ANNUAL REPORT 2020
April 2021
BOE Technology Group Co., Ltd. Annual Report 2020
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.
Name Office title Reason for not attending the meeting in person Proxy entrusted to attend the meeting
Pan Jinfeng Director Due to work Li Yantao
Song Jie Director Due to work Li Yantao
Sun Yun Director Due to work Liu Xiao Dong
Any plans for the future and other forward-looking statements mentioned in this Report shall
NOT be considered as absolute promises of the Company to investors. Investors, among
others, shall be sufficiently aware of the risk and shall differentiate between plans and
forecasts and promises.
The Board has approved a final dividend plan for the Reporting Period. Based on
34,770,212,630 shares (the total share capital minus the shares in the share repurchase
account), a cash dividend of RMB1.00 (tax inclusive) per 10 shares is to be distributed to all
the shareholders, with no bonus issue from either profit or capital reserves.
This Report has been prepared as per the Chinese Accounting Standards for Business
Enterprises and other relevant regulations. KPMG Huazhen LLP has issued an independent
auditor’s report with unmodified unqualified opinion for the Company.
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. Annual Report 2020
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 ............................................................................................................. 11
Part IV Operating Performance Discussion and Analysis ........................................................... 15
Part V Significant Events ................................................................................................................ 42
Part VI Share Changes and Shareholder Information ................................................................. 70
Part VII Preferred Shares ............................................................................................................... 83
Part VIII Convertible Corporate Bonds ........................................................................................ 84
Part IX Directors, Supervisors, Senior Management and Staff .................................................. 85
Part X Corporate Governance ...................................................................................................... 102
Part XI Corporate Bonds .............................................................................................................. 111
Part XII Financial Statements ...................................................................................................... 117
Part XIII Documents Available for Reference ............................................................................. 309
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BOE Technology Group Co., Ltd. Annual Report 2020
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
SZSE, the Stock Exchange The Shenzhen Stock Exchange
The Stock Listing Rules The Stock Listing Rules of the Shenzhen Stock Exchange (Revised in 2020)
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
KPMG KPMG Huazhen LLP
OASIS Hospital OASIS International Hospital
Microdisplay Microdisplay technology
LCD Liquid Crystal Display
AMOLED Active-matrix Organic Light Emitting Diode
OLED Organic Light Emitting Diode
Mini-LED Submillimeter Light Emitting Diode
P0.9 Point 0.9mm
AM Active matrix
Micro-LED Micro Light Emitting Diode
VR/AR Virtual Reality /Augmented Reality
IoT Internet of Things
TFT-LCD Thin Film Transistor Liquid Crystal Display
ESL Electronic Shelf Label
3C Computer, communication and consumer electronics
CsI Cesium iodide
ICT Information and Communication Technology
OEE management system Overall Equipment Effectiveness management system
MRP Material Requirement Planning
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BOE Technology Group Co., Ltd. Annual Report 2020
C-end Customer-end
B-end Business-end
SID The Society for Information Display
OEE management system Overall Equipment Effectiveness management system
IEC International Electrotechnical Commission
COG Chip (Mini LED) On Glass
SMD Surface Mount Technology
COB Chip (Mini LED) On Board (PCB)
BD Cell BOE Dual Cell
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BOE Technology Group Co., Ltd. Annual Report 2020
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. 京东方
Company name in English (if any) BOE TECHNOLOGY GROUP CO., LTD.
Abbr. (if any) BOE
Legal representative Chen Yanshun
Registered address 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China
Zip code 100015
Office address 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China
Zip code 100176
Company website www.boe.com
Email address web.master@boe.com.cn
II Contact Information
Item Board Secretary Securities Representative
Name Liu Hongfeng Su Xuefei
12 Xihuan Middle Road, Beijing 12 Xihuan Middle Road, Beijing
Office Address
Economic-Technological Development Area, P.R.China Economic-Technological Development Area, P.R.China
Tel. 010－64318888 ext. 010－64318888 ext.
Fax 010－64366264 010－64366264
E-mail address liuhongfeng@boe.com.cn suxuefei@boe.com.cn
III Media for Information Disclosure and Place where this Report Is Lodged
Newspapers designated by the Company for information China Securities Journal, Shanghai Securities News, Securities Times,
disclosure Ta Kung Pao (HK)
Website designated by CSRC for publication of this Report http://www.cninfo.com.cn/
Place where this Report is lodged Board Secretary’s Office
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BOE Technology Group Co., Ltd. Annual Report 2020
IV Changes to Company Registered Information
Unified social credit code No change
Change to principal activity of the Company since going public (if any) No change
Every change of controlling shareholder since incorporation (if any) No change
V Other Information
The independent audit firm hired by the Company:
Name KPMG Huazhen LLP
Office address 8/F, KPMG Tower, Oriental Plaza, 1 East Chang An Avenue, Beijing, P.R.China
Accountants writing signatures Zhang Huan and Chai Jing
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
2020-over-2019
Item 2020 2019 2018
change (%)
Operating revenue (RMB) 135,552,569,729.00 116,059,590,164.00 16.80% 97,108,864,935.00
Net profit attributable to the listed
5,035,627,952.00 1,918,643,871.00 162.46% 3,435,127,975.00
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 2,670,454,834.00 -1,166,793,317.00 - 1,517,702,353.00
gains and losses (RMB)
Net cash generated from/used in operating
39,251,773,458.00 26,083,079,194.00 50.49% 25,684,047,196.00
activities (RMB)
Basic earnings per share (RMB/share) 0.13 0.05 160.00% 0.10
Diluted earnings per share (RMB/share) 0.13 0.05 160.00% 0.10
Weighted average return on equity (%) 5.15% 2.16% 2.99% 4.00%
Change of 31
December 2020
Item 31 December 2020 31 December 2019 31 December 2018
over 31 December
2019 (%)
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BOE Technology Group Co., Ltd. Annual Report 2020
Total assets (RMB) 424,256,806,331.00 340,412,203,308.00 24.63% 304,028,491,385.00
Equity attributable to the listed company’s
103,276,766,835.00 95,058,129,055.00 8.65% 85,856,748,703.00
shareholders (RMB)
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there was
uncertainty about the Company’s ability to continue as a going concern.
□ Yes √ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative.
□ Yes √ No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Item Q1 Q2 Q3 Q4
Operating revenue 23,887,380,060.00 32,863,949,005.00 38,149,823,526.00 40,651,417,138.00
Net profit attributable to the listed
566,676,460.00 568,773,865.00 1,340,387,777.00 2,559,789,850.00
company’s shareholders
Net profit attributable to the listed
company’s shareholders before -502,352,271.00 326,023,686.00 1,064,128,213.00 1,782,655,206.00
exceptional gains and losses
Net cash generated from/used in
5,223,671,919.00 4,493,003,615.00 13,751,838,874.00 15,783,259,050.00
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
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BOE Technology Group Co., Ltd. Annual Report 2020
have been disclosed in the Company’s quarterly or interim reports.
√Yes □No
The quarterly operating revenue is re-presented according to the approved data, which has no impact on other financial indicators.
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2020 2019 2018 Note
Gain or loss on disposal of non-current assets (inclusive of
373,432,171.00 20,340,136.00 -25,632,761.00 N/A
impairment allowance write-offs)
Tax rebates, reductions and exemptions given with ultra vires
0.00 0.00 0.00 N/A
approval or in lack of official approval documents
Government subsidies charged to current profit or loss
(exclusive of government subsidies given in the Company’s
2,332,107,692.00 2,640,634,861.00 2,073,709,661.00 N/A
ordinary course of business at fixed quotas or amounts as per
the government’s uniform standards)
Capital occupation charges on non-financial enterprises that
0.00 0.00 0.00 N/A
are charged to current profit or loss
Gain equal to the amount by which investment costs for the
Company to obtain subsidiaries, associates and joint ventures
0.00 0.00 0.00 N/A
are lower than the Company’s enjoyable fair value of
identifiable net assets of investees when making investments
Gain or loss on non-monetary asset swaps 0.00 0.00 0.00 N/A
Gain or loss on assets entrusted to other entities for
0.00 0.00 0.00 N/A
investment or management
Allowance for asset impairments due to acts of God such as
0.00 0.00 0.00 N/A
natural disasters
Gain or loss on debt restructuring 0.00 0.00 0.00 N/A
Restructuring costs in staff arrangement, integration, etc. 0.00 0.00 0.00 N/A
Gain or loss on the over-fair value amount as a result of
0.00 0.00 0.00 N/A
transactions with distinctly unfair prices
Current profit or loss on subsidiaries obtained in business
combinations involving enterprises under common control 0.00 0.00 0.00 N/A
from the period-beginning to combination dates, net
Gain or loss on contingencies that do not arise in the
0.00 0.00 0.00 N/A
Company’s ordinary course of business
Gain or loss on fair-value changes in held-for-trading and
82,698,484.00 112,668,244.00 315,279,377.00 N/A
derivative financial assets and liabilities & income from
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BOE Technology Group Co., Ltd. Annual Report 2020
disposal of held-for-trading and derivative financial assets
and liabilities and other investments in debt obligations
(exclusive of the effective portion of hedges that arise in the
Company’s ordinary course of business)
Reversed portions of impairment allowances for accounts
receivable and contract assets which are tested individually 15,447,820.00 1,498,805.00 1,779,710.00 N/A
for impairment
Gain or loss on loan entrustments 0.00 0.00 0.00 N/A
Gain or loss on fair-value changes in investment property of
which subsequent measurement is carried out using the fair 0.00 0.00 0.00 N/A
value method
Effects of all adjustments required by taxation, accounting
and other applicable laws and regulations on current profit or 0.00 0.00 0.00 N/A
loss
Income from charges on entrusted management 0.00 0.00 0.00 N/A
Non-operating income and expense other than the above 65,391,368.00 96,799,305.00 63,734,628.00 N/A
Other gains and losses that meet the definition of exceptional
0.00 795,126,980.00 0.00 N/A
gain/loss
Less: Income tax effects 185,966,533.00 285,904,312.00 328,634,385.00 N/A
Non-controlling interests effects (net of tax) 317,937,884.00 0 295,726,831.00 182,810,608.00 N/A
Total 2,365,173,118.00 3,085,437,188.00 1,917,425,622.00 --
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. Annual Report 2020
Part III Business Summary
I Principal Activity of the Company in the Reporting Period
BOE is an IoT company that provides smart ports and professional services for information interaction and human health. After years
of innovation-driven development, the Group recorded revenue of over RMB100 billion for the first time in 2019, establishing its
status as a global leader in the semiconductor display sector. In 2020, the Group established a strategic goal of becoming an
innovative IoT enterprise with absolute advantages in a number of segments. It furthered management changes based on analysis and
business model study of the development trends of the semiconductor display and IoT markets. By building platforms at multiple
levels and on all fronts, it integrated ecological chain, expedited integrated development, and built a multi-layer strategic business
structure on the basis of core capacities and extension of industrial value chain. Under its strategic thinking, the Group has
established a "1+4+N" BG structure extended to the semiconductor display chain and the value chain of many IoT scenarios based on
its core capacities in display and sensor.
"1" means the Semiconductor Display business, which is the key driver of the Group's business growth and has taken up the leading
position on the industrial chain thanks to core technical capability reserves. The business has the intellectual capital and resource
reserves to propel the fast growth of other businesses.
"4" means Sensor and Solution business, Mini-LED business, Intelligence System and Innovation business, and Smart Medical
Engineering business, which the Group is concentrating resources to develop for their enormous potential, on the back of the core
capacities in the Semiconductor Display business and the predictions of future technology and market development. These businesses
have gathered momentum for building of core capacities and are poised to be the principal businesses as the Group goes forward.
"N" means specific businesses integrated into IoT scenarios, including Intelligent Car Networking, Smart Retail, Smart Finance,
Smart Medicine and Engineering, Industrial IoT, and Smart City Public Service, and Digital Art. It is an extended business layer on
the basis of the core capacities in value chains of "1" and "4". Under the principle of "core capacities empowerment and outward
development", this business layer will penetrate deep into the IoT scenarios and market segments to boost business growth and core
capacities upgrading.
To promote the development of the "1+4" BG structure, the Group strengthens investment business dominated by industrial funds,
with the primary objective of ensuring the security of the supply chain and building industrial clusters and ecological alliances to
facilitate the better and faster development of "1+4+N" businesses. In the meanwhile, the Group builds customer touchpoints
focusing on product and market innovation cooperation with strategic partners, suppliers, customers, investors and even all
enterprises and individuals with innovative mindset and ability, who are not only a crucial driving force for rapid market expansion
and supply chain security but also a key window for gaining insights into market changes, understanding product and customer needs,
and swiftly responding to characteristics and specific market segments.
As an open platform, the Smart System Innovation Center is open to all layers of the "1+4" BG structure, especially to strategic
technology and market partners, upstream and downstream industrial partners, investors, and internal and external entities and
individuals with innovative ideas, channels and market methods. This platform facilitates cooperation to expand market and customer
base and jointly create products and value for win-win outcomes.
The specifics are as follows:
1. Display business
Display business offers TFT-LCD, AMOLED, Microdisplay and other intelligent interface devices designed and manufactured in an
integrated way, to create an integrated platform of panels, modules, whole products and services. Display business provides
customers with high-quality display devices such as smartphones, tablet PCs, laptops, monitors, TVs, vehicle-mounted, electronic
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BOE Technology Group Co., Ltd. Annual Report 2020
shelf label (ESL), tiled display screens, industrial control, wearable devices, VR/AR devices, electronic tags, white goods, healthcare,
mobile payment, and interactive whiteboards, as well as the most competitive intelligent services in 3C display, smart IoT, system
platform, and other fields.
2. Sensor and Solution business
Sensor and Solution business offers B2B customers integrated design and manufacturing services of sensor devices for use in
medical detection, household detection, communication & transportation, smart homes, etc., as well as sensor system solutions
regarding medical imaging, biological detection, smart screens, microwave communication, fingerprint identification and the like,
with products including flat panel X-ray detectors (FPXD), digital microfluidic chips, PDLC glass, fingerprint identification systems,
etc.
3. Mini-LED business
Mini-LED business renders Mini-LED backlight products with high reliability and high dynamic range of dimming for mobile phones,
tablet PCs, laptops, monitors, TVs, etc., as well as Mini/Micro-LED display products with high brightness, high reliability and high
dynamic range for outdoor, commercial and other purposes. All these products are designed and manufactured in an integrated manner.
4. Intelligence System and Innovation business
Intelligence System and Innovation business offers overall system solutions under integrated design and backed by AI and big data,
such as smart government affairs, city beautification, smart transportation, smart finance, smart education, smart park, smart energy
and other IoT solutions, for products and services combining hardware and software.
5. Smart Medical Engineering business
Smart Medical Engineering business adopts the professional healthcare service model to combine technologies with medicine and
integrate medicine and engineering with innovation, so as to provide families, communities and hospitals with the four core services
of health management, health technology, digital hospital, and technology services. The health IoT platform connects testing
equipment, medical workers and customers to build a smart health management ecosystem where customers enjoy health services
including prevention, treatment, therapy and nursing.
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 increased primarily driven by the reclassification of new constructions into fixed assets
Fixed assets
and the changes to the consolidation scope in the Reporting Period.
Intangible assets N/A
Construction in progress decreased primarily driven by the reclassification of new constructions into
Construction in progress
fixed assets in the Reporting Period.
2. Major Assets Overseas
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. Annual Report 2020
III Core Competitiveness Analysis
With the vision of becoming the "Best on Earth, The World Leader", BOE "never says tired, never says difficult, never says give up,
and never says satisfied" in driving its development through unceasing independent innovation. Leveraging its core technologies in
display and sensor products, it has constructed a BG structure extended to the industry chain of semiconductor display and the value
chain of various IoT scenarios.
After nearly 28 years of development, BOE has become a global leader in the semiconductor display sector, with total display screen
shipments ranking first and the largest market share in the five mainstream applications and innovative applications in the world. In
2020, BOE took an active part in the integration and reorganization of the display sector, successfully completing mergers and
acquisitions of production lines to further expand its advantages in terms of market share, technology and regional layout. As a result,
it has further consolidated its leading position in the industry. In the meanwhile, BOE launched a brand-new development platform
called Smart System Innovation Center as a key engine for the transformation and development of IoT.
Market position was steadily improved:
In 2020, BOE continued its innovation-driven development in the context of the global spread of COVID-19 that badly hit the work
economy. Display business recorded growth of display device sales despite all the difficulties. The sales volume of annual display
devices climbed by 18% year on year. The market share of sales of smartphone LCD, tablet PC display screen, laptop display screen,
display monitor and TV display continued its first ranking status. Sales of innovative application products registered year-on-year
growth of more than 60%, with an increase in shipping area of over 70%; the market share of wearables, ESL, electronic tags, tiled
display screens and IoT finance applications ranked top globally. Breakthroughs were made in the shipments of flexible OLED
products, with year-on-year expansion of more than 100%. Sales of whole 3C products of above 65 inches rose by more than 15%
year on year, and that of whole TV in China increased by over 145%. BOE completed the acquisition of Gen-8.5 LCD production
line of Nanjing CEC Panda and Gen-8.6 LCD production line of Chengdu CEC Panda, further enhancing its product varieties and
capacity advantages.
Sensor and Solution business: The full-size X-ray flat panel X-ray detectors (FPXD) of 12-46 inches for medical purpose have been
applied in global high-end medical device companies in Europe, the United States, Japan, South Korea and other countries. In
particular, CsI products sales growth 300% year on year. With innovative displays and sensors and light transmittance adjustable by
touch or keystroke, smart screens have been applied in many areas including transportation and construction. The product was
delivered for Beijing-Xiong'an Tourist Area, Beijing-Zhangjiakou Tourist Area, maglev, and other projects.
Intelligence System and Innovation business: BOE provided smart financial solutions for around 1,500 banking outlets across China,
including ICBC, CCB, ABC, CITIC Bank, and CMB; smart retail solutions for more than 20,000 stores in over 61 countries around
the world; and display products for over 80% of high-speed rail lines and 22 urban subway lines in China. As for smart park
solutions, BOE leveraged technologies such as IoT, cloud computing and AI to build all park subsystems and enable integrated
management of people, vehicles and the environment. The Company's smart park solutions have been applied to projects in six major
cities, including Taoxichuan in Jingdezhen City, Guangnian Town in Tianjin Municipality, and Universal Studios in Beijing
Municipality. As for urban beautification, BOE has completed a series of projects including Twin Towers in Chengdu and Wanda
Square in Wuhan, which are new engines and new landmarks for boosting the economic development of the cities.
Smart Medical Engineering business: BOE rendered smart health management services through a digital hospital platform integrating
digital treatment and therapy, digital services, digital management and digital promotion. Furthermore, BOE rolled out IoT solutions
such as integrated management of chronic diseases, Smart Emergency, Smart Health Care Community, and Smart Public Health and
Physical Examination, and joined hands with Beijing Emergency Center to enable synchronous flow of information of alarms,
emergency centers, hospitals, ambulances, doctors/volunteers, thus effectively shortening the time of responding to patients needing
first aid. The Company partnered with Peking University Third Hospital to promote the use of a new model for early screening, early
diagnosis and early treatment of chronic obstructive pulmonary disease. Outpatients and discharges of Hefei Hospital grew by 120%
and 200% year on year, respectively, and operations increased by over 185%. BOE also integrated digital human APP into mobile
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BOE Technology Group Co., Ltd. Annual Report 2020
health APP. The Company carried out in-depth cooperation with BioChain in cancer early diagnosis detection and tumor concomitant
diagnosis to build a whole industry chain to protect people's health.
Technical strengths were further enhanced:
BOE continued to apply for and obtain more patents, with more than 9,000 new patent applications in the year. In particular, the
Company filed over 4,500 new patent applications in respect of flexible OLED, sensor, AI, big data and other innovative fields. New
patent authorizations amounted to 5,500, including over 2,300 overseas authorizations. Besides, the Company led the formulation
and amendment of 36 external technical standards, and group standards led by BOE such as IEC international standards for LCD
multi-screen display terminals and 8K TV display interface specifications were officially released. The flexible AMOLED R&D and
industrialization project won the special prize of Beijing Annual Science and Technology Progress Award. Five AI technologies of
BOE including character recognition and behavior recognition took the first place in international industry competitions.
As for innovation in product and technology applications, TV BD Cell won the SID Global Display Industry Award 2020, as its
application was extended to vehicles, hospitals and broadcast. InP-based red quantum dot light-emitting diode and green devices saw
considerable efficiency improvement, continuing to lead the industry. The face recognition algorithm for masked people had a pass
rate of above 95%, among the highest in the industry. In biochip development, BOE completed R&D of a nucleic acid detection
system prototype that was fully automatic microfluidic.
Operating efficiency was continuously increased:
BOE continuously optimized its operation mechanism, strengthened effective and rapid collaboration marketing, supply and
manufacturing, and further enhanced production line operations through OEE management system, thus further increasing efficiency.
The tiled display screens from Beijing Gen-8.5 LCD production line and e-sports display products reached a new high by shipment
rate. The oxide TFT products from Chongqing Gen-8.5 production line achieved breakthroughs, with a further rise in proportion of
miniaturized products. The yield of Hefei Gen-10.5 production line hit a new high, and that of Wuhan Gen-10.5 production line
continued to improve. Comprehensive product yield reached a record high. BOE continued to rank first in terms of quality
performance of customers, 27 of the 28 core LCD customers making it to top two and 20 to number one. Five of the 12 strategic
customers ranked first in terms of quality.
Innovative transformation was continuously deepened:
To establish a group-level capabilities system appropriate to the IoT transformation strategy, BOE launched Phase II innovative
transformation of SOPIC in 2020. It has built a "three vertical and three horizontal" operation management mechanism with high
efficiency and collaboration, an organizational system for agile response, capabilities reuse and efficient operation, and a vertical
management system with strategy, process and performance as the core and integration the front, middle and back offices. As a result,
organizational efficiency has notably improved.
Besides, with confidence in its future development prospects and high recognition of its value, the Group issued its first medium- and
long-term equity incentive plan in 2020, which was implemented by buying back some social public shares with proprietary funds.
Beneficiaries of the plan are the core technical team and key management members. The implementation of the first equity incentive
plan has further improved the corporate governance structure to the interest of shareholders, the Company and core personnel and
will facilitate the realization of the Company's long-term business objectives and the creation of value for all stakeholders.
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BOE Technology Group Co., Ltd. Annual Report 2020
Part IV Operating Performance Discussion and Analysis
I Overview
In 2020, the world experienced profound changes unseen in a century. The sudden outbreak of COVID-19 hit hard the global
economy, triggering a global economic recession, which, coupled with further intensifying trade frictions between China and the
United States, brought great challenges to the development and operation of companies. On the other hand, China was speeding up
efforts to foster a new development paradigm with domestic circulation as the mainstay and domestic and international circulations
reinforcing each other. Online education, online entertainment, telecommuting, telemedicine and other application scenarios spurred
the pandemic saw exponential growth. 5G, AI and other new technologies were integrated with traditional industries at a faster pace.
Digital transformation presented strategic opportunities to the market. In the meanwhile, the semiconductor display sector rebounded
in the midst of accelerating industry integration. In a complex development environment in China and globally, BOE identified
opportunities from the crisis in the face of the changing situation. By actively responding to challenges and grasping development
opportunities, it saw its operating revenue continued to grow to approximately RMB135.553 billion for the whole year, up about
16.80% year on year, and achieved a net profit attributable to the listed company’s shareholders of RMB5.036 billion, up about
162.46% year on year
1. Fast development of the five businesses
Display business: BOE further consolidated its leading position in the semiconductor display sector, which generated operating
revenue of about RMB131.971 billion in this business during the Reporting Period, up about 16.03% year on year. The Company's
market position in display devices steadily improved, and product sales volume rose by 18% year on year. The market share of five
mainstream products, such as smartphone LCD screens, tablet PC displays, laptop displays, display screens and TV displays,
continued to rank first globally. The market share of innovative application products expanded rapidly, and that of wearables, ESL,
electronic tags, tiled display screens and IoT financial applications ranked first in the world. Flexible OLED products grew faster,
with year-on-year sales growth of above 100%. BOE completed the acquisition of Gen-8.5 LCD production line of Nanjing CEC
Panda and Gen-8.6 LCD production line of Chengdu CEC Panda, thus improving its technology and product mixes and competitive
edges.
Sensor and Solution business: For medical imaging and smart screens, breakthroughs were made in market development, customer
base expansion, R&D of new products and new technologies, and they witnessed moderate growth, generating operating revenue of
about RMB120 million in this business during the Reporting Period, up about 90.95% year on year. The shipments of medical
imaging products went up by more than 70% year on year, propelled by more breakthroughs in overseas market expansion; in
particular, shipments to South Korea rose by over 30%. BOE established a partnership with leading medical equipment companies in
Europe and the US and the largest detector company in the world. Smart screens were delivered for Beijing-Xiong'an Tourist Area,
Beijing-Zhangjiakou Tourist Area, maglev, and other projects, and passenger vehicle skylight, Metro display screens and other
projects were launched. BOE led the formulation of national standards for electronic dyed glass to pave the way for more
breakthroughs.
Mini-LED business: BOE integrated its competitive resources to make early layout for the next-generation display technology. Thus,
it has established Mini-LED business as an integral part of its BG structure. The Company made breakthroughs in products,
technologies and markets. It has produced 75-inch glass double backlight lighting product and promoted it to some influential
customers. The world's first largest needle-type die bonding machine, co-developed by BOE, was installed and commissioned,
leading to substantial increase in die bonding speed. Glass straight side lines, die bonding and assembly and other key technologies
were developed. The development and marketing of P0.9 AM glass product are progressing steadily.
15
BOE Technology Group Co., Ltd. Annual Report 2020
Intelligence System and Innovation business: BOE made breakthroughs in business landscape and headway in market expansion.
Operating revenue of this business posted about RMB1.328 billion during the Reporting Period, up about 61.72% year on year. Great
breakthroughs were made in building an innovation center network. With Beijing as the core, the Company built innovation centers
nationwide in Chongqing and Chengdu with the focus on six major economic circles, according to the general plan of "one horizontal
and one vertical". As for urban beautification, BOE has completed a series of projects including Twin Towers in Chengdu and
Wanda Square in Wuhan, which are new engines and new landmarks for boosting the economic development of the cities. Smart
finance solutions have been provided for more than 1,500 banking outlets. BOE joined hands with Jindezhen Ceramic Culture Group
to create a new-generation model street and with Universal Studios to create an international top theme park, and these projects have
further enhanced the international recognition of BOE brand. The Company launched C-series and E-series smart whole products.
Smart transportation solutions were offered to build a number of benchmark projects, including Taiyuan Metro Line 2.
Smart Medical Engineering business: BOE continued to offer closed-loop full-lifecycle health services with health management as
the core, smart terminals as tools and digital hospitals as support. Health management, health technology, digital hospitals and other
businesses saw rapid development. This business generated operating revenue of approximately RMB1.522 billion during the
Reporting Period, a year-on-year increase of around 12.15%. Regarding health management, BOE also integrated digital human APP
into mobile health APP. Neonatal stem cell storage increased by 180%. Revenue from health technology grew by over 90% year on
year. Health IoT solutions integrating software and hardware such as smart health care and smart emergency were launched in
Zhejiang, Guangxi, Shandong and Beijing on a trial basis. The market of methylation testing products was expanded in an orderly
manner, and more than 10 dealers have been acquired. The performance of Hefei Hospital, a digital hospital, experienced significant
improvement, with outpatients and discharges up 120% and 200% respectively and operations by more than 185% over last year.
2. Further improved technological innovation capacities
BOE continued to apply for and obtain more patents, with more than 9,000 new patent applications in the year. In particular, the
Company filed over 4,500 new patent applications in respect of flexible OLED, sensor, AI, big data and other innovative fields. New
patent authorizations amounted to 5,500, including over 2,300 overseas authorizations. Besides, the Company led the formulation
and amendment of 36 external technical standards, and group standards led by BOE such as IEC international standards for LCD
multi-screen display terminals and 8K TV display interface specifications were officially released. The flexible AMOLED R&D and
industrialization project won the special prize of Beijing Annual Science and Technology Progress Award. Five AI technologies of
BOE including character recognition and behavior recognition took the first place in international industry competitions. As for
innovation in product and technology applications, TV BD Cell won the SID Global Display Industry Award 2020, as its application
was extended to vehicles, hospitals and broadcasting level display. InP-based red quantum dot light-emitting diode and green devices
saw considerable efficiency improvement, continuing to lead the industry. The face recognition algorithm for masked people had a
pass rate of above 95%, among the highest in the industry. In biochip development, BOE completed R&D of a nucleic acid detection
system prototype that was fully automatic microfluidic.
II Core Business Analysis
1. Overview
See “I Overview” above.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
16
BOE Technology Group Co., Ltd. Annual Report 2020
2020 2019
As % of total As % of total
Item Change (%)
Operating revenue operating Operating revenue operating
revenue (%) revenue (%)
Total 135,552,569,729.00 100% 116,059,590,164.00 100% 16.80%
By operating division
Display business 131,970,602,256.00 97.36% 113,741,071,151.00 98.00% 16.03%
Smart System Innovation
1,328,060,494.00 0.98% 821,226,259.00 0.71% 61.72%
business
Smart Medicine and
1,522,460,282.00 1.12% 1,357,484,752.00 1.17% 12.15%
Engineering business
Sensor and Solution business 119,817,921.00 0.09% 62,748,635.00 0.05% 90.95%
Others 7,372,351,461.00 5.44% 7,320,141,513.00 6.31% 0.71%
Offset -6,760,722,685.00 -4.99% -7,243,082,146.00 -6.24% -6.66%
By product category
Display business 131,970,602,256.00 97.36% 113,741,071,151.00 98.00% 16.03%
Smart System Innovation
1,328,060,494.00 0.98% 821,226,259.00 0.71% 61.72%
business
Smart Medicine and
1,522,460,282.00 1.12% 1,357,484,752.00 1.17% 12.15%
Engineering business
Sensor and Solution business 119,817,921.00 0.09% 62,748,635.00 0.05% 90.95%
Others 7,372,351,461.00 5.44% 7,320,141,513.00 6.31% 0.71%
Offset -6,760,722,685.00 -4.99% -7,243,082,146.00 -6.24% -6.66%
By operating segment
Mainland China 65,241,679,286.00 48.13% 59,444,025,767.00 51.22% 9.75%
Other regions in Asia 54,895,384,319.00 40.50% 45,030,859,656.00 38.80% 21.91%
Europe 4,804,966,123.00 3.54% 4,511,337,220.00 3.89% 6.51%
America 10,316,934,261.00 7.61% 6,911,922,720.00 5.96% 49.26%
Other regions 293,605,740.00 0.22% 161,444,801.00 0.14% 81.86%
(2) Operating Division, Product Category or Operating Segment Contributing over 10% of Operating
Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
Gross profit YoY change YoY change YoY change
Item Operating revenue Cost of sales
margin in operating in cost of in gross profit
17
BOE Technology Group Co., Ltd. Annual Report 2020
revenue (%) sales (%) margin (%)
By operating division
Display business 131,970,602,256.00 107,769,219,236.00 18.34% 16.03% 9.60% 4.79%
By product category
Display business 131,970,602,256.00 107,769,219,236.00 18.34% 16.03% 9.60% 4.79%
By operating segment
Mainland China 65,241,679,286.00 51,556,683,702.00 20.98% 9.75% 2.21% 5.84%
Other regions in Asia 54,895,384,319.00 44,201,707,545.00 19.48% 21.91% 17.29% 3.17%
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable√ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2020 2019 Change (%)
Unit sales K㎡ 55,653 50,316 10.61%
TFT-LCD Output K㎡ 55,628 50,118 10.99%
Inventory K㎡ 2,555 2,427 5.27%
Unit sales K㎡ 501 269 86.25%
AMOLED Output K㎡ 537 277 93.86%
Inventory K㎡ 40 9 344.44%
Reason for any over 30% YoY movements in the data above
√ Applicable □ Not applicable
The reasons for the increase in AMOLED sales and production in 2020: The flexible AMOLED production line in Chengdu operated
efficiently, prompting shipment growth, and the flexible AMOLED production line in Mianyang managed to carry out mass
production and mass shipments.
The reasons for the increase of AMOLED inventory in 2020: The production capacities of the flexible AMOLED flexible production
lines in Chengdu and Mianyang climbed with an increase in needed inventory turnover and reserve.
(4) Execution Progress of Major Signed Sales Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By operating division and product category
Unit: RMB
By operating Item 2020 2019 Change
18
BOE Technology Group Co., Ltd. Annual Report 2020
division As % of total As % of total (%)
Cost of sales Cost of sales
cost of sales (%) cost of sales (%)
Materials, labor costs,
Display business 107,769,219,236.00 99.03% 98,329,154,262.00 99.88% 9.60%
depreciation, etc.
Smart System Materials, labor costs,
981,563,055.00 0.90% 498,624,217.00 0.51% 96.85%
Innovation business depreciation, etc.
Smart Medicine and
Materials, labor costs,
Engineering 724,268,025.00 0.67% 668,875,829.00 0.68% 8.28%
depreciation, etc.
business
Sensor and Solution Materials, labor costs,
75,405,672.00 0.07% 30,963,371.00 0.03% 143.53%
business depreciation, etc.
Materials, labor costs,
Others 2,213,785,494.00 2.03% 1,681,836,505.00 1.71% 31.63%
depreciation, etc.
Materials, labor costs,
Offset -2,941,118,726.00 -2.70% -2,763,184,888.00 -2.81% 6.44%
depreciation, etc.
Unit: RMB
2020 2019
As % of As % of total
By product category Item Change (%)
Cost of sales total cost of Cost of sales cost of sales
sales (%) (%)
Materials, labor costs,
Display business 107,769,219,236.00 99.03% 98,329,154,262.00 99.88% 9.60%
depreciation, etc.
Smart System Materials, labor costs,
981,563,055.00 0.90% 498,624,217.00 0.51% 96.85%
Innovation business depreciation, etc.
Smart Medicine and
Materials, labor costs,
Engineering 724,268,025.00 0.67% 668,875,829.00 0.68% 8.28%
depreciation, etc.
business
Sensor and Solution Materials, labor costs,
75,405,672.00 0.07% 30,963,371.00 0.03% 143.53%
business depreciation, etc.
Materials, labor costs,
Others 2,213,785,494.00 2.03% 1,681,836,505.00 1.71% 31.63%
depreciation, etc.
Materials, labor costs,
Offset -2,941,118,726.00 -2.70% -2,763,184,888.00 -2.81% 6.44%
depreciation, etc.
Note: N/A
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
The changes in the scope of consolidated financial statements for the Reporting Period had no significant impact on segment data.
19
BOE Technology Group Co., Ltd. Annual Report 2020
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 61,960,413,826.00
Total sales to top five customers as % of total sales of the Reporting Period (%) 45.71%
Total sales to related parties among top five customers as % of total sales of the
0.00%
Reporting Period (%)
Information about top five customers:
Sales revenue contributed for
No. Customer As % of total sales revenue (%)
the Reporting Period (RMB)
1 Customer A 20,861,019,239.00 15.39%
2 Customer B 14,559,514,510.00 10.74%
3 Customer C 11,434,056,234.00 8.44%
4 Customer D 8,141,898,845.00 6.01%
5 Customer E 6,963,924,998.00 5.14%
Total -- 61,960,413,826.00 45.71%
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 20,135,159,623.00
Total purchases from top five suppliers as % of total purchases of the Reporting Period (%) 18.50%
Total purchases from related parties among top five suppliers as % of total purchases of the
0.00%
Reporting Period (%)
Information about top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Supplier A 7,061,923,225.00 6.49%
2 Supplier B 4,333,966,398.00 3.98%
3 Supplier C 3,421,545,273.00 3.14%
4 Supplier D 2,921,777,045.00 2.68%
5 Supplier E 2,395,947,682.00 2.20%
Total -- 20,135,159,623.00 18.50%
20
BOE Technology Group Co., Ltd. Annual Report 2020
Other information about major suppliers:
□ Applicable √ Not applicable
3. Expense
Unit: RMB
Item 2020 2019 Change (%) Reason for any significant change
Selling expense 3,137,719,001.00 2,917,865,380.00 7.53% N/A
Administrative expense 6,203,600,521.00 5,214,948,027.00 18.96% N/A
Repayment of the carrying amount of debt
Finance costs 2,650,153,972.00 1,994,150,258.00 32.90%
that was convertible to stock in last year
R&D expense 7,622,597,925.00 6,699,973,240.00 13.77% N/A
4. R&D Investments
√ Applicable □ Not applicable
Details about R&D input:
Item 2020 2019 Change (%)
Number of R&D personnel 19,694 19,617 0.39%
R&D personnel as % of total employees 25.76% 30.17% -4.41%
R&D investments (RMB) 9,441,596,318.00 8,748,156,031.00 7.93%
R&D investments as % of operating revenue 6.97% 7.54% -0.57%
Capitalized R&D investments (RMB) 1,939,420,807.00 2,048,182,791.00 -5.31%
Capitalized R&D investments as % of total R&D investments 20.54% 23.41% -2.87%
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2020 2019 Change (%)
Subtotal of cash generated from operating activities 169,593,756,177.00 145,523,323,441.00 16.54%
Subtotal of cash used in operating activities 130,341,982,719.00 119,440,244,247.00 9.13%
Net cash generated from/used in operating activities 39,251,773,458.00 26,083,079,194.00 50.49%
Subtotal of cash generated from investing activities 25,532,266,564.00 35,949,685,082.00 -28.98%
21
BOE Technology Group Co., Ltd. Annual Report 2020
Subtotal of cash used in investing activities 68,939,233,413.00 83,365,812,518.00 -17.31%
Net cash generated from/used in investing activities -43,406,966,849.00 -47,416,127,436.00 --
Subtotal of cash generated from financing activities 70,901,578,897.00 75,724,272,107.00 -6.37%
Subtotal of cash used in financing activities 47,083,848,940.00 47,945,626,777.00 -1.80%
Net cash generated from/used in financing activities 23,817,729,957.00 27,778,645,330.00 -14.26%
Net increase in cash and cash equivalents 17,794,414,798.00 6,919,625,053.00 157.16%
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
Net cash generated from operating activities increased 50.49% year on year, primarily driven by the expansion of the Company's
operating revenue and the improvement of operating results.
Reason for any big difference between the net cash generated from/used in operating activities and the net profit for this Reporting
Period
√ Applicable □Not applicable
The net cash generated from operating activities was higher than the net profit primarily because the depreciation amount of display
equipment is high.
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Item Amount As % of total profit Source/Reason Recurrent or not
Income recognized from associates and
Return on investment 897,891,109.00 14.74% Not
wealth management products
Gain/loss on changes in fair value 31,936,339.00 0.52% N/A Not
Inventory valuation allowances
Asset impairments -3,280,425,399.00 -53.84% Not
established based on market conditions
Non-operating income 120,503,628.00 1.98% N/A Not
Non-operating expense 72,139,666.00 1.18% N/A Not
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Indicate whether the Company has adopted the new accounting standards governing revenue and leases since 2020 and restated the
beginning amounts of relevant financial statement line items in the year.
Applicable.
22
BOE Technology Group Co., Ltd. Annual Report 2020
Unit: RMB
31 December 2020 1 January 2020 Change in
Item As a % of total As a % of percentage Reason for any significant change
Amount Amount
assets total assets (%)
Monetary assets 73,694,296,095.00 17.37% 56,972,723,239.00 16.73% 0.64% N/A
Accounts receivable 22,969,140,355.00 5.41% 18,107,976,861.00 5.32% 0.09% N/A
Inventories increased primarily driven by expanding operating revenue
Inventories 17,875,454,490.00 4.21% 12,396,194,762.00 3.64% 0.57%
and the changes to the consolidation scope in the Reporting Period.
Investment property 1,196,168,511.00 0.28% 1,241,242,850.00 0.36% -0.08% N/A
Long-term equity
3,693,170,224.00 0.87% 2,718,037,934.00 0.80% 0.07% N/A
investments
Fixed assets increased primarily driven by the reclassification of new
Fixed assets 224,866,586,069.00 53.00% 125,786,241,938.00 36.94% 16.06% constructions into fixed assets and the changes to the consolidation scope in
the Reporting Period.
Construction in progress decreased primarily driven by the reclassification
Construction in progress 42,575,849,952.00 10.04% 87,376,782,527.00 25.66% -15.62%
of new constructions into fixed assets in the Reporting Period.
Short-term borrowings 8,599,569,471.00 2.03% 6,366,717,121.00 1.87% 0.16% N/A
Long-term borrowings 132,452,767,135.00 31.22% 107,730,595,615.00 31.64% -0.42% N/A
Other payables increased primarily driven by the changes to the
Other payables 32,867,709,024.00 7.75% 24,570,589,610.00 7.22% 0.53% consolidation scope in the Reporting Period and a rise in payables for
engineering and equipment.
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
23
BOE Technology Group Co., Ltd. Annual Report 2020
Gain/loss on Cumulative Impairment
Purchased in the Sold in the
Item Beginning amount fair-value changes in fair-value changes allowance for the Other changes Ending amount
Reporting Period Reporting Period
the Reporting Period charged to equity Reporting Period
Financial assets
1. Held-for-trading
financial assets
5,809,184,994.00 31,936,339.00 98,409,419.00 0.00 13,937,058,793.00 15,379,041,954.00 0.00 4,367,201,833.00
(excluding derivative
financial assets)
2.Derivative financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
assets
3. Investments in other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
debt obligations
4. Investments in other
632,076,647.00 -35,969,241.00 -161,611,179.00 0.00 19,168,059.00 137,485,294.00 0.00 533,645,423.00
equity instruments
Subtotal of financial
6,441,261,641.00 -4,032,899.00 -63,201,760.00 0.00 13,956,226,852.00 15,516,527,248.00 0.00 4,900,847,256.00
assets
Investment property 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Productive living assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of the above 6,441,261,641.00 -4,032,899.00 -63,201,760.00 0.00 13,956,226,852.00 15,516,527,248.00 0.00 4,900,847,256.00
Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contents of other changes: N/A
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
24
BOE Technology Group Co., Ltd. Annual Report 2020
3. Restricted Asset Rights as at the Period-End
Item Ending carrying value Reason for restriction
Monetary assets 5,488,099,634.00 As pledge for guarantee and as security deposits
Discounted and transferred with right of recourse, Endorsed and transferred with right of
Notes receivable 60,214,157.00
recourse, as pledge for the issue of notes payable
Inventories 0.00 N/A
Fixed assets 168,972,932,363.00 As collateral for guarantee，Leaseback assets
Intangible assets 1,769,040,417.00 As collateral for guarantee
Construction in progress 21,137,162,080.00 As collateral for guarantee
Investment property 42,959,088.00 As collateral for guarantee
Accounts receivable 44,682,510.00 Factoring discounted with right of recourse
Total 197,515,090,249.00 --
V Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Investments made in this Reporting Period (RMB) Investments made in the prior year (RMB) Change (%)
933,268,059.00 123,621,675.00 654.94%
2. Significant Equity Investments Acquired in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
25
BOE Technology Group Co., Ltd. Annual Report 2020
Any
Progress Income/loss
The Type legal Date of
Way of Amount of Term of as of the Estimated in the Index to disclosed
Investee Principal activities Company’s Funding source Partner of matter disclosure
investment investment investment balance return current information (if any)
interest product involved (if any)
sheet date period
or not
R&D, manufacturing and
sales of TFT-LCD panels,
color filters and whole
24 Sept.,
liquid crystal modules;
Nanjing 20 Oct.,
provision of products and
CEC Panda 25 Nov.,
business-related services, Self and
FPD Acquisition 5,591,221,400.00 80.831% - - - Completed 0.00 0.00 Not 17 Dec., www.cninfo.com.cn
as well as other business externally-funded
Technology and 26
activities associated with
Co., Ltd. Dec.
the foregoing; proprietary
2020
and agency import and
export of various goods
and technologies
R&D, manufacturing and
sales of TFT-LCD panels
24 Sept.,
Chengdu and modules, LCD
1 Dec.,
CEC Panda monitors, TVs,
Capital Self and 18 Dec.,
Display instruments, machinery, 7,550,000,000.00 35.0348% - - - Completed 0.00 0.00 Not www.cninfo.com.cn
increase externally-funded and 25
Technology equipment and parts, and
Dec.
Co., Ltd. related technical services;
2020
import and export of
goods and technologies.
Total -- -- 13,141,221,400.00 -- -- -- -- -- -- 0.00 0.00 -- -- --
26
BOE Technology Group Co., Ltd. Annual Report 2020
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Profit/loss
on fair
Purchased Profit/loss in
Variety of Code of Name of Initial Accounting value Cumulative fair Sold in this Accounting Funding
Beginning in this this Ending
measurement changes value changes Reporting
securities securities securities investment cost carrying value Reporting Reporting carrying value title source
model in this charged to equity Period
Period Period
Reporting
Period
Other
Domestic/overseas Electronic Fair value equity
SH600658 90,160,428.00 72,585,692.00 0.00 -15,787,588.00 0.00 0.00 1,842,137.00 74,372,840.00 Self-funded
stock Zone method instrument
investment
Other
Domestic/overseas Bank of Fair value equity
HK01963 120,084,375.00 105,407,103.00 0.00 -17,238,707.00 0.00 0.00 5,804,204.00 102,845,668.00 Self-funded
stock Chongqing method instrument
investment
Other
Domestic/overseas China Fair value equity
HK06066 70,041,364.00 68,545,920.00 0.00 0.00 0.00 77,058,346.00 0.00 0.00 Self-funded
stock Securities method instrument
investment
Domestic/overseas New Fair value Other
HK01518 140,848,850.00 53,586,259.00 0.00 -103,853,337.00 0.00 0.00 0.00 36,995,513.00 Self-funded
stock Century method equity
27
BOE Technology Group Co., Ltd. Annual Report 2020
Healthcare instrument
investment
Total 421,135,017.00 -- 300,124,974.00 0.00 -136,879,632.00 0.00 77,058,346.00 7,646,341.00 214,214,021.00 -- --
Disclosure date of the announcement
about the board’s consent for the N/A
securities investment
Disclosure date of the announcement
about the general meeting’s consent for N/A
the securities investment (if any)
(2) Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Ending
investment Actual
Purchased
Relationship Related-party Initial Beginning Sold in the Impairment Ending amount gain/loss
in the
Counterparty with the transaction Type of derivative investment Start date End date investment Reporting allowance investment as % of the in the
Reporting
Company or not amount amount Period (if any) amount Company’s Reporting
Period
ending net Period
asset value
Financial Not related Foreign exchange
Not 78,133.44 1 Jan. 2020 31 Dec. 2020 78,133.44 137,123.01 96,568.52 - 118,687.93 0.68% 1,451.15
institutions parties forward contract
Total 78,133.44 -- -- 78,133.44 137,123.01 96,568.52 - 118,687.93 0.68% 1,451.15
Funding source Self-funded
Legal matters involved (if applicable) N/A
Analysis of risks and control measures associated with the As of the end of the reporting period, the financial derivatives held by the company are foreign exchange forward contracts, and the
28
BOE Technology Group Co., Ltd. Annual Report 2020
derivative investments held in the Reporting Period risks faced are related to the uncertainty of the foreign exchange market in the future. The company's control measures for the
(including but not limited to market, liquidity, credit, financial derivatives are as follows: the company controls the types of derivative transactions, reasonably matches the scale of
operational and legal risks, etc.) derivative transactions, and the transactions must match the company's production, operation and development planning, mainly for
the purpose of cost locking and risk prevention.
Changes in market prices or fair value of derivative
investments in the Reporting Period (fair value analysis The fair value of the invested derivatives at the end of the reporting period shall be determined by reference to the market quotation
should include measurement methods and related of the external financial institutions.
assumptions and parameters)
Significant changes in accounting policies and specific
accounting principles adopted for derivative investments in No major changes
the Reporting Period compared to the last reporting period
Opinion of independent directors on derivative investments
N/A
and risk control
5. Use of Funds Raised
√ Applicable □ Not applicable
(1) Overall Usage of Funds Raised
√ Applicable □ Not applicable
Unit: RMB’0,000
Total funds used Accumulative Proportion of Total The usage and Amount of funds
Total funds Accumulative Total funds with
Year Way of raising in the Current funds with accumulative funds unused destination of raised idle for
raised fund used usage changed
Period usage changed with usage changed funds unused funds over two years
2019 Renewable corporate bonds 800,000 50,130 795,600 0 0 0.00% 0 N/A 0
2020 Renewable corporate bonds 600,000 596,666 596,666 0 0 0.00% 0 N/A 0
Total -- 1,400,000 646,796 1,392,266 0 0 0.00% 0 -- 0
29
BOE Technology Group Co., Ltd. Annual Report 2020
Explanation of overall usage of funds raised
The cumulative amount of raised funds was RMB14,000,000,000, and the net proceeds after deducting issuance costs were RMB13,922,660,000, which was used to increase capital in
subsidiaries, repay debt and supplement working capital. In the Reporting Period, the raised funds were used according to project investment plans, conforming to the promise in the bond
offering prospectus.
30
BOE Technology Group Co., Ltd. Annual Report 2020
(2) Commitment Projects of Fund Raised
√ Applicable □ Not applicable
Unit: RMB’0,000
Accumulat
Investment Whether
Changed Investment Investment ive Date of Realized
schedule Whether occurred
Committed investment or not Committed amount amount in investment reaching income in
as the reached significant
project and super raise (including investment after the amount as intended the
period-end anticipated changes in
fund arrangement partial amount adjustment Reporting of the use of the Reporting
(3)＝ income project
changes) (1) Period period-end project Period
(2)/(1) feasibility
(2)
Committed investment project
Chengdu BOE
Optoelectronics Not 175,000 172,000 - 172,000 100.00% - - N/A Not
Technology Co., Ltd.
Mianyang BOE
Optoelectronics Co., Not 50,000 50,000 - 50,000 100.00% - - N/A Not
Ltd
Chongqing BOE
Display Technology Not 50,000 48,600 - 48,600 100.00% - - N/A Not
Co., Ltd.
Wuhan BOE
Optoelectronics Not 100,000 100,000 48,630 100,000 100.00% - - N/A Not
Technology Co., Ltd.
BOE Health
Investment Not 75,000 75,000 1,500 75,000 100.00% - - N/A Not
Management Co., Ltd.
Repayment of bank
Not 350,000 350,000 350,000 100.00% - - N/A Not
loan
Chengdu BOE
Optoelectronics Not 50,000 50,000 50,000 50,000 100.00% - - N/A Not
Technology Co., Ltd.
Mianyang BOE
Optoelectronics Co., Not 20,000 20,000 20,000 20,000 100.00% - - N/A Not
Ltd
Chongqing BOE
Display Technology Not 100,000 100,000 100,000 100,000 100.00% - - N/A Not
Co., Ltd.
Wuhan BOE
Not 30,000 28,900 28,900 28,900 100.00% - - N/A Not
Optoelectronics
31
BOE Technology Group Co., Ltd. Annual Report 2020
Technology Co., Ltd.
Chengdu BOE
Optoelectronics Not 30,000 30,000 30,000 30,000 100.00% - - N/A Not
Technology Co., Ltd.
Mianyang BOE
Optoelectronics Co., Not 30,000 30,000 30,000 30,000 100.00% - - N/A Not
Ltd
Chongqing BOE
Display Technology Not 60,000 60,000 60,000 60,000 100.00% - - N/A Not
Co., Ltd.
Wuhan BOE
Optoelectronics Not 50,000 50,000 50,000 50,000 100.00% - - N/A Not
Technology Co., Ltd.
BOE Health
Investment Not 30,000 28,878 28,878 28,878 100.00% - - N/A Not
Management Co., Ltd.
Chengdu BOE
Optoelectronics Not 20,000 20,000 20,000 20,000 100.00% - - N/A Not
Technology Co., Ltd.
Mianyang BOE
Optoelectronics Co., Not 80,000 80,000 80,000 80,000 100.00% - - N/A Not
Ltd
Wuhan BOE
Optoelectronics Not 30,000 30,000 30,000 30,000 100.00% - - N/A Not
Technology Co., Ltd.
BOE Health
Investment Not 50,000 50,000 50,000 50,000 100.00% - - N/A Not
Management Co., Ltd.
Supplementation of
Not 20,000 18,888 18,888 18,888 100.00% - - N/A Not
working capital
Subtotal of committed
-- 1,400,000 1,392,266 646,796 1,392,266 -- -- - -- --
investment project
Super raised funds arrangement
N/A
Total -- 1,400,000 1,392,266 646,796 1,392,266 -- -- - -- --
Condition and reason for
not reaching the schedule
No such cases in the Reporting Period.
and anticipated income
(by specific items)
32
BOE Technology Group Co., Ltd. Annual Report 2020
Notes of condition of
significant changes
Naught
occurred in project
feasibility
Amount, usage and
schedule of super raise N/A
fund
Changes in
implementation address of N/A
investment project
Adjustment of
implementation mode of N/A
investment project
Applicable
As of 31 December 2020, the Company swapped, with subsequent raised funds, a total of advance
Advance investments in
investments of RMB4,515 million in projects financed with raised funds. To be specific, the funds raised in
projects financed with
the first tranche of renewable corporate bonds of 2019 were swapped with advance investments of
raised funds and swaps of
RMB785 million, the funds raised in the first tranche of renewable corporate bonds of 2020 were swapped
such advance investments
with advance investments of RMB1,600 million, the funds raised in the second tranche of renewable
with subsequent raised
corporate bonds of 2020 were swapped with advance investments of RMB1,200 million, and the funds
funds
raised in the third tranche of renewable corporate bonds of 2020 were swapped with advance investments
of RMB930 million.
Idle fund supplementing
the current capital N/A
temporarily
Amount of surplus in Applicable
project implementation The total amount of raised funds was used up. As of 31 December 2020, the balance in the raised funds
and the reasons account was RMB10.5813 million, which were interest accrued.
Usage and destination of
Naught
unused funds
Problems incurred in fund
using and disclosure or Naught
other condition
(3) Changes in Items of Funds Raised
□ Applicable √ Not applicable
No such cases in the Reporting Period.
33
BOE Technology Group Co., Ltd. Annual Report 2020
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
34
BOE Technology Group Co., Ltd. Annual Report 2020
VII Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
Relationship
Name with the Principal activities Registered capital Total assets Net assets Operating revenue Operating profit Net profit
Company
Investment construction,
Fuzhou BOE
R&D, Production, and
Optoelectronics
Subsidiary sales of relevant products 17,600,000,000.00 30,407,333,280.00 17,809,446,805.00 12,252,638,949.00 701,953,345.00 652,955,131.00
Technology Co.,
of TFT-LCD and its
Ltd.
matching products.
Investment construction,
Hefei BOE
R&D, Production, and
Optoelectronics
Subsidiary sales of relevant products 9,000,000,000.00 20,627,969,062.00 14,397,418,136.00 11,831,116,284.00 2,243,141,730.00 1,945,010,307.00
Technology Co.,
of TFT-LCD and its
Ltd.
matching products.
R&D, Production, and
sales of semi-conductor
Chongqing BOE display device, complete
Optoelectronics machine, and relevant
Subsidiary 19,226,000,000.00 40,201,139,504.00 27,977,438,793.00 21,209,287,381.00 2,935,981,237.00 2,444,775,419.00
Technology Co., products; import and
Ltd. export business and
technology consulting of
goods.
Subsidiaries obtained or disposed in this Reporting Period
35
BOE Technology Group Co., Ltd. Annual Report 2020
√ Applicable □ Not applicable
Name of subsidiary How the subsidiary was acquired or disposed of Effects on the overall operations and performance
Nanjing CEC Panda FPD Technology Co., Ltd. Acquisition Solidifying leadership in the industry
Chengdu CEC Panda Display Technology Co., Ltd. Capital increase Solidifying leadership in the industry
Capital increase by other shareholder and revision of the
Hunan BOE Yiyun Technology Co., Ltd. No significant effects
articles of association
Beijing Asahi Electronic Materials Co., Ltd. Transferred by putting up for sale No significant effects
Other information on principal subsidiaries and joint stock companies:
N/A
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
36
BOE Technology Group Co., Ltd. Annual Report 2020
IX Prospects
1. Expansion of network of Smart System Innovation Centers
With the focus on cutting-edge technologies such as AI, big data and cloud computing, BOE Innovation Centers are dedicating to
building five platforms, namely technology development platform integrating software and hardware, new material and equipment
industry transformation platform, product and service marketing and display platform, international talent exchange and training
platform, and open technology and market cooperation platform, to develop the six products, namely, Intelligent Car Networking,
Smart Retail, Smart Finance, Smart Medicine and Engineering, Industrial IoT, and Smart City Public Service, and Digital Art. In
2020, BOE put into effect a plan to build three innovation centers in Qingdao, Chongqing and Chengdu, and the construction of
Chongqing and Chengdu innovation centers has commenced. In the future, the Company will advance the construction of smart
system innovation centers and build 10 to 15 innovation centers nationwide in five years. It will concentrate efforts to make
breakthroughs in technologies and products integrating software and hardware and dig deeper into IoT application scenarios with a
view to creating more innovative IoT products and solutions.
2. Outlook of the five businesses
Display business: To optimize LCD product structure and promote innovative transformation, BOE will promote coordinated
development of display devices and whole product business, steadily enhance the comprehensive competitiveness of the Display
industry, and continue to consolidate its leading position in the mainstream market. It will accelerate the enhancement of OLED
technology capabilities and customer structure optimization and establish and maintain the smart product ecosystem in cooperation
with customers. In adherence to the customer-centric principle, the Company will deepen the coordinated business development on
the basis of ensuring the quality performance of customers, integrate resources, advance digital transformation, and strengthen lean
management. All these are expected to achieve business breakthroughs.
Sensor and Solution business: BOE will continue to push forward innovative transformation and deepen the development of
medical imaging, biological testing, smart screens, microwave communications, and fingerprint recognition, to provide customers
with a wide range of high-performance products and services.
Mini-LED business: BOE will create a Mini/Micro-LED product group with active driver, COG as the core and coordinated
development of SMD/COB, strengthen the collaboration with upstream and downstream resources, constantly enrich product mix,
enhance product competitiveness, expand applications and expedite the development of business landscape in pursuit of the goal of
becoming a global leader in Mini/Micro-LED products and solutions.
Intelligence System and Innovation business: With the aim of creating industrial ecological chain platform for smart cities, BOE
will provide smart finance and park solutions to acquire strategic customers, quickly implement benchmark projects, step up
cooperation with ecological partners, and enhance brand influence. It will establish partnerships with regional channel companies,
and improve the sales channel system for large-sized products, tiled display screens and smart whole products to see fast expansion
in sales volume and market share of core products.
Smart Medical Engineering business: BOE will further optimize the overall business model for health management, accelerate the
R&D and transformation of smart terminal products, enhance the core competitiveness of digital hospitals, steadily carry out projects
such as Beijing Life Technology Industrial Base and Suzhou Hospital, and move faster to better closed-loop full-lifecycle health
services health management as the core, smart terminals as tools and digital hospitals as support.
37
BOE Technology Group Co., Ltd. Annual Report 2020
X Communications with the Investment Community such as Researches, Inquiries and
Interviews
1. During the Reporting Period
√ Applicable □ Not applicable
Main Index to
Type of
Way of discussions and the
the
Date Place communicatio Communication party materials relevant
communic
n provided by the informati
ation party
Company on
Company
2 January 2020 By phone Institution KB asset
Conference Room
Company
8 January 2020 One-site visit Institution Guotai Junan GJS Capital
Conference Room
Company Four institutions including
9 January 2020 By phone Institution
Conference Room CITC Securities
Company
9 January 2020 One-site visit Institution Morgan Stanley
Conference Room Main content:
China Southern Asset 1. Main
Company
10 January 2020 One-site visitt Institution Management, Founder situation of the
Conference Room
Securities industry;
Company Jinyang Union Asset 2. Major
10 January 2020 One-site visit Institution www.cnin
Conference Room Management operating
fo.com.cn
information of
JS Funds, Mega
the Company;
International Investment
Company Trust, TransGlobe Life 3. Technologies
15 January 2020 By phone Institution and product
Conference Room Insurance, Franklin Asset
Management, Jilifu, Capital innovation.
ITC
Company
15 January 2020 By phone Institution BlackRock Capital
Conference Room
Company Guotai Junan Securities,
16 January 2020 One-site visit Institution
Conference Room Lion Fund Management
Company Taikang Capital
16 January 2020 One-site visit Institution
Conference Room Management, GF Securities
Main content:
Institution
277 institutional and 1. Latest
Company s and www.cnin
4 February 2020 By phone individual investors operating status
Conference Room individual fo.com.cn
including Millennium of the Company;
s
2. Changes in
38
BOE Technology Group Co., Ltd. Annual Report 2020
supply and
demand in the
industry;
3. Health
segment of the
Company;
Company 237 institutions including
29 April 2020 By phone Institution
Conference Room Asia Lion Capital
Company GF Securities, GF Fund
13 May 2020 By phone Institution
Conference Room Management
Company
20 May 2020 By phone Institution Hermes Investment
Conference Room
Company 16 institutions including
26 May 2020 By phone Institution
Conference Room Cavalry
Company Bosera Asset Management,
28 May 2020 By phone Institution
Conference Room Cathay Securities
Company
29 May 2020 By phone Institution SIG
Conference Room Main content:
Company Artemis Investment 1. Performance
29 May 2020 By phone Institution
Conference Room Management results of the
Company and
Company BOCOM Schroders, Huatai
1 June 2020 By phone Institution main situation of
Conference Room Securities
the industry; www.cnin
China Southern Asset
Company 2. Major fo.com.cn
4 June 2020 By phone Institution Management, Tianfeng
Conference Room operating
Securities
information of
Company the Company;
5 June 2020 By phone Institution CITIC Securities
Conference Room 3. Technologies
Company and innovation.
8 June 2020 By phone Institution Ping An Annuity Insurance
Conference Room
Company
8 June 2020 One-site visit Institution Huaxi Securities
Conference Room
Company Manulife Asset
10 June 2020 By phone Institution
Conference Room Management
Company China Asset Management,
15 June 2020 By phone Institution
Conference Room CITIC Securities
Company Seven institutions including
16 June 2020 By phone Institution
Conference Room SinoPac Securities
Company First Seafront Fund,
17 June 2020 By phone Institution
Conference Room Guosheng Securities
39
BOE Technology Group Co., Ltd. Annual Report 2020
Company Invesco Great Wall,
18 June 2020 By phone Institution
Conference Room Changjiang Securities
Company Four institutions including
19 June 2020 By phone Institution
Conference Room Maplelane Capital LLC
Main content:
1. The
Company's
interim results in
2020 and main
situation of the
Technology
industry;
Innovation Center,
98 institutions including GF 2. Major www.cnin
1 September 2020 and Conference One-site visit Institution
Fund Management operating fo.com.cn
Room of the
information of
Company
the Company;
3. Technologies
and product
innovation;
4. Future
strategic layout.
Main content:
1. Main
situation of the
industry;
2. Major
operating
Company 327 institutions including www.cnin
24 September 2020 By phone Institution information of
Conference Room Essence Securities fo.com.cn
the Company;
3. The
Company's
participation in
industry
integration.
