BOE Technology Group Co. Ltd.31 December 2025
ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR 1 JANUARY 2025 TO 31 DECEMBER 2025
IF THERE IS ANY CONFLICT BETWEEN THE CHINESE VERSION AND ITS ENGLISH
TRANSLATION THE CHINESE VERSION WILL PREVAILBOE Technology Group Co. Ltd.CONTENTS
Pages
I. AUDITOR’S REPORT 1 - 6
II. AUDITED FINANCIAL STATEMENTS
Consolidated balance sheet 7 - 9
Consolidated income statement 10 - 11
Consolidated statement of changes in equity 12 - 15
Consolidated statement of cash flows 16 - 17
Company balance sheet 18 - 19
Company income statement 20
Company statement of changes in equity 21 - 24
Company statement of cash flows 25 - 26
Notes to financial statements 27 - 139
SUPPLEMENTARY INFORMATION
Non-recurring Gains and Losses: Items and Amounts 1
Return on net assets and earnings per share 1AUDITOR’S REPORT
Ernst & Young Hua Ming (2026) Shen Zi No. 70008969_A01
BOE Technology Group Co. Ltd.To the shareholders of BOE Technology Group Co. Ltd. :
(I) Opinion
We have audited the financial statements of BOE Technology Group Co. Ltd. (the “Company”)
which comprise the consolidated and company balance sheets as at 31 December 2025 and the
consolidated and company income statements the consolidated and company statements of
changes in equity and the consolidated and company statements of cash flows for the year then
ended and notes to the financial statements.In our opinion the accompanying financial statements present fairly in all material respects the
consolidated and the Company’s financial position as at 31 December 2025 and the consolidated
and the Company’s financial performance and cash flows for the year then ended in accordance
with Accounting Standards for Business Enterprises (“ASBEs”).(II) Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the
audit of the financial statements section of our report. We are independent of the Company in
accordance with China Independence Standard No. 1 - Independence Requirements for Financial
Statement Audit and Review Engagements and China Code of Ethics for Certified Public
Accountants (the “Code”). We have also fulfilled our other ethical responsibilities in accordance
with the Code. We have complied with the independence requirements relevant to the audit of
public interest entities. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.(III) Key Audit Matters
Key audit matters are those matters that in our professional judgement were of most significance
in our audit of the financial statements for the current period. These matters were addressed in the
context of our audit of the financial statements as a whole and in forming our opinion thereon and
we do not provide a separate opinion on these matters. For each matter below our description of
how our audit addressed the matter is provided in that context.We have fulfilled the responsibilities described in the financial statements section of our report
including in relation to these matters. Accordingly our audit included the performance of
procedures designed to respond to our assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures including the procedures performed to
address the matters below provide the basis for our audit opinion on the accompanying financial
statements.
1AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2026) Shen Zi No. 70008969_A01
BOE Technology Group Co. Ltd.(III) Key Audit Matters (continued)
Key audit matter How our audit addressed the key audit matter
Revenue recognition
The revenue of BOE Technology Group Co. The audit procedures we performed primarily
Ltd. (“BOE”) and its subsidiaries (“BOE included:Group”) is mainly derived from the sale of
* Evaluate the design and operation effectiveness
products relating to display device across the
of key internal controls related to revenue
domestic and overseas markets.recognition for business segments such as
The sales contracts / orders signed between display devices;
BOE Group and its customers (mainly
* Check key sales contracts/orders on a sampling
electronic equipment manufacturers) contain
basis to identify relevant trading terms and
various trading terms. BOE Group judges the
evaluate whether the accounting policies for
transfer timing of control according to the
revenue recognition of BOE Group meet the
trading terms and recognises revenue
requirements of ASBEs;
accordingly. Depending on the trading terms
the revenue is usually recognised when the * On a sampling basis and according to different
goods are received or when they are received trading terms reconcile the revenue recorded in
by the carrier. the current year to relevant supporting files such
as relevant orders shipping orders delivery
We identified the recognition of BOE Group’s
receipts etc. to evaluate whether revenue is
revenue as a key audit matter because
recognised in accordance with the accounting
revenue as one of BOE Group’s key
policies of BOE Group;
performance indicators and there is an
inherent risk that revenue may not be * On a sampling basis and according to different
recognised in a correct period. trading terms cross check the revenue
recognised before and after the balance sheet
Please refer to Note III 24 for the accounting
date against relevant supporting files such as
policies and Note V 47 for further
relevant orders shipping orders delivery
disclosures.receipts etc. to evaluate whether revenue is
recognised in the correct period;
* Select samples and perform confirmation
procedures on the accounts receivable balance
as of the balance sheet date;
* Select samples of revenue adjustments
(including sales discounts and sales returns
etc.) occurring after the balance sheet date and
check them against relevant supporting
documentation to evaluate whether revenue
was recognised in the correct period;
* Review the appropriateness of revenue
disclosures in the financial statements.
2AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2026) Shen Zi No. 70008969_A01
BOE Technology Group Co. Ltd.(III) Key Audit Matters (continued)
Key audit matter How our audit addressed the key audit matter
Impairment of fixed assets and intangible assets
As at 31 December 2025 the carrying amount of The audit procedures we performed primarily
fixed assets and intangible assets amounted to included:
RMB 199096817337 the judgement on
* Evaluate management’s identification of
impairment indications and impairment test are
asset groups assessment of impairment
material to BOE Group’s financial statements.indicators and assess the design and
Management of BOE Group identifies asset groups operating effectiveness of key internal
based on the independence of their primary cash controls over impairment testing;
inflows from those of other assets or asset groups.* Evaluate whether management’s
Management assesses whether indicators of
identification of asset groups and
impairment exist as of the balance sheet date and
assessment of impairment indicators
performs impairment testing where necessary
comply with the requirements of the
using internal and external information such as
ASBEs;
market supply and demand dynamics technological
advancements operating budgets and actual * For asset groups with significant indicators
economic performance. of impairment:
For asset groups with indicators of impairment as of Review the key assumptions used by
the balance sheet date management estimates management in calculating the recoverable
their recoverable amount and compares it with their amount including future selling prices
carrying amount to determine whether any sales volumes and discount rates and
impairment has occurred. assess the reasonableness of these
assumptions in light of historical data;
The recoverable amount is based on the present
value of expected future cash flows which requires Evaluate the competence professional
significant judgment particularly in estimating future qualifications and objectivity of experts
selling prices sales volumes and the discount rate. engaged by management;
Given the materiality of the carrying amounts of Utilize the work of internal valuation
property plant and equipment and intangible specialists to assess the reasonableness
assets and the significant judgment involved in of key valuation parameters such as the
assessing indicators of impairment and performing cash flow model and discount rate used
impairment tests on asset groups with such by management in estimating the present
indicators we have identified the impairment of value of future cash flows;
property plant and equipment and intangible
Perform retrospective reviews of
assets as a key audit matter.management’s historical forecasts to
Please refer to Note III 20 for the accounting evaluate their accuracy and bias;
policies and Notes V 15 and V 18 for further
Review the sensitivity analyses performed
disclosures.by management on the key assumptions
used in the recoverable amount
calculation.* Review the appropriateness of
management’s disclosures regarding the
impairment of related assets.
3AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2026) Shen Zi No. 70008969_A01
BOE Technology Group Co. Ltd.(IV) Other information included in the Annual Report
BOE Group‘s management are responsible for the other information. The other information
comprises the information included in the Annual Report other than the financial statements and
our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.In connection with our audit of the consolidated financial statements our responsibility is to read
the other information and in doing so consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this
other information we are required to report that fact. We have nothing to report in this regard.(V) Responsibilities of management and those charged with governance for the financial
statements
BOE Group‘s management are responsible for the preparation of the financial statements that give
a true and fair view in accordance with ASBEs and for such internal control as BOE Group‘s
management determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement whether due to fraud or error.In preparing the consolidated financial statements BOE Group‘s management are responsible for
assessing the Group’s ability to continue as a going concern disclosing as applicable matters
related to going concern and using the going concern basis of accounting unless BOE Group‘s
management either intend to liquidate the Group or to cease operations or have no realistic
alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
4AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2026) Shen Zi No. 70008969_A01
BOE Technology Group Co. Ltd.(VI) Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement whether due to fraud or error and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with CSAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are generally
considered material if individually or in the aggregate they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with CSAs we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether
due to fraud or error design and perform audit procedures responsive to those risks and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error as fraud may involve collusion forgery intentional omissions
misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and based on the audit evidence obtained whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists we are
required to draw attention in our auditor’s report to the related disclosures in the financial
statements or if such disclosures are inadequate to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However
future events or conditions may cause the Company to cease to continue as a going
concern.
5AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2026) Shen Zi No. 70008969_A01
BOE Technology Group Co. Ltd.(VI) Auditor’s responsibilities for the audit of the financial statements (continued)
(5) Evaluate the overall presentation structure and content of the financial statements including
the disclosures and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Company to express an opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit. We
remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the
planned scope and timing of the audit and significant audit findings including any significant
deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence and
where applicable actions taken to eliminate threats or safeguards applied.From the matters communicated with those charged with governance we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when in extremely rare circumstances
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.Ernst & Young Hua Ming LLP Chinese Certified Public Accountant: Xie Feng
(Engagement Partner)
Chinese Certified Public Accountant: Wang Jing
Beijing the People’s Republic of China 30 March 2026
6BOE Technology Group Co. Ltd.
CONSOLIDATED BALANCE SHEET
31 December 2025 Expressed in Renminbi Yuan
ASSETS Note V 31 December 2025 31 December 2024
Current assets
Cash at bank and on hand 1 72222940175 74252625215
Financial assets held for trading 2 1670548730 3116435963
Notes receivable 3 514647075 338059783
Accounts receivable 4 32293002623 36338199204
Receivables financing 5 585672349 472537400
Prepayments 6 810701464 634482224
Other receivables 7 822793900 812871521
Inventories 8 27748526136 23313464392
Contract assets 9 393081902 150871486
Current portion of non-current assets 4081560 3900201
Other current assets 10 4809821866 3954007985
Total current assets 141875817780 143387455374
Non-current assets
Long-term receivables - 492067
Long-term equity investments 11 18636209565 13533271302
Other equity investments 12 536217192 441371815
Other non-current financial assets 13 2874055003 2735680042
Investment properties 14 2146616904 1751189740
Fixed assets 15 186299299142 204904419511
Construction in progress 16 52943124120 30159016097
Right-of-use assets 17 807290109 754408280
Intangible assets 18 12797518195 11263463194
Development expenditures VI 123706247 109323354
Goodwill 19 653575022 653575022
Long-term prepaid expenses 20 599601573 598444923
Deferred tax assets 21 854033038 694888275
Other non-current assets 22 15231258913 18991222545
Total non-current assets 294502505023 286590766167
Total assets 436378322803 429978221541
The accompanying notes to the financial statements form an integral part of these financial statements.
7BOE Technology Group Co. Ltd.
CONSOLIDATED BALANCE SHEET (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
LIABILITIES AND EQUITY Note V 31 December 2025 31 December 2024
Current liabilities
Short-term borrowings 24 3655021437 1563317166
Notes payable 25 1380128604 1399557969
Accounts payable 26 37242292283 36713498406
Receipts in advance 77763054 118971193
Contract liabilities 27 2223451538 2083836158
Employee benefits payable 28 3584824383 4076008388
Taxes and surcharges payable 29 1319215532 1576606596
Other payables 30 20889438382 20827962570
Current portion of non-current liabilities 31 26670312919 43506539611
Other current liabilities 32 4349146900 3394971140
Total current liabilities 101391595032 115261269197
Non-current liabilities
Long-term borrowings 33 101576573473 100932391740
Bonds payable 34 10968768052 -
Lease liabilities 35 687762666 631418986
Long-term payables 36 2348036273 121077871
Provisions 37 - 1652566
Deferred income 38 6798033210 4544617931
Deferred tax liabilities 21 1134894697 1290798747
Other non-current liabilities 39 3996902667 2648822759
Total non-current liabilities 127510971038 110170780600
Total liabilities 228902566070 225432049797
The accompanying notes to the financial statements form an integral part of these financial statements.
8BOE Technology Group Co. Ltd.
CONSOLIDATED BALANCE SHEET (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
LIABILITIES AND EQUITY Note V 31 December 2025 31 December 2024
Equity
Share capital 40 37413880464 37645016203
Other equity instruments 41 - 2043402946
Capital reserves 42 51859961722 52207573706
Less: Treasury shares 43 1499835264 1216490683
Accumulated other comprehensive income 44 (766570036) (1171823864)
Specialised reserves 207330489 139227664
Surplus reserves 45 4035830324 3879754479
Retained earnings 46 43228031107 39410894857
Total equity attributable to owners of the parent 134478628806 132937555308
?
Non-controlling interests 72997127927 71608616436
?
Total equity 207475756733 204546171744
Total liabilities and equity 436378322803 429978221541
Chen Yanshun Feng Qiang Yang Xiaoping Xu Yaxiao
Chairman of the Board Chairman of the Chief Financial Officer The head of the
Executive accounting
Committee department
The accompanying notes to the financial statements form an integral part of these financial statements.
9BOE Technology Group Co. Ltd.
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2025 Expressed in Renminbi Yuan
Note V 2025 2024
Revenue 47 204590222888 198380605661
Less: Cost of sales 47 172602044011 168221949573
Taxes and surcharges 48 1425552345 1296146896
Selling expenses 49 2172622919 1995294652
Administrative expenses 50 5896341836 6218672130
Research and development expenses 51 13836670878 13123309231
Finance expenses 52 1836646802 1224387370
Including: Interest expenses 3292142233 4033259880
Interest income 1828272699 2285948395
Add: Other income 53 2915429247 2288477566
Investment income 54 653966677 (540900653)
Including: Income/(loss) from
investments in associates
and joint ventures 81175287 (752455175)
Fair value gains 55 431722966 522447744
Credit impairment losses 56 (63490237) (112125114)
Impairment losses of assets 57 (4005541287) (3624262580)
Gains on disposal of non-current assets 58 30428604 96175264
Operating profit 6782860067 4930658036
Add: Non-operating income 59 314980839 216286272
Less: Non-operating expenses 60 63639776 61290675
Profit before income tax 7034201130 5085653633
Less: Income tax expenses 61 2006827561 940379751
Net Profit 5027373569 4145273882
Classified by going concern
Net profit from continuing operations 5027373569 4145273882
The accompanying notes to the financial statements form an integral part of these financial statements.
10BOE Technology Group Co. Ltd.
CONSOLIDATED INCOME STATMENT (CONTINUED)
For the year ended 31 December 2025 Expressed in Renminbi Yuan
Note V 2025 2024
Classified by ownership
Profit attributable to owners of the parent 5856966754 5323248974
Profit attributable to non-controlling interests (829593185) (1177975092)
Other comprehensive income net of tax 44 416083549 (5776420)
Other comprehensive income/(loss) net of tax
attributable to owners of the parent 408111001 (19707777)
Other comprehensive income that will not be
reclassified to profit or loss
Other comprehensive income using the equity
method that will not be reclassified to profit or
loss 38861322 45589853
Change in the fair value of other equity
investments 95049059 (35206474)
Other comprehensive income that may be
reclassified to profit or loss
Other comprehensive income using the equity
method that may be reclassified to profit or 47364873 -
loss
Exchange differences on translation of foreign
currency financial statements 226835747 (30091156)
Other comprehensive income net of tax
44
attributable to non-controlling interests 7972548 13931357
Total comprehensive income 5443457118 4139497462
Including:
Total comprehensive income attributable to
owners of the parent 6265077755 5303541197
Total comprehensive income attributable to
non-controlling interests (821620637) (1164043735)
Earnings per share 62
Basic earnings per share 0.16 0.14
Diluted earnings per share 0.16 0.14?
Chen Yanshun Feng Qiang Yang Xiaoping Xu Yaxiao
Chairman of the Board Chairman of the Chief Financial Officer The head of the
Executive accounting
Committee department
The accompanying notes to the financial statements form an integral part of these financial statements.
11BOE Technology Group Co. Ltd.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025 Expressed in Renminbi Yuan
2025
Attributable to owners of the parent Non-controlling Total equity
interests
Share capital Other equity Capital reserves Less: Treasury Accumulated other Specialised Surplus Retained Subtotal
instruments shares comprehensive reserves reserves earnings
income
I. Balance at beginning of year 37645016203 2043402946 52207573706 1216490683 (1171823864) 139227664 3879754479 39410894857 132937555308 71608616436 204546171744
II. Changes for the year
1. Total comprehensive income - - - - 408111001 - - 5856966754 6265077755 (821620637) 5443457118
2. Capital contributed and reduced by
shareholders
(1)Capital contributions by non-
controlling interests - - - - - - - - - 7729973284 7729973284
(2)Capital reduction by non-
controlling interests - - - - - - - - - (5390488477) (5390488477)
(3)Equity transactions with non-
controlling interests - - 117551353 - - - - - 117551353 (117551353) -
(4)Repurchase of treasury shares - - - 1499835264 - - - - (1499835264) - (1499835264)
(5)Cancellation of treasury shares (231135739) - (778740068) (1009875807) - - - - - - -
(6)Amount of share-based payment
recognized in shareholders'
equity - - 1587451 (206614876) - - - - 208202327 (115160) 208087167
(7)Redemption of capital for holders
of other equity instruments - (1989320755) (10679245) - - - - - (2000000000) - (2000000000)
The accompanying notes to the financial statements form an integral part of these financial statements.
12BOE Technology Group Co. Ltd.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the year ended 31 December 2025 Expressed in Renminbi Yuan
2025 (continued)
Attributable to owners of the parent Non-controlling Total equity
interests
Share capital Other equity Capital reserves Less: Treasury Accumulated other Specialised Surplus Retained earnings Subtotal
instruments shares comprehensive reserves reserves
income
II. Changes for the year (continued)
3. Profit distribution
(1) Appropriation to surplus reserves - - - - - - 156075845 (156075845) - - -
(2) Accrued interest on holders of other
equity instruments - 15917809 - - - - - (15917809) - - -
(3) Payment for interest on holders of other
equity instruments - (70000000 ) - - - - - - (70000000) - (70000000)
(4) Distribution to shareholders - - - - - - - (1870694023) (1870694023) (88730910) (1959424933)
4. Transfer within equity
(1) Transfer of other comprehensive income
to retained earnings - - - - (2857173) - - 2857173 - - -
5. Specialised reserves
(1) Appropriation for the year - - - - - 226734068 - - 226734068 57577124 284311192
(2) Utilisation for the year - - - - - (158631243) - - (158631243) (41076799) (199708042)
6 Other
(1) Other movements in equity of associates - - 291907438 - - - - - 291907438 - 291907438
(2) other - - 30761087 - - - - - 30761087 60544419 91305506
III Balance at end of year 37413880464 - 51859961722 1499835264 (766570036) 207330489 4035830324 43228031107 134478628806 72997127927 207475756733
Chen Yanshun Feng Qiang Yang Xiaoping Xu Yaxiao
Chairman of the Board Chairman of the Executive Committee Chief Financial Officer The head of the accounting department
The accompanying notes to the financial statements form an integral part of these financial statements.
13BOE Technology Group Co. Ltd.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the year ended 31 December 2025 Expressed in Renminbi Yuan
2024
Attributable to owners of the parent Non-controlling Total equity
interests
Share capital Other equity Capital reserves Less: Treasury Accumulated other Specialised Surplus Retained Subtotal
instruments shares comprehensive reserves reserves earnings
income
I. Balance at beginning of year 37652529195 2043402946 52113580746 462036240 (1136997224) 66472402 3571778635 35579576607 129428307067 68370379252 197798686319
II. Changes for the year
1. Total comprehensive income - - - - (19707777) - - 5323248974 5303541197 (1164043735) 4139497462
2. Capital contributed and reduced by
shareholders
(1)Capital contributions by non-
controlling interests - - - - - - - - - 4652010645 4652010645
(2)Repurchase of treasury shares - - - 999872378 - - - - (999872378) - (999872378)
(3)Cancellation of treasury shares (7512992) - (9986070) (17499062) - - - - - -? -
(4)Amount of share-based payment
recognized in shareholders'
equity - - 127147039 (227918873) - - - - 355065912 9581064 364646976
(5)Other - - - - - - - - - (10000000) (10000000)
The accompanying notes to the financial statements form an integral part of these financial statements.
14BOE Technology Group Co. Ltd.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the year ended 31 December 2025 Expressed in Renminbi Yuan
2024 (continued)
Attributable to owners of the parent Non-controlling Total equity
interests
Share capital Other equity Capital reserves Less: Treasury Accumulated other Specialised Surplus Retained Subtotal
instruments shares comprehensive reserves reserves earnings
income
II. Changes for the year (continued)
3. Profit distribution
(1)Appropriation to surplus reserves - - - - - - 307923188 (307923188) - - -
(2)Accrued interest on holders of
other equity instruments - 70000000 - - - - - (70000000) - - -
(3)Payment for interest on holders of
other equity instruments - (70000000 ) - - - - - - (70000000) - (70000000)
(4)Distribution to shareholders - - - - - - - (1129073743) (1129073743) (93546479) (1222620222)
4. Transfer within equity
(1)Transfer of other comprehensive
income to retained earnings - - - - (15118863) - 52656 15066207 - - -
5. Specialised reserves
(1)Appropriation for the year - - - - - 209278103 - - 209278103 51873021 261151124
(2)Utilisation for the year - - - - - (136522841) - - (136522841) (38689907) (175212748)
6 Other
(1)Other movements in equity of
associates - - 14652743 - - - - - 14652743 - 14652743
(2)Other - - (37820752) - - - - - (37820752) (168947425) (206768177)
III Balance at end of year 37645016203 2043402946 52207573706 1216490683 (1171823864) 139227664 3879754479 39410894857 132937555308 71608616436 204546171744
Chen Yanshun Feng Qiang Yang Xiaoping Xu Yaxiao
Chairman of the Board Chairman of the Executive Committee Chief Financial Officer The head of the accounting department
The accompanying notes to the financial statements form an integral part of these financial statements.
15BOE Technology Group Co. Ltd.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2025 Expressed in Renminbi Yuan
Note V 2025 2024
1. CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the
rendering of services 216446744340 207177636682
Receipts of taxes and surcharges refunds 10504844336 9436155018
Other cash receipts relating to operating activities 63 7893922358 2601966374
?
Total cash inflows from operating activities 234845511034 219215758074
?
Cash payments for goods and services (153264909445) (139974564163)
Cash payments to and on behalf of employees (21414709980) (19215661123)
Payments of taxes and surcharges (6064623177) (4938746118)
Other cash payments relating to operating
63
activities (5276712758) (7349209291)
?
Total cash outflows from operating activities (186020955360) (171478180695)
Net cash flows from operating activities 64 48824555674 47737577379
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments 37852996343 59316324819
Cash receipts from returns on investments 1277028744 671568341
Net cash receipts from disposal of fixed assets
intangible assets and other long-term assets 28669615 156338437
Other cash receipts relating to investing activities 63 325253271 2485332205
?
Total cash inflows from investing activities 39483947973 62629563802
Cash payments to acquire fixed assets intangible
assets and other long-term assets (40094380995) (34037798428)
Cash payments for investments (40128721276) (61241398520)
Other cash payments relating to investing
63
activities (189207236) -
?
Total cash outflows from investing activities (80412309507) (95279196948)
Net cash flows from investing activities (40928361534) (32649633146)
The accompanying notes to the financial statements form an integral part of these financial statements.
16BOE Technology Group Co. Ltd.
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
For the year ended 31 December 2025 Expressed in Renminbi Yuan
Note V 2025 2024
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments 7729973284 4652010645
Including: Cash receipts from capital
contributions from non-controlling
interests of subsidiaries 7729973284 4652010645
Cash receipts from borrowings 44668867158 47194037263
Cash receipts from issuance of corporate bonds 11000000000 -
Other cash receipts relating to financing activities 63 293613208 -
Total cash inflows from financing activities 63692453650 51846047908
Cash repayments for debts (59278101812) (49117270919)
Cash payments for distribution of dividends or
profit and interest expenses (6002224482) (6390837882)
Including: Dividends or profit paid to non-
controlling shareholders of
subsidiaries (90686310) (91448476)
Cash payments for redemption of other equity
instruments (2000000000) -
Other cash payments relating to financing
63
activities (7637458489) (1855318097)
Total cash outflows from financing activities (74917784783) (57363426898)
Net cash flows from financing activities (11225331133) (5517378990)
4. Effect of exchange rate changes on cash and cash
and cash equivalents (464819741) 341705520
5. Net (decrease )/increase in cash and cash
equivalents (3793956734) 9912270763
Add: Cash and cash equivalents at beginning of
64
year 62005252511 52092981748
6. Cash and cash equivalents at end of year 64 58211295777 62005252511
Chen Yanshun Feng Qiang Yang Xiaoping Xu Yaxiao
Chairman of the Board Chairman of the Chief Financial Officer The head of the
Executive accounting
Committee department
The accompanying notes to the financial statements form an integral part of these financial statements.
