ANNUAL REPORT 2021
March 2022Driving High-Quality Development with Innovation as the
Engine
Chen Yanshun Chairman of BOE
Time flies and a new year has once again begun. On behalf of all staff at BOE I would like
to express our most sincere gratitude and heartfelt respect to all our shareholders who have
been following accompanying and supporting us along this journey.For BOE the year 2021 witnessed both progress and accomplishments. In the face of the
ever-changing international political and economic situation and unpredictable industrial
environment after striving with resolute fortitude BOE successfully achieved the best
business performance since the Company’s incorporation. As a result our annual revenue
exceeded RMB200 billion for the first time reaching RMB219.31 billion an increase of
61.79% year-on-year with net profit attributable to the Company as the parent reaching
RMB25.831 billion an increase of 412.96% year-on-year. In terms of mainstream
semiconductor Display Devices business our market share in the five major application areas
of mobile phones tablet devices laptop PCs monitors and televisions continued to rank first
in the world. In addition in December we achieved the milestone of successfully shipping 10
million flexible AMOLED products in a single month. Meanwhile our IoT Innovation
business also continued to make breakthroughs with annual revenue exceeding RMB28.379
billion a significant year-on-year increase with outstanding development achievements in
innovative devices smart terminals system solutions Intelligent Car Networking Smart
Retail Industrial IoT and other areas. Finally in 2021 BOE was awarded the Fourth China
Quality Award and ranked among the top 500 global brands of Brand Finance for the first
time further enhancing its brand reputation and influence.Since its incorporation BOE has adhered to the business philosophy of innovation-driven
high-quality development and continued to stimulate organizational vitality through
innovation so as to build and deepen its global competitive advantage. These achievements
could not have been made without our unwavering “three insistences” in innovation.Insisting on technology and product innovation to serve the public with technology. Over
2the years through respecting technology BOE has continued to maintain high investment in
R&D. In 2021 the Company’s R&D expenses exceeded RMB10 billion for the first time an
increase of 31.72% year-on-year. BOE has also insisted on the global patent layout strategy of
“quality-orientation while developing quantity and quality simultaneously.” We have ranked
among the top 10 in international patent applications for six consecutive years and among the
top 20 global organizations granted US patents for four consecutive years at number 11 in
2021. Last year we officially launched the first technology brand in China’s semiconductor
display industry which not only marks a material milestone in the development of China’s
semiconductor display industry but also ushers in a new era of “technology + branding.” This
is expected to lead the industry customers and consumers into a new “visual world” that is
brilliant as well as perceptible and tangible.Insisting on management innovation to optimize business operations by digital means.Digital technology is rapidly accelerating and has become a key technological force in
driving economic and social development. Based on the strategic need to support the rapid
development of the enterprise by digital means BOE has integrated internal resources and
created a special professional organization to promote the Company’s digital transformation
and ensure the effective implementation of the digital transformation work while also
continuously investing resources in digitalization at the Company level. Aiming at the
construction of “a digital visual BOE” we vigorously improve our digital management level
and spare no effort to promote our efficient digital operation by building an end-to-end
procedure system optimizing operation mechanism strengthening IT system support and
revitalizing data assets.Insisting on model innovation to create an industry model of value creation. Throughout
its development BOE has been actively exploring the innovation and optimization of
business model and corporate structure and is committed to maximizing operational
efficiency with the most effective development model for our feedback shareholders and
society as a whole. In 2021 for the Internet of Things (IoT) era we proposed a development
strategy of the “Screen-Connected IoT”. This signifies our commitment to maximize our core
competencies accumulated in the semiconductor display field over the years seize the
industrial opportunity of the ubiquitous presence of screens in the digital era and continue to
enhance our value creation capability by integrating additional functions into screens placing
3the screen in more scenarios and deriving more shipping forms of screens while continuously
empowering thousands of scenarios. Based on the “Screen-Connected IoT” strategy we have
also innovated the “1+4+N” development structure the significance of which is as follows: “1”
stand for the mother ship platform with the capabilities and resources of Display Devices
business as the core which is the source and origin of BOE’s transformation and development;
“4” indicates the four cruiser layers of IoT innovation namely Sensor and Solution business
the MLED business and the Smart Medical Engineering business which are also the four
main fronts of our IoT transformation; and “N” is the landing ship layer based on the “1+4”
core technology products namely the subdivided application scenarios of IoT that we are
continuously exploring and cultivating along with the specific focus of BOE’s IoT
transformation development. Based on the “1+4+N” development structure we will continue
to promote the implementation of the “Screen-Connected IoT” development strategy enhance
our value creation capabilities and continuously achieve high-quality development at our
company.BOE’s vision is to be the most respected company on earth including becoming “the worldleader in semiconductor display industry” and “a global leading player in related smartsystems products and services”. We know full well that realizing this great vision requires a
process and generations of BOE employees to continue forging ahead and accumulating
experience. After two decades of professional cultivation we have developed into a leader in
the semiconductor display industry. In the future we will actively play a leading role in the
industry chain continue to practice leading responsibilities and spare no effort to promote the
transformation of the display industry from cyclical to growth-oriented thereby leading the
healthy development of the industry. We have made proper arrangements in Mini/Micro LED
Micro OLED quantum dot and light field display technologies and will continue to
guarantee resources investment to create a 30-year leading technology system while engaging
in the construction of “industrial ecological toughness” so to ensure that the industry chain
remains safe and controllable. We will also comprehensively compound BOE’s systemic
competitive advantages in the global semiconductor display field consolidate our industry
position and continuously enhance our influence in the industry.In the current development of the IoT industry the fourth wave of the industrial revolution is
sweeping across the globe with real economy+IoT becoming a significant trend providing us
4with broad market space. Whiling leading the semiconductor display industry into a new era
BOE has determined IoT transformation as its strategic direction and will firmly implement it.Focusing on digital and intelligent transformation we will continue to drive integration across
the business ecosystem build an intelligent manufacturing network across the entire business
chain and drive innovation in new paths such as intelligent systems intelligent medical
engineering and Industrial Internet. By accelerating the integration of software and hardware
and system integration capabilities continuously optimizing business models and establishing
a well-suited operation system we are well positioned to build a series of benchmark projects
to set a model for the industry. With the development strategy of “Screen of Things” we will
beef up the in-depth integration of “display technology+IoT application” i.e. to create more
scenarios for display build more screen functions create more business forms and empower
more and more businesses and industries. We will strengthen our capability in each
specialized segment scenario significantly increase the performance contribution of the IoT
Innovation business to the Company and resolutely work toward our goal of becoming a
global leading player in related smart systems products and services with an aim to drive
high-quality development of BOE and even the digital economy. I firmly believe that BOE’s
future will indeed be even more glorious!
At the same time we could not have made such achievements without the long-term trust and
support of our shareholders. To share the fruits of development with our investors BOE
attaches great importance to the return of investors in terms of both dividends and repos and
continuously provides cash dividends. Over the past three years we have adhered to taking no
less than 30% of the net profit attributable to the Company as the parent for shareholder
dividends. For 2021 our Board of Directors proposed a dividend of RMB2.1 for every 10
shares with total dividends expected to be RMB7963 million accounting for 30.83% of net
profit attributable to the Company as the parent. At the same time we completed RMB2428
million of share repos with the total shareholder returns expected to account for 40.22% of
net profit attributable to the Company as the parent.Looking ahead to 2022 as this era of change will continue accelerating and the global
economic recovery faces uncertainty both enterprises and individuals will find themselves in
an increasingly complex and unpredictable world. Only with stamina and diligence can one
make progress. In the face of challenges and opportunities we at BOE will continue to insist
5on our innovation-driven concept promote our “Screen-Connected IoT” strategy to achieve
immense results and benefits and promote the Company to achieve long-term stable and
high-quality development. In other words we will keep our heads in the clouds but our feet
on the ground.We look forward to the continuous collaboration and unwavering support of investors as we
continue down our road of development. Together let’s make progress and create a bright
future for everyone.
6BOE Technology Group Co. Ltd. Annual Report 2021
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the
directors supervisors and senior management of BOE Technology Group Co. Ltd.(hereinafter referred to as the “Company”) hereby guarantee the factuality accuracy and
completeness of the contents of this Report and its summary and shall be jointly and
severally liable for any misrepresentations misleading statements or material omissions
therein.Mr. Chen Yanshun the Company’s legal representative Mr. Liu Xiaodong President Ms.Sun Yun Chief Financial Officer and Ms. Yang Xiaoping head of the financial
department (equivalent to financial manager) hereby guarantee that the Financial
Statements carried in this Report are factual accurate and complete.All the directors of the Company except for the following attended in person the Board
meeting for the review of this Report and its summary.Name Office title Reason for not attending the meeting in person Proxy entrusted to attend the meeting
Song Jie Director Due to work Sun Yun
Any plans for the future and other forward-looking statements mentioned in this Report
shall NOT be considered as absolute promises of the Company to investors. Investors
among others shall be sufficiently aware of the risk and shall differentiate between plans
and forecasts and promises.The Board has approved a final dividend plan for the Reporting Period. Based on
37917560430 shares (the total share capital minus the shares in the share repurchase
account) a cash dividend of RMB2.10 (tax inclusive) per 10 shares is to be distributed to
all the shareholders with no bonus issue from either profit or capital reserves.This Report has been prepared as per the Chinese Accounting Standards for Business
Enterprises and other relevant regulations. KPMG Huazhen LLP has issued an
independent auditor’s report with unmodified unqualified opinion for the Company.This Report and its summary have been prepared in both Chinese and English. Should
there be any discrepancies or misunderstandings between the two versions the Chinese
versions shall prevail.
7BOE Technology Group Co. Ltd. Annual Report 2021
Table of Contents
Part I Important Notes Table of Contents and Defin... 7
Part II Corporate Information and Key Financial In.. 12
Part III Management Discussion and Analysis ........ 18
Part IV Corporate Governance ....................... 50
Part V Environmental and Social Responsibility ..... 89
Part VI Significant Events ......................... 95
Part VII Share Changes and Shareholder Information. 114
Part VIII Preferred Shares ........................ 129
Part IX Bonds ..................................... 130
Part X Financial Statements ....................... 136
8BOE Technology Group Co. Ltd. Annual Report 2021
Documents Available for Reference
(I) The financial statements signed and sealed by the Company’s legal representative President Chief Financial Officer and head of
the financial department (equivalent to financial manager);
(II) The original of the Independent Auditor’s Report sealed by the CPA firm and signed and sealed by the certified public
accountants;
(III) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the Reporting
Period; and
(IV) This Report disclosed in other securities markets.All the above mentioned documents are available at the Board Secretary’s Office of the Company.Chairman of the Board (signature): Mr. Chen Yanshun
Date of the Board’s approval of this Report: 30 March 2022
9BOE Technology Group Co. Ltd. Annual Report 2021
Definitions
Term Definition
“BOE” the “Company” the “Group” BOE Technology Group Co. Ltd. and its consolidated subsidiaries except where the context
or “we” otherwise requires
The cninfo website http://www.cninfo.com.cn/
CSRC The China Securities Regulatory Commission
SZSE the Stock Exchange The Shenzhen Stock Exchange
The Stock Listing Rules The Stock Listing Rules of the Shenzhen Stock Exchange (Revised in 2020)
Guideline No. 1 of the Shenzhen Stock Exchange Regarding Self-disciplinary Activities and
The Compliance in Operation of Main
Regulation of Listed Companies—Compliance in Operation of Main Board Listed
Board Listed Companies
Companies
The Articles of Association The Articles of Association of BOE Technology Group Co. Ltd.The Company Law The Company Law of the People’s Republic of China
The Securities Law The Securities Law of the People’s Republic of China
KPMG KPMG Huazhen LLP
OLED Organic Light Emitting Diode
LED Light-emitting Diode
MLED Mini/Micro LED
TFT-LCD Thin Film Transistor Liquid Crystal Display
AMOLED Active-matrix Organic Light Emitting Diode
Oxide A compound of oxygen and another chemical element
Microdisplay Microdisplay technology
IoT Internet of Things
A type of radiation that can pass through objects that are not transparent and make it possible
X-ray
to see inside them
Mini/Micro LED Submillimeter/Micro Light Emitting Diode
IEC International Electrotechnical Commission
EPQ A drive technology
HSR A frequency multiplication technology
α-Si Amorphous Silicon
1G1D A display screen design form
10BOE Technology Group Co. Ltd. Annual Report 2021
BD Cell BOE Dual Cell
BP Back Plate
FHD Full High Definition at 1920*1080
EPD Electrophoretic Display
P0.9 Point 0.9mm
COG Chip (Mini LED) On Glass
SMD Surface Mount Technology
COB Chip (Mini LED) On Board (PCB)
BT2020 HD digital video color standards issued by ITU in 2012
Digital Cinema Initiatives - Protocol 3 wide color gamut standards released by the American
DCI-P3
film industry which are widely used color standards for digital movies
Adobe RGB Color gamut standards issued by Adobe and RGB stands for red green and blue
BLU Backlight Unit
dB Decibel
AM Active Matrix
MNT Monitor generally referring to the 27~34 inch model
MNT Gaming Monitor Gaming
Advanced RISC Machines a 32 bits RISC processor structure widely used in embedded
ARM
system design
sRGB standard Red Green Blue one of the earliest color gamut standards
Color gamut standards issued by the National Television Standards Committee of America
NTSC
usually used to test the color range that a TV screen is able to cover
AIoT Artificial Intelligence & Internet of Things
Pitch Distance between two points
mm Millimeter
nit Unit for brightness
11BOE Technology Group Co. Ltd. Annual Report 2021
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name BOE-A BOE-B Stock code 000725 200725
Changed stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 京东方科技集团股份有限公司
Abbr. 京东方
Company name in English (if
BOE TECHNOLOGY GROUP CO. LTD.any)
Abbr. (if any) BOE
Legal representative Chen Yanshun
Registered address 10 Jiuxianqiao Road Chaoyang District Beijing P.R.China
Zip code 100015
Past changes of registered address N /A
Office address 12 Xihuan Middle Road Beijing Economic-Technological Development Area P.R.China
Zip code 100176
Company website www.boe.com
Email address web.master@boe.com.cn
II Contact Information
Item Board Secretary Securities Representative
Name Liu Hongfeng -
12 Xihuan Middle Road Beijing
Office Address -
Economic-Technological Development Area P.R.China
Tel. 010-64318888 ext. -
Fax 010-64366264 -
E-mail address liuhongfeng@boe.com.cn -
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this
http://www.szse.cn
Report is disclosed
12BOE Technology Group Co. Ltd. Annual Report 2021
Media and website where this Report is China Securities Journal Shanghai Securities News Securities Times Ta Kung Pao (HK)
disclosed http://www.cninfo.com.cn/
Place where this Report is lodged Board Secretary’s Office
IV Changes to Company Registered Information
Unified social credit code No change
Change to principal activity of the Company since going public (if any) No change
Every change of controlling shareholder since incorporation (if any) No change
V Other Information
The independent audit firm hired by the Company:
Name KPMG Huazhen LLP
Office address 8/F East Tower 2 Oriental Plaza 1 East Chang An Avenue Dongcheng District Beijing
Accountants writing signatures Zhang Huan and Chai Jing
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
√ Applicable □ Not applicable
Name Office address Representatives Supervision period
Room 2203 North Tower Shanghai Securities
Han Yong and 20 August 2021-31 December
China Securities Co. Ltd. Plaza 528 Pudong South Road Pudong New
Liao Ling 2022
Area Shanghai
Hua Ying Securities Company Rooms 01-06 Wuxi Finance Center 10 Jinrong Wang Qian and 20 August 2021-31 December
Limited First Road Wuxi Economic Development Zone Wu Yi 2022
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.√ Yes □ No
Reason for retrospective restatement:
Change of accounting policy.
2021-over-2
2020 020 change 2019
Item 2021
(%)
Before Restated Restated Before Restated
Operating revenue (RMB) 219309799505.00 135552569729.00 135552569729.00 61.79% 116059590164.00 116059590164.00
13BOE Technology Group Co. Ltd. Annual Report 2021
Net profit attributable to
the listed company’s 25830935500.00 5035627952.00 5035627952.00 412.96% 1918643871.00 1918643871.00
shareholders (RMB)
Net profit attributable to
the listed company’s
shareholders before 23937539752.00 2670454834.00 2670454834.00 796.38% -1166793317.00 -1166793317.00
exceptional gains and
losses (RMB)
Net cash generated
from/used in operating 62270556324.00 39251773458.00 39251773458.00 58.64% 26083079194.00 26083079194.00
activities (RMB)
Basic earnings per share
0.710.130.13446.15%0.050.05
(RMB/share)
Diluted earnings per share
0.710.130.13446.15%0.050.05
(RMB/share)
Weighted average return
23.84%5.15%5.15%18.69%2.16%2.16%
on equity (%)
Change of
31
December
31 December 2020 2021 over 31 December 2019
Item 31 December 2021
31
December
2020(%)
Before Restated Restated Before Restated
Total assets (RMB) 449726980355.00 424256806331.00 424256806331.00 6.00% 340412203308.00 340412203308.00
Equity attributable to the
listed company’s 142925547899.00 103276766835.00 103276766835.00 38.39% 95058129055.00 95058129055.00
shareholders (RMB)
Reason for accounting policy change and correction of accounting error:
In accordance with the Q&A on the implementation of fixed asset repair charge issued by the Ministry of Finance the Group
recorded routine repair charges of fixed assets that do not meet the subsequent expense conditions after the capitalization of fixed
assets in current profit or loss or the cost of underlying assets as incurred in accordance with the objects to be benefited and treated
such repair charges related to the production and processing of inventories in accordance with the principles for determining the cost
of inventories. The Group has changed the relevant accounting policy using the retrospective adjustment method. The above change
in accounting policy has no impact on the various items of major accounting data and financial indicators for 2020.Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative for the last three accounting years and the latest independent auditor’s report indicated that there was
uncertainty about the Company’s ability to continue as a going concern.
14BOE Technology Group Co. Ltd. Annual Report 2021
□ Yes √ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative.□ Yes √ No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
Item Q1 Q2 Q3 Q4
Operating revenue 49655379519.00 57629947507.00 55993022701.00 56031449778.00
Net profit attributable to the listed company’s
5182037171.007579987797.007253390635.005815519897.00
shareholders
Net profit attributable to the listed company’s
4484934082.007176682690.006937108280.005338814700.00
shareholders before exceptional gains and losses
Net cash generated from/used in operating activities 14522832708.00 18222355631.00 12006193144.00 17519174841.00
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2021 2020 2019 Note
15BOE Technology Group Co. Ltd. Annual Report 2021
Gain or loss on disposal of non-current assets
174174600.00 373432171.00 20340136.00 N/A
(inclusive of impairment allowance write-offs)
Tax rebates reductions and exemptions given
with ultra vires approval or in lack of official 0.00 0.00 0.00 N/A
approval documents
Government subsidies charged to current profit or
loss (exclusive of government subsidies
consistently given in the Company’s ordinary 2077537306.00 2332107692.00 2640634861.00 N/A
course of business at fixed quotas or amounts as
per governmental policies or standards)
Capital occupation charges on non-financial
enterprises that are charged to current profit or 0.00 0.00 0.00 N/A
loss
Gain equal to the amount by which investment
costs for the Company to obtain subsidiaries
associates and joint ventures are lower than the 0.00 0.00 0.00 N/A
Company’s enjoyable fair value of identifiable net
assets of investees when making investments
Gain or loss on non-monetary asset swaps 0.00 0.00 0.00 N/A
Gain or loss on assets entrusted to other entities
0.00 0.00 0.00 N/A
for investment or management
Allowance for asset impairments due to acts of
0.00 0.00 0.00 N/A
God such as natural disasters
Gain or loss on debt restructuring 0.00 0.00 0.00 N/A
Restructuring costs in staff arrangement
0.00 0.00 0.00 N/A
integration etc.Gain or loss on the over-fair value amount as a
0.00 0.00 0.00 N/A
result of transactions with distinctly unfair prices
Current profit or loss on subsidiaries obtained in
business combinations involving enterprises
0.00 0.00 0.00 N/A
under common control from the period-beginning
to combination dates net
Gain or loss on contingencies that do not arise in
0.00 0.00 0.00 N/A
the Company’s ordinary course of business
Gain or loss on fair-value changes in
held-for-trading financial assets and liabilities &
income from disposal of held-for-trading financial
121656142.00 82698484.00 112668244.00 N/A
assets and liabilities and available-for-sale
financial assets (exclusive of the effective portion
of hedges that arise in the Company’s ordinary
16BOE Technology Group Co. Ltd. Annual Report 2021
course of business)
Reversed portions of impairment allowances for
receivables which are tested individually for 20304301.00 15447820.00 1498805.00 N/A
impairment
Gain or loss on loan entrustments 0.00 0.00 0.00 N/A
Gain or loss on fair-value changes in investment
property of which subsequent measurement is 0.00 0.00 0.00 N/A
carried out using the fair value method
Effects of all adjustments required by taxation
accounting and other applicable laws and 0.00 0.00 0.00 N/A
regulations on current profit or loss
Income from charges on entrusted management 0.00 0.00 0.00 N/A
Non-operating income and expense other than the
90587512.00 65391368.00 96799305.00 N/A
above
Other gains and losses that meet the definition of
0.00 0.00 795126980.00 N/A
exceptional gain/loss
Less: Income tax effects 191362477.00 185966533.00 285904312.00 N/A
Non-controlling interests effects (net of tax) 399501636.00 317937884.00 295726831.00 N/A
Total 1893395748.00 2365173118.00 3085437188.00 --
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.
