman of the Board,
Liu Xiaodong President and vice chairman of Incumbent 250,000 0 0 250,000 0 0 0
Executive Committee
Wang Chenyang Director Incumbent 0 0 0 0 0 0 0
Song Jie Director Incumbent 0 0 0 0 0 0 0
Director, member of Executive
Sun Yun Committee, executive vice Incumbent 223,981 0 0 223,981 0 0 0
president, CFO
Director, member of Executive
Committee, executive vice
Gao Wenbao Incumbent 90,700 0 0 90,700 0 0 0
president, and CEO of Display
&Sensor Devices Business Group
47
BOE Technology Group Co., Ltd. Interim Report 2019
Li Yantao Director Incumbent 0 0 0 0 0 0 0
Lyu Tingjie Independent director Incumbent 0 0 0 0 0 0 0
Wang Huacheng Independent director Incumbent 0 0 0 0 0 0 0
Hu Xiaolin Independent director Incumbent 0 0 0 0 0 0 0
Li Xuan Independent director Incumbent 0 0 0 0 0 0 0
Chairman of the Supervisory
Yang Xiangdong Incumbent 0 0 0 0 0 0 0
Committee
Xu Tao Supervisor Incumbent 0 0 0 0 0 0 0
Wei Shuanglai Supervisor Incumbent 0 0 0 0 0 0 0
Chen Xiaobei Supervisor Incumbent 0 0 0 0 0 0 0
Shi Hong Supervisor Incumbent 0 0 0 0 0 0 0
Xu Yangping Employee supervisor Incumbent 0 0 0 0 0 0 0
He Daopin Employee supervisor Incumbent 0 0 0 0 0 0 0
Yan Jun Employee supervisor Incumbent 0 0 0 0 0 0 0
Teng Jiao Employee supervisor Incumbent 0 0 0 0 0 0 0
Member of Executive Committee,
Yao Xiangjun executive vice president and CEO Incumbent 100,000 0 0 100,000 0 0 0
of Digital Art Business Group
Member of Executive Committee,
executive vice president and CEO
Zhang Zhaohong Incumbent 328,700 0 0 328,700 0 0 0
of Mobile Healthcare Business
Group
Member of Executive Committee,
Zhong Huifeng Incumbent 150,000 0 0 150,000 0 0 0
executive vice president and CHO
Feng Liqiong Member of Executive Committee, Incumbent 200,000 0 0 200,000 0 0 0
48
BOE Technology Group Co., Ltd. Interim Report 2019
executive vice president and chief
lawyer
Member of Executive Committee,
Xie Zhongdong senior vice president, chief auditor Incumbent 200,000 0 0 200,000 0 0 0
and CRO
Member of Executive Committee,
Miao Chuanbin Incumbent 1,800 0 0 1,800 0 0 0
executive vice president and CCO
Vice president and Secretary of the
Liu Hongfeng Incumbent 154,500 0 0 154,500 0 0 0
Board
Wang Dongsheng Chairman of the Board Former 299,905 0 0 299,905 0 0 0
Xie Xiaoming Vice Chairman of the Board Former 7,680 0 0 7,680 0 0 0
Zhao Wei Supervisor Former 0 0 0 0 0 0 0
Zhuang Haoyu Supervisor Former 0 0 0 0 0 0 0
Chen Zhaozhen Supervisor Former 900 0 0 900 0 0 0
Dong Youmei Senior executive Former 226,400 0 0 226,400 0 0 0
Yue Zhanqiu Senior executive Former 220,000 0 0 220,000 0 0 0
Feng Qiang Senior executive Former 120,000 0 0 120,000 0 0 0
Yang Anle Senior executive Former 150,000 0 150,000 0 0 0
Tong Guanshan Senior executive Former 0 0 0 0 0 0 0
Jing Linfeng Senior executive Former 145,000 0 0 145,000 0 0 0
Total -- -- 3,469,566 0 0 3,469,566 0 0 0
II Changes in Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
49
BOE Technology Group Co., Ltd. Interim Report 2019
Name Office title Type of change Date Reason
Wang Dongsheng Chairman of the Board Leave the post 28 June 2019 Change the term of office
Xie Xiaoming Vice Chairman of the Board Leave the post 28 June 2019 Change the term of office
Zhao Wei Supervisor Leave the post 28 June 2019 Change the term of office
Zhuang Haoyu Supervisor Leave the post 28 June 2019 Change the term of office
Chen Zhaozhen Supervisor Leave the post 28 June 2019 Change the term of office
Miao Chuanbin Employee supervisor Leave the post 28 June 2019 Change the term of office
Dong Youmei Senior executive Leave the post 28 June 2019 Change the term of office
Yue Zhanqiu Senior executive Leave the post 28 June 2019 Change the term of office
Feng Qiang Senior executive Leave the post 28 June 2019 Change the term of office
Yang Anle Senior executive Leave the post 28 June 2019 Change the term of office
Tong Guanshan Senior executive Leave the post 28 June 2019 Change the term of office
Jing Linfeng Senior executive Leave the post 28 June 2019 Change the term of office
Chen Yanshun Chairman of the Board Elected 28 June 2019 Change the term of office
Pan Jinfeng Vice Chairman of the Board Elected 28 June 2019 Change the term of office
Liu Xiaodong Vice Chairman of the Board Elected 28 June 2019 Change the term of office
Chen Xiaobei Supervisor Elected 28 June 2019 Change the term of office
Wei Shuanglai Supervisor Elected 28 June 2019 Change the term of office
Yan Jun Employee supervisor Elected 28 June 2019 Change the term of office
Teng Jiao Employee supervisor Elected 28 June 2019 Change the term of office
Miao Chuanbin Senior executive Engaged 28 June 2019 Change the term of office
50
BOE Technology Group Co., Ltd. Interim Report 2019
Part IX Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of this
Report or were due but could not be redeemed in full?
No
51
BOE Technology Group Co., Ltd. Interim Report 2019
Part X Financial Statements
I. Auditor’s Report
Whether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.
II. Financial Statements
The unit of the financial statements attached: RMB
1. Consolidated Balance Sheet
Prepared by BOE Technology Group Co., Ltd.
Unit: RMB
Item 30 June 2019 31 December 2018
Current assets:
Monetary capital 47,191,670,697.00 51,481,539,711.00
Settlement reserve 0.00 0.00
Interbank loans granted 0.00 0.00
Trading financial assets 3,932,990,942.00 0.00
Financial assets at fair value through profit or loss 0.00 0.00
Derivative financial assets 0.00 0.00
Notes receivable 140,924,135.00 656,781,577.00
Accounts receivable 19,267,673,050.00 19,880,680,518.00
Financing backed by accounts receivable 0.00 0.00
Prepayments 670,390,512.00 770,633,448.00
Premiums receivable 0.00 0.00
Reinsurance receivables 0.00 0.00
Receivable reinsurance contract reserve 0.00 0.00
Other receivables 662,620,903.00 2,454,174,971.00
Including: Interest receivable 173,298,920.00 140,597,317.00
Dividends receivable 4,367,120.00 3,711,768.00
Financial assets purchased under resale agreements 0.00 0.00
52
BOE Technology Group Co., Ltd. Interim Report 2019
Inventories 14,352,489,459.00 11,985,398,172.00
Contract assets 0.00 0.00
Assets classified as held for sale 0.00 0.00
Current portion of non-current assets 0.00 0.00
Other current assets 8,311,011,893.00 12,463,073,779.00
Total current assets 94,529,771,591.00 99,692,282,176.00
Non-current assets:
Loans and advances to customers 0.00 0.00
Investments in debt obligations 0.00 0.00
Available-for-sale financial assets 0.00 734,022,359.00
Investments in other debt obligations 0.00 0.00
Held-to-maturity investments 0.00 0.00
Long-term receivables 0.00 0.00
Long-term equity investments 2,625,460,926.00 2,389,166,886.00
Investments in other equity instruments 704,070,571.00 0.00
Other non-current financial assets 13,757,311.00 0.00
Investment property 1,261,474,153.00 1,283,867,651.00
Fixed assets 128,481,365,480.00 128,157,730,995.00
Construction in progress 71,479,480,514.00 56,423,354,887.00
Productive living assets 0.00 0.00
Oil and gas assets 0.00 0.00
Right-of-use assets 0.00 0.00
Intangible assets 6,902,908,809.00 5,937,679,394.00
R&D expense 0.00 0.00
Goodwill 904,370,509.00 904,370,509.00
Long-term prepaid expense 407,485,249.00 360,640,853.00
Deferred income tax assets 219,508,593.00 252,373,622.00
Other non-current assets 9,532,176,903.00 7,893,002,053.00
Total non-current assets 222,532,059,018.00 204,336,209,209.00
Total assets 317,061,830,609.00 304,028,491,385.00
Current liabilities:
Short-term borrowings 7,719,908,693.00 5,449,954,885.00
Borrowings from central bank 0.00 0.00
Interbank loans obtained 0.00 0.00
53
BOE Technology Group Co., Ltd. Interim Report 2019
Trading financial liabilities 0.00 0.00
Financial liabilities at fair value through profit or loss 0.00 0.00
Derivative financial liabilities 0.00 0.00
Notes payable 1,061,230,891.00 591,109,272.00
Accounts payable 20,563,920,823.00 22,213,956,616.00
Advances from customers 1,245,359,776.00 1,218,934,743.00
Financial assets sold under repurchase agreements 0.00 0.00
Customer deposits and interbank deposits 0.00 0.00
Payables for acting trading of securities 0.00 0.00
Payables for underwriting of securities 0.00 0.00
Payroll payable 1,318,376,546.00 2,224,931,171.00
Taxes payable 613,003,188.00 970,108,298.00
Other payables 26,202,215,431.00 22,956,979,828.00
Including: Interest payable 893,836,112.00 1,016,761,921.00
Dividends payable 10,999,707.00 23,648,778.00
Handling charges and commissions payable 0.00 0.00
Reinsurance payables 0.00 0.00
Contract liabilities 0.00 0.00
Liabilities directly associated with assets classified as held
0.00 0.00
for sale
Current portion of non-current liabilities 7,282,992,933.00 5,597,563,204.00
Other current liabilities 1,143,477,445.00 1,004,557,061.00
Total current liabilities 67,150,485,726.00 62,228,095,078.00
Non-current liabilities:
Insurance contract reserve 0.00 0.00
Long-term borrowings 107,924,953,091.00 94,780,077,864.00
Bonds payable 309,933,489.00 10,288,666,233.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Lease liabilities 0.00 0.00
Long-term payables 1,127,696,942.00 1,416,092,239.00
Long-term payroll payable 0.00 0.00
Provisions 16,457,010.00 16,457,010.00
Deferred income 2,514,776,723.00 2,187,558,533.00
54
BOE Technology Group Co., Ltd. Interim Report 2019
Deferred income tax liabilities 1,478,963,366.00 1,419,373,545.00
Other non-current liabilities 12,047,294,154.00 11,334,873,322.00
Total non-current liabilities 125,420,074,775.00 121,443,098,746.00
Total liabilities 192,570,560,501.00 183,671,193,824.00
Owners’ equity:
Share capital 34,798,398,763.00 34,798,398,763.00
Other equity instruments 0.00 0.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Capital reserves 38,212,922,001.00 38,213,100,596.00
Less: Treasury stock 0.00 0.00
Other comprehensive income -283,317,844.00 -125,258,252.00
Specific reserve 0.00 0.00
Surplus reserves 1,152,625,429.00 1,152,626,310.00
General reserve 0.00 0.00
Retained earnings 12,642,719,479.00 11,817,881,286.00
Total equity attributable to owners of the Company as the 86,523,347,828.00
85,856,748,703.00
parent
Non-controlling interests 37,967,922,280.00 34,500,548,858.00
Total owners’ equity 124,491,270,108.00 120,357,297,561.00
Total liabilities and owners’ equity 317,061,830,609.00 304,028,491,385.00
Legal representative: Chen Yanshun President ：Liu Xiaodong
Chief Financial Officer: Sun Yun Head of financial department: Yang Xiaoping
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2019 31 December 2018
Current assets:
Monetary capital 1,356,771,901.00 3,829,814,050.00
Trading financial assets 0.00 0.00
Financial assets at fair value through profit or loss 0.00 0.00
Derivative financial assets 0.00 0.00
Notes receivable 0.00 1,500,000.00
Accounts receivable 903,440,719.00 36,952,623.00
55
BOE Technology Group Co., Ltd. Interim Report 2019
Financings backed by accounts receivable 0.00 0.00
Prepayments 49,197,772.00 25,020,734.00
Other receivables 3,150,744,730.00 2,015,828,460.00
Including: Interest receivable 9,216,577.00 9,659,279.00
Dividends receivable 10,874,738.00 14,115,915.00
Inventories 11,166,746.00 9,289,141.00
Contract assets 0.00 0.00
Assets classified as held for sale 0.00 0.00
Current portion of non-current assets 200,000,000.00 450,000,000.00
Other current assets 21,778,708.00 47,805,096.00
Total current assets 5,693,100,576.00 6,416,210,104.00
Non-current assets:
Investments in debt obligations 0.00 0.00
Available-for-sale financial assets 0.00 128,297,254.00
Investments in other debt obligations 0.00 0.00
Held-to-maturity investments 0.00 0.00
Long-term receivables 0.00 0.00
Long-term equity investments 147,579,422,075.00 143,499,733,485.00
Investments in other equity instruments 139,510,683.00 0.00
Other non-current financial assets 0.00 0.00
Investment property 285,354,375.00 290,253,475.00
Fixed assets 933,022,884.00 969,371,352.00
Construction in progress 282,856,396.00 251,314,313.00
Productive living assets 0.00 0.00
Oil and gas assets 0.00 0.00
Right-of-use assets 0.00 0.00
Intangible assets 1,527,022,834.00 514,186,496.00
R&D expense 0.00 0.00
Goodwill 0.00 0.00
Long-term prepaid expense 108,897,429.00 99,701,797.00
Deferred income tax assets 248,196,280.00 290,794,548.00
Other non-current assets 83,229,901.00 284,243,667.00
Total non-current assets 151,187,512,857.00 146,327,896,387.00
Total assets 156,880,613,433.00 152,744,106,491.00
56
BOE Technology Group Co., Ltd. Interim Report 2019
Current liabilities:
Short-term borrowings 3,440,000,000.00 1,000,000,000.00
Trading financial liabilities 0.00 0.00
Financial liabilities at fair value through profit or loss 0.00 0.00
Derivative financial liabilities 0.00 0.00
Notes payable 0.00 0.00
Accounts payable 88,987,036.00 35,322,286.00
Advances from customers 1,209,160,813.00 1,577,035,515.00
Contract liabilities 0.00 0.00
Payroll payable 110,017,256.00 201,139,261.00
Taxes payable 158,770,296.00 250,558,556.00
Other payables 6,344,295,425.00 8,209,736,090.00
Including: Interest payable 228,061,452.00 330,964,989.00
Dividends payable 6,451,171.00 6,451,171.00
Liabilities directly associated with assets classified as held
0.00 0.00
for sale
Current portion of non-current liabilities 2,313,400,000.00 2,590,000,000.00
Other current liabilities 10,134,611.00 0.00
Total current liabilities 13,674,765,437.00 13,863,791,708.00
Non-current liabilities:
Long-term borrowings 34,370,830,556.00 26,520,000,000.00
Bonds payable 0.00 9,976,533,425.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Lease liabilities 0.00 0.00
Long-term payables 0.00 0.00
Long-term payroll payable 0.00 0.00
Provisions 0.00 0.00
Deferred income 5,070,274,709.00 5,523,949,841.00
Deferred income tax liabilities 0.00 0.00
Other non-current liabilities 26,613,341,917.00 20,954,104,125.00
Total non-current liabilities 66,054,447,182.00 62,974,587,391.00
Total liabilities 79,729,212,619.00 76,838,379,099.00
Owners’ equity:
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BOE Technology Group Co., Ltd. Interim Report 2019
Share capital 34,798,398,763.00 34,798,398,763.00
Other equity instruments 0.00 0.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Capital reserves 37,590,966,191.00 37,590,966,191.00
Less: Treasury stock 0.00 0.00
Other comprehensive income -99,717,652.00 -28,507,585.00
Specific reserve 0.00 0.00
Surplus reserves 1,152,625,429.00 1,152,626,310.00
Retained earnings 3,709,128,083.00 2,392,243,713.00
Total owners’ equity 77,151,400,814.00 75,905,727,392.00
Total liabilities and owners’ equity 156,880,613,433.00 152,744,106,491.00
3. Consolidated Income Statement
Unit: RMB
Item H1 2019 H1 2018
1. Revenue 55,039,208,687.00 43,473,904,966.00
Including: Operating revenue 55,039,208,687.00 43,473,904,966.00
Interest income 0.00 0.00
Premium income 0.00 0.00
Handling charge and commission income 0.00 0.00
2. Costs and expenses 53,891,069,026.00 41,687,007,407.00
Including: Cost of sales 45,812,333,231.00 35,144,582,131.00
Interest expense 0.00 0.00
Handling charge and commission expense 0.00 0.00
Surrenders 0.00 0.00
Net claims paid 0.00 0.00
Net amount provided as insurance contract reserve 0.00 0.00
Expenditure on policy dividends 0.00 0.00
Reinsurance premium expense 0.00 0.00
Taxes and surcharges 424,853,407.00 302,565,754.00
Selling expense 1,365,287,286.00 1,294,782,594.00
Administrative expense 2,197,183,494.00 2,143,708,550.00
R&D expense 2,924,658,236.00 1,600,194,723.00
58
BOE Technology Group Co., Ltd. Interim Report 2019
Finance costs 1,166,753,372.00 1,201,173,655.00
Including: Interest expense 1,535,561,809.00 1,427,741,240.00
Interest income 398,822,857.00 345,988,686.00
Add: Other income 1,117,952,927.00 1,904,160,159.00
Return on investment (“-” for loss) 13,565,371.00 166,924,013.00
Including: Share of profit or loss of joint ventures and
-16,571,961.00 -29,578,579.00
associates
Income from the derecognition of financial
0.00 0.00
assets at amortized cost (“-” for loss)
Foreign exchange gain (“-” for loss) 0.00 0.00
Net gain on exposure hedges (“-” for loss) 0.00 0.00
Gain on changes in fair value (“-” for loss) 55,666,155.00 0.00
Credit impairment loss (“-” for loss) -20,230,445.00 0.00
Asset impairment loss (“-” for loss) -598,106,867.00 -458,149,260.00
Asset disposal income (“-” for loss) 373,679.00 -158,511.00
3. Operating profit (“-” for loss) 1,717,360,481.00 3,399,673,960.00
Add: Non-operating income 96,343,532.00 96,641,868.00
Less: Non-operating expense 11,848,340.00 7,653,811.00
4. Profit before tax (“-” for loss) 1,801,855,673.00 3,488,662,017.00
Less: Income tax expense 673,775,041.00 659,568,560.00
5. Net profit (“-” for net loss) 1,128,080,632.00 2,829,093,457.00
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net
1,128,080,632.00 2,829,093,457.00
loss)
5.1.2 Net profit from discontinued operations (“-” for net
0.00 0.00
loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company as 1,668,448,449.00
2,975,206,500.00
the parent
5.2.1 Net profit attributable to non-controlling interests -540,367,817.00 -146,113,043.00
6. Other comprehensive income, net of tax 48,896,505.00 -223,269,396.00
Attributable to owners of the Company as the parent 48,131,789.00 -238,286,517.00
6.1 Items that will not be reclassified to profit or loss -23,607,052.00 0.00
6.1.1 Changes caused by remeasurements on defined
0.00 0.00
benefit pension schemes
6.1.2 Other comprehensive income that will not be 0.00 0.00
59
BOE Technology Group Co., Ltd. Interim Report 2019
reclassified to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in other
-23,607,052.00 0.00
equity instruments
6.1.4 Changes in the fair value of the company’s credit
0.00 0.00
risks
6.1.5 Other 0.00 0.00
6.2 Items that will be reclassified to profit or loss 71,738,841.00 -238,286,517.00
6.2.1 Other comprehensive income that will be
175,359,777.00 0.00
reclassified to profit or loss under the equity method
6.2.2 Changes in the fair value of investments in other
0.00 0.00
debt obligations
6.2.3 Gain/Loss on changes in the fair value of
0.00 -91,055,052.00
available-for-sale financial assets
6.2.4 Other comprehensive income arising from the
0.00 0.00
reclassification of financial assets
6.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial 0.00 0.00
assets
6.2.6 Allowance for credit impairments in investments in
0.00 0.00
other debt obligations
6.2.7 Reserve for cash flow hedges 0.00 0.00
6.2.8 Differences arising from the translation of foreign
-103,620,936.00 -147,231,465.00
currency-denominated financial statements
6.2.9 Other 0.00 0.00
Attributable to non-controlling interests 764,716.00 15,017,121.00
7. Total comprehensive income 1,176,977,137.00 2,605,824,061.00
Attributable to owners of the Company as the parent 1,716,580,238.00 2,736,919,983.00
Attributable to non-controlling interests -539,603,101.00 -131,095,922.00
8. Earnings per share
8.1 Basic earnings per share 0.048 0.085
8.2 Diluted earnings per share 0.048 0.085
Where business mergers under the same control occurred in the Reporting Period, the net profit achieved by the merged parties
before the business mergers was RMB0.00, with the corresponding amount for the last period being RMB 0.00.
Legal representative: Chen Yanshun President ：Liu Xiaodong
Chief Financial Officer: Sun Yun Head of financial department: Yang Xiaoping
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BOE Technology Group Co., Ltd. Interim Report 2019
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2019 H1 2018
1. Operating revenue 2,889,695,832.00 2,146,860,956.00
Less: Cost of sales 9,226,588.00 12,786,733.00
Taxes and surcharges 18,763,125.00 24,031,851.00
Selling expense 0.00 433,606.00
Administrative expense 303,106,493.00 326,721,457.00
R&D expense 933,795,965.00 493,551,654.00
Finance costs 489,514,994.00 378,937,888.00
Including: Interest expense 504,784,910.00 400,036,107.00
Interest income 18,361,098.00 20,910,083.00
Add: Other income 467,980,287.00 532,427,665.00
Return on investment (“-” for loss) 792,194,279.00 884,469,030.00
Including: Share of profit or loss of joint ventures and
-16,519,688.00 -17,602,562.00
associates
Income from the derecognition of financial assets at
0.00 0.00
amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss) 0.00 0.00
Gain on changes in fair value (“-” for loss) 0.00 0.00
Credit impairment loss (“-” for loss) -7,044,401.00 0.00
Asset impairment loss (“-” for loss) 0.00 0.00
Asset disposal income (“-” for loss) 0.00 0.00
2. Operating profit (“-” for loss) 2,388,418,832.00 2,327,294,462.00
Add: Non-operating income 2,447,285.00 3,317,848.00
Less: Non-operating expense 849,038.00 576,343.00
3. Profit before tax (“-” for loss) 2,390,017,079.00 2,330,035,967.00
Less: Income tax expense 285,273,969.00 214,413,263.00
4. Net profit (“-” for net loss) 2,104,743,110.00 2,115,622,704.00
4.1 Net profit from continuing operations (“-” for net loss) 2,104,743,110.00 2,115,622,704.00
4.2 Net profit from discontinued operations (“-” for net loss) 0.00 0.00
5. Other comprehensive income, net of tax 184,891,191.00 -34,867,001.00
5.1 Items that will not be reclassified to profit or loss 9,531,414.00 0.00
5.1.1 Changes caused by remeasurements on defined benefit 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
pension schemes
5.1.2 Other comprehensive income that will not be reclassified
0.00 0.00
to profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other equity
9,531,414.00 0.00
instruments
5.1.4 Changes in the fair value of the company’s credit risks 0.00 0.00
5.1.5 Other 0.00 0.00
5.2 Items that will be reclassified to profit or loss 175,359,777.00 -34,867,001.00
5.2.1 Other comprehensive income that will be reclassified to
175,359,777.00 0.00
profit or loss under the equity method
5.2.2 Changes in the fair value of investments in other debt
0.00 0.00
obligations
5.2.3 Gain/Loss on changes in the fair value of
0.00 -34,867,001.00
available-for-sale financial assets
5.2.4 Other comprehensive income arising from the
0.00 0.00
reclassification of financial assets
5.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial 0.00 0.00
assets
5.2.6 Allowance for credit impairments in investments in other
0.00 0.00
debt obligations
5.2.7 Reserve for cash flow hedges 0.00 0.00
5.2.8 Differences arising from the translation of foreign
0.00 0.00
currency-denominated financial statements
5.2.9 Other 0.00 0.00
6. Total comprehensive income 2,289,634,301.00 2,080,755,703.00
7. Earnings per share
7.1 Basic earnings per share 0.060 0.061
7.2 Diluted earnings per share 0.060 0.061
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2019 H1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 65,478,619,218.00 46,922,249,284.00
Net increase in customer deposits and interbank deposits 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Net increase in borrowings from central bank 0.00 0.00
Net increase in loans from other financial institutions 0.00 0.00
Premiums received on original insurance contracts 0.00 0.00
Net proceeds from reinsurance 0.00 0.00
Net increase in deposits and investments of policy holders 0.00 0.00
Interest, handling charges and commissions received 0.00 0.00
Net increase in interbank loans obtained 0.00 0.00
Net increase in proceeds from repurchase transactions 0.00 0.00
Net proceeds for acting trading of securities 0.00 0.00
Tax rebates 4,153,126,609.00 3,252,910,154.00
Cash generated from other operating activities 4,211,734,116.00 3,031,879,238.00
Subtotal of cash generated from operating activities 73,843,479,943.00 53,207,038,676.00
Payments for commodities and services 50,374,068,234.00 31,789,388,744.00
Net increase in loans and advances to customers 0.00 0.00
Net increase in deposits in central bank and in interbank
0.00 0.00
loans granted
Payments for claims on original insurance contracts 0.00 0.00
Net increase in financial assets held for trading 0.00 0.00
Net increase in interbank loans granted 0.00 0.00
Interest, handling charges and commissions paid 0.00 0.00
Policy dividends paid 0.00 0.00
Cash paid to and for employees 5,573,637,042.00 5,206,850,022.00
Taxes paid 2,198,469,763.00 1,826,914,249.00
Cash used in other operating activities 4,102,320,555.00 2,802,378,487.00
Subtotal of cash used in operating activities 62,248,495,594.00 41,625,531,502.00
Net cash generated from/used in operating activities 11,594,984,349.00 11,581,507,174.00
2. Cash flows from investing activities:
Proceeds from disinvestment 18,789,102,436.00 42,727,697,470.00
Return on investment 151,529,241.00 225,460,451.00
Net proceeds from the disposal of fixed assets, intangible
355,478,346.00 6,071,367.00
assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
0.00 0.00
business units
Cash generated from other investing activities 108,292,744.00 3,878,193,685.00
Subtotal of cash generated from investing activities 19,404,402,767.00 46,837,422,973.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Payments for the acquisition of fixed assets, intangible assets 25,040,541,960.00
22,369,952,658.00
and other long-lived assets
Payments for investments 15,917,595,394.00 46,687,262,053.00
Net increase in pledged loans granted 0.00 0.00
Net payments for the acquisition of subsidiaries and other
0.00 0.00
business units
Cash used in other investing activities 56,414,722.00 1,729,746,759.00
Subtotal of cash used in investing activities 41,014,552,076.00 70,786,961,470.00
Net cash generated from/used in investing activities -21,610,149,309.00 -23,949,538,497.00
3. Cash flows from financing activities:
Capital contributions received 4,049,510,000.00 4,211,130,000.00
Including: Capital contributions by non-controlling interests to
4,049,510,000.00 4,211,130,000.00
subsidiaries
Borrowings obtained 27,379,807,336.00 16,019,313,696.00
Net proceeds from issuance of bonds 0.00 0.00
Cash generated from other financing activities 133,415,725.00 1,736,188,263.00
Subtotal of cash generated from financing activities 31,562,733,061.00 21,966,631,959.00
Repayments of borrowings 20,994,050,384.00 9,708,459,433.00
Payments for interest and dividends 3,614,070,682.00 3,920,842,959.00
Including: Dividends paid by subsidiaries to non-controlling
36,394,420.00 0.00
interests
Cash used in other financing activities 73,504,151.00 188,678,823.00
Subtotal of cash used in financing activities 24,681,625,217.00 13,817,981,215.00
Net cash generated from/used in financing activities 6,881,107,844.00 8,148,650,744.00
4. Effect of foreign exchange rate changes on cash and cash 26,694,157.00
-603,907,413.00
equivalents
5. Net increase in cash and cash equivalents -3,107,362,959.00 -4,823,287,992.00
Add: Cash and cash equivalents, beginning of the period 43,350,696,520.00 47,913,287,583.00
6. Cash and cash equivalents, end of the period 40,243,333,561.00 43,089,999,591.00
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2019 H1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 2,957,952,087.00 3,175,402,626.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Tax rebates 0.00 2,294,981.00
Cash generated from other operating activities 152,224,777.00 431,273,788.00
Subtotal of cash generated from operating activities 3,110,176,864.00 3,608,971,395.00
Payments for commodities and services 2,289,301,920.00 242,669,705.00
Cash paid to and for employees 641,963,448.00 495,217,910.00
Taxes paid 474,699,572.00 388,375,276.00
Cash used in other operating activities 289,787,986.00 49,861,076.00
Subtotal of cash used in operating activities 3,695,752,926.00 1,176,123,967.00
Net cash generated from/used in operating activities -585,576,062.00 2,432,847,428.00
2. Cash flows from investing activities:
Proceeds from disinvestment 306,360,000.00 506,475,341.00
Return on investment 545,676,646.00 614,938,715.00
Net proceeds from the disposal of fixed assets, intangible
140.00 5,330.00
assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
0.00 0.00
business units
Cash generated from other investing activities 491,043,184.00 3,464,350,013.00
Subtotal of cash generated from investing activities 1,343,079,970.00 4,585,769,399.00
Payments for the acquisition of fixed assets, intangible assets
860,127,202.00 139,310,504.00
and other long-lived assets
Payments for investments 3,960,930,200.00 9,916,742,439.00
Net payments for the acquisition of subsidiaries and other
0.00 0.00
business units
Cash used in other investing activities 2,317,216,289.00 200,000,000.00
Subtotal of cash used in investing activities 7,138,273,691.00 10,256,052,943.00
Net cash generated from/used in investing activities -5,795,193,721.00 -5,670,283,544.00
3. Cash flows from financing activities:
Capital contributions received 0.00 0.00
Borrowings obtained 12,504,230,556.00 3,567,000,000.00
Net proceeds from the issuance of bonds 0.00 0.00
Cash generated from other financing activities 3,967,183,652.00 7,306,322,534.00
Subtotal of cash generated from financing activities 16,471,414,208.00 10,873,322,534.00
Repayments of borrowings 10,890,000,000.00 3,882,732,992.00
Payments for interest and dividends 1,658,259,754.00 2,224,217,165.00
Cash used in other financing activities 1,796,768.00 700,000,000.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Subtotal of cash used in financing activities 12,550,056,522.00 6,806,950,157.00
Net cash generated from/used in financing activities 3,921,357,686.00 4,066,372,377.00
4. Effect of foreign exchange rate changes on cash and cash
-13,630,052.00 43,102,003.00
equivalents
5. Net increase in cash and cash equivalents -2,473,042,149.00 872,038,264.00
Add: Cash and cash equivalents, beginning of the period 3,829,814,050.00 2,990,801,501.00
6. Cash and cash equivalents, end of the period 1,356,771,901.00 3,862,839,765.00
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BOE Technology Group Co., Ltd. Interim Report 2019
7. Consolidated Statements of Changes in Owners’ Equity
H1 2019
Unit: RMB
H1 2019
Equity attributable to owners of the Company as the parent
Item Other equity instruments Non-controlling
Less: Other Genera
Specific Total owners’ equity
Share capital Capital reserves Treasur comprehensive Surplus reserves l Retained earnings Other Subtotal interests
Preferred Perpetua
Other reserve
shares l bonds y stock income reserve
1. Balances as
38,213,100,596.0 -125,258,252.0
at the end of 34,798,398,763.00 0.00 0.00 0.00 0.00 0.00 1,152,626,310.00 0.00 11,817,881,286.00 0.00 85,856,748,703.00 34,500,548,858.00 120,357,297,561.00
0 0
the prior year
Add:
Adjustments
-206,191,381.0
for changed 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -881.00 0.00 200,341,707.00 0.00 -5,850,555.00 -1,223,107.00 -7,073,662.00
0
accounting
policies
Adjustments
for corrections 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
of previous
errors
Adjustments
for business
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
combinations
under
common
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BOE Technology Group Co., Ltd. Interim Report 2019
control
Other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
adjustments
2. Balances as
at the 38,213,100,596.0 -331,449,633.0
34,798,398,763.00 0.00 0.00 0.00 0.00 0.00 1,152,625,429.00 0.00 12,018,222,993.00 0.00 85,850,898,148.00 34,499,325,751.00 120,350,223,899.00
beginning of 0 0
the year
3. Increase/
decrease in 48,131,789.0
0.00 0.00 0.00 0.00 -178,595.00 0.00 0.00 0.00 0.00 624,496,486.00 0.00 672,449,680.00 3,468,596,529.00 4,141,046,209.00
the period (“-” 0
for decrease)
3.1 Total
48,131,789.0 1,668,448,449.0
comprehensiv 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,716,580,238.00 -539,603,101.00 1,176,977,137.00
0 0
e income
3.2 Capital
increased and
0.00 0.00 0.00 0.00 -178,595.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -178,595.00 4,011,048,595.00 4,010,870,000.00
reduced by
owners
3.2.1 Ordinary
shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
increased by
shareholders
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BOE Technology Group Co., Ltd. Interim Report 2019
3.2.2 Capital
increased by
holders of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
other equity
instruments
3.2.3
Share-based
payments
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
included in
owners’
equity
3.2.4 Other 0.00 0.00 0.00 0.00 -178,595.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -178,595.00 4,011,048,595.00 4,010,870,000.00
3.3 Profit
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,043,951,963.00 0.00 -1,043,951,963.00 -2,848,965.00 -1,046,800,928.00
distribution
3.3.1
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to surplus
reserves
3.3.2
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to general
reserve
3.3.3
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,043,951,963.00 0.00 -1,043,951,963.00 -2,848,965.00 -1,046,800,928.00
to owners (or
shareholders)
3.3.4
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
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BOE Technology Group Co., Ltd. Interim Report 2019
3.4
Transfers
within 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’
equity
3.4.1
Increase in
capital (or
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
from surplus
reserves
3.4.3
Loss offset by
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
surplus
reserves
70
BOE Technology Group Co., Ltd. Interim Report 2019
3.4.4
Changes in
defined
benefit
pension 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensiv
e income 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
transferred to
retained
earnings
3.4.6
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.5 Specific
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.5.1
Increase in the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
3.5.2
Used in the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
3.6 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
4. Balances as
38,212,922,001.0 -283,317,844.0 86,523,347,828.0 37,967,922,280.0 124,491,270,108.0
at the end of 34,798,398,763.00 0.00 0.00 0.00 0.00 0.00 1,152,625,429.00 0.00 12,642,719,479.00 0.00
0 0 0 0 0
the period
H1 2018
Unit: RMB
H1 2018
Equity attributable to owners of the Company as the parent
Other equity
Item Less:
instruments Other Non-controlling
Treasu Specific General Total owners’ equity
Share capital Capital reserves comprehensive Surplus reserves Retained earnings Other Subtotal interests
Preferr
Perpetual ry reserve reserve
ed Other income
bonds stock
shares
1. Balances as
at the end of 34,798,398,763.00 0.00 0.00 0.00 38,585,515,122.00 0.00 150,602,933.00 0.00 889,640,475.00 0.00 10,385,659,084.00 0.00 84,809,816,377.00 19,474,446,456.00 104,284,262,833.00
the prior year
Add:
Adjustments
for changed 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
accounting
policies
Adjustments
for corrections
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
of previous
errors
Adjustments
for business 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
combinations
72
BOE Technology Group Co., Ltd. Interim Report 2019
under common
control
Other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
adjustments
2. Balances as
at the
34,798,398,763.00 0.00 0.00 0.00 38,585,515,122.00 0.00 150,602,933.00 0.00 889,640,475.00 0.00 10,385,659,084.00 0.00 84,809,816,377.00 19,474,446,456.00 104,284,262,833.00
beginning of
the year
3. Increase/
decrease in the
0.00 0.00 0.00 0.00 -340,753,766.00 0.00 -238,286,517.00 0.00 0.00 0.00 1,234,416,621.00 0.00 655,376,338.00 7,454,228,908.00 8,109,605,246.00
period (“-” for
decrease)
3.1 Total
comprehensive 0.00 0.00 0.00 0.00 0.00 0.00 -238,286,517.00 0.00 0.00 0.00 2,975,206,500.00 0.00 2,736,919,983.00 -131,095,922.00 2,605,824,061.00
income
3.2 Capital
increased and
0.00 0.00 0.00 0.00 -343,178,364.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -343,178,364.00 7,588,004,608.00 7,244,826,244.00
reduced by
owners
3.2.1 Ordinary
shares
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
increased by
shareholders
3.2.2 Capital
increased by
holders of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
other equity
instruments
73
BOE Technology Group Co., Ltd. Interim Report 2019
3.2.3
Share-based
payments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
included in