Main content:
1. Main
situation of the
industry;
Company Orient Securities Asset www.cnin
25 September 2020 By phone Institution 2. Major
Conference Room Management fo.com.cn
operating
information of
the Company;
3. Technologies
40
BOE Technology Group Co., Ltd. Annual Report 2020
and product
innovation;
4. Future
strategic layout.
Hefei 10.5G Line Main content:
Exhibition Hall, and One-site visit 246 institutions including 1. Performance
3 October 2020 Institution
Conference Room and by phone Changjiang Securities results of the
of the Company Company and
Company main situation of www.cnin
2 November 2020 By phone Institution GF Fund Management
Conference Room the industry; fo.com.cn
2. The
Company Company's
4 November 2020 By phone Institution Egerton Capital
Conference Room major operating
information.
Times of communications 35
Number of institutions communicated with 1,255
Number of individuals communicated with 11
Number of other communication parties 0
Tip-offs or leakages of substantial confidential information None
41
BOE Technology Group Co., Ltd. Annual Report 2020
Part V Significant Events
I Profit Distributions to Ordinary Shareholders (in the Form of Cash and/or Stock)
How the profit distribution policy, especially the cash dividend policy, for ordinary shareholders was formulated, executed or revised
in the Reporting Period:
□ Applicable √ Not applicable
The profit distributions to ordinary shareholders, either in the form of cash or stock, in the past three years (including the Reporting
Period) are summarized as follows:
For 2018, based on the total shares of 34,798,398,763, the Company distributed, with the undistributed profit, a cash dividend of
RMB0.30 (tax inclusive) per 10 shares to all its shareholders, with the total distributed amount reaching RMB1,043,951,962.89. And
no bonus share was granted, nor was any capital reserve converted into share capital.
For 2019, based on the total shares of 34,798,398,763, the Company distributed, with the undistributed profit, a cash dividend of
RMB0.20 (tax inclusive) per 10 shares to all its shareholders, with the total distributed amount reaching RMB695,967,975.26. And
no bonus share was granted, nor was any capital reserve converted into share capital.
For 2020, based on the total shares of 34,770,212,630 after the deduction of shares held through the special account for repurchase,
the Company planned to distribute, with the undistributed profit, a cash dividend of RMB1.00 (tax inclusive) per 10 shares to all its
shareholders, with the total distributed amount reaching RMB3,477,021,263. And no bonus share was granted, nor was any capital
reserve converted into share capital.
Cash dividend for ordinary shareholders in the past three years (including the Reporting Period):
Unit: RMB
Net profit
attributable to
ordinary Total cash
Cash dividends shareholders of Cash dividends dividends
A as % of B in other forms C as % of B D as % of B
Year (tax inclusive) the listed (including those
(%) (such as share (%) (%)
(A) company in repurchase) (C) in other forms)
consolidated (D)
statements for
the year (B)
2020 3,477,021,263.00 5,035,627,952.00 69.05% 1,998,774,693.72 39.86% 5,475,795,956.72 109.19%
2019 695,967,975.26 1,918,643,871.00 36.27% 0.00 0.00% 695,967,975.26 37.38%
2018 1,043,951,962.89 3,435,127,975.00 30.39% 0.00 0.00% 1,043,951,962.89 30.39%
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for the ordinary shareholders despite the
facts that the Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to the
ordinary shareholders are positive.
□ Applicable √ Not applicable
42
BOE Technology Group Co., Ltd. Annual Report 2020
II Final Dividend Plan for the Reporting Period
√ Applicable □ Not applicable
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 1.00
Total shares as the basis for the profit distribution proposal (share) 34,770,212,630
Cash dividends (RMB) (tax inclusive) 3,477,021,263.00
Cash dividends in other forms (such as share repurchase) (RMB) 1,998,774,693.72
Total cash dividends (including those in other forms) (RMB) 5,475,795,956.72
Attributable profit (RMB) 11,954,088,031.00
Total cash dividends (including those in other forms) as % of total profit distribution (%) 100%
Cash dividend policy adopted
If the Company is in a growth stage and has any plan for significant expenditure, in profit distribution, the proportion of cash dividends shall be 20% or above.
Details about the proposal for profit distribution and converting capital reserve into share capital
Based on the total shares of 34,770,212,630 after the deduction of shares held through the special account for repurchase, the Company planned to distribute, with the undistributed profit, a cash
dividend of RMB1.00 (tax inclusive) per 10 shares to all its shareholders. And no bonus share was granted, nor was any capital reserve converted into share capital. The said proposal is in
compliance with the Company’s Articles of Association and relevant approval procedure, and the independent directors have expressed their independent opinion on the proposal, which fully
protects the legal rights and interests of the minority investors.
III Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and other Entities
Fulfilled in the Reporting Period or Ongoing at the Period-end
√ Applicable □ Not applicable
43
BOE Technology Group Co., Ltd. Annual Report 2020
Date of
Type of Term of
Commitment Promisor Details of commitment commitment Fulfillment
commitment commitment
making
Commitments made - - - -
- -
in share reform
Commitments made - - - - - -
in acquisition
documents or
shareholding
alteration documents
Commitments made - - - - - -
in time of asset
restructuring
Commitments made - - - - - -
in time of IPO or
refinancing
Equity incentive - - - - - -
commitments
The Chairman of the Board: In accordance with the Announcement on the Commitments of not During the term
Mr. Chen Yanshun Reducing the Shareholding by Some Directors, Supervisors and Senior as director,
Vice Chairman of the Management (No.: 2020-001) disclosed by the Company on 22 supervisor or
Board: Mr. Liu Xiaodong February 2020, some of the Company’s directors, supervisors and senior manager,
Other commitments
Director: Ms. Sun Yun Other senior managers, based on their confidence in the Company’s future and in six months
made to minority 21 February 2020 Ongoing
and Mr. Gao Wenbao commitments development and their recognition of the corporate value, promise not after the
interests
Supervisor: Mr. Xu to reduce or transfer any shares held in BOE (A shares), not to entrust expiration of the
Yangping, Mr. He Daopin, others to manage specific shares, not to authorize others to execute term (the term
Mr. Yan Jun and Mr. Teng their voting right by means of any agreement, trust or other determined when
Jiao arrangements and not to require the Company to repurchase any taking office).
44
BOE Technology Group Co., Ltd. Annual Report 2020
Senior Management: Mr. specific shares during the terms of office and within 6 months after
Yao Xiangjun, Mr. Zhang their tenures expire so as to promote the Company’s continuous, stable
Zhaohong, Mr. Zhong and healthy development and maintain the rights and interests of the
Huifeng, Ms. Feng Liqiong, Company and all shareholders. For any newly-added shares derived
Mr. Xie Zhongdong, Mr. from the assignment of rights and interests including the share donation
Miao Chuanbin and Mr. Liu and the reserved funds converted into share capital during the period
Hongfeng (corresponding to the specific shares), they shall still keep their
promises till the commitment period expires.
Executed on time or
Yes
not
Specific reasons for
failing to fulfill
commitments on time N/A
and plans for next
step (if any)
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still within the forecast period, explain why the forecast
has been reached for the Reporting Period.
□ Applicable √ Not applicable
IV 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.
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent Directors (if any) Regarding the
Independent Auditor's “Modified Opinion” on the Financial Statements of the Reporting Period
□ Applicable √ Not applicable
45
BOE Technology Group Co., Ltd. Annual Report 2020
VI YoY Changes to Accounting Policies, Estimates and Methods
√ Applicable □ Not applicable
The Ministry of Finance amended and issued the Accounting Standards for Business Enterprises No. 14 - Revenues in 2017. The Group started to adopt the said standards on 1 January 2020 and
adjusted its accounting policies accordingly, which caused no significant impact on the Group's financial position and operating results.
The Ministry of Finance issued the Interpretation No. 13 of the Accounting Standards for Enterprises (C.K. [2019] No. 21) ("Interpretation No. 13") in 2019. The Group started to adopt
Interpretation No. 13 on 1 January 2020 and adjusted its accounting policies accordingly, which caused no significant impact on the Group's financial position and operating results.
The Ministry of Finance issued the Provisions on Accounting Processing of Rent Concessions Associated with the COVID-19 Pandemic (C.K. [2020] No. 10) in 2020. The Group started to
adopt the said Provisions on 24 June 2020 and could, pursuant to the Provisions, adjust relevant rent concessions that occurred between 1 January 2020 and the adoption date of the Provisions,
which caused no significant impact on the Group's financial position and operating results.
VII Retrospective Restatements due to Correction of Material Accounting Errors in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
46
BOE Technology Group Co., Ltd. Annual Report 2020
VIII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
Five new subsidiaries were established in the current period, including Hefei BOE Xingyu Technology Co., Ltd., BOE Educational
Technology Co., Ltd., Oriental Chengqi (Beijing) Business Technology Co., Ltd., BOE Innovation Investment Co., Ltd., and BOE
Smart Technology Co., Ltd. The Company holds a 43.40% interest in Hefei BOE Xingyu Technology Co., Ltd., with subscribed
shareholding of 65.00%, and the 100% in all the others.
Two subsidiaries were combined involving entities under different control during the year, namely Nanjing CEC Panda FPD
Technology Co., Ltd., with 80.831% shareholding and Chengdu CEC Panda Display Technology Co., Ltd., with 35.0348%
shareholding.
This year, Beijing Asahi Electronic Materials Co., Ltd. was disposed, with 100% shareholding at the beginning of the period and 0
shareholding at the end of the period.
This year, the control of one subsidiary was lost due to the capital increase of a other shareholders and amending the company's articles
of association.. The subsidiary was Hunan BOE Yiyun Technology Co., Ltd., with 95.92% shareholding at the beginning of the period
and 48.99% shareholding at the end of the period.
IX Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor KPMG Huazhen (LLP)
The Company’s payment to the domestic independent auditor
1,000
(RMB’0,000)
How many consecutive years the domestic independent auditor
16 years
has provided audit service for the Company
Names of the certified public accountants from the domestic
Zhanghuan and Chai Jing
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
from the domestic independent auditor have provided audit Zhanghuan 4 years and Chai Jing 2 years
service for the Company
Name of the foreign independent auditor (if any) N/A
The Company’s payment to the foreign independent auditor
0
(RMB’0,000) (if any)
How many consecutive years the foreign independent auditor has
N/A
provided audit service for the Company (if any)
Names of the certified public accountants from the foreign
independent auditor writing signatures on the auditor’s report N/A
(if any)
How many consecutive years the certified public accountants
from the foreign independent auditor have provided audit service N/A
for the Company (if any)
47
BOE Technology Group Co., Ltd. Annual Report 2020
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
□ Yes √ No
Independent auditor, financial advisor or sponsor engaged for internal control audit
√ Applicable □ Not applicable
During the year, the Company engaged KPMG Huazhen (LLP) as the Company's internal control audit accounting firm, and the
Company paid KPMG Huazhen (LLP) total compensation of RMB[10 million] for the 2020 annual audit and internal control audit.
During the Reporting Period, the Company engaged China Securities Co., Ltd. as an independent financial advisor for matters related
to the equity incentive, and paid a total financial advisory fee of RMB[450,000] during the period.
X Possibility of Delisting after Disclosure of this Report
□ Applicable √ Not applicable
48
BOE Technology Group Co., Ltd. Annual Report 2020
XI Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Major Legal Matters
√ Applicable □ Not applicable
Involved
Execution of Disclosure Index to disclosed
General information amount Provision Progress Decisions and effects
decisions date information
(RMB’0,000)
The judgment of the first The first instance judgment result: I. The On 24 December For details, see
instance has taken effect. defendant (LETV Mobile Intelligent 2020, the Beijing Interim Report 2017
29 August
BOE Technology (HK) Information Technology (Beijing) Co., Ltd.) No. 3 Intermediate of BOE Technology
2017;
Limited has submitted the shall pay the plaintiff (BOE Technology People's Court made Group Co., Ltd.,
24 April
Application for Execution to (HK) Limited) the owed principal an Application for 2017 Annual
2018;
Beijing Municipal High USD36,940,476.77 and the resulting Execution that Report, of BOE
Disputes case of sales contract that
People's Court. On 24 interests (regarding the principal LeTV Mobile 28 August Technology Group
BOE Technology (HK) Limited sued
December 2020, the Beijing USD12,871,274.5 as the interest basis from Intelligent 2018; Co., Ltd., Interim
LeTV Mobile Intelligent Information
No. 3 Intermediate People's 8 September 2016 to 1 March 2017, Information 26 March Report 2018 of BOE
Technology (Beijing) Co., Ltd, LeTV 28,471.43 No
Court made an Application USD12,144,001.77 from 2 March 2017 to Technology 2019; Technology Group
Holdings (Beijing) Co., Ltd., Le Sai
for Execution that LeTV the actual payment day, USD16,172,935 (Beijing) Co., Ltd, 27 August Co., Ltd., 2018
Mobile Technology (Beijing) Co.,
Mobile Intelligent from 13 October 2016 to the actual payment and LeTV Holdings 2019; Annual Report, of
Ltd. and Mr. JiaYueting
Information Technology day, USD8,488,690 from 10 November (Beijing) Co., Ltd. 28 April BOE Technology
(Beijing) Co., Ltd, and 2016 to the actual payment day, and had been included in 2020; Group Co., Ltd.,
LeTV Holdings (Beijing) US134,850 from 8 December 2016 to the the list of defaulters, Interim Report 2019
29 August
Co., Ltd. had been included actual payment day; the annual interest rate and the court ruled of BOE Technology
2020.
in the list of defaulters, and shall be 6% (365 days) ), as well as the to terminate this Group Co., Ltd.
the court ruled to terminate liquidated damages (regarding the principal enforcement 2019 Annual
49
BOE Technology Group Co., Ltd. Annual Report 2020
this enforcement because USD2,052,248.71 as the basis from 30 April because the Report, of BOE
the defaulters had no 2017 to 1 July 2017, USD2,052,248.71 defaulters had no Technology Group
property available for from May 31, 2017 to July 1, 2017, property available Co., Ltd., and
execution. USD2,052,248.71 from 30 June 2017 to 1 for execution. Interim Report 2020
July 2017, and USD36,940,476.77 from of BOE Technology
July 2, 2017 to the actual payment day; the Group Co., Ltd.,
penalty standard was 0.03% per day); under disclosed on
the Installment Payment Agreement within www.cninfo.com.cn.
10 days after the judgment took effect; II.
The defendant LETV Holdings (Beijing)
Co., Ltd. shall burden the joint and several
guarantee for the debt owed by LETV
Mobile Intelligent Information Technology
(Beijing) Co., Ltd. Defined in the judgment
(Item I); III. After the Defendant LETV
Holdings (Beijing) Co., Ltd. burdens the
joint and several guarantee related to Item
II, LETV Holdings (Beijing) Co., Ltd. shall
have the right to claim compensation from
LETV Mobile Intelligent Information
Technology (Beijing) Co., Ltd.; IV. The
defendant (LETV Mobile Intelligent
Information Technology (Beijing) Co., Ltd.)
shall pay the plaintiff (BOE Technology
(HK) Limited) the owed principal
USD2,459,090.91 and the resulting interests
(regarding the principal USD2,459,090.91
as the interest basis from 27 May 2017 to 19
August 2019 with the PBC’s benchmark
interest rate for loan during the same period
50
BOE Technology Group Co., Ltd. Annual Report 2020
as the standard; USD2,459,090.91 from 20
August 2019 to the actual payment day with
the quoted interest rate of the loan market
issued by the national inter-bank offer
center as the standard; the year shall have
365 days) under the Purchase Order with the
goods payment USD2.75 million; V. Other
claims of the plaintiff (BOE Technology
(HK) Limited) shall be rejected. If the
Defendant LETV Mobile Intelligent
Information Technology (Beijing) Co., Ltd.
and LETV Holdings (Beijing) Co., Ltd. fails
to fulfill their payment obligation as
scheduled in the judgment, the Defendant
shall pay the double debt interests during
the delayed period according to Article 253
of Civil Procedure Law of the People’s
Republic of China.
Litigations for 2020 (including
15,645.38 No N/A N/A N/A N/A
carryforwards in previous years )
XIII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV Credit Quality of the Company as well as Its Controlling Shareholder and Actual Controller
□ Applicable √ Not applicable
51
BOE Technology Group Co., Ltd. Annual Report 2020
XV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for Employees
√ Applicable □ Not applicable
The Company disclosed the Announcement on the Resolution of the 15th Meeting of the 9th Board of Directors (Announcement No.: 2020-047) and the 2020 Stock Option and Restricted Stock
Grant Program and other related announcements on 29 August 2020, in which the Company intends to implement the Equity Incentive Scheme, including both the Stock Option Incentive
Scheme and the Restricted Stock Incentive Scheme. The source of the stock is the Company's A-shares repurchased from the secondary market. The total stock options and restricted stock
incentive plan stock interests shall not exceed 981,150,000 shares, including 639,900,000 stock options and 341,250,000 restricted stock shares, representing approximately 2.82% of the total
34,798,398,763 shares of the Company's share capital at the time of the announcement of this draft incentive plan. On 30 October 2020, the Company received the Approval on the
Implementation of the Equity Incentive Scheme of BOE (J.G.Z. [2020] No. 77) from the State-owned Assets Supervision and Administration Commission of People's Government of Beijing
Municipality forwarded by Beijing Electronics Holding Co., Ltd, the actual controller, and the State-owned Assets Supervision and Administration Commission of People's Government of
Beijing Municipality approved in principle the implementation of this incentive plan by the Company. The Company disclosed the Announcement on the Adjustment of the List of Incentive
Subjects and the Number of Equities Granted under the 2020 Stock Option and Restricted Stock Incentive Scheme (Announcement No.: 2020-081) and the Announcement on the First Grant of
Stock Options and Restricted Shares to Incentive Subjects (Announcement No.: 2020-082) on 22 December 2020 to determine that the grant date/authorization date of the Incentive Scheme is
21 December 2020, and 596,229,700 stock options will be granted to 1,988 incentive recipients and 321,813,800 restricted shares will be granted to 793 incentive recipients. The Company
disclosed the Announcement on Completion of Registration of the First Grant of the 2020 Stock Option and Restricted Stock Incentive Scheme (Announcement No.: 2020-086) on 31 December
2020. The conditions for the grant under the Incentive Scheme of the Company have been fulfilled and the first registration of the grant has been completed. The completion date of the
registration of the first grant of options under the Stock Option Incentive Scheme was 25 December 2020. The option ticker was 037100 and the option ticker is Eastern JLC1; the listing date of
the restricted shares granted was 29 December 2020.
52
BOE Technology Group Co., Ltd. Annual Report 2020
XVI 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 public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on the Prediction of 2020 Annual Routine Connected Transaction 28 April 2020 www.cninfo.com.cn
Announcement on 16.67% of equity in BEHC Industrial Investment Co., Ltd. held and
24 July 2020 www.cninfo.com.cn
transferred by NAURA and Related-party Transactions
XVII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
53
BOE Technology Group Co., Ltd. Annual Report 2020
(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
(1) Guarantees
Unit: RMB'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Guarantee
Disclosure date of Actual Having for a
Line of Type of
Obligor the guarantee line Actual occurrence date guarantee Term of guarantee expired related
guarantee guarantee
announcement amount or not party or
not
N/A
Guarantees provided by the Company as the parent for its subsidiaries
Disclosure date of Actual Having Guarantee
Line of Type of
Obligor the guarantee line Actual occurrence date guarantee Term of guarantee expired for a
guarantee guarantee
announcement amount or not related
54
BOE Technology Group Co., Ltd. Annual Report 2020
party or
not
Hefei XinSheng Optoelectronics
14 August 2014 1,207,107 15 January 2015 174,946 Joint-liability 6 January 2014 to 6 January 2024 Not Not
Technology Co., Ltd.
Ordos YuanSheng Optoelectronics
30 November 2016 544,611 15 March 2017 192,273 Joint-liability 17 March 2017 to 17 March 2027 Not Not
Co., Ltd.
Chengdu BOE Optoelectronics
25 April 2017 2,234,178 30 August 2017 2,160,441 Joint-liability 6 September 2017 to 6 September 2029 Not Not
Technology Co., Ltd.
Chengdu BOE Optoelectronics Opening date of the letter of guarantee to 25
25 April 2017 450,000 31 July 2017 111,850 Joint-liability Not Not
Technology Co., Ltd. May 2027
Chongqing BOE Optoelectronics
14 August 2014 1,389,055 29 September 2014 392,416 Joint-liability 5 November 2014 to 5 November 2024 Not Not
Technology Co., Ltd.
Hefei BOE Display Technology Co.,
1 December 2016 1,630,103 30 August 2017 1,493,210 Joint-liability 7 September 2017 to 7 September 2027 Not Not
Ltd.
Fuzhou BOE Optoelectronics
10 December 2015 1,302,308 8 November 2016 820,671 Joint-liability 19 December 2016 to 19 December 2026 Not Not
Technology Co., Ltd.
Fuzhou BOE Optoelectronics Opening date of the letter of guarantee to 24
10 December 2015 300,000 8 November 2016 72,000 Joint-liability Not Not
Technology Co., Ltd. September 2025
Mianyang BOE Optoelectronics Co.,
18 May 2018 2,071,675 18 September 2018 1,878,176 Joint-liability 26 September 2018 to 26 September 2031 Not Not
Ltd.
Mianyang BOE Optoelectronics Co., Opening date of the letter of guarantee to 6
18 May 2018 460,000 22 June 2018 169,000 Joint-liability Not Not
Ltd. November 2027
Chongqing BOE Display Technology
28 April 2020 1,985,465 29 December 2020 508,187 Joint-liability 31 December 2020 to 31 December 2033 Not Not
Co., Ltd.
Wuhan BOE Optoelectronics Co.,
25 March 2019 1,962,423 16 August 2019 1,545,602 Joint-liability 23 August 2019 to 23 August 2032 Not Not
Ltd.
55
BOE Technology Group Co., Ltd. Annual Report 2020
Chengdu BOE Hospital Co., Ltd. 28 April 2020 240,000 15 June 2020 99,909 Joint-liability 15 June 2020 to 30 June 2042 Not Not
Chongqing BOE Display Technology
28 April 2020 370,000 N/A 0 Joint-liability Not signing the contract yet Not Not
Co., Ltd.
Total actual amount of such
Total approved line for such guarantees in the Reporting
2,595,465 guarantees in the Reporting 457,159
Period (B1)
Period (B2)
Total actual balance of such
Total approved line for such guarantees at the end of the
16,146,924 guarantees at the end of the 9,618,681
Reporting Period (B3)
Reporting Period (B4)
Guarantees provided between subsidiaries
Guarantee
Disclosure date of Actual Having for a
Line of Type of
Obligor the guarantee line Actual occurrence date guarantee Term of guarantee expired related
guarantee guarantee
announcement amount or not party or
not
Guangtai Solar Energy Technology
N/A 5,450 20 December 2017 4,087 Joint-liability 20 December 2017 to 6 April 2029 Not Not
(Suzhou) Co., Ltd.
Huanda Trading (Hebei) Co., Ltd. N/A 14,600 24 May 2017 9,297 Joint-liability 15 June 2017 to 16 March 2031 Not Not
Yangyuan Photovoltaic Power
N/A 3,800 30 September 2020 3,789 Joint-liability 30 September 2020 to 30 September 2034 Not Not
Generation (Huanggang) Co., Ltd.
Yaoguang New Energy (Shouguang)
N/A 3,600 30 September 2020 3,589 Joint-liability 30 September 2020 to 30 September 2034 Not Not
Co., Ltd.
Suzhou Industrial Park Taijing
N/A 2,800 30 September 2020 2,792 Joint-liability 30 September 2020 to 30 September 2034 Not Not
Photovoltaic Co., Ltd.
Qingmei Solar Energy Technology
N/A 3,300 30 September 2020 3,242 Joint-liability 30 September 2020 to 30 September 2034 Not Not
(Lishui) Co., Ltd.
56
BOE Technology Group Co., Ltd. Annual Report 2020
Qinghong Solar Energy Technology
N/A 1,700 30 September 2020 1,670 Joint-liability 30 September 2020 to 30 September 2034 Not Not
(Jinhua) Co., Ltd.
Qinghui Solar Energy Technology
N/A 1,100 30 September 2020 1,081 Joint-liability 30 September 2020 to 30 September 2034 Not Not
(Jinhua) Co., Ltd.
Hefei Hexu Technology Co., Ltd. N/A 400 30 September 2020 399 Joint-liability 30 September 2020 to 30 September 2034 Not Not
Hefei Chenneng Technology Co.,
N/A 800 30 September 2020 798 Joint-liability 30 September 2020 to 30 September 2034 Not Not
Ltd.
Rongke New Energy (Hefei) Co.,
N/A 1,400 18 December 2017 1,244 Joint-liability 18 December 2017 to 18 December 2032 Not Not
Ltd.
Tianchi New Energy (Hefei) Co., Ltd. N/A 1,100 18 December 2017 974 Joint-liability 18 December 2017 to 18 December 2032 Not Not
Qinghao Solar Energy Technology
N/A 890 18 December 2017 759 Joint-liability 18 December 2017 to 18 December 2032 Not Not
(Jinhua) Co., Ltd.
Xiangqing Solar Energy Technology
N/A 3,476 18 December 2017 2,518 Joint-liability 18 December 2017 to 18 December 2032 Not Not
(Dongyang) Co., Ltd
Qingyue Solar Energy Technology
N/A 960 18 December 2017 696 Joint-liability 18 December 2017 to 18 December 2032 Not Not
(Wuyi) Co., Ltd
Qingyou Solar Energy Technology
N/A 2,210 18 December 2017 1,907 Joint-liability 18 December 2017 to 18 December 2032 Not Not
(Longyou) Co., Ltd
Qingfan Solar Energy Technology
N/A 1,855 18 December 2017 1,343 Joint-liability 18 December 2017 to 18 December 2032 Not Not
(Quzhou) Co., Ltd
Anhui BOE Energy Investment Co.,
N/A 13,575 27 December 2017 11,589 Joint-liability 27 December 2017 to 27 December 2032 Not Not
Ltd
Taihang Electric Power Technology
N/A 300 3 December 2020 300 Joint-liability 3 December 2020 to 3 December 2034 Not Not
(Ningbo) Co., Ltd
Guoji Energy (Ningbo) Co., Ltd. N/A 1,800 3 December 2020 1,800 Joint-liability 3 December 2020 to 3 December 2034 Not Not
Hongyang Solar Energy Power N/A 2,500 3 December 2020 2,500 Joint-liability 3 December 2020 to 3 December 2034 Not Not
57
BOE Technology Group Co., Ltd. Annual Report 2020
Generation (Anji) Co., Ltd.
Ke’en Solar Energy Power
N/A 1,600 3 December 2020 1,600 Joint-liability 3 December 2020 to 3 December 2034 Not Not
Generation (Pingyang) Co., Ltd.
Dongze Photovoltaic Power
N/A 1,400 3 December 2020 1,400 Joint-liability 3 December 2020 to 3 December 2034 Not Not
Generation (Wenzhou) Co., Ltd.
Aifeisheng Investment and
N/A 700 3 December 2020 700 Joint-liability 3 December 2020 to3 December 2034 Not Not
Management (Wenzhou) Co, Ltd.
Beijing BOE Energy Technology Co.,
N/A 12,800 23 October 2017 12,530 Pledge 24 October 2017 to 23 October 2032 Not Not
Ltd.
Beijing BOE Energy Technology Co.,
N/A 20,560 15 August 2018 17,120 Pledge 26 September 2018 to 21 December 2032 Not Not
Ltd.
Beijing BOE Energy Technology Co.,
N/A 25,418 28 November 2017 22,618 Pledge 1 December 2017 to 1 December 2032 Not Not
Ltd.
Hengchuang New Energy
N/A 6,892 31 January 2018 5,845 Joint-liability 31 January 2018 to 31 January 2033 Not Not
Technology (Hong’an) Co., Ltd.
Anhui BOE Energy Investment Co.,
N/A 2,060 25 April 2018 1,841 Joint-liability 25 April 2018 to 25 April 2033 Not Not
Ltd.
Junlong New Energy Technology
N/A 8,459 25 April 2018 7,560 Joint-liability 25 April 2018 to 25 April 2033 Not Not
(Huaibin) Co., Ltd.
Shaoxing Guangnian New Energy
N/A 16,000 13 December 2018 15,872 Joint-liability 13 December 2018 to 12 December 2033 Not Not
Co., Ltd.
Shaoxing Xuhui New Energy Co.,
N/A 4,500 13 December 2018 4,464 Joint-liability 13 December 2018 to 12 December 2033 Not Not
Ltd.
Hefei BOE Hospital Co., Ltd. 27 April 2018 130,000 27 April 2018 104,100 Joint-liability 27 April 2018 to 27 April 2036 Not Not
Total approved line for such guarantees in the Reporting Total actual amount of such
0 -95,788
Period (C1) guarantees in the Reporting
58
BOE Technology Group Co., Ltd. Annual Report 2020
Period (C2)
Total actual balance of such
Total approved line for such guarantees at the end of the
298,005 guarantees at the end of the 252,024
Reporting Period (C3)
Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee amount
Total guarantee line approved in the Reporting Period
2,595,465 in the Reporting Period 361,371
(A1+B1+C1)
(A2+B2+C2)
Total actual guarantee balance
Total approved guarantee line at the end of the Reporting
16,444,929 at the end of the Reporting 9,870,705
Period (A3+B3+C3)
Period (A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 95.58%
Of which:
Balance of guarantees provided for shareholders, actual controller and their related parties (D) 0
Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset
39,119
ratio (E)
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 4,706,867
Total of the three amounts above (D+E+F) 4,706,867
Joint responsibilities possibly borne or already borne in the Reporting Period for undue guarantees (if
N/A
any)
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
Compound guarantees: none
(2) Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
59
BOE Technology Group Co., Ltd. Annual Report 2020
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overviews of cash entrusted for wealth management during the Reporting Period
Unit: RMB'0,000
Specific type Capital resources Amount incurred Undue balance Overdue amount
Bank financial products and structured deposit Self-owned funds 716,300 436,100 0
Total 716,300 436,100 0
Particulars of entrusted cash management with single significant amount or low security, bad liquidity, and no capital preservation
□ Applicable √ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for entrusted asset management
□ Applicable √ Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Continuing Major Contracts
□ Applicable √ Not applicable
60
BOE Technology Group Co., Ltd. Annual Report 2020
5. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVIII Corporate Social Responsibility (CSR)
1. Measures Taken to Fulfill CSR Commitment
BOE discloses its Corporate Social Responsibility Report every year. As of 2020, BOE had consecutively disclosed Social
Responsibility Report for 11 years. Please view and download such report via official website of BOE www.boe.com.
2. Measures Taken for Targeted Poverty Alleviation
(1) Plans
BOE actively responds to the national call for precise poverty alleviation, fully fulfills its corporate social responsibility, and actively
participates in poverty alleviation through education, health aid, and consumption. In terms of poverty alleviation through education,
BOE actively promotes education public welfare projects such as "Lighting the Way to Growth" and "Dream Space"; in terms of
poverty alleviation through health aid, BOE relies on its advantages and accumulation in Smart Medical Engineering business to
popularize medical and health knowledge and help poor patients with major diseases; in terms of poverty alleviation through
consumption, BOE actively promotes the establishment of long-term and stable cooperative relationships with its designated
poverty-stricken areas, achieving poverty alleviation in those areas through logistics procurement, employee consumption and other
forms.
(2) Summary of the Related Work Done in the Reporting Period
In 2020, BOE mainly worked in the fields of poverty alleviation through education, health aid, and consumption. In the field of poverty
alleviation through education, BOE mainly helped poor students and improved education resources in poverty-stricken areas through
donations of materials, and have carried out poverty alleviation projects such as "Lighting the Way to Growth", "Raindrop Program"
and "100,000+ Academic Support". In the field of poverty alleviation through health aid, in 2020, Hefei BOE Hospital donated RMB1
million to the Red Cross Society of Anhui to aid poverty-stricken patients with diseases such as congenital heart disease, tumor,
cataract, kidney failure, etc. In addition, BOE also carried out a series of voluntary medical checkups and medical services for remote
areas such as Tibet and Daliang Mountains in Sichuan to provide medical aid to local patients, and also to provide professional support
and assistance to local medical teams. In terms of poverty alleviation through consumption, RMB8,231,500 was invested to support the
circulation of products and income increase in poor areas through logistic procurement and employee consumption.
(3) Results
Indicator Measurement unit Quantity/Progress
I. General results —— ——
Of which: 1. Capital RMB’0,000 951.05
61
BOE Technology Group Co., Ltd. Annual Report 2020
2. Materials converted into cash RMB’0,000 8.7
II. Itemized results —— ——
1. Out of poverty by employment transfer —— ——
Of which: 1.1 Number of persons out of
Person 22
poverty which were helped to set up file card
2. Out of poverty by education —— ——
Of which: 2.1 Invested amounts to subsidize
RMB’0,000 23.5
poor students
2.2 Number of poor students
Person 313
subsidized
2.3 Invested amounts to improve
RMB’0,000 4.4
education resources in poverty-stricken area
3. Health poverty alleviation —— ——
Of which: 3.1 Investment in health resources
RMB’0,000 100
in poverty-stricken area
4. Other items —— ——
Of which: 4.1 Numbers of items Piece 2
4.2 Invested amounts RMB’0,000 823.15
(4) Subsequent Plans
In 2021, BOE will continuously carry forward the educational poverty alleviation project focused on “Light up Your Growth”,
carrying out education support, materials support, and voluntary activities, etc, taking the location of BOE production line as the
main place to carry out these activities and gradually expand coverage scale of projects; additionally, by relying on the advantages
and accumulation of smart medicine & engineering integration business, BOE will carry out projects on health poverty alleviation to
help poor patients and popularize medical and health knowledge and services; meanwhile, taking the BOE employees volunteers
system as the platform to continuously conduct activities of helping the poor and various donations.
3. Issues Related to Environmental 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 √ No
Yes
Distribut Discharge Excessi
Name of Number of Discharge Approved
Name of Way of ion of standards Total ve
major discharge concentratio total
polluter discharge discharg implemente discharge (t) discharg
pollutants outlets n discharge
e outlets d e
Beijing BOE COD Standard 1 Northwe 56mg/L 500mg/L 414.21t 828.418t None
62
BOE Technology Group Co., Ltd. Annual Report 2020
Optoelectroni emission after st corner
cs Technology being treated of
Co., Ltd. Ammonia by factory
3mg/L 45 mg/L 29.59t 59.173t
nitrogen sewage
treatment
system
The 4.5th
generation COD 205.55mg/L 500mg/L 217.1t 607.66t
Standard
TFT-LCD
emission after
production
being treated North
line of
by 1 side of None
Chengdu
Ammonia sewage factory
BOE 21.30mg/L 45mg/L 22.50t 54.69t
nitrogen treatment
Optoelectroni
system
cs Technology
Co., Ltd.
COD Standard 38.133mg/L 380mg/L 138.9t 1081.55t
emission after
Hefei BOE Northwe
being treated
Optoelectroni st corner
Ammonia by 1 None
cs Technology of 1.898mg/L 30mg/L 6.85t 101.23t
nitrogen sewage
Co., Ltd. factory
treatment
system
COD 1(main 173.17mg/L 500mg/l 1090.15t 1618.8t
East
Standard discharge
Ammonia gate of
emission after outlet of 12.88mg/L 45mg/l 79.17t 134.4t
Beijing BOE nitrogen factory
being treated wastewater)
Display
COD by 1(S2 Phase II 43.92mg/L 500mg/l 6.61t 60.57t None
Technology South
sewage discharge
Co., Ltd. gate of
Ammonia treatment outlet of
dormitor 12.43mg/L 45mg/l 1.90t 6.06t
nitrogen system sanitary
y area
sewage)
COD Standard 62.96mg/L 380mg/L 342.168t 3383.54t
Hefei emission after
Xinsheng being treated Northeas
Optoelectroni Ammonia by 1 t gate of None
cs Technology nitrogen sewage factory 18.27mg/L 30mg/L 99.31t 267.12t
Co., Ltd. treatment
system
Erdos COD Standard North 50.09mg/L 500mg/l 71.24t 713.81t
Yuansheng Ammonia emission after 1 side of None
1.29mg/L - 1.67t 76.82t
Optoelectroni nitrogen being treated factory
63
BOE Technology Group Co., Ltd. Annual Report 2020
cs Co., Ltd. by
sewage
treatment
system
The 6th
generation COD 47.6mg/L 500mg/L 158.37t 9590.40 t
flexible Standard
AMOLED emission after
production being treated North
line of by 1 side of None
Chengdu Ammonia sewage factory
BOE 1.85mg/L 45 mg/L 8.921t 863.14t
nitrogen treatment
Optoelectroni system
cs Technology
Co., Ltd.
COD Standard 101.19mg/L 400mg/L 490.00t 1900.24t
Chongqing emission after
BOE being treated South
Optoelectroni Ammonia by 1 side of None
4.03mg/L 30 mg/L 19.49t 146.17t
cs Technology nitrogen sewage factory
Co., Ltd. treatment
system
COD Standard 82mg/L 400mg/L 708.657t 1189.88t
emission after
Hefei BOE
being treated North
Display
Ammonia by 1 side of None
Technology 11.63mg/L 35mg/L 102.668t 118.98t
nitrogen sewage factory
Co., Ltd.
treatment
system
COD Standard 112.87mg/L 500mg/L 84.03t 510.35t
emission after
Fuzhou BOE
being treated Northeas
Optoelectroni
Ammonia by 1 t side of None
cs Technology 7.11 mg/L 45mg/L 1.57t 68.05t
nitrogen sewage factory
Co., Ltd.
treatment
system
COD Standard 35.02mg/L 500mg/L 140.55t 6911.4t
Mianyang
emission after
BOE North
being treated
Optoelectroni Ammonia 1 side of None
by 3.02mg/L 45 mg/L 11.987t 364.68t
cs Technology nitrogen factory
sewage
Co., Ltd.
treatment
64
BOE Technology Group Co., Ltd. Annual Report 2020
system
COD Standard 39.3mg/L 500mg/L 0.24t 11.114t
emission after
BOE Northwe
being treated
Technology st corner
Ammonia by 1 None
Group Co., of 6.8mg/L 45mg/L 0.042t 0.341t
nitrogen sewage
Ltd. factory
treatment
system
COD Southeas 13.25mg/L 500mg/L 0.195t 13.554t
Discharged
BOE (Heibei) t side of
Ammonia into sewage
Mobile 0.133mg/L 45mg/L 0.002t 1.01t
nitrogen treatment factory
Display 2 None
COD plant through 151mg/L 500mg/L 7.213t 74.937t
Technology North
municipal
Co., Ltd. Ammonia side of
pipes 9.8mg/L 45mg/L 0.714t 6.744t
nitrogen factory
Construction of pollution prevention equipment and operation condition
During the Reporting Period, the Company did not have any serious environmental problems. The Company builds sound
environment management systems and establishes the environment management organizations to supervise the overall environment
performance of the Company, work out the environment management objectives and related systems, conduct regular supervision
and instruction for the environment management of subordinate companies and push forward the implementation of environment
management.
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 system 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
65
BOE Technology Group Co., Ltd. Annual Report 2020
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 requirements of local environmental protection bureaus. 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.
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
XIX Other Significant Events
√ Applicable □ Not applicable
1. On 18 October 2019, the Company disclosed the Announcement on the Company’s Application for CSRC’s Approval for its Public
Issue of Renewable Corporate Bonds (Announcement No. 2019-052), and the Company received the No. [2019] 1801 Approval from
CSRC. Based on the approval, the Company could publicly issue the renewable corporate bonds with the nominal value no more than
RMB30 billion to qualified investors. The Company publicly issued renewable corporate bonds (to qualified investors) (the first issue)
(“19BOEY1” for short; Code: 112741) in 2019 with the issue term from 28 October 2019 to 29 October 2019, the issuing scale of
RMB8 billion and the bonds’ ultimate nominal interest rate of 4.0%. The Company publicly issued renewable corporate bonds (to
qualified investors) (the first issue) (epidemic prevention and control bonds) (“20BOEY1” for short; Code: 149046) in 2020 with the
issue term from 27 February 2020 to 28 February 2020, the issuing scale of RMB2 billion and the bonds’ ultimate nominal interest of
3.64%. The Company publicly issued the renewable corporate bonds (to qualified investors) (the second issue) (epidemic prevention
and control bonds) (“20BOEY2” for short; Code: 149065) in 2020 with the issue term from 18 March 2020 to 19 March 2020, the
issuing scale of RMB2 billion and the bonds’ ultimate nominal interest of 3.54%. The Company publicly issued the renewable
corporate bonds (to qualified investors) (the third issue) (epidemic prevention and control bonds) (“20BOEY3” for short; Code: 149108)
in 2020 with the issue term from 24 April 2020 to 27 April 2020, the issuing scale of RMB2 billion and the bonds’ ultimate nominal
interest of 3.50%.The Company disclosed 2020 "19BOEY1" Interest Payment Announcement (Announcement No. 2020-065) on 22
66
BOE Technology Group Co., Ltd. Annual Report 2020
October 2020. BOE Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the First Issue) in 2019 was one year
old until 29 October 2020. According to the regulations, interest will be paid once a year during the interest-bearing period. The
interest payment plan is RMB40.00 (including tax) per 10 bonds. The Company disclosed 2021 "20BOEY1" Interest Payment
Announcement (Announcement No. 2021-016) on 23 February 2021. BOE Public Issuance of Renewable Corporate Bonds (to
Qualified Investors) (the First Issue) (epidemic prevention and control bonds) in 2020 was one year old until 27 February 2021.
According to the regulations, interest will be paid once a year during the interest-bearing period. The interest payment plan is
RMB36.40 (including tax) per 10 bonds. The Company disclosed 2021 "20BOEY2" Interest Payment Announcement (Announcement
No. 2021-018) on 17 March 2021. BOE Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the Second Issue)
(pandemic prevention and control bonds) in 2020 was one year old until 18 March 2021. According to the regulations, interest will
be paid once a year during the interest-bearing period. The interest payment plan is RMB35.40 (including tax) per 10 bonds.
2. The Company’s wholly-owned subsidiary BOE Technology (HK) Limited filed a lawsuit on the sales contract dispute to the superior
people’s court in Beijing, and the defendants included LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.
(hereinafter referred to as “LETV Mobile”), LETV Holdings (Beijing) Co., Ltd., Le Sai Mobile Technology (Beijing) Co., Ltd. and Jia
Yueting with the claimed amount of USD41.84 million in total. However, Beijing Municipal Superior People’s Court respectively
issued the Notice of Acceptance and the Civil Ruling Paper on Property Preservation on July 6, 2017 and July 31, 2017. LETV Mobile
ever put forward the jurisdiction objection to Beijing Municipal Superior People’s Court, which was rejected, and then launched a
lawsuit on the judgment of the jurisdiction objection to the Supreme People’s Court. Finally, the Supreme People’s Court made the
final ruling, rejected the appeal of LETV Mobile and affirmed the original judgment. On 8 March 2019, the first hearing was held in
Beijing Municipal Superior People’s Court. On 19 February 2020, Beijing Municipal Superior People’s Court issued the first instance
judgment:
(1) The defendant (LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.) shall pay the plaintiff (BOE Technology (HK)
Limited) the owed principal USD36,940,476.77 and the resulting interests (regarding the principal USD12,871,274.5 as the interest
basis from 8 September 2016 to 1 March 2017, USD12,144,001.77 from 2 March 2017 to the actual payment day, USD16,172,935
from October 13, 2016 to the actual payment day, USD8,488,690 from November 10, 2016 to the actual payment day, and US134,850
from 8 December 2016 to the actual payment day; the annual interest rate shall be 6% (365 days)), as well as the liquidated damages
(regarding the principal USD2,052,248.71 as the basis from 30 April 2017 to 1 July 2017, USD2,052,248.71 from 31 May 2017 to 1
July 2017, USD2,052,248.71 from 30 June 2017 to 1 July 2017, and USD36,940,476.77 from 2 July 2017 to the actual payment day;
the penalty standard was 0.03% per day); under the Installment Payment Agreement within 10 days after the judgment took effect;
(2) The defendant LETV Holdings (Beijing) Co., Ltd. shall burden the joint and several guarantee for the debt owed by LETV Mobile
Intelligent Information Technology (Beijing) Co., Ltd. Defined in the judgment (Item I);
(3) After the Defendant LETV Holdings (Beijing) Co., Ltd. burdens the joint and several guarantee related to Item II, LETV Holdings
(Beijing) Co., Ltd. shall have the right to claim compensation from LETV Mobile Intelligent Information Technology (Beijing) Co.,
Ltd.;
(4) The defendant(LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.) shall pay the plaintiff (BOE Technology (HK)
Limited) the owed principal USD2,459,090.91 and the resulting interests (regarding the principal USD2,459,090.91 as the interest
basis from 27 May 2017 to 19 August 2019 with the PBC’s benchmark interest rate for loan during the same period as the standard;
USD2,459,090.91 from August 20, 2019 to the actual payment day with the quoted interest rate of the loan market issued by the
national inter-bank offer center as the standard; the year shall have 365 days) under the Purchase Order with the goods payment
USD2.75 million;
(5) Other claims of the plaintiff (BOE Technology (HK) Limited) shall be rejected.
If the defendant LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. and LETV Holdings (Beijing) Co., Ltd. fails to
fulfill their payment obligation as scheduled in the judgment, the Defendant shall pay the double debt interests during the delayed
period according to Article 253 of Civil Procedure Law of the People’s Republic of China.
67
BOE Technology Group Co., Ltd. Annual Report 2020
The litigation fee was RMB1,465,371.63, of which, RMB5,371.63 shall be paid by the plaintiff BOE Technology (HK) Limited
(already paid), and RMB1.46 million shall be jointly burdened by LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd.
and LETV Holdings (Beijing) Co., Ltd. (payment within 7 days after the judgment took effect); the preservation fee was RMB5000,
which shall be jointly burdened by LETV Mobile Intelligent Information Technology (Beijing) Co., Ltd. and LETV Holdings (Beijing)
Co., Ltd. (payment within 7 days after the judgment took effect).
On 17 March 2020, BOE Technology (HK) Limited received the petition for appeal submitted by LETV Holdings (Beijing) Co., Ltd. to
the court. LETV Holdings (Beijing) Co., Ltd. failed to pay the fee for the appeal it had instituted. The Supreme People’s Court made the
judgment that the case was treated as that the appellant LeTV Holdings (Beijing) Co., Ltd. automatically withdrew the appeal on 8 July
2020. And the judgment of the first instance will take effect since the date when the written order is served. BOE Technology (HK)
Limited has submitted the Application for Execution to Beijing High People’s Court and the court has accepted the execution
application. On 24 December 2020, the Beijing No. 3 Intermediate People's Court made an Application for Execution that LeTV
Mobile Intelligent Information Technology (Beijing) Co., Ltd, and LeTV Holdings (Beijing) Co., Ltd. had been included in the list of
defaulters, and the court ruled to terminate this enforcement because the defaulters had no property available for execution. The
Company has calculated corresponding bad-debt provision for the account receivables equaling the above-mentioned claimed amount
according to the accounting standards, which has uncertain influence on the Company.
3. On 10 April 2020, the Company disclosed the Suggestive Announcement on Shareholders’ Equity Changes (Announcement No.:
2020-014) and the Short Form of Report on Shareholders’ Equity Changes. According to the disclosure, the Company’s shareholder
Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. reduced its shareholding of the Company’s unrestricted tradable A
shares by 280,814,800 shares, accounting for 0.0807% of the Company’s total share capital, by means of block trade through the
trading system of Shenzhen Stock Exchange. After the reduction, the shares held of the Company by Chongqing Ezcapital
Opto-electronics Industry Investment Co., Ltd. account for about 4.9999997% of the Company’s total share capital, making it no longer
a shareholder holding more than 5% of the Company’s shares.
4. On 22 April 2020, the Company disclosed the Shareholders’ Announcement on Reducing More than 1% of the Company’s Shares
(Announcement No.: 2020-017), Suggestive Announcement on Shareholders’ Equity Changes (Announcement No.: 2020-018) and the
Short Form of Report on Shareholders’ Equity Changes. According to the disclosure, the Company’s shareholder Hefei Jianxiang
Investment Co., Ltd. gratuitously transferred to Hefei Jianxin Investment Co., Ltd. 800 million shares of unrestricted tradable A shares
it held of the Company (accounting for 2.30% of the Company’s total share capital). After the gratuitous transfer, the shares held of the
Company by Hefei Jianxiang Investment Co., Ltd. account for 4.91% of the Company’s total share capital, making it no longer a
shareholder holding more than 5% of the Company’s shares.
5. On 28 April 2020, the Company disclosed the Announcement on the Resolution of the Tenth Meeting of the Ninth Session of the
Board of Directors (Announcement No.: 2020-026) and the Announcement on the Departure of an Independent Director at Tenure
Expiration and the Selection of a Replacement Independent Director (Announcement No.: 2020-034). According to the disclosure, Mr.
Lv Tingjie applied for departing from his position as Independent Director of the Company and other positions in related committees
under the Board due to the expiration of his tenure as Independent Director. At the Tenth Meeting of the Ninth Session of the Board of
Directors, the Company considered and approved the Proposal on Selecting Mr. Tang Shoulian as an Independent Director of the Ninth
Session of the Board of Directors, and nominated Mr. Tang Shoulian as a candidate for Independent Director of the Ninth Session of the
Board of Directors. On May 30, 2020, the Company disclosed the Announcement on the Resolution of the Annual General Meeting of
2020 (Announcement No.: 2020-039). At the meeting, the Proposal on Selecting Mr. Tang Shoulian as an Independent Director of the
Ninth Session of the Board of Directors was considered and approved. Mr. Tang Shoulian has been selected as an Independent Director
of the Ninth Session of the Board of Directors of the Company.
Index to disclosure website
Overview of significant events Disclosure date
for interim report
Announcement on Investment in the Suzhou BOE Hospital 29 June 2020 www.cninfo.com.cn
68
BOE Technology Group Co., Ltd. Annual Report 2020
Announcement on Construction of BOE (Chongqing) Smart System Innovation
29 June 2020 www.cninfo.com.cn
Center via Investment
Announcement on Construction of BOE (Chengdu) Smart System Innovation
29 June 2020 www.cninfo.com.cn
Center via Investment
Announcement on the 16.67% of Equity in BEHC Industrial Investment Co., Ltd.
24 July 2020 www.cninfo.com.cn
Held by NAURA
Announcement on Intention to Purchasing Some Equity in Nanjing Cec Panda
24 September 2020 www.cninfo.com.cn
Fpd Technology Co., Ltd. and Chengdu Cec Panda Display Technology Co., Ltd.
20 October 2020;
Announcement on Progress of Purchasing Some Equity in Nanjing Cec Panda 25 November 2020;
www.cninfo.com.cn
Fpd Technology Co., Ltd. 17 December 2020;
26 December 2020
Announcement on 100% of Equity in Beijing Asahi Electronic Materials Co.,
4 November 2020 www.cninfo.com.cn
Ltd. Listed for Transfer
Announcement on Capital Increase in Chengdu Cec Panda Display Technology
1 December 2020 www.cninfo.com.cn
Co., Ltd.
Announcement on Progress of 100% of Equity in Beijing Asahi Electronic 5 December 2020;
www.cninfo.com.cn
Materials Co., Ltd. Listed for Transfer 24 December 2020
Announcement on Progress of Capital Increase in Chengdu Cec Panda Display 18 December 2020;
www.cninfo.com.cn
Technology Co., Ltd. 25 December 2020
XX Significant Events of Subsidiaries
□ Applicable √ Not applicable
69
BOE Technology Group Co., Ltd. Annual Report 2020
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Item Bonus Bonus issue
Number Percentage New issues Other Subtotal Number Percentage
shares from profit
I. Restricted shares 1,724,761 0.00% 0 0 0 323,620,850 323,620,850 325,345,611 0.93%
1. Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-owned corporations 0 0.00% 0 0 0 0 0 0 0.00%
3. Shares held by other domestic investors 1,724,761 0.00% 0 0 0 295,639,650 295,639,650 297,364,411 0.85%
Among which: Shares held by domestic
0 0.00% 0 0 0 0 0 0 0.00%
corporations
Shares held by domestic
1,724,761 0.00% 0 0 0 295,639,650 295,639,650 297,364,411 0.85%
individuals
4. Shares held by foreign investors 0 0.00% 0 0 0 27,981,200 27,981,200 27,981,200 0.08%
Among which: Shares held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
corporations
Shares held by foreign
0 0.00% 0 0 0 27,981,200 27,981,200 27,981,200 0.08%
individuals
II. Non-restricted shares 34,796,674,002 100.00% 0 0 0 -323,620,850 -323,620,850 34,473,053,152 99.07%
70
BOE Technology Group Co., Ltd. Annual Report 2020
1. RMB ordinary shares 33,860,560,514 97.30% 0 0 0 -323,620,850 -323,620,850 33,536,939,664 96.37%
2. Domestically listed foreign shares 936,113,488 2.69% 0 0 0 0 0 936,113,488 2.69%
3. Overseas listed foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 34,798,398,763 100.00% 0 0 0 0 0 34,798,398,763 100.00%
Reasons for share changes:
√ Applicable □ Not applicable
During the Reporting Period, the executives of the Company increased their holding of the Company's shares by 2,409,400 shares, resulting in an increase of 1,807,050 shares in the locked-up
shares of the executives. During the Reporting Period, the Company completed the grant of a total of 321,813,800 restricted shares under the 2020 Stock Option and Restricted Stock Incentive
Scheme, resulting in an increase of 321,813,800 restricted shares of the Company's equity incentive. The total number of restricted shares increased by 323,620,850 shares during the Reporting
Period.
Approval of share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchase:
√ Applicable □ Not applicable
The Company first implemented the share repurchase on 2 September 2020 and disclosed the relevant progress during the repurchase in accordance with the requirements of relevant laws and
regulations (for details, please refer to the Announcement on the First Repurchase of Some Public Shares disclosed on the cninfo website on 3 September 2020, Announcement No. 2020-056).
As at 3 September 2020, the Company has implemented the repurchase of the Company's shares by means of centralized bidding through a special securities account for the repurchase, and the
cumulative number of A-shares repurchased was 349,999,933, accounting for approximately 1.03% of the Company's A-shares and 1.01% of the Company's total share capital, with the highest
transaction price of RMB5.79 per share and the lowest transaction price of RMB5.54 per share. The total amount paid was RMB1,998,774,693.72 (including other fixed fees such as
commissions). So far, the number of shares repurchased has reached the cap of shares under the repurchase scheme and the implementation of the share repurchase scheme has been completed.
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:
71
BOE Technology Group Co., Ltd. Annual Report 2020
√ Applicable □ Not applicable
Item January-December 2020
Basic earnings per share (RMB/share) 0.13
Diluted earnings per share (RMB/share) 0.13
Item 31 December 2020
Equity per share attributable to the Company’s ordinary shareholders 2.56
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
72
BOE Technology Group Co., Ltd. Annual Report 2020
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: Share
Restricted shares amount Restricted shares Restricted shares relieved Restricted shares amount Restricted shares
Name of the shareholders Restricted reasons
at the period-begin increased of the period of the period at the period-end relieved date
Shares locked by senior Shareholding increase by
1,724,761 1,807,050 0 3,531,811 -
executives senior executives
Restricted shares for equity
0 321,813,800 0 321,813,800 Grant for equity incentive -
incentive
Total 1,724,761 323,620,850 0 325,345,611 -- --
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
√ Applicable □ Not applicable
Approved
Name of Stock and derivative issue price Issue Termination date for
Issue date Listing date amount for Disclosure index Disclosure date
securities thereof (interest) amount trading
listing
Stock
None
Convertible corporate bonds, convertible corporate bonds separately traded and corporate bonds
2020 Public Offering of Renewable Refer to the Listing
Corporate Bonds of BOE (for Memorandum of 2020
27 February 2020 3.64% 200,000 12 March 2020 200,000 28 February 2023 12 March 2020
qualified investors) (Phase I) Public Offering of
(epidemic prevention and control Renewable Corporate
73
BOE Technology Group Co., Ltd. Annual Report 2020
bonds) Bonds of BOE (for
qualified investors)
(Phase I) (epidemic
prevention and control
bonds) disclosed on
www.cninfo.com.cn for
details
Refer to the Listing
Memorandum of 2020
Public Offering of
2020 Public Offering of Renewable Renewable Corporate
Corporate Bonds of BOE (for Bonds of BOE (for
qualified investors) (Phase II) 18 March 2020 3.54% 200,000 3 April 2020 200,000 19 March 2023 qualified investors) 3 April 2020
(epidemic prevention and control (Phase II) (epidemic
bonds) prevention and control
bonds) disclosed on
www.cninfo.com.cn for
details
Refer to the Listing
Memorandum of 2020
Public Offering of
2020 Public Offering of Renewable Renewable Corporate
Corporate Bonds of BOE (for Bonds of BOE (for
qualified investors) (Phase III) 24 April 2020 3.50% 200,000 12 May 2020 200,000 27 April 2023 qualified investors) 12 May 2020
(epidemic prevention and control (Phase III) (epidemic
bonds) prevention and control
bonds) disclosed on
www.cninfo.com.cn for
details
74
BOE Technology Group Co., Ltd. Annual Report 2020
Other derivative securities
None
Note: none
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
□ Applicable √ Not applicable
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
Unit: share
Number of ordinary
Number of ordinary shareholders 1,012,008 (including 973,560 A-shareholders and 38,448 shareholders at the 1,329,925 （ including 1,292,791 A-shareholders and
at the Period-end B-shareholders) month-end prior to the 37,134 B-shareholders）
disclosure of this Report
5% or greater shareholders or top 10 shareholders
Shares in pledge or
Nature of Shareholding Total shares held at the Increase/decrease in the Restricted shares Unrestricted shares
Name of shareholder frozen
shareholder percentage period-end Reporting Period held held
Status Shares
Beijing State-owned Capital Operation and State-owned legal
11.68% 4,063,333,333 0 0 4,063,333,333 N/A 0
Management Center person
Hong Kong Securities Clearing Company Foreign legal person 5.88% 2,047,015,619 718,680,014 0 2,047,015,619 N/A 0
75
BOE Technology Group Co., Ltd. Annual Report 2020
Ltd.
Beijing BOE Investment & Development State-owned legal
2.36% 822,092,180 0 0 822,092,180 N/A 0
Co., Ltd. person
State-owned legal
Hefei Jianxin Investment Co., Ltd. 2.30% 800,000,000 800,000,000 0 800,000,000 N/A 0
person
State-owned legal
Hefei Jianxiang Investment Co., Ltd. 2.10% 730,885,417 -1,779,257,536 0 730,885,417 N/A 0
person
Chongqing Ezcapital Opto-electronics State-owned legal
1.93% 669,956,235 -1,350,778,406 0 669,956,235 N/A 0
Industry Investment Co., Ltd. person
China Construction Bank-GF Technology
Pioneer Mixed Type Securities Investment Other 1.09% 379,856,777 379,856,777 0 379,856,777 N/A 0
Fund
Beijing Yizhuang Investment Holdings Co., State-owned legal
1.05% 364,706,898 -551,051,102 0 364,706,898 N/A 0
Ltd person
China Merchants Bank- Galaxy Innovation
Growth Mixed Type Securities Investment Other 0.88% 307,000,000 274,648,600 0 307,000,000 N/A 0
Fund
Industrial and Commercial Bank of
China-GF Double Engines Upgrade Mixed Other 0.88% 306,718,505 234,297,285 0 306,718,505 N/A 0
Type Securities Investment Fund
Strategic investors or general corporations becoming top-ten
Naught
shareholders due to placing of new shares (if any)
Related or acting-in-concert parties among the shareholders Except for the below relationships, the Company does not know any other connected party or acting-in-concert party among
above the top 10 shareholders.
After the non-public offering of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital Opto-electronics
Above shareholders involved in entrusting/being entrusted with
Industry Investment Co., Ltd, by entering into the Agreement on Exercise of Voting Right respectively, agreed to maintain
voting rights and giving up voting rights
unanimous with Beijing BOE Investment & Development Co., Ltd. when exercising the voting rights of the shareholders by
76
BOE Technology Group Co., Ltd. Annual Report 2020
all shares of the Company held by them.
Shareholdings of the top ten unrestricted shareholders
Shares by type
Name of shareholder Number of unrestricted shares held at the period-end
Type Shares
Beijing State-owned Capital Operation and Management Center 4,063,333,333 RMB ordinary share 4,063,333,333
Hong Kong Securities Clearing Company Ltd. 2,047,015,619 RMB ordinary share 2,047,015,619
Beijing BOE Investment & Development Co., Ltd. 822,092,180 RMB ordinary share 822,092,180
Hefei Jianxin Investment Co., Ltd. 800,000,000 RMB ordinary share 800,000,000
Hefei Jianxiang Investment Co., Ltd. 730,885,417 RMB ordinary share 730,885,417
Chongqing Ezcapital Opto-electronics Industry Investment Co.,
669,956,235 RMB ordinary share 669,956,235
Ltd.
China Construction Bank-GF Technology Pioneer Mixed Type
379,856,777 RMB ordinary share 379,856,777
Securities Investment Fund
Beijing Yizhuang Investment Holdings Co., Ltd 364,706,898 RMB ordinary share 364,706,898
China Merchants Bank- Galaxy Innovation Growth Mixed Type
307,000,000 RMB ordinary share 307,000,000
Securities Investment Fund
Industrial and Commercial Bank of China-GF Double Engines
306,718,505 RMB ordinary share 306,718,505
Upgrade Mixed Type Securities Investment Fund
1. After the non-public offering of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Ezcapital
Opto-electronics Industry Investment Co., Ltd, by entering into the Agreement on Exercise of Voting Right respectively, agreed
Related or acting-in-concert parties among top 10 unrestricted
to maintain unanimous with Beijing BOE Investment & Development Co., Ltd. when exercising the voting rights of the
public shareholders, as well as between top 10 unrestricted public
shareholders by all shares of the Company held by them.
shareholders and top 10 shareholders
2. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among
the top 10 shareholders.
Top 10 ordinary shareholders involved in securities margin The shares held by Beijing Yizhuang Investment Holdings Co., Ltd. in the Company decreased by 164,694,800 shares due to
trading (if any) engaging in securities financing.
77
BOE Technology Group Co., Ltd. Annual Report 2020
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting
Period.
□ Yes √ No
No such cases in the Reporting Period.
78
BOE Technology Group Co., Ltd. Annual Report 2020
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Legal
Name of controlling representative/ Date of Unified social credit
Principal activity
shareholder person in establishment code
charge
Operation and management of state-owned assets
within authorization; communications equipments,
audio & visual products for broadcasting and
television,computer and its supporting equipments and
the applied products, electronic raw material and
components, home electric appliances and electronic
products, electronic surveying instruments and meters,
mechanical and electric equipments, electronic
transportation products and investment in business
Beijing Electronics fields other than electronics and its management,
Wang Yan 8 April 1997 91110000633647998H
Holdings Co., Ltd. development of real estate, lease and sales of
commodity apartments, property management. (The
market entity shall independently choose business items
and carry out business activities according to law. For
items requiring approval according to law, the company
must obtain approval from related authorities before
carrying out the business activities. The company shall
not engage in business activities that are banned and
restricted in the national and municipal industrial
policies.)
