BOE Technology Group Co., Ltd. Interim Report 2023
INTERIM REPORT 2023
August 2023
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BOE Technology Group Co., Ltd. Interim Report 2023
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referred
to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the
contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Mr. Chen Yanshun, the Company’s legal representative, Mr. Gao Wenbao, President, Ms. Yang
Xiaoping, Chief Financial Officer, and Mr. Teng Jiao, head of the financial department
(equivalent to financial manager) hereby guarantee that the Financial Statements carried in
this Report are factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report and
its summary.
Any plans for the future, development strategies and other forward-looking statements
mentioned in this Report and its summary shall NOT be considered as absolute promises of the
Company to investors. Therefore, investors are reminded to exercise caution when making
investment decisions. For further information, see “(X) Risks Facing the Company and
Countermeasures” in Part III herein.
The Company has no interim dividend plan, either in the form of cash or stock.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions shall
prevail.
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BOE Technology Group Co., Ltd. Interim Report 2023
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 6
Part III Management Discussion and Analysis ............................................................................. 10
Part IV Corporate Governance ...................................................................................................... 27
Part V Environmental and Social Responsibility .......................................................................... 29
Part VI Significant Events ............................................................................................................... 34
Part VII Share Changes and Shareholder Information ............................................................... 46
Part VIII Preferred Shares .............................................................................................................. 54
Part IX Bonds ................................................................................................................................... 55
Part X Financial Statements ........................................................................................................... 58
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BOE Technology Group Co., Ltd. Interim Report 2023
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: 25 August 2023
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BOE Technology Group Co., Ltd. Interim Report 2023
Definitions
Term Definition
“BOE”, the “Company”, the “Group” BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where the
or “we” context otherwise requires
The cninfo website http://www.cninfo.com.cn/
CSRC The China Securities Regulatory Commission
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
TFT-LCD Thin Film Transistor Liquid Crystal Display
AMOLED Active-matrix Organic Light Emitting Diode
Microdisplay Microdisplay technology
VR/AR Virtual Reality /Augmented Reality
IoT Internet of Things
A type of radiation that can pass through objects that are not transparent and make it
X-ray
possible to see inside them
MEMS Micro-Electro-Mechanical System
MLED Mini/Micro LED
Mini/Micro LED Submillimeter/Micro Light Emitting Diode
DMS Driver Monitor System
LCD Liquid Crystal Display
NB Notebook
TV Television
OLED Organic Light Emitting Diode
BOE’s homegrown display technology, with multiple competitive edges such as Ultra
UB Cell
Black, Ultra Brightness and Ultra Brilliance
Gaming Gaming monitor
Oxide A compound of oxygen and another chemical element
QHD Quad High Definition (2560 x 1440)
SID The Society for Information Display
COE Colorfilter On Encapsulation
LTPO Low Temperature Polycrystalline Oxide
CDIA China Display Industry Award
IFI IFI Claims
WIPO World Intellectual Property Organization
PCT Patent Cooperation Treaty
ITU International Telecommunication Union
P2P Peer-to-peer
Standard H.629.1: Scenarios, Framework and Metadata for Digitalized Artwork Images
H.629.1
Display System approved by the International Telecommunication Union
IDTRE Integration of digital technologies and the real economy
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BOE Technology Group Co., Ltd. Interim Report 2023
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name BOE-A, BOE-B Stock code 000725, 200725
Changed stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 京东方科技集团股份有限公司
Abbr. (if any) 京东方
Company name in English (if any) BOE TECHNOLOGY GROUP CO., LTD.
Abbr. (if any) BOE
Legal representative Chen Yanshun
II Contact Information
Item Board Secretary Securities Representative
Name Liu Hongfeng Luo Wenjie
12 Xihuan Middle Road, Beijing Economic- 12 Xihuan Middle Road, Beijing Economic-
Address Technological Development Area, Beijing, Technological Development Area, Beijing,
P.R.China P.R.China
Tel. 010-64318888 ext. 010-64318888 ext.
Fax 010-64366264 010-64366264
Email address liuhongfeng@boe.com.cn luowenjie@boe.com.cn
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address, email
address and other contact information of the Company in the Reporting Period.
Applicable □ Not applicable
Registered address 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China
Zip code 100015
12 Xihuan Middle Road, Beijing Economic-Technological Development
Office address
Area, Beijing, P.R.China
Zip code 100176
Company website www.boe.com
Email address ir@boe.com.cn
Date when the announcement on the information
change (if any) was disclosed on the designated 28 March 2023
website
See Announcement No. 2023-011 on the Change of the Company’s Email
Index to the announcement on the information
Address, which has been disclosed on http://www.cninfo.com.cn dated 28
change (if any) disclosed on the designated website
March 2023
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BOE Technology Group Co., Ltd. Interim Report 2023
2. Media for Information Disclosure and Place where this Report is Lodged
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s
periodic reports in the Reporting Period.
□ Applicable Not applicable
The website of the stock exchange, the media and other website where the Company’s periodic reports are disclosed, as well as the
place for keeping such reports did not change in the Reporting Period. The said information can be found in the 2022 Annual Report.
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable Not applicable
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
Yes □ No
Reason for retrospective restatement:
Change of accounting policy.
H1 2022 Change (%)
Item H1 2023
Before Restated Restated
Operating revenue (RMB) 80,177,875,220.00 91,610,241,869.00 91,610,241,869.00 -12.48%
Net profit attributable to the listed
735,809,609.00 6,595,661,738.00 6,595,661,738.00 -88.84%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -1,584,440,291.00 4,239,456,093.00 4,239,456,093.00 -137.37%
exceptional gains and losses (RMB)
Net cash generated from/used in
16,243,669,123.00 28,112,000,665.00 28,112,000,665.00 -42.22%
operating activities (RMB)
Basic earnings per share (RMB/share) 0.02 0.17 0.17 -88.24%
Diluted earnings per share (RMB/share) 0.02 0.17 0.17 -88.24%
Weighted average return on equity (%) 0.50% 4.80% 4.80% -4.30%
31 December 2022 Change (%)
Item 30 June 2023
Before Restated Restated
Total assets (RMB) 409,414,907,091.00 420,562,103,212.00 420,567,865,936.00 -2.65%
Equity attributable to the listed
129,031,756,302.00 136,089,410,395.00 136,079,680,294.00 -5.18%
company’s shareholders (RMB)
Reason for accounting policy change and correction of accounting error:
As required by Interpretation No. 16 for the Accounting Standards for Business Enterprises issued by the Ministry of Finance, the
Group has retrospectively restated relevant financial statement items at the beginning of the year and in the same period of last year.
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BOE Technology Group Co., Ltd. Interim Report 2023
The said changes of accounting policies have no significant impact on the Company’s financial condition and operating results.
V Accounting Data Differences under China’s Accounting Standards for Business Enterprises
(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting
Standards
1. Net Profit and Net Asset Differences under CAS and IFRS
□ Applicable Not applicable
No such differences for the Reporting Period.
2. Net Profit and Net Asset Differences under CAS and Foreign Accounting Standards
□ Applicable Not applicable
No such differences for the Reporting Period.
VI Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets (inclusive of impairment
-8,863,349.00 N/A
allowance write-offs)
Tax rebates, reductions and exemptions given with ultra vires approval or in
0.00 N/A
lack of official approval documents
Government subsidies charged to current profit or loss (exclusive of
government subsidies consistently given in the Company’s ordinary course of
2,720,705,196.00 N/A
business at fixed quotas or amounts as per governmental policies or
standards)
Capital occupation charges on non-financial enterprises that are charged to
0.00 N/A
current profit or loss
Gain equal to the amount by which investment costs for the Company to
obtain subsidiaries, associates and joint ventures are lower than the
0.00 N/A
Company’s enjoyable fair value of identifiable net assets of investees when
making investments
Gain or loss on non-monetary asset swaps 0.00 N/A
Gain or loss on assets entrusted to other entities for investment or
0.00 N/A
management
Allowance for asset impairments due to acts of God such as natural disasters 0.00 N/A
Gain or loss on debt restructuring 0.00 N/A
Restructuring costs in staff arrangement, integration, etc. 0.00 N/A
Gain or loss on the over-fair value amount as a result of transactions with
0.00 N/A
distinctly unfair prices
Current profit or loss on subsidiaries obtained in business combinations
involving enterprises under common control from the period-beginning to 0.00 N/A
combination dates, net
Gain or loss on contingencies that do not arise in the Company’s ordinary
0.00 N/A
course of business
Gain or loss on fair-value changes in held-for-trading financial assets and
211,275,427.00 N/A
liabilities & income from disposal of held-for-trading financial assets and
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BOE Technology Group Co., Ltd. Interim Report 2023
liabilities and available-for-sale financial assets (exclusive of the effective
portion of hedges that arise in the Company’s ordinary course of business)
Reversed portions of impairment allowances for receivables which are tested
14,453,653.00 N/A
individually for impairment
Gain or loss on loan entrustments 0.00 N/A
Gain or loss on fair-value changes in investment property of which
0.00 N/A
subsequent measurement is carried out using the fair value method
Effects of all adjustments required by taxation, accounting and other
0.00 N/A
applicable laws and regulations on current profit or loss
Income from charges on entrusted management 0.00 N/A
Non-operating income and expense other than the above 185,555,680.00 N/A
Other gains and losses that meet the definition of exceptional gain/loss 0.00 N/A
Less: Income tax effects 114,191,959.00 N/A
Non-controlling interests effects (net of tax) 688,684,748.00 N/A
Total 2,320,249,900.00
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.
1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable Not applicable
No such cases for the Reporting Period.
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BOE Technology Group Co., Ltd. Interim Report 2023
Part III Management Discussion and Analysis
I Principal Operations of the Company in the Reporting Period
(I) About the Company
In constant pursuit of excellence, BOE Technology Group Co., Ltd. is an innovative IoT company dedicated to providing intelligent
interface products and professional services for information interaction and human health.
With the vision “To Be the Most Respected Company on Earth”, BOE has always been adhering to the mission of “Change Life with
Heart”. Upholding the core values of integrity & reliability, dedication to customers, being people-oriented, openness and innovation,
as well as the business philosophy of doing the right thing, innovation and progress seeking, it has been forging ahead through
innovation. Upon three decades of hard work, BOE has grown into a world leader in the semiconductor display industry and a global
innovative company in the IoT sector. At present, it has a significant number of manufacturing bases in Beijing, Hefei, Chengdu,
Chongqing, Fuzhou, Mianyang, Wuhan, Kunming, Ordos, etc., with subsidiaries in the United States, Germany, Japan, South Korea,
Singapore, India, Brazil, the United Arab Emirates and other countries and regions, as well as a service system that covers the major
regions of the world, such as Europe, Americas, Asia, and Africa.
In March 2023, BOE was selected as one of the “Demonstration World-Class Enterprises”. In full compliance with the requirements
of “excellent products, outstanding brand, leading innovation and modern governance” for a world-class enterprise, it is committed to
making good products, creating high value, and providing better products and services for customers with continuous innovation in the
IoT era.
(II) About the Company’s principal operations
1. The Display Devices business
The Display Devices business offers integrated design and manufacturing services for devices, and is committed to providing interface
devices applying TFT-LCD, AMOLED, Microdisplay and other technologies, focusing on providing customers with high-quality
display devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicles, VR/AR devices, etc.
2. The IoT Innovation business
The IoT Innovation business offers integrated design and manufacturing services for system solutions, and provides customers with
competitive smart terminal products for TVs, monitors, laptops, tablets, low-power devices, IoT, 3D display, etc. Backed by AI and
big data technologies, it focuses on products and services combining hardware and software, providing integrated IoT solutions for
segments including smart industrial parks, smart finance, etc.
3. The Sensor business
The Sensor and Solution business offers integrated design and manufacturing services for glass- and silicon-based system solutions,
focuses on medical imaging, smart display windows, innovative glass-based sensor devices, industrial applications, consumer
electronics, automotive electronics and other fields, and provides customers with products and solutions including back plates for flat
panel X-ray detectors (FPXD), intelligent PDLC windows and PDLC system solutions, industrial sensors and solutions, and MEMS
sensors, among others.
4. The MLED business
MLED business renders MLED backlight products with high reliability and high partition of dimming for LCD of TVs, monitors,
notebooks, vehicles, VR/AR devices, etc., as well as Mini/Micro-LED display products with high brightness, high reliability and high
contrast for segment markets of outdoor, commercial, transparent, specialized and other displays. All these products are designed and
manufactured in an integrated manner.
5. The Smart Medical Engineering business
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BOE Technology Group Co., Ltd. Interim Report 2023
The Smart Medical Engineering business adopts the professional service model that integrates technologies and medical services in an
innovative manner to provide people-oriented health services for households, communities and hospitals. It provides a closed loop of
through-life health services with health management as the core, medical terminals as the traction, and digital hospitals and recreational
communities as the support. It connects testing equipment, healthcare workers and customers through the smart health management
ecosystem where customers enjoy professional health services including prevention, treatment, therapy and nursing.
6. The “N” business
With a specific focus on the "N" business, the Company provides hardware and software integrated system solutions for different
segments, including smart vehicle connection, industrial IoT, digital art, etc., which can provide customers with all-dimensional, one-
stop and smart new experience under IoT scenarios. For example, in terms of smart vehicle connection, the business integrates DMS,
gesture recognition, touch feedback, naked-eye 3D and other cutting-edge functions, focuses on the intelligent cockpit "HERO"
innovative application scenarios that include four dimensions of health, entertainment, leisure, and office, and provides customers with
professional integrated solutions, which can bring a new and more intelligent driving experience. The industrial IoT business provides
enterprises with solutions, products, and services like smart production, smart factory, and cloud services. Relying on its self-developed
industrial Internet platform, it helps realise refined operation and management and achieve cost reduction and efficiency enhancement
from all procedures of design, supply, production, and sales, offering all-dimensional, one-stop and smart industrial IoT solutions to
customers and empowering customers in their digital transformation. In the field of digital artworks, the business adheres to "culture +
technology" cross-field integration and innovation, launches the "one million digital culture experience scenario programme" around
International Standard H.629.1 for digital art display, and join hands with partners at the content-, technology- and application-ends,
so as to empower culture with display products and solutions with more functions and forms and better experience.
II Core Competitiveness Analysis
1. Clear development strategy and sustainable value growth system
Based on years of practical exploration in the semiconductor display and Internet of Things (IoT) industry, the Company has proposed
the strategy of "Empower IoT with display" that is suitable for the transformation and development of its IoT. It regards "screen" as an
important port for human information interaction and the first channel that shows the integration of digital and real world in the IoT
era, seizing the ubiquitous growth opportunities of "screen", and fully leveraging its core advantage of "screen" to work with partners
to continuously expand the application capabilities of "screen" by integrating more functions, deriving more forms, and inserting more
scenarios. In this way, the Company will achieve the user perception revolution of "screen as terminal" in the digital era, build an
industrial ecology of "screen as platform and screen as system", and reshape the value growth model.
Guided by the strategy of "Empower IoT with display", the Company has established a value creation system for the entire industry
chain, from display panels to smart terminals to system solutions. With the strongest product competitiveness and system integration
ability in the industry, it meets the diversified needs of customers and achieves a transformation from "single device value creation" to
"Empower IoT with display entire industry chain value creation", from "independent company value creation" to "synergistic ecological
value creation", strengthening the synergistic empowerment effect of industrial ecology, and promoting the construction of a new value
growth system.
2. Stable market position and agile market responsiveness
The Company keeps following the trend of digitalisation and intelligence in industrial development, with a keen eye to capture customer
needs, track market dynamics, and seek new development opportunities and market breakthroughs on top of its existing business. While
stabilizing its position in its principal business markets, the Company continues to strengthen its market development capabilities and
explore new business growth opportunities.
In the first half of 2023, BOE continued to maintain its leading position in the display market, with its shipment volume in LCD displays
and five major applications remaining the largest in the world. Meanwhile, due to its continuous optimisation of product mix, the
shipment volume of its advantageous high-end flagship products remained on the rise, with extra large-sized products (≥ 85") achieving
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BOE Technology Group Co., Ltd. Interim Report 2023
the world's largest shipment volume. In the OLED sector, the Company's shipment volume of flexible AMOLEDs increased
significantly, with more than 50 million units sold within six months, an increase of nearly 80% year-on-year.
The Company's ongoing efforts in driving the IoT transformation continue to bear fruit in terms of market expansion. The shipment
volume of whiteboards, splicing products and other products ranked first in the world. The system solution business has been promoted
in an orderly manner, and the comprehensive management platform for smart financial outlets has been put into operation at the smart
outlets of China Minsheng Bank, Postal Savings Bank of China, Bank of Beijing and other banks. The construction of smart industrial
parks for benchmark projects such as the Mangrove Tree Resort World Qingdao and the Dream Langfang has been successfully
delivered. Revenues in the sensor business continued to grow in the first half of the year, and the mass production and delivery of the
first fibre optic colour sensor was achieved. The MLED overseas market has been actively expanded and orders have been signed with
countries in South America and the Middle East. The core capabilities and performance of the digital hospital improved significantly,
with the total outpatient volume exceeding 585,000, up more than 63% year on year. The total discharge volume exceeded 26,000, up
more than 97% year on year. The number of Zhongxiangying's new external customers increased by more than 40% year on year.
3. Solid technological foundation and outstanding innovation capability
Persisting in driving the development with technological innovation, the Company has built a technology architecture of "Empower
IoT with display" that is suitable for the transformation and development of its IoT, including device layer, terminal layer, platform
layer, and application layer. With a systematic technological innovation capability that integrates software and hardware, provides key
support for the value extension of its "device - terminal - scenario".
In terms of technology and products, the Company has accelerated the upgrade of its UB Cell and Oxide LCD technologies in the
display sector and has achieved breakthroughs in Gaming high-end flagship products. The NB QHD 240Hz Mini LED product with
mega contrast ratio has been listed as a customer flagship model. In addition, the 110" UB Cell LCD technology has won the SID Best
LCD-Based Technology, and the flexible OLED high-end foldable products with COE+LTPO technology have been exclusively for
brand customers. In terms of IoT innovation, BOE has become the first company in the industry to release a 16K video restoration
solution that solves the industry pain points of 16K image generation and playback and enables detailed light and shadow
representation. In terms of sensor technology, BOE has achieved mass production and delivery of its first fibre optic colour sensor with
industry-leading specifications such as product recognition capability and response time. In terms of MLED, BOE's 65" and 8K TV
backlight products won the "CDIA Bronze Award for Best Innovative Display Component of the Year" in 2023. With continuous
technological breakthroughs, the Company was once again selected as one of the "Top 100 Global Innovators" by Clarivate Analytics
in February 2023, further demonstrating its innovation strength and technological leadership as an industry leader.
In terms of patents, in the first half of the year, the number of new patent applications exceeded 3,900, including more than 90% for
inventions and over 30% for overseas patents. Patent applications in respect of flexible OLEDs, sensors, artificial intelligence (AI) and
other sectors exceeded 2,100 and accounted for more than 50%. The Company ranked 11th worldwide in Global U.S. Patent Licensing
Ranking issued by IFI in January 2023, and it has also been among the global top 20 for five consecutive years. The Company ranked
seventh worldwide in Global PCT Patent Application Ranking issued by World Intellectual Property Organization (WIPO) in February
2023, and it has been among the global top 10 for seven consecutive years. In terms of technical standards, two international standard
proposals, namely the world's first fingerprint recognition test method and the flexible curling display flattening force test method,
have been formally approved by the International Electrotechnical Commission (IEC) in the electronic display sector, filling a gap of
the Company in related sectors. An international standard for ITU ultra-high definition teleconsulting system and two P2P national
standards have been issued. Besides, two group standards for Mini LED backlight LCD display and ultra-high definition TV variable
frequency display have been issued at the 2023 Fourth Global Mini/Micro LED Display Technology Week and the 2023 World Ultra-
High Definition Video Industry Development Conference.
4. Efficient lean management capability and comprehensive digital management system
The Company is committed to promoting the upgrading of its management system and creating a long-term leading global competitive
edge. In terms of operational management, it keeps improving the platform-based organisational design and optimises the operational
management system of "three offices and three managements". The Company combines the organisational mechanism of an agile front
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BOE Technology Group Co., Ltd. Interim Report 2023
office, an intensive middle office, and an efficient back office with key measures such as strategy, procedures and performance to
continuously strengthen the coordinated operation of the three offices and increase the Company's operational efficiency. In terms of
project management, the Company has innovatively established a five level management mechanism, clarifying the target positioning
and output requirements for each stage of innovation, continuously optimizing the implementation effect of major projects of the Group,
and strengthening management systems such as "linkages between the Group and business", "coordination between target and
execution", and "processes and results traced back to each other". In terms of digital transformation, the Company promotes the efficient
processing of the Group's overall business on the basis of online business process management and continues to promote the
construction of "one digital and visible BOE" with digital transformation projects as breach. In the first half of the year, the Company
issued a new management system for digital transformation projects, optimised the main process of the transformation projects,
clarified the decision-making rules and responsibilities of all parties for pilot, implementation, and closure reviews, improved the
separation mechanism of review and decision-making, and further supported the orderly development of the Company's digital
transformation.
5. Cohesion-oriented corporate culture and value system
2023 marks the 30th anniversary of BOE. In more than 30 years of entrepreneurship and innovation practices, the Company has
developed a series of outstanding corporate culture and core values, which have inspired generations of its employees to continue to
forge ahead. The Company sticks to the establishment of the cultural atmosphere that refers to "step forward and bear your
responsibilities bravely, use your time efficiently, and innovate proactively without fear of hardship" and guides its employees to work
and develop their career under the principles of "scholar wisdom, commercial thinking, and chivalrous bearing", "observe the problem
and bear the responsibility from an overall point of view, think from a different point of view and clarify the responsibilities of each
position, dare to raise problems and help solve them", and so on. Thus, "three virtues" and "five spirits" can be formed. "Three virtues"
refers to the gratitude for building ideal and belief oriented and sustainable entrepreneurial organisations, the awe for building
sustainable innovation and learning oriented organisations, and the transcendence for building organisations with large talent tanks,
while "five spirits" refer to backbone, ambition, courage, morale, and confidence. In the face of the opportunities and challenges of the
Company's new development era, all BOE members will continue to carry on and promote the excellent corporate culture and values
and work tirelessly to achieve the vision of “To Be the Most Respected Company on Earth”.
III Analysis of Core Businesses
Overview:
See contents under the heading “I Principal Activity of the Company in the Reporting Period” above.
Year-on-year changes in key financial data:
Unit: RMB
Item H1 2023 H1 2022 Change (%) Main reason for change
Operating revenue 80,177,875,220.00 91,610,241,869.00 -12.48% N/A
Cost of sales 72,933,845,456.00 74,499,068,362.00 -2.10% N/A
Selling expense 1,927,463,296.00 1,862,479,468.00 3.49% N/A
Administrative
2,733,334,581.00 2,948,599,229.00 -7.30% N/A
expense
Increased interest income and net
Finance costs 436,869,094.00 654,112,804.00 -33.21% exchange gains in the Reporting
Period
Decreased earnings in the
Income tax expense 820,532,936.00 1,681,324,244.00 -51.20%
Reporting Period
R&D investments 5,817,182,841.00 5,689,976,471.00 2.24% N/A
Net cash generated
16,243,669,123.00 28,112,000,665.00 -42.22% Decreased sales in the Reporting
from/used in operating
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BOE Technology Group Co., Ltd. Interim Report 2023
activities Period
Net cash generated Increased net cash inflows from
from/used in investing -2,022,756,127.00 -22,841,690,510.00 91.14% investments in wealth management
activities products in the Reporting Period
Decreased cash inflows from
Net cash generated
borrowings received and repayment
from/used in financing -18,815,007,770.00 -3,178,244,904.00 -491.99%
activities of perpetual bonds in the Reporting
Period
Decreased cash inflows from
Net increase in cash borrowings received and repayment
-3,793,720,888.00 3,181,592,619.00 -219.24%
and cash equivalents of perpetual bonds in the Reporting
Period
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable Not applicable
No such changes in the Reporting Period.
Breakdown of operating revenue:
Unit: RMB
H1 2023 H1 2022
Item As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 80,177,875,220.00 100% 91,610,241,869.00 100% -12.48%
By operating division
Display Devices
67,875,605,158.00 84.66% 78,902,161,398.00 86.13% -13.97%
business
IoT Innovation
17,416,958,825.00 21.72% 17,230,638,158.00 18.81% 1.08%
business
Sensor business 183,294,095.00 0.23% 103,681,585.00 0.11% 76.79%
MLED business 457,988,865.00 0.57% 411,634,393.00 0.45% 11.26%
Smart Medical
Engineering 1,353,661,118.00 1.69% 1,044,238,829.00 1.14% 29.63%
business
Others and offset -7,109,632,841.00 -8.87% -6,082,112,494.00 -6.64% 16.89%
By product category
Display Devices
67,875,605,158.00 84.66% 78,902,161,398.00 86.13% -13.97%
business
IoT Innovation
17,416,958,825.00 21.72% 17,230,638,158.00 18.81% 1.08%
business
Sensor business 183,294,095.00 0.23% 103,681,585.00 0.11% 76.79%
MLED business 457,988,865.00 0.57% 411,634,393.00 0.45% 11.26%
Smart Medical
Engineering 1,353,661,118.00 1.69% 1,044,238,829.00 1.14% 29.63%
business
Others and offset -7,109,632,841.00 -8.87% -6,082,112,494.00 -6.64% 16.89%
By operating segment
Mainland China 34,647,943,197.00 43.21% 37,391,483,962.00 40.81% -7.34%
Other regions in
25,141,466,187.00 31.36% 37,757,230,449.00 41.22% -33.41%
Asia
Europe 2,879,703,018.00 3.59% 2,914,549,849.00 3.18% -1.20%
America 17,499,907,821.00 21.83% 13,503,340,713.00 14.74% 29.60%
Other regions 8,854,997.00 0.01% 43,636,896.00 0.05% -79.71%
Operating division, product category or operating segment contributing over 10% of operating revenue or operating profit:
Applicable □ Not applicable
14
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
YoY
YoY YoY change
change in
Gross profit change in in gross
Item Operating revenue Cost of sales operating
margin cost of profit
revenue
sales (%) margin (%)
(%)
By operating division
Display Devices
67,875,605,158.00 63,795,640,147.00 6.01% -13.97% -4.21% -9.58%
business
IoT Innovation
17,416,958,825.00 15,917,582,582.00 8.61% 1.08% 2.39% -1.17%
business
By product category
Display Devices
67,875,605,158.00 63,795,640,147.00 6.01% -13.97% -4.21% -9.58%
business
IoT Innovation
17,416,958,825.00 15,917,582,582.00 8.61% 1.08% 2.39% -1.17%
business
By operating segment
Mainland China 34,647,943,197.00 31,714,542,215.00 8.47% -7.34% 8.12% -13.08%
Other regions in
25,141,466,187.00 23,350,469,032.00 7.12% -33.41% -24.59% -10.87%
Asia
America 17,499,907,821.00 15,214,561,053.00 13.06% 29.60% 31.52% -1.27%
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable Not applicable
IV Analysis of Non-Core Businesses
Applicable □ Not applicable
Unit: RMB
As % of total Recurrent
Item Amount Source/Reason
profit or not
Return on investment 775,299,042.00 - Income recognized from associates Not
Gain/loss on changes -
167,439,034.00 N/A Not
in fair value
- Inventory valuation allowances
Asset impairments -1,056,660,701.00 Not
established based on market conditions
Non-operating income 195,938,361.00 - N/A Not
Non-operating expense 31,666,388.00 - N/A Not
V Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2023 31 December 2022
Change in
As % of As % of Reason for material
Item percentag
Amount total Amount total change
e (%)
assets assets
Monetary
63,920,860,892.00 15.61% 68,800,307,369.00 16.36% -0.75% N/A
assets
Accounts
27,385,120,678.00 6.69% 28,203,647,569.00 6.71% -0.02% N/A
receivable
Contract assets 84,853,547.00 0.02% 71,636,461.00 0.02% 0.00% N/A
Inventories 25,631,092,148.00 6.26% 22,787,814,225.00 5.42% 0.84% N/A
Investment
1,133,922,798.00 0.28% 1,122,025,138.00 0.27% 0.01% N/A
property
Long-term
13,496,498,758.00 3.30% 12,421,878,851.00 2.95% 0.35% N/A
equity
15
BOE Technology Group Co., Ltd. Interim Report 2023
investments
Transfer of new
constructions to fixed
assets in the
Fixed assets 217,485,104,581.00 53.12% 205,987,050,430.00 48.98% 4.14%
Reporting Period,
resulting in increased
fixed assets
Transfer of new
constructions to fixed
assets in the
Construction in
24,587,302,375.00 6.01% 43,386,134,668.00 10.32% -4.31% Reporting Period,
progress
resulting in decreased
construction in
progress
Right-of-use
732,367,564.00 0.18% 687,120,946.00 0.16% 0.02% N/A
assets
Short-term
1,417,656,654.00 0.35% 2,373,938,871.00 0.56% -0.21% N/A
borrowings
Contract
3,063,774,937.00 0.75% 2,411,717,792.00 0.57% 0.18% N/A
liabilities
Long-term
121,134,621,227.00 29.59% 123,143,479,690.00 29.28% 0.31% N/A
borrowings
Lease liabilities 600,388,222.00 0.15% 538,586,010.00 0.13% 0.02% N/A
2. Major Assets Overseas
□ Applicable Not applicable
16
BOE Technology Group Co., Ltd. Interim Report 2023
3. Assets and Liabilities at Fair Value
Applicable □ Not applicable
Unit: RMB
Gain/loss on
Impairment
fair-value Cumulative fair-
allowance for Purchased in the Sold in the
Item Beginning amount changes in the value changes Other changes Ending amount
the Reporting Reporting Period Reporting Period
Reporting charged to equity
Period
Period
Financial assets
1. Held-for-trading
financial assets
(excluding 17,187,993,936.00 117,940,261.00 0.00 0.00 37,184,060,618.00 42,899,497,338.00 0.00 11,595,506,620.00
derivative
financial assets)
2.Derivative
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
financial assets
3. Investments in
other debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
obligations
4. Investments in
other equity 483,060,306.00 0.00 -201,896,700.00 0.00 1,179,686.00 0.00 15,589,954.00 520,058,002.00
instruments
5. Other non-
current financial 2,022,967,681.00 49,498,773.00 0.00 0.00 7,033,758.00 0.00 0.00 2,079,500,212.00
assets
Subtotal of
19,694,021,923.00 167,439,034.00 -201,896,700.00 0.00 37,192,274,062.00 42,899,497,338.00 15,589,954.00 14,195,064,834.00
financial assets
Investment
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
property
Productive living
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
assets
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of the above 19,694,021,923.00 167,439,034.00 -201,896,700.00 0.00 37,192,274,062.00 42,899,497,338.00 15,589,954.00 14,195,064,834.00
Financial
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
liabilities
Contents of other changes:
N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes No
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BOE Technology Group Co., Ltd. Interim Report 2023
4. Restricted Asset Rights as at the Period-End
Unit: RMB
Item Ending carrying value Reason for restriction
Mainly security deposits, and amounts put in pledge
Monetary assets 2,817,459,430.00
for the issuance of notes payable
Endorsed and transferred with right of recourse, and
Notes receivable 29,667,971.00
those put in pledge for the issuance of notes payable
Inventories 0.00 N/A
Fixed assets 129,659,013,078.00 As collateral for guarantee
Intangible assets 1,444,529,663.00 As collateral for guarantee
Construction in progress 2,223,828,526.00 As collateral for guarantee
Investment property 50,727,532.00 As collateral for guarantee
Total 136,225,226,200.00 --
VI Investments Made
1. Total Investments Made
Applicable □ Not applicable
Investments made in this Reporting Investments made in the same period of
Change（%）
Period (RMB) last year (RMB)
492,972,629.00 252,036,272.00 95.60%
2. Significant Equity Investments Made in the Reporting Period
□ Applicable Not applicable
3. Significant Non-Equity Investments Ongoing in the Reporting Period
□ Applicable Not applicable
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BOE Technology Group Co., Ltd. Interim Report 2023
4. Financial Investments
(1) Securities Investments
Applicable □ Not applicable
Unit: RMB
Purch
Account Profit/loss on Sold
Variety Name Cumulative fair ased Fun
ing fair value in this Profit/loss in
of Code of of Initial Beginning value changes in this Ending carrying Accounting ding
measure changes in Report this Reporting
securitie securities securit investment cost carrying value charged to Report value title sour
ment this Reporting ing Period
s ies equity ing ce
model Period Period
Period
Domesti Electr Fair Other equity Self-
c/overse SH600658 onic 90,160,428.00 value 53,614,432.00 0.00 -14,137,913.00 0.00 0.00 728,606.00 76,022,515.00 instrument fund
as stock Zone method investment ed
Bank
Domesti Fair Other equity Self-
of
c/overse HK01963 120,084,375.00 value 91,600,150.00 0.00 -26,699,396.00 0.00 0.00 9,772,660.00 93,384,979.00 instrument fund
Chong
as stock method investment ed
qing
New
Domesti Centu Fair Other equity Self-
c/overse HK01518 ry 140,848,850.00 value 9,098,008.00 0.00 -131,952,448.00 0.00 0.00 0.00 8,896,402.00 instrument fund
as stock Health method investment ed
care
Held-for-
Domesti Fair Self-
trading
c/overse SZ002841 CVTE 299,999,939.00 value 256,525,783.00 39,575,751.00 0.00 0.00 0.00 39,575,751.00 296,101,534.00 fund
as stock method financial ed
assets
Other securities investments
0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
held at the period-end
Total 651,093,592.00 -- 410,838,373.00 39,575,751.00 -172,789,757.00 0.00 0.00 50,077,017.00 474,405,430.00 -- --
(2) Investments in Derivative Financial Instruments
□ Applicable Not applicable
No such cases in the Reporting Period.
20
BOE Technology Group Co., Ltd. Interim Report 2023
5. Use of Funds Raised
Applicable □ Not applicable
(1) Overall Usage of Funds Raised
Applicable □ Not applicable
Unit: RMB’0,000
Proportion
Accumulati of Amount of
Total funds used Total funds Total The usage and
Total funds Accumulative ve funds accumulativ funds raised
Year Way of raising in the Current with usage unused destination of
raised fund used with usage e funds with idle for over
Period changed funds unused funds
changed usage two years
changed
Continuously
used for the
Private placement construction
2021 2,033,260 0 1,867,094 0 0 0.00% 166,166 0
of stocks of equity
investment
project
Renewable
2022 200,000 0 200,000 0 0 0.00% 0 N/A 0
corporate bonds
Total -- 2,233,260 0 2,067,094 0 0 0.00% 166,166 -- 0
Explanation of overall usage of funds raised
The Company raised RMB2,000,000,000 from the above-mentioned offering of perpetual bonds during 2022, and the net proceeds exclusive of issuance costs were RMB1,988,880,000, which
would be used for capital increase to subsidiary and replenishing the working capital. The raised funds have been used up, conforming to the provisions of the prospectus.
The cumulative amount of raised funds through private placement of stocks was RMB20,332,599,995.83, and the net proceeds after deducting issuance costs were RMB19,869,507,400. In the
Reporting Period, the raised funds were used according to project investment plans, conforming to the relevant promise.
(2) Commitment Projects of Fund Raised
Applicable □ Not applicable
Unit: RMB’0,000
Changed or Investment Investmen Accumulative Investment Realized Whether Whether
Committed investment project Committed schedule as Date of reaching
not amount after t amount investment income in reached occurred
and super raise fund investment the period- intended use of
(including adjustment in the amount as of the anticipate significant
arrangement amount the project
partial (1) Reporting the period-end end (3)＝ Reporting d income changes in
21
BOE Technology Group Co., Ltd. Interim Report 2023
changes) Period (2) (2)/(1) Period project
feasibility
Committed investment project
Chengdu BOE Optoelectronics
Not 100,000 100,000 0 100,000 100.00% - - N/A Not
Technology Co., Ltd.
Chongqing BOE Display
Not 90,000 90,000 0 90,000 100.00% - - N/A Not
Technology Co., Ltd.
Supplementing the working
Not 10,000 8,888 0 8,888 100.00% - - N/A Not
capital
Fuzhou BOE Optoelectronics
Not 300,000 300,000 0 300,000 100.00% - - N/A Not
Technology Co., Ltd.
Wuhan BOE Optoelectronics
Not 650,000 650,000 0 650,000 100.00% - - N/A Not
Technology Co., Ltd.
Chongqing BOE Display
Not 600,000 600,000 0 533,834 88.97% December 2023 - N/A Not
Technology Co., Ltd.
Yunnan Chuangshijie
Optoelectronics Technology Not 100,000 100,000 0 0 0.00% January 2024 - N/A Not
Co., Ltd.
Chengdu BOE Hospital Co.,
Not 50,000 50,000 0 50,000 100.00% April 2021 - N/A Not
Ltd.
Supplementing the working
Not 286,951 286,951 0 286,951 100.00% - - N/A Not
capital
Subtotal of committed
-- 2,186,951 2,185,839 0 2,019,673 -- -- 0 -- --
investment project
Super raised funds arrangement
N/A
Total -- 2,186,951 2,185,839 0 2,019,673 -- -- 0 -- --
All raised funds for the committed investment project (22BOEY1) and the committed investment projects (repaying the loans from Fuzhou Urban
Construction Investment Group Co., Ltd. / acquiring 24.06% of equity interests in Wuhan BOE Optoelectronics Technology Co., Ltd. / supplementing the
Describe project by project any working capital by the 2021 private placement of shares) have been put to use. As a result, the Company's main business will be developed, its
failure to meet the schedule or competitiveness will be enhanced, its debt-to-asset ratio will be effectively reduced, its debt paying ability will be strengthened, and its financial position
anticipated income, as well as will be improved.The committed investment project (capital increase in Chengdu BOE Hospital Co., Ltd. and construction) is in the early stage of opening
the reasons (including reasons and has not entered into the operation and profitability period. The committed investment projects (capital increase in Chongqing BOE Display Technology
for inputting “N/A” for Co., Ltd. and construction /capital increase in Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and construction) have not yet reached the
“Whether reached anticipated scheduled useful state
income”) The committed investment project (capital increase in Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and construction) is implemented in three
stages. In the first stage, the Company invests with its own funds. It has realized the production of goods in small batches in 2021 and stable delivery in
2022 which is currently in normal operation. Since the silicon-based OLED industry is in the early stage of rapid development and the technological
22
BOE Technology Group Co., Ltd. Interim Report 2023
innovation is emerging endlessly, the Company successively launches the second and third stages considering the risks of changing technology and market
demand. As of the disclosure date of this Report, the raised funds for the 12-inch silicon-based OLED project has not yet been put into use and will be
invested based on market conditions subsequently.
According to the commitment, the capital injection and construction investment project of Chongqing BOE Display Technology Co., Ltd. will be
implemented in three phases. Of these, Phase I has achieved its design objectives and is continuously scheduled for production based on market demand
and customer introduction. Phase II is in the ramp-up phase, where the equipment parameters need to be gradually adjusted in a timely manner according
to the operation to ensure that the equipment reaches the optimal usage state. In Phase III, equipment transportation, move-in and commissioning have been
delayed to varying degrees because of external factors such as market environment. In addition, due to the rapid update of OLED technology, the factory
has made corresponding adjustments to delay the construction schedule of Phase III to adapt to the pace of key technology upgrades, ensuring that can meet
the latest technological needs.
Notes of condition of significant
changes occurred in project N/A
feasibility
Amount, usage and schedule of
N/A
super raise fund
Changes in implementation
N/A
address of investment project
Adjustment of implementation
N/A
mode of investment project
Applicable
As at 30 June 2023, the funds raised through Phase I of renewable corporate bonds of 2022 were used to swap with advance project investments of RMB1.9
Advance investments in projects billion, of which RMB1 billion was swapped with the advance investment in Chengdu BOE Optoelectronics Technology Co., Ltd. with equity funds, and
financed with raised funds and
the remaining RMB0.9 billion was swapped with the advance investment in Chongqing BOE Display Technology Co., Ltd. with equity funds.
swaps of such advance
investments with subsequent As at 30 June 2023, the Company had replaced the prior invested funds of the committed investment projects with the raised funds from the non-public
raised funds offering of shares for a total amount of RMB6,023.0660 million . Of these, RMB3 billion was to replace the Company's own funds invested in repaying the
loan of Fuzhou Urban Construction Investment Group. RMB250 million was to replace the own funds invested in BOE Health Investment Management
Company Limited, and RMB2,773.0660 million was to replace the own funds invested in Chongqing BOE Display Technology Co., Ltd.
Idle fund supplementing the
N/A
current capital temporarily
Applicable
As at 30 June 2023, the funds raised through the perpetual bonds have been used up, with a balance of RMB0.9284 million in the raised funds account,
Amount of surplus in project
implementation and the reasons which was the interest income generated during the deposit period.
As at 30 June 2023, the balance of the raised funds from the non-public offering of shares was RMB1,731,239,100, representing the unused raised funds
and interest income generated during the deposit period.
There is a balance of RMB0.9284 million in the account of the funds raised through the perpetual bonds, which will be used to pay the interest for the
Usage and destination of unused
bonds; and there is a balance of RMB1,731,239,100 in the account of the funds raised through the private placement, which will be invested step by step in
funds
the projects of Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. and Chongqing BOE Display Technology Co., Ltd.
Problems incurred in fund using
and disclosure or other N/A
condition
23
BOE Technology Group Co., Ltd. Interim Report 2023
(3) Re-purposed Raised Funds
□ Applicable Not applicable
No such cases in the Reporting Period.
VII 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
VIII Main Controlled and Joint Stock Companies
Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
Relationship
Principal activities Operating
Name with the Registered capital Total assets Net assets Operating profit Net profit
revenue
Company
R&D, Production, and sales
of semi-conductor display
Chongqing BOE
device, complete machine,
Optoelectronics
Subsidiary and relevant products; 19,226,000,000.00 54,463,712,495.00 43,787,101,666.00 8,759,248,745.00 1,746,496,542.00 1,482,103,021.00
Technology Co.,
import and export business
Ltd.
and technology consulting
of goods.
Hefei Xinsheng Investment construction,
R&D, Production, and sales
Optoelectronics
Subsidiary of relevant products of TFT- 19,500,000,000.00 36,157,564,923.00 25,757,129,109.00 8,998,785,863.00 779,328,559.00 662,169,017.00
Technology Co., LCD and its matching
Ltd. products.
24
BOE Technology Group Co., Ltd. Interim Report 2023
Investment construction,
Hefei BOE
R&D, Production, and sales
Optoelectronics
Subsidiary of relevant products of TFT- 9,000,000,000.00 22,861,895,334.00 16,501,177,140.00 2,643,124,918.00 366,384,636.00 318,808,062.00
Technology Co.,
LCD and its matching
Ltd.
products.
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BOE Technology Group Co., Ltd. Interim Report 2023
Subsidiaries obtained or disposed in this Reporting Period
Applicable □ Not applicable
How the subsidiary was acquired or Effects on the overall operations and
Name of subsidiary
disposed of performance
Mianyang BOE Electronic Technology
Incorporated with investment No significant effects
Co., Ltd.
Beijing Shiyan Technology Co., Ltd. Incorporated with investment No significant effects
Information about major majority- and minority-owned subsidiaries:
N/A
IX Structured Bodies Controlled by the Company
□ Applicable Not applicable
X Risks Facing the Company and Countermeasures
In the first half of 2023, due to factors such as geopolitics and inflation, the global economic recovery progressed more slowly than
expected and consumer confidence continued to be weak. While there are signs of a rebound in prices of semiconductor display products
as market demand gradually recovers, the future trend of the industry remains uncertain. In the face of a market environment where
opportunities and challenges co-exist, the Company adheres to innovation-driven development strategy and continuously solidifies its
competitive edge. Guided by the strategy of "Empower IoT with display", the company keeps enhancing its capabilities in market
development, technology and product development, supply chain guarantee, and lean management, and accelerates the transformation
of Internet of Things. It actively promotes the construction of a safe and healthy industrial ecosystem that can fully cope with external
environmental impacts
26
BOE Technology Group Co., Ltd. Interim Report 2023
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Meeting Type participation Convened date Disclosure date Meeting resolutions
ratio
The following reports and proposals
were deliberated and approved, i.e.,
Report on the Work of the Board of
Directors for 2022, Report on the
Work of the Board of Supervisors for
2022, Full Annual Report and
Summary for 2022, Financial Final
The 2022 Report for 2022 and Business Plan for
Annual
Annual 2023, Proposal for the Distribution of
General 23.11% 5 May 2023 6 May 2023
General Profits for 2022, Proposal on
Meeting
Meeting Borrowing and Credit Line, Proposal
on the Development of Structured
Deposits and Other Principal-
protected Business, Proposal on the
Appointment of an Audit Agency for
2023, Proposal on Repurchase and
Deregistration of Some Restricted
Shares
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable Not applicable
II Change of Directors, Supervisors and Senior Management
Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Miao Chuanbin Senior management Dismissed 1 March 2023 Voluntary resignation
Xie Zhongdong Senior management Dismissed 31 March 2023 Voluntary resignation
Feng Qiang Senior management Appointed 31 March 2023 Appointed
Guo Huaping Senior management Appointed 31 March 2023 Appointed
Yue Zhanqiu Senior management Appointed 28 April 2023 Appointed
III Interim Dividend Plan
□ Applicable Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
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BOE Technology Group Co., Ltd. Interim Report 2023
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
Applicable □ Not applicable
1. Equity Incentives
The Company held the 15th Meeting of the 9th Board of Directors and the 2nd Extraordinary General Meeting of 2020 on 27 August
2020 and 17 November 2020 respectively and deliberated and approved the 2020 Stock Option and Restricted Stock Grant Program,
in which the Company intends to implement the Equity Incentive Scheme, including both the Stock Option Incentive Scheme and the
Restricted Stock Incentive Scheme. The Company disclosed the Announcement on the Achievement of Lifting the Restriction
Conditions in the First Lifting Restriction Period for Restricted Stocks Granted by the 2020 Stock Option and Restricted Stock Incentive
Scheme and on the Satisfaction of the Exercise Conditions of the First Exercise Schedule of the First Granted Stock Option
(Announcement No.: 2023-020) on 4 April 2023. The lifting of the restriction conditions in the first lifting restriction period for
restricted stocks granted by the 2020 Stock Option and Restricted Stock Incentive Scheme of the Company has been achieved, and the
first exercise schedule of the first granted stock option has satisfied the exercise conditions. A total of 746 awardees met the conditions
for the lifting of the restrictions, resulting in a total of 102,260,780 shares of restricted stock that could be lifted. A total of 1,820
awardees were eligible for stock option exercise, resulting in a total of 183,779,741 shares of stock options available for exercise. The
Company disclosed the Announcement on the Repurchase and Write-off of Certain Restricted Stocks (Announcement No.: 2023-021)
and the Announcement on the Write-off of Certain Stock Options (Announcement No.: 2023-022) on 4 April 2023, in which the
Company intends to repurchase and cancel 10,298,610 shares of restricted stock and 15,120,600 shares of stock option that have been
granted to incentive objects but have not been exercised by them since some incentive objects resigned, died, gave up voluntarily, and
failed to meet the performance appraisal goals for personal reasons. Moreover, the above-mentioned matters regarding the repurchase
and cancelation of restricted stocks were deliberated and approved in the Annual General Meeting of Shareholders of 2022 held on 5
May 2023. The Company disclosed the Reminder Announcement on Release and Circulation of Restricted Shares Granted under the
2020 Stock Option and Restricted Stock Incentive Scheme in the First Release Period (Announcement No.: 2023-026) on 7 April 2023.