1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
17BOE Technology Group Co. Ltd. Annual Report 2021
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
In 2021 the prosperity of the semiconductor display industry remained at a high level. In the first half of the year as telecommuting
telemedicine online education online entertainment and other home economy stimulated the continued growth of the demand for
display products and with the lack of cores and materials capacity shortages and other factors the prosperity of the semiconductor
display industry continued to improve. Since the beginning of the third quarter with a slowdown in the demand for display products
stimulated by the global home economy as well as the shipping congestion rising raw material prices and logistics costs the
downstream willingness to stock up was affected TV products saw a structural adjustment while the market quotation of was relatively
stable by virtue of the demand from high-end business and supply concentration. In terms of industrial development semiconductor
display technology continued to show diversified development trends OLED and small spacing LED were poised to become the new
growth pole of the industry with OLED in smart phones smart watches and other small-size areas to further penetrate and small
spacing LED accelerating the commercialization process under the help of brand enterprises.The "14th Five-Year Plan" included "accelerating digital development and building a digital China" as a separate chapter making it
clear that China has entered an era of digital economy represented by massive data advanced computing power and algorithms. IoT is
one of the important infrastructures in the digital economy era. 5G artificial intelligence edge computing big data and other
technology applications are accelerating iterative development speeding up the construction of the ecology of the Internet of
Everything (IoE) and promoting the rapid development of demand-side scenarios. Currently the development of demand-side
scenarios is dominated by exploratory implementation in the consumer services market such as smart screens smart whole products
smart homes and other smart terminal products which have achieved first-mover advantages supported by mature technology and
growing demand for intelligence with product shipments and market scale continuing to expand. As the technology gradually matures
and the potential for integration applications is released there will be a large number of IoT technologies integrated into industrial
agricultural transportation education medical and other scenarios advancing the rapid development of the industrial IoT Intelligent
Car Networking smart finance smart industrial parks smart energy smart healthcare and other IoT application industries.At the same time the 14th Five-Year Plan also clarified that it is necessary to comprehensively promote the construction of a healthy
China and provide people with health services on all fronts further promoting the Internet medical platform as a trend; the
application of cloud computing IoT and big data technology has accelerated the implementation of health management application
scenarios which together with the pandemic has facilitated the closed-loop management of online and offline services and the
integration of "drug + medicine + insurance + healthcare". As aging continues to intensify active response to aging has become a
national strategy ushering in a golden period of development for the massive health industry.II Principal Activity of the Company in the Reporting Period
BOE Technology Group Co. Ltd. is an loT company providing intelligent interface products and professional services for
information interaction and human health. After years of professional cultivation the Company has developed into a global leader in
the field of semiconductor display and a global innovative enterprise in the field of the Internet of Things. Based on a deep
understanding of the intrinsic laws of the market and practical exploration and in order to further enhance the Company’s value
creation capability BOE has proposed the development strategy of " Screen-Connected IoT " based on its core genes and capabilities
seizing the ubiquitous growth opportunities of "screen" and fully leveraging its core advantage of "screen" to integrate screens into
more market segments and application scenarios by integrating more functions inserting more scenarios and deriving more forms.By doing so BOE will realize the user perception revolution of "screen as terminal" in the digital era build an industrial ecology of
18BOE Technology Group Co. Ltd. Annual Report 2021
"screen as platform and screen as system" and reshape the value growth model. At the same time based on the strategic design of "
Screen-Connected IoT " BOE will bring a new connotation to the "1+4+N" development structure under the new development
pattern."1" is the mother ship platform with the capabilities and resources of Display Devices business as the core which is the core capacity
and quality resources accumulated by BOE as well as the source and origin of the Company's transformation and development."4" is the cruiser layers which is a high-potential channel and direction of development selected based on BOE's core competence and
value chain extension as well as the four main fronts of the Company's IoT transformation namely the IoT Innovation business the
Sensor and Solution business the MLED business and the Smart Medical Engineering business."N" is the landing ship layer based on the "1+4" core technology products which are the subdivided application scenarios of IoT that
are continuously explored and cultivated by BOE as well as the specific focus of the Company's IoT transformation development.The Company's core business includes:
1. Display Devices business
The Display Devices business offers integrated design and manufacturing services for devices and is committed to providing
interface devices applying TFT-LCD AMOLED Oxide Microdisplay and other technologies focusing on providing customers with
high-quality display devices such as smartphones tablet PCs laptops monitors TVs vehicle-mounted electronic shelf label (ESL)
tiled display screens industrial control wearable devices VR/AR devices electronic tags white goods healthcare mobile payment
and interactive whiteboards.
2. IoT Innovation business
The IoT Innovation business offers integrated design and manufacturing services for system solutions and provides customers with
competitive TVs monitors laptops tablets low-power IoT 3D display and other smart terminal products. Backed by AI and big
data it focuses on products and services combining hardware and software and provides smart finance smart parks smart
government smart transportation urban light space smart energy The company also provides total solutions in the field of IoT
segments such as smart finance smart industrial parks smart government affairs smart transportation city light space smart energy
and other IoT solutions as well as overall solutions for areas such as whole and large-size products.
3. Sensor and Solution business
The Sensor and Solution business offers integrated design and manufacturing services for system solutions focuses on medical
biological detection transportation and construction consumer electronics microwave communications industrial sensing and other
fields and provides customers with integrated design and manufacturing of sensor devices and system solution services with specific
products and solutions including flat panel X-ray detectors (FPXD) digital microfluidic chips PDLC glass fingerprint identification
systems and industrial sensors.
4. MLED business
MLED business renders Mini-LED backlight products with high reliability and high partition of dimming for LCD of mobile phones
tablet PCs laptops monitors TVs vehicles wearable devices etc. as well as Mini/Micro-LED display products with high
brightness high reliability and high contrast for segment markets of outdoor commercial transparent specialized and other displays.All these products are designed and manufactured in an integrated manner.
5. Smart Medical Engineering business
The Smart Medical Engineering business adopts the professional service model to combine technologies with medicine and integrate
medicine and engineering with innovation so as to provide families communities and hospitals with the four major human-centered
services of health management health technology digital hospital and technology services. It connects testing equipment healthcare
workers and customers through the health IoT platform to build a smart health management ecosystem where customers enjoy health
services including prevention treatment therapy and nursing.
19BOE Technology Group Co. Ltd. Annual Report 2021
III Core Competitiveness Analysis
1. Excellent management team
Since the Company implemented the strategy of "conducting overseas acquisitions and taking root in domestic markets" and entered
the semiconductor display industry at a high starting point it has developed into a leading enterprise in the global semiconductor
display industry after more than 20 years of concentrated efforts. The Company's management team has solid professional
knowledge rich industry experience leading management level and keen strategic vision. Thanks to their efforts the Company
continued to grow stronger in the semiconductor display field and grasped future development opportunities to firmly promote the
Company's IoT transformation and rendered a lot of achievements. In the context of the complex global political and economic
situation repeated outbreaks and the shortage of upstream resources and materials the Company's management overcame many
difficulties and led the team to turn the downturn into growth opportunities and actively seize the market achieving the best business
performance in the Company's history throughout the year.
2. Perfect technology R&D system and technology leading strength
Through the short- medium- and long-term technology R&D mechanism the Company productizes technology rapidly and actively
lay out forward-looking technology directions while realizing the incubation of technology value to ensure that the Company's
technological strength continues to lead. In terms of patents the number of new patent applications exceeded 9000 including more
than 90% for inventions and 33% for overseas patents. More than 6000 new patents were granted of which over 2000 were for
overseas patents and the Company was ranked among the Top 20 Organizations Granted US Patent in the world for four consecutive
years (ranked 11th in 2021). In terms of technical standards the Company led the formulation and revision of 42 external technical
standards throughout the year. BOE led the application for the IEC international standard Basic Rating and Characteristics of
Flexible Display Devices and two national standards General Requirements for IoT Electronic Tag System and Electronic Dye
Liquid Crystal Dimming Glass which were approved achieving a breakthrough in the international standard of product specification
in the field of flexible display of China. In terms of products and technology applications BOE has created the world's first α-Si
1G1D 8K 288Hz technology equipped with EPQ screen technology and HSR frequency doubling technology with its BD Cell
technology breaking through a million contrast ratios in broadcast-grade monitor applications and achieving world premieres in the
vehicle and medical areas. BOE's 65-inch Black Shine whole product is equipped with the first technology applications such as
intelligent computing and intelligent drawing reducing the writing latency to less than 50 milliseconds winning the C-IDEA Design
Award and the "Technology Innovation Award" of the China Video Industry Association. It also launched the industry's first process
of glass plating of thick copper for the Mini LED BP segment achieving a rapid increase in the yield of BP substrates. In addition its
overall solution for the first self-developed next-generation high-throughput gene sequencing (NGS) achieved the leading recovery
rate and conversion rate of reagents in the industry.In December 2021 BOE officially launched the first technology brand in China's semiconductor display field - high-end liquid crystal
display technology "ADS PRO" high-end flexible display technology "f-OLED " and high-end glass-based LED display technology
"α-MLED" ushering in a new era of "technology + brand" dual-value drive.
3. Leading lean management level and operational efficiency
BOE continuously optimized its operation mechanism promoted the centralization and scale of products continued to strengthen
platform linkages and connections and leveraged its advantages of intensification continuously enhancing the efficiency of
production lines. BOE's 5th generation of TFT-LCD production line in Beijing achieved new results in transformation and a new
breakthrough in the proportion of innovative application products; the 5.5th generation of TFT-LCD production line in Ordos
achieved full production and full sales with a significant increase in performance; the 8.5th generation of TFT-LCD production line
in Fuzhou achieved a record high in terms of the production capacity; the 10.5th generation of TFT-LCD production line in Hefei
achieved an industry high yield for FHD products; the operating quality of the 6th generation of AMOLED production line in
Chengdu and Mianyang saw a steady improvement and the 6th generation of AMOLED production line in Chongqing has
successfully achieved mass production and delivery of products.
20BOE Technology Group Co. Ltd. Annual Report 2021
BOE continued to rank first in terms of quality performance of customers with 28 of the core LCD customers making it to top two
and 24 to number one. Six customers of whole products ranked first throughout the year. In 2021 BOE was awarded the 4th China
Quality Award for its management model of innovation-driven high-quality development.
4. Further advanced digital transformation
BOE continued to comprehensively advance digital transformation with the top goal of building "a digital visual BOE". The
Company promoted and implemented a series of digital change key measures to build an end-to-end digital management system of
"agile response efficient coordination and full coverage" so as to stimulate organizational vitality strengthen IT system support
revitalize data assets and realize efficient digital operation. The Company continued to improve management efficiency and business
efficiency and all tasks are progressing in an orderly manner.IV Core Business Analysis
1. Overview
In 2021 as the overall situation in the world was unpredictable the global pandemic was still unmitigated and the continuous mutations
of viruses brought about new uncertainties and challenges the global economic recovery momentum was still unconsolidated. After the
longest prosperity cycle in the history of the semiconductor display industry market demand growth has slowed down and technology
development continues to diversify. At the same time 5G AI and other technology applications accelerated iterative development
speeding up the construction of the IoE ecology. Besides the intensifying global aging brought about a broad development opportunity
for the massive health industry.BOE actively responded to the complex and changing development environment overcame challenges and seized opportunities
achieving its best ever results with significant growth in revenue and net profit. The Company achieved annual operating revenue of
approximately RMB219.31 billion up approximately 61.79% year on year while achieving net profit attributable to shareholders of
the listed company of approximately RMB25.83 billion a significant increase of approximately 412.96% year on year. Specific
operational aspects:
1. Display Devices business
BOE further consolidated its leading position in the semiconductor display sector which generated revenue of approximately
RMB202219 million during the Reporting Period up approximately 64.30% year on year. Its market position further steadily
improved and product sales volume rose by 9% and sales area rose by 37% year on year. The market share of five mainstream
products such as smartphone LCD screens tablet PC displays laptop displays display screens and TV displays continued to rank
first globally. The sale area of innovative application products saw an increase of 26% year on year. In terms of flexible OLED the
Company's shipments rapidly increased and a breakthrough in business development was made with the single-month shipments
exceeding 10 million for the first time in December 2021.
2. IoT Innovation business
BOE has made breakthroughs in business landscape and headway in market expansion and achieved revenue of approximately
RMB28379 million during the Reporting Period up approximately 47.98% year on year. In terms of smart terminals BOE
continued to promote high-end product transformation for the TV smart terminal achieving a year-on-year increase of 13% in sales.It achieved the introduction of leading customers for the high-end products of the display smart terminal with a year-on-year
increase of 29% in sales. EPD retail price tag sales increased by 50% year on year and innovative application scenarios such as the
conference table card and passive name tag were expanded. Besides BOE launched 81-inch and 105-inch 5K UHD wide-screen
monitors in terms of the IoT terminal commercial displays and made market breakthroughs in applications such as smart white
boards and light energy boards. In terms of system solutions the smart whole products achieved full coverage from 55 inches to 135
inches with sales doubling year on year; the sales of large-size products and splicing products grew rapidly with year-on-year
growth of over 5 times and 3 times respectively; the smart finance screen was successfully shortlisted for centralized purchase by
21BOE Technology Group Co. Ltd. Annual Report 2021
bank customers; the smart industrial park created 10 subdivided smart benchmark projects including cultural tourism commerce and
industry; the smart government affairs created the first outdoor 8K UHD large screen in Guangzhou and other benchmark projects
and won the tender for the "100 Cities and 1000 Screens" project setting a benchmark for the promotion of UHD screens in the
country; the smart transportation business has gradually covered many transportation scenarios in nearly 20 cities including Beijing
Shenzhen Taiyuan and Qingdao.
3. Sensor and Solution business
BOE has made breakthroughs in market development customer introduction and new product R&D and achieved revenue of
approximately RMB216 million during the Reporting Period up approximately 80.43% year on year. Among them BOE's medical
imaging products accounted for more than 40% of the domestic leading detector manufacturers and it kept good cooperation with
leading customers in Europe the United States and South Korea. BOE developed the passenger car post-market for traffic windows
achieving mass production and delivery of products exceeded 1000 square meters of delivery area for glass curtain wall for the first
time and officially launched industrial sensor readers filling the industry's domestic reader gap.
4. MLED business
BOE has made breakthroughs in multiple areas of products technology and markets and achieved revenue of approximately
RMB452 million during the Reporting Period. Applying BOE's unique glass active drive technology it released 75-inch and 86-inch
TV backlight products and 34-inch monitor backlight products and achieved the world premiere of P0.9 display products. It
launched the industry's first PCB 55-inch Mini LED splicing backlight product for entering the high-end security market achieved
mass production and delivery of Mini LED backlight notebook products and mass production and import of Mini LED VR products
for leading brand customers.
5. Smart Medical Engineering business
BOE continued to improve the digital hospital and health management professional capabilities and achieved revenue of
approximately RMB1847 million during the Reporting Period up approximately 21.29% year on year. The health management
platform obtained the license qualification of "BOE Intelligent Internet Hospital" and expanded three partner hospitals and six
partner doctor teams. The intelligent hospital solution achieved the first project delivery and a number of projects of the smart
healthcare solution were implemented in Beijing Chengdu and other places. The digital hospital business grew significantly the total
outpatient visits increased by 130% year on year and the total discharges doubled including over 100000 visits to the Chengdu BOE
Hospital since its opening in April and the smooth opening of the Suzhou BOE Hospital in October. The stock of regenerative
medical neonatal stem cells boosted by over 50% year on year.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
20212020
As % of total As % of total
Item Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%)(%)
Total 219309799505.00 100% 135552569729.00 100% 61.79%
By operating division
Display devices 202219268075.00 92.21% 123077882346.00 90.80% 64.30%
IoT innovation 28379332761.00 12.94% 19178428559.00 14.15% 47.98%
22BOE Technology Group Co. Ltd. Annual Report 2021
Sensor and solution 216187403.00 0.10% 119817921.00 0.09% 80.43%
MLED 451525233.00 0.21% — — —
Smart medical
1846551592.000.84%1522460282.001.12%21.29%
engineering
Others and offset -13803065559.00 -6.30% -8346019379.00 -6.16% —
By product category
Display devices 202219268075.00 92.21% 123077882346.00 90.80% 64.30%
IoT innovation 28379332761.00 12.94% 19178428559.00 14.15% 47.98%
Sensor and solution 216187403.00 0.10% 119817921.00 0.09% 80.43%
MLED 451525233.00 0.21% — — —
Smart medical
1846551592.000.84%1522460282.001.12%21.29%
engineering
Others and offset -13803065559.00 -6.30% -8346019379.00 -6.16% —
By operating segment
Mainland China 93850467813.00 42.79% 65241679286.00 48.13% 43.85%
Other regions in Asia 96116878840.00 43.83% 54895384319.00 40.50% 75.09%
Europe 5478685805.00 2.50% 4804966123.00 3.54% 14.02%
America 23770495392.00 10.84% 10316934261.00 7.61% 130.40%
Other regions 93271655.00 0.04% 293605740.00 0.22% -68.23%
By marketing model
Direct sales 219309799505.00 100.00% 135552569729.00 100.00% 61.79%
(2) Operating Division Product Category Operating Segment or Marketing Model Contributing over 10%
of Operating Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in
Gross profit YoY change in
Item Operating revenue Cost of sales operating gross profit
margin cost of sales (%)
revenue (%) margin (%)
By operating division
Display devices 202219268075.00 148920717889.00 26.36% 64.30% 45.07% 9.76%
IoT innovation 28379332761.00 25108953836.00 11.52% 47.98% 48.72% -0.45%
By product category
Display devices 202219268075.00 148920717889.00 26.36% 64.30% 45.07% 9.76%
IoT innovation 28379332761.00 25108953836.00 11.52% 47.98% 48.72% -0.45%
23BOE Technology Group Co. Ltd. Annual Report 2021
By operating segment
Mainland China 93850467813.00 66047036922.00 29.63% 43.85% 26.26% 9.81%
Other regions in
96116878840.0068072102152.0029.18%75.09%51.79%10.87%
Asia
America 23770495392.00 17261312475.00 27.38% 130.40% 94.39% 13.45%
By marketing model
Direct sales 219309799505.00 155985225295.00 28.87% 61.79% 41.28% 10.32%
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable√ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2021 2020 Change (%)
Sales volume K ㎡ 75969 55653 37.00%
TFT-LCD Output K ㎡ 79091 55628 42.00%
Inventory K ㎡ 6000 2555 135.00%
Sales volume K ㎡ 836 501 67.00%
AMOLED Output K ㎡ 855 537 59.00%
Inventory K ㎡ 62 40 55.00%
Reason for any over 30% YoY movements in the data above
√ Applicable □ Not applicable
The sales volume output and inventory of TFT-LCD increased in 2021 primarily due to new entities added to the consolidated
financial statements of 2021 and the transfer of new production line to fixed assets.The sales volume output and inventory of AMOLED increased in 2021 primarily due to the transfer of new production line to fixed
assets.
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By operating division and product category
Unit: RMB
20212020
By operating
Item As % of total As % of Change (%)
division Cost of sales Cost of sales
cost of sales total cost of
24BOE Technology Group Co. Ltd. Annual Report 2021
(%) sales (%)
Materials labor costs
Display devices 148920717889.00 95.47% 102650861838.00 92.97% 45.07%
depreciation etc.Materials labor costs
IoT innovation 25108953836.00 16.10% 16883719082.00 15.29% 48.72%
depreciation etc.Materials labor costs
Sensor and solution 166800549.00 0.11% 75405672.00 0.07% 121.20%
depreciation etc.Materials labor costs
MLED 436645746.00 0.28% — — —
depreciation etc.Smart medical Materials labor costs
1370997955.000.88%724268025.000.66%89.29%
engineering depreciation etc.Materials labor costs
Others and offset -20018890680.00 -12.84% -9924372413.00 -8.99% —
depreciation etc.Unit: RMB
20212020
As % of total As % of total Change
By product category Item
Cost of sales cost of sales Cost of sales cost of sales (%)
(%)(%)
Materials labor costs
Display devices 148920717889.00 95.47% 102650861838.00 92.97% 45.07%
depreciation etc.Materials labor costs
IoT innovation 25108953836.00 16.10% 16883719082.00 15.29% 48.72%
depreciation etc.Materials labor costs
Sensor and solution 166800549.00 0.11% 75405672.00 0.07% 121.20%
depreciation etc.Materials labor costs
MLED 436645746.00 0.28% — — —
depreciation etc.Smart medical Materials labor costs
1370997955.000.88%724268025.000.66%89.29%
engineering depreciation etc.Materials labor costs
Others and offset -20018890680.00 -12.84% -9924372413.00 -8.99% —
depreciation etc.Note: The major cost of sales items such as materials and depreciation are considered as business secrets. In order to avoid the
leakage of these secrets which could result in damage to the interests of the Company and its investors cost of sales is only
presented with respect to the industry segment to which the Company belongs in the table above.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
The changes in the scope of consolidated financial statements for the Reporting Period had no significant impact on segment data.
25BOE Technology Group Co. Ltd. Annual Report 2021
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 82895383535.00
Total sales to top five customers as % of total sales of the
37.80%
Reporting Period (%)
Total sales to related parties among top five customers as %
0.00%
of total sales of the Reporting Period (%)
Information about top five customers:
Sales revenue contributed for the
No. Customer As % of total sales revenue (%)
Reporting Period (RMB)
1 Customer A 19853271622.00 9.05%
2 Customer B 18794700191.00 8.57%
3 Customer C 17115227423.00 7.80%
4 Customer D 13964581869.00 6.37%
5 Customer E 13167602430.00 6.00%
Total -- 82895383535.00 37.80%
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 23863826743.00
Total purchases from top five suppliers as % of total purchases of the Reporting Period
17.89%
(%)
Total purchases from related parties among top five suppliers as % of total purchases
0.00%
of the Reporting Period (%)
Information about top five suppliers:
Purchase in the Reporting Period
No. Supplier As % of total purchases (%)
(RMB)
1 Supplier A 8879944222.00 6.66%
2 Supplier B 5573211870.00 4.18%
3 Supplier C 3232676412.00 2.42%
4 Supplier D 3094661979.00 2.32%
5 Supplier E 3083332260.00 2.31%
26BOE Technology Group Co. Ltd. Annual Report 2021
Total -- 23863826743.00 17.89%
Other information about major suppliers:
□ Applicable √ Not applicable
3. Expense
Unit: RMB
Change
Item 2021 2020 Reason for any significant change
(%)
Selling
5484589978.00 3138283646.00 74.76% Increased operating revenue and changes to the consolidation scope
expense
Administr
ative 6693373589.00 4600271642.00 45.50% Increased operating revenue and changes to the consolidation scope
expense
Finance New project being put into operation and changes to the consolidation
3682379202.002650153972.0038.95%
costs scope
R&D
10668844187.00 7638602711.00 39.67% Greater R&D investments
expense
4. R&D Investments
√ Applicable □ Not applicable
Names of main Project Expected impact on the future
Project objectives Objectives to be achieved
R&D projects progress development of the Company
To make technological
To realize mass production To make technological
Development of breakthroughs in the
exceed the megapixel contrast breakthroughs in this aspect
BD Cell professional broadcast Under mass
and meet professional establish a favorable technological
broadcast monitors of BOE and meet production.requirements for brightness and and brand image and improve
monitors ultra-high optical
color gamut. product profitability.specifications.The complete series of products
To provide solutions with will include mobiles tablet PCs To occupy the high-end e-sports
ultra-high refresh rates to laptops displays and TV panels. market optimize the product
High refresh professional fields such as Under mass Refresh rates will be raised structure and raise the profitability
rate technology e-sports and sports events production. significantly. Flagship products of product portfolios based on
so that images will become such as multiple client laptops and BOE's independent and advanced
smoother. displays will be under mass technologies.production.To raise the contrast of LCD To significantly enhance the The increase in contrast will be
High contrast
products to strengthen In progress. contrast of LCD products and important for the improvement in
technology
image quality. reach a leading level in the the image quality of panels. Higher
27BOE Technology Group Co. Ltd. Annual Report 2021
industry. contrast will expose users to the
better image quality of high-end
products and strengthen product
competitiveness.To utilize BOE's unique organic
and eco-friendly backlight
To reach 90% in BT2020 and technology to achieve an ultra-high
High color To restore true
Under mass 100% in both DCI-P3 and Adobe color gamut and consider the high
gamut environmental colors
production. in terms of the standards for color gamut as an important
technology through a high color gamut.different color gamut. process of the ADS Pro brand
laying a favorable brand foundation
for product marketing.For consumers the reduction of
To reduce the power power consumption can prolong the
consumption of displays standby time of portable products.To significantly improve the light
prolong standby time For customers the reduction of
transmittance of the complete
Low-carbon and respond to the strategy of power consumption can meet
Under mass series of products strengthen the
eco-friendly peak carbon emissions and different product standards. For
production. luminous efficacy of the
technology carbon neutrality and turn corporate responsibilities more
backlight and simultaneously
products more eco-friendly products with lower
reduce power consumption.energy-saving and carbon emissions will be
eco-friendly. manufactured and a green
environment will be created.Healthy displays have attracted
increasing attention. Healthy and
eye-protecting products have been
To achieve functions such as low long-anticipated such as mobiles
To offer healthier and
blue light adaptive control of and tablet PCs for learning and
Healthy display eye-protecting displays for Under mass
brightness/color temperature office laptops and displays. The
technology educational and office production.rotatory polarization high gradual improvement in this
scenarios.frequency and total reflection. technology will prominently
reinforce companies'
competitiveness in education and
work.This product has been launched on
Development of
the Magic 4 series. The
low-temperatur 1. The refresh rate will enable the
The product technological competitiveness of
e To enhance the battery life free switch between high and low
client has this product will be enhanced by
polycrystalline of the machine through frequencies.been promoting LTPO as a standard
oxide (LTPO) low-frequency technology. 2. The flickering will be less than
launched. configuration of flagship mobiles
integration 45dB invisible to the naked eye.foldable products intelligent
technology
watches.Development of To make the hole closer to The product The border of the punch-hole Provide customers with more
28BOE Technology Group Co. Ltd. Annual Report 2021
technology to the top border and make the client has module of the display with a hole aesthetic product design and
narrow the hole hole border narrower and been diameter of 2.8mm will be strengthen product competitiveness
border of the whole machine design launched. 0.45mm. The screen-to-body ratio by quickly proposing mature plans
punch-hole more aesthetic. will be raised to make the display for independent design and
displays more aesthetic. processes.