Beijing Electronic Shareholding Co., Ltd. held 508,801,304 shares of A share of Electronic City (Stock Code:
Controlling 600658), which was of 45.49% of the total shares amount of Electronic City; it held 51,983,223 shares of A share
shareholder’s of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code: 002371),
holdings in other which accounted for 10.47% of the total shares of NAURA Technology Group Co., Ltd. Beijing Electronic
listed companies at Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd. through
home or abroad in holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which covered
the Reporting 35.89% of the total shares amount of NAURA Technology Group Co., Ltd. Beijing Electronic Shareholding Co.,
Period Ltd. held 50,610,116 shares of A shares of BAIC BluePark New Energy Technology Co.,Ltd. (Stock Code:
600733), which accounted for 1.45% of the total shares of BAIC BluePark New Energy Technology Co.,Ltd.
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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BOE Technology Group Co., Ltd. Annual Report 2020
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets management
Type of the actual controller: legal person
Legal
Name of actual representative/ Date of Unified social credit
Principal activity
controller person in establishment code
charge
Operation and management of state-owned assets
within authorization; communications equipments,
audio & visual products for broadcasting and television,
computer and its supporting equipments and the applied
products, electronic raw material and components,
home electric appliances and electronic products,
electronic surveying instruments and meters,
mechanical and electric equipments; electronic
transportation products and investment in business
Beijing Electronics fields other than electronics and its management,
Wang Yan 8 April 1997 91110000633647998H
Holdings Co., Ltd. development of real estate, lease and sales of
commodity apartments, property management. (The
market entity shall independently choose business items
and carry out business activities according to law. For
items requiring approval according to law, the company
must obtain approval from related authorities before
carrying out the business activities. The company shall
not engage in business activities that are banned and
restricted in the national and municipal industrial
policies.)
Beijing Electronic Shareholding Co., Ltd. held 508,801,304 shares of A share of Electronic City (Stock Code:
600658), which was of 45.49% of the total shares amount of Electronic City; it held 51,983,223 shares of A share
Other listed
of NAURA Technology Group Co., Ltd. (original Beijing Sevenstar Electronics Co., Ltd. ) (Stock Code:
companies at home or
002371), which accounted for 10.47% of the total shares of NAURA Technology Group Co., Ltd. Beijing
abroad controlled by
Electronic Shareholding Co., Ltd. held 178,175,721 shares of A share of NAURA Technology Group Co., Ltd.
the actual controller
through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co., Ltd, which
in the Reporting
covered 35.89% of the total shares amount of NAURA Technology Group Co., Ltd. Beijing Electronic
Period
Shareholding Co., Ltd. held 50,610,116 shares of A share of BAIC BluePark (Stock Code: 600733), which was
of 1.45% of the total shares amount of BAIC BluePark.
Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Ownership and control relations between the actual controller and the Company:
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BOE Technology Group Co., Ltd. Annual Report 2020
Notes: 1. Beijing Intelligent Kechuang Technology Development Co., Ltd. (Intelligent Kechuang) is used as a platform for the
Company to implement equity incentives for its core technical and managerial personnel, who are the 20 nominal shareholders of
Intelligent Kechuang. The ratios of their capital contributions to Intelligent Kechuang do not represent their actual equity percentage.
The equities of Intelligent Kechuang are jointly owned by the awardees of the Company’s equity incentive plans. The capital
contribution ratios of the said 20 people are as follows: Wang Dongsheng 20%, Jiang Yukun 10%, Liang Xinqing 10%, Zhao
Caiyong 6.667%, Shi Dong 6.667%, Chen Yanshun 6.667%, Song Ying 6.667%, Han Guojian 6.667%, Gong Xiaoqing 3.333%,
Wang Yanjun 3.333%, Wang Jiaheng 3.333%, Liu Xiaodong 3.333%, Ren Jianchang 1.667%, Sun Jiping 1.667%, Zhang Peng
1.667%, Wang Aizhen 1.667%, Mu Chengyuan 1.667%, Xu Yan 1.667%, Hua Yulun 1.667% and Zhong Huifeng 1.667%.
2. When the Company completed a private offering of shares in 2014, Beijing State-Owned Capital Operation and Management
Center transferred its 70% stake directly held in the Company to Beijing Electronics Holding Co., Ltd. for managing through a
Shares Management Agreement, and Beijing Electronics Holding Co., Ltd. obtained the shareholder’s rights other than the disposal
and earnings rights attached to the 70% stake; and Beijing State-Owned Capital Operation and Management Center agreed in a
Voting Rights Exercise Agreement to align itself with Beijing Electronics Holding Co., Ltd. when exercising its voting rights of the
remaining 30% stake directly held by it in the Company.
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable √ Not applicable
4. Other 10% or Greater Corporate Shareholders
√ Applicable □ Not applicable
Legal
Name of corporate Registered
representative/ Date of establishment Principal activity
shareholder capital
person in
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BOE Technology Group Co., Ltd. Annual Report 2020
charge
Investment and investment management; assets
Beijing State-owned
RMB35,000 management; organize the reorganization as well
Capital Management Zhang Guilin 30 December 2008
million as the merger and acquisition of the enterprise
Administrative Center
assets.
5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. Annual Report 2020
Part VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
83
BOE Technology Group Co., Ltd. Annual Report 2020
Part VIII Convertible Corporate Bonds
□ Applicable √ Not applicable
No convertible corporate bonds in the Reporting Period.
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BOE Technology Group Co., Ltd. Annual Report 2020
Part IX Directors, Supervisors, Senior Management and Staff
I Change in Shareholdings of Directors, Supervisors and Senior Management
Beginning Increase in the Decrease in Other Ending
Incumbent/F
Name Office title Gender Age Start of tenure End of tenure shareholding Reporting the Reporting increase/decre shareholding
ormer
(share) Period (share) Period (share) ase (share) (share)
Chairman of the Board,
Chen Yanshun Chief of Executive Incumbent Male 55 28 June 2019 27 June 2022 600,000 300,000 0 2,000,000 2,900,000
Committee
Vice Chairman of the
Pan Jinfeng Incumbent Male 41 28 June 2019 27 June 2022 0 0 0 0 0
Board
Vice Chairman of the
Board, President, Vice
Liu Xiaodong Incumbent Male 56 28 June 2019 27 June 2022 250,000 430,000 0 1,800,000 2,480,000
Chairman of Executive
Committee
Wang Chenyang Director Incumbent Male 51 28 June 2019 27 June 2022 0 0 0 0 0
Song Jie Director Incumbent Male 53 28 June 2019 27 June 2022 0 0 0 0 0
Director, member of
Executive Committee,
Sun Yun Incumbent Female 51 28 June 2019 27 June 2022 223,981 265,500 0 1,500,000 1,989,481
Executive vice
president, CFO
Director, member of
Executive Committee,
Gao Wenbao Incumbent Male 45 28 June 2019 27 June 2022 90,700 270,000 0 1,500,000 1,860,700
Executive vice
president, CEO of the
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BOE Technology Group Co., Ltd. Annual Report 2020
Display bussiness
Li Yantao Director Incumbent Male 39 28 June 2019 27 June 2022 0 0 0 0 0
Wang Huacheng Independent director Incumbent Male 57 28 June 2019 27 June 2022 0 0 0 0 0
Hu Xiaolin Independent director Incumbent Male 42 28 June 2019 27 June 2022 0 0 0 0 0
Li Xuan Independent director Incumbent Male 52 28 June 2019 27 June 2022 0 0 0 0 0
Tang Shoulian Independent director Incumbent Male 68 28 June 2019 27 June 2022 0 0 0 0 0
Chairman of the
Yang Xiangdong Incumbent Male 59 28 June 2019 27 June 2022 0 0 0 0 0
Supervisory Committee
Xu Tao Supervisor Incumbent Male 56 28 June 2019 27 June 2022 0 0 0 0 0
Wei Shuanglai Supervisor Incumbent Male 53 28 June 2019 27 June 2022 0 0 0 0 0
Chen Xiaobei Supervisor Incumbent Female 48 28 June 2019 27 June 2022 0 0 0 0 0
Shi Hong Supervisor Incumbent Female 38 28 June 2019 27 June 2022 0 0 0 0 0
Xu Yangping Employee supervisor Incumbent Male 46 28 June 2019 27 June 2022 0 35,000 0 0 35,000
He Daopin Employee supervisor Incumbent Male 51 28 June 2019 27 June 2022 0 32,600 0 0 32,600
Yan Jun Employee supervisor Incumbent Male 49 28 June 2019 27 June 2022 0 32,000 0 0 32,000
Teng Jiao Employee supervisor Incumbent Male 38 28 June 2019 27 June 2022 0 55,200 0 0 55,200
Member of Executive
Yao Xiangjun Committee, Executive Incumbent Male 43 28 June 2019 27 June 2022 100,000 165,000 0 1,000,000 1,265,000
vice president
Member of Executive
Zhang Committee, Executive
Incumbent Male 50 28 June 2019 27 June 2022 328,700 170,100 0 1,000,000 1,498,800
Zhaohong vice president, CEO of
Mini-LED business
Member of Executive
Zhong Huifeng Incumbent Male 50 28 June 2019 27 June 2022 150,000 160,000 0 1,000,000 1,310,000
Committee, Executive
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BOE Technology Group Co., Ltd. Annual Report 2020
vice president, Chief
Performance Officer
Member of Executive
Committee, Executive
Feng Liqiong Incumbent Female 48 28 June 2019 27 June 2022 200,000 160,000 0 1,000,000 1,360,000
vice president, lead
counsel
Member of Executive
Committee, Senior vice
Xie Zhongdong president, Auditor Incumbent Male 50 28 June 2019 27 June 2022 200,000 107,000 0 750,000 1,057,000
General, Chief Risk
Officer
Member of Executive
Committee, vice
Miao Chuanbin Incumbent Male 47 28 June 2019 27 June 2022 1,800 107,000 0 650,000 758,800
president, Chief Culture
Officer
Vice president, Chief
Zhang Yu Human Resource Incumbent Male 50 22 March 2021 27 June 2022 117,600 0 0 634,000 751,600
Officer
Vice president,
Liu Hongfeng Incumbent Male 42 28 June 2019 27 June 2022 154,500 120,000 0 750,000 1,024,500
Secretary of the Board
Lv Tingjie Independent director Former Male 65 28 June 2019 29 May 2020 0 0 0 0 0
Total -- -- -- -- -- -- 2,417,281 2,409,400 0 13,584,000 18,410,681
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BOE Technology Group Co., Ltd. Annual Report 2020
II Change of Directors, Supervisors and Senior Management
√Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Lv Tingjie Independent director Left for term expiration 29 May 2020 Left for term expiration
Tang Shoulian Independent director Elected 29 May 2020 Elected
Zhang Yu Senior management Appointed 22 March 2021 Appointed
III Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and
senior management
Director
Mr. Chen Yanshun, Master of Economics, senior accountant, he had served in the Company from the year of 1993, has taken the
posts of Secretary of the Board of the 1st Board of Directors of the Company, Secretary of the 2nd Board of Directors and Vice
President, Executive Director of the 3rd Board of Directors and Senior Vice President, Executive Director of the 4th, 5th and the 6th
Board of Directors and President, and Vice Chairman of the 7th Board of Directors and President, Vice Chairman of the 8th Board of
Directors, Chairman of Executive Committee (CEO), Chairman of the Board of Beijing BOE Optoelectronics Technology Co., Ltd,
and Chairman of the Board of many subordinate subsidiaries such as Hefei BOE Optoelectronics Technology Co., Ltd. and
Chongqing BOE Optoelectronics Technology Co., Ltd.
Now he takes the posts of Chairman of the 9th Board of Directors of the Company and Chief of Executive Committee, BOE
Optoelectronics Holdings Co., Ltd. and BOE Technology (Hong Kong) Co., Ltd., Vice Chairman of Beijing BOE Investment
Development Co., Ltd., Chairman of the Board of Beijing Kechuang Intelligent Technology Development Co., Ltd., BOE Smart
Technology Co., Ltd. and BOE Educational Technology Co., Ltd. Meanwhile, he serves as Vice Chairman of China Information
Technology Industry Federation（CITIF） Vice Chairman of China Optics & Optoelectronics Manufactures Association（COEMA）
Chairman of China Optics & Optoelectronics Manufactures Association LCB（CODA）, Chief Supervisor of The Listed Companies
Association of Beijing, and was awarded as National Model Worker in 2020
Mr. Pan Jinfeng, senior management, MBA, senior economist. He once acted as a staff and a staff of Corporate Planning
Department of Shanghai Sales Company of Beijing Zhaowei Electronics (Group) Co., Ltd., Deputy Manager, Manager of Operation
Department, Manager of Zhaowei Building Project Department, Assistant of GM, Deputy GM, GM of Zhaowei Industrial
Corporation of Beijing Zhaowei Electronics (Group) Co., Ltd. Executive Deputy President of Beijing Zhaowei Electronics (Group)
Co., Ltd., Deputy Secreatry of Party Committee, GM of Beijing Yiheng Electronics Group Co., Ltd., Assistant of GM and Deputy
GM of Beijing Electronics Holding Co., Ltd.
Now, he acts as the Deputy Secretary of CPC and GM of Beijing Electronics Holding Co., Ltd., Vice Chairman of the 9th Board of
Directors of the Company & Deputy Chairman of the Board of NAURA Technology Group Co., Ltd., Chairman of the Board of BE
New Energy Technology (Jiangsu) Co., Ltd., Director of Beijing Electronics Holding & SK Technology Co., Ltd. and Chairman of
the Board of BE Aisite (Jiangsu) Technology Co., Ltd.
Mr. Liu Xiaodong, Bachelor’ degree, Engineer, he ever worked in Research Institute of Beijing Information Optics Apparatus. He
successively took the posts of Director, Deputy General Manager and Secretary of CPC of Beijing Matsushita Color CRT Co., Ltd.,
Vice President of the Company and concurrently Director and General Manager of Beijing BOE Optoelectronics Technology Co.,
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BOE Technology Group Co., Ltd. Annual Report 2020
Ltd., Director and General Manager of Hefei BOE Optoelectronics Technology Co., Ltd. Chairman of the Board of Beijing BOE
Vision-electronic Technology Co., Ltd. Director and GM of Hefei Xinsheng Optoelectronics Technology Co., Ltd., Deputy
Chairman of the Board of Chongqing BOE Optoelectronics Technology Co., Ltd., Chairman of the Board of Beijing BOE
Multimedia Science and Technology Co., Ltd. and Beijing BOE Living Technology Co., Ltd, Director of TPV Display Technology
(China) Limited, Beijing BOE Display Technology Co., Ltd., Fuzhou BOE Optoelectronics Technology Co., Ltd., BOE Health
Investment Management Co., Ltd., Beijing BOE CHATANI Electronics Co.,Ltd., Director of the 7th Board of Directors, Executive
Vice President, COO, Director of the 8th Board of Directors, Deputy Chairman of Executive Committee, President & COO of the
Company.
Now he takes the posts of Vice Chairman of the 9th Board of Director, President, Deputy Chairman of Executive Committee of the
Company, Chairman of Mianyang BOE Optoelectronics Technology Co., Ltd., Chongqing BOE Display Technology Co., Ltd.,
Wuhan BOE Optoelectronics Technology Co., Ltd., Yunnan Chuangshijie Optoelectronics Technology Co., Ltd., Fuzhou BOE
Display Technology Co., Ltd. and Director of Beijing BOE Technology Development Co., Ltd., Fuzhou BOE Display Technology
Co., Ltd. and BOE Educational Technology Co., Ltd.
Mr. Wang Chenyang, Master, senior political division. He has served as division-head level and deputy-bureau level cadre in the
General Office of Beijing Municipal Government and Director of the 8th Board of Directors of the Company.
Now he takes the posts of Director of the 9th Board of Directors of the Company and Deputy GM of Beijing State-owned Capital
Management Center.
Mr. Song Jie, Senior Economist, MBA of Peking University, Countries travelled visiting scholar of University of Sydney from Feb,
2005 to Mar. 2006. He once worked as Assistant Engineer of Design Institute Wire Plant of Shougang Corporation, Officer of
Project examination and approval of Beijing Economic and Technological Development Zone Management Committee, Officer of
Foreign Investment Service Center, the Director of Yi Da Tong Paging Center, Deputy General Manager of Chinese Human Genome
Research Center, Beijing (SinoGenoMax Co., Ltd.), Project Manager of East Zone Sewage project of Beijing Yizhuang Investment
Holdings Co., Limited, Director of the 7th Board of Directors of the Company, Director of the 8th Board of Directors of the Company.
Now he is the Director of the 9th Board of Directors of the Company, GM of Beijing Yizhuang Investment Co., Limited.
Ms. Sun Yun, Master of Business, a Senior Accountant. She successively took the posts of Deputy Chief, Chief of Finance
Department of the Company, as well as Deputy CFO and Chief Auditor of the Company, Director of the 8th Board of Directors,
Director of Erdos Yuansheng Optoelectronics Co., Ltd., Beijing BOE Video Technology Co., Ltd., Beijing BOE Multimedia Science
and Technology Co., Ltd., BOE Health Investment Management Co., Ltd., Beijing BOE Matsushita Color CRT Innovation Co., Ltd.
and Supervisor of Beijing Orient Vacuum Electric Co., Ltd.
Now she is Director of the 9th Board of Directors, Member of Executive Committee, Executive Vice President and CFO of the
Company, Director of Beijing BOE Land Co., Ltd., Director of Beijing Yinghe Century Land Co., Ltd., Director of BOE Smart
Technology Co., Ltd., Chairman of the Board of BOE Innovation Investment Co., Ltd. and Director of BOE Educational Technology
Co., Ltd.
Mr. Gao Wenbao, doctor of MSE. He joined the Company in 2003, and once acted as the section chief and minister of product
technology division, Deputy Technical Director, Deputy GM in Beijing BOE Optoelectronics Technology Co., Ltd., GM of TPC
SBU, GM of Chongqing BOE Optoelectronics Technology Co., Ltd., Chairman of the Board of Hefei BOE Zhuoyin Technology Co.,
Ltd. and Director of Chongqing BOE Display Technology Co., Ltd.
Now, he acts as the Director of the 9th Board of Directors and Member of Executive Committee, Executive Vice President of the
Company, CEO of the Display BG, Executive Director & Chairman of the Board in BOE Varitronix Co., Ltd., Chairman of the
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BOE Technology Group Co., Ltd. Annual Report 2020
Board of Beijing BOE Optoelectronics Co., Ltd., Chengdu BOE Optoelectronics Co., Ltd., Hefei BOE Optoelectronics Co., Ltd.,
Beijing BOE Display Technology Co., Ltd., Hefei Xinsheng BOE Optoelectronics Co., Ltd., Chongqing BOE Optoelectronics Co.,
Ltd., Fuzhou BOE Optoelectronics Co., Ltd., Director of Mianyang BOE Optoelectronics Co., Ltd., Fuzhou BOE Display
Technology Co., Ltd., Wuhan BOE Optoelectronics Co., Ltd., TPV Display Technology (China) Limited, BOE Educational
Technology Co., Ltd. and Chairman of the Board of Beijing Zhongxiangying Technology Co., Ltd.
Mr. Li Yantao, Master Degree Candidate, MBA in Financial Accounting of Tsinghua University-Chinese University of Hong Kong,
Intermediate Economist, PMP, with fund qualification. He once worked as an engineer of Module Technology Department and
Section Chief of Public Relations of Administrative Security Department in Beijing BOE Optoelectronics Technology Co., Ltd.,
Section Chief of Tender Approval of Commerce Group, noviate vice minister of Engineering Cost Control Department and Bidding
Contract Management Section of Engineering Cost Control Department in Beijing BOE Display Technology Co., Ltd., Secretary of
Youth League Committee, minister of Corporate Culture/Party Work Department of Corporate Culture Centre and Chief of Corporate
Culture Section and Group Work Section, Vice Minister (Assistant Director Level) of Planning & Coordination Department and
Director of Office for Promotion of Major Projects, Minister of Market & New Business Planning Department, Head of Planning &
Coordination Centre (Deputy Director Level) and Minister of Market Insight Department, Minister of Strategic Planning Department,
Minister of Performance Management Department, Minister of Office for Promotion of Major Projects and Minister of Knowledge
Management & Training Department in the Company, Director of the 8th Directors of the Board of the Company
Now he serves as the Director of the 9th Directors of the Board of the Company, Director of Strategic Development Department of
Beijing Electronics Holdings Co., Ltd., Director and GM of Beijing Electronic Control Industry Investment Co., Ltd., Chairman of
the Board of Beijing Nuohua Capital Investment Management Co., Ltd., Director of Office for Promotion of Old Industrial Base
Transformation in Beijing Electronics City, Vice Chairman of Beijing Enterprise Conferation.
Independent Director
Mr. Wang Huacheng, Doctoral Candidate Degree, Professor Doctoral Supervisor, In July 1985, graduate from Department of
Finance, Renmin University of China, obtained bachelor of economics degree, in July 1988, graduated from Department of
Accounting, Renmin University of China, obtained master's degree in economics, in July 1998, graduated from Department of
Accounting, Renmin University of China, obtained PhD degree. Since September 1988, worked as a teacher in Renmin University of
China, He successively worked as teaching assistant, lecturer, associate professor, professor, PhD supervisor, social appointments:
Director of the institute of Chinese accounting. He once was the Independent Director of the 7th Board of Directors of the Company,
Independent Director of the 8th Board of Directors of the Company.
Now he is the Independent Director of the 9th Board of Directors of the Company, Professor of Renmin University of China, the
Independent Director of Hua Xia Bank Co.,Limited, China Railway Construction Corporation Limited, CHINA GREATWALL
SECURITIES CO.,LTD. and Tsinghua Tongfang Co.,Ltd..
Mr. Hu Xiaolin, doctor, associate professor of Tsinghua University, artificial intelligence professor, used to be the independent
director of the 8th Board of Directors of the Company.
Now he serves as the Independent Director of the 9th Board of Directors of the Company, Editorial Board Member of IEEE
Transactions on Image Processing and Cognitive Neurodynamics.
Mr. Li Xuan, doctor of laws, associate professor, graduate student tutor. He once worked as the Vice President of School of Law
and Dean of Legal Affairs Office of Central University of Finance and Economics, Independent Director of China Minzu Securities
Co., Ltd. and China Shengmu Organic Milk Limited. (Listed in Hong Kong Exchanges and Clearing Limited), Independent Director
of the 8th Board of Directors of the Company.
90
BOE Technology Group Co., Ltd. Annual Report 2020
Now he serves as the Independent Director of the 9th board of directors of the Company, Chief of Central University of Finance and
Economics Master of Laws (J.M) Education Center, Executive Dean of Public Policy-Making Research Center of China University
of Political Science and Law, Deputy Chief of Committee for Social and Legal Affairs of Beijing Municipal Committee of the CDL,
vice chairman of Case Study Association of China Law Society, Executive Director of Lawyer Law Research Institute, government
legal advisor of State Administration of Coal Mine Safety, Independent Director of Beijing Da Bei Nong Science and Technology
Group Co., Ltd. and Independent Supervisor of China National Building Materials Company Limited (listed in Hong Kong
Exchange), and part-time arbitrator and lawyer.
Mr. Tang Shoulian, professor, holds a master's degree.
He has served as Director of Finance Office, Dean of School of Management and Humanities, Secretary of Party Committee of
School of Economics and Management, Executive Dean of School of Economics and Management, and Standing Committee of
Academic Committee and Chairman of Labor Dispute Mediation Committee of Beijing University of Posts and Telecommunications
(BUPT). He has served as a member of the Expert Committee on Telecommunications Economy of the Ministry of Industry and
Information Technology, a permanent member of the Chinese Association of Market Development, a standing member of the
Information Law Research Society of the China Law Society, a senior member of the Chinese Society of Technology Economics, a
standing member of the Commerce Statistical Society of China, and a reviewer of the Management Science Department of the
National Natural Science Foundation of China.
He is currently an Independent Director of the 9th Board of Directors.
Supervisor
Mr. Yang Xiangdong, postgraduate. He once worked as chief of Technology Security Section, minister of Sales Department and
minister of Materials Department in Beijing TV Accessories Third Factory, Deputy GM of Beijing Jile Electronics Group Co., Ltd.,
Deputy GM of Beijing Sevenstar Electronics Co., Ltd., and Deputy GM of Beijing North Microelectronics Co., Ltd., Chairman of
the 8th Supervisory Committee (convener),
Now he serves as the Chairman of the 9th Supervisory Committee, assigned full-time Chairman of Supervisory Committee of Beijing
Electronics Holdings Co., Ltd., Chairman of Supervisory Committee of Beijing Zhaowei Electronic (Group) Co., Ltd., Chairman of
Supervisory Committee of Beijing Seven Star Huadian Technology Group Co., Ltd., Chairman of Supervisory Committee of
Kingstronic (Beijing) Limited, Supervisor of Beijing Electronics Holding & SK Technology Co., Ltd., Supervisor of Beijing
Electronics New Energy Technology (Jiangsu) Co., Ltd. and supervisor of BEST, Supervisor of Beijing Electronic Information
Technician College.
Mr. Xu Tao, master degree, Senior Accountant, Minister of Finance Department of Beijing TV Accessories Third Factory, Chief
Accountant and CFO of Beijing Jile Economics Group Co., Ltd, Minister of Finance Department, Head of Finance
Department/Settlement Center of Beijing Electronics Holding Co., Ltd. and Supervisor of the 7th and 8th Supervisory Committee of
the Company.
Currently, he serves as the Supervisor of the 9th Supervisory Committee of the Company, Director of the Financial Department of
Beijing Electronics Holdings Co., Ltd. and Chairman of the Board of Beijing BOE Investment & Development Co., Ltd.
Mr. Wei Shuanglai, MBA, senior Engineer. He once acted as a staff of Beijing BBEF Electronics Group Co., Ltd., deputy director
of Technology Center, director of General Labor Office, Deputy GM of Beijing BBEF Digital Broadcasting and Television Co., Ltd.,
president assistant & minister of Television Department, Executive President & Strategic Director, Deputy GM & Executive
President, Deputy Secretary of Party Committee, Director, GM in Beijing BBEF Science & Technology Co., Ltd., Vice Minister of
Technology Industry Department, Minister of Market Department, Head of Smart Equipment and System Business Department in
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BOE Technology Group Co., Ltd. Annual Report 2020
Beijing Electronics Holding Co., Ltd. and Deputy GM of Beijing Zhaowei Electronics (Group) Co., Ltd.
Now, he acts as the Supervisor of the 9th Supervisory Committee of the Company, Director of Operation Management Department of
Beijing Electronics Holding Co., Ltd. & Director of Beijing Zhaowei Electronics (Group) Co., Ltd.
Beijing BBEF Science & Technology Co., Ltd.
Ms. Chen Xiaobei, bachelor, economist. She once acted as deputy director of general office, director of General Office (Party
Committee Office), Board Secreatry and Supervisor in Hefei Construction and Investment Holding (Group) Co., Ltd.
Now, she acts as the Supervisor of the 9th Supervisory Committee of the Company, Member of the Party Committee, Director,
Deputy GM and Board Secretary in Hefei Construction and Investment Holding (Group) Co., Ltd.
Ms. Shi Hong, Master of Economics, Senior Economist, Supervisor of the 7th Supervisory Committee of the Company, Supervisor of
the 8th Supervisory Committee of the Company.
Now he is the Supervisor of the 9th Supervisory Committee of the Company, Vice GM of Beijing Yizhuang Investment Co., Ltd. &
Chairman of the Board of Yizhuang Equity Investment Fund Management (Tianjin) Co., Ltd., Vice Chairman of the Board of
Schneider (Beijing) LV Appliance Co.,Ltd., Member of Investment Decision Committee of China Reform Fund Management Co., Ltd.
Director of Beijing Jinyuan Jingkai Limited Liability Company for Sewage Treatment and Supervisor of Beijing Boda Xinyuan
House Real Estate Development Co., Ltd..
Mr. Xu Yangping, Master of Civil and Commercial Law. He was former Deputy Minister, Minister of the Company’s Legal
Department, and Employee Supervisor of the 7th Supervisory Committee of the Company, Employee Supervisor of the 8th
Supervisory Committee of the Company
Now he acts as Employee Supervisor of the 9th Supervisory Committee of the Company, Chief of the Group’s Legal Center, Senior
Chief Officer and the Director of Board of Directors of Gaochuang (Suzhou) Electronics Co., Ltd, Director of Beijing BOE Energy
Technology Co., Ltd., Director of Orient Chengqi (Beijing) Business Technology Co., Ltd., Nanjing CEC Panda FPD Technology
Co., Ltd., Qingdao BOE Smart Technology Co., Ltd., Chengdu BOE Smart Technology Co., Ltd., Chongqing BOE Smart
Technology Co., Ltd., Suzhou BOE Smart Technology Co., Ltd., Yunnan BOE Smart Technology Co., Ltd., Shenzhen BOE Smart
Technology Co., Ltd., Guangzhou BOE Smart Technology Co., Ltd. and BEHC Industrial Investment Co., Ltd., Supervisor of BOE
Smart Technology Co., Ltd., BOE Innovation Investment Co., Ltd., Tianjin BOE Innovation Investment Co., Ltd., Beijing BOE
Vacuum Electric Appliance Co., Ltd., Beijing BOE Technology Development Co., Ltd., BOE Jingxin Technology Co., Ltd., Hefei
BOE Ruisheng Technology Co., Ltd. and BOE Digital Technology Co., Ltd.
Mr. He Daopin, master. He once worked as Production Supervisor, Purchasing Supervisor, Financial Manager, Vice General
Manager of Beijing Oriental Aristocratic Paper Co., Ltd., Vice General Manager, General Manager of Industrial Gas Underwriting
Company of Business Department of Park of the Company, Management Representative of Business Department of Park, Chief of
HR and Administrative Department, Chief of Property Department and Chief of Labor Union, Deputy Chief, Chief of Party Mass
Work Department of the Company, Corporate Cultural Center, Employee Supervisor of the 8th Supervisory Committee of the
Company,
He now serves as Employee Supervisor of the 9 th Supervisory Committee of the Company, Head of the North China Regional
Corporate Culture Center, Chairman of Labor Union and Secretary of Committee for Discipline Inspection of Beijing BOE Display
Technology Co., Ltd. & Chief of Corporate Culture of the Display BG, Chief of Corporate Culture of Beijing BOE Display
Technology Co., Ltd. and Vice Chairman of Labor Union of the Group.
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BOE Technology Group Co., Ltd. Annual Report 2020
Mr. Yan Jun, bachelor. He once acted as the Deputy GM of Beijing Nissin Electronic Precision Components Co., Ltd., Minister of
Corporate Culture/Party Affairs Department, Chairman of Labor Union in Chongqing BOE Optoelectronics Technology Co., Ltd. and
Deputy Director of General Office of the Group.
Now he acts as the Employee Supervisor of the 9th Supervisory Committee, Deputy Head of Party Mass/Corporate Culture Center,
Deputy Secreatry of Discipline and Inspection Committee, Deputy Chairman of Labor Union in the Company.
Mr. Teng Jiao, bachelor of Administration. He once acted as the Deputy Minister of Planning and Finance Department, Minister of
Performance Analysis of the Company and Minister of Accounting Department of Beijing BOE Display Technology Co., Ltd.,
Director of Beijing Asahi Electronic Materials Co., Ltd., Beijing BOE Energy Technology Co., Ltd., Beijing BOE Health
Technology Co., Ltd. and Supervisor of Beijing BOE CHATANI Electronics Co.,Ltd.
Now, he acts as the Employee Supervisor of the 9th Supervisory Committee, Head of Finance Organization Accounting Taxation
Center, Senior Director of the Company, Director of Beijing BOE Vacuum Electric Co., Ltd., Beijing BOE Special Display
Technology Co., Ltd., Director of Beijing BOE Matsushita Color CRT Innovation Co., Ltd., Hefei BOE Hospital Co., Ltd., Chengdu
BOE Hospital Co., Ltd., Suzhou BOE Hospital Co., Ltd. and Gaochuang (Suzhou) Electronics Co., Ltd.
Senior Management
Mr. Yao Xiangjun, MBA, Chinese CPA. He once worked as Minister and Chief Inspector of Financing Department
of the Company, CFO of Hefei BOE Optoelectronics Technology Co., Ltd., Director of Business Planning Center, Chief
Strategic Officer of the Company, CEO of Intelligent System Business Group, Chairman of the Board of Beijing BOE Video
Technology Co., Ltd., Hefei BOE Video Technology Co., Ltd., Chongqing BOE Intelligent Electronic System Co., Ltd., BOE
Optical Science and Technology Co., Ltd., Beijing BOE Multimedia Science and Technology Co., Ltd. and BOE Smart IoT
Technology Co., Ltd.
Now he serves as member of Executive Committee, Executive Vice President of the Company, Director of SES-imgotag, and
Chairman of the Board of Hunan BOE Yiyun Technology Co., Ltd., and BOE Smart Retail (Hong Kong) Co., Limited.
Mr. Zhang Zhaohong, bachelor of inorganic nonmetallic materials, engineer. He joined in the Company in 1992, he once worked as
CEO of the Display BG of BOE, Chairman of the Board of Beijing BOE Optoelectronics Technology Co., Ltd., Chengdu BOE
Optoelectronics Technology Co., Ltd., Hefei BOE Optoelectronics Technology Co., Ltd., Beijing BOE Display Technology Co., Ltd.,
Erdos Yuansheng Optoelectronics Co., Ltd., and Fuzhou BOE Optoelectronics Technology Co., Ltd., Director of Wuhan BOE
Optoelectronics Technology Co., Ltd., Chairman of the Board of Beijing BOE Display Technology Co., Ltd., Chinese GM of Beijing
Asahi Glass Co., Ltd., Director of Chengdu BOE Optoelectronics Technology Co., Ltd. and Chairman of the Board of BOE Health
Investment Management Co., Ltd., Beijing BOE Health Technology Co., Ltd., Beijing BOE Living Technology Co., Ltd., BOE
Hyundai LCD Inc.
Now he serves as the member of Executive Committee, Executive Vice President and CEO of the Mini LED BG, Chairman of the
Board of BOE Jingxin Technology Co., Ltd.
Mr. Zhong Huifeng, Master Degree, awarded certification on Secretary of the Board of Shenzhen Stock Exchange. He ever took
posts of Securities Affairs Representative and Manager of Security Department of the 2 nd Board of Directors, Secretary to the Board
of the 3rd, 4th and 5th Board of Directors of the Company, Employee Supervisor of the 6th Supervisory Committee and Employee
Supervisor of the 7th Supervisory Committee, Supervisor of Beijing Orient Top Victory Electronics Co., Ltd.. and Vice Secretary of
the CPC, Secretary of Discipline Inspection Commission, Principal of Labor Union, CHO of the Company and President of BOE
University, Supervisor of Beijing BOE TPV Electronics Co., Ltd., Member of the Third National Committee of China’s Defense of
Posts and Telecommunications Union.
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BOE Technology Group Co., Ltd. Annual Report 2020
Now he acts as member of Executive Committee, Executive Vice President and Chief Performance Officer of the Company, Director
of Beijing BOE Investment Development Co., Ltd. and BOE Educational Technology Co., Ltd.
Ms. Feng Liqiong, Bachelor Degree and Lawyer of the Company, she has served as Senior Vice President and Minister of Legal
Affairs Department of the Company, and as Secretary of the 5th and 6th Board of Directors.
Now she is member of Executive Committee, Executive Vice President, Chief Counsel and Director of Beijing BOE Land Co., Ltd.
and Beijing Yinghe Science & Century Technology Development Co., Ltd.
Mr. Xie Zhongdong, Master, CIA. He has ever taken posts of Deputy Chief of Basic Construction Office in the Yi-Shu-Si Water
Conservancy Administration of Huaihe Water Resources Commission under the Ministry of Water Resource of P.R.C, Chief and
Deputy Auditor of Auditing & Supervision Division of the Company, Vice Chief and Chief of Auditing & Supervision Division of
Beijing BOE Optoelectronics Technology Co., Ltd.
Now he acts as member of Executive Committee, Senior Vice President, Chief Audit Officer and Chief Risk Control Officer of the
Company & Vice President of Beijing Internal Audit Association, Supervisor of Beijing BOE Optoelectronics Technology Co., Ltd.,
Beijing BOE Display Technology Co., Ltd., Erdos Yuansheng Optoelectronics Co., Ltd., Chongqing BOE Optoelectronics
Technology Co., Ltd., Hefei BOE Optoelectronics Technology Co., Ltd., Chengdu BOE Optoelectronics Technology Co., Ltd.,
Chongqing BOE Display Technology Co., Ltd., Beijing BOE Sensor Technology Co., Ltd., Beijing BOE Video Technology Co., Ltd.,
Gaochuang (Suzhou) Electronics Co., Ltd., Hefei BOE Video Technology Co., Ltd. and BOE Health Investment Management Co.,
Ltd., Hefei BOE Display Technology Co., Ltd., Fuzhou BOE Optoelectronics Technology Co., Ltd., Nanjing CEC Panda FPD
Technology Co., Ltd., Chongqing BOE Intelligent Electronic System Co., Ltd., BOE Optical Science and Technology Co., Ltd.,
Beijing BOE CHATANI Electronics Co.,Ltd., Suzhou BOE IT Co., Ltd., Hefei BOE Display Light Sources Co., Ltd., Chongqing
BOE Display Lighting Co., Ltd., BOE Smart IoT Technology Co., Ltd., Beijing BOE Multimedia Science and Technology Co., Ltd.,
Hefei BOE Hospital Co., Ltd., Chengdu BOE Hospital Co., Ltd., Beijing BOE Health Technology Co., Ltd., BOE Regenerative
Medical Technologies Co. Ltd., Suzhou BOE Hospital Co., Ltd., Beijing BOE Life Technology Co., Ltd., Beijing BOE Hospital Co.,
Ltd., Beijing BOE Marketing Co., Ltd., BOE Indonesia Co., Ltd, Beijing BOE Living Technology Co., Ltd. and BOE Educational
Technology Co., Ltd.
Mr. Miao Chuanbin, Master degree, once worked as Manager of Market Department Beijing Wireless Power Plant Putai
Technology Company, Secretary of Party Committee Work Department and Deputy Secretary of Beijing Wireless Power Plan,
Deputy General Manager of Beijing Ether-led Electronic Group Co., Ltd., Secretary of Party Committee Work Department,
Enterprise Minister of Culture of Beijing Electronics Holdings Co., Ltd, Employee Supervisor of the 7th Supervisory Committee of
the Company, Employee Supervisor of the 8th Supervisory Committee of the Company,.
Now he is the member of Executive Committee, vice president, CCO of the Company, Deputy Secretary of CPC, Secretary of the
Commission for Discipline Inspection, Union Chairman of the Company, Deputy Chairman of Beijing Industry (National Defense)
Labor Union, member of Beijing Electronic Union, member of Beijing Industrial Movement Theory Research Association and
member of the Commission for Discipline Inspection in Beijing Electronics Holding Co., Ltd.
Mr. Zhang Yu, engineer, holds a master's degree. He has served as the Deputy Director of the Executive Office of the Company,
General Manager of Hefei Office, and Deputy General Manager of Hefei Xinsheng Optoelectronics Technology Co., Ltd.
He is currently the Vice President, Chief Human Resources Officer and Director of the Digital Change Management Office of the
Company. He was awarded the "National Model Worker" in 2020.
Mr. Liu Hongfeng, master. He once worked as the Deputy Chief of the Finance Department of the Company, the Deputy Chief and
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BOE Technology Group Co., Ltd. Annual Report 2020
Chief of the BOD Office, the Securities Representative and the Secretary of the 7 th Board of the Company.
Now he is a vice president and the Secretary of the 9th Board of Directors of the Company, as well as a director of Beijing Nissin
Electronics Precision Component Co., Ltd. and Supervisor of Beijing Yinghe Century Land Co., Ltd.
Offices held concurrently in shareholding entities:
√Applicable □Not applicable
Remuneration
or allowance
Office held in the End of
Name Shareholding entity Start of tenure from the
shareholding entity tenure
shareholding
entity
Beijing Electronics Holdings
Pan Jinfeng GM 11 December 2020 -- Yes
Co., Ltd.
Wang Beijing State-owned Capital
Vice GM 19 November 2014 -- Yes
Chenyang Management Center
Beijing Electronics Holdings Minister of Strategic
Li Yantao 12 August 2016 -- Yes
Co., Ltd. Department
Full-time Chairman of the
Yang Beijing Electronics Holdings
Dispatched Supervisory 17 April 2015 -- Yes
Xiangdong Co., Ltd.
Committee
Beijing Electronics Holdings
Xu Tao Finance Minister 26 October 2012 -- Yes
Co., Ltd.
Beijing Electronics Holdings Minister of Operation and
Wei Shuanglai 16 January 2019 -- Yes
Co., Ltd. Management Department
Notes to
post-holding in
The documents for holding the posts of shareholders entities haven’t listed the expiry date.
shareholder’s
unit
Offices held concurrently in other entities:
√Applicable □Not applicable
Remuneration
Start of End of or allowance
Name Other entity Office held in the entity
tenure tenure from the
entity
Wang
Renmin University of China Doctor Advisor -- -- Yes
Huacheng
Hu Xiaolin Tsinghua University Associate professor -- -- Yes
The Central University of Finance and
Li Xuan Post-graduate Tutor -- -- Yes
Economics
Director, member of CPC
Hefei Construction Investment Holding
Chen Xiaobei Committee, Deputy GM, -- -- Yes
(Group) Co., Ltd.
Secretary of the Board
95
BOE Technology Group Co., Ltd. Annual Report 2020
Notes to
Due to the above personnel’s units were special, their start dates and ending dates of the office terms have not
post-holding in
been fixed.
other unit
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and senior
management as well as those who left in the Reporting Period:
□ Applicable √ Not applicable
IV Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and senior
management:
(1) Determining Basis and Decision-making Procedure of Remuneration of Directors, Supervisors and Senior Management
Proposal on Adjustment of Allowance for Directors and Supervisors was reviewed and approved on the 1 st Extraordinary General
Meeting of 2019 held by the Company on 28 June 2019, of which, the allowance for independent directors was adjusted to RMB0.2
million (before tax) per year from RMB0.15 million; the allowance for the Company’s executive directors and employee supervisors
as well as directors and supervisors holding posts in shareholder’s unit was cancelled.
(2) Up to the end of the Reporting Period, the current directors, supervisors and senior management drew their remuneration from the
Company totaled RMB58.1914 million (before tax). Allowance for independent directors is RMB0.2 million (before tax) per year in
2020. For details please referred to the statement below.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
Total Any
before-tax remuneratio
Incumbent/F
Name Office title Gender Age remuneration n from
ormer
from the related
Company party
Chairman of the Board, Chief of Executive
Chen Yanshun Male 55 Incumbent 320.48 No
Committee
Pan Jinfeng Vice Chairman of the Board Male 41 Incumbent 0 -
Vice Chairman of the Board, President, Vice
Liu Xiaodong Male 56 Incumbent 851.09 No
Chairman of Executive Committee
Wang Chenyang Director Male 51 Incumbent 0 -
Song Jie Director Male 53 Incumbent 0 -
Director, member of Executive Committee,
Sun Yun Female 51 Incumbent 924.23 No
Executive vice president, CFO
Director, member of Executive Committee,
Gao Wenbao Executive vice president, CEO of the Display Male 45 Incumbent 618.16 No
BG
Li Yantao Director Male 39 Incumbent 0 -
Wang Huacheng Independent director Male 57 Incumbent 20 -
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BOE Technology Group Co., Ltd. Annual Report 2020
Hu Xiaolin Independent director Male 42 Incumbent 20 -
Li Xuan Independent director Male 52 Incumbent 20 -
Tang Shoulian Independent director Male 68 Incumbent 11.67 -
Yang Xiangdong Chairman of the Supervisory Committee Male 59 Incumbent 0 -
Xu Tao Supervisor Male 56 Incumbent 0 -
Wei Shuanglai Supervisor Male 53 Incumbent 0 -
Chen Xiaobei Supervisor Female 48 Incumbent 0 -
Shi Hong Supervisor Female 38 Incumbent 0 -
Xu Yangping Employee supervisor Male 46 Incumbent 131.31 No
He Daopin Employee supervisor Male 51 Incumbent 100.03 No
Yan Jun Employee supervisor Male 49 Incumbent 76.37 No
Teng Jiao Employee supervisor Male 38 Incumbent 154.46 No
Member of Executive Committee, Executive
Yao Xiangjun Male 43 Incumbent 373.49 No
vice president
Member of Executive Committee, Executive
Zhang Zhaohong Male 50 Incumbent 386.47 No
vice president, CEO of Mini LED BG
Member of Executive Committee, Executive
Zhong Huifeng Male 50 Incumbent 417.37 No
vice president, Chief Performance Officer
Member of Executive Committee, Executive
Feng Liqiong Female 48 Incumbent 417.66 No
vice president, lead counsel
Member of Executive Committee, Senior vice
Xie Zhongdong Male 50 Incumbent 276.39 No
president, Auditor General, Chief Risk Officer
Member of Executive Committee, vice
Miao Chuanbin Male 47 Incumbent 205.04 No
president, Chief Culture Officer
Zhang Yu Vice president, Chief Human Resource Officer Male 50 Incumbent 170.8 No
Liu Hongfeng Vice president, Secretary of the Board Male 42 Incumbent 315.79 No
Lv Tingjie Independent director Male 65 Former 8.33 -
Total -- -- -- -- 5,819.14 --
Equity incentives for directors, supervisors and senior management in the Reporting Period:
√Applicable □Not applicable
Unit: share
Shares Shares Exercise Market Number of Number Number of The grant
Number of
feasible exercise price of price at restricted of restricted price of
restricted
to d during exercised the shares released shares restricted
Name Office title shares held
exercise the shares Period-end held at the shares newly shares
at the
during Reportin during the (RMB/sha period-beg for the granted (RMB/shar
period-end
the g Period Reporting re) in Reportin during the e)
97
BOE Technology Group Co., Ltd. Annual Report 2020
Reportin Period g Period Reporting
g Period (RMB/share Period
)
Chairman of the
Chen Board, Chief of
0 0 - 6 0 0 2,000,000 2.72 2,000,000
Yanshun Executive
Committee
Vice Chairman
of the Board,
Liu President, Vice
0 0 - 6 0 0 1,800,000 2.72 1,800,000
Xiaodong Chairman of
Executive
Committee
Director,
member of
Executive
Sun Yun 0 0 - 6 0 0 1,500,000 2.72 1,500,000
Committee,
Executive vice
president, CFO
Director,
member of
Gao Executive
0 0 - 6 0 0 1,500,000 2.72 1,500,000
Wenbao Committee,
Executive vice
president,
Member of
Executive
Yao
Committee, 0 0 - 6 0 0 1,000,000 2.72 1,000,000
Xiangjun
Executive vice
president
Member of
Executive
Zhang
Committee, 0 0 - 6 0 0 1,000,000 2.72 1,000,000
Zhaohong
Executive vice
president
Member of
Executive
Committee,
Zhong
Executive vice 0 0 - 6 0 0 1,000,000 2.72 1,000,000
Huifeng
president, Chief
Performance
Officer
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BOE Technology Group Co., Ltd. Annual Report 2020
Member of
Executive
Feng Committee,
0 0 - 6 0 0 1,000,000 2.72 1,000,000
Liqiong Executive vice
president, lead
counsel
Member of
Executive
Committee,
Xie
Senior vice
Zhongdon 0 0 - 6 0 0 750,000 2.72 750,000
president,
g
Auditor
General, Chief
Risk Officer
Member of
Executive
Miao Committee,
0 0 - 6 0 0 650,000 2.72 650,000
Chuanbin vice president,
Chief Culture
Officer
Vice president,
Chief Human
Zhang Yu 0 0 - 6 0 0 634,000 2.72 634,000
Resource
Officer
Vice president,
Liu
Secretary of the 0 0 - 6 0 0 750,000 2.72 750,000
Hongfeng
Board
Total -- 0 0 -- -- 0 0 13,584,000 -- 13,584,000
The restricted shares granted to the directors and senior management of the Company are restricted for
a period of 24 months, 36 months and 48 months from the grant date of this equity incentive on 21
Note (if any)
December 2020. As at the end of the Reporting Period, all equity incentives received by the directors
and senior management of the Company were unlocked shares.
V Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent 2,346
Number of in-service employees of major subsidiaries 53,242
Total number of in-service employees 76,459
Total number of paid employees in the Reporting Period 76,459
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BOE Technology Group Co., Ltd. Annual Report 2020
Number of retirees to whom the Company as the parent or its
22
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 47,309
Sales 2,334
Technical 23,666
Financial 679
Administrative 272
Manager 1,826
Other 373
Total 76,459
Educational backgrounds
Educational background Employees
Doctor and post-doctorate 368
Master 8,639
Bachelor 19,033
College 22,432
Technical secondary school 10,894
Other 15,093
Total 76,459
2. Employee Remuneration Policy
The Company has established the remuneration system based on the position, ability and business performance, paid attention to the
external competitive compensation and internal fairness, strengthening the control of the group as well as considering the difference
among all business groups and subsidiaries.
3. Employee Training Plans
Since its establishment in 2015, BOE University (BOEU) has been adhering to the philosophy of "education before career", tapping
and developing excellent cultural and wisdom assets to help various professionals grow. It has been cultivating a new generation of
professional executives and business leaders, focusing on improving organizational performance and promoting the achievement of
corporate strategic goals. BOEU is committed to providing targeted training programs for the Group's industrialists, professionals,
managers and leaders, and helping BOE share its corporate philosophy and culture with similar SMEs, upstream and downstream
industrial chain and eco-chain partners to achieve mutual benefits and win-win results. After five years of efforts, BOEU is steadily
exploring and developing towards the vision of "becoming an internationally competitive and respectable industrial university".
In 2020, BOEU has formulated the working policy of "user thinking, value creation, open breakthrough, quality improvement and
efficiency increase", and organized and implemented a series of empowerment projects themed with leadership, management,
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BOE Technology Group Co., Ltd. Annual Report 2020
marketing, professional techniques and general professional ability. Focusing on the strategic objectives of the Group, BOEU has
designed and implemented a series of empowerment and development projects, combining systemization and customization. Through
the design of combining training and practice, BOEU has effectively helped management to change their concepts and enhance their
management awareness, and cultivated a number of reserve young talents and professional and technical talents for the Group.
Through holding innovation competitions, BOEU has helped the construction of BOE's innovative and entrepreneurial atmosphere
and promoted the transformation of innovation achievements. Through consulting and diagnosis, training and counseling, BOEU has
designed and implemented a number of performance improvement projects, helping to solve practical business problems. At the
same time, BOEU actively promotes communication and cooperation with industry chain and eco-chain enterprises by providing
BOE management methodology training for executives of eco-chain enterprises, and has achieved good results.
4. Labor Outsourcing
□ Applicable √ Not applicable
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BOE Technology Group Co., Ltd. Annual Report 2020
Part X Corporate Governance
I General Information of Corporate Bonds
1. Standardized Operation and Perfection of Corporate Governance Structure of the Company in the Reporting Period
The Company has stringently followed laws and rules such as Company Law, Securities Laws, Code of Corporate Governance for
Listed Companies, etc., and requirements of Guidelines of the Shenzhen Stock Exchange for the Standardized Operation of
Companies, to continuously improve the corporate governance of the Company, to perfect internal control system as well as to
promote corporate governance level of the Company.
During Reporting Period, the Company’s board of directors, board of supervisors and senior executives strictly in line with the
requirement of related laws and Company rules and regulations perform their obligations; ensure the standardization and
effectiveness of corporate governance. During the Reporting Period, the Company revised the Articles of Association and Rules of
Procedure of the Board and newly set up Financing Business Management System, Implementing Rules for the Enterprise Annuity
Plan Further promote the standardization of the corporate governance level. During the Reporting Period, the Company continued to
promote the Company’s governance in many ways. Actively arranged the Company's new directors, supervisors to join special
training organized by the Securities regulatory bureau of Beijing, regularly carry out the theme of the franco-prussian propaganda
inside the Company. The Company preserved the related party fund transaction, external guarantee and regularly self-inspection of
the shareholding and its changes of the directors, supervisors and senior executives, through maintaining and perfecting the Shenzhen
Stock Exchange Investors Interactive Platform to strengthen the communication of the investors.
In the Reporting Period, corporate governance of the Company was perfected and operated normally, which was in total compliance
with various requirements on corporate governance of listed companies. No problems such as horizontal competition or illegal
related-party transactions caused by partial restructuring or other reasons were found. The Company will continue to follow the
concept of “honesty, standard, transparency and responsibility”, regulate itself and continuously improve the level of governance.
Main governance of the Company was as follows:
(1) About Shareholders and Shareholders’ General Meetings
As per the Company’s Articles of Association, shareholders enjoyed rights and assumed obligations according to the shares they held.
Organizing and convening procedures of the Company’s shareholders’ general meetings were in compliance with laws and
regulations. The Company paid high attention to legal interests of its shareholders, especially its minority shareholders. Meanwhile,
on the basis of ensuring legitimacy and validity of shareholders’ general meetings, actively provided conveniences including internet
voting for minority shareholders’ joining the general meeting of the shareholders.
(2) About Relationship between the Controlling Shareholder and the Company
The Company was independent from the controlling shareholder and the actual controller in terms of personnel, assets, financing,
organization and business. The controlling shareholder and actual controller of the Company was able to strictly control its behaviors,
with no direct or indirect intervention in the Company’s decision-making, production and operating activities by violating relevant
laws, regulations and the Articles of Association, no behaviors in relation to occupying significant funds of the Company, and no
behaviors in relation to asking the Company to provide guarantees for it or other parties.
(3) About Directors and the Board of Directors
During the Reporting Period, the composition of the Board of Directors of the Company was in line with requirements of regulations
and the Company’s actual situation. All directors possessed necessary knowledge, skills and quality for duty performance. They all
performed their duties as stipulated in the Articles of Association honestly, faithfully and diligently. They learned about and kept a
constant focus on the Company’s production and operation, its financial status and influence and risks of significant events. They
102
BOE Technology Group Co., Ltd. Annual Report 2020
also took the initiative to search for information needed in their decision-making so as to ensure efficient operation and scientific
decision-making of the Board of Directors. Board sessions were organized and convened in strict compliance with the Articles of
Association and Rules of Procedure for the Board of Directors. There were three special committees under the Board of Directors,
namely, the Strategic Committee, the Nomination, Remuneration and Appraisal Committee and the Risk Control and Audit
Committee. The Company also formulated rules of procedure for all the said special committees so that they could perform better.
(4) About Supervisors and the Supervisory Committee
Within the Reporting Period, the Supervisory Committee has enhanced its ability to supervise the legality and compliance of duty
performance of the Company’s financial staffs, directors and senior managers. By way of attending shareholders’ general meetings,
sitting in on board sessions, checking the Company’s compliance with laws and finance periodically, issuing its opinions on relevant
matters, etc., the Supervisory Committee supervised the Company’s finance, duty performance of directors and senior management
staffs, management and capital flows between the Company and its related parties, and safeguarded the legitimate interests and rights
of the Company and its shareholders. Sessions of the Supervisory Committee were organized and convened in strict compliance with
the Articles of Association and the Rules of Procedure for the Supervisory Committee so as to ensure the Supervisory Committee’s
activities for duty performance were rightful and valid.
(5) About Information Disclosure and Transparency
According to the Company Law, the Stock Listing Rules of the Shenzhen Stock Exchange, the Guidelines of the Shenzhen Stock
Exchange for the Standardized Operation of Companies, Companies Publicly Issuing Securities Information Disclosure Standards
on the Contents and Formats No.2 - Content And Format of the Annual Report, the Business Guidelines for Companies Listed at
Shenzhen Stock Exchange No. 2 - Regular Report Disclosure Related Matters. The Articles of Association and Management Methods
for Information Disclosure and other requirements, the Company disclosed information in a timely and fair manner and ensured the
factuality, accuracy and completeness of the information disclosed.
The Company attached importance to communication with investors through investor visits reception, investors interaction platform,
online business performance explanation session, telephone and attending the investment strategy session organized by the securities
brokers, etc. Except for the aforesaid services, the Company’s senior management joined in the investor conference held by large
international investment institutions, actively communicated with the global institutional investors and discussed the situation and
development strategy of the Company with investors and analyst, so as to promote the open, transparent, efficient and consistent
communication between the Company, investors and analyst of securities, made them known more about the strategy, operation and
development of the Company. As unremitting effort was made to establish the investor relations communication platform, the
Company innovated and developed the investor relations mini APP. While the communication will become more convenient between
the investor and the Company via the digital platform, the compliance and fairness of the investor relations work can also be
guaranteed.
2. Governance Systems of the Company Revised during the Reporting Period
During the Reporting Period, based on the development demand, the Company revised a number of governance systems which had
been disclosed on Cninfo and details were presented in the following table:
Diclosure date Name of system Established/Revised
24 April 2020 Composition and Rules of Procedure for Risk Control and Audit Revised
Committee under the Board of Directors
24 April 2020 Composition and Rules of Procedure for Nomination, Remuneration Revised
and Appraisal Committee under the Board of Directors
24 April 2020 Management System for Information Disclosure Revised
24 April 2020 Management System for Independent Directors Revised
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BOE Technology Group Co., Ltd. Annual Report 2020
24 April 2020 Management System for Registration of Insiders Revised
24 April 2020 Management System for Investor Relations Revised
24 April 2020 Internal Audit System Revised
24 April 2020 Management System for Internal Control Revised
24 April 2020 Management System for Raised Funds Revised
24 April 2020 Management System for Financial Products and Structural Deposits Revised
24 April 2020 Measures for Administration of External Guarantees Revised
29 May 2020 Articles of Association Revised
29 May 2020 Rules of Procedures for Shareholders Meetings Revised
29 May 2020 Rules of Procedure for the Board of Directors Revised
29 May 2020 Rules of Procedure for the Supervisory Committee Revised
Indicate by tick market whether there is any material incompliance with the regulatory documents issued by the CSRC governing the
governance of listed companies.
□ Yes √ No
No such cases in the Reporting Period.
II The Company’s Independence from Its Controlling Shareholder in Business, Personnel,
Asset, Organization and Financial Affairs
The Company was independent from the controlling shareholder and the actual controller in terms of business, personnel, assets,
organization and financing, with independent & complete business and capability to operate independently.
1. In business, the Company was independent from the controlling shareholder and the actual controller, with its own production and
business departments and management system, the Company had the capability to make its own decisions, assume sole responsibility
for its profits and losses, and operate independently with independent and complete business.
2. In personnel, the Company was completely independent in labor, staff and remunerations. The Company had its own operating
management team. CEO, President, Chief Financial Officer, Secretary of the Board as well as other senior management staffs of the
Company all worked on full-time basis in the Company and did not hold any post in or receive any remuneration in the controlling
shareholder unit.
3. In assets, the Company had independent and complete assets. With clear ownership on its assets, the Company independently
owned the production system, ancillary production system as well as supporting facilities for major businesses, as well as assets like
land use rights and intellectual property rights, etc.. Neither the controlling shareholder nor the actual controller appropriated any
assets of the Company.
4. In organization, the Company had established its organization completely independent from the controlling shareholder and the
actual controller, with independent and sound organs and corporate governance structure. The Company had not handled any official
affairs jointly with the controlling shareholder or the actual controller. There were no subordinate relationships between the
controlling shareholder & its functional departments and the Company & its functional departments.
5. In financing, the Company had established independent financial departments, with full-time finance personnel. The Company had
also formulated a standard and independent finance accounting system as well as financial measurement system, established the
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BOE Technology Group Co., Ltd. Annual Report 2020
corporate financial management archives and deployed relevant administrative personnel for them, opened independent account in
bank, and paid tax independently.
III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Index to disclosed
Meeting Type participation Date of the meeting Disclosure date
information
ratio
Announcement on
Resolution of the
2019 Annual
General Meeting
(2020-039) disclosed
on China Securities
The 2019 Annual General Annual General
30.81% 29 May 2020 30 May 2020 Journal, Shanghai
Meeting Meeting
Securities News,
Securities Times and
Ta Kung Pao as well
as
http://www.cninfo.co
m.cn.
Announcement on
Resolution of the 1st
Extraordinary
General Meeting of
2020 (2020-063)
disclosed on China
The 1st Extraordinary General Extraordinary
34.10% 12 October 2020 13 October 2020 Securities Journal,
Meeting of 2020 General Meeting
Shanghai Securities
News, Securities
Times and Ta Kung
Pao as well as
http://www.cninfo.co
m.cn.
Announcement on
The 2nd Extraordinary General Extraordinary
30.84% 17 November 2020 18 November 2020 Resolution of the 2nd
Meeting of 2020 General Meeting
Extraordinary
105
BOE Technology Group Co., Ltd. Annual Report 2020
General Meeting of
2020 (2020-071)
disclosed on China
Securities Journal,
Shanghai Securities
News, Securities
Times and Ta Kung
Pao as well as
http://www.cninfo.co
m.cn.
2. Extraordinary General Meetings Convened at the Request of Preferred Shareholders with Resumed
Voting Rights
□ Applicable √ Not applicable
V Performance of Duty by Independent Directors in the Reporting Period
1. Attendance of Independent Directors at Board Meetings and General Meetings
Attendance of independent directors at board meetings and general meetings
Board The
Total number of Board meetings Board meetings independent
Board
board meetings attended by way meetings the director failed General
meetings
Independent director the independent of attended independen to attend two meetings
attended on
director was telecommunicati through a t director consecutive attended
site
eligible to attend on proxy failed to board meetings
attend (yes/no)
Wang Huacheng 12 2 10 0 0 No 1
Hu Xiaolin 12 2 10 0 0 No 2
Li Xuan 12 2 10 0 0 No 3
Tang Shoulian 9 1 8 0 0 No 3
Lyu Tingjie (former) 3 0 3 0 0 No 1
Why any independent director failed to attend two consecutive board meetings:
Not applicable.
2. Objections Raised by Independent Directors on Matters of the Company
Indicate by tick mark whether any independent directors raised any objections on any matter of the Company.
□ Yes √ No
No such cases in the Reporting Period.
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BOE Technology Group Co., Ltd. Annual Report 2020
3. Other Information about the Performance of Duty by Independent Directors
Indicate by tick mark whether any suggestions from independent directors were adopted by the Company.
√ Yes □ No
Suggestions from independent directors adopted or not adopted by the Company
The Company has four current independent directors, who are experts and scholars in the fields of finance, law and industry. During
the Reporting Period, in accordance with Company Law, Securities Law, Stock Listing Rules, Guidance on Establishing Independent
Director System for Listed Companies, Articles of Association and Independent Director System, the independent directors paid
special attention to the standardized operation of the Company, performed their duties independently and diligently, issued many
precious professional advice in terms of the perfection of systems and routine operating decision-making, etc., and issued their
independent and fair opinion as independent directors on the related-party transactions, engagement of audit firm, decision of annual
remuneration of senior management staffs, external guarantee and other events needing their opinion occurred in the Reporting
Period, as well as played their due roles in perfecting the supervisory mechanism of the Company, protecting the legal right of the
Company and the whole shareholders.