17BOE Technology Group Co. Ltd.
COMPANY BALANCE SHEET
31 December 2025 Expressed in Renminbi Yuan
ASSETS Note XVI 31 December 2025 31 December 2024
Current assets
Cash at bank and on hand 4806197426 4622109813
Accounts receivable 1 2198992377 3557166876
Prepayments 6603029 6440618
Other receivables 2 22251324303 32075715118
Inventories 26496574 31198429
Other current assets 194206146 143433811
?
Total current assets 29483819855 40436064665
Non-current assets
Long-term equity investments 3 223119069186 203191541965
Other equity investments 76042654 60783163
Other non-current financial assets 1712581473 1562089931
Investment properties 725255291 235247956
Fixed assets 2259541327 1542132717
Construction in progress 256643430 1262758363
Right-of-use assets 10692642 47104764
Intangible assets 3081721569 1001523422
Long-term prepaid expenses 244430822 290214066
Deferred tax assets 101328877 -
Other non-current assets 614663026 320460049
?
Total non-current assets 232201970297 209513856396
?
Total assets 261685790152 249949921061
The accompanying notes to the financial statements form an integral part of these financial statements.
18BOE Technology Group Co. Ltd.
COMPANY BALANCE SHEET (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
LIABILITIES AND EQUITY Note XVI 31 December 2025 31 December 2024
Current liabilities
Accounts payable 570702685 503922556
Receipts in advance 1129345 13140209
Contract liabilities 2528158 719297
Employee benefits payable 303061711 453127454
Taxes and surcharges payable 42036763 310771542
Other payables 4 3547491173 3471340673
Current portion of non-current liabilities 8338312344 11029129176
Other current liabilities 87910687 609513850
?
Total current liabilities 12893172866 16391664757
Non-current liabilities
Long-term borrowings 5 39665261000 41257600000
Bonds payable 10968768052 -
Lease liabilities 2607211 555400
Long-term payables 2247200008 -
Deferred income 146860897 47137540
Deferred tax liabilities - 18162044
Other non-current liabilities 96690793681 89520793681
?
Total non-current liabilities 149721490849 130844248665
Total liabilities 162614663715 147235913422
Owners’ equity
Share capital 37413880464 37645016203
Other equity instruments - 2043402946
Capital reserves 51061480294 51871366552
Less: Treasury shares 1499835264 1216490683
Accumulated other comprehensive income (217143204) (267884908)
Surplus reserves 4035830324 3879754479
Retained earnings 8276913823 8758843050
?
Total equity 99071126437 102714007639
Total liabilities and equity 261685790152 249949921061
Chen Yanshun Feng Qiang Yang Xiaoping Xu Yaxiao
Chairman of the Board Chairman of the Chief Financial Officer The head of the
Executive accounting
Committee department
The accompanying notes to the financial statements form an integral part of these financial statements.
19BOE Technology Group Co. Ltd.
COMPANY INCOME STATEMENT
For the year ended 31 December 2025 Expressed in Renminbi Yuan
Note XVI 2025 2024
Revenue 6 4960667359 5558110352
Less: Cost of sales 6 37840604 11459521
Taxes and surcharges 46112168 41818720
Administrative expenses 1604634753 1944464914
Research and development expenses 2769656332 2452578625
Finance expenses 558950225 494390647
Including: Interest expenses 620972124 528904973
Interest income 27032569 39349343
Add: Other income 64791958 955230189
Investment income 7 1338404703 1708144852
Including: income/(loss) from
investments in associates
and joint ventures 88124345 (476270739)
Fair value gains 6938295 3403675
Credit impairment losses (9383) (80000336)
Gains on disposal of non-current assets 4846 818
Operating profit 1353603696 3200177123
Add: Non-operating income 246812339 6601784
Less: Non-operating expenses 11782120 22272166
Profit before income tax 1588633915 3184506741
Less: Income tax expenses 27875465 105274860
Profit 1560758450 3079231881
Including: Profit from continuing operations 1560758450 3079231881
Other comprehensive income net of tax 50741704 29074708
Other comprehensive income that will not be
reclassified to profit or loss
Other comprehensive income using the equity
method that will not be reclassified to profit or
loss 37771138 30126376
Change in the fair value of other equity
investments 12970566 (1051668)
Total comprehensive income 1611500154 3108306589
Chen Yanshun Feng Qiang Yang Xiaoping Xu Yaxiao
Chairman of the Board Chairman of the Chief Financial Officer The head of the
Executive accounting
Committee department
The accompanying notes to the financial statements form an integral part of these financial statements.
20BOE Technology Group Co. Ltd.
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025 Expressed in Renminbi Yuan
2025
Share capital Other equity Capital reserves Less: Treasury Accumulated other Surplus Retained Total equity
instruments shares comprehensive reserves earnings
income
I. Balance at beginning of year 37645016203 2043402946 51871366552 1216490683 (267884908) 3879754479 8758843050 102714007639
II. Changes for the year
1. Total comprehensive income - - - - 50741704 - 1560758450 1611500154
2. Capital contributed and reduced
by shareholders
(1) Repurchase of treasury shares - - - 1499835264 - - - (1499835264)
(2) Cancellation of treasury shares (231135739) - (778740068) (1009875807) - - - -
(3) Amount of share-based
payment recognized in
shareholders' equity - - 1472291 (206614876) - - - 208087167
(4) Redemption of capital for
holders of other equity
instruments - (1989320755) (10679245) - - - - (2000000000)
The accompanying notes to the financial statements form an integral part of these financial statements.
21BOE Technology Group Co. Ltd.
COMPANY STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the year ended 31 December 2025 Expressed in Renminbi Yuan
2025 (continued)
Share capital Other equity Capital reserves Less: Treasury Accumulated other Surplus Retained Total equity
instruments shares comprehensive reserves earnings
income
II. Changes for the year
(continued)
3. Profit distribution
(1) Appropriation to surplus
reserves - - - - - 156075845 (156075845) -
(2) Accrued interest on holders of
other equity instruments - 15917809 - - - - (15917809) -
(3) Payment for interest on holders
of other equity instruments - (70000000) - - - - - (70000000)
(4) Distribution to shareholders - - - - - - (1870694023) (1870694023)
4. Others
(1)Other movements in equity of
associates - - (21939236) - - - - (21939236)
III Balance at end of year 37413880464 - 51061480294 1499835264 (217143204) 4035830324 8276913823 99071126437
Chen Yanshun Feng Qiang Yang Xiaoping Xu Yaxiao
Chairman of the Board Chairman of the Executive Committee Chief Financial Officer The head of the accounting department
The accompanying notes to the financial statements form an integral part of these financial statements
22BOE Technology Group Co. Ltd.
COMPANY STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the year ended 31 December 2025 Expressed in Renminbi Yuan
2024
Share capital Other equity Capital reserves Less: Treasury Accumulated other Surplus Retained Total equity
instruments shares comprehensive reserves earnings
income
I. Balance at beginning of year 37652529195 2043402946 51741820724 462036240 (296433056) 3571778635 7186134196 101437196400
II. Changes for the year
1. Total comprehensive income - - - - 29074708 - 3079231881 3108306589
2. Capital contributed and reduced
by shareholders
(1) Repurchase of treasury shares - - - 999872378 - - - (999872378)
(2) Cancellation of treasury shares (7512992) - (9986070) (17499062) - - - -
(3) Amount of share-based
payment recognized in
shareholders' equity - - 136728103 (227918873) - - - 364646976
The accompanying notes to the financial statements form an integral part of these financial statements.
23BOE Technology Group Co. Ltd.
COMPANY STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the year ended 31 December 2025 Expressed in Renminbi Yuan
2024 (continued)
Share capital Other equity Capital reserves Less: Treasury Accumulated other Surplus Retained Total equity
instruments shares comprehensive reserves earnings
income
II. Changes for the year
(continued)
3. Profit distribution
(1) Appropriation to surplus
reserves - - - - - 307923188 (307923188) -
(2) Accrued interest on holders of
other equity instruments - 70000000 - - - - (70000000) -
(3) Payment for interest on holders
of other equity instruments - (70000000) - - - - - (70000000)
(4) Distribution to shareholders - - - - - - (1129073743) (1129073743)
4. Transfer within equity
(1) Transfer of other
comprehensive income to
retained earnings - - - - (526560) 52656 473904 -
5 Other
(1)Other movements in equity of
associates - - 2698287 - - - - 2698287
(2)Other - - 105508 - - - - 105508
III. Balance at end of year 37645016203 2043402946 51871366552 1216490683 (267884908) 3879754479 8758843050 102714007639
Chen Yanshun Feng Qiang Yang Xiaoping Xu Yaxiao
Chairman of the Board Chairman of the Executive Committee Chief Financial Officer The head of the accounting department
The accompanying notes to the financial statements form an integral part of these financial statements.
24BOE Technology Group Co. Ltd.
COMPANY STATEMENT OF CASH FLOWS
For the year ended 31 December 2025 Expressed in Renminbi Yuan
20252024
1. CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from the sale of goods and the rendering
of services 6426323226 8576350715
Receipts of tax and surcharges refunds 2007 12091
Other cash receipts relating to operating activities 493095961 458561728
?
Total cash inflows from operating activities 6919421194 9034924534
Cash payments for goods and services (1512330793) (1041936007)
Cash payments to and on behalf of employees (1486641714) (1348047244)
Payments of taxes and surcharges (624246153) (470413241)
Other cash payments relating to operating activities (896731133) (1204371696)
?
Total cash outflows from operating activities (4519949793) (4064768188)
Net cash flows from operating activities 2399471401 4970156346
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments 575858940 2807425581
Cash receipts from returns on investments 2838215143 2527840286
Net cash received from disposal of fixed assets
intangible assets and other long-term assets 985435 842917
Other cash receipts relating to investing activities 9775322198 6942812478
?
Total cash inflows from investing activities 13190381716 12278921262
Cash payments to acquire fixed assets intangible
assets and other long-term assets (588210040) (1743031313)
Cash payments for investments (20213432135) (13557349939)
Other cash payments relating to other investing
activities (913788092) (12190000000)
?
Total cash outflows from investing activities (21715430267) (27490381252)
Net cash flows from investing activities (8525048551) (15211459990)
The accompanying notes to the financial statements form an integral part of these financial statements.
25BOE Technology Group Co. Ltd.
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
For the year ended 31 December 2025 Expressed in Renminbi Yuan
20252024
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from borrowings 10299661000 18520000000
Cash receipts from issuance of corporate bonds 11000000000 -
Other cash receipts relating to financing activities 9670000000 11220000000
Total cash inflows from financing activities 30969661000 29740000000
Cash repayments for debts (15536500000) (14318800000)
Cash payments for distribution of dividends or profit and
interest expenses (3048358000) (2499539504)
Cash payments for redemption of other equity
instruments (2000000000) -
Other cash payments relating to financing activities (4059940393) (2517521421)
Total cash outflows from financing activities (24644798393) (19335860925)
Net cash flows from financing activities 6324862607 10404139075
4. Effect of exchange rate changes on cash and cash and
cash equivalents (51246828) 29846436
5. Net increase in cash and cash equivalents 148038629 192681867
Add: Cash and cash equivalents at beginning of year 4442011688 4249329821
6. Cash and cash equivalents at end of year 4590050317 4442011688
Chen Yanshun Feng Qiang Yang Xiaoping Xu Yaxiao
Chairman of the Board Chairman of the Chief Financial Officer The head of the
Executive accounting
Committee department
The accompanying notes to the financial statements form an integral part of these financial statements.
26BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
I. General information
BOE Technology Group Company Limited (the “Company”) is a company limited by shares established
on 9 April 1993 in Beijing with its head office located at Beijing. The parent of the Company and theCompany’s ultimate holding company is Beijing Electronics Holdings Co. Ltd. (“Beijing ElectronicsHoldings”).The Company and its subsidiaries (referred to as the “Group”) comprise five main business segments:
display business Internet of Things (IoT) innovation business sensor business MLED business and
smart medicine & engineering business. For information about the subsidiaries of the Company refer to
Note VIII.The financial statements were approved and authorised for issue by the board of directors on March 30
2026.
II. Basis of preparation of the financial statements
1. Basis of preparation
The financial statements have been prepared in accordance with the Accounting Standards for Business
Enterprises - Basic Standardand the specific accounting standards interpretations and other relevant
provisions issued and subsequently revised by the Ministry of Finance (collectively referred to as the
"Accounting Standards for Business Enterprises").In addition these financial statements also present
the relevant financial information in accordance with the Rules for the Preparation of Information
Disclosure by Companies Offering Securities to the Public No. 15 – General Provisions for Financial
Reports.
2. Going concern
The financial statements have been prepared on a going concern basis.III. Material accounting policies and significant estimates
1. Statement of compliance
The financial statements have been prepared in accordance with the requirements of Accounting
Standards for Business Enterprises which are also referred to as China Accounting Standards (“CAS”)
issued by the Ministry of Finance (“MOF”) of the People’s Republic of China. These financial statements
present truly and completely the consolidated and company financial position of the Company as at 31
December 2025 and the consolidated and company financial performance and cash flows of the
Company for the year then ended.
2. Accounting year
The accounting period is from 1 January to 31 December.
3. Operating cycle
The Company takes the period from the acquisition of assets for processing to until the ultimate
realisation of cash or cash equivalents as a normal operating cycle. The operating cycle of the Company
is usually less than 12 months.
27BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
4. Functional currency
The Company’s functional currency is Renminbi and these financial statements are presented in
Renminbi. Functional currency is determined by the Company and its subsidiaries on the basis of the
currency in which major income and costs are denominated and settled. Some of the Company’s
subsidiaries have functional currencies that are different from the Company’s functional currency. Their
financial statements have been translated based on the accounting policy set out in Note III.9.
5. Method used to determine the materiality threshold and the basis for selection
Item Materiality threshold
Significant receivables for which provisions for bad and doubtful Amount of the individual accounts receivable ≥ RMB50 million
are individually assessed recoveries or reversals and written-offs
Significant prepayments contract liabilities accounts payable and Amount of the individual items exceeds 0.5% of the Group’s total
other payables with ageing of more than one year assets
Significant construction projects in progress Carrying amount of individual item at the end of the period exceeds
RMB10 billion
Significant non-wholly-owned subsidiaries joint ventures or Carrying amount of long-term equity investments in individual
associates investee exceed 5% of the Group’s total assets; total revenue of non-
wholly-owned subsidiaries exceed 5% of the Group’s total revenue
Significant capitalised research and development projects Accumulated expenditure of individual R&D project exceeds 0.5% of
the Group’s total assets
6. Business combinations
A transaction or event constitutes a business combination when the Group obtains control of one or
more entities (or a group of assets or net assets) which meet the definition of a business. Business
combinations are classified as either business combinations involving enterprises under common control
or business combinations not involving enterprises under common control.For a transaction not involving enterprises under common control the acquirer determines whether an
acquired set of assets constitutes a business. The Group may elect to apply the simplified assessment
method the concentration test to determine whether an acquired set of assets is a business. If the
concentration test is met the set of assets is determined not to be a business no further assessment is
needed. If the concentration test is not met the Group should perform the assessment according to the
guidance on the determination of a business.?
When the set of assets the Group acquired does not constitute a business acquisition costs should be
allocated to each identifiable asset and liability on the basis of their relative fair values at the date of
acquisition. The accounting treatments for business combinations described below are not applied.
28BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
6. Business combinations (continued)
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business combination in which all
of the combining entities are ultimately controlled by the same party or parties both before and after the
business combination and that control is not transitory. The assets acquired and liabilities assumed are
measured based on their carrying amounts in the consolidated financial statements of the ultimate
controlling party at the combination date. The difference between the share of carrying amount of the
net assets acquired and the consideration paid for the combination (or the total par value of shares
issued) is adjusted against share premium in the capital reserve with any excess deducted from surplus
reserve and retained earnings sequentially. Any costs directly attributable to the combination are
recognised in profit or loss when incurred. The combination date is the date on which one combining
entity obtains control of other combining entities.
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business combination in which
all of the combining entities are not ultimately controlled by the same party or parties both before and
after the business combination. The Group as the acquirer the sum of the fair value of the assets paid
(including the equity of the acquiree held before the acquisition date) liabilities incurred or assumed
and equity securities issued on the acquisition date minus the fair value share of the identifiable net
assets of the acquiree acquired in the merger on the acquisition date after considering the impact of
relevant deferred income tax if it is positive it will be recognized as goodwill (see Note III.18). If it is
negative it will be recognised in profit or loss for the current period. The costs of issuing equity or debt
securities as a part of the consideration for the acquisition are included in the carrying amounts of these
equity or debt securities upon initial recognition. Other acquisition-related costs are expensed when
incurred. Any difference between the fair value and the carrying amount of the assets transferred as
consideration is recognised in profit or loss. The acquiree’s identifiable assets liabilities and contingent
liabilities if the recognition criteria are met are recognised by the Group at their acquisition-date fair
values. The acquisition date is the date on which the acquirer obtains control of the acquiree.
7. Consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the consolidated financial
statements comprise the Company and its subsidiaries. Control exists when the investor has all of the
following: power over the investee; exposure or rights to variable returns from its involvement with the
investee; and the ability to affect those returns through its power over the investee. The financial
position financial performance and cash flows of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.Intra-group balances and transactions and any unrealised profit or loss arising from intra-group
transactions are eliminated when preparing the consolidated financial statements. Unrealised losses
resulting from intra-group transactions are eliminated in the same way as unrealised gains unless they
represent impairment losses that are recognised in full in the financial statements.
29BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
7. Consolidated financial statements (continued)
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period through a business combination involving
entities under common control the financial statements of the subsidiary are included in the
consolidated financial statements based on the carrying amounts of the assets and liabilities of the
subsidiary in the financial statements of the ultimate controlling party as if the combination had occurred
at the date that the ultimate controlling party first obtained control. The opening balances and the
comparative figures of the consolidated financial statements are also restated.Where a subsidiary was acquired during the reporting period through a business combination involving
entities not under common control the identifiable assets and liabilities of the acquired subsidiaries are
included in the scope of consolidation from the date that control commences based on the fair values of
those identifiable assets and liabilities at the acquisition date.
(3) Disposal of subsidiaries
When the Group loses control over a subsidiary any resulting disposal gains or losses are recognised
as investment income for the current period. The remaining equity investment is re-measured at its fair
value at the date when control is lost and any resulting gains or losses are also recognised as
investment income for the current period.
(4) Changes in non-controlling interests
Where the Company acquires more interest in a subsidiary from the subsidiary’s non-controlling
shareholders or disposes of a portion of an interest in a subsidiary without losing control the difference
between the portion of the interest in the subsidiary’s net assets being acquired or disposed of and the
amount of the consideration paid or received is adjusted to the capital reserve (share premium) in the
consolidated balance sheet with any excess deducted from surplus reserve and retained earnings
sequentially.
8. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand deposits that can be readily withdrawn on demand
and short-term highly liquid investments that are readily convertible into known amounts of cash and
are subject to an insignificant risk of change in value.
9. Foreign currency transactions and foreign currency translation
When the Group receives capital in foreign currencies from investors the capital is translated to
Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency transactions are
on initial recognition translated to Renminbi at the spot exchange rates on the dates of the transactions.Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate
at the balance sheet date. The resulting exchange differences are generally recognised in profit or loss
unless they arise from the re-translation of the principal and interest of specific borrowings for the
acquisition and construction of qualifying assets (see Note III.16). Non-monetary items that are
measured at historical cost in foreign currencies are translated to Renminbi using the exchange rate at
the transaction date. Non-monetary items that are measured at fair value in foreign currencies are
translated using the exchange rate at the date the fair value is determined. The resulting exchange
differences are recognised in profit or loss except for the differences arising from the re-translation of
equity investments at fair value through other comprehensive income which are recognised in other
comprehensive income.
30BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
9. Foreign currency transactions and foreign currency translation (continued)
In translating the financial statements of a foreign operation assets and liabilities of foreign operation
are translated to Renminbi at the spot exchange rate at the balance sheet date. Equity items excluding
retained earnings and the translation differences in other comprehensive income are translated to
Renminbi at the spot exchange rates at the transaction dates. Income and expenses of foreign
operation are translated to Renminbi at rates that approximate the spot exchange rates at the
transaction dates. The resulting translation differences are recognised in other comprehensive income.At the time of disposal of overseas operations the relevant translation differences arising from
translation of foreign currency financial statements is transferred from shareholders’ equity to the current
profit and loss of disposal.Foreign currency cash flows and cash flows of overseas subsidiaries are translated to Renminbi at rates
that approximate the spot exchange rates at the date the cash flows occur. The effect of exchange rate
changes on cash is presented separately as a reconciling item in the statement of cash flows.
10. Financial instruments
Financial instruments include cash at bank and on hand investments in debt and equity securities other
than those classified as long-term equity investments (see Note III.12) receivables payables loans and
borrowings debentures payable and share capital.
(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Group becomes a party
to the contractual provisions of a financial instrument.Financial assets and financial liabilities are measured initially at fair value. For financial assets and
financial liabilities measured 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. Trade
receivables that do not have a significant financing component or do not account for the significant
financing component in one-year-or-less contracts under the practical expedient are initially measured at
the transaction price in accordance with Note III.24.
(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 under 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:
31BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
10. Financial instruments (continued)
(2) Classification and subsequent measurement of financial assets (continued)
(a) Classification of financial assets (continued)
- it is held under 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 financial asset is measured at FVOCI if it meets both of the following conditions and is not designated
as at FVTPL:
- it is held under 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 and 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.The business model refers to how the Group manages its financial assets in order to generate cash
flows. That is the Group’s business model determines whether cash flows will result from collecting
contractual cash flows selling financial assets or both. The Group determines the business model for
managing the financial assets according to the facts and based on the specific business objective for
managing the financial assets determined by the Group’s key management personnel.In assessing whether the contractual cash flows are solely payments of principal and interest the Group
considers the contractual terms of the instrument. For the purposes of this assessment ‘principal’ is
defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration
for the time value of money and for the credit risk associated with the principal amount outstanding
during a particular period of time and for other basic lending risks and costs as well as a profit margin.The Group also assesses whether the financial asset contains a contractual term that could change the
timing or amount of contractual cash flows such that it would not meet this condition.(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and losses including any
interest or dividend income are recognised in profit or loss unless the financial assets are part of a
hedging relationship.- Financial assets at amortised cost
32BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
10. Financial instruments (continued)
(2) Classification and subsequent measurement of financial assets (continued)
(b) Subsequent measurement of financial assets (continued)
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 that is not part of a hedging
relationship should be recognised in profit or loss when the financial asset is derecognised reclassified
amortised under the effective interest method or when an impairment gain or loss is recognised.- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated using the effective
interest method and 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 as financial liabilities measured at 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 liabilities) or if 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.
33BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
10. Financial instruments (continued)
(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
A 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; and 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 financial asset 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;
- debt investments measured at FVOCI;
- lease receivables
Financial assets measured at fair value including debt investments or equity securities at FVTPL equity
securities designated at FVOCI and derivative financial assets are not subject to the ECL assessment.
34BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
10. Financial instruments (continued)
(6) Impairment (continued)
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 Group 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 notes receivable accounts receivable receivables financing and contract assets
arising from ordinary business activities such as sale of goods and provision of services as well as
lease receivables arising from lease transactions are always measured at an amount equal to lifetime
ECLs. 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 notes receivable accounts receivable receivables financing contract assets and lease
receivables the Group measures loss allowances at an amount equal to 12-month ECLs for the
following financial instruments and at an amount equal to lifetime ECLs for all other financial
instruments:
- Financial instruments that have been determined to have low credit risk at the balance sheet date; or
- Financial instruments for which credit risk has not increased significantly since initial recognition.
35BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
10. Financial instruments (continued)
(6) Impairment (continued)
Provisions for bad and doubtful debts arising from receivables
Categories of groups for collective assessment based on credit risk characteristics and basis for
determination
Item Basis for recognition
??
Notes receivable Based on the different credit risk characteristics of acceptors the Group
classifies notes receivable into two groups: bank acceptance bills and
commercial acceptance bills.Accounts receivable Historically there is no significant difference in terms of occurrence of losses
among different customer types for the Group. Therefore the Group classifies
accounts receivable into three groups specifically: receivables from customers
with high credit risk receivables from customers with low credit risk and
receivables from customers with medium credit risk.Receivables financing The Group’s receivables financing are bank acceptance bills held for dual
purposes. As the accepting banks have high credit ratings the Group considers
all receivables financing as a single group.Other receivables The Group’s other receivables mainly include cash pledges and deposits
receivable petty cash receivables due from employees receivables due from
related parties dividends receivable etc. Based on the nature of receivables
and the credit risk characteristics of different counterparties the Group
classifies other receivables into three groups specifically: receivables with high
credit risk receivables with low credit risk and receivables with medium credit
risk.Contract assets Historically there is no significant difference in terms of occurrence of losses
among different customer types for the Group. Therefore the Group makes
provisions for bad and doubtful debts arising from contract assets on the basis
of all customers being one group without further segmentation by different
customer types.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.
36BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
10. Financial instruments (continued)
(6) Impairment (continued)
Significant increases in credit risk (continued)
When determining whether the credit risk of a financial asset has increased significantly since initial
recognition 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 contractual 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;
- 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.The Group determines 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 difficulties of the issuer or debtor;
- a breach of contract such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the debtor’s financial difficulties the Group having
granted to the debtor a concession that it would not otherwise consider;
- it is probable that the debtor will enter bankruptcy or other financial reorganisation;
- the disappearance of an active market for the financial asset because of financial difficulties of the
issuer or debtor.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. Loss allowances for financial assets measured at amortised cost are deducted from the
gross carrying amount of the assets. For debt investments that are measured at FVOCI the loss
allowance is recognised in other comprehensive income and not deducted from the carrying amount of
the assets.
37BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
10. Financial instruments (continued)
(6) Impairment (continued)
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 generally
occurs 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 instruments
The issuance of equity instruments is recognised at the actual issue price in shareholders’ equity
relevant transaction costs are deducted from shareholders’ equity (capital reserve) with any excess
deducted from surplus reserve and retained earnings sequentially. 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. The
entire repurchase expenditure is recorded as the cost of the treasury shares in the reference register.Treasury shares are excluded from profit distributions and are presented as a deduction from
shareholders’ equity on 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 perpetual bonds issued by the Group or their components are classified as financial
assets financial liabilities or equity instruments based on their contractual terms and economic
substance with reference to the definition of financial assets financial liabilities and equity instruments.Perpetual bonds issued by the Group that should be classified as equity instruments are recognised in
equity based on the actual proceeds 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 amount is recognised as a deduction from equity.
38BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
11. Inventories
(1) Categories
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 which do not meet the definition of fixed assets. Contract fulfillment costs classified as
current assets are disclosed at inventory.In addition to the purchase cost of raw materials work in progress and finished goods include direct
labour costs and an appropriate allocation of production overheads based on normal capacity.
(2) Measurement method of cost of inventories
Cost of inventories is calculated using the weighted average method.
(3) Inventory count system
The Group maintains a perpetual inventory system.
(4) Amortisation method for low-value consumables and packaging materials
Consumables including low-value consumables and packaging materials are amortized by one-off write
off method. The amortisation charge is included in the cost of the related assets or recognised in profit
or loss for the current period.
(5) Criteria and method for provision for obsolete inventories
At the balance sheet date inventories are carried at the lower of cost and net realisable value. Any
excess of the cost over the net realisable value of each category of inventories is recognised as a
provision for obsolete inventories and is recognised in profit or loss.The net realisable value of materials held for use in production is measured based on the net realisable
value of the finished goods in which they will be incorporated. The net realisable value of inventory held
to satisfy sales or service contracts is measured based on the contract price. If the quantities of
inventories held by the Group exceed the quantities specified in sales contracts the net realisable value
of the excess portion of inventories is based on general selling prices.
12． Long-term equity investments
(1) Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
The initial cost of a long-term equity investment acquired through a business combination involving
entities under common control is the Company’s share of the carrying amount of the subsidiary’s equity
in the consolidated financial statements of the ultimate controlling party at the combination date. The
difference between the initial investment cost and the carrying amount of the consideration given is
adjusted to the share premium in the capital reserve with any excess deducted from surplus reserve
and retained earnings sequentially.
39BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
12. Long-term equity investments (continued)
(1) Investment cost of long-term equity investments (continued)
(a) Long-term equity investments acquired through a business combination (continued)
For a long-term equity investment obtained through a business combination not involving entities under
common control the initial cost comprises the aggregate of the fair value of assets transferred liabilities
incurred or assumed and equity securities issued by the Company in exchange for control of the
acquiree.(b) Long-term equity investments acquired other than through a business combination
A long-term equity investment acquired other than through a business combination is initially recognised
at the amount of cash paid if the Group acquires the investment by cash or at the fair value of the equity
securities issued if an investment is acquired by issuing equity securities.Where the initial investment cost of a long-term equity investment exceeds the investor’s proportionate
share of the investee’s identifiable net assets at fair value at the time of investment such excess shall
be included in the initial investment cost. Where the initial investment cost is less than the investor’s
proportionate share of the investee’s identifiable net assets at fair value at the time of investment the
difference shall be recognized in profit or loss for the current period and the cost of the long-term equity
investment shall be adjusted accordingly.
(2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements long-term equity investments in subsidiaries are
accounted for using the cost method for subsequent measurement. For any additional investment or
recovery of investment adjust the cost of long-term equity investment. The Company recognises its
share of the cash dividends or profit distributions declared by the investee as investment income for the
current period.(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint control (see Note
III.12(3)) and rights to the net assets of the arrangement. An associate is an entity over which the Group
has significant influence (see Note III.12(3)).An investment in a joint venture or an associate is accounted for using the equity method for subsequent
measurement unless the investment is classified as held for sale (see Note III.31).
40BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
12. Long-term equity investments (continued)
(2) Subsequent measurement of long-term equity investment (continued)
(b) Investment in joint ventures and associates (continued)
After acquiring the investment the Group recognises its share of the investee’s profit or loss and other
comprehensive income as investment income or losses and other comprehensive income respectively
and adjusts the carrying amount of the investment accordingly. When recognizing its share of the net
profit or loss of the investee the Group calculates such share on the basis of the fair value of the
investee's identifiable assets at the acquisition date applying the Group's accounting policies and fiscal
period. The recognition amount is determined after adjusting the investee's net profit to reflect the
elimination to the extent of the Group's proportionate interest of intra-group transaction gains or losses
arising from dealings with associates and joint ventures (except that losses from intra-group transactions
that represent an impairment loss on assets are recognized in full). No such adjustment is made
however where the investment involves the contribution or sale of assets that constitute a business.Once the investee declares any cash dividends or profit distributions the carrying amount of the
investment is reduced by the amount attributable to the Group. Changes in the Group’s share of the
investee’s owners’ equity other than those arising from the investee’s net profit or loss other
comprehensive income or profit distribution (referred to as “other changes in owners’ equity”) are
recognised directly in the Group’s equity and the carrying amount of the investment is adjusted
accordingly.The Group discontinues recognising its share of further losses of the investee after the carrying amount
of the long-term equity investment and any long-term interest that in substance forms part of the Group’s
net investment in the joint venture or associate is reduced to zero except to the extent that the Group
has an obligation to assume additional losses. If the joint venture or associate subsequently reports net
profits the Group resumes recognising its share of those profits only after its share of the profits has
fully covered the share of losses not recognised.
(3) Criteria for determining the existence of joint control or significant influence over an
investee
Joint control is the contractually agreed sharing of control of an arrangement which exists only when
decisions about the relevant activities (activities with significant impact on the returns of the
arrangement) require the unanimous consent of the parties sharing control.The following factors are usually considered when assessing whether the Group can exercise joint
control over an investee:
- Whether no single participant party is in a position to control the investee’s relevant activities
unilaterally;
- Whether decisions relating to the investee’s relevant activities require the unanimous consent of all
participant parties that share 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 of those policies.
41BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
13． Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation or both.Investment properties are initially measured at cost. Subsequent expenditures related to an investment
property are recognized as part of the cost of the investment property when it is probable that the
economic benefits associated with the asset will flow to the Group and the cost can be reliably
measured. Otherwise such expenditures are recognized in profit or loss as incurred.Investment properties are accounted for using the cost model and stated in the balance sheet at cost
less accumulated depreciation amortisation and impairment losses. The cost of investment property
less its estimated residual value and accumulated impairment losses is depreciated or amortised using
the straight-line method over its estimated useful life unless the investment property is classified as held
for sale (see Note III.31).The estimated useful lives residual value rates and depreciation rates of each class of investment
properties are as follows:
Estimated useful life Residual value rate Depreciation rate
??
? (years) (%) (%)
??????
Land use rights 32 - 50 years ? 0.0 ? 2.0 - 3.1
Buildings 20 - 40 years ? 0.0 - 10.0 ? 2.3 - 5.0
14． Fixed assets
(1) Recognition of fixed assets
Property plant and equipment are recognized only if it is probable that the economic benefits associated
with the asset will flow to the Group and the cost of the asset can be reliably measured. Any subsequent
costs including the cost of replacing part of an item of fixed assets are recognised as assets when it is
probable that the economic benefits associated with the costs will flow to the Group and the face value
of the replaced part is derecognised. The costs of the day-to-day maintenance of fixed assets are
recognised in profit or loss as incurred.The cost of a purchased fixed asset comprises the purchase price related taxes and any directly
attributable expenditure for bringing the asset to working condition for its intended use. The cost of self-
constructed assets is measured in accordance with the policy set out in Note III.15.Where the parts of an item of fixed assets have different useful lives or provide benefits to the Group in
a different pattern thus necessitating use of different depreciation rates or methods each part is
recognised as a separate fixed asset.
42BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
14． Fixed assets (continued)
(2) Depreciation of fixed assets
The cost of a fixed asset less its estimated residual value and accumulated impairment losses is
depreciated using the straight-line method over its estimated useful life unless the fixed asset is
classified as held for sale (see Note III.31).The estimated useful lives residual value rates and depreciation rates of each class of fixed assets are
as follows:
Estimated useful Residual value rate Depreciation rate
Class life (years) ? (%) ? (%)
??????
Plant and buildings 10 - 50 years ? 3.0 - 10.0 ? 1.8 - 9.7
Equipment 2 - 25 years ? 0.0 - 10.0 ? 3.6 - 50.0
Others 2 - 10 years ? 0.0 - 10.0 ? 9.0 - 50.0
Useful lives estimated residual values and depreciation methods are reviewed at least at each year-
end and are adjusted if necessary.
15. Construction in progress
The cost of self-constructed assets includes the cost of materials direct labour capitalised borrowing
costs (see Note III.16) and any other costs directly attributable to bringing the asset to working condition
for its intended use.A self-constructed asset is classified as construction in progress and transferred to fixed assets when it
is ready for its intended use. No depreciation is recorded against construction in progress.The criteria according to which construction projects in progress are transferred to fixed assets:
Class Criteria for the transfers to fixed assets
??
Satisfy the acceptance criteria and be available for
Plant and buildings its intended use
Installation and commissioning are qualified and
Machinery and equipment be available for its intended use
When an enterprise sells products or by-products produced before a fixed asset is available for its
intended use the proceeds and related cost are accounted for in accordance with CAS 14 – Revenue
and CAS 1 – Inventories respectively and recognised in profit or loss for the current period.
43BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
16. Borrowing costs
Borrowing costs incurred that are directly attributable to the acquisition and construction of a qualifying
asset are capitalised as part of the cost of the asset. Other borrowing costs are recognised as financial
expenses when incurred.During the capitalisation period the amount of interest (including amortisation of any discount or
premium on borrowing) to be capitalised in each accounting period is determined as follows:
- Where funds are borrowed specifically for the acquisition and construction of a qualifying asset the
amount of interest to be capitalised is the interest expense calculated using effective interest rates
during the period less any interest income earned from depositing the borrowed funds or any investment
income on the temporary investment of those funds before they are used on the asset.- To the extent that the Group borrows funds generally and uses them for the acquisition and
construction of a qualifying asset the amount of borrowing costs eligible for capitalisation is determined
by applying a capitalisation rate to the weighted average of the excess amounts of cumulative
expenditure on the asset over the above amounts of specific borrowings. The capitalisation rate is the
weighted average of the interest rates applicable to the general-purpose borrowings.The effective interest rate is determined as the rate that exactly discounts estimated future cash flow
through the expected life of the borrowing or when appropriate a shorter period to the initially
recognised amount of the borrowings.During the capitalisation period exchange differences related to the principal and interest on a specific-
purpose borrowing denominated in foreign currency are capitalised as part of the cost of the qualifying
asset. The exchange differences related to the principal and interest on foreign currency borrowings
other than a specific-purpose borrowing are recognised as a financial expense when incurred.Capitalisation of borrowing costs is suspended during abnormal interruptions in the acquisition or
construction of a qualifying asset that last for a continuous period of more than three months provided
that such interruptions are not necessary to prepare the asset for its intended use or sale. Borrowing
costs incurred during such interruptions are recognised as financial expenses in profit or loss until the
acquisition or construction activities resume.
17. Intangible assets
(1) Useful life and amortisation methods
For an intangible asset with finite useful life its cost less estimated residual value and accumulated
impairment losses is amortised using the straight-line method over its estimated useful life unless the
intangible asset is classified as held for sale (see Note III.31).
44BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
17. Intangible assets (continued)
The estimated useful lives basis for determination and amortisation methods of intangible assets are as
follows:
Estimated useful life
Item (years) ? Basis for determination ? Amortisation method
??????
Land use rights 20 - 50 years ? Terms of land use rights ? Straight-line method
Patent and proprietary
technology 5 - 20 years ? Terms of patents ? Straight-line method
Computer software 3 - 10 years ? Estimated useful life ? Straight-line method
Others 5 - 20 years ? Estimated useful life ? Straight-line method
Useful lives and amortisation methods of intangible assets with finite useful lives are reviewed at least at
each year-end.An intangible asset is regarded as having an indefinite useful life and is not amortised when there is no
foreseeable limit to the period over which the asset is expected to generate economic benefits for the
Group. At the balance sheet date the Group does not have any intangible assets with indefinite useful
lives.
(2) The scope of research and development expenditures
The Group classifies all expenses directly related to the R&D activities as research and development
(R&D) expenditure including the employee benefits of R&D personnel direct investments depreciation
expenses and long-term deferred expenses design expenses equipment commissioning costs
amortisation expenses of intangible assets development costs incurred by an entrusted external party
as well as other expenses. Expenditures on internal research and development projects are classified
into expenditures incurred during the research phase and expenditures incurred during the development
phase.
(3) The basis for the classification of internal R&D projects under the research phase and the
development phase
- The phase of planned investigations to acquire new techniques and knowledge should be identified
as the research phase which is characterised by among other things a planned and exploratory
approach.- The phase of applying research results or other knowledge to a plan or design to produce new or
substantially improved materials devices products etc. prior to commercial production or use shall be
identified as the development phase which is characterised by its relevance and greater likelihood of
generating results.
45BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
17. Intangible assets (continued)
(4) Expenditures on research and development
Expenditures on internal research and development projects are classified into expenditures incurred
during the research phase and expenditures incurred during the development phase.Expenditures during the research phase are expensed when incurred. Expenditures during the
development phase are capitalised if development costs can be measured reliably the product or
process is technically and commercially feasible and the Group intends to and has sufficient resources
to complete the development. Other development expenditures are recognised as expenses in the
period in which it is incurred.When an enterprise sells products or by-products produced in the course of research and development
the proceeds and related cost are accounted for in accordance with CAS 14 – Revenue and CAS 1 –
Inventories respectively and recognised in profit or loss for the current period.
18. Goodwill
The initial cost of goodwill represents the excess of the cost of the acquisition over the acquirer’s
interest in the fair value of the identifiable net assets of the acquiree under a business combination not
involving entities under common control.Goodwill is not amortised and is stated in the balance sheet at cost less accumulated impairment losses
(see Note III.20).
19. Long-term deferred expenses
Long-term deferred expenses are amortised using the straight-line method within the benefit period. The
respective amortisation periods for such expenses are as follows:
Amortisation period
Item (years)
??
Payment for public facilities construction and use 10 - 15 years
Leasehold improvements 2 - 10 years
Others 2 - 12 years
46BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
20. Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based on internal
and external sources of information to determine whether there is any indication of impairment:
- fixed assets
- construction in progress
- right-of-use assets
- intangible assets
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses
If any indication exists the recoverable amount of the asset is estimated. In addition the Group
estimates the recoverable amounts of goodwill at each year-end irrespective of whether there is any
indication of impairment. For the purposes of impairment testing goodwill is allocated to each asset
group or set of asset groups that is expected to benefit from the synergies of the business combination.The recoverable amount of an asset (or asset group or set of asset groups) is the higher of its fair value
(see Note III.21) less costs of disposal and the present value of its expected future cash flows.An asset group is composed of assets related to cash generation and is the smallest identifiable group
of assets that generates cash inflows that are largely independent of the cash inflows from other assets
or asset groups.The present value of an asset’s expected future cash flows is determined by discounting the future cash
flows estimated to be derived from continuing use of the asset and from its ultimate disposal to their
present value using an appropriate pre-tax discount rate.An impairment loss is recognised in profit or loss when the recoverable amount of an asset is less than
its carrying amount. A provision for impairment of the asset is recognised accordingly to reduce the
carrying amount to the recoverable amount. Impairment losses related to an asset group or a set of
asset groups are allocated first to reduce the carrying amount of any goodwill allocated to the asset
group or set of asset groups and then to reduce the carrying amount of the other assets in the asset
group or set of asset groups on a pro rata basis. However such allocations would not reduce the
carrying amount of an asset below the highest of its fair value less costs of disposal (if measurable) the
present value of its expected future cash flows (if determinable) and zero.Once an impairment loss is recognised it should not be reversed in a subsequent period.
47BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
21. 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 the Group 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.
22. Provisions
A provision is recognised for an obligation related to a contingency if the Group has a present obligation
that can be estimated reliably and it is probable that an outflow of economic benefits will be required to
settle the obligation.A provision is initially measured at the best estimate of the expenditure required to settle the related
present obligation. Where the effect of the time value of money is material provisions are determined by
discounting the expected future cash flows. Factors pertaining to a contingency such as the risks
uncertainties and time value of money are taken into account as a whole in reaching the best estimate.Where there is a continuous range of possible outcomes for the expenditure required and each possible
outcome in that range is as likely as any other the best estimate is the mid-point of that range. In other
cases the best estimate is determined as follows:
- Where the contingency involves a single item the best estimate is the most likely outcome.- Where the contingency involves a large population of items the best estimate is determined by
weighting all possible outcomes by their associated probabilities.The Group reviews the carrying amounts of provisions at the balance sheet date and adjusts their
carrying amounts to the current best estimates.
23. Share-based payments
(1) Classification of share-based payments
Share-based payment transactions in the Group are equity-settled share-based payments.Equity settled share-based payments refer to transactions in which the Group settles for services using
shares or other equity instruments as consideration.
48BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
23. Share-based payments (continued)
(2) Accounting treatment of share-based payments
- Equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for services received from
employees the payment is measured at the fair value of the equity instruments granted to employees at
the grant date. If the equity instruments granted do not vest until the completion of services for a period
or until the achievement of a specified performance condition the Group recognises an amount at each
balance sheet date during the vesting period based on the best estimate of the number of equity
instruments expected to vest according to newly obtained subsequent information regarding changes in
the number of employees expected to vest the equity instruments. The Group measures the services
received at the grant-date fair value of the equity instruments and recognises the costs or expenses as
the services are received with a corresponding increase in capital reserve.
24. Revenue generated from contracts with customers
Revenue is recognised when the Group satisfies the performance obligation in a contract by transferring
control over relevant goods or services to the customers. Obtaining control over relevant goods or
services refers to being able to dominate the use of the goods or services and obtain almost all
economic benefits from them.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 Group and maximises the use of observable
inputs to estimate the stand-alone selling price.For a contract in which the Group grants a customer the option to acquire additional goods or services
(such as loyalty points discount coupons for future purchases.) 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.
49BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
24. Revenue generated from contracts with customers (continued)
For a 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 the promised warranty as a performance obligation.Otherwise the Group will carry out accounting treatment in accordance with the provisions of Note III
NO.22. For contracts with quality assurance clauses that are not included as individual services the
Group needs to provide for warranty expenses based on the actual amount incurred in previous years
and the actual sales situation of the current period estimated reasonably as considered by the
management.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 are
transferred 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; otherwise
the 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 a 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.
50BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
24. Revenue generated from contracts with customers (continued)
For a performance obligation satisfied at a point in time the Group recognises revenue at the point in
time at which the customer obtains control of the 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 the legal ownership of the product to the customer;
- the Group has transferred physical possession of the goods to the customer;
- the Group has transferred the legal title of the goods or the significant risks and rewards of ownership
of the goods to the customer; and
- the customer has accepted the goods or services.The Group determines whether it is a principal or an agent based on whether it obtains control of the
specified good or service before that the 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 which it has received (or which
is 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 determined according to the
established amount or proportion.For the sale of a product with a right of return the Group recognises revenue when the customer
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 that is expected to be returned) and
recognises a refund liability for the products expected to be returned. Meanwhile an asset is
recognised at an amount equal to the carrying amount of the product expected to be returned less any
expected costs to recover those products (including potential decreases in the value of the returned
products) and carry forward to cost in the amount of carrying amount of the transferred products less
the above costs. At each balance sheet date the Group updates its assessment of future sales return
liability. If there is any change it is accounted for as a change in accounting estimate.The Group grants a licence of intellectual properties to a customer and it determines whether the
licence is transferred to the customer at a point in time or over time. If all of the following criteria are met
the licence revenue is recognised as a performance obligation satisfied over time. Otherwise the
licence revenue is recognised as a performance obligation 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 to 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)
51BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
24. Revenue generated from contracts with customers (continued)
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 as follows:
- In cases where the additional promised goods or services are distinct and the price of the contract
increases by an amount of consideration that reflects the stand-alone selling prices of the additional
promised goods or services the Group should account for the 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 or before 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 or before 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 revenue is recognised as an adjustment to revenue in the reporting period.A contract asset is the Group’s right to consideration in exchange for goods or services that it has
transferred to a customer when that right is conditional on something other than the passage of time.The Group recognises loss allowances for expected credit loss on contract assets (see Note III.10(6)).Accounts receivable is the Group’s right to consideration that is unconditional (only the passage of time
is required). A contract liability is the Group’s obligation to transfer goods or services to a customer for
which the Group has received consideration (or an amount of consideration is due) from the customer.The following is a 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 received or when they are received by the carrier. Revenue of sale of goods is recognised at that
point in time.For the transfer of goods with a right of return revenue is recognised to the extent that it is highly
probable that a significant reversal in the amount of cumulative revenue recognised will not occur.Therefore the amount of revenue recognised is adjusted for the amount expected to be returned which
are estimated based on the historical data. The Group recognises a refund liability based on the amount
expected to be returned. An asset is initially measured by reference to the former carrying amount of the
product expected to be returned less any expected costs to recover those products (including potential
decreases in the value 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 returns. The above
assets and liabilities are adjusted accordingly.
52BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
24. Revenue generated from contracts with customers (continued)
(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.