owners’ equity
3.2.4 Other 0.00 0.00 0.00 0.00 -343,178,364.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -343,178,364.00 7,588,004,608.00 7,244,826,244.00
3.3 Profit
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,740,789,879.00 0.00 -1,740,789,879.00 -2,679,778.00 -1,743,469,657.00
distribution
3.3.1
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to surplus
reserves
3.3.2
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to general
reserve
3.3.3
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,740,789,879.00 0.00 -1,740,789,879.00 -2,679,778.00 -1,743,469,657.00
to owners (or
shareholders)
3.3.4
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.4
Transfers
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
within owners’
equity
3.4.1
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Increase in
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BOE Technology Group Co., Ltd. Interim Report 2019
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
from surplus
reserves
3.4.3
Loss offset by
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
surplus
reserves
3.4.4
Changes in
defined benefit
pension
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensive
income 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
transferred to
retained
earnings
75
BOE Technology Group Co., Ltd. Interim Report 2019
3.4.6
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.5 Specific
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.5.1
Increase in the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
3.5.2
Used in the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
3.6 Other 0.00 0.00 0.00 0.00 2,424,598.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,424,598.00 0.00 2,424,598.00
4. Balances as
at the end of 34,798,398,763.00 0.00 0.00 0.00 38,244,761,356.00 0.00 -87,683,584.00 0.00 889,640,475.00 0.00 11,620,075,705.00 0.00 85,465,192,715.00 26,928,675,364.00 112,393,868,079.00
the period
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2019
Unit: RMB
H1 2019
Other equity instruments Less: Other
Item Specific
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Surplus reserves Retained earnings Other Total owners’ equity
Other reserve
shares bonds stock income
1. Balances as
at the end of 34,798,398,763.00 0.00 0.00 0.00 37,590,966,191.00 0.00 -28,507,585.00 0.00 1,152,626,310.00 2,392,243,713.00 0.00 75,905,727,392.00
the prior year
Add: 0.00 0.00 0.00 0.00 0.00 0.00 -256,101,258.00 0.00 -881.00 256,093,223.00 0.00 -8,916.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Adjustments
for changed
accounting
policies
Adjustments
for
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
corrections of
previous
errors
Other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
adjustments
2. Balances as
at the
34,798,398,763.00 0.00 0.00 0.00 37,590,966,191.00 0.00 -284,608,843.00 0.00 1,152,625,429.00 2,648,336,936.00 0.00 75,905,718,476.00
beginning of
the year
3. Increase/
decrease in
0.00 0.00 0.00 0.00 0.00 0.00 184,891,191.00 0.00 0.00 1,060,791,147.00 0.00 1,245,682,338.00
the period (“-”
for decrease)
3.1 Total
comprehensiv 0.00 0.00 0.00 0.00 0.00 0.00 184,891,191.00 0.00 0.00 2,104,743,110.00 0.00 2,289,634,301.00
e income
3.2 Capital
increased and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by
owners
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BOE Technology Group Co., Ltd. Interim Report 2019
3.2.1
Ordinary
shares 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
increased by
shareholders
3.2.2 Capital
increased by
holders of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
other equity
instruments
3.2.3
Share-based
payments
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
included in
owners’
equity
3.2.4 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.3 Profit
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,043,951,963.00 0.00 -1,043,951,963.00
distribution
3.3.1
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to surplus
reserves
3.3.2
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,043,951,963.00 0.00 -1,043,951,963.00
to owners (or
shareholders)
3.3.3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Other
3.4
Transfers
within 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners’
equity
3.4.1
Increase in
capital (or
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
from surplus
reserves
3.4.3
Loss offset by
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
surplus
reserves
3.4.4
Changes in
defined
benefit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
pension
schemes
transferred to
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BOE Technology Group Co., Ltd. Interim Report 2019
retained
earnings
3.4.5
Other
comprehensiv
e income 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
transferred to
retained
earnings
3.4.6
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.5 Specific
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.5.1
Increase in the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
3.5.2
Used in the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
3.6 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Balances as
at the end of 34,798,398,763.00 0.00 0.00 0.00 37,590,966,191.00 0.00 -99,717,652.00 0.00 1,152,625,429.00 3,709,128,083.00 0.00 77,151,400,814.00
the period
H1 2018
Unit: RMB
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BOE Technology Group Co., Ltd. Interim Report 2019
H1 2018
Other equity
instruments
Less:
Item Other comprehensive Specific
Prefe
Share capital Perpetu Capital reserves Treasury Surplus reserves Retained earnings Other Total owners’ equity
rred income reserve
al Other stock
share
bonds
s
1. Balances as at
the end of the 34,798,398,763.00 0.00 0.00 0.00 37,588,541,593.00 0.00 192,097,489.00 0.00 889,640,475.00 1,765,291,136.00 0.00 75,233,969,456.00
prior year
Add: Adjustments
for changed
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
accounting
policies
Adjustments for
corrections of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
previous errors
Other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
adjustments
2. Balances as at
the beginning of 34,798,398,763.00 0.00 0.00 0.00 37,588,541,593.00 0.00 192,097,489.00 0.00 889,640,475.00 1,765,291,136.00 0.00 75,233,969,456.00
the year
3. Increase/
decrease in the
0.00 0.00 0.00 0.00 2,424,598.00 0.00 -34,867,001.00 0.00 0.00 374,832,825.00 0.00 342,390,422.00
period (“-” for
decrease)
3.1 Total 0.00 0.00 0.00 0.00 0.00 0.00 -34,867,001.00 0.00 0.00 2,115,622,704.00 0.00 2,080,755,703.00
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BOE Technology Group Co., Ltd. Interim Report 2019
comprehensive
income
3.2 Capital
increased and 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by owners
3.2.1 Ordinary
shares increased 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
by shareholders
3.2.2 Capital
increased by
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
holders of other
equity instruments
3.2.3 Share-based
payments included 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
in owners’ equity
3.2.4 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.3 Profit
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,740,789,879.00 0.00 -1,740,789,879.00
distribution
3.3.1
Appropriation to 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
surplus reserves
3.3.2
Appropriation to
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,740,789,879.00 0.00 -1,740,789,879.00
owners (or
shareholders)
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BOE Technology Group Co., Ltd. Interim Report 2019
3.3.3 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.4 Transfers
within owners’ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
equity
3.4.1
Increase in capital
(or share capital) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
from capital
reserves
3.4.2
Increase in capital
(or share capital) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
from surplus
reserves
3.4.3 Loss
offset by surplus 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserves
3.4.4
Changes in
defined benefit
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
pension schemes
transferred to
retained earnings
3.4.5 Other
comprehensive
income transferred 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to retained
earnings
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BOE Technology Group Co., Ltd. Interim Report 2019
3.4.6 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5 Specific
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.5.1
Increase in the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
3.5.2 Used in
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.6 Other 0.00 0.00 0.00 0.00 2,424,598.00 0.00 0.00 0.00 0.00 0.00 0.00 2,424,598.00
4. Balances as at
the end of the 34,798,398,763.00 0.00 0.00 0.00 37,590,966,191.00 0.00 157,230,488.00 0.00 889,640,475.00 2,140,123,961.00 0.00 75,576,359,878.00
period
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BOE Technology Group Co., Ltd. Interim Report 2019
III. Company Profile
Founded in Beijing on 9 April 1993 and headquartered in the city, BOE Technology Group Co., Ltd. (hereinafter referred to as the
“Company”) is a company limited by shares. Its parent and ultimate controller is Beijing Electronics Holding Co., Ltd. (“Electronics
Holding”).
The Company and its affiliated subsidiaries (hereinafter jointly referred to as the “Group”) are divided into three major business
divisions, namely, interface devices, smart IoT and smart medicine and engineering.
For information about the Company’s subsidiaries, see item IX herein.
The consolidation scope for consolidated financial statements was determined based on control including the Company and
subsidiaries controlled by the Company. Information about subsidiaries was presented in Note IX. The increase and decrease of
subsidiaries was listed in Note VIII.
IV. Basis for the Preparation of Financial Statements
1. Preparation Basis
The financial statements have been prepared on the basis of going concern.
2. Continuing Operations
The Company had the continuing operations ability within 12 months since the end of the Reporting Period.
V. Significant Accounting Policies and Estimates
Reminder of the specific accounting policies and estimates:
Naught
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in accordance with the requirements of Accounting Standards for Business Enterprises
issued by the Ministry of Finance (hereinafter referred to as MOF). These financial statements present truly and completely t he
consolidated financial position and financial position as of 30 June 2019, the consolidated results of operations and results of
operations and the consolidated cash flows and cash flows in the first half year of 2019 of the Company.
These financial statements also comply with the disclosure requirements of “Regulation on the Preparation of Information
Disclosures of Companies Issuing Public Shares, No. 15: General Requirements for Financial Reports” as revised by the China
Securities Regulatory Commission (hereinafter referred to as “CSRC”) in 2014.
2. Accounting period
The accounting year of the Group is from January 1st to December 31st.
3. Operating Cycle
The Company regarded the period from purchasing the assets for processing to realizing the cash or cash equivalents as the normal
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BOE Technology Group Co., Ltd. Interim Report 2019
operating cycle. The operating cycle of the main business of the Company usually is less than 12 months.
4. Recording Currency
The Company’s functional currency is Renminbi. These financial statements are presented in Renminbi. The basis of choosing the
functional currency for the Company and its subsidiaries is that it’s the pricing and settlement currency for the main business. Some
subsidiaries of the Company adopt the currency other than RMB as the recording currency. The Company translates the foreign
currency financial statement of subsidiaries when compiling the financial statement.
5. Accounting Treatments for a Business Combination Involving Entities Under and those not Under
Common Control
(1) Business combination involving entities under common control
A business combination involving enterprises under common control is a business combination in which all of the combining
enterprises are ultimately controlled by the same party or parties both before and after the business combination, and that control is
not transitory. The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being combined
at the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of
consideration paid for the combination (or the total face value of shares issued) is adjusted to share premium in the capital reserve. If
the balance of share premium is insufficient, any excess is adjusted to retained earnings. Other direct expenses occur when t he Group
conducting business combinations is recognized in current profit and loss. The combination date is the date on which one combining
enterprise effectively obtains control of the other combining enterprises.
(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. When the Group act s as the
combination party, the cost of a business combination paid by the acquirer is the aggregate of the fair value at the acquisit ion date of
assets given (including share equity of the acquiree held before the combination date), liabilities incurred or assumed, and equity
securities issued by the acquirer. Any excess of the cost of a business combination over the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets is recognized as goodwill, while any excess of the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets over the cost of a business combination is recognized in profit or loss. The cost of equity securities
or liability securities as on combination consideration offering is recognized in initial recording capital on equity securities or liability
securities. Other direct expenses occur when the Group conducting business combinations is recognized in current profit and loss.
The difference between the fair value and the carrying amount of the assets given is recognized in profit or loss. The Group, at the
acquisition date, recognized the acquiree’s identifiable asset, liabilities and contingent liabilities at their fair value at that date. The
acquisition date is the date on which the acquirer effectively obtains control of the acquiree.
In a business combination not under same control realized by two or more transactions of exchange, for the equities of the purchases
held before the purchase date, the Group will execute the remeasurement according to the fair value of the equity on the purchase
date with the difference between the fair value and its book value be recorded in the current investment income. The other
comprehensive income which could be reclassified in the gains and losses afterwards and the changes of the equities of the other
owners under the measurement of the equity method that involved with the afterwards equity of the purchases held before the
purchase date should be transferred in the current investment income.
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BOE Technology Group Co., Ltd. Interim Report 2019
6. Preparation Methods for Consolidated Financial Statements
(1) General principle
The scope of consolidated financial statements is determined on the base of control, which comprise the Company and its
subsidiaries. The term “control” is the power of the Group upon an investee, with which it can take part in relevant activities of the
investee to obtain variable returns and is able to influence the amount of returns. When judging whether the Group owns the right on
the investees or not, the Group only considers the substantive rights related to the investees (including the substantive rights enjoyed
by the Group itself and by the other parties). The financial status, operating results and cash flow of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
Equity, profit or loss attributable to minority shareholders is presented separately under the item of shareholders’ equity i n
consolidated income statement and the net profits in the consolidated income statement.
If current loss shoulder by minority shareholders of a subsidy over the proportion enjoyed by minority shareholders in a subsidy at
owners’ equity at period-begin, its balance still offset minority shareholders’ equity.
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 unrealized profit or loss arising from intra-group transactions, are eliminated
in preparing the consolidated financial statements. Unrealized losses resulting from intra-group transactions are eliminated in the
same way as unrealized gains but only to the extent that there is no evidence of impairment.
(2) Acquiring the subsidiaries from merger
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 book value in the
consolidated balance sheet of the subsidiary’s assets, liabilities and results of operations as if the combination had occurred at the
date that common control was established. Therefore the opening balances and the comparative figures of the consolidated financial
statements are restated.
Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities not under comm on
control, when prepared the consolidated financial statements, the Company shall included the acquired subsidiaries into the
consolidated scope from the acquisition date basing on the fair value of the identifiable assets, liabilities at the acquisition date.
(3) Disposing the subsidiaries
Where the control of former subsidiary was lost, any disposal profit or loss occurred shall be recorded into the investment income
during the period of losing control right. As for remaining equity investment, the Group will re-account it according to the fair value
at the date the control was lost. Any profit or loss occurred shall be recorded into the investment income during the period of losing
control right.
Where the Group losses control on its original subsidiaries due to step by step disposal of equity investments through multiple
transactions, should judge whether is the package deal according to the following principles:
- These deals are at the same time or under the condition of considering the influence of each other to concluded;
- These transactions only when be regarded as a whole could achieve a complete business result;
- The occurrence of a deal depends on at least one other transactions；
- A deal alone is not economical, it is economical with other trading together.
If each deal not belongs to a package deal, as for each deal before losing the control right on the subsidiaries, should be disposed
according to the accounting policies of partly disposing the equity investment of the subsidiaries under the situation not losing the
control right.
If each deal belongs to a package deal, considered as a transaction and conduct accounting treatment, however, before losing control,
the differences between every disposal cost and the shares of the book value of the corresponding net assets continuously calculated
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BOE Technology Group Co., Ltd. Interim Report 2019
since the purchase date of the subsidiary of disposal investment are confirmed as other comprehensive income in consolidated
financial statements, which together transferred into the current profits and losses in the loss of control , when the Group losing
control on its subsidiary.
(4) Changes of non-controlling interests
Where the Company acquires a minority interest from a subsidiary’s minority shareholders or disposes of a portion of an interest in a
subsidiary without a change in control, the difference between the amount by which the minority interests are adjusted and the
amount of the consideration paid or received is adjusted to the capital reserve (share premium) in the consolidated balance sheet. If
the credit balance of capital reserve (share premium) is insufficient, any excess is adjusted to retained earnings.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and all the participants are res tricted by
the arrangement; and two or more participants execute the jointly control on the arrangement. Any of the participant should not
individually control the arrangement, while any of the participant that owns the jointly control could stop other participants or the
participants group from individually control the arrangement.
Joint arrangements divided into joint operations and joint ventures. A joint operation refers to a joint arrangement where the
participant party enjoys assets and has to bear liabilities related to the arrangement. A joint venture refers to a joint arrangement
where the participant party is only entitled to the net assets of the arrangement.
The participant party should confirm the following items related to the interests portion among the jointly operation and execute the
accounting treatment according to the regulations of the relevant ASBE: recognizes the assets and liabilities that it holds and bears in
the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities according to the Group’s stake in the joint
operation; recognizes the income from sale of the Group’s share in the output of the joint operation; recognizes the income from sale
of the joint operation’s outputs according to the Group’s stake in it; and recognizes the expense solely incurred to the Group and the
expense incurred to the joint operation according to the Group’s stake in it.
8. Recognition Standard for Cash and Cash Equivalents
In the Group’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and short-term
and high circulating investments, which are easily convertible into known amount of cash and whose risks in change of value are
minimal.
9. Foreign Currency Businesses 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 at 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 recognized in profit or loss, except those arising from the principals and interests on foreign
currency borrowings specifically for the purpose of acquisition, construction of qualifying assets. Non-monetary items denominated
in foreign currencies that are measured at historical cost are translated to Renminbi using the foreign exchange rate at the transaction
date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated using the foreign exchange
rate at the date the fair value is determined; the exchange differences, if it’s the difference arising from the non-monetary item of
available-for-sale financial assets, which shall be considered as other comprehensive income and recognized in capital reserve; other
differences shall be recognized in current profit or loss.
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BOE Technology Group Co., Ltd. Interim Report 2019
The assets and liabilities of foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet dat e. The
equity items, excluding “Retained earning” and “Difference arising from translation of foreign currency financial statements in other
comprehensive income”, are translated to Renminbi at the spot exchange rates at the transaction dates. The income and expenses of
foreign operation are translated to Renminbi at rates that approximate the spot exchange rates at the transaction dates. The resulting
exchange differences are listed in other comprehensive income. Upon disposal of a foreign operation, the cumulative amount of the
exchange differences recognized in equity which relates to that foreign operation is transferred to profit or loss in the period in which
the disposal occurs.
10. Financial Instruments
When the Company becomes a party to a financial instrument, it shall recognize a financial asset or financial liability.
(1) Classification, recognition and measurement of financial assets
The Company classifies the financial assets into financial assets measured at amortized cost, financial assets measured by the fair
value and the changes recorded in other comprehensive income and financial assets at fair value through profit or loss based on the
business model for financial assets management and characteristics of contractual cash flow of financial assets
Financial assets initially recognized shall be measured at their fair values. For financial assets measured at their fair values and of
which the variation is recorded into the profit or loss of the current period, the transaction expenses thereof shall be directly included
into the current profit or loss; for other financial assets, the transaction expenses thereof shall be included into the initially recognized
amount. For accounts receivable and notes receivable generated from sales of commodities or provision of labor services, excluding
or without regard to major financing, the expected consideration amount the Company has the right to collect will be taken by the
Company as the initially recognized amount.
① Financial assets measured by the amortized cost
The business mode of the Company to manage the financial assets targets at collecting the contractual cash flow. What's more, the
contractual cash flow characteristics of the financial assets are consistent with the basic lending arrangement, that is, the cash flow
generated in the specific date is the payment of the interest based on the principal and outstanding principal amount. This kind of
financial assets of the Company shall be subsequently measured based on the amortized cost, the interest income shall be recognized
by effective interest method, and the gains or losses arising from the amortization, impairment shall be included into current profit
and loss.
②Financial assets measured at the fair value with its changes included into other comprehensive income
For the Company, the business mode to manage this type of financial assets aims at not only the recovery of contract cash flows but
the sales, and cash flows of the financial assets generated from the financial assets on a specific date merely used to the payment for
principals and interests based on the amount of outstanding principals. The Company calculates such financial assets as per fair value
whose change is included into corresponding comprehensive income, but impairment loss or gain, exchange gain or loss and interest
income calculated as per actual interest rate method are included into the current profit and loss.
Furthermore, the Company designates partial non-tradable equity vehicle investment as the financial asset measured with fair value
whose change is included into other comprehensive income. The Company includes the related dividend income of such financial
assets into the current profit and loss with the change in fair value included into other comprehensive income. At the time of
derecognition of such financial assets, accumulated gain or loss included into other comprehensive income before will be shifted to
retained earnings from other comprehensive incomes but not included into the current profit and loss.
③ Financial assets at fair value through profit or loss
The Company classifies financial assets except for above-mentioned financial assets measured with amortized cost and financial
assets measured with fair value whose change is included into other comprehensive income into financial assets at fair value through
profit or loss and listed as trading financial assets. For such financial assets, the Company adopts the fair value for the subsequent
89
BOE Technology Group Co., Ltd. Interim Report 2019
measurement, and the changes in fair value are included into current profit and loss. Financial assets which will mature in more than
one year since the balance sheet date and expected to be held for more than one year shall be presented as other non-current financial
assets.
(2) Classification, recognition and measurement of financial liabilities
The Company’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value through profit or loss
and other financial liabilities. For financial liabilities at fair value through profit or loss, relevant transaction costs are immediately
recognized in profit or loss for the current period, and transaction costs relating to other financial liabilities are included in the i nitial
recognition amounts.
① Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include trading financial liabilities (including the derivative instruments
belonging to financial liabilities) and financial liabilities designated at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss.
Trading financial liabilities (including the derivative instruments belonging to financial liabilities) are subsequently measured at fair
value, and the changes of fair value except those related to hedge accounting) shall be recorded in the current profit or loss.
For the financial liabilities at fair value through profit or loss, the change of such liability's fair value arising from changes in the
Company's own credit risk is included into other comprehensive income. And when the liability is derecognized, the accumulative
change amount of its fair value arising from the change of own credit risk included into other comprehensive income is transferred to
the retained earnings. The changes of the remaining fair value are included in the current profit or loss. If the treatment of change
effects in own credit risk of such financial liability in the above method may cause or expand the accounting mismatching in the
profit or loss, the Company will include all gains or losses (including the amount influenced due to the changes in own credit risk of
the enterprise) of such financial liability into the current profit or loss.
② Other financial liabilities
Other financial liabilities except for those formed due to transfer of financial assets failing to comply with derecognition condition or
continuously getting involved in transferred financial assets and financial guarantee contract are classified into financial liabilities
measured with amortized cost and subject to subsequent measurement based on amortized cost. Gains or losses generated from
derecognition or amortization are included into the current profit or loss.
(3) Recognition and measurement of financial assets transfer
The Company derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under a pass-through arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either (a) has transferred substantiall y all the risks
and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
If the enterprise has neither retained all the risks and rewards from the financial asset nor control over the asset, the ass et is
recognized according to the extent it exists as financial asset, and correspondent liability is recognized. The extent of existence refers
the level of risk by the financial asset changes the enterprise is facing.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, (a). the carrying amount of the financial asset
transferred; and (b) the sum of the consideration received from the transfer and any cumulative gain or loss that had been recognized
in other comprehensive income, is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated
between the part that continues to be recognized and the part that is derecognized, based on the relative fair value of those parts. The
difference between (a) the carrying amount allocated to the part derecognized; and (b) the sum of the consideration received for the
part derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in other
comprehensive income, is recognized in profit or loss.
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If the Company endorses the financial assets sold by right of recourse and holding financial assets, it needs to confirm that whether
almost all risks and remuneration in the ownership of financial assets have been transferred or not. Where an enterprise has
transferred nearly all of the risks and rewards related to the ownership of the financial asset to the transferee, it shall stop recognizing
the financial asset； If it retained nearly all of the risks and rewards related to the ownership of the financial asset, it shall not stop
recognizing the financial asset. If the Company does not transfer or retain nearly all of the risks and rewards related to the ownership
of the financial asset, then it continuously judges that whether the Company retain the control of the assets, and conducts accounting
treatment according to the principles described in former paragraphs.
(4) Derecognition of financial liabilities
In case of current obligation of financial liabilities (or partial financial liabilities) being terminated, derecognition of such financial
liabilities (or partial financial liabilities) is conducted by the Company. If the Company (borrower) concludes an agreement with the
lender to replace original financial liabilities with new ones and contact terms of new financial liabilities are different from those of
original financial liabilities, derecognition of original financial liabilities and recognition of new financial liabilities shall be
conducted. In case of material alteration of contract terms of original financial liabilities (partial financial liabilities) by the Company,
derecognition of original financial liabilities and recognition of new financial liabilities as per modified terms shall be conducted.
In case of derecognition of financial liabilities (partial financial liabilities), the Company includes the balance between i ts carrying
value and payment consideration (including non-cash assets transferred out or borne liabilities) into the current profit or loss.
(5) Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities,
and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financial
asset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above circumstances,
financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
(6) Determination of financial assets and liabilities’ fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an
arm’s length transaction. For a financial instrument which has an active market, the Company uses quoted price in the active market
to establish its fair value. The quoted price in the active market refers to the price that can be regularly obtained from exchange
market, agencies, industry associations, pricing authorities; it represents the fair market trading price in the actual transaction. For a
financial instrument which does not have an active market, the Company establishes fair value by using a valuation technique.
Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, reference to the
current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. The
Company measures initially and subsequently the fair value of an interest rate swap at the value of a competitor’s interest rate swap
quoted by a recognized financial institution as at the Company’s balance sheet date in accordance with the principle of consistency.
In valuation, the Company adopts applicable valuation techniques supported by sufficient utilizable data and other information in
current circumstances, selects input values consistent with asset or liability characteristics considered in relevant asset or liability
transactions of market participators and prioritizes the applying relevant observable input values. Unobservable input values shall not
be applied unless relevant observable input values are not accessible or feasible.
(7) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of i ts liabilities.
The consideration received from issuing equity instruments, net of transaction costs, are added to shareholders’ equity. All types of
distribution (excluding stock dividends) made by the Company to holders of equity instruments are deducted from shareholders’
equity. The Company does not recognize any changes in the fair value of equity instruments.
An equity instrument distributing dividends during the period of continued existence (including the “interest” generated from those
classified as equity instrument) shall be treated as profit distribution.