VI Performance of Duty by Specialized Committees under the Board in the Reporting Period
1. Duty fulfillment of the Strategy Committee under Board of Directors
In the Reporting Period, the Strategy Committee under Board of Directors conscientiously controlled the strategic guidance,
significant projects, and production and operation activities. During the recess of the board session, the Strategy Committee was in
charge of working out the operating strategies of the Company, planning its significant investment and financing projects, and
monitoring its major operation activities, which played an important role in ensuring the Company’s stable and smooth operation in
the year.
2. Duty fulfillment of the Audit Committee under Board of Directors
In the Reporting Period, the Audit Committee conscientiously performed its routine duties, and actively advanced the launch of the
audit work for Y2020. Before the periodic reports were submitted to the Board for review, the Audit Committee convened special
sessions to discuss the reports. At the sessions, the committee members listened to relevant reports, expressed their opinions and put
forward constructive advices concerning the Company’s internal control, financial auditing and so on.
The Committee will quarterly examine the Company’s risk management, auditing and supervision work, and supervise the internal
control’s effective implementation. Meanwhile, the committee will also hold the annual report audit communication meeting so as to
deliberate the annual internal control evaluation report and make relevant decisions.
The 2020 annual audit work on financial report of the Audit Committee was detailed as follows:
1) Before the audit, the Committee discussed and decided the schedule of audit work for the 2020 annual report with KPMG
Huazhen Certified Public Accountants (LLP) (hereinafter referred to as “KPMG”);
2) Before the presence of KPMG, the Committee reviewed the financial statements prepared by the Company and issued a written
opinion;
3) Upon the presence of KPMG, the Audit Committee convened meetings to communicate with KPMG, reviewed the Company’s
financial statements following the preliminary audit opinion issued by KPMG, and issued the written opinion concerned. Before the
Board reviewed the annual report, the Committee reviewed the annual financial statements, the employment of the CPAs firm, etc.,
and made resolutions for further review by the Board.
4) In the audit process, the Committee issued a written Audit Urge Letter to KPMG, asking KPMG to finish the audit in an orderly
manner in strict accordance with the set schedule, so as to submit the annual audit report on time;
The Audit Committee is of the opinion that the Financial Report is complete and factual with complete consolidated entities and
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BOE Technology Group Co., Ltd. Annual Report 2020
statements, an accurate consolidation basis, a steady and consistent accounting policy, proper application of the accounting policy
and reasonable accounting estimates, which is in line with the Enterprise Accounting Standards and other regulations promulgated by
the Ministry of Finance.
3. Duty fulfillment of Nomination & Remuneration & Appraisal Committee under Board of Directors
In the Reporting Period, in accordance with relevant rules and laws, the Nomination & Remuneration & Appraisal Committee
conscientiously performed its duties endowed by the Board through strictly executing the appointment procedure of directors, and
senior management. And it reviewed the basic remuneration of senior managerial of the Company, the Proposal on the Appointment
of Professional Manager, the Proposal on the Election of Independent Director, the Proposal on the First Grant of Share Options and
Restricted Shares to Awardees under the 2020 Share Option and Restricted Share Incentive Plans, etc. were approved.
VII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting
Period.
□ Yes √ No
The Supervisory Committee raised no objections in the Reporting Period.
VIII Appraisal of and Incentive for Senior Management
According to the Articles of Association, Management System for Professional Managers and the Performance Management System,
members of the senior management of the Company are appointed by the Board of Directors and sign the Appointment Contract and
the Annual Target Responsibility Paper. The annual performance assessment and appointment period assessment will be
implemented. The annual performance assessment is determined by the annual task breakdown of the current year's targets and the
appointment period targets, and the appointment period assessment is based on medium- and long-term targets, and the salary and
rewards are delivered according to the assessment results. Meanwhile, according to BOE's 2020 Stock Option and Restricted Stock
Incentive Scheme and relevant laws and regulations, the granted stock interests will be determined to be unlocked after the lock-up
period based on the achievement of relevant conditions.
IX Internal Control
1. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes √ No
2. Internal Control Self-Evaluation Report
Disclosure date of the internal control
13 April 2021
self-evaluation report
Index to the disclosed internal control On 13 April 2021, the Company disclosed 2020 Internal Control Appraisal Report,
self-evaluation report refer to www.cninfo.com.cn for details.
Evaluated entities’ combined assets as % of
99.24%
consolidated total assets
Evaluated entities’ combined operating 95.46%
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BOE Technology Group Co., Ltd. Annual Report 2020
revenue as % of consolidated operating
revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over financial Weaknesses in internal control not
Type
reporting related to financial reporting
Evaluation standards for internal defects
not related to financial reporting
The nature standards of internal control specified by the Company are as below:
deficiency evaluation over financial Material weakness:
reporting determined by the Company are as (1) The business scope of the Company
follows: violates national laws and regulations
Material weakness: In case of the following seriously;
situations, it will be deemed as that major (2) The decision-making procedure is not
defects (including but not limited to the scientific, major decision errors are
following situations) may occur: released, the development strategies of
(1) Directors, supervisors and Senior the Company are deviated from severely
Management make the malpractices; and major property losses are caused for
(2) The enterprise corrects the released the Company;
financial statements; (3) Safety and environmental accidents
(3) The certified public accountant finds that occur, resulting in major negative effects
there is a material misstatement in the on the Company;
Nature standard current financial report, but the internal (4) A lot of senior management personnel
control fails to find the misstatement in the and key technicians leave the Company;
process of operation; (5) Important business lacks system
(4) Supervision of the risk control and audit control or the system is failure;
committee and the internal audit (6) Material weaknesses or serious
organization for internal control is weaknesses are not corrected.
ineffective. Serious weakness refers to one Serious weakness refers to one or
or combination of several control items, and combination of several control items, and
its severity and economic consequence are its severity and economic consequence
lower than those of the material weaknesses are lower than those of the material
but may still affect the real and accurate weaknesses but may still affect the
objective of the financial report. enterprise to deviate from the control
The common weakness refers to other goal.
internal control weaknesses except for The common weakness refers to other
material weaknesses and serious weaknesses. internal control defects except for
material weaknesses and Serious
weakness.
The quantitative standards of internal control The quantitative standards for internal
deficiency evaluation over financial control defects not related to financial
Quantitative standard
reporting determined by the Company are as reporting determined by the Company
follows: are consistent with those over the
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BOE Technology Group Co., Ltd. Annual Report 2020
Material weakness: The amount reported financial reporting. See the left side for
incorrectly is ≥1‰* total amount of assets of details.
the Group (operating revenue)
Serious weakness: 0.5‰*total amount of
assets of the Group (operating revenue)≤ the
amount reported incorrectly<1‰*total
amount of assets of the Group (operating
revenue)
Common weakness: 0.1‰*total group assets
(operating revenue)≤ the amount reported
incorrectly <0.5‰*total group assets
(operating revenue)
Number of material weaknesses in internal
0
control over financial reporting
Number of material weaknesses in internal
0
control not related to financial reporting
Number of serious weaknesses in internal
0
control over financial reporting
Number of serious weaknesses in internal
0
control not related to financial reporting
X Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We believe that the Company and important subsidiaries make valid internal control on financial report in all significant aspects on
31 December 2020 according to the Basic Rules on Enterprise Internal Control and other relevant stipulations.
Independent auditor’s report on
Disclosed
internal control disclosed or not
Disclosure date 13 April 2021
The Company disclosed the Audit Report on Internal Control on 13 April 2021, for details,
Index to such report disclosed
please refer to http://www.cninfo.com.cn
Type of the auditor’s opinion Standard unqualified opinion
Material weaknesses in internal
control not related to financial No
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal
control.
□ Yes √ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal
control self-evaluation report issued by the Company’s Board.
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BOE Technology Group Co., Ltd. Annual Report 2020
√ Yes □ No
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BOE Technology Group Co., Ltd. Annual Report 2020
Part XI Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of this
Report’s approval or were due but could not be redeemed in full?
Yes
I. Basic Information of the Corporate Bonds
Balance
Bond Coupon
Bond name Abbr. Date of issue Maturity (RMB’0, Way of redemption
code rate
000)
If the issuer does not
execute its right in the
2019 Public Offering of deferred interest payment,
Renewable Corporate corresponding interests
28 October 29 October
Bonds of BOE (for 19BOEY1 112741 800,000 4.00% shall be paid for this issue
2019 2022
qualified investors) of bonds yearly, and the
(Phase I) last installment of interest
shall be paid with the
redemption of principal.
If the issuer does not
2020 Public Offering of execute its right in the
Renewable Corporate deferred interest payment,
Bonds of BOE (for corresponding interests
27 February 28 February
qualified investors) 20BOEY1 149046 200,000 3.64% shall be paid for this issue
2020 2023
(Phase I) (epidemic of bonds yearly, and the
prevention and control last installment of interest
bonds) shall be paid with the
redemption of principal.
If the issuer does not
2020 Public Offering of execute its right in the
Renewable Corporate deferred interest payment,
Bonds of BOE (for corresponding interests
qualified investors) 20BOEY2 149065 18 March 2020 19 March 2023 200,000 3.54% shall be paid for this issue
(Phase II) (epidemic of bonds yearly, and the
prevention and control last installment of interest
bonds) shall be paid with the
redemption of principal.
2020 Public Offering of If the issuer does not
20BOEY3 149108 24 April 2020 27 April 2024 200,000 3.50%
Renewable Corporate execute its right in the
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BOE Technology Group Co., Ltd. Annual Report 2020
Bonds of BOE (for deferred interest payment,
qualified investors) corresponding interests
(Phase III) (epidemic shall be paid for this issue
prevention and control of bonds yearly, and the
bonds) last installment of interest
shall be paid with the
redemption of principal.
Listed or transferred trading place of
SZSE.
the Company bonds
Appropriate arrangement of the
The qualified investors
investors
Interest payment during the The Company paid the interests of the corporate bonds 19BOEY1 for the period from 29
Reporting Period October 2019 to 28 October 2020 on 29 October 2020.
Execution of the relevant regulations For the renewable corporate bonds “19BOEY1”, “20BOEY1”, “20BOEY2” and
during the Reporting Period such as “20BOEY3” 3 interest-bearing years shall be regarded as a cycle. At the end of each cycle,
the affiliated option clause of the the issuer shall have the right to conditionally extend the issue of bonds for another cycle (3
issuers or investors, special clauses years) or choose to fully redeem the due bonds at the end of the cycle. All bonds issued in
such as the exchangeable regulations the Reporting Period entitle the issuer the right in the deferred interest payment. As of the
of the Company bonds (if applicable) approval quotation date of the Annual Report, these bonds have not yet been executed.
II. List of the Bond Trustee and the Rating Organization
Bond trustee:
Rm. 2203,
North Tower, Zhu Mingqiang,
China Shanghai Han Yong, Liao
Office Contact
Name Securities Co., Securities Plaza, Ling, Xu Tianquan, Contact number 021-68801569
address person
Ltd. 528 Pudong Chen Qiaoling,
Road South, Minggennamuer
Shanghai
Rating organization executed the tracking rating of the corporate bonds of the Reporting Period:
Office 12/F, PICC Building, No.2 Jianwai Street, Chaoyang
Name China Lianhe Credit Rating Co., Ltd.
address District, Beijing
The People's Bank of China and the China Securities Regulatory Commission jointly
Alternation reasons, execution process and issued Announcement [2018] No. 14 to encourage the integration of different
influences on the investors’ interests etc. if credit-rating agencies, as legal entities, under the same actual controller through
there was alternation of the bond trustees mergers, restructuring and other market-based approaches. China Lianhe Credit Rating
and the credit rating agencies engaged by Co., Ltd. (the former parent company of the rating agency United Ratings) assumed all
the Company during the Reporting Period the securities rating business of United Ratings and its corresponding rights and
(if applicable) obligations on 26 October 2020. China Lianhe Credit Rating Co., Ltd. will be
responsible for the Company's subsequent follow-up rating business, which will have
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BOE Technology Group Co., Ltd. Annual Report 2020
no impact on the Company's bond business.
III. List of the Usage of the Raised Funds of the Corporate Bonds
List of the usage of the raised funds and The Company executed the internal decision-making process strictly according to the
the execution process of the Company applications committed by the prospectus as well as the review and approval
bonds regulations of the Board of Directors and meetings of shareholders of the Company.
Ending balance (RMB’0,000) 1,058.13
The Company signed the Agreement on BOE’s Public Issue of Renewable Corporate
Bonds Account and Three-party Supervision of Funds with Beijing Branch of Ping An
Operating situation of the raised funds Bank, CITIC Bank Beijing Branch, BDA Sub-branch of ABC, and BDA Sub-branch of
special account ICBC and the Business Department of Beijing Branch of China Merchants Bank and
opened special bank accounts for the raised fund so as to earmark the fund for its
specified purpose only.
Whether the usage of the raised funds met
with the usage, using plan and other Yes
agreements committed on the prospectus
IV. Rating Situation of the Corporate Bonds Information
Corporate Outlook on Credit rating of
Bond name Letter of credit rating Date of report disclosure
credit rating corporate rating corporate bonds
19BOEY1 AAA Stable AAA LH[2019]No.2141 23 October 2019
20BOEY1 AAA Stable AAA LH[2020]No.236 25 February 2020
20BOEY2 AAA Stable AAA LHPZ[2020]No.376 16 March 2020
20BOEY3 AAA Stable AAA LHPZ[2020]No.692 22 April 2020
On 19 June 2020, United Credit Ratings Co., Ltd. issued the Follow-up Rating Report of the 2020 for the Renewable Corporate
Bonds of BOE Technology Group Co., Ltd. According to the Report, the issuer was still granted with a corporate long-term credit
rating of AAA with rating outlook rated as Stable; the bond credit rating remained AAA. The Follow-up Rating Report was
published on http://www.cninfo.com.cn/ and the website of United Ratings at www.unitedratings.com.cn. on 22 June 2020.
It is estimated that China Lianhe Credit Rating Co., Ltd. will issue the Follow-up Rating Report of the 2021 for the Renewable
Corporate Bonds of BOE Technology Group Co., Ltd. in June 2021. The Company will disclose the tracking rating analysis report on
www.szse.cn in time. And please investors pay attention to it.
V. Credit-adding Mechanism, Repayment Plan and Other Repayment Guarantee Measures of
the Corporate Bonds
“19BOEY1”, “20BOEY1”, “20BOEY2” and “20BOEY3” renewable corporate bonds are unsecured bonds without any other credit
enhancement measures.
“19BOEY1” Bond Retirement Plan can be described as follows: (1) the value date of this issue of bonds is 29 October 2019; (2) if the
issuer does not execute the right of deferred payment of interest, corresponding interests shall be paid yearly upon matured, and each
October 29 (in case of official holidays or weekends, it shall postpone to the next working day) within the existing period shall be the
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BOE Technology Group Co., Ltd. Annual Report 2020
interest payment day for the previous interest-bearing year; (3) the issuer of corporate bonds shall have the option for renewal. If the
issuer chooses to extend the bonds’ duration in the renewal option execution year, the bonds’ duration shall extend for another cycle
from the interest payment day of the interest-bearing year. If the issuer chooses to fully redeem the bonds in the renewal option
execution year, the interest payment day of the interest-bearing year shall be the bonds’ redemption day.
“20BOEY1” Bond Retirement Plan can be described as follows: (1) the value date of this issue of bonds is 28 February 2020; (2) if the
issuer does not execute the right of deferred payment of interest, corresponding interests shall be paid yearly upon matured, and each
February 28 (in case of official holidays or weekends, it shall postpone to the next working day) within the existing period shall be the
interest payment day for the previous interest-bearing year; (3) the issuer of corporate bonds shall have the option for renewal. If the
issuer chooses to extend the bonds’ duration in the renewal option execution year, the bonds’ duration shall extend for another cycle
from the interest payment day of the interest-bearing year. If the issuer chooses to fully redeem the bonds in the renewal option
execution year, the interest payment day of the interest-bearing year shall be the bonds’ redemption day.
“20BOEY2” Bond Retirement Plan can be described as follows: (1) the value date of this issue of bonds is 19 March 2020; (2) if the
issuer does not execute the right of deferred payment of interest, corresponding interests shall be paid yearly upon matured, and each
March 19 (in case of official holidays or weekends, it shall postpone to the next working day) within the existing period shall be the
interest payment day for the previous interest-bearing year; (3) the issuer of corporate bonds shall have the option for renewal. If the
issuer chooses to extend the bonds’ duration in the renewal option execution year, the bonds’ duration shall extend for another cycle
from the interest payment day of the interest-bearing year. If the issuer chooses to fully redeem the bonds in the renewal option
execution year, the interest payment day of the interest-bearing year shall be the bonds’ redemption day.
“20BOEY3” Bond Retirement Plan can be described as follows: (1) the value date of this issue of bonds is 27 April 2020; (2) if the
issuer does not execute the right of deferred payment of interest, corresponding interests shall be paid yearly upon matured, and each
April 27 (in case of official holidays or weekends, it shall postpone to the next working day) within the existing period shall be the
interest payment day for the previous interest-bearing year; (3) the issuer of corporate bonds shall have the option for renewal. If the
issuer chooses to extend the bonds’ duration in the renewal option execution year, the bonds’ duration shall extend for another cycle
from the interest payment day of the interest-bearing year. If the issuer chooses to fully redeem the bonds in the renewal option
execution year, the interest payment day of the interest-bearing year shall be the bonds’ redemption day.
The repayment guarantee measures of the corporate bonds of “19BOEY1”, “20BOEY1”, “20BOEY2” and “20BOEY3”: to formulate
the Meeting Regulations of the Bondholders and the repayment guarantee measures; to formulate and strictly carry out the funds
management plans; to fully exert the functions of the bond trustees; to strictly disclose the information; at the same time, when expected
to fail to repay the principals and interest of the bonds on time or failed to repay the principals and interest of the bonds when expired,
the Company will at least adopt the measures of the execution of the capital expenditures projects such as to postpone the significant
external investment and the purchase as well as merger and so on that guarantee the repayment of the debts.
During the Reporting Period and before the approval quotation date of this Report, there was no alternation of the credit-adding
mechanism, debt repayment plan and other repayment guarantee measures of the corporate bonds.
VI. Convene Situation of the Bonds Holders Meeting during the Reporting Period
Naught
VII. List of the Duty Execution of the Bonds Trustee during the Reporting Period
As the bonds trustee of the Reporting Period, China Securities Co., Ltd. constantly paid attention to the operating, finance and credit
situation of the Company strictly according to the relevant laws and regulations such as the Regulations of the Offering and Trading
of the Corporate Bonds, Professional Code of Conduct of the Bond Trustee of the Corporate Bonds and vigorously executed the
responsibilities as a trustee as well as maintained the legal interests of the bondholders; there was no any situation conflicted to the
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BOE Technology Group Co., Ltd. Annual Report 2020
Company’s interests when executing the relevant responsibilities of the trustee.
VIII. The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Item 2020 2019 YoY Change
EBITDA（RMB’0,000） 3,215,335 2,201,586 46.05%
Current ratio 1.23 1.33 -7.52%
Asset-liability ratio 59.13% 58.56% 0.57%
Quick ratio 1.06 1.17 -9.40%
19.23% 16.26% 2.97%
Total debt ratio of EBITDA
Times interest earned 2.27 1.14 99.12%
Times interest earned of cash 8.07 5.80 39.14%
Times interest earned of 6.69 6.03 10.95%
EBITDA
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
Main reason of the above accounting data and the financial indicators with the YoY change exceeded 30%
√ Applicable □ Not applicable
EBITDA increased 46.05% compared with that of the same period of last year, mainly due to the increase of total profit.
Times interest earned increased 99.12% compared with that of the same period of last year, mainly due to the increase of total profit.
Times interest earned of cash increased 39.14% compared with that of the same period of last year, mainly due to the increase of net
cash generated from/used in operating activities.
IX. List of the Interest Payment of Other Bonds and Debt Financing Instruments during the
Reporting Period
The Company paid interest of the private placement bond Euro PP for the period from 24 December 2019 to 23 December 2020
respectively on 30 June 2020 and 24 December 2020. .
X. List of the Acquired Bank Credit Lines, Usage and the Repayment of the Bank Loans
The Company has standardized operation, good reputation, strong profitability and solvency. It has a good credit status with major
banks. It has maintained long-term partnership with major domestic commercial banks, obtained higher credit lines from various
banks, and has indirect debt financing capabilities Strong. Up to 31 December 2020, the total amount of credit lines from major
banks was RMB63 billion with the used credit lines of RMB30.5 billion and the unused credit lines of RMB32.5 billion. The
Company has a good record of debt repayment. The principals and the interest of bank loans were repaid on time. No bank loans
were extended in the Reporting Period.
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BOE Technology Group Co., Ltd. Annual Report 2020
XI. List of the Execution of the Agreements or the Commitments Related to the Company
Bonds Raising Specification during the Reporting Period
Up to the approval quotation date of the Annual Report, the Company strictly carried out each agreement and commitment of the
current bond prospectus, and there was no any situation of the inefficient execution of the relevant agreements or commitments
according to the bond prospectus by the Company that caused the negative influences on the bonds investors.
XII. Significant Events Occurring during the Reporting Period
As of the approval quotation date of the Annual Report, no significant events presented in Article 45 of Measures for the
Administration of Corporate Bond Issuance and Trading occurred.
XIII. Whether there Was Guarantor of the Corporate Bonds
□ Yes √ No
117
Part XII Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Standard unqualified audit opinion
Date of signing this report April 9, 2021
Name of the independent auditor KPMG Huazhen Certified Public Accountants (LLP)
Reference number of auditor’s report KPMGHZSZ No. 2102796
Name of the certified public accountants Zhang Huan, Chai Jing
AUDITORS’ REPORT
毕马威华振审字第 2102796 号
All shareholders of BOE Technology Group Co., Ltd.:
Opinion
We have audited the accompanying financial statements of BOE Technology Group Company Limited (“BOE”), which
comprise the consolidated and company’s balance sheet as at 31 December 2020, the consolidated and company’s income
statement, the consolidated and company’s cash flow statement, and the consolidated and company’s statement of changes in
shareholders’ equity for the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and company’s
financial position of BOE as at 31 December 2020, and its consolidated and company’s financial performance and cash flows
of BOE for the year then ended in accordance with Accounting Standards for Business Enterprises issued by the Ministry of
Finance of the People’s Republic of China.
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified Public Accountants (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of BOE in accordance with the China Code of Ethics for Certified
Public Accountants (“the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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AUDITORS’ REPORT (continued)
毕马威华振审字第 2102796 号
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Revenue recognition
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and
accounting estimates” 23 and “V. Notes to the consolidated financial statements” 44.
The Key Audit Matter How the matter was addressed in our audit
The revenue of BOE and its subsidiaries (“BOE Group”) is Our audit procedures to evaluate revenue recognition
mainly derived from the sales of products relating to display included the following:
device across the domestic and overseas market.
Evaluate the design and operation effectiveness of key
The sales contracts/orders signed between BOE Group and internal controls related to revenue recognition;
its customers (mainly electronic equipment manufacturers)
contain various trading terms. BOE Group judges the Check key sales contracts/orders on a sampling basis to
transfer timing of control according to the trading terms, identify relevant trading terms, and evaluate whether
and recognises revenue accordingly. Depending on the the accounting policies for revenue recognition of BOE
trading terms, the income is usually recognised when the Group meet the requirements of the Enterprise
goods are delivered and received, or when they are received Accounting Standards;
by the carrier.
We identified the recognition of BOE Group’s revenue as a On a sampling basis and according to different trading
key audit matter because revenue, as one of BOE Group’s terms, reconcile the revenue recorded in the current
key performance indicators, involves various trading terms, year to relevant supporting files such as relevant orders,
and there is an inherent risk that revenue may not be shipping orders, sales invoices, customs declarations,
recognised in a correct period. delivery receipts, etc. to evaluate whether revenue is
recognised in accordance with the accounting policy of
BOE Group;
On a sampling basis and according to different trading
terms, cross check the revenue recorded before and
after the balance sheet date against relevant supporting
files such as relevant orders, shipping orders, sales
invoices, customs declarations, delivery receipts, etc. to
evaluate whether revenue is recorded in the appropriate
period;
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AUDITORS’ REPORT (continued)
毕马威华振审字第 2102796 号
Key Audit Matters (continued)
Revenue recognition (continued)
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and
accounting estimates” 23 and “V. Notes to the consolidated financial statements” 44.
The Key Audit Matter How the matter was addressed in our audit
Select a sample based on the characteristics and nature
of customer’s transaction, and perform certification on
the balance of accounts receivable as at the balance
sheet date and the sales transaction amount during the
current year;
On a sampling basis, check the written-back of revenue
after the balance sheet date (including sales discounts
and sales returns, etc.) with relevant supporting
documents to assess whether revenue is recorded in the
appropriate period;
Select revenue accounting entries that meet specific risk
criteria and check related supporting documents.
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AUDITORS’ REPORT (continued)
毕马威华振审字第 2102796 号
Key Audit Matters (continued)
Book value of fixed assets and construction in progress
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and
accounting estimates” 13, 14 and “V. Notes to the consolidated financial statements” 14, 15.
The Key Audit Matter How the matter was addressed in our audit
BOE Group continued to invest in building production lines Our audit procedures to assess the book value of fixed
of display device to expand its production capacity. As at 31 assets and construction in progress included the following:
December 2020, the book value of fixed assets and
construction in progress amounted to RMB 267,442 million. Evaluate the design and operation effectiveness of key
internal controls (including estimating useful life and
The judgement made by the management on the following residual values, etc.) related to the integrity, existence
aspects will affect the book value of fixed assets and and accuracy of fixed assets and construction in
construction in progress, including: progress;
Determine which type of expenditures are qualified for Check the physical status of construction in progress
capitalisation; and fixed assets on a sampling basis;
Determine the timing for transferring construction in Check capital expenditures with relevant supporting
progress to fixed assets and making depreciation; documents (including purchase agreements/orders,
acceptance orders, engineering construction contracts,
Estimate the useful life and residual value of project progress reports, etc.) on a sampling basis;
corresponding fixed assets.
We identified the book value of fixed assets and Assess whether the capitalised commissioning expenses
construction in progress of BOE Group as a key audit for the current year are in compliance with relevant
matter because the valuation of the book value of fixed capitalisation conditions; check the commissioning
assets and construction in progress involves significant expenses with relevant supporting documents on a
judgement from the management and it is of importance to sampling basis;
the consolidated financial statements.
On the basis of sampling, assess the timing for
transferring construction in progress to fixed assets,
through the inspection of commissioning situation and
the documents for transferring construction in progress
to fixed assets;
Based on our understanding of industry practices and
actual operating conditions of assets, we evaluate the
management’s estimation of the useful life and residual
value of fixed assets.
121
AUDITORS’ REPORT (continued)
毕马威华振审字第 2102796 号
Key Audit Matters (continued)
Impairment of fixed assets and intangible assets
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and
accounting estimates” 19 and “V. Notes to the consolidated financial statements” 14, 16.
The Key Audit Matter How the matter was addressed in our audit
BOE Group principally generates revenue from the Our audit procedures to assess the impairment of fixed
production and sale of display device. Due to the fluctuation assets and intangible assets included the following:
of supply-demand relationship of display device and the
influence of technology upgrading, the profit level of Evaluate management’s identification of asset groups,
different production lines suffer dramatic fluctuation. As at assessment of impairment indications, and assess the
31 December 2020, the book value of fixed assets and design and operation effectiveness of key internal
intangible assets amounted to RMB 236,743 million, the controls for impairment tests;
judgement on impairment indications and impairment test
are material to BOE Group’s financial statements. Based on our understanding of BOE Group’s businesses
and relevant accounting standards, evaluate
The management classifies asset groups based on the management’s classification basis of asset groups and
smallest identifiable group of assets that generates cash judgement basis of impairment indications;
inflows that are independent, and continuously monitors the
trend of market of supply and demand as well as the
technology evolution; comprehensively judges impairment
For asset groups with impairment indications, based on
our understanding of the industry, compare the key
indications of each asset group in accordance with market assumptions in the calculation of recoverable amounts
trends, operating conditions of production lines and used by management with external available data and
technological advanced performance, and performs historical analysis, including future selling prices, sales
impairment test on asset groups if any impairment volume and discount rate used by management, evaluate
indication exists. the key assumptions and estimations used by the
For asset groups with impairment indications, the management;
management assesses whether the book value of fixed assets
and intangible assets as at 31 December 2020 were impaired For asset groups with significant impairment risk, assess
by calculating the present value of expected future cash the competence, professional quality and objectivity of
flows. Calculating the present value of expected future cash experts hired by the management; and adopt our own
flows requires management to make significant judgements, valuation experts’ work, assess if discount rates used for
especially for the estimation of future selling prices, sales estimating the present value of future cash flows by
volume and applicable discount rate. management are within the range used by other
companies in the same industry;
122
AUDITOR’S REPORT (continued)
毕马威华振审字第 2102796 号
Key Audit Matters (continued)
Impairment of fixed assets and intangible assets (continued)
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and
accounting estimates” 19 and “V. Notes to the consolidated financial statements” 14, 16.
The Key Audit Matter How the matter was addressed in our audit
We identified the impairment of fixed assets and intangible Our audit procedures to assess the impairment of fixed assets
assets as a key audit matter because the book value of fixed and intangible assets included the following:
assets and intangible assets is significant to the financial
statements; management’s significant judgements and Compare estimations used for calculating the present
estimations are involved in assessing the classification basis value of expected future cash flows in the previous year
of asset groups, existence of impairment indications and by the management with the actual situation in this year
impairment test of asset groups with impairment indications, to consider the historical accuracy of management’s
which may exist errors or potential management bias. forecast results;
Perform sensitivity analysis on key assumptions,
including future selling prices, sales volume and
discount rates, used in the calculation of recoverable
amount by the management; assess how changes in key
assumptions (individually or collectively) will lead to
different results and assess whether there are indications
of management bias in the selection of key assumptions;
Consider whether the disclosure of impairment of fixed
assets and intangible assets in the financial statements is
consistent with relevant accounting policy.
123
AUDITOR’S REPORT (continued)
毕马威华振审字第 2102796 号
Other Information
BOE’s management is responsible for the other information. The other information comprises all the information included in
2020 annual report of BOE, other than the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the
Accounting Standards for Business Enterprises, and for the design, implementation and maintenance of such internal control
necessary to enable that the financial statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the ability of BOE to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
BOE either intends to liquidate or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the financial reporting process of BOE.
124
AUDITORS’ REPORT (continued)
毕马威华振审字第 2102796 号
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with CSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the BOE’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause BOE to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
125
AUDITORS’ REPORT (continued)
毕马威华振审字第 2102796 号
Auditor’s Responsibilities for the Audit of the Financial Statement (continued)
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within BOE to express an opinion on the financial statements. We are
responsible for the instruction, supervision and execution of Conch Group’s audit, and assume
full responsibility for the audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence and communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence and, where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
KPMG Huazhen LLP Certified Public Accountants Registered in the
People’s Republic of China
Zhang Huan (Engagement Partner)
Beijing China Chai Jing
9 April 2021
126
Consolidated balance sheet
as at 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
Assets
Current assets
Cash at bank and on hand V. 1 73,694,296,095 56,972,723,239
Financial assets held for trading V. 2 4,367,201,833 5,809,184,994
Bills receivable V. 3 215,994,373 331,145,492
Accounts receivable V. 4 22,969,140,355 18,135,687,806
Prepayments V. 5 1,119,595,984 626,985,706
Other receivables V. 6 658,114,833 706,171,112
Inventories V. 7 17,875,454,490 12,396,194,762
Contract assets V. 8 49,897,395 -
Assets held for sale V. 9 186,892,645 173,910,820
Other current assets V. 10 7,848,869,252 9,296,637,067
Total current assets 128,985,457,255 104,448,640,998
The notes on pages 31 to 178 form part of these financial statements.
127
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Assets (continued)
Non-current assets
Long-term equity investments V. 11 3,693,170,224 2,718,037,934
Investments in other equity instruments V. 12 533,645,423 632,076,647
Investment properties V. 13 1,196,168,511 1,241,242,850
Fixed assets V. 14 224,866,586,069 125,786,241,938
Construction in progress V. 15 42,575,849,952 87,376,782,527
Intangible assets V. 16 11,875,926,448 7,416,416,829
Goodwill V. 17 1,400,357,242 707,603,856
Long-term deferred expenses V. 18 299,634,100 345,424,409
Deferred tax assets V. 19 205,041,088 248,153,761
Other non-current assets V. 20 8,624,970,019 9,491,581,559
Total non-current assets 295,271,349,076 235,963,562,310
Total assets 424,256,806,331 340,412,203,308
The notes on pages 31 to 178 form part of these financial statements.
128
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Liabilities and shareholders’ equity
Current liabilities
Short-term loans V. 21 8,599,569,471 6,366,717,121
Bills payable V. 22 1,231,533,895 2,028,917,980
Accounts payable V. 23 27,164,171,682 21,183,567,553
Advance payments received V. 24 124,040,749 1,260,732,785
Contract liabilities V. 25 3,440,720,535 -
Employee benefits payable V. 26 3,758,623,797 2,373,745,454
Taxes payable V. 27 1,077,686,869 730,996,129
Other payables V. 28 32,867,709,024 24,570,589,610
Non-current liabilities due within one year V. 29 24,500,550,121 18,849,281,019
Other current liabilities V. 30 2,194,716,852 1,013,738,515
Total current liabilities 104,959,322,995 78,378,286,166
The notes on pages 31 to 178 form part of these financial statements.
129
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Liabilities and shareholders’ equity (continued)
Non-current liabilities
Long-term loans V. 31 132,452,767,135 107,730,595,615
Debentures payable V. 32 398,971,739 387,878,384
Long-term payables V. 33 2,114,175,683 984,520,824
Provisions V. 34 - 16,457,010
Deferred income V. 35 4,246,231,468 2,204,400,566
Deferred tax liabilities V. 19 1,427,601,154 1,451,825,357
Other non-current liabilities V. 36 5,260,001,443 8,200,542,412
Total non-current liabilities 145,899,748,622 120,976,220,168
Total liabilities 250,859,071,617 199,354,506,334
The notes on pages 31 to 178 form part of these financial statements.
130
BOE Technology Group Co., Ltd.
Consolidated balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Liabilities and shareholders’ equity (continued)
Shareholders’ equity
Share capital V. 37 34,798,398,763 34,798,398,763
Other equity instruments V. 38 14,146,997,427 8,013,156,853
Capital reserve V. 39 37,435,655,934 38,353,242,364
Less: Treasury shares V. 40 1,036,298,508 -
Other comprehensive income V. 41 (22,198,072) (4,566,639)
Surplus reserve V. 42 2,444,416,669 1,516,139,709
Retained earnings V. 43 15,509,794,622 12,381,758,005
Total equity attributable to shareholders of the
Company 103,276,766,835 95,058,129,055
Non-controlling interests 70,120,967,879 45,999,567,919
Total shareholders’ equity 173,397,734,714 141,057,696,974
Total liabilities and shareholders’ equity 424,256,806,331 340,412,203,308
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial The head of the
Officer accounting
department
(Signature and stamp) (Signature and stamp) (Signature and (Signature and
stamp) stamp)
The notes on pages 31 to 178 form part of these financial statements.
131
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
Assets
Current assets
Cash at bank and on hand XV. 1 4,375,497,010 3,680,770,048
Bills receivable - 84,230,531
Accounts receivable XV. 2 3,974,212,308 646,533,115
Prepayments 12,185,651 77,682,682
Other receivables XV. 3 16,345,474,583 4,827,398,094
Inventories 18,622,283 13,935,401
Other current assets XV. 4 177,761,718 109,497,897
Total current assets 24,903,753,553 9,440,047,768
The notes on pages 31 to 178 form part of these financial statements.
132
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Assets (continued)
Non-current assets
Long-term equity investments XV. 5 182,135,057,208 159,389,864,760
Investments in other equity instruments 81,192,872 79,405,724
Investment properties 271,212,241 280,525,802
Fixed assets 1,009,178,229 949,104,308
Construction in progress 418,343,961 358,933,667
Intangible assets XV. 6 1,380,069,827 1,493,632,264
Long-term deferred expenses 105,439,681 109,216,398
Deferred tax assets XV. 7 - 360,268,466
Other non-current assets 2,611,437,988 162,516,190
Total non-current assets 188,011,932,007 163,183,467,579
Total assets 212,915,685,560 172,623,515,347
The notes on pages 31 to 178 form part of these financial statements.
133
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Liabilities and shareholders’ equity
Current liabilities
Short-term loans - 1,220,000,000
Accounts payable 272,241,469 27,919,341
Advance payments received XV. 8 18,286,458 2,117,568,995
Employee benefits payable XV. 9 516,060,153 252,206,075
Taxes payable 87,179,892 107,287,957
Other payables XV. 10 6,541,918,681 5,260,470,974
Non-current liabilities due within one year 7,847,210,073 5,490,440,787
Other current liabilities 1,977,977 1,423,133
Total current liabilities 15,284,874,703 14,477,317,262
Non-current liabilities
Long-term loans XV. 11 38,360,714,121 33,310,701,574
Deferred income XV. 12 3,633,342,446 4,627,393,256
Deferred tax liabilities XV. 7 385,697,604 -
Other non-current liabilities 56,156,661,805 33,297,240,830
Total non-current liabilities 98,536,415,976 71,235,335,660
Total liabilities 113,821,290,679 85,712,652,922
The notes on pages 31 to 178 form part of these financial statements.
134
BOE Technology Group Co., Ltd.
Company balance sheet
as at 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
Liabilities and shareholders’ equity (continued)
Shareholders’ equity
Share capital V. 37 34,798,398,763 34,798,398,763
Other equity instruments V. 38 14,146,997,427 8,013,156,853
Capital reserve XV. 13 36,696,079,366 37,608,039,685
Less: Treasury shares V. 40 1,036,298,508 -
Other comprehensive income XV. 14 90,713,133 193,638,576
Surplus reserve V. 42 2,444,416,669 1,516,139,709
Retained earnings XV. 15 11,954,088,031 4,781,488,839
Total shareholders’ equity 99,094,394,881 86,910,862,425
Total liabilities and shareholders’ equity 212,915,685,560 172,623,515,347
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial The head of the
Officer accounting
department
(Signature and stamp) (Signature and stamp) (Signature and (Signature and
stamp) stamp)
The notes on pages 31 to 178 form part of these financial statements.
135
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
I. Operating income V. 44 135,552,569,729 116,059,590,164
II. Less: Operating costs V. 44 108,823,122,756 98,446,269,296
Taxes and surcharges V. 45 1,078,900,085 861,100,605
Selling and distribution expenses V. 46 3,137,719,001 2,917,865,380
General and administrative expenses V. 47 6,203,600,521 5,214,948,027
Research and development expenses V. 48 7,622,597,925 6,699,973,240
Financial expenses V. 49 2,650,153,972 1,994,150,258
Including: Interest expenses 3,497,697,709 2,525,136,209
Interest income 873,376,712 840,190,118
Add: Other income V. 50 2,337,705,817 2,605,658,711
Investment income V. 51 897,891,109 342,620,691
Including: Income from investment in
associates and joint ventures 444,407,986 200,020,686
Gains from changes in fair value V. 52 31,936,339 137,473,077
Credit losses V. 53 1,827,519 (28,262,627)
Impairment losses V. 54 (3,280,425,399) (2,584,183,258)
Gains from asset disposals V. 55 19,061,846 79,029
III. Operating profit 6,044,472,700 398,668,981
Add: Non-operating income V. 56 120,503,628 208,430,198
Less: Non-operating expenses V. 56 72,139,666 103,349,078
The notes on pages 31 to 178 form part of these financial statements.
136
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
IV. Profit before income tax 6,092,836,662 503,750,101
Less: Income tax expenses V. 57 1,564,566,246 979,991,504
V. Net profit/(losses) for the year 4,528,270,416 (476,241,403)
Attributable to:
Shareholders of the Company 5,035,627,952 1,918,643,871
Non-controlling interests (507,357,536) (2,394,885,274)
The notes on pages 31 to 178 form part of these financial statements.
137
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
VI. Other comprehensive income, net of tax V. 41 165,945,656 228,445,653
Other comprehensive income (net of tax)
attributable to owners of the Company 177,438,725 236,859,881
(1) Items that will not be reclassified to profit or
loss
a. Other comprehensive income recognised
under equity method 136,381,254 366,930,596
b. Changes in fair value of investments in
other equity instruments (19,975,534) (36,688,762)
(2) Items that may be reclassified to profit or loss
a. Other comprehensive income recognised
under equity method 11,835 -
b. Translation differences arising from
translation of foreign currency financial
statements 61,021,170 (93,381,953)
Other comprehensive income
(net of tax) attributable to non-controlling
interests (11,493,069) (8,414,228)
The notes on pages 31 to 178 form part of these financial statements.
138
BOE Technology Group Co., Ltd.
Consolidated income statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
VII. Total comprehensive income for the year 4,694,216,072 (247,795,750)
Attributable to shareholders of the Company 5,213,066,677 2,155,503,752
Attributable to non-controlling interests (518,850,605) (2,403,299,502)
VIII. Earnings per share
(1) Basic earnings per share V. 58 0.13 0.05
(2) Diluted earnings per share V. 58 0.13 0.05
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial The head of the
Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 31 to 178 form part of these financial statements.
139
BOE Technology Group Co., Ltd.
Company income statement
for the year ended 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
I. Operating income XV. 16 4,541,676,195 4,785,387,719
II. Less: Operating costs 22,304,841 29,852,957
Taxes and surcharges XV. 17 40,889,596 41,488,521
General and administrative expenses 858,750,449 741,464,420
Research and development expenses XV. 18 2,102,895,125 2,184,751,287
Financial expenses XV. 19 916,538,545 903,880,632
Including: Interest expenses 970,259,855 934,776,554
Interest income 37,793,976 41,156,445
Add: Other income XV. 20 970,989,167 945,400,212
Investment income XV. 21 2,429,685,102 2,185,769,102
Including: Income from investment in
associates and joint
ventures 416,901,621 244,595,829
Credit losses (5,376,889) (62,558,750)
Impairment losses - (32,000,000)
III. Operating profit 3,995,595,019 3,920,560,466
Add: Non-operating income 6,879,087 4,120,515
Less: Non-operating expenses 11,908,850 8,305,483
IV. Profit before income tax 3,990,565,256 3,916,375,498
Less: Income tax expenses XV. 22 251,373,672 230,811,042
V. Net profit 3,739,191,584 3,685,564,456
The notes on pages 31 to 178 form part of these financial statements.
140
BOE Technology Group Co., Ltd.
Company income statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
VI. Other comprehensive income, net of tax XV. 14 136,131,965 389,401,782
(1) Items that will not be reclassified to profit or
loss
a. Other comprehensive income recognised
under equity method 136,381,254 366,930,596
b. Changes in fair value of investments in
other equity instruments (261,124) 22,471,186
(2) Items that may be reclassified to profit or loss 11,835 -
VII. Total comprehensive income for the year 3,875,323,549 4,074,966,238
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial The head of the
Officer accounting
department
(Signature and stamp) (Signature and stamp) (Signature and (Signature and
stamp) stamp)
The notes on pages 31 to 178 form part of these financial statements.
141
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of
services 152,737,944,370 131,939,100,428
Refund of taxes 11,677,125,705 9,211,921,444
Proceeds from other operating activities 5,178,686,102 4,372,301,569
Sub-total of cash inflows 169,593,756,177 145,523,323,441
Payment for goods and services (115,414,695,545) (103,103,588,751)
Payment to and for employees (10,375,043,429) (11,274,232,340)
Payment of various taxes (2,493,092,709) (2,151,136,164)
Payment for other operating activities (2,059,151,036) (2,911,286,992)
Sub-total of cash outflows (130,341,982,719) (119,440,244,247)
Net cash inflow from operating activities V. 59(1) 39,251,773,458 26,083,079,194
The notes on pages 31 to 178 form part of these financial statements.
142
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
II. Cash flows from investing activities:
Proceeds from disposal of investments 23,039,182,987 33,515,656,910
Investment returns received 79,109,825 93,386,997
Net proceeds from disposal of fixed assets,
intangible assets and other long-term assets 177,874,045 19,822,394
Net amount received from subsidiaries V. 59(2) 954,155,710 33,640,033
Net proceeds from disposal of subsidiaries 336,086,996 -
Proceeds from other investing activities 945,857,001 2,287,178,748
Sub-total of cash inflows 25,532,266,564 35,949,685,082
Payment for acquisition of fixed assets, intangible
assets and other long-term assets (44,215,334,543) (49,415,897,698)
Payment for acquisition of investments (20,725,326,161) (33,949,914,820)
Net payment for acquisition of subsidiaries and
other business units V. 59(2) (1,895,124,119) -
Payment for other investing activities (2,103,448,590) -
Sub-total of cash outflows (68,939,233,413) (83,365,812,518)
Net cash outflow from investing activities (43,406,966,849) (47,416,127,436)
The notes on pages 31 to 178 form part of these financial statements.
143
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
III. Cash flows from financing activities:
Proceeds from investors 10,377,793,629 14,066,343,889
Including: Proceeds from non-controlling
shareholders of subsidiaries 10,377,793,629 14,066,343,889
Proceeds from issuance of debentures 5,966,660,000 8,075,977,975
Proceeds from borrowings 50,709,738,711 53,575,950,243
Net amount of monetary movements for pledging
loans 2,927,370,511 -
Proceeds from other financing activities 920,016,046 6,000,000
Sub-total of cash inflows 70,901,578,897 75,724,272,107
The notes on pages 31 to 178 form part of these financial statements.
144
BOE Technology Group Co., Ltd.
Consolidated cash flow statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
III. Cash flows from financing activities
(continued):
Repayments of borrowings (38,547,043,449) (36,944,543,462)
Payment for dividends or interest (6,520,054,957) (6,746,163,635)
Including: Profits paid to non-controlling
shareholders of subsidiaries (88,810,446) (10,911,242)
Net amount of monetary movements for
pledging loans - (287,261,600)
Payment for other financing activities (2,016,750,534) (3,967,658,080)
Sub-total of cash outflows (47,083,848,940) (47,945,626,777)
Net cash inflow from financing activities 23,817,729,957 27,778,645,330
IV. Effect of foreign exchange rate changes on cash
and cash equivalents (1,868,121,768) 474,027,965
V. Net increase in cash and cash equivalents V. 59(1) 17,794,414,798 6,919,625,053
Add: Cash and cash equivalents
at the beginning of the year 50,270,321,573 43,350,696,520
VI. Cash and cash equivalents
at the end of the year V. 59(3) 68,064,736,371 50,270,321,573
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial The head of the
Officer accounting
department
(Signature and stamp) (Signature and stamp) (Signature and (Signature and
stamp) stamp)
The notes on pages 31 to 178 form part of these financial statements.
145
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2020
(Expressed in Renminbi Yuan)
Note 2020 2019
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of
services 3,125,955,887 6,487,868,213
Proceeds from other operating activities 77,211,104 53,961,183
Sub-total of cash inflows 3,203,166,991 6,541,829,396
Payment for goods and services (952,364,398) (1,576,266,273)
Payment to and for employees (977,064,794) (942,542,615)
Payment of various taxes (513,631,723) (528,982,127)
Payment for other operating activities (644,659,863) (1,042,770,921)
Sub-total of cash outflows (3,087,720,778) (4,090,561,936)
Net cash inflow from operating activities XV. 23(1) 115,446,213 2,451,267,460
II. Cash flows from investing activities:
Proceeds from disposal of investments 931,412,417 191,270,404
Investment returns received 1,208,468,425 1,006,558,146
Net proceeds from disposal of fixed assets 303,987 2,791,799
Proceeds from other investing activities 470,877,944 3,334,425,767
Sub-total of cash inflows 2,611,062,773 4,535,046,116
The notes on pages 31 to 178 form part of these financial statements.
146
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
II. Cash flows from investing activities (continued):
Payment for acquisition of fixed assets, intangible
assets and other long-term assets (412,494,447) (1,158,649,934)
Payment for acquisition of investments (20,477,410,853) (15,438,773,685)
Payment for other investing activities (12,405,000,000) (5,866,921,400)
Sub-total of cash outflows (33,294,905,300) (22,464,345,019)
Net cash outflow from investing activities (30,683,842,527) (17,929,298,903)
III. Cash flows from financing activities:
Proceeds from issuance of debentures 5,966,660,000 8,000,000,000
Proceeds from borrowings 21,867,000,000 19,341,142,361
Proceeds from other financing activities 23,967,730,377 14,869,430,596
Sub-total of cash inflows 51,801,390,377 42,210,572,957
Repayments of borrowings (15,767,047,454) (17,830,000,000)
Payment for dividends and interest (2,254,787,893) (2,289,037,712)
Payment for other financing activities (2,398,651,425) (6,801,944,858)
Sub-total of cash outflows (20,420,486,772) (26,920,982,570)
Net cash inflow from financing activities 31,380,903,605 15,289,590,387
The notes on pages 31 to 178 form part of these financial statements.
147
BOE Technology Group Co., Ltd.
Company cash flow statement
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Note 2020 2019
IV. Effect of foreign exchange rate changes on
cash and cash equivalents (133,212,123) 39,397,054
V. Net (decrease)/increase in cash and cash
equivalents XV. 23(1) 679,295,168 (149,044,002)
Add: Cash and cash equivalents at the
beginning of the year 3,680,770,048 3,829,814,050
VI. Cash and cash equivalents
at the end of the year XV. 23(2) 4,360,065,216 3,680,770,048
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company stamp)
Chairman of the Board Chief Executive Officer Chief Financial The head of the
Officer accounting
department
(Signature and stamp) (Signature and stamp) (Signature and (Signature and
stamp) stamp)
The notes on pages 31 to 178 form part of these financial statements.
148
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2020
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity Less: Treasury comprehensive Non-controlling
Note Share capital instruments Capital reserve shares income Surplus reserve Retained earnings Sub-total interests Total
I. Balance at the beginning of the year 34,798,398,763 8,013,156,853 38,353,242,364 - (4,566,639) 1,516,139,709 12,381,758,005 95,058,129,055 45,999,567,919 141,057,696,974
Add: Changes in accounting policies III. 35 - - - - - 533,906,114 (533,906,114) - - -
Adjusted balance at the beginning of the year 34,798,398,763 8,013,156,853 38,353,242,364 - (4,566,639) 2,050,045,823 11,847,851,891 95,058,129,055 45,999,567,919 141,057,696,974
II. Changes in equity during the year
1. Total comprehensive income - - - - 177,438,725 - 5,035,627,952 5,213,066,677 (518,850,605) 4,694,216,072
2. Shareholders’ contributions of capital
(1) Contribution by non-controlling
interests - - - - - - - - 10,663,566,927 10,663,566,927
(2) Contribution by holders of other equity
instruments V. 38 - 5,967,915,094 - - - - - 5,967,915,094 - 5,967,915,094
(3) Repurchase of treasury shares V. 40 - - - 1,998,774,694 - - - (1,998,774,694) - (1,998,774,694)
(4) Business combinations involving
entities not under common control VI. 1 - - - - - - - - 14,293,193,400 14,293,193,400
(5) Changes in shareholding ratio of
subsidiaries V. 39 - - 76,020,559 - - - - 76,020,559 (76,020,559) -
(6) Equity-settled share-based payments XI - - (946,466,251) (962,476,186) - - - 16,009,935 1,201,528 17,211,463
3. Appropriation of profits
(1) Appropriation for surplus reserve V. 42 - - - - - 373,919,158 (373,919,158) - - -
(2) Accrued interest on holders of other
equity instruments V. 38 - 485,925,480 - - - - (485,925,480) - - -
(3) Payment for interest on holders of
other equity instruments V. 38 - (320,000,000) - - - - - (320,000,000) - (320,000,000)
(4) Distributions to shareholders V. 43 - - - - - - (695,967,975) (695,967,975) (88,810,446) (784,778,421)
The notes on pages 31 to 178 form part of these financial statements.
149
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity Less: Treasury comprehensive Non-controlling
Note Share capital instruments Capital reserve shares income Surplus reserve Retained earnings Sub-total interests Total
4. Transfers within equity
(1) Transfer of other comprehensive
income to retained earnings V. 41/43 - - - - (195,070,158) 23,905,741 171,164,417 - - -
5. Others
(1) Disposal of subsidiaries to equity
method accounting VI. 2 - - (46,470,087) - - (3,454,053) 3,454,053 (46,470,087) (146,654,227) (193,124,314)
(2) Other movements in equity of
associates V. 11 - - 7,011,400 - - - - 7,011,400 - 7,011,400
(3) Others - - (7,682,051) - - - 7,508,922 (173,129) (6,226,058) (6,399,187)
III. Balance at the end of the year 34,798,398,763 14,146,997,427 37,435,655,934 1,036,298,508 (22,198,072) 2,444,416,669 15,509,794,622 103,276,766,835 70,120,967,879 173,397,734,714
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company stamp)
Chairman of the Chief Executive Chief Financial The head of the
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
150
The notes on pages 31 to 178 form part of these financial statements.
151
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity comprehensive Non-controlling
Note Share capital instruments Capital reserve income Surplus reserve Retained earnings Sub-total interests Total
I. Balance at the beginning of the year 34,798,398,763 - 38,213,100,596 (291,856,968) 1,152,626,310 11,977,119,533 85,849,388,234 34,499,426,498 120,348,814,732
II. Changes in equity during the year
1. Total comprehensive income - - - 236,859,881 - 1,918,643,871 2,155,503,752 (2,403,299,502) (247,795,750)
2. Shareholders’ contributions of
capital
(1) Contributed by
non-controlling interests - - - - - - - 14,066,343,889 14,066,343,889
(2) Non-controlling interests’
decrease of capital - - - - - - - (40,233,450) (40,233,450)
(3) Contribution by holders of
other equity instruments - 7,957,047,264 - - - - 7,957,047,264 - 7,957,047,264
(4) Business combinations
involving entities not
under common control - - - - - - - 11,310,000 11,310,000
(5) Change in shareholding ratio
of subsidiaries - - 123,068,274 - - - 123,068,274 (123,068,274) -
3. Appropriation of profits
(1) Appropriation for surplus
reserve V. 43 - - - - 368,556,446 (368,556,446) - - -
(2) Accrued interest on holders
of other equity instruments - 56,109,589 - - - (56,109,589) - - -
(3) Distributions to shareholders - - - - - (1,043,951,963) (1,043,951,963) (10,911,242) (1,054,863,205)
The notes on pages 31 to 178 form part of these financial statements.
152
BOE Technology Group Co., Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
Attributable to shareholders of the Company
Other
Other equity comprehensive Non-controlling
Note Share capital instruments Capital reserve income Surplus reserve Retained earnings Sub-total interests Total
4. Transfers within equity
(1) Transfer of other
comprehensive income to
retained earnings V. 43 - - - 50,430,448 (5,043,047) (45,387,401) - - -
5. Others - - 17,073,494 - - - 17,073,494 - 17,073,494
III. Balance at the end of the year 34,798,398,763 8,013,156,853 38,353,242,364 (4,566,639) 1,516,139,709 12,381,758,005 95,058,129,055 45,999,567,919 141,057,696,974
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company stamp)
Chairman of the Chief Executive Chief Financial The head of the
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 31 to 178 form part of these financial statements.
153
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2020
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive
Note Share capital instruments Capital reserve shares income Surplus reserve Retained earnings Total
I. Balance at the beginning of the year 34,798,398,763 8,013,156,853 37,608,039,685 - 193,638,576 1,516,139,709 4,781,488,839 86,910,862,425
Add: Changes in accounting policies III. 35 - - - - - 533,906,114 4,805,155,027 5,339,061,141
Adjusted balance at the beginning of the year 34,798,398,763 8,013,156,853 37,608,039,685 - 193,638,576 2,050,045,823 9,586,643,866 92,249,923,566
II. Changes in equity during the year
1. Total comprehensive income - - - - 136,131,965 - 3,739,191,584 3,875,323,549
2. Shareholders’ contributions of capital
(1) Contribution by holders of other equity
instruments V. 38 - 5,967,915,094 - - - - - 5,967,915,094
(2) Repurchase of treasury shares V. 40 - - - 1,998,774,694 - - - (1,998,774,694)
(3) Equity-settled share-based payments XI - - (945,264,723) (962,476,186) - - - 17,211,463
3. Appropriation of profits
(1) Appropriation for surplus reserve V. 42 - - - - - 373,919,158 (373,919,158) -
(2) Accrued interest on holders of other equity
instruments V. 38 - 485,925,480 - - - - (485,925,480) -
(3) Payment for interest on holders of other
equity instruments V. 38 - (320,000,000) - - - - - (320,000,000)
(4) Distributions to shareholders V. 43 - - - - - - (695,967,975) (695,967,975)
The notes on pages 31 to 178 form part of these financial statements.
154
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive
Note Share capital instruments Capital reserve shares income Surplus reserve Retained earnings Total
4. Transfers within equity
(1) Transfer of other comprehensive income to
retained earnings XV. 14/15 - - - - (239,057,408) 23,905,741 215,151,667 -
5. Others
(1) Disposal of subsidiaries to equity method
accounting VI. 2 - - - - - (3,454,053) (31,086,473) (34,540,526)
(2) Other movements in equity of associates XV. 5 - - 33,304,404 - - - - 33,304,404
III. Balance at the end of the year 34,798,398,763 14,146,997,427 36,696,079,366 1,036,298,508 90,713,133 2,444,416,669 11,954,088,031 99,094,394,881
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company stamp)
Chairman of the Chief Executive Chief Financial The head of the
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 31 to 178 form part of these financial statements.
155
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
Other equity Other comprehensive
Note Share capital instruments Capital reserve income Surplus reserve Retained earnings Total
I. Balance at the beginning of the year 34,798,398,763 - 37,590,966,191 (246,193,654) 1,152,626,310 2,609,929,782 75,905,727,392
II. Changes in equity during the year
1. Total comprehensive income - - - 389,401,782 - 3,685,564,456 4,074,966,238
2. Shareholders’ contributions of capital
Contribution by holders of other
equity instruments - 7,957,047,264 - - - - 7,957,047,264
3. Appropriation of profits
(1) Appropriation for surplus
reserve - - - - 368,556,446 (368,556,446) -
(2) Accrued interest on holders
of other equity instruments - 56,109,589 - - - (56,109,589) -
(3) Distributions to shareholders - - - - - (1,043,951,963) (1,043,951,963)
The notes on pages 31 to 178 form part of these financial statements.
156
BOE Technology Group Co., Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2019 (continued)
(Expressed in Renminbi Yuan)
Other equity Other comprehensive
Share capital instruments Capital reserve income Surplus reserve Retained earnings Total
4. Transfers within equity
(1) Transfer of other comprehensive
income to retained earnings - - - 50,430,448 (5,043,047) (45,387,401) -
5. Others - - 17,073,494 - - - 17,073,494
III. Balance at the end of the year 34,798,398,763 8,013,156,853 37,608,039,685 193,638,576 1,516,139,709 4,781,488,839 86,910,862,425
These financial statements were approved by the Board of Directors of the Company on 9 April 2021.
Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company stamp)
Chairman of the Chief Executive Chief Financial The head of the
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 31 to 178 form part of these financial statements.
157
BOE Technology Group Co., Ltd.
Notes to the financial statements
(Expressed in Renminbi Yuan unless otherwise indicated)
I. Company status
BOE Technology Group Company Limited (the “Company”) is a company limited by shares established on 9 April 1993 in
Beijing, with its head office located at Beijing. The parent of the Company and the Company’s ultimate holding company is
Beijing Electronics Holdings Co., Ltd. (“Electronics Holdings”).
The Company and its subsidiaries (referred to as the “Group”) comprise five main business segments: display business, smart
systems innovation business, smart medicine & engineering integration business, sensor and application solutions business
and Mini-LED business. For information about the subsidiaries of the Company, refer to Note VII.
II. Basis of preparation
The financial statements have been prepared on the going concern basis.
The Group has adopted the revised “Accounting Standard for Business Enterprises No. 22 – Financial Instruments:
Recognition and Measurement” and related new financial instruments standards, issued by the Ministry of Finance (“MOF”)
of the People’s Republic of China in 2017, since 1 January 2019. In addition, it has adopted the revised “Accounting
Standard for Business Enterprises No. 14 – Revenue” issued by the MOF in 2017 since 1 January 2020 (see Note III.35), and
has not adopted the revised “Accounting Standard for Business Enterprises No. 21 – Leases” issued by the MOF in 2018.
Certain overseas subsidiaries of the Group have adopted the revised “Accounting Standard for Business Enterprises No. 21 –
Leases”, issued by the MOF in 2018. The adoption of the above standards does not have a material impact on the Group’s
consolidated financial position and consolidated financial performance.
III. Significant accounting policies and accounting estimates
1 Statement of compliance
The financial statements have been prepared in accordance with the requirements of Accounting Standards for Business
Enterprises or referred to as China Accounting Standards (“CAS”) issued by the MOF. These financial statements present
truly and completely the consolidated financial position and financial position of the Company as at 31 December 2020, and
the consolidated financial performance and financial performance and the consolidated cash flows and cash flows of the
Company for the year then ended.
These financial statements also comply with the disclosure requirements of “Regulation on the Preparation of Information
Disclosures by Companies Issuing Securities, No. 15: General Requirements for Financial Reports” as revised by the China
Securities Regulatory Commission (“CSRC”) in 2014.
158
2 Accounting period
The accounting period is from 1 January to 31 December.
3 Operating cycle
The Company takes the period from the acquisition of assets for processing to until the ultimate realisation of cash or cash
equivalents as a normal operating cycle. The operating cycle of the Company is usually less than 12 months.
4 Functional currency
The Company’s functional currency is Renminbi and these financial statements are presented in Renminbi. Functional
currency is determined by the Company and its subsidiaries on the basis of the currency in which major income and costs are
denominated and settled. Some of the Company’s subsidiaries have functional currencies that are different from the
Company’s functional currency. Their financial statements have been translated based on the accounting policy set out in
Note III.8.
5 Accounting treatments for business combinations involving entities under common control and not under common control
A transaction constitutes a business combination when the Group obtains control of one or more entities (or a group of assets
or net assets). Business combination is classified as either business combinations involving enterprises under common control
or business combinations not involving enterprises under common control.
For a transaction not involving enterprises under common control, the acquirer determines whether acquired set of assets
constitute a business. The Group may elect to apply the simplified assessment method, the concentration test, to determine
whether an acquired set of assets is not a business. If the concentration test is met and the set of assets is determined not to be
a business, no further assessment is needed. If the concentration test is not met, the Group shall perform the assessment
according to the guidance on the determination of a business.
When the set of assets the group acquired does not constitute a business, acquisition costs should be allocated to each
identifiable assets and liabilities at their acquisition date fair values. It is not required to apply the accounting of business
combination described as below.
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business combination in which all of the combining
entities are ultimately controlled by the same party or parties both before and after the business combination, and that control
is not transitory. The assets acquired and liabilities assumed are measured based on their carrying amounts in the consolidated
financial statements of the ultimate controlling party at the combination date. The difference between the carrying amount of
the net assets acquired and the consideration paid for the combination (or the total par value of shares issued) is adjusted
against share premium in the capital reserve, with any excess adjusted against retained earnings. Any costs directly
attributable to the combination are recognised in profit or loss when incurred. The combination date is the date on which one
combining entity obtains control of other combining entities.