25. Contract costs
Incremental costs of obtaining a contract are those costs that the Group incurs to obtain a contract with
a customer that it would not have incurred if the contract had not been obtained. The Group recognises
as an asset the incremental costs of obtaining a contract with a customer if it expects to recover those
costs. Other costs of obtaining a contract are expensed when incurred.If the costs to fulfil a contract with a customer are not within the scope of inventories or other accounting
standards the Group recognises an asset from the costs incurred to fulfil a contract only if those costs
meet all of the following criteria:
-the costs relate directly to an existing contract or to a specifically identifiable anticipated contract
including direct labour direct materials allocations of overheads (or similar costs) costs that are
explicitly chargeable to the customer and other costs that are incurred only because the Group entered
into the contract;
- the costs generate or enhance resources of the Group that will be used in satisfying (or in continuing
to satisfy) performance obligations in the future;
- the costs are expected to be recovered.Assets recognised for the incremental costs of obtaining a contract and assets recognised for the costs
to fulfil a contract (the “assets related to contract costs”) are amortised on a systematic basis that is
consistent with the transfer to the customer of the goods or services to which the assets relate and
recognised in profit or loss for the current period.The Group recognises an impairment loss in profit or loss to the extent that the carrying amount of an
asset related to contract costs exceeds:
- the remaining amount of consideration that the Group expects to receive in exchange for the goods
or services to which the asset relates;
- the estimated costs that relate directly to providing those goods or services that have not yet been
recognised as expenses.
26. Employee benefits
(1) Short-term employee benefits
Employee wages or salaries bonuses and social security contributions such as medical insurance
work injury insurance maternity insurance and housing fund measured at the amount incurred or
accrued at the applicable benchmarks and rates are recognised as a liability as the employee provides
services with a corresponding charge to profit or loss or included in the cost of assets where
appropriate.
53BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
26. Employee benefits (continued)
(2) Post-employment benefits – defined contribution plans
The defined contribution plans in which the Group participates include: Pursuant to the relevant laws
and regulations of the People’s Republic of China the Group participated in a defined contribution basic
pension insurance plan and unemployment insurance plan in the social insurance system established
and managed by government organisations and annuity plan established by the Group in compliance
with the national policy of the corporation annuity. The Group makes contributions to basic pension and
unemployment insurance plans based on the applicable benchmarks and rates stipulated by the
government. Annuity is accrued at a certain proportion of the total wages of employees who voluntarily
participate in the annuity plan. Basic pension insurance contributions payable are recognised as a
liability as the employee provides services with a corresponding charge to profit or loss or included in
the cost of assets where appropriate.
(3) Termination benefits
When the Group terminates an employee’s employment before the employment contract expires or
provides compensation under an offer to encourage employees to accept voluntary redundancy a
provision is recognised with a corresponding expense in profit or loss at the earlier of the following
dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits provided in an
employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of termination
benefits and has raised a valid expectation in those affected that it will carry out the restructuring by
starting to implement that plan or announcing its main features to those affected by it.
27. Government grants
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 attached 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.
54BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
27. Government grants (continued)
With respect to the government grants related to assets if the Group first obtains government grants
related to assets and then recognises the long-term assets purchased and constructed deferred income
is included in profit and loss based on a reasonable and systematic approach by stages when related
assets are initially depreciated or amortised; or the deferred income is written off against the carrying
amount of the asset when the asset becomes ready for its intended status or intended use. If the Group
obtains government grants related to the assets after relevant long-term assets are put into use
deferred income is included in profit and loss based on a reasonable and systematic approach by
stages within the remaining useful life of relevant assets or the deferred income is written off against the
carrying amount of relevant asset when the grants are obtained; the assets shall be depreciated or
amortised based on the carrying amount after being offset and the remaining useful life of relevant
assets. If the relevant assets are sold transferred scrapped or damaged before the end of their useful
life the undistributed balance of related deferred income shall be transferred to the profit or loss of the
current period of asset disposals.A grant that compensates the Group for expenses or losses to be incurred in the future is recognised as
deferred income and included in current income or offset against related expenses in the periods in
which the expenses or losses are recognised. Otherwise the grant is included in current income or
offset against the related expenses directly.In respect of the policy-based preferential loan interest subsidy obtained by the Group if the interest
subsidy is appropriated to the lending bank which shall provide loans to the Group at the policy-based
preferential interest rate the actual loan amount is used as the entry value and relevant borrowing costs
are calculated on the basis of the loan principal and the preferential interest rate. If the interest subsidy
is directly appropriated to the Group relevant borrowing costs shall be offset by corresponding interest
subsidy. If borrowing costs are capitalised as part of the cost of the asset (see Note III.16) the interest
subsidy shall be used to offset relevant asset costs.
28. Specific reserve
The Group recognises a safety fund in the specific reserve pursuant to relevant government regulations
with a corresponding increase in the costs of the related products or expenses.When the safety fund is subsequently used for revenue expenditure the specific reserve is reduced
accordingly. When the safety fund is subsequently used for the construction or acquisition of fixed
assets the Group recognises the capitalised expenditure incurred as the cost of the fixed assets when
the related assets are ready for their intended use. In such cases the specific reserve is reduced by the
amount that corresponds to the cost of the fixed assets and the credit side is recognised in the
accumulated depreciation with respect to the related fixed assets. Consequently such fixed assets are
not depreciated in subsequent periods.
29. Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they relate to a
business combination or items recognised directly in equity (including other comprehensive income).Current tax is the expected tax payable calculated at the applicable tax rate on taxable income for the
year plus any adjustment to tax payable in respect of previous years.
55BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
29. Income tax (continued)
At the balance sheet date current tax assets and liabilities are offset only if the Group has a legally
enforceable right to set them off and also intends either to settle on a net basis or to realise the asset
and settle the liability simultaneously.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differences
respectively being the differences between the carrying amounts of assets and liabilities for financial
reporting purposes and their tax bases which include deductible losses and tax credits carried forward
to subsequent periods. Deferred tax assets are recognised to the extent that it is probable that future
taxable profits will be available against which deductible temporary differences can be utilised.Various taxable temporary differences are recognized as deferred income tax liabilities unless:
(1) Taxable temporary differences arise in the following transactions: the initial recognition of goodwill or
the initial recognition of assets or liabilities arising from a single transaction with the following
characteristics: the transaction is not a business merger and it does not affect accounting profits or
taxable income or deductible losses at the time of the transaction And the initially recognized assets and
liabilities did not result in equal taxable temporary differences and deductible temporary differences;
(2) For taxable temporary differences related to investments in subsidiaries joint ventures and
associates the timing of the reversal of such temporary differences can be controlled and it is highly
likely that they will not be reversed in the foreseeable future.For deductible temporary differences deductible losses that can be carried forward to future years and
tax deductions the Group recognizes deferred income tax assets arising from them to the extent that it
is likely to obtain future taxable income to offset deductible temporary differences deductible losses
and tax deductions unless:
(1) Deductible temporary differences arise in the following individual transactions: the transaction is not
a business merger the transaction does not affect accounting profits or taxable income or deductible
losses at the time of occurrence and the initially recognized assets and liabilities do not result in equal
taxable temporary differences and deductible temporary differences;
(2) For deductible temporary differences related to investments in subsidiaries joint ventures and
associates the temporary differences are likely to be reversed in the foreseeable future and taxable
income used to offset the temporary differences is likely to be obtained in the future.At the balance sheet date deferred tax is measured based on the tax consequences that would follow
from the expected manner of recovery or settlement of the carrying amounts of the assets and liabilities
using tax rates enacted at the balance sheet date that are expected to be applied in the period when the
asset is recovered or the liability is settled.On the balance sheet date the Group reviews the book value of deferred income tax assets. If it is likely
that sufficient taxable income will not be available in the future to offset the benefits of deferred income
tax assets the carrying amount of the deferred income tax assets will be written down. On the balance
sheet date the Group reassesses unrecognized deferred income tax assets and recognizes them to the
extent that sufficient taxable income is likely to be available for the reversal of deferred income tax
assets.
56BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
29. Income tax (continued)
At the balance sheet date deferred tax assets and deferred tax liabilities are offset if all of the following
conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current tax assets;
- they relate to income taxes levied by the same tax authority on either the same taxable entity; or
different taxable entities which intend either to settle the current tax liabilities and current tax assets on
a net basis or to realise the assets and settle the liabilities simultaneously in each future period in
which significant amounts of deferred tax liabilities or deferred tax assets are expected to be settled or
recovered.
30. Leases
At inception of a contract the Group assesses whether a contract is or contains a lease. A contract is
or contains a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration.For a contract that contains multiple separate lease components the lessee and the lessor separate the
lease components and account for each lease component as a lease separately. For a contract that
contains lease and non-lease components the lessee and the lessor separate the lease components
from the non-lease components.
(1) As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement date
excluding short-term leases and low value asset leases.The Group depreciates the right of use assets using the straight-line method. If the lessee is reasonably
certain to obtain the ownership of the lease asset by the end of the lease term the right-of-use asset is
depreciated over the remaining useful life of the underlying asset. Otherwise the right-of-use asset is
depreciated over the shorter of the lease term or the remaining useful life of the lease asset.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.
57BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
30. Leases (continued)
(1) As a lessee (continued)
Under the following circumstances after the lease commencement date the Group remeasures lease
liabilities based on the present value of revised lease payments:
- Changes in the substantial fixed payment amount;
- 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 the Group has exercised the extension or termination option in a different manner
from the original assessment.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 (a leased asset is of low value
individually when it is new). The Group recognises the lease payments associated with these leases in
profit or loss or as the cost of the assets where appropriate using the straight-line method or other
systematic basis over the lease term.
(2) As a lessor
The Group determines at lease inception whether each lease is a finance lease or an operating lease. A
lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to
ownership of an underlying asset irrespective of whether the legal title to the asset is eventually
transferred. An operating lease is a lease other than a finance lease.When the Group is a sub-lessor it assesses the lease classification of a sub-lease with reference to the
right-of-use asset arising from the head lease not with reference to the underlying asset. If a head lease
is a short-term lease to which the Group applies the practical expedient described above then it
classifies the sub-lease as an operating lease.Under a finance lease at the commencement date the Group recognises the finance lease receivable
and derecognises the asset under finance lease.The Group recognises finance income over the lease term with a constant periodic rate of return. The
derecognition and impairment of the finance lease receivable are accounted for in accordance with the
accounting policy in Note III.10. Variable lease payments not included in the measurement of net
investment in the lease are recognised as income as they are earned.Lease receipts from operating leases are recognised as income using the straight-line method or other
systematic basis over the lease term. Variable lease payments not included in lease receipts are
recognised as income as they are earned. The initial direct cost capitalization is amortized over the
lease term on the same basis as the recognition of rental income and is recognized in the current
period's profit and loss in installments.
58BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
31. Assets held for sale and discontinued operations
Non-current assets or disposal groups 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.A non-current asset or disposal group is classified as held for sale when all the following criteria are met:
- According to the customary practices of selling such assets or disposal groups in similar transactions
the non-current asset or disposal group is available for immediate sale in its present condition;
- The sale is highly probable to occur that is the Group has made a resolution on a sale plan and
entered into a legally binding sales. The sale is expected to be completed within one year.Non-current assets or disposal groups held for sale are stated at the lower of carrying amount and fair
value (see Note III.21) less costs to sell (except financial assets (see note III.10) and deferred tax assets
(see note III.29)) initially and subsequently. Any excess of the carrying amount over the fair value (see
Note III.21) less costs to sell is recognised as an impairment loss in profit or loss.Discontinued operations
The Group classifies a separate component as a discontinued operation either upon disposal of the
operation or when the operation meets the criteria to be classified as held for sale if it is separately
identifiable and satisfies one of the following conditions:
- It represents a separate major line of business or a separate geographical area of operations;
- It is part of a single coordinated plan to dispose of a separate major line of business or a separate
geographical area of operations;
- It is a subsidiary acquired exclusively with a view to resale.Where an operation is classified as discontinued in the current period profit or loss from continuing
operations and profit or loss from discontinued operations are separately presented in the income
statement for the current period. The comparative information for profit or loss from discontinued
operations which used to present as profit or loss from continuing operations in the prior period is re-
presented as profit or loss from discontinued operations in the comparative income statement.
32. Dividends 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.
59BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
33. 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 the Administrative Procedures on the Information Disclosures of Listed
Companies issued by the CSRC.
34. Segment reporting
Reportable segments are identified based on operating segments which are determined based on the
structure of the Group’s internal organisation management requirements and internal reporting system
after taking the materiality principle into account. Two or more operating segments may be aggregated
into a single operating segment if the segments have similar economic characteristics and are the same
or similar in respect of the nature of products and services the nature of production processes the
typesproduction 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.For segment reporting inter-segment revenues are measured on the basis of the actual transaction
prices for such transactions and segment accounting policies are consistent with those used to prepare
the consolidated financial statements.
35. Significant accounting estimates and judgements
When preparing financial statements the management of the Group needs to apply judgments
estimates and assumptions which will have an impact on the application of accounting policies and the
amounts of assets liabilities income and expenses. Estimates as well as the underlying assumptions
and uncertainties involved are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
(1) Uncertainty of estimation
The following are key assumptions regarding the future and other key sources of estimation uncertainty
at the balance sheet date:
-Impairment of financial instruments and contract assets: Note III 10 (6); Notes V 3 4 5 7 and 9;
-Impairment of goodwill: Note V 19;
-Impairment of non current assets other than financial assets and goodwill: Note III 20; Note V 15 16
1718;
-Fair value valuation of financial instruments: Note X
-Deferred income tax assets: Note III 29; Note V 21
-Product quality assurance: Note III 24; Note V 32
-Share-based payment: Note XII
60BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
III. Material accounting policies and significant estimates (continued)
35. Significant accounting estimates and judgements (continued)
(2) Judgments
In the process of applying the accounting policies of the Group the management has made the
following judgments that have a significant impact on the amounts recognized in the financial
statements:
-Significant judgments and assumptions regarding control over other entities: Note VIII 1 (1)
-Business Model and Contract Cash Flow Characteristics: Note 3 10 (2)
IV. Taxation
1. Main types of taxes and corresponding tax rates
Tax type ? Tax basis ? Tax rate
?????
Value-added ? According to tax laws output VAT is calculated on product 6%，9%，13%tax (VAT) sales and taxable services revenue. VAT payable is
determined by deducting input VAT from output VAT for the
period ?
Urban ? Based on VAT paid VAT exemption and offset for the period 7%，5%maintenanc
e and
constructio
n tax ?
Education ? Based on VAT paid VAT exemption and offset for the period 3%，2%surcharges
and local
education
surcharges ?
Corporate ? Based on taxable profits 15% - 30%
income tax ?
2. Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2024: 15%).Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatment No.28
corporate income tax for key advanced and high-tech enterprises supported by the State is applicable to
a preferential tax rate of 15%.On 30 November 2023 the Company renewed the High-tech Enterprise Certificate No.GR202311004505 which was entitled jointly by Beijing Municipal Science and Technology Commission
Beijing Municipal Financial Bureau Beijing Municipal Tax Service State Taxation Administration. The
Company is subject to corporate income tax rate of 15% since the date of certification with the valid
period of three years.
61BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
IV. Taxation (continued)
2. Corporate income tax (continued)
Except that 32 subsidiaries such as Beijing BOE Optoelectronics Technology Co. Ltd. are applicable to
high-tech enterprise tax preference 7 subsidiaries such as Chongqing BOE Display Lighting Co. Ltd.are applicable to encouraged enterprises in the Western Development and 15% corporate income tax
rate is applicable and overseas subsidiaries are applicable to local tax rate the tax rate applicable to
other enterprises of the Group is 25%.V. Notes to key items of the consolidated financial statements
1. Cash at bank and on hand
20252024
Cash on hand 1355467 1528764
Deposits with banks 71281904007 72723894478
Other monetary funds 939680701 1527201973
?
Total 72222940175 74252625215
Including: Total overseas deposits were equivalent to RMB 7892050802 (2024: RMB 6539879671).As at 31 December 2025 other monetary funds included deposits with securities companies by the
Group amounting to RMB 27859235 (2024: RMB 85440549) used as refundable deposits for stock
repurchase and payment for settlement with third party platform which can be withdrew on demand.The rest was restricted monetary funds of which RMB 205382358 (2024: RMB 595018149) was
pledged for issuance of bills payable and an equivalent to RMB 706439108 (2024: RMB 846743275)
was mainly deposits in commercial banks as security.
2. Financial assets held for trading
20252024
Financial assets at fair value through profit or loss
Structured deposit and wealth management products 736987067 2779828500
Investment in equity instruments 933561663 336607463
Total 1670548730 3116435963
62BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
3. Notes receivable
(1) Classification of Notes receivable
20252024
Bank acceptance bills 503795854 324870516
Commercial acceptance bills 10883873 13218845
514679727338089361
Less: Impairment allowance 32652 29578
Total 514647075 338059783
(2) The pledged notes receivable of the Group at the end of the year
2025
Bank acceptance bills 31919605
(3) Notes receivable endorsed or discounted but not yet matured on the balance sheet date
Amount derecognized Amount notderecognized
Bank acceptance bills - 360019857
As at 31 December 2025 the carrying amount of notes receivable of the Group that had been endorsed
to suppliers for settlement of accounts payable or discounted amounted to RMB 360019857 (2024:
RMB 209269910). The Group considers that it retains substantially all the risks and rewards incidental
to these notes receivable including the related default risk and therefore continues to recognise the
notes receivable and the related settled accounts payable in full.For the 31 December 2025 no notes receivable were reclassified to accounts receivable due to the
issuers’ inability to fulfill their obligations.
63BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
4. Accounts receivable
(1) An ageing analysis of accounts receivable is as follows
20252024
Within 1 year 31510471400 35533315993
1 to 2 years 499559227 493435884
2 to 3 years 258297769 228715579
Over 3 years 312417748 311630959
3258074614436567098415
Less: Provision for bad and doubtful debts 287743521 228899211
Total 32293002623 36338199204
The ageing is counted starting from the date when accounts receivable are recognised.
(2) Accounts receivable by provisioning method
2025
Provision for bad and
Book value doubtful debts Carrying amount
Amount Percentage Amount Percentage
(%)(%)
Individual assessment
- Customers with high credit risk 109174696 0.34 105473656 96.61 3701040
- Customers with low credit risk 475542607 1.46 - - 475542607
?
Collective assessment
- Customers with medium credit risk 31996028841 98.20 182269865 0.57 31813758976
Total 32580746144 100.00 287743521 0.88 32293002623
2024
Provision for bad and
Book value doubtful debts Carrying amount
Amount Percentage Amount Percentage
(%)(%)
Individual assessment
- Customers with high credit risk 57435774 0.16 33528866 58.38 23906908
- Customers with low credit risk 603585563 1.65 - - 603585563
?
Collective assessment
- Customers with medium credit risk 35906077078 98.19 195370345 0.54 35710706733
Total 36567098415 100.00 228899211 0.63 36338199204
64BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
4. Accounts receivable (continued)
(2) Accounts receivable by provisioning method (continued)
(a) Criteria for collective assessment and details
Customer group Basis
With special matters litigations or the deterioration
Customers with high credit risk of customers’ credit status
Banks insurance companies large state-owned
Customers with low credit risk enterprises and public institutions
Customers with medium credit risk Customers not included in groups above
(b) Assessment of ECLs on accounts receivable
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.
(3) Details of allowance for doubtful debts
Movements of provisions for bad and doubtful debts：
Opening Additions Recovery or Others Closing
balance during the reversal during balance
year the year
Customers with high
credit risk 33528866 11308876 (6104079) 66739993 105473656
Customers with medium
credit risk 195370345 89622479 (34332710) (68390249) 182269865
Total 228899211 100931355 (40436789) (1650256) 287743521
(4) Five largest accounts receivable and contract assets by debtor at the end of the year
The subtotal of the five largest accounts receivable and contract assets of the Group at the end of the
year is RMB12591208802 representing 38% of the total accounts receivable and contract assets.
65BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
5. Receivables financing
(1) Receivables financing by category
20252024
Bank acceptance bills 585672349 472537400
(2) Receivables financing that are endorsed or discounted but have not matured at the end
of the year:
Amount not
Amount derecognized derecognized
Bank acceptance bills 1214507608 -
As at the end of the year the carrying amount of the Group’s receivables financing assets endorsed to
suppliers for settlement of accounts payable or discounted amounted to RMB 1214507608 (2024:
RMB 683496249). Since substantially all the risks and rewards of these instruments have been
transferred to other parties the Group has fully derecognized such instruments and the corresponding
account payables in its books and recognized the related discount expenses accordingly.For the 31 December 2025 no receivables financing were reclassified to accounts receivable due to the
issuers’ inability to fulfill their obligations.
6. Prepayments
(1) The ageing analysis of prepayments is as follows:
20252024
Amount Percentage Amount Percentage
(%)(%)
Within 1 year 733396737 90 561764216 89
1 to 2 years 43028675 5 15640256 2
2 to 3 years 5809491 1 3945077 1
Over 3 years 28466561 4 53132675 8
??
Total 810701464 100 634482224 100
The ageing is counted starting from the date when prepayments are recognized.The total of the five largest prepayments of the Group at the end of the year is RMB 320046324
representing 39% of the total prepayments.
66BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
7. Other receivables
20252024
Dividends receivable 177912109 55028131
Other receivables 644881791 757843390
Total 822793900 812871521
Other receivables
(1) The ageing analysis of the Group’s other receivables is as follows
20252024
Within 1 year 225200020 357915532
1 to 2 years 124947335 118793438
2 to 3 years 16658899 19227857
Over 3 years 299932879 280771308
666739133776708135
Less: Provision for bad and doubtful debts 21857342 18864745
?
Total 644881791 757843390
The ageing is counted starting from the date when other receivables are recognised.
(2) The other receivables categorised by nature
20252024
Margins and deposits 338508142 394212834
Others 328230991 382495301
Sub-total 666739133 776708135
Less: Provision for bad and doubtful debts 21857342 18864745
Total 644881791 757843390
67BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
7. Other receivables (continued)
Others receivables (continued)
(3) Other receivables by provisioning method
2025
Book value Provision for bad and Carryingdoubtful debts amount
Amount Percentage Amount Percentage
(%)(%)
Individual assessment
- Amounts with high
credit risk 21793945 3.27 21118108 96.90 675837
- Amounts with low
credit risk 569523880 85.42 - - 569523880
?
Collective assessment
- Amounts with medium
credit risk 75421308 11.31 739234 0.98 74682074
Total 666739133 100.00 21857342 3.28 644881791
2024
Book value Provision for bad and Carryingdoubtful debts amount
Amount Percentage Amount Percentage
(%)(%)
Individual assessment
- Amounts with high
credit risk 18297151 2.36 18297151 100.00 -
- Amounts with low
credit risk 689364770 88.75 - - 689364770
?
Collective assessment
- Amounts with medium
credit risk 69046214 8.89 567594 0.82 68478620
Total 776708135 100.00 18864745 2.43 757843390
68BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
7. Other receivables (continued)
Others receivables (continued)
(3) Other receivables by provisioning method(continued)
The movements of the provision for bad debts provided for other receivables based on 12-month ECL
and lifetime ECL respectively are as follows:
Stage 1 Stage 2 Stage 3 Total
Lifetime ECL
12-month (not yet credit- Lifetime ECL
ECL impaired) (credit-impaired)
Balance at the
beginning of the
year 562393 5201 18297151 18864745
Stage transfer of
beginning
balance (43613) 1402 42211 -
Additions during
the year 388160 10813 2812465 3211438
Reversals during
the year (184921) (201) (33719) (218841)
Balance at the end
of the year 722019 17215 21118108 21857342
(4) Five largest other receivables by debtor at the end of the year
As of 31 December 2025 the top five balances of other receivables of the Group amounted to RMB
438387325 representing 65.75% of the total year-end balance of other receivables. These mainly
comprise security deposits and receivables from equity transfers and after assessment no allowance
for doubtful accounts is considered necessary.
69BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
8. Inventories
(1) The Group’s inventories by category
20252024
Book value Provision for Carrying amount Book value Provision for Carrying amount
impairment of impairment of
inventories/ inventories/
Provision for Provision for
impairment of impairment of
costs to fulfil a costs to fulfil a
contract with a contract with a
customer customer
Raw materials 10127483636 1491552605 8635931031 8973042046 1763382653 7209659393
Work in
progress 7441707138 1625004821 5816702317 5803359611 1104535176 4698824435
Finished
goods 15780958702 2878956689 12902002013 15066294957 3954314368 11111980589
Consumables 207469654 - 207469654 209462591 677753 208784838
Costs to fulfil a
contract with a
customer 186421121 - 186421121 84215137 - 84215137
?
Total 33744040251 5995514115 27748526136 30136374342 6822909950 23313464392
The Group’s year-end balance of inventories included no capitalised borrowing costs (2024: Nil).At the year end no inventories were pledged as security by the Group (2024: Nil).