(8) Testing Method and Accounting Treatment of Impairment for Financial Assets (Excluding Accounts Receivable)
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The Company evaluated the expected credit losses of financial assets measured at amortized cost and financial assets (debt
instruments) measured at fair value and changes thereof recorded into other comprehensive income in a single or group way
considering all reasonable and well-founded information, including forward-looking information. The measurement of expected
credit losses was based on whether the credit risk of the financial assets increases remarkably after the initial recognition on the
balance sheet day; if the credit risk increases remarkably after the initial recognition, the Company shall measure the provision for
loss based on the specific expected credit loss amount during the entire period of existence; if not, the Company shall measure the
provision for loss based on the specific expected credit loss amount in the following 12 months. Amount increased or reversed of
impairment lose generated this shall be recorded into the current profit or loss as gains or losses of impairment.
Standards for Judging Whether the Credit Risk Increases Remarkably after the Initial Recognition
If any financial assets’ probability of default within the expected period of existence determined on the balance sheet day is
obviously higher than that within the expected period of existence determined during the initial recognition, it shall indicate the
remarkable increase of the financial assets’ credit risk. Unless it is under special circumstances, the Company shall adopt various
variations in the default risk in the following 12 months as the reasonable basis for estimating corresponding variations in the default
risk within the entire period of existence and determining whether the credit risk increases remarkably after the initial recognition.
11. Notes Receivable
The Company will always measure the provision for notes receivable whether including major financing components or not based on
the amount similar to that of expected credit losses for the whole existence period and the amount increased or reversed of
impairment for losses generated shall be recorded into the current profit or loss as gains or losses of impairment.
12. Accounts Receivable
The recognition standard and withdrawal method of bad debt provision for accounts receivable of the Company in 2018 are as
follows:
(1) Accounts Receivable with Significant Single Amount for which the Bad Debt Provision is Made Individually
Definition or amount criteria for an account receivable with a
The single amount is more than RMB50,000,000.00
significant single amount
Making individual bad-debt provisions for accounts receivable
Impairment test is made individually
with a significant single amount
(2) Accounts Receivable which the Bad Debt Provision is Withdrawn by Credit Risk Characteristics
Name of portfolios Bad debt provision method
Credit Risk Characteristics Other method
Note: Respectively fill in the withdrawal method of bad debt provision for various portfolios according to names of specific
portfolios.
(3) Accounts Receivable with an Insignificant Single Amount but for which the Bad Debt Provision is Made Independently
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Reason for bad debt provision Lawsuits or deteriorative customers’ credit status
The lower one of the expected future receivable amount and
Withdrawal method
carrying value
Recognition standards and withdrawal methods of the bad debt provision for accounts receivable since 1 January 2019:
For the accounts receivable (regardless of any significant financing composition), the Company will always measure corresponding
provision for loss based on the amount equaling to the expected credit loss within the entire existence period, and the Company has
divided its clients into different groups based on different credit risks. Within the same group, various clients should possess similar
risk features, and the historical loss rule should have no obvious difference among various clients; in addition, it could be predicted
that this rule would remain unchanged within the predicted collection period of the outstanding accounts receivable. In terms of
different groups, the above-mentioned financial assets’ predicted credit loss should be calculated based on the history credit loss
experience and the usage preparation matrix. Meanwhile, according to relevant historical experience, special factors of the borrower
on the balance sheet date, the current situation and the future economic situation, corresponding evaluation could be performed for
future adjustment.
13. Other Receivables
The recognition method and accounting treatment of expected credit losses of other receivables
The recognition standard and withdrawal method of bad debt provision for other receivables of the Company in 2018 are as follows:
(1) Accounts Receivable with Significant Single Amount for which the Bad Debt Provision is Made Individually
Definition or amount criteria for an account receivable with a
The single amount is more than RMB50,000,000.00
significant single amount
Making individual bad-debt provisions for accounts receivable
Impairment test is made individually
with a significant single amount
(2) Accounts Receivable which the Bad Debt Provision is Withdrawn by Credit Risk Characteristics
Name of portfolios Bad debt provision method
Credit Risk Characteristics Other method
Note: Respectively fill in the withdrawal method of bad debt provision for various portfolios according to names of specific
portfolios.
(3) Accounts Receivable with an Insignificant Single Amount but for which the Bad Debt Provision is Made Independently
Reason for bad debt provision Lawsuits or deteriorative customers’ credit status
The lower one of the expected future receivable amount and
Withdrawal method
carrying value
Recognition standards and withdrawal methods of the bad debt provision for other receivables since 1 January 2019:
For the other receivables (regardless of any significant financing composition), the Company will always measure corresponding
provision for loss based on the amount equaling to the expected credit loss within the entire existence period, and the Company has
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divided its clients into different groups based on different credit risks. Within the same group, various clients should possess similar
risk features, and the historical loss rule should have no obvious difference among various clients; in addition, it could be predicted
that this rule would remain unchanged within the predicted collection period of the outstanding accounts receivable. In terms of
different groups, the above-mentioned financial assets’ predicted credit loss should be calculated based on the history credit loss
experience and the usage preparation matrix. Meanwhile, according to relevant historical experience, special factors of the borrower
on the balance sheet date, the current situation and the future economic situation, corresponding evaluation could be performed for
future adjustment.
At the end of the Reporting Period, when the Company accounts the expected credit losses of other receivables, if the expected credit
loss is higher than the carrying amount of its current provision for impairment, the difference will be recognized as impairment loss;
if lower, the difference will be recognized as impairment gains.
14. Inventory
Is the Company subject to any disclosure requirements for special industry?
No
(1) Classification and cost of inventories
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 by the cost. Cost of inventories comprises all costs of purchase, costs of conversion and other costs.
Inventories are initially measured at their actual cost. In addition to the purchasing cost of raw materials, work in progress and
finished goods include direct labor costs and an appropriate allocation of production overheads.
(2) Pricing method for outgoing inventories
Cost of inventories is calculated using the weighted average method.
Revolving materials such as the low priced and easily worn articles and the packing materials should be amortized by adopting
one-time amortization method and be recorded in the cost of the relevant assets or the current gains and losses.
(3) Recognition basis of net realizable value and withdrawal method of depreciation reserves for inventories
On the balance sheet day, inventories are carried at the lower of cost and net realizable value.
Net realizable value is the estimated selling price in the normal course of business less the estimated costs to completion and the
estimated expenses and related taxes necessary to make the sale. The net realizable value of materials held for use in the production
of inventories is measured based on the net realizable value of the finished goods in which they will be incorporated. The net
realizable value of the quantity of inventory held to satisfy sales or service contracts is based on the contract price. If t he quantities of
inventories specified in sales contracts are less than the quantities held by the Group, the net realizable value of the excess portion of
inventories shall be based on general selling prices.
Any excess of the cost over the net realizable value of each class of inventories is recognized as a provision for diminution in the
value of inventories, and then recorded into current profit or loss.
(4) Inventory system for inventories
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The Group maintains a perpetual inventory system.
15. Assets Held for Sale
The Group should divide the non-current assets (or the disposal group, that is an asset group concurrently be disposed through selling
or other methods as an entirety in a transaction and the liabilities directly related to the assets from the transfer among t he transaction,
the same below )which simultaneously meet with the following conditions as the assets held for sale.
– The non-current assets or disposal group could be immediately sold under the current condition in accordance with the usual terms
of selling this kind of assets in similar transactions;
– The sale is extremely possible that is to say, the Company has made a resolution regarding a sales planning and signed a legally
binding purchase agreement with other party, and the sale is expected to be finished within one year.
When the non-current assets be divided as assets held for sale (excluding financial assets), the Group measures the non-current assets
held for sale, deferred income tax assets and the investment properties be follow-up measured by the fair value mode according to the
lower one between the book value and the fair value after deducting the net amount of the disposal expenses, while the deference that
the book value higher than the fair value which deducted the disposal expenses should be recognized as the impairment losses of the
assets.
The fixed assets and intangible assets be divided as assets held for sale and the investment properties be follow-up measured by the
cost mode would not be withdrawn, depreciated or amortized, while the long-term equity investment be divided as assets held for
sale that measured by equity method should cease the equity method measurement.
16. Investments in Debt Obligations
See Note V. 10 Financial Instruments for details
17. Other Investments in Debt Obligations
See Note V. 10 Financial Instruments for details
18. Long-term Equity Investments
(1) Recognition of the investment cost of the long-term equity investment
(a) Long-term equity investments acquired through a business combination– The initial investment cost of a long-term equity
investment obtained through a business combination involving entities under common control is the Company’s share of the
subsidiary’s equity at the combination date. The difference between the initial investment cost and the carrying amounts of t he
consideration given is adjusted to share premium in capital reserve. If the balance of the share premium is insufficient, any excess is
adjusted to retained earnings. For the long-term equity investment of the subsidiaries formed from the enterprise merger under the
same control that realized step by step of the multiple transaction not belong to package deal, the Company would adjust the capital
stock premium among the capital surplus according to the difference between the initial investment cost of the long-term equity
investment recognized according to the above principles and the sum of the book value of the long-term equity investment before
reaching the merger and the book value of the newly paid consideration which be further received on the merger date, and if the
balance of the share premium is insufficient, any excess is adjusted to retained earnings.
– For other long-term equity investment obtained through entities not under common control, the fair values, on the acquisition date,
of the assets given, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the control on
the acquiree shall be recognized as initial investment cost of the long-term equity investment. For long-term equity investment
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obtained through a business combination involving entities not under common control by two or more transactions and by several
steps, the initial investment cost is recognized as the aggregation of the carrying value of acquirees’ equity investment before the
acquisition date held by the Company and newly investment cost at the acquisition date.
(b) Long-term equity investments acquired otherwise than through a business combination
For the Long-term equity investments acquired otherwise than through a business combination, if the long-term investment is
acquired by paying cash, the Group shall, upon initial recognition, take the purchase price actually paid as the initial investment cost ;
For the long-term equity investment obtained by issuing equity securities, the Group takes the fair value of equity securities issued as
the initial investment cost.
(2) Subsequent measurement and recognition of profits or losses of the long-term equity investment
(a) Investments in subsidiaries
In the Company’s financial statements, investments in subsidiaries are accounted for using the cost method, unless the investment is
classified as held for sale. Cash dividends or profit distributions declared by subsidiaries and attributed to the Company shall be
recognized as investment income, without dividing whether it’s the net profit realized by the investee before the investment or after
the investment, except those that have been declared but unpaid at the time of acquisition and therefore included in the price paid or
consideration.
The investment into the subsidiaries is stated at cost less impairment losses in the balance sheet.
In the Group’s consolidated financial statements, investments in subsidiaries are accounted for in accordance with the principles.
(b) Investment in jointly controlled enterprises and associates
The joint enterprise refers to an arrangement that the Group and other joint operation parties execute jointly control and only enjoy
the rights of their own net assets.
An associate is an enterprise over which the Group has significant influence.
Upon the subsequent measurement, an investment in a jointly controlled enterprise or an associate is accounted for using the equity
method, unless the investment is classified as held for sale.
The Group makes the following accounting treatments when using the equity method:
– Where the initial investment 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 recognized at the initial investment 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 recognized at the investor’s share of the fair value of the investee’s identifiable net assets, and the difference is
charged to profit or loss.
– After the acquisition of the investment, the Group recognizes its share of the investee’s net profits or losses after deducting the
amortization of the debit balance of equity investment difference, which was recognized by the Group before the first -time adoption
of CAS, as investment income or losses, and adjusts the carrying amount of the investment accordingly. The debit balance of the
equity investment difference is amortized using the straight-line method over a period which is determined in accordance with
previous accounting standards. Once the investee declares any cash dividends or profits distributions, the carrying amount of the
investment is reduced by that attributable to the Group. As for the other changes of the owners’ equities except for the net gains and
losses, other comprehensive income and profits distribution of the joint ventures or associated enterprises (hereinafter referred to as
“changes of other owners’ equities”), the Group included which in the shareholders’ equities according to the portion ought to be
enjoyed or shared, and at the same time adjust the book value of the long-term equity investment.
– The Group recognizes its share of the investee’s net profits or losses, other comprehensive income and changes of other owners’
equities after making appropriate adjustments to align the accounting policies or accounting periods with those of the Group based on
the fair values of the investee’s identifiable net assets at the date of acquisition. Unrealized profits and losses resulting from
transactions between the Group and its associates or jointly controlled enterprises are eliminated to the extent of the Group ’s interest
in the associates or jointly controlled enterprises. Unrealized losses resulting from transactions between the Group and its associates
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or jointly controlled enterprises are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of
impairment.
– The Group discontinues recognizing its share of net 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 associate or the jointly
controlled enterprise is reduced to zero, except to the extent that the Group has an obligation to assume additional losses. Where net
profits are subsequently made by the associate or jointly controlled enterprise, the Group resumes recognizing its share of t hose
profits only after its share of the profits equals the share of losses not recognized.
(3) The basis for determination of joint control or significant influence over investee enterprise
Joint control refers to the control jointly owned on certain arrangement according to relevant agreement and the relevant activities of
the arrangement (which are the activities cause significant influences on the arrangement) could only execute the decision-making
through the unanimous consent of the parties sharing control.
The following evidences shall be considered when determining whether the Group can exercise joint control over an investee:
No single venture is in a position to control the operating activities unilaterally;
Operating decisions relating to the investee’s economic activity require the unanimous consent of the parties sharing control.
Significant influence is the power to participate in the financial and operating policy decisions of an investee but is not control or
joint control over those policies.
19. Investment Property
The Company classified its real estate held for earning rents or capital appreciation or for both into the investment property. The
Company applied the cost model to measure the investment real estate. Namely, it would be presented in the Balance Sheet through
deducting the accumulated depreciation, amortization and the depreciation reserves from the costs. Besides, the Company would
calculate and withdraw or amortize the investment real estate by using the straight-line method within the service life through
deducting the predicted net residual value and the accumulated provision reserves from the costs, unless the investment real estate
could meet corresponding held-for-sale conditions.
For the asset showing any sign of depreciation, the Company would conduct the impairment test and evaluate its recoverable amount.
The recoverable amount refers to the higher value between the net amount by deducting various disposal expenses from the fair value
of the asset (or the asset group/asset portfolio) and the current value of its predicted future cash flow. However, the asset portfolio
should be the smallest asset portfolio which could be recognized, and the generated cash inflow would basically be independent of
other assets or asset portfolios. The asset group should consist of relevant assets creating the cash inflow. While recognizing the asset
group, it’s required to consider whether the asset group could independently generate any cash inflow. Meanwhile, it’s also necessary
to take the management’s production and business operation activities control or the decision-making way into consideration.
The net amount by deducting various disposal expenses from the asset’s fair value would be determined based on the amount by
deducting the amount that could be directly attributed to the asset’s disposal expense from the price recognized during the fair
dealing. However, the current value of the asset’s predicted future cash flow should be determined based on the predicted future cash
flow generated during the continuous use and the ultimate disposal after corresponding discounting by selecting an appropriate
pre-tax discount rate.
According to the recoverable amount’s estimated results, if the asset’s recoverable amount is lower than its book value, its book
value would write down to the recoverable amount, and the write-down amount should be recognized as the asset impairment loss
which would be calculated into the current loss and gain. At the same time, corresponding asset impairment provisions should also be
calculated and withdrawn. In terms of the impairment loss related to the asset group or the asset portfolio, it’s required to firstly
deduct and amortize the book value of Goodwill in the asset group or the asset portfolio; then, according to the proportion of the
book value of other assets in the asset group or asset portfolio (except the Goodwill), the book value of other assets would be
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deducted based on such proportion. However, the book value of various assets after such deduction would not be lower than the
highest value among the net amount by deducting various disposal expenses from the asset’s fair value (if any), the current value of
the asset’s predicted future cash flow (if any) and zero. Upon recognized, the asset impairment loss would not be reversed during the
subsequent accounting periods.
The useful lives and estimated residual values as well as annual depreciation rate of each class of investment property are as follows:
Category Depreciable life Residual value rate (%) Yearly depreciation
Land use rights 32 - 50 years 0% 2.0% - 3.1%
Houses and buildings 25 - 40 years 3%-10% 2.3% - 3.9%
20. Fixed Assets
(1) Conditions for Recognition
Fixed assets represent the tangible assets held by the Group for use in the production of goods or supply of services for rental to
others or for operation and 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 V.21. Where parts of an item of fixed
assets have different useful lives or provide benefits to the Group in different patterns thus necessitating use of different depreciation
rates or methods, each part is recognized as a separate fixed asset. The subsequent costs, including the cost of replacing part of an
item of fixed assets, are recorded into fixed asset cost when the economic interests related to costs may flow into the Group , and the
carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of fixed assets are recognized in profit or
loss as incurred. Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment losses.
(2) Depreciation Methods
Category of fixed assets Depreciation method Depreciable life Residual value rate (%) Yearly depreciation
Workshops and buildings Straight-line method 10-50 years 3%-10% 1.8%-9.7%
Equipments Straight-line method 2-25 years 0-10% 3.6%-50%
Others Straight-line method 2-10 years 0-10% 9.0%-50%
Naught
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
On the begin date of the lease term, the financing leased assets of the Group should be recorded in the entry value according to the
lower one between the fair value of the leasing assets and the net value of the minimum lease payment, and the minimum lease
payment should be regarded as the entry value of the long-term account payable with the difference be recognized as the
unrecognized financial charges. The Group records the initial direct costs of the financial lease in the leased assets value. If it is
reasonable to be certain that the lessee will obtain the ownership of the leased assets when the lease term expires, the leased assets
shall be fully depreciated within the available age limit. Otherwise, the leased assets shall be fully depreciated over the shorter one of
the lease term or its available age limit. The Group amortizes the unrecognized financial charges by the effective interest r ate method
within each period during the lease term and manages according to the principles of the borrowing costs. On the balance sheet date,
the Group will respectively list the difference from the long-term account payable related to the finance lease minuses the
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unrecognized financial charges as the long-term liabilities and the long-term liabilities due within 1 year.
21. Construction in Progress
(1) Categories of construction in progress
The enterprise’s self-constructed fixed asset includes self construction and contract construction. The cost of the self-constructed
fixed asset including the engineering materials, direct labor, borrowing expenses met with the capitalization condition and the
necessary expenses happened before the assets reach the expected available state.。
(2) Standards and time of transferring construction in progress into fixed asset
When the self-constructed fixed asset reaches the available state, should transfer into the fixed assets, before which should be listed
among the construction in progress and not withdraw the depreciation.
(3) Impairment test method and withdrawal method for impairment provision of construction in progress
If any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of an
asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cash
flows. An asset group 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. An asset group is composed of assets directly relating to cash-generation. Identification
of an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows
from other assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s
operations and how management makes decisions about continuing or disposing of the Group’s assets. An asset’s fair value less costs
to sell is the amount determined by the price of a sale agreement in an arm’s length transaction, less the costs that are directly
attributable to the disposal of the asset. The present value of expected future cash flows of an asset is determined by discounting
future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carryi ng amount,
the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged
to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment
losses related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group
or set of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata
basis. However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs
to sell (if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
22. Borrowing Costs
(1) Recognition principles for capitalization of borrowing costs
Borrowing costs of the Company incurred directly attributable to the acquisition, construction of a qualifying asset are capitalized as
part of the cost of the asset.
(2) Capitalization period of borrowing costs
The capitalizations period is the period from the date of commencement of capitalization of borrowing costs to the date of cessation
of capitalization, excluding any period over which capitalization is suspended. When the capital expenses and the borrowing
expenses had happened and the necessary purchasing and construction activity which was for leading the capital to reach the
expected available state had began, the borrowing expenses had began capitalization.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization of
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the borrowing costs shall be ceased. If each part of the qualified asset under acquisition and construction or production is constructed
and completed respectively, the Group shall determine the time of ceasing capitalization of the borrowing costs according to different
situation.
Where each part of a qualified asset under acquisition and construction or production is completed separately and is ready for use or
sale during the continuing construction of other parts, and if the acquisition and construction or production activities which are
necessary to prepare this part of the asset for the intended use or sale have already been completed substantially, the capitalization of
the borrowing costs in relation to this part of asset shall be ceased. Because such part of asset has reached the expected condition of
use or sale.
(3) Period for suspending capitalization of borrowing costs
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lasts
for more than 3 months, the capitalization of the borrowing costs shall be suspended.
(4) Calculation method of capitalized amount of borrowing costs
As for specifically borrowed loans for the acquisition and construction or production of assets eligible for capitalization, the
to-be-capitalized amount of interests shall be determined in light of the actual cost incurred of the specially borrowed loan at the
present period minus the income of interests earned on the unused borrowing loans as a deposit in the bank or as a temporary
investment.
Where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the
enterprise shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the
weighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by the
capitalization rate of the general borrowing used. The capitalization rate shall be calculated and determined in light of the weighted
average interest rate of the general borrowing.
During the period of capitalization, the amount of interest capitalized during each accounting period shall not exceed the amount of
interest actually incurred to the relevant borrowings in the current period.
When the Group recognizes the effective interest rate of the borrowings, that means to discount the future cash flow of the
borrowings during the expected duration or the applicable shorter period to be the interest rate used of the recognized amount during
the initial recognition of the borrowings.
During the capitalization period, should capitalize the exchange differences of the principal and the interests of the Foreign currency
specific borrowings and record which in the cost of the assets that meet with the conditions of the capitalization. As for the exchange
differences from the principal and the interests of the other foreign currency borrowings except for the foreign currency specific
borrowings, should be regarded as the financial expenses and included in the current gains and losses.
23. Intangible Assets
(1) Pricing Method, Useful life and Impairment test
(a) Pricing method of intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortization (where the estimated useful life is finite) and
impairment losses. For an intangible asset with finite useful life, its cost less residual value and impairment losses are amortized on
the straight-line method over its estimated useful life, unless the intangible assets are classified as held for sale.
(b) Estimated useful life of intangible assets with limited useful life
As for the intangible assets with limited useful life, after deducting the salvage of the cost and the impairment provision, the Group
amortized the intangible assets through straight line method within the expected service life, unless the intangible assets are classified
as held for sale.
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Item Estimated useful life Basis
Land use rights 40-50 years Period stipulated by the Land Use Right Certificate
Proprietary technology Period agreed in the contract or estimated to bring
5-10 years
and patent right economic benefits for the Company
Period agreed in the contract or estimated to bring
Computer software 3-10 years
economic benefits for the Company
Period agreed in the contract or estimated to bring
others 5-20 years
economic benefits for the Company
(c) Judgment basis of intangible assets with uncertain useful life
An intangible asset is regarded as having an indefinite useful life and is not amortized 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 doesn’t have any
intangible assets with indefinite useful lives.
(d) Withdrawal of impairment provision of intangible assets
If any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of an
asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cash
flows. An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of th e cash
inflows from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification of
an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from
other assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s
operations and how management makes decisions about continuing or disposing of the Group’s assets. An asset’s fair value less costs
to sell is the amount determined by the price of a sale agreement in an arm’s length transaction, less the costs that are directly
attributable to the disposal of the asset. The present value of expected future cash flows of an asset is determined by discounting
future cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,
the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged
to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment losses
related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or set
of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.
However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell
(if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
(2) Accounting Policies of Internal R & D Expenses
(a) Criteria of dividing the research phase and development phase of internal R&D project
Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and
understanding. Development is the application of research findings or other knowledge to a plan or design for the production of new
or substantially improved materials, devices, or products before the start of commercial production or use.
(b) Calculation of the expenditures of internal R&D project
Expenditures of internal R&D project of the Group divides into expenditures on the research phase and expenditures on the
development phase.
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Expenditures on the research phase are recognized in profit or loss when incurred. Expenditures on the development phase are
capitalized 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 development. Capitalized development costs are stated at cost less
impairment losses in the balance sheet. Other development expenditures are recognized as expenses in the period in which they are
incurred.
24. Impairment of Long-term Assets
The Group executes the impairment test on the assets with impairment indication and evaluates the recoverable amount of the assets.
Besides, whether there is impairment indication, the Group will evaluate the recoverable amount of the goodwill at the year-end. The
Group will amortize the book value of the good according to the benefit situation in the synergistic effect from the enterprise merger
by the relevant assets group or the combination of the assets group and based on which executes the impairment test of the goodwill.
The recoverable amount of an asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present
value of expected future cash flows. An asset group 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. Fair value refers to the price received from selli ng an asset
or paid for transferring a liability in the orderly transaction on the measurement date by the market participants. When the Group
evaluating the fair value, should consider the characteristics when executing pricing of the relevant assets or liabilities on the
measurement date of the market participants (including the assets conditions and the location, the restrictions of the sales or use of
the assets and so on) as well as adopt the evaluation technology that applicable under the current circumstance and owns adequate
available data and supported by other information. The evaluation technology used mainly including the market method, equity
method and cost method.
An asset group 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. An asset group is composed of assets directly relating to cash-generation. Identification of an asset
group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from other
assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s operations and
how management makes decisions about continuing or disposing of the Group’s assets.
The present value of expected future cash flows of an asset is determined by discounting future cash flows, estimated to be derived
from continuing use of the asset and from its ultimate disposal, to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carryi ng amount,
the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged
to profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment losses
related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or set
of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.
However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell
(if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
25. Long-term Deferred Expenses
Long-term deferred expenses are amortized on a straight-line method within the benefit period:
Item Amortization period (years)
Cost of operating lease assets improvement 3-10 years
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BOE Technology Group Co., Ltd. Interim Report 2019
Cost of construction and use of public facilities 10-15 years
Others 2-10 years
26. Payroll
(1) Accounting Treatment of Short-term Compensation
During the accounting period of an employee' providing services, the Group recognizes the actual occurred or withdrawn worker
wages, bonuses and the social insurance charges such as the medical insurance premiums, industrial injury insurance premium and
birth insurance premium according to the specified benchmark and proportion as well as the housing funds as the liabilities and
records which in the current gains and losses or the relevant asset costs.
(2) Accounting Treatment of the Welfare after Demission
Welfare after demission refers to the various of the compensation and welfare provided after the retirement of the employees or after
the labor relation relieved by the enterprise owning to not receiving the service provided by the employees, except for the short-term
compensation and the demission welfare. Specifically divided as defined contribution plans and defined benefit plans. The defined
contribution plans participated by the Group including: the basic endowment insurance and unemployment insurance among the
social security system set up and managed by the government institutions according to the requirements of the relevant Chinese
regulations of the employees of the Group and the corporation pension plan approved and set up by the relevant depart ments
according to the relevant policies of the state enterprise annuity system. The payment amount of the basic endowment insurance and
the unemployment insurance should be calculated according to the benchmark and the proportion stipulated by the nation. The
enterprise annuity should be withdrawn according to the certain proportion of the total amount of the worker wages of the employees
voluntarily participated in the pension plan. During the accounting period of the employees providing the service, the Company
recognizes the deposited amount as the liabilities and records in the current gains and losses or the relevant asset costs. The Group
not involved with any defined benefit plans.
(3) Accounting Treatment of the Demission Welfare
The Group relieves the labor relations with the employees before the maturity of the labor contracts or puts forward the advice for
compensation for encouraging the employees voluntarily accept the reduction, and recognizes the liabilities caused from the
demission welfare on the earlier date of the followings and at the same time records which in the current gains and losses:
When the Group could not unilaterally withdraw the demission welfare provided owning to the termination of the labor relations or
the reduction advice:
The Group owns specific and formal reorganization plan that concerning the payment of the demission welfare; and the time when
the reorganization plan had been executed or had announced the main content of the plan to the parties influenced by which, then led
all parties formed the rational expectations about the Group is going to execute the reorganization.
(4) Accounting Treatment of the Welfare of Other Long-term Staffs
The welfare of other long-term staffs refers to the all the employees compensation except for the short-term compensation, welfare
after demission and demission welfare, which including the long-term compensated absences, long-term sociability benefits and
long-term profit sharing plan and so on. The Group not involved with any other long-term employee's welfare.
27. Lease Liabilities
Not applicable
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28. Provisions
(1) Criteria of estimated liabilities
A provision is recognized 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.
(2) Measurement of estimated liabilities
The estimated liabilities should be executed the initial measurement according to the best estimated number needed to be spent when
caring out the relevant current obligations. As for those with significant influences on the time value of money, the estimated
liabilities should be confirmed according to the amount after the discount of the estimated future cash flow. When recognizing the
best estimated number, the Group comprehensively considers the factors such as the risks, uncertainty and the time value of money
related to the contingencies. There is a contiguous range of the needed expenses and the possibility of various results within the range
is the same and the best estimated number should be recognized according to the mediant within the range; under other circumstance,
the best estimated number should be handled respectively according to the following situations:
If the contingencies involve with a single item, should be recognized according to the most likely happened amount.
If the contingencies involve with various items, should be recognized according to the calculation of various possible results and
the relevant probabilities.
The Group executes the reexamination of the book value of the estimated liabilities on the balance sheet date and adjusts the book
value according to the current best estimated number.
29. Revenue
Is the Company subject to any disclosure requirements of special industry?
No
Is the Company has implemented the new standards governing revenue?
□ Yes √No
30. Government Subsidies
(1) Judgment Basis and Accounting Treatment of Government Subsidies 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.
(2) Judgment Basis and Accounting Treatment of Government Subsidies Related to Profits
If they are used to compensate for related costs or losses of the Group in the future period, it shall be recognized as deferred income,
and included in profit and loss or used to offset related costs; otherwise it shall be directly included in profit and loss or used to offset
related costs.
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BOE Technology Group Co., Ltd. Interim Report 2019
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.
31. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Recognition basis of deferred income tax assets
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a difference
between the carrying amount of an asset or liability and its tax base (temporary difference). For any deductible loss that can be
carried forward to the next year to deduct the income tax according to the stipulations of tax law, relevant deferred income tax assets
shall be recognized. The deferred income tax asset shall be determined to the extent that the amount of taxable income to be offset by
the deductible loss or tax deduction to be likely obtained. For the deductible temporary difference relating to the investments of the
subsidiary companies, associated enterprises and joint enterprises, the enterprise shall recognize the corresponding deferred income
tax assets for those that meet the following requirements: the temporary differences are likely to be reversed in the expecte d future;
and it is likely to acquire any amount of taxable income that may be used for deducting the deductible temporary differences.
(2) Recognition basis of deferred income tax liabilities
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a difference
between the carrying amount of an asset or liability and its tax base (temporary difference). As for the temporary difference from the
initial recognition of goodwill, no deferred income tax liabilities shall be recognized. The taxable temporary differences relating to
the investments of subsidiary companies, associated enterprises and joint enterprises shall recognized as corresponding deferred
income tax liabilities, however, excluding those that simultaneously satisfy the following conditions: the investing enterprise can
control the time of the reverse of temporary differences; and the temporary differences are unlikely to reverse in the except ed future.
32. Lease
(1) Accounting Treatment of Operating Lease
Rental payments under operating leases are recognized as costs or expenses on a straight-line basis over the lease term.
Fixed assets leased out under operating leases, except for investment property (see Notes V. 16), are depreciated in accordance with
the Group’s depreciation policies described in Notes V. 20. Impairment losses are provided for in accordance with the account ing
policy. Income derived from operating leases is recognized in the income statement using the straight-line method over the lease term.
If initial direct costs incurred in respect of the assets leased out are material, the costs are initially capitalized and su bsequently
amortized in profit or loss over the lease term on the same basis as the lease income. Otherwise, the costs are charged to profit or loss
immediately.