The total number of incentive targets who meet the conditions for releasing the restricted shares is 746, and the number of restricted
shares that can be released is 102,260,780 shares, accounting for 0.2677% of the total share capital of the Company at present. The
listing date for the lifted restricted stocks is 11 April 2023. The Company disclosed the Announcement on Adjustment of the Exercise
Price of the Stock Option and the Restricted Share Repurchase Price in the 2020 Stock Option and Restricted Stock Incentive Scheme
of the Company (Announcement No.: 2023-045) on 29 August 2023. Since the equity distribution of the Company for 2022 has been
completed, the restricted stock repurchase price involved in this incentive scheme is adjusted from RMB2.41/share to RMB2.349/share,
the exercise price of the first grant of the stock option is adjusted from RMB5.12/share to RMB5.059/share, and the exercise price of
the reserved and granted stock option is adjusted from RMB5.62/share to RMB5.559/share.
2. Implementation of Employee Stock Ownership Plans
□ Applicable Not applicable
3. Other Incentive Measures for Employees
□ Applicable Not applicable
28
BOE Technology Group Co., Ltd. Interim Report 2023
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental
protection authorities of China.
Yes □ No
Policies and industry standards pertaining to environmental protection
With the establishment of an integrated environment management system based on ISO 14001, the Company strictly complies with
the laws and regulations such as the Environmental Protection Law of the People's Republic of China, Water Pollution Prevention and
Control Law, Air Pollution Prevention and Control Law and Law on the Prevention and Control of Environmental Pollution by Solid
Waste. The green environment management system was built in combination with the requirements of a series of management systems,
such as ISO 9001, QC 080000, ISO 14001 and ISO 50001.
Environmental protection administrative license
Corresponding environmental impact assessments have been conducted for all construction projects under the control of the Company
in conformity with applicable national and local laws and regulations, and corresponding administrative licenses have also been
obtained.
The regulations for industrial emissions and the particular requirements for controlling pollutant emissions
that are associated with production and operational activities.
Type Name Numb Distribu
of of Discharge Excess
er of tion of Discharge Approved
Name of Way of standards Total ive
major major discha dischar concentration/i total
polluter discharge implement discharge discha
pollut pollut rge ge ntensity discharge
ed rge
ants ants outlets outlets
Standard
COD 32.98 mg/L 500mg/L 51.11t 828.42t
emission
Northw
Beijing BOE Waste after
est
Optoelectroni water Amm being
1 corner None
cs Technology pollut onia treated by
of 1.82 mg/L 45mg/L 2.488t 59.17t
Co., Ltd. ant nitrog sewage
factory
en treatment
system
The 4.5th
Standard
generation COD 154.79 mg/l 500mg/l 72.49t 564.14t
emission
TFT-LCD
Waste after
production North
water being
line of Amm 1 side of None
pollut treated by
Chengdu BOE onia factory
ant sewage 10.47 mg/l 45mg/L 4.90t 50.77t
Optoelectroni nitrog
treatment
cs Technology en
system
Co., Ltd.
Standard
COD emission 32.73mg/L 380mg/L 56.50t 1081.55t
Northw
Hefei BOE Waste after
est
Optoelectroni water being
Amm 1 corner None
cs Technology pollut treated by
onia of
Co., Ltd. ant sewage 1.51mg/L 30mg/L 2.63t 101.23t
nitrog factory
treatment
en
system
Beijing BOE Waste Standard East
COD 1 89.20mg/L 500mg/l 180.51t 1570.32t None
Display water emission gate of
29
BOE Technology Group Co., Ltd. Interim Report 2023
Technology pollut Amm after factory
Co., Ltd. ant onia being
12.11mg/L 45mg/l 25.11t 183.20t
Waste nitrog treated by
water en sewage
pollut treatment 1(S2
ant COD system domes 63mg/L 500mg/l 4.02t 80.76t
South
tic
Amm gate of
sewag
onia dormito
e 5.75mg/L 45mg/l 0.37t 6.06t
nitrog ry area
outlet
en II)
Standard
COD emission 61.82mg/L 350mg/L 168.75t 3135.04t
Hefei Waste after Northea
Xinsheng
water Amm being st gate
Optoelectroni 1 None
pollut treated by of
cs Technology onia
ant sewage factory 11.1mg/L 35mg/L 30.30t 313.50t
Co., Ltd. nitrog treatment
en system
Standard
COD 43.41mg/L 500mg/L 25.15t 713.81t
emission
Erdos Waste after
North
Yuansheng water Amm being
1 side of None
Optoelectroni pollut onia treated by
cs Co., Ltd. factory 0.38mg/L 45mg/L 0.23t 76.82t
ant nitrog sewage
en treatment
system
The 6th
generation COD Standard 22.92mg/L 500mg/L 25.55t 6383.16t
flexible emission
AMOLED Waste after North
production water being
Amm 1 side of None
line of pollut treated by
Chengdu BOE onia sewage factory
ant 11.82mg/L 45mg/L 13.38t 574.48t
Optoelectroni nitrog treatment
cs Technology en system
Co., Ltd.
Standard
COD 75.52 mg/L 400mg/L 139.06t 1900.24t
emission
Chongqing Waste after
BOE South
water Amm being
Optoelectroni 1 side of None
cs Technology pollut onia treated by
factory 9.4 mg/L 30mg/L 18.41t 146.17t
Co., Ltd. ant nitrog sewage
en treatment
system
Standard
COD emission 59.83mg/L 400mg/L 340.82t 4759.56t
Hefei BOE Waste after
North
Display water Amm being
1 side of None
Technology pollut onia treated by
Co., Ltd. factory 11mg/L 35mg/L 63.01t 416.46t
ant nitrog sewage
en treatment
system
Standard
COD 12.94 mg/L 500mg/L 29.59t 297.50t
emission
Fuzhou BOE Waste Northea
after
Optoelectroni water Amm st side
being 1 None
cs Technology pollut onia of
Co., Ltd. treated by 0.43 mg/L 45mg/L 1.00t 29.75t
ant nitrog factory
sewage
en
treatment
30
BOE Technology Group Co., Ltd. Interim Report 2023
system
Standard
COD 21.1mg/L 500mg/L 37.14 t 4326.12 t
emission
Mianyang Waste after
BOE North
water Amm being
Optoelectroni 1 side of None
cs Technology pollut onia treated by
factory 4.38mg/L 45mg/L 7.71t 262.00t
Co., Ltd. ant nitrog sewage
en treatment
system
COD Standard 20.5mg/L 400mg/L 22.3t 4171.2t
emission
Chongqing Waste after
Amm North
BOE Display water being
onia 1 side of None
Technology pollut treated by 1.25mg/L 35mg/L 1.36t 398.4t
nitrog factory
Co., Ltd. ant sewage
en treatment
system
Standard
COD 23.31mg/L 500mg/L 119.73t 488.6t
emission
Northea
Wuhan BOE Waste after
st
Optoelectroni water Amm being
1 corner None
cs Technology pollut onia treated by
Co., Ltd. of 0.085mg/L 45mg/L 0.44t 25.85t
ant nitrog sewage
factory
en treatment
system
Standard
COD emission 48.47mg/L 500mg/L 290.87t 2215.01t
Nanjing BOE Waste after
South
Display water Amm being
1 side of None
Technology pollut onia treated by
Co., Ltd. factory 3.43mg/L 45mg/L 9.77t 183.67t
ant nitrog sewage
en treatment
system
Standard
COD 199.54mg/L 500mg/L 630.25t 4310.1t
emission
Northea
Chengdu Waste after
st
BOE Display water Amm being
1 corner None
Sci-tech Co., pollut onia treated by
of 12.11mg/L 45mg/L 38.25t 148.8t
Ltd. ant nitrog sewage
factory
en treatment
system
Industrial
and
COD 99.1mg/L 500mg/L 2.59t domestic
sewage of
the project,
Standard
upon
emission
Yunnan Northw treatment, is
Waste after
Chuangshijie est discharged
water being
Optoelectroni 1 corner to the None
cs Technology pollut treated by
Amm of industrial
Co., Ltd. ant sewage
onia factory sewage
treatment 12.8mg/L 45mg/L 0.33t
nitrog plant of
system
en Linkong
Industrial
Park in
Dianzhong
New Zone,
31
BOE Technology Group Co., Ltd. Interim Report 2023
Kunming,
Yunnan
Province
and
included in
the total
discharge of
the sewage
plant.
Treatment of pollutants
The waste water which is generated by each subordinate subsidiary of the Company can be divided in to industrial waste water and
household waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separately according to
different natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water is collected by
rain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory, industrial waste water
is discharged into sewage treatment factory through municipal pipe network for intense treatment. Household waste water comprises
household fecal waste water and canteen oily waste water etc, after pretreatment, the waste water is discharged into municipal sewage
treatment factory. All industrial and household waste water is not discharged directly, and the concentration and total amount of drainage
satisfy the requirements of national and local relevant standards.
The exhaust gas which is emitted by each subordinate subsidiary mainly comes from technology exhaust gas during production process,
generally including acid exhaust gas, alkaline exhaust gas, special exhaust gas and organic exhaust gas etc. Various exhaust gas can be
emitted after being treated by independent emission treatment system. The emission concentration and total amount satisfy the national
and local relevant standards.
The waste materials which are generated by each subordinate subsidiary can be divided into general industrial solid waste, hazardous
waste materials and household waste materials, and they all handed over to qualified recycler for regular treatment. The disposal rate
of hazardous waste materials is 100%.
Contingency Plan for Emergent Environmental Incidents
Every subsidiary of the Company has formulated, updated and filed corresponding contingency plan for emergent environmental
incidents in local environmental protection departments according to their requirements. However, such contingency plan consists of
comprehensive plan, special plan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardous
wastes and dangerous chemicals etc. Meanwhile, drills must be conducted regularly.
Input in environment governance and protection and payment of environmental protection tax
The Company unremittingly advocates and practices the idea of sustainable environmental development. By continuously increasing
investment in environmental governance and protection, and improving the production and operation processes regarding
environmental impacts, the Company effectively minimized the impact of operation on the environment. Subsidiaries of the Company
that emit taxable pollutants to the environment shall strictly comply with the requirements of the Environmental Protection Tax Law
of the People's Republic of China and the local government and pay the environmental protection taxes.
Self-monitoring Plan
Currently, major pollutant-discharging units subordinated to the Company have worked out corresponding self-monitoring plan
according to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectively
formulated by Beijing BOE Display Technology Co., Ltd. and Beijing BOE Optoelectronics Technology Co., Ltd. have been published
via Beijing Environmental Information Disclosure Platform for Enterprises and Institutions and the Company’s official website.
Administrative penalties imposed for environmental issues during the Reporting Period
Influence on production and Rectification
Name Reason Case Result
operation measures
N/A N/A N/A N/A N/A N/A
Other environment information that should be disclosed
No
Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
Applicable □ Not applicable
To respond to the national "3060" double carbon goal and guarantee the unified planning and effective implementation of carbon
emission peak and carbon neutrality of the Company, clearly raised a carbon emission management policy featuring "comprehensive
coordination, continuous reduction in carbon emissions, value extension and green development" and management objective featuring
32
BOE Technology Group Co., Ltd. Interim Report 2023
“Achieve carbon emission peak and carbon neutrality of the Company”. Meanwhile, it included the performance in carbon emission
management in the Company's performance management system to promote the Company's management of carbon emission.
On the basis of the "624" action plan for peaking carbon emissions, more detailed measures and action plans for green management,
green products, green manufacturing, green recycling, green investment and green actions were implemented. Meanwhile, in order to
improve the digital management of the Company's "double carbon" affairs, an efficient and unified enterprise management and control
platform was developed to realize full-process management featuring optimization and control at the source, continuous improvements
in the energy structure, dynamic control of processes, and effective analysis of data.
The Company sets carbon targets in a scientific way. As a representative of the company, Chongqing BOE Optoelectronics Technology
Co., Ltd. officially joined the Science Based Targets initiative (SBTi) and made a commitment to keep the increase in global average
temperature 1.5°C below pre-industrial levels. Thereby, it becomes the first semiconductor display panel manufacturer in Chinese
mainland to join SBTi. It carried out internal carbon inventory in accordance with the GHG Protocol to determine the base year for
emission reduction and set emission reduction targets, and then planned the path to achieve the targets.
Subsidiaries achieve the goal of energy-saving and emission reduction through the operation of the energy management system and
the incentive energy-saving program through refined management on the energy management platform.
The number of energy-saving and emission reduction projects was 222 in total in 2023 (including 63 projects of 2022). It is expected
that 195.438 million kWh of electricity, 5.9416 million tons of water, 140,000 cubic meters of natural gas, 3.3995 million cubic meters
of nitrogen, and 20,000 cubic meters of vapor could be saved. As at the end of June, 49.5735 million kWh of electricity, 1.2869 million
tons of water, 74,300 cubic meters of natural gas, and 20,500 cubic meters of vapor had been saved. Meanwhile, in order to cope with
the challenges and opportunities brought by carbon trading, subsidiaries in Beijing actively conducted carbon emission trading and
accumulated carbon trading experience to assist the Company in achieving its goals of carbon emission peak and carbon neutrality.
Other related environment protection information
The Company fully considers design for recycling, universal design and minimal design of products in the product design stage, adheres
to the green management concept of the full life cycle of products, and follows the principles of minimizing energy and resource
consumption, minimizing the impact on the ecological environment and maximizing the recyclability.
In order to reduce the impact of the logistics transportation process on the environment, the Company and its partners constantly
improve the transportation management system, carry out reasonable layout and planning of transportation stations and routes, improve
the delivery efficiency, and reduce greenhouse gas emissions.
II Social Responsibility
With the sustainable development concept of Green+, Innovation+ and Community+ as its management and operation philosophy,
BOE actively participates in the practices of the "Empower IoT with display" and the industrial value innovation ecosystem that is
"Powered by BOE" with global partners.
Under the principles of "integrity, standardisation, transparency, and responsibility", BOE continuously optimises the governance
structure for corporate legal person, improves the internal control system, and enhances the corporate governance capability in
accordance with the laws and regulations such as the Company Law, the Securities Law, and the Code of Corporate Governance for
Listed Companies, as well as relevant requirements of listed companies on the exchange. At the same time, it continues to improve its
environmental management system and the green operation of the whole process to efficiently utilise resources and energy. BOE issued
the Towards Carbon Neutrality: BOE Display Low Carbon Development Report at the Display Forum of the Innovation Partner
Conference on 28 June, disclosing BOE Display's low-carbon development goals for the first time and promising to achieve its own
operational carbon neutrality by 2050. BOE has consistently implemented the country's rural revitalisation strategy, firmly fulfilled
corporate social responsibility, and established a long-term working mechanism for timely promotion, coordination and overall
planning, as well as reporting and summarisation. It conducts in-depth education and publicity and makes full use of internal corporate
culture publicity platforms to promote rural revitalisation. It is dedicated to tasks such as employment support, consumption support
and public welfare support. It continues the implementation of the Lighting the Way to Growth education project and empowers digital
education in rural areas with technology to raise its level. BOE will explore more ways of support in light of its own development
characteristics and actual situation, further consolidate the achievements of rural revitalisation, and contribute to high-quality
development and improvement of people's livelihood in the region.
33
BOE Technology Group Co., Ltd. Interim Report 2023
Part VI Significant Events
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and
other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end
Applicable □ Not applicable
Date of
Type of Term of Fulfillmen
Commitment Promisor Details of commitment commitment
commitment commitment t
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 In accordance with the Announcement on the Commitments of not
the Board: Mr. Chen Reducing the Shareholding by Some Directors, Supervisors and Senior
Yanshun Management (No.: 2020-001) disclosed by the Company on 22
Vice Chairman of February 2020, some of the Company’s directors, supervisors and
senior managers, based on their confidence in the Company’s future During the term
the Board: Mr. Liu
development and their recognition of the corporate value, promise not as director,
Xiaodong to reduce or transfer any shares held in BOE (A shares), not to entrust supervisor or
Director: Ms. Sun others to manage specific shares, not to authorize others to execute senior manager,
Other
Other commitments made Yun and Mr. Gao their voting right by means of any agreement, trust or other and in six months
commitment 21 February 2020 Ongoing
to minority interests Wenbao arrangements and not to require the Company to repurchase any after the
s
Supervisor: Mr. Xu specific shares during the terms of office and within 6 months after expiration of the
their tenures expire so as to promote the Company’s continuous, stable term (the term
Yangping, Mr. Yan
and healthy development and maintain the rights and interests of the determined when
Jun and Mr. Teng Company and all shareholders. For any newly-added shares derived taking office).
Jiao from the assignment of rights and interests including the share donation
Senior and the reserved funds converted into share capital during the period
Management: Ms. (corresponding to the specific shares), they shall still keep their
Feng Liqiong and promises till the commitment period expires.
34
BOE Technology Group Co., Ltd. Interim Report 2023
Mr. Liu Hongfeng
Former Senior
Management: Mr.
Miao Chuanbin and
Mr. Xie Zhongdong
Executed on time or not Yes
Specific reasons for
failing to fulfill
commitments on time and N/A
plans for next step (if
any)
35
BOE Technology Group Co., Ltd. Interim Report 2023
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited?
□ Yes No
The interim financial statements have not been audited.
V Explanations Given by the Board of Directors and the Supervisory Committee Regarding the
Independent Auditor's “Modified Opinion” on the Financial Statements of the Reporting
Period
□ Applicable Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's
“Modified Opinion” on the Financial Statements of Last Year
□ Applicable Not applicable
VII Insolvency and Reorganization
□ Applicable Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits and arbitrations:
□ Applicable Not applicable
No such cases in the Reporting Period.
Other legal matters:
Applicable □ Not applicable
Involved Index to
General amount Decisions and Execution of Disclosure disclosed
Provision Progress
information (RMB’0,00 effects decisions date informati
0) on
Litigations for
H1 2023
(including 44,819.49 No N/A - N/A N/A N/A
carryforwards in
previous years )
36
BOE Technology Group Co., Ltd. Interim Report 2023
IX Punishments and Rectifications
□ Applicable Not applicable
X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
□ Applicable Not applicable
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□ Applicable Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance business with any
related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit from and was not involved in any other
finance business with any related parties.
7. Other Major Related-Party Transactions
Applicable □ Not applicable
None
Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on Estimated Continuing Related-
4 April 2023 www.cninfo.com.cn
party Transactions for 2023
37
BOE Technology Group Co., Ltd. Interim Report 2023
XII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
Applicable □ Not applicable
Unit: RMB'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Havin Guarant
Disclosure date Counter
Actual Actual g ee for a
of the guarantee Line of Type of Collateral
Obligor occurrence guarantee guarantee (if Term of guarantee expire related
line guarantee guarantee (if any)
date amount any) d or party or
announcement
not not
N/A
Guarantees provided by the Company as the parent for its subsidiaries
Havin Guarant
Disclosure date Counter
Actual Actual g ee for a
of the guarantee Line of Type of Collateral
Obligor occurrence guarantee guarantee (if Term of guarantee expire related
line guarantee guarantee (if any)
date amount any) d or party or
announcement
not not
38
BOE Technology Group Co., Ltd. Interim Report 2023
Ordos YuanSheng 30 November 15 March Joint- 2017-3-17 to 2027-3-
554,774 85,910 N/A N/A Not Not
Optoelectronics Co., Ltd. 2016 2017 liability 17
Chengdu BOE
30 August Joint-
Optoelectronics Technology 24 April 2017 2,300,810 1,482,738 N/A N/A 2017-9-6 to 2029-9-6 Not Not
2017 liability
Co., Ltd.
The secured
party provides
Hefei BOE Display 30 November 30 August Joint-
1,733,191 199,091 N/A a counter 2017-9-7 to 2027-9-7 Not Not
Technology Co., Ltd. 2016 2017 liability
guarantee for
the guarantor
Fuzhou BOE Optoelectronics 9 December 8 November Joint- 2016-12-19 to 2026-
1,373,800 69,383 N/A N/A Not Not
Technology Co., Ltd. 2015 2016 liability 7-4
The secured
18 party provides
Mianyang BOE Joint- 2018-9-26 to 2031-9-
18 May 2018 2,136,768 September 1,544,111 N/A a counter Not Not
Optoelectronics Co., Ltd. liability 26
2018 guarantee for
the guarantor
The secured
29 party provides
Chongqing BOE Display Joint- 2020-12-31 to 2033-
27 April 2020 2,088,638 December 1,350,748 N/A a counter Not Not
Technology Co., Ltd. liability 12-31
2020 guarantee for
the guarantor
The secured
party provides
Wuhan BOE Optoelectronics 16 August Joint- 2019-8-23 to 2032-8-
25 March 2019 2,065,806 1,441,775 N/A a counter Not Not
Technology Co., Ltd. 2019 liability 23
guarantee for
the guarantor
The secured
party provides
Nanjing BOE Display 23 September 12 May Joint- 2021-5-12 to 2026-5-
180,000 45,000 N/A a counter Not Not
Technology Co., Ltd. 2020 2021 liability 31
guarantee for
the guarantor
The secured
party provides
Nanjing BOE Display 23 September 12 May Joint- 2021-5-12 to 2026-6-
120,000 120,000 N/A a counter Not Not
Technology Co., Ltd. 2020 2021 liability 6
guarantee for
the guarantor
27
Nanjing BOE Display 23 September Joint- The secured 2021-12-27 to 2026-
10,500 December 1,500 N/A Not Not
Technology Co., Ltd. 2020 liability party provides 8-24
2021
39
BOE Technology Group Co., Ltd. Interim Report 2023
a counter
guarantee for
the guarantor
The secured
party provides
Chengdu BOE Hospital Co., 15 June Joint- 2020-6-15 to 2042-6-
27 April 2020 240,000 146,499 N/A a counter Not Not
Ltd. 2020 liability 30
guarantee for
the guarantor
Total actual amount of such
Total approved line for such guarantees in the
0 guarantees in the Reporting -1,234,329
Reporting Period (B1)
Period (B2)
Total actual balance of such
Total approved line for such guarantees at the end
12,804,286 guarantees at the end of the 6,486,755
of the Reporting Period (B3)
Reporting Period (B4)
Guarantees provided between subsidiaries
Havin Guarant
Disclosure date Counter
Actual Actual g ee for a
of the guarantee Line of Type of Collateral
Obligor occurrence guarantee guarantee (if Term of guarantee expire related
line guarantee guarantee (if any)
date amount any) d or party or
announcement
not not
30
Yaoguang New Energy Joint- 2020-9-30 to 2034-9-
N/A 3,600 September 3,299 N/A N/A Not Not
(Shouguang) Co., Ltd. liability 30
2020
30
Suzhou Industrial Park Taijing Joint- 2020-9-30 to 2034-9-
N/A 2,800 September 2,566 N/A N/A Not Not
Photovoltaic Co., Ltd. liability 30
2020
30
Qingmei Solar Energy Joint- 2020-9-30 to 2034-9-
N/A 3,300 September 2,689 N/A N/A Not Not
Technology (Lishui) Co., Ltd. liability 30
2020
30
Qinghong Solar Energy Joint- 2020-9-30 to 2034-9-
N/A 1,700 September 1,385 N/A N/A Not Not
Technology (Jinhua) Co., Ltd. liability 30
2020
30
Qinghui Solar Energy Joint- 2020-9-30 to 2034-9-
N/A 1,100 September 896 N/A N/A Not Not
Technology (Jinhua) Co., Ltd. liability 30
2020
18 Pledge,
Qinghao Solar Energy Equity 2017-12-18 to 2032-
N/A 890 December 506 joint- N/A Not Not
Technology (Jinhua) Co., Ltd. interests 12-18
2017 liability
Xiangqing Solar Energy 18 Pledge,
Equity 2017-12-18 to 2032-
Technology (Dongyang) Co., N/A 3,476 December 1,678 joint- N/A Not Not
Ltd 2017 interests 12-18
liability
Qingyue Solar Energy N/A 960 18 464 Pledge, Equity N/A 2017-12-18 to 2032- Not Not
40
BOE Technology Group Co., Ltd. Interim Report 2023
Technology (Wuyi) Co., Ltd December joint- interests 12-18
2017 liability
Qingyou Solar Energy 18 Pledge,
Equity 2017-12-18 to 2032-
Technology (Longyou) Co., N/A 2,210 December 1,271 joint- N/A Not Not
Ltd 2017 interests 12-18
liability
18 Pledge,
Qingfan Solar Energy Equity 2017-12-18 to 2032-
N/A 1,855 December 896 joint- N/A Not Not
Technology (Quzhou) Co., Ltd interests 12-18
2017 liability
Guoji Energy (Ningbo) Co., 3 December Joint- 2020-12-3 to 2034-
N/A 1,800 1,504 N/A N/A Not Not
Ltd. 2020 liability 12-3
Hongyang Solar Energy
3 December Joint- 2020-12-3 to 2034-
Power Generation (Anji) Co., N/A 2,500 2,088 N/A N/A Not Not
2020 liability 12-3
Ltd.
Ke’en Solar Energy Power
3 December Joint- 2020-12-3 to 2034-
Generation (Pingyang) Co., N/A 1,600 1,337 N/A N/A Not Not
2020 liability 12-3
Ltd.
Dongze Photovoltaic Power
3 December Joint- 2020-12-3 to 2034-
Generation (Wenzhou) Co., N/A 1,400 1,170 N/A N/A Not Not
2020 liability 12-3
Ltd.
Aifeisheng Investment and
3 December Joint- 2020-12-3 to 2034-
Management (Wenzhou) Co, N/A 700 585 N/A N/A Not Not
2020 liability 12-3
Ltd.
Beijing BOE Energy 23 October Charging 2017-10-24 to 2032-
N/A 12,800 11,809 Pledge N/A Not Not
Technology Co., Ltd. 2017 right 10-23
Beijing BOE Energy 15 August Charging 2018-9-26 to 2032-
N/A 20,560 13,520 Pledge N/A Not Not
Technology Co., Ltd. 2018 right 12-21
28
Beijing BOE Energy Charging 2017-12-1 to 2032-
N/A 25,418 November 20,347 Pledge N/A Not Not
Technology Co., Ltd. right 12-1
2017
27 April Joint- 2018-4-27 to 2036-4-
Hefei BOE Hospital Co., Ltd. 27 April 2018 130,000 120,000 N/A N/A Not Not
2018 liability 27
The secured
29 party provides
Beijing BOE Life Technology Joint- 2021-12-29 to 2039-
N/A 60,000 December 22,600 N/A a counter Not Not
Co., Ltd. 2021 liability 12-28
guarantee for
the guarantor
The secured 2023-3-23 to the time
party provides when all orders under
BOE Video Technology Co., 23 March Joint-
30 March 2022 216,774 6,165 N/A a counter the Purchase and Not Not
Ltd. 2023 liability
guarantee for Sales Agreement are
the guarantor fulfilled
41
BOE Technology Group Co., Ltd. Interim Report 2023
Total actual amount of such
Total approved line for such guarantees in the
0 guarantees in the Reporting 235
Reporting Period (C1)
Period (C2)
Total actual balance of such
Total approved line for such guarantees at the end
495,443 guarantees at the end of the 216,775
of the Reporting Period (C3)
Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee line approved in the Reporting
0 amount in the Reporting -1,234,094
Period (A1+B1+C1)
Period (A2+B2+C2)
Total actual guarantee
Total approved guarantee line at the end of the balance at the end of the
13,299,729 6,703,530
Reporting Period (A3+B3+C3) Reporting Period
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 51.95%
Of which:
Balance of guarantees provided for shareholders, actual controller and their
0
related parties (D)
Balance of debt guarantees provided directly or indirectly for obligors with an
292,665
over 70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the Company’s net
251,942
assets (F)
Total of the three amounts above (D+E+F) 371,942
Joint responsibilities possibly borne or already borne in the Reporting Period for
N/A
undue guarantees (if any)
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
Compound guarantees
None
42
BOE Technology Group Co., Ltd. Interim Report 2023
3. Cash Entrusted for Wealth Management
Applicable □ Not applicable
Unit: RMB'0,000
Overdue amount
Specific type Capital resources Amount incurred Undue balance Overdue amount with provision for
impairment
Structured bank
Self-owned funds 1,529,800 1,127,200 0 0
deposits
Total 1,529,800 1,127,200 0 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
4. Other Major Contracts
□ Applicable Not applicable
No such cases in the Reporting Period.
XIII 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. Among them, the redeemed and delisted bonds are detailed in the table below:
Date of Redemption and
Bond name Abbr. Bond code Maturity Disclosure index
issue delisting date
2019 Public Offering of
Renewable Corporate Bonds of 28 October 29 October
19BOEY1 112741 31 October 2022
BOE (for qualified investors) 2019 2022
(Phase I)
2020 Public Offering of
Renewable Corporate Bonds of
27 February 28 February
BOE (for qualified investors) 20BOEY1 149046 28 February 2023
2020 2023
(Phase I) (epidemic prevention
and control bonds)
2020 Public Offering of www.cninfo.com.cn
Renewable Corporate Bonds of
18 March 19 March
BOE (for qualified investors) 20BOEY2 149065 20 March 2023
2020 2023
(Phase II) (epidemic prevention
and control bonds)
2020 Public Offering of
Renewable Corporate Bonds of
24 April 27 April
BOE (for qualified investors) 20BOEY3 149108 27 April 2023
2020 2023
(Phase III) (epidemic prevention
and control bonds)
The bond outstanding as of the disclosure date of this Report is as follows:
Bond name Abbr. Bond code Date of issue Maturity
43
BOE Technology Group Co., Ltd. Interim Report 2023
2022 Public Offering of Renewable Corporate
Bonds of BOE (for professional investors) 22BOEY1 149861 24 March 2022 25 March 2025
(Digital Economy) (Phase I)
The Company disclosed 2023 "22BOEY1" Interest Payment Announcement (Announcement No. 2023-010) on 23 March 2023. The
interest payment plan was RMB35.00 (including tax) every ten bonds.
2. On 16 January 2021, the Company disclosed the Announcement on the Resolution of the 21st Meeting of the 9th Board of Directors
(Announcement No. 2021-001) and the Plan for Non-Public Offering of A-Shares in 2021, and other related announcements, in which
the Company intends to make a non-public offering of A-shares to no more than 35 specific investors including Jing Guorui Fund. The
net fund raised was expected to be no more than RMB20 billion. On 19 August 2021, the Company disclosed the Report on the Non-
public Offering of A-shares by BOE Technology Group Co., Ltd. & the Announcement on the Listing of these Shares (announcement
No. 2021-058), along with other relevant announcements. 3,650,377,019 new shares were issued in the non-public offering, which
were listed on the Shenzhen Stock Exchange on 20 August 2021. The Company disclosed the Suggestive Announcement on Relieving
Restricted Non-publicly Offered A Shares in 2021 (Announcement No.: 2023-004) on 17 February 2023. A total of 718,132,854
restricted shares of the Company's non-publicly offered A shares in 2021 were relieved on 20 February 2023 and could be traded on
the market thereafter. The number of the relieved restricted shares accounted for 1.9324% of the Company's non-restricted shares, and
1.8801% of the Company's total share capital.
3. The Company disclosed the Announcement on Resignation of Senior Management (Announcement No.: 2023-006) on 2 March 2023,
due to the change of work, Mr. Miao Chuanbin applied for resignation as Senior Vice President and Chief Culture Officer and will not
hold any position in the Company after his resignation. The Company disclosed the Announcement on Resignation of Senior
Management (Announcement No.: 2023-013) on 1 April 2023, due to personal reasons, Mr. Xie Zhongdong applied for resignation as
Senior Vice President, Chief Audit Officer and Chief Risk Control Officer and will not hold any position in the Company after his
resignation. The Company disclosed the Announcement of Resolutions of the 13th Meeting of the 10th Board of Directors
(Announcement No.: 2023-014) on 4 April 2023, at the 13th Meeting of the 10th Board of Directors, the Company considered and
approved the Proposal on the Appointment of Senior Management of the Company and Adjustment of the Composition of the Executive
Committee of the Company, the Board of Directors appointed Mr. Feng Qiang as a member of the Executive Committee and Executive
Vice President, Mr. Guo Huaping as Senior Vice President and Chief Cultural Officer; and to adjust the current senior management of
the Company, Ms. Yang Xiaoping, from Senior Vice President and Chief Financial Officer to a member of the Executive Committee,
Executive Vice President and Chief Financial Officer. [The Company disclosed the Announcement of Resolutions of the 15th Meeting
of the 10th Board of Directors (Announcement No.: 2023-028) on 29 April 2023. At the 15th Meeting of the 10th Board of Directors
of the Company, the Proposal on the Appointment of Senior Management of the Company was reviewed and approved, and the Board
of Directors appointed Mr. Yue Zhanqiu as Senior Vice President and Chief Audit Officer of the Company.]
4. The Company held the 15th Meeting of the 9th Board of Directors and the 2nd Extraordinary General Meeting of 2020 on 27 August
2020 and 17 November 2020 respectively and deliberated and approved the 2020 Stock Option and Restricted Stock Grant Program,
in which the Company intends to implement the Equity Incentive Scheme, including both the Stock Option Incentive Scheme and the
Restricted Stock Incentive Scheme. Following the approval of the Proposal on the First Grant of Stock Options and Restricted Shares
to Incentive Objects at the 20th Meeting of the 9th Board of Directors and the 8th Meeting of the 9th Supervisory Committee, the
Company disclosed the Announcement on Completion of Registration of the First Grant of the 2020 Stock Option and Restricted Stock
Incentive Scheme (Announcement No.: 2020-086) on 31 December 2020. Following the approval of the Proposal on the Achievement
of Lifting Conditions of the First lifting Restriction Period for the Restricted Stock Granted by the Stock Incentive Scheme of 2020 and
the Fulfillment of the Exercise Conditions for the Stock Option Granted for the First Time, the Proposal on the Repurchase and Write-
off of Certain Restricted Shares and the Proposal for the Write-off of Certain Stock Options at the 13th Meeting of the 10th Board of
Directors and the 4th Meeting of the 10th Supervisory Committee, the Company’s independent directors, lawyers and independent
financial advisers respectively issued opinions on matters related to stock options and restricted stock incentives. The Company
disclosed the Reminder Announcement on Release and Circulation of Restricted Shares Granted under the 2020 Stock Option and
Restricted Stock Incentive Scheme in the First Release Period (Announcement No.: 2023-026) on 7 April 2023. The total number of
incentive targets who meet the conditions for releasing the restricted shares is 746, and the number of restricted shares that can be
released is 102,260,780 shares, accounting for 0.2677% of the total share capital of the Company at present. The Company disclosed
the Announcement on Adjustment of the Exercise Price of the Stock Option and the Restricted Share Repurchase Price in the 2020
Stock Option and Restricted Stock Incentive Scheme of the Company (Announcement No.: 2023-045) on 29 August 2023. Since the
equity distribution of the Company for 2022 has been completed, the restricted stock repurchase price involved in this incentive scheme
is adjusted from RMB2.41/share to RMB2.349/share, the exercise price of the first grant of the stock option is adjusted from
RMB5.12/share to RMB5.059/share, and the exercise price of the reserved and granted stock option is adjusted from RMB5.62/share
to RMB5.559/share.
5. On 31 May 2023, the Company disclosed the Announcement No. 2023-034 on the Distribution of the 2022 Final Dividend. As the
2022 Final Dividend Plan had been approved at the 2022 Annual General Meeting on 5 May 2023, the Company distributed a 2022
final dividend of RMB0.61 per 10 shares (dividend to B-shareholders paid in HKD according to the central parity rate of RMB and
HKD declared by the People’s Bank of China on the first working day immediately after the date of the relevant general meeting
resolution), with no bonus issue from either profit or capital reserves.
Overview of significant event Disclosure date Disclosure website
Announcement on the Signing of Supplemental Agreement (III) to the
Cooperation Agreement for the Life Science and Technology Industrial Base 10 June 2023 www.cninfo.com.cn
Project
44
BOE Technology Group Co., Ltd. Interim Report 2023
XIV Significant Events of Subsidiaries
□ Applicable Not applicable
45
BOE Technology Group Co., Ltd. Interim Report 2023
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Item Bonus Bonus issue Percentag
Number Percentage New issues Other Subtotal Number
shares from profit e
I. Restricted shares 1,033,130,290 2.70% 0 0 0 -828,717,549 -828,717,549 204,412,741 0.54%
1. Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-
718,132,854 1.88% 0 0 0 -718,132,854 -718,132,854 0 0.00%
owned corporations
3. Shares held by other
289,137,936 0.76% 0 0 0 -101,540,675 -101,540,675 187,597,261 0.49%
domestic investors
Among which: Shares held
0 0.00% 0 0 0 0 0 0 0.00%
by domestic corporations
Shares held
289,137,936 0.76% 0 0 0 -101,540,675 -101,540,675 187,597,261 0.49%
by domestic individuals
4. Shares held by foreign
25,859,500 0.07% 0 0 0 -9,044,020 -9,044,020 16,815,480 0.04%
investors
Among which: Shares held
0 0.00% 0 0 0 0 0 0 0.00%
by foreign corporations
Shares
25,859,500 0.07% 0 0 0 -9,044,020 -9,044,020 16,815,480 0.04%
held by foreign individuals
II. Non-restricted shares 37,163,233,131 97.30% 0 0 0 818,418,939 818,418,939 37,981,652,070 99.46%
1. RMB ordinary shares 36,470,349,004 95.48% 0 0 0 818,418,939 818,418,939 37,288,767,943 97.65%
2. Domestically listed
692,884,127 1.81% 0 0 0 0 0 692,884,127 1.81%
foreign shares
3. Overseas listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 38,196,363,421 100.00% 0 0 0 -10,298,610 -10,298,610 38,186,064,811 100.00%
Reasons for share changes:
Applicable □ Not applicable
46
BOE Technology Group Co., Ltd. Interim Report 2023
1. A total of 718,132,854 restricted shares of the Company's non-publicly issued RMB ordinary shares in 2021 were relieved on 20 February 2023.
2. On 11 April 2023, the Company has lifted the restriction conditions of some restricted stocks granted by the 2020 Stock Option and Restricted Stock Incentive Scheme, and 102,260,780 shares
of restricted stock were actually lifted. During the Reporting Period, the Company repurchased and cancelled 10,298, 610 shares of restricted stock that had been authorised to 36 incentive
recipients but were still locked, resulting in a decrease of 112,559,390 shares of restricted stock of the Company's equity incentive.
3. During the Reporting Period, the equity incentive shares held by the Company's directors, supervisors, and senior management were lifted, resulting in an increase of 1,518,620 shares in the
management lock-up shares. The management lock-up shares increased by 270,525 as a result of the Company's hiring of senior management and by 185,550 as a result of the resignation of the
Company's senior management. In total, the Company's management lock-up shares increased by 1,974,695.
4. During the Reporting Period, the total number of shares decreased by 10,298,610. Specifically, restricted shares decreased by 828,717,549, and non-restricted shares increased by 818,418,939.
Approval of share changes:
□ Applicable Not applicable
Transfer of share ownership:
□ Applicable Not applicable
Progress on any share repurchase:
□ Applicable Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary shareholders and other financial indicators of the prior year and the
prior accounting period, respectively:
Applicable □ Not applicable
Item January-December 2022 January-June 2023
Basic earnings per share (RMB/share) 0.19 0.02
Diluted earnings per share (RMB/share) 0.19 0.02
Item 31 December 2022 30 June 2023
Equity per share attributable to the Company’s ordinary shareholders 3.42 3.39
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable Not applicable
47
BOE Technology Group Co., Ltd. Interim Report 2023
2. Changes in Restricted Shares
Applicable □ Not applicable
Unit: Share
Restricted
Restricted shares Restricted shares
Restricted shares shares amount Restricted Restricted shares
Name of the shareholders amount at the increased of the
relieved of the period at the period- reasons relieved date
period-begin period
end
Beijing Jing Guorui Soe Reform and Development
718,132,854 718,132,854 0 0 - 20 February 2023
Fund (L.P.)
Locked shares
Locked shares of executives 2,366,636 0 1,974,695 4,341,331 -
of executives
Restricted
Restricted shares for equity incentive 312,630,800 112,559,390 0 200,071,410 shares for equity -
incentive
Total 1,033,130,290 830,692,244 1,974,695 204,412,741 -- --
II Issuance and Listing of Securities
□ Applicable Not applicable
III Shareholders and Their Holdings as at the Period-End
Unit: share
Number of ordinary shareholders at the period-end 1,320,143 (including 1,288,035 A-shareholders and 32,108 B-shareholders)
5% or greater ordinary shareholders or top 10 ordinary shareholders
Sharehold Shares in pledge, marked
Total ordinary Increase/decrease
Nature of ing Restricted ordinary Unrestricted or frozen
Name of shareholder shares held at the in the Reporting
shareholder percentag shares held ordinary shares held
period-end Period Status Shares
e
Beijing State-owned Capital
State-owned legal
Operation and Management 10.64% 4,063,333,333 0 0 4,063,333,333 N/A 0
person
Company Limited
Hong Kong Securities Clearing Foreign legal
8.66% 3,307,482,377 1,857,289,096 0 3,307,482,377 N/A 0
Company Ltd. person
Beijing BOE Investment & State-owned legal
2.15% 822,092,180 0 0 822,092,180 N/A 0
Development Co., Ltd. person
48
BOE Technology Group Co., Ltd. Interim Report 2023
Beijing Jing Guorui Soe Reform and
Other 1.88% 718,132,854 0 0 718,132,854 N/A 0
Development Fund (L.P.)
State-owned legal
Hefei Jianxiang Investment Co., Ltd. 1.74% 666,195,772 0 0 666,195,772 N/A 0
person
Domestic non-
Fuqing Huirong Venture Capital Co.,
state-owned legal 1.41% 537,469,040 3,484,700 0 537,469,040 N/A 0
Ltd.
person
Domestic non-
Ningxia Risheng High-tech Industry
state-owned legal 0.89% 339,025,766 -11,900,000 0 339,025,766 N/A 0
Co., Ltd. person
Sinatay Life Insurance Co., Ltd.-
Other 0.80% 305,330,128 0 0 305,330,128 N/A 0
Traditional Product
Beijing Electronics Holdings Co., State-owned legal
0.72% 273,735,583 0 0 273,735,583 N/A 0
Ltd. person
Foreign natural
Xu Lili 0.71% 272,735,592 31,410,294 0 272,735,592 N/A 0
person
Strategic investors or general
corporations becoming top-ten
N/A
ordinary shareholders due to placing
of new shares (if any)
1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co., Ltd.
2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder.
3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right, agreed
to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights as a
shareholder.
4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of
the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics
Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right
Related or acting-in-concert parties
maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right.
among the shareholders above
5. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert
Agreement with Beijing Electronics Holdings Co., Ltd.
6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment
Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment
Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of
the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-
owned Capital Operation and Management Company Limited.
7. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders.
1. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right, agreed
to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights as a
Explain if any of the shareholders shareholder.
above was involved in 2. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of
entrusting/being entrusted with the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics
voting rights or waiving voting rights Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right
maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right.
3. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert
49
BOE Technology Group Co., Ltd. Interim Report 2023
Agreement with Beijing Electronics Holdings Co., Ltd.
At the end of the Reporting Period, among the top ten shareholders of the Company, the special securities account for the repurchase of BOE Technology
Special account for share repurchases
Group Co., Ltd. held 528,186,052 shares, accounting for 1.38%. According to relevant regulations in the Rule No. 3 for Content and Format of Information
(if any) among the top 10
Disclosure of the Company Issuing Securities Publicly, if there are repurchase accounts in the top ten shareholders of the Company, it should be specified,
shareholders
but these shareholders should not be included and listed as the top ten shareholders.
Shareholdings of the top ten unrestricted ordinary shareholders
Shares by type
Name of shareholder Number of unrestricted ordinary shares held at the period-end
Type Shares
Beijing State-owned Capital
Operation and Management 4,063,333,333 RMB ordinary share 4,063,333,333
Company Limited
Hong Kong Securities Clearing
3,307,482,377 RMB ordinary share 3,307,482,377
Company Ltd.
Beijing BOE Investment &
822,092,180 RMB ordinary share 822,092,180
Development Co., Ltd.
Beijing Jing Guorui Soe Reform and
718,132,854 RMB ordinary share 718,132,854
Development Fund (L.P.)
Hefei Jianxiang Investment Co., Ltd. 666,195,772 RMB ordinary share 666,195,772
Fuqing Huirong Venture Capital Co.,
537,469,040 RMB ordinary share 537,469,040
Ltd.
Ningxia Risheng High-tech Industry
339,025,766 RMB ordinary share 339,025,766
Co., Ltd.
Sinatay Life Insurance Co., Ltd.-
305,330,128 RMB ordinary share 305,330,128
Traditional Product
Beijing Electronics Holdings Co.,
273,735,583 RMB ordinary share 273,735,583
Ltd.
Xu Lili 272,735,592 RMB ordinary share 272,735,592
1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co., Ltd.
2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder.
3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd., by entering into Implementation Protocol of Voting Right, agreed
to maintain all of the shares held by it unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights as a
shareholder.
Related or acting-in-concert parties 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Company Limited handed over 70% of
among top 10 unrestricted ordinary
the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics
shareholders, as well as between top
10 unrestricted ordinary shareholders Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right
and top 10 ordinary shareholders maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right.
5. During the non-public issuing of the Company in 2021, Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert
Agreement with Beijing Electronics Holdings Co., Ltd.
6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment
Management Co., Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment
Management Co., Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition, among the nine members of
50
BOE Technology Group Co., Ltd. Interim Report 2023
the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.), three are nominated by Beijing State-
owned Capital Operation and Management Company Limited.
7. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders.
1. Shareholder Ningxia Risheng High-tech Industry Co., Ltd. held 296,442,066 shares in the Company via its credit securities account, and shareholder
Xu Lili held 266,458,492 shares in the Company via her credit securities account.
Top 10 ordinary shareholders 2. The shares held by Shareholder Fuqing Huirong Venture Capital Co., Ltd. in the Company increase by 3,484,700 shares due to securities refinancing.
involved in securities margin trading 3. Shareholders Beijing State-owned Capital Operation and Management Company Limited, Beijing BOE Investment & Development Co., Ltd., Beijing
(if any) (see Note 4) Jing Guorui SOE Reform and Development Fund (L.P.), Hefei Jianxiang Investment Co., Ltd., Beijing Electronics Holdings Co., Ltd. and Sinatay Life
Insurance Co., Ltd.-Traditional Product were not involved in securities refinancing.
4. Except for the aforesaid, the Company does not know any other top-10 ordinary shareholder who was involved in securities refinancing.
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.