1. To achieve 200000 times folds To provide the world's largest
Development of of screens in a large size. foldable products meet customers'
To develop foldable OLED Under mass
foldable OLED 2. To successfully achieve the performance requirements expand
laptop screens. production.laptop screens mass production of foldable new applications and establish the
laptops. image of f-OLED.
1. To fully complete the
1. To meet the functional development of bar-style products
requirement of fingerprint after and foldable displays + ultrasonic
To reserve relevant
Development of OLEDs are equipped with fingerprint.technologies and provide
under-display fingerprint identification: The 2. To achieve faster and more
new solutions of fingerprint R&D has
ultrasonic signal to noise ratio (SNR) > 4. To precise fingerprint identification
identification when a been
fingerprint pass reliability tests. and reach the flagship level in
"depolarization chip" or a completed
scanning 2. To complete the acceptance of fingerprint identification.high pixel density is adopted
technology displays and the 20*30mm 3. To realize integrated delivery of
for screens in the future.fingerprint identification BOE's displays + ultrasonic
processes fingerprint and raise the added
value of products.Glass MLED BLU products
feature a bigger size fewer 1. To address the issue of a high
panels and lower flickering. reliability risk regarding the PCB To set the partition grade based on
Besides its advantages also direct-type backlight multiple high-precision glass processes
include ultra-high partition panels of conventional TV AM-driven and high-precision die
contrast and brightness. products. bonding processes to develop
The conventional The product 2. To grasp the process route of advantages such as fewer panels
Development of
direct-type backlight client has glass MLED backlight products. high optical consistency multiple
COG MLED
indicators will be been 3. To provide customers with partitions and low flickering exert
backlight TVs
significantly improved to launched. 75-inch and 86-inch MLED effort for the application of glass
provide TV customers with backlight products with MLED backlight products in the
extreme experiences. 1000-grade partition ultra-high high-end TV market and lay a solid
Meanwhile efforts will be brightness of 1500nit ultra-high foundation for the expansion of
made to meet the reliability and 1 million-grade subsequent industries.requirements in the contrast.high-end TV market.To produce AM-driven tiled 1. To solve the issues of BOE manufactures MLED products
Development of display screens based on conventional PCB LED products featuring superior advantages such
Under mass
COG P0.9 P0.9 complete glass MLED such as high flickering high as seamless tiling extreme images
production.MLED products display scheme modules power consumption and a high and healthy and low flickering by
with high luminous efficacy reliability risk. utilizing its industry-leading side
29BOE Technology Group Co. Ltd. Annual Report 2021
and low flickering and 2. To grasp the process route of processes and technology a major
smoothly conduct mass glass MLED products. technological breakthrough of LED
production and delivery. 3. To provide customers with chips from milliampere to
MLED products that feature high microampere and self-developed
brightness high reliability 1 AM-driven schemes and offer
million-grade contrast seamless customers extreme experiences.tiling healthy and low flickering Meanwhile thanks to the
and extreme darkness. high-precision semiconductor
processes our products will enjoy
the innate advantage of small pitch
iteration.
1. To materialize MNT products
corresponding to single panels
BOE has invested in MNT
and address the issues of PCB
To satisfy high-end products based on its AM-driven
direct-type backlight of
requirements in the MNT schemes high-precision glass
conventional MNT products such
Gaming market and expand processes and high-precision die
as multiple panels and a high
Development of the presence in the glass bonding processes.reliability risk.COG MLED AM MNT by developing Under mass MLED e-sports application
2. To provide customers with
backlight MNT glass MLED backlight production. products are commensurate with
MLED backlight products that are
products products featuring ultra-high the high-end requirements of the
1000-grade partition ultra-high
brightness ultra-high e-sports market attributable to the
brightness of 1250nit ultra-high
partition and ultrathin high brightness color gamut and
reliability and 1 million-grade
modules. contrast of glass MLED
contrast.technology.
3. To invest in the MNT gaming
market.COB's market penetration rate has
1. To integrate the upstream
To produce PM-driven tiled gradually increased since 2021.resource pool of COB products.display screens based on BOE based on its own process
Development of 2. To grasp the COB process route
P1.25 complete the PCB routes has quickly entered the
COB Under mass of BOE's factory.MLED display scheme fine-pitch COB market to make
P1.25MLED production. 3. To provide customers with
modules and smoothly favorable preparation for the
products models with high luminous
conduct mass production subsequent market perception
efficacy and high visual effects
and delivery. market input and technology
and systematic COB products.progress.To develop 55-inch POB With respect to POB MLED
1. To integrate the upstream
MLED backlight products products BOE has systematically
Development of resource pool of MLED backlight
with high brightness integrated core resources and
POB MLED POB products.
100-grade partition and thin Under mass designed systematic plans for
backlight tiled 2. To provide customers with
modules to meet production. products laying a foundation for
commercial cost-effective medium- and
requirements of TVs entry into the large-size mainstream
display products high-end tiled display screen
commercial displays and markets such as TVs and
products.the tiled display screen commercial displays.
30BOE Technology Group Co. Ltd. Annual Report 2021
market.To center on the Group's
strategic vision of the "
Adhere to the Group's strategy of "
Screen-Connected IoT "
The R&D Screen-Connected IoT " develop
regard display technology as
project of a the R&D capabilities of smart
the core give full play to To have independent R&D
mobile smart terminal tablet PCs realize mutual
the key resources of display R&D has capabilities of smart terminal
terminal empowerment between the Group's
devices and the leading been architecture with ARM
platform whole machine and device
display technology and completed architecture as the core platform
centering on businesses and facilitate the
expand and upgrade the and tablet PC projects.ARM business expansion of the Group's
building of a smart terminal
architecture smart terminals in the next 3-5
platform ecosystem
years.centering on ARM
architecture.To center on the Group's
strategic vision of "
Adhere to the Group's strategy of "
Screen-Connected IoT "
Screen-Connected IoT " develop
regard display technology as
the R&D capabilities of laptop
The R&D the core give full play to
products establish new terminal
project of a PC the key resources of display To have independent R&D
R&D has production lines expand the
platform devices and the leading capabilities of laptop products
been product boundary through the
centering on display technology and with X86 architecture as the core
completed expansion of the technological
X86 combine the development platform and relevant products.boundary and facilitate the
architecture capabilities of the soft and
business expansion of the Group's
hard systems of terminal
smart terminals in the next 3-5
machines to establish
years.advantages in the terminal
product market.Connect internal and external
To enrich the intelligent TV To obtain the authorization of the
ecosystems intelligent TV projects
The project of production line strengthen three mainstream smart product
bridge the channel from devices to
oversea the competitiveness of Under mass platforms in the world complete
terminals to systems and utilize the
authorization of overseas intelligent TVs production. product development and
machine system ecosystem to drive
intelligent TVs and expand the overseas certification and achieve mass
the internal ecosystem
sales of intelligent TVs. production and delivery.transformation.The first application of quantum
To complete the development of
dots to the Company's display
The project of To give priority to analyzing the key indicators of displays. The
The product products and the mass production
quantum dot the improvement in color color gamut coverage will reach
client has have enriched the categories of the
e-sports gamut coverage through DCI-P3 95% Adobe RGB 99%
been Company's product line of high-end
displays with a quantum dots and restore sRGB 99% and NTSC 95%. The
launched. e-sports display products and laid a
high refresh rate true colors. refresh rate will reach 165Hz. The
solid foundation for the subsequent
response time will be within 1ms.and sustainable technological
31BOE Technology Group Co. Ltd. Annual Report 2021
improvement branding and
marketing.To provide high-end customers
with intelligent convenient and
To complete the effective application services in
development of the scenarios such as offices
industry's first Mini LED meetings and painting. To optimize users' interactive
smart whole products To allow the product to have experience of writing through
provide customers with precise light control based on display and touch technologies
The project of The product
whole products integrating 5000+ partitions reach the provide multiple intelligent office
development of client has
software and hardware contrast of 1000000: 1 and the functions intensify the office
smart whole been
strengths with satisfying color gamut coverage of NTSC efficiency of users reinforce the
products U1 launched.interactive experiences 95%. The TUV Rheinland brand competitiveness of BOE and
good stability and rich certification for low blue light the improve channel delivery
functions and meet user C-IDEA Design Award and the sustainably.requirements under multiple "Science and Technology Award"
scenarios. of the China Video Industry
Association (CVIA) were
obtained in 2021.To complete the building of the
To develop an IoT smart park digital platform
application integration achieve functions such as security
platform universal to the and protection management The smart park digital platform is
scenario of parks to quickly equipment management an implementation of the strategy
integrate system environmental space management of "Screen-Connected IoT" in the
The project of a applications display R&D has property operations and industrial park industry which
smart park products AIoT services and been investment attraction which face strengthens BOE's competitiveness
digital platform ecological hardware completed owners merchants and tourists in in digital solutions for industrial
terminals and offer the park complete the R&D of parks. The platform is designated to
customers comprehensive innovative functions such as serve as a new business growth
solutions of park intelligent video services and point.management operations system procedure automation and
and services. realize bulk copy and
implementation.To develop sub-systems To realize the three-tier This platform provides bank outlets
such as comprehensive management function of banks with comprehensive digital service
The project of
information release systems covering the head office capabilities through intelligent
an intelligent The product
precision marketing branches and sub-branches and systems and products integration
comprehensive client has
systems intelligent edge empower banks with the soft and hard strengths. It is an
financial been
computing systems and following six digital capabilities implementation of the strategy of
management launched.outlet portrait analysis during the whole process of "Screen-Connected IoT" in the
platform
systems for the scenario of customer service: Deepening financial industry designated to
bank outlets combine smart customers' impression enhancing enhance BOE's competitiveness in
32BOE Technology Group Co. Ltd. Annual Report 2021
terminals to provide bank customer experiences utilizing digital solutions in the financial
outlets with comprehensive big data conducting precision industry and deepen brand
services of digital marketing connecting online and influences.operations and management offline services and strengthening
and reinforce the comprehensive operations and
management and operations management.of outlets.Particulars about R&D personnel:
Item 2021 2020 Change (%)
Number of R&D personnel 19708 19694 0.07%
R&D personnel as % of total employees 24.80% 25.76% -0.96%
Educational background of R&D personnel —— —— ——
Bachelor’s degree 11780 11425 3.11%
Master’s degree 6035 6233 -3.18%
Age structure of R&D personnel —— —— ——
Below 30 9335 9986 -6.52%
30~40953087369.09%
Particulars about R&D investments:
Item 2021 2020 Change (%)
R&D investments (RMB) 12436495134.00 9441596318.00 31.72%
R&D investments as % of operating revenue 5.67% 6.97% -1.30%
Capitalized R&D investments (RMB) 2067727404.00 1939420807.00 6.62%
Capitalized R&D investments as % of total
16.63%20.54%-3.91%
R&D investments
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2021 2020 Change (%)
Subtotal of cash generated from operating activities 239061029152.00 169593756177.00 40.96%
33BOE Technology Group Co. Ltd. Annual Report 2021
Subtotal of cash used in operating activities 176790472828.00 130341982719.00 35.64%
Net cash generated from/used in operating
62270556324.0039251773458.0058.64%
activities
Subtotal of cash generated from investing activities 36759481145.00 25532266564.00 43.97%
Subtotal of cash used in investing activities 77472109931.00 68939233413.00 12.38%
Net cash generated from/used in investing activities -40712628786.00 -43406966849.00 ——
Subtotal of cash generated from financing activities 63655025447.00 70901578897.00 -10.22%
Subtotal of cash used in financing activities 75836895000.00 47083848940.00 61.07%
Net cash generated from/used in financing
-12181869553.0023817729957.00-151.15%
activities
Net increase in cash and cash equivalents 8558749712.00 17794414798.00 -51.90%
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
Net cash generated from operating activities increased 58.64% year on year primarily driven by the expansion of the Company's
operating revenue and the improvement of operating results.Net cash generated from financing activities decreased 151.15% year on year primarily driven by the repayment of borrowings and
the buyback of minority interests in subsidiary.Reason for any big difference between the net cash generated from/used in operating activities and the net profit for this Reporting
Period
√ Applicable □Not applicable
The net cash generated from operating activities was higher than the net profit primarily because the depreciation amount of display
equipment is high.V Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
As % of total
Item Amount Source/Reason Recurrent or not
profit
Return on
1347489345.00 3.89% Income recognized from associates Not
investment
Gain/loss on
changes in fair 84966963.00 0.25% N/A Not
value
Asset impairments -4478251852.00 -12.94% Inventory valuation allowances established based Not
34BOE Technology Group Co. Ltd. Annual Report 2021
on market conditions
Non-operating
131607946.00 0.38% N/A Not
income
Non-operating
55215102.00 0.16% N/A Not
expense
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2021 1 January 2021 Change in
Reason for any significant
Item As a % of total As a % of total percentage
Amount Amount change
assets assets (%)
Monetary assets 80986835088.00 18.01% 73694296095.00 17.35% 0.66% N/A
Accounts Increased operating
35503414820.007.89%22969140355.005.41%2.48%
receivable revenue
Contract assets 75698324.00 0.02% 49897395.00 0.01% 0.01% N/A
Increased operating
revenue and new project
Inventories 27724806939.00 6.16% 17875454490.00 4.21% 1.95%
being put into mass
production
Investment
1158365401.00 0.26% 1196168511.00 0.28% -0.02% N/A
property
Long-term equity
6040948317.00 1.34% 3693170224.00 0.87% 0.47% N/A
investments
Fixed assets 226695489704.00 50.41% 224770354605.00 52.92% -2.51% N/A
Construction in
32120320507.00 7.14% 42575849952.00 10.02% -2.88% N/A
progress
Right-of-use
753164237.00 0.17% 618678956.00 0.15% 0.02% N/A
assets
Short-term
2072057332.00 0.46% 8599569471.00 2.02% -1.56% N/A
borrowings
Contract liabilities 3765081554.00 0.84% 3440720535.00 0.81% 0.03% N/A
Long-term
116078666587.00 25.81% 132452767135.00 31.18% -5.37% N/A
borrowings
Lease liabilities 669130264.00 0.15% 549031243.00 0.13% 0.02% N/A
Indicate by tick mark whether overseas assets account for a larger proportion of total assets.□ Applicable √ Not applicable
35BOE Technology Group Co. Ltd. Annual Report 2021
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on Impairment
Cumulative fair-value
fair-value changes allowance for Purchased in the Sold in the Other
Item Beginning amount changes charged to Ending amount
in the Reporting the Reporting Reporting Period Reporting Period changes
equity
Period Period
Financial assets
1. Held-for-trading financial
assets (excluding derivative 4367201833.00 84966963.00 0.00 0.00 37245240063.00 30990344616.00 0.00 10635068300.00
financial assets)
2.Derivative financial assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3. Investments in other debt
0.000.000.000.000.000.000.000.00
obligations
4. Investments in other equity
533645423.000.00-215438631.000.0039270175.000.000.00519088146.00
instruments
Subtotal of financial assets 4900847256.00 84966963.00 -215438631.00 0.00 37284510238.00 30990344616.00 0.00 11154156446.00
Investment property 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Productive living assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of the above 4900847256.00 84966963.00 -215438631.00 0.00 37284510238.00 30990344616.00 0.00 11154156446.00
Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Contents of other changes:
N/A
36BOE Technology Group Co. Ltd. Annual Report 2021
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
Item Ending carrying value Reason for restriction
Mainly include security deposits put in pledge for the
Monetary assets 4152705165.00
issuance of notes payable
Endorsed and transferred with right of recourse and put in
Notes receivable 23902855.00
pledge for the issuance of notes payable
Inventories 0.00 N/A
Fixed assets 171435160686.00 As collateral for guarantee
Intangible assets 1623510499.00 As collateral for guarantee
Construction in progress 316234570.00 As collateral for guarantee
Investment property 41247205.00 As collateral for guarantee
Total 177592760980.00 --
VII Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Investments made in this Reporting Period (RMB) Investments made in the prior year (RMB) Change (%)
2501899622.00933268059.00168.08%
37BOE Technology Group Co. Ltd. Annual Report 2021
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Profit/loss
on fair
Purchased Sold in
Accounting value Profit/loss in
Variety of Code of Name of Initial Beginning Cumulative fair value changes in this this Ending Accounting Funding
measurement changes this Reporting
securities securities securities investment cost carrying value charged to equity Reporting Reporting carrying value title source
model in this Period
Period Period
Reporting
Period
Other
Domestic/overseas Electronic Fair value equity
SH600658 90160428.00 74372840.00 0.00 -33521592.00 0.00 0.00 1924620.00 56638836.00 Self-funded
stock Zone method instrument
investment
Other
Domestic/overseas Bank of Fair value equity
HK01963 120084375.00 102845668.00 0.00 -28208687.00 0.00 0.00 9345312.00 91875688.00 Self-funded
stock Chongqing method instrument
investment
38BOE Technology Group Co. Ltd. Annual Report 2021
Other
New
Domestic/overseas Fair value equity
HK01518 Century 140848850.00 36995513.00 0.00 -121038365.00 0.00 0.00 0.00 19810485.00 Self-funded
stock method instrument
Healthcare
investment
Other securities investments held at the
0.00--0.000.000.000.000.000.000.00----
period-end
Total 351093653.00 -- 214214021.00 0.00 -182768644.00 0.00 0.00 11269932.00 168325009.00 -- --
Disclosure date of the announcement
about the board’s consent for the N/A
securities investment
Disclosure date of the announcement
about the general meeting’s consent for N/A
the securities investment (if any)
(2) Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0000
Ending
investment Actual
Purchased in
Relationship Related-party Initial Beginning Sold in the Impairment Ending amount as % gain/loss
Type of the
Counterparty with the transaction investment Start date End date investment Reporting allowance (if investment of the in the
derivative Reporting
Company or not amount amount Period any) amount Company’s Reporting
Period
ending net Period
asset value
Financial Not related Foreign 31 Dec.Not 118687.93 1 Jan. 2021 118687.93 35540.25 77082.21 - 77145.97 0.54% -307.53
institutions parties exchange 2021
39BOE Technology Group Co. Ltd. Annual Report 2021
forward
contract
Total 118687.93 -- -- 118687.93 35540.25 77082.21 - 77145.97 0.54% -307.53
Funding source Self-funded
Legal matters involved (if applicable) N/A
Disclosure date of the announcement about the board’s
N/A
consent for the derivatives investment (if any)
Disclosure date of the announcement about the general
N/A
meeting’s consent for the derivatives investment (if any)
As of the end of the reporting period the financial derivatives held by the company are foreign exchange forward contracts and the
Analysis of risks and control measures associated with
risks faced are related to the uncertainty of the foreign exchange market in the future. The company's control measures for the financial
the derivative investments held in the Reporting Period
derivatives are as follows: the company controls the types of derivative transactions reasonably matches the scale of derivative
(including but not limited to market liquidity credit
transactions and the transactions must match the company's production operation and development planning mainly for the purpose of
operational and legal risks etc.)
cost locking and risk prevention.Changes in market prices or fair value of derivative
investments in the Reporting Period (fair value analysis The fair value of the invested derivatives at the end of the reporting period shall be determined by reference to the market quotation of
should include measurement methods and related the external financial institutions.assumptions and parameters)
Significant changes in accounting policies and specific
accounting principles adopted for derivative investments
No major changes
in the Reporting Period compared to the last reporting
period
Opinion of independent directors on derivative
N/A
investments and risk control
40BOE Technology Group Co. Ltd. Annual Report 2021
5. Use of Funds Raised
√ Applicable □ Not applicable
(1) Overall Usage of Funds Raised
√ Applicable □ Not applicable
Unit: RMB’0000
Proportion
Total The usage Amount of
Accumulativ of
Total funds used Accumulat Total funds Total and funds
Way of e funds with accumulati
Year funds in the ive fund with usage unused destination raised idle
raising usage ve funds
raised Current used changed funds of unused for over
changed with usage
Period funds two years
changed
Continuou
sly used
Private for the
2021 placement 2033260 1749817 1749817 0 0 0.00% 283443 constructio 0
of stocks n of equity
investment
project
Total -- 2033260 1749817 1749817 0 0 0.00% 283443 -- 0
Explanation of overall usage of funds raised
The cumulative amount of raised funds through private placement of stocks was RMB20332599995.83 and the net proceeds after
deducting issuance costs were RMB19869507400. In the Reporting Period the raised funds were used according to project
investment plans conforming to the relevant promise.