(2) Accounting Treatments of Financial Lease
When the Group acquires an asset under a finance lease, the asset is measured at an amount equal to the lower of its faire values and
the present value of the minimum lease payments, each determined at the inception of the lease. The minimum lease payments are
recorded as long-term payables. The difference between the value of the leased assets and the minimum lease payments is recognized
as unrecognized finance charges. Initial direct costs that are attributable to a finance lease incurred by the Group are added to the
amounts recognized for the leased asset. Depreciation and impairment losses are accounted for in accordance with the accounting
policies described in Notes V. 16 and Notes V. 20, respectively.
If there is reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease term, the leased asset is
depreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorter of the lease term and its
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BOE Technology Group Co., Ltd. Interim Report 2019
estimated useful life.
Unrecognized finance charge under finance lease is amortized using an effective interest method over the lease term. The
amortization is accounted for in accordance with policies of borrowing costs. At the balance sheet date, long-term payables arising
from finance leases, net of the unrecognized finance charges, are presented into long-term payables and non-current liabilities due
within one year, respectively in the balance sheet.
The economic essence of leaseback formed financial lease is mortgage loan. The Company takes the received financing as
borrowings to report, and conducts subsequent measurements for long-term accounts payable according to amortized costs by
effective interest method.
33. Other Significant Accounting Policies and Estimates
(1) 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, joint control, or significant influence 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 of the Group. Related parties of the
Group and the Company include, but are not limited to:
(a) the Company’s parent
(b) the Company’s subsidiaries
(c) enterprises that are controlled by the Company’s parent
(d) investors that have joint control or over exercise significant influence over the Group
(e) enterprise or individuals if a party has control, joint control or significant influence over both the enterprises or individuals and
the Group
(f) joint ventures of the Group, including subsidies of joint ventures
(g) associates of the Group, including subsidies of associates
(h) principal individual investors and close family members of such individuals
(i) key management personnel of the Group and close family members of such individuals
(j) key management personnel of the Company’s parent
(k) close family members of key management personnel of the Company’s parent; and
(l) other enterprises that are jointly controlled or significantly influenced by principal individual investors, key manageme nt
personnel of the Group, and close family members of such individuals.
Besides the related parties stated above determined in accordance with the requirements of CAS, the following enterprises and
individuals are considered as (but not restricted to) related parties based on the disclosure requirements of “Administrative
Procedures on the Information Disclosures of Listed Companies” issued by the CSRC:
(m) enterprises, or persons that act in concert, that hold 5% or more of the Company’s shares
(n) individuals and close family members of such individuals who directly or indirectly hold 5% or more of the Company’s shares
(o) enterprises that satisfy any of the aforesaid conditions in (a), (c) and (m) during the past 12 months or will satisfy them within the
next 12 months pursuant to a relevant agreement
(p) individuals who satisfy any of the aforesaid conditions in (i), (j) and (n) during the past 12 months or will satisfy them within the
next 12 months pursuant to a relevant agreement; and
(q) enterprises, other than the Company and subsidiaries controlled by the Company, which are controlled directly or indirectly by an
individual defined in (i), (j), (n) or (p), or in which such an individual assumes the position of a director or senior executive.
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BOE Technology Group Co., Ltd. Interim Report 2019
(2) Segment Report
The Company will define various operation divisions based on the internal organizational structure, management requirements and
the internal reporting system. If two or above operation divisions possess similar economic features and the identical or similar
features can be observed in each single product’s or service’s nature, the production process’s nature, the product or service
customer’s type, the product selling or service rendering method, the legal influence and the administrative law impact on the product
or the rendered service, it could be consolidated into one operation division. Based on each single operation division, the reporting
division could be determined by taking the importance principle into consideration.
While formulating the divisional report, the Company should measure the divisional transaction revenue based on the actual
transaction price, and the accounting policy applied to formulate the divisional report should be consistent with that applied to
formulate the group’s financial statements.
34. Changes in Significant Accounting Policies and Estimates
(1) Changes in Significant Accounting Policies
√ Applicable □ Not applicable
Contents of changes in accounting policies and reasons thereof Approval procedures Note
(a) Presentation of financial statements
The Company prepared the financial statements for 2019 and adjusted data
of same period as required by the CK (2019) No. 6 Notice on Revising and
Issuing Formats of 2019 Financial Statements for General Enterprises
enacted by the Ministry of Finance in April 2019.
(b) Non-monetary asset exchange
The implementation of
The Ministry of Finance issued the CK (2019) No. 8 “Notice on Revising
Accounting Standards for
and Issuing Accounting Standards for Business Enterprises No.
Business Enterprises No.
7-Non-monetary Assets Exchange” in May 2019. The Company starts to
7-Non-monetary Assets
implement above notice since 10 June 2019 and adjusted all non-monetary
Exchange, Accounting
assets exchange occurring during the period from 1 January 2019 to the
Reviewed and approved by Standards for Business
execution date in accordance with the aforesaid standards.
the Company’s Board of Enterprises No. 12 Debt
(c) Debt restructuring
Directors and Supervisory Restructuring and new
The Ministry of Finance issued the CK (2019) No. 8 “Notice on Revising Committee standards governing
and Issuing Accounting Standards for Business Enterprises No. 12-Debt financial instruments did
Restructuring”. The Company starts to implement this notice since 17 June not greatly influence the
2019 and it is unnecessary to adjust the debt restructuring occurring during Company’s financial
the period from 1 January 2019 to the execution date. condition and operating
(d) Financial instruments results.
In 2017, the Ministry of Finance revised and issued the Accounting
Standards for Business Enterprises No. 22-Recognition and Measurement
of Financial Instruments (revised), Accounting Standards for Business
Enterprises No. 23-Transfer of Financial Assets (revised), Accounting
Standards for Business Enterprises No. 24-Hedge Accounting (revised) and
Accounting Standards for Business Enterprises No. 37-Presentation of
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BOE Technology Group Co., Ltd. Interim Report 2019
Financial Instruments (revised) (hereinafter collectively referred to as “new
standards governing financial instruments”). The Company starts to
implement above revised accounting standards since 1 January 2019 and
adjusts relevant contents of accounting policies.
(2) Significant Changes in Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
Current assets:
Monetary capital 51,481,539,711.00 51,481,539,711.00 0.00
Settlement reserve 0.00 0.00 0.00
Interbank loans granted 0.00 0.00 0.00
Trading financial assets 0.00 5,534,413,566.00 5,534,413,566.00
Financial assets at fair value through
0.00 0.00 0.00
profit or loss
Derivative financial assets 0.00 0.00 0.00
Notes receivable 656,781,577.00 656,781,577.00 0.00
Accounts receivable 19,880,680,518.00 19,874,492,119.00 -6,188,399.00
Financing backed by accounts
0.00 0.00 0.00
receivable
Prepayments 770,633,448.00 770,633,448.00 0.00
Premiums receivable 0.00 0.00 0.00
Reinsurance receivables 0.00 0.00 0.00
Receivable reinsurance contract
0.00 0.00 0.00
reserve
Other receivables 2,454,174,971.00 2,453,289,708.00 -885,263.00
Including: Interest receivable 140,597,317.00 140,597,317.00 0.00
Dividends receivable 3,711,768.00 3,711,768.00 0.00
Financial assets purchased under
0.00 0.00 0.00
resale agreements
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BOE Technology Group Co., Ltd. Interim Report 2019
Inventories 11,985,398,172.00 11,985,398,172.00 0.00
Contract assets 0.00 0.00 0.00
Assets classified as held for sale 0.00 0.00 0.00
Current portion of non-current assets 0.00 0.00 0.00
Other current assets 12,463,073,779.00 6,928,660,213.00 -5,534,413,566.00
Total current assets 99,692,282,176.00 99,685,208,514.00 -7,073,662.00
Non-current assets:
Loans and advances to customers 0.00 0.00 0.00
Investments in debt obligations 0.00 0.00 0.00
Available-for-sale financial assets 734,022,359.00 0.00 -734,022,359.00
Investments in other debt obligations 0.00 0.00 0.00
Held-to-maturity investments 0.00 0.00 0.00
Long-term receivables 0.00 0.00 0.00
Long-term equity investments 2,389,166,886.00 2,389,166,886.00 0.00
Investments in other equity 721,155,927.00
0.00 721,155,927.00
instruments
Other non-current financial assets 0.00 12,866,432.00 12,866,432.00
Investment property 1,283,867,651.00 1,283,867,651.00 0.00
Fixed assets 128,157,730,995.00 128,157,730,995.00 0.00
Construction in progress 56,423,354,887.00 56,423,354,887.00 0.00
Productive living assets 0.00 0.00 0.00
Oil and gas assets 0.00 0.00 0.00
Right-of-use assets 0.00 0.00 0.00
Intangible assets 5,937,679,394.00 5,937,679,394.00 0.00
R&D expense 0.00 0.00 0.00
Goodwill 904,370,509.00 904,370,509.00 0.00
Long-term prepaid expense 360,640,853.00 360,640,853.00 0.00
Deferred income tax assets 252,373,622.00 252,373,622.00 0.00
Other non-current assets 7,893,002,053.00 7,893,002,053.00 0.00
Total non-current assets 204,336,209,209.00 204,336,209,209.00 0.00
Total assets 304,028,491,385.00 304,021,417,723.00 -7,073,662.00
Current liabilities:
Short-term borrowings 5,449,954,885.00 5,449,954,885.00 0.00
Borrowings from central bank 0.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Interbank loans obtained 0.00 0.00 0.00
Trading financial liabilities 0.00 0.00 0.00
Financial liabilities at fair value
0.00 0.00 0.00
through profit or loss
Derivative financial liabilities 0.00 0.00 0.00
Notes payable 591,109,272.00 591,109,272.00 0.00
Accounts payable 22,213,956,616.00 22,213,956,616.00 0.00
Advances from customers 1,218,934,743.00 1,218,934,743.00 0.00
Financial assets sold under repurchase
0.00 0.00 0.00
agreements
Customer deposits and interbank
0.00 0.00 0.00
deposits
Payables for acting trading of
0.00 0.00 0.00
securities
Payables for underwriting of
0.00 0.00 0.00
securities
Payroll payable 2,224,931,171.00 2,224,931,171.00 0.00
Taxes payable 970,108,298.00 970,108,298.00 0.00
Other payables 22,956,979,828.00 22,956,979,828.00 0.00
Including: Interest payable 1,016,761,921.00 1,016,761,921.00 0.00
Dividends payable 23,648,778.00 23,648,778.00 0.00
Handling charges and commissions
0.00 0.00 0.00
payable
Reinsurance payables 0.00 0.00 0.00
Contract liabilities 0.00 0.00 0.00
Liabilities directly associated with
0.00 0.00 0.00
assets classified as held for sale
Current portion of non-current
5,597,563,204.00 5,597,563,204.00 0.00
liabilities
Other current liabilities 1,004,557,061.00 1,004,557,061.00 0.00
Total current liabilities 62,228,095,078.00 62,228,095,078.00 0.00
Non-current liabilities:
Insurance contract reserve 0.00 0.00 0.00
Long-term borrowings 94,780,077,864.00 94,780,077,864.00 0.00
Bonds payable 10,288,666,233.00 10,288,666,233.00 0.00
Including: Preferred shares 0.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Perpetual bonds 0.00 0.00 0.00
Lease liabilities 0.00 0.00 0.00
Long-term payables 1,416,092,239.00 1,416,092,239.00 0.00
Long-term payroll payable 0.00 0.00 0.00
Provisions 16,457,010.00 16,457,010.00 0.00
Deferred income 2,187,558,533.00 2,187,558,533.00 0.00
Deferred income tax liabilities 1,419,373,545.00 1,419,373,545.00 0.00
Other non-current liabilities 11,334,873,322.00 11,334,873,322.00 0.00
Total non-current liabilities 121,443,098,746.00 121,443,098,746.00 0.00
Total liabilities 183,671,193,824.00 183,671,193,824.00 0.00
Owners’ equity:
Share capital 34,798,398,763.00 34,798,398,763.00 0.00
Other equity instruments 0.00 0.00 0.00
Including: Preferred shares 0.00 0.00 0.00
Perpetual bonds 0.00 0.00 0.00
Capital reserves 38,213,100,596.00 38,213,100,596.00 0.00
Less: Treasury stock 0.00 0.00 0.00
Other comprehensive income -125,258,252.00 -331,449,633.00 -206,191,381.00
Specific reserve 0.00 0.00 0.00
Surplus reserves 1,152,626,310.00 1,152,625,429.00 -881.00
General reserve 0.00 0.00 0.00
Retained earnings 11,817,881,286.00 12,018,222,993.00 200,341,707.00
Total equity attributable to owners of
85,856,748,703.00 85,850,898,148.00 -5,850,555.00
the Company as the parent
Non-controlling interests 34,500,548,858.00 34,499,325,751.00 -1,223,107.00
Total owners’ equity 120,357,297,561.00 120,350,223,899.00 -7,073,662.00
Total liabilities and owners’ equity 304,028,491,385.00 304,021,417,723.00 -7,073,662.00
Note for adjustment:
The Company starts to implement the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of
Financial Instruments, the Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets, the Accounting
Standards for Business Enterprises No. 24 – Hedging Accounting, and the Accounting Standards for Business Enterprises No. 37 –
Presentation of Financial Instruments which are revised in 2017 since 1 January 2019 and adjust the financial statements of the first
execution year as required by standards.
Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
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BOE Technology Group Co., Ltd. Interim Report 2019
Current assets:
Monetary capital 3,829,814,050.00 3,829,814,050.00 0.00
Trading financial assets 0.00 0.00 0.00
Financial assets at fair value through
0.00 0.00 0.00
profit or loss
Derivative financial assets 0.00 0.00 0.00
Notes receivable 1,500,000.00 1,500,000.00 0.00
Accounts receivable 36,952,623.00 36,952,623.00 0.00
Financings backed by accounts
0.00 0.00 0.00
receivable
Prepayments 25,020,734.00 25,020,734.00 0.00
Other receivables 2,015,828,460.00 2,015,819,544.00 -8,916.00
Including: Interest receivable 9,659,279.00 9,659,279.00 0.00
Dividends receivable 14,115,915.00 14,115,915.00 0.00
Inventories 9,289,141.00 9,289,141.00 0.00
Contract assets 0.00 0.00 0.00
Assets classified as held for sale 0.00 0.00 0.00
Current portion of non-current assets 450,000,000.00 450,000,000.00 0.00
Other current assets 47,805,096.00 47,805,096.00 0.00
Total current assets 6,416,210,104.00 6,416,201,188.00 -8,916.00
Non-current assets:
Investments in debt obligations 0.00 0.00 0.00
Available-for-sale financial assets 128,297,254.00 0.00 -128,297,254.00
Investments in other debt obligations 0.00 0.00 0.00
Held-to-maturity investments 0.00 0.00 0.00
Long-term receivables 0.00 0.00 0.00
Long-term equity investments 143,499,733,485.00 143,499,733,485.00 0.00
Investments in other equity
0.00 128,297,254.00 128,297,254.00
instruments
Other non-current financial assets 0.00 0.00 0.00
Investment property 290,253,475.00 290,253,475.00 0.00
Fixed assets 969,371,352.00 969,371,352.00 0.00
Construction in progress 251,314,313.00 251,314,313.00 0.00
Productive living assets 0.00 0.00 0.00
Oil and gas assets 0.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Right-of-use assets 0.00 0.00 0.00
Intangible assets 514,186,496.00 514,186,496.00 0.00
R&D expense 0.00 0.00 0.00
Goodwill 0.00 0.00 0.00
Long-term prepaid expense 99,701,797.00 99,701,797.00 0.00
Deferred income tax assets 290,794,548.00 290,794,548.00 0.00
Other non-current assets 284,243,667.00 284,243,667.00 0.00
Total non-current assets 146,327,896,387.00 146,327,896,387.00 0.00
Total assets 152,744,106,491.00 152,744,097,575.00 -8,916.00
Current liabilities:
Short-term borrowings 1,000,000,000.00 1,000,000,000.00 0.00
Trading financial liabilities 0.00 0.00 0.00
Financial liabilities at fair value
0.00 0.00 0.00
through profit or loss
Derivative financial liabilities 0.00 0.00 0.00
Notes payable 0.00 0.00 0.00
Accounts payable 35,322,286.00 35,322,286.00 0.00
Advances from customers 1,577,035,515.00 1,577,035,515.00 0.00
Contract liabilities 0.00 0.00 0.00
Payroll payable 201,139,261.00 201,139,261.00 0.00
Taxes payable 250,558,556.00 250,558,556.00 0.00
Other payables 8,209,736,090.00 8,209,736,090.00 0.00
Including: Interest payable 330,964,989.00 330,964,989.00 0.00
Dividends payable 6,451,171.00 6,451,171.00 0.00
Liabilities directly associated with
0.00 0.00 0.00
assets classified as held for sale
Current portion of non-current
2,590,000,000.00 2,590,000,000.00 0.00
liabilities
Other current liabilities 0.00 0.00 0.00
Total current liabilities 13,863,791,708.00 13,863,791,708.00 0.00
Non-current liabilities:
Long-term borrowings 26,520,000,000.00 26,520,000,000.00 0.00
Bonds payable 9,976,533,425.00 9,976,533,425.00 0.00
Including: Preferred shares 0.00 0.00 0.00
Perpetual bonds 0.00 0.00 0.00
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Lease liabilities 0.00 0.00 0.00
Long-term payables 0.00 0.00 0.00
Long-term payroll payable 0.00 0.00 0.00
Provisions 0.00 0.00 0.00
Deferred income 5,523,949,841.00 5,523,949,841.00 0.00
Deferred income tax liabilities 0.00 0.00 0.00
Other non-current liabilities 20,954,104,125.00 20,954,104,125.00 0.00
Total non-current liabilities 62,974,587,391.00 62,974,587,391.00 0.00
Total liabilities 76,838,379,099.00 76,838,379,099.00 0.00
Owners’ equity:
Share capital 34,798,398,763.00 34,798,398,763.00 0.00
Other equity instruments 0.00 0.00 0.00
Including: Preferred shares 0.00 0.00 0.00
Perpetual bonds 0.00 0.00 0.00
Capital reserves 37,590,966,191.00 37,590,966,191.00 0.00
Less: Treasury stock 0.00 0.00 0.00
Other comprehensive income -28,507,585.00 -284,608,843.00 -256,101,258.00
Specific reserve 0.00 0.00 0.00
Surplus reserves 1,152,626,310.00 1,152,625,429.00 -881.00
Retained earnings 2,392,243,713.00 2,648,336,936.00 256,093,223.00
Total owners’ equity 75,905,727,392.00 75,905,718,476.00 -8,916.00
Total liabilities and owners’ equity 152,744,106,491.00 152,744,097,575.00 -8,916.00
Note for adjustment:
The Company starts to implement the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of
Financial Instruments, the Accounting Standards for Business Enterprises No. 23 – Transfer of Financial Assets, the Accounting
Standards for Business Enterprises No. 24 – Hedging Accounting, and the Accounting Standards for Business Enterprises No. 37 –
Presentation of Financial Instruments which are revised in 2017 since 1 January 2019 and adjust the financial statements of the first
execution year as required by standards.
(4) Retroactive Adjustments to Comparative Data of Prior Years when First Execution of any New
Standards Governing Financial Instruments or Leases
□ Applicable √ Not applicable
35. Others
Naught
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BOE Technology Group Co., Ltd. Interim Report 2019
VI. Taxation
1. Main Taxes and Tax Rate
Category of taxes Tax basis Tax rate
Output VAT is calculated on the income from product sales,
taxable labor services and provision of taxable services, based on 6%，9%，10%，11%，13%，
VAT
tax laws. The remaining balance of output VAT, after subtracting 16%，17%
the deductible input VAT of the period, is VAT payable.
Urban maintenance and Based on business tax and VAT paid and the VAT tax free for the
7%，5%
construction tax Period
Enterprise income tax Based on taxable income 15%-25%
Education surcharge and local Based on business tax and VAT paid and the VAT tax free for the
3%，2%
education surcharge Period
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
BOE Technology Group Co., Ltd. 15%
Beijing BOE Optoelectronics Technology Co., Ltd. 15%
Chengdu BOE Optoelectronics Technology Co., Ltd. 15%
Hefei BOE Optoelectronics Technology Co., Ltd. 15%
Beijing BOE Display Technology Co., Ltd. 15%
Hefei Xinsheng Optoelectronics Technology Co., Ltd. 15%
Erdos Yuansheng Optoelectronics Co., Ltd. 15%
Chongqing BOE Optoelectronics Technology Co., Ltd. 15%
Hefei BOE Display Technology Co., Ltd. 15%
Fuzhou BOE Optoelectronics Technology Co., Ltd. 15%
Mianyang BOE Optoelectronics Technology Co., Ltd. 15%
BOE (Hebei) Mobile Display Technology Co., Ltd. 15%
Beijing BOE Special Display Technology Co., Ltd. 15%
Beijing BOE Energy Technology Co., Ltd. 15%
Beijing BOE Multimedia Technology Co., Ltd. 15%
BOE Optical Science and Technology Co., Ltd. 15%
Beijing BOE Tea Valley Electronic Co., Ltd. 15%
Hefei BOE Display Light Source Co., Ltd. 15%
Chongqing BOE Display Lighting Co., Ltd. 15%
Beijing BOE Semi-conductor Co., Ltd. 15%
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BOE Technology Group Co., Ltd. Interim Report 2019
Hefei BOE Semi-conductor Co., Ltd. 15%
Beijing BOE Vacuum Electronics Co., Ltd. 15%
Beijing BOE Vacuum Technology Co., Ltd. 15%
Beijing Asahi Electron Material Co., Ltd. 15%
BOE Intelligent Technology Co., Ltd. 15%
2. Tax Preference
Authority of Approval, Approval Document
Company Policy basis
No. and Valid Period
According to corresponding provision stipulated
On 4 November 2010, Ministry of Finance
in CS [2010] No.100—Notice on Returning the
and SAT jointly issued CS [2010] No.100
Excess VAT Paid at the End of the Period
Document, it’s allowed to return the excess
Hefei BOE Optoelectronics related to Partial Projects’ Imported Equipment
VAT paid at the end of the period related to
Technology Co., Ltd. by Ministry of Finance SAT, it’s allowed to
partial projects’ imported equipment, and the
return the excess VAT paid at the end of the
document was officially implemented from 1
period related to partial projects’ imported
December 2010 on.
equipment.
According to CS [2011] No. 107--Notice on On 4 November 2010, Ministry of Finance
Beijing BOE Display Returning the Excess VAT Paid at the End of and SAT jointly issued CS [2011] No.107
Technology Co., Ltd. the Period related to Integrated Circuit Document, it’s allowed to return the excess
Hefei BOE Optoelectronics Enterprise’s Purchase of Equipment by Ministry VAT paid at the end of the period by the
Technology Co., Ltd. of Finance SAT, it’s allowed to return the major integrated circuit enterprise for
Hefei Xinsheng Optoelectronics excess VAT paid at the end of the period by the purchasing the equipment and the document
Technology Co., Ltd. major integrated circuit enterprise for was officially implemented from 1 November
purchasing the equipment. 2011 on.
According to CGS [2012] No. 17—Notice on
On 4 November 2010, Ministry of Finance
various Policies related to VAT Payment by
Beijing BOE Display and General Administration of Customs
Installments for the Imported Equipment
Technology Co., Ltd. jointly issued CS [2012] No.17 Document, the
Involved in the Significant New FPD Project by
Erdos Yuansheng significant new FPD project enterprises were
Ministry of Finance General Administration of
Optoelectronics Co., Ltd. allowed to pay corresponding new key
Customs, the significant new FPD project
Chongqing BOE Optoelectronics imported equipment VAT by installments, and
enterprises were allowed to pay corresponding
Technology Co., Ltd. the document was officially implemented
new key imported equipment VAT by
from 1 January 2011 on.
installments.
According to CGS [2013] No. 63—Notice on In September 2013, Ministry of Finance and
the Policy of Tax Payment by Installments General Administration of Customs jointly
granted to the 3rd Batch of New FPD Project by issued CS [2013] No.63 Document, the
Hefei Xinsheng Optoelectronics
Ministry of Finance General Administration of significant new FPD project enterprises were
Technology Co., Ltd.
Customs, the significant new FPD project allowed to pay corresponding new key
enterprises were allowed to pay corresponding imported equipment VAT by installments, and
new key imported equipment VAT by the document was officially implemented
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BOE Technology Group Co., Ltd. Interim Report 2019
installments. from March 2013 on.
In 2016, Ministry of Finance, General
Administration of Customs and SAT jointly
In June 2016, Ministry of Finance issued [2016] issued CS [2016] No.30 Notice on various
Hefei BOE Display Technology No.30 Document. According to the document, Policies related to VAT Payment by
Co., Ltd. in terms of the new FPD project and new key Installments for the Imported Equipment
Fuzhou BOE Optoelectronics equipment imported between 1 January 2015 Involved in the New FPD Project. According
Technology Co., Ltd. and 31 December 2018. Import VAT could be to the document, in terms of the new FPD
Chengdu BOE Optoelectronics paid by installments within 6 years (72 project and new key equipment imported
Technology Co., Ltd. consecutive months) after the first device was between 1 January 2015 and 31 December
imported. 2018. Import VAT could be paid by
installments within 6 years (72 consecutive
months) after the first device was imported.
3. Others
Naught
VII. Notes on Major Items in Consolidated Financial Statements of the Company
1. Monetary Capital
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 528,768.00 537,805.00
Bank deposits 40,202,349,838.00 43,340,146,382.00
Other monetary capital 6,988,792,091.00 8,140,855,524.00
Total 47,191,670,697.00 51,481,539,711.00
Of which: the total amount deposited overseas 4,013,274,534.00 5,012,219,357.00
Other notes
Including: Total overseas deposits were equivalent to RMB4,013,274,534.
As at 30 June 2019, other monetary funds were pledged by the Group amounting to USD154,000,000 (2018: USD305,000,000) for
short-term loans, and RMB1,353,140,291 (2018: RMB142,547,192 and USD18,500,000) were pledged for long-term loans. The rest
of other restricted monetary funds amount to RMB4,536,493,045, and they are mainly the margin deposits for security deposited in
the bank.
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through profit or loss 3,932,990,942.00 5,534,413,566.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Of which:
Financial assets designated to be measured at fair value
and changes thereof recorded into the current profit or 0.00 0.00
loss
Of which:
total 3,932,990,942.00 5,534,413,566.00
Other notes:
Naught
3. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 139,552,718.00 655,081,577.00
Commercial acceptance bill 1,371,417.00 1,700,000.00
Total 140,924,135.00 656,781,577.00
If the bad debt provision for notes receivable was withdrawn in accordance with the general model of expected credit losses,
information related to bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Bad debt provision withdrawn in the Reporting Period:
Unit: RMB
Increase/decrease
Category Beginning balance Reversed or Ending balance
Withdrawn Verified
collected
Naught
Of which, bad debt provision collected or reversed with significant amount:
□ Applicable √ Not applicable
(3) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Amount
Bank acceptance bill 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Commercial acceptance bill 0.00
Total 0.00
(4) Notes Receivable which Had Endorsed by the Company or had Discounted and had not Due on the
Balance Sheet Date at the Period-end
Unit: RMB
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
Bank acceptance bill 85,698,911.00 47,900,262.00
Commercial acceptance bill 0.00 1,371,417.00
Total 85,698,911.00 49,271,679.00
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the Contract
or Agreement
Unit: RMB
Amount of the notes transferred to accounts receivable at the
Item
period-end
Commercial acceptance bill 0.00
Total 0.00
Other notes
Naught
(6) Notes Receivable with Actual Verification for the Reporting Period
Unit: RMB
Item Amount
Naught
Of which, verification of significant notes receivable:
Unit: RMB
Whether occurred
because of
Name of the entity Nature Amount Reason Procedure
related-party
transactions
Naught
Notes of the verification of notes receivable:
Naught
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BOE Technology Group Co., Ltd. Interim Report 2019
4. Accounts Receivable
(1) Accounts Receivable Classified by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category
Withdrawal Carrying value Withdrawal Carrying value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts receivable with
single bad debt provision 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
accrued
Of which:
N/A
Accounts receivable with
bad debt provision
19,607,717,635.00 100.00% 340,044,585.00 2.00% 19,267,673,050.00 20,200,002,348.00 100.00% 325,510,229.00 2.00% 19,874,492,119.00
withdrawn according to
groups
Of which:
N/A
Total 19,607,717,635.00 100.00% 340,044,585.00 2.00% 19,267,673,050.00 20,200,002,348.00 100.00% 325,510,229.00 2.00% 19,874,492,119.00
Single bad debt provision accrued:
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BOE Technology Group Co., Ltd. Interim Report 2019
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Withdrawal reason
N/A
Total -- --
Bad debt provision withdrawn according to groups:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risks characteristics 19,607,717,635.00 340,044,585.00 2.00%
Total 19,607,717,635.00 340,044,585.00 --
Notes of the basis for recognizing the group:
Naught
If the bad debt provision for accounts receivable was withdrawn in accordance with the general model of expected credit losses,
information related to bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
√Applicable □ Not applicable
Withdrawal of bad debt provision
Unit: RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses in the next 12 the whole existence period the whole existence period
months (no credit impairment) (with credit impairment)
Balance on 1 January
0.00 5,103,730.00 320,406,499.00 325,510,229.00
2019
Balance of 1 January
2019 in the Reporting —— —— —— ——
Period
--Transferred to the
0.00 0.00 0.00 0.00
Phase II
--Transferred to the
0.00 0.00 0.00 0.00
Phase III
--Reversed to the Phase
0.00 0.00 0.00 0.00
II
--Reversed to the Phase I 0.00 0.00 0.00 0.00
Withdrawn in the Current
0.00 1,366,584.00 13,183,163.00 14,549,747.00
Period
Reversed in the Current
0.00 636,890.00 0.00 636,890.00
Period
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BOE Technology Group Co., Ltd. Interim Report 2019
write-off in the Current
0.00 0.00 0.00 0.00
Period
Verified in the Current
0.00 0.00 0.00 0.00
Period
Other changes 0.00 -3,504.00 625,003.00 621,499.00
Balance on 30 June 2019 0.00 5,829,920.00 334,214,665.00 340,044,585.00
Disclosed by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 19,135,881,070.00
1 to 2 years 124,570,022.00
2 to 3 years 211,440,420.00
over 3 years 135,826,123.00
Total 19,607,717,635.00
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The bad debt provision withdrawn in the Current Period was RMB14,549,747.00, and the bad debt provision recovered or reversed in
the Reporting Period was RMB636,890.00.
(3) Accounts Receivable with Actual Verification for the Reporting Period
Not applicable
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
The total amount of the accounts receivable of the top 5 of the Group at the period-end was of RMB10,194,327,444.00 that covered
51.99% of the total amount of the ending balance of the accounts receivable at the period-end, which no need to withdraw the bad
debt provision after the assessment.