IV Change in Shareholdings of Directors, Supervisors and Senior Management
Applicable □ Not applicable
Restricted Restricted
Restricted
Beginning Increase in the Decrease in the Ending shares granted shares granted
Incumbent shares granted
Name Office title shareholding Reporting Reporting shareholding at the period- at the period-
/Former in the Reporting
(share) Period (share) Period (share) (share) beginning end
Period (share)
(share) (share)
Chairman of the Board and
Chen
Chairman of the Executive Incumbent 2,900,000 0 0 2,900,000 2,000,000 0 1,320,000
Yanshun
Committee
Pan Vice Chairman of the
Incumbent 0 0 0 0 0 0 0
Jinfeng Board
Vice Chairman of the
Liu
Board and member of the Incumbent 2,480,000 0 0 2,480,000 1,800,000 0 1,188,000
Xiaodong
Executive Committee
Director, President and
Gao
Vice Chairman of the Incumbent 1,860,700 0 0 1,860,700 1,500,000 0 990,000
Wenbao
Executive Committee
Director, member of the
Sun Yun Executive Committee and Incumbent 1,989,481 0 0 1,989,481 1,500,000 0 990,000
Executive Vice President
Ye Feng Director Incumbent 0 0 0 0 0 0 0
51
BOE Technology Group Co., Ltd. Interim Report 2023
Tang
Independent Director Incumbent 0 0 0 0 0 0 0
Shoulian
Zhang
Independent Director Incumbent 0 0 0 0 0 0 0
Xinmin
Guo He Independent Director Incumbent 0 0 0 0 0 0 0
Wang
Independent Director Incumbent 0 0 0 0 0 0 0
Duoxiang
Chairman of the
Wang Jin Incumbent 0 0 0 0 0 0 0
Supervisory Committee
Sun
Supervisor Incumbent 0 0 0 0 0 0 0
Fuqing
Shi
Supervisor Incumbent 0 0 0 0 0 0 0
Xiaodong
Xu Jinghe Supervisor Incumbent 0 0 0 0 0 0 0
Yan Jun Employee Supervisor Incumbent 32,000 0 0 32,000 0 0 0
Xu
Employee Supervisor Incumbent 35,000 0 0 35,000 0 0 0
Yangping
Teng Jiao Employee Supervisor Incumbent 55,200 0 0 55,200 0 0 0
Member of the Executive
Feng
Committee and Executive Incumbent 975,700 0 0 975,700 750,000 0 495,000
Qiang
Vice President
Member of the Executive
Wang
Committee and Executive Incumbent 852,400 0 0 852,400 750,000 0 495,000
Xiping
Vice President
Member of the Executive
Feng
Committee, Executive Vice Incumbent 1,360,000 0 0 1,360,000 1,000,000 0 660,000
Liqiong
President and CLO
Member of the Executive
Zhang Yu Committee and Executive Incumbent 751,600 0 0 751,600 634,000 0 418,440
Vice President
Member of the Executive
Yang
Committee, Executive Incumbent 742,300 0 0 742,300 634,000 0 418,440
Xiaoping
Vice President and CFO
Guo Senior Vice President and
Incumbent 0 0 0 0 0 0 0
Huaping CCO
Yue Senior Vice President and
Incumbent 553,440 0 0 553,440 418,440 0 418,440
Zhanqiu CASO
Liu Vice President and Board
Incumbent 1,024,500 0 0 1,024,500 750,000 0 495,000
Hongfeng Secretary
52
BOE Technology Group Co., Ltd. Interim Report 2023
Miao
Senior management Former 758,800 0 0 108,800 650,000 0 0
Chuanbin
Xie
Zhongdon Senior management Former 1,057,000 0 0 307,000 750,000 0 0
g
Total -- -- 17,428,121 0 0 16,028,121 13,136,440 0 7,888,320
Note: 1. Mr Feng Qiang and Mr Guo Huaping were appointed as the Company’s senior management members by the Board of Directors on 31 March 2023 and Mr Yue Zhanqiu was appointed as
the Company’s senior management member by the Board of Directors on 28 April 2023. On this basis, the number of shares held by and the number of restricted shares granted to Mr Feng Qiang,
Mr Guo Huaping and Mr Yue Zhanqiu at the beginning of the Reporting Period were indicated by the number of shares held at the date of their appointment;
2. The lifting of the restriction conditions in the first lifting restriction period for restricted stocks granted by the 2020 Stock Option and Restricted Stock Incentive Scheme of the Company has
been achieved. The listing date is 11 April 2023. The above lifting of the restrictions resulted in a reduction in the number of restricted shares granted to directors and senior management at the
end of the Reporting Period. After the lifting of certain restricted shares held by the Company's directors and senior management in this incentive scheme, the locking and trading of shares held
by them shall comply with the Company Law, the Securities Law, the Management Rules for Shares Held by Directors, Supervisors, and Senior Management of Listed Companies and Changes
in Such Shares (2022 Revision), the Guidelines No. 1 of the Shenzhen Stock Exchange on the Self-regulation of Listed Companies -- Standardised Operation of the Companies Listed on the
Mainboard, the Guidelines No. 10 of the Shenzhen Stock Exchange on the Self-regulation of Listed Companies -- Management of Share Changes, and other the relevant laws and regulations.
3. Mr Miao Chuanbin and Mr Xie Zhongdong resigned from the senior management of the Company in March 2023 and will no longer hold any position in the Company after their resignation.
On 25 May 2023, the Company repurchased and cancelled the restricted shares held by Mr Miao Chuanbin and Mr Xie Zhongdong which had been granted but not lifted in accordance with the
provisions of the 2020 Stock Option and Restricted Stock Incentive Scheme (Draft).
V Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable Not applicable
No such cases in the Reporting Period.
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BOE Technology Group Co., Ltd. Interim Report 2023
Part VIII Preference Shares
□ Applicable Not applicable
No preference shares in the Reporting Period.
54
BOE Technology Group Co., Ltd. Interim Report 2023
Part IX Bonds
Applicable □ Not applicable
I Enterprise Bonds
□ Applicable Not applicable
No enterprise bonds in the Reporting Period.
II Corporate Bonds
Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB’0,000
Balance
Coupon Trade
Bond name Abbr. Bond code Date of issue Value date Maturity (RMB’0,0 Way of redemption
rate place
00)
If the issuer does not execute
its right in the deferred
interest payment,
2022 Public Offering of
corresponding interests shall
Renewable Corporate Bonds of 24 March 25 March 25 March
22BOEY1 149861 200,000 3.50% be paid for this issue of SZSE
BOE (for professional investors) 2022 2022 2025
bonds yearly, and the last
(Digital Economy) (Phase I)
installment of interest shall
be paid with the redemption
of principal.
Appropriate arrangement of the investors (if any) Only for the qualified investors
Applicable trade mechanism centralized bidding trade and negotiated block trade
Risk of delisting (if any) and countermeasures Not
55
BOE Technology Group Co., Ltd. Interim Report 2023
Overdue bonds
□ Applicable Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the Investor Protection Clause
Applicable □ Not applicable
For the renewable corporate bonds “20BOEY1”, “20BOEY2”, “20BOEY3” and “22BOEY1”, 3 interest-bearing years shall be regarded as a cycle. At the end of each cycle, the issuer shall have
the right to conditionally extend the issue of bonds for another cycle (3 years) or choose to fully redeem the due bonds at the end of the cycle. The Company has fully redeemed the "20BOEY1",
“20BOEY2" and “20BOEY3" renewable corporate bonds respectively on 28 February 2023, 20 March 2023 and 27 April 2023. As at the date of approval of this report, the Company has not
exercised the renewal option of issuer. Additionally, as the above-mentioned renewable corporate bonds incorporate the option of issuer to postpone interest payment, the Company has not
exercised such option as at the date of approval of this report.
3. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable Not applicable
4. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measures as well as Influence on Equity of Bond Investors during
the Reporting Period
□ Applicable Not applicable
56
BOE Technology Group Co., Ltd. Interim Report 2023
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable Not applicable
No such cases in the Reporting Period.
IV Convertible Corporate Bonds
□ Applicable Not applicable
No such cases in the Reporting Period.
V Losses of Scope of Consolidated Financial Statements during the Reporting Period Exceeding
10% of Net Assets up the Period-end of Last Year
□ Applicable Not applicable
VI The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0,000
Item 30 June 2023 31 December 2022 Change
Current ratio 1.56 1.66 -6.02%
Debt/asset ratio 52.61% 51.96% 0.65%
Quick ratio 1.26 1.39 -9.35%
Item H1 2023 H1 2022 Change
Net profit before exceptional
-158,444 423,946 -137.37%
gains and losses
EBITDA/debt ratio 12.52% 15.30% -2.78%
Interest cover (times) 0.61 3.93 -84.48%
Cash-to-interest cover (times) 6.35 12.20 -47.95%
EBITDA-to-interest cover
8.24 14.19 -41.93%
(times)
Loan repayment ratio (%) 100.00% 100.00% 0.00%
Interest payment ratio (%) 100.00% 100.00% 0.00%
57
BOE Technology Group Co., Ltd. Interim Report 2023
Part X Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor?
□ Yes No
These interim financial statements have not been audited by an independent auditor.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by BOE Technology Group Co., Ltd.
30 June 2023
Unit: RMB
Item 30 June 2023 1 January 2023
Current assets:
Monetary assets 63,920,860,892.00 68,800,307,369.00
Settlement reserve 0.00 0.00
Interbank loans granted 0.00 0.00
Held-for-trading financial assets 11,595,506,620.00 17,187,993,936.00
Derivative financial assets 0.00 0.00
Notes receivable 236,499,653.00 211,792,061.00
Accounts receivable 27,385,120,678.00 28,203,647,569.00
Accounts receivable financing 0.00 0.00
Prepayments 514,704,768.00 589,764,680.00
Premiums receivable 0.00 0.00
Reinsurance receivables 0.00 0.00
Receivable reinsurance contract reserve 0.00 0.00
Other receivables 623,339,254.00 975,809,236.00
Including: Interest receivable 0.00 0.00
Dividends receivable 22,234,936.00 0.00
Financial assets purchased under resale agreements 0.00 0.00
Inventories 25,631,092,148.00 22,787,814,225.00
Contract assets 84,853,547.00 71,636,461.00
Assets held for sale 0.00 0.00
Current portion of non-current assets 9,038,005.00 8,561,307.00
Other current assets 3,228,004,419.00 3,394,036,919.00
Total current assets 133,229,019,984.00 142,231,363,763.00
Non-current assets:
Loans and advances to customers 0.00 0.00
Investments in debt obligations 0.00 0.00
Investments in other debt obligations 0.00 0.00
Long-term receivables 21,315,882.00 28,637,449.00
Long-term equity investments 13,496,498,758.00 12,421,878,851.00
Investments in other equity instruments 520,058,002.00 483,060,306.00
Other non-current financial assets 2,079,500,212.00 2,022,967,681.00
Investment property 1,133,922,798.00 1,122,025,138.00
Fixed assets 217,485,104,581.00 205,987,050,430.00
58
BOE Technology Group Co., Ltd. Interim Report 2023
Construction in progress 24,587,302,375.00 43,386,134,668.00
Productive living assets 0.00 0.00
Oil and gas assets 0.00 0.00
Right-of-use assets 732,367,564.00 687,120,946.00
Intangible assets 9,218,018,054.00 8,948,327,143.00
Development costs 0.00 0.00
Goodwill 675,109,498.00 660,823,651.00
Long-term prepaid expense 559,848,749.00 556,941,377.00
Deferred income tax assets 76,111,028.00 76,013,149.00
Other non-current assets 5,600,729,606.00 1,955,521,384.00
Total non-current assets 276,185,887,107.00 278,336,502,173.00
Total assets 409,414,907,091.00 420,567,865,936.00
Current liabilities:
Short-term borrowings 1,417,656,654.00 2,373,938,871.00
Borrowings from the central bank 0.00 0.00
Interbank loans obtained 0.00 0.00
Held-for-trading financial liabilities 0.00 0.00
Derivative financial liabilities 0.00 0.00
Notes payable 791,809,127.00 870,221,538.00
Accounts payable 31,303,322,731.00 29,834,720,464.00
Advances from customers 87,615,272.00 79,848,977.00
Contract liabilities 3,063,774,937.00 2,411,717,792.00
Financial assets sold under repurchase agreements 0.00 0.00
Customer deposits and interbank deposits 0.00 0.00
Payables for acting trading of securities 0.00 0.00
Payables for underwriting of securities 0.00 0.00
Employee benefits payable 2,947,353,900.00 2,818,532,823.00
Taxes payable 1,636,536,296.00 1,331,401,188.00
Other payables 19,560,680,858.00 19,632,223,269.00
Including: Interest payable 163,348.00 151,200.00
Dividends payable 84,847,829.00 6,410,514.00
Handling charges and commissions payable 0.00 0.00
Reinsurance payables 0.00 0.00
Liabilities directly associated with assets held for sale 0.00 0.00
Current portion of non-current liabilities 20,803,467,035.00 22,703,750,744.00
Other current liabilities 3,544,265,387.00 3,613,967,673.00
Total current liabilities 85,156,482,197.00 85,670,323,339.00
Non-current liabilities:
Insurance contract reserve 0.00 0.00
Long-term borrowings 121,134,621,227.00 123,143,479,690.00
Bonds payable 0.00 0.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Lease liabilities 600,388,222.00 538,586,010.00
Long-term payables 212,301,613.00 229,587,077.00
Long-term employee benefits payable 0.00 0.00
Provisions 0.00 0.00
Deferred income 4,479,125,511.00 5,156,347,332.00
Deferred income tax liabilities 1,334,020,659.00 1,289,899,658.00
Other non-current liabilities 2,494,840,955.00 2,499,075,805.00
Total non-current liabilities 130,255,298,187.00 132,856,975,572.00
Total liabilities 215,411,780,384.00 218,527,298,911.00
Owners’ equity:
Share capital 38,186,064,811.00 38,196,363,421.00
Other equity instruments 2,008,115,275.00 8,176,366,808.00
Including: Preferred shares 0.00 0.00
59
BOE Technology Group Co., Ltd. Interim Report 2023
Perpetual bonds 2,008,115,275.00 8,176,366,808.00
Capital reserves 55,326,344,280.00 55,218,504,392.00
Less: Treasury stock 3,192,004,285.00 3,508,201,911.00
Other comprehensive income -780,793,751.00 -1,073,768,030.00
Specific reserve 56,260,433.00 0.00
Surplus reserves 3,241,181,456.00 3,241,063,934.00
General reserve 0.00 0.00
Retained earnings 34,186,588,083.00 35,829,351,680.00
Total equity attributable to owners of the Company as the parent 129,031,756,302.00 136,079,680,294.00
Non-controlling interests 64,971,370,405.00 65,960,886,731.00
Total owners’ equity 194,003,126,707.00 202,040,567,025.00
Total liabilities and owners’ equity 409,414,907,091.00 420,567,865,936.00
Legal representative: Chen Yanshun Chief Executive Officer: Gao Wenbao
Chief Financial Officer: Yang Xiaoping Head of the Company’s Financial Department: Teng Jiao
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2023 1 January 2023
Current assets:
Monetary assets 3,526,801,918.00 7,121,641,234.00
Held-for-trading financial assets 0.00 0.00
Derivative financial assets 0.00 0.00
Notes receivable 0.00 0.00
Accounts receivable 5,265,293,085.00 4,863,665,269.00
Accounts receivable financing 0.00 0.00
Prepayments 12,556,998.00 7,045,311.00
Other receivables 24,860,553,352.00 19,878,145,375.00
Including: Interest receivable 0.00 0.00
Dividends receivable 334,081,592.00 333,352,986.00
Inventories 31,180,205.00 15,065,947.00
Contract assets 0.00 0.00
Assets held for sale 0.00 0.00
Current portion of non-current assets 0.00 0.00
Other current assets 33,366,620.00 57,226,515.00
Total current assets 33,729,752,178.00 31,942,789,651.00
Non-current assets:
Investments in debt obligations 0.00 0.00
Investments in other debt obligations 0.00 0.00
Long-term receivables 0.00 0.00
Long-term equity investments 218,229,029,454.00 214,308,953,020.00
Investments in other equity instruments 82,842,547.00 60,434,464.00
Other non-current financial assets 1,472,604,765.00 1,416,072,234.00
Investment property 247,141,795.00 251,870,591.00
Fixed assets 907,564,040.00 921,510,043.00
Construction in progress 641,474,672.00 616,247,335.00
Productive living assets 0.00 0.00
Oil and gas assets 0.00 0.00
Right-of-use assets 106,159,884.00 126,373,643.00
Intangible assets 1,040,393,964.00 1,122,230,564.00
Development costs 0.00 0.00
Goodwill 0.00 0.00
Long-term prepaid expense 373,191,577.00 384,123,386.00
Deferred income tax assets 0.00 0.00
Other non-current assets 3,852,083,138.00 1,080,322,988.00
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BOE Technology Group Co., Ltd. Interim Report 2023
Total non-current assets 226,952,485,836.00 220,288,138,268.00
Total assets 260,682,238,014.00 252,230,927,919.00
Current liabilities:
Short-term borrowings 0.00 0.00
Held-for-trading financial liabilities 0.00 0.00
Derivative financial liabilities 0.00 0.00
Notes payable 0.00 0.00
Accounts payable 430,488,068.00 312,100,258.00
Advances from customers 16,174,192.00 14,819,929.00
Contract liabilities 90,206.00 19,200.00
Employee benefits payable 223,016,167.00 282,792,422.00
Taxes payable 155,008,679.00 139,166,672.00
Other payables 2,971,263,971.00 4,249,391,146.00
Including: Interest payable 0.00 0.00
Dividends payable 6,451,171.00 6,410,514.00
Liabilities directly associated with assets held for sale 0.00 0.00
Current portion of non-current liabilities 3,525,222,265.00 2,704,607,119.00
Other current liabilities 35,593,743.00 20,283,257.00
Total current liabilities 7,356,857,291.00 7,723,180,003.00
Non-current liabilities:
Long-term borrowings 40,116,000,000.00 39,557,500,000.00
Bonds payable 0.00 0.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Lease liabilities 66,995,385.00 85,830,813.00
Long-term payables 0.00 0.00
Long-term employee benefits payable 0.00 0.00
Provisions 0.00 0.00
Deferred income 1,397,862,621.00 1,933,587,746.00
Deferred income tax liabilities 122,773,301.00 111,987,272.00
Other non-current liabilities 111,794,661,805.00 96,394,661,805.00
Total non-current liabilities 153,498,293,112.00 138,083,567,636.00
Total liabilities 160,855,150,403.00 145,806,747,639.00
Owners’ equity:
Share capital 38,186,064,811.00 38,196,363,421.00
Other equity instruments 2,008,115,275.00 8,176,366,808.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 2,008,115,275.00 8,176,366,808.00
Capital reserves 53,796,432,629.00 53,693,627,213.00
Less: Treasury stock 3,192,004,285.00 3,508,201,911.00
Other comprehensive income 24,529,980.00 340,345.00
Specific reserve 0.00 0.00
Surplus reserves 3,241,181,456.00 3,241,063,934.00
Retained earnings 5,762,767,745.00 6,624,620,470.00
Total owners’ equity 99,827,087,611.00 106,424,180,280.00
Total liabilities and owners’ equity 260,682,238,014.00 252,230,927,919.00
3. Consolidated Income Statement
Unit: RMB
Item H1 2023 H1 2022
1. Revenue 80,177,875,220.00 91,610,241,869.00
Including: Operating revenue 80,177,875,220.00 91,610,241,869.00
Interest income 0.00 0.00
Insurance premium income 0.00 0.00
Handling charge and commission income 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2023
2. Costs and expenses 83,839,057,017.00 85,954,099,199.00
Including: Cost of sales 72,933,845,456.00 74,499,068,362.00
Interest expense 0.00 0.00
Handling charge and commission expense 0.00 0.00
Surrenders 0.00 0.00
Net insurance claims paid 0.00 0.00
Net amount provided as insurance contract reserve 0.00 0.00
Expenditure on policy dividends 0.00 0.00
Reinsurance premium expense 0.00 0.00
Taxes and surcharges 540,534,727.00 627,834,518.00
Selling expense 1,927,463,296.00 1,862,479,468.00
Administrative expense 2,733,334,581.00 2,948,599,229.00
R&D expense 5,267,009,863.00 5,362,004,818.00
Finance costs 436,869,094.00 654,112,804.00
Including: Interest expense 1,838,822,216.00 1,503,427,051.00
Interest income 978,583,668.00 651,030,668.00
Add: Other income 2,746,029,724.00 2,976,852,563.00
Return on investment (“-” for loss) 775,299,042.00 646,167,675.00
Including: Share of profit or loss of joint ventures and associates 698,402,235.00 586,980,332.00
Income from the derecognition of financial assets at amortized cost
0.00 0.00
(“-” for loss)
Exchange gain (“-” for loss) 0.00 0.00
Net gain on exposure hedges (“-” for loss) 0.00 0.00
Gain on changes in fair value (“-” for loss) 167,439,034.00 77,771,038.00
Credit impairment loss (“-” for loss) 8,479,174.00 -19,995,527.00
Asset impairment loss (“-” for loss) -1,056,660,701.00 -4,528,459,543.00
Asset disposal income (“-” for loss) 9,272,560.00 3,601,605.00
3. Operating profit (“-” for loss) -1,011,322,964.00 4,812,080,481.00
Add: Non-operating income 195,938,361.00 99,586,182.00
Less: Non-operating expense 31,666,388.00 17,425,496.00
4. Profit before tax (“-” for loss) -847,050,991.00 4,894,241,167.00
Less: Income tax expense 820,532,936.00 1,681,324,244.00
5. Net profit (“-” for net loss) -1,667,583,927.00 3,212,916,923.00
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) -1,667,583,927.00 3,212,916,923.00
5.1.2 Net profit from discontinued operations (“-” for net loss) 0.00 0.00
5.2 By ownership
5.2.1 Net profit attributable to shareholders of the Company as the
735,809,609.00 6,595,661,738.00
parent (“-” for net loss)
5.2.2 Net profit attributable to non-controlling interests (“-” for net
-2,403,393,536.00 -3,382,744,815.00
loss)
6. Other comprehensive income, net of tax 403,948,040.00 -497,059,876.00
Attributable to owners of the Company as the parent 294,149,500.00 -478,538,335.00
6.1 Items that will not be reclassified to profit or loss 23,249,572.00 -20,609,687.00
6.1.1 Changes caused by remeasurements on defined benefit schemes 0.00 0.00
6.1.2 Other comprehensive income that will not be reclassified to
6,317,985.00 -10,265,385.00
profit or loss under the equity method
6.1.3 Changes in the fair value of investments in other equity
16,931,587.00 -10,344,302.00
instruments
6.1.4 Changes in the fair value arising from changes in own credit
0.00 0.00
risk
6.1.5 Other 0.00 0.00
6.2 Items that will be reclassified to profit or loss 270,899,928.00 -457,928,648.00
6.2.1 Other comprehensive income that will be reclassified to profit
0.00 51,684.00
or loss under the equity method
6.2.2 Changes in the fair value of investments in other debt
0.00 0.00
obligations
6.2.3 Other comprehensive income arising from the reclassification of
0.00 0.00
financial assets
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BOE Technology Group Co., Ltd. Interim Report 2023
6.2.4 Credit impairment allowance for investments in other debt
0.00 0.00
obligations
6.2.5 Reserve for cash flow hedges 0.00 0.00
6.2.6 Differences arising from the translation of foreign currency-
270,899,928.00 -457,980,332.00
denominated financial statements
6.2.7 Other 0.00 0.00
Attributable to non-controlling interests 109,798,540.00 -18,521,541.00
7. Total comprehensive income -1,263,635,887.00 2,715,857,047.00
Attributable to owners of the Company as the parent 1,029,959,109.00 6,117,123,403.00
Attributable to non-controlling interests -2,293,594,996.00 -3,401,266,356.00
8. Earnings per share
8.1 Basic earnings per share 0.02 0.17
8.2 Diluted earnings per share 0.02 0.17
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Chen Yanshun Chief Executive Officer: Gao Wenb ao
Chief Financial Officer: Yang Xiaoping Head of the Company’s Financial Department: Teng Jiao
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2023 H1 2022
1. Operating revenue 1,666,351,287.00 2,712,812,036.00
Less: Cost of sales 4,658,611.00 5,281,222.00
Taxes and surcharges 21,158,994.00 26,370,648.00
Selling expense 0.00 0.00
Administrative expense 642,786,470.00 625,941,940.00
R&D expense 967,119,283.00 1,019,595,582.00
Finance costs 194,966,535.00 293,782,658.00
Including: Interest expense 256,256,753.00 322,061,288.00
Interest income 42,139,306.00 53,616,149.00
Add: Other income 480,480,116.00 488,504,655.00
Return on investment (“-” for loss) 1,294,301,319.00 1,516,746,783.00
Including: Share of profit or loss of joint ventures and associates 588,103,242.00 416,617,496.00
Income from the derecognition of financial assets at amortized cost
0.00 0.00
(“-” for loss)
Net gain on exposure hedges (“-” for loss) 0.00 0.00
Gain on changes in fair value (“-” for loss) 49,498,773.00 0.00
Credit impairment loss (“-” for loss) 4,667,251.00 -636,303.00
Asset impairment loss (“-” for loss) -154,130.00 0.00
Asset disposal income (“-” for loss) 703.00 0.00
2. Operating profit (“-” for loss) 1,664,455,426.00 2,746,455,121.00
Add: Non-operating income 3,121,629.00 3,538,481.00
Less: Non-operating expense 231,353.00 882,153.00
3. Profit before tax (“-” for loss) 1,667,345,702.00 2,749,111,449.00
Less: Income tax expense 150,625,221.00 230,231,274.00
4. Net profit (“-” for net loss) 1,516,720,481.00 2,518,880,175.00
4.1 Net profit from continuing operations (“-” for net loss) 1,516,720,481.00 2,518,880,175.00
4.2 Net profit from discontinued operations (“-” for net loss) 0.00 0.00
5. Other comprehensive income, net of tax 25,364,856.00 -9,746,293.00
5.1 Items that will not be reclassified to profit or loss 25,364,856.00 -9,797,977.00
5.1.1 Changes caused by remeasurements on defined benefit schemes 0.00 0.00
5.1.2 Other comprehensive income that will not be reclassified to
6,317,985.00 -10,265,385.00
profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other equity
19,046,871.00 467,408.00
instruments
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BOE Technology Group Co., Ltd. Interim Report 2023
5.1.4 Changes in the fair value arising from changes in own credit
0.00 0.00
risk
5.1.5 Other 0.00 0.00
5.2 Items that will be reclassified to profit or loss 0.00 51,684.00
5.2.1 Other comprehensive income that will be reclassified to profit
0.00 51,684.00
or loss under the equity method
5.2.2 Changes in the fair value of investments in other debt
0.00 0.00
obligations
5.2.3 Other comprehensive income arising from the reclassification of
0.00 0.00
financial assets
5.2.4 Credit impairment allowance for investments in other debt
0.00 0.00
obligations
5.2.5 Reserve for cash flow hedges 0.00 0.00
5.2.6 Differences arising from the translation of foreign currency-
0.00 0.00
denominated financial statements
5.2.7 Other 0.00 0.00
6. Total comprehensive income 1,542,085,337.00 2,509,133,882.00
7. Earnings per share
7.1 Basic earnings per share 0.04 0.06
7.2 Diluted earnings per share 0.04 0.06
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2023 H1 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 85,492,716,009.00 105,748,212,621.00
Net increase in customer deposits and interbank deposits 0.00 0.00
Net increase in borrowings from the central bank 0.00 0.00
Net increase in loans from other financial institutions 0.00 0.00
Premiums received on original insurance contracts 0.00 0.00
Net proceeds from reinsurance 0.00 0.00
Net increase in deposits and investments of policy holders 0.00 0.00
Interest, handling charges and commissions received 0.00 0.00
Net increase in interbank loans obtained 0.00 0.00
Net increase in proceeds from repurchase transactions 0.00 0.00
Net proceeds from acting trading of securities 0.00 0.00
Tax rebates 5,175,265,145.00 11,422,361,466.00
Cash generated from other operating activities 3,319,951,107.00 5,584,434,829.00
Subtotal of cash generated from operating activities 93,987,932,261.00 122,755,008,916.00
Payments for commodities and services 64,067,391,607.00 76,855,395,277.00
Net increase in loans and advances to customers 0.00 0.00
Net increase in deposits in the central bank and in interbank loans
0.00 0.00
granted
Payments for claims on original insurance contracts 0.00 0.00
Net increase in interbank loans granted 0.00 0.00
Interest, handling charges and commissions paid 0.00 0.00
Policy dividends paid 0.00 0.00
Cash paid to and for employees 9,063,210,388.00 11,234,924,468.00
Taxes paid 2,054,933,349.00 3,972,911,897.00
Cash used in other operating activities 2,558,727,794.00 2,579,776,609.00
Subtotal of cash used in operating activities 77,744,263,138.00 94,643,008,251.00
Net cash generated from/used in operating activities 16,243,669,123.00 28,112,000,665.00
2. Cash flows from investing activities:
Proceeds from disinvestment 42,819,205,131.00 35,710,798,594.00
Return on investment 335,703,497.00 178,876,792.00
Net proceeds from the disposal of fixed assets, intangible assets and
15,350,205.00 4,016,426.00
other long-lived assets
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BOE Technology Group Co., Ltd. Interim Report 2023
Net proceeds from the disposal of subsidiaries and other business
0.00 0.00
units
Cash generated from other investing activities 2,109,245,407.00 627,086,392.00
Subtotal of cash generated from investing activities 45,279,504,240.00 36,520,778,204.00
Payments for the acquisition of fixed assets, intangible assets and
9,606,032,165.00 15,758,092,463.00
other long-lived assets
Payments for investments 37,684,686,228.00 42,524,036,688.00
Net increase in pledged loans granted 0.00 0.00
Net payments for the acquisition of subsidiaries and other business
0.00 0.00
units
Cash used in other investing activities 11,541,974.00 1,080,339,563.00
Subtotal of cash used in investing activities 47,302,260,367.00 59,362,468,714.00
Net cash generated from/used in investing activities -2,022,756,127.00 -22,841,690,510.00
3. Cash flows from financing activities:
Capital contributions received 1,302,100,202.00 3,073,997,000.00
Including: Capital contributions by non-controlling interests to
1,302,100,202.00 1,073,997,000.00
subsidiaries
Borrowings raised 15,195,788,662.00 32,623,869,532.00
Cash generated from other financing activities 1,528,590.00 5,212,625.00
Subtotal of cash generated from financing activities 16,499,417,454.00 35,703,079,157.00
Repayment of borrowings 20,880,858,261.00 27,288,608,429.00
Interest and dividends paid 5,419,025,898.00 10,659,724,426.00
Including: Dividends paid by subsidiaries to non-controlling interests 0.00 0.00
Cash used in other financing activities 9,014,541,065.00 932,991,206.00
Subtotal of cash used in financing activities 35,314,425,224.00 38,881,324,061.00
Net cash generated from/used in financing activities -18,815,007,770.00 -3,178,244,904.00
4. Effect of foreign exchange rates changes on cash and cash
800,373,886.00 1,089,527,368.00
equivalents
5. Net increase in cash and cash equivalents -3,793,720,888.00 3,181,592,619.00
Add: Cash and cash equivalents, beginning of the period 64,382,037,764.00 76,623,486,083.00
6. Cash and cash equivalents, end of the period 60,588,316,876.00 79,805,078,702.00
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2023 H1 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 1,269,226,153.00 3,060,528,996.00
Tax rebates 0.00 0.00
Cash generated from other operating activities 392,751,073.00 1,115,844,542.00
Subtotal of cash generated from operating activities 1,661,977,226.00 4,176,373,538.00
Payments for commodities and services 492,729,509.00 610,354,078.00
Cash paid to and for employees 757,624,819.00 1,117,218,033.00
Taxes paid 245,139,284.00 585,318,767.00
Cash used in other operating activities 1,064,303,277.00 26,588,246.00
Subtotal of cash used in operating activities 2,559,796,889.00 2,339,479,124.00
Net cash generated from/used in operating activities -897,819,663.00 1,836,894,414.00
2. Cash flows from investing activities:
Proceeds from disinvestment 8,005,131.00 169,798,594.00
Return on investment 886,073,757.00 468,135,647.00
Net proceeds from the disposal of fixed assets, intangible assets and
8,482.00 0.00
other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
0.00 0.00
units
Cash generated from other investing activities 813,908,196.00 2,743,609,848.00
Subtotal of cash generated from investing activities 1,707,995,566.00 3,381,544,089.00
Payments for the acquisition of fixed assets, intangible assets and
512,646,566.00 425,914,421.00
other long-lived assets
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BOE Technology Group Co., Ltd. Interim Report 2023
Payments for investments 3,309,208,139.00 1,987,008,586.00
Net payments for the acquisition of subsidiaries and other business
0.00 0.00
units
Cash used in other investing activities 8,239,614,905.00 8,169,528,356.00
Subtotal of cash used in investing activities 12,061,469,610.00 10,582,451,363.00
Net cash generated from/used in investing activities -10,353,474,044.00 -7,200,907,274.00
3. Cash flows from financing activities:
Capital contributions received 0.00 2,000,000,000.00
Borrowings raised 4,700,000,000.00 18,500,000,000.00
Cash generated from other financing activities 15,400,000,000.00 12,710,000,000.00
Subtotal of cash generated from financing activities 20,100,000,000.00 33,210,000,000.00
Repayment of borrowings 3,319,000,000.00 14,039,500,000.00
Interest and dividends paid 3,124,115,362.00 8,778,110,111.00
Cash used in other financing activities 6,024,923,290.00 282,280,201.00
Subtotal of cash used in financing activities 12,468,038,652.00 23,099,890,312.00
Net cash generated from/used in financing activities 7,631,961,348.00 10,110,109,688.00
4. Effect of foreign exchange rates changes on cash and cash
28,438,446.00 6,521,149.00
equivalents
5. Net increase in cash and cash equivalents -3,590,893,913.00 4,752,617,977.00
Add: Cash and cash equivalents, beginning of the period 7,111,879,033.00 5,591,885,722.00
6. Cash and cash equivalents, end of the period 3,520,985,120.00 10,344,503,699.00
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BOE Technology Group Co., Ltd. Interim Report 2023
7. Consolidated Statements of Changes in Owners’ Equity
H1 2023
Unit: RMB
H1 2023
Equity attributable to owners of the Company as the parent
Other equity instruments
Item Pref Other Gener Non-
Less: Total owners’
erre Capital comprehe Specific Surplus al Retained Othe controllin
Share capital Perpetual Othe Treasury Subtotal equity
d reserves nsive reserve reserves reserv earnings r g interests
bonds r stock
shar income e
es
1. Balance as at -
the end of the 8,176,366,8 55,218,504, 3,508,201, 3,241,063, 35,829,351, 136,079,680 65,960,88 202,040,567,0
38,196,363,421.00 0.00 0.00 1,073,768, 0.00 0.00 0.00
period of prior 08.00 392.00 911.00 934.00 680.00 ,294.00 6,731.00 25.00
year 030.00
Add:
Adjustment for
change in 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
accounting
policy
Adjustment for
correction of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
previous error
Adjustment for
business
combination 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
under common
control
Other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
adjustments
2. Balance as at -
the beginning of 8,176,366,8 55,218,504, 3,508,201, 3,241,063, 35,829,351, 136,079,680 65,960,88 202,040,567,0
38,196,363,421.00 0.00 0.00 1,073,768, 0.00 0.00 0.00
the Reporting 08.00 392.00 911.00 934.00 680.00 ,294.00 6,731.00 25.00
Period 030.00
3. Increase/ - - - - - -
decrease in the 107,839,888 292,974,2 56,260,43 117,522.0
-10,298,610.00 0.00 6,168,251,5 0.00 316,197,6 0.00 1,642,763,5 0.00 7,047,923,9 989,516,3 8,037,440,318
period (“-” for .00 79.00 3.00 0
decrease) 33.00 26.00 97.00 92.00 26.00 .00
3.1 Total - -
294,149,5 735,809,609 1,029,959,1
comprehensive 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,293,594, 1,263,635,887
income 00.00 .00 09.00
996.00 .00
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BOE Technology Group Co., Ltd. Interim Report 2023
3.2 Capital - - - -
increased and 90,695,386. 1,357,218,
-10,298,610.00 0.00 5,967,915,0 0.00 299,023,7 0.00 0.00 0.00 0.00 0.00 0.00 5,588,494,5 4,231,276,211
reduced by 00 378.00
owners 94.00 29.00 89.00 .00
3.2.1 Ordinary
1,345,108, 1,345,108,348
shares increased 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
by owners 348.00 .00
3.2.2 Capital
increased by - - - -
holders of other 0.00 0.00 5,967,915,0 0.00 32,084,906. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,000,000,0 0.00 6,000,000,000
equity 94.00 00 00.00 .00
instruments
3.2.3 Share- -
based payments 171,294,839 411,505,411 12,110,03 423,615,441.0
0.00 0.00 0.00 0.00 240,210,5 0.00 0.00 0.00 0.00 0.00 0.00
included in .00 .00 0.00 0
owners’ equity 72.00
- -
3.2.4 Other -10,298,610.00 0.00 0.00 0.00 48,514,547. 58,813,15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
00 7.00
- - - - - -
3.3 Profit
0.00 0.00 200,336,43 0.00 0.00 17,173,89 0.00 0.00 0.00 0.00 2,379,630,9 0.00 2,562,793,4 73,637,38 2,636,430,832
distribution
9.00 7.00 05.00 47.00 5.00 .00
3.3.1
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to surplus
reserves
3.3.2
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to general
reserve
3.3.3 - - - - -
Appropriation
0.00 0.00 0.00 0.00 0.00 17,173,89 0.00 0.00 0.00 0.00 2,296,367,3 0.00 2,279,193,4 73,637,38 2,352,830,832
to owners (or
shareholders) 7.00 44.00 47.00 5.00 .00
- - - -
3.3.4 Other 0.00 0.00 200,336,43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 83,263,561. 0.00 283,600,000 0.00 283,600,000.0
9.00 00 .00 0
3.4 Transfers -
117,522.0 1,057,699.0
within owners’ 0.00 0.00 0.00 0.00 0.00 0.00 1,175,221. 0.00 0.00 0.00 0.00 0.00 0.00
equity 0 0
00
3.4.1 Increase
in capital (or 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
share capital)
68
BOE Technology Group Co., Ltd. Interim Report 2023
from capital
reserves
3.4.2 Increase
in capital (or
share capital) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
from surplus
reserves
3.4.3 Loss
offset by surplus 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserves
3.4.4
Changes in
defined benefit
schemes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
transferred to
retained
earnings
3.4.5 Other
comprehensive -
income 117,522.0 1,057,699.0
0.00 0.00 0.00 0.00 0.00 0.00 1,175,221. 0.00 0.00 0.00 0.00 0.00 0.00
transferred to 0 0
retained 00
earnings
3.4.6 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5 Specific 56,260,43 56,260,433. 10,322,14
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 66,582,581.00
reserve 3.00 00 8.00
3.5.1 Increase 97,538,62 97,538,621. 19,966,62 117,505,249.0
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
in the period 1.00 00 8.00 0
3.5.2 Used in 41,278,18 41,278,188. 9,644,480.
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 50,922,668.00
the period 8.00 00 00
17,144,502. 17,144,502. 10,175,52
3.6 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 27,320,031.00
00 00 9.00
4. Balance as at -
the end of the 2,008,115,2 55,326,344, 3,192,004, 56,260,43 3,241,181, 34,186,588, 129,031,756 64,971,37 194,003,126,7
38,186,064,811.00 0.00 0.00 780,793,7 0.00 0.00
Reporting 75.00 280.00 285.00 3.00 456.00 083.00 ,302.00 0,405.00 07.00
Period 51.00
H1 2022
Unit: RMB
H1 2022
Item Equity attributable to owners of the Company as the parent Non- Total owners’
Share capital Other equity instruments Capital Less: Other Specific Surplus Gener Retained Othe Subtotal controllin equity
69
BOE Technology Group Co., Ltd. Interim Report 2023
Pref reserves Treasury comprehe reserve reserves al earnings r g interests
erre stock nsive reserv
Perpetual Othe
d income e
bonds r
shar
es
1. Balance as at
the end of the 14,146,997, 53,917,609, 3,415,768, 113,551,1 2,889,590, 37,106,514, 143,204,240 74,174,52 217,378,766,5
38,445,746,482.00 0.00 0.00 0.00 0.00 0.00
period of prior 427.00 094.00 207.00 47.00 205.00 799.00 ,947.00 5,569.00 16.00
year
Add:
Adjustment for - -
change in 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,403,546.0 0.00 6,403,546.0 0.00 -6,403,546.00
accounting 0 0
policy
Adjustment for
correction of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
previous error
Adjustment for
business
combination 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
under common
control
Other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
adjustments
2. Balance as at
the beginning of 14,146,997, 53,917,609, 3,415,768, 113,551,1 2,889,590, 37,100,111, 143,197,837 74,174,52 217,372,362,9
38,445,746,482.00 0.00 0.00 0.00 0.00 0.00
the Reporting 427.00 094.00 207.00 47.00 205.00 253.00 ,401.00 5,569.00 70.00
Period
3. Increase/ - - - -
decrease in the 2,059,216,7 506,929,092 214,322,5 628,334.0 230,730,092
0.00 0.00 0.00 484,821,6 0.00 0.00 1,636,899,8 0.00 2,532,282, 2,301,552,196
period (“-” for 38.00 .00 69.00 0 .00
decrease) 71.00 32.00 288.00 .00
3.1 Total - -
6,595,661,7 6,117,123,4 2,715,857,047
comprehensive 0.00 0.00 0.00 0.00 0.00 0.00 478,538,3 0.00 0.00 0.00 0.00 3,401,266,
income 38.00 03.00 .00
35.00 356.00
3.2 Capital
increased and 1,989,415,0 506,559,784 214,322,5 2,281,652,3 910,245,5 3,191,897,899
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduced by 94.00 .00 69.00 09.00 90.00 .00
owners
3.2.1 Ordinary
1,073,997, 1,073,997,000
shares increased 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
by owners 000.00 .00
3.2.2 Capital
1,989,415,0 1,989,415,0 1,989,415,094
increased by 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
holders of other 94.00 94.00 .00
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BOE Technology Group Co., Ltd. Interim Report 2023
equity
instruments
3.2.3 Share- -
based payments 305,704,628 366,122,260 20,365,18 386,487,446.0
0.00 0.00 0.00 0.00 60,417,63 0.00 0.00 0.00 0.00 0.00 0.00
included in .00 .00 6.00 0
owners’ equity 2.00
- - -
200,855,156 274,740,2
3.2.4 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 73,885,045. 184,116,5 258,001,641.0
.00 01.00
00 96.00 0
- - - -
3.3 Profit 69,801,644.
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,238,216,5 0.00 8,168,414,9 41,261,52 8,209,676,450
distribution 00
72.00 28.00 2.00 .00
3.3.1
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to surplus
reserves
3.3.2
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
to general
reserve
3.3.3 - - - -
Appropriation
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,954,814,9 0.00 7,954,814,9 41,261,52 7,996,076,450
to owners (or
shareholders) 28.00 28.00 2.00 .00
- - -
69,801,644.
3.3.4 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 283,401,644 0.00 213,600,000 0.00 213,600,000.0
00
.00 .00 0
3.4 Transfers -
628,334.0 5,655,002.0
within owners’ 0.00 0.00 0.00 0.00 0.00 0.00 6,283,336. 0.00 0.00 0.00 0.00 0.00 0.00
equity 0 0
00
3.4.1 Increase
in capital (or
share capital) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
from capital
reserves
3.4.2 Increase
in capital (or
share capital) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
from surplus
reserves
3.4.3 Loss
offset by surplus 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserves
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BOE Technology Group Co., Ltd. Interim Report 2023
3.4.4
Changes in
defined benefit
schemes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
transferred to
retained
earnings
3.4.5 Other
comprehensive -
income 628,334.0 5,655,002.0
0.00 0.00 0.00 0.00 0.00 0.00 6,283,336. 0.00 0.00 0.00 0.00 0.00 0.00
transferred to 0 0
retained 00
earnings
3.4.6 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.5 Specific
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.5.1 Increase
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
in the period
3.5.2 Used in
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.6 Other 0.00 0.00 0.00 0.00 369,308.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 369,308.00 0.00 369,308.00
4. Balance as at -
the end of the 16,206,214, 54,424,538, 3,630,090, 2,890,218, 35,463,211, 143,428,567 71,642,24 215,070,810,7
38,445,746,482.00 0.00 0.00 371,270,5 0.00 0.00 0.00
Reporting 165.00 186.00 776.00 539.00 421.00 ,493.00 3,281.00 74.00
Period 24.00
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BOE Technology Group Co., Ltd. Interim Report 2023
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2023
Unit: RMB
H1 2023
Other equity instruments
Pref Spe
Item Other
erre Less: Treasury cific Oth Total owners’
Share capital Oth Capital reserves comprehensive Surplus reserves Retained earnings
d Perpetual bonds stock rese er equity
er income
shar rve
es
1. Balance
as at the end
106,424,180,280.
of the 38,196,363,421.00 0.00 8,176,366,808.00 0.00 53,693,627,213.00 3,508,201,911.00 340,345.00 0.00 3,241,063,934.00 6,624,620,470.00 0.00
period of 00
prior year
Add:
Adjustment
for change
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
in
accounting
policy
Adjustment
for
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
correction
of previous
error
Other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
adjustments
2. Balance
as at the
beginning 106,424,180,280.