159
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business combination in which all of the combining
entities are not ultimately controlled by the same party or parties both before and after the business combination. Where (1)
the aggregate of the acquisition-date fair value of assets transferred (including the acquirer’s previously held equity interest in
the acquiree), liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for control of the
acquiree, exceeds (2) the acquirer’s interest in the acquisition-date fair value of the acquiree’s identifiable net assets, the
difference is recognised as goodwill (see Note III.17). If (1) is less than (2), the difference is recognised in profit or loss for
the current period. The costs of issuing equity or debt securities as a part of the consideration for the acquisition are included
in the carrying amounts of these equity or debt securities upon initial recognition. Other acquisition-related costs are
expensed when incurred. Any difference between the fair value and the carrying amount of the assets transferred as
consideration is recognised in profit or loss. The acquiree’s identifiable asset, liabilities and contingent liabilities, if the
recognition criteria are met, are recognised by the Group at their acquisition-date fair value. The acquisition date is the date
on which the acquirer obtains control of the acquiree.
For a business combination involving entities not under common control and achieved in stages, the Group remeasures its
previously-held equity interest in the acquiree to its acquisition-date fair value and recognises any resulting difference
between the fair value and the carrying amount as investment income or other comprehensive income for the current period.
In addition, any amount recognised in other comprehensive income and other changes in the owners’ equity under equity
accounting in prior reporting periods relating to the previously-held equity interest that may be reclassified to profit or loss
are transferred to investment income at the date of acquisition (see Note III.11(2)(b)); Any previously-held equity interest that
is designated as equity investment at fair value through other comprehensive income, the other comprehensive income
recognised in prior reporting periods is transferred to retained earnings and surplus reserve at the date of acquisition.
6 Consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the consolidated financial statements comprise the
Company and its subsidiaries. Control exists when the investor has all of following: power over the investee; exposure, or
rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power
over the investee. When assessing whether the Group has power, only substantive rights (held by the Group and other parties)
are considered. The financial position, financial performance and cash flows of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date that control ceases.
Non-controlling interests are presented separately in the consolidated balance sheet within shareholders’ equity. Net profit or
loss attributable to non-controlling shareholders is presented separately in the consolidated income statement below the net
profit line item. Total comprehensive income attributable to non-controlling shareholders is presented separately in the
consolidated income statement below the total comprehensive income line item.
When the amount of loss for the current period attributable to the non-controlling shareholders of a subsidiary exceeds the
non-controlling shareholders’ share of the opening owners’ equity of the subsidiary, the excess is still allocated against the
non-controlling interests.
160
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the Company
makes necessary adjustments to the financial statements of the subsidiary based on the Company’s own accounting period or
accounting policies. Intra-group balances and transactions, and any unrealised profit or loss arising from intra-group
transactions, are eliminated when preparing the consolidated financial statements. Unrealised losses resulting from
intra-group transactions are eliminated in the same way as unrealised gains, unless they represent impairment losses that are
recognised in the financial statements.
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period, through a business combination involving entities under
common control, the financial statements of the subsidiary are included in the consolidated financial statements based on the
carrying amounts of the assets and liabilities of the subsidiary in the financial statements of the ultimate controlling party as if
the combination had occurred at the date that the ultimate controlling party first obtained control. The opening balances and
the comparative figures of the consolidated financial statements are also restated.
Where a subsidiary was acquired during the reporting period, through a business combination involving entities not under
common control, the identifiable assets and liabilities of the acquired subsidiaries are included in the scope of consolidation
from the date that control commences, based on the fair value of those identifiable assets and liabilities at the acquisition
date.
(3) Disposal of subsidiaries
When the Group loses control over a subsidiary, any resulting disposal gains or losses are recognised as investment income
for the current period. The remaining equity interests is re-measured at its fair value at the date when control is lost, any
resulting gains or losses are also recognised as investment income for the current period.
When the Group loses control of a subsidiary in multiple transactions in which it disposes of its long-term equity investment
in the subsidiary in stages, the following are considered to determine whether the Group should account for the multiple
transactions as a bundled transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- arrangements work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;
- one arrangement considered on its own is not economically justified, but it is economically justified when considered
together with other arrangements.
If each of the multiple transactions does not form part of a bundled transaction, the transactions conducted before the loss of
control of the subsidiary are accounted for in accordance with the accounting policy for partial disposal of equity investment
in subsidiaries where control is retained (see Note III.6(4)).
If each of the multiple transactions forms part of a bundled transaction which eventually results in the loss of control in the
subsidiary, these multiple transactions are accounted for as a single transaction. In the consolidated financial statements, the
difference between the consideration received and the corresponding proportion of the subsidiary’s net assets (calculated
continuously from the acquisition date) in each transaction prior to the loss of control shall be recognised in other
comprehensive income and transferred to profit or loss when the parent eventually loses control of the subsidiary.
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(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling shareholders or disposes of a
portion of an interest in a subsidiary without a change in control, the difference between the proportion interests of the
subsidiary’s net assets being acquired or disposed and the amount of the consideration paid or received is adjusted to the
capital reserve (share premium) in the consolidated balance sheet, with any excess adjusted to retained earnings.
7 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily withdraw on demand, and short-term, highly
liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of change
in value.
8 Foreign currency transactions and translation of foreign currency financial statements
When the Group receives capital in foreign currencies from investors, the capital is translated to Renminbi at the spot
exchange rate at the date of the receipt. Other foreign currency transactions are, on initial recognition, translated to Renminbi
at the spot exchange rates on the dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at the balance sheet
date. The resulting exchange differences are generally recognised in profit or loss, unless they arise from the re-translation of
the principal and interest of specific borrowings for the acquisition and construction of qualifying assets (see Note III.15).
Non-monetary items that are measured at historical cost in foreign currencies are translated to Renminbi using the exchange
rate at the transaction date. Non-monetary items that are measured at fair value in foreign currencies are translated using the
exchange rate at the date the fair value is determined. The resulting exchange differences are recognised in profit or loss,
except for the differences arising from the re-translation of equity investments at fair value through other comprehensive
income, which are recognised in other comprehensive income.
In translating the financial statements of a foreign operation, assets and liabilities of foreign operation are translated to
Renminbi at the spot exchange rate at the balance sheet date. Equity items, excluding retained earnings and the translation
differences in other comprehensive income, are translated to Renminbi at the spot exchange rates at the transaction dates.
Income and expenses of foreign operation are translated to Renminbi at the rates that approximate the spot exchange rates at
the transaction dates. The resulting translation differences are recognised in other comprehensive income. The translation
differences accumulated in shareholders’ equity with respect to a foreign operation are transferred to profit or loss in the
period when the foreign operation is disposed.
9 Financial instruments
Financial instruments include cash at bank and on hand, investments in debt and equity securities other than those classified
as long-term equity investments (see Note III.11), receivables, payables, loans and borrowings, debentures payable and share
capital.
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(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Group becomes a party to the contractual
provisions of a financial instrument.
A financial asset or financial liability is measured initially at fair value. For financial assets and financial liabilities at fair
value through profit or loss, any related directly attributable transaction costs are charged to profit or loss; for other categories
of financial assets and financial liabilities, any related directly attributable transaction costs are included in their initial costs.
A trade receivable, without significant financing component or practical expedient applied for one year or less contracts, is
initially measured at the transaction price in accordance with Note III.23.
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in which a financial asset is managed
and its contractual cash flow characteristics. On initial recognition, a financial asset is classified as measured at
amortised cost, at fair value through other comprehensive income (“FVOCI”), or at fair value through profit or loss
(“FVTPL”).
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business
model for managing financial assets in which case all affected financial assets are reclassified on the first day of the
first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at
FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at
FVTPL:
- it is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present
subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an
investment-by-investment basis. The instrument meets the definition of equity from the perspective of the issuer.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at
FVTPL. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the
requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would otherwise arise.
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The business model refers to how the Group manages its financial assets in order to generate cash flows. That is, the
Group’s business model determines whether cash flows will result from collecting contractual cash flows, selling
financial assets or both. The Group determines the business model for managing the financial assets according to the
facts and based on the specific business objective for managing the financial assets determined by the Group’s key
management personnel.
In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the
contractual terms of the instrument. For the purposes of this assessment, ‘principal’ is defined as the fair value of the
financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the
credit risk associated with the principal amount outstanding during a particular period of time and for other basic
lending risks and costs, as well as a profit margin. The Group also assesses whether the financial asset contains a
contractual term that could change the timing or amount of contractual cash flows such that it would not meet this
condition.
(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and losses, including any interest or
dividend income, are recognised in profit or loss unless the financial assets are part of a hedging relationship.
- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective interest method. A gain or loss on a
financial asset that is measured at amortised cost and is not part of a hedging relationship shall be recognised in
profit or loss when the financial asset is derecognised, reclassified, through the amortisation process or in order to
recognise impairment gains or losses.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the effective interest
method, impairment and foreign exchange gains and losses are recognised in profit or loss. Other net gains and
losses are recognised in other comprehensive income. On derecognition, gains and losses accumulated in other
comprehensive income are reclassified to profit or loss.
- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss. Other
net gains and losses are recognised in other comprehensive income. On derecognition, gains and losses
accumulated in other comprehensive income are reclassified to retained earnings.
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(3) Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including derivative financial liability)
or it is designated as such on initial recognition.
Financial liabilities at FVTPL are subsequently measured at fair value and net gains and losses, including any interest
expense, are recognised in profit or loss, unless the financial liabilities are part of a hedging relationship.
- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effective interest method.
(4) Offsetting
Financial assets and financial liabilities are generally presented separately in the balance sheet, and are not offset. However, a
financial asset and a financial liability are offset and the net amount is presented in the balance sheet when both of the
following conditions are satisfied:
- The Group currently has a legally enforceable right to set off the recognised amounts；
- The Group intends either to settle on a net basis, or to realise the financial asset and settle the financial liability
simultaneously.
(5) Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the risks and rewards of ownership of
the financial asset; or；
- the financial asset has been transferred, although the Group neither transfers nor retains substantially all of the risks and
rewards of ownership of the financial asset, it does not retain control over the transferred asset.
Where a transfer of a financial asset in its entirety meets the criteria for derecognition, the difference between the two
amounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of derecognition;
- the sum of the consideration received from the transfer and, when the transferred financial asset is a debt investment at
FVOCI, any cumulative gain or loss that has been recognised directly in other comprehensive income for the part
derecognised.
The Group derecognises a financial liability (or part of it) only when its contractual obligation (or part of it) is extinguished.
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(6) Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;
- contract assets;
- Debt investments at FVOCI
Financial assets measured at fair value, including debt investments or equity securities at FVPL, equity securities designated
at FVOCI and derivative financial assets, are not subject to the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that
the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period (including extension options)
over which the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the
balance sheet date (or a shorter period if the expected life of the instrument is less than 12 months).
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECL. ECLs on
these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted
for factors that are specific to the debtors and an assessment of both the current and forecast general economic conditions at
the balance sheet date.
Except for trade receivables and contract assets, the Group measures loss allowance at an amount equal to 12-month ECL for
the following financial instruments, and at an amount equal to lifetime ECL for all other financial instruments.
- If the financial instrument is determined to have low credit risk at the balance sheet date;
- If the credit risk on a financial instrument has not increased significantly since initial recognition.
Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a low risk of default, the borrower
has a strong capacity to meet its contractual cash flow obligations in the near term and adverse changes in economic and
business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual
cash flow obligations.
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Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly since initial recognition, the Group
compares the risk of default occurring on the financial instrument assessed at the balance sheet date with that assessed at the
date of initial recognition.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue
cost or effort, including forward-looking information. In particular, the following information is taken into account:
- failure to make payments of principal or interest on their contractually due dates;
- an actual or expected significant deterioration in a financial instrument’s external or internal credit rating (if available);
- an actual or expected significant deterioration in the operating results of the debtor; and
- existing or forecast changes in the technological, market, economic or legal environment that have a significant adverse
effect on the debtor’s ability to meet its obligation to the Group.
Depending on the nature of the financial instruments, the assessment of a significant increase in credit risk is performed on
either an individual basis or a collective basis. When the assessment is performed on a collective basis, the financial
instruments are grouped based on shared credit risk characteristics, such as past due status and credit risk ratings.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.
Credit-impaired financial assets
At each balance sheet date, the Group assesses whether financial assets carried at amortised cost and debt investments at
FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on
the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes
the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract, such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the borrower’s financial difficulty, the Group having granted to the
borrower a concession that would not otherwise consider;
- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for that financial asset because of financial difficulties.
Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financial instrument’s credit risk since initial
recognition. Any change in the ECL amount is recognised as an impairment gain or loss in profit or loss. The Group
recognises an impairment gain or loss for all financial instruments with a corresponding adjustment to their carrying amount
through a loss allowance account, except for debt investments that are measured at FVOCI, for which the loss allowance is
recognised in other comprehensive income.
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Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic
prospect of recovery. A write-off constitutes a derecognition event. This is generally the case when the Group determines that
the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to
the write-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply
with the Group’s procedures for recovery of amounts due.
Subsequent recoveries of an asset that was previously written off are recognised as a reversal of impairment in profit or loss
in the period in which the recovery occurs.
(7) Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs is recognised in shareholders’
equity. Consideration and transaction costs paid by the Company for repurchasing self-issued equity instruments are deducted
from shareholders’ equity.
When the Company repurchases its own shares, those shares are treated as treasury shares. All expenditure relating to the
repurchase is recorded in the cost of the treasury shares, with the transaction recording in the share register. Treasury shares
are excluded from profit distributions and are presented as a deduction under shareholders’ equity in the balance sheet.
When treasury shares are cancelled, the share capital should be reduced to the extent of the total par value of the treasury
shares cancelled. Where the cost of the treasury shares cancelled exceeds the total par value, the excess is deducted from
capital reserve (share premium), surplus reserve and retained earnings sequentially. If the cost of treasury shares cancelled is
less than the total par value, the difference is credited to the capital reserve (share premium).
When treasury shares are disposed of, any excess of proceeds above cost is recognised in capital reserve (share premium);
otherwise, the shortfall is deducted against capital reserve (share premium), surplus reserve and retained earnings
sequentially.
(8) Perpetual bonds
At initial recognition, the Group classifies the perpetual bonds issued or their components as financial assets, financial
liabilities or equity instruments based on their contractual terms and their economic substance after considering the definition
of financial assets, financial liabilities and equity instruments.
Perpetual bonds issued that should be classified as equity instruments are recognised in equity based on the actual amount
received. Any distribution of dividends or interests during the instruments’ duration is treated as profit appropriation. When
the perpetual bonds are redeemed according to the contractual terms, the redemption price is charged to equity.
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10 Inventories
(1) Classification and cost
Inventories include raw materials, work in progress, finished goods and reusable materials. Reusable materials include
low-value consumables, packaging materials and other materials, which can be used repeatedly but do not meet the definition
of fixed assets.
Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion and other
expenditure incurred in bringing the inventories to their present location and condition. In addition to the purchase cost of
raw materials, work in progress and finished goods include direct labour costs and an appropriate allocation of production
overheads.
(2) Measurement method of cost of inventories
Cost of inventories recognised is calculated using the weighted average method.
Consumables including low-value consumables and packaging materials are charged to profit or loss upon receipt. The
amortisation charge is included in the cost of the related assets or recognised in profit or loss for the current period.
(3) Basis for determining the net realisable value and method for provision for obsolete inventories
At the balance sheet date, inventories are carried at the lower of cost and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and
the estimated costs necessary to make the sale and relevant taxes. The net realisable value of materials held for use in the
production is measured based on the net realisable value of the finished goods in which they will be incorporated. The net
realisable value of the inventory held to satisfy sales or service contracts is measured based on the contract price, to the extent
of the quantities specified in sales contracts, and the excess portion of inventories is measured based on general selling prices.
Any excess of the cost over the net realisable value of each category of inventories is recognised as a provision for obsolete
inventories, and is recognised in profit or loss.
(4) Inventory count system
The Group maintains a perpetual inventory system.
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11 Long-term equity investments
(1) Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business combination involving entities
under common control is the Company’s share of the carrying amount of the subsidiary’s equity in the
consolidated financial statements of the ultimate controlling party at the combination date. The difference
between the initial investment cost and the carrying amount of the consideration given is adjusted to the share
premium in the capital reserve, with any excess adjusted to retained earnings. For a long-term equity investment
in a subsidiary acquired through a business combination achieved in stages which do not form a bundled
transaction and involving entities under common control, the Company determines the initial cost of the
investment in accordance with the above policies. The difference between this initial cost and the sum of the
carrying amount of previously-held investment and the consideration paid for the shares newly acquired is
adjusted to capital premium in the capital reserve, with any excess adjusted to retained earnings.
- For a long-term equity investment obtained through a business combination not involving entities under common
control, the initial cost comprises the aggregate of the fair value of assets transferred, liabilities incurred or
assumed, and equity securities issued by the Company, in exchange for control of the acquiree. For a long-term
equity investment obtained through a business combination not involving entities under common control and
achieved through multiple transactions in stages which do not form a bundled transaction, the initial cost
comprises the carrying amount of the previously-held equity investment in the acquiree immediately before the
acquisition date, and the additional investment cost at the acquisition date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination is initially recognised at the
amount of cash paid if the Group acquires the investment by cash, or at the fair value of the equity securities
issued if an investment is acquired by issuing equity securities.
(2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments in subsidiaries are accounted for using
the cost method for subsequent measurement unless the investment is classified as held for sale (see Note III.29).
Except for cash dividends or profit distributions declared but not yet distributed that have been included in the price
or consideration paid in obtaining the investments, the Company recognises its share of the cash dividends or profit
distributions declared by the investee as investment income for the current period.
The investments in subsidiaries are stated in the balance sheet at cost less accumulated impairment losses.
For the impairment of the investments in subsidiaries, refer to Note III.19.
In the Group’s consolidated financial statements, investments in subsidiaries are accounted for in accordance with the
policies described in Note III.6.
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(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint control (see Note III.11(3)) and
rights to the net assets of the arrangement.
An associate is an entity over which the Group has significant influence (see Note III.11(3)).
An investment in a joint venture or an associate is accounted for using the equity method for subsequent
measurement, unless the investment is classified as held for sale (see Note III.29).
The accounting treatments under the equity method adopted by the Group are as follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest in the fair value of the
investee’s identifiable net assets at the date of acquisition, the investment is initially recognised at cost. Where the
initial investment cost is less than the Group’s interest in the fair value of the investee’s identifiable net assets at
the date of acquisition, the investment is initially recognised at the investor’s share of the fair value of the
investee’s identifiable net assets, and the difference is recognised in profit or loss.
- After the acquisition of the investment, the Group recognises its share of the investee’s profit or loss and other
comprehensive income as investment income or losses and other comprehensive income respectively, and adjusts
the carrying amount of the investment accordingly. Once the investee declares any cash dividends or profit
distributions, the carrying amount of the investment is reduced by the amount attributable to the Group. Changes
in the Group’s share of the investee’s owners’ equity, other than those arising from the investee’s net profit or
loss, other comprehensive income or profit distribution (referred to as “other changes in owners’ equity”), is
recognised directly in the Group’s equity, and the carrying amount of the investment is adjusted accordingly.
- In calculating its share of the investee’s net profits or losses, other comprehensive income and other changes in
owners’ equity, the Group recognises investment income and other comprehensive income after making
appropriate adjustments to align the accounting policies or accounting periods with those of the Group based on
the fair value of the investee’s identifiable net assets at the date of acquisition. Unrealised profits and losses
resulting from transactions between the Group and its associates or joint ventures are eliminated to the extent of
the Group’s interest in the associates or joint ventures. Unrealised losses resulting from transactions between the
Group and its associates or joint ventures are eliminated in the same way as unrealised gains but only to the
extent that there is no impairment.
- The Group discontinues recognising its share of further losses of the investee after the carrying amount of the
long-term equity investment and any long-term interest that in substance forms part of the Group’s net investment
in the joint venture or associate is reduced to zero, except to the extent that the Group has an obligation to assume
additional losses. If the joint venture or associate subsequently reports net profits, the Group resumes recognising
its share of those profits only after its share of the profits has fully covered the share of losses not recognised.
For the impairment of the investments in joint ventures and associates, refer to Note III.19.
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(3) Criteria for determining the existence of joint control or significant influence over an investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities (activities with significant impact on the returns of the arrangement) require the unanimous consent of the
parties sharing control.
The following factors are usually considered when assessing whether the Group can exercise joint control over an investee:
- Whether no single participant party is in a position to control the investee’s related activities unilaterally;
- Whether strategic decisions relating to the investee’s related activities require the unanimous consent of all participant
parties that sharing of control.
Significant influence is the power to participate in the financial and operating policy decisions of an investee but does not
have control or joint control over those policies.
12 Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation or for both. Investment
properties are accounted for using the cost model and stated in the balance sheet at cost less accumulated depreciation,
amortisation and impairment losses. The cost of investment property, less its estimated residual value and accumulated
impairment losses, is depreciated or amortised using the straight-line method over its estimated useful life, unless the
investment property is classified as held for sale (see Note III.29). For the impairment of the investment properties, refer to
Note III.19.
The estimated useful lives, residual value rates and depreciation rates of each class of investment properties are as follows:
Estimated useful life Residual value rate Depreciation rate
(years) (%) (%)
Land use rights 32 - 50 years 0.0% 2.0% - 3.1%
Buildings 20 - 40 years 0% - 10.0% 2.3% - 5.0%
13 Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods, for use in supply of services, for
rental or for administrative purposes with useful lives over one accounting year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and any directly attributable expenditure for
bringing the asset to working condition for its intended use. The cost of self-constructed assets is measured in accordance
with the policy set out in Note III.14.
Where the parts of an item of fixed assets have different useful lives or provide benefits to the Group in a different pattern,
thus necessitating use of different depreciation rates or methods, each part is recognised as a separate fixed asset.
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Any subsequent costs including the cost of replacing part of an item of fixed assets are recognised as assets when it is
probable that the economic benefits associated with the costs will flow to the Group, and the carrying amount of the replaced
part is derecognised. The costs of the day-to-day maintenance of fixed assets are recognised in profit or loss as incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment losses.
(2) Depreciation of fixed assets
The cost of a fixed asset, less its estimated residual value and accumulated impairment losses, is depreciated using the
straight-line method over its estimated useful life, unless the fixed asset is classified as held for sale (see Note III.29).
The estimated useful lives, residual value rates and depreciation rates of each class of fixed assets are as follows:
Estimated useful life Residual value rate Depreciation rate
Class (years) (%) (%)
Plant & buildings 10 - 50 years 3% - 10% 1.8% - 9.7%
Equipment 2 - 25 years 0 - 10% 3.6% - 50%
Others 2 - 10 years 0 - 10% 9.0% - 50%
Useful lives, estimated residual values and depreciation methods are reviewed at least at each year-end.
(3) For the impairment of the fixed assets, refer to Note III.19.
(4) For the recognition, measurement and depreciation of fixed assets acquired under finance leases, refer to Note III. 28(3).
(5) Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset are determined as the difference between the
net disposal proceeds and the carrying amount of the item, and are recognised in profit or loss on the date of retirement or
disposal.
14 Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour, capitalised borrowing costs (see Note III.15),
and any other costs directly attributable to bringing the asset to working condition for its intended use.
A self-constructed asset is classified as construction in progress and transferred to fixed asset when it is ready for its intended
use. No depreciation is provided against construction in progress.
Construction in progress is stated in the balance sheet at cost less accumulated impairment losses (see Note III.19).
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15 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition and construction of a qualifying asset are capitalised as part
of the cost of the asset. Other borrowing costs are recognised as financial expenses when incurred.
During the capitalisation period, the amount of interest (including amortisation of any discount or premium on borrowing) to
be capitalised in each accounting period is determined as follows:
- Where funds are borrowed specifically for the acquisition and construction of a qualifying asset, the amount of interest to
be capitalised is the interest expense calculated using effective interest rates during the period less any interest income
earned from depositing the borrowed funds or any investment income on the temporary investment of those funds before
being used on the asset.
- To the extent that the Group borrows funds generally and uses them for the acquisition and construction of a qualifying
asset, the amount of borrowing costs eligible for capitalisation is determined by applying a capitalisation rate to the
weighted average of the excess amounts of cumulative expenditure on the asset over the above amounts of specific
borrowings. The capitalisation rate is the weighted average of the interest rates applicable to the general-purpose
borrowings.
The effective interest rate is determined as the rate that exactly discounts estimated future cash flow through the expected life
of the borrowing or, when appropriate, a shorter period to the initially recognised amount of the borrowings.
During the capitalisation period, exchange differences related to the principal and interest on a specific-purpose borrowing
denominated in foreign currency are capitalised as part of the cost of the qualifying asset. The exchange differences related to
the principal and interest on foreign currency borrowings other than a specific-purpose borrowing are recognised as a
financial expense when incurred.
The capitalisation period is the period from the date of commencement of capitalisation of borrowing costs to the date of
cessation of capitalisation, excluding any period over which capitalisation is suspended. Capitalisation of borrowing costs
commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities of acquisition
and construction that are necessary to prepare the asset for its intended use are in progress, and ceases when the assets
become ready for their intended use. When the parts of the qualifying assets acquired or constructed that are eligible for
capitalisation are completed separately, and each part is available for use in other parts of the construction process or can be
sold externally, and for the purpose of making the parts of the assets ready for use or necessary for the sales status, the
acquisition or construction activities have been substantially completed, the Group ceases the capitalisation of the borrowing
costs related to the parts of the assets. Capitalisation of borrowing costs is suspended when the acquisition and construction
activities are interrupted abnormally for a period of more than three months.
16 Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortisation (where the estimated useful life is
finite) and impairment losses (see Note III.19). For an intangible asset with finite useful life, its cost less estimated residual
value and accumulated impairment losses is amortised using the straight-line method over its estimated useful life, unless the
intangible asset is classified as held for sale (see Note III.29).
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The respective amortisation periods for intangible assets are as follows:
Amortisation period
Item (years)
Land use rights 20 - 50 years
Patent and proprietary technology 5 - 20 years
Computer software 3 - 10 years
Others 5 - 20 years
Useful lives and amortisation methods of intangible asset with finite useful life are reviewed at least at each year-end. An
intangible asset is regarded as having an indefinite useful life and is not amortised when there is no foreseeable limit to the
period over which the asset is expected to generate economic benefits for the Group. At the balance sheet date, the Group
does not have any intangible assets with indefinite useful lives.
Expenditure on an internal research and development project is classified into expenditure incurred during the research phase
and expenditure incurred during the development phase.
Expenditure during the research phase is expensed when incurred. Expenditure during the development phase is capitalised if
development costs can be measured reliably, the product or process is technically and commercially feasible, and the Group
intends to and has sufficient resources to complete the development. Capitalised development costs are stated in the balance
sheet at cost less impairment losses (see Note III.19). Other development expenditure is recognised as an expense in the
period in which it is incurred.
17 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’s interest in the fair value of the
identifiable net assets of the acquiree under a business combination not involving entities under common control.
Goodwill is not amortised and is stated in the balance sheet at cost less accumulated impairment losses (see Note III.19). On
disposal of an asset group or a set of asset groups, any attributable goodwill is written off and included in the calculation of
the profit or loss on disposal.
18 Long-term deferred expenses
Long-term deferred expenses are amortised using a straight-line method within the benefit period. The respective
amortisation periods for such expenses are as follows:
Amortisation period
Item (years)
Payment for public facilities construction and use 10 - 15 years
Cost of operating lease assets improvement 2 - 10 years
Others 2 - 10 years
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19 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based on internal and external sources
of information to determine whether there is any indication of impairment:
- fixed assets
- construction in progress
- intangible assets
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses, etc.
If any indication exists, the recoverable amount of the asset is estimated. In addition, the Group estimates the recoverable
amounts of goodwill at each year-end, irrespective of whether there is any indication of impairment. Goodwill is allocated to
each asset group or set of asset groups, which is expected to benefit from the synergies of the combination for the purpose of
impairment testing.
The recoverable amount of an asset (or asset group, set of asset groups) is the higher of its fair value (see Note III.20) less
costs to sell and its present value of expected future cash flows.
An asset group is composed of assets directly related to cash generation and is the smallest identifiable group of assets that
generates cash inflows that are largely independent of the cash inflows from other assets or asset groups.
The present value of expected future cash flows of an asset is determined by discounting the future cash flows, estimated to
be derived from continuing use of the asset and from its ultimate disposal, to their present value using an appropriate pre-tax
discount rate.
An impairment loss is recognised in profit or loss when the recoverable amount of an asset is less than its carrying amount. A
provision for impairment of the asset is recognised accordingly. Impairment losses related to an asset group or a set of asset
groups are allocated first to reduce the carrying amount of any goodwill allocated to the asset group or set of asset groups,
and then to reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.
However, such allocation would not reduce the carrying amount of an asset below the highest of its fair value less costs to
sell (if measurable), its present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
20 Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
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When measuring fair value, the Group takes into account the characteristics of the particular asset or liability (including the
condition and location of the asset and restrictions, if any, on the sale or use of the asset) that market participants would
consider when pricing the asset or liability at the measurement date, and uses valuation techniques that are appropriate in the
circumstances and for which sufficient data and other information are available to measure fair value. Valuation techniques
mainly include the market approach, the income approach and the cost approach.
21 Provisions
A provision is recognised for an obligation related to a contingency if the Group has a present obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation.
Where the effect of the time value of money is material, provisions are determined by discounting the expected future cash
flows. Factors pertaining to a contingency such as the risks, uncertainties and time value of money are taken into account as a
whole in reaching the best estimate. Where there is a continuous range of possible outcomes for the expenditure required, and
each possible outcome in that range is as likely as any other, the best estimate is the mid-point of that range. In other cases,
the best estimate is determined according to the following circumstances:
- Where the contingency involves a single item, the best estimate is the most likely outcome.
- Where the contingency involves a large population of items, the best estimate is determined by weighting all possible
outcomes by their associated probabilities.
The Group reviews the carrying amount of a provision at the balance sheet date and adjusts the carrying amount to the
current best estimate.
22 Share-based payments
(1) Classification of share-based payments
Share-based payment transactions in the Group are equity-settled share-based payments.
(2) Accounting treatment of share-based payments
- Equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for services
received from the employees, the payment is measured at the fair value of the equity
instruments granted to the employees at the grant date. If the equity instruments granted
do not vest until the completion of services for a period, or until the achievement of a
specified performance condition, the Group recognises an amount at each balance sheet
date during the vesting period based on the best estimate of the number of equity
instruments expected to vest according to the newly obtained subsequent information of
the changes of the number of the employees expected to vest the equity instruments. The
Group measures the services received at the grant-date fair value of the equity instruments
and recognises the costs or expenses as the services are received, with a corresponding
increase in capital reserve.
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23 Revenue recognition
Revenue is the gross inflow of economic benefits arising in the course of the Group’s ordinary activities when the inflows
result in increase in shareholders’ equity, other than increase relating to contributions from shareholders.
Revenue is recognised when the Group satisfies the performance obligation in the contract by
transferring the control over relevant goods or services to the customers.
Where a contract has two or more performance obligations, the Group determines the stand-alone selling price at contract
inception of the distinct good or service underlying each performance obligation in the contract and allocates the transaction
price in proportion to those stand-alone selling prices. The Group recognises as revenue the amount of the transaction price
that is allocated to each performance obligation. The stand-alone selling price is the price at which the Group would sell a
promised good or service separately to a customer. If a stand-alone selling price is not directly observable, the Group
considers all information that is reasonably available to the entity, maximises the use of observable inputs to estimate the
stand-alone selling price.
For the contract which the Group grants a customer the option to acquire additional goods or services (such as, loyalty points,
discount coupons for future purchase, etc.,), the Group assesses whether the option provides a material right to the customer.
If the option provides a material right, the Group recognises the option as a performance obligation, and recognises revenue
when those future goods or services are transferred or when the option expires. If the stand-alone selling price for a
customer’s option to acquire additional goods or services is not directly observable, the Group estimates it, taking into
account all relevant information, including the difference in the discount that the customer would receive when exercising the
option or without exercising the option, and the likelihood that the option will be exercised.
For the contract with a warranty, the Group analyses the nature of the warranty provided, if the warranty provides the
customer with a distinct service in addition to the assurance that the product complies with agreed-upon specifications, the
Group recognises for the promised warranty as a performance obligation. Otherwise, the Group accounts for the warranty in
accordance with the requirements of CAS No.13 – Contingencies.
The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring
promised goods or services to a customer, excluding amounts collected on behalf of third parties. The Group recognises the
transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved. To
determine the transaction price for contracts in which a customer promises consideration in a form other than cash, the Group
measures the non-cash consideration at fair value. If the Group cannot reasonably estimate the fair value of the non-cash
consideration, the Group measures the consideration indirectly by reference to the stand-alone selling price of the goods or
services promised to the customer in exchange for the consideration. Where the contract contains a significant financing
component, the Group recognises the transaction price at an amount that reflects the price that a customer would have paid
for the promised goods or services if the customer had paid cash for those goods or services when (or as) they transfer to the
customer. The difference between the amount of promised consideration and the cash selling price is amortised using an
effective interest method over the contract term. The Group does not adjust the consideration for any effects of a significant
financing component if it expects, at contract inception, that the period between when the Group transfers a promised good or
service to a customer and when the customer pays for that good or service will be one year or less.
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The Group satisfies a performance obligation over time if one of the following criteria is met; or otherwise, a performance
obligation is satisfied at a point in time:
- the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group
performs;
- the customer can control the asset created or enhanced during the Group’s performance; or
- the Group’s performance does not create an asset with an alternative use to it and the Group has an enforceable right to
payment for performance completed to date.
For performance obligation satisfied over time, the Group recognises revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. When
the outcome of that performance obligation cannot be measured reasonably, but the Group
expects to recover the costs incurred in satisfying the performance obligation, the Group
recognises revenue only to the extent of the costs incurred until such time that it can
reasonably measure the outcome of the performance obligation.
For performance obligation satisfied at a point in time, the Group recognises revenue at the
point in time at which the customer obtains control of relevant goods or services. To
determine whether a customer has obtained control of goods or services, the Group considers
the following indicators:
- the Group has a present right to payment for the goods or services;
- the Group has transferred physical possession of the goods to the customer;
- the Group has transferred the legal title of the goods or the significant risks and rewards of
ownership of the goods to the customer; and
- the customer has accepted the goods or services.
The Group determines whether it is a principal or an agent, depending on whether it obtains
control of the specified good or service before that good or service is transferred to a
customer. The Group is a principal if it controls the specified good or service before that good
or service is transferred to a customer, and recognises revenue in the gross amount of
consideration to which it has received (or receivable). Otherwise, the Group is an agent, and
recognises revenue in the amount of any fee or commission to which it expects to be entitled.
The fee or commission is the net amount of consideration that the Group retains after paying
the other party the consideration, or is the established amount or proportion.
For the sale of a product with a right of return, the Group recognises revenue when the Group
obtains control of that product, in the amount of consideration to which the Group expects to
be entitled in exchange for the product transferred (i.e. excluding the amount of which
expected to be returned), and recognises a refund liability for the products expected to be
returned. Meanwhile, an asset is recognised in the amount of carrying amount of the product
expected to be returned less any expected costs to recover those products (including
potential decreases in the value of returned products), and carry forward to cost in the amount
of carrying amount of the transferred products less the above costs. At the end of each
reporting period, the Group updates its assessment of future sales return. If there is any
change, it is accounted for as a change in accounting estimate.
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The Group determines whether the licence transfers to a customer either at a point in time or
over time. If all of the following criteria are met, revenue is recognised for performance
obligations satisfied over time. Otherwise, revenue is recognised for performance obligations
satisfied at a point in time.
- the contract requires, or the customer reasonably expects, that the Group will undertake
activities that significantly affect the intellectual property to which the customer has rights;
- the rights granted by the licence directly expose the customer to any positive or negative
effects of the Group’s activities; and
- those activities do not result in the transfer of a good or a service to the customer as those
activities occur.
The Group recognises revenue for a sales-based or usage-based royalty promised in
exchange for a licence of intellectual property only when (or as) the later of the following
events occurs:
- the subsequent sale or usage occurs; and
- the performance obligation has been satisfied (or partially satisfied).
For a change in the scope or price of a contract that is approved by the parties to the contract,
the Group accounts for the contract modification according to the following situations:
- The addition of promised goods or services are distinct and the price of the contract
increases by an amount of consideration reflects stand-alone selling prices of the
additional promised goods or services, the Group shall account for a contract modification
as a separate contract.
- If the above criteria are not met, and the remaining goods or services are distinct from the
goods or services transferred on the date of the contract modification, the Group accounts
for the contract modification as if it were a termination of the existing contract and the
creation of a new contract.
- If the above criteria are not met, and the remaining goods or services are not distinct from
the goods or services transferred on the date of the contract modification, the Group
accounts for the contract modification as if it were a part of the existing contract. The effect
that the contract modification has on the revenue is recognised as an adjustment to
revenue in the reporting period.
A contract asset is the Group’s right to consideration in exchange for goods or services that it
has transferred to a customer when that right is conditional on something other than the
passage of time. The Group recognises loss allowances for expected credit loss on contract
assets (see Note III.9(6)). Accounts receivable is the Group’s right to consideration that is
unconditional (only the passage of time is required). A contract liability is the Group’s
obligation to transfer goods or services to a customer for which the Group has received
consideration (or an amount of consideration is due) from the customer.
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The following is the description of accounting policies regarding revenue from the Group’s
principal activities:
(1) Sale of goods
The sales contracts/orders signed between the Group and its customers usually contain
various trading terms. Depending on the trading terms, customers obtain control of the
goods when the goods are delivered and received, or when they are received by the
carrier. Revenue of sale of goods is recognised at that point in time.
For the transfer of goods with a right of return, revenue is recognised to the extent that it
is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur. Therefore, the amount of revenue recognised is adjusted for
the amount expected to be returned, which are estimated based on the historical data.
The Group recognises a refund liability based on the amount expected to be returned.
An asset is initially measured by reference to the former carrying amount of the product
expected to be returned less any expected costs to recover those products (including
potential decreases in the value to the Group of returned products). At each balance
sheet date, the Group updates the measurement of the refund liability for changes in
expectations about the amount of funds. The above asset and liability are adjusted
accordingly.
(2) Rendering of services
The Group recognises the revenue from rendering of services within a certain period of
time according to the progress of the performance as the customer simultaneously
receives and consumes the benefits provided by the Group’s performance as the Group
performs. Otherwise, for performance obligation satisfied at a point in time, the Group
recognises revenue at the point in time at which the customer obtains control of relevant
services.
24 Contract costs
Contract costs are either the incremental costs of obtaining a contract with a customer or the
costs to fulfil a contract with a customer.
Incremental costs of obtaining a contract are those costs that the Group incurs to obtain a
contract with a customer that it would not have incurred if the contract had not been obtained.
The Group recognises as an asset the incremental costs of obtaining a contract with a
customer if it expects to recover those costs. Other costs of obtaining a contract are expensed
when incurred.
If the costs to fulfil a contract with a customer are not within the scope of inventories or other
accounting standards, the Group recognises an asset from the costs incurred to fulfil a
contract only if those costs meet all of the following criteria:
- the costs relate directly to an existing contract or to a specifically identifiable anticipated
contract, including direct labour, direct materials, allocations of overheads (or similar
costs), costs that are explicitly chargeable to the customer and other costs that are
incurred only because the Group entered into the contract
- the costs generate or enhance resources of the Group that will be used in satisfying (or in
continuing to satisfy) performance obligations in the future; and
- the costs are expected to be recovered.
181
182
Assets recognised for the incremental costs of obtaining a contract and assets recognised for
the costs to fulfil a contract (the “assets related to contract costs”) are amortised on a
systematic basis that is consistent with the transfer to the customer of the goods or services to
which the assets relate and recognised in profit or loss for the current period.
The Group recognises an impairment loss in profit or loss to the extent that the carrying
amount of an asset related to contract costs exceeds:
- remaining amount of consideration that the Group expects to receive in exchange for the
goods or services to which the asset relates; less
- the costs that relate directly to providing those goods or services that have not yet been
recognised as expenses.
25 Employee benefits
(1) Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medical insurance, work injury insurance,
maternity insurance and housing fund, measured at the amount incurred or accrued at the applicable benchmarks and rates,
are recognised as a liability as the employee provides services, with a corresponding charge to profit or loss or included in the
cost of assets where appropriate.
(2) Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China, the Group participated in a defined
contribution basic pension insurance plan and unemployment insurance plan in the social insurance system established and
managed by government organisations, and annuity plan established by the Group in compliance with the national policy of
the corporation annuity. The Group makes contributions to basic pension insurance plan and unemployment insurance based
on the applicable benchmarks and rates stipulated by the government. Annuity is accrued based on the gross salaries of the
employees. Basic pension insurance contributions payable are recognised as a liability as the employee provides services,
with a corresponding charge to profit or loss or included in the cost of assets where appropriate.
(3) Post-employment benefits - defined benefit plans
During the reporting period, the Group did not have defined benefit plans.
(4) Termination benefits
When the Group terminates the employment with employees before the employment contracts expire, or provides
compensation under an offer to encourage employees to accept voluntary redundancy, a provision is recognised with a
corresponding expense in profit or loss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because of an employee termination plan
or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of termination benefits and has raised a
valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing
its main features to those affected by it.
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26 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from the government to the Group
except for capital contributions from the government in the capacity as an investor in the Group.
A government grant is recognised when there is reasonable assurance that the grant will be received and that the Group will
comply with the conditions attaching to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. If a
government grant is in the form of a transfer of a non-monetary asset, it is measured at fair value.
Government grants related to assets are grants whose primary condition is that the Group qualifying for them should
purchase, construct or otherwise acquire long-term assets. Government grants related to income are grants other than those
related to assets.
Those related to daily activities of the Company are included in other income or used to write off related cost based on the
nature of economic businesses, or included in non-operating income and expense in respect of those not related to daily
activities of the Company.
With respect to the government grants related to assets, if the Group first obtains government grants related to assets and then
recognises the long-term assets purchased and constructed, deferred income is included in profit and loss based on a
reasonable and systematic approach by stages when related assets are initially depreciated or amortised; or the deferred
income is written off against the carrying amount of the asset when the asset becomes ready for its intended status or intended
use. If the Group obtains government grants related to the assets after relevant long-term assets are put into use, deferred
income is included in profit and loss based on a reasonable and systematic approach by stages within the remaining useful
life of relevant assets, or the deferred income is written off against the carrying amount of relevant asset when the grants are
obtained; the assets shall be depreciated or amortised based on the carrying amount after being offset and the remaining
useful life of relevant assets.
For the government grants related to income which are used to compensate for related costs or losses of the Group in the
future period, it shall be recognised as deferred income, and included in profit and loss or used to offset related costs;
otherwise it shall be directly included in profit and loss or used to offset related costs.
In respect of the policy-based preferential loan interest subsidy obtained by the Group, if the interest subsidy is appropriated
to the lending bank which shall provide loans to the Group at the policy-based preferential interest rate, the actual loan
amount is used as the entry value and relevant borrowing costs are calculated on the basis of the loan principal and the
preferential interest rate. If the interest subsidy is directly appropriated to the Group, relevant borrowing costs shall be offset
by corresponding interest subsidy. If borrowing costs are capitalised as part of the cost of the asset (see Note III.15), the
interest subsidy shall be used to offset relevant asset costs.
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27 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they relate to a business combination or
items recognised directly in equity (including other comprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on taxable income for the year, plus any
adjustment to tax payable in respect of previous years.
At the balance sheet date, current tax assets and liabilities are offset only if the Group has a legally enforceable right to set
them off and also intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differences respectively, being the
differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases, which
include the deductible losses and tax credits carried forward to subsequent periods. Deferred tax assets are recognised to the
extent that it is probable that future taxable profits will be available against which deductible temporary differences can be
utilised.
Deferred tax is not recognised for the temporary differences arising from the initial recognition of assets or liabilities in a
transaction that is not a business combination and that affects neither accounting profit nor taxable profit (or deductible loss).
Deferred tax is not recognised for taxable temporary differences arising from the initial recognition of goodwill.
At the balance sheet date, deferred tax is measured based on the tax consequences that would follow from the expected
manner of recovery or settlement of the carrying amounts of the assets and liabilities, using tax rates enacted at the balance
sheet date that are expected to be applied in the period when the asset is recovered or the liability is settled.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and is reduced to the extent that it is no
longer probable that the related tax benefits will be utilised. Such reduction is reversed to the extent that it becomes probable
that sufficient taxable profits will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all of the following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current tax assets;
- they relate to income taxes levied by the same tax authority on either:
- the same taxable entity; or
- different taxable entities which intend either to settle the current tax liabilities and current tax assets on a net basis, or
to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of
deferred tax liabilities or deferred tax assets are expected to be settled or recovered.
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28 Operating leases and finance leases
A lease is classified as either a finance lease or an operating lease. A lease is classified as a finance lease if it transfers
substantially all the risks and rewards incidental to ownership of an underlying asset irrespective of whether the legal title to
the asset is eventually transferred. An operating lease is a lease other than a finance lease.
(1) Operating lease charges
Rental payments under operating leases are recognised as part of the cost of another related asset or as expenses on a
straight-line basis over the lease term.
(2) Assets leased out under operating leases
Fixed assets leased out under operating leases, except for investment properties (see Note III.12), are depreciated in
accordance with the Group’s depreciation policies described in Note III.13(2). Impairment losses are recognised in
accordance with the accounting policy described in Note III.19. Income derived from operating leases is recognised in profit
or loss using the straight-line method over the lease term. If initial direct costs incurred in respect of the assets leased out are
material, the costs are initially capitalised and subsequently amortised in profit or loss over the lease term on the same basis
as the lease income. Otherwise, the costs are charged to profit or loss immediately.
(3) Assets acquired under finance leases
At the commencement of the lease term, the minimum lease payments are recorded as long-term payables. The difference
between the carrying amount of the leased assets and the minimum lease payments is accounted for as unrecognised finance
charges. Initial direct costs attributable to a finance lease that are incurred by the Group are added to the carrying amount of
the leased asset. Depreciation and impairment losses are accounted for in accordance with the accounting policies described
in Notes III.13(2) and III.19, respectively.
If there is reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease term, the leased
asset is depreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorter of the lease term
and its estimated useful life.
Unrecognised finance charges arising from a finance lease are recognised using an effective interest method over the lease
term. The amortisation is accounted for in accordance with the principles of borrowing costs (see Note III.15).
At the balance sheet date, the long-term payables arising from finance leases, net of the unrecognised finance charges, are
analysed and separately presented as long-term payables or non-current liabilities due within one year.
29 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when the carrying amount of a non-current asset or
disposal group will be recovered through a sale transaction rather than through continuing use.
A disposal group refers to a group of assets to be disposed of, by sale or otherwise, together as a whole in a single transaction
and liabilities directly associated with those assets that will be transferred in the transaction.
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A non-current asset or disposal group is classified as held for sale when all the following criteria are met:
- According to the customary practices of selling such asset or disposal group in similar transactions, the non-current asset
or disposal group must be available for immediate sale in their present condition subject to terms that are usual and
customary for sales of such assets or disposal groups;
- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and has obtained a firm purchase
commitment. The sale is to be completed within one year.
Non-current assets or disposal groups held for sale are stated at the lower of carrying amount and fair value (see Note III.20)
less costs to sell (except financial assets (see Note III.9) and deferred tax assets (see Note III.27)) initially and subsequently.
Any excess of the carrying amount over the fair value (see Note III.20) less costs to sell is recognised as an impairment loss
in profit or loss.
30 Hedge accounting
Hedge accounting is a method which recognises in profit or loss (or other comprehensive income) the gain or loss on the
hedging instrument and the hedged item in the same accounting period(s) to represent the effect of risk management.
Hedged items are items that expose the Group to risks of changes in fair value or cash flows and that are designated as being
hedged and can be reliably measured. The Group’s hedged items include fixed-rate borrowings that expose the Group to the
risk of changes in fair value, a firm commitment that is settled with a fixed amount of foreign currency and that exposes the
Group to foreign currency risk.
A hedging instrument is a designated financial instrument whose changes in fair value or cash flows are expected to offset
changes in the fair value or cash flows of the hedged item. For a hedge of foreign currency risk, the foreign currency risk
component of a non-derivative financial asset or non-derivative financial liability may also be designated as a hedging
instrument provided that it is not an investment in an equity instrument for which an entity has elected to present changes in
the fair value in other comprehensive income.
The Group assesses at the inception of a hedging relationship, and on an ongoing basis, whether the hedging relationship
meets the hedge effectiveness requirements. A hedging relationship is regarded as having met the hedge effectiveness
requirements if all of the following conditions are satisfied:
- There is an economic relationship between the hedged item and the hedging instrument.
- The effect of credit risk does not dominate the value changes that result from the economic relationship.
- The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the
entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of the
hedged item.
When a hedging relationship no longer meets the hedge effectiveness requirements due to the hedge ratio, but the risk
management objective of the designated hedging relationship remains unchanged, the Group rebalances the hedging
relationship. Rebalancing refers to the adjustments made to the designated quantities of the hedged item or the hedging
instrument of an already existing hedging relationship for the purpose of maintaining a hedge ratio that complies with the
hedge effectiveness requirements.
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The Group discontinues applying hedge accounting in any of the following circumstances:
- The hedging relationship no longer meets the risk management objective on the basis of which it qualified for hedge
accounting.
- The hedging instrument expires or is sold, terminated or exercised.
- There is no longer an economic relationship between the hedged item and the hedging instrument or the effect of credit
risk starts to dominate the value changes that result from that economic relationship.
- The hedging relationship no longer meets other criteria for applying hedge accounting.
Cash flow hedges
A cash flow hedge is a hedge of the exposure to variability in cash flows. The portion of the gain or loss on a hedging
instrument that is determined to be an effective hedge is recognised in other comprehensive income as a cash flow hedge
reserve. The amount of the cash flow hedge reserve is adjusted to the lower of the following (in absolute amounts):
- the cumulative gain or loss on the hedging instrument from inception of the hedge;
- the cumulative change in present value of the expected future cash flows on the hedged item from inception of the hedge.
The change in the amount of the cash flow hedge reserve is recognised in other comprehensive income in each period.
The portion of the gain or loss on the hedging instrument that is determined to be ineffectiveness is recognised in profit or
loss.
If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, or a
hedged forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair
value hedge accounting is applied, the Group removes that amount from the cash flow hedge reserve and includes it in the
initial cost or other carrying amount of the asset or liability.
For cash flow hedges other than those covered above, that amount is reclassified from the cash flow hedge reserve to profit or
loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows affect
profit or loss.
When the Group discontinues hedge accounting for a cash flow hedge, the amount of the accumulated cash flow hedge
reserve recognised in other comprehensive income is accounted for as follows:
- If the hedged future cash flows are still expected to occur, that amount will remain in the cash flow hedge reserve, and be
accounted for in accordance with the above policy.
- If the hedged future cash flows are no longer expected to occur, that amount is immediately reclassified from the cash
flow hedge reserve to profit or loss as a reclassification adjustment.
31 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan, which will be approved after the balance sheet
date, are not recognised as a liability at the balance sheet date but are disclosed in the notes separately.
188
32 Related parties
If a party has the power to control, jointly control or exercise significant influence over another party, or vice versa, or where
two or more parties are subject to common control or joint control from another party, they are considered to be related
parties. Related parties may be individuals or enterprises. Enterprises with which the Company is under common control only
from the State and that have no other related party relationships are not regarded as related parties.
In addition to the related parties stated above, the Company determines related parties based on the disclosure requirements
of Administrative Procedures on the Information Disclosures of Listed Companies issued by the CSRC.
33 Segment reporting
Reportable segments are identified based on operating segments which are determined based on the structure of the Group’s
internal organisation, management requirements and internal reporting system after taking the materiality principle into
account. Two or more operating segments may be aggregated into a single operating segment if the segments have similar
economic characteristics and are same or similar in respect of the nature of products and services, the nature of production
processes, the types or classes of customers for the products and services, the methods used to distribute the products or
provide the services, and the nature of the regulatory environment. Reportable segments are identified based on operating
segments taking into account of materiality principle.
Inter-segment revenues are measured on the basis of the actual transaction prices for such transactions for segment reporting.
Segment accounting policies are consistent with those for the consolidated financial statements.
34 Significant accounting estimates and judgements
The preparation of the financial statements requires management to make estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may
differ from these estimates. Estimates as well as underlying assumptions and uncertainties involved are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any
future periods affected.
Except for accounting estimates relating to depreciation and amortisation of assets such as fixed assets and intangible assets
(see Notes III.13 and 16) and provision for impairment of various types of assets (see Notes V.4, 6, 7, 8, 11, 14, 15, 16 and 17
and Notes XV.2, 3, 5 and 6). Other significant accounting estimates are as follows:
(i) Note V.19: – Recognition of deferred tax assets;
(ii) Note V.30 – Warranty provisions;
(iii) Note IX – Valuation of fair value of financial instruments; and
(iv) Note XI: – Share-based payments.
Significant judgements made by the Group in the application of accounting policies are as follows:
(i) Note VII.1(1) –Significant judgements and assumptions in determining control over other entity.
189
35 Changes in accounting policies
(1) Description and reasons of changes in accounting policies
In 2020, the Group has adopted the following accounting standards issued by the MOF recently:
- CAS No.14 - Revenue (Revised) (“new revenue standard”)
- CAS Bulletin No.13 (Caikuai [2019] No.21)
- The Accounting Treatment of COVID-19-Related Rent Concessions (Caikuai [2020] No.
10)
(a) New revenue standard
New revenue standard replaces CAS No.14 – Revenue and CAS No.15 - Construction
Contracts issued by the MOF in 2006 (“previous revenue standard”).
Under previous revenue standard, the Group recognised revenue when the risks and
rewards had passed to the customers. The Group's revenue from sales of goods was
recognised when the following conditions were met: the significant risks and rewards of
ownership of the goods had been transferred to the customer, the amount of revenue
and related costs could be reliably measured, the relevant economic benefits would
probably flow to the Group and the Group retained neither continuing managerial
involvement to the degree usually associated with ownership nor effective control over
the goods sold. Revenue from rendering of services and revenue from construction
contracts were recognised by reference to the stage of completion of the transaction at
the balance sheet date.
Under new revenue standard, revenue is recognised when the customer obtains control
of the promised goods or services in the contract:
- Revenue is recognised when the Group satisfies the performance obligation in the
contract by transferring the control over relevant goods or services to the customers.
The Group satisfies a performance obligation over time if certain criteria is met; or
otherwise, a performance obligation is satisfied at a point in time. Where a contract
has two or more performance obligations, the Group determines the stand-alone
selling price at contract inception of the distinct good or service underlying each
performance obligation in the contract and allocates the transaction price in
proportion to those stand-alone selling prices. The Group recognises as revenue the
amount of the transaction price that is allocated to each performance obligation. The
transaction price is the amount of consideration to which the Group expects to be
entitled in exchange for transferring promised goods or services to a customer,
excluding amounts collected on behalf of third parties. The Group recognises the
transaction price only to the extent that it is highly probable that a significant reversal
in the amount of cumulative revenue recognised will not occur when the uncertainty
associated with the variable consideration is subsequently resolved. Where the
contract contains a significant financing component, the Group recognises the
transaction price at an amount that reflects the price that a customer would have paid
for the promised goods or services if the customer had paid cash for those goods or
services when (or as) they transfer to the customer. The difference between the
amount of promised consideration and the cash selling price is amortised using an
effective interest method over the contract term.
190
- The Group have adjusted the relevant accounting policies in accordance with the
specific provisions on specific matters or transactions under new revenue standard,
such as contract costs, warranties, principal versus agent considerations, sale with a
right of return, customer options for additional goods or services, licensing,
repurchase agreements, advance receipts, non-refundable upfront fee, etc.
- Under new revenue standard, the Group presents a contract asset or a contract
liability in the balance sheet based on the relationship between the Group's
performance and the customer's payment. At the same time, the Group provides
more disclosures on revenue and related information based on the disclosure
requirements under new revenue standard, such as relevant accounting policies,
significant judgements (measurement of variable consideration, the method used to
allocate the transaction price to each performance obligation, the assumption used
for estimating stand-alone selling price of each performance obligation, etc.),
information of contracts with customers (revenue recognised in current period,
contract balance, performance obligation, etc.), information of assets related to
contract costs, etc.
The effect of adopting new revenue standard on the Group’s accounting policies are as follows:
- When there is a third party participating in sales of goods to customers, under
previous revenue standard, the Group determines whether it is a principal or an
agent by comprehensively taking into account whether it has pricing rights and
assumes any inventory risk and credit risk and other factors. Under new revenue
standard, the Group determines according to the following conditions: 1) the entity
transfers to the customer after having obtained the control of the goods or other
assets from a third party; 2) the entity can engage a third party to provide services to
the customer on its behalf; 3) after obtaining control of the goods from a third party,
the entity integrates the goods with other goods by providing a significant service to
form a compound output to transfer to the customer.
- The transportation costs related to sales contract assumed by the Group are
presented as selling expenses under previous revenue standard. According to the
accounting requirements of new revenue standard, transportation is a necessary
activity when the Group is fulfilling the sales contract, and therefore the related costs
are the costs to fulfil a contract, which will be adjusted to be presented under
operating costs after the adoption of new revenue standard.
- For advance from customers for transfer of goods (or rendering of services), under
previous revenue standard, the Group will include it in “Advance from customers”.
Under new revenue standard, the Group presents its obligation to transfer goods for
which the Group has received consideration from the customer in the balance sheet
as a “contract liability” since 1 January 2020, depending on the relationship between
the entity's performance and the customer's payment. Comparative figures are not
restated.
- For the transfer of products with a right of return, under previous revenue standard
the Group made a reasonable estimation of the return based on experience, then
adjusted revenue and corresponding cost for the amount expected to be returned
and recognised the difference as a liability. Under new revenue standard, the Group
recognises a refund liability based on the amount expected to be returned. The
product expected to be returned is initially recognised as an asset for the right to
recover returned goods.
191
192
- For the revenue from granting of a licence of intellectual property to subsidiaries of
the Group, under previous revenue standard, the company recognises revenue
according to the period and method of charging as stipulated in the relevant
contracts or agreements. Under new revenue standard, if all of the following criteria
are met, revenue is recognised for performance obligations satisfied over time.
Otherwise, revenue is recognised for performance obligations satisfied at a point in
time: 1) the contract requires, or the customer reasonably expects, that the Group
will undertake activities that significantly affect the intellectual property to which the
customer has rights; 2) the rights granted by the licence directly expose the customer
to any positive or negative effects of the Group’s activities; and 3) those activities do
not result in the transfer of a good or a service to the customer as those activities
occur. When the Company grants a licence of intellectual property to subsidiaries,
the revenue shall be recognised at a point in time.
The Group has recognised the cumulative effect of initial application as an adjustment to the opening balance of
retained earnings and the amount of other relevant items in the financial statements at 1 January 2020, and
comparative information has not been restated. The Group only adjusted the cumulative effect of contracts that were
not completed before 1 January 2020 to the opening balance of retained earnings and the amount of other relevant
items in the financial statements at 1 January 2020.
The following tables provide information of the impact on each of the line items in the consolidated income statement
and company income statement, and the consolidated balance sheet and company balance sheet, as well as the
consolidated cash flow statement and company cash flow statement for the year ended 31 December 2020 had the
previous policies still been applied in the year.