(5) Derecogniziton of Accounts Receivable due to the Transfer of Financial Assets
Not applicable
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
Not applicable
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5. Prepayments
(1) List by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 574,080,021.00 85.63% 721,657,321.00 93.64%
1 to 2 years 85,713,054.00 12.79% 46,363,026.00 6.02%
2 to 3 years 9,620,182.00 1.44% 2,035,569.00 0.26%
Over 3 years 977,255.00 0.15% 577,532.00 0.07%
Total 670,390,512.00 -- 770,633,448.00 --
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
The Group has no such over-1-year-old prepayments with a substantial amount that were not settled in time.
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
The total amount of the prepayment of the top 5 of the Group at the period-end was of RMB438,563,518.00 that covered 65.42% of
the total amount of the ending balance of the prepayment at the period-end.
Other notes: naught
6. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Interest receivable 173,298,920.00 140,597,317.00
Dividends receivable 4,367,120.00 3,711,768.00
Other receivables 484,954,863.00 2,308,980,623.00
Total 662,620,903.00 2,453,289,708.00
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
Fixed time deposit 173,298,920.00 140,597,317.00
Entrusted loans 0.00 0.00
Bond investment 0.00 0.00
Total 173,298,920.00 140,597,317.00
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BOE Technology Group Co., Ltd. Interim Report 2019
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Entity Ending balance Overdue time Overdue reason impairment and the
judgment basis
Naught
Other notes:
Naught
3) Withdrawal of bad debt provision
□ Applicable √ Not applicable
(2) Dividends Receivable
1) Dividends Receivable
Unit: RMB
Item (or investees) Ending balance Beginning balance
Bank of Chongqing 3,896,529.00 0.00
Beijing Electronics Zone Co., Ltd. 0.00 3,711,768.00
TPV Technology 470,591.00 0.00
Total 4,367,120.00 3,711,768.00
2) Significant Dividends Receivable Aged over 1 Year
Unit: RMB
Whether occurred
Item (or investees) Ending balance Aging Reason impairment and the
judgment basis
Naught
3) Withdrawal of bad debt provision
□ Applicable √ Not applicable
Other notes: naught
(3) Other Receivables
1) Other Receivables Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Accounts receivable for equity transfer 200,000,000.00 200,000,000.00
Cash deposit and cash pledge 124,833,259.00 148,893,918.00
VAT refunds 11,089,687.00 415,687,566.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Wealth management receivables 0.00 1,408,094,816.00
Other 156,574,278.00 137,530,098.00
Total 492,497,224.00 2,310,206,398.00
2) Withdrawal of Bad Debt Provision
Unit: RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses in the next the whole existence period the whole existence period
12 months (no credit impairment) (with credit impairment)
Balance on 1 January 2019 0.00 1,114,609.00 111,166.00 1,225,775.00
Balance of 1 January 2019 in the
—— —— —— ——
Reporting Period
--Transferred to the Phase II 0.00 0.00 0.00 0.00
--Transferred to the Phase III 0.00 0.00 0.00 0.00
--Reversed to the Phase II 0.00 0.00 0.00 0.00
--Reversed to the Phase I 0.00 0.00 0.00 0.00
Withdrawn in the Current Period 0.00 545,697.00 5,836,303.00 6,382,000.00
Reversed in the Current Period 0.00 64,412.00 0.00 64,412.00
write-off in the Current Period 0.00 0.00 0.00 0.00
Verified in the Current Period 0.00 1,100.00 0.00 1,100.00
Other changes 0.00 98.00 0.00 98.00
Balance on 30 June 2019 0.00 1,594,892.00 5,947,469.00 7,542,361.00
Changes in carrying amount of provision for loss with significant changes in amount in the Reporting Period
□ Applicable √ Not applicable
Disclosed by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 211,296,265.00
1 to 2 years 20,108,014.00
2 to 3 years 12,447,806.00
Over 3 years 248,645,139.00
Total 492,497,224.00
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The bad debt provision withdrawn in the Current Period was RMB6,382,000.00, and the bad debt provision recovered or reversed in
the Reporting Period was RMB64,412.00.
4) Other Receivables with Actual Verification in the Reporting Period
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BOE Technology Group Co., Ltd. Interim Report 2019
Unit: RMB
Item Amount verified
Customer 1 1,100.00
Of which, the verification of significant other receivables:
Unit: RMB
Whether occurred
Reason for because of
Name of the entity Nature Amount verified Procedure
verification related-party
transactions
Naught
Notes of verification of other receivables:
None
5) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to ending
Ending balance of
Name of the entity Nature Ending balance Aging balance of other
bad debt provision
receivables%
Accounts receivable
Customer 1 200,000,000.00 Over 5 years 40.61% 0.00
for equity transfer
Cash deposit and
Customer 2 39,500,000.00 3 to 4 years 8.02% 0.00
cash pledge
Utilities, fees for
Customer 3 gas, heat and power, 38,565,098.00 Within 1 year 7.83% 0.00
etc. other
Customer 4 Rental income, other 14,063,662.00 Within 1 year 2.86% 0.00
Customer 5 other 11,495,000.00 Over 5 years 2.33% 0.00
Total -- 303,623,760.00 -- 61.65%
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Aging at period-end
subsidies time, amount and basis
Naught
7) Derecogniziton of Other Receivables due to the Transfer of Financial Assets
Naught
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other Receivables
Naught
Other notes:
Naught
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7. Inventories
Has implemented the new standards governing revenue or not
□ Yes √ No
(1) Category of Inventories
Unit: RMB
Ending balance Beginning balance
Item Falling price
Carrying amount Falling price reserves Carrying value Carrying amount Carrying value
reserves
Raw materials 4,778,202,798.00 253,152,715.00 4,525,050,083.00 4,350,466,710.00 293,435,033.00 4,057,031,677.00
Goods in process 1,523,923,584.00 146,601,394.00 1,377,322,190.00 1,442,498,808.00 150,867,947.00 1,291,630,861.00
Inventory goods 9,638,395,244.00 1,309,861,204.00 8,328,534,040.00 7,770,574,684.00 1,244,503,744.00 6,526,070,940.00
Turnover materials 121,655,602.00 72,456.00 121,583,146.00 113,493,354.00 2,828,660.00 110,664,694.00
Consumptive living assets 0.00 0.00 0.00 0.00 0.00 0.00
Finished but unsettled assets
0.00 0.00 0.00 0.00 0.00 0.00
generated from, construction contract
Total 16,062,177,228.00 1,709,687,769.00 14,352,489,459.00 13,677,033,556.00 1,691,635,384.00 11,985,398,172.00
Whether the Company needs satisfy relevant disclosure requirements stated in SZSE Industrial Information Disclosure Guidance No. 4-Listed Company Specialized in Seed Industry or Planting
Business or not?
No
(2) Falling Price Reserves of Inventories
Unit: RMB
127
BOE Technology Group Co., Ltd. Interim Report 2019
Increase Decrease
Item Beginning balance Ending balance
Withdrawal Other Reverse or write-off Other
Raw materials 293,435,033.00 90,137,452.00 0.00 130,419,770.00 0.00 253,152,715.00
Goods in process 150,867,947.00 41,179,527.00 0.00 45,446,080.00 0.00 146,601,394.00
Inventory goods 1,244,503,744.00 863,560,222.00 0.00 798,202,762.00 0.00 1,309,861,204.00
Turnover materials 2,828,660.00 0.00 0.00 2,756,204.00 0.00 72,456.00
Consumptive living assets 0.00 0.00 0.00 0.00 0.00 0.00
Finished but unsettled assets
0.00 0.00 0.00 0.00 0.00 0.00
generated from, construction contract
Total 1,691,635,384.00 994,877,201.00 0.00 976,824,816.00 0.00 1,709,687,769.00
Naught
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
Not applicable
(4) Completed but Unsettled Assets Generated from Construction Contacts at the Period-end
Unit: RMB
Item Amount
Accumulated incurred losses 0.00
Accumulated recognized gross margin 0.00
Less: estimated losses 0.00
Amount with settlement 0.00
Completed but unsettled assets resulting from construction contracts at the end of the period 0.00
Other notes: Naught
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8. Current Portion of Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Current portion of investments in debt obligations 0.00 0.00
Current portion of other investments in debt obligations 0.00 0.00
Total 0.00 0.00
Significant investments in debt obligations /other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Actual Maturity Actual Maturity
Par value Coupon rate Par value Coupon rate
interest rate date interest rate date
Naught
Total —— —— —— —— —— ——
Other notes:Naught
9. Other Current Assets
Has implemented the new standards governing revenue or not
□ Yes √ Not
Unit: RMB
Item Ending balance Beginning balance
VAT retained 5,843,671,073.00 4,841,165,133.00
Input tax to be verified and deducted 2,102,601,313.00 1,773,794,503.00
Advance payment of income tax 157,205,300.00 132,824,503.00
Other 207,534,207.00 180,876,074.00
Total 8,311,011,893.00 6,928,660,213.00
Other notes: Naught
10. Investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Impairment Impairment
Carrying amount Carrying value Carrying amount Carrying value
provision provision
Convertible
17,960,946.00 17,960,946.00 0.00 17,960,946.00 17,960,946.00 0.00
bonds of modern
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BOE Technology Group Co., Ltd. Interim Report 2019
LCD
Total 17,960,946.00 17,960,946.00 0.00 17,960,946.00 17,960,946.00 0.00
Significant investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Actual Maturity Actual Maturity
Par value Coupon rate Par value Coupon rate
interest rate date interest rate date
Naught
Withdrawal of impairment provision
Unit: RMB
Phase I Phase II Phase III
Expected credit losses for Expected credit losses for
Bad debt provision Expected credit losses Total
the whole existence period the whole existence period
in the next 12 months
(no credit impairment) (with credit impairment)
Balance on 1 January 2019 0.00 0.00 17,960,946.00 17,960,946.00
Balance of 1 January 2019 in the
—— —— —— ——
Reporting Period
--Transferred to the Phase II 0.00 0.00 0.00 0.00
--Transferred to the Phase III 0.00 0.00 0.00 0.00
--Reversed to the Phase II 0.00 0.00 0.00 0.00
--Reversed to the Phase I 0.00 0.00 0.00 0.00
Withdrawn in the Current Period 0.00 0.00 0.00 0.00
Reversed in the Current Period 0.00 0.00 0.00 0.00
write-off in the Current Period 0.00 0.00 0.00 0.00
Verified in the Current Period 0.00 0.00 0.00 0.00
Other changes 0.00 0.00 0.00 0.00
Balance on 30 June 2019 0.00 0.00 17,960,946.00 17,960,946.00
Changes in carrying amount of provision for losses with significant amount in the Reporting Period
□ Applicable √ Not applicable
Other notes:
Naught
130
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11. Long-term Equity Investment
Unit: RMB
Increase/decrease
Withdra
Gains and losses Adjustment of Chang Cash bonus or wal of Ending balance
Investees Beginning balance Additional Reduced recognized other es of profits impairm Ending balance of depreciation
Other
investment investment under the equity comprehensive other announced to ent reserve
method income equity issue provisio
n
I. Joint ventures
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Associated enterprises
Beijing Nissin
Electronics Precision 538,489.00 0.00 0.00 -534,864.00 0.00 0.00 0.00 0.00 0.00 3,625.00 0.00
Component Co., Ltd.
Beijing Nittan
61,733,085.00 0.00 0.00 2,152,314.00 0.00 0.00 -3,000,000.00 0.00 0.00 60,885,399.00 0.00
Electronics Co., Ltd.
Beijing Yingfei Hailin
Venture Capital
435,828.00 0.00 0.00 -435,828.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Management Co.,
Ltd.
Ordos BOE Energy
Investment Co., Ltd.
370,321,340.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 370,321,340.00 537,136,972.00
(BOE Energy
Investment)
Beijing Fly Hailin
82,336,933.00 0.00 0.00 -332,938.00 0.00 0.00 0.00 0.00 0.00 82,003,995.00 0.00
Investment Center
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TPV Display
Technology (China) 23,001,359.00 0.00 0.00 -2,258,314.00 0.00 0.00 0.00 0.00 0.00 20,743,045.00 0.00
Co., Ltd.
Beijing Xindong
Neng Investment
1,455,174,877.00 0.00 37,081,499.00 -7,203,989.00 175,359,777.00 0.00 0.00 0.00 0.00 1,586,249,166.00 0.00
Fund (limited
partnership)
Beijing Xindong
Neng Investment
5,188,862.00 0.00 0.00 987,022.00 0.00 0.00 0.00 0.00 0.00 6,175,884.00 0.00
Management Co.,
Ltd.
Shenzhen Yunyinggu
15,481,506.00 0.00 0.00 -8,660,243.00 0.00 0.00 0.00 0.00 0.00 6,821,263.00 0.00
Technology Co., Ltd.
Beijing XLOONG
22,609,211.00 0.00 0.00 -232,848.00 0.00 0.00 0.00 0.00 0.00 22,376,363.00 0.00
Technology Co., Ltd.
NewOnTechnology
3,185,494.00 0.00 0.00 0.00 12,723.00 0.00 0.00 0.00 0.00 3,198,217.00 0.00
Co.Ltd.
CnogaMedical Ltd. 343,160,000.00 0.00 0.00 0.00 575,000.00 0.00 0.00 0.00 0.00 343,735,000.00 0.00
Hefei Xin Jing Yuan
Electronic Materials 2,999,902.00 0.00 0.00 -33,979.00 0.00 0.00 0.00 0.00 0.00 2,965,923.00 0.00
Co., Ltd.
Beijing Zhonglianhe
Ultra HD
Collaborative 3,000,000.00 0.00 0.00 -18,294.00 0.00 0.00 0.00 0.00 0.00 2,981,706.00 0.00
Technology Center
Co., Ltd.
Beijing Innovation 0.00 100,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100,000,000.00 0.00
132
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Industry Investment
Co., Ltd.
Beijing Electronic
Control Investment 0.00 17,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17,000,000.00 0.00
Co., Ltd.
Subtotal 2,389,166,886.00 117,000,000.00 37,081,499.00 -16,571,961.00 175,947,500.00 0.00 -3,000,000.00 0.00 0.00 2,625,460,926.00 537,136,972.00
Total 2,389,166,886.00 117,000,000.00 37,081,499.00 -16,571,961.00 175,947,500.00 0.00 -3,000,000.00 0.00 0.00 2,625,460,926.00 537,136,972.00
Other notes
None
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BOE Technology Group Co., Ltd. Interim Report 2019
12. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
TPV Technology 11,865,989.00 25,613,279.00
Electronic Zone 108,956,662.00 83,995,943.00
Beijing Digital TV National Engineering Laboratory Co., Ltd. 6,250,000.00 6,250,000.00
Bank of Chongqing 102,206,616.00 98,705,065.00
China Securities 58,219,470.00 44,412,577.00
New Century Medical Treatment 75,472,547.00 125,909,253.00
Teralane Semiconductor Inc 11,868,000.00 11,868,000.00
Zhejiang BOE Display Technology Co., Ltd. 321,256.00 321,256.00
Zhejiang Qiusheng Optoelectronics Technology Co., Ltd. 248,776.00 248,776.00
Danhua Capital, L. P. 25,780,125.00 25,737,000.00
Danhua Capital II, L.P. 63,590,975.00 63,484,600.00
Kateeva Inc. 82,118,292.00 81,980,924.00
DEPICT INC. 13,749,400.00 13,726,400.00
MOOV INC. 27,612,607.00 27,566,417.00
ZGLUE INC. 10,312,038.00 10,294,788.00
Nanosys INC 51,560,250.00 51,474,000.00
Ceribell INC 8,937,102.00 8,922,152.00
Baebies INC 30,205,280.00 30,154,753.00
Illumina Fund I,L.P. 14,795,186.00 10,490,744.00
Total 704,070,571.00 721,155,927.00
Disclosure of Non-trading Equity Instrument Investment
Unit: RMB
Amount of Reason of
Reason for assigning
other other
to measure at fair
Dividend compressive comprehensiv
Accumulative Accumulative value and changes
Item income income e income
gains losses recorded into other
recognized transferred to transferred to
comprehensive
retained retained
income
earnings earnings
Non-trading equity
TPV Technology 470,591.00 0.00 122,792,169.00 0.00 Naught
instrument
Electronic Zone 1,883,379.00 18,796,234.00 0.00 0.00 Non-trading equity Naught
134
BOE Technology Group Co., Ltd. Interim Report 2019
instrument
Non-trading equity
Bank of Chongqing 3,820,841.00 0.00 33,197,286.00 0.00 Naught
instrument
Non-trading equity
China Securities 0.00 0.00 11,192,865.00 0.00 Naught
instrument
New Century Medical Non-trading equity
0.00 0.00 65,790,317.00 0.00 Naught
Treatment instrument
Zhejiang BOE Display Non-trading equity
0.00 0.00 59,638,453.00 0.00 Naught
Technology Co., Ltd. instrument
Zhejiang Qiusheng
Non-trading equity
Optoelectronics Technology 0.00 0.00 46,183,150.00 0.00 Naught
instrument
Co., Ltd.
Non-trading equity
Meta Company 0.00 0.00 34,315,949.00 0.00 Naught
instrument
Non-trading equity
Other units 0.00 0.00 180,000.00 0.00 Naught
instrument
Other notes: None
13. Other Non-current Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through profit 13,757,311.00 12,866,432.00
or loss
Total 13,757,311.00 12,866,432.00
Other notes:
None
14. Investment Property
(1) Investment Property Adopted the Cost Measurement Mode
√ Applicable □ Not applicable
Unit: RMB
Item Houses and buildings Land use right Construction in progress Total
I. Original carrying value
1. Beginning balance 1,012,158,845.00 687,434,677.00 0.00 1,699,593,522.00
2.Increased amount of
0.00 0.00 0.00 0.00
the period
135
BOE Technology Group Co., Ltd. Interim Report 2019
(1) Outsourcing 0.00 0.00 0.00 0.00
(2)Transfer from
inventory/fixed
0.00 0.00 0.00 0.00
assets/construction in
progress
(3)Enterprise
0.00 0.00 0.00 0.00
combination increase
3. Decreased amount of
148,919.00 0.00 0.00 148,919.00
the period
(1) Disposal 0.00 0.00 0.00 0.00
(2) Other transfer 148,919.00 0.00 0.00 148,919.00
4. Ending balance 1,012,009,926.00 687,434,677.00 0.00 1,699,444,603.00
II.Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 288,576,169.00 127,149,702.00 0.00 415,725,871.00
2. Increased amount of
15,573,246.00 6,811,349.00 0.00 22,384,595.00
the period
(1)Withdrawal or
15,573,246.00 6,811,349.00 0.00 22,384,595.00
amortization
3. Decreased amount of
140,016.00 0.00 0.00 140,016.00
the period
(1) Disposal 0.00 0.00 0.00 0.00
(2) Other transfer 140,016.00 0.00 0.00 140,016.00
4. Ending balance 304,009,399.00 133,961,051.00 0.00 437,970,450.00
III. Depreciation reserves 0.00 0.00 0.00 0.00
1. Beginning balance 0.00 0.00 0.00 0.00
2.Increased amount of
0.00 0.00 0.00 0.00
the period
(1) Withdrawal 0.00 0.00 0.00 0.00
3. Decreased amount of
0.00 0.00 0.00 0.00
the period
(1) Disposal 0.00 0.00 0.00 0.00
(2) Other transfer 0.00 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00 0.00
IV. Carrying value
136
BOE Technology Group Co., Ltd. Interim Report 2019
1. Ending carrying value 708,000,527.00 553,473,626.00 0.00 1,261,474,153.00
2.Beginning carrying
723,582,676.00 560,284,975.00 0.00 1,283,867,651.00
value
(2) Investment Property Adopted the Fair Value Measurement Mode
□ Applicable √ Not applicable
(3) Investment Property with Certificate of Title Uncompleted
Unit: RMB
Item Carrying value Reason
None
Other notes：None
15. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 128,481,365,480.00 128,157,730,995.00
Disposal of fixed assets 0.00 0.00
Total 128,481,365,480.00 128,157,730,995.00
(1) List of Fixed Assets
Unit: RMB
Item Houses and buildings Equipment Other Total
I. Original carrying value
1. Beginning balance 36,749,694,289.00 152,959,161,443.00 3,253,525,318.00 192,962,381,050.00
2. Increased amount of the
1,302,811,328.00 7,612,615,563.00 643,066,692.00 9,558,493,583.00
period
(1) Purchase 1,434,114.00 334,604,862.00 262,146,699.00 598,185,675.00
(2) Transfer from
1,300,645,690.00 7,272,362,086.00 380,262,302.00 8,953,270,078.00
construction in progress
(3) Enterprise combination
0.00 0.00 0.00 0.00
increase
(4) Differences arising from
translation of foreign 731,524.00 5,648,615.00 657,691.00 7,037,830.00
currency-denominated
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BOE Technology Group Co., Ltd. Interim Report 2019
financial statements
3. Decreased amount of the
0.00 167,721,482.00 9,571,717.00 177,293,199.00
period
(1) Disposal or scrap 0.00 97,741,482.00 9,571,717.00 107,313,199.00
(2) Other decrease 0.00 69,980,000.00 0.00 69,980,000.00
4. Ending balance 38,052,505,617.00 160,404,055,524.00 3,887,020,293.00 202,343,581,434.00
II. Accumulative depreciation
1. Beginning balance 4,287,202,025.00 58,402,866,713.00 1,461,718,975.00 64,151,787,713.00
2. Increased amount of the
848,570,449.00 7,878,017,113.00 386,755,104.00 9,113,342,666.00
period
(1) Withdrawal 848,285,495.00 7,873,384,172.00 386,566,670.00 9,108,236,337.00
(2) Differences arising from
translation of foreign
284,954.00 4,632,941.00 188,434.00 5,106,329.00
currency-denominated
financial statements
3. Decreased amount of the
0.00 48,145,553.00 6,094,090.00 54,239,643.00
period
(1) Disposal or scrap 0.00 48,145,553.00 6,094,090.00 54,239,643.00
4. Ending balance 5,135,772,474.00 66,232,738,273.00 1,842,379,989.00 73,210,890,736.00
III. Depreciation reserves
1. Beginning balance 1,085,094.00 644,638,064.00 7,139,184.00 652,862,342.00
2. Increased amount of the
0.00 0.00 0.00 0.00
period
(1) Withdrawal 0.00 0.00 0.00 0.00
3. Decreased amount of the
0.00 1,398,661.00 138,463.00 1,537,124.00
period
(1) Disposal or scrap 0.00 1,398,661.00 138,463.00 1,537,124.00
4. Ending balance 1,085,094.00 643,239,403.00 7,000,721.00 651,325,218.00
IV. Carrying value
1. Ending carrying value 32,915,648,049.00 93,528,077,848.00 2,037,639,583.00 128,481,365,480.00
2. Beginning carrying value 32,461,407,170.00 93,911,656,666.00 1,784,667,159.00 128,157,730,995.00
(2) Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Provisions for
Item Carrying value Note
value depreciation impairment
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BOE Technology Group Co., Ltd. Interim Report 2019
None
(3) Fixed Assets Leased in by Financing Lease
Unit: RMB
Accumulated Provisions for
Item Original carrying value Carrying value
depreciation impairment
Workshops and buildings 11,291,665.00 4,483,849.00 0.00 6,807,816.00
Machinery equipment 111,358,145.00 7,816,271.00 0.00 103,541,874.00
(4) Fixed Assets Leased out by Operating Lease
Unit: RMB
Item Ending carrying value
Fixed assets leased out by operating lease 18,135,184.00
(5) List of Fixed Assets with Certificate of Title Uncompleted
Unit: RMB
Item Carrying value Reason
Fixed assets with certificate of title
15,840,670,803.00 In process
uncompleted
Other notes:None
(6) Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
None 0.00 0.00
Total 0.00 0.00
Other notes:None
16. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 71,479,480,514.00 56,423,354,887.00
Engineering materials 0.00 0.00
Total 71,479,480,514.00 56,423,354,887.00
139
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(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
The 6th generation AMOLED
30,049,388,048.00 0.00 30,049,388,048.00 23,065,639,272.00 0.00 23,065,639,272.00
project
The 10.5th generation TFT-LCD
16,478,266,210.00 0.00 16,478,266,210.00 5,226,487,285.00 0.00 5,226,487,285.00
project
The 6th generation LTPS /
16,163,399,649.00 0.00 16,163,399,649.00 15,759,483,392.00 0.00 15,759,483,392.00
AMOLED project
Other 8,788,426,607.00 0.00 8,788,426,607.00 12,371,744,938.00 0.00 12,371,744,938.00
Total 71,479,480,514.00 0.00 71,479,480,514.00 56,423,354,887.00 0.00 56,423,354,887.00
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Proporti Capita
on of lizatio
Of which:
accumul n rate
Accumulated Amount of Capita
Other ated of
Beginning Increased Transferred in Ending Job amount of capitalized l
Item Budget decreased investme interes
balance amount fixed assets balance schedule interest interests for the resour
amount nt in ts for
capitalization Reporting ces
construc the
Period
tions to Report
budget ing
140
BOE Technology Group Co., Ltd. Interim Report 2019
Period
The 6th Self-ra
generation ising
LTPS / 44,800,000,000.00 15,759,483,392.00 2,055,945,099.00 1,654,225,615.00 2,186,522.00 16,159,016,354.00 78.65% 78.65% 591,016,437.00 208,042,341.00 2.49% and
AMOLED borro
project wing
Self-ra
The 6th
ising
generation
44,500,000,000.00 23,065,639,272.00 7,124,394,239.00 140,645,463.00 0.00 30,049,388,048.00 69.71% 69.71% 296,625,755.00 240,348,884.00 4.49% and
AMOLED
borro
project
wing
Self-ra
The 10.5th
ising
generation
44,000,000,000.00 5,226,487,285.00 11,251,778,925.00 0.00 0.00 16,478,266,210.00 38.08% 38.08% 1,195,055.00 1,195,055.00 2.64% and
TFT-LCD
borro
project
wing
133,300,000,000.0
Total 44,051,609,949.00 20,432,118,263.00 1,794,871,078.00 2,186,522.00 62,686,670,612.00 -- -- 888,837,247.00 449,586,280.00 0.00% --
0
(3) Provisions for Impairment of Construction in Progress during the Reporting Period
Unit: RMB
Item Withdrawal amount Reason for withdrawal
None
Other notes
None
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(4) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Depreciation reserves Carrying value Carrying amount Depreciation reserves Carrying value
None
Total 0.00 0.00
Other notes: None
17. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent Patent right and proprietary
Item Land use right Patent right Computer software Other Total
technologies technology
I. Original carrying value
1. Beginning balance 2,685,702,901.00 0.00 0.00 3,290,629,308.00 902,371,299.00 1,226,628,617.00 8,105,332,125.00
2. Increased amount of the
822,611,959.00 0.00 0.00 343,111,176.00 37,753,808.00 41,337,600.00 1,244,814,543.00
period
(1) Purchase 122,688,995.00 0.00 0.00 343,111,176.00 12,742,884.00 41,337,600.00 519,880,655.00
(2) Internal R&D 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Business combination
0.00 0.00 0.00 0.00 0.00 0.00 0.00
increase
(4) Transfer from construction
699,922,964.00 0.00 0.00 0.00 25,010,924.00 0.00 724,933,888.00
in progress
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BOE Technology Group Co., Ltd. Interim Report 2019
3. Decreased amount of the
17,664.00 0.00 0.00 0.00 508,547.00 0.00 526,211.00
period
(1) Disposal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(2) Other decrease 17,664.00 0.00 0.00 0.00 508,547.00 0.00 526,211.00
4. Ending balance 3,508,297,196.00 0.00 0.00 3,633,740,484.00 939,616,560.00 1,267,966,217.00 9,349,620,457.00
II. Accumulated amortization
1. Beginning balance 228,473,302.00 0.00 0.00 1,285,634,672.00 535,554,303.00 117,990,454.00 2,167,652,731.00
2. Increased amount of the
37,719,317.00 0.00 0.00 156,689,115.00 52,844,790.00 31,805,695.00 279,058,917.00
period
(1) Withdrawal 37,719,317.00 0.00 0.00 156,689,115.00 52,844,790.00 31,805,695.00 279,058,917.00
3. Decreased amount of the
0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
(1) Disposal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Ending balance 266,192,619.00 0.00 0.00 1,442,323,787.00 588,399,093.00 149,796,149.00 2,446,711,648.00
III. Depreciation reserves
1. Beginning balance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Increased amount of the
0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
(1) Withdrawal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Decreased amount of the
0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
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(1) Disposal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IV. Carrying value
1. Ending carrying value 3,242,104,577.00 0.00 0.00 2,191,416,697.00 351,217,467.00 1,118,170,068.00 6,902,908,809.00
2. Beginning carrying value 2,457,229,599.00 0.00 0.00 2,004,994,636.00 366,816,996.00 1,108,638,163.00 5,937,679,394.00
The proportion of intangible assets generated from the internal R&D of the Company to the balance of intangible assets at the period-end: 0.00%
(2) Land Use Right with Certificate of Title Uncompleted
Unit: RMB
Item Carrying value Reason
None
Other notes: None
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18. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the invested units or events
Beginning balance Increase Decrease Ending balance
generating goodwill
Beijing Yinghe Century Co., Ltd. 42,940,434.00 0.00 0.00 0.00 0.00 42,940,434.00
Gaochuang (Suzhou) Electronics Co.,
8,562,464.00 0.00 0.00 0.00 0.00 8,562,464.00
Ltd.
Beijing BOE Optoelectronics
4,423,876.00 0.00 0.00 0.00 0.00 4,423,876.00
Technology Co., Ltd.
BOE Healthcare Investment &
146,460,790.00 0.00 0.00 0.00 0.00 146,460,790.00
Management Co., Ltd.
SES Imagotag SA Co. Ltd. 706,406,821.00 0.00 0.00 0.00 0.00 706,406,821.00
Total 908,794,385.00 0.00 0.00 0.00 0.00 908,794,385.00
(2) Provisions for Impairment of Goodwill
Unit: RMB
Name of the invested units or
Beginning balance Increase Decrease Ending balance
events generating goodwill
Beijing BOE Optoelectronics
4,423,876.00 0.00 0.00 0.00 0.00 4,423,876.00
Technology Co., Ltd.
Total 4,423,876.00 0.00 0.00 0.00 0.00 4,423,876.00
Information of assets group or the combination of assets group where goodwill is
Determination method of Carrying amount of
Combination
Composition of assets group or the assets group or the assets group or the
Name of assets group of assets group
combination of assets group combination of assets combination of
changed or not
group assets group
Cash inflow generated 852,998,117.00
Beijing Yinghe Century Co., Assets of Beijing Yinghe Century
independent of other assets No
Ltd. Co., Ltd.
or assets group
Cash inflow generated 1,355,364,080.00
Gaochuang (Suzhou) Assets of Gaochuang (Suzhou)
independent of other assets No
Electronics Co., Ltd. Electronics Co., Ltd.
or assets group
Beijing BOE Optoelectronics Assets of Beijing BOE Cash inflow generated 4,691,384,329.00 No
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BOE Technology Group Co., Ltd. Interim Report 2019
Technology Co., Ltd. Optoelectronics Technology Co., independent of other assets
Ltd. or assets group
Cash inflow generated 246,603,069.00
BOE Healthcare Investment & Assets of OASIS International
independent of other assets No
Management Co., Ltd. Hospital
or assets group
Assets of SES Imagotag SA 3,024,707,813.00
Cash inflow generated
Co.Ltd. and Chongqing BOE
SES Imagotag SA Co.Ltd. independent of other assets No
Intelligent Electronic System Co.,
or assets group
Ltd.