38,196,363,421.00 0.00 8,176,366,808.00 0.00 53,693,627,213.00 3,508,201,911.00 340,345.00 0.00 3,241,063,934.00 6,624,620,470.00 0.00
of the 00
Reporting
Period
3. Increase/
decrease in
-
the period -10,298,610.00 0.00 -6,168,251,533.00 0.00 102,805,416.00 -316,197,626.00 24,189,635.00 0.00 117,522.00 -861,852,725.00 0.00
(“-” for 6,597,092,669.00
decrease)
3.1 Total
0.00 0.00 0.00 0.00 0.00 0.00 25,364,856.00 0.00 0.00 1,516,720,481.00 0.00 1,542,085,337.00
comprehens
73
BOE Technology Group Co., Ltd. Interim Report 2023
ive income
3.2 Capital
increased -
-10,298,610.00 0.00 -5,967,915,094.00 0.00 102,805,416.00 -299,023,729.00 0.00 0.00 0.00 0.00 0.00
and reduced 5,576,384,559.00
by owners
3.2.1
Ordinary
shares 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
increased by
owners
3.2.2
Capital
increased by -
0.00 0.00 -5,967,915,094.00 0.00 -32,084,906.00 0.00 0.00 0.00 0.00 0.00 0.00
holders of 6,000,000,000.00
other equity
instruments
3.2.3 Share-
based
payments
0.00 0.00 0.00 0.00 183,404,869.00 -240,210,572.00 0.00 0.00 0.00 0.00 0.00 423,615,441.00
included in
owners’
equity
3.2.4 Other -10,298,610.00 0.00 0.00 0.00 -48,514,547.00 -58,813,157.00 0.00 0.00 0.00 0.00 0.00 0.00
3.3 Profit -
0.00 0.00 -200,336,439.00 0.00 0.00 -17,173,897.00 0.00 0.00 0.00 -2,379,630,905.00 0.00
distribution 2,562,793,447.00
3.3.1
Appropriati
on to 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
surplus
reserves
3.3.2
Appropriati
on to -
0.00 0.00 0.00 0.00 0.00 -17,173,897.00 0.00 0.00 0.00 -2,296,367,344.00 0.00
owners (or 2,279,193,447.00
shareholders
)
3.3.3
0.00 0.00 -200,336,439.00 0.00 0.00 0.00 0.00 0.00 0.00 -83,263,561.00 0.00 -283,600,000.00
Other
3.4
Transfers
within 0.00 0.00 0.00 0.00 0.00 0.00 -1,175,221.00 0.00 117,522.00 1,057,699.00 0.00 0.00
owners’
equity
3.4.1
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Increase in
74
BOE Technology Group Co., Ltd. Interim Report 2023
capital (or
share
capital)
from capital
reserves
3.4.2
Increase in
capital (or
share
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
capital)
from
surplus
reserves
3.4.3
Loss offset
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
by surplus
reserves
3.4.4
Changes in
defined
benefit
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
schemes
transferred
to retained
earnings
3.4.5
Other
comprehens
ive income 0.00 0.00 0.00 0.00 0.00 0.00 -1,175,221.00 0.00 117,522.00 1,057,699.00 0.00 0.00
transferred
to retained
earnings
3.4.6
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.5 Specific
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.5.1
Increase in 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.5.2
Used in the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
3.6 Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Balance 99,827,087,611.0
38,186,064,811.00 0.00 2,008,115,275.00 0.00 53,796,432,629.00 3,192,004,285.00 24,529,980.00 0.00 3,241,181,456.00 5,762,767,745.00 0.00
as at the end 0
75
BOE Technology Group Co., Ltd. Interim Report 2023
of the
Reporting
Period
H1 2022
Unit: RMB
H1 2022
Other equity instruments
Pref Spec
Item Other
erre Less: Treasury ific Othe Total owners’
Share capital Othe Capital reserves comprehensive Surplus reserves Retained earnings
d Perpetual bonds stock reser r equity
r income
shar ve
es
1. Balance
as at the end
117,704,599,63
of the 38,445,746,482.00 0.00 14,146,997,427.00 0.00 53,598,033,152.00 3,415,768,207.00 89,024,650.00 0.00 2,889,590,205.00 11,950,975,927.00 0.00
period of 6.00
prior year
Add:
Adjustment
for change
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
in
accounting
policy
Adjustment
for
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
correction
of previous
error
Other
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
adjustments
2. Balance
as at the
beginning of 117,704,599,63
38,445,746,482.00 0.00 14,146,997,427.00 0.00 53,598,033,152.00 3,415,768,207.00 89,024,650.00 0.00 2,889,590,205.00 11,950,975,927.00 0.00
the 6.00
Reporting
Period
3. Increase/
decrease in -
the period 0.00 0.00 2,059,216,738.00 0.00 326,439,122.00 214,322,569.00 -16,029,629.00 0.00 628,334.00 -5,713,681,395.00 0.00 3,557,749,399.0
(“-” for 0
decrease)
3.1 Total 0.00 0.00 0.00 0.00 0.00 0.00 -9,746,293.00 0.00 0.00 2,518,880,175.00 0.00 2,509,133,882.0
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BOE Technology Group Co., Ltd. Interim Report 2023
comprehens 0
ive income
3.2 Capital
increased 2,101,162,339.0
0.00 0.00 1,989,415,094.00 0.00 326,069,814.00 214,322,569.00 0.00 0.00 0.00 0.00 0.00
and reduced 0
by owners
3.2.1
Ordinary
shares 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
increased by
owners
3.2.2
Capital
increased by 1,989,415,094.0
0.00 0.00 1,989,415,094.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
holders of 0
other equity
instruments
3.2.3 Share-
based
payments
0.00 0.00 0.00 0.00 326,069,814.00 -60,417,632.00 0.00 0.00 0.00 0.00 0.00 386,487,446.00
included in
owners’
equity
3.2.4 Other 0.00 0.00 0.00 0.00 0.00 274,740,201.00 0.00 0.00 0.00 0.00 0.00 -274,740,201.00
-
3.3 Profit
0.00 0.00 69,801,644.00 0.00 0.00 0.00 0.00 0.00 0.00 -8,238,216,572.00 0.00 8,168,414,928.0
distribution
0
3.3.1
Appropriati
on to 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
surplus
reserves
3.3.2
Appropriati -
on to
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -7,954,814,928.00 0.00 7,954,814,928.0
owners (or
shareholders 0
)
3.3.3
0.00 0.00 69,801,644.00 0.00 0.00 0.00 0.00 0.00 0.00 -283,401,644.00 0.00 -213,600,000.00
Other
3.4
Transfers
within 0.00 0.00 0.00 0.00 0.00 0.00 -6,283,336.00 0.00 628,334.00 5,655,002.00 0.00 0.00
owners’
equity
77
BOE Technology Group Co., Ltd. Interim Report 2023
3.4.1
Increase in
capital (or
share 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
capital)
from capital
reserves
3.4.2
Increase in
capital (or
share 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
capital)
from surplus
reserves
3.4.3
Loss offset
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
by surplus
reserves
3.4.4
Changes in
defined
benefit
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
schemes
transferred
to retained
earnings
3.4.5
Other
comprehens
ive income 0.00 0.00 0.00 0.00 0.00 0.00 -6,283,336.00 0.00 628,334.00 5,655,002.00 0.00 0.00
transferred
to retained
earnings
3.4.6
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other
3.5 Specific
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserve
3.5.1
Increase in 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
3.5.2
Used in the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
period
3.6 Other 0.00 0.00 0.00 0.00 369,308.00 0.00 0.00 0.00 0.00 0.00 0.00 369,308.00
4. Balance 38,445,746,482.00 0.00 16,206,214,165.00 0.00 53,924,472,274.00 3,630,090,776.00 72,995,021.00 0.00 2,890,218,539.00 6,237,294,532.00 0.00 114,146,850,23
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BOE Technology Group Co., Ltd. Interim Report 2023
as at the end 7.00
of the
Reporting
Period
79
BOE Technology Group Co., Ltd. Interim Report 2023
III Company Profile
Founded in Beijing on 9 April 1993 and headquartered in the city, BOE Technology Group Co., Ltd. (hereinafter referred to as the
“Company”) is a company limited by shares. Its parent and ultimate controller is Beijing Electronics Holding Co., Ltd. (“Electronics
Holding”).
The Company and its affiliated subsidiaries (hereinafter jointly referred to as the “Group”) are divided into five major business divisions,
namely, display business, Internet of Things (IoT) innovation business, sensor business, MLED business and smart medicine &
engineering business. For information about the Company’s subsidiaries, see Note IX herein.
The consolidation scope for consolidated financial statements was determined based on control including the Company and subsidiaries
controlled by the Company.
Information about subsidiaries was presented in Note IX.
The increase and decrease of subsidiaries was listed in Note VIII.
IV Basis for the Preparation of Financial Statements
1. Preparation Basis
The financial statements have been prepared on the basis of going concern.
2. Continuing Operations
The Company had the continuing operations ability within 12 months since the end of the Reporting Period.
V Significant Accounting Policies and Estimates
Reminder of the specific accounting policies and estimates:
Naught
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in accordance with the requirements of Accounting Standards for Business Enterprises
issued by the Ministry of Finance (hereinafter referred to as MOF). These financial statements present truly and completely the
consolidated financial position and financial position as of 30 June 2023, the consolidated results of operations and results of operations
and the consolidated cash flows and cash flows in the first half year of 2023 of the Company.
These financial statements also comply with the disclosure requirements of “Regulation on the Preparation of Information Disclosures
by Companies Issuing Securities, No. 15: General Requirements for Financial Reports” as revised by the China Securities Regulatory
Commission (“CSRC”) in 2014.
2. Accounting period
The accounting year of the Group is from January 1 st to December 31st.
3. Operating Cycle
The Company regarded the period from purchasing the assets for processing to realizing the cash or cash equivalents as the normal
operating cycle. The operating cycle of the main business of the Company usually is less than 12 months.
4. Recording Currency
The Company’s functional currency is Renminbi. These financial statements are presented in Renminbi. The basis of choosing the
functional currency for the Company and its subsidiaries is that it’s the pricing and settlement currency for the main business. Some
subsidiaries of the Company adopt the currency other than RMB as the recording currency. The Company translates the foreign
currency financial statement of subsidiaries when compiling the financial statement in accordance with V Significant Accounting
Policies and Estimates-9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements.
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BOE Technology Group Co., Ltd. Interim Report 2023
5. Accounting Treatments for a Business Combination Involving Entities Under and those not Under
Common Control
(1) Business combination involving entities under common control
A business combination involving enterprises under common control is a business combination in which all of the combining
enterprises are ultimately controlled by the same party or parties both before and after the business combination, and that control is not
transitory. The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being combined at the
combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of consideration paid
for the combination (or the total face value of shares issued) is adjusted to share premium in the capital reserve. If the balance of share
premium is insufficient, any excess is adjusted to retained earnings. Other direct expenses occur when the Group conducting business
combinations is recognized in current profit and loss. The combination date is the date on which one combining enterprise effectively
obtains control of the other combining enterprises.
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business combination in which all of the combining entities
are not ultimately controlled by the same party or parties both before and after the business combination. When the Group acts as the
combination party, the cost of a business combination paid by the acquirer is the aggregate of the fair value at the acquisition date of
assets given (including share equity of the acquiree held before the combination date), liabilities incurred or assumed, and equity
securities issued by the acquirer. Any excess of the cost of a business combination over the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets is recognized as goodwill, while any excess of the acquirer’s interest in the fair value of the acquiree’s
identifiable net assets over the cost of a business combination is recognized in profit or loss. The cost of equity securities or liability
securities as on combination consideration offering is recognized in initial recording capital on equity securities or liability securities.
Other direct expenses occur when the Group conducting business combinations is recognized in current profit and loss. The difference
between the fair value and the carrying amount of the assets given is recognized in profit or loss. The Group, at the acquisition date,
recognized the acquiree’s identifiable asset, liabilities and contingent liabilities at their fair value at that date. The acquisition date is
the date on which the acquirer effectively obtains control of the acquiree.
In a business combination not under same control realized by two or more transactions of exchange, for the equities of the purchases
held before the purchase date, the Group will execute the remeasurement according to the fair value of the equity on the purchase date
with the difference between the fair value and its book value be recorded in the current investment income or other comprehensive
income. The other comprehensive income which could be reclassified in the gains and losses afterwards under the measurement of the
equity method and the changes of the equities of the other owners that involved with the afterwards equity of the purchases held before
the purchase date should be transferred in the current investment income. When the equity in the acquiree held before the acquisition
date is the investment in equity instrument at fair value through other comprehensive income, the other comprehensive income
recognized before the acquisition date shall be transferred into retained earnings on the acquisition date.
6. Preparation Methods for Consolidated Financial Statements
(1) General principle
The scope of consolidated financial statements is determined on the base of control, which comprise the Company and its subsidiaries.
The term “control” is the power of the Group upon an investee, with which it can take part in relevant activities of the investee to obtain
variable returns and is able to influence the amount of returns. When judging whether the Group owns the right on the investees or not,
the Group only considers the substantive rights related to the investees (including the substantive rights enjoyed by the Group itself
and by the other parties). The financial status, operating results and cash flow of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.
Equity, profit or loss attributable to minority shareholders is presented separately under the item of shareholders’ equity in consolidated
income statement and the net profits in the consolidated income statement.
If current loss shoulder by minority shareholders of a subsidy over the proportion enjoyed by minority shareholders in a subsidy at
owners’ equity at period-begin, its balance still offset minority shareholders’ equity.
When the accounting period or accounting policies of a subsidiary are different from those of the Company, the Company makes
necessary adjustments to the financial statements of the subsidiary based on the Company’s own accounting period or accounting
policies. Intra-group balances and transactions, and any unrealized profit or loss arising from intra-group transactions, are eliminated
in preparing the consolidated financial statements. Unrealized losses resulting from intra-group transactions are eliminated in the same
way as unrealized gains but only to the extent that there is no evidence of impairment.
(2) Acquiring the subsidiaries from merger
Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities under common control,
the financial statements of the subsidiary are included in the consolidated financial statements based on book value in the consolidated
balance sheet of the subsidiary’s assets, liabilities and results of operations as if the combination had occurred at the date that common
control was established. Therefore the opening balances and the comparative figures of the consolidated financial statements are
restated.
Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities not under common
control, when prepared the consolidated financial statements, the Company shall included the acquired subsidiaries into the
consolidated scope from the acquisition date basing on the fair value of the identifiable assets, liabilities at the acquisition date.
(3) Disposing the subsidiaries
Where the control of former subsidiary was lost, any disposal profit or loss occurred shall be recorded into the investment income
81
BOE Technology Group Co., Ltd. Interim Report 2023
during the period of losing control right. As for remaining equity investment, the Group will re-account it according to the fair value
at the date the control was lost. Any profit or loss occurred shall be recorded into the investment income during the period of losing
control right.
Where the Group losses control on its original subsidiaries due to step by step disposal of equity investments through multiple
transactions, should judge whether is the package deal according to the following principles:
- These deals are at the same time or under the condition of considering the influence of each other to concluded;
- These transactions only when be regarded as a whole could achieve a complete business result;
- The occurrence of a deal depends on at least one other transactions；
- A deal alone is not economical, it is economical with other trading together.
If each deal not belongs to a package deal, as for each deal before losing the control right on the subsidiaries, should be disposed
according to the accounting policies of partly disposing the equity investment of the subsidiaries under the situation not losing the
control right.
If each deal belongs to a package deal, considered as a transaction and conduct accounting treatment, however, before losing control,
the differences between every disposal cost and the shares of the book value of the corresponding net assets continuously calculated
since the purchase date of the subsidiary of disposal investment are confirmed as other comprehensive income in consolidated financial
statements, which together transferred into the current profits and losses in the loss of control , when the Group losing control on its
subsidiary.
(4) Changes of non-controlling interests
Where the Company acquires a minority interest from a subsidiary’s minority shareholders or disposes of a portion of an interest in a
subsidiary without a change in control, the difference between the amount by which the minority interests are adjusted and the amount
of the consideration paid or received is adjusted to the capital reserve (share premium) in the consolidated balance sheet. If the credit
balance of capital reserve (share premium) is insufficient, any excess is adjusted to retained earnings.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and all the participants are restricted by
the arrangement; and two or more participants execute the jointly control on the arrangement. Any of the participant should not
individually control the arrangement, while any of the participant that owns the jointly control could stop other participants or the
participants group from individually control the arrangement.
Joint arrangements divided into joint operations and joint ventures. A joint operation refers to a joint arrangement where the participant
party enjoys assets and has to bear liabilities related to the arrangement. A joint venture refers to a joint arrangement where the
participant party is only entitled to the net assets of the arrangement.
The participant party should confirm the following items related to the interests portion among the jointly operation and execute the
accounting treatment according to the regulations of the relevant ASBE: recognizes the assets and liabilities that it holds and bears in
the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities according to the Group’s stake in the joint
operation; recognizes the income from sale of the Group’s share in the output of the joint operation; recognizes the income from sale
of the joint operation’s outputs according to the Group’s stake in it; and recognizes the expense solely incurred to the Group and the
expense incurred to the joint operation according to the Group’s stake in it.
8. Recognition Standard for Cash and Cash Equivalents
In the Group’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and short-term
and high circulating investments, which are easily convertible into known amount of cash and whose risks in change of value are
minimal.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
When the Group receives capital in foreign currencies from investors, the capital is translated to Renminbi at the spot exchange rate at
the date of the receipt. Other foreign currency transactions are, on initial recognition, translated to Renminbi at the spot exchange rates
at the dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at the balance sheet date. The
resulting exchange differences are recognized in profit or loss, except those arising from the principals and interests on foreign currency
borrowings specifically for the purpose of acquisition, construction of qualifying assets. Non-monetary items denominated in foreign
currencies that are measured at historical cost are translated to Renminbi using the foreign exchange rate at the transaction date. Non-
monetary items denominated in foreign currencies that are measured at fair value are translated using the foreign exchange rate at the
date the fair value is determined; the exchange differences, if it’s the difference arising from the non-monetary item of non-transactional
equity investments designated to be measured at fair value and changes thereof recorded into other comprehensive income, it shall be
considered as other comprehensive income; other differences shall be recognized in current profit or loss.
The assets and liabilities of foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. The equity
items, excluding “Retained earning” and “Difference arising from translation of foreign currency financial statements in other
comprehensive income”, are translated to Renminbi at the spot exchange rates at the transaction dates. The income and expenses of
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BOE Technology Group Co., Ltd. Interim Report 2023
foreign operation are translated to Renminbi at rates that approximate the spot exchange rates at the transaction dates. The resulting
exchange differences are listed in other comprehensive income. Upon disposal of a foreign operation, the cumulative amount of the
exchange differences recognized in equity which relates to that foreign operation is transferred to profit or loss in the period in which
the disposal occurs.
Note: The determination methods for conversion exchange rates under foreign currency transactions, translation methods for foreign
currency monetary items at the balance sheet date, accounting treatments for foreign exchange gains and losses, and accounting
treatments for translation of foreign currency financial statements shall be explained.
10. Financial instruments
Financial instruments of the Group include monetary assets, bond investments, equity investments other than long-term equity
investments, accounts receivable, accounts payable, borrowings, bonds payable, share capital, etc.
(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.
Financial assets and financial liabilities are 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 a significant financing component is initially measured at the transaction price according to Accounting Standards for Business
Enterprises No.14-Revenue.
(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.
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.
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- 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.
(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.
(6) Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;
- contract assets;
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- debt investments at FVOCI;
- lease accounts receivable
Financial assets measured at fair value, including debt investments or equity securities at FVTPL, equity securities designated at FVOCI
and derivative financial assets, are not subject to the ECL assessment.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the
difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive).
The maximum period considered when estimating ECLs is the maximum contractual period (including extension options) over which
the Group is exposed to credit risk.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the balance sheet
date (or a shorter period if the expected life of the instrument is less than 12 months).
Loss allowances for trade receivables 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 accounts receivable, lease accounts receivable 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.
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
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- 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.
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.
11. Notes Receivable
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
12. Accounts Receivable
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
13. Accounts Receivable Financing
Naught
14. Other Receivables
The recognition method and accounting treatment of expected credit losses of other receivables
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
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15. Inventory
(1) Classification and cost of inventories
Inventories include raw materials, work in progress, finished goods and reusable materials. Reusable materials include low-value
consumables, packaging materials and other materials, which can be used repeatedly but do not meet the definition of fixed assets.
Inventories are initially measured by the cost. Cost of inventories comprises all costs of purchase, costs of conversion and other costs.
Inventories are initially measured at their actual cost. In addition to the purchasing cost of raw materials, work in progress and finished
goods include direct labor costs and an appropriate allocation of production overheads.
(2) Pricing method for outgoing inventories
Cost of inventories is calculated using the weighted average method.
Revolving materials such as the low priced and easily worn articles and the packing materials should be amortized by adopting one-
time amortization method and be recorded in the cost of the relevant assets or the current gains and losses.
(3) Recognition basis of net realizable value and withdrawal method of depreciation reserves for inventories
On the balance sheet day, inventories are carried at the lower of cost and net realizable value.
Net realizable value is the estimated selling price in the normal course of business less the estimated costs to completion and the
estimated expenses and related taxes necessary to make the sale. The net realizable value of materials held for use in the production of
inventories is measured based on the net realizable value of the finished goods in which they will be incorporated. The net realizable
value of the quantity of inventory held to satisfy sales or service contracts is based on the contract price. If the quantities of inventories
specified in sales contracts are less than the quantities held by the Group, the net realizable value of the excess portion of inventories
shall be based on general selling prices.
Any excess of the cost over the net realizable value of each class of inventories is recognized as a provision for diminution in the value
of inventories, and then recorded into current profit or loss.
(4) Inventory system for inventories
The Group maintains a perpetual inventory system.
16. Contract Assets
Contract assets refer to the right that the Group has to charge consideration from customers due to the transfer of commodities to them,
and the right depends on other factors than time lapse. If the Group sells two highly distinguishable commodities to a customer, and
has the right to receive payment due to the delivery of one of the commodities, but with the collection of the payment depending on
the delivery of the other, the Group will treat this right of payment as a contract asset.
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
17. Contract Costs
Contract costs are either the incremental costs of obtaining a contract with a customer or the costs to fulfill 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 recognizes 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. Incremental costs
incurred as the Group obtains a contract refer to those costs which will not incur without entering into a contract.
If the costs to fulfill a contract with a customer are not within the scope of inventories or other accounting standards, the Group
recognizes an asset from the costs incurred to fulfill 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 labor, 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 enhance resources of the Group that will be used in satisfying performance obligations in the future;
-the costs are expected to be recovered.
Assets recognized for the incremental costs of obtaining a contract and assets recognized for the costs to fulfill a contract (the "assets
related to contract costs") are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services
to which the assets relate and recognized in profit or loss for the current period.
-The Group recognizes 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;
-the costs that relate directly to providing those goods or services that have not yet been recognized as expenses.
18. Assets Held for Sale
The Group classifies 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.
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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.
The Group should divide the non-current assets (or the disposal group, that is an asset group concurrently be disposed through selling
or other methods as an entirety in a transaction and the liabilities directly related to the assets from the transfer among the transaction,
the same below )which simultaneously meet with the following conditions as the assets held for sale.
– The non-current assets or disposal group could be immediately sold under the current condition in accordance with the usual terms
of selling this kind of assets in similar transactions;
– The sale is extremely possible that is to say, the Company has made a resolution regarding a sales planning and signed a legally
binding purchase agreement with other party, and the sale is expected to be finished within one year.
The Group measures the non-current assets held for sale, deferred income tax assets and the investment properties be follow-up
measured by the fair value mode according to the lower one between the book value and the fair value after deducting the net amount
of the disposal expenses, while the deference that the book value higher than the fair value which deducted the disposal expenses should
be recognized as the impairment losses of the assets.
19. Investments in Debt Obligations
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
20. Other Investments in Debt Obligations
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
21. Long-term Receivables
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details
22. Long-term Equity Investments
(1) Recognition of the investment cost of the long-term equity investment
(a) Long-term equity investments acquired through a business combination– The initial investment cost of a long-term equity
investment obtained through a business combination involving entities under common control is the Company’s share of the
subsidiary’s equity at the combination date. The difference between the initial investment cost and the carrying amounts of the
consideration given is adjusted to share premium in capital reserve. If the balance of the share premium is insufficient, any excess is
adjusted to retained earnings. For the long-term equity investment of the subsidiaries formed from the enterprise merger under the same
control that realized step by step of the multiple transaction not belong to package deal, the Company would adjust the capital stock
premium among the capital surplus according to the difference between the initial investment cost of the long-term equity investment
recognized according to the above principles and the sum of the book value of the long-term equity investment before reaching the
merger and the book value of the newly paid consideration which be further received on the merger date, and if the balance of the share
premium is insufficient, any excess is adjusted to retained earnings.
– For other long-term equity investment obtained through entities not under common control, the fair values, on the acquisition date,
of the assets given, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the control on
the acquiree shall be recognized as initial investment cost of the long-term equity investment. For long-term equity investment obtained
through a business combination involving entities not under common control by two or more transactions and by several steps, the
initial investment cost is recognized as the aggregation of the carrying value of acquirees’ equity investment before the acquisition date
held by the Company and newly investment cost at the acquisition date.
(b) Long-term equity investments acquired otherwise than through a business combination
For the Long-term equity investments acquired otherwise than through a business combination, if the long-term investment is acquired
by paying cash, the Group shall, upon initial recognition, take the purchase price actually paid as the initial investment cost ;
For the long-term equity investment obtained by issuing equity securities, the Group takes the fair value of equity securities issued as
the initial investment cost.
(2) Subsequent measurement and recognition of profits or losses of the long-term equity investment
(a) Investments in subsidiaries
In the Company’s financial statements, investments in subsidiaries are accounted for using the cost method, unless the investment is
classified as held for sale. Cash dividends or profit distributions declared by subsidiaries and attributed to the Company shall be
recognized as investment income, without dividing whether it’s the net profit realized by the investee before the investment or after
the investment, except those that have been declared but unpaid at the time of acquisition and therefore included in the price paid or
consideration.
The investment into the subsidiaries is stated at cost less impairment losses in the balance sheet.
As for the impairment testing method and impairment provisions for investments in subsidiaries, please refer to V. Significant
Accounting Policies and Estimates-31. Long-term Asset Impairment.
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In the Group’s consolidated financial statements, long-term equity investments in subsidiaries are treated in accordance with V.
Significant Accounting Policies and Estimates-6. Preparation Method for Consolidated Financial Statements.
(b) Investment in jointly controlled enterprises and associates
The joint enterprise refers to an arrangement that the Group and other joint operation parties execute jointly control and only enjoy the
rights of their own net assets.
An associate is an enterprise over which the Group has significant influence.
Upon the subsequent measurement, an investment in a jointly controlled enterprise or an associate is accounted for using the equity
method, unless the investment is classified as held for sale.
The Group makes the following accounting treatments when using the equity method:
– Where the initial investment cost of a long-term equity investment exceeds the Group’s interest in the fair value of the investee’s
identifiable net assets at the date of acquisition, the investment is initially recognized at the initial investment cost. Where the initial
investment cost is less than the Group’s interest in the fair value of the investee’s identifiable net assets at the date of acquisition, the
investment is initially recognized at the investor’s share of the fair value of the investee’s identifiable net assets, and the difference is
charged to profit or loss.
– After the acquisition of the investment, the Group recognizes its share of the investee’s net profits or losses after deducting the
amortization of the debit balance of equity investment difference, which was recognized by the Group before the first-time adoption
of CAS, as investment income or losses, and adjusts the carrying amount of the investment accordingly. The debit balance of the equity
investment difference is amortized using the straight-line method over a period which is determined in accordance with previous
accounting standards. Once the investee declares any cash dividends or profits distributions, the carrying amount of the investment is
reduced by that attributable to the Group. As for the other changes of the owners’ equities except for the net gains and losses, other
comprehensive income and profits distribution of the joint ventures or associated enterprises (hereinafter referred to as “changes of
other owners’ equities”), the Group included which in the shareholders’ equities according to the portion ought to be enjoyed or shared,
and at the same time adjust the book value of the long-term equity investment.
– The Group recognizes its share of the investee’s net profits or losses, other comprehensive income and changes of other owners’
equities after making appropriate adjustments to align the accounting policies or accounting periods with those of the Group based on
the fair values of the investee’s identifiable net assets at the date of acquisition. Unrealized profits and losses resulting from transactions
between the Group and its associates or jointly controlled enterprises are eliminated to the extent of the Group’s interest in the associates
or jointly controlled enterprises. Unrealized losses resulting from transactions between the Group and its associates or jointly controlled
enterprises are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of impairment.
– The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term equity investment
and any long-term interest that in substance forms part of the Group’s net investment in the associate or the jointly controlled enterprise
is reduced to zero, except to the extent that the Group has an obligation to assume additional losses. Where net profits are subsequently
made by the associate or jointly controlled enterprise, the Group resumes recognizing its share of those profits only after its share of
the profits equals the share of losses not recognized.
As for the impairment testing method and impairment provisions for investments in joint ventures and associated enterprises, please
refer to V. Significant Accounting Policies and Estimates-31. Long-term Asset Impairment.
(3) The basis for determination of joint control or significant influence over investee enterprise
Joint control refers to the control jointly owned on certain arrangement according to relevant agreement and the relevant activities of
the arrangement (which are the activities cause significant influences on the arrangement) could only execute the decision-making
through the unanimous consent of the parties sharing control.
The following evidences shall be considered when determining whether the Group can exercise joint control over an investee:
No single venture is in a position to control the operating activities unilaterally;
Operating decisions relating to the investee’s economic activity require the unanimous consent of the parties sharing control.
Significant influence is the power to participate in the financial and operating policy decisions of an investee but is not control or joint
control over those policies.
23. Investment Property
Measurement model for investment property
Cost measurement
Method of depreciation and amortization
The Company classified its real estate held for earning rents or capital appreciation or for both into the investment property. The
Company applied the cost model to measure the investment real estate. Namely, it would be presented in the Balance Sheet through
deducting the accumulated depreciation, amortization and the depreciation reserves from the costs. Besides, the Company would
calculate and withdraw or amortize the investment real estate by using the straight-line method within the service life through deducting
the predicted net residual value and the accumulated provision reserves from the costs, unless the investment real estate could meet
corresponding held-for-sale conditions. See See V Significant Accounting Policies and Estimates-31. Impairment of Long-term Assets
for details about methods for impairment testing and impairment provision.
The life time, residual rate and yearly depreciation of various investment properties are respectively as follows:
Item Life time Residual rate Yearly depreciation
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BOE Technology Group Co., Ltd. Interim Report 2023
Land use right 32-50 years 0% 2%-3.1%
Houses and buildings 20-40 years 0%-10% 2.3%-5%
24. Fixed Assets
(1) Conditions for Recognition
Fixed assets represent the tangible assets held by the Group for use in the production of goods or supply of services for rental to others
or for operation and administrative purposes with useful lives over one year.
The cost of a purchased fixed asset comprises the purchase price, related taxes, and any directly attributable expenditure for bringing
the asset to working condition for its intended use. The cost of self-constructed assets is measured in accordance with the policy set
out in Note V. Significant Accounting Policies and Estimates-25. Construction in Progress.
Where parts of an item of fixed assets have different useful lives or provide benefits to the Group in different patterns thus necessitating
use of different depreciation rates or methods, each part is recognized as a separate fixed asset.
The subsequent costs, including the cost of replacing part of an item of fixed assets, are recorded into fixed asset cost when the economic
interests related to costs may flow into the Group, and the carrying amount of the replaced part is derecognized. The costs of the day-
to-day servicing of fixed assets are recognized in profit or loss as incurred. Fixed assets are stated in the balance sheet at cost less
accumulated depreciation and impairment losses, unless that the fixed assets meet the conditions of held-for-sale.
(2) Depreciation Methods
Category of fixed assets Depreciation method Depreciable life Residual value rate (%) Yearly depreciation
Houses and buildings Straight-line method 10-50 years 3%-10% 1.8%-9.7%
Equipments Straight-line method 2-25 years 0-10% 3.6%-50%
Others Straight-line method 2-10 years 0-10% 9.0%-50%
Naught
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
Naught
25. Construction in Progress
The cost of the self-constructed fixed asset including the engineering materials, direct labor, borrowing expenses met with the
capitalization condition (refer to V. Significant Accounting Policies and Estimates-26. Borrowing Costs) and the necessary expenses
happened before the assets reach the expected available state.
When the self-constructed fixed asset reaches the available state, should transfer into the fixed assets, before which should be listed
among the construction in progress and not withdraw the depreciation.
26. Borrowing Costs
Borrowing costs incurred directly attributable to the acquisition and construction of a qualifying asset are capitalized 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.
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BOE Technology Group Co., Ltd. Interim Report 2023
-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 capitalization 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.
27. Living Assets
Naught
28. Oil and Gas Assets
Naught
29. Right-of-Use Assets
The term "right-of-use assets" refers to the right of the Group as the lessee to use the leased assets during the lease term
(1) Initial measurement
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially
measured at cost, which comprises the initial amount of the lease liability, any lease payments made at or before the commencement
date (less any lease incentives received), any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of
the lease.
(2) Subsequent measurement
The right-of-use asset is depreciated using the straight-line method. If the lessee is reasonably certain to exercise a purchase option by
the end of the lease term, the right-of-use asset is depreciated over the remaining useful lives of the underlying asset. Otherwise, the
right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the
end of the lease term. Impairment losses of right-of-use assets are accounted for in accordance with the accounting policy described in
31. Long-term asset impairment under V. Significant Accounting Policies and Accounting Estimates.
30. Intangible Assets
(1) Pricing Method, Useful life and Impairment test
(a) Pricing method of intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortisation (where the estimated useful life is finite) and
impairment losses (see 31. Long-term asset impairment under V. Significant Accounting Policies and Accounting Estimates).
(b) Estimated useful life of intangible assets with limited useful life
As for the intangible assets with limited useful life, after deducting the salvage of the cost and the impairment provision, the Group
amortized the intangible assets through straight line method within the expected service life, unless the intangible assets are classified
as held for sale.
The respective amortisation periods for intangible assets are as follows:
Item Amortisation period (years)
Land use rights 20 - 50 years
Patent and proprietary technology 5 – 20 years
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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 amortized when there is no foreseeable limit to the period over which the
asset is expected to generate economic benefits for the Group. At the balance sheet date, the Group doesn’t have any intangible assets
with indefinite useful lives.
(2) Accounting Policies of Internal R & D Expenses
Expenditures of internal R&D project of the Group divides into expenditures on the research phase and expenditures on the
development phase.
Expenditures on the research phase are recognized in profit or loss when incurred. Expenditures on the development phase are
capitalized if development costs can be measured reliably, the product or process is technically and commercially feasible, and the
Group intends to and has sufficient resources to complete development. Capitalized development costs are stated at cost less impairment
losses in the balance sheet (see 31. Long-term asset impairment under V. Significant Accounting Policies and Accounting Estimates).
Other development expenditures are recognized as expenses in the period in which they are incurred.
31. Impairment of Long-term Assets
The Group executes the impairment test on the assets with impairment indication and evaluates the recoverable amount of the assets.
Besides, whether there is impairment indication, the Group will evaluate the recoverable amount of the goodwill at the year-end. The
Group will amortize the book value of the good according to the benefit situation in the synergistic effect from the enterprise merger
by the relevant assets group or the combination of the assets group and based on which executes the impairment test of the goodwill.
The recoverable amount of an asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present
value of expected future cash flows. An asset group is the smallest identifiable group of assets that generates cash inflows that are
largely independent of the cash inflows from other assets or asset groups.
An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows
from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification of an asset
group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from other
assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s operations and
how management makes decisions about continuing or disposing of the Group’s assets.
The present value of expected future cash flows of an asset is determined by discounting future cash flows, estimated to be derived
from continuing use of the asset and from its ultimate disposal, to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount, the
carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and charged to
profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment losses
related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or set of
asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.
However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell
(if determinable), the present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognized, it is not reserved in a subsequent period.
32. Long-term Deferred Expenses
Long-term deferred expenses are amortized on a straight-line method within the benefit period:
Item Amortization period (years)
Cost of construction and use of public facilities 10-15 years
Cost of operating lease assets improvement 2-10 years
Others 2-10 years
33. Contract Liabilities
Contract liabilities refer to the Company’s obligations in transferring commodities or services to the client for the received or predicted
consideration. Contract assets and contract liabilities under the same contract shall be presented based on the net amount.
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34. Payroll
(1) Accounting Treatment of Short-term Compensation
During the accounting period of an employee' providing services, the Group recognizes the actual occurred or withdrawn worker wages,
bonuses and the social insurance charges such as the medical insurance premiums, industrial injury insurance premium and birth
insurance premium according to the specified benchmark and proportion as well as the housing funds as the liabilities and records
which in the current gains and losses or the relevant asset costs.
(2) Accounting Treatment of the Welfare after Demission
The defined contribution plans participated by the Group including: the basic endowment insurance and unemployment insurance
among the social security system set up and managed by the government institutions according to the requirements of the relevant
Chinese regulations of the employees of the Group and the corporation pension plan approved and set up by the relevant departments
according to the relevant policies of the state enterprise annuity system. The payment amount of the basic endowment insurance and
the unemployment insurance should be calculated according to the benchmark and the proportion stipulated by the nation. The
enterprise annuity should be withdrawn according to the certain proportion of the total amount of the worker wages of the employees
voluntarily participated in the pension plan. During the accounting period of the employees providing the service, the Company
recognizes the deposited amount as the liabilities and records in the current gains and losses or the relevant asset costs.
(3) Accounting Treatment of the Demission Welfare
The Group relieves the labor relations with the employees before the maturity of the labor contracts or puts forward the advice for
compensation for encouraging the employees voluntarily accept the reduction, and recognizes the liabilities caused from the demission
welfare on the earlier date of the followings and at the same time records which in the current gains and losses:
When the Group could not unilaterally withdraw the demission welfare provided owning to the termination of the labor relations or
the reduction advice:
The Group owns specific and formal reorganization plan that concerning the payment of the demission welfare; and the time when
the reorganization plan had been executed or had announced the main content of the plan to the parties influenced by which, then led
all parties formed the rational expectations about the Group is going to execute the reorganization.
(4) Accounting Treatment of the Welfare of Other Long-term Staffs
The welfare of other long-term staffs refers to the all the employees compensation except for the short-term compensation, welfare
after demission and demission welfare, which including the long-term compensated absences, long-term sociability benefits and long-
term profit sharing plan and so on. The Group not involved with any other long-term employee's welfare.
35. Lease Liabilities
(1) Initial measurement
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted
using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate.
(2) Subsequent measurement
A constant periodic rate is used to calculate the interest on the lease liability in each period during the lease term with a corresponding
charge to profit or loss or included in the cost of assets where appropriate. Variable lease payments not included in the measurement
of the lease liability are charged to profit or loss or included in the cost of assets where appropriate as incurred.
(3) Remeasurement
Under the following circumstances after the commencement date, the Group remeasures lease liabilities based on the present value of
revised lease payments:
- there is a change in the amounts expected to be payable under a residual value guarantee;
- there is a change in future lease payments resulting from a change in an index or a rate used to determine those payments;
- there is a change in the assessment of whether the Group will exercise a purchase, extension or termination option, or there is a change
in the exercise of the extension or termination option.
When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is
recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months
or less and leases of low-value assets. The Group recognises the lease payments associated with these leases in profit or loss or as the
cost of the assets where appropriate using the straight-line method or other systematic basis over the lease term.
36. Provisions
A provision is recognized for an obligation related to a contingency if the Group has a present obligation that can be estimated reliably,
and it is probable that an outflow of economic benefits will be required to settle the obligation.
The estimated liabilities should be executed the initial measurement according to the best estimated number needed to be spent when
caring out the relevant current obligations. As for those with significant influences on the time value of money, the estimated liabilities
should be confirmed according to the amount after the discount of the estimated future cash flow. When recognizing the best estimated
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number, the Group comprehensively considers the factors such as the risks, uncertainty and the time value of money related to the
contingencies. There is a contiguous range of the needed expenses and the possibility of various results within the range is the same
and the best estimated number should be recognized according to the mediant within the range; under other circumstance, the best
estimated number should be handled respectively according to the following situations:
If the contingencies involve with a single item, should be recognized according to the most likely happened amount.
If the contingencies involve with various items, should be recognized according to the calculation of various possible results and the
relevant probabilities.
The Group executes the reexamination of the book value of the estimated liabilities on the balance sheet date and adjusts the book
value according to the current best estimated number.
37. Share-based Payment
The Group conducts accounting treatment in accordance with relevant provisions of the Accounting Standards for Business Enterprises
No. 11 - Share-based Payment and the application guide.
Share-based payment is a transaction in which an enterprise grants equity instruments or takes liabilities based on equity instruments
in order to obtain services provided by employees and other parties.
Share-based payments include equity-settled share-based payment and cash-settled share-based payment.
If an equity-settled share-based payment is adopted for services provided by employees, it shall be measured at the fair value of the
equity instrument granted to employees.
Cash-settled share-based payment shall be measured at the fair value of liabilities calculated and determined on the basis of shares or
other equity instruments undertaken by the enterprise.
The Group makes corresponding accounting treatment according to the implementation schedule of the equity incentive plan.
(1) Grant date
For an equity-settled share-based payment, if the right can be exercised immediately after the grant, the fair value of the equity
instruments shall, on the grant date, be included in the relevant costs or expenses and the capital reserves shall be increased accordingly.
For a cash-settled share-based payment, if the right can be exercised immediately after the grant, the fair value of the obligations borne
by the Company shall, on the grant date, be included in the relevant costs or expenses and the obligations shall be increased accordingly.
Neither equity-settled share-based payments nor cash-settled share-based payments, except for share-based payments which can be
exercised immediately, undergo accounting treatment on the grant date.
(2) Each balance sheet date in the vesting period
Vesting period refers to the period during which the vesting conditions are satisfied.
For share-based payments subject to the prescribed period of service, the vesting period is the period from the grant date to the vesting
date. For share-based payments subject to prescribed performance, the length of the vesting period is estimated at the grant date based
on the most likely performance results.
For a share-based payment, if the right cannot be exercised until the vesting period ends or until the prescribed performance conditions
are met, on each balance sheet date within the vesting period, the services acquired in the current period shall, based on the best estimate
of the information about the exercisable right and at the fair value of the equity instrument on the grant date for equity-settled share-
based payments, be included in the costs or expenses and the corresponding obligations. For a cash-settled share-based payment, the
services acquired in the current period shall be included in the costs or expenses and the corresponding obligations at the fair value of
the obligations borne by the enterprise.
(3) Vesting date
Vesting date refers to the date on which the vesting conditions are satisfied and the employees and other parties have the right to acquire
equity instruments or cash from the enterprise.
Vesting date refers to the date on which employees and other parties exercise their rights and acquire cash or equity instruments.
For an equity-settled share-based payment, no adjustment will be made to the related costs or expenses recognized and to the total
owner's equity after the vesting date. On the vesting date, share capital or treasury stock and share premium shall be recognized based
on the exercise situation, and capital reserves recognized during the vesting period shall be carried forward.
For cash-settled share-based payments, the enterprise shall re-measure the fair value of the obligations on each balance sheet date and
settlement date after the vesting date and before the settlement of the relevant obligations, and the changes shall be included in the
profit and loss of the current period. On the vesting date, the recognized obligations shall be carried forward at the time of settlement
according to the exercise.
The share-based payment of the Company was paid with shares settled in equity.
38. Other Financial Instruments such as Preferred Shares and Perpetual Bonds
See V Significant Accounting Policies and Estimates-10. Financial Instruments for details.
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39. Revenue
Accounting policies for recognition and measurement of revenue
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.
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
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- the customer has accepted the goods or services.
The Group determines whether it is a principal or an agent, depending on whether it obtains control of the specified good or service
before that good or service is transferred to a customer. The Group is a principal if it controls the specified good or service before that
good or service is transferred to a customer, and recognises revenue in the gross amount of consideration to which it has received (or
receivable). Otherwise, the Group is an agent, and recognises revenue in the amount of any fee or commission to which it expects to
be entitled. The fee or commission is the net amount of consideration that the Group retains after paying the other party the consideration,
or is the established amount or proportion.
For the sale of a product with a right of return, the Group recognises revenue when the Group obtains control of that product, in the
amount of consideration to which the Group expects to be entitled in exchange for the product transferred (i.e. excluding the amount
of which expected to be returned), and recognises a refund liability for the products expected to be returned. Meanwhile, an asset is
recognised in the amount of carrying amount of the product expected to be returned less any expected costs to recover those products
(including potential decreases in the value of returned products), and carry forward to cost in the amount of carrying amount of the
transferred products less the above costs. At the end of each reporting period, the Group updates its assessment of future sales return.
If there is any change, it is accounted for as a change in accounting estimate.
The Group determines whether the licence transfers to a customer either at a point in time or over time. If all of the following criteria
are met, revenue is recognised for performance obligations satisfied over time. Otherwise, revenue is recognised for performance
obligations satisfied at a point in time.
- the contract requires, or the customer reasonably expects, that the Group will undertake activities that significantly affect the
intellectual property to which the customer has rights;
- the rights granted by the licence directly expose the customer to any positive or negative effects of the Group’s activities; and
- those activities do not result in the transfer of a good or a service to the customer as those activities occur.
The Group recognises revenue for a sales-based or usage-based royalty promised in exchange for a licence of intellectual property only
when (or as) the later of the following events occurs:
- the subsequent sale or usage occurs; and
- the performance obligation has been satisfied (or partially satisfied).
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 V Significant Accounting Policies and Estimates-10. Financial Instruments for details). Accounts receivable is the
Group’s right to consideration that is unconditional (only the passage of time is required). A contract liability is the Group’s obligation
to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from
the customer.
The following is the description of accounting policies regarding revenue from the Group’s principal activities:
(1) Sale of goods
The sales contracts/orders signed between the Group and its customers usually contain various trading terms. Depending on the trading
terms, customers obtain control of the goods when the goods are delivered and received, or when they are received by the carrier.
Revenue of sale of goods is recognised at that point in time.
For the transfer of goods with a right of return, revenue is recognised to the extent that it is highly probable that a significant reversal
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BOE Technology Group Co., Ltd. Interim Report 2023
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.
Note: accounting policies used in revenue recognition and measurement, and judgments and changes in judgments that materially affect
the determination of the point and amount of revenue recognition include the method for determining the performance progress and
the reasons for adopting the method, the judgment relating to the point at which the customer acquires control of the transferred
commodity, the methods for determining the transaction price, estimating the variable consideration included in the transaction price,
apportioning transaction price, and measuring similar obligations such as the funds expected to be returned to the customer.
Differences in accounting policies for the recognition of revenue caused by different business models for the same type of business
Naught
Note: if there are differences in revenue recognition accounting policies for similar businesses due to different business models, they
shall be disclosed separately.
40. Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from the government to the Group except for
capital contributions from the government in the capacity as an investor in the Group.
A government grant is recognised when there is reasonable assurance that the grant will be received and that the Group will comply
with the conditions attaching to the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. If a government
grant is in the form of a transfer of a non-monetary asset, it is measured at fair value.
Government grants related to assets are grants whose primary condition is that the Group qualifying for them should purchase, construct
or otherwise acquire long-term assets. Government grants related to income are grants other than those related to assets.
Those related to daily activities of the Company are included in other income or used to write off related cost based on the nature of
economic businesses, or included in non-operating income and expense in respect of those not related to daily activities of the Company.
With respect to the government grants related to assets, if the Group first obtains government grants related to assets and then recognizes
the long-term assets purchased and constructed, deferred income is included in profit and loss based on a reasonable and systematic
approach by stages when related assets are initially depreciated or amortized; or the deferred income is written off against the carrying
amount of the asset when the asset becomes ready for its intended status or intended use. If the Group obtains government grants related
to the assets after relevant long-term assets are put into use, deferred income is included in profit and loss based on a reasonable and
systematic approach by stages within the remaining useful life of relevant assets, or the deferred income is written off against the
carrying amount of relevant asset when the grants are obtained; the assets shall be depreciated or amortized based on the carrying
amount after being offset and the remaining useful life of relevant assets.
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 recognized as deferred income, and included in profit and loss or used to offset related costs; otherwise it shall be directly
included in profit and loss or used to offset related costs.
In respect of the policy-based preferential loan interest subsidy obtained by the Group, if the interest subsidy is appropriated to the
lending bank which shall provide loans to the Group at the policy-based preferential interest rate, the actual loan amount is used as the
entry value and relevant borrowing costs are calculated on the basis of the loan principal and the preferential interest rate. If the interest
subsidy is directly appropriated to the Group, relevant borrowing costs shall be offset by corresponding interest subsidy. If borrowing
costs are capitalized as part of the cost of the asset (see Note V. Significant Accounting Policies and Estimates-26. Borrowing Costs),
the interest subsidy shall be used to offset relevant asset costs.
Note: Specific criteria for asset-related government subsidies and income-related government subsidies shall be distinguished. If the
government document does not specify the subsidy object, the judgment basis for determining the government subsidy is asset-related
or income-related shall be described. Whether government subsidies adopt the gross method or the net method shall be disclosed. If
the gross method is adopted, the amortization method of deferred income related to government subsidies and the recognition method
of the amortization period shall also be disclosed. The time when government subsidies are confirmed shall be disclosed.
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41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Recognition basis of deferred income tax assets
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a difference
between the carrying amount of an asset or liability and its tax base (temporary difference). For any deductible loss that can be carried
forward to the next year to deduct the income tax according to the stipulations of tax law, relevant deferred income tax assets shall be
recognized. The deferred income tax asset shall be determined to the extent that the amount of taxable income to be offset by the
deductible loss or tax deduction to be likely obtained. For the deductible temporary difference relating to the investments of the
subsidiary companies, associated enterprises and joint enterprises, the enterprise shall recognize the corresponding deferred income
tax assets for those that meet the following requirements: the temporary differences are likely to be reversed in the expected future;
and it is likely to acquire any amount of taxable income that may be used for deducting the deductible temporary differences.
(2) Recognition basis of deferred income tax liabilities
The Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a difference
between the carrying amount of an asset or liability and its tax base (temporary difference). As for the temporary difference from the
initial recognition of goodwill, no deferred income tax liabilities shall be recognized. The taxable temporary differences relating to the
investments of subsidiary companies, associated enterprises and joint enterprises shall recognized as corresponding deferred income
tax liabilities, however, excluding those that simultaneously satisfy the following conditions: the investing enterprise can control the
time of the reverse of temporary differences; and the temporary differences are unlikely to reverse in the excepted future.