- The effects on each of the line items in the consolidated income statement and
company income statement for the year ended 31 December 2020 are analysed as
follows:
Decrease in the line items for the year as a result of
applying new accounting policies
The Group The Company
Operating income from principal activities (9,117,107,992) (1,200,000,000)
Operating cost of principal activities (8,446,207,600) -
Selling and distribution expenses (670,900,392) -
Profit before income tax - (1,200,000,000)
Income tax expenses - (180,000,000)
Net profit for the year - (1,020,000,000)
193
- The effects on each of the line items in the consolidated balance sheet and company
balance sheet as at 31 December 2020 are analysed as follows:
Decrease/(increase) in the line items as a result of
applying new accounting policies
The Group The Company
Assets
Accounts receivable (49,897,395) 1,723,155,949
Contract assets 49,897,395 -
Other current assets 131,986,424 -
Deferred tax assets - (315,937,260)
Other non-current assets - 2,250,000,000
Liabilities
Advance from customers (3,719,511,537) (1,108,092,452)
Contract liabilities 3,440,720,535 -
Other current liabilities 410,777,426 -
Deferred tax liabilities - (446,250,000)
Shareholders’ equity
Surplus reserve - 431,906,114
Retained earnings - 3,887,155,027
The impact of the adoption of new revenue standard on each of the line items in the consolidated balance sheet and
company balance sheet as at 1 January 2020 are analysed as follows:
The Group
31 December 2019 1 January 2020 Adjustments
Assets
Current assets
Cash at bank and on hand 56,972,723,239 56,972,723,239 -
Financial assets held for trading 5,809,184,994 5,809,184,994 -
Bills receivable 331,145,492 331,145,492 -
Accounts receivable 18,135,687,806 18,107,976,861 (27,710,945)
Contract assets - 27,710,945 27,710,945
Prepayments 626,985,706 626,985,706 -
Other receivables 706,171,112 706,171,112 -
Inventories 12,396,194,762 12,396,194,762 -
Assets held for sale 173,910,820 173,910,820 -
Other current assets 9,296,637,067 9,375,901,777 79,264,710
Total current assets 104,448,640,998 104,527,905,708 79,264,710
Non-current assets
Long-term equity investments 2,718,037,934 2,718,037,934 -
Investments in other equity instruments 632,076,647 632,076,647 -
Investment properties 1,241,242,850 1,241,242,850 -
Fixed assets 125,786,241,938 125,786,241,938 -
194
Construction in progress 87,376,782,527 87,376,782,527 -
Intangible assets 7,416,416,829 7,416,416,829 -
Goodwill 707,603,856 707,603,856 -
Long-term deferred expenses 345,424,409 345,424,409 -
Deferred tax assets 248,153,761 248,153,761 -
Other non-current assets 9,491,581,559 9,491,581,559 -
Total non-current assets 235,963,562,310 235,963,562,310 -
Total assets 340,412,203,308 340,491,468,018 79,264,710
195
The Group
31 December 2019 1 January 2020 Adjustments
Liabilities and shareholders’ equity
Current liabilities
Short-term loans 6,366,717,121 6,366,717,121 -
Bills payable 2,028,917,980 2,028,917,980 -
Accounts payable 21,183,567,553 21,183,567,553 -
Advance payments received 1,260,732,785 123,152,835 (1,137,579,950)
Contract liabilities - 1,083,074,827 1,083,074,827
Employee benefits payable 2,373,745,454 2,373,745,454 -
Taxes payable 730,996,129 730,996,129 -
Other payables 24,570,589,610 24,570,589,610 -
Non-current liabilities due within one
year 18,849,281,019 18,849,281,019 -
Other current liabilities 1,013,738,515 1,147,508,348 133,769,833
Total current liabilities 78,378,286,166 78,457,550,876 79,264,710
Non-current liabilities
Long-term loans 107,730,595,615 107,730,595,615 -
Debentures payable 387,878,384 387,878,384 -
Long-term payables 984,520,824 984,520,824 -
Provisions 16,457,010 16,457,010 -
Deferred income 2,204,400,566 2,204,400,566 -
Deferred tax liabilities 1,451,825,357 1,451,825,357 -
Other non-current liabilities 8,200,542,412 8,200,542,412 -
Total non-current liabilities 120,976,220,168 120,976,220,168 -
Total liabilities 199,354,506,334 199,433,771,044 79,264,710
Shareholders’ equity
Share capital 34,798,398,763 34,798,398,763 -
Other equity instruments 8,013,156,853 8,013,156,853 -
Capital reserve 38,353,242,364 38,353,242,364 -
Other comprehensive income (4,566,639) (4,566,639) -
Surplus reserve 1,516,139,709 2,050,045,823 533,906,114
Retained earnings 12,381,758,005 11,847,851,891 (533,906,114)
Total equity attributable to shareholders of
the Company 95,058,129,055 95,058,129,055 -
Non-controlling interests 45,999,567,919 45,999,567,919 -
Total shareholders’ equity 141,057,696,974 141,057,696,974 -
Total liabilities and shareholders’ equity 340,412,203,308 340,491,468,018 79,264,710
196
The Company
31 December 2019 1 January 2020 Adjustments
Assets
Current assets
Cash at bank and on hand 3,680,770,048 3,680,770,048 -
Bills receivable 84,230,531 84,230,531 -
Accounts receivable 646,533,115 1,698,906,221 1,052,373,106
Prepayments 77,682,682 77,682,682 -
Other receivables 4,827,398,094 4,827,398,094 -
Inventories 13,935,401 13,935,401 -
Other current assets 109,497,897 109,497,897 -
Total current assets 9,440,047,768 10,492,420,874 1,052,373,106
Non-current assets
Long-term equity investments 159,389,864,760 159,389,864,760 -
Investments in other equity instruments 79,405,724 79,405,724 -
Investment properties 280,525,802 280,525,802 -
Fixed assets 949,104,308 949,104,308 -
Construction in progress 358,933,667 358,933,667 -
Intangible assets 1,493,632,264 1,493,632,264 -
Long-term deferred expenses 109,216,398 109,216,398 -
Deferred tax assets 360,268,466 - (360,268,466)
Other non-current assets 162,516,190 3,337,516,190 3,175,000,000
Total non-current assets 163,183,467,579 165,998,199,113 2,814,731,534
Total assets 172,623,515,347 176,490,619,987 3,867,104,640
197
The Company
31 December 2019 1 January 2020 Adjustments
Liabilities and shareholders’ equity
Current liabilities
Short-term loans 1,220,000,000 1,220,000,000 -
Accounts payable 27,919,341 27,919,341 -
Advance payments received 2,117,568,995 9,476,543 (2,108,092,452)
Contract liabilities - 51,148,261 51,148,261
Employee benefits payable 252,206,075 252,206,075 -
Taxes payable 107,287,957 107,287,957 -
Other payables 5,260,470,974 5,260,470,974 -
Non-current liabilities due within one year 5,490,440,787 5,490,440,787 -
Other current liabilities 1,423,133 4,492,029 3,068,896
Total current liabilities 14,477,317,262 12,423,441,967 (2,053,875,295)
Non-current liabilities
Long-term loans 33,310,701,574 33,310,701,574 -
Deferred income 4,627,393,256 4,627,393,256 -
Deferred tax liabilities - 581,918,794 581,918,794
Other non-current liabilities 33,297,240,830 33,297,240,830 -
Total non-current liabilities 71,235,335,660 71,817,254,454 581,918,794
Total liabilities 85,712,652,922 84,240,696,421 (1,471,956,501)
Shareholders’ equity
Share capital 34,798,398,763 34,798,398,763 -
Other equity instruments 8,013,156,853 8,013,156,853 -
Capital reserve 37,608,039,685 37,608,039,685 -
Other comprehensive income 193,638,576 193,638,576 -
Surplus reserve 1,516,139,709 2,050,045,823 533,906,114
Retained earnings 4,781,488,839 9,586,643,866 4,805,155,027
Total shareholders’ equity 86,910,862,425 92,249,923,566 5,339,061,141
Total liabilities and shareholders’ equity 172,623,515,347 176,490,619,987 3,867,104,640
198
(b) CAS Bulletin No.13
CAS Bulletin No.13 amends the three elements that constitute a business, provides specific guidance on the
determination of a business, and introduces an optional concentration test when the acquirer determines whether the
acquired operating activities or asset portfolios not involving enterprises under common control constitute a business.
In addition, CAS Bulletin No.13 has further clarified that related parties of an entity also include the joint venture(s)
or associate(s) of the other members (including the parent and subsidiaries) in the same group that includes the entity,
and the other joint venture(s) or associate(s) of the investors who exercise joint control over the entity, etc.
CAS Bulletin No.13 takes effect on 1 January 2020. The Group has adopted the accounting policy change
prospectively. The adoption of CAS Bulletin No.13 does not have any significant effect on the financial position,
financial performance or related party disclosures of the Group.
(c) Caikuai [2020] No.10
Caikuai [2020] No.10 provides a practical expedient under certain conditions for rent concessions occurring as a
direct consequence of the Covid-19 pandemic. If an entity elects to apply the practical expedient, the entity does not
need to assess whether a lease modification has occurred or to reassess the lease classification.
Caikuai [2020] No.10 takes effect on 24 June 2020 (the implementation date). The entity is allowed to adjust the
related rent concessions that occurred between 1 January 2020 and the implementation date. The adoption of Caikuai
[2020] No.10 does not have any significant effect on the financial position or financial performance of the Group.
199
IV. Taxation
1 Main types of taxes and corresponding tax rates
Tax type Tax basis Tax rate
Value-added tax (VAT) Output VAT is calculated on product sales and taxable services 6%, 9%, 10%,
revenue. The basis for VAT payable is to deduct input VAT from 13%, 16%
the output VAT for the period
City maintenance and 7%, 5%
construction tax Based on VAT paid, VAT exemption and offset for the period
Education surcharges and 3%, 2%
local education surcharges Based on VAT paid, VAT exemption and offset for the period
Corporate income tax Based on taxable profits 15% - 33%
2 Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2019: 15%).
Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatment No. 28, corporate income tax for key
advanced and high-tech enterprises supported by the State is applicable to a preferential tax rate of 15%.
On 2 December 2020, the Company renewed the High-tech Enterprise Certificate No. GR202011004594, which was entitled
jointly by Beijing Municipal Science and Technology Commission, Beijing Municipal Financial Bureau, Beijing Municipal
State Administration of Taxation and Beijing Municipal Local Administration of Taxation. The Company is subject to
corporate income tax rate of 15% since the date of certification with the valid period of three years.
The income tax rate applicable to other subsidiaries of the Group is 25% other than the following subsidiaries and the
overseas subsidiaries which subject to the local income tax rate.
200
The subsidiaries that are entitled to preferential tax treatments are as follows:
Preferential
Company name rate Reason
Beijing BOE Optoelectronics Technology Co., Ltd. (BOE OT) 15% High-tech Enterprise
Chengdu BOE Optoelectronics Technology Co., Ltd. (Chengdu
Optoelectronics ) 15% High-tech Enterprise
Hefei BOE Optoelectronics Technology Co., Ltd.(Hefei BOE) 15% High-tech Enterprise
Beijing BOE Display Technology Co., Ltd. (BOE Display) 15% High-tech Enterprise
Hefei Xinsheng Optoelectronics Technology Co., Ltd. (Hefei
Xinsheng) 15% High-tech Enterprise
Ordos Yuansheng Optoelectronics Co., Ltd. (Yuansheng Encouraged enterprise in
Optoelectronics) 15% Western Regions
Encouraged enterprise in
Chongqing BOE Optoelectronics Co., Ltd. (Chongqing BOE) 15% Western Regions
BOE (Hebei) Mobile Technology Co., Ltd. (BOE Hebei) 15% High-tech Enterprise
BOE Optical Science and technology Co., Ltd. (Optical
Technology) 15% High-tech Enterprise
Beijing BOE CHATANI Electronics Co., Ltd. (Beijing CHATANI) 15% High-tech Enterprise
Hefei BOE Display Lighting Co., Ltd. (Hefei Display Lighting) 15% High-tech Enterprise
Chongqing BOE Display Lighting Co., Ltd. (Chongqing Display
Lighting) 15% High-tech Enterprise
Hefei BOE Semiconductor Co., Ltd. (Hefei Semiconductor) 15% High-tech Enterprise
Beijing BOE Special Display Technology Co., Ltd. (Special
Display) 15% High-tech Enterprise
Beijing BOE Vacuum Electronics Co., Ltd. (Vacuum Electronics) 15% High-tech Enterprise
Beijing BOE Vacuum Technology Co., Ltd. (Vacuum Technology) 15% High-tech Enterprise
Beijing BOE Energy Technology Co., Ltd. (BOE Energy) 15% High-tech Enterprise
Fuzhou BOE Optoelectronics Technology Co., Ltd. (Fuzhou BOE) 15% High-tech Enterprise
Hefei BOE Vision-Electronic Technology Co., Ltd. (Hefei
Technology) 15% High-tech Enterprise
Mianyang BOE Optoelectronics Technology Co., Ltd. (Mianyang Encouraged enterprise in
BOE) 15% Western Regions
BOE Wisdom IOT Technology Co., Ltd. (Wisdom IOT) 15% High-tech Enterprise
K-Tronics (Suzhou) Technology Co., Ltd.
(Suzhou K-Tronics) 15% High-tech Enterprise
Beijing BOE Sensing Technology Co., Ltd. (Sensing Technology) 15% High-tech Enterprise
Chongqing BOE Smart Electronic System Co., Ltd. (Chongqing Encouraged enterprise in
Smart Electronic) 15% Western Regions
Beijing BOE Health Technology Co., Ltd.
(Health Technology) 15% High-tech Enterprise
Chongqing BOE Electronic Technology Co., Ltd. (Chongqing Encouraged enterprise in
Electronic Technology) 15% Western Regions
Wuhan BOE Optoelectronics Technology Co., Ltd. (Wuhan BOE) 15% High-tech Enterprise
Nanjing CEC Panda FPD Technology Co., Ltd. (Nanjing CEC
Panda) 15% High-tech Enterprise
Chengdu CEC Panda Display Technology Co., Ltd. (Chengdu CEC Encouraged enterprise in
Panda) 15% Western Regions
201
BOE Regenerative Medical Technology Co., Ltd. (Regenerative
Medical) 15% High-tech Enterprise
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
2020 2019
Amount in original RMB/RMB Amount in original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
Cash on hand
RMB 277,055 352,736
USD 1,493 6.5249 9,741 1,927 6.9762 13,443
HKD 55,494 0.8416 46,706 96,829 0.8958 86,739
JPY 58,474 0.0632 3,698 51,485 0.0641 3,300
KRW 490,445 0.0060 2,941 490,690 0.0060 2,944
Other foreign currencies 60,900 79,176
Sub-total 401,041 538,338
Bank deposits
RMB 39,618,620,160 22,108,949,641
USD 4,051,241,539 6.5249 26,433,945,919 3,793,451,398 6.9762 26,463,875,643
HKD 21,037,675 0.8416 17,706,149 17,880,803 0.8958 16,017,623
JPY 15,628,343,064 0.0632 988,273,902 11,996,438,527 0.0641 768,971,710
KRW 521,128,601 0.0060 3,125,209 700,598,718 0.0060 4,203,592
EUR 136,705,809 8.0250 1,097,064,115 110,515,896 7.8155 863,736,985
Other foreign currencies 46,443,965 43,452,413
Sub-total 68,205,179,419 50,269,207,607
Other monetary funds
RMB 3,949,848,676 3,728,439,717
USD 218,704,451 6.5249 1,427,024,669 421,172,173 6.9762 2,938,181,313
HKD 15 0.8416 13 3,156 0.8958 2,827
JPY 1,769,656,282 0.0632 111,842,277 567,260,199 0.0641 36,353,437
Sub-total 5,488,715,635 6,702,977,294
Total 73,694,296,095 56,972,723,239
Including: Total overseas deposits were equivalent to RMB 7,025,632,935 (2019: RMB 5,864,466,250).
As at 31 December 2020, other monetary funds were pledged by the Group amounting to RMB 99,133,679 for long-term
loans, and USD 152,091,672 were pledged for short-term loans. The rest of other restricted monetary funds, amounting to
RMB 4,396,583,003, were the deposits in commercial banks as security.
As at 31 December 2019, other monetary funds were pledged by the Group amounting to USD 342,000,000 for short-term
loans, and RMB 151,840,291 and USD 7,500,000 were pledged for long-term loans. The rest of other restricted monetary
funds, amounting to RMB 4,112,379,475, were the deposits in commercial banks as security.
2 Financial assets held for trading
Item 31 December 2020 31 December 2019
202
Financial assets at fair value through profit or loss
- Structured deposit and wealth management products 4,367,201,833 5,809,184,994
3 Bills receivable
(1) Classification of bills receivable
Item 31 December 2020 31 December 2019
Bank acceptance bills 215,994,373 331,145,492
Total 215,994,373 331,145,492
All of the above bills are due within one year.
(2) The pledged bills receivable of the Group at the end of the year
As at 31 December 2020, there is no pledged bills for the Group (2019: Nil).
(3) Outstanding endorsed or discounted bills that have not matured at the end of the year
Amount not
Amount derecognised as derecognised as at 31
Item at 31 December 2020 December 2020
Bank acceptance bills 4,370,824 60,214,157
Total 4,370,824 60,214,157
For the year ended 31 December 2020, there was no amount transferred to accounts receivable from bills receivable due to
non-performance of the issuers of the Group (2019: Nil).
4 Accounts receivable
(1) The Group’s accounts receivable by customer type:
Item 31 December 2020 31 December 2019
Amounts due from related parties 38,773,536 1,960,247
Amounts due from other customers 22,988,229,841 18,481,732,857
Sub-total 23,027,003,377 18,483,693,104
Less: Provision for bad and doubtful debts 57,863,022 348,005,298
Total 22,969,140,355 18,135,687,806
203
(2) The Group’s accounts receivable by currency type:
2020 2019
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
RMB 8,322,396,079 8,041,480,485
USD 2,136,679,897 6.5249 13,941,622,660 1,438,995,152 6.9762 10,038,717,980
JPY 36,855,786 0.0632 2,329,286 25,172,988 0.0641 1,613,589
Other foreign currencies 760,655,352 401,881,050
Sub-total 23,027,003,377 18,483,693,104
Less: Provision for bad and doubtful debts 57,863,022 348,005,298
Total 22,969,140,355 18,135,687,806
(3) The ageing analysis of accounts receivable is as follows:
31 December 2020 31 December 2019
Within 1 year (inclusive) 22,515,188,628 17,872,807,760
Over 1 year but within 2 years (inclusive) 256,800,012 233,485,656
Over 2 years but within 3 years (inclusive) 172,351,904 68,549,411
Over 3 years 82,662,833 308,850,277
Sub-total 23,027,003,377 18,483,693,104
Less: Provision for bad and doubtful debts 57,863,022 348,005,298
Total 22,969,140,355 18,135,687,806
The ageing is counted starting from the date when accounts receivable are recognised.
(4) Accounts receivable by provisioning method
31 December 2020
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 60,093,972 0% 41,752,588 69% 18,341,384
- Customers with low credit risk 1,036,981,635 5% - 0% 1,036,981,635
Collective assessment
- Customers with moderate credit risk 21,929,927,770 95% 16,110,434 0% 21,913,817,336
Total 23,027,003,377 100% 57,863,022 0% 22,969,140,355
31 December 2019
204
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 334,464,437 2% 334,419,437 100% 45,000
- Customers with low credit risk 1,398,318,800 7% 38,734 0% 1,398,280,066
Collective assessment
- Customers with moderate credit risk 16,750,909,867 91% 13,547,127 0% 16,737,362,740
Total 18,483,693,104 100% 348,005,298 2% 18,135,687,806
205
(a) Criteria for collective assessment in 2020 and details:
Customer group Basis
With special matters, litigations or the deterioration of customers’
Customers with high credit risk credit status
Banks, insurance companies, large state-owned enterprises and
Customers with low credit risk public institutions
Customers with moderate credit risk Customers not included in Groups above
(b) Assessment of ECLs on accounts receivable in 2020:
At all times the Group measures the impairment loss for accounts receivable at an amount equal to lifetime ECLs,
and the ECLs are based on the number of overdue days and the expected loss rate. According to the Group’s historical
experience, different loss models are applicable to different customer groups.
(5) Movements of provisions for bad and doubtful debts:
31 December 2020 31 December 2019
Balance at the beginning of the year 348,005,298 325,211,590
Charge during the year 13,048,035 23,510,271
Recoveries during the year (15,387,358) (1,493,365)
Written-off during the year (285,159,459) (4,211,814)
Translation differences (2,643,494) 4,988,616
Balance at the end of the year 57,863,022 348,005,298
(6) Five largest accounts receivable by debtor at the end of the year
The total of five largest accounts receivable of the Group at the end of the year was RMB 7,874,647,846, representing 34% of
the total accounts receivable, and no provision was made for bad and doubtful debts after assessment.
5 Prepayments
(1) The Group’s prepayments by category:
31 December 2020 31 December 2019
Prepayment for inventory 617,801,035 107,673,472
Prepayment for electricity and water 230,580,992 271,295,136
Others 271,213,957 248,017,098
Total 1,119,595,984 626,985,706
206
(2) The ageing analysis of prepayments is as follows:
31 December 2020 31 December 2019
Percentage Percentage
Ageing Amount (%) Amount (%)
Within 1 year (inclusive) 1,008,648,097 90% 459,763,565 73%
Over 1 year but within 2 years (inclusive) 18,143,348 2% 148,351,079 24%
Over 2 years but within 3 years (inclusive) 84,733,056 8% 17,719,439 3%
Over 3 years 8,071,483 - 1,151,623 -
Total 1,119,595,984 100% 626,985,706 100%
The ageing is counted starting from the date when prepayments are recognised.
The total of five largest prepayments of the Group at the end of the year is RMB 712,385,803, representing 64% of the total
prepayments.
6 Other receivables
31 December 31 December
Note 2020 2019
Interest receivable 2,037,452 215,977,831
Dividends receivable 1,842,137 -
Others (1) 654,235,244 490,193,281
Total 658,114,833 706,171,112
(1) Others
(a) The Group’s other receivable by customer type:
Customer type 31 December 2020 31 December 2019
Amounts due from related parties 14,062,445 603,515
Amounts due from other customers 649,216,811 498,225,877
Sub-total 663,279,256 498,829,392
Less: Provision for bad and doubtful debts 9,044,012 8,636,111
Total 654,235,244 490,193,281
207
(b) The Group’s other receivable by currency type:
31 December 2020 31 December 2019
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
RMB 577,989,243 457,159,067
USD 7,746,274 6.5249 50,543,663 3,966,373 6.9762 27,670,211
JPY 35,289,875 0.0632 2,230,320 42,000,525 0.0641 2,692,234
Other foreign currencies 32,516,030 11,307,880
Sub-total 663,279,256 498,829,392
Less: Provision for bad and
doubtful debts 9,044,012 8,636,111
Total 654,235,244 490,193,281
(c) The ageing analysis of the Group’s other receivables is as follows:
31 December 2020 31 December 2019
Within 1 year (inclusive) 336,023,652 209,994,098
Over 1 year but within 2 years (inclusive) 65,883,117 25,165,256
Over 2 years but within 3 years (inclusive) 18,983,553 14,546,942
Over 3 years 242,388,934 249,123,096
Sub-total 663,279,256 498,829,392
Less: Provision for bad and doubtful debts 9,044,012 8,636,111
Total 654,235,244 490,193,281
The ageing is counted starting from the date when other receivables are recognised.
(d) Other receivables by provisioning method
31 December 2020
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment 9,044,012 1% 9,044,012 100% -
Collective assessment 654,235,244 99% - 0% 654,235,244
Total 663,279,256 100% 9,044,012 1% 654,235,244
31 December 2019
Book value Provision for impairment
208
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment 8,636,111 2% 8,636,111 100% -
Collective assessment 490,193,281 98% - - 490,193,281
Total 498,829,392 100% 8,636,111 2% 490,193,281
209
(e) Movements of provisions for bad and doubtful debts
31 December 2020 31 December 2019
Balance at the beginning of the year 8,636,111 2,933,581
Charge during the year 572,266 6,251,161
Recoveries during the year (60,462) (5,440)
Written-off during the year (103,903) (543,191)
Balance at the end of the year 9,044,012 8,636,111
(f) The Group’s other receivables categorised by nature
Nature 31 December 2020 31 December 2019
VAT refunds and export tax rebate 41,149,236 10,648,330
Amount due from equity transfer 200,000,000 200,000,000
Surety and deposits 171,340,282 178,899,557
Others 250,789,738 109,281,505
Sub-total 663,279,256 498,829,392
Less: Provision for bad and doubtful debts 9,044,012 8,636,111
Total 654,235,244 490,193,281
(g) Five largest other receivables by debtor at the end of the year
The total of five largest other receivables of the Group at the end of the year was RMB 359,386,051, most of which
are amount due from equity transfer and deposits. No provision is made for bad and doubtful debts after assessment.
210
7 Inventories
(1) The Group’s inventories by category:
31 December 2020 1 January 2020/31 December 2019
Provision for
impairment of
inventories/Provision
for impairment of
costs to fulfil a Provision for
contract with a impairment of
Book value customer Carrying amount Book value inventories Carrying amount
Raw materials 8,068,822,655 933,491,391 7,135,331,264 4,663,835,151 288,351,560 4,375,483,591
Work in progress 2,811,789,420 583,885,537 2,227,903,883 1,750,768,537 372,043,796 1,378,724,741
Finished goods 10,074,715,347 1,767,518,826 8,307,196,521 7,671,273,928 1,152,223,633 6,519,050,295
Consumables 162,817,575 - 162,817,575 122,936,135 - 122,936,135
Costs to fulfil a contract with a customer 42,205,247 - 42,205,247 - - -
Total 21,160,350,244 3,284,895,754 17,875,454,490 14,208,813,751 1,812,618,989 12,396,194,762
As at 31 December 2020, there was no amount of capitalised borrowing cost in the Group’s closing balance of inventories (2019: Nil).
As at 31 December 2020, the Group had no inventory used as collateral (2019: Nil).
211
(2) An analysis of provision for impairment of inventories of the Group is as follows:
Balance at Balance at
the beginning Charge the end
of the year during the year Decrease during the year of the year
Reversals Write-off
Raw materials 288,351,560 843,256,105 (143,418,140) (54,698,134) 933,491,391
Work in progress 372,043,796 462,312,355 (204,781,587) (45,689,027) 583,885,537
Finished goods 1,152,223,633 2,521,348,291 (969,342,859) (936,710,239) 1,767,518,826
Total 1,812,618,989 3,826,916,751 (1,317,542,586) (1,037,097,400) 3,284,895,754
212
8 Contract assets
(1) The Group’s contract assets by customer type:
A contract asset is the Group’s right to consideration in exchange for goods or services that it has transferred to a customer
when that right is conditional on something other than the passage of time.
(2) Significant changes in the contract assets during the year:
Significant changes in the contract assets of the Group are as follows:
2020
RMB
Balance under previous revenue standard -
Adjustment on initial application of the new revenue standard 27,710,945
Balance at the beginning of the year after adjustment 27,710,945
Transfers from contract assets recognised receivables (24,932,485)
Increase in contract assets resulting from no unconditional right obtained 47,118,935
Balance at 31 December 2020 49,897,395
(3) Additions, recoveries or reversals of provision for contract asset during the year:
2020
Balance at the beginning of the year -
Additions during the year 207,800
Recoveries during the year -
Written-off during the year -
Balance at the end of the year 207,800
9 Assets held for sale
2020
Non-current assets held for sale
Carrying amount Fair value
Fixed assets 157,662,559 328,796,100
Intangible assets 29,230,086 55,251,000
Total of assets held for sale 186,892,645 384,047,100
213
In March 2018, K-Tronics (Suzhou) Technology Co., Ltd., a subsidiary of the Company, entered into the Recovery
Agreement of Land and Properties with Management Committee of Wujiang Economic and Technological Development
Zone to sell properties and other attachments located in Wujiang Economic and Technological Development Zone. As at 31
December 2020, the carrying amount of the assets held for sale above is RMB 186,892,645. K-Tronics (Suzhou) Technology
Co., Ltd. and the Management Committee of Wujiang Economic and Technological Development Zone agreed that the
recovery price of the subject matter is RMB 384,047,100, which is determined according to the evaluation report. The
disposal of relevant assets was completed in March 2021.
10 Other current assets
31 December 2020 1 January 2020 31 December 2019
VAT on tax credits 6,447,432,350 5,979,120,265 5,979,120,265
Input tax to be verified or deducted 1,068,285,033 1,984,055,118 1,984,055,118
Prepaid income taxes 23,710,045 45,154,225 45,154,225
Wealth management products 2,611,572 1,162,273,445 1,162,273,445
Costs receivables for recovering
products from a customer 131,986,424 79,264,710 -
Others 174,843,828 126,034,014 126,034,014
Total 7,848,869,252 9,375,901,777 9,296,637,067
11 Long-term equity investments
(1) The Group’s long-term equity investments by category:
2020 2019
Investments in associates 4,722,215,043 3,495,896,246
Sub-total 4,722,215,043 3,495,896,246
Less: Provision for impairment 1,029,044,819 777,858,312
Total 3,693,170,224 2,718,037,934
214
(2) Movements of long-term equity investments during the year are as follows:
Movements during the year
Translation
differences arising
Declared from translation of
Balance at Investment income Other distribution of cash foreign currency Balance at
the beginning recognised under comprehensive Other equity dividends financial the end
Investee of the year Increase in capital Decrease in capital equity method income movements or profits statements of the year
Beijing Nissin Electronics Precision Component
Co., Ltd. 483,248 - - (219,390) - - - - 263,858
Beijing Nittan Electronic Co., Ltd. 64,808,755 - - 8,588,066 - - (2,000,000) - 71,396,821
Erdos BOE Energy Investment Co., Ltd. 907,348,226 - - (1,185,089) - - - - 906,163,137
Beijing Infi-Hailin Venture Investment Co., Ltd. 663,215 - - 503,309 - - - - 1,166,524
Beijing Infi-Hailin Venture Investment (Limited
Partnership) 74,384,952 - (79,000,000) (210,320) 5,702,455 (877,087) - - -
TPV Display Technology (China) Limited 24,545,664 - - 282,600 - - - - 24,828,264
Beijing Xindongneng Investment Fund (Limited
Partnership) 1,944,514,849 - (427,412,416) 410,089,641 130,950,251 - - - 2,058,142,325
Beijing Xindongneng Investment Management
Co., Ltd. 7,410,061 - - 2,511,565 - - (2,000,000) - 7,921,626
Shenzhen Yunyinggu Technology Co., Ltd. 12,715,084 - - (5,368,560) 60,150 14,504,213 - - 21,910,887
Beijing Xloong Technologies Co., Ltd. 22,237,044 - - (2,470,104) - - - - 19,766,940
Beijing Innovation Industry Investment Co., Ltd. 100,363,345 100,000,000 - 3,699,909 - - - - 204,063,254
Beijing Electric Control Industry Investment Co.,
Ltd. 16,841,609 183,000,000 - 679,994 (319,767) 81,278 - - 200,283,114
Hunan BOE Yiyun Science & Technology Co.,
Ltd. - 253,630,000 - - - - - - 253,630,000
New on Technology Co., Ltd. 2,727,606 - - (366,860) - - - 39,292 2,400,038
Cnoga Medical Co., Ltd. 307,506,903 - - (15,779,857) - (6,697,004) - (18,509,718) 266,520,324
Beijing Zhonglianhe Ultra HD Collaborative
Technology Centre Co., Ltd. 2,715,260 - - (288,351) - - - - 2,426,909
Shenzhen Jiangcheng Technology Co., Ltd. 6,630,425 - - (1,278,128) - - - (340,836) 5,011,461
BOE Houji Technology (Beijing) Co., Ltd. - 1,200,000 - (282,367) - - - - 917,633
Tianjin Xianzhilian Investment Centre (Limited
Partnership) - 429,000,000 - 45,207,278 - - - - 474,207,278
BioChain (Beijing) Science & Technology, Inc. - 200,000,000 - 203,487 - - - - 200,203,487
Tianjin Xianzhilian Investment Management - 900,000 - 91,163 - - - - 991,163
215
Centre (Limited Partnership)
Sub-total 3,495,896,246 1,167,730,000 (506,412,416) 444,407,986 136,393,089 7,011,400 (4,000,000) (18,811,262) 4,722,215,043
Less: Provision for impairment 777,858,312 1,029,044,819
Total 2,718,037,934 3,693,170,224
216
As at 31 December 2020, Hefei Xin Jing Yuan Electronic Materials Co., Ltd. suffered continuous loss and the Group does not
have an obligation to assume additional losses. Therefore, the Company discontinues recognising its share of further losses
after the carrying amount of long-term equity investment is reduced to zero. As at 31 December 2020, the accumulated
unrecognised investment losses were RMB 18,207,308 (2019: RMB 17,817,673).
12 Investments in other equity instruments
Item 31 December 2020 31 December 2019
Listed equity instruments investment
- Beijing Electronic City High Tech Group Co., Ltd. 74,372,840 72,585,692
- Bank of Chongqing Co., Ltd. 102,845,668 105,407,103
- CSC Securities Co., Ltd. - 68,545,920
- New Century Medical Holding Co., Ltd. 36,995,513 53,586,259
Unlisted equity instruments investment
- Teralane Semiconductor Inc. - -
- Zhejiang BOE Display Technology Co., Ltd. 321,256 321,256
- Zhejiang Qiusheng Photoelectric Technology Co., Ltd. 248,776 248,776
- National Engineering Laboratory of Digital Television (Beijing) Co.,
Ltd. 6,250,000 6,250,000
- Danhua Capital, L. P. 32,624,500 26,160,750
- Danhua Capital II, L.P. 65,249,007 64,529,850
- Kateeva Inc. 77,939,931 83,330,709
- DEPICT INC. - -
- Meta Company - -
- MOOV INC. 26,207,585 28,020,288
- ZGLUE INC. - 10,464,288
- Nanosys INC. 48,936,750 52,321,500
- Ceribell INC. 8,482,363 9,069,052
- Baebies INC. 28,668,368 30,651,239
- Illumina Fund I, L.P. 21,320,235 17,181,203
- ACQIS Technology, Inc. 1,304,980 1,395,242
- KA IMAGING INC. 1,877,651 2,007,520
- Beijing Dongfang Electronic Industry Co., Ltd. - -
Total 533,645,423 632,076,647
Note*: In 2020, the Company disposed of its shares in CSC Securities Co., Ltd. and derecognised its investments in
Teralane Semiconductor Inc., DEPICT INC. and Meta Company, with gains and or losses accumulated in other
comprehensive income reclassified to retained earnings, totalling RMB 55,855,250. See Note V.41.
217
(1) Investments in other equity instruments:
Accumulated gains Reason for
or losses recognised Amount transferred transferring
in other from other from other
Reason for being designated at Dividend income comprehensive comprehensive comprehensive
fair value through other recognised for the income income to retained income to retained
Item comprehensive income year (“-” for losses) earnings earnings
Listed equity instruments investment
With the intention of establishing
or maintaining a long-term
- Beijing Electronic City High Tech Group Co., Ltd. investment for strategic reasons 1,842,137 (15,787,588) - Not applicable
With the intention of establishing
or maintaining a long-term
- Bank of Chongqing Co., Ltd. investment for strategic reasons 5,804,204 (17,238,707) - Not applicable
With the intention of establishing
or maintaining a long-term
- CSC Securities Co., Ltd. investment for strategic reasons - - 1,768,891 Disposals
With the intention of establishing
or maintaining a long-term
- New Century Medical Holding Co., Ltd. investment for strategic reasons - (103,853,337) - Not applicable
Unlisted equity instruments investment
With the intention of establishing
or maintaining a long-term
- Teralane Semiconductor Inc. investment for strategic reasons - - 11,868,000 Disposals
With the intention of establishing
or maintaining a long-term
- Zhejiang BOE Display Technology Co., Ltd. investment for strategic reasons - - - Not applicable
With the intention of establishing
or maintaining a long-term
- Zhejiang Qiusheng Photoelectric Technology Co., Ltd. investment for strategic reasons 1,410,307 - - Not applicable
With the intention of establishing
- National Engineering Laboratory of Digital Television or maintaining a long-term
(Beijing) Co., Ltd. investment for strategic reasons - - - Not applicable
With the intention of establishing
or maintaining a long-term
- Danhua Capital, L. P. investment for strategic reasons 2,544,309 (1,901,875) - Not applicable
With the intention of establishing
or maintaining a long-term
- Danhua Capital II, L.P. investment for strategic reasons 13,800,800 (2,398,744) - Not applicable
With the intention of establishing
or maintaining a long-term
- Kateeva Inc. investment for strategic reasons - (4,922,536) - Not applicable
With the intention of establishing
or maintaining a long-term
- DEPICT INC. investment for strategic reasons - - 13,049,800 Disposals
With the intention of establishing
or maintaining a long-term
- Meta Company investment for strategic reasons - - 29,168,559 Disposals
With the intention of establishing
or maintaining a long-term
- MOOV INC. investment for strategic reasons - (1,655,254) - Not applicable
With the intention of establishing
or maintaining a long-term
- ZGLUE INC. investment for strategic reasons - (10,405,488) - Not applicable
With the intention of establishing
or maintaining a long-term
- Nanosys INC. investment for strategic reasons - (1,412,250) - Not applicable
With the intention of establishing
or maintaining a long-term
- Ceribell INC. investment for strategic reasons - (179,920) - Not applicable
With the intention of establishing
or maintaining a long-term
- Baebies INC. investment for strategic reasons - (455,186) - Not applicable
With the intention of establishing
or maintaining a long-term
- Illumina Fund I,L.P. investment for strategic reasons 974,930 (831,445) - Not applicable
With the intention of establishing
or maintaining a long-term
- ACQIS Technology, Inc. investment for strategic reasons - (258,980) - Not applicable
With the intention of establishing
or maintaining a long-term
- KA IMAGING INC. investment for strategic reasons - (129,869) - Not applicable
With the intention of establishing
or maintaining a long-term
- Beijing Dongfang Electronic Industry Co., Ltd. investment for strategic reasons - (180,000) - Not applicable
Total 26,376,687 (161,611,179) 55,855,250
218
13 Investment properties
Land use rights Buildings Total
Cost
Balance at the beginning of the
year 687,434,677 1,015,816,127 1,703,250,804
Additions during the year - 362,715 362,715
Balance at the end of the year 687,434,677 1,016,178,842 1,703,613,519
Less: Accumulated depreciation or
amortisation
Balance at the beginning of the
year 140,772,403 321,235,551 462,007,954
Additions during the year 13,878,768 31,558,286 45,437,054
Balance at the end of the year 154,651,171 352,793,837 507,445,008
Carrying amounts
At the end of the year 532,783,506 663,385,005 1,196,168,511
At the beginning of the year 546,662,274 694,580,576 1,241,242,850
219
14 Fixed assets
(1) Analysis of the Group’s fixed assets are as follows:
Item Plant & buildings Equipment Others Total
Cost
Balance at the beginning of the year 39,066,346,904 164,514,903,439 5,055,062,392 208,636,312,735
Additions during the year
- Purchases 106,424,539 251,499,388 1,147,743,024 1,505,666,951
- Transfers from construction in
progress 11,166,278,131 70,039,183,590 714,148,657 81,919,610,378
- Additions due to business
combinations involving entities not
under common control 12,057,991,192 26,025,800,334 147,032,752 38,230,824,278
Disposals or written-offs during the year (18,533,992) (631,239,330) (123,488,328) (773,261,650)
Translation differences (480,626) (23,703,787) (1,990,617) (26,175,030)
Balance at the end of the year 62,378,026,148 260,176,443,634 6,938,507,880 329,492,977,662
Less: Accumulated depreciation
Balance at the beginning of the year 5,124,055,712 74,655,780,434 2,278,538,681 82,058,374,827
Charge during the year 1,189,328,945 19,439,177,557 1,249,871,496 21,878,377,998
Disposals or written-offs during the year (9,053,218) (468,884,836) (87,743,009) (565,681,063)
Translation differences (468,222) (2,345,666) (3,312,810) (6,126,698)
Balance at the end of the year 6,303,863,217 93,623,727,489 3,437,354,358 103,364,945,064
Less: Provision for impairment
Balance at the beginning of the year 1,073,381 784,836,694 5,785,895 791,695,970
Charge during the year - 432,986,334 72,215,116 505,201,450
Disposals or written-offs during the year - (35,236,905) (213,986) (35,450,891)
Balance at the end of the year 1,073,381 1,182,586,123 77,787,025 1,261,446,529
Carrying amounts
At the end of the year 56,073,089,550 165,370,130,022 3,423,366,497 224,866,586,069
At the beginning of the year 33,941,217,811 89,074,286,311 2,770,737,816 125,786,241,938
In 2020, some of the equipment of the Group is idle and there is no clear use plan. The Group evaluated the recoverable
amount of these equipment and made a full provision for impairment of RMB 505,201,450 based on the evaluation results.
220
(2) Fixed assets acquired under finance leases
31 December 2020 31 December 2019
Original book Accumulated Provision for Carrying Original book Accumulated Provision for Carrying
Item value depreciation impairment amount value depreciation impairment amount
Plant & buildings 11,291,665 4,864,383 - 6,427,282 11,291,665 4,610,694 - 6,680,971
Machinery & equipment 3,234,619,899 16,817,720 - 3,217,802,179 111,358,145 10,816,754 - 100,541,391
Total 3,245,911,564 21,682,103 - 3,224,229,461 122,649,810 15,427,448 - 107,222,362
The Group’s fixed assets under finance leases represented a youth apartment under finance lease for the Company, which is
used for the purposes of the staff dormitory; and machinery and equipment under finance leases.
(3) Fixed assets pending certificates of ownership
As at 31 December 2020, fixed assets pending certificates of ownership totalled RMB 20,426,632,149 (31 December 2019:
RMB 8,208,580,798) and certificates of ownership is still being processed.
15 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
2020 2019
Provision for Provision for
Item Book value impairment Carrying amount Book value impairment Carrying amount
The 6th generation AMOLED project -
Mianyang 10,195,964,634 - 10,195,964,634 34,753,609,842 - 34,753,609,842
The 6th generation LTPS/AMOLED project -
Chengdu 1,609,674,328 - 1,609,674,328 19,490,899,526 - 19,490,899,526
The 6th generation AMOLED project -
Chongqing 11,920,916,965 - 11,920,916,965 1,462,975,936 - 1,462,975,936
The 10.5th generation TFT-LCD project -
Wuhan 10,551,056,190 - 10,551,056,190 24,749,508,699 - 24,749,508,699
Others 8,298,237,835 - 8,298,237,835 6,919,788,524 - 6,919,788,524
Total 42,575,849,952 - 42,575,849,952 87,376,782,527 - 87,376,782,527
221
(2) Movements of major construction projects in progress during the year
Accumulated
Balance at the Percentage of capitalised Interest Interest rate for
beginning of the Additions during Transfers to fixed Transfer to Balance at the end actual cost to interest at the capitalised in capitalisation in Sources of
Item Budget year the year assets intangible assets of the year budget (%) end of the year 2020 2020 (%) funding
The 6th generation AMOLED Self-raised funds
project - Mianyang 46,500,000,000 34,753,609,842 5,358,315,087 (29,648,604,321) (267,355,974) 10,195,964,634 89.04% 1,198,529,778 585,397,750 3.42% and borrowings
The 6th generation
LTPS/AMOLED project - Self-raised funds
Chengdu 46,500,000,000 19,490,899,526 4,552,866,676 (22,409,432,296) (24,659,578) 1,609,674,328 91.85% - 367,526,893 1.77% and borrowings
The 6th generation AMOLED Self-raised funds
project - Chongqing 46,500,000,000 1,462,975,936 10,460,532,891 (2,591,862) - 11,920,916,965 26.05% 1,242,708 1,242,708 2.04% and borrowings
The 10.5th generation TFT-LCD Self-raised funds
project - Wuhan 46,000,000,000 24,749,508,699 9,659,161,031 (23,848,967,181) (8,646,359) 10,551,056,190 77.36% 115,596,222 317,760,483 3.81% and borrowings
222
16 Intangible assets
(1) Intangible assets
Patent and
proprietary
Land use rights technology Computer software Others Total
Original book value
Balance at the beginning of the
year 4,091,243,669 3,718,555,116 1,042,610,560 1,305,739,329 10,158,148,674
Additions during the year
- Purchases 299,431,151 248,991,522 27,684,102 2,383,123 578,489,898
- Transfers from construction in
progress 62,430,272 - 413,899,417 - 476,329,689
- Non-controlling shareholders’
contribution of capital - - - 285,773,298 285,773,298
- Additions due to business
combinations involving
entities not under common
control 804,621,761 2,978,191,033 56,802,736 - 3,839,615,530
Disposals during the year (5,002,886) (2,768,601) (2,000,735) (42,887,739) (52,659,961)
Balance at the end of the year 5,252,723,967 6,942,969,070 1,538,996,080 1,551,008,011 15,285,697,128
Less: Accumulated amortisation
Balance at the beginning of the
year 303,706,213 1,601,698,094 652,198,832 184,128,706 2,741,731,845
Charge during the year 95,749,974 350,459,099 158,475,804 86,677,458 691,362,335
Disposals during the year (1,400,083) (1,387,324) (2,000,735) (18,535,358) (23,323,500)
Balance at the end of the year 398,056,104 1,950,769,869 808,673,901 252,270,806 3,409,770,680
Carrying amounts
At the end of the year 4,854,667,863 4,992,199,201 730,322,179 1,298,737,205 11,875,926,448
At the beginning of the year 3,787,537,456 2,116,857,022 390,411,728 1,121,610,623 7,416,416,829
(2) Land use rights pending certificates of ownership
As at 31 December 2020, intangible assets pending certificates of ownership totalled RMB 4,694,121 (31 December
2019: RMB 614,842,056).
223
17 Goodwill
(1) Changes in goodwill
Balance at the Additions during the Balance at the end of
Name of investee Note beginning of the year year the year
Book value
Beijing Yinghe Century Co., Ltd. 42,940,434 - 42,940,434
K-Tronics (Suzhou) technology Co.,
Ltd. 8,562,464 - 8,562,464
Beijing BOE Optoelectronics
Technology Co., Ltd. 4,423,876 - 4,423,876
BOE Healthcare Investment &
Management Co., Ltd. 146,460,790 - 146,460,790
SES Imagotag SA Co., Ltd. 706,406,821 - 706,406,821
Chengdu CEC Panda Display
Technology Co., Ltd. (a) - 537,038,971 537,038,971
Nanjing CEC Panda FPD Technology
Co., Ltd. (b) - 155,714,415 155,714,415
Sub-total 908,794,385 692,753,386 1,601,547,771
Provision for impairment
Beijing BOE Optoelectronics
Technology Co., Ltd. (4,423,876) - (4,423,876)
SES Imagotag SA Co., Ltd. (196,766,653) - (196,766,653)
Sub-total (201,190,529) - (201,190,529)
Carrying amount 707,603,856 692,753,386 1,400,357,242
(a) As disclosed in Note VI.1, the Group obtained the control of Chengdu CEC Panda on
17 December 2020. The excess of the combination cost over the Group’s interest in
the fair value of Chengdu CEC Panda’s identifiable assets and liabilities, amounting to
RMB 537,038,971, was recognised as goodwill attributable to Chengdu CEC Panda.
(b) As disclosed in Note VI.1, the Group obtained the control of Nanjing CEC Panda on
24 December 2020. The excess of the combination cost over the Group’s interest in
the fair value of Nanjing CEC Panda’s identifiable assets and liabilities, amounting to
RMB 155,714,415, was recognised as goodwill attributable to Nanjing CEC Panda.
(2) Provision for impairment of goodwill
The recoverable amount of Beijing Yinghe Century Co., Ltd. (“Yinghe Century”), Suzhou K-Tronics, BOE Healthcare
Investment & Management Co., Ltd. (“Health Investment”) and SES Imagotag SA Co., Ltd., Nanjing CEC Panda and
Chengdu CEC Panda is determined based on the present value of expected future cash flows. When predicting the
present value of cash flow, the cash flow in the next 5 years is determined based on the financial budget approved by the
management. The cash flow in the years after the 5-year financial budget will remain stable. The pre-tax discount rate is
determined with reference to comparable companies and related capital structures.
224
18 Long-term deferred expenses
Balance at the
beginning of the Additions during the Decrease during the Balance at the end
year year year of the year
Payment for public facilities construction and use 82,702,566 - (15,370,224) 67,332,342
Cost of operating lease assets improvement 28,066,255 5,227,728 (19,121,157) 14,172,826
Others 234,655,588 84,706,547 (101,233,203) 218,128,932
Total 345,424,409 89,934,275 (135,724,584) 299,634,100
19 Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets and liabilities
2020 2019
Deductible/ Deductible/
(taxable) temporary Deferred tax (taxable) temporary Deferred tax
Item differences assets/(liabilities) differences assets/(liabilities)
Deferred tax assets:
Provision for impairment of assets 122,139,756 27,180,254 131,848,265 29,587,380
Changes in fair value of investments in other
equity instruments 121,789,193 18,268,379 135,444,338 20,316,651
Depreciation of fixed assets 179,801,722 30,341,276 147,798,525 25,764,520
Assessed value added by investing real estate in
subsidiaries 131,003,100 32,750,775 136,556,956 34,139,239
Accumulated losses 424,212,759 132,565,377 361,764,556 111,182,956
Others 64,633,800 14,628,946 214,882,405 40,237,079
Sub-total 1,043,580,330 255,735,007 1,128,295,045 261,227,825
Amount offset (50,693,919) (13,074,064)
Balance after offsetting 205,041,088 248,153,761
Deferred tax liabilities:
Revaluation due to business combinations
involving entities not under common control (2,395,173,489) (713,559,149) (2,594,143,798) (772,597,483)
Depreciation of fixed assets (4,622,699,062) (721,371,438) (4,178,779,443) (643,417,497)
Long-term equity investments (120,141,687) (18,021,253) (120,141,687) (18,021,253)
Others (142,029,410) (25,343,233) (161,910,113) (30,863,188)
Sub-total (7,280,043,648) (1,478,295,073) (7,054,975,041) (1,464,899,421)
Amount offset 50,693,919 13,074,064
Balance after offsetting (1,427,601,154) (1,451,825,357)
225
(2) Details of unrecognised deferred tax assets
2020 2019
Deductible temporary differences 16,442,282,572 9,708,406,691
Deductible tax losses 25,680,094,343 15,354,248,296
Total 42,122,376,915 25,062,654,987
As at 31 December 2020, the deductible temporary differences are mainly provisions for the subsidiaries’ impairment of
assets. Due to the uncertainty that there will be sufficient taxable income to cover these deductible differences in future
periods, the deferred income tax assets were not recognised in consideration of prudence. The change of unrecognised
deferred tax assets for the year was mainly due to consideration of RMB 8,253,348,675 generated by the acquisition of
Nanjing CEC Panda and Chengdu CEC Panda.
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
Year Note 2020 2019
2020 - 58,901,625
2021 78,927,101 80,449,618
2022 416,996,721 435,146,446
2023 518,668,889 605,118,016
2024 1,129,623,213 1,028,882,595
2025 2,987,078,958 494,894,618
2026 848,779,232 227,711,720
2027 128,972,134 133,673,301
2028 5,149,658,963 4,215,818,107
2029 10,575,127,795 7,359,029,807
2030 2,846,283,820 -
Others (a) 999,977,517 714,622,443
Total 25,680,094,343 15,354,248,296
(a) According to the applicable local tax laws, loss of some overseas subsidiaries of the
Group has indefinite carry-over period to deduct the future taxable income.
226
20 Other non-current assets
1 January 2020/31
Note 31 December 2020 December 2019
VAT on tax credits 3,720,414,204 2,482,410,097
Deferred VAT for imported equipment 2,444,720,228 5,027,130,119
Prepayment for fixed assets 1,476,495,591 1,159,943,991
Gains from transfer of exploration right (a) 512,802,600 512,802,600
Prepayments for construction 130,568,100 43,162,425
Others 339,969,296 266,132,327
Total 8,624,970,019 9,491,581,559
(a) On 31 December 2020, gains from transfer of exploration right are amount for the transfer of exploration paid by
the Group through Erdos BOE Energy Investment Co., Ltd. to Ministry of Natural Resources of Inner Mongolia.
21 Short-term loans
31 December 2020
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
currency Exchange rate equivalents pledged
Bank loans
- RMB 600,623,333 Collateralised
- RMB 1,853,305,416 Guaranteed
- RMB 2,872,713,095 Credited
Sub-total 5,326,641,844
Foreign currency bank loans
- USD 346,986,252 6.5249 2,264,050,596 Guaranteed
- USD 132,229,237 6.5249 862,782,549 Credited
- JPY 2,310,305,559 0.0632 146,094,482 Credited
Sub-total 3,272,927,627
Total 8,599,569,471
227
2019
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
currency Exchange rate equivalents pledged
Bank loans
- RMB 1,706,000,000 Pledged
- RMB 3,570,500,000 Credited
Sub-total 5,276,500,000
Foreign currency bank loans
- USD 75,000,000 6.9762 523,215,000 Pledged
- USD 74,983,524 6.9762 523,100,057 Credited
- JPY 685,049,220 0.0641 43,902,064 Credited
Sub-total 1,090,217,121
Total 6,366,717,121
The interest rate of short-term loans for the Group ranged from 0.50% to 5.90% in 2020 (2019: 0.40% to 4.35%).
As at 31 December 2020, no short-term loan was past due (2019: Nil).
22 Bills payable
31 December 2020 31 December 2019
Bank acceptance bills 1,130,824,139 1,812,309,507
Commercial acceptance bills 100,709,756 216,608,473
Total 1,231,533,895 2,028,917,980
There is no due but unpaid bill payable at the end of the year. The bills above are all due within one year.
228
23 Accounts payable
(1) The Group’s accounts payable by category are as follows:
31 December 2020 31 December 2019
Payables to related parties 108,759,439 77,847,042
Payables to third parties 27,055,412,243 21,105,720,511
Total 27,164,171,682 21,183,567,553
(2) The Group’s accounts payable by currency are as follows:
2020 2019
Amount in original RMB/RMB Amount in original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
- RMB 18,877,719,728 - 14,353,247,507
- USD 1,065,301,852 6.5249 6,950,988,054 869,901,566 6.9762 6,068,607,305
- JPY 7,851,845,994 0.0632 496,236,667 10,667,212,793 0.0641 683,768,340
- Other foreign currencies 839,227,233 - 77,944,401
Total 27,164,171,682 21,183,567,553
As at 31 December 2020, the Group had no individually significant accounts payable ageing more than one year.
24 Advance payments received
Item 31 December 2020 1 January 2020 31 December 2019
Advances from related parties 6,018,519 60,990 60,990
Advances from third parties 1180,022,230 123,091,845 1,260,671,795
Total 124,040,749 123,152,835 1,260,732,785
229
25 Contract liabilities
Item 31 December 2020 1 January 2020 31 December 2019
Sale of goods 3,440,720,535 1,083,074,827 -
Contract liabilities primarily relate to the Group’s advances from goods purchase and sale contracts. The Group receives
a certain proportion of advances as agreed in contract when entering into the contract with customers. The revenue
related to the contracts will be recognised until the Group satisfies its performance obligation.
Significant changes in the contract liabilities of the Group are as follows:
2020
RMB
Balance under previous revenue standard -
Adjustment on initial application of the new revenue standard 1,083,074,827
Balance at the beginning of the year after adjustment 1,083,074,827
Revenue recognised that was included in the contract liability balance at the beginning of year (985,358,861)
Increase of contract liabilities due to cash received at the end of the year 3,343,004,569
Balance at 31 December 2020 3,440,720,535
26 Employee benefits payable
(1) Employee benefits payable:
Balance at 1 Accrued during the Decreased during Balance at 31
Note January 2020 year the year December 2020
Short-term employee benefits (2) 2,317,952,892 14,505,206,045 (13,089,586,475) 3,733,572,462
Post-employment benefits
- defined contribution plans (3) 30,809,715 603,373,645 (612,555,327) 21,628,033
Termination benefits 24,982,847 6,049,760 (27,609,305) 3,423,302
Total 2,373,745,454 15,114,629,450 (13,729,751,107) 3,758,623,797
230
Balance at 1 Accrued during the Decreased during Balance at 31
Note January 2019 year the year December 2019
Short-term employee benefits (2) 2,175,807,665 11,808,187,563 (11,666,042,336) 2,317,952,892
Post-employment benefits
- defined contribution plans (3) 34,353,845 892,704,459 (896,248,589) 30,809,715
Termination benefits 14,769,661 21,224,469 (11,011,283) 24,982,847
Total 2,224,931,171 12,722,116,491 (12,573,302,208) 2,373,745,454
(2) Short-term employee benefits
Balance at 1 Accrued during the Decreased during Balance at 31
January 2020 year the year December 2020
Salaries, bonuses, allowances 1,884,102,804 12,377,361,943 (11,076,670,492) 3,184,794,255
Staff welfare - 813,811,158 (813,811,158) -
Social insurance 32,323,849 428,892,729 (428,549,166) 32,667,412
Medical insurance 28,537,074 397,973,661 (396,959,327) 29,551,408
Work-related injury insurance 1,592,189 17,318,426 (17,296,483) 1,614,132
Maternity insurance 2,194,586 13,600,642 (14,293,356) 1,501,872
Housing fund 27,503,744 572,216,189 (572,578,874) 27,141,059
Labour union fee, staff and workers’ education fee 345,146,487 294,743,728 (172,165,296) 467,724,919
Staff bonus and welfare fund 7,282,591 13,270,618 - 20,553,209
Other short-term employee benefits 21,593,417 4,909,680 (25,811,489) 691,608
Total 2,317,952,892 14,505,206,045 (13,089,586,475) 3,733,572,462
Balance at 1 Accrued during the Decreased during Balance at 31
January 2019 year the year December 2019
Salaries, bonuses, allowances 1,817,946,511 9,760,123,875 (9,693,967,582) 1,884,102,804
Staff welfare - 726,894,238 (726,894,238) -
Social insurance 31,310,324 506,406,607 (505,393,082) 32,323,849
Medical insurance 27,150,184 458,152,049 (456,765,159) 28,537,074
Work-related injury insurance 2,048,914 24,547,049 (25,003,774) 1,592,189
Maternity insurance 2,111,226 23,707,509 (23,624,149) 2,194,586
Housing fund 22,081,660 534,751,562 (529,329,478) 27,503,744
Labour union fee, staff and workers’ education fee 274,477,650 258,158,151 (187,489,314) 345,146,487
Staff bonus and welfare fund 7,282,591 - - 7,282,591
Other short-term employee benefits 22,708,929 21,853,130 (22,968,642) 21,593,417
Total 2,175,807,665 11,808,187,563 (11,666,042,336) 2,317,952,892
231
(3) Post-employment benefits - defined contribution plans
Balance at 1 Accrued during the Decreased during Balance at 31
January 2020 year the year December 2020
Basic pension insurance 26,271,958 547,052,137 (554,271,266) 19,052,829
Unemployment insurance 1,072,077 23,115,986 (23,077,129) 1,110,934
Annuity 3,465,680 33,205,522 (35,206,932) 1,464,270
Total 30,809,715 603,373,645 (612,555,327) 21,628,033
Balance at 1 Accrued during the Decreased during Balance at 31
January 2019 year the year December 2019
Basic pension insurance 29,206,273 835,731,675 (838,665,990) 26,271,958
Unemployment insurance 964,893 30,896,288 (30,789,104) 1,072,077
Annuity 4,182,679 26,076,496 (26,793,495) 3,465,680
Total 34,353,845 892,704,459 (896,248,589) 30,809,715
27 Taxes payable
2020 2019
Value-added tax 40,678,414 104,968,721
Corporate income tax 442,103,385 225,781,442
Individual income tax 60,823,097 46,299,098
City construction tax 239,633,339 159,162,466
Education surcharges and local education surcharges 171,225,887 114,515,524
Others 123,222,747 80,268,878
Total 1,077,686,869 730,996,129
232
28 Other payables
Note 31 December 2020 31 December 2019
Interest payable 1,946,267 721,325,540
Dividends payable 6,451,171 14,568,242
Others (1) 32,859,311,586 23,834,695,828
Total 32,867,709,024 24,570,589,610
(1) Others
(a) The Group’s other payables by category are as follows:
Note 31 December 2020 31 December 2019
Projects and equipment 22,081,009,426 19,265,984,958
Fund transaction (Note) 3,044,729,475 25,236,605
Equity acquisition VI. 1 2,236,488,561 338,596
Deferred VAT for imported equipment 1,920,558,529 2,277,269,457
Repurchase obligation of restricted shares V. 40 875,333,536 -
Accrued water and electricity charges and freight 711,995,694 475,398,269
Security deposits 576,740,323 565,971,653
External agency fee 95,378,987 95,525,591
Others 1,317,077,055 1,128,970,699
Total 32,859,311,586 23,834,695,828
The Group’s significant other payables aged over one year are payables of projects and equipment.
Note: The other payables by the Group to CEC Panda as at 31 December 2020 are amounts and interests due to
original controlling shareholders of Nanjing CEC Panda and Chengdu CEC Panda acquired this year, with
interest rates of 2.175% and 0%.
233
(c) The Group’s other payables by currency are as follows:
31 December 2020 31 December 2019
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
RMB 25,021,226,671 14,900,017,469
USD 834,593,184 6.5249 5,445,637,067 939,445,424 6.9762 6,553,759,167
JPY 36,887,427,437 0.0632 2,331,285,414 36,516,333,058 0.0641 2,340,696,949
Other foreign currencies 61,162,434 40,222,243
Total 32,859,311,586 23,834,695,828
29 Non-current liabilities due within one year
As at 31 December, the non-current liabilities due within one year for the Group were long-term loans and long-term
payables due within one year.
31 December 2020
Credited
RMB/ /collateralised
Amount in original
Note currency Exchange rate RMB equivalents guaranteed/pledged
Bank loans
- RMB 28,108,784 Pledged
- RMB 5,654,665,718 Collateralised
- RMB 1,562,733 Guaranteed
- RMB 8,650,207,807 Credited
- USD 1,397,735,847 6.5249 9,120,086,628 Collateralised
- EUR 415,746 8.0250 3,336,362 Credited
- EUR 7,920,370 8.0250 63,560,969 Pledged
Sub-total V. 31 23,521,529,001
Long-term payables V. 33 979,021,120
Total 24,500,550,121
234
31 December 2019
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 3,548,760,000 Collateralised
- RMB 5,660,431,884 Credited
- RMB 27,187,500 Pledged
- USD 1,192,400,000 6.9762 8,318,420,880 Collateralised
- EUR 144,950,000 7.8155 1,132,856,725 Pledged
- EUR 415,746 7.8155 3,249,263 Credited
Sub-total V. 31 18,690,906,252
Long-term payables V. 33 158,374,767
Total 18,849,281,019
The interest rate of RMB long-term loans due within one year for the Group ranged from 0% to 5.88% in 2020 (2019:
from 0% to 5.64%).
30 Other current liabilities
Item 31 December 2020 1 January 2020 31 December 2019
Warranty provisions 1,615,534,790 940,668,393 940,668,393
Refund liability 144,834,876 79,264,710 -
Pending output VAT 278,791,002 64,391,101 9,885,978
Others 155,556,184 63,184,144 63,184,144
Total 2,194,716,852 1,147,508,348 1,013,738,515
The other current liabilities of the Group were warranty provision accrued. The warranty provision mainly relates to the
expected after-sales repair warranty to the customers. The provision is estimated by the management, based on historical
claim experience and current actual sales outcomes.
235
31 Long-term loans
31 December 2020
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 564,470,036 Pledged
- RMB 58,205,922,053 Collateralised
- RMB 3,245,238,880 Guaranteed
- RMB 48,593,938,457 Credited
- USD 6,647,918,240 6.5249 43,377,001,724 Collateralised
- EUR 67,323,142 8.0250 540,268,215 Pledged
- EUR 180,368,445 8.0250 1,447,456,771 Credited
Less: Long-term loans due within one
year V. 29 23,521,529,001
Total 132,452,767,135
31 December 2019
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 590,727,344 Pledged
- RMB 45,290,913,200 Collateralised
- RMB 760,000,000 Guaranteed
- RMB 38,988,142,361 Credited
- USD 5,603,270,000 6.9762 39,089,532,174 Collateralised
- EUR 3,721,275 7.8155 29,083,625 Credited
- EUR 214,075,000 7.8155 1,673,103,163 Pledged
Less: Long-term loans due within one
year V. 29 18,690,906,252
Total 107,730,595,615
The interest rate of RMB long-term loans for the Group ranged from 0% to 5.90% in 2020 (2019: from 0% to
5.64%).The increase in the upper limit of the interest rate of RMB long-term loans in 2020 is mainly due to the higher
interest rate of Nanjing CEC Panda, which is newly included in the scope of consolidated financial statements.
32 Debentures payable
(1) Debentures payable
Item 31 December 2020 31 December 2019
Debentures payable 398,971,739 387,878,384
Less: Debentures payable due within one year - -
Total 398,971,739 387,878,384
236
(2) The movements of debentures payable:
Balance at the Amortisation of Repayment
Maturity Issuance beginning of Increase Interest at face discounts or during the Translation Balance at the
Debenture Face value Issuance date period amount the year during the year value premium period differences end of the year
EUR EUR
Euro PP 10,000,000 2016.12.29 7 years 10,000,000 77,674,350 - 2,764,825 108,611 (2,764,825) 2,083,842 79,866,803
EUR EUR
Euro PP 30,000,000 2017.03.29 6 years 30,000,000 233,145,481 - 8,294,475 401,058 (8,294,475) 6,256,001 239,802,540
EUR EUR
Euro PP 10,000,000 2019.07.22 6 years 10,000,000 77,058,553 - 3,594,273 175,447 (3,594,273) 2,068,396 79,302,396
Total 387,878,384 - 14,653,573 685,116 (14,653,573) 10,408,239 398,971,739
SES Imagotag SA Co., Ltd. issued two private placement bonds with a total face value of Euro 40 million to institutional investors on 29 December 2016 and 29 March 2017. The coupon rate of
the bonds is 3.50% and the maturity date is 29 December 2023. Interest payments are made annually and the principle amount will be paid when the bonds become due.
SES Imagotag SA Co., Ltd. issued a private placement bond with a total face value of Euro 10 million to institutional investors on 22 July 2019. The coupon rate of the bond is 4.55% and the
maturity date is 22 July 2025. Interest payments are made annually, and the principle amount will be paid when the bond becomes due.