(2) Commitment Projects of Fund Raised
√ Applicable □ Not applicable
Unit: RMB’0000
Accumul
Investme
Investme Investme ative Whether
Changed Committe nt Date of Realized
nt nt investme Whether occurred
Committed investment or not d schedule reaching income in
amount amount nt reached significan
project and super raise (includin investme as the intended the
after in the amount anticipate t changes
fund arrangement g partial nt period-en use of the Reporting
adjustme Reporting as of the d income in project
changes) amount d (3)＝ project Period
nt (1) Period period-en feasibility
(2)/(1)
d (2)
Committed investment project
Fuzhou BOE
Not 300000 300000 300000 300000 100.00% - - N/A Not
Optoelectronics
41BOE Technology Group Co. Ltd. Annual Report 2021
Technology Co. Ltd.Wuhan BOE
Optoelectronics Not 650000 650000 650000 650000 100.00% - - N/A Not
Technology Co. Ltd.Chongqing BOE
Display Technology Not 600000 600000 420330 420330 70.06% - - N/A Not
Co. Ltd.Yunnan Chuangshijie
Optoelectronics Not 100000 100000 0 0 0.00% - - N/A Not
Technology Co. Ltd.Chengdu BOE Hospital
Not 50000 50000 46227 46227 92.45% - - N/A Not
Co. Ltd.Supplementation of
Not 286951 286951 286951 286951 100.00% - - N/A Not
working capital
Subtotal of committed
--1986951198695117035081703508---------
investment project
Super raised funds arrangement
N/A
Total -- 1986951 1986951 1703508 1703508 -- -- - -- --
Condition and reason
for not reaching the
schedule and No such cases in the Reporting Period.anticipated income (by
specific items)
Notes of condition of
significant changes
Naught
occurred in project
feasibility
Amount usage and
schedule of super raise N/A
fund
Changes in
implementation
N/A
address of investment
project
Adjustment of
implementation mode N/A
of investment project
Advance investments Applicable
in projects financed As at 31 December 2021 the Company had replaced the prior invested funds of the committed investment
42BOE Technology Group Co. Ltd. Annual Report 2021
with raised funds and projects with the raised funds from the non-public offering of shares for a total amount of RMB6023.0660
swaps of such advance million . Of these RMB3 billion was to replace the Company's own funds invested in repaying the loan of
investments with Fuzhou Urban Construction Investment Group. RMB250 million was to replace the own funds invested in
subsequent raised BOE Health Investment Management Company Limited and RMB2773.0660 million was to replace the
funds own funds invested in Chongqing BOE Display Technology Co. Ltd.Idle fund
supplementing the
N/A
current capital
temporarily
Applicable
Amount of surplus in
As at 31 December 2021 the balance of the raised funds from the non-public offering of shares was
project implementation
RMB2875.9032 million representing the unused raised funds and interest income generated during the
and the reasons
deposit period.Usage and destination As of December 31 2021 the unspent raised funds will be paid for the purposes specified in the Issuance
of unused funds Report and Listing Notice.Problems incurred in
fund using and
Naught
disclosure or other
condition
(3) Changes in Items of Funds Raised
□ Applicable √ Not applicable
No such cases in the Reporting Period.VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
43BOE Technology Group Co. Ltd. Annual Report 2021
IX Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
Relationship
Name with the Principal activities Registered capital Total assets Net assets Operating revenue Operating profit Net profit
Company
R&D Production and sales of semi-conductor
Chongqing BOE
display device complete machine and relevant
Optoelectronics Subsidiary 19226000000.00 48094827703.00 38313768144.00 33808468804.00 12344357092.00 10497372366.00
products; import and export business and
Technology Co. Ltd.technology consulting of goods.Fuzhou BOE Investment construction R&D Production and
Optoelectronics Subsidiary sales of relevant products of TFT-LCD and its 17600000000.00 30885047739.00 22399433702.00 18248612653.00 5241728412.00 4569140153.00
Technology Co. Ltd. matching products.Investment construction R&D and production
Hefei BOE Display
Subsidiary of relevant products of TFT-LCD and its 24000000000.00 40130254060.00 2 4459810494.00 19853911826.00 3375737558.00 3314633885.00
Technology Co. Ltd.matching products.Beijing BOE Display Technical Development of TFT-LCD and
Subsidiary 17882913500.00 38687063601.00 23067372410.00 33711487459.00 3744769932.00 3263994432.00
Technology Co. Ltd. manufacturing and sales of LCD
44BOE Technology Group Co. Ltd. Annual Report 2021
Subsidiaries obtained or disposed in this Reporting Period
√ Applicable □ Not applicable
How the subsidiary was acquired or Effects on the overall operations and
Name of subsidiary
disposed of performance
Beijing Smart-Aero Display Technology
Negotiating transfer No significant effects
Co. Ltd.Other information on principal subsidiaries and joint stock companies:
N/A
X Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
XI Prospects
1. "1+4+N" development structure
Display Devices business: The Company will focus on optimizing the structure of LCD products and speed up the establishment of
a comprehensive leading position in the innovative application market; accelerate the improvement of OLED technology capability
continue to optimize the product structure and further strengthen the building of competitive advantages; proactively leverage the
advantages of the industry leader and continue to spearhead the healthy development of the industry.IoT Innovation business: The Company will enhance the designed capacity of smart terminal software and hardware integration
system strengthen the conversion of new technology to mass production and the technical reserve of innovative business and
continue to develop strategic customers strengthen cooperation with eco-partners strengthen the implementation of benchmark
projects enhance brand influence and accelerate the growth of business scale.Sensor and Solution business: The Company will continue to deepen the development of medical biology smart screens consumer
electronics microwave communications and industrial sensors to provide customers with high-performance products and services.MLED business: The Company will create a Mini/Micro LED product group with active driver and COG at its core and coordinated
development of SMD/COB strengthen the collaboration with upstream and downstream resources continuously enrich the product
mix enhance product competitiveness expand applications and expedite the development of business landscape.Smart Medical Engineering business: The Company will optimize the whole-cycle O+O health service closed-loop system
improve the unified membership management system connect platform services and enhance the core competitiveness of the digital
hospital while steadily promoting the building of Beijing Life Science and Technology Industrial Base.In other business areas based on the "1+4" capability distribution to reach the demand side and market side the Company will
achieve large-scale application scenarios which is the specific focus of BOE's IoT transformation and the frontier position to win the
challenge of transformation such as smart retail and Zhongxiangying. Additionally the Company will continue to deepen its
advantageous track to accelerate the growth of core capabilities and the opening of emerging application markets thereby launching
a new era of high quality and high speed growth of BOE.
2. Digital transformation
With the aim of building "a digital visible BOE" the Company will firmly promote a series of digital transformation to further
improve operational efficiency and business performance and boost long-term stable and high-quality development.
3. "Double carbon" task
The Company will further implement the concept of green development and undertake "double carbon" task in an orderly manner by
45BOE Technology Group Co. Ltd. Annual Report 2021
means of green management green products green manufacturing green recycling green investment and green actions.XII Communications with the Investment Community such as Researches Inquiries and
Interviews
√ Applicable □ Not applicable
Main discussions
Type of the Index to the
Way of and materials
Date Place communication Communication party relevant
communication provided by the
party information
Company
Main content:
Company
Penghua Fund China
2021-03-11 Conference By phone Institution 1. Main situation of
Room International Fund the industry;
2. Major operating
information of the
Company.Materials provided:
Company public materials
2021-03-11 Conference By phone Institution Akira Investment including Interim
Room Report 2020 Third
Quarterly Report
2020 Performance
Forecast for 2020
Company Main content:
By phone 196 institutions
2021-04-14 Conference Institution 1. Performance
One-site visit
Room including Acuitykp results of the www.cninfo.com.cn
Company Company
2021-04-19 Conference By phone Institution Turiya Capital 2. Main situation of
Room the industry;
Company 3. The Company's
China Merchants
2021-04-20 Conference One-site visit Institution major operating
Room Capital information;
4. Technologies and
innovations.Materials provided:
74 institutions
Company public materials
including SDIC
2021-04-22-2021-04-23 Conference One-site visit Institution including Annual
Room Chuangyi Industrial Report 2020
Fund Performance
Forecast for Q1
2021
2021-04-30 Company By phone Institution 141 institutions Main content: www.cninfo.com.cn
46BOE Technology Group Co. Ltd. Annual Report 2021
Conference 1. Performance
including Acuitykp
Room results of the
Company
Four institutions
2. Main situation of
Company including China the industry;
2021-05-06 Conference One-site visit Institution Reform Central 3. The Company's
Room
Enterprise Operation major operating
information;
and Investment Fund
4. Technologies and
20 institutions innovations.
Company including National Materials provided:
2021-05-10 Conference One-site visit Institution public materials Manufacturing
Room including Annual
Transformation and
Report 2020 First
Upgrade Fund Quarterly Report
2021
Three institutions
Company including Shanghai
2021-05-19 Conference One-site visit Institution Shanxi Investment
Room
Management Co.Ltd.Company
18 institutions
2021-05-20 Conference One-site visit Institution
Room including AVIC Trust
Company
Black Rock Asset
2021-05-28 Conference By phone Institution
Room Management
Company
2021-05-31 Conference One-site visit Institution CCB International
Room
15 institutions
Company
including China
2021-06-01 Conference One-site visit Institution
Room Mobile Capital
Holding Co. Ltd.Company www.cninfo.com.cn
Taikang Asset
2021-06-02 Conference One-site visit Institution
Room Management
Company
Seven institutions
2021-06-08 Conference One-site visit Institution
Room including Allianz GI
47BOE Technology Group Co. Ltd. Annual Report 2021
Company
2021-06-08 Conference By phone Institution Xingyin Investment
Room
Company FIL Investment
2021-06-09 Conference By phone Institution Management (Hong
Room
Kong) Limited
Company Huaxia Wealth
2021-06-09 Conference One-site visit Institution Management Huaxia
Room
Bank
Company
UG INVESTMENT
2021-06-10 Conference One-site visit Institution
Room ADVISERS LTD
Company
Huatai Securities
2021-06-10 Conference One-site visit Institution
Room Co. Ltd.Company Nine institutions
2021-06-16 Conference One-site visit Institution including Silk Road
Room
Fund Co. Ltd.
28 other institutions Main content:
Company 1. Performance
including CICC
2021-06-25 Conference One-site visit Institution results and major
Room Capital Operation operating
Co. Ltd. information of the
Company;
Company Seven institutions
2. Answer questions
2021-06-29 Conference One-site visit Institution including Fosun www.cninfo.com.cn
from investors.Room
Hi-tech Materials provided:
public materials
Ten institutions
Company including Annual
including Jiangxi
2021-07-05 Conference One-site visit Institution Report 2020 First
Room Copper Corporation Quarterly Report
Ltd. 2021.Company Main content:
117 institutions
2021-07-13 Conference By phone Institution 1. Performance
Room including Bofa results and major
www.cninfo.com.cn
Company operating
Five institutions
2021-07-14 Conference By phone Institution information of the
Room including Manulife Company;
48BOE Technology Group Co. Ltd. Annual Report 2021
2. Answer questions
Guangzhou
from investors.Company Gongkong Capital
Materials provided:
2021-07-14 Conference By phone Institution Management Co. public materials
Room
Ltd. Huaying including Annual
Report 2020 First
Securities
Quarterly Report
Six institutions 2021 Performance
Forecast for H1
including Beijing
Company 2021
Win Integrity
2021-07-14 Conference One-site visit Institution
Room Investment
Management Co. L
td.Company Main content:
117 institutions
2021-10-29 Conference By phone Institution 1. Performance
Room including Bofa results and major
Company operating
2021-12-07 Conference By phone Institution information of the Mobius Capital
Room Company;
2. Answer questions
from investors.Materials provided: www.cninfo.com.cn
public materials
Company including Annual
Black Rock Asset
2021-12-14 Conference By phone Institution Report 2020 First
Room Management Quarterly Report
2021 Interim
Report 2021 Third
Quarterly Report
2021
49BOE Technology Group Co. Ltd. Annual Report 2021
Part IV Corporate Governance
I General Information of Corporate Bonds
1. Standardized Operation and Perfection of Corporate Governance Structure of the Company in the Reporting Period
The Company has stringently followed laws and rules such as Company Law Securities Laws Code of Corporate Governance for
Listed Companies etc. and requirements of Guidelines of the Main-Board for the Standardized Operation of Companies to
continuously improve the corporate governance of the Company to perfect internal control system as well as to promote corporate
governance level of the Company.During Reporting Period the Company’s board of directors board of supervisors and senior executives strictly in line with the
requirement of related laws and Company rules and regulations perform their obligations; ensure the standardization and
effectiveness of corporate governance. During the Reporting Period the Company revised the Articles of Association and Rules of
Procedure of the Board and newly set up Financing Business Management System Implementing Rules for the Enterprise Annuity
Plan Further promote the standardization of the corporate governance level. During the Reporting Period the Company continued to
promote the Company’s governance in many ways. Actively arranged the Company's new directors supervisors to join special
training organized by the Securities regulatory bureau of Beijing regularly carry out the theme of the franco-prussian propaganda
inside the Company. The Company preserved the related party fund transaction external guarantee and regularly self-inspection of
the shareholding and its changes of the directors supervisors and senior executives through maintaining and perfecting the Shenzhen
Stock Exchange Investors Interactive Platform to strengthen the communication of the investors.In the Reporting Period corporate governance of the Company was perfected and operated normally which was in total compliance
with various requirements on corporate governance of listed companies. No problems such as horizontal competition or illegal
related-party transactions caused by partial restructuring or other reasons were found. The Company will continue to follow the
concept of “honesty standard transparency and responsibility” regulate itself and continuously improve the level of governance.Main governance of the Company was as follows:
(1) About Shareholders and Shareholders’ General Meetings
As per the Company’s Articles of Association shareholders enjoyed rights and assumed obligations according to the shares they held.Organizing and convening procedures of the Company’s shareholders’ general meetings were in compliance with laws and
regulations. The Company paid high attention to legal interests of its shareholders especially its minority shareholders. Meanwhile
on the basis of ensuring legitimacy and validity of shareholders’ general meetings actively provided conveniences including internet
voting for minority shareholders’ joining the general meeting of the shareholders.
(2) About Relationship between the Controlling Shareholder and the Company
The Company was independent from the controlling shareholder and the actual controller in terms of personnel assets financing
organization and business. The controlling shareholder and actual controller of the Company was able to strictly control its behaviors
with no direct or indirect intervention in the Company’s decision-making production and operating activities by violating relevant
laws regulations and the Articles of Association no behaviors in relation to occupying significant funds of the Company and no
behaviors in relation to asking the Company to provide guarantees for it or other parties.
(3) About Directors and the Board of Directors
During the Reporting Period the composition of the Board of Directors of the Company was in line with requirements of regulations
and the Company’s actual situation. All directors possessed necessary knowledge skills and quality for duty performance. They all
performed their duties as stipulated in the Articles of Association honestly faithfully and diligently. They learned about and kept a
constant focus on the Company’s production and operation its financial status and influence and risks of significant events. They
50BOE Technology Group Co. Ltd. Annual Report 2021
also took the initiative to search for information needed in their decision-making so as to ensure efficient operation and scientific
decision-making of the Board of Directors. Board sessions were organized and convened in strict compliance with the Articles of
Association and Rules of Procedure for the Board of Directors. There were three special committees under the Board of Directors
namely the Strategic Committee the Nomination Remuneration and Appraisal Committee and the Risk Control and Audit
Committee. The Company also formulated rules of procedure for all the said special committees so that they could perform better.
(4) About Supervisors and the Supervisory Committee
Within the Reporting Period the Supervisory Committee has enhanced its ability to supervise the legality and compliance of duty
performance of the Company’s financial staffs directors and senior managers. By way of attending shareholders’ general meetings
sitting in on board sessions checking the Company’s compliance with laws and finance periodically issuing its opinions on relevant
matters etc. the Supervisory Committee supervised the Company’s finance duty performance of directors and senior management
staffs management and capital flows between the Company and its related parties and safeguarded the legitimate interests and rights
of the Company and its shareholders. Sessions of the Supervisory Committee were organized and convened in strict compliance with
the Articles of Association and the Rules of Procedure for the Supervisory Committee so as to ensure the Supervisory Committee’s
activities for duty performance were rightful and valid.
(5) About Information Disclosure and Transparency
According to the Company Law the Stock Listing Rules of the Shenzhen Stock Exchange the Guidelines of the Main-Board for the
Standardized Operation of Companies Companies Publicly Issuing Securities Information Disclosure Standards on the Contents and
Formats No.2 - Content And Format of the Annual Report the Articles of Association and Management Methods for Information
Disclosure and other requirements the Company disclosed information in a timely and fair manner and ensured the factuality
accuracy and completeness of the information disclosed.The Company places great emphasis on communication with investors and has set up a dedicated team for investor relations. It
maintains active interaction with investors by means of shareholder meetings online performance presentations investor open days
the SZSE online interactive platform called Hudongyi investor hotlines and investor mailboxes. It also engages in communication
with investors answers their questions heeds their suggestions and facilitates the exercise of shareholders' rights. The Company
aims to promote the open transparent efficient and consistent communication between the Company investors and analyst of
securities made them known more about the strategy operation and development of the Company. As unremitting effort was made
to establish the investor relations communication platform the Company innovated and developed the investor relations mini APP.While the communication will become more convenient between the investor and the Company via the digital platform the
compliance and fairness of the investor relations work can also be guaranteed. In terms of investor protection the Company uses a
combination of online and offline means to strengthen its publicity and education efforts for investors. The Company has opened up
new media channels such as "Weibo WeChat and news apps" and released publicity information of activities such as "National
Investor Protection Promotion Day". The "Investor Protection" column is set up under the "Investor Relations" section of the
Company's official website and a series of articles on investor education are released in conjunction with hot topics. In addition the
Company cooperates with brokerage firms and provides educational lectures and training to investors which are well received by
investors
2. Governance Systems of the Company Revised during the Reporting Period
During the Reporting Period based on the development demand the Company revised some governance systems which had been
disclosed on Cninfo and details were presented in the following table:
Disclosure date Name of system Established/Revised
Composition and Rules of Procedure for Execution Committee under
13 April 2021 Revised
the Board of Directors
13 April 2021 Measures for Administration of External Investments Revised
51BOE Technology Group Co. Ltd. Annual Report 2021
14 December 2021 Articles of Association Revised
Indicate by tick market whether there is any material in-compliance with laws administrative regulations and the regulatory
documents issued by the CSRC governing the governance of listed companies.□ Yes √ No
No such cases in the Reporting Period.II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Business Personnel Asset Organization and Financial Affairs
The Company was independent from the controlling shareholder and the actual controller in terms of business personnel assets
organization and financing with independent & complete business and capability to operate independently.
1. In business the Company was independent from the controlling shareholder and the actual controller with its own production and
business departments and management system the Company had the capability to make its own decisions assume sole responsibility
for its profits and losses and operate independently with independent and complete business.
2. In personnel the Company was completely independent in labor staff and remunerations. The Company had its own operating
management team. Chief of Executive Committee President Chief Financial Officer Secretary of the Board as well as other senior
management staffs of the Company all worked on full-time basis in the Company and did not hold any post in or receive any
remuneration in the controlling shareholder unit.
3. In assets the Company had independent and complete assets. With clear ownership on its assets the Company independently
owned the production system ancillary production system as well as supporting facilities for major businesses as well as assets like
land use rights and intellectual property rights etc.. Neither the controlling shareholder nor the actual controller appropriated any
assets of the Company.
4. In organization the Company had established its organization completely independent from the controlling shareholder and the
actual controller with independent and sound organs and corporate governance structure. The Company had not handled any official
affairs jointly with the controlling shareholder or the actual controller. There were no subordinate relationships between the
controlling shareholder & its functional departments and the Company & its functional departments.
5. In financing the Company had established independent financial departments with full-time finance personnel. The Company had
also formulated a standard and independent finance accounting system as well as financial measurement system established the
corporate financial management archives and deployed relevant administrative personnel for them opened independent account in
bank and paid tax independently.III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Date of the
Meeting Type participati Disclosure date Meeting resolutions
meeting
on ratio
52BOE Technology Group Co. Ltd. Annual Report 2021
The following proposals were deliberated and
approved i.e. Proposal on the Company's
Compliance with the Conditions for Non-public
Offering of A Shares Proposal on the Program of
the Company's Non-public Offering of A Shares
Proposal on Preliminary Plan for the Company's
Non-public Offering of A Shares in 2021 Proposal
on Feasibility Analysis Report on the Use of Funds
Raised from the Company's Non-public Offering of
A Shares in 2021 Proposal on the Signing of the
Conditional Subscription Agreement for the
Company's Non-public Offering of A Shares and
Related Transactions between the Company and
Jingguorui Fund Proposal on the Non-requirement
to Prepare a Report on the Use of Previously
Raised Funds Proposal on the Company's
The 1st
Dividend Return Plan for Shareholders for the Next
Extraordinary Extraordinary
27 February Three Years (2021-2023) Proposal of the Company
General General 36.16% 26 January 2021
2021 on the Risk Warning and Remedies for Diluted
Meeting of Meeting
Immediate Returns due to Non-public Offering of
2021
A Shares Proposal on the Commitments of
Directors Senior Management Controlling
Shareholders and de facto controllers of the
Company regarding the Remedies for Diluted
Immediate Returns Due to the Company's
Non-public Offering of A Shares in 2021 Proposal
to Approve the Audit Report and Asset Appraisal
Report in Connection with the Non-public
Offering Proposal on Independence of Appraisal
Institution Reasonableness of Appraisal
Assumptions Relevance of Appraisal Methodology
to the Purpose of Appraisal and Fairness of
Appraisal Pricing Proposal to Request the
Company's General Meeting to Authorize the
Board of Directors to Handle Specific Matters of
the Non-public Offering of A Shares.The following reports and proposals were
deliberated and approved i.e. Report on the Work
of the Board of Directors for 2020 Report on the
The 2020 Annual
Work of the Board of Supervisors for 2020 Full
Annual General General 32.33% 18 May 2021 19 May 2021
Annual Report and Summary for 2020 Financial
Meeting Meeting
Final Report for 2020 and Business Plan for 2021
Proposal for the Distribution of Profits for 2020
Proposal on Borrowing and Credit Line Proposal
53BOE Technology Group Co. Ltd. Annual Report 2021
on the Development of Capital Guaranteed Wealth
Management and Structured Deposit Business
Proposal on the Intended Appointment of an Audit
Agency for 2021 Proposal for the Election of Mr.Zhang Xinmin as an Independent Director of the
Ninth Session of the Board of Directors.The 2nd
Extraordinary Extraordinary The Proposal on the Repurchase and Write-off of
16 September 17 September
General General 20.53% Certain Restricted Shares was deliberated and
20212021
Meeting of Meeting approved.
2021
The Proposal on the By-election of
Non-Independent Directors of the Ninth Session of
The 3rd
the Board of Directors of the Company the
Extraordinary Extraordinary
14 December 15 December Proposal on the By-election of Supervisors of the
General General 21.66%
2021 2021 Ninth Session of the Board of Supervisors of the
Meeting of Meeting
Company and the Proposal on the Amendment of
2021
the Articles of Association of the Company were
deliberated and approved.