(2) An analysis of provision for impairment of inventories of the Group is as follows
Balance at the Additions during the Reductions during Balance at the
beginning of the year year the year end of the year
Raw materials 1763382653 750500225 (1022330273) 1491552605
Work in progress 1104535176 1749909698 (1229440053) 1625004821
Finished goods 3954314368 3197964847 (4273322526) 2878956689
Consumables 677753 - (677753) -
??
Total 6822909950 5698374770 (6525770605) 5995514115
70BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
9. Contract assets
20252024
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Contract
assets 398590711 5508809 393081902 151647876 776390 150871486
Changes in provision for impairment of contract assets are as follows:
Opening balance Additions Reversals Written-off Closing
during the during the during the balance
yea year year
Provision for bad and
doubtful debts 776390 5505272 (710077) (62776) 5508809
Based on the Group’s historical experience there are no significant differences in the incidence of
losses among different customer groups. Accordingly the Group treats all contract assets as a single
portfolio and recognizes impairment provisions based on collective assessment of credit risk
characteristics.As at 31 December 2025 the carrying amount of contract assets subject to collective impairment based
on credit risk characteristics amounted to RMB 398590711 (2024: RMB 151647876) with impairment
provisions of RMB 5508809 (2024: RMB 776390) representing an impairment ratio of 1.38%
(December 31 2024: 0.51%).
10. Other current assets
20252024
VAT on tax credits 3482259330 2960415267
Input tax to be verified or deducted 614835747 503287770
Right to recover returned goods 193068473 166513664
Prepaid income taxes 144329925 112183664
Others 375328391 211607620
??
Total 4809821866 3954007985
71BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
11. Long-term equity investments
Balance at the Balance at the Balance at the end
beginning of the beginning of of the year Balance at the
year the year Movements during the year end of the year
Carrying amount Provision for Additions during Reductions during Investment (loss) Other Other Declared Provision for Others Carrying amount Provision for
impairment the year the year /income under comprehensive equity distribution of impairment impairment
equity method income movements cash dividends
Joint ventures 404709071 - - - (34772030) - - - - - 369937041 -
Associates
Vusion Group SA
(formely named“SES ImagotagSA Co. Ltd.”) 4890298637 - - (1092038165) 118386682 55898192 216894790 - - 129175962 4318616098 -
Erdos BOE Energy
Investment Co.Ltd. 1027841294 777858312 - - (2989462) - - - - - 1024851832 777858312
Tianjin Xianzhilian
Investment
Centre (Limited
Partnership) 1689914532 - - (175055746) 64525979 - - (2286665) - - 1577098100 -
Beijing
Xindongneng
Investment Fund
(Limited
Partnership) 922008650 - - - 8470345 (5384695) - (205607242) - - 719487058 -
Others 4598499118 396533969 6164630785 - (72446227) 44822948 75012648 (184299836) - - 10626219436 390188191
?
Sub-total 13128562231 1174392281 6164630785 (1267093911) 115947317 95336445 291907438 (392193743) - 129175962 18266272524 1168046503
?
?Total 13533271302 1174392281 6164630785 (1267093911) 81175287 95336445 291907438 (392193743) - 129175962 18636209565 1168046503
As at 31 December 2025 certain associates invested by the Group suffered loss and the Group did not have an obligation to assume additional losses. Therefore the Group
discontinues recognising its share of further losses after the carrying amount of long-term equity investment is reduced to zero the accumulated unrecognised investment
losses amounted to RMB12057070 (2024: RMB11456900).For the year ended 31 December 2025 foreign currency translation accounted for the change in the provision for impairment of the Group’s long-term equity investments.
72BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
12. Other equity investments
(1) Investments in other equity instruments
Movements during the year
Balance at the beginning of Decrease in investments Gains or losses recognised in Foreign currency Balance at the end Dividend Accumulated gains
the year other comprehensive income financial statement of the year income or losses
during the year translation recognised recognised in other
(“-” for losses) for the year comprehensive
income
(“-” for losses)
Listed equity instrument
investment 257558368 (12610162) 93589635 - (5439501) 333098340 10925263 (42548731)
Unlisted equity instruments
investment 183813447 (1746310) 25479196 - (4427481) 203118852 25596072 (81388212)
?
Total 441371815 (14356472) 119068831 (9866982) 536217192 36521335 (123936943)
(2) Investments derecognised during the year
Accumulated gains transferred to retained
Fair value at derecognition earnings due to derecognition Reason for derecognition
Listed equity instrument investment 12610162 5209080 Transfers out from disposal
Unlisted equity instruments investment 1746310 179779 Transfers out from disposal
Total 14356472 5388859
73BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
13. Other non-current financial assets
20252024
Financial assets at fair value through profit or loss 2874055003 2735680042
14. Investment properties
Investment property measured using the cost model
Plant and buildings Land use Total
rights
Cost
Balance at the beginning of the year 1708322341 785342177 2493664518
Transfers from construction in progress 503728513 - 503728513
Others (17311456) - (17311456)
Balance at the end of the year 2194739398 785342177 2980081575
Accumulated depreciation
Balance at the beginning of the year 530220566 212254212 742474778
Additions during the year 74402092 16587801 90989893
Balance at the end of the year 604622658 228842013 833464671
Carrying amount
At the end of the year 1590116740 556500164 2146616904
?
At the beginning of the year 1178101775 573087965 1751189740
Information regarding the Group’s investment properties pledged as collateral is set out in detail in Note
V.23.
74BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
15. Fixed assets
Plant and buildings ? Equipment Others Total
Cost
Balance at the beginning of
the year 79261118702 345389359918 17406622698 442057101318
Purchase 48274483 858350949 2053538603 2960164035
Transfers from construction
in progress 2907865561 11864792911 1294194748 16066853220
Transfers to construction in
progress - (362361927) (11078561) (373440488)
Disposals or written-offs
during the year (30842317) (1022636273) (368493337) (1421971927)
Written-down against
government interest
discounts - (314194) (9953) (324147)
Others (7354931) (10091426) (4556323) (22002680)
Balance at the end of the
year 82179061498 356717099958 20370217875 459266379331
Accumulated depreciation
Balance at the beginning of
the year 14105527564 209021095996 11970845588 235097469148
Additions during the year 2288458185 32491936604 2388540832 37168935621
Transfers to construction in
progress - (243033721) (7229326) (250263047)
Disposals or written-offs
during the year (18683051) (855594471) (328608331) (1202885853)
Others (117084) 659494 (2164985) (1622575)
Balance at the end of the
year 16375185614 240415063902 14021383778 270811633294
Provision for impairment
Balance at the beginning of
the year 4203745 1812759153 238249761 2055212659
Additions during the year 2154807 195778949 10413384 208347140
Transfers to construction in
progress - (29555828) (455427) (30011255)
Disposals or written-offs
during the year - (59900202) (22374157) (82274359)
Others 293205 3883883 (4378) 4172710
Balance at the end of the
year 6651757 1922965955 225829183 2155446895
Carrying amount
At the end of the year 65797224127 114379070101 6123004914 186299299142
?
At the beginning of the year 65151387393 134555504769 5197527349 204904419511
The Group’s fixed assets held for operating leases include buildings and structures machinery and
equipment.The recoverable amount of the relevant asset group is determined by reference to its fair value less
costs of disposal and the present value of its expected future cash flows. The cash flow forecast period
is determined based on the estimated remaining useful life of the asset the cash flows over the
estimated remaining useful life of the asset are determined based on projected market conditions and
the pre-tax discount rate is determined with reference to comparable companies and the relevant capital
structure.As at 31 December 2025 fixed assets pending certificates of ownership totalled RMB3536731228 and
certificates of ownership is still being processed.
75BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
16. Construction in progress
(1) Analysis of the Group’s construction in progress is as follows
20252024
Book value Provision for Face value Book value Provision for Face value
impairment impairment
BOE 8.6th-Generation AMOLED Production Line Project 26932073883 - 26932073883 6998733015 - 6998733015
BOE's 6th generation new semiconductor display device
production line project 16275532815 - 16275532815 10629806006 - 10629806006
Others 9798723344 63205922 9735517422 12607947968 77470892 12530477076
?
Total 53006330042 63205922 52943124120 30236486989 77470892 30159016097
Information regarding the Group’s construction in progress pledged as collateral is set out in detail in Note V.23.
76BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
16. Construction in progress (continued)
(2) Movements of major construction projects in progress during the year
Budget Balance at the Additions during the Transfers to fixed a Balance at the end of Sources of Percentage
beginning of the year year ssets the year funding of actual
cost to
budget (%)
?
BOE 8.6th-Generation AMOLED Production Line Self-raised funds
Project 63000000000 6998733015 20880757234 (947416366) 26932073883 and borrowings 44.75
BOE's 6th generation new semiconductor display Self-raised funds
device production line project 29000000000 10629806006 5646297606 (570797) 16275532815 and borrowings 67.58
Total 92000000000 17628539021 26527054840 (947987163) 43207606698
Accumulated
capitalised interest Interest capitalised
Interest rate for
capitalisation in the
at the end of the in the current year current year (%)
year
BOE 8.6th-Generation AMOLED Production Line Project 107255000 107255000 2.85
BOE's 6th generation new semiconductor display device production line project 150804218 60587809 2.35
Total 258059218 167842809
77BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
17. Right-of-use assets
Plant and buildings ? Equipment Others Total
Cost
Balance at the beginning
of the year 1075962333 15913107 190446902 1282322342
Additions during the year 189445223 23544055 3321873 216311151
Reductions during the
year (41233160) (2277085) - (43510245)
Translation differences 22324695 31985 79279 22435959
?
Balance at the end of the
year 1246499091 37212062 193848054 1477559207
Less:Accumulated
depreciation
Balance at the beginning
of the year 477999532 10683598 39230932 527914062
Charge for the year 134136929 9168445 11080777 154386151
Reductions during the
year (16562393) (2009172) - (18571565)
Translation differences 6482642 29039 28769 6540450
?
Balance at the end of the
year 602056710 17871910 50340478 670269098
Carrying amount
At the end of the year 644442381 19340152 143507576 807290109
?
At the beginning of the
year 597962801 5229509 151215970 754408280
78BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
18. Intangible assets
Land use rights Patent and Computer Others Total
proprietary software
technology
Cost
Balance at the
beginning of the
year 8330914335 6386074855 2540120486 816647150 18073756826
Purchases 21470416 2195067434 130877137 2966041 2350381028
Transfers from
construction in
progress 711755 - 225562667 - 226274422
Transfers from
development costs - 132007804 - - 132007804
Disposals - - (17352164) (3212714) (20564878)
Translation
differences (8327470) 115219 (677303) (853860) (9743414)
Balance at the end
of the year 8344769036 8713265312 2878530823 815546617 20752111788
Accumulated
depreciation
Balance at the
beginning of the
year 1043218572 3710878801 1636822609 393725976 6784645958
Charge for the
year 215593052 629445715 249811013 55819936 1150669716
Reductions during
the year - - (4347851) (1067119) (5414970)
Translation
differences (236180) 115219 (215652) (618172) (954785)
Balance at the end
of the year 1258575444 4340439735 1882070119 447860621 7928945919
Provision for
impairment
Balance at the
beginning and end
of the year - 25647674 - - 25647674
Carrying amount
At the end of the
year 7086193592 4347177903 996460704 367685996 12797518195
?
At the beginning of
the year 7287695763 2649548380 903297877 422921174 11263463194
Information regarding the Group’s Intangible assets pledged as collateral is set out in detail in Note
V.23.
79BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
19. Goodwill
(1) Goodwill
Opening and
closing balances
Chengdu BOE Display Sci-tech Co. Ltd. (“Chengdu Display Sci-tech”) 537038971
Nanjing BOE Display Technology Co. Ltd. (“Nanjing Display Technology”) 155714415
BOE Healthcare Investment & Management Co. Ltd. 146460790
Beijing Yinghe Century Co. Ltd. 42940434
BOE HC SemiTek Corporation (“HC SemiTek”) 29596088
Beijing Zhonghe Ultra High Definition Collaborative Technology Center Co. Ltd 14285847
K-Tronics (Suzhou) technology Co. Ltd. 8562464
Beijing BOE Optoelectronics Technology Co. Ltd. 4423876
?
Total 939022885
(2) Provision for impairment
Opening and
closing balances
Chengdu Display Sci-tech 147755754
BOE Healthcare Investment & Management Co. Ltd. 133268233
Beijing BOE Optoelectronics Technology Co. Ltd. 4423876
?
Total 285447863
The recoverable amount of the above-mentioned goodwill related asset group is determined using the
method of estimating the present value of future cash flows. When estimating the present value of cash
flows the cash flows for the next 5 years are predicted based on market conditions. After 5 years the
cash flows for all years remain stable with a sustainable growth rate of zero; The pre tax discount rate is
determined based on comparable companies and related capital structures ranging from 8% to 12%.
80BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
20. Long-term prepaid expenses
Balance at the ? Additions during ? Reductions during Balance at the end
beginning of the the year the year ? of the year
year
Technology royalty
fees prepaid 288093493 25556202 (70966130) 242683565
Others 310351430 146506848 (99940270) 356918008
?
Total 598444923 172063050 (170906400) 599601573
21. Deferred tax assets and liabilities
(1) Un-offset deferred tax assets
20252024
Deductible Deferred tax Deductible Deferred tax
temporary assets temporary assets
differences differences
Accumulated
losses 3858464946 592660713 3787640423 586142140
Provision for
impairment of
assets 1193828451 202710490 813547069 139856263
Lease liabilities 863232852 209142446 502310310 110285658
Others 4638706196 727001284 1298567979 206999637
??
Sub-total 10554232445 1731514933 6402065781 1043283698
(2) Un-offset deferred tax liabilities
20252024
Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Revaluation due to
business
combinations
involving entities not
under common
control and
Depreciation of fixed
assets 6405953955 1125382911 6973869010 1143270888
Long-term equity
investments 1375231979 257307379 1487863171 282505936
Right-of-use assets 832344471 201781949 503216511 101062209
Others 2205665653 427904353 511688145 112355137
??
Sub-total 10819196058 2012376592 9476636837 1639194170
81BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
21. Deferred tax assets and liabilities (continued)
(3) Deferred tax assets or liabilities presented at the net amount after offsetting
20252024
Amount offset Balance after Amount offset Balance after
offsetting offsetting
Deferred tax assets 877481895 854033038 348395423 694888275
Deferred tax liabilities 877481895 1134894697 348395423 1290798747
(4) Details of unrecognised deferred tax assets
20252024
Deductible temporary differences 24246481675 23454408247
Deductible tax losses 74771356495 66975969671
??
Total 99017838170 90430377918
As at 31 December 2025 the accumulated deductible temporary differences are mainly subsidiaries’
impairment provisions of assets and accrual of expenses. Due to the uncertainty that there will be
sufficient taxable income to cover these deductible differences in future periods the deferred income tax
assets were not recognised in consideration of prudence.
(5) Expiration of deductible tax losses for unrecognised deferred tax assets
20252024
2025-637426137
20269986536131070157082
202710944020701431984146
202832758141533433591756
202967085156396862197069
203061366106644250636379
2031 and subsequent years 56054666567 48528565336
Non-fixed term 502693789 761411766
?
Total 74771356495 66975969671
82BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
22. Other non-current assets
20252024
Book value Provision for Carrying amount Book value Provision for Carrying amount
impairment impairment
Certificates of deposits
and time deposits 10908234286 - 10908234286 13348874212 - 13348874212
Delay in levying value-
added tax on
imported equipment 2455616492 - 2455616492 - - -
Prepayment for
construction and
purchase of fixed
assets 828430843 - 828430843 4518996586 - 4518996586
Others 1038977292 - 1038977292 1123351747 - 1123351747
??
Total 15231258913 - 15231258913 18991222545 - 18991222545
23. Assets with restrictive ownership titles or right of use
2025
Book value Carrying amount Restriction Details of restriction
Cash at bank and
on hand 911821466 911821466 Note V.1 Note V.1
Endorsed with resource
and pledged for the
Notes receivable 391939462 391939462 Pledged issuance of bills payable
Accounts
receivable 473936004 467691850 Pledged Pledged as borrowing
Investment
properties 137198683 127541800 Mortgaged As collateral for loans
Fixed assets 194315579962 96417684719 Mortgaged As collateral for loans
Construction in
progress 16333097942 16333097942 Mortgaged As collateral for loans
Intangible assets 1869141730 1581562962 Mortgaged As collateral for loans
Total 214432715249 116231340201
83BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
23. Assets with restrictive ownership titles or right of use (continued)
2024
Book value Carrying amount Restriction Details of restriction
Cash at bank and on hand 1441761424 1441761424 Note V.1 Note V.1
Endorsed with resource
and pledged for the
Notes receivable 246112676 246112676 Pledged? issuance of bills payable
Investment properties 154510137 154510137 Mortgaged? Mortgaged as borrowing
Fixed assets 237348939293 126896353640 Mortgaged? Mortgaged as borrowing
Construction in progress 11473130082 11473130082 Mortgaged? Mortgaged as borrowing
Intangible assets 2264095450 1954974874 Mortgaged? Mortgaged as borrowing
Other non-current assets 157708950 157708950 Others? Others
??????
Total 253086258012 142324551783 ?? ?
The amortization amount of intangible assets pledged as collateral in 2025 is RMB 53096009 (2024：
RMB 60476811).
24. Short-term borrowings
20252024
Unsecured borrowings 2820827279 292172026
Guaranteed borrowings 472623423 1027353266
Pledge borrowings 361570735 243791874
?
Total 3655021437 1563317166
As at 31 December 2025 no short-term loan was past due (2024: Nil).
25. Notes payable
20252024
Bank acceptance notes 1380128604 1390526726
Commercial acceptance notes - 9031243
Total 1380128604 1399557969
There is no due but unpaid bill payable at the end of the year. The bills above are all due within one
year.
84BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
26. Accounts payable
20252024
Sales payments payable 37242292283 36713498406
As at 31 December 2025 the Group had no significant accounts payable with ageing of more than one
year.As at December 2025 amounts received by suppliers from commercial banks through platform services
included in the Group’s accounts payable amounted to RMB 857558695.Such platform services are provided under cooperation between the Group and commercial banks
under which suppliers may voluntarily choose to receive payment from commercial banks in advance.The payment terms of the Group’s payables remain unchanged under this arrangement.
27. Contract liabilities
20252024
Sale of goods 2223451538 2083836158
Contract liabilities primarily relate to the Group’s advances from goods purchase and sale contracts. The
Group receives a certain proportion of advances as agreed in contract when entering into the contract
with customers. The revenue related to the contracts will be recognised when the Group satisfies its
performance obligations
As at 31 December 2025 the Group had no significant contract liabilities with ageing of more than one
year.For the year 2025 the amount of revenue recognized by the Group that was derived from the beginning
carrying amount of contract liabilities amounted to RMB 1871844676 (2024：RMB 2779202988).
28. Employee benefits payable
(1) Employee benefits payable
Balance at the
beginning of the Accrued during the Decrease during Balance at the
year year the year end of the year
Short-term employee benefits 4028727032 19514838498 (20013981927) 3529583603
Post-employment benefits
(defined contribution plans) 45247997 2020695949 (2016867123) 49076823
Termination benefits 2033359 33794507 (29663909) 6163957
Total 4076008388 21569328954 (22060512959) 3584824383
85BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
28. Employee benefits payable (continued)
(2) Short-term employee benefits
Balance at the
beginning of Accrued during Decrease during Balance at the
the year the year the year end of the year
Salaries bonuses and
allowances 2710530885 15586552008 (16280054391) 2017028502
Staff welfare - 1324997333 (1324997333) -
Social insurance 34440204 1013311843 (1010362928) 37389119
Medical and maternity
insurance 32300536 945719302 (943271031) 34748807
Work-related injury
insurance 2139668 67592541 (67091897) 2640312
Housing fund 24714192 1163370130 (1155842318) 32242004
Labour union fee staff and
workers’ education fee 1236499162 422130553 (240633251) 1417996464
Other short-term employee
benefits 22542589 4476631 (2091706) 24927514
?
Total 4028727032 19514838498 (20013981927) 3529583603
(3) Post-employment benefits – defined contribution plans
Balance at the
beginning of the Accrued during Decrease during Balance at the
year the year the year end of the year
Basic pension insurance 27887452 1814988107 (1812632971) 30242588
Unemployment insurance 928073 61389090 (61394238) 922925
Annuity 16432472 144318752 (142839914) 17911310
?
Total 45247997 2020695949 (2016867123) 49076823
29. Taxes and surcharges payable
20252024
Corporate income tax 505006247 661144508
Urban construction tax 280739481 243831131
Education surcharges and local education
surcharges 200512976 174228317
Value-added tax (VAT) 143339519 314302588
Individual income tax 48931710 42608326
Others 140685599 140491726
?
Total 1319215532 1576606596
86BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
30. Other payables
20252024
Dividends payable 40884271 42861753
Other payables 20848554111 20785100817
Total 20889438382 20827962570
Dividends payable
20252024
Dividends payable on ordinary shares 40884271 42861753
Other payables
20252024
Projects and equipment 15453753037 15590702070
Fund transaction (Note) 3288656028 3236033067
Margins and deposits 640983384 581371160
Equity transfer consideration 492419483 -
Repurchase obligation of restricted shares 16947000 228786210
Others 955795179 1148208310
?
Total 20848554111 20785100817
The Group’s significant other payables aged over one year are payables of projects and equipment.Note: The Group's fund transaction payables as at 31 December 2025 were amounts and interest due
to original controlling shareholders of Nanjing Display Technology and Chengdu Display
Technology with the interest rates of 2.175% and 0% respectively.
31. Current portion of non-current liabilities
20252024
Long-term borrowings due within one year(V.33) 25492734175 42892065934
Bonds payable due within one year(V.34) 103778356 -
Lease liabilities due within one year(V.35) 156696306 147060968
Long-term payables due within one year(V.36) 917104082 22944576
Other non-current liabilities due within one
year(V.39) - 444468133
?
Total 26670312919 43506539611
87BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
32. Other current liabilities
20252024
Warranty provisions 3064852352 2508912990
Others 1284294548 886058150
?
Total 4349146900 3394971140
The other current liabilities of the Group were warranty provisions. The warranty provisions mainly relate
to the expected after-sales repair warranty to the customers. The provision is estimated by the
management based on historical claim experience and current actual sales outcomes.
33. Long-term borrowings
20252024
Unsecured borrowings 67800359549 79443787211
Mortgage borrowings 55206407133 60149714863
Guaranteed borrowings 3472916043 3528124014
Pledged borrowings 589624923 702831586
Sub-total 127069307648 143824457674
Less: Long-term borrowings due within one year
(V.31) 25492734175 42892065934
Total 101576573473 100932391740
As at 31 December 2025， The annual interest rate of the above borrowings is 1.20% to 5.50%
(December 31 2024: 1.20% to 6.37%).
34. Bonds payable
20252024
Bonds payable 11072546408 -
Less: Bonds payable due within one year (V.31) 103778356 -
Total 10968768052 -
88BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
34. Bonds payable (continued)
(1) Analysis of the Group’s Bonds payable is as follows
Decem Accrued Defa
Coupon ber 31 Issued in interest as Discount December 31 ult or
Par value rate(%) Issue date Bond term Issued amount 2024 current period per par value premium 2025 not
25 BOE MTN001 2000000000 2.23 2025/4/23 10 years 2000000000 - 2000000000 30792329 (5617377) 2025174952 NO
25 BOE MTN002 1000000000 2.23 2025/5/13 10 years 1000000000 - 1000000000 14174247 (2895537) 1011278710 NO
25 BOE MTN003 1000000000 1.77 2025/6/24 3 years 1000000000 - 1000000000 9213699 (2470296) 1006743403 NO
25 BOE MTN004 1000000000 1.70 2025/7/10 5 years 1000000000 - 1000000000 8104109 (2617655) 1005486454 NO
25 BOE MTN005 1000000000 1.70 2025/7/24 3 years 1000000000 - 1000000000 7452055 (2469247) 1004982808 NO
25 BOE MTN006 1000000000 1.79 2025/8/8 3 years 1000000000 - 1000000000 7012876 (2513541) 1004499335 NO
25BOEK1 2000000000 1.94 2025/6/13 5 years 2000000000 - 2000000000 21472876 (6913542) 2014559334 NO
25BOEK2 1000000000 1.95 2025/11/6 5 years 1000000000 - 1000000000 2991781 (2884110) 1000107671 NO
25BOEK3 1000000000 1.95 2025/11/14 5 years 1000000000 - 1000000000 2564384 (2850643) 999713741 NO
Total 11000000000 - 11000000000 103778356 (31231948) 11072546408
35. Lease liabilities
20252024
Long-term lease liabilities 844458972 778479954
Less: Lease liabilities due within one year(V.31) 156696306 147060968
Total 687762666 631418986
In 2025 as a lessee the Group elected the practical expedient for short-term leases leases of low-
value assets and sub-leased right-of-use assets and the related income and expenses were immaterial.