237
33 Long-term payables
Item Note 31 December 2020 31 December 2019
Obligations under finance leases (1) 3,093,196,803 1,142,895,591
Less: Obligations under finance leases due within one
year 979,021,120 158,374,767
Total 2,114,175,683 984,520,824
(1) Details of obligations under finance leases included in long-term payables
As at 31 December, the total future minimum lease payments under finance leases were as follows:
Minimum lease payments 31 December 2020 31 December 2019
Within 1 year (inclusive) 1,175,045,108 240,790,871
After 1 year but within 2 years (inclusive) 1,061,063,290 211,473,668
After 2 years but within 3 years (inclusive) 559,312,651 198,335,280
After 3 years 840,557,857 866,709,073
Sub-total 3,635,978,906 1,517,308,892
Less: Unrecognised finance charges 542,782,103 374,413,301
Total 3,093,196,803 1,142,895,591
The Group leased back some of its sold machinery, equipment and constructions in progress. The sales of the assets are
related to the leases, and the Group basically can ensure to buy back the asset after lease term. Therefore, the Group adopts
the accounting treatment of collateral loans.
238
34 Provisions
Name of investee 31 December 2020 31 December 2019
Pending implementation of the agreement - 16,457,010
In 2009, the Group ceased producing several products and stopped fulfilling the purchase contract related to production. Due
to the indemnity incurred accordingly, the Group accrued provisions according to reasonable estimation of loss.
35 Deferred income
Balance at the
beginning of the Additions during the Amounts recognised Balance at the end
Item year year in other income Other changes of the year
Related to assets 1,959,522,274 1,420,632,945 (310,532,631) (222,882,969) 2,846,739,619
Related to income 244,878,292 1,628,055,408 (471,110,335) (2,331,516) 1,399,491,849
Total 2,204,400,566 3,048,688,353 (781,642,966) (225,214,485) 4,246,231,468
36 Other non-current liabilities
Item Note 31 December 2020 31 December 2019
Contribution of non-controlling interests with redemption
provisions (1) 3,710,474,960 3,699,127,228
Deferred VAT for imported equipment 1,472,958,998 4,409,269,015
Others 76,567,485 92,146,169
Total 5,260,001,443 8,200,542,412
(1) Contribution of non-controlling interests with redemption provisions
The contribution of non-controlling interests with redemption provisions is mainly due to the redemption obligation of the
Company to the non-controlling interests of Fuzhou BOE and BOE Smart Retail (Hong Kong) Co., Ltd. The Company
recognises the above non-controlling interests contribution as a financial liability which is subsequently measured at the cost
of amortisation. The carrying amount as at 31 December 2020 is RMB 3,710,474,960.
239
37 Share capital
Balance at the beginning Balance at the end of the
of the year year
Total shares 34,798,398,763 34,798,398,763
38 Other equity instruments
(1) Financial instruments (including perpetual bonds) that remain outstanding at the end of the year are set out as follows:
Maturity
date or Conditions
Issuance Accounting Issuance renewal for Conversion
Outstanding financial instruments date classification Interest rate price Quantity Amount status conversion status
29 October Equity RMB RMB 8 Not Not
19BOEY1 2019 instrument 4.0% 100/bond 80 million billion 3+N years Applicable Applicable
28 February Equity RMB RMB 2 Not Not
20BOEY1 2020 instrument 3.6% 100/bond 20 million billion 3+N years Applicable Applicable
19 March Equity RMB RMB 2 Not Not
20BOEY2 2020 instrument 3.5% 100/bond 20 million billion 3+N years Applicable Applicable
27 April Equity RMB RMB 2 Not Not
20BOEY3 2020 instrument 3.5% 100/bond 20 million billion 3+N years Applicable Applicable
RMB 14
Total 140 million billion
(2) Major terms
On 29 October 2019, with the approval document No. 1801 [2019] of the China Securities Regulatory Commission
(“CSRC”), the Company successfully issued a renewable corporate bond to qualified investors. The full name of the bond
was Renewable Corporate Bond Publicly Issued by BOE Technology Group Co., Ltd. (to qualified investors) in 2019 (the
First Phase), which referred to as 19BOEY1 (“2019 bond”); on 28 February 2020, 19 March 2020 and 27 April 2020, the
Company issued renewable corporate bonds to qualified investors. The full name of these bonds was Renewable Corporate
Bond Publicly Issued by BOE Technology Group Co., Ltd. (to qualified investors) in 2020, which referred to as 20BOEY1、
20BOEY2、20BOEY3 respectively (“2020 bond”).
Both 2019 bond and 2020 bond have a base term of 3 years and take every three interest-bearing years as a period. The
Company is entitled to choose to extend the maturity by 1 period at the end of the agreed base term or at the end of each
extended period, or choose to fully redeem the 2019 bond and 2020 bond at the end of the period. The nominal interest rate of
the 2019 bond and 2020 bond is fixed during the first period, and then is reset once every period. The nominal interest rate in
the first period is the initial benchmark interest rate plus the initial spread, and the nominal interest rate in the subsequent
period is adjusted to the current benchmark interest rate plus the initial spread and 300 basis points. Therefore, when the
Company exercises the renewal option, the nominal interest rate will significantly increase, and the corresponding nominal
interest will also increase sharply. The 2019 bond and 2020 bond have an issuer’s right to defer the payment of interest.
Unless a mandatory interest payment event occurs (including distributions to ordinary shareholders and decrease of registered
capital). At each interest payment date of the bonds, the Company may choose at its discretion whether to defer the payment
of the current interest as well as all the deferred interests and the yields under this term until the next interest payment date
without being subjected to any limit on the number of interest deferring attempts.
240
The actual issuance of the 2019 bond and 2020 bond amounted to RMB 14,000,000,000 in total, and the Company considers
that the renewable corporate bonds do not meet the definition of financial liabilities, and therefore will charge the total
amount of the issue to other equity instruments after deducting underwriting fees and other transaction costs.
(3) Movement of the financial instruments (including and perpetual bonds) that remain outstanding at the end of the year:
At the beginning of the year Additions during the year Accumulated interest At the end of the year
Carrying Carrying Charge for the Paid during the
Outstanding financial instruments Quantity amount Quantity amount year year Quantity Carrying amount
19BOEY1 80,000,000 8,013,156,853 - - 320,876,712 (320,000,000) 80,000,000 8,014,033,565
20BOEY1 - - 20,000,000 1,989,179,245 61,431,233 - 20,000,000 2,050,610,478
20BOEY2 - - 20,000,000 1,989,320,755 55,864,110 - 20,000,000 2,045,184,865
20BOEY3 - - 20,000,000 1,989,415,094 47,753,425 - 20,000,000 2,037,168,519
Total 80,000,000 8,013,156,853 60,000,000 5,967,915,094 485,925,480 (320,000,000) 140,000,000 14,146,997,427
(4) Relevant information of amounts attributable to holders of equity instruments
31 December 2020 31 December 2019
Attributable to shareholders of the Company 103,276,766,835 95,058,129,055
- Equity attributable to ordinary shareholders
of the Company 89,129,769,408 87,044,972,202
- Equity attributable to holders of the Company’s other equity
instruments 14,146,997,427 8,013,156,853
Equity attributable to non-controlling shareholders 70,120,967,879 45,999,567,919
- Equity attributable to non-controlling ordinary shareholders 70,120,967,879 45,999,567,919
- Equity attributable to non-controlling shareholders of other
equity instruments - -
(5) Accrued interest on holders of other equity instruments
In 2020, as the above-mentioned issued renewable corporate bonds are cumulative other equity instruments, the Company
accrued interest of RMB 485,925,480 on renewable corporate bonds from undistributed profits and paid interest of RMB
320,000,000 on renewable corporate bonds.
241
39 Capital reserve
Other capital
Item Note Share premiums reserves Total
Balance at the beginning of the year 37,546,517,053 806,725,311 38,353,242,364
Add: Change in shareholding ratio of
subsidiaries - 76,020,559 76,020,559
Equity-settled share-based
payments XI - (946,466,251) (946,466,251)
Other movements in equity of
associates V. 11 - 7,011,400 7,011,400
Less: Disposal of subsidiaries to
equity method accounting - 46,470,087 46,470,087
Others - 7,682,051 7,682,051
Balance at the end of the year 37,546,517,053 (110,861,119) 37,435,655,934
40 Treasury shares
At the beginning of Additions during the Reductions during At the end of the
Item the year year the year year
Treasury shares - 1,998,774,694 (962,476,186) 1,036,298,508
Total - 1,998,774,694 (962,476,186) 1,036,298,508
According to the Proposal of Repurchase of Certain Public Shares by the Company deliberated and adopted in the fifteenth
meeting of the ninth session of the Board of Directors meeting held on 27 August 2020, the Company completed repurchase
of shares through centralised price bidding before 3 September 2020. The Company repurchased 349,999,933 A shares in
total by paying total consideration of RMB 1,998,774,694.
The repurchased shares are placed with the designated securities account for the use of Company’s repurchase, during which
the Company is not entitled to have voting rights at the shareholders’ general meeting, or rights of profit appropriations,
increasing share capital by transfer of reserves, allotment of share and pledge etc. The repurchased shares will be used for
implementing incentive plan. For shares failed to be used in this way within 36 months after being repurchased, the shares
will be cancelled by performing related procedures.
As disclosed in Note XI, there is a vesting period for the restricted share incentive plans granted by the Group in 2020. If the
incentive object resigns during the vesting period, the Company will repurchase the unlocked restricted shares at the exercise
price. Therefore, the Company recognized a total of RMB 875,333,536 in restricted share subscription funds from restricted
share incentive objects as other payables—the Repurchased obligation of restricted shares (Note V. 28 (1)) and Treasury
Shares. The difference of RMB 962,476,186 between the amount paid by the Company to repurchase the above-mentioned
Treasury Shares from the public market and the repurchase obligation is transferred to the Capital reserve-Other capital
reserve.
242
41 Other comprehensive income
Movements during the year
Balance at the end of
previous year Net-of-tax amount Net-of-tax amount Less: Transfer of Balance at the end of
attributable to attributable to attributable to other comprehensive the year attributable
shareholders of the Less: Income tax shareholders of the non-controlling income to retained to shareholders of
Item Company Before-tax amount expenses Company interests earnings the Company
Items that will not be reclassified to profit or loss 140,076,335 118,453,992 2,048,272 116,405,720 - (195,070,158) 61,411,897
Including: Other comprehensive income recognised
under equity method 308,546,648 136,381,254 - 136,381,254 - (250,925,408) 194,002,494
Changes in fair value of investments in other equity
instruments (168,470,313) (17,927,262) 2,048,272 (19,975,534) - 55,855,250 (132,590,597)
Items that may be reclassified to profit or loss (144,642,974) 49,539,936 - 61,033,005 (11,493,069) - (83,609,969)
Including: Other comprehensive income recognised
under equity method - 11,835 - 11,835 - - 11,835
Translation differences arising from translation of
foreign currency financial statements (144,642,974) 49,528,101 - 61,021,170 (11,493,069) - (83,621,804)
Total (4,566,639) 167,993,928 2,048,272 177,438,725 (11,493,069) (195,070,158) (22,198,072)
243
42 Surplus reserve
Balance at the
Balance at the Add: Changes in beginning of the
beginning of the accounting year after Additions during Other changes Balance at the end
Item year policies adjustment the year during the year of the year
Statutory surplus reserve 1,226,468,400 533,906,114 1,760,374,514 373,919,158 20,451,688 2,154,745,360
Discretionary surplus reserve 289,671,309 289,671,309 - - 289,671,309
Total 1,516,139,709 533,906,114 2,050,045,823 373,919,158 20,451,688 2,444,416,669
43 Retained earnings
Item Note 2020 2019
Retained earnings at the beginning of the year (before
adjustment) 12,381,758,005 N/A
Add: Changes in accounting policies (533,906,114) N/A
Retained earnings at the beginning of the year (after
adjustment) 11,847,851,891 11,977,119,533
Add: Net profits for the year attributable to shareholders
of the Company 5,035,627,952 1,918,643,871
Less: Appropriation for statutory surplus reserve 373,919,158 368,556,446
Interest on holders of other equity instruments V. 38 485,925,480 56,109,589
Dividends to ordinary shares 695,967,975 1,043,951,963
Transfer of other comprehensive income to
retained earnings (a) (171,164,417) 45,387,401
Effect of accounting for disposal of subsidiaries to
equity method (3,454,053) -
Others (7,508,922) -
Retained earnings at the end of the year 15,509,794,622 12,381,758,005
According to the Annual Shareholders’ Meeting for 2019 held on 29 May 2020, the Company distributed cash dividends to
all shareholders on 3 July 2020, with RMB 0.2 every 10 shares (2019: RMB 0.3) and a total dividend of RMB 695,967,975
(2019: RMB 1,043,951,963) distributed.
As at 31 December 2020, the consolidated retained earnings attributable to the Company included appropriation to surplus
reserves made by the Company’s subsidiaries amounting to RMB 2,958,648,210 (2019: RMB 2,197,635,471).
(a) The amounts transferred from other comprehensive income to retained earnings in
2020 includes RMB 225,832,867 of associates’ gains from disposal of other equity
instrument investments included in retained earnings and RMB 54,668,450 of the Group
losses from disposals of other equity instrument investments included in retained
earnings.
244
44 Operating income and operating costs
2020 2019
Item Income Cost Income Cost
Principal activities 131,839,051,171 107,017,283,266 112,869,129,027 96,547,463,221
Other operating activities 3,713,518,558 1,805,839,490 3,190,461,137 1,898,806,075
Total 135,552,569,729 108,823,122,756 116,059,590,164 98,446,269,296
Including: Income related to the new revenue
standard 134,406,942,755 108,402,500,151 Not applicable Not applicable
Revenue related to the lease standard 1,145,626,974 420,622,605 Not applicable Not applicable
Details of operating income:
2019
Operating income from principal activities
- Sale of goods 112,869,129,027
Other operating income
- Sales of raw materials 1,049,219,352
- Rental income of investment properties 1,164,355,875
- Others 976,885,910
Total 116,059,590,164
Information on income of principal activities has been included in Note XIV.
45 Taxes and surcharges
2020 2019
Property tax 401,351,553 352,251,436
City maintenance and construction tax 266,845,054 190,993,833
Education surcharges and local education surcharges 192,450,398 136,854,543
Stamp duty 136,589,158 108,178,185
Land use tax 45,748,963 43,676,217
Others 35,914,959 29,146,391
Total 1,078,900,085 861,100,605
245
46 Selling and distribution expenses
2020 2019
Warranty provisions 1,616,634,833 927,748,774
Staff costs 965,992,069 698,586,373
Logistics 73,934,798 589,504,713
Others 481,157,301 702,025,520
Total 3,137,719,001 2,917,865,380
47 General and administrative expenses
2020 2019
Staff cost 2,869,736,815 2,456,007,113
Repair expense 1,658,988,344 1,221,489,432
Depreciation and amortisation 726,690,746 586,695,417
Others 948,184,616 950,756,065
Total 6,203,600,521 5,214,948,027
48 Research and development expenses
2020 2019
Staff cost 3,621,724,397 2,764,095,983
Material expenses 1,395,642,077 1,517,000,923
Depreciation and amortisation 1,501,402,837 1,234,104,120
Others 1,103,828,614 1,184,772,214
Total 7,622,597,925 6,699,973,240
49 Financial expenses
2020 2019
Interest expenses from loans 4,807,347,590 3,651,979,758
Less: Borrowing costs capitalised 1,309,649,881 1,126,843,549
Interest income from bank deposits (873,376,712) (840,190,118)
Net exchange (gains)/losses (73,110,352) 226,570,667
Other financial expenses 98,943,327 82,633,500
Total 2,650,153,972 1,994,150,258
The capitalization rate used by the Group to determine the capitalization amount of borrowing costs was1.77% - 3.81%
(2019: 3.73% - 4.84%) for the year.
246
50 Other income
2020 2019
Government grants related to assets 310,532,631 316,744,767
Government grants related to income 2,016,628,502 2,287,022,704
Others 10,544,684 1,891,240
Total 2,337,705,817 2,605,658,711
The amount of government subsidies received by the Group in 2020 and directly included in other income was RMB
1,545,518,167.
51 Investment income
Note 2020 2019
Income from long-term equity investments accounted for
using the equity method V. 11 444,407,986 200,020,686
Investment income from disposal of long-term equity
investments 280,374,469 48,846,682
Dividend income from investments in other equity
instruments V. 12 26,376,687 9,984,205
Including: Dividend income from investments in other
equity instruments derecognised during
the year - 471,354
Dividend income from investments in other equity
instruments held at the balance sheet date 26,376,687 9,512,851
Investment income from disposal of financial assets held
for trading 18,157,931 46,195,167
Interest income from debt investments 22,213,061 19,869,375
Investment income from disposal of debt investments 10,391,153 17,704,576
Gain from remeasurement of remaining equity interests to
fair value upon the loss of control VI. 2 95,969,822 -
Total 897,891,109 342,620,691
247
52 Gains from changes in fair value
Item 2020 2019
Financial assets held for trading 31,936,339 66,473,077
Gains from changes in fair value of derivative financial liabilities - 71,000,000
Total 31,936,339 137,473,077
53 Credit losses
Item 2020 2019
Accounts receivable (2,339,323) 22,016,906
Other receivables 511,804 6,245,721
Total (1,827,519) 28,262,627
54 Impairment losses
2020 2019
Impairment losses of inventories 2,509,374,165 1,986,350,231
Impairment losses of fixed assets 505,201,450 160,345,034
Impairment losses of long-term equity investments 265,641,984 240,721,340
Impairment losses of goodwill - 196,766,653
Impairment losses of contract assets 207,800 -
Total 3,280,425,399 2,584,183,258
55 Gains from asset disposals
Amount recognised
in extraordinary gain
Item 2020 2019 and loss in 2020
Gains from disposal of fixed assets 11,403,591 79,029 11,403,591
Gains from disposal of intangible assets 7,658,255 - 7,658,255
Total 19,061,846 79,029 19,061,846
248
56 Non-operating income and non-operating expenses
(1) Non-operating income by item is as follows:
Amount recognised
in extraordinary gain
Item 2020 2019 and loss in 2020
Government grants 4,946,559 36,867,390 4,946,559
Others 115,557,069 171,562,808 115,557,069
Total 120,503,628 208,430,198 120,503,628
Government grants recognised in profit or loss for the current period
Item 2020 2019
Policy incentives and others 4,946,559 36,867,390
(2) Non-operating expenses
Amount recognised
in extraordinary gain
2020 2019 and loss in 2020
Donations provided 13,324,588 9,985,603 13,324,588
Losses from scrapping of non-current assets 22,698,482 31,048,028 22,698,482
Others 36,116,596 62,315,447 36,116,596
Total 72,139,666 103,349,078 72,139,666
249
57 Income tax expenses
Note 2020 2019
Current tax expense for the period based on tax law and
regulations 1,547,783,003 956,184,825
Changes in deferred tax assets/liabilities (1) 16,783,243 23,806,679
Total 1,564,566,246 979,991,504
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
2020 2019
Origination and reversal of temporary differences 16,783,243 23,806,679
(2) Reconciliation between income tax expenses and accounting profit:
2020 2019
Profit before taxation 6,092,836,662 503,750,101
Expected income tax expense at tax rate of 15% 913,925,499 75,562,515
Add: Effect of different tax rates applied by subsidiaries (26,770,857) 7,640,088
Effect of non-deductible costs, expense and losses 89,724,266 58,923,605
Effect of weighted pre-tax deduction and tax preference (643,677,261) (590,392,743)
Utilisation of prior year tax losses (95,546,933) (20,942,179)
Effect of deductible losses of deferred tax assets not
recognised 515,687,922 1,358,934,997
Effect of deductible temporary differences of deferred tax
assets not recognised 811,223,610 106,073,260
Effect of tax rates changes on deferred tax - (15,808,039)
Income tax expenses 1,564,566,246 979,991,504
250
According to Notice on Increasing the Pre-tax Deduction Ratio of Research and Development Expenses (Caishui [2018] No.
99) issued by the Ministry of Finance, the State Administration of Taxation and the Ministry of Science and Technology
Finance and Taxation, in order to further encourage enterprises to increase investment in research and development, support
scientific and technological innovation, the research and development expenses incurred from the research and development
activities carried out by enterprises, which do not form intangible assets and are included in the current profits and losses, can
be deducted in accordance with provisions, with 75% of the actual amount is deducted before tax additionally during the
period from 1 January 2018 to 31 December 2020.
58 Basic earnings per share and diluted earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable to ordinary shareholders of the Company
by the weighted average number of ordinary shares outstanding. The Group does not have any potential dilutive ordinary
shares for the listed years.
2020 2019
Net profit attributable to the Company’s shareholders 5,035,627,952 1,918,643,871
Less: Current interest of other equity instruments 485,925,480 56,109,589
Consolidated net profit attributable to ordinary shareholders of the
Company 4,549,702,472 1,862,534,282
Weighted average number of ordinary shares outstanding (share) 34,684,107,122 34,798,398,763
Basic earnings per share (RMB/share) 0.13 0.05
Weighted average number of ordinary shares is calculated as follows:
2020 2019
Issued ordinary shares at the beginning of the year 34,798,398,763 34,798,398,763
Less: Weighted average number of ordinary shares for the period 114,291,641 -
Weighted average number of ordinary shares at the end of the year 34,684,107,122 34,798,398,763
251
59 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
2020 2019
(a) Reconciliation of net profit to cash flows from operating
activities:
Net profits/(losses) 4,528,270,416 (476,241,403)
Add: Credit losses (1,827,519) 28,262,627
Impairment losses 3,280,425,399 2,584,183,258
Depreciation of fixed assets and investment
properties 21,680,555,167 18,357,209,097
Amortisation of intangible assets 758,817,609 505,881,147
Amortisation of long-term deferred expenses 123,440,347 123,883,157
Gains from disposal of fixed assets, intangible
assets, and other long-term assets (19,786,363) (79,029)
Losses from scrapping of fixed assets and intangible
assets 22,698,482 28,585,575
Financial expenses 3,835,299,300 2,849,179,043
Gains from changes in fair value (31,936,339) (137,473,077)
Investment income (897,891,109) (342,620,691)
Share-based payments 15,779,427 -
Change in deferred income 2,101,629,423 276,854,045
Change in deferred tax assets 43,112,673 (9,992,167)
Change in deferred tax liabilities (26,272,475) 33,798,846
Increase in inventories (6,687,901,867) (2,397,146,821)
Decrease in operating payables 2,870,511,767 1,113,154,602
Increase in operating payables 7,656,849,120 3,545,640,985
Net cash flows from operating activities 39,251,773,458 26,083,079,194
(b) Net changes in cash and cash equivalents:
2020 2019
Cash and cash equivalents at the end of the year 68,064,736,371 50,270,321,573
Less: Cash and cash equivalents at the beginning of the
year 50,270,321,573 43,350,696,520
Net increase in cash and cash equivalents 17,794,414,798 6,919,625,053
252
(2) Information on acquisition of subsidiaries during the year
Information on acquisition of subsidiaries:
2020 2019
Cash and cash equivalents paid during the year for acquiring
subsidiaries during the year 6,374,732,839 -
Less: Cash and cash equivalents held by subsidiaries 5,433,764,430 33,640,033
Net cash paid for acquisition of subsidiaries 940,968,409 (33,640,033)
(3) Details of cash and cash equivalents
2020 2019
Cash on hand 401,041 538,338
Bank deposits available on demand 68,063,719,329 50,269,207,607
Other monetary funds available on demand 616,001 575,628
Closing balance of cash and cash equivalents 68,064,736,371 50,270,321,573
Note: The cash and cash equivalents disclosed above do not include the interest accrued on bank deposits at the end of the
period and the use of other currency funds subject to restrictions.
253
60 Assets with restrictive ownership title or right of use
Balance at the
beginning of the Additions during the Decreases during Balance at the end Reason for
Item year year the year of the year restriction
Pledged as collateral
Cash at bank and on hand 6,702,401,666 5,550,402,351 (6,764,704,383) 5,488,099,634 and margin deposit
Discounted with
recourse, endorsed
with resource and
pledged for drawing
Bills receivable 57,102,517 95,039,227 (91,927,587) 60,214,157 bills payable
Pledged for drawing
Financial assets held for trading 24,000,000 65,254,917 (89,254,917) - bills payable
Factored and
discounted with
Accounts receivable - 44,682,510 - 44,682,510 recourse
Mortgaged as
Investment properties 43,396,671 21,673,570 (22,111,153) 42,959,088 collateral
Mortgaged as
collateral, leaseback
Fixed assets 93,007,772,827 93,804,470,252 (17,839,310,716) 168,972,932,363 assets
Mortgaged as
Construction in progress 57,083,458,981 24,302,781,621 (60,249,078,522) 21,137,162,080 collateral
Mortgaged as
Intangible assets 1,534,385,843 278,789,101 (44,134,527) 1,769,040,417 collateral
Total 158,452,518,505 124,163,093,549 (85,100,521,805) 197,515,090,249
61 Details of provision for impairment of assets
Reductions during the year
Balance at the
beginning of the Additions during Translation Balance at the end
Item Note year the year Reversal Transferred out differences of the year
RMB RMB RMB RMB RMB RMB
Provision for impairment V.4, 6 356,641,409 13,620,301 (15,447,820) (285,263,362) (2,643,494) 66,907,034
Provision for impairment of inventories V. 7 1,812,618,989 3,826,916,751 (1,317,542,586) (1,031,978,594) (5,118,806) 3,284,895,754
Provision for impairment of long-term
equity investments V. 11 777,858,312 265,641,984 - - (14,455,477) 1,029,044,819
Provision for impairment of fixed assets V. 14 791,695,970 505,201,450 - (35,450,891) - 1,261,446,529
Provision for impairment of goodwill V. 17 201,190,529 - - - - 201,190,529
Provision for impairment of contract
assets V. 8 - 207,800 - - - 207,800
Total 3,940,005,209 4,611,588,286 (1,332,990,406) (1,352,692,847) (22,217,777) 5,843,692,465
For reasons of recognition of impairment losses, refer to the notes of relevant assets.
254
VI. Change of consolidation scope
1 Business combinations involving entities not under common control
(1) Business combinations involving entities not under common control occurred during the year
(a) Acquisition of Chengdu CEC Panda
In 2020, the Company increased investment in Chengdu CEC Panda by RMB
7,550,000,000 with one-time subscription and instalment payment. After the completion
of capital increase, the Company held 35.0348% of equity interest in Chengdu CEC
Panda. On 17 December 2020, the Company entered into Agreement of Acting in
Concert with shareholders of Chengdu CEC Panda and obtained control of Chengdu
CEC Panda. See Note VII.1. On 23 December 2020, Chengdu CEC Panda completed
industrial and commercial modification registration procedures. As at 31 December 2020,
the Company has paid a capital increase of RMB 3,020,000,000, with RMB
4,530,000,000 outstanding.
Chengdu CEC Panda is a company established in Chengdu on 7 December 2015 and is
mainly engaged in research and development, production and sales of TFT-LCD panels
and modules, liquid crystal display monitors, televisions, instruments, machinery
equipment and accessories as well as provision of technical services. Before the
acquisition, Chengdu CEC Panda was jointly established by Nanjing Huadong Electronic
Information & Technology CO., Ltd., Chengdu Xihanggang Industrial Development
Investment Co., Ltd., Chengdu Advanced Manufacturing Industry Investment Co., Ltd.,
Chengdu Shuangliu Xingrong Optoelectronic Display Industry Equity Investment Centre
(Limited Partnership), Sichuan Province Integrated Circuit And Information Security
Industry Investment Fund Co., Ltd. and Nanjing CEC Panda Information Industry Group
Co., Ltd.
(b) Acquisition of Nanjing CEC Panda
In 2020, the Company acquired 80.831% of equity interest in Nanjing CEC Panda with
the consideration of RMB 5,591,221,400. As at 15 December 2020, the Company has
paid 60% of equity acquisition fee (i.e. RMB 3,354,732,839). On 24 December 2020,
Nanjing CEC Panda completed industrial and commercial modification registration
procedures. So far, the Company has completed the acquisition of certain equity in
Nanjing CEC Panda. As at 31 December 2020, the outstanding equity acquisition fee
amounted to RMB 2,236,488,561.
Nanjing CEC Panda is a company established in Nanjing 21 November 2012 and is
mainly engaged in research and development, production and sales of TFT-LCD panels
and colour filter, LCD whole-widget module and accessory products. Before the
acquisition, the parent company of Nanjing CEC Panda is Nanjing Huadong Electronic
Information & Technology CO., Ltd. and the ultimate holding company is China
Electronics Corporation.
255
(2) Acquisition cost and goodwill
Chengdu CEC Panda Nanjing CEC Panda
Acquisition cost Carrying amount Fair value Carrying amount Fair value
Cash 3,020,000,000 3,020,000,000 3,354,732,839 3,354,732,839
Other payables 2,236,488,561 2,236,488,561
Equity interests held before acquisition date - - - -
Total acquisition cost 3,020,000,000 5,591,221,400
Less: Share of the fair value of the identifiable
net assets acquired 2,482,961,029 5,435,506,985
Amount of acquisition cost more than share of the
fair value of the identifiable net assets acquired 537,038,971 155,714,415
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
Chengdu CEC Panda Nanjing CEC Panda
Carrying amount Fair value Carrying amount Fair value
Assets
Current assets 5,780,578,892 5,792,754,330 3,057,319,669 3,058,434,669
Non-current assets 25,888,187,662 26,763,545,261 15,092,623,128 16,246,434,439
Liabilities
Current liabilities 6,841,880,080 6,841,880,080 8,661,587,395 8,691,981,056
Non-current liabilities 10,227,290,745 10,227,290,745 3,888,355,404 3,888,355,404
Net assets 14,599,595,729 15,487,128,766 5,599,999,998 6,724,532,648
Less: Non-controlling interests 12,264,740,503 13,004,167,737 1,073,464,000 1,289,025,663
Net assets acquired 2,334,855,226 2,482,961,029 4,526,535,998 5,435,506,985
The Company assessed the fair value of the identifiable assets and liabilities of Chengdu CEC Panda and Nanjing CEC Panda
at the acquisition date. If there is an active market for the above identifiable assets, the quoted prices in the active market are
used to establish their fair value; if there is no active market, their fair values are estimated based on the market prices of the
same or similar types of assets which have an active market; if there is no active market for the same asset or similar types of
assets, valuation techniques are used to determine the fair value. For the above identifiable liabilities, the payable amount or
the present value of the payable amount is its fair value.
256
2 Disposal of subsidiaries
(1) Disposal of investments in subsidiaries through a single transaction resulting in loss of control
Investment income
Difference between or loss transferred
consideration from other
received and the Proportion of Carrying amount Fair value of Gain or loss from comprehensive
Shareholdin related share of net remaining of remaining remaining equity remeasurement of Method and key income related to
g being Basis for assets in shareholding equity interests on interests on the remaining equity assumptions for determining previous equity
disposed Disposal Date of losing determining date of consolidated on the date of the date of losing date of losing interests to fair the fair value of remaining investments in
Entity name disposal price (%) method control losing control financial statements losing control control control value equity interests subsidiaries
Completion of
industrial and
commercial
Beijing Asahi Electronic Materials 22 December modification
Co., Ltd. 425,000,000 100% Listing transfer 2020 registration 251,411,452 - - - - - -
Diluted by
other
shareholders’ Change of articles of
Hunan BOE Yiyun Science & capital 29 December association of the Subscription price of the
Technology Co., Ltd. - 5.44% contribution 2020 Company (17,507,070) 48.99% 157,660,178 253,630,000 95,969,822 latest capital increase 46,470,087
The Group has a gain of RMB 251,411,452 on the loss of its control over Beijing Asahi Electronic Materials Co., Ltd., which has been included in
investment income of consolidated financial statements.
The Group lost its control over Hunan BOE Yiyun Science & Technology Co., Ltd. (formerly Beijing BOE Yiyun Technology Co., Ltd.) for the
capital increase of other shareholders. The Company accounted for its investment in Hunan BOE Yiyun Science & Technology Co., Ltd. (formerly
Beijing BOE Yiyun Technology Co., Ltd.) in the company financial statements by using equity method instead of cost method (see Note XV.5). In
the consolidated financial statements, the long-term equity investments is re-measured at its fair value at the date when control is lost (see Note
V.51).
3 Other reasons for change of consolidation scope
The Company has set up five new subsidiaries this year, which are BOE Education Technology Co., Ltd., Dongfang Chengqi (Beijing) Business
Technology Co., Ltd., BOE Innovation Investment Co., Ltd., BOE Smart Technology Co., Ltd., and Hefei BOE Xingyu Technology Co., Ltd.
257
VII. Interests in other entities
1 Interests in subsidiaries
(1) Composition of the Group
Shareholding (or similar equity interest) percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Beijing BOE Optoelectronics Research and development (“R&D”), design and
Technology Co., Ltd. Beijing, China Beijing, China manufacturing of TFT-LCD USD 649,110,000 82.49% 17.51% Founded by investment
Business combinations
Chengdu BOE Optoelectronics R&D, design, manufacturing, and sale of new involving entities not
Technology Co., Ltd. Chengdu, China Chengdu, China display devices and components RMB 25,000,000,000 100.00% - under common control
Investment, construction, R&D, production and Business combinations
Hefei BOE Optoelectronics sales of the relevant products of thin film involving entities not
Technology Co., Ltd. Hefei, China Hefei, China transistor LCD and its auxiliary products. RMB 9,000,000,000 100.00% - under common control
Beijing BOE Display Technology Development of TFT-LCD, manufacturing and
Co., Ltd. Beijing, China Beijing, China sale of LCD RMB 17,882,913,500 97.17% 2.83% Founded by investment
Investment, construction, R&D, production and Business combinations
Hefei Xinsheng Optoelectronics sales of the relevant products of thin film involving entities not
Technology Co., Ltd. Hefei, China Hefei, China transistor LCD and its auxiliary products. RMB 19,500,000,000 99.97% 0.03% under common control
Ordos Yuansheng Optoelectronics Manufacture and sales of AM-OLED products
Co., Ltd. Ordos, China Ordos, China and auxiliary products. RMB 11,804,000,000 100.00% - Founded by investment
R&D, production and sales of semi-conducting
display devices, complete machine and related Business combinations
Chongqing BOE Optoelectronics products; import & export of goods and involving entities not
Technology Co., Ltd. Chongqing, China Chongqing, China technology consulting. RMB 19,226,000,000 100.00% - under common control
Investment, construction, R&D, production and Business combinations
Fuzhou BOE Optoelectronics sales of the relevant products of thin film involving entities not
Technology Co., Ltd. Fuzhou, China Fuzhou, China transistor LCD and its auxiliary products. RMB 17,600,000,000 81.25% - under common control
Manufacture of LCD TV, LCD; technology
Beijing BOE Video Technology development of terminal products and systems
Co., Ltd. (“BOE Video”) Beijing, China Beijing, China such as TFT-LCD display and TV RMB 4,093,500,000 100.00% - Founded by investment
Beijing BOE Vacuum Electronics Manufacture and sale of vacuum electronic
Co., Ltd. Beijing, China Beijing, China products RMB 35,000,000 55.00% - Founded by investment
Beijing BOE Vacuum Technology
Co., Ltd. Beijing, China Beijing, China Manufacture and sale of electronic tubes. RMB 32,000,000 100.00% - Founded by investment
258
Shareholding (or similar equity interest)
percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Development of
display products and
sale of electronic Founded by
Beijing BOE Special Display Technology Co., Ltd. Beijing, China Beijing, China products. RMB 100,000,000 100% - investment
Management of
engineering projects;
real estate
development; public
parking lot for motor
vehicles service; Founded by
Beijing Yinghe Century Co., Ltd. Beijing, China Beijing, China office lease. RMB 233,105,200 100% - investment
R&D, production
and sales of LCD,
back light for display
and related Founded by
BOE Optical Science and technology Co., Ltd. Suzhou, China Suzhou, China components. RMB 826,714,059 95.17% - investment
Development,
manufacture and sale
BOE Hyundai LCD (Beijing) Display Technology of liquid display for Founded by
Co., Ltd. Beijing, China Beijing, China mobile termination. USD 5,000,000 75% - investment
Manufacture and sale
of mobile flat screen
display technical
products and related Founded by
BOE (Hebei) Mobile Technology Co., Ltd. Langfang, China Langfang, China services. RMB 1,358,160,140 100% - investment
Business
Sales of TV bracket combinations
glass rod and CTV involving entities not
low-melting-point under common
Beijing Asahi Electronic Materials Co., Ltd.* Beijing, China Beijing, China solder glass. RMB 61,576,840 100% - control
Sales of computer
software and
hardware, digital Founded by
Beijing BOE Multimedia Technology Co., Ltd. Beijing, China Beijing, China video-audio products RMB 400,000,000 100% - investment
259
Shareholding (or similar equity interest)
percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Design, consultancy
and service of solar
cell, photovoltaic
system, wind power
system and solar
thermal system as
well as the assembly
units; energy-saving Founded by
Beijing BOE Energy Technology Beijing, China Beijing, China service. RMB 850,000,000 100% - investment
Technology
promotion services,
property
Beijing BOE Life Technology Co., Ltd. (Formerly management, sales of Founded by
Beijing Zhongpingxun Technology Co., Ltd.) Beijing, China Beijing, China electronic products RMB 24,000,000 100% - investment
Technology
promotion services,
property
management, sales of Founded by
Beijing Zhongxiangying Technologies Co., Ltd. Beijing, China Beijing, China electronic products RMB 100,000,000 100% - investment
Founded by
Ordos City Haosheng Energy Investment Co., Ltd. Ordos, China Ordos, China Energy investment RMB 30,000,000 - 100% investment
Processing,
manufacturing and
sales of precision
electronic
components,
semi-conductor
devices, micro
modules,
microelectronic
devices and
electronic materials;
import & export of Founded by
BOE Semi-conductor Co., Ltd. Beijing, China Beijing, China goods RMB 11,250,000 84% - investment
Design,
manufacturing and
sales of
electronic-informatio
n industry related Founded by
BOE Optoelectronics Holding Co., Ltd Hong Kong British Virgin Islands products, investment USD 1,000,000,000 100% - investment
260
and financing
businesses
Shareholding (or similar equity interest)
percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Business
combinations
Investment involving entities not
BOE Healthcare Investment & Management Co., management and under common
Ltd. Beijing, China Beijing, China project investment RMB 7,300,000,000 100% - control
Colour TV set, display tube, colour RPTV
BeijingMatsushita Colour CRT projection tube and materials of electronic Business combinations
Co., Ltd. (“Matsushita Colour components; property management and parking involving entities not
CRT”) Beijing, China Beijing, China services, etc. RMB 325,754,049 88.80% - under common control
Business combinations
Hefei BOE Display Technology Investment, R & D and production of products involving entities not
Co., Ltd. Hefei, China Hefei, China related to TFT-LCD and the supporting facility RMB 24,000,000,000 8.33% - under common control
Beijing BOE Technology Development, transfer, consulting and service of
Development Co., Ltd. Beijing, China Beijing, China technology RMB 1,000,000 100% - Founded by investment
BOE Wisdom IOT Technology
Co., Ltd. (“Wisdom IOT Development, transfer, consulting, service and
Technology”) Beijing, China Beijing, China promotion of technology RMB 142,000,000 100% - Founded by investment
Investment, construction, R&D, production and
Hefei BOE Zhuoyin Technology sales of products related to OLED display device
Co., Ltd. Hefei, China Hefei, China and auxiliary products RMB 800,000,000 75% - Founded by investment
Development, construction, property management
and supporting service of industrial plants and
supporting facilities; information consulting of real
estate; lease of commercial facilities, commercial
attendants and the supporting service facilities;
Beijing BOE Real Estate Co., Ltd. Beijing, China Beijing, China motor vehicles public parking service RMB 55,420,000 70% - Founded by investment
Sales of communication equipment, hardware &
software of computer and peripheral units,
electronic products, equipment maintenance;
development, transfer, consulting and service
providing of technologies; import & export of
goods and technologies, agency of import &
export; manufacturing consignment of electronic
Beijing BOE Marketing Co., Ltd. Beijing, China Beijing, China products and LCD devices RMB 50,000,000 100% - Founded by investment
Development, promotion, transfer, consultation and
services of display technology; computer software,
hardware and network system services; the
construction, operations and management of
e-commerce platform; product design; conference
Yunnan Chuangshijie services; undertaking exhibitions and presentation
Optoelectronic Technology Co., activities; computer animation design; production,
Ltd. (Formerly Kunming BOE R&D and sales of OLED microdisplays and
Display Technology Co., Ltd.) Yunnan, China Yunnan, China AR/VR whole widget; warehousing services; RMB 3,040,000,000 79.96% - Founded by investment
261
Shareholding (or similar equity interest) percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
R&D, production and sales of flexible AMOLED,
the products are mainly Business combinations
Mianyang BOE Optoelectronics used in smart phones, wearable devices, car involving entities not
Technology Co., Ltd. Mianyang, China Mianyang, China display, AR/VR, etc. RMB 24,000,000,000 66.67% - under common control
Formation of X-ray sensors, microfluidic
chips, biochemical chips, gene chips, security
sensors, microwave antennas, biosensors,
logistics network technology and other
semiconductor sensors, technology testing,
Beijing BOE Sensing technical consulting, technical services, Founded by
Technology Co., Ltd. Beijing, China Beijing, China technology transfer RMB 50,000,000 100% - investment
Technology development, technology
Hunan BOE Yiyun Science & transfer, technical consulting, technical Business
Technology Co., Ltd. services; technology intermediary services; combinations
(Formerly Beijing BOE information system integration; basic involving entities not
Yiyun Science & software services; application software under common
Technology Co., Ltd.) Changsha, China Changsha, China services; software development RMB 400,000,000 48.99% - control
Business
combinations
Wuhan BOE Optoelectronics Investing, researching, manufacturing involving entities not
Technology Co., Ltd. and selling TFT-LCD products and accessory RMB under common
(Wuhan BOE) Wuhan, China Wuhan, China products 26,000,000,000 23.08% - control
Business
R&D, manufacture and sales of combinations
Chongqing BOE Display semiconductor display devices, whole widget involving entities not
Technology Co., Ltd. and relevant products, import and export of under common
(Chongqing BOE Display) Chongqing, China Chongqing, China goods and technical consulting RMB 6,010,000,000 38.46% - control
R&D, production and sales of semiconductor
display device-related products and related
products; import or export of goods or
technology; display device and component, Business
other electronic components, and technology combinations
Fuzhou BOE Display development, technology transfer, technical involving entities not
Technology Co., Ltd. consulting, related fields related to display under common
(“Fuzhou BOE Display”) Fuzhou, China Fuzhou, China devices and electronic products, technical RMB 50,000,000 43.46% - control
262
services; business management consulting;
property management; house rental;
machinery and equipment rental
Shareholding (or similar equity interest)
percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Support colour electronic paper, segment
LCD, TFT-LCD display, covering ESL
multi-frequency protocol, Wi-Fi, BLE and
NFC; multiple communication methods,
integrated electronic paper supply chain
resources and downstream software around Business
electronic shelf labels platform, image combinations
recognition and big data analytics resources involving entities not
to create a complete solution for the retail under common
SES Imagotag SA Co., Ltd. Nanterre, France Nanterre, France industry EUR 31,516,216 - 68.48% control
Investment, R&D, manufacturing and sales of
direct display, sensors related to the display,
back light source for LCD and supporting
components; enterprise management
consulting and service; house rental;
Hefei BOE Xingyu equipment rental; technology development, Founded by
Technology Co., Ltd. Hefei, China Hefei, China transfer and consulting services. USD 115,380,000 43.40% - investment
Technology development, software
development, sales of stationery, sports goods
and household appliances; enterprise
management, economic and trade consulting,
education consulting, public relations
services; natural science, engineering
technology, agricultural science research and
BOE Education Technology experimental development; copyright agency Founded by
Co., Ltd. Beijing, China Beijing, China and process beauty creation services. RMB 55,000,000 100% - investment
Technology development; sales of primary
edible agricultural products; translation
services, conference services; business
management, real estate information
consulting; ticketing agents, tourism
Dongfang Chengqi (Beijing) consulting, warehousing services, public
Business Technology Co., relations services, car rental; import and Founded by
Ltd. Beijing, China Beijing, China export of goods, technology import and RMB 10,000,000 100% - investment
263
export; beauty services, medical services;
inbound tourism business; Internet
information services.
BOE Innovation Investment Project investment and investment Founded by
Co., Ltd. Beijing, China Beijing, China management RMB 800,000,000 100% - investment
Shareholding (or similar equity interest)
percentage
Principal place of
Name of the Subsidiary business Registered place Business nature Registered capital Direct Indirect Acquisition method
Information system integration services;
technology development, technology transfer;
software development; Internet data services;
real estate brokerage business; motor vehicle
public parking services; conference services;
project management; property management;
lease of office space and commercial space;
labour subcontracting; import and export of
BOE Smart Technology Co., goods, technology import and export; human Founded by
Ltd. Beijing, China Beijing, China resource services. RMB 800,000,000 100% - investment
R&D, production and sale of TFT-LCD
panels, colour filters and LCD whole-widget
modules; providing products and Business
business-related services, as well as other combinations
business activities related to the above; involving entities not
Nanjing CEC Panda FPD import and export of proprietary and agent RMB under common
Technology Co., Ltd. Nanjing, China Nanjing, China commodities and technologies. 17,500,000,000 80.831% - control
R&D, production and sales of TFT-LCD
panels and modules, liquid crystal display
monitors, televisions, instruments, machinery Business
equipment and accessories as well as combinations
provision of technical services; foreign trade involving entities not
Chengdu CEC Panda Display in form of import and export of goods and RMB under common
Technology Co., Ltd. Sichuan, China Sichuan, China technology. 21,550,000,000 35.0348% - control
*Beijing Asahi Electronic Materials Co., Ltd. and Hunan BOE Yiyun Science & Technology Co., Ltd. are disposed of on 22 December 2020 and 29 December 2020 respectively. See Note VI.2.
The Company signed an agreement of acting in concert with Hefei Core Screen Industrial Investment Fund (Limited Partnership) on 30 November 2016. Hefei Core Screen Industrial Investment
Fund (Limited Partnership) agreed to act as a person acting in concert according to the wishes of the Company, and exercised the voting rights unconditionally and irrevocably in accordance
with the opinions of the Company. Therefore, the Company’s voting right ratio to Hefei Display Technology is 71.67%.
264
265
The Company signed an agreement of acting in concert with the shareholder of Wuhan BOE, Wuhan Airport Economic Development Zone Industrial Development Investment Group Co., Ltd.
on 25 December 2018. Wuhan Airport Economic Development Zone Industrial Development Investment Group Co., Ltd. agreed to follow the Company’s will to act as a person acting in concert,
unconditionally and irrevocably exercising voting rights in accordance with the opinions of the Company, the voting rights of the Company to Wuhan BOE is 69.23%.
The Company signed an agreement of acting in concert with shareholders of Chongqing BOE Display, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited
Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. on 25 December 2018. Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited
Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. agreed to act as persons acting in concert according to the will of the Company, and exercise the voting rights
unconditionally and irrevocably in accordance with the opinions of the Company. Therefore, the proportion of voting rights of the Company to Chongqing BOE is 100%.
The Company signed an agreement of acting in concert with shareholders of Fuzhou BOE Display, Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou Urban
Construction Investment Group Co., Ltd. on 21 January 2019. Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou Urban Construction Investment Group Co., Ltd. agreed
to act as persons acting in concert according to the will of the Company, and exercise the voting rights unconditionally and irrevocably in accordance with the opinions of the Company.
Therefore, the proportion of voting rights of the Company to Fuzhou BOE Display is 100%.
The Company signed an agreement of acting in concert with shareholders of Chengdu CEC Panda, Chengdu Advanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport
Xingcheng Investment Group Co., Ltd., and Chengdu Airport Xingcheng Construction Management Co., Ltd. on 17 December 2020. Chengdu Advanced Manufacturing Industry Investment
Co., Ltd., Chengdu Airport Xingcheng Investment Group Co., Ltd., and Chengdu Airport Xingcheng Construction Management Co., Ltd. agreed to act as persons acting in concert according to
the will of the Company, and exercise the voting rights unconditionally and irrevocably in accordance with the opinions of the Company. Therefore, the proportion of voting rights of the
Company to Chengdu CEC Panda is 100%.
266
(2) Material non-wholly owned subsidiaries
Proportion of Profit/(loss)
ownership interest allocated to Dividend declared Balance of
held by non-controlling to non-controlling non-controlling
non-controlling interests during the shareholders during interests at the end
Name of the Subsidiary interests year the year of the year
Hefei Display Technology 91.67% 3,600,766 - 19,364,095,828
Mianyang BOE 33.33% (270,861,155) - 7,588,781,957
Wuhan BOE 76.92% (115,879,453) - 19,861,266,116
Chongqing BOE Display 61.54% (88,748,272) - 6,245,130,676
(3) Key financial information about material non-wholly owned subsidiaries
The following table sets out the key financial information of the above subsidiaries without offsetting internal transactions, but with adjustments made for the fair value adjustment at the
acquisition date and any differences in accounting policies:
Hefei Display Technology Mianyang BOE Wuhan BOE Chongqing BOE Display
2020 2019 2020 2019 2020 2019 2020 2019
Current assets 13,917,088,962 11,633,732,300 5,001,552,767 3,644,261,703 11,748,881,218 3,684,026,094 4,511,835,708 5,182,267,756
Non-current assets 28,144,487,136 33,264,338,502 45,771,813,314 39,751,190,014 34,698,575,568 27,439,008,544 13,507,596,306 1,634,796,122
Total assets 42,061,576,098 44,898,070,802 50,773,366,081 43,395,451,717 46,447,456,786 31,123,034,638 18,019,432,014 6,817,063,878
Current liabilities 8,775,178,650 9,069,027,029 8,221,423,949 4,971,407,195 5,369,267,140 5,661,729,075 6,962,326,548 716,978,520
Non-current liabilities 12,162,697,407 14,787,288,631 19,783,319,398 17,405,543,775 15,257,510,868 7,429,662,481 909,021,819 97,980,000
Total liabilities 20,937,876,057 23,856,315,660 28,004,743,347 22,376,950,970 20,626,778,008 13,091,391,556 7,871,348,367 814,958,520
Operating income 15,153,402,394 11,455,196,518 1,406,636,788 110,313,244 1,775,338,449 130,054,586 355,365 169,027
Net profit/(loss) 3,927,966 (2,448,838,884) (830,258,844) (252,575,687) (158,596,684) (13,172,938) (144,212,337) (1,354,276)
Total comprehensive income 3,927,966 (2,448,838,884) (830,258,844) (252,575,687) (158,596,684) (13,172,938) (144,212,337) (1,925,302)
Cash inflow/(outflow) in operating activities 3,819,978,355 912,437,769 (1,016,864,877) 184,012,366 2,934,840,804 890,669,009 43,940,351 118,933,310
267
268
2 Transactions that cause changes in the Group’s interests in subsidiaries that do not result in loss of control
(1) Changes in the Group’s interests in subsidiaries:
Before changes of After changes of
interests interests
Yunnan Chuangshijie Optoelectronic Technology Co., Ltd. 69.43% 79.96%
Mianyang BOE Optoelectronics Technology Co., Ltd. 68.72% 66.67%
(2) Impact from transactions with non-controlling interests and equity attributable to the shareholders of the Company:
The changes in the shareholding of the Company in the owners of above-mentioned other subsidiaries were caused by the
capital increase of the Company and its non-controlling interests, which results in the increase of capital reserves by RMB
76,020,559. See Note V.39.
3 Interests in associates
Please see Note V.11(2) for details of the summarised financial information of the associates.
No material restrictions on transfers of funds from investees to the Group. The judgement basis of the Company and its
subsidiaries to hold lower than 20% of the voting rights of other entities but have significant influence on the entity is due to
the fact that the Company and its subsidiaries have seats in the board of directors of the entity, and the Company and
subsidiaries of the Company may have significant influence on the entity through the representation of the directors in the
process of formulating financial and operating policies.
269
VIII. Risk related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in the normal course of the Group’s
operations:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign currency risk
- Other price risks
The following mainly presents information about the Group’s exposure to each of the above risks and their sources, their
changes during the year, and the Group’s objectives, policies and processes for measuring and managing risks, and their
changes during the year.
The Group aims to seek appropriate balance between the risks and benefits from its use of financial instruments and to
mitigate the adverse effects that the risks of financial instruments have on the Group’s financial performance. Based on such
objectives, the Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Group’s activities. The internal audit department of the
Group undertakes both regular and ad-hoc reviews of risk management controls and procedures.
(1) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to
discharge an obligation. The Group’s credit risk is primarily attributable to receivables. Exposure to these credit risks are
monitored by management on an ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions. Management does not foresee any
significant credit risks from these deposits and does not expect that these financial institutions may default and cause losses
to the Group.
In respect of receivables, the Group has established a credit policy under which individual credit evaluations are performed
on all customers to determine the credit limit and terms applicable to the customers. These evaluations focus on the
customers’ financial position, the external ratings of the customers and the record of previous transactions. Receivables are
due within 15 to 120 days from the date of billing. Debtors with balances that are past due are requested to settle all
outstanding balances before any further credit is granted. Normally, the Group does not obtain collateral from customers.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer rather than the
industry or country/region in which the customers operate. Therefore, significant concentrations of credit risk primarily arise
when the Group has significant exposure of the total accounts receivable and contract assets to individual customers. At the
balance sheet date, the Group and the Company’s accounts receivable due from the top five customers account for 33% and
0.02% of the total accounts receivable and contract assets respectively (2019: 43% and 0.07%). In addition, the accounts
receivable not overdue or impaired is mainly related to many clients who don’t have payment in arrears records recently.
270
The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. As
mentioned in Note XIII, as at 31 December 2020, the Group does not provide any external guarantees which would expose
the Group to credit risk.
(2) Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that are settled by delivering cash
or another financial asset. The Company and its individual subsidiaries are responsible for their own cash management,
including short-term investment of cash surpluses and the raising of loans to cover expected cash demands, subject to
approval by the Company’s board when the borrowings exceed certain predetermined levels of authority. The Group’s policy
is to regularly monitor its liquidity requirements and its compliance with lending covenants, to ensure that it maintains
sufficient reserves of cash, readily realisable marketable securities and adequate committed lines of funding from major
financial institutions to meet its liquidity requirements in the short and longer term.
The following tables set out the remaining contractual maturities at the balance sheet date of the Group’s financial liabilities,
which are based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, if
floating, based on rates current at the balance sheet date) and the earliest date the Group can be required to pay:
2020 Contractual undiscounted cash flow
More than 1 year More than 3 years
Within 1 year or but less than 3 but less than 5 Carrying amount
demand years years More than 5 years Total of balance sheet
Financial liabilities
Short-term loans 8,778,542 ,209 - - - 8,778,542,209 8,599,569,471
Bills payable 1,231,533,895 - - - 1,231,533,895 1,231,533,895
Accounts payable 27,164,171,682 - - - 27,164,171,682 27,164,171,682
Other payables 32,867,709,024 - - - 32,867,709,024 32,867,709,024
Non-current liabilities due within
one year 25,053,537,286 - - - 25,053,537,286 24,500,550,121
Long-term loans 4,957,036,602 28,885,981,505 24,623,632,349 97,458,835,686 155,925,486,142 132,452,767,135
Debentures payable 14,886,375 350,772,750 85,932,140 - 451,591,265 398,971,739
Long-term payables - 1,620,375,941 304,011,108 536,546,749 2,460,933,798 2,114,175,683
Total 100,067,417,073 30,857,130,196 25,013,575,597 97,995,382,435 253,933,505,301 229,329,448,750
2019 Contractual undiscounted cash flow
More than 1 year More than 3 years
Within 1 year or but less than 3 but less than 5 Carrying amount
demand years years More than 5 years Total of balance sheet
Financial liabilities
Short-term loans 6,458,040,008 - - - 6,458,040,008 6,366,717,121
Bills payable 2,028,917,980 - - - 2,028,917,980 2,028,917,980
Accounts payable 21,183,567,553 - - - 21,183,567,553 21,183,567,553
Other payables 24,570,589,610 - - - 24,570,589,610 24,570,589,610
Non-current liabilities due within
one year 19,473,884,018 - - - 19,473,884,018 18,849,281,019
Long-term loans 4,478,877,485 8,296,257,569 26,580,720,126 94,478,027,383 133,833,882,563 107,730,595,615
Debentures payable 14,497,753 28,995,505 330,673,806 3,556,053 377,723,117 387,878,384
Long-term payables - 409,808,948 328,617,676 538,091,397 1,276,518,021 984,520,824
Total 78,208,374,407 8,735,062,022 27,240,011,608 95,019,674,833 209,203,122,870 182,102,068,106
271
(3) Interest rate risk
Interest-bearing financial instruments at floating rates and at fixed rates expose the Group to cash flow interest rate risk and
fair value interest risk, respectively. The Group determines the appropriate weightings of the fixed and floating rate
interest-bearing instruments based on the current market conditions and performs regular reviews and monitoring to achieve
an appropriate mix of fixed and floating rate exposure. The Group does not enter into financial derivatives to hedge interest
rate risk.
(a) As at 31 December, the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
2020 2019
Effective interest Effective interest
Item rate Amounts rate Amounts
Financial assets
- Cash at bank 0.20%~3.74% 41,745,509,216 0.20% ~ 3.74% 26,721,273,607
Financial liabilities
- Short-term loans 0.50%~5.90% (6,327,791,477) 0.40% - 4.35% (4,643,502,121)
- Non-current liabilities due within one
year 0%~5.29% (12,025,528,359) 0% - 5.64% (9,071,034,895)
- Long-term loans 0%~5.90% (49,498,675,910) 0% - 5.64% (59,667,474,395)
- Debentures payable 3.50%~4.55% (398,971,739) 3.50% - 4.55% (387,878,384)
- Long-term payables 4.17%~7.02% (2,114,175,683) 4.24% ~ 7.09% (984,520,824)
Total (28,619,633,952) (48,033,137,012)
Floating rate instruments:
2020 2019
Effective interest Effective interest
Item rate Amounts rate Amounts
Financial assets
- Cash at bank 0.0001%~3.90% 31,800,233,366 0.0001% ~ 3.90% 30,250,911,294
Financial liabilities
- Short-term loans 2.02%~2.55% (2,263,424,127) 3.56% ~ 3.92% (1,723,215,000)
- Non-current liabilities due within one
year 2.78%~5.88% (12,128,797,769) 1.04% - 6.38% (9,619,871,357)
- Long-term loans 1.11%~5.39% (82,790,180,032) 3.00% ~ 6.38% (48,063,121,220)
Total (65,382,168,562) (29,155,296,283)
272
(b) Sensitivity analysis
As at 31 December 2020, it is estimated that a general increase/decrease of 100 basis points in interest rates of floating
rate instrument, with all other variables held constant, would decrease/increase the Group’s net profit and equity by
RMB 557,440,000 (2019: RMB 251,370,000).
In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative instruments held by
the Group at the balance sheet date, the impact on the net profit and equity is estimated as an annualised impact on
interest expense or income of such a change in interest rates. The analysis is performed on the same basis for the
previous year.
(4) Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, short-term loans and other assets and liabilities
denominated in foreign currencies other than the functional currency, the Group ensures that its net exposure is kept to an
acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
(a) The Group’s exposure as at 31 December to currency risk arising from recognised
foreign currency assets or liabilities is mainly denominated in US dollar. The amount of
the USD exposure is net liabilities exposure USD 2,618,785,628 (2019 net liabilities
exposure: USD 1,791,577,868), translated into RMB 17,087,314,344 (2019: RMB
12,498,405,521), using the spot rate at the balance sheet date. Differences resulting
from the translation of the financial statements denominated in foreign currency are
excluded.
(b) The following are the exchange rates for Renminbi against US dollar applied by the
Group:
Average rate Balance sheet date mid-spot rate
2020 2019 2020 2019
USD 6.7506 6.9197 6.5249 6.9762
Assuming all other risk variables remained constant, a 5% strengthening/weakening of the Renminbi against the US
dollar at 31 December would have increased/decreased both the Group’s equity and net profit by the amount RMB
333,959,173 (2019: RMB 197,336,145).
The sensitivity analysis above assumes that the change in foreign exchange rates had been applied to re-measure those
financial instruments held by the Group which expose the Group to foreign currency risk at the balance sheet date. The
analysis excludes differences that would result from the translation of the financial statements denominated in foreign
currency. The analysis is performed on the same basis for the previous year.
(5) Other price risks
Other price risks include stock price risk and commodity price risk.
273
IX. Fair value disclosure
The following table presents the fair value information and the fair value hierarchy, at the end of the current reporting period,
of the Group’s assets and liabilities which are measured at fair value at each balance sheet date on a recurring or
non-recurring basis. The level in which fair value measurement is categorised is determined by the level of the fair value
hierarchy of the lowest level input that is significant to the entire fair value measurement. The levels are defined as follows:
Level 1 inputs: unadjusted quoted prices in active markets that are observable at the measurement date for identical
assets or liabilities;
Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly observable for underlying assets
or liabilities;
Level 3 inputs: inputs that are unobservable for underlying assets or liabilities.
1. Fair value of assets measured at fair value at the end of the year
31 December 2020
Level 1 Fair value Level 2 Fair value Level 3 Fair value
Assets Note measurement measurement measurement Total
Recurring fair value measurements
- Financial assets held for trading - - 4,367,201,833 4,367,201,833
Including: Structured deposits
and wealth
management
products V. 2 - - 4,367,201,833 4,367,201,833
- Investments in other equity
instruments V. 12 214,214,021 - 319,431,402 533,645,423
Total assets measured at fair value on a
recurring basis 214,214,021 - 4,686,633,235 4,900,847,256
31 December 2019
Level 1 Fair value Level 2 Fair value Level 3 Fair value
Assets Note measurement measurement measurement Total
Recurring fair value measurements
- Financial assets held for trading - - 5,809,184,994 5,809,184,994
Including: Structured deposits
and wealth
management
products V. 2 - - 5,809,184,994 5,809,184,994
- Investments in other equity
instruments V. 12 300,124,974 - 331,951,673 632,076,647
Total assets measured at fair value on a
recurring basis 300,124,974 - 6,141,136,667 6,441,261,641
274
2 Basis of determining the market price for recurring and non-recurring fair value measurements categorised within Level 1
The Group uses the active market quote as the fair value of financial assets within Level 1.
3 Valuation techniques used and the qualitative and quantitative information of key parameters for recurring and non-recurring
fair value measurements categorised within Level 3
Financial assets held for trading at recurring fair value within Level 3 are bank wealth management products. For wealth
management products measured at fair value, the fair value is determined based on the discounted cash flow method.
Investments in other equity instruments at recurring fair value within Level 3 are unlisted equity investments held by the
Group, including:
(i) For those who raised a new round of financing in 2020, the Group used the financing price as the best estimates of
their fair value;
(ii) For other investments in other equity instruments, since the operating environment, operating conditions and financial
status of the investee have not changed significantly during the year, the Group uses the book investment cost as a
reasonable estimate of fair value for measurement.
During 2020, there were no changes in valuation technique of fair value. As at 31 December, there were no significant
discrepancies between the book value and fair value of all the financial assets and financial liabilities except the above assets
measured at fair value and the non-current assets held for sale presented in Note V.9.