54BOE Technology Group Co. Ltd. Annual Report 2021
2. Extraordinary General Meetings Convened at the Request of Preferred Shareholders with Resumed Voting Rights
□ Applicable √ Not applicable
V Directors Supervisors and Senior Management
1. Basic Information
Number of Increase Decrease
Beginning granted in the in the Other Ending Reason
Stock
Name Office title Incumbent/Former Gender Age Start of tenure End of tenure shareholding restricted Reporting Reporting increase/decrease shareholding for
options
(share) shares Period Period (share) (share) change
(share) (share) (share)
Chairman of the
Chen Board Chief of
Incumbent Male 56 28 June 2019 27 June 2022 2900000 0 2000000 0 0 0 2900000 N/A
Yanshun Executive
Committee
Pan Vice Chairman of the
Incumbent Male 42 28 June 2019 27 June 2022 0 0 0 0 0 0 0 N/A
Jinfeng Board
Vice Chairman of the
Board President
Liu
Vice Chairman of Incumbent Male 57 28 June 2019 27 June 2022 2480000 0 1800000 0 0 0 2480000 N/A
Xiaodong
Executive
Committee
Song Jie Director Incumbent Male 54 28 June 2019 27 June 2022 0 0 0 0 0 0 0 N/A
Director member of
Sun Yun Executive Incumbent Female 52 28 June 2019 27 June 2022 1989481 0 1500000 0 0 0 1989481 N/A
Committee
55BOE Technology Group Co. Ltd. Annual Report 2021
Executive vice
president CFO
Director member of
Executive
Gao Committee
Incumbent Male 46 28 June 2019 27 June 2022 1860700 0 1500000 0 0 0 1860700 N/A
Wenbao Executive vice
president CEO of
the Display Business
14 December
Ye Feng Director Incumbent Male 56 27 June 2022 0 0 0 0 0 0 0 N/A
2021
Hu Xiaolin Independent director Incumbent Male 43 28 June 2019 27 June 2022 0 0 0 0 0 0 0 N/A
Li Xuan Independent director Incumbent Male 53 28 June 2019 27 June 2022 0 0 0 0 0 0 0 N/A
Tang
Independent director Incumbent Male 69 30 May 2020 27 June 2022 0 0 0 0 0 0 0 N/A
Shoulian
Zhang
Independent director Incumbent Male 59 18 May 2021 27 June 2022 0 0 0 0 0 0 0 N/A
Xinmin
Chairman of the
Yang
Supervisory Incumbent Male 60 28 June 2019 27 June 2022 0 0 0 0 0 0 0 N/A
Xiangdong
Committee
Sun 14 December
Supervisor Incumbent Male 48 27 June 2022 0 0 0 0 0 0 0 N/A
Fuqing 2021
Wei
Supervisor Incumbent Male 54 28 June 2019 27 June 2022 0 0 0 0 0 0 0 N/A
Shuanglai
Chen
Supervisor Incumbent Female 49 28 June 2019 27 June 2022 0 0 0 0 0 0 0 N/A
Xiaobei
Shi Hong Supervisor Incumbent Female 39 28 June 2019 27 June 2022 0 0 0 0 0 0 0 N/A
56BOE Technology Group Co. Ltd. Annual Report 2021
Xu
Employee supervisor Incumbent Male 47 28 June 2019 27 June 2022 35000 0 0 0 0 0 35000 N/A
Yangping
He Daopin Employee supervisor Incumbent Male 52 28 June 2019 27 June 2022 32600 0 0 0 0 0 32600 N/A
Yan Jun Employee supervisor Incumbent Male 50 28 June 2019 27 June 2022 32000 0 0 0 0 0 32000 N/A
Teng Jiao Employee supervisor Incumbent Male 39 28 June 2019 27 June 2022 55200 0 0 0 0 0 55200 N/A
Member of
Executive
Yao
Committee Incumbent Male 44 28 June 2019 27 June 2022 1265000 0 1000000 0 0 0 1265000 N/A
Xiangjun
Executive vice
president
Member of
Executive
Zhang Committee
Incumbent Male 51 28 June 2019 27 June 2022 1498800 0 1000000 0 0 0 1498800 N/A
Zhaohong Executive vice
president CEO of
LED business
Member of
Executive
Zhong Committee
Incumbent Male 51 28 June 2019 27 June 2022 1310000 0 1000000 0 0 0 1310000 N/A
Huifeng Executive vice
president Chief
Performance Officer
Member of
Executive
Feng
Committee Incumbent Female 49 28 June 2019 27 June 2022 1360000 0 1000000 0 0 0 1360000 N/A
Liqiong
Executive vice
president lead
57BOE Technology Group Co. Ltd. Annual Report 2021
counsel
Member of
Executive
Xie Committee Senior
Incumbent Male 51 28 June 2019 27 June 2022 1057000 0 750000 0 0 0 1057000 N/A
Zhongdong v ice president
Auditor General
Chief Risk Officer
Member of
Executive
Miao
Committee vice Incumbent Male 48 28 June 2019 27 June 2022 758800 0 650000 0 0 0 758800 N/A
Chuanbin
president Chief
Culture Officer
Vice president Chief
Reform and IT
Zhang Yu Management Officer Incumbent Male 51 22 March 2021 27 June 2022 751600 0 634000 0 0 0 751600 N/A
Chief Human
Resource Officer
Vice president
Liu
Secretary of the Incumbent Male 43 22 March 2021 27 June 2022 1024500 0 750000 0 0 0 1024500 N/A
Hongfeng
Board
Wang 15 October
Director Former Male 52 28 June 2019 0 0 0 0 0 0 0 N/A
Chenyang 2021
24 November
Li Yantao Director Former Male 40 28 June 2019 0 0 0 0 0 0 0 N/A
2021
Wang
Independent director Former Male 58 28 June 2019 18 May 2021 0 0 0 0 0 0 0 N/A
Huacheng
Wang Jing Director Former Female 50 14 December 17 March 2022 0 0 0 0 0 0 0 N/A
58BOE Technology Group Co. Ltd. Annual Report 2021
2021
24 November
Xu Tao Supervisor Former Male 57 28 June 2019 0 0 0 0 0 0 0 N/A
2021
Total -- -- -- -- -- -- 18410681 0 13584000 0 0 0 18410681 --
Indicate by tick mark whether any directors or supervisors left or any senior management were disengaged during the Reporting Period
√ Yes □ No
1. Mr. Wang Huacheng an independent director of the Company resigned from his position as an independent director and other positions of the relevant committees of the Board of Directors
as he had served as an independent director of the Company for six consecutive years. He would not hold any position in the Company after his resignation. After Mr. Wang Huacheng resigned
from his position as an independent director the number of independent directors on the Board of Directors of the Company was three which did not satisfy the ratio of one-third representation
of the independent directors on the Board of Directors therefore Mr. Wang Huacheng would continue his duties as an independent director and serve the relevant committees of the Board of
Directors until a new independent director was elected at the General Meeting of the Company on 18 May2021.
2. The Board of Directors of the Company received a resignation letter from Mr. Wang Chenyang a non-independent director of the Company on October 15 2021. Mr. Wang Chenyang
submitted his resignation as a non-independent director of the Company and related positions of the special committee of the Board of Directors due to work arrangement and will not hold any
position in the Company after his resignation.
3. The Board of Directors of the Company received a resignation letter from Mr. Li Yantao a non-independent director of the Company on 24 November 2021. Mr. Li Yantao submitted his
resignation as a non-independent director of the Company and related positions of the special committee of the Board of Directors due to work arrangement and will not hold any position in the
Company after his resignation.
4. The Board of Supervisors of the Company received the resignation from Supervisor Mr. Xu Tao on 24 November 2021. Mr. Xu Tao submitted his resignation as a supervisor of the Company
due to work arrangement and will not hold any position in the Company after his resignation.
59BOE Technology Group Co. Ltd. Annual Report 2021
Change of Directors Supervisors and Senior Management
√Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Independent Left for term
Wang Huacheng 18 May 2021 Left for term expiration
director expiration
Independent
Zhang Xinmin Elected 18 May 2021 Elected
director
Wang Chenyang Director Left 15 October 2021 Resign
Li Yantao Director Left 24 November 2021 Resign
Xu Tao Supervisor Left 24 November 2021 Resign
Wang Jing Director Elected 14 December 2021 Elected
Ye Feng Director Elected 14 December 2021 Elected
Sun Fuqing Supervisor Elected 14 December 2021 Elected
Wang Jing Director Left 17 March 2022 Resign
2. Biographical Information
Professional backgrounds major work experience and current duties in the Company of the incumbent directors supervisors and
senior management
Director
Mr. Chen Yanshun Master of Economics senior accountant he had served in the Company from the year of 1993 has taken the
posts of Secretary of the Board of the 1st Board of Directors of the Company Secretary of the 2nd Board of Directors and Vice
President Executive Director of the 3rd Board of Directors and Senior Vice President Executive Director of the 4th 5th and the 6th
Board of Directors and President and Vice Chairman of the 7th Board of Directors and President Vice Chairman of the 8th Board of
Directors Chairman of Executive Committee (CEO) Chairman of the Board of Beijing BOE Optoelectronics Technology Co. Ltd
and Chairman of the Board of many subordinate subsidiaries such as Hefei BOE Optoelectronics Technology Co. Ltd. and
Chongqing BOE Optoelectronics Technology Co. Ltd.Now he takes the posts of Chairman of the 9th Board of Directors of the Company and Chief of Executive Committee BOE
Optoelectronics Holdings Co. Ltd. BOE Optoelectronics Technology Co. Ltd. and BOE Technology (Hong Kong) Co. Ltd. Vice
Chairman of Beijing BOE Investment Development Co. Ltd. Chairman of the Board of Beijing Kechuang Intelligent Technology
Development Co. Ltd. and BOE Smart Technology Co. Ltd. Meanwhile he serves as Vice Chairman of China Information
Technology Industry Federation（CITIF） Vice Chairman of China Optics & Optoelectronics Manufactures Association（COEMA）
Chairman of China Optics & Optoelectronics Manufactures Association LCB（CODA） Chief Supervisor of The Listed Companies
Association of Beijing and was awarded as National Model Worker in 2020 and honored as the Economic Figure of the Year by
China News Weekly in 2021.Mr. Pan Jinfeng senior management MBA senior economist. He once acted as a staff and a staff of Corporate Planning
Department of Shanghai Sales Company of Beijing Zhaowei Electronics (Group) Co. Ltd. Deputy Manager Manager of Operation
Department Manager of Zhaowei Building Project Department Assistant of GM Deputy GM GM of Zhaowei Industrial
Corporation of Beijing Zhaowei Electronics (Group) Co. Ltd. Executive Deputy President of Beijing Zhaowei Electronics (Group)
Co. Ltd. Deputy Secretary of Party Committee Director GM of Beijing Yiheng Electronics Group Co. Ltd. Assistant of GM and
60BOE Technology Group Co. Ltd. Annual Report 2021
Deputy GM of Beijing Electronics Holding Co. Ltd.Now he acts as the Vice Chairman of the 9th Board of Directors of the Company Secretary of CPC Director and GM of Beijing
Electronics Holding Co. Ltd. & Deputy Chairman of the Board of NAURA Technology Group Co. Ltd. Chairman of the Board of
Beijing Electronic Zone High-Tech Group Co.Ltd. and BE New Energy Technology (Jiangsu) Co. Ltd. Director of Beijing
Electronics Holding & SK Technology Co. Ltd. and Chairman of the Board of Beijing Integrated Circuit Equipment Innovation
Center Co. Ltd. and BE Aisite (Jiangsu) Technology Co. Ltd. & Vice Chairman of Beijing Youth Federation and Chairman of
Beijing Electronic Chamber of Commerce.Mr. Liu Xiaodong Bachelor’ degree Engineer he ever worked in Research Institute of Beijing Information Optics Apparatus. He
successively took the posts of Director Deputy General Manager and Secretary of CPC of Beijing Matsushita Color CRT Co. Ltd.Vice President of the Company and concurrently Director and General Manager of Beijing BOE Optoelectronics Technology Co.Ltd. Director and General Manager of Hefei BOE Optoelectronics Technology Co. Ltd. Chairman of the Board of Beijing BOE
Vision-electronic Technology Co. Ltd. Director and GM of Hefei Xinsheng Optoelectronics Technology Co. Ltd. Deputy
Chairman of the Board of Chongqing BOE Optoelectronics Technology Co. Ltd. Director of TPV Display Technology (China)
Limited and Fuzhou BOE Optoelectronics Technology Co. Ltd. Chairman of the Board of Beijing BOE Sensor Technology Co.Ltd. Director of the 7th Board of Directors Executive Vice President COO Director of the 8th Board of Directors Deputy Chairman
of Executive Committee President & COO of the Company.Now he takes the posts of Vice Chairman of the 9th Board of Director President Deputy Chairman of Executive Committee of the
Company Chairman of Mianyang BOE Optoelectronics Technology Co. Ltd. Chongqing BOE Display Technology Co. Ltd.Wuhan BOE Optoelectronics Technology Co. Ltd. Yunnan Chuangshijie Optoelectronics Technology Co. Ltd. and Fuzhou BOE
Display Technology Co. Ltd. Executive Director of Beijing BOE Technology Development Co. Ltd. and Director of Hefei BOE
Display Technology Co. Ltd.Ms. Wang Jing BA in Finance LLM MBA Senior Economist. Previously she served as a clerk in the Securities Department and
Deputy Director of the Securities Office of Beijing Lightbus Corp. Ltd. a cadre in the Comprehensive Department of Beijing
Municipal Economic Reform Commission Assistant Manager and Deputy Manager of Financing Department of Beijing Enterprises
Holding Limited (Hong Kong headquarter) Manager of Enterprise Management Department of Beijing Holdings Investment
Management Limited Deputy General Manager of Beijing Jingtai Investment Management Center of Jingtai Group Manager of
Enterprise Management Department of Jingtai Group Assistant General Manager of Jingtai Group Chairman and General Manager
of Lugang International Logistics Co. Ltd. General Manager of Investment Management Department of Beijing State-owned
Capital Operation and Management Center Deputy General Manager of Beijing State-owned Capital Operation and Management
Center Director of the Ninth Session of the Board of Directors of the Company.Currently she is a Deputy General Manager of Beijing State-owned Capital Operation and Management Company Limited (formerly
Beijing State-owned Capital Operation and Management Center) a Director of Beijing Jingguorui Investment Management
Company Limited a Director of Beijing Equity Investment Development and Management Company Limited a Supervisor of
Beijing Municipal Government Investment Guidance Fund Management Company Limited a Supervisor of Beijing Guoyi Hospital
Company Limited.Mr. Song Jie Senior Economist MBA of Peking University Countries travelled visiting scholar of University of Sydney from Feb
2005 to Mar. 2006. He once worked as Assistant Engineer of Design Institute Wire Plant of Shougang Corporation Officer of
Project examination and approval of Beijing Economic and Technological Development Zone Management Committee Officer of
Foreign Investment Service Center the Director of Yi Da Tong Paging Center Deputy General Manager of Chinese Human Genome
Research Center Beijing (SinoGenoMax Co. Ltd.) Project Manager of East Zone Sewage project of Beijing Yizhuang Investment
61BOE Technology Group Co. Ltd. Annual Report 2021
Holdings Co. Limited Director of the 7th Board of Directors of the Company Director of the 8th Board of Directors of the Company.Now he is the Director of the 9th Board of Directors of the Company GM of Beijing Yizhuang Investment Co. Limited.Ms. Sun Yun Master of Business a Senior Accountant. She successively took the posts of Deputy Chief Chief of Finance
Department of the Company as well as Deputy CFO and Chief Auditor of the Company Director of the 8th Board of Directors
Director of Erdos Yuansheng Optoelectronics Co. Ltd. Beijing BOE Video Technology Co. Ltd. Beijing BOE Multimedia Science
and Technology Co. Ltd. BOE Health Investment Management Co. Ltd. Beijing BOE Matsushita Color CRT Innovation Co. Ltd.and Supervisor of Beijing Orient Vacuum Electric Co. Ltd.Now she is Director of the 9th Board of Directors Member of Executive Committee Executive Vice President and CFO of the
Company Director of Beijing BOE Land Co. Ltd. Director of Beijing Yinghe Century Land Co. Ltd. Director of BOE Smart
Technology Co. Ltd. Chairman of the Board of BOE Innovation Investment Co. Ltd.Mr. Gao Wenbao PhD in Microelectronics and Solid State Electronics. He joined the Company in 2003 and served as Section
Chief Head of Product Technology Deputy Director of Technology Executive Deputy General Manager of BOE General Manager
of TPC SBU and General Manager of Chongqing BOE Display Technology Co. Ltd.He is currently a Director a member of the Executive Committee and Executive Vice President of the Ninth Session of the Board of
Directors Chief Executive Officer of the Display Business Executive Director and Chairman of the Board of Directors of BOE
Varitronix Limited and Chairman of Beijing Zhongxiangying Technology Co. Ltd.Mr. Ye Feng BS in Engineering Engineer. Previously he served as Deputy Factory Manager of Beijing Jianzhong Machinery
Factory a Director of the Board of Directors and General Manager of Beijing Qixing Huachuang Electronic Co. Ltd. Vice President
of Beijing Beiguang Electron Group Co. Ltd. Factory Manager of Beijing Dahua Radio Instrument Factory Chairman of Beijing
Dahua Radio Instrument Company Ltd.He is currently a Director of the Ninth Session of the Board of Directors a full-time Director assigned by Beijing Electronic Holding
Co. Ltd. a Director of Beijing Zhaowei Electronics (Group) Co. Ltd. and a Director of NAURA Technology Group.Independent Director
Mr. Hu Xiaolin doctor associate professor of Tsinghua University artificial intelligence professor used to be the independent
director of the 8th Board of Directors of the Company.Now he serves as the Independent Director of the 9th Board of Directors of the Company and Hefei Chipmore Technology Co. Ltd
Editorial Board Member of IEEE Transactions on Image Processing and Cognitive Neurodynamics.Mr. Li Xuan Doctor of Law Associate Professor was formerly the Deputy Director of the Law Department of Central University
of Finance and Economics Deputy Dean of the Law School and Director of the Office of Legal Affairs; government legal advisor of
the National Mine Safety Administration; Independent Director of China Minzu Securities Co. Ltd. and China Shengmu Organic
Milk Limited. (Listed in Hong Kong Exchanges and Clearing Limited) Independent Director of the 8th Board of Directors of the
Company.He is currently an Independent Director of the Ninth Session of the Board of Directors of the Company an Independent Director of
Beijing Yandong Microelectronics Company Limited an Independent Director of Beijing Dabeinong Technology Group Co. Ltd.an Independent Supervisor of China National Building Material Co. Ltd. (listed on the Hong Kong Stock Exchange) Chief of
Central University of Finance and Economics Master of Laws (J.M) Education Center Executive Dean of Public Policy-Making
Research Center of China University of Political Science and Law Deputy Chief of Committee for Social and Legal Affairs of
62BOE Technology Group Co. Ltd. Annual Report 2021
Beijing Municipal Committee of the CDL vice chairman of Case Study Association of China Law Society Executive Director of
Lawyer Law Research Institute a people's supervisor of Beijing and part-time arbitrator and lawyer.Mr. Tang Shoulian professor holds a master's degree.He has served as Director of Finance Office Dean of School of Management and Humanities Secretary of Party Committee of
School of Economics and Management Executive Dean of School of Economics and Management and Standing Committee of
Academic Committee and Chairman of Labor Dispute Mediation Committee of Beijing University of Posts and Telecommunications
(BUPT). He has served as a member of the Expert Committee on Telecommunications Economy of the Ministry of Industry and
Information Technology a permanent member of the Chinese Association of Market Development a standing member of the
Information Law Research Society of the China Law Society a senior member of the Chinese Society of Technology Economics a
standing member of the Commerce Statistical Society of China and a reviewer of the Management Science Department of the
National Natural Science Foundation of China.He is currently an Independent Director of the 9th Board of Directors.Mr. Zhang Xinmin Doctor of Management Professor was formerly the Dean of the International Business School of the
University of International Business and Economics and a member of CPC's Standing Committee and Vice President of the
University of International Business and Economics.He is currently an Independent Director of the Ninth Session of the Board of Directors of the Company an Independent Director of
Minmetals Development Co. Ltd. an Independent Director of Fudian Bank Co. Ltd. an Independent Director of Pomegranate
Investment Group Limited an external Supervisor of Xiamen International Bank Limited a professor of accounting and doctoral
supervisor of the International Business School at the University of International Business and Economics a member of the Business
Administration Discipline Review Group of the Academic Degrees Committee of the State Council Vice President of the China
Commercial Accounting Institute and an expert who enjoys special allowance from the State Council.Supervisor
Mr. Yang Xiangdong postgraduate. He once worked as chief of Technology Security Section minister of Sales Department and
minister of Materials Department in Beijing TV Accessories Third Factory Deputy GM of Beijing Jile Electronics Group Co. Ltd.Deputy GM of Beijing Sevenstar Electronics Co. Ltd. and Deputy GM of Beijing North Microelectronics Co. Ltd. Chairman of the
8th Supervisory Committee (convener)
Now he serves as the Chairman of the 9th Supervisory Committee assigned full-time Chairman of Supervisory Committee of Beijing
Electronics Holdings Co. Ltd. Chairman of Supervisory Committee of Beijing Zhaowei Electronic (Group) Co. Ltd. Chairman of
Supervisory Committee of Beijing Seven Star Huadian Technology Group Co. Ltd. Chairman of Supervisory Committee of
Kingstronic (Beijing) Limited Supervisor of Beijing Electronics Holding & SK Technology Co. Ltd. Supervisor of Beijing
Electronics New Energy Technology (Jiangsu) Co. Ltd. and supervisor of BEST Supervisor of Beijing Electronic Information
Technician College.Mr. Sun Fuqing Master of Engineering Senior Accountant. He was formerly Assistant Financial Manager of Beijing C & W
Electronics (Group) Co. Ltd. Manager of Finance Department of Beijing Tianlong Co. Ltd. Deputy Chief of Finance Department
of Beijing Electronics Holding Co. Ltd. Vice Dean of Beijing Information Technology College CFO of Beijing Dahua Radio
Instrument Factory Deputy Party Secretary Director and General Manager of Beijing Yiheng Electron Group Co. Ltd. and Deputy
Director of Adjustment Guarantee Center of Beijing Electronics Holding Co. Ltd.He is currently a Supervisor of the Ninth Session of the Board of Supervisors of the Company Chief Controller of Financial
Management Department of Beijing Electronics Holdings Limited and is also a Director of Beijing Electric Control Jiuyi Industrial
63BOE Technology Group Co. Ltd. Annual Report 2021
Development Company Limited Chairman and General Manager of Beijing BOE Investment Development Company Limited and a
Director of Beijing Capitel Co. Ltd.Mr. Wei Shuanglai MBA senior Engineer. He once acted as a staff of Beijing BBEF Electronics Group Co. Ltd. deputy director
of Technology Center director of General Labor Office Deputy GM of Beijing BBEF Digital Broadcasting and Television Co. Ltd.president assistant & minister of Television Department Executive President & Strategic Director Deputy GM & Executive
President Deputy Secretary of Party Committee Director GM in Beijing BBEF Science & Technology Co. Ltd. Vice Minister of
Technology Industry Department Minister of Market Department Head of Smart Equipment and System Business Department and
Operations Management Department in Beijing Electronics Holding Co. Ltd. and Deputy GM of Beijing Zhaowei Electronics
(Group) Co. Ltd.Now he acts as the Supervisor of the 9th Supervisory Committee of the Company Director of Special Business Department of
Beijing Electronics Holding Co. Ltd. & Director of Beijing Zhaowei Electronics (Group) Co. Ltd.and Beijing Dahua Electronic
Instrument Corporation
Ms. Chen Xiaobei bachelor economist. She once acted as deputy director of general office director of General Office (Party
Committee Office) Board Secretary and Supervisor in Hefei Construction and Investment Holding (Group) Co. Ltd.Now she acts as the Supervisor of the 9th Supervisory Committee of the Company Member of the Party Committee Director
Deputy GM and Board Secretary in Hefei Construction and Investment Holding (Group) Co. Ltd.Ms. Shi Hong Master of Economics Senior Economist Supervisor of the 7th Supervisory Committee of the Company Supervisor of
the 8th Supervisory Committee of the Company.Now he is the Supervisor of the 9th Supervisory Committee of the Company Vice GM and Director of Beijing Yizhuang Investment
Co. Ltd. & Chairman of the Board of Yizhuang Equity Investment Fund Management (Tianjin) Co. Ltd. Vice Chairman of the
Board of Schneider (Beijing) LV Appliance Co.Ltd. Member of Investment Decision Committee of China Reform Fund
Management Co. Ltd. Director of Beijing Jinyuan Jingkai Limited Liability Company for Sewage Treatment and Supervisor of
Beijing Boda Xinyuan House Real Estate Development Co. Ltd..Mr. Xu Yangping Master of Civil and Commercial Law. He was former Deputy Minister Minister of the Company’s Legal
Department and Employee Supervisor of the 7th Supervisory Committee of the Company Employee Supervisor of the 8th
Supervisory Committee of the Company
Now he acts as Employee Supervisor of the 9th Supervisory Committee of the Company Chief of the Group’s Legal Center Senior
Chief Officer and the Director of Board of Directors of Gaochuang (Suzhou) Electronics Co. Ltd Director of Beijing BOE Energy
Technology Co. Ltd. Director of Orient Chengqi (Beijing) Business Technology Co. Ltd. Nanjing BOE Display Technology Co.Ltd. Qingdao BOE Smart Technology Co. Ltd. Chengdu BOE Smart Technology Co. Ltd. Chongqing BOE Smart Technology