42. Lease
(1) Accounting Treatment of Operating Lease
1. Lessee
New leases standard has revised CAS No.21 – Leases issued by the MOF in 2006 ("previous leases standard"). Under new leases
standard, the Group no longer distinguishes between operating leases and finance leases. The Group recognises right-of-use assets and
lease liabilities for all leases (except for short-term leases and leases of low-value assets which are accounted for using practical
expedient). The specific accounting treatments are as follows:
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially
measured at cost, which comprises the initial amount of the lease liability, any lease payments made at or before the commencement
date (less any lease incentives received), any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of
the lease.
The right-of-use asset is depreciated using the straight-line method. If the lessee is reasonably certain to exercise a purchase option by
the end of the lease term, the right-of-use asset is depreciated over the remaining useful lives of the underlying asset. Otherwise, the
right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the
end of the lease term. Impairment losses of right-of-use assets are accounted for in accordance with the accounting policy described in
31. Long-term asset impairment under V. Significant Accounting Policies and Accounting Estimates.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted
using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate.
A constant periodic rate is used to calculate the interest on the lease liability in each period during the lease term with a corresponding
charge to profit or loss or included in the cost of assets where appropriate. Variable lease payments not included in the measurement
of the lease liability are charged to profit or loss or included in the cost of assets where appropriate as incurred.
Under the following circumstances after the commencement date, the Group remeasures lease liabilities based on the present value of
revised lease payments:
- there is a change in the amounts expected to be payable under a residual value guarantee;
- there is a change in future lease payments resulting from a change in an index or a rate used to determine those payments;
- there is a change in the assessment of whether the Group will exercise a purchase, extension or termination option, or there is a change
in the exercise of the extension or termination option.
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When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is
recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months
or less and leases of low-value assets. The Group recognises the lease payments associated with these leases in profit or loss or as the
cost of the assets where appropriate using the straight-line method or other systematic basis over the lease term.
2. Lessor
The Group determines at lease inception whether each lease is a finance lease or an operating lease. A lease is classified as a finance
lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset irrespective of whether the
legal title to the asset is eventually transferred. An operating lease is a lease other than a finance lease.
When the Group is a sub-lessor, it assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from
the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies practical
expedient described above, then it classifies the sub-lease as an operating lease.
Lease receipts from operating leases are recognised as income using the straight-line method or other systematic basis over the lease
term. The initial direct costs incurred in respect of the operating lease are initially capitalised and subsequently amortised in profit or
loss over the lease term on the same basis as the lease income. Variable lease payments not included in lease receipts are recognised
as income as they are earned.
(2) Accounting Treatments of Financial Lease
1. Lessee
New leases standard has revised CAS No.21 – Leases issued by the MOF in 2006 ("previous leases standard"). Under new leases
standard, the Group no longer distinguishes between operating leases and finance leases. The Group recognises right-of-use assets and
lease liabilities for all leases (except for short-term leases and leases of low-value assets which are accounted for using practical
expedient). The specific accounting treatments are the same as those in 42. Lease (1) Accounting treatment of operating leases 1. Lessee
under V. Significant Accounting Policies and Accounting Estimates.
2. Lessor
The Group determines at lease inception whether each lease is a finance lease or an operating lease. A lease is classified as a finance
lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset irrespective of whether the
legal title to the asset is eventually transferred. An operating lease is a lease other than a finance lease.
Under a finance lease, at the commencement date, the Group recognises the finance lease receivable and derecognises the finance lease
asset. The finance lease receivable is initially measured at an amount equal to the net investment in the lease. The net investment in the
lease is measured at the aggregate of the unguaranteed residual value and the present value of the lease receivable that are not received
at the commencement date, discounted using the interest rate implicit in the lease.
The Group calculates and recognises interest income for each period of the lease term based on a fixed periodic interest rate. The
derecognition and impairment of the finance lease receivable are recognised in accordance with the accounting policy described in 10.
Financial instruments under V. Significant Accounting Policies and Accounting Estimates. Variable lease payments not included in
the measurement of net investment in the lease are recognised as income as they are earned
43. Other Significant Accounting Policies and Estimates
(1) Related parties
If a party has the power to control, jointly control or exercise significant influence over another party, or vice versa, or where two or
more parties are subject to common control 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.
(2) Segment reporting
Reportable segments are identified based on operating segments which are determined based on the structure of the Group’s internal
organisation, management requirements and internal reporting system after taking the materiality principle into account. Two or more
operating segments may be aggregated into a single operating segment if the segments have the similar economic characteristics and
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BOE Technology Group Co., Ltd. Interim Report 2023
are same or similar in respect of the nature of each segment’s products and services, the nature of production processes, the types or
classes of customers for the products and services, the methods used to distribute the products or provide the services, and the nature
of the regulatory environment.
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.
(3) 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.
(4) Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
When measuring fair value, the Group takes into account the characteristics of the particular asset or liability (including the condition
and location of the asset and restrictions, if any, on the sale or use of the asset) that market participants would consider when pricing
the asset or liability at the measurement date, and uses valuation techniques that are appropriate in the circumstances and for which
sufficient data and other information are available to measure fair value. Valuation techniques mainly include the market approach, the
income approach and the cost approach.
(5) 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 31. Long-term asset
impairment under V. Significant Accounting Policies and Accounting Estimates). 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.
(6) 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 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.
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.
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:
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BOE Technology Group Co., Ltd. Interim Report 2023
- 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.
44. Changes in Significant Accounting Policies and Estimates
(1) Changes in Significant Accounting Policies
Applicable □ Not applicable
Contents of changes in accounting policies and
Approval procedures Note
reasons thereof
On 30 November 2022, the Ministry of Finance
issued the Interpretation No. 16 of Accounting
Standards for Business Enterprises. The Company
conducted accounting treatment in accordance with
this standards with specific contents including:
(1) accounting treatment for deferred income tax
relating to assets and liabilities arising from a single Reviewed and approved by No significant influence on the financial
transaction that is not subject to the initial the Board of Directors and the status and operating results of the
recognition exemption Executive Committee Company
(2) accounting treatment of the income tax effect of
financial instrument related dividend whose issuer is
classified as equity instrument
(3) accounting treatment of share-based payment in
cash settlement modified into share-based payment
in equity settlement by the enterprise
Naught
(2) Changes in Accounting Estimates
□Applicable Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of the New Accounting
Standards Implemented since 2023
Applicable □ Not applicable
Note to adjustments
The Company will make corresponding adjustments to relevant accounting policies in accordance with the Notice on Issuing the
Interpretation No. 16 of Accounting Standards for Business Enterprises (C.K. [2022] No. 31) issued by the Ministry of Finance on 30
November 2022 (hereinafter referred to as the "Interpretation No. 16").
According to Interpretation No. 16, for single transactions that are not business combinations, that affect neither accounting profit nor
taxable income (or deductible losses) at the time the transaction occurs, and where the initial recognition of assets and liabilities results
in taxable temporary differences and deductible temporary differences of equal amounts (including lease transactions in which the
lessee recognises the initial lease liability and includes it in the right to use asset at the commencement date of the lease term, as well
as transactions in which estimated liabilities are recognised and included in the costs of related assets due to fixed assets disposal
obligations and other disposal obligations, etc. Hereinafter referred to as single transactions that are applicable to this interpretation),
exemption from initial recognition of deferred income tax liabilities and deferred income tax assets under Article XI (II) and Article
XIII of No. 18 of the Accounting Standards for Business Enterprises -- Income Taxes is not applicable. The Company shall recognise
the corresponding deferred income tax liabilities and deferred income tax assets for the taxable temporary differences and deductible
temporary differences arising from the initial recognition of assets and liabilities in respect of the transaction when the transaction
occurs, in accordance with the relevant provisions of No. 18 of the Accounting Standards for Business Enterprises -- Income Taxes
and other regulations.
According to Interpretation No. 16, the Company started from 1 January 2023 to adjust the retained income brought forward in the
earliest period presented in the financial statement and other relevant items of the financial statement based on the accumulated number
of impacts. Interpretation No. 16 has no impact on the parent company's financial statement, and has no significant impact on the
consolidated income statement and consolidated cash flow statement. The impact on the consolidated balance sheet is as follows:
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BOE Technology Group Co., Ltd. Interim Report 2023
31 December 2022 (Unit: RMB）
Before After Adjusted
Deferred income tax
70,250,425.00 76,013,149.00 5,762,724.00
assets
Deferred income tax
1,274,406,833.00 1,289,899,658.00 15,492,825.00.00
liabilities
Retained earnings 35,839,081,781.00 35,829,351,680.00 -9,730,101.00
45. Others
Naught
VI. Taxation
1. Main Taxes and Tax Rate
Category of taxes Tax basis Tax rate
Output VAT is calculated on the income from product sales,
provision of taxable labor services and provision of taxable
VAT services, based on tax laws. The remaining balance of output 6%, 9%, 13%
VAT, after subtracting the deductible input VAT of the period, is
VAT payable.
Consumption tax Naught Naught
Urban maintenance and
Based on VAT paid, VAT exemption and offset for the period 7%, 5%
construction tax
Enterprise income tax Based on taxable income 15%-30%
Education surcharge and local
Based on VAT paid, VAT exemption and offset for the period 3%, 2%
education surcharge
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
BOE Technology Group Co., Ltd. 15%
Beijing BOE Optoelectronics Technology Co., Ltd. 15%
Chengdu BOE Optoelectronics Technology Co., Ltd. 15%
Hefei BOE Optoelectronics Technology Co., Ltd. 15%
Beijing BOE Display Technology Co., Ltd. 15%
Hefei Xinsheng Optoelectronics Technology Co., Ltd. 15%
Erdos Yuansheng Optoelectronics Co., Ltd. 15%
Chongqing BOE Optoelectronics Technology Co., Ltd. 15%
BOE Mled Technology Co., Ltd. (Mled Technology) 15%
Hefei BOE Display Technology Co., Ltd. 15%
Fuzhou BOE Optoelectronics Technology Co., Ltd. 15%
Mianyang BOE Optoelectronics Technology Co., Ltd. 15%
Wuhan BOE Optoelectronics Technology Co., Ltd. 15%
Nanjing BOE Display Technology Co., Ltd. 15%
Chengdu BOE Display Technology Co., Ltd. 15%
BOE Optical Science and Technology Co., Ltd. 15%
Beijing BOE Tea Valley Electronic Co., Ltd. 15%
Hefei BOE Display Light Source Co., Ltd. 15%
Chongqing BOE Display Lighting Co., Ltd. 15%
Chongqing BOE Intelligent Electronic System Co., Ltd. 15%
Suzhou K-Tronics Co., Ltd. 15%
Beijing BOE Vacuum Electronics Co., Ltd. 15%
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BOE Technology Group Co., Ltd. Interim Report 2023
Beijing BOE Vacuum Technology Co., Ltd. 15%
BOE Smart IoT Technology Co., Ltd. 15%
Beijing Zhongxiangying Technology Co., Ltd. 15%
Beijing BOE Health Technology Co., Ltd. 15%
Hefei BOE Semiconductor Co., Ltd. 15%
Beijing BOE Energy Technology Co., Ltd. 15%
Yunnan Chuangshijie Optoelectronics Technology Co., Ltd. 15%
Chongqing BOE Electronic Technology Co., Ltd. 15%
Beijing BOE Sensor Technology Co., Ltd. 15%
2. Tax Preference
Naught
3. Others
Naught
VII. Notes on Major Items in Consolidated Financial Statements of the Company
1. Cash at Bank and on Hand
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 735,362.00 896,267.00
Bank deposits 61,100,542,391.00 64,769,442,741.00
Other monetary assets 2,819,583,139.00 4,029,968,361.00
Total 63,920,860,892.00 68,800,307,369.00
Of which: the total amount deposited overseas 6,973,694,228.00 5,780,461,058.00
Total amount of restriction in use by guaranteed, pledged or
2,817,459,430.00 4,027,358,544.00
frozen
Other notes:
N/A
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through profit or loss 11,595,506,620.00 17,187,993,936.00
Of which:
Wealth management products 11,299,405,086.00 16,931,468,153.00
Equity instrument investment 296,101,534.00 256,525,783.00
Financial assets designated to be measured at fair value and
0.00 0.00
changes thereof recorded into the current profit or loss
Of which:
Total 11,595,506,620.00 17,187,993,936.00
Other notes:
N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
3. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 232,018,976.00 211,292,061.00
Commercial acceptance bill 4,480,677.00 500,000.00
Total 236,499,653.00 211,792,061.00
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BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
Ending balance Beginning balance
Book value Provision for impairment Book value Provision for impairment
Category Carrying Carrying
Withdrawal Withdrawal
Amount Percentage Amount amounts Amount Percentage Amount amounts
proportion proportion
Notes receivable
for which bad debt
236,499,653.00 100.00% 0.00 0.00% 236,499,653.00 211,792,061.00 100.00% 0.00 0.00% 211,792,061.00
provision accrued
separately
Notes receivable
for which bad debt
0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
provision accrued
by group
Total 236,499,653.00 100.00% 0.00 0.00% 236,499,653.00 211,792,061.00 100.00% 0.00 0.00% 211,792,061.00
If the bad debt provision for notes receivable was withdrawn in accordance with the general model of expected credit losses, information related to bad debt provision shall be disclosed by
reference to the disclosure method of other receivables:
□ Applicable Not applicable
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Category Beginning balance Ending balance
Withdrawal Reversal or recovery Write-off Others
N/A
Of which bad debt provision reversed or recovered with significant amount:
□ Applicable Not applicable
(3) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Amount
Bank acceptance bill 0.00
Commercial acceptance bill 0.00
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BOE Technology Group Co., Ltd. Interim Report 2023
Total 0.00
(4) Notes Receivable which Had Endorsed by the Company or Had Discounted and Had not Due on the Balance Sheet Date at the Period-end
Unit: RMB
Item Amount of recognition termination at the period-end Amount of not terminated recognition at the period-end
Bank acceptance bill 127,671,333.00 29,667,971.00
Commercial acceptance bill 0.00 0.00
Total 127,671,333.00 29,667,971.00
(5) Notes Transferred to Accounts Receivable Because Drawer of the Notes Failed to Execute the Contract or Agreement
Unit: RMB
Item Amount of the notes transferred to accounts receivable at the period-end
Commercial acceptance bill 0.00
Bank acceptance bill 0.00
Total 0.00
Other notes: N/A
(6) Notes Receivable with Actual Verification for the Reporting Period
Unit: RMB
Item Amount verified
N/A
Of which, verification of significant notes receivable:
Unit: RMB
Verification procedures Whether generated from
Subsidiary Nature Amount verified Reason for verification
performed connected transactions
N/A
Notes of the verification of notes receivable:
N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
4. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Book value Provision for impairment Book value Provision for impairment
Category
Withdrawal Carrying amounts Withdrawal Carrying amounts
Amount Percentage Amount Amount Percentage Amount
proportion proportion
Accounts
receivable for
which bad debt
1,504,033,885.00 5.47% 48,679,382.00 3.24% 1,455,354,503.00 1,421,580,721.00 5.02% 59,921,373.00 4.22% 1,361,659,348.00
provision
accrued
separately
Of which:
Customers with
a high credit 52,734,393.00 0.19% 48,679,382.00 92.31% 4,055,011.00 62,016,470.00 0.22% 59,921,373.00 96.62% 2,095,097.00
risk
Customers with
a low credit 1,451,299,492.00 5.28% 0.00 0.00% 1,451,299,492.00 1,359,564,251.00 4.80% 0.00 0.00% 1,359,564,251.00
risk
Accounts
receivable
withdrawal of
25,993,294,070.00 94.53% 63,527,895.00 0.24% 25,929,766,175.00 26,901,946,645.00 94.98% 59,958,424.00 0.22% 26,841,988,221.00
bad debt
provision of by
portfolio
Of which:
Customers with
a moderate 25,993,294,070.00 94.53% 63,527,895.00 0.24% 25,929,766,175.00 26,901,946,645.00 94.98% 59,958,424.00 0.22% 26,841,988,221.00
credit risk
Total 27,497,327,955.00 100.00% 112,207,277.00 0.41% 27,385,120,678.00 28,323,527,366.00 100.00% 119,879,797.00 0.42% 28,203,647,569.00
Bad debt provision withdrawn separately:
Unit: RMB
Ending balance
Name
Book value Provision for impairment Withdrawal proportion Reason for withdrawal
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BOE Technology Group Co., Ltd. Interim Report 2023
Customers with high credit risks 52,734,393.00 48,679,382.00 92.31% N/A
Customers with low credit risks 1,451,299,492.00 0.00 0.00% N/A
Total 1,504,033,885.00 48,679,382.00
Bad debt provision accrued by group:
Unit: RMB
Ending balance
Name
Book value Provision for impairment Withdrawal proportion
Customers with moderate credit risks 25,993,294,070.00 63,527,895.00 0.24%
Total 25,993,294,070.00 63,527,895.00
Notes of the basis of recognizing the group:
Customer group Basis
Customers with high credit risks With special matters, litigations or the deterioration of customers’ credit status
Customers with low credit risks Banks, insurance companies, large state-owned enterprises and public institutions
Customers with moderate credit risks Customers not included in Groups above
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode of expected credit loss to withdraw bad debt provision of
notes receivable:
Applicable □ Not applicable
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.
Disclosed by aging
Unit: RMB
Ageing Ending balance
Within 1 year (including 1 year) 26,826,645,982.00
1 to 2 years 335,441,275.00
2 to 3 years 167,454,054.00
Over 3 years 167,786,644.00
3 to 4 years 101,093,374.00
4 to 5 years 48,880,241.00
Over 5 years 17,813,029.00
Total 27,497,327,955.00
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BOE Technology Group Co., Ltd. Interim Report 2023
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Others
recovery
Bad debt of
accounts 119,879,797.00 10,586,284.00 -19,266,599.00 -319,846.00 1,327,641.00 112,207,277.00
receivable
Total 119,879,797.00 10,586,284.00 -19,266,599.00 -319,846.00 1,327,641.00 112,207,277.00
Of which bad debt provision reversed or recovered with significant amount:
Unit: RMB
Subsidiary Amount reversed or recovered Way of recovery
N/A
N/A
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount verified
Accounts receivable with actual verification 319,846.00
Of which the verification of significant accounts receivable:
Unit: RMB
Verification Whether generated
Reason for
Subsidiary Nature Amount verified procedures from connected
verification
performed transactions
N/A
Verification of accounts receivable:
N/A
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
Proportion to the total ending
Ending balance of accounts Ending balance of bad debt
Subsidiary balance of accounts
receivable provisions
receivable
Sum of top 5 accounts
8,823,335,291.00 32.09% 0.00
receivable
Total 8,823,335,291.00 32.09%
(5) Accounts Receivable Derecognized Due to the Transfer of Financial Assets
N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continued Involvement of
Accounts Receivable
N/A
Other notes:
N/A
5. Prepayments
(1) List by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Ageing
Amount Percentage Amount Percentage
Within 1 year 397,084,894.00 77.15% 471,778,052.00 79.99%
1 to 2 years 100,436,849.00 19.51% 112,700,267.00 19.11%
2 to 3 years 13,385,177.00 2.60% 2,959,783.00 0.50%
Over 3 years 3,797,848.00 0.74% 2,326,578.00 0.40%
Total 514,704,768.00 589,764,680.00
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
The Group did not have prepayments that aged over one year with a significant amount but were not settled in time.
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
The total amount of the prepayment of the top 5 of the Group at the period-end was of RMB245,142,111.00 that covered 48% of the
total amount of the ending balance of the prepayment at the period-end.
Other notes:
N/A
6. Other Accounts Receivable
Unit: RMB
Item Ending balance Beginning balance
Interest receivable 0.00 0.00
Dividends receivable 22,234,936.00 0.00
Other receivables 601,104,318.00 975,809,236.00
Total 623,339,254.00 975,809,236.00
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
Fixed time deposit 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2023
Entrusted loan 0.00 0.00
Bond investment 0.00 0.00
Total 0.00 0.00
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Borrower Ending balance Overdue time Reason impairment and its
judgment basis
N/A
Other notes:
N/A
3) Withdrawal of Bad Debt Provision
□ Applicable Not applicable
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
Item (or investee) Ending balance Beginning balance
Beijing Electronics Zone High-Tech Group Co., Ltd. 728,607.00 0.00
Bank of Chongqing 9,945,049.00 0.00
Danhua Capital, L.P. 4,335,480.00 0.00
Danhua Capital II, L.P. 7,225,800.00 0.00
Total 22,234,936.00 0.00
2) Significant Dividend Receivable Aging Over One Year
Unit: RMB
Whether occurred
Item (or investee) Ending balance Ageing Unrecovered reason impairment and its
judgment basis
N/A
3) Withdrawal of Bad Debt Provision
□ Applicable Not applicable
Other notes:
N/A
(3) Other Accounts Receivable
1) Other Account Receivable Classified by Account Nature
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BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
Nature of other receivables Ending carrying balance Beginning carrying balance
Margins and guaranteed deposits 289,235,691.00 598,972,862.00
Amount due from equity transfer 200,000,000.00 200,000,000.00
Others 121,781,012.00 187,448,759.00
Total 611,016,703.00 986,421,621.00
2) Withdrawal of Bad Debt Provision
Unit: RMB
Phase I Phase II Phase III
Provision for Expected credit losses Expected credit losses
Expected credit losses for the whole existence for the whole existence Total
impairment
in the next 12 months period (no credit period (with credit
impairment) impairment)
Balance of 1 January
0.00 0.00 10,612,385.00 10,612,385.00
2023
Balance of 1 January
2023 in the current
period
-Transfer to the Phase II 0.00 0.00 0.00 0.00
-Transfer to Phase III 0.00 0.00 0.00 0.00
-Reverse to Phase II 0.00 0.00 0.00 0.00
-Reverse to Phase I 0.00 0.00 0.00 0.00
Withdrawal of the
0.00 0.00 42,689.00 42,689.00
current period
Reversal of the current
0.00 0.00 0.00 0.00
period
Write-offs of the current
0.00 0.00 0.00 0.00
period
Verification of the
0.00 0.00 -742,689.00 -742,689.00
current period
Other changes 0.00 0.00 0.00 0.00
Balance of 30 June 2023 0.00 0.00 9,912,385.00 9,912,385.00
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable Not applicable
Disclosed by aging
Unit: RMB
Ageing Ending balance
Within 1 year (including 1 year) 303,936,411.00
1 to 2 years 25,426,591.00
2 to 3 years 36,252,080.00
Over 3 years 245,401,621.00
3 to 4 years 14,568,084.00
4 to 5 years 15,111,877.00
Over 5 years 215,721,660.00
Total 611,016,703.00
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Beginning Changes in the Reporting Period
Category Ending balance
balance Withdrawal Reversal or Write-off Others
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BOE Technology Group Co., Ltd. Interim Report 2023
recovery
Bad debt
provisions for
10,612,385.00 42,689.00 0.00 -742,689.00 0.00 9,912,385.00
other
receivables
Total 10,612,385.00 42,689.00 0.00 -742,689.00 0.00 9,912,385.00
N/A
Of which bad debt provision reversed or recovered with significant amount:
Unit: RMB
Subsidiary Amount reversed or recovered Way of recovery
N/A
N/A
4) Other Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount verified
Customer 1 700,000.00
Customer 2 42,689.00
Of which the verification of significant other accounts receivable:
Unit: RMB
Verification Whether generated
Reason for
Subsidiary Nature Amount verified procedures from connected
verification
performed transactions
N/A
Notes:
N/A
5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
Proportion to the Ending
total ending balance of
Subsidiary Nature Ending balance Ageing
balance of other bad debt
receivables provisions
Equity transfer fee
Customer A 200,000,000.00 Over 5 year 32.73% 0.00
receivable
Security deposit Within 1 year (including 1
Customer B 72,258,000.00 11.83% 0.00
and deposit year)
Security deposit Within 1 year (including 1
Customer C and deposit 56,839,949.00 9.30% 0.00
year)
Security deposit 1 to 2 years, and 2 to3
Customer D and deposit 19,675,966.00 3.22% 0.00
years
Customer E Other 11,495,000.00 4 to 5 years 1.88% 0.00
Total 360,268,915.00 58.96% 0.00
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BOE Technology Group Co., Ltd. Interim Report 2023
6) Accounts Receivable Involving Government Grants
Unit: RMB
Project of government Estimated recovering
Subsidiary Ending balance Ending aging
grants time, amount and basis
N/A
N/A
7) Other Accounts Receivable Derecognized Due to the Transfer of Financial Assets
N/A
8) Amount of Assets and Liabilities Due to the Transfer of Other Account Receivable and Continued
Involvement
N/A
Other notes:
N/A
7. Inventories
Whether the Company shall comply with the disclosure requirements for real estate industry
No
(1) Category of Inventories
Unit: RMB
Ending balance Beginning balance
Falling price Falling price
reserves or reserves or
Item impairment impairment
Book value Carrying amounts Book value Carrying amounts
provision for provision for
contract contract
performance costs performance costs
Raw materials 10,878,171,767.00 2,530,602,975.00 8,347,568,792.00 11,178,326,632.00 2,890,923,826.00 8,287,402,806.00
Work in
5,375,523,216.00 1,416,714,266.00 3,958,808,950.00 4,879,573,518.00 1,316,529,598.00 3,563,043,920.00
progress
Finished
16,981,404,642.00 3,972,090,293.00 13,009,314,349.00 14,699,012,100.00 4,072,862,311.00 10,626,149,789.00
goods
Consumables 154,662,425.00 0.00 154,662,425.00 147,843,921.00 0.00 147,843,921.00
Consumptive
0.00 0.00 0.00 0.00 0.00 0.00
living assets
Costs to fulfil
a contract
160,737,632.00 0.00 160,737,632.00 163,373,789.00 0.00 163,373,789.00
with a
customer
Goods in
0.00 0.00 0.00 0.00 0.00 0.00
transit
Total 33,550,499,682.00 7,919,407,534.00 25,631,092,148.00 31,068,129,960.00 8,280,315,735.00 22,787,814,225.00
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(2) Falling Price Reserves of Inventories and Impairment Provision for Contract Performance Costs
Unit: RMB
Increased amount Decrease
Item Beginning balance Reverse or write- Ending balance
Withdrawal Others Others
off
Raw
2,890,923,826.00 208,304,316.00 0.00 568,625,167.00 0.00 2,530,602,975.00
materials
Work in
1,316,529,598.00 294,269,455.00 0.00 194,084,787.00 0.00 1,416,714,266.00
progress
Finished
4,072,862,311.00 1,662,682,942.00 0.00 1,763,454,960.00 0.00 3,972,090,293.00
goods
Consumables 0.00 0.00 0.00 0.00 0.00 0.00
Consumptive
0.00 0.00 0.00 0.00 0.00 0.00
living assets
Costs to
fulfil a
0.00 0.00 0.00 0.00 0.00 0.00
contract with
a customer
Total 8,280,315,735.00 2,165,256,713.00 0.00 2,526,164,914.00 0.00 7,919,407,534.00
N/A
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
N/A
(4) Amount of Contract Performance Costs Amortized in the Reporting Period
N/A
8. Contract Assets
Unit: RMB
Ending balance Beginning balance
Item Provision for Carrying Provision for Carrying
Book value Book value
impairment amounts impairment amounts
Contract assets 84,853,547.00 0.00 84,853,547.00 71,636,461.00 0.00 71,636,461.00
Total 84,853,547.00 0.00 84,853,547.00 71,636,461.00 0.00 71,636,461.00
The amount of significant changes in the carrying value of contract assets and reason during the Reporting Period:
Unit: RMB
Item Amount changed Reason
N/A
Please refer to the relevant information of disclosure of bad debt provision of other contract assets if adopting the general mode of
expected credit loss to withdraw bad debt provision of notes receivable.
□ Applicable Not applicable
Additions, recoveries or reversals of provision for contract assets during the Reporting Period
Unit: RMB
Write-
Withdrawal of the Reversal of the
Item offs/Verification of Reason for change
current period current period
the current period
N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
Other notes:
N/A
9. Current Portion of Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Current portion of investments in debt
0.00 0.00
obligations
Current portion of other investments in
0.00 0.00
debt obligations
Current portion of long-term receivables 9,038,005.00 8,561,307.00
Total 9,038,005.00 8,561,307.00
Significant investments in debt obligations/other investments in debt obligations
Unit: RMB
Ending balance Beginning balance
Item Coupon Actual Maturity Coupon Actual Maturity
Par value Par value
rate interest rate date rate interest rate date
N/A
Other notes:
N/A
10. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Contract acquisition cost 0.00 0.00
Costs receivables for recovering products from a customer 108,465,505.00 108,097,353.00
VAT on tax credits 2,727,791,488.00 2,556,625,457.00
Input tax to be verified or deducted 319,634,524.00 329,605,466.00
Prepaid income taxes 3,196,400.00 331,652,233.00
Others 68,916,502.00 68,056,410.00
Total 3,228,004,419.00 3,394,036,919.00
Other notes:
N/A
11. Long-term Receivables
(1) List of Long-term Receivables
Unit: RMB
Ending balance Beginning balance Interval
of
Item Carrying Bad debt Carrying Bad debt
Carrying value Carrying value discount
amount provision amount provision rate
Finance lease 4.65%-
21,315,882.00 0.00 21,315,882.00 28,637,449.00 0.00 28,637,449.00
payment 39.22%
Of which:
4.65%-
unrealized -21,919,713.00 0.00 -21,919,713.00 -25,004,361.00 0.00 -25,004,361.00
39.22%
financing
116
BOE Technology Group Co., Ltd. Interim Report 2023
income
Sales of goods
0.00 0.00 0.00 0.00 0.00 0.00
by installments
Rendering of
services by 0.00 0.00 0.00 0.00 0.00 0.00
installments
Total 21,315,882.00 0.00 21,315,882.00 28,637,449.00 0.00 28,637,449.00
Impairment of bad debt provision
Unit: RMB
Phase I Phase II Phase III
Expected loss in the
Bad debt provision Expected loss in the Total
Expected credit loss of duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
0.00 0.00 0.00 0.00
2023
Balance of 1 January
2023 in the current
period
-Transfer to the Phase
0.00 0.00 0.00 0.00
II
-Transfer to Phase III 0.00 0.00 0.00 0.00
-Reverse to Phase II 0.00 0.00 0.00 0.00
-Reverse to Phase I 0.00 0.00 0.00 0.00
Withdrawal of the
0.00 0.00 0.00 0.00
current period
Reversal of the current
0.00 0.00 0.00 0.00
period
Write-offs of the
0.00 0.00 0.00 0.00
current period
Verification of the
0.00 0.00 0.00 0.00
current period
Other changes 0.00 0.00 0.00 0.00
Balance of 30 June
0.00 0.00 0.00 0.00
2023
Changes of carrying amount with significant amount changed of loss provision in the reporting period
□ Applicable Not applicable
N/A
(2) Derecognition of Long-term Receivables due to the Transfer of Financial Assets
N/A
(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Long-term Receivables
N/A
Other notes:
N/A
117
BOE Technology Group Co., Ltd. Interim Report 2023
12. Long-term Equity Investment
Unit: RMB
Increase/decrease
Profit and loss Ending balance
Beginning balance Adjustment of Declared Ending balance
Investee on investments for impairment
(carrying value) Additional Reduced other Other equity distribution of Impairment (carrying value)
confirmed Others provisions
investments investments comprehensive movements cash dividends provisions
according to
income or profits
equity law
I. Joint ventures
Chongqing Maite
392,291,560.00 0.00 0.00 8,767,739.00 0.00 0.00 0.00 0.00 0.00 401,059,299.00 0.00
Optoelectronics Co., Ltd.
Subtotal 392,291,560.00 0.00 0.00 8,767,739.00 0.00 0.00 0.00 0.00 0.00 401,059,299.00 0.00
II. Associated enterprises
Beijing Nissin Electronics
Precision Component Co., 3,049,888.00 0.00 0.00 -19,978.00 0.00 0.00 0.00 0.00 0.00 3,029,910.00 0.00
Ltd.
Beijing Nittan Electronic
77,049,589.00 0.00 0.00 -2,113,779.00 0.00 0.00 -800,000.00 0.00 0.00 74,135,810.00 0.00
Co., Ltd.
Beijing Infi-Hailin Venture
2,073,333.00 0.00 350,000.00 -295,183.00 0.00 0.00 -1,428,150.00 0.00 0.00 0.00 0.00
Investment Co., Ltd.
Erdos BOE Energy
1,811,883,330.00 0.00 0.00 -143,926.00 0.00 0.00 0.00 0.00 0.00 1,811,739,404.00 777,858,312.00
Investment Co., Ltd.
TPV Display Technology
30,237,982.00 0.00 0.00 -11,151.00 0.00 0.00 0.00 0.00 0.00 30,226,831.00 0.00
(China) Co., Ltd.
Beijing Xindongneng -
Investment Fund (Limited 2,034,870,324.00 0.00 0.00 582,469,724.00 6,317,985.00 0.00 173,692,640.0 0.00 0.00 2,449,965,393.00 0.00
Partnership) 0
Beijing Xindongneng
Investment Management 13,963,180.00 0.00 0.00 289,640.00 0.00 0.00 0.00 0.00 0.00 14,252,820.00 0.00
Co., Ltd.
Beijing Xloong
20,544,910.00 0.00 0.00 -117,901.00 0.00 0.00 0.00 0.00 0.00 20,427,009.00 0.00
Technologies Co., Ltd.
New On Technology Co.,
2,162,264.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 69,469.00 2,231,733.00 2,231,733.00
Ltd.
Cnoga Medical Ltd. 276,916,033.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10,385,445.00 287,301,478.00 287,301,478.00
Hefei Xin Jing Yuan
Electronic Materials Co., 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Ltd.
Beijing United Ultra High- 1,210,671.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,210,671.00 0.00 0.00
118
BOE Technology Group Co., Ltd. Interim Report 2023
Definition Video
Technology Collaboration
Center Co., Ltd.
Tianjin Xianzhilian
Investment Management
10,008,807.00 0.00 0.00 4,482,796.00 0.00 0.00 0.00 0.00 0.00 14,491,603.00 0.00
Centre (Limited
Partnership)
Tianjin Xianzhilian
Investment Centre (Limited 1,387,079,224.00 380,000,000.00 0.00 109,632,627.00 0.00 0.00 0.00 0.00 0.00 1,876,711,851.00 0.00
Partnership)
Beijing Innovation Industry
223,216,553.00 0.00 0.00 10,497,016.00 0.00 0.00 0.00 0.00 0.00 233,713,569.00 0.00
Investment Co., Ltd.
BEHC Industrial
258,149,907.00 56,801,200.00 0.00 131,025.00 0.00 0.00 0.00 0.00 0.00 315,082,132.00 0.00
Investment Co., Ltd.
BOE Houji Technology
3,538,961.00 0.00 0.00 -256,395.00 0.00 0.00 0.00 0.00 0.00 3,282,566.00 0.00
(Beijing) Co., Ltd.
Biochain (Beijing)
334,093,785.00 0.00 0.00 -7,293,446.00 0.00 0.00 0.00 0.00 0.00 326,800,339.00 0.00
Science-Technology Inc
Beijing BOE Microbial
5,851,238.00 0.00 0.00 -8,286,727.00 0.00 6,244,275.00 0.00 0.00 0.00 3,808,786.00 0.00
Technology Co., Ltd.
Hefei Jiangcheng
7,076,713.00 0.00 0.00 -3,975,744.00 0.00 0.00 0.00 0.00 -3,100,969.00 0.00 0.00
Technology Co., Ltd.
BOE Art Cloud
430,598,164.00 0.00 0.00 -1,360,158.00 0.00 0.00 0.00 0.00 0.00 429,238,006.00 0.00
Technology Co., Ltd.
Guoke BOE (Shanghai)
Equity Investment 3,418,472.00 0.00 0.00 -1,222,087.00 0.00 0.00 0.00 0.00 0.00 2,196,385.00 0.00
Management Co., Ltd.
Beijing Yandong
1,171,247,551.00 0.00 0.00 10,702,283.00 0.00 0.00 0.00 0.00 0.00 1,181,949,834.00 0.00
Microelectronic Co., Ltd.
Chongqing BOE Smart
Private Equity Investment
57,545,008.00 46,666,667.00 0.00 -1,048,341.00 0.00 0.00 0.00 0.00 0.00 103,163,334.00 0.00
Fund Partnership (Limited
Partnership)
BOE Digital Technology
36,662,344.00 0.00 0.00 -668,743.00 0.00 0.00 0.00 0.00 0.00 35,993,601.00 0.00
Co., Ltd.
SES Imagotag SA 4,883,374,020.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 59,478,657.00 4,942,852,677.00 0.00
Anhong Technology
701,649.00 1,291,318.00 0.00 -1,757,056.00 0.00 0.00 0.00 0.00 0.00 235,911.00 0.00
(Suzhou) Co., Ltd.
-
Sub-total 13,086,523,900.00 484,759,185.00 350,000.00 689,634,496.00 6,317,985.00 6,244,275.00 175,920,790.0 0.00 65,621,931.00 14,162,830,982.00 1,067,391,523.00
0
-
Total 13,478,815,460.00 484,759,185.00 350,000.00 698,402,235.00 6,317,985.00 6,244,275.00 175,920,790.0 0.00 65,621,931.00 14,563,890,281.00 1,067,391,523.00
0
119
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Other notes:
N/A
120
BOE Technology Group Co., Ltd. Interim Report 2023
13. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Beijing Electronics Zone High-Tech Group Co., Ltd. 76,022,515.00 53,614,432.00
Zhejiang BOE Display Technology Co., Ltd. 321,256.00 321,256.00
Zhejiang Qiusheng Optoelectronics Technology Co., Ltd. 248,776.00 248,776.00
Beijing Digital TV National Engineering Laboratory Co., Ltd. 6,250,000.00 6,250,000.00
Qingdao Ultra HD Video Innovation Technology Co., Ltd. 500,000.00 500,000.00
Bank of Chongqing 93,384,979.00 91,600,150.00
New Century Medical Treatment 8,896,402.00 9,098,008.00
Horizon Robotics, Inc. 36,760,278.00 35,616,005.00
Nanjing Xinjiayuan Technology Co., Ltd. 1,062,926.00 1,094,875.00
Danhua Capital, L.P. 36,129,000.00 34,823,000.00
Danhua Capital II, L.P. 72,258,000.00 69,646,002.00
Kateeva Inc. 86,312,181.00 83,192,147.00
Nanosys INC 22,401,413.00 21,591,641.00
Ceribell INC 9,393,532.00 9,053,972.00
Baebies INC 31,747,904.00 30,600,273.00
KA IMAGING INC. 2,079,347.00 2,004,182.00
MOOV INC. 0.00 0.00
Illumina Fund I,L.P. 33,468,410.00 31,079,577.00
ACQIS Technology, Inc. 1,445,160.00 1,392,920.00
Beijing Dongfang Electronic Industry Co. Ltd. 0.00 0.00
Dongfang Xinchuang (Beijing) Automobile Technology Co., Ltd. 1,375,923.00 1,333,090.00
Total 520,058,002.00 483,060,306.00
Disclosure of Non-trading Equity Instrument Investment
Unit: RMB
Amount Reason for being Reason for
transferred from designated at fair transferring from
Dividend
Accumulative Accumulative other value through other
Item income
gains losses comprehensive other comprehensive
recognized
income to comprehensive income to
retained earnings income retained earnings
With intention of
Beijing Electronics
long-term holding
Zone High-Tech Group 728,606.00 11,114,961.00 0.00 0.00 N/A
Co., Ltd. for strategic
reasons
With intention of
Zhejiang BOE Display long-term holding
0.00 0.00 0.00 0.00 N/A
Technology Co., Ltd. for strategic
reasons
With intention of
Zhejiang Qiusheng
long-term holding
Optoelectronics 0.00 3,040,266.00 0.00 0.00 N/A
Technology Co., Ltd. for strategic
reasons
With intention of
Beijing Digital TV
long-term holding
National Engineering 0.00 0.00 0.00 0.00 N/A
Laboratory Co., Ltd. for strategic
reasons
With intention of
Qingdao Ultra HD
long-term holding
Video Innovation 0.00 0.00 0.00 0.00 N/A
Technology Co., Ltd. for strategic
reasons
Bank of Chongqing 9,772,660.00 42,724,097.00 0.00 0.00 With intention of N/A
121
BOE Technology Group Co., Ltd. Interim Report 2023
long-term holding
for strategic
reasons
With intention of
New Century Medical long-term holding
0.00 0.00 131,042,146.00 0.00 N/A
Treatment for strategic
reasons
With intention of
long-term holding
Horizon Robotics, Inc. 0.00 4,805,778.00 0.00 0.00 N/A
for strategic
reasons
With intention of
Nanjing Xinjiayuan long-term holding
0.00 0.00 937,074.00 0.00 N/A
Technology Co., Ltd. for strategic
reasons
With intention of
long-term holding
Danhua Capital, L.P. 4,181,160.00 24,953,156.00 0.00 0.00 N/A
for strategic
reasons
With intention of
long-term holding
Danhua Capital II, L.P. 6,968,600.00 45,563,349.00 0.00 0.00 N/A
for strategic
reasons
With intention of
long-term holding
Kateeva Inc. 0.00 3,449,715.00 0.00 0.00 N/A
for strategic
reasons
With intention of
long-term holding
Nanosys INC 0.00 0.00 27,947,587.00 0.00 N/A
for strategic
reasons
With intention of
long-term holding
Ceribell INC 0.00 731,249.00 0.00 0.00 N/A
for strategic
reasons
With intention of
long-term holding
Baebies INC 0.00 2,624,350.00 0.00 0.00 N/A
for strategic
reasons
With intention of
long-term holding
KA IMAGING INC. 0.00 71,827.00 0.00 0.00 N/A
for strategic
reasons
With intention of
long-term holding
MOOV INC. 0.00 0.00 27,862,839.00 0.00 N/A
for strategic
reasons
With intention of
long-term holding
Illumina Fund I,L.P. 0.00 13,555,863.00 0.00 0.00 N/A
for strategic
reasons
With intention of
ACQIS Technology, long-term holding
0.00 0.00 118,800.00 0.00 N/A
Inc. for strategic
reasons
Beijing Dongfang With intention of
0.00 0.00 180,000.00 0.00 N/A
Electronic Industry Co. long-term holding
122
BOE Technology Group Co., Ltd. Interim Report 2023
Ltd. for strategic
reasons
With intention of
Dongfang Xinchuang
long-term holding
(Beijing) Automobile 0.00 0.00 93,480.00 0.00 N/A
for strategic
Technology Co., Ltd.
reasons
Other notes:
N/A
14. Other Non-current Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Equity investment 2,079,500,212.00 2,022,967,681.00
Total 2,079,500,212.00 2,022,967,681.00
Other notes:
N/A
15. Investment Property
(1) Investment Property Adopted the Cost Measurement Mode
Applicable □ Not applicable
Unit: RMB
Construction
Item Houses and buildings Land use rights Total
in progress
I. Original carrying value
1. Beginning balance 1,028,293,708.00 687,434,677.00 0.00 1,715,728,385.00
2. Increased amount of the period 14,166,052.00 0.00 37,381,265.00 51,547,317.00
(1) Outsourcing 0.00 0.00 0.00 0.00
(2)Transfer from inventory/fixed
14,166,052.00 0.00 0.00 14,166,052.00
assets/construction in progress
(3) Business combination increase 0.00 0.00 0.00 0.00
(4) Other 0.00 0.00 37,381,265.00 37,381,265.00
3. Decreased amount of the period 63,350,533.00 0.00 0.00 63,350,533.00
(1) Disposal 0.00 0.00 0.00 0.00
(2) Other transfer 63,350,533.00 0.00 0.00 63,350,533.00
4. Ending balance 979,109,227.00 687,434,677.00 37,381,265.00 1,703,925,169.00
II. Accumulative depreciation and
accumulative amortization
1. Beginning balance 412,062,741.00 181,640,506.00 0.00 593,703,247.00
2. Increased amount of the period 7,477,935.00 6,512,834.00 0.00 13,990,769.00
(1)Withdrawal or amortization 7,477,935.00 6,512,834.00 0.00 13,990,769.00
3. Decreased amount of the period 37,691,645.00 0.00 0.00 37,691,645.00
(1) Disposal 0.00 0.00 0.00 0.00
(2) Other transfer 37,691,645.00 0.00 0.00 37,691,645.00
4. Ending balance 381,849,031.00 188,153,340.00 0.00 570,002,371.00
III. Depreciation reserves
1. Beginning balance 0.00 0.00 0.00 0.00
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2. Increased amount of the period 0.00 0.00 0.00 0.00
(1) Withdrawal 0.00 0.00 0.00 0.00
3. Decreased amount of the period 0.00 0.00 0.00 0.00
(1) Disposal 0.00 0.00 0.00 0.00
(2) Other transfer 0.00 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00 0.00
IV. Carrying value
1. Ending carrying value 597,260,196.00 499,281,337.00 37,381,265.00 1,133,922,798.00
1. Beginning carrying value 616,230,967.00 505,794,171.00 0.00 1,122,025,138.00
(2) Investment Property Adopted the Fair Value Measurement Mode
□ Applicable Not applicable
(3) Investment Property with Certificate of Title Uncompleted
Unit: RMB
Item Carrying amounts Reason
N/A
Other notes:
N/A
16. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 217,485,104,581.00 205,987,050,430.00
Disposal of fixed assets 0.00 0.00
Total 217,485,104,581.00 205,987,050,430.00
(1) List of Fixed Assets
Unit: RMB
Item Houses & buildings Equipment Others Total
I. Original carrying value
1. Beginning balance 65,890,430,033.00 297,350,722,399.00 12,351,989,023.00 375,593,141,455.00
2. Increased amount of the
7,657,551,755.00 19,060,523,214.00 1,194,627,523.00 27,912,702,492.00
period
(1) Purchase 238,912,241.00 290,578,627.00 573,024,603.00 1,102,515,471.00
(2)Transfer from construction in
7,407,004,050.00 18,767,799,470.00 598,981,476.00 26,773,784,996.00
progress
(3) Business combination
0.00 53,863,890.00 13,367,713.00 67,231,603.00
increase
(4) Offset of government grants -3,108,890.00 -91,642,707.00 0.00 -94,751,597.00
(5) Differences arising from
translation of foreign currency-
14,744,354.00 39,923,934.00 9,253,731.00 63,922,019.00
denominated financial
statements
3. Decreased amount of the
14,125,047.00 821,330,956.00 54,082,316.00 889,538,319.00
period
(1) Disposal or scrap 0.00 541,068,478.00 54,082,316.00 595,150,794.00
(2) Transfer from construction
0.00 280,262,478.00 0.00 280,262,478.00
in progress
(3) Transfer from investment
14,125,047.00 0.00 0.00 14,125,047.00
properties
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BOE Technology Group Co., Ltd. Interim Report 2023
4. Ending balance 73,533,856,741.00 315,589,914,657.00 13,492,534,230.00 402,616,305,628.00
II. Accumulative depreciation
1. Beginning balance 9,950,729,093.00 150,179,918,690.00 7,539,650,009.00 167,670,297,792.00
2. Increased amount of the
1,241,212,276.00 14,019,556,949.00 1,057,785,874.00 16,318,555,099.00
period
(1) Withdrawal 1,239,721,896.00 14,004,150,018.00 1,054,467,533.00 16,298,339,447.00
(2) Differences arising from
translation of foreign currency-
1,490,380.00 15,406,931.00 3,318,341.00 20,215,652.00
denominated financial
statements
3. Decreased amount of the
28,250.00 724,140,032.00 32,550,056.00 756,718,338.00
period
(1) Disposal or scrap 28,250.00 473,127,991.00 32,550,056.00 505,706,297.00
(2) Transfer from construction
0.00 251,012,041.00 0.00 251,012,041.00
in progress
4. Ending balance 11,191,913,119.00 163,475,335,607.00 8,564,885,827.00 183,232,134,553.00
III. Depreciation reserves
1. Beginning balance 34,480.00 1,740,161,554.00 195,597,199.00 1,935,793,233.00
2. Increased amount of the
0.00 0.00 13,363,140.00 13,363,140.00
period
(1) Withdrawal 0.00 0.00 13,363,140.00 13,363,140.00
3. Decreased amount of the
0.00 47,812,976.00 2,276,903.00 50,089,879.00
period
(1) Disposal or scrap 0.00 47,812,976.00 2,276,903.00 50,089,879.00
(2) Transfer from construction
0.00 20,791,196.00 0.00 20,791,196.00
in progress
4. Ending balance 34,480.00 1,692,348,578.00 206,683,436.00 1,899,066,494.00
IV. Carrying value
1. Ending carrying value 62,341,909,142.00 150,422,230,472.00 4,720,964,967.00 217,485,104,581.00
2. Beginning carrying value 55,939,666,460.00 145,430,642,155.00 4,616,741,815.00 205,987,050,430.00
(2) Temporarily Idle Fixed Assets
Unit: RMB
Accumulated Provision for
Item Book value Carrying amounts Notes
depreciation impairment
N/A
(3) Fixed Assets Leased out by Operating Lease
Unit: RMB
Item Ending carrying value
Fixed assets leased out by operating lease 96,019,182.00
(4) List of Fixed Assets with Certificate of Title Uncompleted
Unit: RMB
Reason for not obtaining ownership
Item Carrying value
certificate
None
Other notes
On 30 June 2023, the carrying value of fixed assets with certificate of title uncompleted totaled RMB6,281,909,591.00, and the
certificate of title was in process.