Notes of the testing process of goodwill impairment, key parameters(growth rate of predictive period in estimating he present value
of future cash flow, grow rate of stable period, profit rate, discount rate, predictive period, etc.) and the recognition method of
goodwill impairment losses:
The Company estimated the present value of future cash flow as calculating the recoverable amount of Yinghe Century, Suzhou
K-Tronics, Health Investment and SES based on the the most recent five-year financial budgets and a pre-tax discount rate of 8.44%,
6.62%, 6.80% and 23.01% respectively. The cash flows over five-year financial budgets remain stable.
Notes of the recognition method of goodwill impairment losses, refer to V-31.
The influence of testing goodwill: None
Other notes: None
19. Long-term Prepaid Expense
Unit: RMB
Amortization
Other decreased
Item Beginning balance Increased amount amount of the Ending balance
amount
period
Cost of construction and use of
98,072,789.00 0.00 7,685,111.00 0.00 90,387,678.00
public facilities
Cost of operating lease assets
20,351,453.00 0.00 5,926,275.00 0.00 14,425,178.00
improvement
Other 242,216,611.00 110,226,217.00 48,275,285.00 1,495,150.00 302,672,393.00
Total 360,640,853.00 110,226,217.00 61,886,671.00 1,495,150.00 407,485,249.00
Other notes: None
20. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item
Deductible temporary Deferred income tax Deductible temporary Deferred income
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difference assets difference tax assets
Provision for impairment of assets 386,571,126.00 68,342,060.00 391,727,136.00 69,662,802.00
Internal unrealized profit 0.00 0.00 0.00 0.00
Deductable losses 274,481,892.00 82,199,600.00 230,110,593.00 67,447,589.00
Differences of depreciation and
124,591,284.00 22,403,658.00 125,811,735.00 22,699,045.00
amortization
Evaluation increment of investment
in subsidiaries with immovable 139,333,887.00 34,833,472.00 142,110,808.00 35,527,702.00
property
Advances from customers 0.00 0.00 290,000,000.00 43,500,000.00
Other 219,093,132.00 42,448,316.00 219,548,492.00 42,572,983.00
Total 1,144,071,321.00 250,227,106.00 1,399,308,764.00 281,410,121.00
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income
difference liabilities difference tax liabilities
Asset evaluation increment of
business combination not under the 2,687,151,909.00 806,792,354.00 2,777,250,385.00 835,036,150.00
same control
Changes in fair value of other
0.00 0.00 0.00 0.00
creditors’ investment
Changes in fair value of other equity
46,103,720.00 6,915,558.00 34,890,291.00 5,233,544.00
instrument investment
Depreciation of fixed assets 3,851,265,296.00 608,406,638.00 3,248,856,623.00 517,769,740.00
Long-term equity investment 360,863,027.00 54,129,454.00 360,863,027.00 54,129,454.00
Bond interest 71,525,943.00 10,728,891.00 71,525,943.00 10,728,891.00
Other 223,111,302.00 22,708,984.00 241,446,716.00 25,512,265.00
Total 7,240,021,197.00 1,509,681,879.00 6,734,832,985.00 1,448,410,044.00
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
Mutual set-off amount of Ending balance of Mutual set-off amount of Beginning balance of
Item deferred income tax deferred income tax deferred income tax deferred income tax
assets and liabilities at assets or liabilities after assets and liabilities at assets or liabilities after
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BOE Technology Group Co., Ltd. Interim Report 2019
the period-end off-set the period-begin off-set
Deferred income tax
30,718,513.00 219,508,593.00 29,036,499.00 252,373,622.00
assets
Deferred income tax
30,718,513.00 1,478,963,366.00 29,036,499.00 1,419,373,545.00
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary difference 8,719,829,410.00 9,073,884,112.00
Deductible losses 8,747,237,628.00 6,752,930,780.00
Total 17,467,067,038.00 15,826,814,892.00
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Years Ending amount Beginning amount Notes
Y2019 0.00 38,076,038.00 Naught
Y2020 59,149,932.00 59,149,932.00 Naught
Y2021 52,190,671.00 52,190,671.00 Naught
Y2022 531,563,409.00 528,642,251.00 Naught
Y2023 686,639,477.00 669,677,506.00 Naught
Y2024 686,179,935.00 125,649,689.00 Naught
Y2025 512,243,532.00 512,243,532.00 Naught
Y2026 233,283,462.00 233,283,462.00 Naught
Y2027 133,672,001.00 133,672,001.00 Naught
Y2028 4,218,431,457.00 4,296,683,816.00 Naught
Y2029 1,530,221,870.00 0.00 Naught
Other 103,661,882.00 103,661,882.00 Naught
Total 8,747,237,628.00 6,752,930,780.00 --
Other notes:
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.
21. Other Non-current Assets
Whether the Company has executed the new income standards
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BOE Technology Group Co., Ltd. Interim Report 2019
□ Yes √ No
Unit: RMB
Item Ending balance Beginning balance
The VAT collection of imported equipment 3,948,863,762.00 3,187,164,914.00
Prepayment for procurement of fixed
2,180,573,049.00 2,896,176,554.00
assets
Excess VAT paid 2,621,901,055.00 1,488,605,413.00
Other 780,839,037.00 321,055,172.00
Total 9,532,176,903.00 7,893,002,053.00
Other notes: None
22. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledge loans 1,000,000,000.00 2,269,014,875.00
Mortgage loans 0.00 344,480,302.00
Guaranteed loans 0.00 0.00
Credit loans 6,719,908,693.00 2,836,459,708.00
Total 7,719,908,693.00 5,449,954,885.00
Notes of category of short-term borrowings: None
(2) Overdue and Outstanding Short-term Borrowings
The total overdue and outstanding short-term borrowings was RMB0.00, of which, the significant ones were listed as follows:
Unit: RMB
Unit Ending balance Loan interest rate Overdue time Overdue charge rate
None
Other notes: None
23. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
Trade acceptance bill 33,322,011.00 264,534,018.00
Bank’s acceptance bill 1,027,908,880.00 326,575,254.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Total 1,061,230,891.00 591,109,272.00
The total overdue and outstanding notes payable at the period-end were RMBXXX.
24. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Accounts payable of connected parties 32,351,984.00 30,361,810.00
Accounts payable of the third-party 20,531,568,839.00 22,183,594,806.00
Total 20,563,920,823.00 22,213,956,616.00
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
None
Other notes: None
25. Advances from Customers
Whether the Company has executed the new income standards
□ Yes √ No
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Advances from customers of connected parties 10,679.00 1,111.00
Advances from customers of the third-party 1,245,349,097.00 1,218,933,632.00
Total 1,245,359,776.00 1,218,934,743.00
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
None
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(3) Uncompleted but Settled Items Resulting from Construction Contracts at the Period-end
Unit: RMB
Item Amount
Accumulated incurred cost 0.00
Accumulated recognized gross margin 0.00
Less: Estimated losses 0.00
Settlement amount 0.00
Completed but unsettled items resulting from construction
0.00
contracts
Other notes: None
26. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 2,175,807,665.00 5,118,440,766.00 6,016,696,272.00 1,277,552,159.00
II. Post-employment
34,353,845.00 446,990,491.00 455,239,875.00 26,104,461.00
benefit-defined contribution plans
III. Termination benefits 14,769,661.00 1,690,111.00 1,739,846.00 14,719,926.00
IV. Other benefits due within one
0.00 0.00 0.00 0.00
year
Total 2,224,931,171.00 5,567,121,368.00 6,473,675,993.00 1,318,376,546.00
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus, allowance, 1,817,946,511.00 4,169,283,240.00 5,043,580,100.00 943,649,651.00
subsidy
2. Employee welfare 0.00 334,548,858.00 334,548,858.00 0.00
3. Social insurance 31,310,324.00 254,934,674.00 254,281,366.00 31,963,632.00
Of which: Medical insurance
27,150,184.00 229,760,947.00 229,288,705.00 27,622,426.00
premiums
Work-related injury insurance 2,048,914.00 12,891,645.00 12,903,301.00 2,037,258.00
Maternity insurance 2,111,226.00 12,282,082.00 12,089,360.00 2,303,948.00
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4. Housing fund 22,081,660.00 261,387,790.00 263,228,710.00 20,240,740.00
5.Labor union budget and
274,477,650.00 92,457,978.00 96,584,933.00 270,350,695.00
employee education budget
6. Short-term compensated
0.00 0.00 0.00 0.00
absence
7. Short-term profit-sharing plan 0.00 0.00 0.00 0.00
8. Employee bonus and welfare
7,282,591.00 0.00 0.00 7,282,591.00
fund
9. Other short-term salary 22,708,929.00 5,828,226.00 24,472,305.00 4,064,850.00
Total 2,175,807,665.00 5,118,440,766.00 6,016,696,272.00 1,277,552,159.00
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 29,206,273.00 425,733,306.00 430,197,567.00 24,742,012.00
2. Unemployment
964,893.00 15,067,739.00 15,641,053.00 391,579.00
insurance
3. Annuity 4,182,679.00 6,189,446.00 9,401,255.00 970,870.00
Total 34,353,845.00 446,990,491.00 455,239,875.00 26,104,461.00
Other notes: None
27. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 150,005,574.00 112,292,699.00
Consumption tax 0.00 0.00
Corporate income tax 277,951,727.00 387,053,187.00
Personal income tax 26,520,741.00 39,659,862.00
Urban maintenance and construction tax 78,343,132.00 205,222,860.00
Education surcharge and local education
46,494,761.00 148,544,558.00
surcharge
Other 33,687,253.00 77,335,132.00
Total 613,003,188.00 970,108,298.00
Other notes:
None
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BOE Technology Group Co., Ltd. Interim Report 2019
28. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Interest payable 893,836,112.00 1,016,761,921.00
Dividends payable 10,999,707.00 23,648,778.00
Other accounts payable 25,297,379,612.00 21,916,569,129.00
Total 26,202,215,431.00 22,956,979,828.00
(1) Interest Payable
Unit: RMB
Item Ending balance Beginning balance
Long-term loan interest of installment
payment of interest and repay the due 886,685,964.00 762,123,837.00
capital
Enterprise bond interest 0.00 246,821,918.00
Interest paid for short-term borrowings 7,150,148.00 7,816,166.00
Interest of preferred shares/perpetual bonds
0.00 0.00
classified as financial liabilities
Total 893,836,112.00 1,016,761,921.00
Significant overdue and outstanding interests:
Unit: RMB
Entity Overdue amount Overdue reason
None
Other notes:
None
(2) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividends 10,999,707.00 23,648,778.00
Dividends of preferred shares/perpetual
0.00 0.00
bonds classified as equity instruments
Total 10,999,707.00 23,648,778.00
Other notes, including the reason for unpayment of significant dividends payable unpaid for over one year: None
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(3) Other Accounts Payable
1) Other Accounts Payable Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Engineering and equipment 21,545,410,992.00 18,042,357,713.00
The VAT collection of imported equipment 1,462,687,811.00 1,400,000,000.00
Pre-withdrawal water and electricity &
556,309,425.00 606,071,394.00
logistics freight
Margin 520,741,366.00 440,792,988.00
External agency fee 55,659,961.00 53,393,714.00
Other 1,156,570,057.00 1,373,953,320.00
Total 25,297,379,612.00 21,916,569,129.00
2) Significant Other Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
None
Other notes: None
29. Non-current Liabilities Due within One Year
Unit: RMB
Item Ending balance Beginning balance
Long-term loans due within 1 year 7,170,056,176.00 5,388,485,615.00
Bonds payable due within 1 year 0.00 0.00
Long-term accounts payable due within 1
112,936,757.00 209,077,589.00
year
Lease liabilities due within 1 year 0.00 0.00
Total 7,282,992,933.00 5,597,563,204.00
Other notes: None
30. Other Current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
The ending balance amount of other current liabilies is RMB1,143,477,445.00.
The other current liabilities of the Group were warranty provision.
Increase or decrease in short-term bonds payable:
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BOE Technology Group Co., Ltd. Interim Report 2019
Unit: RMB
Issued in Amortization Repayment
Withdrawal of
Bond Par Issuing Issuing Beginning the of premium in the Ending
Duration interest by par
name value date amount balance Current and Reporting balance
value
Period depreciation Period
None
Other notes: None
31. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledge loan 2,208,409,413.00 2,282,358,683.00
Mortgage loan 70,482,455,673.00 65,103,423,213.00
Guaranteed loan 660,000,000.00 660,000,000.00
Credit loan 34,574,088,005.00 26,734,295,968.00
Total 107,924,953,091.00 94,780,077,864.00
Notes of the category of long-term borrowings: None
Other notes, including the interest rate range: None
32. Bonds Payable
(1) Bonds Payable
Unit: RMB
Item Ending balance Beginning balance
Bonds payable 309,933,489.00 10,288,666,233.00
Total 309,933,489.00 10,288,666,233.00
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BOE Technology Group Co., Ltd. Interim Report 2019
(2) Increase/Decrease of Bonds Payable (Excluding Other Financial Instruments Classified as Financial Liabilities such as Preferred Shares and Perpetual
Bonds)
Unit: RMB
Differences
arising from
Issued in Amortization translation of
Withdrawal of
Bond Issuing the of premium Repayment in the foreign
Par value Duration Issuing amount Beginning balance interest by par Ending balance
name date Current and Reporting Period currency-deno
value
Period depreciation minated
financial
statements
RMB 21 March RMB
16BOE01 5 years 9,976,533,425.00 0.00 315,369,589.00 23,466,575.00 10,315,369,589.00 0.00 0.00
10,000,000,000.00 2016 10,000,000,000.00
29
Euro Euro
Euro PP December 7 years 78,470,471.00 0.00 1,343,510.00 0.00 0.00 -307,460.00 79,506,521.00
10,000,000.00 10,000,000.00
2016
Euro 29 March Euro
Euro PP 6 years 233,662,337.00 0.00 4,030,530.00 -6,350,373.00 0.00 -915,526.00 230,426,968.00
30,000,000.00 2017 30,000,000.00
Total -- -- -- 10,313,892,000.00 10,288,666,233.00 0.00 320,743,629.00 17,116,202.00 10,315,369,589.00 -1,222,986.00 309,933,489.00
(3) Explanations on Share Transfer Conditions and Time for Convertible Corporate Bonds
None
(4) Other Financial Instruments Classified as Financial Liabilities
Basic situation of other financial instruments outstanding at the period-end such preferred shares and perpetual bonds
None
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BOE Technology Group Co., Ltd. Interim Report 2019
Changes in financial instruments outstanding at the period-end such preferred shares and perpetual liabilities
Unit: RMB
Outstandi Period-beginning Increase Decrease Period-end
ng
financial Carrying
Amount Carrying value Amount Carrying value Amount Amount Carrying value
instrume value
nts
None
Notes to the basis of classifying other financial instruments as financial liabilities:
None
Other notes
None
33. Long-term Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Long-term accounts payable 1,127,696,942.00 1,416,092,239.00
Specific payables 0.00 0.00
Total 1,127,696,942.00 1,416,092,239.00
(1) Long-term Accounts Payable Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Financing lease 1,127,696,942.00 1,416,092,239.00
Other notes: None
(2) Specific Payable
Unit: RMB
Beginning
Item Increase Decrease Ending balance Reason for formation
balance
None
Total 0.00 0.00 --
Other notes:
None
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34. Provision
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
Item Ending balance Beginning balance Formed reason
External guaranty 0.00 0.00 Naught
Pending litigation 0.00 0.00 Naught
Product quality
0.00 0.00 Naught
assurance
Restructuring
0.00 0.00 Naught
obligations
Onerous contracts to
0.00 0.00 Naught
be executed
In 2009, the Group ceased producing several products and
stopped fulfilling the purchase contract related to production.
Other 16,457,010.00 16,457,010.00 Due to the indemnity incurred accordingly, the Group withdrew
the relevant estimated liabilities according to reasonable
estimation of losses.
Refund payable 0.00 0.00 Naught
Total 16,457,010.00 16,457,010.00 --
Other notes, including significant assumptions and estimation related to significant provisions: None
35. Deferred Income
Unit: RMB
Item Beginning balance Increase Decrease Ending balance Formed reason
Government
2,187,558,533.00 916,809,317.00 589,591,127.00 2,514,776,723.00 Government subsidies
subsidies
Total 2,187,558,533.00 916,809,317.00 589,591,127.00 2,514,776,723.00 --
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BOE Technology Group Co., Ltd. Interim Report 2019
Item involving government subsidies:
Unit: RMB
Amount recorded into Amount offset Related to
Amount of newly Amount recorded into other
Item Beginning balance non-operating income cost in the Other changes Ending balance assets/related
subsidy income in Reporting Period
in the Reporting Period Reporting Period to income
Related to
Related to assets 1,919,750,983.00 182,047,083.00 0.00 169,171,630.00 0.00 50,000.00 1,932,576,436.00
assets
Related to
Related to income 267,807,550.00 734,762,234.00 0.00 420,369,497.00 0.00 0.00 582,200,287.00
income
Total 2,187,558,533.00 916,809,317.00 0.00 589,541,127.00 0.00 50,000.00 2,514,776,723.00
Other notes: None
36. Other Non-current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
Item Ending balance Beginning balance
Convertible creditor's right 4,270,342,467.00 4,175,131,508.00
Equity investment with redemption items 3,731,068,856.00 3,700,737,154.00
The VAT collection of imported equipment 3,948,863,762.00 3,187,164,914.00
Other 97,019,069.00 271,839,746.00
Total 12,047,294,154.00 11,334,873,322.00
Other notes: None
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BOE Technology Group Co., Ltd. Interim Report 2019
37. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning balance Ending balance
New shares issued Bonus shares Bonus issue from profit Other Subtotal
The sum of shares 34,798,398,763.00 0.00 0.00 0.00 0.00 0.00 34,798,398,763.00
Other notes: None
38. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium (premium on stock) 37,546,517,053.00 0.00 0.00 37,546,517,053.00
Other capital reserves 666,583,543.00 7,834,727.00 8,013,322.00 666,404,948.00
Total 38,213,100,596.00 7,834,727.00 8,013,322.00 38,212,922,001.00
Other notes, including notes to increase and decrease during the Reporting Period and the reasons for changes:
None
39. Other Comprehensive Income
Unit: RMB
Reporting Period
Less: Recorded Less: Recorded in Attributable to Attributable
Income before
Item Beginning balance in other other Less: Income owners of the to Ending balance
taxation in the
comprehensive comprehensive tax expense Company as the non-controll
Current Period
income in prior income in prior parent after tax ing interests
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BOE Technology Group Co., Ltd. Interim Report 2019
period and period and after tax
transferred in transferred in
profit or loss in retained earnings
the Current in the Current
Period Period
I. Other comprehensive income that will not be
-221,804,664.00 -21,925,038.00 0.00 0.00 1,682,014.00 -23,607,052.00 0.00 -245,411,716.00
reclassified to profit or loss
Of which: Changes caused by remeasurements
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
on defined benefit pension schemes
Other comprehensive income that will
not be reclassified to profit or loss under equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
method
Changes in fair value of other equity
-221,804,664.00 -21,925,038.00 0.00 0.00 1,682,014.00 -23,607,052.00 0.00 -245,411,716.00
instrument investment
Changes in fair value of enterprise
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
credit risk
II. Other comprehensive income that may be
-109,644,969.00 72,503,557.00 0.00 0.00 0.00 71,738,841.00 764,716.00 -37,906,128.00
reclassified to profit or loss
Of which: Other comprehensive income that
will be reclassified to profit or loss under -58,383,948.00 175,359,777.00 0.00 0.00 0.00 175,359,777.00 0.00 116,975,829.00
equity method
Changes in fair value of other creditors’
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
investment
Amount of financial assets reclassified
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to other comprehensive income
Provision for credit impairment of other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
creditors’ investment
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BOE Technology Group Co., Ltd. Interim Report 2019
Reserves for cash flow hedges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Differences arising from translation of
foreign currency-denominated financial -51,261,021.00 -102,856,220.00 0.00 0.00 0.00 -103,620,936.00 764,716.00 -154,881,957.00
statements
Total of other comprehensive income -331,449,633.00 50,578,519.00 0.00 0.00 1,682,014.00 48,131,789.00 764,716.00 -283,317,844.00
Other notes, including the note to the adjustment of the initial recognition amount of hedged item transferred from the effective gain/loss on cash flow hedges:
None
40. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus reserves 862,954,120.00 0.00 0.00 862,954,120.00
Discretionary surplus reserves 289,671,309.00 0.00 0.00 289,671,309.00
Reserve fund 0.00 0.00 0.00 0.00
Enterprise expansion fund 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00
Total 1,152,625,429.00 0.00 0.00 1,152,625,429.00
Notes to surplus reserves, including the note to increase and decrease in the Reporting Period and the reason for changes:
None
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41. Retained Profits
Unit: RMB
Item Reporting Period Same period of last year
Opening balance of retained profits before
11,817,881,286.00 10,385,659,084.00
adjustments
Total beginning balance of retained profits before
200,341,707.00 0.00
adjustments (increase+, decrease-)
Beginning balance of retained profits after
12,018,222,993.00 10,385,659,084.00
adjustments
Add: Net profit attributable to owners of the
1,668,448,449.00 2,975,206,500.00
Company as the parent
Less: Withdrawal of statutory surplus reserves 0.00 0.00
Withdrawal of discretional surplus reserves 0.00 0.00
Withdrawal of general reserve 0.00 0.00
Dividend of ordinary shares payable 1,043,951,963.00 1,740,789,879.00
Dividend of common stock transferred into share
0.00 0.00
capital
Ending retained profits 12,642,719,479.00 11,620,075,705.00
List of adjustment of beginning retained profits:
(1) RMB200,341,707.00beginning retained profits was affected by retrospective adjustment conducted according to the Accounting
Standards for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained profits was affected by changes in accounting policies.
(3) RMB0.00 beginning retained profits was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained profits was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained profits was affected totally by other adjustments.
42. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 53,422,449,210.00 44,536,416,408.00 42,373,062,968.00 34,334,111,314.00
Other operations 1,616,759,477.00 1,275,916,823.00 1,100,841,998.00 810,470,817.00
Total 55,039,208,687.00 45,812,333,231.00 43,473,904,966.00 35,144,582,131.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Whether the Company has executed the new income standards
□ Yes √ No
Other notes
43. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 104,659,038.00 56,823,610.00
Education Surcharge 63,312,004.00 35,602,048.00
Property tax 169,090,680.00 148,231,522.00
Land use tax 23,948,298.00 15,009,812.00
Stamp duty 54,991,492.00 41,039,849.00
Other 8,851,895.00 5,858,913.00
Total 424,853,407.00 302,565,754.00
Other notes: None
44. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Warranty provisions 586,582,634.00 600,466,512.00
Labor cost 300,120,333.00 234,613,824.00
Logistic transport fees 245,691,178.00 200,968,268.00
Other 232,893,141.00 258,733,990.00
Total 1,365,287,286.00 1,294,782,594.00
Other notes: None
45. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Labor cost 1,030,099,305.00 993,219,826.00
Maintenance cost 520,428,006.00 438,011,265.00
Depreciation and amortization 221,481,455.00 293,524,665.00
Other 425,174,728.00 418,952,794.00
Total 2,197,183,494.00 2,143,708,550.00
Other notes: None
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BOE Technology Group Co., Ltd. Interim Report 2019
46. R&D Expenses
Unit: RMB
Item Reporting Period Same period of last year
Labor cost 1,103,263,819.00 623,860,877.00
Material fee 737,490,376.00 385,327,401.00
Depreciation and amortization 532,776,728.00 296,109,145.00
Other 551,127,313.00 294,897,300.00
Total 2,924,658,236.00 1,600,194,723.00
Other notes:
None
47. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense 1,535,561,809.00 1,427,741,240.00
Interest income -398,822,857.00 -345,988,686.00
Net exchange (income)/ losses -1,145,247.00 55,074,145.00
Other finance costs 31,159,667.00 64,346,956.00
Total 1,166,753,372.00 1,201,173,655.00
Other notes:
None
48. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Government subsidy related to enterprise daily
1,117,952,927.00 1,904,160,159.00
activities
49. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income accounted by
-16,571,961.00 -29,578,579.00
equity method
Investment income from disposal of long-term equity
0.00 9,317,244.00
investment
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BOE Technology Group Co., Ltd. Interim Report 2019
Investment income from holding of trading financial
0.00 0.00
assets
Investment income from disposal of trading financial
23,962,521.00 180,450,009.00
assets
Dividend income from holding of other equity
6,174,811.00 6,735,339.00
instrument investment
Investment income from holding of held-to-maturity
0.00 0.00
investment
Investment income from holding of available-for-dale
0.00 0.00
financial assets
Investment income from disposal of available-for-sale
0.00 0.00
financial assets
Investment income from disposal of held-to-maturity
0.00 0.00
investment
Gains from remeasurement of residual stock rights at
0.00 0.00
fair value after losing control power
Interest income from holding of creditors’ investment 0.00 0.00
Interest income from holding of other creditors’
0.00 0.00
investment
Investment income from disposal of other creditors’
0.00 0.00
investment
Total 13,565,371.00 166,924,013.00
Other notes: None
50. Gains from changes in fair value
Unit: RMB
Sources Reporting Period Same period of last year
Trading financial assets 55,666,155.00 0.00
Of which: Gains from changes in fair value of
0.00 0.00
derivative financial instruments
Trading financial liabilities 0.00 0.00
Investment property measured by fair value 0.00 0.00
Total 55,666,155.00 0.00
Other notes: None
166
BOE Technology Group Co., Ltd. Interim Report 2019
51. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss of other receivables -6,317,588.00 0.00
Impairment loss of creditors’ investment 0.00 0.00
Impairment loss of other creditors’
0.00 0.00
investment
Bad debt loss of long-term receivables 0.00 0.00
Impairment loss of contract assets 0.00 0.00
Bad debt loss of accounts receivables -13,912,857.00 0.00
Total -20,230,445.00 0.00
Other notes: None
52. Asset Impairment Loss
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
Item Reporting Period Same period of last year
I. Bad debt loss 0.00 -358,199.00
II. Inventory falling price loss -598,106,867.00 -457,791,061.00
III. Impairment losses on available-for-sale
0.00 0.00
financial assets
IV. Impairment losses on held-to-maturity
0.00 0.00
investment
V. impairment losses on long-term equity
0.00 0.00
investment
VI. Impairment losses on investment
0.00 0.00
property
VII. Fixed assets impairment losses 0.00 0.00
VIII. Impairment losses on engineering
0.00 0.00
materials
IX. Impairment losses on construction in
0.00 0.00
progress
X. Impairment losses on productive living
0.00 0.00
assets
XI. Impairment losses on oil and gas assets 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
XII. Impairment losses on intangible assets 0.00 0.00
XIII. Goodwill impairment losses 0.00 0.00
XIV. Other 0.00 0.00
Total -598,106,867.00 -458,149,260.00
Other notes: None
53. Asset Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Fixed assets disposal income 373,679.00 -158,511.00
54. Non-operating Income
Unit: RMB
Amount recorded in the current
Item Reporting Period Same period of last year
non-recurring profit or loss
Income from debt restructuring 0.00 0.00 0.00
Income from non-monetary
0.00 0.00 0.00
assets exchange
Donations accepted 0.00 0.00 0.00
Government subsidies 34,368,058.00 61,057,457.00 34,368,058.00
Other 61,975,474.00 35,584,411.00 61,975,474.00
Total 96,343,532.00 96,641,868.00 96,343,532.00
Government subsidies recorded into current profit or loss:
Unit: RMB
Whether
Special
Distri subsidies Related to
Distribution subsid Reporting Same period of
Item bution Nature influence the assets/related
entity y or Period last year
reason current profit to income
not
or loss
Due to engaged in
Municipal special industry that
Other
People’s the state encouraged
non-recurrin
Government, Subsi and supported, Related to
g No No 34,368,058.00 61,057,457.00
NDRC, dy gained subsidy income
government
Finance (obtaining in line
subsidies
Bureau etc. with the law and the
regulations of
168
BOE Technology Group Co., Ltd. Interim Report 2019
national policy)
Other notes: None
55. Non-operating Expense
Unit: RMB
Amount recorded in the current
Item Reporting Period Same period of last year
non-recurring profit or loss
Losses from debt reconstruction 0.00 0.00 0.00
Non-monetary asset exchange
0.00 0.00 0.00
losses
Donation 2,512,720.00 1,383,000.00 2,512,720.00
Other 9,335,620.00 6,270,811.00 9,335,620.00
Total 11,848,340.00 7,653,811.00 11,848,340.00
Other notes: None
56. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 579,625,856.00 600,652,106.00
Deferred income tax expense 94,149,185.00 58,916,454.00
Total 673,775,041.00 659,568,560.00
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 1,801,855,673.00
Current income tax expense accounted at statutory/applicable tax rate 270,278,351.00
Influence of applying different tax rates by subsidiaries -44,290,962.00
Influence of income tax before adjustment 0.00
Influence of non-taxable income -2,034,806.00
Influence of not deductable costs, expenses and losses 1,558,230.00
Influence of deductable loss of unrecognized deferred income tax assets in
-52,847,194.00
prior period
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BOE Technology Group Co., Ltd. Interim Report 2019
Influence of deductable temporary difference or deductable loss of
358,004,462.00
unrecognized deferred income tax assets in the Reporting Period
Other 143,106,960.00
Income tax expense 673,775,041.00
Other notes: None
57. Other Comprehensive Income
Refer to Note VII-57 for details.
58. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
The total cash generated from other operation activities in Group’s consolidated cash flow statement was RMB4,211,734,116.00 in
the Reporting Period, most of which are government subsidies received and the recovery of restricted deposits in financial
institutions.
(2) Cash Used in Other Operating Activities
The total cash used in other investment activities in Group’s consolidated cash flow statement was RMB4,102,320,555.00 in the
Reporting Period, most of which are payment for overheads.
(3) Cash Generated from Other Investing Activities
The total cash generated from other investment activities in Group’s consolidated cash flow statement was RMB108,292,744.00 in
the Reporting Period, most of which are bid price recovered, bid bond and interest income.
(4) Cash Used in Other Investing Activities
The total cash used in other investment activities in Group’s consolidated cash flow statement was RMB56,414,722.00 in the
Reporting Period, most of which are payment for the return on bid bond, performance bond, safety construction bond and customs
bond.
(5) Cash Generated from Other Financing Activities
The total cash generated from other financing activities in Group’s consolidated cash flow statement was RMB133,415,725.00 in the
Reporting Period, most of which are the recovery of restricted deposits in financial institutions.
(6) Cash Used in Other Financing Activities
The total cash used in other financing activities in Group’s consolidated cash flow statement was RMB73,504,151.00 in the
Reporting Period, most of which are payment for the decrease capital of non-controlling interests and commission expenses.