Co. Ltd. Suzhou BOE Smart Technology Co. Ltd. Yunnan BOE Smart Technology Co. Ltd. Shenzhen BOE Smart Technology
Co. Ltd. Guangzhou BOE Smart Technology Co. Ltd. BEHC Industrial Investment Co. Ltd. and Erdos BOE Energy Investment
Co. Ltd. Supervisor of BOE Smart Technology Co. Ltd. BOE Innovation Investment Co. Ltd. Tianjin BOE Innovation
Investment Co. Ltd. Beijing BOE Vacuum Electric Appliance Co. Ltd. Beijing BOE Technology Development Co. Ltd. BOE
Jingxin Technology Co. Ltd. Hefei BOE Ruisheng Technology Co. Ltd. BOE Digital Technology Co. Ltd. Beijing BOE Zhiwei
Biological Technology Co. Ltd. BOE Smart Technology Co. Ltd BOE Environmental Energy Technology Co. Ltd. Hefei BOE
Nursing Hospital Co. Ltd. and BOE Smart Internet Hospital (Chengdu) Co. Ltd.Mr. He Daopin master. He once worked as Production Supervisor Purchasing Supervisor Financial Manager Vice General
64BOE Technology Group Co. Ltd. Annual Report 2021
Manager of Beijing Oriental Aristocratic Paper Co. Ltd. Vice General Manager General Manager of Industrial Gas Underwriting
Company of Business Department of Park of the Company Management Representative of Business Department of Park Chief of
HR and Administrative Department Chief of Property Department and Chief of Labor Union Deputy Chief Chief of Party Mass
Work Department of the Company Corporate Cultural Center Employee Supervisor of the 8th Supervisory Committee of the
Company
He now serves as Employee Supervisor of the 9th Supervisory Committee of the Company Head of the North China Regional
Corporate Culture Center Chairman of Labor Union and Secretary of Committee for Discipline Inspection of Beijing BOE Display
Technology Co. Ltd. & Chief of Corporate Culture of the Display BG Chief of Corporate Culture of Beijing BOE Display
Technology Co. Ltd. and Vice Chairman of Labor Union of the Group.Mr. Yan Jun bachelor. He once acted as the Deputy GM of Beijing Nissin Electronic Precision Components Co. Ltd. Minister of
Corporate Culture/Party Affairs Department Chairman of Labor Union in Chongqing BOE Optoelectronics Technology Co. Ltd. and
Deputy Director of General Office of the Group.Now he acts as the Employee Supervisor of the 9th Supervisory Committee Deputy Head of Party Mass/Corporate Culture Center
Deputy Secretary of Discipline and Inspection Committee Deputy Chairman of Labor Union in the Company.Mr. Teng Jiao bachelor of Administration. He once acted as the Deputy Minister of Planning and Finance Department Minister of
Performance Analysis of the Company and Minister of Accounting Department of Beijing BOE Display Technology Co. Ltd.Director of Beijing Asahi Electronic Materials Co. Ltd. Beijing BOE Energy Technology Co. Ltd. Beijing BOE Health
Technology Co. Ltd. and Hefei BOE Hospital Co. Ltd. Supervisor of Beijing BOE CHATANI Electronics Co.Ltd. and Nanjing
BOE Information Technology Co. Ltd.Now he acts as the Employee Supervisor of the 9th Supervisory Committee Head of Finance Organization Accounting Taxation
Center Senior Director of the Company Director of Beijing BOE Vacuum Electric Co. Ltd. Director of Beijing BOE Matsushita
Color CRT Innovation Co. Ltd. Chengdu BOE Hospital Co. Ltd. Suzhou BOE Hospital Co. Ltd. and Gaochuang (Suzhou)
Electronics Co. Ltd. BOE Optical Science and Technology Co. Ltd. and BOE Environmental Energy Technology Co. Ltd.Senior Management
Mr. Yao Xiangjun MBA Chinese CPA. He once worked as Minister and Chief Inspector of Financing Department
of the Company CFO of Hefei BOE Optoelectronics Technology Co. Ltd. Director of Business Planning Center Chief
Strategic Officer of the Company CEO of Intelligent System Business Group Chairman of the Board of Beijing BOE Video
Technology Co. Ltd. Hefei BOE Video Technology Co. Ltd. Chongqing BOE Intelligent Electronic System Co. Ltd. BOE
Optical Science and Technology Co. Ltd. Beijing BOE Multimedia Science and Technology Co. Ltd. and BOE Smart IoT
Technology Co. Ltd.Now he serves as member of Executive Committee Executive Vice President of the Company Director of SES-imgotag and
Chairman of the Board of BOE Yiyun Technology Co. Ltd. and BOE Smart Retail (Hong Kong) Co. Limited.Mr. Zhang Zhaohong bachelor of inorganic nonmetallic materials engineer. He joined in the Company in 1992 he once worked as
CEO of the Display BG of BOE Chairman of the Board of Beijing BOE Optoelectronics Technology Co. Ltd. Chengdu BOE
Optoelectronics Technology Co. Ltd. Hefei BOE Optoelectronics Technology Co. Ltd. Erdos Yuansheng Optoelectronics Co. Ltd.and Fuzhou BOE Optoelectronics Technology Co. Ltd. Director of Wuhan BOE Optoelectronics Technology Co. Ltd. Chairman of
the Board of Beijing BOE Display Technology Co. Ltd. Chairman of the Board of BOE Health Investment Management Co. Ltd.Beijing BOE Health Technology Co. Ltd. and BOE Hyundai LCD Inc.Now he serves as the member of Executive Committee Executive Vice President and CEO of the MLED BG Chairman of the Board
65BOE Technology Group Co. Ltd. Annual Report 2021
of BOE Jingxin Technology Co. Ltd.Mr. Zhong Huifeng Master Degree awarded certification on Secretary of the Board of Shenzhen Stock Exchange. He ever took
posts of Securities Affairs Representative and Manager of Security Department of the 2nd Board of Directors Secretary to the Board
of the 3rd 4th and 5th Board of Directors of the Company Employee Supervisor of the 6th Supervisory Committee and Employee
Supervisor of the 7th Supervisory Committee Supervisor of Beijing Orient Top Victory Electronics Co. Ltd.. and Vice Secretary of
the CPC Secretary of Discipline Inspection Commission Principal of Labor Union CHO of the Company and President of BOE
University Member of the Third National Committee of China’s Defense of Posts and Telecommunications Union.Now he acts as member of Executive Committee Executive Vice President and Chief Performance Officer of the Company Director
of Beijing BOE Investment Development Co. Ltd.Ms. Feng Liqiong Bachelor Degree and Lawyer of the Company she has served as Senior Vice President and Minister of Legal
Affairs Department of the Company and as Secretary of the 5th and 6th Board of Directors.Now she is member of Executive Committee Executive Vice President Chief Counsel and Director of Beijing BOE Land Co. Ltd.and Beijing Yinghe Science & Century Technology Development Co. Ltd.Mr. Xie Zhongdong Master CIA. He has ever taken posts of Deputy Chief of Basic Construction Office in the Yi-Shu-Si Water
Conservancy Administration of Huaihe Water Resources Commission under the Ministry of Water Resource of P.R.C Chief and
Deputy Auditor of Auditing & Supervision Division of the Company Vice Chief and Chief of Auditing & Supervision Division of
Beijing BOE Optoelectronics Technology Co. Ltd.Now he acts as member of Executive Committee Senior Vice President Chief Audit Officer and Chief Risk Control Officer of the
Company & Vice President of Beijing Internal Audit Association Supervisor of Beijing BOE Optoelectronics Technology Co. Ltd.Beijing BOE Display Technology Co. Ltd. Erdos Yuansheng Optoelectronics Co. Ltd. Chongqing BOE Optoelectronics
Technology Co. Ltd. Hefei BOE Optoelectronics Technology Co. Ltd. Chengdu BOE Optoelectronics Technology Co. Ltd.Chongqing BOE Display Technology Co. Ltd. Beijing BOE Sensor Technology Co. Ltd. Beijing BOE Video Technology Co.Ltd. Gaochuang (Suzhou) Electronics Co. Ltd. Hefei BOE Video Technology Co. Ltd. and BOE Health Investment Management
Co. Ltd. Hefei BOE Display Technology Co. Ltd. Fuzhou BOE Optoelectronics Technology Co. Ltd. Nanjing BOE Display
Technology Co. Ltd. Chongqing BOE Intelligent Electronic System Co. Ltd. BOE Optical Science and Technology Co. Ltd.Beijing BOE CHATANI Electronics Co.Ltd. Nanjing BOE IT Co. Ltd. Hefei BOE Display Light Sources Co. Ltd. Chongqing
BOE Display Lighting Co. Ltd. BOE Smart IoT Technology Co. Ltd. Beijing BOE Multimedia Science and Technology Co. Ltd.Hefei BOE Hospital Co. Ltd. Chengdu BOE Hospital Co. Ltd. Beijing BOE Health Technology Co. Ltd. BOE Regenerative
Medical Technologies Co. Ltd. Suzhou BOE Hospital Co. Ltd. Beijing BOE Life Technology Co. Ltd. Beijing BOE Hospital Co.Ltd. Beijing BOE Marketing Co. Ltd. BOE Indonesia Co. Ltd. and Beijing BOE Living Technology Co. Ltd.Mr. Miao Chuanbin Master degree once worked as Manager of Market Department Beijing Wireless Power Plant Putai
Technology Company Secretary of Party Committee Work Department and Deputy Secretary of Beijing Wireless Power Plan
Deputy General Manager of Beijing Ether-led Electronic Group Co. Ltd. Secretary of Party Committee Work Department
Enterprise Minister of Culture of Beijing Electronics Holdings Co. Ltd Employee Supervisor of the 7th Supervisory Committee of
the Company Employee Supervisor of the 8th Supervisory Committee of the Company.Now he is the member of Executive Committee vice president CCO of the Company Deputy Secretary of CPC Secretary of the
Commission for Discipline Inspection Union Chairman of the Company Deputy Chairman of Beijing Industry (National Defense)
Labor Union member of Beijing Electronic Union member of Beijing Industrial Movement Theory Research Association and
66BOE Technology Group Co. Ltd. Annual Report 2021
member of the Commission for Discipline Inspection in Beijing Electronics Holding Co. Ltd.Mr. Zhang Yu engineer holds a master's degree. He has served as the Deputy Director of the Executive Office of the Company
General Manager of Hefei Office Supervisor of Hefei Xinsheng Optoelectronics Technology Co. Ltd. Director of Hefei
Xinjingyuan Electronic Materials Co. Ltd.and Hefei BOE Optoelectronics Technology Co. Ltd.He is currently the Vice President Chief Human Resources Officer and Chief Reform and IT Management Officer of the Company
and Supervisor of Hefei BOE Zhuoyin Technology Co. Ltd. He was awarded the "National Model Worker" in 2020.Mr. Liu Hongfeng master. He once worked as the Deputy Chief of the Finance Department of the Company the Deputy Chief and
Chief of the BOD Office the Securities Representative and the Secretary of the 7th Board of the Company.Now he is a vice president and the Secretary of the 9th Board of Directors of the Company as well as a director of Beijing Nissin
Electronics Precision Component Co. Ltd. and Supervisor of Beijing Yinghe Century Land Co. Ltd.Offices held concurrently in shareholding entities:
√Applicable □Not applicable
Office held in
Remuneration or
the End of
Name Shareholding entity Start of tenure allowance from the
shareholding tenure
shareholding entity
entity
Pan Jinfeng Beijing Electronics Holdings Co. Ltd. GM 11 December 2020 -- Yes
Beijing State-owned Capital Operation and -
Wang Jing Vice GM 1 January 2014 Yes
Management Company Limited
Full-time -
Ye Feng Beijing Electronics Holdings Co. Ltd. Director 31 August 2021 Yes
Dispatched
Full-time
Chairman of
Yang the
Beijing Electronics Holdings Co. Ltd. 17 April 2015 -- Yes
Xiangdong Supervisory
Committee
Dispatched
Finance -
Sun Fuqing Beijing Electronics Holdings Co. Ltd. 24 August 2021 Yes
Minister
Minister of -
Special
Wei Shuanglai Beijing Electronics Holdings Co. Ltd. 26 November 2021 Yes
Business
Department
Notes to
post-holding in
The documents for holding the posts of shareholders entities haven’t listed the expiry date.shareholder’s
unit
Offices held concurrently in other entities:
67BOE Technology Group Co. Ltd. Annual Report 2021
√Applicable □Not applicable
Remuneration or
Start of End of
Name Other entity Office held in the entity allowance from
tenure tenure
the entity
Song Jie Beijing Yizhuang Investment Co. Ltd. GM - - Yes
Hu Xiaolin Tsinghua University Associate professor -- -- Yes
The Central University of Finance and
Li Xuan Post-graduate Tutor -- -- Yes
Economics
University of International Business and - -
Zhang Xinmin Professor Doctor Advisor Yes
Economics
Director member of CPC - -
Hefei Construction Investment Holding
Chen Xiaobei Committee Deputy GM Yes
(Group) Co. Ltd.Secretary of the Board
Shi Hong Beijing Yizhuang Investment Co. Ltd. Vice GM - - Yes
Notes to
Due to the above personnel’s units were special their start dates and ending dates of the office terms have not
post-holding in
been fixed.other unit
Punishments imposed in the recent three years by the securities regulator on the incumbent directors supervisors and senior
management as well as those who left in the Reporting Period:
□ Applicable √ Not applicable
3. Remuneration of Directors Supervisors and Senior Management
Decision-making procedure determination basis and actual payments of remuneration for directors supervisors and senior
management:
(1) Determining Basis and Decision-making Procedure of Remuneration of Directors Supervisors and Senior Management
Proposal on Adjustment of Allowance for Directors and Supervisors was reviewed and approved on the 1st Extraordinary General
Meeting of 2019 held by the Company on 28 June 2019 of which the allowance for independent directors was adjusted to RMB0.2
million (before tax) per year from RMB0.15 million; the allowance for the Company’s executive directors and employee supervisors
as well as directors and supervisors holding posts in shareholder’s unit was cancelled.
(2) During the Reporting Period the total after-tax remuneration received by directors supervisors and senior managers in the
company amounted to RMB 67.1152 million and the withholding of individual income tax by the company amounted to RMB
43.5138 million. Allowance for independent directors is RMB0.2 million (before tax) per year in 2021. For details please referred to
the statement below.Remuneration of directors supervisors and senior management for the Reporting Period
Unit: RMB'0000
Total after-tax Individual i
Any
remuneration ncome
remuneration
Name Office title Gender Age Incumbent/Former received from tax
from related
the Company withheld by
party
in 2021 the
68BOE Technology Group Co. Ltd. Annual Report 2021
Company i
n 2021
Chen Chairman of the Board Chief
Male 56 Incumbent 346.12 213.70 No
Yanshun of Executive Committee
Pan Jinfeng Vice Chairman of the Board Male 42 Incumbent 0 0 -
Vice Chairman of the Board
Liu
President Vice Chairman of Male 57 Incumbent 769.78 560.32 No
Xiaodong
Executive Committee
Song Jie Director Male 54 Incumbent 0 0 -
Director member of
Executive Committee
Sun Yun Female 52 Incumbent 707.63 509.56 No
Executive vice president
CFO
Director member of
Executive Committee
Gao Wenbao Male 46 Incumbent 846.64 621.50 No
Executive vice president
CEO of the Display Business
Ye Feng Director Male 56 Incumbent 0 0 -
Hu Xiaolin Independent director Male 43 Incumbent 16.00 4.00 -
Li Xuan Independent director Male 53 Incumbent 16.00 4.00 -
Tang
Independent director Male 69 Incumbent 16.00 4.00 -
Shoulian
Zhang
Independent director Male 59 Incumbent 9.87 2.36 -
Xinmin
Yang Chairman of the Supervisory
Male 60 Incumbent 0 0 -
Xiangdong Committee
Sun Fuqing Supervisor Male 48 Incumbent 0 0 -
Wei
Supervisor Male 54 Incumbent 0 0 -
Shuanglai
Chen
Supervisor Female 49 Incumbent 0 0 -
Xiaobei
Shi Hong Supervisor Female 39 Incumbent 0 0 -
Xu Yangping Employee supervisor Male 47 Incumbent 188.93 86.33 No
He Daopin Employee supervisor Male 52 Incumbent 138.73 48.30 No
Yan Jun Employee supervisor Male 50 Incumbent 109.49 25.18 No
Teng Jiao Employee supervisor Male 39 Incumbent 231.86 121.49 No
Yao Member of Executive
Male 44 Incumbent 371.54 231.55 No
Xiangjun Committee Executive vice
69BOE Technology Group Co. Ltd. Annual Report 2021
president
Member of Executive
Zhang Committee Executive vice
Male 51 Incumbent 371.35 234.34 No
Zhaohong president CEO of LED
business
Member of Executive
Zhong Committee Executive vice
Male 51 Incumbent 541.17 373.32 No
Huifeng president Chief Performance
Officer
Member of Executive
Feng
Committee Executive vice Female 49 Incumbent 546.46 377.61 No
Liqiong
president lead counsel
Member of Executive
Xie Committee Senior vice
Male 51 Incumbent 334.77 204.45 No
Zhongdong president Auditor General
Chief Risk Officer
Member of Executive
Miao
Committee vice president Male 48 Incumbent 262.20 145.07 No
Chuanbin
Chief Culture Officer
Vice president Chief Reform
and IT Management Officer
Zhang Yu Male 51 Incumbent 432.20 285.38 No
Chief Human Resource
Officer
Liu Vice president Secretary of
Male 43 Incumbent 448.47 297.45 No
Hongfeng the Board
Wang
Director Male 52 Former 0 0 -
Chenyang
Li Yantao Director Male 40 Former 0 0 -
Wang
Independent director Male 58 Former 6.31 1.47 -
Huacheng
Wang Jing Director Female 50 Former 0 0 -
Xu Tao Supervisor Male 57 Former 0 0 -
Total -- -- -- -- 6711.52 4351.38 --
VI Performance of Duty by Directors in the Reporting Period
1. General Meeting Convened during the Reporting Period
Date of the Disclosure
Meeting Meeting resolutions
meeting date
70BOE Technology Group Co. Ltd. Annual Report 2021
The following proposals were deliberated and approved i.e. Proposal on the
Company's Compliance with the Conditions for Non-public Offering of A Shares
Proposal on the Program of the Company's Non-public Offering of A Shares
Proposal on Preliminary Plan for the Company's Non-public Offering of A Shares
in 2021 Proposal on Feasibility Analysis Report on the Use of Funds Raised from
the Company's Non-public Offering of A Shares in 2021 Proposal on the Signing
of the Conditional Subscription Agreement for the Company's Non-public Offering
of A Shares and Related Transactions between the Company and Jingguorui Fund
Proposal on the Non-requirement to Prepare a Report on the Use of Previously
Raised Funds Proposal on the Company's Dividend Return Plan for Shareholders
The 21st Meeting for the Next Three Years (2021-2023) Proposal of the Company on the Risk
of the 9th Board of 2021-01-15 2021-01-16 Warning and Remedies for Diluted Immediate Returns due to Non-public Offering
Directors of A Shares Proposal on the Commitments of Directors Senior Management
Controlling Shareholders and de facto controllers of the Company regarding the
Remedies for Diluted Immediate Returns Due to the Company's Non-public
Offering of A Shares in 2021 Proposal to Approve the Audit Report and Asset
Appraisal Report in Connection with the Non-public Offering Proposal on
Independence of Appraisal Institution Reasonableness of Appraisal Assumptions
Relevance of Appraisal Methodology to the Purpose of Appraisal and Fairness of
Appraisal Pricing Proposal to Request the Company's General Meeting to
Authorize the Board of Directors to Handle Specific Matters of the Non-public
Offering of A Shares Proposal on Convening Extraordinary Shareholders’
Meeting.The 22nd Meeting
Proposal on the Signing of Patent License Agreement was deliberated and
of the 9th Board of 2021-01-21 -
approved
Directors
The 23rd Meeting
Proposal on the Transfer of Part of the Equity of Mianyang BOE Optoelectronics
of the 9th Board of 2021-01-26 2021-01-27
Co. Ltd. was deliberated and passed.Directors
The following proposals were deliberated and approved: Proposal on Investment in
High-Generation Thin Film Transistor Liquid Crystal Display (TFT-LCD)
The 24th Meeting
Production Line Expansion Project of Wuhan BOE Optoelectronics Co. Ltd.of the 9th Board of 2021-03-22 2021-03-23
Proposal for the Appointment of Mr. Zhang Yu as a Member of Senior
Directors
Management and Proposal for the Appointment of Ms. Su Xuefei as the
Representative of Securities Affairs.The following reports and proposals were deliberated and approved i.e. Report on
the Work of the Board of Directors for 2020 Report on the Work of the Board of
Directors for 2020 Full Annual Report and Summary for 2020 Financial Final
The 25th Meeting
Report for 2020 and Business Plan for 2021 Proposal for the Distribution of
of the 9th Board of 2021-04-09 2021-04-13
Profits for 2020 Special Statement on Non-operating Funds Utilization and Other
Directors
Related Financial Transactions in 2020 Proposal on Estimated Daily Related
Transactions for 2021 Proposal for Change in Accounting Policy Proposal on
Borrowing and Credit Line Proposal on the Development of Capital Guaranteed
71BOE Technology Group Co. Ltd. Annual Report 2021
Wealth Management and Structured Deposit Business Special Report on the
Deposit and Actual Use of Raised Funds for 2020 Proposal on the Intended
Appointment of an Audit Agency for 2021 2020 Annual Internal Control
Evaluation Report 2020 Annual Corporate Social Responsibility Report Proposal
for Authorizing the Chairman of the Board to Exercise his/her Powers Proposal
for Revising the Composition and Rules of Procedure of the Executive Committee
Proposal for Revising the Management Measures for External Investment
Proposal for the Election of Mr. Zhang Xinmin as an Independent Director of the
Ninth Session of the Board of Directors and Proposal for Holding the 2020
Annual General Meeting of Shareholders.The 26th Meeting
Proposal for Deliberation on the Full Text and Body of the First Quarter Report for
of the 9th Board of 2021-04-29 -
2021 was deliberated and approved.
Directors
The following proposals were deliberated and approved: Proposal on Waiver of
The 27th Meeting
Pre-emptive Right to Acquire Equity Interests of Chengdu CEC Panda Display
of the 9th Board of 2021-05-13 -
Technology Co. Ltd. Held by Chengdu Aerotropolis Xingcheng Construction
Directors
Management Co. Ltd.The following proposals were deliberated and approved: Proposal on Adjustment
of the Program of the Company's Non-public Offering of A Shares Proposal on the
Preliminary Plan for the Company's Non-public Offering of A Shares in 2021
(Revised Draft) Proposal on Feasibility Analysis Report on the Use of Funds
Raised from the Company's Non-public Offering of A Shares in 2021 (Revised
Draft) Proposal on the Signing of the Conditional Subscription Agreement for the
The 28th Meeting Company's Non-public Offering of A Shares and Related Transactions between the
of the 9th Board of 2021-05-24 2021-05-25 Company and Jingguorui Fund Proposal of the Company on the Risk Warning and
Directors Remedies for Diluted Immediate Returns due to Non-public Offering of A Shares
(Revised Draft) Proposal to Approve the Audit Report and Asset Appraisal Report
in Connection with the Non-public Offering Proposal on Independence of
Appraisal Institution Reasonableness of Appraisal Assumptions Relevance of
Appraisal Methodology to the Purpose of Appraisal and Fairness of Appraisal
Pricing and Proposal on Election of Members of the Special Committee of the
Board of Directors.The 29th Meeting
Proposal on the Integration of Equity interest in the Sensor and Solution Business
of the 9th Board of 2021-06-11 -
was deliberated and approved.Directors
The 30th Meeting
Proposal on the Transfer of 100% Equity Interests in Beijing Ruizhihang Display
of the 9th Board of 2021-07-05 -
Technology Co. Ltd. and Related Transactions was deliberated and approved.Directors
The following proposals were deliberated and approved: Proposal for Deliberation
The 31st Meeting
on the Full Text and Summary of the Semi-Annual Report for 2021 Proposal for
of the 9th Board of 2021-08-27 2021-08-31
Deliberation on the Special Report on the Deposit and Actual Use of Raised Funds
Directors
for the Semi-Annual Period of 2021 Proposal for Replacing Self-financing Funds
72BOE Technology Group Co. Ltd. Annual Report 2021
Previously Invested in Fund-raising Projects with Raised Funds Proposal on
Adjustment of Exercise Price of Stock Options and Repurchase Price of Restricted
Shares Proposal for the Repurchase and Write-off of Certain Restricted Shares
Proposal for the Write-off of Certain Stock Options Proposal on the Awarding of
Reserved Stock Options to Incentive Objects Proposal on the Repurchase of Part
of the Company's Shares from the Public Proposal on Investment in Beijing
Yandong Microelectronics Company Limited and Related Transactions Proposal
on Investment in BOE IoT Mobile Display Port Device Production Base Project
and Proposal for Convening the Second Extraordinary General Meeting in 2021.The following proposals were deliberated and approved: Proposal on the
The 32nd Meeting
Remuneration and Appraisal results of the Chairman of the Executive Committee
of the 9th Board of 2021-09-24 -
of the Company in 2020 and Proposal on Prepayment of Deposit to Novatek
Directors
Microelectronics.The 33rd Meeting The following proposals were deliberated and approved: Proposal on Deliberation
of the 9th Board of 2021-10-28 2021-10-29 on the Third Quarter Report of 2021 and Proposal on Investment in the Project of
Directors Chengdu Vehicle Display Base of BOE.The following proposals were deliberated and approved: Proposal on the
The 34th Meeting
Company's Business Objectives Remuneration and Appraisal of the Chairman of
of the 9th Board of 2021-11-01 -
the Executive Committee in 2021 and Proposal on the Investment Project for the
Directors
Production Expansion of Corresponding F1 Products of BOE in Mianyang.The following proposals were deliberated and approved: Proposal on the
The 35th Meeting By-election of Non-Independent Directors of the Ninth Session of the Board of
of the 9th Board of 2021-11-25 2021-11-26 Directors of the Company Proposal on the Amendment of the Articles of
Directors Association of the Company and Proposal for Convening the Third Extraordinary
General Meeting in 2021.The 36th Meeting The Proposal on the Intended Participation in the Establishment of Beijing
of the 9th Board of 2021-12-28 2021-12-29 Jingguoguan Equity Investment Fund (Limited Partnership) and Related
Directors Transactions was deliberated and approved.