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BOE Technology Group Co., Ltd. Interim Report 2023
(5) Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
N/A
Total 0.00 0.00
Other notes:
N/A
17. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 24,587,302,375.00 43,386,134,668.00
Engineering materials 0.00 0.00
Total 24,587,302,375.00 43,386,134,668.00
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(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item
Book value Provision for impairment Carrying amounts Book value Provision for impairment Carrying amounts
The 6th generation AMOLED (flexible) production line-Chongqing 13,836,333,674.00 0.00 13,836,333,674.00 31,013,623,277.00 0.00 31,013,623,277.00
Others 10,825,230,788.00 74,262,087.00 10,750,968,701.00 12,446,773,478.00 74,262,087.00 12,372,511,391.00
Total 24,661,564,462.00 74,262,087.00 24,587,302,375.00 43,460,396,755.00 74,262,087.00 43,386,134,668.00
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of which: Capitalizati
Other Proportion of
Accumulated Amount of on rate of
decreased accumulated
Increased Transfer in Job amount of capitalized interests for Sources of
Item Budget Beginning balance amount during Ending balance investment in
amount intangible assets schedule interest interests for the the funding
the Reporting constructions
capitalization Reporting Reporting
Period to budget
Period Period
The 6th
generation
Self-raised
AMOLED
46,500,000,000.00 31,013,623,277.00 3,002,387,686.00 20,064,820,612.00 114,856,677.00 13,836,333,674.00 76.93% 76.93% 966,878,443.00 342,863,482.00 5.45% and
(flexible)
borrowings
production line-
Chongqing
Total 46,500,000,000.00 31,013,623,277.00 3,002,387,686.00 20,064,820,612.00 114,856,677.00 13,836,333,674.00 966,878,443.00 342,863,482.00 5.45%
(3) Provisions for Impairment of Construction in Progress during the Reporting Period
Unit: RMB
Item Withdrawal amount Reason for withdrawal
N/A
Other notes:
N/A
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(4) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Item Provision for Carrying Provision for Carrying
Book value Book value
impairment amounts impairment amounts
N/A 0.00 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00 0.00
Other notes:
N/A
18. Right-of-use Assets
Unit: RMB
Houses and
Item Equipment Others Total
buildings
I. Original carrying value
1. Beginning balance 686,288,720.00 15,961,065.00 198,423,285.00 900,673,070.00
2. Increased amount of the
146,018,817.00 0.00 417,427.00 146,436,244.00
period
(1) Addition 111,200,352.00 0.00 400,476.00 111,600,828.00
(2) Exchange rate change 34,818,465.00 0.00 16,951.00 34,835,416.00
3. Decreased amount of the
11,919,291.00 0.00 0.00 11,919,291.00
period
4. Ending balance 820,388,246.00 15,961,065.00 198,840,712.00 1,035,190,023.00
II. Accumulative
depreciation
1. Beginning balance 192,934,379.00 510,082.00 20,107,663.00 213,552,124.00
2. Increased amount of the
88,672,676.00 2,682,065.00 4,373,877.00 95,728,618.00
period
(1) Withdrawal 81,322,309.00 2,682,065.00 4,345,176.00 88,349,550.00
(2) Exchange rate change 7,350,367.00 0.00 28,701.00 7,379,068.00
3. Decreased amount of the
6,458,283.00 0.00 0.00 6,458,283.00
period
(1) Disposal 6,458,283.00 0.00 0.00 6,458,283.00
(2) Fluctuation of exchange
rate
4. Ending balance 275,148,772.00 3,192,147.00 24,481,540.00 302,822,459.00
III. Depreciation reserves
1. Beginning balance 0.00 0.00 0.00 0.00
2. Increased amount of the
0.00 0.00 0.00 0.00
period
(1) Withdrawal 0.00 0.00 0.00 0.00
3. Decreased amount of the
0.00 0.00 0.00 0.00
period
(1) Disposal 0.00 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00 0.00
IV. Carrying value
1. Ending carrying value 545,239,474.00 12,768,918.00 174,359,172.00 732,367,564.00
2. Beginning carrying value 493,354,341.00 15,450,983.00 178,315,622.00 687,120,946.00
Other notes:
N/A
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19. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent Patent and proprietary
Item Land use rights Patent Computer software Others Total
technology technology
I. Original carrying value
1. Beginning balance 5,796,437,186.00 0.00 0.00 5,245,259,551.00 1,894,880,882.00 704,836,612.00 13,641,414,231.00
2. Increased amount of
508,649,360.00 0.00 0.00 38,807,922.00 178,661,056.00 4,702,497.00 730,820,835.00
the period
(1) Purchase 508,649,360.00 0.00 0.00 24,854,456.00 38,269,087.00 3,305,077.00 575,077,980.00
(2) Internal R&D 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Business combination
0.00 0.00 0.00 13,795,530.00 854,471.00 0.00 14,650,001.00
increase
(4) Transfer from
0.00 0.00 0.00 42,717.00 139,096,810.00 0.00 139,139,527.00
construction in progress
(5) Written down with
0.00 0.00 0.00 0.00 -547,390.00 0.00 -547,390.00
interest subsidies
(6) Exchange difference
on translating foreign 0.00 0.00 0.00 115,219.00 988,078.00 1,397,420.00 2,500,717.00
operations
3. Decreased amount of
0.00 0.00 0.00 0.00 811,593.00 0.00 811,593.00
the period
(1) Disposal 0.00 0.00 0.00 0.00 811,593.00 0.00 811,593.00
4. Ending balance 6,305,086,546.00 0.00 0.00 5,284,067,473.00 2,072,730,345.00 709,539,109.00 14,371,423,473.00
II. Accumulated
amortization
1. Beginning balance 660,214,345.00 0.00 0.00 2,562,045,161.00 1,192,207,819.00 278,619,763.00 4,693,087,088.00
2. Increased amount of
81,870,907.00 0.00 0.00 257,713,808.00 98,588,376.00 22,952,664.00 461,125,755.00
the period
(1) Withdrawal 81,222,018.00 0.00 0.00 257,598,589.00 98,370,835.00 22,295,482.00 459,486,924.00
(2) Exchange difference
on translating foreign 648,889.00 0.00 0.00 115,219.00 217,541.00 657,182.00 1,638,831.00
operations
3. Decreased amount of
0.00 0.00 0.00 0.00 807,424.00 0.00 807,424.00
the period
(1) Disposal 0.00 0.00 0.00 0.00 807,424.00 0.00 807,424.00
4. Ending balance 742,085,252.00 0.00 0.00 2,819,758,969.00 1,289,988,771.00 301,572,427.00 5,153,405,419.00
III. Depreciation reserves
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BOE Technology Group Co., Ltd. Interim Report 2023
1. Beginning balance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2. Increased amount of
0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
(1) Withdrawal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Decreased amount of
0.00 0.00 0.00 0.00 0.00 0.00 0.00
the period
(1) Disposal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4. Ending balance 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IV. Carrying value
1. Ending carrying value 5,563,001,294.00 0.00 0.00 2,464,308,504.00 782,741,574.00 407,966,682.00 9,218,018,054.00
2. Beginning carrying
5,136,222,841.00 0.00 0.00 2,683,214,390.00 702,673,063.00 426,216,849.00 8,948,327,143.00
value
The proportion of intangible assets generated from the internal R&D of the Company to the balance of intangible assets at the period-end: 0.00%.
(2) Land Use Right with Certificate of Title Uncompleted
Unit: RMB
Item Carrying value Reason
N/A
Other notes:
N/A
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20. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Increase Decrease
Name of the invested units or events Formed by
Beginning balance Ending balance
generating goodwill business Disposals
combination
Beijing Yinghe Century Co., Ltd. 42,940,434.00 0.00 0.00 42,940,434.00
K-Tronics (Suzhou) Technology Co., Ltd. 8,562,464.00 0.00 0.00 8,562,464.00
Beijing BOE Optoelectronics Technology
4,423,876.00 0.00 0.00 4,423,876.00
Co., Ltd.
BOE Healthcare Investment & Management
146,460,790.00 0.00 0.00 146,460,790.00
Co., Ltd.
Chengdu CEC Panda Display Technology
537,038,971.00 0.00 0.00 537,038,971.00
Co., Ltd.
Nanjing BOE Display Technology Co., Ltd. 155,714,415.00 0.00 0.00 155,714,415.00
Beijing United Ultra High-Definition Video
0.00 14,285,847.00 0.00 14,285,847.00
Technology Collaboration Center Co., Ltd.
Total 895,140,950.00 14,285,847.00 0.00 909,426,797.00
(2) Provisions for Impairment of Goodwill
Unit: RMB
Name of the invested units or events Increase Decrease
Beginning balance Ending balance
generating goodwill Withdrawal Disposal
Beijing BOE Optoelectronics Technology
4,423,876.00 0.00 0.00 4,423,876.00
Co., Ltd.
BOE Healthcare Investment &
82,137,669.00 0.00 0.00 82,137,669.00
Management Co., Ltd.
Chengdu CEC Panda Display Technology
147,755,754.00 0.00 0.00 147,755,754.00
Co., Ltd.
Total 234,317,299.00 0.00 0.00 234,317,299.00
Information of assets group or the combination of assets group where goodwill is
N/A
Notes of the testing process of goodwill impairment, key parameters(growth rate of predictive period in estimating he present value of
future cash flow, grow rate of stable period, profit rate, discount rate, predictive period, etc.) and the recognition method of goodwill
impairment losses:
The recoverable amounts of goodwill of Beijing Yinghe Century Co., Ltd., K-Tronics (Suzhou) Technology Co., Ltd., BOE Healthcare
Investment & Management Co., Ltd., Nanjing BOE Display Technology Co., Ltd., and Chengdu CEC Panda Display Technology Co.,
Ltd. were determined based on the expectations of future cash flows. The cash flows in the next five years are determined based on the
financial budget approved by the Management. For a period longer than five years in the financial budget, the cash flows after the fifth
year are considered stable. For the pre-tax rate of discount, refer to comparable companies and relevant capital structures.
The influence of testing goodwill
N/A
Other notes:
N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
21. Long-term Prepaid Expense
Unit: RMB
Amortization
Beginning Increased Other decreased
Item amount of the Ending balance
balance amount amount
period
Payment for public facilities
41,161,291.00 0.00 4,309,059.00 0.00 36,852,232.00
construction and use
Cost of operating lease assets
19,430,433.00 39,332,636.00 6,649,562.00 0.00 52,113,507.00
improvement
Others 496,349,653.00 37,968,712.00 63,435,355.00 0.00 470,883,010.00
Total 556,941,377.00 77,301,348.00 74,393,976.00 0.00 559,848,749.00
Other notes:
N/A
22. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible Deductible
temporary Deferred tax assets temporary Deferred tax assets
differences differences
Provision for impairment of assets 150,503,298.00 30,661,222.00 151,264,910.00 31,020,460.00
Internal unrealized profit 0.00 0.00 0.00 0.00
Deductible tax losses 478,892.00 79,017.00 459,130.00 75,757.00
Changes in fair value of investments
120,139,521.00 18,020,928.00 142,547,604.00 21,382,141.00
in other equity instruments
Depreciation of fixed assets 237,498,694.00 37,038,752.00 239,415,255.00 37,326,236.00
Assessed value added by investing
117,118,474.00 29,279,619.00 119,895,400.00 29,973,850.00
real estate in subsidiaries
Government grants 143,385,420.00 21,507,813.00 143,385,420.00 21,507,813.00
Others 93,560,670.00 16,472,944.00 86,936,422.00 15,037,373.00
Total 862,684,969.00 153,060,295.00 883,904,141.00 156,323,630.00
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
Revaluation due to business
combinations involving entities not 873,050,298.00 216,604,513.00 882,129,374.00 217,980,404.00
under common control
Changes in fair value of investment in
0.00 0.00 0.00 0.00
other debt obligations
Changes in fair value of investments
0.00 0.00 0.00 0.00
in other equity instruments
Depreciation of fixed assets 7,538,384,961.00 1,135,804,119.00 7,266,110,223.00 1,094,970,944.00
Long-term equity investments 120,141,687.00 18,021,253.00 120,141,687.00 18,021,253.00
Others 214,232,057.00 40,540,041.00 202,069,699.00 39,237,538.00
Total 8,745,809,003.00 1,410,969,926.00 8,470,450,983.00 1,370,210,139.00
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(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
Mutual set-off amount Ending balance of Mutual set-off amount Beginning balance of
of deferred income tax deferred income tax of deferred income tax deferred income tax
Item
assets and liabilities at assets or liabilities after assets and liabilities at assets or liabilities after
the period-end off-set the period-begin off-set
Deferred tax assets 76,949,267.00 76,111,028.00 80,310,481.00 76,013,149.00
Deferred tax liabilities 76,949,267.00 1,334,020,659.00 80,310,481.00 1,289,899,658.00
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary differences 16,597,998,040.00 22,749,630,064.00
Deductible tax losses 49,539,317,772.00 44,677,908,573.00
Total 66,137,315,812.00 67,427,538,637.00
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
Year Ending amount Beginning amount Notes
2023 0.00 280,957,810.00 N/A
2024 297,735,361.00 451,137,106.00 N/A
2025 1,118,946,692.00 1,253,378,510.00 N/A
2026 1,456,246,810.00 1,473,908,686.00 N/A
2027 3,049,207,566.00 3,146,172,377.00 N/A
2028 3,206,619,968.00 2,279,355,553.00 N/A
2029 4,822,580,125.00 5,008,814,339.00 N/A
2030 4,196,072,639.00 4,196,348,029.00 N/A
2031 2,488,369,145.00 2,502,424,694.00 N/A
2032 23,381,773,397.00 23,569,766,818.00 N/A
2033 5,003,318,431.00 0.00 N/A
Others 518,447,638.00 515,644,651.00 N/A
Total 49,539,317,772.00 44,677,908,573.00
Other notes:
N/A
23. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Provision Provision
Carrying Carrying
Book value for Book value for
amounts amounts
impairment impairment
Contract
0.00 0.00 0.00 0.00 0.00 0.00
acquisition cost
Costs to fulfil a
contract with a 0.00 0.00 0.00 0.00 0.00 0.00
customer
Costs receivables
for recovering
0.00 0.00 0.00 0.00 0.00 0.00
products from a
customer
Contract assets 24,104,653.00 0.00 24,104,653.00 42,427,274.00 0.00 42,427,274.00
Deferred VAT for 0.00 0.00 0.00 2,696,796.00 0.00 2,696,796.00
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BOE Technology Group Co., Ltd. Interim Report 2023
imported
equipment
Prepayment for
375,745,428.00 0.00 375,745,428.00 148,834,349.00 0.00 148,834,349.00
fixed assets
VAT on tax credits 0.00 0.00 0.00 0.00 0.00 0.00
Prepayments for
522,766,989.00 0.00 522,766,989.00 153,690,890.00 0.00 153,690,890.00
construction
Prepayment for
management fee of 138,858,631.00 0.00 138,858,631.00 161,193,670.00 0.00 161,193,670.00
loans
Cash deposit 1,389,080,774.00 0.00 1,389,080,774.00 1,338,834,402.00 0.00 1,338,834,402.00
Others 3,150,173,131.00 0.00 3,150,173,131.00 107,844,003.00 0.00 107,844,003.00
Total 5,600,729,606.00 0.00 5,600,729,606.00 1,955,521,384.00 0.00 1,955,521,384.00
Other notes:
N/A
24. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledge loan 0.00 0.00
Mortgage loan 0.00 0.00
Guaranteed loan 450,737,500.00 901,622,500.00
Credit loan 966,919,154.00 1,472,316,371.00
Total 1,417,656,654.00 2,373,938,871.00
Notes of category of short-term borrowings:
N/A
(2) Overdue and Outstanding Short-term Borrowings
The total overdue and outstanding short-term borrowings was RMB0.00, of which, the significant ones were listed as follows:
Unit: RMB
Borrower Ending balance Loan interest rate Overdue time Overdue charge rate
N/A
Other notes:
N/A
25. Notes Payable
Unit: RMB
Item Ending balance Beginning balance
Commercial acceptance bills 9,260,269.00 22,803,013.00
Bank acceptance bills 782,548,858.00 847,418,525.00
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BOE Technology Group Co., Ltd. Interim Report 2023
Total 791,809,127.00 870,221,538.00
The total overdue and outstanding notes payable at the period-end were RMB0.00.
26. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Payables to related parties 102,656,915.00 179,047,266.00
Payables to third parties 31,200,665,816.00 29,655,673,198.00
Total 31,303,322,731.00 29,834,720,464.00
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
N/A
Other notes:
N/A
27. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Advances from third parties 87,388,824.00 79,660,354.00
Advances from related parties 226,448.00 188,623.00
Total 87,615,272.00 79,848,977.00
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
N/A
Other notes:
N/A
28. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
Sale of goods 3,063,774,937.00 2,411,717,792.00
Total 3,063,774,937.00 2,411,717,792.00
The amount of significant changes of carrying value and reason during the Reporting Period:
Unit: RMB
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Item Amount changed Reason
N/A
29. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 2,656,369,348.00 8,309,333,260.00 8,133,429,295.00 2,832,273,313.00
II. Post-employment benefit-
58,051,832.00 881,231,538.00 880,474,008.00 58,809,362.00
defined contribution plans
III. Termination benefits 104,111,643.00 17,435,012.00 65,275,430.00 56,271,225.00
IV. Other benefits due within one
0.00 0.00 0.00 0.00
year
Total 2,818,532,823.00 9,207,999,810.00 9,079,178,733.00 2,947,353,900.00
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus, allowance,
1,689,488,356.00 6,674,704,377.00 6,602,678,188.00 1,761,514,545.00
subsidy
2. Employee welfare 0.00 526,802,788.00 526,802,788.00 0.00
3. Social insurance 45,026,603.00 413,471,534.00 413,478,185.00 45,019,952.00
Of which: Medical insurance
40,366,802.00 376,248,989.00 378,108,835.00 38,506,956.00
premiums
Work-related injury insurance 2,430,318.00 24,323,848.00 22,956,759.00 3,797,407.00
Maternity insurance 2,229,483.00 12,898,697.00 12,412,591.00 2,715,589.00
4. Housing fund 29,798,139.00 492,639,757.00 506,163,550.00 16,274,346.00
5. Labor union budget and
871,474,749.00 198,924,931.00 82,186,592.00 988,213,088.00
employee education budget
6. Short-term compensated
0.00 0.00 0.00 0.00
absence
7. Short-term profit-sharing plan 0.00 2,730,990.00 2,055,109.00 675,881.00
8. Bonus and allowance bond 20,553,209.00 0.00 0.00 20,553,209.00
9. Other short-term salary 28,292.00 58,883.00 64,883.00 22,292.00
Total 2,656,369,348.00 8,309,333,260.00 8,133,429,295.00 2,832,273,313.00
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 37,012,623.00 743,012,340.00 744,206,739.00 35,818,224.00
2. Unemployment insurance 1,320,821.00 24,332,995.00 24,474,819.00 1,178,997.00
3. Annuity 19,718,388.00 113,886,203.00 111,792,450.00 21,812,141.00
Total 58,051,832.00 881,231,538.00 880,474,008.00 58,809,362.00
Other notes:
N/A
30. Taxes Payable
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Unit: RMB
Item Ending balance Beginning balance
Value-added tax 155,868,185.00 142,337,422.00
Consumption tax 0.00 0.00
Corporate income tax 606,406,463.00 287,859,236.00
Individual income tax 25,833,227.00 48,228,934.00
City maintenance and construction tax 425,690,980.00 428,525,949.00
Education surcharges and local education
305,221,274.00 306,515,854.00
surcharges
Others 117,516,167.00 117,933,793.00
Total 1,636,536,296.00 1,331,401,188.00
Other notes:
N/A
31. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Interest payable 163,348.00 151,200.00
Dividends payable 84,847,829.00 6,410,514.00
Other payables 19,475,669,681.00 19,625,661,555.00
Total 19,560,680,858.00 19,632,223,269.00
(1) Interest Payable
Unit: RMB
Item Ending balance Beginning balance
Long-term loan interest of installment
payment of interest and repay the due 0.00 0.00
capital
Enterprise bond interest 0.00 0.00
Interest paid for short-term borrowings 163,348.00 151,200.00
Interest of preferred shares/perpetual
0.00 0.00
bonds classified as financial liabilities
Others 0.00 0.00
Total 163,348.00 151,200.00
Significant overdue and outstanding interests:
Unit: RMB
Borrower Overdue amount Reason
N/A
Other notes:
N/A
(2) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividends 84,847,829.00 6,410,514.00
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Dividends of preferred shares/perpetual
0.00 0.00
bonds classified as equity instruments
Others 0.00 0.00
Total 84,847,829.00 6,410,514.00
Other notes, including the reason for unpayment of significant dividends payable unpaid for over one year:
N/A
(3) Other Accounts Payable
1) Other Accounts Payable Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Projects and equipment 13,848,999,472.00 13,185,841,311.00
Fund transaction 3,156,283,068.00 3,130,038,067.00
Margins and guaranteed deposits 503,367,375.00 505,702,125.00
Restricted stock repurchase obligations 470,194,635.00 753,440,228.00
Pre-withdrawal water and electricity &
302,516,117.00 407,770,818.00
logistics freight
External intermediary fees 138,390,375.00 172,851,477.00
Imposition of VAT of imported
118,071,543.00 196,440,706.00
equipment
Others 937,847,096.00 1,273,576,823.00
Total 19,475,669,681.00 19,625,661,555.00
2) Significant Other Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
N/A
Other notes:
N/A
32. Non-current Liabilities Due within One Year
Unit: RMB
Item Ending balance Beginning balance
Long-term loans due within 1 year 20,110,128,285.00 21,931,190,138.00
Bonds payable due within 1 year 0.00 0.00
Long-term accounts payable due within 1 year 48,375,495.00 143,117,840.00
Lease liabilities due within 1 year 134,463,255.00 118,302,766.00
Others 510,500,000.00 511,140,000.00
Total 20,803,467,035.00 22,703,750,744.00
Other notes:
N/A
33. Other Current Liabilities
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Unit: RMB
Item Ending balance Beginning balance
Short-term bonds payable 0.00 0.00
Refund liability 107,764,172.00 101,672,253.00
Warranty provisions 3,287,824,380.00 3,368,859,501.00
Pending output VAT 144,242,949.00 139,462,782.00
Others 4,433,886.00 3,973,137.00
Total 3,544,265,387.00 3,613,967,673.00
Increase or decrease in short-term bonds payable:
Unit: RMB
Issued Amortization
Interest Repayment
Face Issuance Maturity Issuance Beginning in the of premium Ending
Debenture at face during the
value date period amount balance Current and balance
value period
Period depreciation
N/A
Total
Other notes:
N/A
34. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledge loan 817,415,210.00 941,892,405.00
Mortgage loan 56,730,979,288.00 65,112,313,021.00
Guaranteed loan 2,795,243,933.00 4,231,932,517.00
Credit loan 60,790,982,796.00 52,857,341,747.00
Total 121,134,621,227.00 123,143,479,690.00
Notes of the category of long-term borrowings:
N/A
Other notes, including the interest rate range:
The interest rate of RMB long-term loans for the Group ranged from 0% to 4.55% in 2023 (2022: from 0% to 5.90%).
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35. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities 600,388,222.00 538,586,010.00
Total 600,388,222.00 538,586,010.00
Other notes:
N/A
36. Long-term Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Long-term payables 212,301,613.00 229,587,077.00
Specific payables 0.00 0.00
Total 212,301,613.00 229,587,077.00
(1) Long-term Accounts Payable Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Long-term payables 212,301,613.00 229,587,077.00
Other notes: N/A
(2) Specific Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance Formed reason
N/A
Total 0.00 0.00
Other notes:
N/A
37. Deferred Income
Unit: RMB
Item Beginning balance Increase Decrease Ending balance Formed reason
Government grants 5,156,347,332.00 1,820,333,412.00 2,497,555,233.00 4,479,125,511.00 Government grants
Total 5,156,347,332.00 1,820,333,412.00 2,497,555,233.00 4,479,125,511.00
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Item involving government grants:
Unit: RMB
Amount recorded into Amount recorded into Amount offset Related to
Beginning Amount of newly
Item non-operating income other income in Reporting cost in the Other changes Ending balance assets/related to
balance subsidy
in the Reporting Period Period Reporting Period income
Related
3,798,389,149.00 394,995,517.00 0.00 259,777,983.00 0.00 95,298,990.00 3,838,307,693.00 Related to assets
to assets
Related
1,357,958,183.00 1,425,337,895.00 0.00 2,142,478,260.00 0.00 0.00 640,817,818.00 Related to income
to income
Total 5,156,347,332.00 1,820,333,412.00 0.00 2,402,256,243.00 0.00 95,298,990.00 4,479,125,511.00
Other notes:
N/A
38. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Contract liabilities 0.00 0.00
Contribution of non-controlling interests with redemption provisions 2,494,840,955.00 2,499,075,805.00
Deferred VAT for imported equipment 0.00 0.00
Others 0.00 0.00
Total 2,494,840,955.00 2,499,075,805.00
Other notes:
N/A
39. Share Capital
Unit: RMB
Increase/decrease (+/-)
Item Beginning balance Bonus issue from Ending balance
New issues Bonus shares Others Sub-total
profit
Total shares 38,196,363,421.00 0.00 0.00 0.00 -10,298,610.00 -10,298,610.00 38,186,064,811.00
Other notes:
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N/A
40. Other Equity Instrument
(1) The Basic Information of Other Financial Instruments such as Preferred Stock and Perpetual Bond Outstanding at the End of the Period
Outstanding
Accounting Interest Maturity date or Conditions for Conversion
financial Issuance date Issuance price Quantity Amount
classification rate renewal status conversion status
instruments
20BOEY1 28 February 2020 Equity instrument 3.64% RMB 100/bond 20 million RMB 2 billion 3+N years Not applicable Not applicable
20BOEY2 19 March 2020 Equity instrument 3.54% RMB 100/bond 20 million RMB 2 billion 3+N years Not applicable Not applicable
20BOEY3 27 April 2020 Equity instrument 3.50% RMB 100/bond 20 million RMB 2 billion 3+N years Not applicable Not applicable
22BOEY1 25 March 2022 Equity instrument 3.50% RMB 100/bond 20 million RMB 2 billion 3+N years Not applicable Not applicable
(2) Changes in Financial Instruments such as Preferred Stock and Perpetual Bond Outstanding at the End of the Period
Unit: RMB
Outstanding Period-beginning Increase Decrease Period-end
financial Carrying
instruments Quantity Carrying amounts Quantity Carrying amounts Quantity Quantity Carrying amounts
amounts
20BOEY1 20,000,000.00 2,050,610,478.00 0.00 11,368,767.00 20,000,000.00 2,061,979,245.00 0.00 0.00
20BOEY2 20,000,000.00 2,045,184,865.00 0.00 14,935,890.00 20,000,000.00 2,060,120,755.00 0.00 0.00
20BOEY3 20,000,000.00 2,037,168,519.00 0.00 22,246,575.00 20,000,000.00 2,059,415,094.00 0.00 0.00
22BOEY1 20,000,000.00 2,043,402,946.00 0.00 34,712,329.00 0.00 70,000,000.00 20,000,000.00 2,008,115,275.00
Total 80,000,000.00 8,176,366,808.00 0.00 83,263,561.00 60,000,000.00 6,251,515,094.00 20,000,000.00 2,008,115,275.00
Changes in other equity instruments for the Current Period, explanation on reasons for the changes and basis for related accounting treatment:
On 30 June 2023, as the issued renewable corporate bonds aforementioned are classified as cumulative other equity instruments, the Company accrued interest of RMB83,263,561.00 on renewable
corporate bonds from undistributed profits and paid interest of RMB283,600,000.00.
Other notes:
N/A
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41. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium
53,831,291,956.00 0.00 222,408,531.00 53,608,883,425.00
(premium on stock)
Other capital reserves 1,387,212,436.00 330,248,419.00 0.00 1,717,460,855.00
Total 55,218,504,392.00 330,248,419.00 222,408,531.00 55,326,344,280.00
Other notes, including notes to increase and decrease during the Reporting Period and the reasons for changes:
N/A
42. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Repurchase of public
3,508,201,911.00 0.00 316,197,626.00 3,192,004,285.00
shares
Total 3,508,201,911.00 0.00 316,197,626.00 3,192,004,285.00
Other notes, including notes to increase and decrease during the Reporting Period and the reasons for changes:
N/A
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43. Other Comprehensive Income
Unit: RMB
Reporting Period
Less:
Less: Recorded
Recorded in
in other
other
comprehensive Net-of-tax Net-of-tax
Beginning comprehensive
Item Income before income in prior amount amount Ending balance
balance income in Less: Income
taxation in the period and attributable to attributable to
prior period tax expense
Current Period transferred in shareholders of non-controlling
and transferred
retained the Company interests
in profit or
earnings in the
loss in the
Current Period
Current Period
I. Other comprehensive income
that will not be reclassified to -121,272,681.00 28,824,098.00 0.00 1,175,221.00 5,574,526.00 22,074,351.00 0.00 -99,198,330.00
profit or loss
Of which: Changes caused by
re-measurements on defined 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
benefit pension schemes
Other comprehensive income
that will not be reclassified to
121,391,777.00 6,317,985.00 0.00 1,175,221.00 0.00 5,142,764.00 0.00 126,534,541.00
profit or loss under equity
method
Changes in fair value of
investments in other equity -242,664,458.00 22,506,113.00 0.00 0.00 5,574,526.00 16,931,587.00 0.00 -225,732,871.00
instruments
Changes in fair value of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
enterprise credit risk
II. Other comprehensive income
that may be reclassified to -952,495,349.00 380,698,468.00 0.00 0.00 0.00 270,899,928.00 109,798,540.00 -681,595,421.00
profit or loss
Of which: Other comprehensive
income that will be reclassified
-156,851.00 0.00 0.00 0.00 0.00 0.00 0.00 -156,851.00
to profit or loss under equity
method
Changes in fair value of
investment in other debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
obligations
Amount of financial assets
reclassified to other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
comprehensive income
Provision for credit impairment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2023
of investment in other debt
obligations
Reserves for cash flow hedges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Translation differences arising
from translation of foreign -952,338,498.00 380,698,468.00 0.00 0.00 0.00 270,899,928.00 109,798,540.00 -681,438,570.00
currency financial statements
Total of other comprehensive
-1,073,768,030.00 409,522,566.00 0.00 1,175,221.00 5,574,526.00 292,974,279.00 109,798,540.00 -780,793,751.00
income
Other notes, including the note to the adjustment of the initial recognition amount of hedged item transferred from the effective gain/loss on cash flow hedges:
N/A
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44. Specific reserve
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Production safety
0.00 97,538,621.00 41,278,188.00 56,260,433.00
reserve
Total 0.00 97,538,621.00 41,278,188.00 56,260,433.00
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
N/A
45. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
2,951,392,625.00 117,522.00 0.00 2,951,510,147.00
reserve
Discretionary surplus
289,671,309.00 0.00 0.00 289,671,309.00
reserve
Reserve fund 0.00 0.00 0.00 0.00
Enterprise expansion
0.00 0.00 0.00 0.00
fund
Others 0.00 0.00 0.00 0.00
Total 3,241,063,934.00 117,522.00 0.00 3,241,181,456.00
Notes to surplus reserves, including the note to increase and decrease in the Reporting Period and the reason for changes:
N/A
46. Retained Profits
Unit: RMB
Item Reporting Period Same period of last year
Opening balance of retained profits before adjustments 35,829,351,680.00 37,106,514,799.00
Total beginning balance of retained profits before
0.00 -9,730,101.00
adjustments (increase+, decrease-)
Beginning balance of retained profits after adjustments 35,829,351,680.00 37,096,784,698.00
Add: Net profit attributable to owners of the Company as
735,809,609.00 7,550,877,790.00
the parent
Less: Appropriation for statutory surplus reserve 0.00 348,186,351.00
Withdrawal of discretional surplus reserves 0.00 0.00
Withdrawal of general reserve 0.00 0.00
Dividends to ordinary shares 2,296,367,344.00 7,958,923,130.00
Dividend of common stock transferred into share capital 0.00 0.00
Interest on holders of other equity instruments 83,263,561.00 530,695,890.00
Transfer of other comprehensive income to retained
-1,057,699.00 -19,494,563.00
earnings
Other 0.00 0.00
Retained earnings 34,186,588,083.00 35,829,351,680.00
List of adjustment of beginning retained profits:
(1) RMB0.00 beginning retained profits was affected by retrospective adjustment conducted according to the Accounting Standards
for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained profits was affected by changes in accounting policies.
(3) RMB0.00 beginning retained profits was affected by correction of significant accounting errors.
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(4) RMB0.00 beginning retained profits was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained profits was affected totally by other adjustments.
47. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Income Cost Income Cost
Principal activities 78,056,831,790.00 71,421,814,017.00 89,179,455,575.00 72,658,074,746.00
Other operating
2,121,043,430.00 1,512,031,439.00 2,430,786,294.00 1,840,993,616.00
activities
Total 80,177,875,220.00 72,933,845,456.00 91,610,241,869.00 74,499,068,362.00
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Types of products 0.00 0.00 0.00
Of which:
By operating places 0.00 0.00 0.00
Of which:
By types of market or customers 0.00 0.00 0.00
Of which:
Types of contracts 0.00 0.00 0.00
Of which:
By the time of transferring goods 0.00 0.00 0.00
Of which:
By contract term 0.00 0.00 0.00
Of which:
By marketing channel 0.00 0.00 0.00
Of which:
Total 0.00 0.00 0.00
Information related to performance obligations:
Generally, the Group assumes the performance obligations of merchandise sales and services for customers. For merchandise sales, if
terms of sales returns are offered, the limit of income recognition is that cumulated recognised income most likely will not have
significant returns. In terms of performance obligations to be performed within a certain period of time, income is recognised according
to the performance progress. Quality assurance provided by customers generally is guaranteed quality assurance. Such guaranteed
quality assurance will not be regarded as a single performance obligation.
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet was
RMB0.00 at the period-end, among which RMB0.00 was expected to be recognized in 0 year, RMB0.00 in 0 year and RMB0.00 in 0
year.
Other notes:
N/A
48. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Consumption tax 0.00 0.00
City maintenance and construction tax 79,884,109.00 131,231,387.00
Education Surcharge 58,436,254.00 94,462,019.00
Resources tax 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2023
Property tax 286,396,295.00 284,268,154.00
Land use tax 28,677,316.00 24,478,318.00
Vehicle and vessel tax 0.00 0.00
Stamp duty 74,697,903.00 82,804,123.00
Others 12,442,850.00 10,590,517.00
Total 540,534,727.00 627,834,518.00
Other notes:
N/A
49. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Warranty provisions 1,088,263,993.00 956,829,173.00
Staff cost 515,360,662.00 578,952,537.00
Share payments 25,496,986.00 46,359,186.00
Others 298,341,655.00 280,338,572.00
Total 1,927,463,296.00 1,862,479,468.00
Other notes:
N/A
50. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Staff cost 1,426,764,708.00 1,599,827,857.00
Maintenance fees 19,889,386.00 18,250,114.00
Depreciation and amortization 477,193,704.00 413,687,986.00
Share payments 64,712,156.00 110,814,289.00
Others 744,774,627.00 806,018,983.00
Total 2,733,334,581.00 2,948,599,229.00
Other notes:
N/A
51. Development Costs
Unit: RMB
Item Reporting Period Same period of last year
Staff cost 2,214,105,050.00 2,400,991,826.00
Material expenses 836,275,235.00 920,452,382.00
Depreciation and amortization 1,080,150,516.00 1,003,150,020.00
Equity incentives 69,400,282.00 124,763,007.00
Others 1,067,078,780.00 912,647,583.00
Total 5,267,009,863.00 5,362,004,818.00
Other notes:
N/A
52. Finance costs
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BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
Item Reporting Period Same period of last year
Interest expense 1,838,822,216.00 1,503,427,051.00
Interest income -978,583,668.00 -651,030,668.00
Net loss on exchange -461,917,499.00 -244,097,140.00
Others 38,548,045.00 45,813,561.00
Total 436,869,094.00 654,112,804.00
Other notes:
N/A
53. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Government grants related to assets 259,777,983.00 439,754,949.00
Government grants related to income 2,460,713,617.00 2,518,837,330.00
Others 25,538,124.00 18,260,284.00
Total 2,746,029,724.00 2,976,852,563.00
54. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Income from long-term equity investments accounted for using equity
698,402,235.00 586,980,332.00
method
Investment income from disposal of long-term equity investments 1,581,850.00 0.00
Investment income arising from holding of trading financial assets 8,641,691.00 0.00
Investment income from disposal of financial assets held for trading 43,836,393.00 44,551,952.00
Dividend income received from holding of other equity instrument
21,651,026.00 14,635,391.00
investment
Gain from remeasurement of remaining equity interests to fair value
0.00 0.00
upon the loss of control
Interest income of investment in debt obligations during holding
0.00 0.00
period
Interest income of investment in other debt obligations during holding
0.00 0.00
period
Investment income from disposal of investment in other debt
0.00 0.00
obligations
Gains from debt restructuring 0.00 0.00
Other 1,185,847.00 0.00
Total 775,299,042.00 646,167,675.00
Other notes:
N/A
55. Gains from Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Financial assets held for trading 167,439,034.00 77,771,038.00
Of which: Gains from changes in fair
0.00 0.00
value of derivative financial instruments
Trading financial liabilities 0.00 0.00
Investment property measured by fair
0.00 0.00
value
Total 167,439,034.00 77,771,038.00
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BOE Technology Group Co., Ltd. Interim Report 2023
Other notes:
N/A
56. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss of other receivables -42,689.00 -28,243.00
Impairment loss of investment in debt
0.00 0.00
obligations
Impairment loss of investment in other
0.00 0.00
debt obligations
Bad debt loss of long-term receivables 0.00 0.00
Bad debt loss of accounts receivables 8,521,863.00 -19,967,284.00
Total 8,479,174.00 -19,995,527.00
Other notes:
N/A
57. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
I. Bad debt loss 0.00 0.00
II. Loss on inventory valuation and contract performance
-1,043,297,559.00 -4,520,260,362.00
cost
III. Impairment losses on long-term equity investment 0.00 -8,199,181.00
IV. Impairment losses on investment property 0.00 0.00
V. Fixed assets impairment losses -13,363,142.00 0.00
VI. Impairment losses on engineering materials 0.00 0.00
VII. Impairment losses on construction in progress 0.00 0.00
VIII. Impairment losses on productive living assets 0.00 0.00
IX. Impairment losses on oil and gas assets 0.00 0.00
X. Impairment losses on intangible assets 0.00 0.00
XI. Goodwill impairment losses 0.00 0.00
XII. Impairment Losses of Contract Assets 0.00 0.00
XIII. Others 0.00 0.00
Total -1,056,660,701.00 -4,528,459,543.00
Other notes:
N/A
58. Asset Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
(Loss) on/gains from disposal of fixed
8,393,532.00 3,590,536.00
assets
Gains from disposal of right-of-use assets 866,428.00 -4,975.00
Gains from disposal of assets held for sale 0.00 16,044.00
Gains from disposal of intangible assets 0.00 0.00
Loss on disposal of construction in
12,600.00 0.00
progress
Total 9,272,560.00 3,601,605.00
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BOE Technology Group Co., Ltd. Interim Report 2023
59. Non-operating Income
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring profit or
loss
Income from non-monetary
0.00 0.00 0.00
assets exchange
Donations accepted 5,025.00 2,000.00 5,025.00
Government grants 213,595.00 1,761,349.00 213,595.00
Others 195,719,741.00 97,822,833.00 195,719,741.00
Total 195,938,361.00 99,586,182.00 195,938,361.00
Government grants recorded into current profit or loss:
Unit: RMB
Whether
subsidies
influence Special Related to
Distribution Distribution Reporting Same period
Item Nature the subsidy assets/related
entity reason Period of last year
current or not to income
profit or
loss
Grants
obtained due
to compliance
Policy
with local
incentives Related to
Government Rewards supporting Yes No 213,595.00 1,761,349.00
and income
policies, such
others
as investment
attraction
policies
Other notes:
N/A
60. Non-operating Expense
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring profit or
loss
Non-monetary asset exchange
0.00 0.00 0.00
losses
Donations provided 1,726,822.00 1,808,206.00 1,726,822.00
Loss on scrap of non-current
25,712,531.00 9,362,295.00 25,712,531.00
assets
Others 4,227,035.00 6,254,995.00 4,227,035.00
Total 31,666,388.00 17,425,496.00 31,666,388.00
Other notes:
N/A
61. Income Tax Expense
(1) List of Income Tax Expense
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BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 782,932,000.00 1,657,492,994.00
Deferred income tax expense 37,600,936.00 23,831,250.00
Total 820,532,936.00 1,681,324,244.00
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation -847,050,991.00
Current income tax expense accounted at statutory/applicable tax rate 0.00
Influence of applying different tax rates by subsidiaries 36,062,087.00
Influence of income tax before adjustment 0.00
Influence of non-taxable income -109,291.00
Effect of non-deductible costs, expense and losses 2,640,938.00
Influence of deductible loss of unrecognized deferred income tax assets in prior
-137,234,044.00
period
Influence of deductible temporary difference or deductible loss of unrecognized
1,051,048,907.00
deferred income tax assets in the Reporting Period
Others -131,875,661.00
Income tax expenses 820,532,936.00
Other notes:
N/A
62. Other Comprehensive Income
Refer to Notes 43 for details.
63. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Government grants related to income 2,761,847,535.00 4,610,789,391.00
Restricted deposits and others 558,103,572.00 973,645,438.00
Total 3,319,951,107.00 5,584,434,829.00
Cash generated from other operating activities:
N/A
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Daily expenditure paid 1,703,860,982.00 2,141,762,138.00
Daily operation margins, deposits, and
854,866,812.00 438,014,471.00
others paid
Total 2,558,727,794.00 2,579,776,609.00
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Cash used in other operating activities:
N/A
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Reporting Period Same period of last year
Interest income from investment
878,583,608.00 604,391,438.00
activities
Recovery of restricted deposits with
1,224,495,078.00 0.00
financial institutions
Investment-based margins and others
6,166,721.00 22,694,954.00
received
Total 2,109,245,407.00 627,086,392.00
Cash generated from other investing activities:
N/A
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Reporting Period Same period of last year
Increase in restricted deposits in financial
0.00 658,308,951.00
institutions
Investment-based margins and others
11,541,974.00 422,030,612.00
returned
Total 11,541,974.00 1,080,339,563.00
Cash used in other investing activities:
N/A
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Recovery of restricted deposits in
1,528,590.00 0.00
financial institutions
Dividends of A and B shares returned
0.00 5,212,625.00
and others
Total 1,528,590.00 5,212,625.00
Cash generated from other financing activities:
N/A
(6) Cash Used in Other Financing Activities
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BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
Item Reporting Period Same period of last year
Repurchase of shares 2,771,603,700.00 274,740,201.00
Repayment of perpetual bonds 6,000,000,000.00 0.00
Leasing-related principals and interests
242,937,365.00 658,251,005.00
and others
Total 9,014,541,065.00 932,991,206.00
Cash used in other financing activities:
N/A
64. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash flows generated from
operating activities:
Net profit -1,667,583,927.00 3,212,916,923.00
Add: Provision for impairment of assets 1,048,181,527.00 4,548,455,070.00
Depreciation of fixed assets, oil-gas assets, and productive living
16,438,531,529.00 16,649,076,929.00
assets
Depreciation of right-to-use assets 86,990,672.00 74,631,909.00
Amortization of intangible assets 444,129,765.00 480,460,970.00
Amortization of long-term deferred expenses 89,102,010.00 79,302,831.00
Losses on disposal of fixed assets, intangible assets and other long-
-9,272,560.00 -3,601,605.00
lived assets (gains: negative)
Losses on scrap of fixed assets (gains: negative) 21,497,303.00 5,081,737.00
Losses from variation of fair value (gains: negative) -167,439,034.00 -77,771,038.00
Finance costs (gains: negative) 1,093,562,434.00 1,687,897,812.00
Investment loss (gains: negative) -775,299,042.00 -646,167,675.00
Decrease in deferred income tax assets (gains: negative) -27,116,549.00 3,698,440.00
Increase in deferred income tax liabilities (“-” means decrease) 102,428,281.00 20,929,956.00
Decrease in inventory (gains: negative) -3,863,870,302.00 -9,786,577,845.00
Decrease in accounts receivable generated from operating activities
1,164,869,933.00 10,599,972,473.00
(gains: negative)
Increase in accounts payable used in operating activities (decrease:
2,708,785,180.00 1,146,723,792.00
negative)
Others -443,828,097.00 116,969,986.00
Net cash inflow from operating activities 16,243,669,123.00 28,112,000,665.00
2. Significant investing and financing activities without involvement
of cash receipts and payments:
Transfer of debt to capital 0.00 0.00
Convertible corporate bonds due within one year 0.00 0.00
Fixed assets leased in through financing 0.00 0.00
3. Net increase/decrease of cash and cash equivalent:
Ending balance of cash 60,588,316,876.00 79,805,078,702.00
Less: Beginning balance of cash 64,382,037,764.00 76,623,486,083.00
Add: Ending balance of cash equivalents 0.00 0.00
Less: Beginning balance of cash equivalents 0.00 0.00
Net increase in cash and cash equivalents -3,793,720,888.00 3,181,592,619.00
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BOE Technology Group Co., Ltd. Interim Report 2023
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMB
Item Amount
Cash or cash equivalents paid in the Reporting Period for business
0.00
combination occurring in the Reporting Period
Of which:
Less: Cash and cash equivalents held by subsidiaries on the date of
0.00
purchase date
Of which:
Add: Cash or cash equivalents paid in the Reporting Period for
0.00
business combination occurring in the prior period
Of which:
Net payments for acquisition of subsidiaries 0.00
Other notes:
N/A
(3) Net Cash Receive from Disposal of the Subsidiaries
Unit: RMB
Item Amount
Cash or cash equivalents received in the Reporting Period from
0.00
disposal of subsidiaries in the Current Period
Of which:
Less: Cash and cash equivalents held by subsidiaries on the
0.00
date of losing control power
Of which:
Add: Cash or cash equivalents received in the Reporting Period
0.00
from disposal of subsidiaries in the prior period
Of which:
Net cash received from disposal of subsidiaries 0.00
Other notes:
N/A
(4) Cash and Cash Equivalent
Unit: RMB
Item Ending balance Beginning balance
I. Cash 60,588,316,876.00 64,382,037,764.00
Including: Cash on hand 735,362.00 896,267.00
Bank deposits available on demand 60,585,457,805.00 64,378,531,680.00
Other monetary funds available on demand 2,123,709.00 2,609,817.00
Accounts deposited in the central bank available for
0.00 0.00
payment
Deposits in other banks 0.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2023
Accounts of interbank 0.00 0.00
II. Cash equivalents 0.00 0.00
Of which: Bond investment expired within three months 0.00 0.00
III. Ending balance of cash and cash equivalents 60,588,316,876.00 64,382,037,764.00
Of which: Cash and cash equivalents with restriction in
use for the Company as the parent or subsidiaries of the 0.00 0.00
Group
Other notes:
N/A
65. Notes to Items in Statements of Changes in Owners’ Equity
Notes to names under the item of “Other” in the adjusted ending balance for the same period of last year and the corresponding amount:
N/A
66. Assets with Restricted Ownership or Right to Use
Unit: RMB
Item Ending carrying value Reason for restriction
Mainly margin deposits for security and
Cash at bank 2,817,459,430.00
pledge for issuance of bills payable
Endorsed and transferred with right of
Bills receivable 29,667,971.00 recourse, and put in pledge for the
issuance of notes payable
Inventories 0.00 N/A
Fixed assets 129,659,013,078.00 Mortgaged as collateral
Intangible assets 1,444,529,663.00 Mortgaged as collateral
Construction in progress 2,223,828,526.00 Mortgaged as collateral
Investment properties 50,727,532.00 Mortgaged as collateral
Total 136,225,226,200.00
Other notes:
N/A
67. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Cash at bank 20,718,098,483.00
Including: USD 2,853,897,339.00 7.2258 20,621,691,390.00
EUR 6,736,302.00 7.8771 53,062,526.00
HKD 47,011,461.00 0.9220 43,344,567.00
Accounts receivable 27,497,327,955.00
Including: USD 2,089,186,063.00 7.2258 15,096,040,653.00
EUR 1,494,747.00 7.8771 11,774,271.00
HKD 546,864,233.00 0.9220 504,208,823.00
Long-term loans 23,183,020,931.00
Including: USD 3,208,367,368.50 7.2258 23,183,020,931.00
EUR 0.00 7.8771 0.00
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BOE Technology Group Co., Ltd. Interim Report 2023
HKD 0.00 0.9220 0.00
Other notes:
N/A
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, Recording
Currency and Selection Basis Shall Be Disclosed; If There Are Changes in Recording Currency, Relevant
Reasons Shall Be Disclosed.