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BOE Technology Group Co., Ltd. Interim Report 2019
59. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash flows generated
-- --
from operating activities
Net profit 1,128,080,632.00 2,829,093,457.00
Add: Provision for impairment of assets 598,106,867.00 458,149,260.00
Depreciation of fixed assets, oil-gas assets, and productive
9,019,062,288.00 6,556,160,630.00
living assets
Depreciation of right-to-use assets 0.00 0.00
Amortization of intangible assets 161,230,388.00 258,521,192.00
Amortization of long-term prepaid expenses 59,700,556.00 49,953,934.00
Losses on disposal of fixed assets, intangible assets and
217,671.00 421,587.00
other long-lived assets (gains: negative)
Losses on scrap of fixed assets (gains: negative) 289,077.00 329,303.00
Losses from variation of fair value (gains: negative) -55,666,155.00 0.00
Finance costs (gains: negative) 1,700,086,916.00 1,330,319,892.00
Investment loss (gains: negative) -13,565,371.00 -166,924,013.00
Decrease in deferred income tax assets (gains: negative) 32,865,030.00 -70,086,012.00
Increase in deferred income tax liabilities
59,589,820.00 723,822,985.00
(“-” means decrease)
Decrease in inventory (gains: negative) -2,520,248,329.00 -2,381,077,971.00
Decrease in accounts receivable generated from operating
1,509,753,826.00 -1,795,552,371.00
activities (gains: negative)
Increase in accounts payable used in operating activities
203,464,853.00 4,172,927,102.00
(decrease: negative)
Others -287,983,720.00 -384,551,801.00
Net cash generated from/used in operating activities 11,594,984,349.00 11,581,507,174.00
2. Significant investing and financing activities without
-- --
involvement of cash receipts and payments
Transfer of debt to capital 0.00 0.00
Convertible corporate bonds due within one year 0.00 0.00
Fixed assets leased in through financing 0.00 0.00
3. Net increase/decrease of cash and cash equivalent: -- --
171
BOE Technology Group Co., Ltd. Interim Report 2019
Ending balance of cash 40,243,333,561.00 43,089,999,591.00
Less: Beginning balance of cash 43,350,696,520.00 47,913,287,583.00
Add: Ending balance of cash equivalents 0.00 0.00
Less: Beginning balance of cash equivalents 0.00 0.00
Net increase in cash and cash equivalents -3,107,362,959.00 -4,823,287,992.00
(2) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 40,243,333,561.00 43,350,696,520.00
Including: Cash on hand 528,768.00 537,805.00
Bank deposit on demand 40,202,349,838.00 43,340,146,382.00
Other monetary funds on demand 40,454,955.00 10,012,333.00
II. Cash equivalents 0.00 0
III. Ending balance of cash and cash equivalents 40,243,333,561.00 43,350,696,520.00
Of which: Cash and cash equivalents with restricted
40,454,955.00 10,012,333.00
use by the Company as the parent and its subsidiaries
Notes: None
60. Notes to Items in Statements of Changes in Owners’ Equity
Notes to names under the item of “Other” in the adjusted ending balance for the Same period of last year and the corresponding
amount:
None
61. Assets with Restricted Ownership or Right to Use
Unit: RMB
Item Ending carrying value Reason for restriction
Monetary capital 6,948,337,136.00 Pledged for guarantee and as cash deposit
49,271,680.00 Discounted transfer with recourse attached,
Notes receivable negotiability with recourse attached and
pledged for issuing notes payable
Inventories 0 Naught
Fixed assets 97,485,999,524.00 Mortgaged for guarantee
Intangible assets 1,297,670,069.00 Mortgaged for guarantee
Investment property 43,707,923.00 Mortgaged for guarantee
172
BOE Technology Group Co., Ltd. Interim Report 2019
Construction in progress 43,789,518,170.00 Mortgaged for guarantee
Total 149,614,504,502.00 --
Notes: None
62. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary fund -- --
Including: USD 3,262,106,101.00 6.8747 22,426,000,810.00
EUR 70,639,172.00 7.8170 552,186,408.00
HKD 39,302,600.00 0.8797 34,574,497.00
Accounts receivable -- --
Including: USD 1,649,186,755.00 6.8747 11,337,664,185.00
EUR 45,904,620.00 7.8170 358,836,415.00
HKD 331.00 0.8797 291.00
Long-term borrowings -- --
Including: USD 4,622,590,000.00 6.8747 31,778,919,473.00
EUR 214,183,749.00 7.8170 1,674,274,362.00
HKD 0.00 0.8797 0.00
Notes: None
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, Recording
Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, Relevant
Reasons Shall Be Disclosed.
□ Applicable √ Not applicable
VIII. Changes of Consolidation Scope
1. Counter Purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companies
173
BOE Technology Group Co., Ltd. Interim Report 2019
whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rights
and interests in accordance with the equity transaction process: None
2. Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□ Yes √ No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes √ No
3. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of subsidiaries, etc.) and relevant
information: None
4. Other
None
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main Holding percentage
Registration Way of
Name operating Nature of business (%)
place gaining
place Directly Indirectly
Beijing BOE
Beijing, Research, development, design and
Optoelectronics Beijing, China 82.49% 17.51% Investment
China manufacture of TFT-LCD.
Technology Co., Ltd.
Chengdu BOE
Business
Optoelectronics R&D, design, production and sales
Chengdu, Chengdu, combination
Technology Co., Ltd. of new display devices and modules 100.00% 0.00%
China China not under the
(“Chengdu and other electronic components.
same control
Optoelectronics”)
Investment, construction, R&D, Business
Hefei BOE
production and sales of the relevant combination
Optoelectronics Hefei, China Hefei, China 100.00% 0.00%
products of thin film transistor LCD not under the
Technology Co., Ltd.
and its auxiliary products. same control
Beijing BOE Display Beijing, Development of TFT-LCD,
Beijing, China 97.17% 2.83% Investment
Technology Co., Ltd. China manufacture and sale of LCD.
174
BOE Technology Group Co., Ltd. Interim Report 2019
(“Beijing BOE Display”)
Investment, construction, R&D, Business
Hefei Xinsheng
production and sales of the relevant combination
Optoelectronics Hefei, China Hefei, China 84.59% 0.03%
products of thin film transistor LCD not under the
Technology Co., Ltd.
and its auxiliary products. same control
Ordos Yuansheng
Manufacture and sales of
Optoelectronics Co., Ltd. Ordos,
Ordos, China AM-OLED products and auxiliary 100.00% 0.00% Investment
(“Yuansheng China
products.
Optoelectronics”)
R&D, production and sales of
Chongqing BOE Business
semi-conducting display devices,
Optoelectronics Chongqing, Chongqing, combination
complete machine and related 100.00% 0.00%
Technology Co., Ltd. China China not under the
products; import & export of goods
(“Chongqing BOE”) same control
and technology consulting.
Fuzhou BOE Investment, construction, R&D, Business
Optoelectronic Fuzhou, production and sales of the relevant combination
Fuzhou, China 81.25% 0.00%
Technology Co., Ltd. China products of thin film transistor LCD not under the
(“Fuzhou BOE”) and its auxiliary products. same control
Manufacture of LCD TV, LCD;
Beijing BOE Video
Beijing, technology development of terminal
Technology Co., Ltd. Beijing, China 100.00% 0.00% Investment
China products and systems such as
(“BOE Video”)
TFT-LCD display and TV.
Beijing BOE Vacuum Beijing, Manufacture and sale of vacuum
Beijing, China 55.00% 0.00% Investment
Electronics Co., Ltd. China electronic products
Beijing BOE Vacuum Beijing, Manufacture and sale of electronic
Beijing, China 100.00% 0.00% Investment
Technology Co., Ltd. China tubes.
Beijing BOE Special
Beijing, Development of display products
Display Technology Co., Beijing, China 100.00% 0.00% Investment
China and sale of electronic products.
Ltd. (“Special Display”)
Management of engineering
Beijing Yinghe Century Beijing, projects; real estate development;
Beijing, China 100.00% 0.00% Investment
Co., Ltd. China public parking lot for motor
vehicles service; office lease.
BOE Optical Science and
R&D, production and sales of LCD,
Technology Co., Ltd. Suzhou,
Suzhou, China back light for display and related 95.17% 0.00% Investment
(“Optical Science and China
components.
Technology”)
BOE Hyundai LCD Development, manufacture and sale
Beijing,
(Beijing) Display Beijing, China of liquid display for mobile 75.00% 0.00% Investment
China
Technology Co., Ltd. termination.
BOE (Hebei) Mobile Langfang, Langfang, Manufacture and sale of mobile flat 100.00% 0.00% Investment
175
BOE Technology Group Co., Ltd. Interim Report 2019
Technology Co., Ltd. China China screen display technical products
(“BOE Hebei”) and related services.
Sale of computer software and
Beijing BOE Multimedia Beijing,
Beijing, China hardware, the numeral regards the 100.00% 0.00% Investment
Technology Co. Ltd. China
audio frequency technology.
(“BOE Multimedia”)
Design, consultancy and service of
solar cell, photovoltaic system,
Beijing BOE Energy
Beijing, wind power system and solar
Technology Co., Ltd. Beijing, China 100.00% 0.00% Investment
China thermal system as well as the
(“BOE Energy”)
assembly units; energy-saving
service.
Beijing BOE Life Technology promotion, property
Beijing,
Technology Co., Ltd. Beijing, China management, and sales of electronic 100.00% 0.00% Investment
China
(“BOE Life Technology”) products.
Beijing Zhongxiangying Technology promotion, property
Beijing,
Technology Co., Ltd. Beijing, China management, and sales of electronic 100.00% 0.00% Investment
China
(“Zhongxiangying”) products.
Erdos Haosheng Energy
Ordos,
Investment Co., Ltd. Ordos, China Energy investment. 20.00% 80.00% Investment
China
(“Haosheng Energy”)
Processing, manufacturing and sales
of precision electronic components,
Beijing BOE Beijing, semi-conductor devices, micro
Beijing, China 80.77% 0.00% Investment
Semi-conductor Co., Ltd. China modules, microelectronic devices
and electronic materials; import &
export of goods
BOE Optoelectronics Design, manufacturing and sales of
Holding Co., Ltd Hong Kong, Virgin Islands, electronic-information industry
100.00% 0.00% Investment
(“Optoelectronics China British related products, investment and
Holding”) financing businesses.
Business
Sales of TV bracket glass rod and
Beijing Asahi Electronic Beijing, combination
Beijing, China CTV low-melting-point solder 100.00% 0.00%
Materials Co., Ltd. China not under the
glass.
same control
Business
BOE Health Investment
Beijing, Investment management and project combination
Management Co., Ltd. Beijing, China 100.00% 0.00%
China investment. not under the
(“Health Investment”)
same control
BeijingMatsushita Color Color TV set, display tube, color Business
Beijing,
CRT Co., Ltd. Beijing, China RPTV projection tube and materials 88.80% 0.00% combination
China
(“Matsushita Color of electronic components; property not under the
176
BOE Technology Group Co., Ltd. Interim Report 2019
CRT”) management and parking services, same control
etc.
Business
Hefei BOE Display Investment, R & D and production
combination
Technology Co., Ltd. Hefei, China Hefei, China of products related to TFT-LCD and 8.33% 0.00%
not under the
(“Hefei Technology”) the supporting facility.
same control
Beijing BOE Technology
Development Co., Ltd. Beijing, Development, transfer, consulting
Beijing, China 100.00% 0.00% Investment
(“Technology China and service of technology.
Development”)
BOE Wisdom IOT
Development, transfer, consulting,
Technology Co., Ltd. Beijing,
Beijing, China service and promotion of 100.00% 0.00% Investment
(“Wisdom IOT China
technology.
Technology”)
Investment, construction, R&D,
Hefei BOE Zhuoyin
production and sales of products
Technology Co., Ltd. Hefei, China Hefei, China 75.00% 0.00% Investment
related to OLED display device and
(“Zhuoyin Technology”)
auxiliary products.
Development, construction,
property management and
supporting service of industrial
plants and supporting facilities;
Beijing BOE Real Estate Beijing, information consulting of real
Beijing, China 70.00% 0.00% Investment
Co., Ltd. China estate; lease of commercial
facilities, commercial attendants
and the supporting service facilities;
motor vehicles public parking
service.
Sales of communication equipment,
hardward & software of computer
and peripheral units, electronic
products, equipment maintenance;
development, transfer, consulting
Beijing BOE Marketing Beijing,
Beijing, China and service providing of 100.00% 0.00% Investment
Co., Ltd. China
technologies; import & export of
goods and technologies, agency of
import & export; manufacturing
consignment of electronic products
and LCD devices.
Kunming BOE Display Development, spread, transfer,
Kunming, Kunming,
Technology Co., Ltd. consulting and service providing of 69.43% 0.00% Investment
China China
(“Kunming BOE”) display technology; service
177
BOE Technology Group Co., Ltd. Interim Report 2019
providing of computer
software/hardware and network
systems; construction, operation and
management of e-commerce
platforms; providing service of
conferences; undertaking of
exhibitions; computer animation
design; production, R&D and sales
of OLED micro display devices and
AR/VR complete machine; storage
services; project investment and
corresponding management; import
& export of goods and technologies;
lease of houses and mechanical
equipments.
Investing, researching,
manufacturing and promoting
TFT-LCD products and accessory
product; import & export of goods
Wuhan BOE and technologies by proprietary Business
Optoelectronics Hubei, trading or agency (excluding goods combination
Hubei, China 23.08% 0.00%
Technology Co., Ltd. China and technologies restricted by state not under the
(“Wuhan BOE”) or import & export prohibited); same control
management consulting and service
of company; lease of houses and
mechanical equipments (excluding
special approval).
Technology development,
technology transfer, technical
consulting, technical services;
technology intermediary services:
data processing and store service
(excluding bank card center in data
processing, PUE over 1.5
Beijing BOE Yiyun Business
in cloud computing data center);
Science &Technology Beijing, combination
Beijing, China information system integration; 95.92% 0.00%
Co., Ltd. (“Yiyun China not under the
basic software services; application
Technology”) same control
software services; software
development; sales of hardware &
software of computer and auxiliary
equipment, electronic products,
hardware & electric material
(excluding electric bicycle),
photographic equipment, household
178
BOE Technology Group Co., Ltd. Interim Report 2019
appliances, arts and crafts, sports
products, daily necessities, clothes,
furniture, ceramics, wood products,
metalware, lanterns, glass products,
paper products, stationery,
cosmetics; import & export of
goods; maintenance of computer
and auxiliary equipment, household
electronic products; lease of
mechanical equipment; conference
service; undertaking display and
exhibition activities; advertisement
designing, producing, agency and
publishing; literary and artistic
creation; organizing exchange
activity of culture and art (excluding
performance); identification of
artware; operation of sports projects
(excluding high-risk sports); ticket
agency; internet information
service; retail of publication;
auction business; road freight
transportation.
Mianyang BOE Production of display panel for Business
Optoelectronic Sichuan, Sichuan, high-end smart phones, folding combination
78.35% 0.00%
Technology Co., Ltd. China China laptops etc. and R&D, production not under the
(“Mianyang BOE”) and sales of modules. same control
Research, development,
manufacture and sales of
semiconductor display devices,
machine and relevant products,
import and export of goods and
technical consulting (excluding
goods and technologies restricted by
Chongqing BOE Display Business
state or import & export prohibited);
Technology Co., Ltd. Chongqing, Chongqing, combination
development, transfer, consulting, 38.46% 0.00%
(“Chongqing BOE China China not under the
service in related fields of display
Display”) same control
devices and module, other
electronic components, and display
devices and electronic products
(excluding electronic publications);
company management consulting;
property management (excluding A
quality property management); lease
179
BOE Technology Group Co., Ltd. Interim Report 2019
of houses and mechanical
equipments.
Development, testing, consulting,
service and transfer of technologies
in X-ray sensors, micro fluidic
Beijing BOE Senor chips, biochemical chips, gene
Beijing,
Technology Co., Ltd. Beijing, China chips, security sensors, microwave 100.00% 0.00% Investment
China
(“Senor Technology”) antenna, biological sensors, internet
of things, and modules, systems and
equipment of other semiconducting
sensors.
Supports color electronic paper,
segment LCD, TFT-LCD display,
covering ESL multi-frequency
protocol, Wi-Fi, BLE and NFC;
multiple communication methods, Business
Nanterre, Nanterre, integrated electronic paper supply combination
SES Imagotag SA Co.Ltd 0.00% 73.93%
France France chain resources and downstream not under the
software around electronic shelf same control
labels Platform, image recognition
and big data analytics resources to
create a complete solution for the
retail industry.
Research, development, 65.77% 0.00%
manufacture and sales of
semiconductor display devices,
machine and relevant products,
import & export of goods and
technical consulting; development,
Fuzhou BOE Display Fuzhou, transfer, consulting, service in
Fuzhou, China Investment
Technology Co., Ltd. China related fields of display devices and
module, other electronic
components, and display devices
and electronic products; company
management consulting; property
management; lease of houses and
mechanical equipments.
Explanations that the shareholding percentage is different from the voting right percentage in subsidiaries:
None
Basis for the control over the investees with half or less voting right and for not controlling the investees with over half voting right:
The Company and the shareholder of Hefei Display, Hefei Core Screen Industrial Investment Fund (Limited Partnership) signed a
concerted action agreement on November 30, 2016, Hefei Core Screen Industrial Investment Fund (Limited Partnership) agreed to
act as a concerted action according to the wishes of the Company, and exercised the voting rights unconditionally and irr evocably in
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BOE Technology Group Co., Ltd. Interim Report 2019
accordance with the opinions of the Company. Therefore, the Company's voting right ratio to Hefei is 71.67%.
The Company and shareholder of Wuhan BOE, Wuhan Airport Economic Development Zone Industrial Development Investment
Group Co., Ltd. signed a concerted action agreement on December 25, 2018. Wuhan Airport Economic Development Zone Industrial
Development Investment Group Co., Ltd. agreed to follow the Company's will to act as a concerted action, unconditionally and
irrevocably exercising voting rights in accordance with the opinions of the company, the voting rights of the Company to Wuhan
BOE is 74.45%.
The Company and shareholders of Chongqing BOE Display, Chongqing Strategic Emerging Industry Equity Investment Fund
Partnership (Limited Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. signed a concerted action
agreement on December 25, 2018. Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited Partnership)
and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. agreed to act as a concerted action 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 displayed by the Company on Chongqing BOE is 100%.
Basis for the control over the significant structured entities included in the scope of combination:
None
Basis for the determining the Company as the agent or the trustor:
None
Other notes: None
(2) Significant Not Wholly-owned Subsidiary
Unit: RMB
Shareholding proportion The profit or loss Declaring dividends
Ending balance of
Name of non-controlling attributable to distributed to
non-controlling interests
interests non-controlling interests non-controlling interests
None
Notes that the shareholding percentage is different from the voting right percentage of non-controlling shareholders in subsidiaries:
None
Other notes: None
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance
Name Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liability
None
(Continued)
Beginning balance
Name Non-current Current Non-current Total
Current assets Current assets Total assets
assets liability liabilities liabilities
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BOE Technology Group Co., Ltd. Interim Report 2019
None
Unit: RMB
Reporting Period Same period of last year
Cash
Cash flows
Total Total flows
Name Operating from Operating
Net profit comprehensive Net profit comprehensive from
revenue operating revenue
income income operating
activities
activities
None
Other notes:
None
(4) Significant Limitation on the Use of Assets and Liquidation of Debts of the Company
None
(5) Financial Support or Other Support Provided for Structured Entities Included in the Scope of
Consolidated Financial Statements
None
2. The Transaction Resulting in Changes in Owner’s Equity of Subsidiary but Still Controlling the
Subsidiary
(1) Explanations on Changes in Owner’s Equity of Subsidiary
The Company increased its investment in Mianyang BOE of RMB150,000,000 in May 2019; non-controlling interests increased the
investment in Mianyang BOE of RMB700,000,000. The Company held 81.35% of shares in Mianyang BOE before the capital
increase and 78.35% of shares after the capital increase.
The Company increased its investment in Wuhan BOE of RMB1,920,000,000.00 in January, March, May, June 2019 successively;
non-controlling interests increased the investment in Wuhan BOE of RMB3,290,000,000.00. The Company held 14.58% of shares in
Wuhan BOE before the capital increase and 23.08% of shares after the capital increase.
The Company increased its investment in Kunming Display of RMB467,200,000.00 in January, February, April, May 2019
successively; non-controlling interests increased the investment in Kunming Display of RMB48,200,000.00. The Company held
45.11% of shares in Kunming Display before the capital increase and 69.43% of shares after the capital increase.
(2) The Effects of the Transaction on Non-controlling Interests and Equity Attributable to Owners of the
Company as the Parent
Unit: RMB
Item Mianyang BOE Kunming BOE Wuhan BOE
Purchase cost/disposal consideration 150,000,000.00 467,200,000.00 1,920,000,000.00
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BOE Technology Group Co., Ltd. Interim Report 2019
--Cash 150,000,000.00 467,200,000.00 1,920,000,000.00
--Fair value of non-cash assets 0.00 0.00 0.00
Total of purchase cost /disposal consideration 150,000,000.00 467,200,000.00 1,920,000,000.00
Less: Subsidiary net assets proportion
calculated by share proportion 156,929,235.00 462,311,177.00 1,917,780,993.00
obtained/disposal
Difference -6,929,235.00 4,888,823.00 2,219,007.00
Of which: Adjustment of capital reserves 6,929,235.00 -4,888,823.00 -2,219,007.00
Surplus reserves adjustments 0.00 0.00 0.00
Retained profits adjustments 0.00 0.00 0.00
Other notes: None
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Shareholding proportion Accounting
treatment to joint
Main business Nature of
Name Registration place ventures or
place business Directly Indirectly
associated
enterprise
None
Notes that the shareholding percentage is different from the voting right percentage in joint ventures or associated enterprises:
None
Basis that having significant influence with voting right less than 20% or that not having significant influence with voting right more
than 20%:
None
(2) Summary Financial Information of Insignificant Joint Ventures and Associated Enterprises
Unit: RMB
Beginning balance/Same period of last
Item Ending balance/Reporting Period
year
Joint ventures: -- --
Total carrying value of investment 0.00 0.00
Total of the following items calculated by
-- --
shareholding proportion
--Net profit 0.00 -3,900,535.00
--Other comprehensive income 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
--Total comprehensive income 0.00 -3,900,535.00
Associated enterprises: -- --
Total carrying value of investment 2,625,460,926.00 2,389,166,886.00
Total of the following items calculated by
-- --
shareholding proportion
--Net profit -16,571,961.00 -25,678,044.00
--Other comprehensive income 175,947,500.00 4,151,942.00
--Total comprehensive income 159,375,539.00 -21,526,102.00
Other notes
None
(3) Notes to the Significant Limitation on Capital Transfer to the Company by Joint Ventures or Associated
Enterprises
None
(4) Unrecognized Commitments Related to Investment in Joint Ventures
None
(5) Contingent Liabilities Related to Investment in Joint Ventures or Associated Enterprises
None
4. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
None
5. Other
None
X. The Risk Related to Financial Instruments
Risks related to financial instruments in daily activities for the Group include:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign exchange risk
- Other price risksThe risk exposure and causes, changes in this year, risk management objectives, policies and procedures, methods
of measuring risks and changes in this year will be discussed below.Risk management objective of the Company is to balance the
risks and profits, minimize the negative effects to business performance and maximize the profits for stockholders and other equity
investors. On the basis of risk management objectives, basic strategies of risk management are to determine and analyze all p ossible
184
BOE Technology Group Co., Ltd. Interim Report 2019
risks, establish appropriate risk baseline, control and manage risks and monitor all risks timely and reliably within defined scope. The
Group will regularly review the risk management policies and internal control system to adapt to the market and changes of operating
activities. The Internal Audit Department will regularly review or randomly inspect whether implementation of internal control
system satisfies risk management policies.
(1) Credit Risk
Credit risk refers to the risk of financial losses to one party of a financial instrument due to the failure of obligation performance by
the other party. The credit risk of the Group is mainly from accounts receivable. And the management will continue to monitor the
exposure of these credit risks.
The monetary capital of the Group except for cash is mainly deposited in financial institutions with good credit. The management
believes it has no material credit risks and will not cause losses to the Group due to the counterpart’s default.
As for accounts receivable, the Group has worked out the credit policies based on actual situation to evaluate customers’ credit so as
to decide the limit of sales on credit and credit period. The credit evaluation is conducted on the basis of a customer’s financial
condition, external rating and historical transaction records. The accounts receivable will expire within 15 to 120 days since the issue
date of account bills. The debtors of overdue accounts receivable will be required to pay off all outstanding balance before obtaining
further credit lines. In general, the Group will not ask customers to offer any collateral.
The credit risk of the Group is mainly influenced by characteristics of customers, not the industries, countries or regions they are in.
Thus, the concentration of material credit risks is mainly generated from material accounts receivable of the Group from individual
customers. On the balance sheet date, the accounts receivable of the Group and the Company from top five customers respectively
account for 51.99% and 73.07% (in 2018: 40% and 0.06%) of total accounts receivable of the Group and the Company. What’s more,
the accounts receivable of the Group not overdue and without impairment are mainly from customers without debt records recently.
The maximum credit risk exposure born by the Group is the carrying amount of each financial asset in the balance sheet. As stated in
Note XII, the Group has no external guarantee that will bring credit risks to the Group as of 30 June 2019.
(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). 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 real isable
marketable securities and adequate committed lines of funding from major financial institutions to meet its liquidity requirements in
the short and longer term.
(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 of the fixed and floating rate interest-bearing
instruments based on the current market conditions and performs regular reviews and monitoring to achieve an appropriate mix of
fixed and floating rate exposure. The Group does not enter into financial derivatives to hedge interest rate risk.
As at 30 June 2019, it is estimated that a general increase/decrease of 100 basis points in interest rates of variable rate i nstrument,
with all other variables held constant, would decrease/increase the Group’s net profit and equity by RMB81.15 million （2018:
RMB104.38 million).
185
BOE Technology Group Co., Ltd. Interim Report 2019
In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative instruments held by the Group at the
balance sheet date, the impact on the net profit and equity is estimated as an annualised impact on interest expense or income of such
a change in interest rates. The analysis is performed on the same basis for the previous year.
(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 le vel by
buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
(a) The Group’s exposure as at 30 June 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 2,140,890,803 (2018 net liabilities
exposure: USD 2,098,686,634), translated into RMB 14,717,982,001 (2018: RMB 14,403,706,106), 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 30
June would have increased / decreased both the Group’s equity and net profit by the amount RMB 460,553,954 (2018: RMB
506,911,356).
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 Include Equity Price Risk, Commodity Price Risk, etc.
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending fair value
Item Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
(I) Trading financial assets 0.00 0.00 0.00 0.00
1. Financial assets at fair
value through profit or 0.00 0.00 0.00 0.00
loss
(1) Debt instruments
0.00 0.00 3,932,990,942.00 3,932,990,942.00
investment
(2) Equity instruments
0.00 0.00 0.00 0.00
investment
(3) Derivative financial 0.00 0.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
assets
2. Financial assets
assigned measured by fair
value and the changes be 0.00 0.00 13,757,311.00 13,757,311.00
included in the current
gains and losses
(1) Debt instruments
0.00 0.00 13,757,311.00 13,757,311.00
investment
(2) Equity instruments
0.00 0.00 0.00 0.00
investment
(II) Other creditors’
0.00 0.00 0.00 0.00
investment
(III) Other equity
356,721,284.00 0.00 0.00 356,721,284.00
instrument investment
(IV) Investment property 0.00 0.00 0.00 0.00
1. Lease the land use right 0.00 0.00 0.00 0.00
2. Rental buildings 0.00 0.00 0.00 0.00
3. Land use right held and
prepared to transfer after 0.00 0.00 0.00 0.00
appreciation
(V)Biological assets 0.00 0.00 0.00 0.00
1.Consumable biological
0.00 0.00 0.00 0.00
assets
2. Productive living assets 0.00 0.00 0.00 0.00
Total assets of consistent
356,721,284.00 0.00 0.00 356,721,284.00
fair value measurement
(VI) Trading financial
0.00 0.00 0.00 0.00
liabilities
Of which: Tradable bond
0.00 0.00 0.00 0.00
issued
Derivative financial
0.00 0.00 0.00 0.00
liabilities
Other 0.00 0.00 0.00 0.00
(VII) Refer as financial
liabilities measured by fair
value and the changes 0.00 0.00 71,000,000.00 71,000,000.00
included in the current
gains and losses
Total liabilities of 0.00 0.00 71,000,000.00 71,000,000.00
187
BOE Technology Group Co., Ltd. Interim Report 2019
consistent fair value
measurement
II. Inconsistent fair value
-- -- -- --
measurement
(I) Held-for-sale assets 0.00 0.00 0.00 0.00
Total assets inconsistently
0.00 0.00 0.00 0.00
measured at fair value
Total liabilities
inconsistent measured at 0.00 0.00 0.00 0.00
fair value
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
1
The unadjusted offer in active market obtaining same assets or liabilities on calculation date
3. Consistent and Inconsistent Fair value Measurement Items at Level 2, Valuation Techniques Adopted,
the Qualitative and Quantitative Information of Important Parameters
Observable input value of related assets or liabilities except level 1 input value
4. Consistent and Inconsistent Fair Value Measurement Items at Level 3, Valuation Techniques Adopted,
the Qualitative and Quantitative Information of Important Parameters
The unobservable input value of related assets or liabilities
5. Consistent Fair Value Measurement Items at Level 3, Adjustment between the Beginning Carrying
Value and the Ending Carrying Value and Sensitivity Analysis on Unobservable Parameters
None
6. Explain the Reason for Conversion and the Policy Governing when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Level
None
7. Changes in Valuation Techniques in the Reporting Period and Reasons for the Changes
None
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
None
188
BOE Technology Group Co., Ltd. Interim Report 2019
9. Other
None
XII. Connected Party and Connected Transaction
1. Information on the Company as the Parent
Proportion of Proportion of
share held by voting rights
Registration the Company as owned by the
Name Nature of business Registered capital
place the parent Company as the
against the parent against the
Company (%) Company (%)
No.12 Jiuxian Operation and
Beijing
Bridge, management of
Electronics RMB2,418,350,000.00 0.79% 11.32%
Zhaoyang state-owned assets within
Holding Co., Ltd.
District, Beijing authorization
Notes to the Company as the parent:
None
The final controller of the Company is Beijing Electronics Holding Co., Ltd.
Other notes: None
2. Subsidiaries of the Company
Refer to Note IX.-1 for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
For information of significant joint ventures or associated enterprises of the Company, please refer to Note IX-3.