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
Board meetings Board Board The director
Total number of Board
attended by way meetings meetings the failed to attend General
board meetings meetings
Director of attended director two consecutive meetings
the director was attended on
telecommunicati through a failed to board meetings attended
eligible to attend site
on proxy attend (yes/no)
Chen Yanshun 16 2 14 0 0 No 4
Pan Jinfeng 16 0 15 1 0 No 0
Liu Xiaodong 16 2 14 0 0 No 3
Wang Jing 1 0 1 0 0 No 0
73BOE Technology Group Co. Ltd. Annual Report 2021
Song Jie 16 0 15 1 0 No 0
Sun Yun 16 1 14 1 0 No 3
Gao Wenbao 16 2 14 0 0 No 2
Ye Feng 1 0 1 0 0 No 0
Hu Xiaolin 16 1 15 0 0 No 3
Li Xuan 16 1 15 0 0 No 4
Tang Shoulian 16 1 15 0 0 No 4
Zhang Xinmin 9 0 9 0 0 No 3
Wang Chenyang 12 1 11 0 0 No 0
Li Yantao 14 1 13 0 0 No 3
Wang Huacheng 7 1 6 0 0 No 1
Why any independent director failed to attend two consecutive board meetings:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.□ Yes √ No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.√ Yes □ No
Suggestions from directors adopted or not adopted by the Company
The Board of Directors of the Company strictly obeyed relevant laws and regulations as well as the rules and regulations of the
Company to fulfill the responsibilities seriously in order to guarantee the standardization and effectiveness of BOE's governance
structure. The Company's Board of Directors is composed of four executive directors four non-executive directors and four
independent directors. All of them are equipped with good professional background and necessary knowledge skills and quality to
fulfill their responsibilities. They learned about and kept a constant focus on BOE’s production and operation financial status and
influence and risks of significant events. They also took the initiative to search for information needed in their decision-making so as
to ensure efficient operation and scientific decision-making of the Board of Directors. The executive directors of the Company are
responsible for the operations management of the Company. They understand the business and operational status of the Company
and with rich management experience they can make decisions efficiently. Non-executive directors are shareholder directors. As the
communication bridge between shareholders and the management of the Company they can combine the suggestions of shareholders
with long-term interests of the Company and participate in the decision-making process of significant events of the Company to
protect the interests of shareholders. Independent directors are experts and scholars in the fields of technology finance law and etc.They can express their opinions and views according to their expertise and advantages. During the Reporting Period in accordance
with Company Law Securities Law Stock Listing Rules Guidance on Establishing Independent Director System for Listed
Companies Articles of Association Rules of Procedure for the Board of Directors and Independent Director Policy directors of the
Company paid special attention to the standardized operation of the Company performed their duties diligently issued much
74BOE Technology Group Co. Ltd. Annual Report 2021
precious professional advice in terms of the perfection of policies and routine operating decision-making etc. and issued their
independent and fair opinions as independent directors on the related-party transactions engagement of audit firm dividend plan
recruitment of senior management and other events needing their opinions occurred in the Reporting Period as well as played their
due roles in perfecting the supervisory mechanism of the Company protecting the legal right of the Company and the whole
shareholders.VII Performance of Duty by Specialized Committees under the Board in the Reporting Period
Other
Number informat
Important Details
of ion
opinions about issues
meeting about
Committee Members Convened date Content and with
s the
suggestion objections
convene perform
s raised (if any)
d ance of
duty
Working out the operating strategies
of the Company planning its
significant investment and financing
2021-01-05 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
Director: Mr. 2021-01-11 projects monitoring its major -- -- N/A
Chen Yanshun; operation activities and other
Strategy
Members: Mr. matters to be reported to the Board
Committee
Liu Xiaodong 17 for review etc.under Board of
Ms. Sun Yun Working out the operating strategies
Directors
Mr. Gao of the Company planning its
Wenbao significant investment and financing
2021-01-15 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-03-11 -- -- N/A
projects monitoring its major
operation activities and other
matters to be reported to the Board
75BOE Technology Group Co. Ltd. Annual Report 2021
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-03-30 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-04-19 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-04-26 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-05-14 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-05-31 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-06-24 -- -- N/A
projects monitoring its major
operation activities and other
matters to be reported to the Board
76BOE Technology Group Co. Ltd. Annual Report 2021
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-08-17 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-09-14 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-10-28 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-11-01 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-11-15 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-11-18 -- -- N/A
projects monitoring its major
operation activities and other
matters to be reported to the Board
77BOE Technology Group Co. Ltd. Annual Report 2021
for review etc.Working out the operating strategies
of the Company planning its
significant investment and financing
2021-12-17 projects monitoring its major -- -- N/A
operation activities and other
matters to be reported to the Board
for review etc.The periodic reports of the
Company internal control financial
2021-02-01 -- -- N/A
Convener auditing risk management and
(Director): Mr. auditing supervision etc.
Wang
The periodic reports of the
Huacheng;
Company internal control financial
Members: Mr. 3 2021-03-31 -- -- N/A
auditing risk management and
Song Jie Mr.auditing supervision etc.Li Xuan Mr.Risk Control
Li Yantao Mr. The periodic reports of the
and Audit
Tang Shoulian Company internal control financial
Committee 2021-04-19 -- -- N/A
auditing risk management and
under Board of
auditing supervision etc.Directors
Convener The periodic reports of the
(Director): Mr. Company internal control financial
2021-08-17 -- -- N/A
Zhang Xinmin; auditing risk management and
Members: Mr. auditing supervision etc.
2
Song Jie Mr. The periodic reports of the
Li Xuan Mr. Company internal control financial
2021-10-18 -- -- N/A
Li Yantao Mr. auditing risk management and
Tang Shoulian auditing supervision etc.Convener Matters related to equity incentive
(Director): Mr. election of directors and
2021-02-18 -- -- N/A
Li Xuan; engagement of senior management
Members: Mr. etc.Nomination & Wang
Remuneration Chenyang Mr. 2
Matters related to equity incentive
& Appraisal Wang
election of directors and
Committee Huacheng Mr. 2021-03-29 -- -- N/A
engagement of senior management
under Board of Hu Xiaolin
etc.Directors Mr. Tang
Shoulian
Convener Matters related to equity incentive
(Director): Mr. 2 2021-08-12 election of directors and -- -- N/A
Li Xuan; engagement of senior management
78BOE Technology Group Co. Ltd. Annual Report 2021
Members: Mr. etc.Wang
Chenyang Mr. Matters related to equity incentive
Hu Xiaolin election of directors and
2021-09-07 -- -- N/A
Mr. Tang engagement of senior management
Shoulian Mr. etc.Zhang Xinmin
Convener Matters related to equity incentive
(Director): Mr. election of directors and
2021-10-18 -- -- N/A
Li Xuan; engagement of senior management
Members: Mr. etc.
2
Hu Xiaolin Matters related to equity incentive
Mr. Tang election of directors and
2021-11-03 -- -- N/A
Shoulian Mr. engagement of senior management
Zhang Xinmin etc.VIII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting
Period.□ Yes √ No
The Supervisory Committee raised no objections in the Reporting Period.V Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent at
2462
the period-end
Number of in-service employees of major subsidiaries at the
56315
period-end
Total number of in-service employees 79461
Total number of paid employees in the Reporting Period 79461
Number of retirees to whom the Company as the parent or its
14
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 48675
Sales 2644
Technical 24745
79BOE Technology Group Co. Ltd. Annual Report 2021
Financial 775
Administrative 274
Manager 1895
Other 453
Total 79461
Educational backgrounds
Educational background Employees
Doctor 394
Master 8893
Bachelor 20656
College 23089
Technical secondary school 10141
Other 16288
Total 79461
2. Employee Remuneration Policy
The Company has established the remuneration system based on the position ability and business performance paid attention to the
external competitive compensation and internal fairness strengthening the control of the group as well as considering the difference
among all business groups and subsidiaries.
3. Employee Training Plans
Since its establishment in 2015 BOE University (BOEU) has been adhering to the philosophy of "education before career" tapping
and developing excellent cultural and wisdom assets to help various professionals grow. It has been cultivating a new generation of
professional executives and business leaders focusing on improving organizational performance and promoting the achievement of
corporate strategic goals. BOEU is committed to providing targeted training programs for the Group's industrialists professionals
managers and leaders and helping BOE share its corporate philosophy and culture with similar SMEs upstream and downstream
industrial chain and eco-chain partners to achieve mutual benefits and win-win results. After six years of efforts BOEU is steadily
exploring and developing towards the vision of "becoming an internationally competitive and respectable industrial university".In 2021 BOEU formulated a working policy of "innovative breakthrough organization empowering promoting strategy and
synergistic interaction" continuously upgraded and optimized the training project of key talents throughout the year strengthened the
transformation of the leaders' concepts and accelerated the cultivation of back-up leaders in order to make ideology and talent
preparation for the implementation of strategic transformation.
1. Innovation on training ways: Innovation and transformation were made on the training method of leaders. Digital coverage and
scenario practice were adopted for pilot which was recognized by the trainees business leaders and the CHRO organizations;
2. Innovation on teaching mode: BOEU explored a brand-new teaching method. It accumulated experience on teaching method
course and case development training product and delivery mode and completed the teaching tasks by adopting multiple modes
including the combination of training and practice the combination of cultivation and evaluation online the combination of online
and offline and case study so as to meet the needs of diversified training.
80BOE Technology Group Co. Ltd. Annual Report 2021
3. Accumulation of intellectual capital. Through the building of discipline system such as the building of internal teaching team
independent courses and case pool of BOE the internal and external resources were flexibly used to mutually make up their
deficiencies which laid a solid foundation on implementing the concept of "let the most excellent person cultivate more excellent
persons" and achieved the extraction and flexible use of intellectual assets.
4. Output of the influence of cultural values: The top-up programme and benchmark visiting programme of University of Electronic
Science and Technology of China were conducted. Meanwhile the cooperation and communication with partners of industrial chains
and university-enterprise alliances were deepened so as to deliver the influence of cultural values of the Company and promote the
mutual development innovation and win-win result with the partners of industrial chains and global ecological partners.
4. Labor Outsourcing
□ Applicable √ Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy especially the cash dividend policy was formulated executed or revised in the Reporting Period:
□ Applicable √ Not applicable
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts that the
Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders are
positive.□ Applicable √ Not applicable
Final dividend plan for the Reporting Period
√ Applicable □ Not applicable
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 2.1
37917560430
Total shares as the basis for the profit distribution proposal
(share)
Cash dividends (RMB) (tax inclusive) 7962687690.30
Cash dividends in other forms (such as share repurchase) (RMB) 2427517910.23
Total cash dividends (including those in other forms) (RMB) 10390205600.53
Attributable profit (RMB) 11950975927
Total cash dividends (including those in other forms) as % of total 130.49%
profit distribution (%)
Cash dividend policy adopted
If the Company is in a growth stage and has any plan for significant expenditure in profit distribution the proportion of cash
dividends shall be 20% or above.Details about the proposal for profit distribution and converting capital reserve into share capital
Based on the total shares of 37917560430 after the deduction of shares held through the special account for repurchase the
Company planned to distribute with the undistributed profit a cash dividend of RMB2.10 (tax inclusive) per 10 shares to all its
shareholders. And no bonus share was granted nor was any capital reserve converted into share capital. The said proposal is in
81BOE Technology Group Co. Ltd. Annual Report 2021
compliance with the Company’s Articles of Association and relevant approval procedure and the independent directors have
expressed their independent opinion on the proposal which fully protects the legal rights and interests of the minority investors.XI Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
√ Applicable □ Not applicable
1. Equity incentive
The Company disclosed the Announcement on the Resolution of the 15th Meeting of the 9th Board of Directors (Announcement No.:
2020-047) and the 2020 Stock Option and Restricted Stock Grant Program and other related announcements on 29 August 2020 in
which the Company intends to implement the Equity Incentive Scheme including both the Stock Option Incentive Scheme and the
Restricted Stock Incentive Scheme. The source of the stock is the Company's A-shares repurchased from the secondary market. The
total stock options and restricted stock incentive plan stock interests shall not exceed 981150000 shares including 639900000
stock options and 341250000 restricted stock shares representing approximately 2.82% of the total 34798398763 shares of the
Company's share capital at the time of the announcement of this draft incentive plan. On 30 October 2020 the Company received the
Approval on the Implementation of the Equity Incentive Scheme of BOE (J.G.Z. [2020] No. 77) from the State-owned Assets
Supervision and Administration Commission of People's Government of Beijing Municipality forwarded by Beijing Electronics
Holding Co. Ltd the actual controller and the State-owned Assets Supervision and Administration Commission of People's
Government of Beijing Municipality approved in principle the implementation of this incentive plan by the Company. The Company
disclosed the Announcement on the Adjustment of the List of Incentive Subjects and the Number of Equities Granted under the 2020
Stock Option and Restricted Stock Incentive Scheme (Announcement No.: 2020-081) and the Announcement on the First Grant of
Stock Options and Restricted Shares to Incentive Subjects (Announcement No.: 2020-082) on 22 December 2020 to determine that
the grant date/authorization date of the Incentive Scheme is 21 December 2020 and 596229700 stock options will be granted to
1988 incentive recipients and 321813800 restricted shares will be granted to 793 incentive recipients. The Company disclosed the
Announcement on Completion of Registration of the First Grant of the 2020 Stock Option and Restricted Stock Incentive Scheme
(Announcement No.: 2020-086) on 31 December 2020. The conditions for the grant under the Incentive Scheme of the Company
have been fulfilled and the first registration of the grant has been completed. The completion date of the registration of the first grant
of options under the Stock Option Incentive Scheme was 25 December 2020. The option ticker was 037100 and the option ticker is
Eastern JLC1; the listing date of the restricted shares granted was 29 December 2020. The Company disclosed the Announcement on
Granting Reserved Stock Option to Incentive Recipients of the 2020 Stock Option and Restricted Stock Incentive Scheme
(Announcement No.: 2021-066) on 30 August 2021. The conditions for the granting of reserved stock option under the Incentive
Scheme of the Company have been fulfilled. The granting date of the reserved stock option was 27 August 2021 and 33000000
stock options were granted to 110 incentive recipients. The Company disclosed the Announcement on Completion of Registration of
the Reserved and Granted Stock Option of the 2020 Stock Option and Restricted Stock Incentive Scheme (Announcement No.:
2021-084) on 23 October 2021. The registration of the granting of reserved stock was completed and the completion date of this
registration was 22 October 2021. The option code is 037179 and the abbreviation of the option is Eastern JLC2.
82BOE Technology Group Co. Ltd. Annual Report 2021
Equity incentives for directors supervisors and senior management in the Reporting Period:
√Applicable □Not applicable
Unit: share
Exercise
price of Number of
Share Shares Number of The grant
Share Shares exercised Share Number of restricted
options feasible to Market price released price of Number of
options exercised shares options restricted shares newly
granted in exercise at the shares for restricted restricted
Name Office title held at the during the during the held at the shares held at granted
the during the period-end the shares shares held at
period-begi Reporting Reporting period-en the during the
Reporting Reporting (RMB/share) Reporting (RMB/shar the period-end
n Period Period d period-begin Reporting
Period Period Period e)
(RMB/shar Period
e)
Chairman of the
Chen Yanshun Board Chief of 0 0 0 0 0 0 5.05 2000000 0 0 0 2000000
Executive Committee
Vice Chairman of the
Board President Vice
Liu Xiaodong 0 0 0 0 0 0 5.05 1800000 0 0 0 1800000
Chairman of
Executive Committee
Director member of
Executive Committee
Sun Yun 0 0 0 0 0 0 5.05 1500000 0 0 0 1500000
Executive vice
president CFO
Director member of
Executive Committee
Gao Wenbao Executive vice 0 0 0 0 0 0 5.05 1500000 0 0 0 1500000
president CEO of the
Display Business
83BOE Technology Group Co. Ltd. Annual Report 2021
Member of Executive
Yao Xiangjun Committee Executive 0 0 0 0 0 0 5.05 1000000 0 0 0 1000000
vice president
Member of Executive
Zhang Committee Executive
0000005.0510000000001000000
Zhaohong vice president CEO
of MLED Business
Member of Executive
Committee Executive
Zhong Huifeng 0 0 0 0 0 0 5.05 1000000 0 0 0 1000000
vice president Chief
Performance Officer
Member of Executive
Committee Executive
Feng Liqiong 0 0 0 0 0 0 5.05 1000000 0 0 0 1000000
vice president lead
counsel
Member of Executive
Committee Senior
Xie Zhongdong vice president 0 0 0 0 0 0 5.05 750000 0 0 0 750000
Auditor General
Chief Risk Officer
Member of Executive
Committee vice
Miao Chuanbin 0 0 0 0 0 0 5.05 650000 0 0 0 650000
president Chief
Culture Officer
Senior Vice president
Zhang Yu Chief Human 0 0 0 0 0 0 5.05 634000 0 0 0 634000
Resource Officer
84BOE Technology Group Co. Ltd. Annual Report 2021
Vice President
Liu Hongfeng 0 0 0 0 0 0 5.05 750000 0 0 0 750000
Secretary of the Board
Total -- 0 0 0 0 -- 0 -- 13584000 0 0 -- 13584000
The restricted shares granted to the directors and senior management of the Company are restricted for a period of 24 months 36 months and 48 months from
Note (if any) the grant date of this equity incentive on 21 December 2020. As at the end of the Reporting Period all equity incentives received by the directors and senior
management of the Company were unlocked shares.Appraisal of and Incentive for Senior Management
According to the Articles of Association Management System for Professional Managers and the Performance Management System members of the senior management of the Company are
appointed by the Board of Directors and sign the Appointment Contract and the Annual Target Responsibility Paper. The annual performance assessment and appointment period assessment
will be implemented. The annual performance assessment is determined by the annual task breakdown of the current year's targets and the appointment period targets and the appointment
period assessment is based on medium- and long-term targets and the salary and rewards are delivered according to the assessment results. Meanwhile according to BOE's 2020 Stock Option
and Restricted Stock Incentive Scheme and relevant laws and regulations the granted stock interests will be determined to be unlocked after the lock-up period based on the achievement of
relevant conditions.