□ Applicable Not applicable
68. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
Amount recorded in the
Category Amount Listed items
current profit or loss
Government grants related to assets with Other income/fixed
826,664,251.00 826,664,251.00
influence on the current profit or loss assets/intangible assets
Government grants related to income with Other income/non-operating
3,092,880,435.00 3,092,880,435.00
influence on the current profit or loss revenue/financial expenses
Others 3,919,544,686.00 -- 3,919,544,686.00
(2) Return of Government Grants
□ Applicable Not applicable
Other notes:
N/A
69. Other
N/A
VIII. Changes of Consolidation Scope
1. Business Combinations Involving Entities Not Under Common Control
(1) Business Combinations Involving Entities Not Under Common Control Occurred During the Reporting Period
Unit: RMB
The The
Basis for acquiree’s acquiree’s net
Date of Proportion Method of determining revenue profit from
Name of the Cost of equity Acquisition
equity of equities equity the from the the
acquiree acquisition date
acquisition acquired acquisition acquisition acquisition acquisition
date date to the date to the
period-end period-end
Beijing Actual
United Ultra 31 January Capital 31 January control
152,990,214.00 56.28% 651,628.00 -8,454,546.00
High- 2023 increase 2023 obtained by
Definition holding
157
BOE Technology Group Co., Ltd. Interim Report 2023
Video more than
Technology half of the
Collaboration board seats
Center Co., of the
Ltd. acquiree
Other notes:
N/A
(2) Acquisition Cost and Goodwill
Unit: RMB
Acquisition cost Amount
--Cash 150,000,000.00
--Fair value of non-cash assets 0.00
--Fair value of issued or assumed debts 0.00
--Fair value of issued equity securities 0.00
--Fair value of the contingent consideration 0.00
--Fair value of equity interests held before the acquisition date on
2,990,214.00
the acquisition date
--Others 0.00
Total acquisition cost 152,990,214.00
Less: Share of the fair value of the identifiable net assets acquired 138,704,367.00
Amount of goodwill/acquisition cost less than share of the fair
14,285,847.00
value of the identifiable net assets acquired
Notes to the method for determining the fair value of the acquisition cost and contingent consideration and its changes:
N/A
Main reasons for the formation of large-amount goodwill:
N/A
Other notes:
N/A
(3) Identifiable Assets and Liabilities of the Acquiree on the Acquisition Date
Unit: RMB
Beijing United Ultra High-Definition Video Technology Collaboration Center Co., Ltd.
Item
Fair value on the acquisition date Carrying value on the acquisition date
Assets:
Cash at bank 209,293,141.00 209,293,141.00
Receivables 119,000.00 119,000.00
Inventories 14,159.00 14,159.00
Fixed assets 71,815,827.00 67,353,815.00
Intangible assets 14,648,248.00 1,579,014.00
Liabilities:
Loans 0.00 0.00
Payables 6,891,987.00 6,891,987.00
Deferred tax liabilities 4,382,811.00 0.00
Net assets 246,454,099.00 225,505,664.00
Less: Non-controlling interests 107,749,732.00 98,591,076.00
Net assets acquired 138,704,367.00 126,914,588.00
Method for determining the fair value of identifiable assets and assets:
Valuation report
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BOE Technology Group Co., Ltd. Interim Report 2023
Contingent liabilities of the acquiree assumed in the business combination:
N/A
Other notes:
N/A
(4) Gain or Loss from Remeasurement of Equity Interests Held before the Acquisition Date at Fair Value
Whether there were several transactions to realize business combinations and acquire controls during the Reporting Period
Yes □ No
Unit: RMB
Determination
Gains or losses Amount of other
Carrying value methods and main
Fair value on the resulting from the comprehensive
before the assumptions of the
purchase date of remeasurement of income related to
purchase date of fair value on the
Name of acquiree the equity held the equity held the equity
the equity held date of purchase of
prior to the prior to the originally held and
prior to the the equity held
purchase date purchase date at transferred into
purchase date prior to the
fair value investment income
purchase date
Beijing United
Ultra High-
Definition Video
1,210,671.00 2,990,214.00 1,779,543.00 Valuation report 0.00
Technology
Collaboration
Center Co., Ltd.
Other notes:
On 25 December 2018, the Company paid the consideration in cash of RMB3,000,000.00 to obtain 4.85% equity in Beijing United
Ultra High-Definition Video Technology Collaboration Center Co., Ltd. On 31 January 2023, the Company paid the consideration in
cash of RMB150,000,000.00 to obtain 55.18% equity in Beijing United Ultra High-Definition Video Technology Collaboration Center
Co., Ltd.
(5) Notes to Failure to Reasonably Determine the Combination Consideration or the Fair Value of Identifiable Assets and
Liabilities of the Acquiree on the Acquisition Date or at the End of the Current Period
N/A
(6) Other Notes
N/A
2. Business Combinations Involving Entities Under Common Control
(1) Business Combinations Involving Entities Under Common Control Occurred During the Reporting Period
Unit: RMB
Proportion of Basis for the Basis for The The The The
Name of
equity judgment determining combined combined combined combined
the Combination
interests about the the party’s party’s net party’s party’s net
combined date
acquired in business combination revenue from profit from revenue profit during
party
the business combination date the beginning the beginning during the the
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BOE Technology Group Co., Ltd. Interim Report 2023
combination under of the current of the current comparison comparison
common period, in period, in period period
control which the which the
combination combination
occurred, to occurred, to
the the
combination combination
date date
N/A
Other notes:
N/A
(2) Acquisition Cost
Unit: RMB
Acquisition cost
--Cash 0.00
--Carrying value of non-cash assets 0.00
--Carrying value of issued or assumed debts 0.00
--Carrying value of issued equity securities 0.00
--Contingent consideration 0.00
Notes to contingent consideration and its changes:
N/A
Other notes:
N/A
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
Item
Combination date End of the previous period
Assets: 0.00 0.00
Cash at bank 0.00 0.00
Receivables 0.00 0.00
Inventories 0.00 0.00
Fixed assets 0.00 0.00
Intangible assets 0.00 0.00
Liabilities: 0.00 0.00
Loans 0.00 0.00
Payables 0.00 0.00
Net assets 0.00 0.00
Less: Non-controlling interests 0.00 0.00
Net assets acquired 0.00 0.00
Contingent liabilities of the combined party assumed in business combinations: N/A
Other notes: N/A
3. Counter Purchase
Basic information of the transactions, basis of the counter purchase, basis and whether assets and liabilities retained by the listed
company constitute business, determination of the combination cost, the amount and calculation of the equity amount adjusted in
treatment for the equity transaction:
N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
4. Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□ Yes No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes No
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of subsidiaries, etc.) and relevant
information:
Two subsidiaries were established this year, namely Mianyang BOE Electronics Technology Co., Ltd. with a shareholding ratio of
100.00% and Beijing Shiyan Technology Co., Ltd. with a shareholding ratio of 80.00%.
6. Other
N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
IX. Equity in Other Entities
1. Interests in Subsidiaries
(1) Subsidiaries
Principal place of Shareholding percentage
Name of the subsidiary Registered place Business nature Acquisition method
business Direct Indirect
Beijing BOE Optoelectronics Research and development (“R&D”), design
Beijing, China Beijing, China 0.00% 100.00% Founded by investment
Technology Co., Ltd. and manufacturing of TFT-LCD
Chengdu BOE Optoelectronics R&D, design, production and sales of new Business combinations
Technology Co., Ltd. (“Chengdu Chengdu, China Chengdu, China display devices and modules and other 100.00% 0.00% involving entities not
Optoelectronics”) electronic components. under common control
Investment, construction, R&D, production Business combinations
Hefei BOE Optoelectronics
Hefei, China Hefei, China and sales of the relevant products of thin film 100.00% 0.00% involving entities not
Technology Co., Ltd.
transistor LCD and its auxiliary products. under common control
Beijing BOE Display Technology Development of TFT-LCD, manufacturing and
Beijing, China Beijing, China 97.17% 2.83% Founded by investment
Co., Ltd. (“Beijing BOE Display”) sale of LCD
Investment, construction, R&D, production Business combinations
Hefei Xinsheng Optoelectronics
Hefei, China Hefei, China and sales of the relevant products of thin film 99.97% 0.03% involving entities not
Technology Co., Ltd.
transistor LCD and its auxiliary products. under common control
Erdos Yuansheng Optoelectronics
Manufacture and sales of AM-OLED products
Co., Ltd. (“Yuansheng Erdos, China Erdos, China 100.00% 0.00% Founded by investment
and auxiliary products.
Optoelectronics”)
R&D, production, and sales of semiconductor
Chongqing BOE Optoelectronics Business combinations
display devices, entire machines, and relevant
Technology Co., Ltd. (“Chongqing Chongqing, China Chongqing, China 100.00% 0.00% involving entities not
products; import and export of goods and
BOE”) under common control
technical consultancy
Investment, building, R&D, production, and
sales of products related to Thin Film
Transistor Liquid Crystal Display (TFT-LCD)
devices and their supporting products
(business premises are separately established);
Fuzhou BOE Optoelectronics proprietary and agency import and export of Business combinations
Technology Co., Ltd. (“Fuzhou Fuzhou, China Fuzhou, China commodities and technologies (excluding 83.24% 0.00% involving entities not
BOE”) commodities and technologies that are under common control
restricted or prohibited by the government);
business management consultancy and
services; house leasing; leasing of machinery
equipment; technological development,
transfer, consultancy, and services of display
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BOE Technology Group Co., Ltd. Interim Report 2023
devices-related products. (Business activities
that require approval in accordance with laws
shall be subject to approval by relevant
authorities.)
An investment platform that sells Liquid
Beijing BOE Video Technology Co., Crystal Displays (LCDs) and develop terminal
Beijing, China Beijing, China 100.00% 0.00% Founded by investment
Ltd. (“BOE Video”) products and systems such as TFT-LCD
display and TV
Beijing BOE Vacuum Electronics Manufacture and sale of vacuum electronic
Beijing, China Beijing, China 57.89% 0.00% Founded by investment
Co., Ltd. products
Beijing BOE Vacuum Technology
Beijing, China Beijing, China Dry pump repair 100.00% 0.00% Founded by investment
Co., Ltd.
Engineering project management; property
management services; rental of commercial
Beijing Yinghe Century Co., Ltd. Beijing, China Beijing, China 100.00% 0.00% Founded by investment
properties; rental of offices; enterprise
management consultancy
BOE Optical Science and
R&D, production and sales of LCD, back light
Technology Co., Ltd. (“Optical Suzhou, China Suzhou, China 95.17% 0.00% Founded by investment
for display and related components.
Science and Technology”)
BOE Hyundai LCD (Beijing) Development, manufacture and sale of liquid
Beijing, China Beijing, China 75.00% 0.00% Founded by investment
Display Technology Co., Ltd. display for mobile termination.
BOE (Hebei) Mobile Technology Manufacture and sale of mobile flat screen
Langfang, China Langfang, China 100.00% 0.00% Founded by investment
Co., Ltd. (“BOE Hebei”) display technical products and related services.
Technology development, technology transfer,
technology consulting and technology
services; sales of computer software, hardware
and auxiliary equipment, digital video and
audio technology products, electronic digital
products, video telephone, mobile phones and
spare parts, hardware (excluding electric
bicycle), household appliances, photographic
Beijing BOE Multimedia equipment, sporting goods, Class I medical
Technology Co. Ltd. (“BOE Beijing, China Beijing, China devices, lamps, stationery, cosmetics, 100.00% 0.00% Founded by investment
Multimedia”) bathroom appliances, knitwear and textile,
clothing, daily necessities, timepieces, glasses,
toys and food; equipment maintenance; import
and export of goods; basic software services;
application software service; machinery and
equipment leases; design, production, agency
and publication of advertisements. (Market
participants independently select the business
activities and carry out the business activities
163
BOE Technology Group Co., Ltd. Interim Report 2023
in accordance with laws and regulations; sales
of food and business activities subject to
approval in accordance with laws and
regulations, operations may be conducted only
with the approval of relevant government
authorities; business activities prohibited and
restricted by the industrial policies of the state
and the city.
Design, consultancy and service of solar cell,
Beijing BOE Energy Technology photovoltaic system, wind power system and
Beijing, China Beijing, China 68.40% 0.00% Founded by investment
Co., Ltd. (“BOE Energy”) solar thermal system as well as the assembly
units; energy-saving service.
Beijing BOE Life Technology Co., Technology promotion services, property
Beijing, China Beijing, China 100.00% 0.00% Founded by investment
Ltd. (“BOE Life Technology”) management, sales of electronic products
Beijing Zhongxiangying Technology Technology promotion services, property
Beijing, China Beijing, China 91.10% 0.00% Founded by investment
Co., Ltd. (“Zhongxiangying”) management, sales of electronic products
Ordos City Haosheng Energy
Ordos, China Ordos, China Energy investment 0.00% 100.00% Founded by investment
Investment Co., Ltd.
BOE Semi-conductor Co., Ltd. Beijing, China Beijing, China Glass thinning and metal part processing 84.00% 0.00% Founded by investment
BOE Optoelectronics Holding Co., British Virgin
Hong Kong Investment holding 100.00% 0.00% Founded by investment
Ltd (“Optoelectronics Holding”) Islands
BOE (Korea) Co., Ltd. Korea Korea Wholesale and retail trade 100.00% 0.00% Founded by investment
BOE Health Investment Business combinations
Investment management and project
Management Co., Ltd. (“Health Beijing, China Beijing, China 100.00% 0.00% involving entities not
investment.
Investment”) under common control
Colour TV set, display tube, color RPTV
Business combinations
Beijing Matsushita Color CRT Co., projection tube and materials of electronic
Beijing, China Beijing, China 88.80% 0.00% involving entities not
Ltd. (“Matsushita Color CRT”) components; property management and
under common control
parking services, etc.
Business combinations
Hefei BOE Display Technology Co., Investment, R & D and production of products
Hefei, China Hefei, China 8.33% 0.00% involving entities not
Ltd. (“Hefei Technology”) related to TFT-LCD and the supporting facility
under common control
Beijing BOE Technology
Development, transfer, consulting and service
Development Co., Ltd. (“Technology Beijing, China Beijing, China 100.00% 0.00% Founded by investment
of technology
Development”)
Investment, construction, R&D, production
Hefei BOE Zhuoyin Technology
Hefei, China Hefei, China and sales of products related to OLED display 75.00% 0.00% Founded by investment
Co., Ltd. (“Zhuoyin Technology”)
device and auxiliary products.
Development, construction, property
management and supporting service of
industrial plants and supporting facilities;
Beijing BOE Land Co., Ltd. Beijing, China Beijing, China 70.00% 0.00% Founded by investment
information consulting of real estate; lease of
commercial facilities, commercial attendants
and the supporting service facilities; motor
164
BOE Technology Group Co., Ltd. Interim Report 2023
vehicles public parking service.
Sales of communication equipment, hardware
& software of computer and peripheral units,
electronic products, equipment maintenance;
development, transfer, consulting and service
Beijing BOE Marketing Co., Ltd. Beijing, China Beijing, China 100.00% 0.00% Founded by investment
providing of technologies; import & export of
goods and technologies, agency of import &
export; manufacturing consignment of
electronic products and LCD devices.
Development, spread, transfer, consultancy
and service providing of display technology;
service providing of computer
software/hardware and network systems;
construction, operation and management of e-
commerce platforms; providing service of
Yunnan Chuangshijie Optoelectronic
conferences; undertaking of exhibitions;
Technology Co., Ltd. (“Yunnan Kunming, China Kunming, China 79.10% 0.00% Founded by investment
computer animation design; production, R&D
BOE”)
and sales of OLED micro display devices and
AR/VR complete machine; storage services;
project investment and management of such
projects; import and export of goods and
technologies; leasing of houses and machinery
equipment
R&D, production, and sales of soft AMOLEDs Business combinations
Mianyang BOE Optoelectronics Co.,
Mianyang, China Mianyang, China that are mainly applied in smartphones, 83.46% 0.00% involving entities not
Ltd. under common control
wearable devices, and vehicle display systems
Building of X-ray sensors, microfluidic chips,
biochemical chips, gene chips, security
Business combinations
Beijing BOE Sensor Technology sensors, microwave antennae, biosensors, and
Beijing, China Beijing, China 100.00% 0.00% involving entities not
Co., Ltd. logistics network technologies and other under common control
semiconductor sensors, as well as technical
detection, consultancy, services, and transfer
Investment, building, R&D, production, sales,
and technological development, transfer, Business combinations
Wuhan BOE Optoelectronics
Wuhan, China Wuhan, China consultancy, and services of TFT-LCD 47.14% 0.00% involving entities not
Technology Co., Ltd. under common control
devices-related products and supporting
products
R&D, production, and sales of semiconductor-
Chongqing BOE Display
Chongqing, China Chongqing, China related products and supporting products; 38.46% 0.00% Founded by investment
Technology Co., Ltd.
import and export of goods and technologies
R&D, production and sales of semiconductor Business combinations
Fuzhou BOE Display Technology
Fuzhou, China Fuzhou, China display device-related products and related 43.46% 0.00% involving entities not
Co., Ltd.
products; import or export of goods or under common control
165
BOE Technology Group Co., Ltd. Interim Report 2023
technology; display device and component,
other electronic components, and technology
development, technology transfer, technical
consulting, related fields related to display
devices and electronic products, technical
services; business management consulting;
property management; house rental; machinery
and equipment rental
R&D, production, and sales of Mini LED
Hefei BOE Xingyu Technology Co.,
Hefei, China Hefei, China backlight components and Mini LED display 63.77% 0.00% Founded by investment
Ltd.
modules and components
Technological development, consultancy,
services, transfer, and promotion; software
development; basic software services;
application software services; computer
system services; sales of stationery supplies,
sporting goods, household appliances, and
electronic products; business management;
market research; economic and trade
consultancy; business management
consultancy; education consultancy; public
relations services; corporate image planning;
organisation of exhibitions; conference
BOE Education Technology Co.,
Beijing, China Beijing, China services; natural science research and 100.00% 0.00% Founded by investment
Ltd.
experimental development; engineering
research and experimental development;
agricultural research and experimental
development; medical research and
experimental development; copyright agency;
arts and crafts creation services. (The
enterprise chooses its own business projects
and carries out business activities by law.
Projects, which must be approved, shall be
conducted upon approval of relevant
departments. Business activities prohibited and
restricted by municipal industrial policies.)
General items: Technical services,
Oriental Chengqi (Beijing) Business development, consultancy, exchanges, transfer,
Beijing, China Beijing, China 100.00% 0.00% Founded by investment
Technology Co., Ltd. and promotion; digital technology services;
software outsourcing services; software sales;
166
BOE Technology Group Co., Ltd. Interim Report 2023
sales of daily necessities; wholesale of daily
necessities; sales agency; translation services;
conference and exhibition services;
organisation of cultural and artistic exchange
activities; advertising production; advertising
publication; advertisement design and agency;
business management; market research
(excluding foreign-related surveys); real estate
consultancy; social and economic consultancy
services; health consultancy services
(excluding diagnostic and treatment services);
ticketing agency services; passenger ticketing
agency; business agency services; planning
and consultancy of tourism development
projects; hotel management; property
management; parking lot services; urban
greening management; landscaping project
construction; professional cleaning and
disinfection services; import and export of
goods; import and export of technologies;
import and export agency; sales of automobile
decorative products; business management
consultancy; food sales (only sales of
prepackaged food); sales of fire protection
equipment; sales of knitwear and textile
products and their raw materials; clothing and
apparel wholesale; retail of hardware products;
disinfectant sales (excluding hazardous
chemicals); wholesale of kitchen utensils and
sanitary ware and daily groceries; software
development; sales of special labour protective
equipment; sales of construction materials;
sales of household appliances; sales of office
equipment; manufacturing of plastic products;
solid waste management. (The enterprise shall
conduct business activities according to its
business license by law, besides projects that
must be approved by law.) Licensed projects:
Internet information services; tourism
167
BOE Technology Group Co., Ltd. Interim Report 2023
business; operating services of urban domestic
waste; kitchen waste. (Projects, which must be
approved, shall be conducted upon approval of
relevant departments. Specific business
projects shall be subject to the approval
document or license of relevant departments.)
(The enterprise shall not engage in business
activities that are prohibited and restricted by
national and municipal industrial policies.)
Project investment; investment management.
(“1. The company shall not raise funds in any
public manner; 2. It shall not conduct
securities products and financial derivative
transactions in any public manner; 3. It shall
not issue loans; 4. It shall not provide
guarantees for enterprises other those it invests
in; 5. It shall not promise any principal
guarantee or minimum return to investors”;
BOE Innovation Investment Co.,
Beijing, China Beijing, China (Market participants independently select the 100.00% 0.00% Founded by investment
Ltd.
business activities and carry out the business
activities in accordance with laws and
regulations; sales of food and business
activities subject to approval in accordance
with laws and regulations, operations may be
conducted only with the approval of relevant
government authorities; business activities
prohibited and restricted by the industrial
policies of the state and the city.))
Provision of hardware and software integrated
system solutions for the IoT market segment;
BOE Smart Technology Co., Ltd. Beijing, China Beijing, China smart city, smart transport, smart finance, 100.00% 0.00% Founded by investment
smart parks and the display terminal products
such as the smart all-in-one machines
R&D, manufacturing and sales of TFT-LCD
panels, color filters and whole liquid crystal
Nanjing BOE Display Technology modules; provision of products and business- Business combinations
Co., Ltd. (Formerly Nanjing CEC Nanjing, China Nanjing, China related services, as well as other business 80.83% 0.00% involving entities not
Panda FPD Technology Co., Ltd.) activities associated with the foregoing; under common control
proprietary and agency import and export of
various goods and technologies (excluding
168
BOE Technology Group Co., Ltd. Interim Report 2023
goods and technologies restricted by state or
import & export prohibited). (For items that
require approval by law, the approval from
related authorities must be obtained before
engagement in the business activities)
R&D, production and sales of TFT-LCD
panels and modules, liquid crystal display
monitors, televisions, instruments, machinery
equipment and accessories as well as provision
Business combinations
Chengdu CEC Panda Display of technical services; foreign trade in form of
Chengdu, China Chengdu, China 35.03% 0.00% involving entities not
Technology Co., Ltd. import and export of goods and technology.
under common control
(For items that require approval by law, the
approval from related authorities must be
obtained before engagement in the business
activities)
Technology development, technology
consultancy, technology transfer, and
technology services; basic software services;
application software services; computer system
services; Internet data services (excluding data
centres in Internet data services and cloud
computing data centre with PUE over 1.4);
information processing and storage support
BOE Jingxin Technology Co., Ltd. Beijing, China Beijing, China 100.00% 0.00% Founded by investment
services; general contracting, professional
contracting, and labour subcontracting;
equipment installation, maintenance, and
leasing; literary and artistic creation; computer
animation design; product design; enterprise
management consulting; sales of computers,
software and auxiliary equipment, as well as
electronic products.
Energy-saving technology, new energy
technology for environmental protection,
environmental protection equipment, solar
power generation, technology development,
BOE Environmental Energy technology consulting, technology transfer,
Beijing, China Beijing, China 100.00% 0.00% Founded by investment
Technology Co., Ltd. technology promotion, technology services,
and technology testing for building integrated
photovoltaics and green building, electric
power, and power station operation and
maintenance; software development; internet
169
BOE Technology Group Co., Ltd. Interim Report 2023
data services (data centres in Internet data
services, excluding cloud computing data
centres with a PUE over 1.4); information
processing and storage support services (data
centres in information processing and storage
support services, excluding cloud computing
data centres with a PUE over 1.4); energy
management contracting; water contamination
governance; atmospheric pollution
governance; solid wastes governance; soil
pollution control and remediation services;
environmental protection monitoring;
installation, maintenance and lease of
equipment; professional design services;
property management; sales of special
equipment for environmental protection,
illuminating equipment, electronic products,
machinery and equipment, electrical
equipment, instruments, hardware products,
computers, software and ancillary equipment,
and chemical products (excluding licensed
chemical products); import and export of
goods; import and export of technologies;
agency of import & export; power service;
construction engineering design; electrical
installation services; miscellaneous
engineering construction activities; general
contracting of housing construction and
municipal infrastructure project engineering;
construction labour subcontracting.
General items: Technological services,
development, consultancy, exchanges, transfer,
and promotion; manufacturing of display
devices [operated by a branch]; sales of
Chengdu BOE Display Technology Investment
Chengdu, China Chengdu, China display devices; manufacturing of electronic 52.63% 0.00%
Co., Ltd. establishment
components [operated by a branch]; wholesale
of electronic components; manufacturing of
other electronic devices [operated by a
branch]; import and export of goods; import
170
BOE Technology Group Co., Ltd. Interim Report 2023
and export of technologies; business
management consultancy; property
management; rental of non-residential real
estate; leasing of machinery equipment.
(business activities shall be conducted
independently in accordance with laws with
the business license, except the items that
require approval in accordance with laws)
Manufacturing of display devices; sales of
display devices; manufacturing of electronic
components; wholesale of electronic
components; technological services,
Beijing BOE Chuangyuan development, consultancy, exchanges, transfer, Investment
Beijing, China Beijing, China 79.31% 0.00%
Technology Co., Ltd. and promotion; import and export of goods; establishment
import and export of technologies; business
management consultancy; property
management; leasing of machinery equipment;
manufacturing of other electronic devices.
General items: Manufacturing of display
devices; sales of display devices;
manufacturing of electronic components;
technological services, development,
consultancy, exchanges, transfer, and
promotion; leasing of machinery equipment;
integration of intelligent control systems;
integration services of information systems;
manufacturing of industrial control computers
and systems; loT technological services; data
Mianyang BOE Electronics Investment
Sichuan, China Sichuan, China processing services; sales of electronic 100.00% 0.00%
Technology Co., Ltd. establishment
products; sales of digital and cultural creative
equipment; sales of semiconductor lighting
devices; integration services of artificial
intelligence application systems; cloud
computing equipment and technological
services; industrial Internet data services;
Internet data services; manufacturing of
semiconductor lighting devices; sales of new
energy original equipment; import and export
of technologies. (business activities shall be
171
BOE Technology Group Co., Ltd. Interim Report 2023
conducted independently in accordance with
laws with the business license, except the
items that require approval in accordance with
laws)
General items: Technological services,
development, consultancy, exchanges, transfer,
and promotion; manufacturing of computer
hardware and software and peripherals;
wholesale of computer hardware and software
and auxiliary equipment; retail of computer
hardware and software and auxiliary
equipment; manufacturing of electronic
components; manufacturing of optoelectronic
devices; manufacturing of display devices;
manufacturing of mobile terminal equipment;
manufacturing of virtual reality equipment; TV
manufacturing; manufacturing of IoT
equipment; sales of electronic products; sales
of display devices; sales of mobile terminal
equipment; sales of communication
equipment; sales of IoT equipment; leasing of Investment
Beijing Shiyan Technology Co., Ltd. Beijing, China Beijing, China 80.00% 0.00%
computers and communication equipment; establishment
manufacturing of integrated circuits; design of
integrated circuits; sales of integrated circuits;
manufacturing of chips and products of
integrated circuits; software sales; import and
export of goods; import and export of
technologies; sales of Class I medical devices;
production of Class I medical devices; leasing
of Class I medical devices; sales of Class II
medical devices; leasing of Class II medical
devices. (The enterprise shall conduct business
activities according to its business license by
law, besides projects that must be approved by
law.) (The enterprise shall not engage in
business activities that are prohibited and
restricted by national and municipal industrial
policies.)
Explanations that the shareholding percentage is different from the voting right percentage in subsidiaries:
172
BOE Technology Group Co., Ltd. Interim Report 2023
(1) BOE signed the Agreement of Persons Acting in Concert with Hefei Core Screen Industrial Investment Fund (Limited Partnership) and Hefei Xingrong Investment Co., Ltd. Based on the
agreement, Hefei Core Screen Industrial Investment Fund (Limited Partnership) and Hefei Xingrong Investment Co., Ltd. agreed to act as the persons 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, BOE owns 100% of the voting right ratio to Hefei BOE
Display and includes it in the consolidation scope.
(2) BOE signed the Agreement of Acting in Concert with Wuhan Airport Economic Development Zone Industrial Development Investment Group Co., Ltd. and Hubei Changbai Industrial
Investment Fund Partnership (Limited Partnership). Based on the agreement, Wuhan Airport Economic Development Zone Industrial Development Investment Group Co., Ltd. and Hubei Changbai
Industrial Investment Fund Partnership (Limited Partnership) agreed to act as the persons 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, BOE owns 100% of the voting right ratio to Wuhan BOE Optoelectronics Technology and includes it in the
consolidation scope.
(3) BOE signed the Agreement of Acting in Concert with Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited Partnership) and Chongqing Yuzi Optoelectronic
Industry Investment Co., Ltd., Chongqing Jianxin Junheng Private Equity Fund Partnership (Limited Partnership), and Chongqing Jingping Equity Investment Fund Partnership (Limited
Partnership). Based on the agreement, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited Partnership) and Chongqing Yuzi Optoelectronic Industry Investment
Co., Ltd., Chongqing Jianxin Junheng Private Equity Fund Partnership (Limited Partnership), and Chongqing Jingping Equity Investment Fund Partnership (Limited Partnership) agreed to act as
the persons 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,
BOE owns 100% of the voting right ratio to Chongqing BOE Display Technology and includes it in the consolidation scope.
(4) BOE signed the Agreement of Acting in Concert with Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou Urban Construction Investment Group Co., Ltd. Based on the
agreement, Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou Urban Construction Investment Group Co., Ltd. agreed to act as the persons 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, BOE owns 100% of the voting right ratio
to Fuzhou BOE Display Technology Co., Ltd. and includes it in the consolidation scope.
(5) BOE signed an agreement of acting in concert with Chengdu Advanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport Xingcheng Investment Group Co., Ltd., Ya’an Yashuang
Investment Co., Ltd., Nanjing Panda Information Industry Group Co., Ltd., and Zhongdian Financial Investment Holding Co., Ltd., aiming to control Chengdu CEC Panda Display Technology
Co., Ltd. by acting in concert. Chengdu Advanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport Xingcheng Investment Group Co., Ltd., Chengdu Xihanggang Industrial
Development Investment Co., Ltd., Nanjing Panda Information Industry Group Co., Ltd., and China Electronics Corporation agreed to act as the persons acting in concert according to the wishes
of the Company on exercising their shareholders’ rights at the Board of Directors and voting rights on recommended directors in Chengdu CEC Panda Display Technology Co., Ltd., on the premise
of not harming their interests. Therefore, BOE owns 96.75% of the voting right ratio to Chengdu CEC Panda Display Technology Co., Ltd. and includes it in the consolidation scope.
Basis for the control over the investees with half or less voting right and for not controlling the investees with over half voting right:
N/A
Basis for the control over the significant structured entities included in the scope of combination:
N/A
Basis for the determining the Company as the agent or the trustor:
N/A
Other notes:
N/A
173
BOE Technology Group Co., Ltd. Interim Report 2023
(2) Significant Not Wholly-owned Subsidiary
Unit: RMB
Shareholding proportion of The profit or loss attributable to Declaring dividends distributed Ending balance of non-
Name of the subsidiary
non-controlling interests non-controlling interests to non-controlling interests controlling interests
Hefei BOE Display Technology Co., Ltd. 91.67% -725,412,821.00 0.00 18,104,773,689.00
Mianyang BOE Optoelectronics Technology Co., Ltd. 16.54% 33,721,531.00 0.00 3,591,814,262.00
Wuhan BOE Optoelectronics Technology Co., Ltd. 52.86% -605,583,434.00 0.00 12,544,146,535.00
Chongqing BOE Display Technology Co., Ltd. 61.54% -117,528,531.00 0.00 15,449,246,431.00
Notes that the shareholding percentage is different from the voting right percentage of non-controlling shareholders in subsidiaries:
N/A
Other notes:
N/A
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Name of the
Non-current Non-current
subsidiary Current assets Non-current assets Total assets Current liabilities Total liabilities Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities liabilities
Hefei BOE
Display
11,509,761,234.00 18,260,650,406.00 29,770,411,640.00 4,438,987,644.00 5,581,479,970.00 10,020,467,614.00 12,595,285,193.00 20,269,449,516.00 32,864,734,709.00 6,306,350,492.00 6,025,395,194.00 12,331,745,686.00
Technology
Co., Ltd.
Mianyang BOE
Optoelectronics
10,378,164,398.00 36,906,568,339.00 47,284,732,737.00 10,222,166,068.00 15,346,640,055.00 25,568,806,123.00 12,372,285,496.00 37,212,140,922.00 49,584,426,418.00 11,072,411,471.00 17,008,183,759.00 28,080,595,230.00
Technology
Co., Ltd.
Wuhan BOE
Optoelectronics
7,249,550,083.00 37,154,039,570.00 44,403,589,653.00 6,516,451,930.00 14,156,251,353.00 20,672,703,283.00 7,442,285,566.00 38,934,335,172.00 46,376,620,738.00 6,251,107,827.00 15,254,593,174.00 21,505,701,001.00
Technology
Co., Ltd.
Chongqing
BOE Display 9,394,982,496.00 35,681,268,798.00 45,076,251,294.00 7,260,358,165.00 12,711,495,290.00 19,971,853,455.00 8,590,561,462.00 32,479,448,086.00 41,070,009,548.00 5,410,946,190.00 12,186,708,120.00 17,597,654,310.00
Technology
174
BOE Technology Group Co., Ltd. Interim Report 2023
Co., Ltd.
Unit: RMB
Reporting Period Same period of last year
Name of the subsidiary Total Cash flows from Total Cash flows from
Operating income Net profit comprehensive operating Operating income Net profit comprehensive operating
income activities income activities
Hefei BOE Display
6,102,514,499.00 -791,330,665.00 -791,330,665.00 1,893,921,796.00 6,859,750,975.00 -1,134,274,044.00 -1,134,274,044.00 -87,608,184.00
Technology Co., Ltd.
Mianyang BOE
Optoelectronics 10,278,165,117.00 203,878,666.00 203,878,666.00 4,925,480,711.00 5,554,777,261.00 -1,593,827,191.00 -1,593,827,191.00 4,096,026,311.00
Technology Co., Ltd.
Wuhan BOE
Optoelectronics 7,036,723,065.00 -1,145,636,462.00 -1,145,636,462.00 1,446,335,090.00 7,746,898,476.00 -1,238,456,854.00 -1,238,456,854.00 427,041,611.00
Technology Co., Ltd.
Chongqing BOE Display
1,395,192,424.00 -190,979,088.00 -190,979,088.00 -297,292,696.00 64,074,397.00 -93,951,667.00 -93,951,667.00 64,280,967.00
Technology Co., Ltd.
Other notes:
N/A
(4) Significant Limitation on the Use of Assets and Liquidation of Debts of the Company
N/A
(5) Financial Support or Other Support Provided for Structured Entities Included in the Scope of Consolidated Financial Statements
N/A
175
BOE Technology Group Co., Ltd. Interim Report 2023
Other notes:
N/A
2. Transactions That Cause Changes in the Group’s Interests in Subsidiaries That Do Not Result in Loss of
Control
(1) Explanations on Changes in Owner’s Equity of Subsidiary
N/A
(2) The Effects of the Transaction on Non-controlling Interests and Equity Attributable to Owners of the Company as the
Parent
Unit: RMB
Item
Purchase cost/disposal consideration 0.00
--Cash 0.00
--Fair value of non-cash assets 0.00
Total of purchase cost/disposal consideration 0.00
Less: Subsidiary net assets proportion calculated by share
0.00
proportion obtained/disposal
Difference 0.00
Of which: Adjustment of capital reserves 0.00
Surplus reserves adjustments 0.00
Retained profits adjustments 0.00
Other notes:
N/A
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Shareholding percentage Accounting
treatment
method for the
Principal place Registered
Name Business nature investment in
of business place Direct Indirect joint ventures
or associated
enterprises
N/A
Explanations that the shareholding percentage is different from the voting right percentage in joint ventures or associated enterprises:
N/A
Basis of the voting rights below 20% but with major influence, or without major influence but with over 20% (included) voting rights
held:
N/A
(2) The Main Financial Information of Significant Joint Ventures
Unit: RMB
Beginning balance/The same period of
Item Ending balance/Reporting Period
last year
176
BOE Technology Group Co., Ltd. Interim Report 2023
N/A
Other notes:
N/A
(3) The Main Financial Information of Significant Associated Enterprises
Unit: RMB
Beginning balance/The same period of
Ending balance/Reporting Period
Item last year
N/A
Other notes:
N/A
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
Beginning balance/The same period of
Item Ending balance/Reporting Period
last year
Joint venture:
Total carrying value of investment 0.00 0.00
The total of following items according to
the shareholding proportions
--Net profit 0.00 0.00
--Other comprehensive income 0.00 0.00
--Total comprehensive income 0.00 0.00
Associated enterprise:
Total carrying value of investment 13,496,498,758.00 12,421,878,851.00
The total of following items according to
the shareholding proportions
--Net profit 698,402,235.00 586,980,332.00
--Other comprehensive income 6,317,985.00 -10,213,701.00
--Total comprehensive income 704,720,220.00 576,766,631.00
Other notes:
N/A
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to Transfer
Funds to the Company
N/A
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
The cumulative recognized The derecognized losses (or The accumulative
Name losses in previous the share of net profit) in unrecognized losses in
accumulatively derecognized Reporting Period Reporting Period
Hefei Xin Jing Yuan Electronic
-14,922,087.00 624,844.00 -14,297,243.00
Materials Co., Ltd.
Hefei Jiangcheng Technology
0.00 -2,473,727.00 -2,473,727.00
Co., Ltd.
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BOE Technology Group Co., Ltd. Interim Report 2023
Other notes:
As at 30 June 2023, Hefei Xinjingyuan Electronic Materials Co., Ltd. has continuously incurred losses. Since the Company has no
obligation to undertake extra losses for it, the recognition of the share of its net losses born by the Company shall be limited to that the
carrying value of long-term equity investments is reduced to zero. And the accumulative unrecognized investment losses are
RMB14,297,243.
As at 30 June 2023, Hefei Jiangcheng Technology Co., Ltd. had accumulated losses. The Group has no obligation to bear additional
losses for it. Therefore, in terms of the determination of the share of the net losses incurred to be assumed by the Company, the carrying
value of the long-term equity investment should be written down to zero. The accumulated unrecognised losses on investment were
RMB2,473,727.
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
N/A
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
N/A
4. Significant Common Operation
Main Operating Place of Proportion/Share portion
Name Business Nature
Place Registration Directly Indirectly
None
Notes to holding proportion or share portion in common operation different from voting proportion:
N/A
For common operation as a single entity, basis of classifying as common operation
N/A
Other notes
N/A
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
N/A
6. Other
N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
X. The Risk Related to Financial Instruments
1. Credit Risk
Credit risk refers to the risk of financial losses to one party of a financial instrument due to the failure of obligation performance by the
other party. The credit risk of the Group is mainly from accounts receivable. And the management will continue to monitor the exposure
of these credit risks.
The 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.
As for accounts receivable, the Group has worked out the credit policies based on actual situation to evaluate customers’ credit so as
to decide the limit of sales on credit and credit period. The credit evaluation is conducted on the basis of a customer’s financial condition,
external rating and historical transaction records. The accounts receivable will expire within 7 to 120 days since the issue date of
account bills. The debtors of overdue accounts receivable will be required to pay off all outstanding balance before obtaining further
credit lines. Generally, the Group will not ask customers to provide collaterals.
The credit risk of the Group is mainly influenced by characteristics of customers, not the industries, countries or regions they are in.
Thus, the concentration of material credit risks is mainly generated from material accounts receivable and contract assets of the Group
from individual customers. On the balance sheet date, the accounts receivable of the Group and the Company’s top five customers
respectively account for 30% (in 2022: 39%) of total accounts receivable and total contract assets of the Group and the Company.
What’s more, the accounts receivable of the Group not overdue and without impairment are mainly from customers without debt
records recently.
The maximum credit risk exposure born by the Group is the carrying amount of each financial asset in the balance sheet. As stated in
Note XIV, the Group has no external guarantee that will bring credit risks to the Group as at 30 June 2023.
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.
3. Interest Rate Risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to cash flow interest rate risk and fair value
interest risk, respectively. The Group determines the appropriate weightings of the fixed and floating rate interest-bearing instruments
based on the current market conditions and performs regular reviews and monitoring to achieve an appropriate mix of fixed and floating
rate exposure. The Group does not enter into financial derivatives to hedge interest rate risk.
As at 30 June 2023, it is estimated that a general increase/decrease of 100 basis points in interest rates of variable rate instrument, with
all other variables held constant, would decrease/increase the Group’s net profit and equity by RMB442.82 million (2022: RMB679.15
million).
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 annualized 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
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BOE Technology Group Co., Ltd. Interim Report 2023
or selling foreign currencies at spot rates when necessary to address short-term imbalances.
(a) The Group’s exposure as at 30 June to currency risk arising from recognised foreign currency assets or liabilities is mainly
denominated in US dollar. The amount of the USD exposure is net liabilities exposure USD762,574,278 (2022 net liabilities exposure:
USD1,523,210,633), translated into RMB5,510,209,218 (2022: RMB10,608,552,775), using the spot rate at the balance sheet date.
Differences resulting from the translation of the financial statements denominated in foreign currency are excluded.
(b) Assuming all other risk variables remained constant, a 5% strengthening/weakening of the Renminbi against the US dollar at 30
June would have decrease/increase both the Group’s equity and net profit by the amount RMB91,925,478 (2022: increased/decreased
RMB136,665,926).
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.
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending fair value
Item Level 1 Fair value Level 2 Fair value Level 3 Fair value
Total
measurement measurement measurement
I. Consistent fair value measurement -- -- -- --
(I) Trading financial assets 296,101,534.00 0.00 13,378,905,298.00 13,675,006,832.00
1. Financial assets at fair value
296,101,534.00 0.00 13,378,905,298.00 13,675,006,832.00
through profit or loss
(1) Debt instruments investment 0.00 0.00 11,299,405,086.00 11,299,405,086.00
(2) Equity instruments investment 296,101,534.00 0.00 2,079,500,212.00 2,375,601,746.00
(3) Derivative financial assets 0.00 0.00 0.00 0.00
2. Financial assets assigned
measured by fair value and the
0.00 0.00 0.00 0.00
changes be included in the current
gains and losses
(1) Debt instruments investment 0.00 0.00 0.00 0.00
(2) Equity instruments investment 0.00 0.00 0.00 0.00
(II) Investment in other debt
0.00 0.00 0.00 0.00
obligations
(III) Other equity instrument
178,303,896.00 0.00 341,754,106.00 520,058,002.00
investment
(IV) Investment property 0.00 0.00 0.00 0.00
1. Lease the land use right 0.00 0.00 0.00 0.00
2. Rental buildings 0.00 0.00 0.00 0.00
3. Land use right held and prepared
0.00 0.00 0.00 0.00
to transfer after appreciation
(V) Biological assets 0.00 0.00 0.00 0.00
1.Consumable biological assets 0.00 0.00 0.00 0.00
2. Productive living assets 0.00 0.00 0.00 0.00
Total assets measured at fair value
474,405,430.00 0.00 13,720,659,404.00 14,195,064,834.00
on a recurring basis
(VI) Trading financial liabilities 0.00 0.00 0.00 0.00
Of which: Tradable bond issued 0.00 0.00 0.00 0.00
Derivative financial liabilities 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00
(VII) Refer as financial liabilities
0.00 0.00 0.00 0.00
measured by fair value and the
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BOE Technology Group Co., Ltd. Interim Report 2023
changes included in the current
gains and losses
Total liabilities of consistent fair
0.00 0.00 0.00 0.00
value measurement
II. Inconsistent fair value
-- -- -- --
measurement
(I) Assets held for sale 0.00 0.00 0.00 0.00
Total assets inconsistently measured
0.00 0.00 0.00 0.00
at fair value
Total liabilities inconsistently
0.00 0.00 0.00 0.00
measured at fair value
2. Basis of Determining the Market Price for Recurring and Non-recurring Fair Value Measurements
Categorized within Level 1
The unadjusted offer in active market obtaining same assets or liabilities on the calculation date.
3. Consistent and Inconsistent Fair Value Measurement Items at Level 2, Valuation Techniques Adopted, the
Qualitative and Quantitative Information of Important Parameters
Observable input value of related assets or liabilities except level 1 input value.