36. Long-term payables
20252024
Long-term payables 3265140355 144022447
Less: Long-term payables due within one year(V.31) 917104082 22944576
Total 2348036273 121077871
89BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
37. Provisions
Balance at the Accrued during Decrease during Balance at the
beginning of the the year the year end of the year
year
Outstanding litigation 1652566 - 1652566 -
38. Deferred income
Balance at the
beginning of the Additions during
Amounts
the year recognised in Other changes
Balance at the
year other income end of the year
Related to
assets 3579152245 3920678415 (1254718699) (103249206) 6141862755
Related to
income 965465686 293699530 (602234294) (760467) 656170455
?
Total 4544617931 4214377945 (1856952993) (104009673) 6798033210
39. Other non-current liabilities
20252024
Contribution of non-controlling interests with
redemption provisions 2083780538 2491844290
Deferred VAT on imported equipment 1555616492 -
Others 357505637 601446602
Sub-total 3996902667 3093290892
Less: Other non-current liabilities due within one
year(V.31) - 444468133
Total 3996902667 2648822759
The contribution of non-controlling interests with redemption provisions is mainly due to the redemption
obligation of the Company to the non-controlling interests of Fuzhou BOE. The Company recognises the
above non-controlling interests contribution as a financial liability which is subsequently measured at the
cost of amortisation and will be repurchased according to the agreed price and time.
90BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
40. Share capital
Balance at the beginning Cancellation of treasury Balance at the end of
of the year shares the year
Total shares 37645016203 (231135739) 37413880464
During the year ended 31 December 2025 the Company cancelled 231135739 shares of treasury
shares at China Securities Depository and Clearing Corporation Limited Shenzhen Branch. After the
completion of the cancellation procedures the total shares will be changed from 37645016203 shares
to 37413880464 shares.
41. Other equity instruments
Financial instruments (including perpetual bonds) that remain outstanding are set out as
follows:
Balance at the beginning of Decrease during Balance at the
the year the year Changes in interest end of the year
Additions
Carrying Carrying during the Paid Carrying
Quantity amount Quantity amount year during the year Quantity amount
22BOEY1 20000000 2043402946 (20000000) (1989320755) 15917809 (70000000) - -
42. Capital reserves
Balance at the
beginning of the Additions during Decrease during Balance at the end
year the year the year of the year
Share premium 50268947500 - (715417371) 49553530129
Other capital reserves 1938626206 367805387 - 2306431593
Total 52207573706 367805387 (715417371) 51859961722
43. Treasury shares
Balance at the
beginning of the Accrued during Decrease during Balance at the
Item year ? the year ? the year ? end of the year
????????
Treasury shares 1216490683 1499835264 (1216490683 ) 1499835264
In 2025 pursuant to the resolutions of the Company's 11th Board of Directors' 4th meeting and 11th
Supervisory Committee's 2nd meeting held on 18 April 2025 the Company approved the Proposals on
Changing the Purpose and Cancellation of Repurchased Shares the Proposal of Repurchase and
Cancellation of Certain Restricted Shares and the Proposal on the Fulfilment of the Conditions for the
Release of Restricted Shares Granted under the 2020 Share Option and Restricted Share Incentive
Plan during the Third Release Period of the Restricted Shares and the Fulfilment of the Conditions for
the Third Exercise Period of the First Exercise Period of the Initial Grant of Share Options. Accordingly
the Company retired 228882900 treasury shares held at the beginning of the year and completed the
vesting and retirement of restricted shares totaling 91349379 shares.
91BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
44. Other comprehensive income
Movements during the year
Balance at the end Before-tax Less: Income Less: Amount Net-of-tax Net-of-tax Less: Transfer Balance at the end
of previous year amount tax expenses transferred amount amount of other of the year
attributable to from other attributable to attributable comprehensive attributable to
shareholders of the comprehensive shareholders to non- income to shareholders of the
Company income to profit of the controlling retained Company
or loss Company interests earnings
?
Items that will not be reclassified to profit or
loss (372167398) 158507084 2865856 - 133910381 21730847 2857173 (241114190)
Including: Other comprehensive income
recognised under equity method (136978893) 39438253 576931 - 38861322 - - (98117571)
Changes in fair value of investments in
other equity instruments (235188505) 119068831 2288925 - 95049059 21730847 2857173 (142996619)
Items that may be reclassified to profit or
loss (799656466) 268975640 - 8533319 274200620 (13758299) - (525455846)
Including: Other comprehensive income
recognised under equity method (118842) 55898192 - 8533319 47364873 - - 47246031
Translation differences arising from
translation of foreign currency financial
statements (799537624) 213077448 - - 226835747 (13758299) - (572701877)
Total (1171823864) 427482724 2865856 8533319 408111001 7972548 2857173 (766570036)
92BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
45. Surplus reserves
Balance at the beginning Additions during Balance at the end
of the year the year of the year
Statutory surplus reserve 3590083170 156075845 3746159015
Discretionary surplus reserve 289671309 - 289671309
?
Total 3879754479 156075845 4035830324
According to the provisions of the Company Law and the Company’s Articles of Association the
Company appropriates 10% of the profit to the statutory surplus reserves. Where the accumulated
amount of the surplus reserves reaches 50% or more of the Company’s registered capital further
appropriation is not required.
46. Retained earnings
20252024
Retained earnings at the beginning of the year 39410894857 35579576607
Net profits for the year attributable to shareholders of the Company 5856966754 5323248974
Less: Appropriation for statutory surplus reserve 156075845 307923188
Interest on holders of other equity instruments 15917809 70000000
Dividends to ordinary shares 1870694023 1129073743
Transfer of other comprehensive income to retained earnings (2857173) (15066207)
?
Retained earnings at the end of the year 43228031107 39410894857
93BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
47. Operating income and operating costs
(1) Operating income and operating costs
20252024
Income Cost Income Cost
Principal activities 198939422844 167864572106 193576127325 164101410809
Other operating
activities 5650800044 4737471905 4804478336 4120538764
??
Total 204590222888 172602044011 198380605661 168221949573
Including: Revenue from
contracts with
customers 203856384395 172481660922 197588200093 168118876665
Other income 733838493 120383089 792405568 103072908
(2) Breakdown information of operating income
Information on income of principal activities has been included in Note XV.
(3) Performance obligations
The main activity for the Group to generate revenue is the sale of goods which is a performance
obligation fulfilled at a certain point in time. 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 received or when they are received by the carrier. Revenue of
sale of goods is recognised at that point in time.For the transfer of goods with a right of return revenue is recognised to the extent that it is highly
probable that a significant reversal in the amount of cumulative revenue recognised will not occur.Therefore the amount of revenue recognised is adjusted for the amount expected to be returned which
are estimated based on the historical data. The Group recognises a refund liability based on the amount
expected to be returned. An asset is initially measured by reference to the former carrying amount of 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
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 returns. The above assets and liabilities are
adjusted accordingly.
(4) Relating to ordinary activities
Revenue and the related costs of the Group's sales before intended use are as follows:
20252024
Operating income 888691487 852474207
Operating costs 950313161 820315992
94BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
48. Taxes and surcharges
20252024
Property tax 702521703 653423403
Urban maintenance and construction tax 250665161 214651232
Stamp duty 198094378 180996591
Education surcharges and local education
surcharges 179388273 153632475
Land use tax 73499453 70077226
Others 21383377 23365969
?
Total 1425552345 1296146896
49. Selling expenses
20252024
Staff costs and daily expenses 1624822483 1524547555
Others 547800436 470747097
?
Total 2172622919 1995294652
50. Administrative expenses
20252024
Staff costs and daily expenses 3512116851 3781534288
Depreciation and amortisation 1217805235 1062279681
Others 1166419750 1374858161
?
Total 5896341836 6218672130
51. Research and development expenses
20252024
Staff costs and daily expenses 5710005753 5570963161
Material and test expenses 3586849188 3331371532
Depreciation and amortisation 2187062573 2201837134
Others 2352753364 2019137404
?
Total 13836670878 13123309231
95BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
52. Finance expenses
20252024
Interest expense from loans and lease liabilities 3501308472 4335040880
Less: Interest income from bank deposits 1828272699 2285948395
Borrowing costs capitalised 209166239 301781000
Other financial expenses 372777268 (522924115)
Total 1836646802 1224387370
The interest rates per annum at which borrowing costs were capitalised by the Group was 2.35% ~
3.46% for the year.
The capitalized amount of borrowing costs has been included in the construction in progress.
53. Other income
20252024
Government grants related to assets 1254718699 576945669
Government grants related to income 1154981122 1220232805
Weighted deduction of input VAT 485021852 462974895
Others 20707574 28324197
?
Total 2915429247 2288477566
The amount of government subsidies related to income received by the Group in 2025 and directly
included in other income was RMB552746828.
54. Investment income/loss
20252024
Income/(loss) from long-term equity investments
accounted for using the equity method 81175287 (752455175)
Investment income from disposal of long-term equity
investments 457415008 52696519
Investment income from disposal of financial assets
held for trading 58724731 48676748
Dividend income from investments in other equity
instruments 36521335 33201155
Including: Dividend income from investments in other
equity instruments held at the balance sheet date 36521335 33201155
Others 20130316 76980100
?
Total 653966677 (540900653)
96BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
55. Fair value gains
20252024
Financial assets at fair value through profit or loss 431722966 522447744
56. Credit impairment losses
20252024
Accounts receivable 60494566 106324987
Other receivables 2992597 5790193
Notes receivable 3074 9934
Total 63490237 112125114
57. Impairment losses of assets
20252024
Impairment losses of inventories 3792398952 3270730264
Impairment losses of fixed assets 208347140 155630720
Impairment losses of contract assets 4795195 (41265)
Impairment losses of construction in progress - 10445089
Impairment losses of long-term equity investments - 110719534
Impairment losses of intangible assets - 25647674
Impairment losses of goodwill - 51130564
Total 4005541287 3624262580
58. Gains on disposal of non-current assets (expressed with negative value for losses)
20252024
Gains from disposal of fixed assets 29963580 96788213
Gains / (Losses) from disposal of right-of-use assets 597789 (612949)
Losses from disposal of intangible assets (132765) -
?
Total 30428604 96175264
97BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
59. Non-operating income
2025 2024 Amount recognised
in non-recurring
gains and losses in
2025
Income arising from the excess of
the acquirer’s interest in the
fair value of the acquiree’s
identifiable net assets over the
cost of the investment 242086567 - 242086567
Gains from disposal of non-current
assets 4897377 10758866 4897377
Others 67996895 205527406 67996895
?
Total 314980839 216286272 314980839
60. Non-operating expenses
2025 2024 Amount recognised
in non-recurring
gains and losses in
2025
Donations provided 5788145 22799573 5788145
Losses from scrapping of non-
current assets 25716740 9315968 25716740
Others 32134891 29175134 32134891
?
Total 63639776 61290675 63639776
61. Income tax expenses
20252024
Current tax expense based on tax law and regulations 2325515225 1636979210
Changes in deferred tax assets/liabilities (318687664) (696599459)
Total 2006827561 940379751
98BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
61. Income tax expenses (continued)
The reconciliation between income tax expenses and profit before income tax is as follows:
20252024
Profit before income tax 7034201130 5085653633
Income tax expense calculated at statutory tax rate 1055130170 762848045
Effect of different tax rates applied by subsidiaries (73198251) (23588496)
Effect of non-deductible costs expense losses etc 53933856 12976976
Tax effect of weighted deduction and tax preference (1400551871) (1344141676)
Utilisation of prior year tax losses (891615988) (634192216)
Tax effect of deductible temporary differences or
deductible losses on unrecognized deferred income
tax assets in the current period 3263129645 2166477118
Income tax expenses 2006827561 940379751
Note: Income tax expenses in mainland China are calculated based on profits and tax rates in mainland
China while income tax expenses in other regions are calculated based on profits and tax rates in the
country or region where the business is located.
62. Earnings per share
20252024
RMB/share RMB/share
Basic earnings per share
Going concern 0.16 0.14
Termination of operations - -
Diluted earnings per share
Going concern 0.16 0.14
Termination of operations - -
Basic earnings per share is calculated as dividing consolidated net profit attributable to ordinary
shareholders of the Company by the weighted average number of ordinary shares outstanding. The
Group does not have any potential dilutive ordinary shares for the listed years.
99BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
62. Earnings per share (continued)
The specific calculations for basic earnings per share and diluted earnings per share are as follows:
20252024
Consolidated net profit attributable to shareholders of the company 5856966754 5323248974
Less: Current interest of other equity instruments 15917809 70000000
Less: Current dividends of restricted shareholders - 2744966
Adjusted net profit attributable to ordinary shareholders of the
Company 5841048945 5250504008
?
Weighted average number of ordinary shares outstanding (shares) 37304502790 37519930241
Basic earnings per share (RMB/share) 0.16 0.14
Weighted average number of ordinary shares is calculated as follows:
20252024
Issued ordinary shares at the beginning of the year 37324783924 37457807349
Add: Weighted average of restricted shares released from sale
restrictions during the period 60048627 69144539
Less: Weighted average number of ordinary shares repurchased in
current period 80329761 7021647
Weighted average number of ordinary shares at 31 December 37304502790 37519930241
100BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
63. Cash Flow Statement Line Item Notes
(1) Cash relating to operating activities
20252024
Proceeds relating to other operating activities
Government grants received 5332887604 2262269718
Restricted cash at bank and on hand as well
as others related to operating activities 2561034754 339696656
?
Total 7893922358 2601966374
Payments relating to other operating activities
Period expenses paid etc. 5276712758 7349209291
(2) Cash relating to investing activities
20252024
Proceeds relating to other investing activities
Restricted cash at bank and on hand as well as
others related to investing activities 325253271 2485332205
Payments relating to other investing activities
Accrued interest on matured large-
denomination certificates of deposit not yet
collected 189207236 -
(3) Cash relating to financing activities
20252024
Proceeds relating to other financing activities
Restricted cash at bank and on hand as well as
others related to financing activities 293613208 -
Payments for other financing activities
Acquisition of non-controlling interests of subsidiaries 5390488477 241418106
Repurchase of treasury shares 1533424027 999872378
Repurchase of minority shareholder contributions
with redemption clauses 435063753 -
Principal and interest related to leases and others 278482232 614027613
Total 7637458489 1855318097
101BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
63. Cash Flow Statement Line Item Notes (continued)
(3) Cash relating to financing activities (continued)
Changes in liabilities arising from financing activities：
Balance at the Balance at the
beginning of the end of the year
year Additions during the year Reductions during the year
Cash Non-cash Cash Non-cash
Short-term loans 1563317166 4396812258 35557524 (2340665511) - 3655021437
Other payables 3464819277 - 52622961 (5224334) (206614876) 3305603028
Dividends payable 42861753 - 2029424933 (2031402415) - 40884271
Long-term loans
(including non-
current liabilities
due within one year) 143824457674 40272054900 3881053442 (60908258368) - 127069307648
Bonds payable
(including non-
current liabilities
due within one year) - 11000000000 103778356 - (31231948) 11072546408
Lease liabilities
(including non-
current liabilities
due within one year) 778479954 - 272911463 (206932445) - 844458972
Long-term payables
(including non-
current liabilities
due within one year) 144022447 - 3885196 (26715125) - 121192518
Other non-current
liabilities (including
non-current
liabilities due within
one year) 3093290892 - 27000001 (435063753) (601446602) 2083780538
?
Total 152911249163 55668867158 6406233876 (65954261951) (839293426) 148192794820
102BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
64. Supplementary Information to the Cash Flow Statement
(1) Supplementary information for the cash flow statement
Reconciliation of net profit / (loss) to cash flows from operating activities:
20252024
Net profit / (loss) 5027373569 4145273882
Add:impairment losses 4005541287 3624262580
Credit impairment losses 63490237 112125114
Depreciation of fixed assets investment properties
and right-of-use assets 37378926183 37154186708
Amortisation of intangible assets 1121074682 1097857402
Amortisation of long-term deferred expenses 168973551 169655830
Gains from disposal of fixed assets intangible
assets and other long-term assets (30428604) (96175264)
Losses from scrapping of fixed assets and intangible
assets /(gains) 20819363 (1442898)
Gains from changes in fair value (431722966) (522447744)
Financial expenses 2929596217 1910873352
Investment (gains)/ losses (653966677) 581941421
Share-based payments 70261151 125524945
Increase /(decrease) in deferred income 2253415279 (218434024)
Increase in deferred tax assets (162783614) (298011255)
Decrease in deferred tax liabilities (155904050) (404560340)
Increase in inventories (8218887542) (2464527331)
Decrease /(increase) in operating receivables 3652273004 (3667418533)
Increase in operating payables 1701901454 6399187934
Others 84603150 89705600
?
Net cash flows generated from operating activities 48824555674 47737577379
103BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
V. Notes to key items of the consolidated financial statements (continued)
64. Supplementary Information to the Cash Flow Statement
(1) Supplementary information for the cash flow statement (continued)
Change in cash and cash equivalents:
20252024
Cash and cash equivalents at the end of the year 58211295777 62005252511
Less: Cash and cash equivalents at the beginning of
the year 62005252511 52092981748
Net decrease/(increase) in cash and cash
equivalents (3793956734) 9912270763
(2) Details of cash and cash equivalents
20252024
Cash and cash equivalents 58211295777 62005252511
Including: Cash on hand 1355467 1528764
Bank deposits available on demand 58182081075 61918283198
Other monetary funds available on
demand 27859235 85440549
Closing balance of cash and cash equivalents 58211295777 62005252511
Note: The cash and cash equivalents disclosed above do not include bank deposits held for
investment purpose the interest accrued on bank deposits at the end of the period and the use of other
Cash at bank and on hand subject to restrictions.
(3) Monetary funds other than cash and cash equivalents
2025 2024 Reasons
Principal and interest on large Held for investment
certificates of deposit and fixed- purposes
term deposits for more than
three months 13099822932 10805611280
Restricted in use or
Restricted cash 911821466 1441761424 ownership
?
Total 14011644398 12247372704
104BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
VI. Research and Development Expenses
1. Presentation by nature
20252024
Staff costs and daily expenses 5774920078 5625237778
Material and test expenses 3632702182 3339102808
Depreciation and amortisation 2204236151 2213563118
Others 2371203164 2027370403
?
Total 13983061575 13205274107
?
Including: Research and development expenditures
that are expensed 13836670878 13123309231
Research and development expenditures
that are capitalised 146390697 81964876
2. Expenditures on research and development projects which are eligible for capitalisation
Balance at the
beginning of the Internal Recognised as Balance at the
year development intangible assets end of the year
HC SemiTek
technology
development
project 109323354 146390697 (132007804) 123706247
VII. Changes in the scope of consolidation
Increases in the consolidation scope during the year were new subsidiaries established during the year
and the decreases in the consolidation scope were cancellations of subsidiaries during the year.
105BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
VIII. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of the Group
Principal place of Registered place Nature of business Shareholding (or similar
business equity interest) percentage
Direct Indirect
Founded by establishment or investment
Ordos Yuansheng Optoelectronics Co. Ltd. Ordos China Ordos China The production and operation of AMOLED and relevant products 100.00 -
Beijing BOE Vision-electronic Technology Co. Ltd. Beijing China Beijing China Investment platform sales of LCD 100.00 -
Beijing BOE Vacuum Electronics Co. Ltd. Beijing China Beijing China Manufacture and sales of vacuum electronic products 57.89 -
Management of engineering projects; property management services; lease of commercial
Beijing Yinghe Century Co. Ltd. Beijing China Beijing China buildings; lease of office space; enterprise management consulting 100.00 -
BOE Optical Science and technology Co. Ltd. Suzhou China Suzhou China R&D production and sales of LCD back light for display and related components 94.70 -
BOE Hyundai LCD (Beijing) Display Technology
Co. Ltd. Beijing China Beijing China Development manufacture and sale of liquid display for mobile termination 75.00 -
BOE (Hebei) Mobile Technology Co. Ltd. Langfang China Langfang China Manufacture and sale of mobile flat screen display technical products and related services 100.00 -
Provide comprehensive zero carbon comprehensive energy services covering multiple
dimensions such as comprehensive energy services comprehensive energy utilization
Beijing BOE Energy Technology Co. Ltd. Beijing China Beijing China and zero carbon services 68.40 -
Beijing BOE Life Technology Co. Ltd. Beijing China Beijing China Technology promotion services property management sales of electronic products 100.00 -
Beijing Zhongxiangying Technology Co. Ltd. Beijing China Beijing China Technology promotion services property management sales of electronic products 70.09 -
BOE Semi-conductor Co. Ltd. Beijing China Beijing China Glass thinning processing and metal parts processing 84.00 -
Hong Kong
BOE Optoelectronics Holding Co.Ltd China British Virgin Islands Investment holding 100.00 -
BOE (Korea) Co.Ltd. Korea Korea Wholesale and retail trade 100.00 -
BOE Wisdom IOT Technology Co. Ltd. Beijing China Beijing China Development transfer consulting and service of technology 100.00 -
106BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
VIII. Interests in Other Entities (continued)
1. Interests in subsidiaries (continued)
(1) Composition of the Group (continued)
Principal place of Registered place Nature of business Shareholding (or similar
business equity interest)
percentage
Direct Indirect
Founded by establishment or investment
(continued)
Hefei BOE Zhuoyin Technology Co. Ltd. Hefei China Hefei China Investment construction R&D production and sales of products related to OLED display 100.00 -
device and auxiliary products
Beijing BOE Land Co. Ltd. Beijing China Beijing China Development construction property management and supporting service of industrial 70.00 -
plants and supporting facilities; information consulting of real estate; lease of
commercial facilities commercial attendants and the supporting service facilities; motor
vehicles public parking service
Beijing Shiyan Technology Co. Ltd. Beijing China Beijing China General items: technical service technical development technical consultation technical 73.01 -
exchange technology transfer and technology promotion; Computer software
hardware and peripheral equipment manufacturing; Wholesale of computer software
hardware and auxiliary equipment; Retail of computer software hardware and auxiliary
equipment; Manufacturing of electronic components; Optoelectronic device
manufacturing; Display device manufacturing; Mobile terminal equipment
manufacturing; Virtual reality equipment manufacturing; TV manufacturing; Internet of
Things equipment manufacturing; Sales of electronic products; Display device sales;
Sales of mobile terminal equipment; Sales of communication equipment; Sales of IoT
equipment; Computer and communication equipment leasing; Integrated circuit
manufacturing; Integrated circuit design; IC sales; Integrated circuit chip and product
manufacturing; Software development; Software sales; Import and export of goods;
Technology import and export; Sales of Class I medical devices; Class I medical device
production; Class I medical device leasing; Sales of Class II medical devices; Class II
medical device leasing
107BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
VIII. Interests in Other Entities (continued)
1. Interests in subsidiaries (continued)
(1) Composition of the Group (continued)
‘ Principal place of Registered place Nature of business Shareholding (or similar
business equity interest)
percentage
Direct Indirect
Founded by establishment or investment
(continued)
Beijing BOE Marketing Co. Ltd. Beijing China Beijing China Sales of communication equipment hardware & software of computer and peripheral 100.00 -
units electronic products equipment maintenance; development transfer
consulting and service providing of technologies; import & export of goods and
technologies agency of import & export; manufacturing consignment of electronic
products and LCD devices
Yunnan Invensight Optoelectronics TechnologyKunming China Kunming China Development promotion transfer consultation and services of display technology; 78.32 -
Co. Ltd. computer software hardware and network system services; the construction
operations and management of e-commerce platform; product design; conference
services; undertaking exhibitions and presentation activities; computer animation
design; production R&D and sales of OLED microdisplays and AR/VR whole widget;
warehousing services; Project investments and management of the invested
projects; import and export of goods and technologies; property leases machinery
and equipment leases
Beijing BOE Sensing Technology Co. Ltd. Beijing China Beijing China Formation of X-ray sensors microfluidic chips biochemical chips gene chips security 100.00 -
sensors microwave antennas biosensors logistics network technology and other
semiconductor sensors technology testing technical consulting technical services
technology transfer
Hefei BOE Xingyu Technology Co. Ltd. Hefei China Hefei China R&D production and sales of Mini LED backlight components and Mini LED display 65.00 -
module components
Dongfang Chengqi (Beijing) BusinessBeijing China Beijing China Intelligent administrative service solutions integrating property business travel 100.00 -
Technology Co. Ltd. procurement and consumption
108BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
VIII. Interests in Other Entities (continued)
1. Interests in subsidiaries (continued)
(1) Composition of the Group (continued)
Principal place Registered Nature of business Shareholding (or similar
of business place equity interest)
percentage
Direct Indirect
Founded by establishment or investment
(continued)
BOE Smart Technology Co. Ltd. Beijing China Beijing China Provision of hardware and software integrated system solutions for the IoT market 100.00 -
Technology (“Smart Technology”) segment; intelligent city intelligent transport intelligent finance intelligent park and
the display terminal products such as the intelligent all-in-one machines
BOE Innovation Investment Co. Ltd. Beijing China Beijing China Project investment and investment management 100.00
BOE Mled Technology Co. Ltd. Beijing China Beijing China Mainly engaged in technology development technology consultation technology 100.00 -
transfer and technical services; Software development; Basic software services;
Application software services; Computer system services; Internet data services
(data centers in Internet data services except cloud computing data centers with
PUE values above 1.4); Information processing and storage support services;
General construction contracting professional contracting and labor
subcontracting; Equipment installation maintenance and leases; Literary and
artistic creation; Computer animation design; Product design; business
management; Enterprise management consulting; Sales of computers software
and auxiliary equipment electronic products
Beijing BOE Solar Energy Technology Co. Beijing China Beijing China Technical services technology development technology consulting technical 100.00 -
Ltd. exchange technology transfer technology promotion; manufacture of photovoltaic
equipment and components; sales of photovoltaic equipment and components
109BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
VIII. Interests in Other Entities (continued)
1. Interests in subsidiaries (continued)
(1) Composition of the Group (continued)
Principal place of Registered place Nature of business Shareholding (or similar
business equity interest) percentage
Direct Indirect
Founded by establishment or investment
(continued)
Chengdu BOE Display Techlogy Co. Ltd. Chengdu China Chengdu China Technical services technology development technology consulting technical exchange technology 52.63 -
(Chengdu Display Technology) transfer technology promotion; manufacturing of display devices [operations of branches]; sale of
display devices; manufacturing of electronic components [operations of branches]; wholesale of
electronic components; manufacturing of others electronic devices [operations of branches];
import and export of goods; import and export of technology; business management consulting;
property management; non-residential real estate leasing; machinery and equipment leasing
Beijing BOE Chuangyuan Technology Co. Ltd. Beijing China Beijing China Manufacturing of display devices; sale of display devices; manufacturing of electronic components; 79.31 -
(“Chuangyuan Technology”) wholesale of electronic components; technical services technology development technology
consulting technical exchange technology transfer technology promotion; import and export of
goods; import and export of technology; business management consulting; property management;
machinery and equipment leasing; manufacturing of other electronic devices
Mianyang BOE Electronic Technology Co. Ltd. Mianyang China Mianyang China Manufacturing of display devices; display device sales; manufacturing of electronic components; 100.00 -
(“Mianyang Electronic Technology”) technical service technical development technical consultation technical exchange technology
transfer and technology promotion; machinery and equipment leasing; intelligent control system
integration; information system integration services; industrial control computer and system
manufacturing; Internet of Things technical services; data processing service; sales of electronic
products; sales of digital cultural creative technology and equipment; sales of semiconductor
lighting devices; AI industry application system integration services; cloud computing equipment
technology services; industrial Internet data service; Internet data service; semiconductor lighting
device manufacturing; sales of new energy prime mover equipment; technology import and export
Beijing BOE Display Technology Co. Ltd. Beijing China Beijing China Development of TFT-LCD manufacture and sale of LCD 97.17 2.83
110BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
VIII. Interests in Other Entities (continued)
1. Interests in subsidiaries (continued)
(1) Composition of the Group (continued)
Principal place Registered place Nature of business Shareholding (or similar
of business equity interest) percentage
Direct Indirect
Founded by establishment or investment
(continued)
Beijing BOE Materials Technology Co. Ltd. Beijing China Beijing China Sales of chemical products (excluding those requiring special licenses); sales of specialized 100.00 -
electronic materials
Beijing BOE Robotics Co. Ltd. Beijing China Beijing China Industrial design services; information system integration services; manufacturing of smart 100.00 -
basic manufacturing equipment
Business combination involving entities not
under common control
Chengdu BOE Optoelectronics Technology Chengdu China Chengdu China Research and development design manufacture and sale of new display devices and
Co. Ltd. components 100.00 -
Hefei BOE Optoelectronics Technology Co. Hefei China Hefei China Investing researching manufacturing and promoting TFT-LCD products and accessory
Ltd. products 100.00 -
Hefei Xinsheng Optoelectronics Technology Hefei China Hefei China Investing researching manufacturing and promoting TFT-LCD products and accessory
Co. Ltd. products 99.97 0.03
Chongqing BOE Optoelectronics Technology Chongqing Chongqing
Co. Ltd. Research development manufacture and sales of semiconductor display devices machine
China China and relevant products import and export of goods and technical consulting 100.00 -
Fuzhou BOE Optoelectronics Technology Co. Investment construction R&D production and sales of the relevant products of thin film
Ltd. transistor LCD and its auxiliary products (separate business site); self-support and
Fuzhou China Fuzhou China agency for the import and export of various goods and technologies except those goods
and technologies that are restricted by the country or prohibited from import and export;
business management consulting and services; property leases; machinery and
equipment leases; technology development transfer consulting and services related to
LCD products 88.35 -
111BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
VIII. Interests in Other Entities (continued)
1. Interests in subsidiaries (continued)
(1) Composition of the Group (continued)
Principal place Registered place Nature of business Shareholding (or similar
of business equity interest) percentage
Direct Indirect
Business combination involving entities
not under common control (continued)
BOE Healthcare Investment & Management Beijing China Beijing China Investment management and project investment 100.00 -
Co. Ltd.Beijing Matsushita Colour Innovation Co. Beijing China Beijing China Property management parking services lease of commercial buildings etc 88.80 -
Ltd.Hefei BOE Display Technology Co. Ltd. Hefei China Hefei China Investment R&D and production of products related to TFT-LCD and the supporting facility 36.67 -
Mianyang BOE Optoelectronics Technology Mianyang China Mianyang China R&D production and sales of flexible AMOLED the products are mainly used in smart 83.46 -
Co. Ltd. phones wearable devices car display AR/VR etc
Wuhan BOE Optoelectronics Technology Wuhan China Wuhan China Investment and construction research and development production sales technology 58.36 -
Co. Ltd. (“Wuhan BOE”) development transfer consult and services of thin-film transistor LCD devices and related
products and supporting products
Chongqing BOE Display Technology Co. Chongqing Chongqing R&D manufacture and sales of semiconductor display devices whole widget and relevant 38.46 -
Ltd. (“Chongqing BOE Display”) products import and export of goods and technical consulting
China China
Fuzhou BOE Display Technology Co. Ltd. Fuzhou Fuzhou R&D production and sales of semiconductor display device-related products and related 43.46 -
(“Fuzhou BOE Display”) products; import or export of goods or technology; display device and component other
China China 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
Nanjing Display Technology Nanjing Nanjing R&D production and sales of TFT-LCD panels color filters and LCD machine modules; 80.83 -
Providing services related to products and businesses and other business activities related
China China to the above;Self support and agency of import and export business of various commodities
and technologies
112BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
VIII. Interests in Other Entities (continued)
1. Interests in subsidiaries (continued)
(1) Composition of the Group (continued)
Principal place Registered Nature of business Shareholding (or similar
of business place equity interest)
percentage
Direct Indirect
Business combination involving entities
not under common control (continued)
Chengdu Display Sci-tech Chengdu Chengdu Mainly engaged in research and development production sales and 35.03 -
China China technical services of TFT-LCD panels and modules LCD displays
televisions instruments mechanical equipment and accessories;
Engaged in the import and export of goods and technology
BOE HC SemiTek Corporation Wuhan Wuhan Design manufacturing sales and business leasing of semiconductor 22.92 -
(“HC SemiTek”) China China materials and devices electronic materials and devices semiconductor
lighting equipment sapphire crystal growth and sapphire deep processing
products; research and development processing and manufacturing of
integrated circuits and sensors and providing technical services; import
and export of self owned products and raw materials
As the Company has signed agreements of concerted action and other relevant agreements with other shareholders of Hefei Display Technology Wuhan BOE Chongqing
BOE Display Fuzhou BOE Display Chengdu Display Sci-tech and HC SemiTek.
113BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
VIII. Interests in Other Entities (continued)
1. Interests in subsidiaries (continued)
(2) Material non-wholly owned subsidiaries
As of 31 December 2025 the Group had five subsidiaries with significant minority interests and the total
amount attributable to minority interests of the aforementioned companies was RMB 41664159425; In
2025 the total amount of income attributable to minority shareholders of the aforementioned company
was RMB 500553054 and the total amount of dividends paid to minority shareholders was RMB
57454123.
(3) Key financial information about material non-wholly owned subsidiaries
The following table sets out the key financial information of the above subsidiaries without offsetting
internal transactions but with adjustments made for the fair value adjustment at the acquisition date and
any differences in accounting policies:
20252024
Current assets 51902634415 52256598898
Non-current assets 98799305507 116061033390
Total assets 150701939922 168317632288
Current liabilities 31436137204 40120432015
Non-current liabilities 31819248223 34537198899
Total liabilities 63255385427 74657630914
Operating income 73173566526 72036599379
Net loss (983244564) (1218649957)
Total comprehensive income (1076903724) (1195869163)
Cash inflows in operating activities 21645916840 13923092833
114BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
VIII. Interests in Other Entities (continued)
2. Transactions that cause changes in the Group’s interests in subsidiaries that do not
result in loss of control
(1) Changes in the Group’s interests in subsidiaries:
Before changes of After changes of interests
interests
Beijing Shiyan Technology 80.00% 73.01%
Chengdu Display Technology 50.25% 52.63%
Wuhan BOE 47.14% 58.36%
Hefei BOE Zhuoyin Technology 75.00% 100.00%
Beijing Zhongxiangying Technology 91.10% 70.09%
Yunnan Invensight Optoelectronics Technology 79.10% 78.32%
(2) Impact of transactions on non-controlling interests and equity attributable to the shareholders of the
Company:
The changes in the shareholding of the Company in the owners of above-mentioned other subsidiaries
were caused by the non-proportional capital increase of shareholders and the acquisition of non-
controlling interests which results in the increase of capital reserves by RMB 56866309.
3. Interests in joint ventures and associates
No material restrictions on transfers of funds from investees to the Group. The judgement basis of the
Company and its subsidiaries to hold lower than 20% of the voting rights of other entities but have
significant influence on the entity is due to the fact that the Company and its subsidiaries have seats in
the board of directors of the entity and the Company and subsidiaries of the Company may have
significant influence on the entity through the representation of the directors in the process of
formulating financial and operating policies.The Group has no material joint ventures or associates. Please see Note V.11 for details of the
summarised financial information of the joint ventures and associates.
115BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
IX. Financial instruments and related risks
1. Risks of financial instruments
The Group's activities expose it to a variety of financial risks: mainly include credit risk liquidity risk and
market risk. The risk management policy of this group is outlined below.
(1) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party
by failing to discharge an obligation. The Group’s credit risk is primarily attributable to receivables.Exposure to these credit risks is monitored by management on an ongoing basis.The cash at bank of the Group is mainly held with well-known financial institutions. Management does
not foresee any significant credit risks from these deposits and does not expect that these financial
institutions may default and cause losses to the Group.In respect of receivables the Group has established a credit policy under which individual credit
evaluations are performed on all customers to determine the credit limit and terms applicable to the
customers These evaluations focus on the customers’ financial position the external ratings of the
customers and the record of previous transactions. Receivables are due within 7 to 180 days from the
date of billing. Debtors with balances that are past due are requested to settle all outstanding balances
before any further credit is granted. Normally the Group does not obtain collateral from customers.The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer therefore significant concentrations of credit risk arise primarily when the Group has
significant exposure to individual customers. As at the balance sheet date 38% (2024: 45%) of total
accounts receivable and contract assets were due from the Group’s five largest customers. In addition
the debtors of the Group that are neither past due nor impaired mainly relate to a wide range of
customers for whom there was no recent history of arrearage.The maximum exposure to credit risk is represented by the carrying amount of each financial asset in
the balance sheet. As at 31 December 2025 the Group did not provide any other guarantees which
would expose the Group to credit risk.
116BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
IX. Financial instruments and related risks (continued)
1. Risks of financial instruments (continued)
(2) Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that are settled
by delivering cash or another financial asset. The Company and its individual subsidiaries are
responsible for their own cash management including short-term investment of cash surpluses and the
raising of loans to cover expected cash demands subject to approval by the Company’s board when the
borrowings exceed certain predetermined levels of authority. The Group’s policy is to regularly monitor
its liquidity requirements and its compliance with lending covenants to ensure that it maintains sufficient
reserves of cash readily realisable marketable securities and adequate committed lines of funding from
major financial institutions to meet its liquidity requirements in the short and longer term.The tables below summaries the maturity profile of the Group's financial liabilities and lease liabilities
based on the undiscounted contractual cash flows:
2025
Within 1 year or on 1 to 10 years Over 10 years Total
demand (inclusive) (inclusive)
Short-term
borrowings 3710310846 - - 3710310846
Notes payable 1380128604 - - 1380128604
Account payable 37242292283 - - 37242292283
Other payable 20889438382 - - 20889438382
Bonds payable
((including the
portion due
within one year) 321054745 11997111945 - 12318166690
Long-term
borrowings
(including the
portion due
within one year) 28674780710 108541547318 1304955124 138521283152
Lease liabilities
(including the
portion due
within one year) 202102808 755396243 - 957499051
Other non-current
liabilities
(including the
portion due
within one year) - 2247628813 - 2247628813
Long-term payable
(including the
portion due
within one year) 1010590571 2638985304 - 3649575875
Total 93430698949 126180669623 1304955124 220916323696
117BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
IX. Financial instruments and related risks (continued)
1. Risks of financial instruments (continued)
(3) Market risk
Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to cash flow
interest rate risk and fair value interest risk respectively. The Group determines the appropriate
weightings for fixed and floating rate interest-bearing instruments based on current market conditions
and performs regular reviews and monitoring to achieve an appropriate mix of fixed and floating rate
exposure. The Group does not enter into financial derivatives to hedge interest rate risk.As at 31 December 2025 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 shareholders’ equity by RMB537676118 (2024: RMB502550533).For non-derivative instruments at floating interest rates held at the balance sheet date that expose the
Group to cash flow interest rate risk the impact on net profit and owner's equity in the sensitivity
analysis above reflects the effect of interest rate changes on interest expenses or income estimated on
an annual basis. The analysis for the prior year was based on the same assumptions and
methodologies.Currency risk
In respect of cash at bank and on hand accounts receivable and payable and short-term loans
denominated in foreign currencies other than the functional currency the Group ensures that its net
exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when
necessary to address short-term imbalances.(a) The Group’s exposure as at 31 December to currency risk arising from recognised currency assets
or liabilities is mainly denominated in US dollar. The amount of the USD exposure is net assets
exposure USD3037027933 (2024: net liabilities exposure: USD 2564028518) translated into
RMB 21346661935 (2024: RMB 18431262599) using the spot rate at the balance sheet date.Differences resulting from the translation of the financial statements denominated in foreign
currency are excluded.(b) Assuming all other risk variables remained constant a 5% strengthening/weakening of the
Renminbi against the US dollar at 31 December would have decreased/increased both the Group’s
shareholders’ equity and net profit by the amount RMB 939351220 (2024: decreased/increased
RMB 792219870).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 currency risk at
the balance sheet date. The analysis excludes differences that would result from the translation of
currency financial statements. The analysis is performed on the same basis for the previous year.
118BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
IX. Financial instruments and related risks (continued)
2. Capital management
The Group’s primary objective when managing capital is to safeguard its ability to continue as a going
concern so that it can continue to provide returns for shareholders by pricing products and services
commensurately with the level of risks and by securing access to financing at a reasonable cost.The Group defines “capital” as including all components of equity less unaccrued proposed dividends.The balances of related party transactions are not regarded by the Group as capital.The Group’s capital structure is regularly reviewed and managed to achieve an optimal structure and
return for shareholders. In this regard factors for the Group’s consideration include: its future funding
requirements capital efficiency actual and expected profitability expected cash flows and expected
capital expenditure. Adjustments are made to the capital structure in light of changes in economic
conditions affecting the Group.The Group’s capital structure is monitored on the basis of an adjusted net debt-to-capital ratio (total
liabilities divided by total assets). The capital management strategies exerted by the Group remained
unchanged from 2024. In order to maintain or adjust the ratio the Group may adjust the amount of
dividends paid to shareholders request new loans issue new shares or sell assets to reduce debt.The primary objectives of the Group’s capital management are to safeguard the Group’s ability to
continue as a going concern in order to provide returns for owners and to maintain an optimal capital
structure to reduce the cost of capital.X. Fair value disclosure
The following table presents the fair value information and fair value hierarchy at the end of the current
reporting period of the Group’s assets and liabilities which are measured at fair value at each balance
sheet date on a recurring or non-recurring basis. The level at which fair value measurement is
categorised is determined by the lowest level input in the fair value hierarchy that is significant to the
entire fair value measurement. The levels are defined as follows:
Level 1 inputs: unadjusted quoted prices in active markets that are observable at the measurement
date for identical assets or liabilities;
Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly observable for
underlying assets or liabilities;
Level 3 inputs: inputs that are unobservable for underlying assets or liabilities.
119BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
X. Fair value disclosure (continued)
1. Assets and liabilities measured at fair value
2025
Fair value measurement using
Quoted prices Significant Significant Total
in active observable unobservable
markets inputs inputs
(Level 1) (Level 2) (Level 3)
Recurring fair value
measurements
Financial assets held for
trading 228365875 115225380 1326957475 1670548730
Including: Structured
deposit and
wealth
management
products - 115225380 621761687 736987067
Investment in
equity
instruments 228365875 - 705195788 933561663
Receivable financing - - 585672349 585672349
Investments in other equity
instruments 333098340 - 203118852 536217192
Other non-current financial
assets - - 2874055003 2874055003
Including: Investment in
equity
instruments - - 2874055003 2874055003
Total 561464215 115225380 4989803679 5666493274
120BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
X. Fair value disclosure (continued)
1. Assets and liabilities measured at fair value (continued)
2024
Fair value measurement using
Quoted prices Significant Significant Total
in active observable unobservable
markets inputs inputs
(Level 1) (Level 2) (Level 3)
Recurring fair value
measurements
Financial assets held for
trading 316768188 100126575 2699541200 3116435963
Including: Structured
deposit and
wealth
management
products - 100126575 2679701925 2779828500
Investment
in equity
instruments 316768188 - 19839275 336607463
Receivable financing - - 472537400 472537400
Investments in other equity
instruments 257558368 - 183813447 441371815
Other non-current financial
assets - - 2735680042 2735680042
Including: Investment in
equity
instruments - - 2735680042 2735680042
????
Total 574326556 100126575 6091572089 6766025220
2. Level 1 fair value measurement
The Group uses the active market quote as the fair value of financial assets within Level 1.The fair value of listed equity instrument investment and debt investment is determined at the market
price.
3. Level 2 fair value measurement
Interest rate swaps included in derivative financial instruments are measured using valuation techniques
consistent with swap models and present value methods. The model incorporates multiple
market?observable inputs including the counterparty’s credit quality spot and forward exchange rates
and interest rate curves. The carrying amount of interest rate swaps equals their fair value. The
mark?to?market value of derivative financial assets represents the net amount after adjusting for credit
valuation adjustments attributable to counterparty default risk associated with derivative instruments.Changes in counterparty credit risk do not have a material effect on the assessment of hedge
effectiveness for derivatives designated in hedging relationships nor on other financial instruments
measured at fair value.
121BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
X. Fair value disclosure (continued)
4. Level 3 fair value measurement
For wealth management products measured at fair value the fair value is determined based on the
discounted cash flow method.Receivables financing are notes receivable with short remaining maturities for which the fair value
determined is equal to the original carrying amount.For unlisted equity instrument investments the Group measures their fair value by applying valuation
techniques that are appropriate in the current circumstances and supported by sufficient available data
and other information. The objective of using valuation techniques is to estimate 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 under current market conditions. Valuation techniques generally
include the market approach income approach and cost approach. The Group selects one or more of
these valuation techniques based on actual circumstances to estimate the fair value of the relevant
assets or liabilities. However in limited circumstances where recent information to determine fair value
is insufficient or where the range of reasonable fair value estimates is significant and cost represents
the best estimate of fair value within that range cost may constitute an appropriate estimate of fair value
within such range.
5. Fair value of assets and liabilities that are not measured at fair values
Fair value of long-term loans and bonds payable is determined by discounted future cash flow
method.with market yield of other financial instruments with similar contractual terms credit risk and
remaining period which used as the discount rate. As at 31 December 2025 its own default risk of long-
term loans was evaluated as insignificant.XI. Related party relationships and transactions
1. Information about the parent of the Company
Name of the Registered address Nature of business Registered capital Proportion of Proportion of
parent ownership voting power in
interest in the the Company
Company (%) (%)
?
Beijing Area A No.6 West 6th Operation and
Electronics Street Sanlitun Chaoyang management of state-
Holding Co. District Beijing owned assets within
Ltd. authorization etc 7007391319 0.73 12.45
The Company’s ultimate controlling party is Beijing Electronics Holding Co. Ltd.
2. Information about the subsidiaries of the Company
For information about the subsidiaries of the Company refer to Note VIII.1.
122BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XI. Related party relationships and transactions (continued)
3. Joint ventures and associates of the Company
Associates and joint ventures that have related party transactions with the Group during this year or the
previous year are as follows:
Name of entity Relationship with the Company
??
Genewise Bio Co. Ltd. (Note 1) Associates of the Group
Chongqing Maite Optoelectronics Co. Ltd. Associates of the Group
Anxian Technology (Suzhou) Co. Ltd. Associates of the Group
Ziyang Shuzhi Health Technology Co. Ltd. Associates of the Group
Hefei Xinjingyuan Electronic Materials Co. Ltd Associates of the Group
Hefei Jiangcheng Technology Co.Ltd Associates of the Group
Beijing Nittan Electronics Co.Ltd. Associates of the Group
Beijing Xindongneng Investment Management Co.Ltd. Associates of the Group
Beijing Nissin Electronics Precision Component
Co. Ltd. Associates of the Group
TPV Display Technology (China) Limited Associates of the Group
Xianyang Rainbow Optoelectronics Technology
Co. Ltd Associates of the Group
Dongfang Juzhi (Beijing) Technology Innovation
Co. Ltd. and its subsidiaries Associates of the Group and its subsidiaries
Biochain (Beijing) Science & Technology Inc. and
its subsidiaries Associates of the Group and its subsidiaries
VusionGroup SA and its subsidiaries Associates of the Group and its subsidiaries
Cnoga Medical Ltd. and its subsidiaries Associates of the Group and its subsidiaries
Dongfang Yiyun Technology Group Co. Ltd. and its
subsidiaries(Note 2) Associates of the Group and its subsidiaries
Note 1: In 2025 Beijing BOE Microbiology Technology Co. Ltd. changed its name to Genewise Bio Co.Ltd.Note 2: In 2025 Beijing BOE Art Cloud Technology Co. Ltd. changed its name to Dongfang Yiyun
Technology Group Co. Ltd.