List of other joint ventures and associated enterprises that made connected transactions with the Company generating balance during
or before the Reporting Period:
Name Relationship with the Company
Beijing Nittan Electronic Co., Ltd. Associated enterprise of the Group and the Company
TPV Display Technology (China) Limited Associated enterprise of the Group and the Company
Beijing Rishen Electronic Precision Parts Co., Ltd. Associated enterprise of the Group and the Company
Other notes:
None
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4. Information on Other Connected Parties
Name Relationship with the Company
Beijing BOE Investment Development Co., Ltd. Controlled by the same ultimate holding company
Beijing Sevenstar Huadian Technology Group Co., Ltd. Controlled by the same ultimate holding company
Beijing BOE Investment Development Co., Ltd. Controlled by the same ultimate holding company
Beijing Dongdian Industrial Development Co., Ltd. Controlled by the same ultimate holding company
Beijing Electronics Holding & SK Technology Co., Ltd. Controlled by the same ultimate holding company
Beijing Yansong Trading Co., Ltd. Controlled by the same ultimate holding company
Beijing Zhengdong Electronic Power Group Co., Ltd. Controlled by the same ultimate holding company
Beijing North Microelectronics Co., Ltd. Controlled by the same ultimate holding company
Beijing Zhengdong Electronic Power Group Co., Ltd. Controlled by the same ultimate holding company
Beijing Zhaowei Technology Development Co., Ltd. Controlled by the same ultimate holding company
Beijing Zhaowei Intelligent Equipment Co., Ltd. Controlled by the same ultimate holding company
Xin Xiang Microelectronic (Hong Kong) Co., Ltd. Controlled by the same ultimate holding company
Beijing Ether Electronics Group Co., Ltd. Controlled by the same ultimate holding company
BAIC BJEV Other connected party
China United Network Communications Limited Other connected party
Other notes
None
5. List of Connected Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
Whether
The approval trade Same period of last
Connected party Content Reporting Period exceed trade
credit year
credit or not
Beijing Electronics Holding
Co., Ltd and its affiliated Purchase of goods 299,540,011.00 600,000,000.00 No 226,147,968.00
companies
Beijing Electronics Holding
Accepting labor
Co., Ltd and its affiliated 1,453,989.00 8,000,000.00 No 1,887,192.00
service
companies
Other connected party Purchase of goods 0.00 130,000,000.00 No 7,719,867.00
Other connected party Accepting labor 1,292,600.00 5,000,000.00 No 0.00
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service
Information of sales of goods and provision of labor service
Unit: RMB
Same period of last
Connected party Content Reporting Period
year
Beijing Electronics Holding Co., Ltd and its affiliated
Sales of goods 265,677.00 403,808.00
companies
Beijing Electronics Holding Co., Ltd and its affiliated
Providing labor service 383,744.00 45,745.00
companies
Other connected party Sales of goods 315,673.00 3,239,373.00
Other connected party Providing labor service 32,781.00 6,253,228.00
Notes: None
(2) Connected Trusteeship/Contract and Entrust/Contractee
Lists of connected trusteeship/contract:
Unit: RMB
Name of the Name of the Income
entruster/contract entrustee/ Type Start date Due date Pricing basis recognized in the
ee contractor Reporting Period
None
Notes: None
Lists of entrust/contractee
Unit: RMB
Name of the Name of the Income
entruster/contract entrustee/ Type Start date Due date Pricing basis recognized in the
ee contractor Reporting Period
None
Notes:
None
(3) Information on Connected Lease
The Company served as the lessor:
Unit: RMB
The lease income
The lease income confirmed
Name of lessee Category of leased assets confirmed in the same
in the Reporting Period
period of last year
Beijing Electronics Holding Co., Ltd and its Investment property 21,164.00 757,937.00
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affiliated companies
The Company served as the lessee:
Unit: RMB
The lease income
The lease income confirmed
Name of lessor Category of leased assets confirmed in the Same
in the Reporting Period
period of last year
Beijing Electronics Holding Co., Ltd and its
Fixed assets 1,445,383.00 1,218,031.00
affiliated companies
Notes to connected lease: None
(4) Connected Guarantee
The Company served as the guarantee
Unit: RMB
Whether completely
Secured party Amount Start date Due date
performed
None
The Company served as the secured party
Unit: RMB
Whether completely
Guarantee Amount Start date Due date
performed
None
Notes to connected guarantee: None
(5) Interbank Borrowing and Lending of Capital by Connected Party
Unit: RMB
Connected party Amount Start date Due date Note
Borrowings
None
Lending
None
(6) Assets Transfer and Debt Restructuring of Connected Party
Unit: RMB
Connected party Content Reporting Period Same period of last year
None
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(7) Remuneration for Key Management Personnel
Unit: RMB
Item Reporting Period Same period of last year
Remuneration for key management
26,153,302.00 50,069,577.00
personnel
(8) Other Connected Transactions
None
6. Accounts Receivable and Payable of Connected Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Item Connected party Bad debt Bad debt
Carrying amount Carrying amount
provision provision
Beijing Electronics Holding
Accounts receivable Co., Ltd and its affiliated 232,242.00 0.00 18,982.00 0.00
companies
Beijing Electronics Holding
Prepayment Co., Ltd and its affiliated 1,142,210.00 0.00 2,814,000.00 0.00
companies
Accounts receivable Other connected parties 205,957.00 0.00 33,264.00 0.00
Beijing Electronics Holding
Other accounts
Co., Ltd and its affiliated 12,148.00 0.00 12,148.00 0.00
receivable
companies
Prepayment Other connected parties 1,054,527.00 0.00 0.00 0.00
(2) Accounts Payable
Unit: RMB
Item Connected party Ending carrying balance Beginning carrying balance
Beijing Electronics Holding Co., Ltd and its
Accounts payable 29,895,259.00 25,736,668.00
affiliated companies
Other accounts Beijing Electronics Holding Co., Ltd and its
237,097,543.00 294,453,309.00
payable affiliated companies
Advances from Beijing Electronics Holding Co., Ltd and its 10,679.00 1,111.00
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customers affiliated companies
Accounts payable Other connected parties 2,456,725.00 4,625,142.00
Other accounts
Other connected parties 91,479.00 116,479.00
payable
7. Commitments of Connected Party
Signed commitments in relation to related parties on the balance sheet date that didn’t need to be presented on the balance sheet:
Item 2019 2018
Equipment purchase commitment 327,370,768.00 370,768,209.00
8. Other
None
XIII. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
(1) Capital Commitments
The Group 30 June 2019 31 December 2018
Signed but not performed 71,517,184,458.00 61,515,573,632.00
Approved but contract unsigned 94,709,082,722.00 84,789,129,465.00
Total 166,226,267,180.00 146,304,703,097.00
The Company 30 June 2019 31 December 2018
Signed but not performed 44,326,641,398.00 39,666,849,756.00
Approved but contract unsigned 0.00 0.00
Total 44,326,641,398.00 39,666,849,756.00
(2) Operating Commitments
The Group 30 June 2019 31 December 2018
Within 1 year (including 1 year) 52,839,746.00 53,187,055.00
Over 1 year and within 2 years (including 2 years) 24,811,029.00 30,220,405.00
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Over 2 years and within 3 years (including 3 years) 23,708,000.00 21,345,206.00
Over 3 years 60,190,211.00 82,499,050.00
Total 161,548,986.00 187,251,716.00
2. Contingency
(1) Significant Contingency on the Balance Sheet Date
None
(2) Explanations Should Also Be Given when there Was No Significant Contingency to Disclose
There was no significant contingency to disclose.
3. Other
None
XIV. Other Significant Events
1. Pension Plans
In order to ensure and improve the living standards of BOE retirees and put in place a multi-layer old-age security system and a
long-term talent retaining mechanism, as per China’s relevant policies and regulations, BOE has established the annuity programme
since January 2014. The annuity fund consists of the contributions by the Company (paid as per the government’s regulations
according to the applicable taxation policy), the contributions by employees (deducted by the Company from their salaries according
to the applicable taxation policy) and the returns on investment by the fund (operated by the relevant government department
according to the investment principle of high security and moderate income). Currently, the Company pays 5% of an employee’s
annuity contribution to the fund. 2,627 employees have so far participated in the annuity programme with an accumulative net asset
value of RMB177.71 million and an average annualized rate of return of 4.49%.
2. Segment Information
(1) Recognition Basis and Accounting Policies of Reportable Segment
(1) Segment Reporting Considerations
The Group principal decision-makers review the operation performance and distribute resources in accordance to the business
segments below.
(a) Display and Sensor Devices — This business mainly leading the innovation and development of TFT-LCD technologies, has been
committed to speeding up the development of AMOLED, flexible display, VR/AR and other new display devices and sensors,
promoting the development of gene sequencing, molecular antenna, multi-sign sensor, photoelectric sensing, fingerprint
identification and security, and upgrading information exchange ports and related sensors on the basis of the display, so as to offer
better products and services in smart phones, tablet PCs, laptops, displays, televisions, industrial control, health care, VR/AR and
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BOE Technology Group Co., Ltd. Interim Report 2019
other applications.
(b) Smart systems — This business mainly expanding its business in digital art exhibition, supermarket retailing services, financial
retailing services, smart equipment design and manufacturing services, photovoltaic facilities construction and operation &
maintenance, vehicle-based display and Internet of Vehicles (IoV). It provides smart solutions for smart retailing, smart manufacturing
services, smart energy and smart Internet of Vehicles.
(c) Healthcare service — This business mainly accumulate the display, sensor, artificial intelligence and large data four years core
technology and medicine, life science combination, the integration of medical innovation, build, including artificial intelligence, life
data detection, cell engineering, medical technology innovation transformation And other innovative technology platform, focusing
on the development of mobile health, digital hospitals, regenerative medicine and health park four business, for human health to
provide intelligent port products and professional services.
(d) 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 port devices business, the smart IoT business,
and healthcare service businesses and other businesses. Because the business segments manufacture and distribute 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
(2) Accounting policy for the measurements of segment profit or loss, assets and liabilities
For the purposes of assessing segment performance and allocating resources between segments, the Group’s management regularly
reviews the assets, liabilities, revenue, expenses and financial performance, attributable to each reportable segment on the following
bases:
Segment assets include all tangible, intangible, other non-current and current assets, such as accounts receivable, with the exception
of deferred tax assets and other unallocated corporate assets. Segment liabilities include payables, bank borrowings and othe r
long-term liabilities attributable to the individual segments, but exclude deferred tax liabilities and other unallocated corporate
liabilities.
Financial performance is operating income (including operating income from external customers and inter-segment operating income)
after deducting expenses, depreciation, amortization, impairment losses, gains or losses from changes in fair value, investment gain,
non-operating income and expenses and income tax expenses attributable to the individual segments. The transfer pricing of
inter-segment sales are determined with reference to prices charged to external parties for similar orders.
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(2) The Financial Information of Reportable Segment
Unit: RMB
Display and Sensor
Item Smart systems Healthcare service Others Offset among segments Total
Devices
Operation 50,896,645,297.00 7,521,943,172.00 663,753,643.00 3,567,353,945.00 -7,610,487,370.00 55,039,208,687.00
revenue
Cost of sales 42,975,736,712.00 6,831,554,480.00 322,726,810.00 4,206,107.00 -4,321,890,878.00 45,812,333,231.00
(3) If there Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each Reportable Segment Could not Be Reported, Relevant
Reasons Shall Be Clearly Stated
None
(4)Other Notes
None
3. Other Significant Transactions with Influence on Investors’ Decision-making
None
4. Other
None
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XV. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category
Withdrawal Carrying value Withdrawal Carrying value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Of which:
Accounts receivable
withdrawn bad debt 909,239,939.00 100.00% 5,799,220.00 1.00% 903,440,719.00 39,842,489.00 100.00% 2,889,866.00 7.00% 36,952,623.00
provision by group
Of which:
Total 909,239,939.00 100.00% 5,799,220.00 1.00% 903,440,719.00 39,842,489.00 100.00% 2,889,866.00 7.00% 36,952,623.00
Bad Debt Provision Withdrawn by Single Item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
None
Total -- --
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BOE Technology Group Co., Ltd. Interim Report 2019
Bad Debt Provision Withdrawn by Group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Portfolio of credit risk 909,239,939.00 5,799,220.00 1.00%
Total 909,239,939.00 5,799,220.00 --
Notes of the basis of recognizing the group:
None
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of notes receivable.
√Applicable □ Not applicable
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected credit loss of Expected loss in the duration Total
duration (credit
the next 12 months (credit impairment occurred)
impairment not occurred)
Balance of 1 January 2019 0.00 0.00 2,889,866.00 2,889,866.00
Balance of 1 January 2019 —— —— —— ——
in the current period
--Transfer to Second stage 0.00 0.00 0.00 0.00
-- Transfer to Third stage 0.00 0.00 0.00 0.00
-- Reverse to Second stage 0.00 0.00 0.00 0.00
-- Reverse to Third stage 0.00 0.00 0.00 0.00
Withdrawal of the current 0.00 774.00 2,908,580.00 2,909,354.00
period
Reversal of the current 0.00 0.00 0.00 0.00
period
Write-offs of the current 0.00 0.00 0.00 0.00
period
Verification of the current 0.00 0.00 0.00 0.00
period
Other changes 0.00 0.00 0.00 0.00
Balance of 30 June 2019 0.00 774.00 5,798,446.00 5,799,220.00
Disclosure by aging
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BOE Technology Group Co., Ltd. Interim Report 2019
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 808,566,868.00
1 to 2 years 83,234,894.00
2 to 3 years 0.00
Over 3 years 17,438,177.00
Total 909,239,939.00
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB2,909,354.00; there is no reversed or
collected amount during the Reporting Period.
(3) Accounts Receivable with Actual Verification during the Reporting Period
None
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
The total amount of top 5 accounts receivable in ending balance was RMB 664,369,915.00, accounting 73.07% in ending balance of
accounts receivable without withdrawing bad debt by evaluation.
(5) Accounts Receivable Derecognized Due to the Transfer of Financial Assets
None
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continued Involvement of
Accounts Receivable
None
2. Other Accounts Receivable
Unit: RMB
Category Ending balance Beginning balance
Interest receivable 9,216,577.00 9,659,279.00
Dividend receivable 10,874,738.00 14,115,915.00
Other accounts receivable 3,130,653,415.00 1,992,044,350.00
Total 3,150,744,730.00 2,015,819,544.00
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BOE Technology Group Co., Ltd. Interim Report 2019
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Category Ending balance Beginning balance
Fixed time deposit 9,216,577.00 9,659,279.00
Entrusted loan 0.00 0.00
Bond investment 0.00 0.00
Total 9,216,577.00 9,659,279.00
2) Significant Overdue Interest
Whether occurred
Borrower Ending balance Overdue time Reason impairment and its
judgment basis
None
Other notes:
None
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
Item(or investee) Ending balance Beginning balance
Beijing BOE Vacuum Electronics Co., Ltd. 2,200,000.00 2,200,000.00
Beijing Yinghe Century Co., Ltd. 8,204,147.00 8,204,147.00
Beijing Electronic City Co., Ltd. 0.00 3,711,768.00
TPV Technology Co., Ltd. 470,591.00 0.00
Total 10,874,738.00 14,115,915.00
2) Significant Dividend Receivable Aging Over One Year
Unit: RMB
Whether occurred
Item(or investee) Ending balance Aging Unrecovered reason impairment and its
judgment basis
None
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
Other notes:
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None
(3) Other Accounts Receivable
1) Other Account Receivable Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Intercourse funds 2,832,468,418.00 305,938,861.00
Rent receivable 14,979,329.00 227,919,843.00
Royalty receivable 183,977,983.00 1,441,130,049.00
Other 103,371,649.00 17,064,513.00
Total 3,134,797,379.00 1,992,053,266.00
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the Expected loss in the
Bad debt provision Expected credit loss of Total
duration (credit duration (credit impairment
the next 12 months
impairment not occurred) occurred)
Balance of 1 January 2019 0.00 8,916.00 0.00 8,916.00
Balance of 1 January 2019 in
—— —— —— ——
the current period
--Transfer to Second stage 0.00 0.00 0.00 0.00
-- Transfer to Third stage 0.00 0.00 0.00 0.00
-- Reverse to Second stage 0.00 0.00 0.00 0.00
-- Reverse to Third stage 0.00 0.00 0.00 0.00
Withdrawal of the current
0.00 30,905.00 4,104,234.00 4,135,139.00
period
Reversal of the current period 0.00 0.00 91.00 91.00
Write-offs of the current period 0.00 0.00 0.00 0.00
Verification of the current
0.00 0.00 0.00 0.00
period
Other changes 0.00 0.00 0.00 0.00
Balance of 30 June 2019 0.00 39,730.00 4,104,234.00 4,143,964.00
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable √ Not applicable
Disclosure by aging
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BOE Technology Group Co., Ltd. Interim Report 2019
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year） 2,805,740,314.00
1 to 2 years 83,099,394.00
2 to 3 years 18,968,330.00
Over 3 years 226,989,341.00
Total 3,134,797,379.00
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The bad debt provision withdrawn in the Current Period was RMB4,135,139.00 and the bad debt provision recovered or reversed in
the Reporting Period was RMB91.00.
4) Other Accounts Receivable with Actual Verification during the Reporting Period
None
5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
Proportion to total Ending
Name of the ending balance of balance of
Nature Ending balance Aging
entity other accounts bad debt
receivable provision
Customer 1 Intercourse funds 1,057,322,258.00 Within 1 year, over 5 years 33.73% 0.00
Within 1 year,1 to 2 years, 2
Customer 2 Intercourse funds 792,916,546.00 25.29% 0.00
to 3 years
Customer 3 Intercourse funds 401,301,353.00 Within 1 year 12.80% 0.00
Customer 4 Intercourse funds 391,405,909.00 Within 1 year 12.49% 0.00
Customer 5 Intercourse funds 189,779,388.00 Within 1 year, over 5 years 6.05% 0.00
Total -- 2,832,725,454.00 -- 90.36% 0.00
6) Accounts Receivable Involving Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Ending aging
subsidies time, amount and basis
None
None
7) Other Accounts Receivable Derecognized Due to the Transfer of Financial Assets
None
8) Amount of Assets and Liabilities Due to the Transfer of Other Account Receivable and Continued Involvement
None
Other notes:
None
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3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Depreciation reserve Carrying value Carrying amount Depreciation reserve Carrying value
Investment to subsidiaries 145,727,705,023.00 60,000,000.00 145,667,705,023.00 141,883,775,023.00 60,000,000.00 141,823,775,023.00
Investment to joint
ventures and associated 1,911,717,052.00 0.00 1,911,717,052.00 1,675,958,462.00 0.00 1,675,958,462.00
enterprises
Total 147,639,422,075.00 60,000,000.00 147,579,422,075.00 143,559,733,485.00 60,000,000.00 143,499,733,485.00
(1) Investment to Subsidiaries
Unit: RMB
Depreciation Ending balance
Investee Beginning balance Increase Decrease Ending balance reserve of depreciation
withdrawn reserve
Beijing BOE Semiconductor Co., Ltd. 9,450,000.00 0.00 0.00 9,450,000.00 0.00 0.00
Beijing Yinghe Century Co., Ltd. 333,037,433.00 0.00 0.00 333,037,433.00 0.00 0.00
Beijing BOE Land Co., Ltd. 7,731,474.00 0.00 0.00 7,731,474.00 0.00 0.00
BOE (Hebei) Mobile Technology Co., Ltd. 1,353,651,020.00 0.00 0.00 1,353,651,020.00 0.00 0.00
BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. 31,038,525.00 0.00 0.00 31,038,525.00 0.00 0.00
Beijing BOE Vacuum Electronics Co., Ltd. 19,250,000.00 0.00 0.00 19,250,000.00 0.00 0.00
Beijing BOE Vacuum Technology Co., Ltd. 32,000,000.00 0.00 0.00 32,000,000.00 0.00 0.00
Beijing BOE Optoelectronics Technology Co., Ltd. 4,172,288,084.00 0.00 0.00 4,172,288,084.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Beijing BOE Special Display Technology Co., Ltd. 40,000,000.00 0.00 0.00 40,000,000.00 0.00 60,000,000.00
BOE Optoelectronics Technology Co., Ltd. 658,961,914.00 0.00 0.00 658,961,914.00 0.00 0.00
BOE Marketing Co., Ltd. 30,500,000.00 0.00 0.00 30,500,000.00 0.00 0.00
Chengdu BOE Optoelectronics Technology Co., Ltd. 19,283,149,991.00 760,000,000.00 0.00 20,043,149,991.00 0.00 0.00
Beijing Asahi Electronic Material Co., Ltd. 30,888,470.00 0.00 0.00 30,888,470.00 0.00 0.00
BOE (Korea) Co., Ltd. 788,450.00 0.00 0.00 788,450.00 0.00 0.00
Beijing BOE Optoelectronics Holding Co., Ltd. 2,768,662,024.00 0.00 0.00 2,768,662,024.00 0.00 0.00
Beijing BOE Display Technology Co., Ltd. 17,418,713,599.00 0.00 0.00 17,418,713,599.00 0.00 0.00
Beijing BOE Energy Technology Co., Ltd. 850,000,000.00 0.00 0.00 850,000,000.00 0.00 0.00
Beijing BOE Multimedia Technology Co. Ltd. 400,000,000.00 0.00 0.00 400,000,000.00 0.00 0.00
Hefei BOE Optoelectronics Technology Co., Ltd. 9,000,000,000.00 0.00 0.00 9,000,000,000.00 0.00 0.00
BeijingMatsushita Color CRT Co., Ltd. 0.00 0.00 0.00 0.00 0.00 0.00
Beijing BOE Video Technology Co., Ltd. 3,020,000,000.00 220,000,000.00 0.00 3,240,000,000.00 0.00 0.00
Beijing BOE Smart Commerce Co., Ltd. 10,000,000.00 0.00 0.00 10,000,000.00 0.00 0.00
Beijing Zhongxiangying Technology Co., Ltd. 10,000,000.00 0.00 0.00 10,000,000.00 0.00 0.00
Ordos Yuansheng Optoelectronics Co., Ltd. 11,804,000,000.00 0.00 0.00 11,804,000,000.00 0.00 0.00
Ordos Haosheng Energy Investment Co., Ltd. 2,000,000.00 0.00 0.00 2,000,000.00 0.00 0.00
Hefei Xinsheng Optoelectronics Technology Co., Ltd. 16,575,150,000.00 0.00 0.00 16,575,150,000.00 0.00 0.00
Chongqing BOE Optoelectronics Technology Co., Ltd. 19,565,354,599.00 0.00 0.00 19,565,354,599.00 0.00 0.00
Hefei BOE Display Technology Co., Ltd. 1,998,765,323.00 0.00 0.00 1,998,765,323.00 0.00 0.00
Fuzhou BOE Optoelectronic Technology Co., Ltd. 14,300,042,079.00 0.00 0.00 14,300,042,079.00 0.00 0.00
BOE Healthcare Co., Ltd. 1,743,154,069.00 275,000,000.00 0.00 2,018,154,069.00 0.00 0.00
Intelligent Technology 50,000,000.00 30,000,000.00 0.00 80,000,000.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2019
Hefei BOE Zhuoyin Technology Co., Ltd. 600,000,000.00 0.00 0.00 600,000,000.00 0.00 0.00
Beijing BOE Technology Development Co., Ltd. 1,000,000.00 0.00 0.00 1,000,000.00 0.00 0.00
Kunming BOE Display Technology Co., Ltd. 202,800,000.00 467,200,000.00 0.00 670,000,000.00 0.00 0.00
Beijing BOE Sensor Technology Co., Ltd. 50,000,000.00 0.00 0.00 50,000,000.00 0.00 0.00
Mianyang BOE Optoelectronics Technology Co., Ltd. 13,936,980,083.00 150,000,000.00 0.00 14,086,980,083.00 0.00 0.00
Wuhan BOE Optoelectronics Technology Co., Ltd. 1,230,860,516.00 1,920,000,000.00 0.00 3,150,860,516.00 0.00 0.00
Beijing BOE Yiyun Technology Co., Ltd. 90,000,000.00 0.00 0.00 90,000,000.00 0.00 0.00
Chongqing BOE Display Technology Co., Ltd. 193,557,370.00 0.00 0.00 193,557,370.00 0.00 0.00
Fuzhou BOE Display Technology Co., Ltd. 0.00 21,730,000.00 0.00 21,730,000.00 0.00 0.00
Total 141,823,775,023.00 3,843,930,000.00 0.00 145,667,705,023.00 0.00 60,000,000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Profit and loss Cash, Ending
Adjustment of
on investments Changes dividends and balance for
The investor Beginning balance Additional Reduced other Impairment Ending balance
confirmed in other profits Other impairment
investments investments comprehensive provisions
according to equity declared to provisions
income
equity law issue
I. Joint ventures
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Associated enterprises
Beijing Nissin
Electronics 538,489.00 0.00 0.00 -534,864.00 0.00 0.00 0.00 0.00 0.00 3,625.00 0.00
Precision
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BOE Technology Group Co., Ltd. Interim Report 2019
Component Co.,
Ltd. (Nissin
Electronics )
Beijing Nittan
Electronic Co., Ltd. 61,733,085.00 0.00 0.00 2,152,314.00 0.00 0.00 -3,000,000.00 0.00 0.00 60,885,399.00 0.00
(Nittan Electronics)
Beijing Yingfei
Hailin Venture
Capital 435,828.00 0.00 0.00 -435,828.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Management Co.,
Ltd.(Yingfei Hailin)
Ordos BOE Energy
Investment Co.,
9,458,312.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9,458,312.00 0.00
Ltd. (BOE Energy
Investment)
Beijing Fly Hailin
82,336,933.00 0.00 0.00 -332,938.00 0.00 0.00 0.00 0.00 0.00 82,003,995.00 0.00
Investment Center
TPV Display
Technology (China) 23,001,359.00 0.00 0.00 -2,258,314.00 0.00 0.00 0.00 0.00 0.00 20,743,045.00 0.00
Limited
Beijing Xindong
Neng Investment 1,455,174,877.00 0.00 37,081,499.00 -7,203,989.00 175,359,777.00 0.00 0.00 0.00 0.00 1,586,249,166.00 0.00
Fund (LLP)
Beijing Xindong
Neng Investment
5,188,862.00 0.00 0.00 987,022.00 0.00 0.00 0.00 0.00 0.00 6,175,884.00 0.00
Management Co.,
Ltd.
Shenzhen 15,481,506.00 0.00 0.00 -8,660,243.00 0.00 0.00 0.00 0.00 0.00 6,821,263.00 0.00
207
BOE Technology Group Co., Ltd. Interim Report 2019
Yunyinggu
Technology Co.,
Ltd.
Beijing XLOONG
Technology Co., 22,609,211.00 0.00 0.00 -232,848.00 0.00 0.00 0.00 0.00 0.00 22,376,363.00 0.00
Ltd.
Beijing Innovation
Industry Investment 0.00 100,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100,000,000.00 0.00
Co., Ltd.
Beijing Electronic
Control Industry
0.00 17,000,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17,000,000.00 0.00
Investment Co.,
Ltd.
Subtotal 1,675,958,462.00 117,000,000.00 37,081,499.00 -16,519,688.00 175,359,777.00 0.00 -3,000,000.00 0.00 0.00 1,911,717,052.00 0.00
Total 1,675,958,462.00 117,000,000.00 37,081,499.00 -16,519,688.00 175,359,777.00 0.00 -3,000,000.00 0.00 0.00 1,911,717,052.00 0.00
(3) Other Notes
None
208
BOE Technology Group Co., Ltd. Interim Report 2019
4. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 2,864,081,627.00 3,942,511.00 0.00 0.00
Other operations 25,614,205.00 5,284,077.00 2,146,860,956.00 12,786,733.00
Total 2,889,695,832.00 9,226,588.00 2,146,860,956.00 12,786,733.00
Whether the Company has executed the new income standards
□ Yes √ No
Other notes:
None
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income accounted by cost
806,360,000.00 900,000,000.00
method
Long-term equity investment income accounted by equity
-16,519,688.00 -17,602,562.00
method
Investment income arising from disposal of long-term
0.00 0.00
equity investments
Investment income arising from disposal of trading
0.00 0.00
financial assets
Investment income received from holding of other equity
2,353,967.00 2,071,592.00
instrument investment
Investment income of held-to-maturity investment during
0.00 0.00
holding period
Investment income received from holding of
0.00 0.00
available-for-sale financial assets
Investment income received from disposal of
0.00 0.00
available-for-sale financial assets
Investment income from disposal of held-to-maturity
0.00 0.00
investment
After losing control, gains from re-measurement of residual
0.00 0.00
shares at fair value
Interest income of creditors’ investment during holding 0.00 0.00
209
BOE Technology Group Co., Ltd. Interim Report 2019
period
Interest income of other creditors’ investment during
0.00 0.00
holding period
Investment income from disposal of other creditors’
0.00 0.00
investment
Total 792,194,279.00 884,469,030.00
6. Other
None
XVI. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Explanation
Gains/losses on the disposal of non-current assets -672,378.00 Naught
Tax rebates, reductions or exemptions due to approval beyond authority or the lack of
0.00 Naught
official approval documents
Government grants recognized in the current period, except for those acquired in the
ordinary course of business or granted at certain quotas or amounts according to the 1,152,320,986.00 Naught
government’s unified standards
Capital occupation charges on non-financial enterprises that are recorded into current
0.00 Naught
gains and losses
Gains due to that the investment costs for the Company to obtain subsidiaries,
associates and joint ventures are lower than the enjoyable fair value of the identifiable 0.00 Naught
net assets of the investees when making the investments
Gain/loss on non-monetary asset swap 0.00 Naught
Gain/loss on entrusting others with investments or asset management 0.00 Naught
Asset impairment provisions due to acts of God such as natural disasters 0.00 Naught
Gains and losses from debt restructuring 0.00 Naught
Expenses on business reorganization, such as expenses on staff arrangements,
0.00 Naught
integration, etc.
Gain/loss on the part over the fair value due to transactions with distinctly unfair prices 0.00 Naught
Current net gains and losses of subsidiaries acquired in business combination under the
0.00 Naught
same control from period-begin to combination date
Profit and loss from contingencies irrelative to the normal business operations of 0.00 Naught
210
BOE Technology Group Co., Ltd. Interim Report 2019
company
Gain/loss from change of fair value of trading assets and liabilities, and derivative
financial assets and liabilities, and investment gains from disposal of trading financial
79,628,679.00 Naught
assets and liabilities and derivative financial assets and liabilities, and other creditors’
investment, other than valid hedging related to the Company’s common businesses
Depreciation reserves returns of receivables with separate depreciation test 701,302.00 Naught
Gain/loss on entrustment loans 0.00 Naught
Gain/loss on change of the fair value of investing real estate of which the subsequent
0.00 Naught
measurement is carried out adopting the fair value method
Effect on current gains/losses when a one-off adjustment is made to current
gains/losses according to requirements of taxation, accounting and other relevant laws 0.00 Naught
and regulations
Custody fee income when entrusted with operation 0.00 Naught
Other non-operating income and expense other than the above 51,173,190.00 Naught
Project confirmed with the definition of non-recurring gains and losses and losses 0.00 Naught
Less: Income tax effects 70,992,401.00 Naught
Non-controlling interests effects 195,201,363.00 Naught
Total 1,016,958,015.00 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Profit or
Loss, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.
□ Applicable √ Not applicable
2. Return on Equity and Earnings Per Share
EPS (Yuan/share)
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to ordinary shareholders
1.92% 0.048 0.048
of the Company
Net profit attributable to ordinary shareholders
of the Company after deduction of 0.75% 0.019 0.019
non-recurring profit and loss
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International
and Chinese Accounting Standards
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. Interim Report 2019
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas and
Chinese Accounting Standards
□ Applicable √ Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
None
4. Other
None
212
BOE Technology Group Co., Ltd. Interim Report 2019
Part XI 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); and
(II) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the Reporting
Period.
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: 23rd August 2019
213