4. Consistent and Inconsistent Fair Value Measurement Items at Level 3, Valuation Techniques Adopted, the
Qualitative and Quantitative Information of Important Parameters
The unobservable input value of related assets or liabilities.
5. Consistent Fair Value Measurement Items at Level 3, Adjustment between the Beginning Carrying Value
and the Ending Carrying Value and Sensitivity Analysis on Unobservable Parameters
N/A
6. Explain the Reason for Conversion and the Policy Governing when the Conversion Happens if Conversion
Happens among Consistent Fair Value Measurement Items at Different Level
N/A
7. Changes in Valuation Techniques in the Reporting Period and Reasons for the Changes
N/A
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
N/A
9. Other
N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
XII. Connected Party and Connected Transaction
1. Information on the Company as the Parent
Proportion of Proportion of
share held by voting rights
the Company owned by the
Company name Registered place Business nature Registered capital
as the parent Company as the
against the parent against the
Company (%) Company (%)
Operation and
No. 12,
management of
Beijing Electronics Jiuxianqiao Road,
state-owned assets RMB3,139,210,000.00 0.72% 12.20%
Holding Co., Ltd. Chaoyang District,
within
Beijing
authorization, etc.
Notes to the Company as the parent:
N/A
The final controller of the Company is Beijing Electronics Holding Co., Ltd.
Other notes:
N/A
2. Subsidiaries of the Company
Refer to Note IX.-1 for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
For information of significant joint ventures or associated enterprises of the Company, please refer to Note IX.-3.
List of other joint ventures and associated enterprises that made connected transactions with the Company generating balance during
or before the Reporting Period:
Name Relationship with the Company
Beijing Nittan Electronic Co., Ltd. An affiliated enterprise of the Group and the Company
TPV Display Technology (China) Co., Ltd. An affiliated enterprise of the Group and the Company
BOE Digital Technology Co., Ltd. An affiliated enterprise and subsidiary of the Group and the Company
BOE Art Cloud Technology Co., Ltd. An affiliated enterprise and subsidiary of the Group and the Company
BOE Art Cloud (Suzhou) Technology Co., Ltd. An affiliated enterprise and subsidiary of the Group and the Company
BOE Art Cloud (Hangzhou) Technology Co., Ltd. An affiliated enterprise and subsidiary of the Group and the Company
BOE Art Cloud (Beijing) Technology Co., Ltd. An affiliated enterprise and subsidiary of the Group and the Company
Beijing Xindongneng Investment Management Co., Ltd. An affiliated enterprise of the Group and the Company
Hefei Xin Jing Yuan Electronic Materials Co., Ltd. An affiliated enterprise of the Group
Beijing BOE Microbial Technology Co., Ltd. An affiliated enterprise of the Group
Shenzhen Jiangcheng Technology Co., Ltd. An affiliated enterprise of the Group
BOE Houji Technology (Beijing) Co., Ltd. An affiliated enterprise of the Group
Biochain (Beijing) Science-Technology Inc An affiliated enterprise and subsidiary of the Group
Beijing Yandong Microelectronic Co., Ltd. An affiliated enterprise of the Group
SES Imagotag SA Co., Ltd. An affiliated enterprise and subsidiary of the Group
Chongqing Maite Optoelectronics Co., Ltd. An affiliated enterprise of the Group
Beijing Borcheng Medical Laboratory Co. Ltd. An affiliated enterprise and subsidiary of the Group
SES-Imagotag GmbH Co., Ltd. An affiliated enterprise and subsidiary of the Group
PDi Digital GmbH An affiliated enterprise and subsidiary of the Group
Pervasive Displays Inc An affiliated enterprise and subsidiary of the Group
Other notes:
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BOE Technology Group Co., Ltd. Interim Report 2023
N/A
4. Information on Other Related Parties
Name of other related parties Relationship with the Company
Beijing BOE Investment Development Co., Ltd. An enterprise controlled by the same ultimate holding company
NAURA Technology Group Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing Zhengdong Electronic Power Group Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing Dongdian Industrial Development Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing Naura Microelectronics Equipment Co., Ltd. An enterprise controlled by the same ultimate holding company
Sevenstar Semiconductor Technologies Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing Zhaowei Technology Development Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing C&W Intelligent Equipment Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing Ether Electronics Group Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing Yansong Economic and Trade Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing Peony Electronic Group Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing Electronics Holding & SK Technology Co., Ltd. An enterprise controlled by the same ultimate holding company
Baic Electronics Holding SK (Jiangsu) Technology Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing Yan Dong Microelectronic Technology Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing Electrical Control Jiuyi Industrial Development
An enterprise controlled by the same ultimate holding company
Company
761 Workshop (Beijing) Technology Development Co., Ltd. An enterprise controlled by the same ultimate holding company
Beijing Smart-Aero Display Technology Co., Ltd. An enterprise controlled by the same ultimate holding company
An associate enterprise of the enterprise controlled by the same
New Vision Microelectronics (Hong Kong) Limited
ultimate holding company
An associate enterprise of the enterprise controlled by the same
Beijing Senju Electronic Materials Co., Ltd.
ultimate holding company
Hefei Construction Investment and Holding Co., Ltd. Other related party
Shanghai New Vision Microelectronics Co., Ltd. Other related party
Beijing Yizhuang Environmental Technology Group Co., Ltd. Other related party
China Minsheng Bank Co., Ltd. Other related party
Beijing Jingcheng Machinery Electric Holding Co., Ltd. Other related party
Nexchip Semiconductor Corporation Other related party
Hefei Visionox Technology Co., Ltd. Other related party
Other notes:
N/A
5. Transactions with Related Parties
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
Whether
Nature of Reporting The approval Same period of
Name of related party exceed trade
transaction Period trade credit last year
credit or not
Beijing Electronics Holding Co., Purchase of
126,531,434.00 600,000,000.00 No 196,001,751.00
Ltd and its affiliated companies goods
Beijing Electronics Holding Co., Receiving of No
4,882,973.00 25,000,000.00 8,395,214.00
Ltd and its affiliated companies services
Purchase of No
Other related parties 419,867,816.00 832,000,000.00 618,189,627.00
goods
183
BOE Technology Group Co., Ltd. Interim Report 2023
Receiving of No
Other related parties 104,939.00 1,000,000.00 4,448,768.00
services
Other related parties Interest costs 17,315,453.00 140,000,000.00 No 43,423,377.00
Information of sales of goods and provision of labor service
Unit: RMB
Nature of Same period of
Name of related party Reporting Period
transaction last year
Beijing Electronics Holding Co., Ltd and its affiliated companies Sale of goods 273,238,127.00 776,906,136.00
Rendering of
Beijing Electronics Holding Co., Ltd and its affiliated companies 2,948,091.00 9,388,915.00
services
Other related parties Sale of goods 1,673,991,112.00 391,395,870.00
Rendering of
Other related parties 2,365,367.00 2,615,873.00
services
Other related parties Interest income 11,933,168.00 23,183,395.00
Explanation of Information on Acquisition of Goods and Reception of Labor Service
N/A
(2) Connected Trusteeship/Contract and Entrust/Contractee
Lists of connected trusteeship/contract:
Unit: RMB
Income
Name of the
Name of the recognized in
entrustee/ Type Start date Due date Pricing basis
entruster/contractee the Reporting
contractor
Period
N/A
Notes to connected trusteeship/contract
N/A
Lists of entrust/contractee:
Unit: RMB
Name of Income
Name of the the recognized in
Type Start date Due date Pricing basis
entruster/contractee entrustee/ the Reporting
contractor Period
N/A
Notes to entrust/contractee
N/A
(3) Information on Connected Lease
The Company served as the lessor:
184
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
The lease income confirmed in the The lease income confirmed in the same
Name of lessee Type of assets leased
Reporting Period period of last year
Beijing Electronics Holding Co., Ltd and its
Investment properties 1,682,277.00 3,684,450.00
affiliated companies
Other related parties Investment properties 971,113.00 4,240,693.00
The Company served as the lessee:
Unit: RMB
Rental expenses of short- Variable lease payments not
term lease simplified included in the Income expense of lease Increased right-of-use
Paid rent
treated and low-value asset measurement of lease liabilities undertaken assets
Type of lease (if applicable) liabilities (if applicable)
Name of lessor
assets leased
The same The same The same The same The same
Reporting Reporting Reporting Reporting Reporting
period of period of period of last period of period of
Period Period Period Period Period
last year last year year last year last year
Beijing Electronics Holding Co.,
Fixed assets 0.00 0.00 0.00 0.00 1,526,423.00 2,676,474.00 79,763.00 209,567.00 0.00 0.00
Ltd and its affiliated companies
Other related parties Fixed assets 143,991.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Notes to connected lease:
N/A
(4) Connected Guarantee
The Company served as the guarantee
Unit: RMB
Secured party Amount Start date Due date Whether completely performed
N/A
The Company served as the secured party
Unit: RMB
Guarantee Amount Start date Due date Whether completely performed
N/A
Notes to connected guarantee: N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
(5) Interbank Borrowing and Lending of Capital by Connected Party
Unit: RMB
Name of related party Amount of funding Inception date Maturity date Note
Funds received
N/A
Funds provided
N/A
(6) Assets Transfer and Debt Restructuring of Connected Party
Unit: RMB
Name of related party Nature of transaction Reporting Period Same period of last year
N/A
(7) Remuneration for Key Management Personnel
Unit: RMB
Item Reporting Period Same period of last year
Remuneration of key management personnel 38,920,597.00 70,157,777.00
(8) Other Connected Transactions
N/A
6. Receivables from and Payables to Related Parties
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Item Name of related party Provision
Provision for
Book value Book value for
impairment
impairment
Accounts Beijing Electronics Holding Co., Ltd
88,888,963.00 4,371.00 142,590,194.00 2,601.00
receivable and its affiliated companies
Contract Beijing Electronics Holding Co., Ltd
0.00 0.00 222,912.00 0.00
assets and its affiliated companies
Other Beijing Electronics Holding Co., Ltd
577,297.00 0.00 179,015.00 0.00
receivables and its affiliated companies
Beijing Electronics Holding Co., Ltd
Prepayments 0.00 0.00 3,735,164.00 0.00
and its affiliated companies
Other Non-
Beijing Electronics Holding Co., Ltd
current 17,203,153.00 0.00 14,026,424.00 0.00
and its affiliated companies
Assets
Monetary
Other related parties 1,138,907,638.00 0.00 965,569,850.00 0.00
assets
Accounts 4,983,620.0
Other related parties 988,687,234.00 4,985,637.00 928,258,123.00
receivable 0
Contract
Other related parties 1,157,057.00 0.00 2,180,062.00 0.00
assets
Other Other related parties
10,369,703.00 0.00 16,409,519.00 0.00
receivables
Prepayments Other related parties 6,897,324.00 0.00 2,880,203.00 0.00
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BOE Technology Group Co., Ltd. Interim Report 2023
(2) Accounts Payable
Unit: RMB
Item Name of related party Ending carrying balance Beginning carrying balance
Beijing Electronics Holding
Accounts payable Co., Ltd and its affiliated 29,177,761.00 17,550,142.00
companies
Beijing Electronics Holding
Other payables Co., Ltd and its affiliated 162,892,393.00 177,747,607.00
companies
Beijing Electronics Holding
Advance payments received Co., Ltd and its affiliated 141,120.00 0.00
companies
Beijing Electronics Holding
Contract liabilities Co., Ltd and its affiliated 2,071,260.00 5,163,782.00
companies
Non-current Liabilities Due
Other related parties 6,000,000.00 6,000,000.00
within One Year
Long-term borrowings Other related parties 1,110,750,000.00 1,257,250,000.00
Accounts payable Other related parties 73,479,154.00 161,497,124.00
Other payables Other related parties 1,435,108.00 4,806,791.00
Advance payments received Other related parties 85,328.00 188,623.00
Contract liabilities Other related parties 19,257,241.00 29,000,509.00
7. Commitments of the Related Parties
As at the balance sheet date, the commitments of the related parties, which are signed but not listed in financial statement, are for the
procurement of equipment. The amount was RMB57,524,635.00. It was RMB16,594,169.00 in the same period last year.
8. Other
N/A
XIII. Share-based Payments
1. Overview of Share-based Payments
Applicable □ Not applicable
Unit: RMB
The total amount of equity instruments granted to the Company during
0.00
the Reporting Period
The total amount of equity instruments exercised by the Company during
0.00
the Reporting Period
The total amount of equity instruments of the Company that expire during
0.00
the Reporting Period
Scope of the exercise price of outstanding stock options of the Company
--
at the end of the Reporting Period and remaining contract term
Scope of the exercise price of other outstanding equity instruments of the
--
Company at the end of the Reporting Period and remaining contract term
Other notes:
On 17 November 2020, the General Meeting of the Company approved the implementation of share options and restricted share
incentive plans since 2020. The shares for the share options and restricted share incentive plans are from the Company’s Renminbi A-
187
BOE Technology Group Co., Ltd. Interim Report 2023
share ordinary shares repurchased from the secondary market.
Vesting plans of share options and restricted share incentive plans are presented as follows:
(1) 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 implementation was completed on 22 October 2021. The actual number of grantees was 110, with a number
of grants of 33,000,000 shares.
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.
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 (First grant: RMB1.68/share, RMB1.93/share and
RMB2.09/share, respectively; reserved grant: RMB1.70/share, RMB2.02/share and RMB2.17/share, respectively).
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.
(2) 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 shares are 24, 36 and 48 months from the grant date. 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 the performance assessment result in the previous year.
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 RMB2.68/share.
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.
The Company made an achievement of lifting the restriction conditions in the first lifting restriction period of the 2020 Restricted
Share Incentive Scheme. The Board of Directors lifted restrictions for the incentive personnel meeting restriction conditions in line
with the authorisation of the Second Extraordinary General Meeting of Shareholdings in 2020 and relevant provisions. The total
number of incentive personnel whose restrictions were lifted was 746. Statistically, 102,260,780 restricted shares were lifted out of
restrictions, accounting for 0.2677% of the current total share capital of the Company.
If the unlocking conditions stipulated in the plan were not met, the restricted shares of incentive personnel shall not be unlocked for
the current period and shall be repurchased by the Company in accordance with the grant price for the incentive personnel.
2. Equity-settled Share-based Payments
Applicable □ Not applicable
188
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
Share option: 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 (First: RMB1.68/share,
RMB1.93/share and RMB2.09/share, respectively; Second:
Method for determining the fair value of equity instruments at
RMB1.70/share, RMB2.02/share and RMB2.17/share,
the grant date
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 RMB2.68/share.
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
Basis of determining the number of equity instruments
completion of performance indicators, and the number of
expected to vest
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.
Causes for material difference between the current estimate and
N/A
the previous estimate
Payment of the cumulative amount included in capital reserves
1,917,748,998.00
with equity-settled shares
Total costs recognized by equity-settled share-based payment in
183,844,464.00
the Reporting Period
Other notes:
N/A
3. Cash-settled Share-based Payments
□ Applicable Not applicable
4. Modification and Termination of Share-based Payments
N/A
5. Others
N/A
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
Unit: RMB
The Group 30 June 2023 31 December 2022
Outward investment contract signed but not performed or not performed fully 33,261,033,429.00 31,109,629,604.00
Outward investment contract authorized but contract not signed 97,900,140,388.00 100,442,930,917.00
Total 131,161,173,817.00 131,552,560,521.00
Unit: RMB
The Group 30 June 2023 31 December 2022
189
BOE Technology Group Co., Ltd. Interim Report 2023
Outward investment contract signed but not performed or not performed fully 28,148,307,292.00 28,350,937,574.00
Outward investment contract authorized but contract not signed 0.00 0.00
Total 28,148,307,292.00 28,350,937,574.00
2. Contingency
(1) Significant Contingency on the Balance Sheet Date
N/A
(2) Explanations Should Also Be Given when there Was No Significant Contingency to Disclose
There was no significant contingency to disclose.
3. Other
N/A
XV. Other Significant Events
1. Debt Restructuring
N/A
2. Assets Replacement
(1) Replacement of Non-monetary Assets
N/A
(2) Replacement of Other Assets
N/A
3. Pension Plans
In order to ensure and improve the living standards of BOE retirees and put in place a multi-layer old-age security system and a long-
term talent retaining mechanism, as per China’s relevant policies and regulations, BOE has established the annuity programme since
January 2014. The annuity fund consists of the contributions by the Company (paid as per the government’s regulations according to
the applicable taxation policy), the contributions by employees (deducted by the Company from their salaries according to the
applicable taxation policy) and the returns on investment by the fund (operated by the relevant government department according to
the investment principle of high security and moderate income).
190
BOE Technology Group Co., Ltd. Interim Report 2023
4. Segment Information
(1) Recognition Basis and Accounting Policies of Reportable Segment
(a) Display business—The Display Devices business offers integrated design and manufacturing services for devices, and is committed
to providing interface devices applying TFT-LCD, AMOLED, Microdisplay and other technologies, focusing on providing customers
with high-quality display devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicle-mounted, electronic shelf label (ESL),
industrial control, household medical applications, applications on wearable devices, whiteboards, tiled display screens, commercial
devices, VR/AR devices, etc.
(b) Internet of Things (IoT) innovation business—The IoT Innovation business offers integrated design and manufacturing services for
system solutions, and provides customers with competitive smart terminal products for TVs, monitors, laptops, tablets, low-power
devices, IoT, 3D display, etc. Backed by AI and big data technologies, it focuses on products and services combining hardware and
software, providing integrated IoT solutions for segments including smart industrial parks, smart finance, smart government affairs and
transportation, visual arts, smart energy, all-in-one machines, etc.
(c) Sensor business—The sensing business designs and integrates manufacturing models for system solutions, covering both glass-
based and silicon-based areas. It focuses on medical imaging, intelligent windows, innovative glass-based sensor devices, industrial
applications, consumer electronics, and automotive electronics, and provides customers with products and solutions, including the back
panels of X-ray flat panel detectors, intelligent dimming windows and dimming system solutions, industrial sensors and solutions, and
sensors.
(d) MLED business—The MLED business designs and integrates manufacturing models for devices. It provides fine-patch LED
backlight products with high reliability, high zoning, and fine dimming for display products in the fields of TVs, displays, laptops,
automobiles, and VR/AR. Meanwhile, it provides Mini/Micro LED display products, featuring high brightness, high reliability, and
high contrast, to application segments, such as outdoor, commercial, transparent, and special display.
(e) Smart medicine and engineering—The Smart Medical Engineering business provides professional healthcare service models,
features the innovative integration of technology and medicine, and focuses on healthcare service scenarios, such as families,
communities, and hospitals. It creates a full-cycle closed loop of health services that centres on health management, is driven by medical
engineering terminals, and supported by digital hospitals and healthcare communities, and establishes an ecosystem of smart health
management. Moreover, it connects testing equipment, medical personnel, and customers and provide customers with full-chain
professional health services covering “prevention, diagnosis and treatment, and healthcare”.
(f) Others—Other service mainly includes technical development service and patent maintenance service.
The main reason to separate the segments is that the Group independently manages the display business, IoT innovation business,
sensor business, MLED business, smart medicine and engineering business and other businesses. As these business segments
manufacture and/or sell different products, apply different manufacturing processes and specify in gross profit, the business segments
are managed independently. The management evaluates the performance and allocates resources according to the profit of each business
segment and does not take financing cost and investment income into account.
191
BOE Technology Group Co., Ltd. Interim Report 2023
(2) The Financial Information of Reportable Segment
Unit: RMB
Smart medical Offset
Smart systems
Item Display business Sensor business MLED business engineering Others and offset among Total
innovation business
business segment
Operating income 67,875,605,158.00 17,416,958,825.00 183,294,095.00 457,988,865.00 1,353,661,118.00 -7,109,632,841.00 0.00 80,177,875,220.00
Operating costs 63,795,640,147.00 15,917,582,582.00 148,832,046.00 497,625,089.00 1,084,810,592.00 -8,510,645,000.00 0.00 72,933,845,456.00
(3) If There Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each Reportable Segment Could not Be Reported, Relevant Reasons
Shall Be Clearly Stated
The Company develops various businesses by using common assets and liabilities and therefore, it could not analyze assets and liabilities of each reportable segment respectively by business.
(4) Other Notes
N/A
5. Other Important Transactions and Matters Impacting Investors’ Decision-making
N/A
6. Other
N/A
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BOE Technology Group Co., Ltd. Interim Report 2023
XVI. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Book value Provision for impairment Book value Provision for impairment
Category Carrying
Withdrawal Carrying amounts Withdrawal
Amount Percentage Amount Amount Percentage Amount amounts
proportion proportion
Accounts
receivable for
which bad
5,273,499,462.00 100.00% 8,406,011.00 0.16% 5,265,093,451.00 4,872,009,123.00 100.00% 8,406,011.00 0.17% 4,863,603,112.00
debt provision
accrued
separately
Of which:
Customers
with a high 91,158,884.00 1.73% 8,406,011.00 9.22% 82,752,873.00 8,406,011.00 0.17% 8,406,011.00 100.00% 0.00
credit risk
Customers
with a low 5,182,340,578.00 98.27% 0.00 0.00% 5,182,340,578.00 4,863,603,112.00 99.82% 0.00 0.00% 4,863,603,112.00
credit risk
Accounts
receivable
withdrawal of
199,634.00 0.00% 0.00 0.00% 199,634.00 141,554.00 0.00% 79,397.00 56.09% 62,157.00
bad debt
provision of
by portfolio
Of which:
Customers
with a
199,634.00 0.00% 0.00 0.00% 199,634.00 141,554.00 0.00% 79,397.00 56.09% 62,157.00
moderate
credit risk
Total 5,273,699,096.00 100.00% 8,406,011.00 0.16% 5,265,293,085.00 4,872,150,677.00 100.00% 8,485,408.00 0.17% 4,863,665,269.00
193
BOE Technology Group Co., Ltd. Interim Report 2023
Bad debt provision withdrawn separately:
Unit: RMB
Ending balance
Name
Book value Provision for impairment Withdrawal proportion Reason for withdrawal
Customers with high credit risks 91,158,884.00 8,406,011.00 9.22% None
Customers with low credit risks 5,182,340,578.00 0.00 0.00% None
Total 5,273,499,462.00 8,406,011.00
Bad debt provision accrued by group:
Unit: RMB
Ending balance
Name
Book value Provision for impairment Withdrawal proportion
Customers with moderate credit risks 199,634.00 0.00 0.00%
Total 199,634.00 0.00
BOE Technology Group Co., Ltd. Interim Report 2023
Notes of the basis of recognizing the group:
Customer group Basis
Customers with high credit risk With special matters, litigations or the deterioration of customers’ credit status
Customers with low credit risk Banks, insurance companies, large state-owned enterprises and public institutions
Customers with moderate credit risk Customers not included in Groups above
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accounts receivable.
Applicable □ Not applicable
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.
Disclosed by aging
Unit: RMB
Ageing Ending balance
Within 1 year (including 1 year) 3,427,604,743.00
1 to 2 years 1,505,619,854.00
2 to 3 years 184,006,305.00
Over 3 years 156,468,194.00
3 to 4 years 142,504,342.00
4 to 5 years 12,739,868.00
Over 5 years 1,223,984.00
Total 5,273,699,096.00
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Beginning Changes in the Reporting Period
Category Ending balance
balance Withdrawal Reversal or recovery Write-off Others
Bad debt of accounts
8,485,408.00 9,367.00 -88,764.00 0.00 0.00 8,406,011.00
receivable
Total 8,485,408.00 9,367.00 -88,764.00 0.00 0.00 8,406,011.00
Of which bad debt provision reversed or recovered with significant amount:
Unit: RMB
Subsidiary Amount reversed or recovered Way of recovery
N/A
N/A
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount verified
Accounts receivable with actual verification 0.00
Of which the verification of significant accounts receivable:
Unit: RMB
Subsidiary Nature Amount verified Reason for Verification Whether generated
195
BOE Technology Group Co., Ltd. Interim Report 2023
verification procedures from connected
performed transactions
N/A
Verification of accounts receivable:
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
Proportion to the total ending
Ending balance of accounts Ending balance of bad debt
Subsidiary balance of accounts
receivable provisions
receivable
Sum of top 5 accounts
4,733,465,351.00 89.76% 0.00
receivable
Total 4,733,465,351.00 89.76%
(5) Accounts Receivable Derecognized Due to the Transfer of Financial Assets
N/A
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continued Involvement of
Accounts Receivable
N/A
Other notes:
N/A
2. Other Accounts Receivable
Unit: RMB
Item Ending balance Beginning balance
Interest receivable 0.00 0.00
Dividends receivable 334,081,592.00 333,352,986.00
Other receivables 24,526,471,760.00 19,544,792,389.00
Total 24,860,553,352.00 19,878,145,375.00
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
Fixed time deposit 0.00 0.00
Entrusted loan 0.00 0.00
Bond investment 0.00 0.00
Total 0.00 0.00
2) Significant Overdue Interest
Unit: RMB
Whether occurred
Borrower Ending balance Overdue time Reason
impairment and its
BOE Technology Group Co., Ltd. Interim Report 2023
judgment basis
N/A
Other notes:
N/A
3) Withdrawal of Bad Debt Provision
□ Applicable Not applicable
(2) Dividend Receivable
1) Category of Dividend Receivable
Unit: RMB
Item (or investee) Ending balance Beginning balance
Beijing Matsushita Colour Innovation Co., Ltd. 333,352,986.00 333,352,986.00
Beijing Electronics Zone High-Tech Group Co., Ltd. 728,606.00 0.00
Total 334,081,592.00 333,352,986.00
2) Significant Dividend Receivable Aging over One Year
Unit: RMB
Whether occurred
Item (or investee) Ending balance Ageing Unrecovered reason impairment and its
judgment basis
N/A
3) Withdrawal of Bad Debt Provision
□ Applicable Not applicable
Other notes:
N/A
(3) Other Accounts Receivable
1) Other Account Receivable Classified by Account Nature
Unit: RMB
Nature of other receivables Ending carrying balance Beginning carrying balance
Transaction amount 24,295,439,284.00 19,338,630,021.00
Others 247,152,418.00 226,870,164.00
Total 24,542,591,702.00 19,565,500,185.00
2) Withdrawal of Bad Debt Provision
Unit: RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Provision for impairment Expected credit losses for the whole existence for the whole existence Total
in the next 12 months period (no credit period (with credit
impairment) impairment)
BOE Technology Group Co., Ltd. Interim Report 2023
Balance of 1 January 2023 0.00 0.00 20,707,796.00 20,707,796.00
Balance of 1 January 2023 in
the current period
-Transfer to the Phase II 0.00 0.00 0.00 0.00
-Transfer to Phase III 0.00 0.00 0.00 0.00
-Reverse to Phase II 0.00 0.00 0.00 0.00
-Reverse to Phase I 0.00 0.00 0.00 0.00
Withdrawal of the current
0.00 0.00 158,067.00 158,067.00
period
Reversal of the current period 0.00 0.00 4,745,921.00 4,745,921.00
Write-offs of the current
0.00 0.00 0.00 0.00
period
Verification of the current
0.00 0.00 0.00 0.00
period
Other changes 0.00 0.00 0.00 0.00
Balance of 30 June 2023 0.00 0.00 16,119,942.00 16,119,942.00
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable Not applicable
Disclosed by aging
Unit: RMB
Ageing Ending balance
Within 1 year (including 1 year) 12,196,630,358.00
1 to 2 years 9,928,547,558.00
2 to 3 years 2,340,741,214.00
Over 3 years 76,672,572.00
3 to 4 years 19,273,731.00
4 to 5years 43,267,042.00
Over 5 years 14,131,799.00
Total 24,542,591,702.00
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Others
recovery
Bad debt
provisions for
20,707,796.00 158,067.00 4,745,921.00 0.00 0.00 16,119,942.00
other
receivables
Total 20,707,796.00 158,067.00 4,745,921.00 0.00 0.00 16,119,942.00
N/A
Of which bad debt provision reversed or recovered with significant amount:
Unit: RMB
Subsidiary Amount reversed or recovered Way of recovery
N/A
N/A
BOE Technology Group Co., Ltd. Interim Report 2023
4) Other Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount verified
N/A
Of which the verification of significant other accounts receivable:
Unit: RMB
Verification Whether generated
Reason for
Subsidiary Nature Amount verified procedures from connected
verification
performed transactions
N/A
Notes of verification of other receivables:
N/A
5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
Proportion to
the total Ending
ending balance of
Subsidiary Nature Ending balance Ageing
balance of bad debt
other provisions
receivables
Within 1 year (including 1
Transaction
Customer A 6,400,644,338.00 year), 1 to 2 years, and 2 to 3 26.08% 0.00
amount
years
Within 1 year (including 1
Transaction year), 1 to 2 years, 2 to 3
Customer B 5,034,990,393.00 20.52% 0.00
amount years, 4 to 5 years, and 5 years
and above
Within 1 year (including 1
Transaction
Customer C 3,433,790,865.00 year), 1 to 2 years, 2 to 3 13.99% 0.00
amount
years,, and 4 to 5 years
Transaction Within 1 year (including 1
Customer D 2,498,484,647.00 10.18% 0.00
amount year) and 3 to 4 years
Transaction Within 1 year (including
Customer E 2,203,861,316.00 8.98% 0.00
amount 1year) and 1 to 2 years
Total 19,571,771,559.00 79.75% 0.00
6) Accounts Receivable Involving Government Grants
Unit: RMB
Estimated
Project of
Subsidiary Ending balance Ending aging recovering time,
government grants
amount and basis
N/A
N/A
7) Other Accounts Receivable Derecognized Due to the Transfer of Financial Assets
N/A
BOE Technology Group Co., Ltd. Interim Report 2023
8) Amount of Assets and Liabilities Due to the Transfer of Other Account Receivable and Continued Involvement
N/A
Other notes:
N/A
BOE Technology Group Co., Ltd. Interim Report 2023
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item
Book value Provision for impairment Carrying amounts Book value Provision for impairment Carrying amounts
Investment to subsidiaries 214,623,892,313.00 32,000,000.00 214,591,892,313.00 211,178,767,516.00 32,000,000.00 211,146,767,516.00
Investment to joint ventures
3,637,137,141.00 0.00 3,637,137,141.00 3,162,185,504.00 0.00 3,162,185,504.00
and associated enterprises
Total 218,261,029,454.00 32,000,000.00 218,229,029,454.00 214,340,953,020.00 32,000,000.00 214,308,953,020.00
(1) Investment to Subsidiaries
Unit: RMB
Increase/decrease Ending
Beginning balance Ending balance balance for
Investee Additional Reduced Impairment
(carrying value) Others (carrying value) impairment
investments investments provisions provisions
BOE Semi-conductor Co., Ltd. 9,450,000.00 0.00 0.00 0.00 0.00 9,450,000.00 0.00
Beijing Yinghe Century Co., Ltd. 352,398,076.00 0.00 0.00 0.00 2,617,830.00 355,015,906.00 0.00
Beijing BOE Land Co., Ltd. 9,480,764.00 0.00 0.00 0.00 233,472.00 9,714,236.00 0.00
BOE (Heibei) Mobile Display Technology Co.,
1,356,283,555.00 0.00 0.00 0.00 247,284.00 1,356,530,839.00 0.00
Ltd.
BOE Hyundai LCD (Beijing) Display Technology
41,986,755.00 0.00 0.00 0.00 1,261,746.00 43,248,501.00 0.00
Co., Ltd.
Beijing BOE Vacuum Electronics Co., Ltd. 19,933,529.00 0.00 0.00 0.00 86,568.00 20,020,097.00 0.00
Beijing BOE Vacuum Technology Co., Ltd. 0.00 0.00 0.00 0.00 0.00 0.00 32,000,000.00
Beijing BOE Optoelectronics Technology Co., Ltd. 40,981,121.00 0.00 0.00 0.00 3,516,114.00 44,497,235.00 0.00
BOE Optical Science and Technology Co., Ltd. 667,477,273.00 0.00 0.00 0.00 1,388,886.00 668,866,159.00 0.00
Beijing BOE Sales Co., Ltd. 31,573,496.00 0.00 0.00 0.00 140,190.00 31,713,686.00 0.00
Chengdu BOE Optoelectronics Technology Co.,
25,108,960,003.00 0.00 0.00 0.00 12,884,952.00 25,121,844,955.00 0.00
Ltd.
BOE (Korea) Co., Ltd. 7,095,901.00 0.00 0.00 0.00 852,876.00 7,948,777.00 0.00
BOE Optoelectronics Holding Co., Ltd. 3,487,684,762.00 0.00 0.00 0.00 0.00 3,487,684,762.00 0.00
Beijing BOE Display Technology Co., Ltd. 17,647,311,114.00 0.00 0.00 0.00 31,610,868.00 17,678,921,982.00 0.00
Beijing BOE Energy Technology Co., Ltd. 857,581,382.00 0.00 0.00 0.00 891,570.00 858,472,952.00 0.00
Beijing BOE Multimedia Technology Co., Ltd. 400,000,000.00 0.00 0.00 0.00 0.00 400,000,000.00 0.00
Hefei BOE Optoelectronics Technology Co., Ltd. 9,063,122,784.00 0.00 0.00 0.00 7,196,886.00 9,070,319,670.00 0.00
201
BOE Technology Group Co., Ltd. Interim Report 2023
Beijing Matsushita Colour Innovation Co., Ltd. 5,151,625.00 0.00 0.00 0.00 668,274.00 5,819,899.00 0.00
Beijing BOE Vision Electronic Technology Co.,
4,427,357,720.00 0.00 0.00 0.00 487,590.00 4,427,845,310.00 0.00
Ltd.
Beijing BOE Life Technology Co., Ltd. 10,000,000.00 0.00 0.00 0.00 0.00 10,000,000.00 0.00
Beijing Zhongxiangying Technologies Co., Ltd. 102,267,168.00 0.00 0.00 0.00 100,596.00 102,367,764.00 0.00
Ordos Yuansheng Optoelectronics Co., Ltd. 11,814,307,688.00 0.00 0.00 0.00 1,283,460.00 11,815,591,148.00 0.00
Hefei Xinsheng Optoelectronics Technology Co.,
20,155,950,604.00 0.00 0.00 0.00 8,358,828.00 20,164,309,432.00 0.00
Ltd.
Chongqing BOE Optoelectronics Technology Co.,
19,599,657,767.00 0.00 0.00 0.00 3,556,950.00 19,603,214,717.00 0.00
Ltd.
Hefei BOE Display Technology Co., Ltd. 2,041,579,920.00 0.00 0.00 0.00 5,163,360.00 2,046,743,280.00 0.00
Fuzhou BOE Optoelectronics Technology Co., Ltd. 14,701,372,178.00 0.00 0.00 0.00 3,121,974.00 14,704,494,152.00 0.00
BOE Healthcare Investment & Management Co.,
7,824,073,441.00 620,000,000.00 0.00 0.00 863,382.00 8,444,936,823.00 0.00
Ltd.
BOE Wisdom IOT Technology Co., Ltd. 28,396,091.00 0.00 0.00 0.00 3,160,836.00 31,556,927.00 0.00
Hefei BOE Zhuoyin Technology Co., Ltd. 604,704,163.00 0.00 0.00 0.00 623,424.00 605,327,587.00 0.00
Beijing BOE Technology Development Co., Ltd. 2,512,354.00 0.00 0.00 0.00 199,230.00 2,711,584.00 0.00
Yunnan Chuangshijie Optoelectronics Technology
1,518,597,279.00 0.00 0.00 0.00 1,343,346.00 1,519,940,625.00 0.00
Co., Ltd.
Beijing BOE Sensor Technology Co., Ltd. 4,496,105,589.00 0.00 0.00 0.00 3,920,910.00 4,500,026,499.00 0.00
Mianyang BOE Optoelectronics Co., Ltd. 22,342,273,335.00 0.00 0.00 0.00 3,035,214.00 22,345,308,549.00 0.00
Wuhan BOE Optoelectronics Technology Co., Ltd. 12,524,485,421.00 0.00 0.00 0.00 2,872,524.00 12,527,357,945.00 0.00
Chongqing BOE Display Technology Co., Ltd. 9,312,579,810.00 700,275,250.00 0.00 0.00 2,095,944.00 10,014,951,004.00 0.00
Fuzhou BOE Display Technology Co., Ltd. 22,836,726.00 0.00 0.00 0.00 100,596.00 22,937,322.00 0.00
Hefei BOE Xingyu Technology Co., Ltd. 506,367,236.00 0.00 0.00 0.00 242,964.00 506,610,200.00 0.00
BOE Innovation Investment Co., Ltd. 3,198,191,319.00 380,000,000.00 0.00 0.00 255,780.00 3,578,447,099.00 0.00
BOE Education Technology Co., Ltd. 29,259,274.00 0.00 0.00 0.00 0.00 29,259,274.00 0.00
BOE Smart Technology Co., Ltd. 2,072,000,000.00 150,000,000.00 0.00 0.00 0.00 2,222,000,000.00 0.00
Nanjing BOE Display Technology Co., Ltd. 5,598,629,797.00 0.00 0.00 0.00 2,569,350.00 5,601,199,147.00 0.00
Chengdu CEC Panda Display Technology Co., Ltd. 7,557,371,638.00 0.00 0.00 0.00 2,265,870.00 7,559,637,508.00 0.00
Dongfang Chengqi (Beijing) Business Technology
13,786,416.00 0.00 0.00 0.00 962,280.00 14,748,696.00 0.00
Co., Ltd.
BOE Mled Technology Co., Ltd. 1,312,793,925.00 39,000,000.00 0.00 0.00 5,147,346.00 1,356,941,271.00 0.00
BOE Environmental Energy Technology Co., Ltd. 50,000,000.00 0.00 0.00 0.00 1,134,630.00 51,134,630.00 0.00
Chengdu BOE Display Technology Co., Ltd. 5,263,000.00 0.00 0.00 0.00 0.00 5,263,000.00 0.00
Beijing BOE Chuangyuan Technology Co., Ltd. 0.00 1,049,653,000.00 0.00 0.00 0.00 1,049,653,000.00 0.00
Mianyang BOE Electronics Technology Co., Ltd. 0.00 200,000,000.00 0.00 0.00 0.00 200,000,000.00 0.00
Beijing Shiyan Technology Co., Ltd. 0.00 167,200,000.00 0.00 0.00 0.00 167,200,000.00 0.00
Others* 167,575,517.00 0.00 0.00 0.00 22,532,647.00 190,108,164.00 0.00
Total 211,146,767,516.00 3,306,128,250.00 0.00 0.00 138,996,547.00 214,591,892,313.00 32,000,000.00
BOE Technology Group Co., Ltd. Interim Report 2023
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Profit and loss on Declared Ending
Beginning Adjustment of
investments distribution of Ending balance balance for
The investor balance (carrying Additional Reduced other Other equity Impairment
confirmed cash Others (carrying value) impairment
value) investments investments comprehensive movements provisions
according to dividends or provisions
income
equity law profits
I. Joint ventures
N/A
II. Associated enterprises
Beijing
Nissin
Electronics
3,049,888.00 0.00 0.00 -19,978.00 0.00 0.00 0.00 0.00 0.00 3,029,910.00 0.00
Precision
Component
Co., Ltd.
Beijing
Nittan
77,049,589.00 0.00 0.00 -2,113,779.00 0.00 0.00 -800,000.00 0.00 0.00 74,135,810.00 0.00
Electronic
Co., Ltd.
Beijing Infi-
Hailin
Venture 2,073,333.00 0.00 350,000.00 -295,183.00 0.00 0.00 -1,428,150.00 0.00 0.00 0.00 0.00
Investment
Co., Ltd.
Erdos BOE
Energy
136,459,610.00 0.00 0.00 -143,926.00 0.00 0.00 0.00 0.00 0.00 136,315,684.00 0.00
Investment
Co., Ltd.
TPV Display
Technology
30,237,982.00 0.00 0.00 -11,151.00 0.00 0.00 0.00 0.00 0.00 30,226,831.00 0.00
(China)
Limited
Beijing -
XindongNeng
2,034,870,324.00 0.00 0.00 582,469,724.00 6,317,985.00 0.00 173,692,640. 0.00 0.00 2,449,965,393.00 0.00
Investment
Fund (LLP) 00
Beijing
Xindongneng 13,963,180.00 0.00 0.00 289,640.00 0.00 0.00 0.00 0.00 0.00 14,252,820.00 0.00
Investment
BOE Technology Group Co., Ltd. Interim Report 2023
Management
Co., Ltd.
Beijing
Xloong
20,544,910.00 0.00 0.00 -117,901.00 0.00 0.00 0.00 0.00 0.00 20,427,009.00 0.00
Technologies
Co., Ltd.
Beijing
Innovation
Industry 223,216,553.00 0.00 0.00 10,497,016.00 0.00 0.00 0.00 0.00 0.00 233,713,569.00 0.00
Investment
Co., Ltd.
Beijing
Electric
Control
258,149,907.00 56,801,200.00 0.00 131,025.00 0.00 0.00 0.00 0.00 0.00 315,082,132.00 0.00
Industry
Investment
Co., Ltd.
BOE Yiyun
Science &
359,151,756.00 0.00 0.00 -1,360,158.00 0.00 0.00 0.00 0.00 0.00 357,791,598.00 0.00
Technology
Co., Ltd.
Guoke BOE
(Shanghai)
Equity
3,418,472.00 0.00 0.00 -1,222,087.00 0.00 0.00 0.00 0.00 0.00 2,196,385.00 0.00
Investment
Management
Co., Ltd.
-
Sub-total 3,162,185,504.00 56,801,200.00 350,000.00 588,103,242.00 6,317,985.00 0.00 175,920,790. 0.00 0.00 3,637,137,141.00 0.00
00
-
Total 3,162,185,504.00 56,801,200.00 350,000.00 588,103,242.00 6,317,985.00 0.00 175,920,790. 0.00 0.00 3,637,137,141.00 0.00
00
BOE Technology Group Co., Ltd. Interim Report 2023
(3) Other Notes
N/A
4. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Income Cost Income Cost
Principal activities 1,659,293,001.00 4,572,011.00 2,707,458,580.00 5,154,112.00
Other operating
7,058,286.00 86,600.00 5,353,456.00 127,110.00
activities
Total 1,666,351,287.00 4,658,611.00 2,712,812,036.00 5,281,222.00
Relevant information of revenue
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Types of products 0.00 0.00 0.00
Of which:
By operating places 0.00 0.00 0.00
Of which:
By types of market or customers 0.00 0.00 0.00
Of which:
Types of contracts 0.00 0.00 0.00
Of which:
By the time of transferring goods 0.00 0.00 0.00
Of which:
By contract term 0.00 0.00 0.00
Of which:
By marketing channel 0.00 0.00 0.00
Of which:
Total 0.00 0.00 0.00
Information related to performance obligations:
Generally, the Group assumes the performance obligations of merchandise sales and services for customers. For merchandise sales, if
terms of sales returns are offered, the limit of income recognition is that cumulated recognised income most likely will not have
significant returns. In terms of performance obligations to be performed within a certain period of time, income is recognised according
to the performance progress. Quality assurance provided by customers generally is guaranteed quality assurance. Such guaranteed
quality assurance will not be regarded as a single performance obligation.
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet was
RMB0.00 at the period-end.
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not fully performed yet was
RMB0.00 at the period-end, among which RMB0.00 was expected to be recognized in 0 year, RMB0.00 in 0 year and RMB0.00 in 0
year.
Other notes:
N/A
5. Investment Income
BOE Technology Group Co., Ltd. Interim Report 2023
Unit: RMB
Same period of last
Item Reporting Period
year
Income from long-term equity investments accounted for using cost method 699,897,436.00 1,099,923,077.00
Income from long-term equity investments accounted for using equity method 588,103,242.00 416,617,496.00
Investment income from disposal of long-term equity investments 1,581,850.00 0.00
Investment income arising from holding of trading financial assets 3,990,185.00 0.00
Investment income from disposal of financial assets held for trading 0.00 0.00
Dividend income received from holding of other equity instrument investment 728,606.00 206,210.00
Gain from remeasurement of remaining equity interests to fair value upon the
0.00 0.00
loss of control
Interest income of investment in debt obligations during holding period 0.00 0.00
Interest income of investment in other debt obligations during holding period 0.00 0.00
Investment income from disposal of investment in other debt obligations 0.00 0.00
Others 0.00 0.00
Total 1,294,301,319.00 1,516,746,783.00
6. Other
N/A
XVII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains/losses on the disposal of non-current assets (inclusive of impairment allowance
-8,863,349.00 N/A
write-offs)
Tax rebates, reductions and exemptions given with ultra vires approval or in lack of official
0.00 N/A
approval documents
Government grants recognised in the current period, except for those acquired in the
ordinary course of business or granted at certain quotas or amounts according to the 2,720,705,196.00 N/A
government’s unified standards
Capital occupation charges on non-financial enterprises that are charged to current profit or
0.00 N/A
loss
Gain equal to the amount by which investment costs for the Company to obtain
subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair 0.00 N/A
value of identifiable net assets of investees when making investments
Gain or loss on non-monetary asset swaps 0.00 N/A
Gain or loss on assets entrusted to other entities for investment or management 0.00 N/A
Allowance for asset impairments due to acts of God such as natural disasters 0.00 N/A
Gain or loss on debt restructuring 0.00 N/A
Restructuring costs in staff arrangement, integration, etc. 0.00 N/A
Gain or loss on the over-fair value amount as a result of transactions with distinctly unfair
0.00 N/A
prices
Current profit or loss on subsidiaries obtained in business combinations involving
0.00 N/A
enterprises under common control from the period-beginning to combination dates, net
Gain or loss on contingencies that do not arise in the Company’s ordinary course of
0.00 N/A
business
Gain or loss on fair-value changes in held-for-trading financial assets and liabilities &
income from disposal of held-for-trading financial assets and liabilities and available-for-
211,275,427.00 N/A
sale financial assets (exclusive of the effective portion of hedges that arise in the
Company’s ordinary course of business)
Reversed portions of impairment allowances for accounts receivable which are tested
14,453,653.00 N/A
individually for impairment
Gain or loss on loan entrustments 0.00 N/A
BOE Technology Group Co., Ltd. Interim Report 2023
Gain or loss on fair-value changes in investment property of which subsequent
0.00 N/A
measurement is carried out using the fair value method
Effects of all adjustments required by taxation, accounting and other applicable laws and
0.00 N/A
regulations on current profit or loss
Income from charges on entrusted management 0.00 N/A
Other non-operating income and expenses besides items above 185,555,680.00 N/A
Other items qualified as extraordinary gain and loss 0.00 N/A
Less: Income tax effects 114,191,959.00 N/A
Non-controlling interests effects 688,684,748.00 N/A
Total 2,320,249,900.00 --
Others that meets the definition of non-recurring gain/loss:
□ Applicable Not applicable
No such cases in the Reporting Period.
Explain the reasons if the Company classifies any extraordinary gain/loss item mentioned in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses as a recurrent gain/loss
item
□ Applicable Not applicable
2. Return on Equity and Earnings Per Share
EPS (Yuan/share)
Weighted average return on
Profit as of Reporting Period Basic earnings per share Diluted earnings per
net assets
(RMB/share) share (RMB/share)
Net profit attributable to the Company’s
0.50% 0.02 0.02
ordinary equity shareholders
Net profit excluding extraordinary gain
and loss attributable to the Company’s -1.31% -0.05 -0.05
ordinary equity shareholders
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International and
Chinese Accounting Standards
□ Applicable Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas and
Chinese Accounting Standards
□ Applicable Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas Accounting
Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the Foreign Auditing
Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
N/A
4. Other
N/A