4. Other related parties
Related party relationships
Beijing Electronics Holding Co. Ltd. and its Controlling shareholder of the Company and under
subsidiaries the same control of the ultimate holding company
Shanghai National Engineering Research Center of Associate of enterprise that is under the same
Digital Television Co. Ltd. control of the ultimate holding company
Shanghai New Vision Microelectronics Co. Ltd. Associate of enterprise that is under the same
and its subsidiaries control of the ultimate holding company
Beijing Jiaxun Feihong Electric Co. Ltd. and its
subsidiaries Others
Beijing DeHeng Law Office Others
Hua Xia Bank Co. Ltd. Others
China Minsheng Banking Corporation Limited Others
Note: Hua Xia Bank Co. Ltd. was no longer a related party of the Company on 29 October 2025.China Minsheng Banking Corporation Limited was no longer a related party of the Company on
31 October 2024.
123BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XI. Related party relationships and transactions (continued)
5. Related party transactions
The transactions below with related parties were conducted under normal commercial terms or relevant
agreements.
(1) Purchases of goods and receiving of services from related parties
20252024
Purchase of goods 821964710 1036110867
Procurement of equipment 843776423 342397862
Receiving services 53164555 22275482
Payment of interest expenses 4398172 29228902
??
Total 1723303860 1430013113
(2) Sale of goods/rendering of services from related parties
20252024
Sale of goods 2210762312 3276078507
Rendering of services 13586849 21374733
Interest income received 20661288 38696473
??
Total 2245010449 3336149713
(3) Leases
As the lessor
Type of assets leased Lease income Lease income
recognised in 2025 recognised in 2024
Investment properties 7285922 12234810
124BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XI. Related party relationships and transactions (continued)
5. Related party transactions (continued)
(3) Leases (continued)
As a lessee
2025
Type of Rental Variable Rental Assumed Increased
assets expenses lease payments interest right- of-
leased for practical payments expenses use assets
expedient not from lease
of short- included in liabilities
term leases the
and the measurem
leases of ent of the
low-value lease
assets liability
Beijing Electric
Control Subsidiary Fixed assets 2113959 4258747 66601 3864 1545796
2024
Type of Rental Variable Rental Assumed Increased
assets expenses lease payments interest right- of-
leased for practical payments expenses use assets
expedient not from lease
of short- included in liabilities
term leases the
and the measurem
leases of ent of the
low-value lease
assets liability
Beijing Electric Fixed
Control Subsidiary assets 1156657 - 1625411 9049 -
Associated
enterprises of the Fixed
Group assets 341135 - - - -
(4) Remuneration of key management personnel
20252024
Remuneration of key management
personnel 48.48 million yuan 62.88 million yuan
The remuneration of key management personnel above does not include the one with respect to share-
based payments scheme.
125BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XI. Related party relationships and transactions (continued)
6. Receivables from and payables to related parties
(1) Receivables from related parties
20252024
Book value Provision for Book value Provision for
bad and bad and
doubtful doubtful
debts debts
Cash at bank and on hand - - 612658442 -
Accounts receivable 653340278 5343349 765108795 5276893
Prepayments 6734257 - 6032969 -
Other receivables 174498869 - 1521951 -
Contract assets 356204 - 439180 -
Other non-current assets 29267926 - 55227648 -
(2) Payables to related parties
20252024
Accounts payable 233053726 314617966
Receipts in advance 204018 202505
Contract liabilities 17414743 15549505
Other payables 484395610 254993110
Current portion of non-current
liabilities - 6358950
Short-term borrowings - 50043389
Long-term borrowings - 98608350
7. Commitments of the related parties
As at balance sheet date the commitments of the related parties which are signed but not listed in
financial statement are as following:
20252024
??
Procurement of equipment 264512396 237948651
126BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XII. Share-based payments
1. Equity instruments
Equity instrument are as follows:
Granted during Exercised during Unlocked during Forfeited during
the year the year the year the year
Quantity Quantity Quantity Quantity
Senior management appointed by
the Board of Directors - - 3608715 -
Technical experts middle
management and above level - - 85487825 2252839
Manager senior technical cadre - - - 179807865
Total - - 89096540 182060704
Equity instruments outstanding at the end of the year:
Share options outstanding at the end Other equity instruments
of the year
Range of exercise Remaining Range of Remaining
prices contractual life exercise prices contractual life
Manager senior technical
cadre RMB 5.479 /share 0.5 year / /
2. Equity-settled share-based payments
On 17 November 2020 the Board of Directors of the Company approved the implementation of share
options and restricted share incentive plans from 2020. The shares for the share options and restricted
share incentive plans are from the Company’s Renminbi A-share ordinary shares repurchased from
secondary market. Among them the first-phase stock option and restricted share incentive plan has met
all the exercisable conditions in 2024 and prior years. The details of the second-phase stock option
incentive plan are as follows:
Grant date was 27 August 2021 the actual number of grantees was 110 and the number of grants is
33000000 shares this grant was completed on 22 October 2021.
The share options are exercised in three phases after 24 months from the grant date. The exercise
ratios for each phase are 34% 33% and 33% respectively. The corresponding exercise dates are 2
years 3 years and 4 years from the grant date.When the Company’s performance meets the corresponding criteria the proportion of exercisable rights
of the above-mentioned share options is determined based on the business performance of the
incentive object’s operation and the contribution value of the incentive object. In accordance with the
plan the Company will deregister the current exercisable shares of the options obtained by the incentive
objects if the exercise criteria stipulated in this plan are not met.The costs of equity-settled share-based payments recognised for the 2025 year were RMB1472291
and the accumulated amount of equity-settled share-based payments recognised in the capital reserve
amounted to RMB1706903200.
127BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XII. Share-based payments (continued)
2. Equity-settled share-based payments (continued)
The fair value of equity instruments at the grant date is determined based on the assessed fair value of
the exercisable share options at each grant date;
At each balance sheet date during the vesting period the best estimation is made according to the latest
information such as the number of employees who are granted options and the completion of
performance indicators and the number of equity instruments expected to vest is revised accordingly.On the vesting date the estimated number is equal to the number of equity instruments that are
ultimately vested.XIII. Commitments
1. Significant commitments
20252024
Contracts entered into but not performed or
partially performed 13708563799 28280123927
Contracts authorised but not entered into 69745879437 85050646514
?
Total 83454443236 113330770441
The Group’s contracts authorised but not entered into mainly included fixed assets and project
equipment planned to purchase in subsequent years.
2. Contingencies
As of 31 December 2025 the Group has no material contingent liabilities requiring disclosure.XIV. Events after the balance sheet date
On March 30 2026 the Board of Directors of the Company held a meeting and proposed the profit
distribution plan for the year 2025 recommending a cash dividend distribution of RMB 2074482372
(i.e. a cash dividend of RMB 0.56 per 10 shares).
128BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XV. Other significant events
1. Segment reporting considerations
The Group management reviews the operation performance and allocates resources according to the
business segments below.(a) Display business — The display business integrates design and manufacturing of display devices
and strives to offer TFT-LCD AMOLED and other intelligent interface devices. This business
focuses on providing high-quality smartphones tablet PCs laptops monitors TVs vehicles and
other display devices for customers.(b) IoT Innovation Business - Design integrated manufacturing models for system solutions provide
customers with highly competitive smart terminal products in fields such as tablets laptops
displays televisions low-power consumption IoT 3D displays etc. and create innovative IoT
products and services that integrate software and hardware by integrating AI and big data functions.(c) Sensing Business - Design integrated manufacturing models for system solutions focusing on
FPXD smart windows industrial sensing MEMS and glass based sealing loading plate
businesses. We provide customers with products and services including X-ray flat panel detector
backboards intelligent dimming windows and dimming system solutions consumer electronics and
industrial application solutions advanced packaging carriers and more.(d) MLED business - integrated model for research development manufacturing sales and
integration of LED display solutions focusing on devices and solutions providing high-quality and
highly reliable LED backlight products for TV display laptop car and other fields; besides it
provides Mini/Micro-LED display products with high brightness strong reliability and high contrast
for use in outdoor display commercial display transparent display special display and other
scenarios.(e) Smart medicine and engineering business - The smart medicine and engineering business is a
professional service model providing services and solutions in healthcare intelligent rehabilitation
and medical-engineering integration products. Meanwhile the smart medicine and engineering
business is committed to building a closed loop of full-cycle health services with health
management as the core medical-engineering terminals as the traction digital hospitals and
rehabilitation communities as the support to create an intelligent health management ecosystem to
connect testing equipment healthcare personnel and customers and to provide customers with the
"prevision-treatment-nursing" full-chained health services.(f) Others - In addition to the above businesses the Group provides software-hardware fusion and
system integration solutions for different industries. Specifically it includes multiple sub areas such
as smart car connectivity smart energy industrial connectivity and ultra high definition displays
providing customers with multifunctional and intelligent IoT sub scenarios and new experiences.The main reason to separate the segments is that the Group independently manages the display
business IoT innovation business sensor and application solutions MLED and smart medicine and
engineering and other businesses. As these business segments manufacture and sale different
products apply different manufacturing processes and specifies in gross profit the business segments
are managed independently. The management evaluates the performance and allocates resources
according to the profit of each business segment and does not take financing cost and investment
income into account.
129BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XV. Other significant events (continued)
2. Accounting policies for the measurements of reporting segments
For the purposes of assessing segment performance the Group’s management regularly reviews the revenue and costs attributable to each reportable segment. Inter-segment
sales are determined with reference to prices charged to external parties for similar orders.
2025
Display IoT innovation Sensor MLED Smart medicine Others and Total
business business business business & engineering offsetting
business
Revenue 166417015418 38949236781 587444558 9316052632 1902021967 (12581548468) 204590222888
Cost of sales 144918410654 34398776981 429092455 8755995359 1918849507 (17819080945) 172602044011
2024
Display IoT innovation Sensor MLED Smart medicine Others and Total
business business business business & engineering offsetting
business
Revenue 165003592549 33828880608 386471446 8483421034 1839415166 (11161175142) 198380605661
Cost of sales 143955472188 30247926452 304425278 7993316575 1899758297 (16178949217) 168221949573
The Group develops various businesses by using common assets and liabilities and therefore it could not analyse assets and liabilities of each reportable segment
respectively by business
130BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XV. Other significant events (continued)
3. Secondary segment reporting (regional segments)
External revenue
The following table sets out information about the geographical location of the Group’s operating income
from external customers:
Operating income from external customers
20252024
Mainland China 102754305370 99522213629
Other regions 101835917518 98858392032
?
Total 204590222888 198380605661
The geographical information is based on the location of customers receiving the services or goods.Non-current assets
The geographical location of the specified non-current assets is based on the physical location of the
asset in the case of fixed assets; the location of the operation to which they are allocated in the case of
intangible assets and goodwill; and the location of operations in the case of interests in associates and
joint ventures. Most of the non-current assets in the Group are located in the Mainland China.
4. Major customers
The Group has 1 customer (2024: 1) the operating income from which is over 10% of the Group’s total
operating income. Revenue from this customer amounted to RMB 27361878462 yuan (2024: RMB
29896086331 yuan).
XVI. Notes to key items of the company financial statements
1. Accounts receivable
(1) An ageing analysis of accounts receivable is as follows:
20252024
Within 1 year 1757974878 3217732115
1 to 2 years 102626142 1322026
2 to 3 years 1028594 785947
Over 3 years 340611524 340575549
22022411383560415637
Less: Provision for bad and doubtful debts 3248761 3248761
Total 2198992377 3557166876
131BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XVIII. Notes to key items of the company financial statements (continued)
1. Accounts receivable (continued)
(2) Accounts receivable by provisioning method
2025
Book value Provision for bad and Carrying
doubtful debts amount
Amount Percentage Amount Percentage
(%)(%)
Individual assessment
- Customers with
high credit risk 3248761 0.15 3248761 100.00 -
- Customers with low
credit risk 2198784663 99.84 - - 2198784663
Collective assessment
- Customers with
medium credit risk 207714 0.01 - - 207714
Total 2202241138 100.00 3248761 0.15 2198992377
2024
Book value Provision for bad and Carrying
doubtful debts amount
Amount Percentage Amount Percentage
(%)(%)
Individual assessment
- Customers with
high credit risk 3248761 0.09 3248761 100.00 -
- Customers with
low credit risk 3556844804 99.90 - - 3556844804
Collective assessment
- Customers with
medium credit risk 322072 0.01 - - 322072
Total 3560415637 100.00 3248761 0.09 3557166876
(a) Criteria for collective assessment and details
Customer group Basis
With special matters litigations or the deterioration
Customers with high credit risk of customers’ credit status
Banks insurance companies large state-owned
Customers with low credit risk enterprises and public institutions
Customers with medium credit risk Customers not included in groups above
132BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XVIII. Notes to key items of the company financial statements (continued)
1. Accounts receivable (continued)
(2) Accounts receivable by provisioning method (continued)
(b) Assessment of ECLs on accounts receivable
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.
(3) Details of allowance for doubtful debts
Movements of provisions for bad and doubtful debts：
Balance at the beginning and end of the year
Customers with high credit risk 3248761
(4) Five largest accounts receivable and contract assets by debtor at the end of the year
As at 31 December 2025 the company of the five largest accounts receivable and contract assets of the
Group at the end of the year is RMB1831932830 representing 83% of the total accounts receivable
and contract assets.
2. Other receivables
20252024
Dividends receivable 457514291 1625667171
Others 21793810012 30450047947
?
Total 22251324303 32075715118
Others
(1) The ageing analysis of the Group’s other receivables is as follows
20252024
Within 1 year 4273657247 14613008207
1 to 2 years 6491909842 15566224475
2 to 3 years 10831614742 133433055
Over 3 years 200586721 141331367
2179776855230453997104
Less: Provision for bad and doubtful debts 3958540 3949157
?
Total 21793810012 30450047947
The ageing is counted starting from the date when other receivables are recognised.
133BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XVIII. Notes to key items of the company financial statements (continued)
2. Other receivables (continued)
(2) The other receivables categorised by nature
20252024
Current accounts (Note) 21548637554 30195532432
Others 249130998 258464672
2179776855230453997104
Less: Provision for bad and doubtful debts 3958540 3949157
Total 21793810012 30450047947
Note： As of 31 December 2025 and 31 December 2024 the company's current accounts mainly
consisted of loans receivable from subsidiaries.
(3) Other receivables by provisioning method
2025
Book value Provision for bad and Carrying
doubtful debts amount
AmounPtercentage Amount Percentage
(%)(%)
Individual assessment
- Amounts with high
credit risk 3958540 0.02 3958540 100.00 -
- Amounts with low
credit risk 21793810012 99.98 - - 21793810012
Total 21797768552 100.00 3958540 0.02 21793810012
2024
Book value Provision for bad and Carrying
doubtful debts amount
Amount Percentage Amount Percentage
(%)(%)
Individual assessment
- Amounts with high
credit risk 3949157 0.01 3949157 100.00 -
- Amounts with low
credit risk 30450047947 99.99 - - 30450047947
Total 30453997104 100.00 3949157 0.01 30450047947
134BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XVIII. Notes to key items of the company financial statements (continued)
2. Other receivables (continued)
(3) Other receivables by provisioning method (continued)
The movements of the provision for bad debts provided for other receivables based on 12-month ECL
and lifetime ECL respectively are as follows :
Stage 3
Lifetime ECL
(credit-impaired)
Balance at the beginning of the year 3949157
Additions during the year 9383
Balance at the end of the year 3958540
(4) Five largest other receivables by debtor at the end of the year
As of 31 December 2025 the top five other accounts receivable in the company's book balance
amounted to RMB17171574287 accounting for 79% of the total year-end balance of other accounts
receivable. The nature of the accounts receivable is mainly loans from subsidiaries and after evaluation
no provision for bad debts is required.
3. Long-term equity investments
20252024
Investments in subsidiaries 215951719233 200829541576
Investments in associates and joint ventures 7167349953 2362000389
?
Total 223119069186 203191541965
135BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XVIII. Notes to key items of the company financial statements (continued)
3. Long-term equity investments (continued)
Investments in subsidiaries
Movements during the year
Balance of Balance of
provision for provision
impairment for
Balance at the Share- Reductions at the impairment
beginning of the Increase in based during the Balance at the end beginning of at the end
Name of entity year investments payments year of the year the year of the year
Chengdu BOE Optoelectronics Technology Co. Ltd. 25144351769 - 122344 - 25144474113 - -
Mianyang BOE Optoelectronics Technology Co. Ltd. 22349926566 - (170241) - 22349756325 - -
Fuzhou BOE Optoelectronics Technology Co. Ltd. 15245602817 444468133 40579 - 15690111529 - -
Wuhan BOE 12533302733 - - - 12533302733 - -
Ordos Yuansheng Optoelectronics Co. Ltd. 11817053346 - - - 11817053346 - -
Hefei Xinsheng Optoelectronics Technology Co. Ltd. 10430796372 - 284661 - 10431081033 - -
BOE Healthcare Investment & Management Co. Ltd. 10136833696 1030000000 - - 11166833696 - -
Chongqing BOE Display 10019599110 - 41186 - 10019640296 - -
Beijing BOE Display Technology Co. Ltd. 9049663743 - 324964 - 9049988707 - -
Hefei Display Technology 8984024522 - - - 8984024522 - -
Chengdu BOE Display Sci-tech 7562546220 - (48503) - 7562497717 - -
Chuangyuan Technology 7427158963 4075108700 (47897) - 11502219766 - -
Nanjing Display Technology 5604272903 - (48503) - 5604224400 - -
Beijing BOE Vision-electronic Technology Co. Ltd. 5157858263 250000000 - - 5407858263 - -
BOE Innovation Investment Co. Ltd. 4777308507 1032500000 - - 5809808507 - -
Beijing BOE Sensing Technology Co. Ltd. 4589006285 206000000 (129662) - 4794876623 - -
Chengdu Display Technology 4499865000 6999535000 40579 - 11499440579 - -
Chongqing BOE Optoelectronics Technology Co. Ltd. 4228393682 - 40579 - 4228434261 - -
BOE Optoelectronics Holding Co. Ltd. 3487684762 - - - 3487684762 - -
Smart Technology 2936444400 72210000 - - 3008654400 - -
Hefei BOE Optoelectronics Technology Co. Ltd. 2779559286 - - - 2779559286 - -
BOE HC SemiTek Corporation 2083597236 - - - 2083597236 - -
BOE Mled Technology Co. Ltd. 1640914551 417000000 81158 - 2057995709 - -
Yunnan Invensight Optoelectronics Technology Co. Ltd 1522715006 - (170241) - 1522544765 - -
Mianyang Electronics Technology 1467000000 113000000 - - 1580000000 - -
BOE (Hebei) Mobile Technology Co. Ltd. 1356796294 - - - 1356796294 - -
Beijing BOE Energy Technology Co. Ltd. 858892813 - - - 858892813 - -
BOE Optical Science and technology Co. Ltd. 670638292 - 40579 - 670678871 - -
Hefei BOE Zhuoyin Technology Co. Ltd. 606269816 276401977 - - 882671793 - -
Hefei BOE Xingyu Technology Co. Ltd. 507153667 - - - 507153667 - -
Beijing Yinghe Century Co. Ltd. 360643405 - 40579 - 360683984 - -
Beijing BOE Solar Energy Technology Co. Ltd. 221274084 30000000 - - 251274084 - -
Beijing Shiyan Technology Co. Ltd. 168899524 - - - 168899524 - -
Beijing Zhongxiangying Technologies Co. Ltd. 102547815 - - - 102547815 - -
BOE Hyundai LCD (Beijing) Display Technology Co. Ltd. 42614481 - - - 42614481 - -
Beijing BOE Marketing Co. Ltd. 32139650 - - - 32139650 - -
Fuzhou BOE Display 23060520 - - - 23060520 - -
Beijing BOE Vacuum Electronics Co. Ltd. 20211313 - - - 20211313 - -
Dongfang Chengqi (Beijing) Business Technology Co.Ltd. 16614833 - - - 16614833 - -
Beijing BOE Technology Development Co. Ltd 13156190 - - - 13156190 - -
Beijing BOE Land Co. Ltd. 10236970 - - - 10236970 - -
Beijing BOE Life Technology Co. Ltd. 10000000 - - - 10000000 - -
BOE KOREA Co.Ltd 9638256 - - - 9638256 - -
Beijing BOE Semi-conductor Co. Ltd. 9450000 - - - 9450000 - -
Beijing Matsushita Colour Innovation Co. Ltd. 6797248 - - - 6797248 - -
Beijing BOE Materials Technology Co. Ltd. - 175000000 - - 175000000 - -
Others (note) 307026667 - 511686 - 307538353 - -
?
Total 200829541576 15121223810 953847 - 215951719233 - -
Note：Others represented equity-settled share-based payments granted by the Company to employees
of other subsidiaries.For information about the major subsidiaries of the Company refer to Note VIII.1.
136BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XVIII. Notes to key items of the company financial statements (continued)
3. Long-term equity investments (continued)
Investment in joint ventures and associates
Balance at the
Balance at the beginning of the Balance at the
beginning of the year Balance at the end of the year
year Provision for end of the year Provision for
Book value impairment Movements during the year Book value impairment
Additions during Reductions Investment (loss) Other Declared
the year during the /income under equity comprehensive
Other equity
year method income movements
distribution of
cash dividends
Associates
Beijing Xindongneng
Investment Fund
(Limited Partnership) 922008650 - - - 8470345 (5384695) - (205607242) 719487058 -
Erdos BOE Energy
Investment Co. Ltd. 135677369 - - - (448410) - - - 135228959 -
Others 1304314370 - 5090723466 - 80102410 43732762 (21939236 ) (184299836) 6312633936 -
?
?Total 2362000389 - 5090723466 - 88124345 38348067 (21939236 ) (389907078) 7167349953 -
137BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
XVIII. Notes to key items of the company financial statements (continued)
4. Other payables
20252024
Dividends payable 6451170 6451170
Other payables 3541040003 3464889503
?
Total 3547491173 3471340673
Other payables
(1) The Company’s other payables by category are as follows
20252024
Amounts due to / from subsidiaries 2829255955 3075540118
Equity transfer consideration 492419483 -
Repurchase obligation of restricted shares - 211839210
Purchase of projects equipment and intangible
assets 136799852 94897198
Others 82564713 82612977
?
Total 3541040003 3464889503
5. Long-term borrowings
20252024
Unsecured borrowings 47002821293 52243655504
Less: Long-term borrowings due within one year 7337560293 10986055504
?
Total 39665261000 41257600000
The interest rate of RMB long-term loans for the Company ranged from 1.20% to 2.90% in 2025 (2024:
1.20% to 3.10%).
138BOE Technology Group Co. Ltd.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
31 December 2025 Expressed in Renminbi Yuan
6. Operating income and operating costs
(1) Operating income and operating costs
20252024
Income Cost Income Cost
Principal activities 4861848847 24566651 5514699140 9430925
Other operating activities 98818512 13273953 43411212 2028596
???
Total 4960667359 37840604 5558110352 11459521
???
Including: Revenue from
contracts with
customers 4850735213 24045224 5452693863 1788997
Other income 109932146 13795380 105416489 9670524
7. Investment income
20252024
Income from long-term equity investments
accounted for using the cost method 1233764543 2113201157
Income/(loss) from long-term equity investments
accounted for using the equity method 88124345 (476270739)
Investment income from disposal of long-term equity
investments 4462440 -
Others 12053375 71214434
?
Total 1338404703 1708144852
139BOE Technology Group Co. Ltd.
Supplemental Information
31 December 2025 Expressed in Renminbi Yuan
1. Non-recurring Gains and Losses: Items and Amounts
2025
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-
offs) 467024249
Public subsidies charged to current profits and losses (exclusive of public grants closely
related to the Company’s normal business operations in compliance with national
policies enjoyed according to determined criteria and with a continuous impact on the
Company’s profits and losses) 1156541377
The profits or losses generated from changes in fair value arising from financial assets
and financial liabilities held by non-financial enterprises and the profits or losses from
the disposal of such financial assets and financial liabilities except for the effective
hedging business related to the company’s normal business operations 490447697
Reversal of provision for impairment of receivables that have been individually tested for
impairment 6137798
The income generated when the investment cost of acquiring subsidiaries associates
and joint ventures is less than the fair value of the identifiable net assets of the
invested entity that the enterprise should enjoy when obtaining the investment 242086567
Non-operating income and expenses other than the above 28513604
Sub-total 2390751292
Income tax effects 450136684
Non-controlling interests effects after taxation 313987379
Total 1626627229
2. Return on net assets and earnings per share
Weighted
average return
on net assets (%) Earnings per share
Basic Diluted
earnings earnings
per share per share
Net profits attributable to ordinary shareholders of the
Company 4.39 0.16 0.16
Net profits attributable to ordinary shareholders of the
Company before non-recurring gains and losses 3.17 0.11 0.11
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