275
X. Related parties and related party transactions
1 Information about the parent of the Company
Ultimate
Shareholding Percentage of controlling party
Company name Registered place Business nature Registered capital percentage (%) voting rights (%) of the Company
Operation and
No. 12, management of
Jiuxianqiao Road, state-owned
Chaoyang District, assets within
Beijing Electronics Holding Co., Ltd. Beijing authorisation, etc. RMB 3,139,210,000 0.79% 18.85% Yes
2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Company, refer to Note VII.1.
3 Information about joint ventures and associates of the Company
Associates and joint ventures that have related party transactions with the Group during this year or the previous year are as
follows:
Name of entity Relationship with the Company
Associate of the Group and the
Beijing Nittan Electronic Co., Ltd. Company
Associate of the Group and the
TPV Display Technology (China) Limited Company
Associate of the Group and the
Shenzhen Yunyinggu Technology Co., Ltd. Company
Associate of the Group and the
Beijing Xindongneng Investment Management Co., Ltd. Company
BOE Houji Technology (Beijing) Co., Ltd. Associate of the Group
Beijing Zhonglianhe Ultra HD Collaborative Technology Centre Co., Ltd. Associate of the Group
Hefei Xin Jing Yuan Electronic Materials Co., Ltd. Associate of the Group
Changzhou Xiruojia Medical Technology Co., Ltd. Subsidiary of associate of the Group
276
4 Information on other related parties
Name of other related parties Related party relationship
Under the same control of the ultimate
Beijing Zhengdong Electronic Power Group Co., Ltd. holding company
Under the same control of the ultimate
Beijng NAURA Microelectronics Equipment Co., Ltd. holding company
Under the same control of the ultimate
Sevenstar Semiconductor Technologies Co., Ltd. holding company
Under the same control of the ultimate
Beijing Zhaowei Technology Development Co., Ltd. holding company
Under the same control of the ultimate
Beijing C&W Intelligent Equipment Co., Ltd. holding company
Under the same control of the ultimate
Beijing BBEF Science & Technology Co., Ltd. holding company
Under the same control of the ultimate
Beijing Yandong Microelectronic Co., Ltd. holding company
Under the same control of the ultimate
Beijing Ether Electronics Group Co., Ltd. holding company
Under the same control of the ultimate
Beijing Dongdian Industrial Development Co., Ltd. holding company
Under the same control of the ultimate
Beijing Electrical Control Jiuyi Industrial Development Company holding company
Under the same control of the ultimate
Beijing BOE Investment Development Co., Ltd. holding company
Under the same control of the ultimate
Beijing Yansong Economic and Trade Co., Ltd. holding company
Under the same control of the ultimate
Beijing Electronics Holding & SK Technology Co., Ltd. holding company
Under the same control of the ultimate
Baic Electronics Holding SK (Jiangsu) Technology Co., Ltd. holding company
Under the same control of the ultimate
Beijing Zhaowei Electronic (Group) Co., Ltd. holding company
Under the same control of the ultimate
761 Workshop (Beijing) Technology Development Co., Ltd. holding company
Under the same control of the ultimate
Beijing Electric Control Industry Investment Co., Ltd. holding company
Under the same control of the ultimate
Beijing Feiyu Micro Electronics Co., Ltd. holding company
Associate of enterprise that is under the
same control of the ultimate holding
Beijing Senju Electronic Materials Co., Ltd. company
Associate of enterprise that is under the
same control of the ultimate holding
New Vision Microelectronics (Hong Kong) Limited company
Beijing Electric Vehicle Co., Ltd. Other related parties
China United Network Communications Limited Other related parties
Hefei Yisiwei Integrated Circuit Co., Ltd. Other related parties
Chengdu ESWIN IC Design Co., Ltd. Other related parties
Haining Yisiwei IC Design Co., Ltd. Other related parties
277
5 Transactions with related parties
The transactions below with related parties were conducted under normal commercial terms or agreements.
(1) Purchase of goods and equipment, and receiving of services (excluding remuneration of key management personnel)
The Group
Nature of transaction 2020 2019
Purchase of goods 698,585,167 480,284,012
Procurement of equipment 169,998,650 397,005,152
Receiving of services 17,527,375 17,744,265
Total 886,111,192 895,033,429
The Company
Nature of transaction 2020 2019
Purchase of goods 14,438,544 12,379,363
Receiving of services 544,225,068 844,688,884
Payment of interest expenses - 65,689,459
Total 558,663,612 922,757,706
(2) Sale of goods/rendering of services
The Group
Nature of transaction 2020 2019
Sale of goods 20,817,125 2,846,583
Rendering of services 4,762,316 4,670,427
Total 25,579,441 7,517,010
278
The Company
Nature of transaction 2020 2019
Sale of goods 3,366,359 -
Rendering of services 4,406,612,262 4,635,072,473
Interest income received 4,044,123 318,036
Total 4,414,022,744 4,635,390,509
(3) Leases
(a) As the lessor
The Group
Lease income recognised Lease income recognised
Type of assets leased in 2020 in 2019
Investment properties 1,092,879 1,176,283
The Company
Lease income recognised Lease income recognised
Type of assets leased in 2020 in 2019
Investment properties 66,764,268 63,700,904
(b) As the lessee
The Group
Lease expense Lease expense
Type of assets leased recognised in 2020 recognised in 2019
Fixed assets 2,329,933 3,082,942
279
(4) Funding from related party
The Company
Name of related party Amount of funding Inception date Maturity date
Funds received
Subsidiary of the parent company 500,000,000 28/5/2019 31/12/2025
Subsidiary of the parent company 300,000,000 8/7/2020 8/7/2025
Subsidiary of the parent company 2,000,000,000 9/6/2017 31/12/2025
Subsidiary of the parent company 700,000,000 13/4/2018 31/12/2025
Subsidiary of the parent company 2,000,000,000 27/5/2019 31/12/2025
Subsidiary of the parent company 360,000,000 24/4/2020 31/12/2025
Subsidiary of the parent company 2,500,000,000 6/7/2020 6/7/2025
Subsidiary of the parent company 1,700,000,000 12/10/2020 12/10/2025
Subsidiary of the parent company 1,700,000,000 28/12/2020 28/12/2025
Subsidiary of the parent company 1,200,000,000 30/9/2015 31/12/2025
Subsidiary of the parent company 650,000,000 25/4/2018 31/12/2025
Subsidiary of the parent company 3,500,000,000 1/8/2018 31/12/2025
Subsidiary of the parent company 1,500,000,000 24/5/2019 31/12/2025
Subsidiary of the parent company 2,000,000,000 3/7/2020 3/7/2025
Subsidiary of the parent company 2,500,000,000 5/11/2020 5/11/2025
Subsidiary of the parent company 500,000,000 11/12/2020 11/12/2025
Subsidiary of the parent company 200,000,000 28/7/2017 31/12/2025
Subsidiary of the parent company 1,600,000,000 4/12/2017 31/12/2025
Subsidiary of the parent company 3,800,000,000 19/7/2018 31/12/2025
Subsidiary of the parent company 1,000,000,000 26/7/2019 31/12/2025
Subsidiary of the parent company 1,000,000,000 20/8/2020 20/8/2025
Subsidiary of the parent company 4,000,000,000 9/6/2017 31/12/2025
Subsidiary of the parent company 1,000,000,000 23/12/2016 31/12/2025
Subsidiary of the parent company 3,000,000,000 27/4/2018 31/12/2025
Subsidiary of the parent company 2,490,000,000 31/8/2018 31/12/2025
Subsidiary of the parent company 500,000,000 21/5/2019 31/12/2025
Subsidiary of the parent company 2,000,000,000 28/12/2020 28/12/2025
Subsidiary of the parent company 1,200,000,000 6/7/2020 6/7/2025
Subsidiary of the parent company 3,000,000,000 28/5/2018 31/12/2025
Subsidiary of the parent company 1,300,000,000 21/5/2019 31/12/2025
Subsidiary of the parent company 2,500,000,000 28/9/2020 28/9/2025
Subsidiary of the parent company 3,280,000,000 7/12/2020 7/12/2025
Total 55,480,000,000
280
Name of related party Amount of funding Inception date Maturity date
Funds provided
Subsidiary of the parent company 50,000,000 27/3/2015 26/12/2021
Subsidiary of the parent company 30,000,000 21/1/2016 21/1/2022
Subsidiary of the parent company 15,000,000 20/1/2020 20/1/2022
Subsidiary of the parent company 200,000,000 12/10/2020 12/10/2030
Subsidiary of the parent company 100,000,000 13/12/2019 13/12/2022
Subsidiary of the parent company 150,000,000 20/12/2019 19/12/2022
Subsidiary of the parent company 100,000,000 24/12/2019 24/12/2022
Subsidiary of the parent company 200,000,000 27/4/2020 19/12/2022
Subsidiary of the parent company 50,000,000 28/4/2020 17/12/2022
Subsidiary of the parent company 300,000,000 24/11/2020 24/11/2023
Subsidiary of the parent company 1,200,000,000 5/11/2020 28/10/2023
Subsidiary of the parent company 50,000,000 13/12/2019 13/12/2022
Subsidiary of the parent company 800,000,000 17/12/2019 17/12/2022
Subsidiary of the parent company 650,000,000 20/12/2019 19/12/2022
Subsidiary of the parent company 100,000,000 24/12/2019 24/12/2022
Subsidiary of the parent company 770,000,000 19/2/2020 17/2/2023
Subsidiary of the parent company 800,000,000 30/4/2020 17/2/2023
Subsidiary of the parent company 1,490,000,000 21/10/2020 20/10/2023
Subsidiary of the parent company 500,000,000 24/11/2020 24/11/2023
Subsidiary of the parent company 250,000,000 13/12/2019 13/12/2022
Subsidiary of the parent company 450,000,000 20/12/2019 19/12/2022
Subsidiary of the parent company 50,000,000 24/12/2019 24/12/2022
Subsidiary of the parent company 150,000,000 25/12/2019 17/12/2022
Subsidiary of the parent company 400,000,000 13/12/2019 13/12/2022
Subsidiary of the parent company 120,000,000 24/12/2019 17/12/2022
Subsidiary of the parent company 180,000,000 24/12/2019 24/12/2022
Subsidiary of the parent company 70,000,000 28/4/2020 24/12/2022
Subsidiary of the parent company 130,000,000 28/4/2020 17/12/2022
Subsidiary of the parent company 500,000,000 20/11/2020 20/11/2023
Subsidiary of the parent company 800,000,000 19/2/2020 17/2/2023
Subsidiary of the parent company 170,000,000 28/2/2020 17/2/2023
Subsidiary of the parent company 1,700,000,000 20/11/2020 20/11/2023
Subsidiary of the parent company 1,800,000,000 29/10/2020 28/10/2023
Subsidiary of the parent company 1,480,000,000 24/11/2020 24/11/2023
Total 15,805,000,000
281
(5) Remuneration of key management personnel
The Group and the Company
Item 2020 2019
Remuneration of key management personnel 56,368,000 49,799,000
The remuneration of key management personnel above does not include the one with respect to 2020 share-based payments
scheme.
6 Receivables from and payables to related parties
Receivables from related parties
The Group
2020 2019
Provision for Provision for
Item Book value impairment Book value impairment
Accounts receivable 38,773,536 - 1,960,247 -
Prepayments 7,678,237 - 2,259,308 -
Other receivables 14,062,445 - 603,515 -
The Company
2020 2019
Provision for Provision for
Item Book value impairment Book value impairment
Accounts receivable 3,988,518,583 14,979,329 659,753,039 14,979,329
Prepayments 153,768 - 833,053 -
Dividends receivable 460,261,502 - 941,634,611 -
Other receivables 15,724,164,267 46,377,509 3,889,934,009 41,038,073
Other non-current assets 2,606,920,400 - 156,920,400 -
282
Payables to related parties
The Group
Item 2020 2019
Accounts payable 108,759,439 77,847,042
Advance payments received 6,018,519 60,990
Contract liabilities 1,604,187 -
Other payables 183,204,239 166,424,203
The Company
Item 2020 2019
Accounts payable 236,990,054 1,093,063
Advance payments received 8,735,465 2,108,152,470
Other payables 3,051,622,542 4,739,212,844
Other non-current liabilities 56,156,661,805 33,297,240,830
7 Commitments of the related parties
As at balance sheet date, the commitments of the related parties, which are signed but not listed in financial statement are as
following:
2020 2019
Procurement of equipment 254,763,625 133,794,504
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XI. Share-based payments
At 17 December 2020, the Board of Directors of the Company approved the implementation of share options and restricted
share incentive plans. The shares for the share options and restricted share incentive plans are from the Company’s Renminbi
A-share ordinary shares repurchased from secondary market. Vesting plans of share options and restricted share incentive
plans are as follows:
(a) Share option incentive plan
The share option incentive plan is classified into initial grant and reserved grant. The initial grant date was 21
December 2020, and the implementation was completed on 25 December 2020. The actual number of grantees was
1,988, with a number of grants of 596,229,700 shares; the number of reserved grants was 33,000,000 shares. The grant
date, grant recipients, and implementation completion date, etc. are to be confirmed.
The share options are exercised in three phases after 24 months from the grant date. The exercise ratios for each phase
are 34%, 33%, and 33%, respectively. The corresponding exercise dates are 2 years, 3 years, and 4 years from the grant
date.
When the Company’s performance meets the corresponding criteria, the proportion of exercisable rights of the
above-mentioned share options is determined based on the business performance of the incentive object’s operation
and the contribution value of the incentive object. In accordance with the plan, the Company will deregister the current
exercisable shares of the options obtained by the incentive objects if the exercise criteria stipulated in this plan are not
met.
(b) Restricted share incentive plan
The grant date of restricted share incentive plan was 21 December 2020, and the implementation was completed on 29
December 2020. The actual number of grantees was 793, with a number of grants of 321,813,800 share.
The lock-up periods of the restricted share incentive plan are the 24, 36 and 48 months from the grant date,
respectively. During the lock-up period, restricted shares granted to the incentive object under this plan shall not be
transferred, used for guarantee or debt repayment before the lock-up release. Lock-up restricted shares are released in
three phases after 24 months from the grant date. The release ratios for each phase are 34%, 33%, and 33%,
respectively. The corresponding release dates are 2 years, 3 years, and 4 years from the grant date. The actual number
released shall be based on performance assessment result for the previous year.
When the Company’s performance meets the corresponding criteria, the release proportion of the above-mentioned
restricted shares is determined based on the business performance of the incentive object’s operation and the
contribution value of the incentive object. The Company will repurchase the locked restricted shares at the granted
price of the incentive objects if the release criteria stipulated in this plan are not met, and the incentive object shall not
release the restricted shares for the current period.
284
The incentive objects involved in this share option and restricted share incentive plans are qualified employees of the
Company and its subsidiaries. The Company acts as a settlement company, and the Company and its subsidiaries act as
service recipients. As at 31 December 2020, the total costs recognised by the Group’s equity-settled share-based payments in
the consolidated financial statement was RMB 17,211,463, and the accumulated amount of capital reserve paid by
equity-settled share-based payments amounted to RMB 16,009,935. In the Company’s financial statements, the Company
recognised its long-term equity investment of RMB 13,407,214 in its subsidiary at the fair value of the equity instruments at
the grant date, and recognised expenses arising from share-based payments of RMB 3,804,249, as well as a capital reserve of
RMB 17,211,463.
As at 31 December 2020, the company received a total of RMB 875,333,536 in restricted share subscription funds from
restricted share incentive objects. Based on relevant provisions of the restricted share incentive plan for the service period, if
the granted object resigns before the release date, the Company will repurchase the restricted shares that have not been
released at the subscription price of the granted object. Please refer to Note V. 28 (1) for the repurchased obligation set out in
other payables.
(1) Method for determining the fair value of equity instruments at the grant date
Share options:
The fair value of equity instruments at the grant date is determined based on the difference between the assessed fair
value of the exercisable share options at each grant date and the subscription price in RMB (RMB 1.68/share, RMB
1.93/share and RMB 2.09/share, respectively).
Restricted shares:
The fair value of equity instruments at the grant date is determined based on the difference between the fair value of
shares at the grant date and the subscription price at RMB 2.68/share.
(2) Basis of determining the number of equity instruments expected to vest
At each balance sheet date during the vesting period, the best estimation is made according to the latest
information, such as the number of employees who are granted options and the completion of performance
indicators, and the number of equity instruments expected to vest is revised accordingly. On the vesting date, the
estimated number is equal to the number of equity instruments that are ultimately vested.
XII. Capital management
The Group’s primary objectives when managing capital are to safeguard its ability to continue as a going concern, so that it
can continue to provide returns for shareholders, by pricing products and services commensurately with the level of risk and
by securing access to finance at a reasonable cost.
The Group defines “capital” as including all components of equity, less unaccrued proposed dividends. The balances of
related party transactions are not regarded by the Group as capital.
285
The Group’s capital structure is regularly reviewed and managed to achieve an optimal structure and return for shareholders.
Factors for the Group’s consideration include: its future funding requirements, capital efficiency, actual and expected
profitability, expected cash flows, and expected capital expenditure. Adjustments are made to the capital structure in light of
changes in economic conditions affecting the Group.
The Group’s capital structure is monitored on the basis of an adjusted net debt-to-capital ratio (total liabilities divided by total
assets). The capital management strategies exerted by the Group remained unchanged from 2019. In order to maintain or
adjust the ratio, the Group may adjust the amount of dividends paid to shareholders, request new loans, issue new shares, or
sell assets to reduce debt.
As at 31 December 2020 and 31 December 2019, the Group’s asset-liability ratios are as follows:
2020 2019
Asset-liability ratio 59.13% 58.56%
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
XIII. Commitments and contingencies
1 Significant commitments
(1) Capital commitments
The Group 2020 2019
Contracts entered into but not performed or partially performed 58,885,156,561 59,347,872,614
Contracts authorised but not entered into 74,192,859,943 102,974,551,619
Total 133,078,016,504 162,322,424,233
The Group’s contracts authorised but not entered into mainly included the fixed assets that Chongqing BOE Display, Fuzhou
BOE Display, Health Investment and Wuhan BOE planned to purchase in subsequent years and project equipment that the
Group planned to purchase in subsequent years.
The Company 2020 2019
Contracts entered into but not performed or partially performed 39,391,365,336 36,732,291,172
The Company’s contracts entered into but not performed or partially performed mainly included guaranteed investments in
Chongqing BOE Display, Fuzhou BOE Display and Health Investment.
286
(2) Operating lease commitments
As at 31 December, the total future minimum lease payments under non-cancellable operating leases of the Group’s
properties were payable as follows:
Item 2020 2019
Within 1 year (inclusive) 76,151,901 56,919,248
After 1 year but within 2 years (inclusive) 38,471,518 34,440,482
After 2 years but within 3 years (inclusive) 21,725,645 31,151,809
After 3 years 33,043,339 61,129,358
Total 169,392,403 183,640,897
As at 31 December 2020, the Company had no significant operating lease commitments.
(2) Guarantee
(1) The Group as the guarantor
As at 31 December 2020, the Group did not have guarantees provided for external enterprises.
(2) The Company as the guarantor
At 31 December 2020, Chengdu Optoelectronics pledged its land use right with carrying amount of RMB 41,177,526,
construction in progress with carrying amount of RMB 1,221,864,173, machinery and equipment with carrying amount of
RMB 32,627,157,411 and plants and buildings with carrying amount of RMB 2,432,658,572 as collaterals to obtain
long-term loans of USD 901,460,000 and RMB 15,717,800,000. The Company provides joint-liability guarantee for the
above loans. In addition, the Company provides joint-liability guarantee for the letters of credit issued but not accepted of
USD 449,008 and JPY 27,540,000 and the long-term letter of guarantee issued but not accepted of RMB 1,118,500,000.
At 31 December 2020, Yuansheng Optoelectronics pledged its plants and buildings with carrying amount of RMB
2,184,506,985, machinery and equipment with carrying amount of RMB 9,074,094,053 and land use right with carrying
amount of RMB 45,644,499 as collaterals to obtain long-term loans of RMB 1,922,730,000. The Company provides
joint-liability guarantee for the above loans.
At 31 December 2020, Chongqing BOE Display pledged its land use right with carrying amount of RMB 166,784,696 as
collaterals to obtain long-term loans of USD 124,000,000 and RMB 1,000,000. The Company provides joint-liability
guarantee for the above loans. In addition, the Company provides joint-liability guarantee for the short-term loan of USD
170,000,000 and the letters of credit issued but not accepted of USD 301,146,607 and JPY 18,938,564,000.
At 31 December 2020, Hefei Xinsheng pledged its land use right with carrying amount of RMB 113,894,779, plants and
buildings with carrying amount of RMB 3,016,644,938 and equipment with carrying amount of RMB 3,528,523,204 as
collaterals to obtain long-term loans of USD 268,120,000. The Company provides joint-liability guarantee for the above
loans.
287
At 31 December 2020, Chongqing BOE pledged its land use right with carrying amount of RMB 132,311,810 and machinery
and equipment and buildings with carrying amount of RMB 10,742,935,343 as collaterals to obtain long-term loans of USD
562,240,000 and RMB 255,600,000. The Company provides joint-liability guarantee for the above loans.
At 31 December 2020, Fuzhou BOE pledged its land use right with carrying amount of RMB 207,436,937, plants and
buildings with carrying amount of RMB 3,069,470,678 and machinery and equipment with carrying amount of RMB
10,668,568,525 as collaterals to obtain long-term loans of USD 729,000,000 and RMB 3,450,060,000. The Company
provides joint-liability guarantee for the above loans. In addition, the Company provides joint-liability guarantee for the
long-term letter of guarantee issued but not accepted of RMB 720,000,000.
At 31 December 2020, Hefei Display Technology pledged its land use right with carrying amount of RMB 286,639,674,
buildings with carrying amount of RMB 3,919,531,110 and machinery and equipment with carrying amount of RMB
18,739,242,411 as collaterals to obtain long-term loans of USD 1,342,090,000 and RMB 6,118,214,080. The Company
provides joint-liability guarantee for the above loans. In addition, the Company provides joint-liability guarantee for the
letters of credit issued but not accepted of JPY 899,600,000.
At 31 December 2020, Mianyang BOE pledged its land use right with carrying amount of RMB 384,360,333, buildings with
carrying amount of RMB 111,133,982, machinery and equipment with carrying amount of RMB 23,758,696,685 and
construction in progress with carrying amount of RMB 9,712,245,614 as collaterals to obtain long-term loans of USD
802,000,000 and RMB 13,182,730,000. The Company provides joint-liability guarantee for the above loans. In addition, the
Company provides joint-liability guarantee for the letters of credit issued but not accepted of USD 22,911,342 and JPY
3,424,770,000 and the long-term letter of guarantee issued but not accepted of RMB 1,690,000,000.
At 31 December 2020, Wuhan BOE pledged its machinery and equipment with carrying amount of RMB 18,290,634,775,
land use right with carrying amount of RMB 254,850,879 and construction in progress with carrying amount of RMB
10,092,665,066 as collaterals to obtain long-term loans of USD 1,158,000,000 and RMB 7,673,000,000. The Company
provides joint-liability guarantee for the above loans. In addition, the Company provides joint-liability guarantee for the
letters of credit issued but not accepted of USD 2,440,000 and JPY 3,340,856,000.
At 31 December 2020, Chengdu Hospital obtain long-term loans of RMB 999,092,146. The Company provides joint-liability
guarantee for the above loans.
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XIV. Segment reporting
(1) Segment reporting considerations
The Group management reviews the operation performance and allocates resources according to the business segments
below.
(a) Display business — The display business integrates design and manufacturing of
display devices and strives to offer TFT-LCD, AMOLED, Microdisplay and other
intelligent interface devices, which develops a platform that integrates panels, modules,
whole widget and services. This business focuses on providing high-quality
smartphones, tablet PCs, laptops, monitors, TVs, vehicles, electronic shelf label (ESL),
tiled display screens, industrial control, wearable devices, VR/AR devices, electronic
tags, white goods, healthcare, mobile payment, interactive whiteboards and other
intelligent display devices for customers. Besides, this business provides the most
competitive whole-widget smart manufacturing services for 3C display, smart IoTs,
system platform and other fields.
(b) Smart systems innovation business — The smart systems innovation business
integrates designs of system solutions. Supported by AI and big data technologies, this
business focuses on soft and hard products and services and offers integrated IoT
solutions of smart government affairs, urban beautification, smart transportation, smart
finance, smart education, smart park and smart energy.
(c) Smart medicine and engineering business — The smart medicine and engineering
business provides professional healthcare services and features the innovative
integration of medical and engineering by integrating technology and medical science.
Adhering to people-centred thought, this business focuses on family, community and
hospital and emphasizes developing four core businesses, such as health
management, health technology, digital hospital and technology services. It strives to
create interconnection among testing equipment, medical personnel and customers
through healthcare IoT platform and build an intelligent health management ecosystem
to provide customers with one-stop health services of "prevention-diagnosis and
treatment-health care”.
(d) Sensor and application solutions business — The sensor and application solutions
business integrates design and manufacturing of B2B system solutions. This business
focuses on medical detection, household detection, communication and transportation,
smart homes and other fields to provide customers with integrated design and
manufacturing services of sensor devices; besides, this business provides sensor
system solutions of medical imaging, biological detection, smart screens, microwave
communication, fingerprint identification and the like, with products including flat panel
X-ray detectors (FPXD), digital microfluidic chips, PDLC glass, fingerprint identification
systems, etc.
289
(e) Mini-LED business — The Mini-LED business integrates design and manufacturing of
devices and provides Mini-LED backlight products with strong reliability and high
dynamic range that allow precisely brightness adjustment for smartphones, tablet PCs,
laptops, monitors, TVs and other products; besides, it provides Mini/Micro-LED display
products with high brightness, strong reliability and high dynamic range for use in
outdoor display, commercial display and other scenarios.
(f) Others — Other service mainly includes technical development service and patent
maintenance service.
The main reason to separate the segments is that the Group independently manages
the display business, smart systems innovation business, smart medicine & engineering
integration business, sensor and application solutions business, Mini-LED business and
other businesses. As these business segments manufacture and distribute different
products, apply different manufacturing processes and specify in gross profit, these
business segments are managed independently. The management evaluates the
performance and allocates resources according to the profit of each business segment
and does not take financing cost and investment income into account.
(2) Accounting policies for the measurements of reportable segments
For the purposes of assessing segment performance, the Group’s management regularly reviews the revenue and expenses
attributable to each reportable segment. Inter-segment sales are determined with reference to prices charged to external
parties for similar orders.
290
2020
Smart medicine Sensor and
Smart systems & engineering application
innovation integration solutions Mini-LED
Display business business business business business Others Elimination Total
Operating income 131,970,602,256 1,328,060,494 1,522,460,282 119,817,921 - 7,372,351,461 (6,760,722,685) 135,552,569,729
Operating costs 107,769,219,236 981,563,055 724,268,025 75,405,672 - 2,213,785,494 (2,941,118,726) 108,823,122,756
2019
Smart medicine Sensor and
Smart systems & engineering application
innovation integration solutions Mini-LED
Display business business business business business Others Elimination Total
Operating income 113,741,071,151 821,226,259 1,357,484,752 62,748,635 - 7,320,141,513 (7,243,082,146) 116,059,590,164
Operating costs 98,329,154,262 498,624,217 668,875,829 30,963,371 - 1,681,836,505 (2,763,184,888) 98,446,269,296
The Company develops various businesses by using common assets and liabilities and therefore, it could not analyse assets and liabilities of each reportable segment respectively by business.
Besides, the Group restates comparative information in 2019 according to segment reporting in 2020.
291
(3) Secondary segment reporting (regional segments)
(a) The geographical information is based on the location of customers receiving services
or goods.
The information of the Group’s external transactions based by locations is as follows:
Operating income from external customers
2020 2019
Chinese mainland 65,241,679,286 59,444,025,767
Other Asian countries and regions 54,895,384,319 45,030,859,656
Europe 4,804,966,123 4,511,337,220
America 10,316,934,261 6,911,922,720
Other regions 293,605,740 161,444,801
Total 135,552,569,729 116,059,590,164
(b) Divided based on asset locations
The geographical location of the specified non-current assets is based on the physical location of the asset, in the case
of fixed assets; the location of the operation to which they are allocated, in the case of intangible assets and goodwill;
and the location of operations, in the case of interests in associates and jointly controlled enterprises. Most of the
non-current assets in the Group are located in the Chinese mainland.
(4) Major customers
Operating income of display business from which is over 10% of the Group’s total operating income ended up with 2
customers (2019: 2 customers). The operating income from these customers represented RMB 35,420,533,749 (2019: RMB
30,980,334,746), which was approximately 26% (2019: 27%) of the Group’s total operating income.
292
XV. Notes to the Company’s financial statements
1 Cash at bank and on hand
2020 2019
Amount in original RMB/RMB Amount in original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
Cash on hand
USD 5 6.5249 31 5 6.9762 35
HKD 165 0.8416 139 165 0.8958 148
JPY 51,325 0.0632 3,244 51,325 0.0641 3,290
KRW 420,000 0.0060 2,520 420,000 0.0060 2,520
Other foreign currencies 16,662 16,943
Sub-total 22,596 22,936
Bank deposits
RMB 2,694,966,600 1,355,519,593
USD 257,341,260 6.5249 1,679,125,986 333,055,313 6.9762 2,323,460,475
HKD 1,641,906 0.8416 1,381,828 1,972,588 0.8958 1,767,044
Sub-total 4,375,474,414 3,680,747,112
Total 4,375,497,010 3,680,770,048
Including: Total overseas deposits were equivalent to RMB 150,742 (2019: RMB 161,168).
2 Accounts receivable
(1) The Company’s accounts receivable by customer type:
31 December 2020 31 December 2019
Amounts due from subsidiaries 3,988,518,583 659,753,039
Amounts due from other customers 5,995,278 7,044,176
Sub-total 3,994,513,861 666,797,215
Less: Provision for bad and doubtful debts 20,301,553 20,264,100
Total 3,974,212,308 646,533,115
293
(2) The ageing analysis of accounts receivable is as follows:
Ageing 2020 2019
Within 1 year (inclusive) 3,813,737,996 646,534,878
Over 1 year but within 2 years (inclusive) 163,379,898 2,866,370
Over 2 years but within 3 years (inclusive) - -
Over 3 years 17,395,967 17,395,967
Sub-total 3,994,513,861 666,797,215
Less: Provision for bad and doubtful debts 20,301,553 20,264,100
Total 3,974,212,308 646,533,115
The ageing is counted starting from the date when accounts receivable are recognised.
(3) Accounts receivable by provisioning method
2020
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 5,283,008 0% 5,283,008 100% -
- Customers with low credit risk 3,988,518,583 100% 14,979,329 0% 3,973,539,254
Collective assessment
- Customers with moderate credit risk 712,270 0% 39,216 6% 673,054
Total 3,994,513,861 100% 20,301,553 1% 3,974,212,308
2019
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 5,283,008 1% 5,283,008 100% -
- Customers with low credit risk 660,348,948 99% 14,979,329 2% 645,369,619
Collective assessment
- Customers with moderate credit risk 1,165,259 0% 1,763 0% 1,163,496
Total 666,797,215 100% 20,264,100 3% 646,533,115
294
(4) Additions and recoveries of provision for bad and doubtful debts during the year:
2020 2019
Balance at the beginning of the year 20,264,100 2,889,866
Charge during the year 37,453 17,416,444
Written-off during the year - 42,210
Balance at the end of the year 20,301,553 20,264,100
For the year ended 31 December 2020, the Company had no individually significant write-off or recovery of doubtful debts
which had been fully or substantially made in prior years.
(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB 3,706,332,124, amounting to 93% of the total
accounts receivable at the end of the year, and no provisions for bad and doubtful debts were made at the end of the year.
3 Other receivables
Note 31 December 2020 31 December 2019
Dividends receivable (1) 460,261,502 941,634,611
Others (2) 15,885,213,081 3,885,763,483
Total 16,345,474,583 4,827,398,094
(1) Dividends receivable
31 December 2020 31 December 2019
Yinghe Century - 572,694,778
Hefei BOE - 350,000,000
Beijing BOE Land Co., Ltd. - 18,939,833
Chongqing BOE Optoelectronics Technology Co., Ltd. 400,000,000 -
Beijing Electronics Zone Investment and Development Co., Ltd. 1,842,137 -
BOE (Korea) Co., Ltd. 6,125,106 -
Beijing Matsushita Colour Innovation Co., Ltd. 52,294,259 -
Total 460,261,502 941,634,611
295
(2) Others
(a) The Company’s other receivables by customer type:
Customer type 31 December 2020 31 December 2019
Amounts due from subsidiaries 15,710,102,798 3,889,330,494
Amounts due from other related parties 14,061,469 603,515
Amounts due from other customers 210,988,466 28,545,610
Sub-total 15,935,152,733 3,918,479,619
Less: Provision for bad and doubtful debts 49,939,652 44,600,216
Total 15,885,213,081 3,873,879,403
(b) The Company’s other receivables by currency:
2020 2019
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
RMB 15,935,152,733 3,930,341,042
HKD - - - 25,293 0.8958 22,657
Sub-total 15,935,152,733 3,930,363,699
Less: Provision for bad and
doubtful debts 49,939,652 44,600,216
Total 15,885,213,081 3,885,763,483
(c) The ageing analysis of other receivables of the Company is as follows:
2020 2019
Within 1 year (inclusive) 12,252,487,143 3,734,855,375
Over 1 year but within 2 years (inclusive) 3,610,709,401 59,484,488
Over 2 years but within 3 years (inclusive) 19,445,996 56,743,629
Over 3 years 52,510,193 79,280,207
Sub-total 15,935,152,733 3,930,363,699
Less: Provision for bad and doubtful debts 49,939,652 44,600,216
Total 15,885,213,081 3,885,763,483
The ageing is counted starting from the date when other receivables are recognised.
296
(3) Other receivables by provisioning method
2020
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment 49,939,652 0% 49,939,652 100% -
Collective assessment 15,885,213,081 100% - 0% 15,885,213,081
Total 15,935,152,733 100% 49,939,652 0% 15,885,213,081
2019
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment 44,600,216 1% 44,600,216 100% -
Collective assessment 3,873,879,403 99% - 0% 3,885,763,483
Total 3,918,479,619 100% 44,600,216 1% 3,885,763,483
(e) Movements of provisions for bad and doubtful debts
2020 2019
Balance at the beginning of the year 44,600,216 -
Charge for the year 5,339,436 45,142,306
Written-off during the year - 542,090
Balance at the end of the year 49,939,652 44,600,216
297
(d) Other receivables categorised by nature
Nature of other receivables 2020 2019
Transaction amount 15,844,170,864 3,889,330,494
Others 90,981,869 41,033,205
Sub-total 15,935,152,733 3,930,363,699
Less: Provision for bad and doubtful debts 49,939,652 44,600,216
Total 15,885,213,081 3,885,763,483
(e) Five largest other receivables by debtor at the end of the year
Other receivables at the end of the year due from the top five debtors of the Company amounted to RMB
14,636,627,155 in total, most of which are borrowings. No provision is made for bad and doubtful debts after
assessment.
4 Other current assets
2020 2019
VAT on tax credits 45,621,676 17,011,521
Others 132,140,042 92,486,376
Total 177,761,718 109,497,897
5 Long-term equity investments
(1) The Company’s long-term equity investments by category:
2020 2019
Investments in subsidiaries 179,426,966,866 157,203,548,708
Investments in associates and joint ventures 2,800,090,342 2,278,316,052
Sub-total 182,227,057,208 159,481,864,760
Less: Provision for impairment 92,000,000 92,000,000
Total 182,135,057,208 159,389,864,760
In previous year, the Company made provision for impairment of investment losses in its subsidiaries, Special Display and
298
Vacuum Technology, which amounted to RMB 60,000,000 and RMB 32,000,000 respectively.
299
(2) Investments in subsidiaries:
Balance of Balance of
provision for provision for
impairment at impairment at
Balance at the Decrease Balance at the end the beginning the end of the
Subsidiary beginning of the year Increase during the year during the year of the year of the year year
Increase in Share-based
investments payments
Beijing BOE Optoelectronics
Technology Co., Ltd. 4,172,288,084 - 685,343 - 4,172,973,427 - -
Chengdu BOE Optoelectronics
Technology Co., Ltd. 22,703,149,991 2,300,000,000 1,344,328 - 25,004,494,319 - -
Hefei BOE Optoelectronics
Technology Co., Ltd. 9,000,000,000 - 846,416 - 9,000,846,416 - -
Beijing BOE Display Technology
Co., Ltd. 17,418,713,599 - 2,628,382 - 17,421,341,981 - -
Hefei Xinsheng Optoelectronics
Technology Co., Ltd. 20,082,979,185 - 1,039,425 - 20,084,018,610 - -
Ordos Yuansheng Optoelectronics
Co., Ltd. 11,804,000,000 - 123,592 - 11,804,123,592 - -
Chongqing BOE Optoelectronics
Technology Co., Ltd. 19,565,354,599 - 511,822 - 19,565,866,421 - -
Fuzhou BOE Optoelectronics
Technology Co., Ltd. 14,300,042,079 - 560,840 - 14,300,602,919 - -
Beijing BOE Vision Electronic
Technology Co., Ltd. 3,865,344,500 228,155,500 36,288 - 4,093,536,288 - -
Beijing BOE Vacuum Electronics
Co., Ltd. 19,250,000 - 8,410 - 19,258,410 - -
Beijing BOE Vacuum Technology
Co., Ltd. 32,000,000 - - - 32,000,000 32,000,000 32,000,000
Beijing BOE Special Display
Technology Co., Ltd. 100,000,000 - 113,695 - 100,113,695 60,000,000 60,000,000
Beijing Yinghe Century Co., Ltd. 333,037,433 - 237,796 - 333,275,229 - -
BOE Optical Science and
technology Co., Ltd. 658,961,914 - 80,760 - 659,042,674 - -
BBOE Hyundai LCD Inc. 31,038,525 - 143,435 - 31,181,960 - -
BOE (Hebei) Mobile Technology
Co., Ltd. 1,353,651,020 - 40,543 - 1,353,691,563 - -
Beijing BOE Multimedia
Technology Co., Ltd. 400,000,000 - - - 400,000,000 - -
Beijing BOE Energy Technology
Co., Ltd. 850,000,000 - 110,069 - 850,110,069 - -
Beijing BOE Life Technology Co.,
Ltd. 10,000,000 - - - 10,000,000 - -
Beijing Zhongxiangying
Technologies Co., Ltd. 10,000,000 40,000,000 14,864 - 50,014,864 - -
BOE Semi-conductor Co., Ltd. 9,450,000 - - - 9,450,000 - -
BOE Optoelectronics Holding Co.,
Ltd. 2,768,662,024 443,299,514 - - 3,211,961,538 - -
Beijing Asahi Electronic Materials
Co., Ltd. 30,888,470 - - (30,888,470) - - -
BOE Healthcare Investment &
Management Co., Ltd. 2,953,154,069 3,140,000,000 13,515 - 6,093,167,584 - -
Hefei BOE Display Technology Co.,
Ltd. 1,998,765,323 - 573,616 - 1,999,338,939 - -
Beijing BOE Technology
Development Co., Ltd. 1,000,000 - 18,591 - 1,018,591 - -
BOE Wisdom IOT Technology Co.,
Ltd. 90,670,000 51,330,000 344,796 - 142,344,796 - -
Hefei BOE Zhuoyin Technology
Co., Ltd. 600,000,000 - 66,764 - 600,066,764 - -
Beijing BOE Land Co., Ltd. 7,731,474 - 21,499 - 7,752,973 - -
Beijing BOE Sales Co., Ltd. 30,500,000 - 13,199 - 30,513,199 - -
BOE KOREA Co., Ltd. 788,450 - 84,867 - 873,317 - -
Kunming BOE Display Technology
Co., Ltd. 670,000,000 620,830,000 88,433 - 1,290,918,433 - -
Mianyang BOE Optoelectronics
Technology Co., Ltd. 14,696,980,083 1,280,000,000 380,832 - 15,977,360,915 - -
Beijing BOE Sensing Technology
Co., Ltd. 50,000,000 - 348,624 - 50,348,624 - -
Hunan BOE Yiyun Science &
Technology Co., Ltd. 90,000,000 100,000,000 - (190,000,000) - - -
Wuhan BOE Optoelectronics
Technology Co., Ltd. 4,164,560,516 1,833,990,000 332,380 - 5,998,882,896 - -
Chongqing BOE Display
Technology Co., Ltd. 2,308,857,370 1,649,934,000 190,627 - 3,958,981,997 - -
Fuzhou BOE Display Technology
Co., Ltd. 21,730,000 - 18,591 - 21,748,591 - -
Beijing Matsushita Colour
Innovation Co., Ltd. - - 64,903 - 64,903 - -
BOE Innovation Investment Co., - 440,000,000 - - 440,000,000 - -
300
Ltd.
Hefei BOE Xingyu Technology Co.,
Ltd. - 219,139,000 58,471 - 219,197,471 - -
BOE Education Technology Co.,
Ltd. - 25,000,000 73,981 - 25,073,981 - -
Dongfang Chengqi (Beijing)
Business Technology Co., Ltd. - 8,000,000 - - 8,000,000 - -
BOE Smart Technology Co., Ltd. - 1,440,000,000 - - 1,440,000,000 - -
Nanjing CEC Panda FPD
Technology Co., Ltd. - 5,591,221,400 - - 5,591,221,400 - -
Chengdu CEC Panda Display
Technology Co., Ltd. - 3,020,000,000 - - 3,020,000,000 - -
Others* - - 2,187,517 - 2,187,517 - -
Total 157,203,548,708 22,430,899,414 13,407,214 (220,888,470) 179,426,966,866 92,000,000 92,000,000
*Others are the equity incentive funds paid for subsidiaries of the subsidiaries of BOE Group to be accrued.
For information about the major subsidiaries of the Company, refer to Note VII. 1.
301
(3) Investments in associates:
Movements during the year
Balance of
Balance at the Investment income Other Declared provision for
beginning of the Increase in Decrease in under equity comprehensive Other equity distribution of cash Balance at the end impairment at the
Investee year investments investments method income movements dividends or profits of the year end of the year
Beijing Nissin Electronics Precision Component
Co., Ltd. 483,248 - - (219,390) - - - 263,858 -
Beijing Nittan Electronic Co., Ltd. 64,808,755 - - 8,588,066 - - (2,000,000) 71,396,821 -
Erdos BOE Energy Investment Co., Ltd. 9,348,226 - - (1,185,089) - - - 8,163,137 -
Beijing Infi-Hailin Venture Investment Co., Ltd. 663,215 - - 503,309 - - - 1,166,524 -
Beijing Infi-Hailin Venture Investment (Limited
Partnership) 74,384,952 - (79,000,000) (210,320) 5,702,455 (877,087) - - -
TPV Display Technology (China) Limited 24,545,664 - - 282,600 - - - 24,828,264 -
Beijing Xindongneng Investment Fund (Limited
Partnership) 1,944,514,849 - (427,412,416) 410,089,641 130,950,251 - - 2,058,142,325 -
Beijing Xindongneng Investment Management
Co., Ltd. 7,410,061 - - 2,511,565 - - (2,000,000) 7,921,626 -
Shenzhen Yunyinggu Technology Co., Ltd. 12,715,084 - - (5,368,560) 60,150 14,504,213 - 21,910,887 -
Beijing Xloong Technologies Co., Ltd. 22,237,044 - - (2,470,104) - - - 19,766,940 -
Beijing Innovation Industry Investment Co., Ltd. 100,363,345 100,000,000 - 3,699,909 - - - 204,063,254 -
Beijing Electric Control Industry Investment Co.,
Ltd. 16,841,609 183,000,000 - 679,994 (319,767) 81,278 - 200,283,114 -
Hunan BOE Yiyun Science & Technology Co.,
Ltd. - 190,000,000 - (27,412,408) - 19,596,000 - 182,183,592 -
Total 2,278,316,052 473,000,000 (506,412,416) 389,489,213 136,393,089 33,304,404 (4,000,000) 2,800,090,342 -
302
6 Intangible assets
Patent and
proprietary
Land use rights technology Computer software Others Total
Book value
Balance at the beginning of the year 794,939,047 1,102,554,707 299,265,973 79,529,998 2,276,289,725
Additions during the year
- Purchases - - 11,893,193 4,797,580 16,690,773
- Transfers from construction in
progress - - 62,998,261 - 62,998,261
Balance at the end of the year 794,939,047 1,102,554,707 374,157,427 84,327,578 2,355,978,759
Less: Accumulated amortisation
Balance at the beginning of the year 52,495,508 595,845,951 133,692,030 623,972 782,657,461
Charge during the year 27,738,406 100,343,266 64,907,673 262,126 193,251,471
Balance at the end of the year 80,233,914 696,189,217 198,599,703 886,098 975,908,932
Carrying amounts
At the end of the year 714,705,133 406,365,490 175,557,724 83,441,480 1,380,069,827
At the beginning of the year 742,443,539 506,708,756 165,573,943 78,906,026 1,493,632,264
7 Deferred tax assets/deferred tax liabilities
31 December 2020 31 December 2019
Deductible/(taxable) Deductible/(taxable)
temporary Deferred tax temporary Deferred tax
Item differences assets/(liabilities) differences assets/(liabilities)
Deferred tax assets:
Provision for impairment of assets 185,358,501 27,803,775 179,981,612 26,997,242
Changes in fair value of investments in other
equity instruments 121,789,193 18,268,379 135,444,338 20,316,651
Depreciation of fixed assets 145,995,720 21,899,358 111,653,214 16,747,982
Advance payments received - - 1,906,248,410 285,937,261
Others 37,699,653 5,654,948 155,622,634 23,343,394
Sub-total 490,843,067 73,626,460 2,488,950,208 373,342,530
Amount offset (73,626,460) (13,074,064)
Balance after offsetting - 360,268,466
Deferred tax liabilities:
Royalty fees due from subsidiaries (2,975,000,000) (446,250,000) - -
Others (87,160,432) (13,074,064) (87,160,432) (13,074,064)
Sub-total (3,062,160,432) (459,324,064) (87,160,432) (13,074,064)
Amount offset 73,626,460 13,074,064
Balance after offsetting (385,697,604) -
303
8 Advance payments received
Item 31 December 2020 1 January 2020 31 December 2019
Advances from related parties 8,735,465 110,018 2,108,152,470
Advances from third parties 9,550,993 9,366,525 9,416,525
Total 18,286,458 9,476,543 2,117,568,995
9 Employee benefits payable
(1) Employee benefits payable:
Balance at 1 Accrued during the Decreased during Balance at 31
Note January 2020 year the year December 2020
Short-term employee benefits (2) 241,384,459 1,190,821,753 (924,181,005) 508,025,207
Post-employment benefits
- defined contribution plans (3) 10,821,616 66,029,897 (68,816,567) 8,034,946
Termination benefits - 6,942,728 (6,942,728) -
Total 252,206,075 1,263,794,378 (999,940,300) 516,060,153
Balance at 1 Accrued during the Decreased during Balance at 31
Note January 2019 year the year December 2019
Short-term employee benefits (2) 191,160,309 912,098,158 (861,874,008) 241,384,459
Post-employment benefits
- defined contribution plans (3) 9,978,952 83,250,064 (82,407,400) 10,821,616
Termination benefits - 2,780,894 (2,780,894) -
Total 201,139,261 998,129,116 (947,062,302) 252,206,075
(2) Short-term employee benefits
Balance at 1 Accrued during the Decreased during Balance at 31
January 2020 year the year December 2020
Salaries, bonuses, allowances 188,598,673 1,014,874,667 (764,036,829) 439,436,511
Staff welfare - 45,099,922 (45,099,922) -
Social insurance
Medical insurance 14,688,541 38,992,104 (38,858,702) 14,821,943
Work-related injury insurance 1,104,889 2,639,691 (2,669,154) 1,075,426
Maternity insurance 1,777,726 672,235 (1,212,742) 1,237,219
Housing fund 3,854,824 55,069,148 (53,085,430) 5,838,542
Labour union fee, staff and workers’ education fee 31,359,806 33,473,986 (19,218,226) 45,615,566
Others - - - -
Total 241,384,459 1,190,821,753 (924,181,005) 508,025,207
304
Balance at 1 Accrued during the Decreased during Balance at 31
January 2019 year the year December 2019
Salaries, bonuses, allowances 149,498,505 664,206,819 (625,106,651) 188,598,673
Staff welfare - 46,521,914 (46,521,914) -
Social insurance
Medical insurance 13,027,783 44,619,713 (42,958,955) 14,688,541
Work-related injury insurance 939,307 2,862,644 (2,697,062) 1,104,889
Maternity insurance 1,445,194 3,536,732 (3,204,200) 1,777,726
Housing fund 2,846,017 54,005,271 (52,996,464) 3,854,824
Labour union fee, staff and workers’ education fee 23,403,503 26,939,926 (18,983,623) 31,359,806
Others - 69,405,139 (69,405,139) -
Total 191,160,309 912,098,158 (861,874,008) 241,384,459
(3) Post-employment benefits - defined contribution plans
Balance at 1 Accrued during the Decreased during Balance at 31
January 2020 year the year December 2020
Basic pension insurance 11,489,403 55,939,880 (59,412,804) 8,016,479
Unemployment insurance 302,098 2,775,842 (2,706,456) 371,484
Annuity (969,885) 7,314,175 (6,697,307) (353,017)
Total 10,821,616 66,029,897 (68,816,567) 8,034,946
Balance at 1 Accrued during the Decreased during Balance at 31
January 2019 year the year December 2019
Basic pension insurance 9,772,407 73,613,317 (71,896,321) 11,489,403
Unemployment insurance 206,545 3,449,922 (3,354,369) 302,098
Annuity - 6,186,825 (7,156,710) (969,885)
Total 9,978,952 83,250,064 (82,407,400) 10,821,616
10 Other payables
Note 2020 2019
Dividends payable 6,451,171 6,451,171
Others (1) 6,535,467,510 5,254,019,803
Total 6,541,918,681 5,260,470,974
305
(1) Others
(a) The Company’s other payables by category are as follows:
Note 2020 2019
Amounts due to/from subsidiaries 3,050,656,626 4,739,139,471
Equity acquisition fee VI. 1 2,236,488,561 -
Repurchase obligation of restricted shares V. 40 875,333,536 -
Purchase of projects, equipment and intangible
assets 257,829,238 345,872,758
Others 115,159,549 169,007,574
Total 6,535,467,510 5,254,019,803
(b) The Company’s other payables by currency:
2020 2019
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
RMB 5,042,463,687 2,257,788,363
USD 228,735,332 6.5249 1,492,475,170 414,300,937 6.9762 2,890,246,197
JPY 8,364,763 0.0632 528,653 157,972,312 0.0641 10,126,025
Total 6,535,467,510 5,158,160,585
11 Long-term loans
2020 2019
Credited/ Credited/
collateralised collateralised
guaranteed/ guaranteed/
RMB pledged RMB pledged
Bank loans
- RMB 46,207,924,194 Credited 38,801,142,361 Credited
Less: Long-term loans due within one year 7,847,210,073 Credited 5,490,440,787 Credited
Total 38,360,714,121 33,310,701,574
The interest rate of RMB long-term loans for the Company ranged from 0% to 4.75% in 2020 (2019: 0% to 4.75%).
12 Deferred income
Balance at the
beginning of the Additions during the Amounts recognised Balance at the end
Item year year in other income Other changes of the year
- related to assets 4,515,402,780 1,696,830 (903,180,554) (1,696,830) 3,612,222,226
- related to income 111,990,476 11,567,200 (12,437,456) (90,000,000) 21,120,220
Total 4,627,393,256 13,264,030 (915,618,010) (91,696,830) 3,633,342,446
306
13 Capital reserve
Other capital
Item Share premium reserves Total
Balance at the beginning of the year 37,546,517,053 61,522,632 37,608,039,685
Add: Other movements in equity of associates - 33,304,404 33,304,404
Equity-settled share-based payments - (945,264,723) (945,264,723)
Balance at the end of the year 37,546,517,053 (850,437,687) 36,696,079,366
14 Other comprehensive income
Item Movements during the year
Add: Transfer of
other
Balance at the comprehensive
beginning of the Less: Income tax income to retained Balance at the end
year Before-tax amount expense earnings of the year
Items that will not be reclassified to profit or
loss 193,638,576 138,168,402 2,048,272 (239,057,408) 90,701,298
Including: Other comprehensive income
recognised under equity method 308,766,264 136,381,254 - (250,925,408) 194,222,110
Changes in fair value of investments
in other equity instruments (115,127,688) 1,787,148 2,048,272 11,868,000 (103,520,812)
Items that may be reclassified to profit or loss - 11,835 - - 11,835
Total 193,638,576 138,180,237 2,048,272 (239,057,408) 90,713,133
15 Retained earnings
Item 2020 2019
Retained earnings at the beginning of the year (before adjustment) 4,781,488,839 Not applicable
Add: Changes in accounting policies 4,805,155,027 Not applicable
Retained earnings at the beginning of the year (after adjustment) 9,586,643,866 2,609,929,782
Add: Net profits for the year 3,739,191,584 3,685,564,456
Less: Appropriation for statutory surplus reserve 373,919,158 368,556,446
Interest on holders of other equity instruments 485,925,480 56,109,589
Dividends to ordinary shares 695,967,975 1,043,951,963
Transfer of other comprehensive income to retained
earnings (215,151,667) 45,387,401
Effect of accounting for disposal of subsidiaries to equity
method 31,086,473 -
Retained earnings at the end of the year 11,954,088,031 4,781,488,839
307
16 Operating income
2020 2019
Item Income Income
Principal activities 3,850,224,763 4,103,362,231
Other operating activities 691,451,432 682,025,488
Total 4,541,676,195 4,785,387,719
Including: Income related to the new revenue standard 4,418,761,325 Not applicable
Revenue related to the lease standard 122,914,870 Not applicable
Details of operating income:
2019
Operating income from principal activities
- Technology development income 4,103,362,231
Other operating income
- Rental income of investment properties 122,723,329
- Others 559,302,159
Total 4,785,387,719
17 Taxes and surcharges
2020 2019
Property tax 29,195,630 33,323,560
Land use tax 2,834,360 2,849,332
Stamp duty 7,909,675 4,682,297
City maintenance and construction tax 405,990 353,192
Education surcharges and local education surcharges 289,993 252,276
Others 253,948 27,864
Total 40,889,596 41,488,521
308
18 Research and development expenses
2020 2019
Staff cost 686,052,717 544,087,165
Material expenses 70,093,725 74,036,997
Depreciation and amortisation 221,602,752 242,794,178
Commissioned and cooperative development 533,483,606 853,951,463
Others 591,662,325 469,881,484
Total 2,102,895,125 2,184,751,287
19 Financial expenses
2020 2019
Interest expenses from loans 970,259,855 934,776,554
Interest income from bank deposits (37,793,976) (41,156,445)
Net exchange (income)/losses (17,019,010) 7,509,490
Other financial expenses 1,091,676 2,751,033
Total 916,538,545 903,880,632
20 Other income
2020 2019
Government grants related to assets 903,180,554 901,541,269
Government grants related to income 67,808,613 43,858,943
Total 970,989,167 945,400,212
The amount of government grants received by the Company in 2020 and directly included in other income was RMB 55,371,157.
309
21 Investment income
2020 2019
Income from long-term equity investments accounted
for using cost method 1,608,291,389 1,889,790,465
Income from long-term equity investments accounted
for using equity method 416,901,621 244,595,829
Investment income from disposal of long-term equity
investments 401,239,648 49,028,075
Dividend income from investments in other equity instruments 3,252,444 2,354,733
Including: Dividend income from investments in other equity
instruments derecognised during the year - 471,354
Dividend income from investments in other equity
instruments held at the balance sheet date 3,252,444 1,883,379
Total 2,429,685,102 2,185,769,102
22 Income tax expenses
Note 2020 2019
Current tax expense for the period based on tax law and
regulations 449,586,180 313,149,954
Changes in deferred tax assets/liabilities (1) (198,212,508) (82,338,912)
Total 251,373,672 230,811,042
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
2020 2019
Origination and reversal of temporary differences (198,212,508) (82,338,912)
310
(2) Reconciliation between income tax expenses and accounting profit:
Item 2020 2019
Profit before taxation 3,990,565,256 3,916,375,498
Expected income tax expense at tax rate of 15% 598,584,788 587,456,325
Add: Non-deductible expenses 47,469,071 5,063,076
Non-taxable income (304,718,886) (279,640,682)
Tax deduction for R&D activities (89,961,301) (74,503,110)
Others - (7,564,567)
Income tax expenses 251,373,672 230,811,042
23 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
2020 2019
(a) Reconciliation of net profit to cash flows from operating
activities:
Net profit 3,739,191,584 3,685,564,456
Add: Credit losses 5,376,889 62,558,750
Impairment losses - 32,000,000
Depreciation of fixed assets and investment
properties 135,264,681 122,776,599
Amortisation of intangible assets 165,094,127 180,015,643
Amortisation of long-term deferred expenses 36,414,535 34,805,818
Financial expenses 1,044,078,606 996,740,951
Investment income (2,429,685,102) (2,185,769,102)
Changes in deferred revenue tax assets and
liabilities (196,164,236) (69,473,918)
Increase in gross inventories (4,686,882) (4,646,260)
(Increase)/ Decrease in operating receivables (1,521,836,219) 465,794,325
Decrease in operating payables (857,601,770) (869,099,802)
Net cash inflow from operating activities 115,446,213 2,451,267,460
311
(b) Net changes in cash and cash equivalents:
2020 2019
Cash and cash equivalents at the end of the year 4,360,065,216 3,680,770,048
Less: Cash and cash equivalents at the beginning of the
year 3,680,770,048 3,829,814,050
Net increase / (decrease) in cash and cash equivalents 679,295,168 (149,044,002)
(2) Details of cash and cash equivalents
2020 2019
Cash on hand 22,596 22,936
Bank deposits available on demand 4,360,042,620 3,680,747,112
Closing balance of cash and cash equivalents 4,360,065,216 3,680,770,048
Note: Cash and cash equivalents disclosed above exclude other monetary fund with restricted usage.
24 Assets with restrictive ownership title
As at 31 December 2020, the Company has no assets with restrictive ownership title.
312
XVI. Extraordinary gains and losses in 2020
2020 2019
Investment income from disposal of long-term equity
investments 376,344,290 48,846,682
Losses from disposal of non-current assets (2,912,119) (28,506,546)
Government grants recognised through profit or loss
(excluding those that are closely related to the normal
business operations of the Company and that are in
compliance with national policies and are subject to
constant or fixed amount according to certain
standards) 2,332,107,692 2,640,634,861
Gains or losses arising from changes in fair value of
financial assets held for trading, and investment
income from disposal of financial assets held for
trading 82,698,484 112,668,244
Reversal of provision for bad and doubtful debts of
receivables assessed on an individual basis 15,447,820 1,498,805
Other non-operating income and expenses besides items
above 65,391,368 96,799,305
Other items qualified as extraordinary gain and loss Note 2 - 795,126,980
Less: Tax effect 185,966,533 285,904,312
Total 2,683,111,002 3,381,164,019
Including: Extraordinary gains affecting net profit of
equity shareholders of the Company 2,365,173,118 3,085,437,188
Extraordinary gains affecting net profit of
equity shareholders of the
non-controlling shareholders 317,937,884 295,726,831
Note 1: Extraordinary gain and loss items listed above are presented in the amount before taxation.
Note 2: The Company’s capital commitment and conversion obligations to non-controlling interests of Hefei Xinsheng are included
in financial liabilities in accordance with the relevant accounting standards for financial instruments. In 2019, the Company
signed an "Equity Transfer Agreement" with Hefei Heping Investment Co., Ltd. ("Hefei Heping") that the Company agreed to
receive 15.3846% of equity interest in Hefei Xinsheng held by Hefei Heping, after which, Hefei Xinsheng becomes a
wholly-owned subsidiary of the Company. According to the requirements of the Accounting Standard, the difference of RMB
795,126,980 between the cash payment and the book value of this financial liability is included in the current profit and loss.
313
XVII. Return on net assets and earnings per share
In accordance with “Regulation on the Preparation of Information Disclosures by Companies Issuing Securities No.9 – Calculation
and Disclosure of the Return on Net Assets and Earnings Per Share” (2010 revised) issued by the CSRC and relevant accounting
standards, the Group’s return on net assets and earnings per share are calculated as follows:
Weighted average
return on net assets Basic earnings per Diluted earnings per
Profit for the reporting period (%) share share
Net profit attributable to the Company’s ordinary
equity
shareholders 5.15% 0.13 0.13
Net profit excluding extraordinary gain and loss
attributable to the Company’s ordinary equity
shareholders 2.47% 0.06 0.06
1 Calculation of earnings per share
(1) Basic earnings per share
For calculation of the basic earnings per share, refer to Note V.58.
(2) Basic earnings per share excluding extraordinary gain and loss
Basic earnings per share excluding extraordinary gain and loss is calculated as dividing consolidated net profit excluding
extraordinary gain and loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares
outstanding:
2020 2019
Consolidated net profit attributable to ordinary shareholders of the
Company 4,549,702,472 1,862,534,282
Extraordinary gains and losses attributable to ordinary shareholders of
the Company 2,365,173,118 3,085,437,188
Consolidated net profit excluding extraordinary gain and loss
attributable to the Company’s ordinary equity shareholders 2,184,529,354 (1,222,902,906)
Weighted average number of ordinary shares outstanding 34,684,107,122 34,798,398,763
Basic earnings per share excluding extraordinary gain and loss
(RMB/share) 0.06 (0.04)
314
2 Calculation of weighted average return on net assets
(1) Weighted average return on net assets
Weighted average return on net assets is calculated as dividing consolidated net profit attributable to ordinary shareholders of the
Company by the weighted average amount of consolidated net assets:
2020 2019
Consolidated net profit attributable to ordinary shareholders of the
Company 4,549,702,472 1,862,534,282
Weighted average amount of consolidated net assets 88,422,792,378 86,381,158,426
Weighted average return on net assets 5.15% 2.16%
Calculation of weighted average amount of consolidated net assets is as follows:
2020 2019
Consolidated net assets at the beginning of the year 87,044,972,202 85,849,388,234
Effect of consolidated net profit attributable to ordinary shareholders
of the Company 2,274,851,236 931,267,141
Effect of repurchase of treasury shares (666,258,231) -
Distribution of profits to ordinary shareholders (347,983,988) (521,975,982)
Effect of change in shareholding ratio of subsidiaries 24,957,407 4,049,092
Effect of movements in amounts attributable to ordinary shareholders
of the Company 92,253,752 183,465,298
Weighted average amount of consolidated net assets 88,422,792,378 86,446,193,783
(2) Weighted average return on net assets excluding extraordinary gain and loss
Weighted average return on net assets excluding extraordinary gain and loss is calculated as dividing consolidated net profit
excluding extraordinary gain and loss attributable to ordinary shareholders of the Company by the weighted average amount of
consolidated net assets:
2020 2019
Consolidated net profit excluding extraordinary gain and loss
attributable to the Company’s ordinary equity shareholders 2,184,529,354 (1,222,902,906)
Weighted average amount of consolidated net assets 88,422,792,378 86,446,193,783
Weighted average return on net assets excluding extraordinary gain
and loss 2.47% (1.41%)
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Part XIII 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: 9th April 2021
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