2. Implementation of Employee Stock Ownership Plans
□ Applicable √ Not applicable
3. Other Incentive Measures for Employees
□ Applicable √ Not applicable
85BOE Technology Group Co. Ltd. Annual Report 2021
XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
The establishment of internal control regulation was carried out according to the requirements of the establishment of internal control
regulation of listed companies and the innovation reform of the second stage of SOPIC of the Company. Meanwhile digital reform
was synchronized and the internal control system (three manuals) was revised and perfected so as to guarantee the implementation
of innovation reform and promote the compliance and efficient development of business.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes √ No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
Integration Countermeasures Settlement Follow-up
Subsidiary Integration plan Problem
progress taken progress settlement plan
N/A - - - - - -
XIV Internal Control Self-Evaluation Report or Independent Auditor’s Report on Internal
Control
1. Internal Control Self-Evaluation Report
Disclosure date of the internal
31 March 2022
control self-evaluation report
Index to the disclosed internal On 31 March 2022 the Company disclosed 2021 Internal Control Appraisal Report refer to
control self-evaluation report www.cninfo.com.cn for details.Evaluated entities’ combined assets
97.52%
as % of consolidated total assets
Evaluated entities’ combined
operating revenue as % of 95.38%
consolidated operating revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over financial Weaknesses in internal control not related to
Type
reporting financial reporting
The nature standards of internal control
Evaluation standards for internal defects not related
deficiency evaluation over financial reporting
to financial reporting specified by the Company are
determined by the Company are as follows:
Nature standard as below:
Material weakness: In case of the following
Material weakness:
situations it will be deemed as that major
(1) The business scope of the Company violates
defects (including but not limited to the
86BOE Technology Group Co. Ltd. Annual Report 2021
following situations) may occur: national laws and regulations seriously;
(1) Directors supervisors and Senior (2) The decision-making procedure is not scientific
Management make the malpractices; major decision errors are released the development
(2) The enterprise corrects the released strategies of the Company are deviated from
financial statements; severely and major property losses are caused for
(3) The certified public accountant finds that the Company;
there is a material misstatement in the current (3) Safety and environmental accidents occur
financial report but the internal control fails resulting in major negative effects on the Company;
to find the misstatement in the process of (4) A lot of senior management personnel and key
operation; technicians leave the Company;
(4) Supervision of the risk control and audit (5) Important business lacks system control or the
committee and the internal audit organization system is failure;
for internal control is ineffective. Serious (6) Material weaknesses or serious weaknesses are
weakness refers to one or combination of not corrected.several control items and its severity and Serious weakness refers to one or combination of
economic consequence are lower than those several control items and its severity and economic
of the material weaknesses but may still consequence are lower than those of the material
affect the real and accurate objective of the weaknesses but may still affect the enterprise to
financial report. deviate from the control goal.The common weakness refers to other The common weakness refers to other internal
internal control weaknesses except for control defects except for material weaknesses and
material weaknesses and serious weaknesses. Serious weakness.The quantitative standards of internal control
deficiency evaluation over financial reporting
determined by the Company are as follows:
Material weakness: The amount reported
incorrectly is ≥1‰* total amount of assets of
the Group (operating revenue) The quantitative standards for internal control
Serious weakness: 0.5‰*total amount of defects not related to financial reporting determined
Quantitative standard assets of the Group (operating revenue)≤ the by the Company are consistent with those over the
amount reported incorrectly<1‰*total financial reporting. See the left side for details.amount of assets of the Group (operating
revenue)
Common weakness: 0.1‰*total group assets
(operating revenue)≤ the amount reported
incorrectly <0.5‰*total group assets
(operating revenue)
Number of material weaknesses in
internal control over financial 0
reporting
Number of material weaknesses in
0
internal control not related to
87BOE Technology Group Co. Ltd. Annual Report 2021
financial reporting
Number of serious weaknesses in
internal control over financial 0
reporting
Number of serious weaknesses in
internal control not related to 0
financial reporting
2. Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We believe that the Company and important subsidiaries make valid internal control on financial report in all significant aspects on
31 December 2021 according to the Basic Rules on Enterprise Internal Control and other relevant stipulations.
Independent auditor’s report on
Disclosed
internal control disclosed or not
Disclosure date 31 March 2022
The Company disclosed the Audit Report on Internal Control on 31 March 2022 for details
Index to such report disclosed
please refer to http://www.cninfo.com.cn
Type of the auditor’s opinion Standard unqualified opinion
Material weaknesses in internal
control not related to financial No
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal
control.□ Yes √ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal
control self-evaluation report issued by the Company’s Board.√ Yes □ No
XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
Not applicable
88BOE Technology Group Co. Ltd. Annual Report 2021
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental
protection authorities of China.√ Yes □ No
Name of Number of Distribution Discharge Approved
Name of Way of Discharge Total Excessive
major discharge of discharge standards total
polluter discharge concentration discharge discharge
pollutants outlets outlets implemented discharge
COD Standard 63 mg/L 500 mg/L 183.073t 828.418t
emission
after being Northwest
Ammonia treated by 1 corner of
4.2 mg/L 45 mg/L 11.888t 59.173t
nitrogen sewage factory
Beijing BOE
treatment
Optoelectronics
system None
Technology
Standard
Co. Ltd.emission
after being North U third
NMHC 2 3.03 mg/m3 10 mg/m3 1.877t 311.3t
treated by floor roof
organic
waste gases
COD Standard 134.27mg/L 500mg/L 143.96t 607.66t
emission
Chengdu BOE
after being
Optoelectronics North side of
Ammonia treated by 1 None
Technology factory 20.5mg/L 45mg/L 21.27t 54.69t
nitrogen sewage
Co. Ltd.treatment
system
COD Standard 42.57mg/L 380mg/L 150.74t 1081.55t
emission
Hefei BOE
after being Northwest
Optoelectronics
Ammonia treated by 1 corner of None
Technology 2.46mg/L 30mg/L 8.7t 101.23t
nitrogen sewage factory
Co. Ltd.treatment
system
Beijing BOE COD Standard 148.5mg/L 500mg/L 841.25t 1570.32t
East gate of
Display emission 1 None
Ammonia factory 22.92mg/L 45mg/L 124.82t 183.20t
Technology after being
89BOE Technology Group Co. Ltd. Annual Report 2021
Co. Ltd. nitrogen treated by
sewage
treatment
system
COD Standard 124mg/L 350mg/L 1064.29t 3135.04t
emission
Hefei Xinsheng
after being Northeast
Optoelectronics
Ammonia treated by 1 gate of None
Technology 14.38mg/L 35mg/L 149.51t 313.50t
nitrogen sewage factory
Co. Ltd.treatment
system
COD Standard 71.7mg/L 500mg/L 96.11t 713.81t
emission
Erdos
after being
Yuansheng North side of
Ammonia treated by 1 None
Optoelectronics factory 0.91mg/L 45mg/L 1.27t 76.82t
nitrogen sewage
Co. Ltd.treatment
system
The 6th COD 48.40mg/L 500mg/L 187.34t 6383.16t
generation
Standard
flexible
emission
AMOLED
after being
production line North side of
Ammonia treated by 1 None
of Chengdu factory 6.99mg/L 45 mg/L 25.43t 574.48t
nitrogen sewage
BOE
treatment
Optoelectronics
system
Technology
Co. Ltd.COD Standard 94.02mg/L 400mg/L 427.11t 1900.24t
Chongqing emission
BOE after being
South side of
Optoelectronics Ammonia treated by 1 None
factory 4.47mg/L 30mg/L 20.14t 146.17t
Technology nitrogen sewage
Co. Ltd. treatment
system
COD Standard 95.7mg/L 400mg/L 395.21t 4759.56t
emission
Hefei BOE
after being
Display North side of
Ammonia treated by 1 None
Technology factory 11.25mg/L 35mg/L 47.45t 416.46t
nitrogen sewage
Co. Ltd.treatment
system
90BOE Technology Group Co. Ltd. Annual Report 2021
COD Standard 91.96 mg/L 500 mg/L 66.27t 510.35t
emission
Fuzhou BOE
after being Northeast
Optoelectronics
Ammonia treated by 1 side of None
Technology 6.42 mg/L 45 mg/L 1.59t 68.05t
nitrogen sewage factory
Co. Ltd.treatment
system
COD Standard 24.47mg/L 500mg/L 95.54t 6911.3775t
Mianyang emission
BOE after being
North side of
Optoelectronics Ammonia treated by 1 None
factory 2.82mg/L 45mg/L 11t 364.6771t
Technology nitrogen sewage
Co. Ltd. treatment
system
COD Standard 54.99mg/l 500mg/L 558.11t 5074.33t
emission
Wuhan BOE
after being Northeast
Optoelectronics
Ammonia treated by 1 corner of None
Technology 2.75mg/L 45mg/L 27.87t 456.69t
nitrogen sewage factory
Co. Ltd.treatment
system
COD Standard 136.6mg/L 500mg/L 914.58t 2215.01t
emission
Nanjing BOE
after being
Display South side of
Ammonia treated by 1 None
Technology factory 5.4mg/L 45mg/L 35.33t 183.67t
nitrogen sewage
Co. Ltd.treatment
system
COD Standard 101.25mg/L 500mg/L 588.57t 4310.1t
emission
Chengdu CEC
after being Northwest
Panda Display
Ammonia treated by 1 corner of None
Technology 12.39mg/L 45 mg/L 72.33t 148.8t
nitrogen sewage factory
Co. Ltd.treatment
system
COD Discharged 157.45mg/L 500mg/L 11.892t 88.491t
into sewage
BOE (Hebei)
treatment
Mobile Display North side of
Ammonia plant 1 None
Technology factory 6.11mg/L 45mg/L 0.632t 7.754t
nitrogen through
Co. Ltd.municipal
pipes
91BOE Technology Group Co. Ltd. Annual Report 2021
COD Standard 89.25mg/L 500mg/L 5.525t 43.271t
Yunnan emission
Chuangshijie after being Northwest
Optoelectronics Ammonia treated by 1 corner of None
6.34mg/L 45mg/L 0.365t 4.681t
Technology nitrogen sewage factory
Co. Ltd. treatment
system
Construction of pollution prevention equipment and operation condition
During the Reporting Period the Company did not have any serious environmental problems. The Company builds sound
environment management systems and establishes the environment management organizations to supervise the overall environment
performance of the Company work out the environment management objectives and related systems conduct regular supervision
and instruction for the environment management of subordinate companies and push forward the implementation of environment
management.Currently the waste water which is generated by each subordinate enterprise of the Company can be divided in to industrial waste
water and household waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separately
according to different natures. After collecting the rain water is discharged into rain water pipeline of factory; after the rain water is
collected by rain water pipe network the rain water is discharged. After being treated by sewage treatment system in factory
industrial waste water is discharged into sewage treatment factory through municipal pipe network for intense treatment. Household
waste water comprises household fecal waste water and canteen oily waste water etc after pretreatment the waste water is
discharged into municipal sewage treatment factory. All industrial and household waste water is not discharged directly and the
concentration and total amount of drainage satisfy the requirements of national and local relevant standards.In additional the exhaust gas which is emitted by each subordinate enterprise mainly comes from technology exhaust gas during
production process generally including acid exhaust gas alkaline exhaust gas special exhaust gas and organic exhaust gas etc.Various exhaust gas can be emitted after being treated by independent emission treatment system. The emission concentration and
total amount satisfy the national and local relevant standards.“4R concept” for the use of materials has been used by the Company that is recycle (Recycle) reduction (Reduce) renewal (Renew)
and responsibility (responsibly). The Company promises that the used materials are all in accordance with requirements of national
relevant environmental regulations and the registration assessment permission and restriction system of chemicals. In additional the
Company promotes the recycle of package materials constantly. The waste materials which are generated by each subordinate
enterprise can be divided into general industrial solid waste hazardous waste materials and household waste materials and they all
handed over to qualified recycler for regular treatment. The disposal rate of hazardous waste materials is 100%.The Company focuses on the recycle of water resource and advanced cleaning methods such as adverse cleaning etc are adopted for
processing equipment. Most high purity water and chemicals are recycled reducing the consumption of high purity water chemical
and other materials maximally and reducing the discharge of waste water and waste materials.At present each subordinate enterprise formulates various management methods such as water pollution management air pollution
management standard hazardous waste materials management standard energy management standard etc. The methods specify the
operation and maintenance regulations and requirements of pollutant treatment system establish regular monitoring and supervising
mechanism in order to ensure the continuous stable operation of each system.In recent years the environmental emission index of the Company is up to national standards such as Sewage Comprehensive
Discharge Standard Air Pollutant Comprehensive Emission Standard Industrial Enterprise Environmental Noise Emission Standard
within Factory Boundary etc and local standards. The Company will continue to promote the environmental management devote to
forging green factory and improve environmental management level constantly.Environmental Impact Assessment on Construction Project and Other Administrative Licenses for Environmental Protection
92BOE Technology Group Co. Ltd. Annual Report 2021
At present corresponding environmental impact assessments have been conducted for all construction projects under the control of
the Company in conformity with applicable national and local laws and regulations and corresponding administrative licenses have
also been obtained.Contingency Plan for Emergent Environmental Incidents
The Company has formulated updated and filed corresponding contingency plan for emergent environmental incidents in local
environmental protection departments according to their requirements. However such contingency plan consists of comprehensive
plan special plan and on-site disposal plan and involves various aspects such as waste water exhaust gas hazardous wastes and
dangerous chemicals etc. Meanwhile drills must be conducted regularly.Self-monitoring Plan
Currently major pollutant-discharging units subordinated to the Company have worked out corresponding self-monitoring plan
according to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectively
formulated by Beijing BOE Display Technology Co. Ltd. and Beijing BOE Optoelectronics Technology Co. Ltd. have been
published via Beijing Environmental Information Disclosure Platform for Enterprises and Institutions and the Company’s official
website.Administrative penalties imposed for environmental issues during the Reporting Period
Influence on
Rectification
Name Reason Case Result production and
measures
operation
N/A N/A N/A N/A N/A N/A
Other environment information that should be disclosed
No
Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
√ Applicable □ Not applicable
The Company has set up a "Peak Emission" and "Carbon Neutrality" project team (including leading group working group) and the
promotion groups of undertakings and organizations to clarify the composition of personnel and organizational responsibilities. The
on-site plant achieves the goal of energy-saving and emission reduction through the operation of the energy management system and
the incentive energy-saving program through refined management on the energy management platform. Results of energy-saving and
emission reduction: The number of energy-saving and emission reduction projects was 301 in total in 2021. As at the end of
December 198.2339 million kWh of electricity 5.6848 million tons of water 0.2993 million cubic meters of natural gas 4.7905
million cubic meters of nitrogen and 4536.48 million KJ of vapor had been saved.Meanwhile in order to cope with the challenges and opportunities brought by carbon trading BOE Beijing Factory takes the lead in
implementing carbon trading actively carrying out carbon emission trading CCER replacement quota and other work to effectively
increase carbon reserves. In 2021 Beijing BOE Optoelectronics Technology Co. Ltd. actively responded to the appeal of the country
and completed carbon neutrality of partial areas of the powerhouse by conducting energy-saving technique improvement project
refinement management and carbon emission trading.Other related environment protection information
BOE fully considers design for recycling universal design and minimal design of products in the product design stage adheres to the
green management concept of the full life cycle of products and follows the principles of minimizing energy and resource
consumption minimizing the impact on the ecological environment and maximizing the recyclability.In order to reduce the impact of the logistics transportation process on the environment BOE and its partners constantly improve the
transportation management system carry out reasonable layout and planning of transportation stations and routes improve the
delivery efficiency and reduce greenhouse gas emissions.
93BOE Technology Group Co. Ltd. Annual Report 2021
II Social Responsibility
BOE discloses its Corporate Social Responsibility Report every year. As of 2021 BOE had consecutively disclosed Social
Responsibility Report for 12 years. Please view and download such report via official website of BOE www.boe.com or Cninfo .III Consolidation and Expansion of Poverty Alleviation Outcomes and Rural Revitalization
After the comprehensive victory of poverty alleviation BOE continued to deepen the implementation of the country's rural
revitalization strategy and prepared the Programme for Comprehensively Promoting Rural Revitalization of BOE in 2021. It clarified
the goals of industrial support public welfare support employment support and consumption support. At the same time it made full
use of its advantages to extensively mobilize societal forces to participate and strong joint forces to intensify and expand the
achievements of poverty alleviation and comprehensively push forward rural revitalization was formed.
1. Industrial revitalization: Prosperous industries were developed and upgraded in the light of local conditions
BOE gave full play of its advantages linked up internal resources and adopted measures suiting local conditions to promote rural
revitalization. In terms of helping the villages with weak economy the Company expanded their channels to increase revenue by
donating photovoltaic power generation projects to them. Besides it internally selected temporary leaders as the first secretaries to
pairing villages so as to be online all the time have a deep exploration of local conditions and provide targeted assistance.Meanwhile BOE also promoted local economic growth by helping upgrade local industries and creating sustainable prosperous
industries.
2. Talent revitalization: The "assistance of will and wisdom" invigorated the talents' vigor
BOE treated the promotion of talent revitalization as one of the main fields to facilitate rural revitalization. It assisted in education
and public welfare and employed people out of poverty which continuously stimulated the vigor of talents.In 2021 BOE carried out many education and public welfare projects like "Lighting the Way to Growth". Also it donated and built
smart classrooms for 30 township central schools of three counties in Sichuan Province and Hunan Province and provided smart
education solutions of BOE for over 6000 students in remote areas. It promoted rural digital education with technology and tried its
best to contribute to the education development of poverty-stricken areas so as to narrow the education gap.In the meantime relying on its own industries BOE employed people out of poverty. Also it made efforts to let more talents in rural
areas have the opportunities to give play to their talent and create the platform to show themselves. To arouse the potential and vigor
of talents BOE promoted employment support continuously. In 2021 through combing internal personnel of enterprises
coordinating with colleges and universities to make recommendations etc. BOE encouraged enterprises to hire people out of
poverty and recruited college students from families out of poverty and specialized talents. Work accounts were also established to
ensure comprehensive management.
3. Multiple measures were taken concurrently: Both consumption support and public welfare support were indispensable
BOE continuously promoted consumption support. In terms of the procurement of agricultural accessory products and direct
procurement in pairing assisting areas the supporting amount was RMB4.4864million. Apart from procurement BOE actively
performed its social responsibilities took various actions to provide public welfare support donated funds to pairing assisting areas
and provided tuitions for left-behind children and autistic children of single-parent families in pairing assisting areas.
94BOE Technology Group Co. Ltd. Annual Report 2021
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller Shareholders Related Parties and Acquirers as well as the Company Itself and other Entities
Fulfilled in the Reporting Period or Ongoing at the Period-end
√ Applicable □ Not applicable
Date of
Type of Term of
Commitment Promisor Details of commitment commitment Fulfillment
commitment commitment
making
Commitments made in share - - - - -
-
reform
Commitments made in - - - - - -
acquisition documents or
shareholding alteration
documents
Commitments made in time - - - - - -
of asset restructuring
Commitments made in time - - - - - -
of IPO or refinancing
Equity incentive - - - - - -
commitments
Other commitments made to The Chairman of the Board: Other In accordance with the Announcement on the Commitments of not Reducing 21 February During the
Ongoing
minority interests Mr. Chen Yanshun commitments t he Shareholding by Some Directors Supervisors and Senior Management 2020 term as
95BOE Technology Group Co. Ltd. Annual Report 2021
Vice Chairman of the (No.: 2020-001) disclosed by the Company on 22 February 2020 some of the director
Board: Mr. Liu Xiaodong Company’s directors supervisors and senior managers based on their supervisor
Director: Ms. Sun Yun and confidence in the Company’s future development and their recognition of the or senior
Mr. Gao Wenbao corporate value promise not to reduce or transfer any shares held in BOE (A manager
Supervisor: Mr. Xu shares) not to entrust others to manage specific shares not to authorize others and in six
Yangping Mr. He Daopin to execute their voting right by means of any agreement trust or other months after
Mr. Yan Jun and Mr. Teng arrangements and not to require the Company to repurchase any specific shares the
Jiao during the terms of office and within 6 months after their tenures expire so as to expiration of
Senior Management: Mr. promote the Company’s continuous stable and healthy development and the term (the
Yao Xiangjun Mr. Zhang maintain the rights and interests of the Company and all shareholders. For any term
Zhaohong Mr. Zhong newly-added shares derived from the assignment of rights and interests determined
Huifeng Ms. Feng Liqiong including the share donation and the reserved funds converted into share capital when taking
Mr. Xie Zhongdong Mr. during the period (corresponding to the specific shares) they shall still keep office).Miao Chuanbin and Mr. Liu their promises till the commitment period expires.Hongfeng
Executed on time or not Yes
Specific reasons for failing
to fulfill commitments on
N/A
time and plans for next step
(if any)
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still within the forecast period explain why the forecast
has been reached for the Reporting Period.□ Applicable √ Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related Parties for Non-Operating Purposes
□ Applicable √ Not applicable
96BOE Technology Group Co. Ltd. Annual Report 2021
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion” on the Financial Statements
□ Applicable √ Not applicable
V Explanations Given by the Board of Directors the Supervisory Board and the Independent Directors (if any) Regarding the
Independent Auditor's “Modified Opinion” on the Financial Statements of the Reporting Period
□ Applicable √ Not applicable
97BOE Technology Group Co. Ltd. Annual Report 2021
VI YoY Changes to Accounting Policies Estimates or Correction of Material Accounting
Errors
√ Applicable □ Not applicable
On 7 December 2018 the Ministry of Finance (MOF) issued the Notice on Revision and Issuance of the Accounting Standard for
Business Enterprises No. 21 - Lease (C.K. [2018] No. 35) (hereinafter referred to as "new lease standards"). According to the
requirements of the Ministry of Finance those enterprises that are listed both at home and abroad and those enterprises that are listed
overseas and adopt the International Financial Reporting Standards or the Accounting Standards for Business Enterprises for
preparation of financial statements should implement the standards from 1 January 2019; the other enterprises that adopt the
Accounting Standards for Business Enterprises should implement the standards from 1 January 2021. The Company has
implemented the new lease standards since 1 January 2021 and according to the accumulated number of impacts based on the
execution of the new lease standard the Company will adjust the retained income and the amount of relevant items in the financial
statements at the beginning of the first year of execution and will not adjust information for comparable periods.On 2 November 2021 the Ministry of Finance updated the Q&As of the implementation of fixed asset standard. It requires that for
routine repair charge that is not in conformity with subsequent expenditures of fixed asset capitalization enterprises should recognize
it as profit or loss or recognize it as the cost of relevant assets by beneficiaries when it occurs according to relevant regulations of the
Accounting Standard for Business Enterprises No.1 - Inventory (C.K. [2006] No. 3) and Accounting Standards for Business
Enterprises No. 4 - Fixed Assets (C.K. [2006] No. 3). Routine repair charge of fixed assets related to the production and processing
of inventories shall be processed in accordance with the principles for determining the cost of inventories. The routine repair charge
of fixed assets incurred in administrative departments and selling institutions specially established by enterprises shall be classified
and recognized as management expense or marketing expense according to the functions. The Company adjusted the data of 2021
according to the requirements of Q&As and made retroactive adjustments to the data in 2020.The above changes in accounting policies will not exert a significant impact on the Company's financial condition operating result
and cash flow.VII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
One subsidiary was established in the current period that is BOE Mled Technology Co. Ltd. with 100% shareholding.One subsidiary was disposed in the current period that is Beijing BOE Special Display Technology Co. Ltd. With 100%
shareholding at the beginning of the period and 0.00% shareholding at the end of the period.VIII Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor KPMG Huazhen (LLP)
The Company’s payment to the domestic independent auditor (RMB’0000) 1190
How many consecutive years the domestic independent auditor has provided
17 years
audit service for the Company
Names of the certified public accountants from the domestic independent
Zhang Huan and Chai Jing
auditor writing signatures on the auditor’s report
98BOE Technology Group Co. Ltd. Annual Report 2021
How many consecutive years the certified public accountants from the
Zhang Huan 5 years and Chai Jing 3 year
domestic independent auditor have provided audit service for the Company
Name of the foreign independent auditor (if any) N/A
The Company’s payment to the foreign independent auditor (RMB’0000) (if
0
any)
How many consecutive years the foreign independent auditor has provided
N/A
audit service for the Company (if any)
Names of the certified public accountants from the foreign independent auditor
N/A
writing signatures on the auditor’s report (if any)
How many consecutive years the certified public accountants from the foreign
N/A
independent auditor have provided audit service for the Company (if any)
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.□ Yes √ No
Independent auditor financial advisor or sponsor engaged for internal control audit
√ Applicable □ Not applicable
During the year the Company engaged KPMG Huazhen (LLP) as the Company's internal control audit accounting firm and the
Company paid KPMG Huazhen (LLP) total compensation of RMB11.9 million for the 2021 annual audit and internal control audit.IX Possibility of Delisting after Disclosure of this Report
□ Applicable √ Not applicable
X Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.XI Major Legal Matters
√ Applicable □ Not applicable
Involved Index to
Decisions and Execution of Disclosure
General information amount Provision Progress disclosed
effects decisions date
(RMB’0000) information
Litigations for 2021 (including
20729.84 No N/A N/A N/A - N/A
carryforwards in previous years )
XII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
99BOE Technology Group Co. Ltd. Annual Report 2021
XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□ Applicable √ Not applicable
The Company did not make deposits in receive loans or credit from and was not involved in any other finance business with any
related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable √ Not applicable
The finance company controlled by the Company did not make deposits receive loans or credit from and was not involved in any
other finance business with any related parties.
7. Other Major Related-Party Transactions
√Applicable □ Not applicable
None
Index to the public announcements about the said related-party transactions disclosed
100BOE Technology Group Co. Ltd. Annual Report 2021
Title of public announcement Disclosure date Disclosure website
Announcement on Involvement in Related-party Transaction for Private Placement 16 January 2021
www.cninfo.com.cn
of A-shares
Announcement on the Prediction of 2021 Annual Routine Connected Transaction 13 April 2021 www.cninfo.com.cn
Announcement on Involvement in Related-party Transaction for Private Placement 25 May 2021
www.cninfo.com.cn
of A-shares (Revised)
Announcement on Investment in Beijing YanDong MicroElectronic Co. Ltd. and
31 August 2021 www.cninfo.com.cn
Related Transactions
Announcement on the Participation in the Establishment of Beijing Jingguoguan
29 December 2021 www.cninfo.com.cn
Equity Investment Fund (Limited Partnership) and Related Transactions
XV Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
101BOE Technology Group Co. Ltd. Annual Report 2021
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
√ Applicable □ Not applicable
Unit: RMB'0000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure date of the Actual Counter Having Guarantee
Line of Actual occurrence Type of Collateral
Obligor guarantee line guarantee guarantee (if Term of guarantee expired for a related
guarantee date guarantee (if any)
announcement amount any) or not party or not
N/A
Guarantees provided by the Company as the parent for its subsidiaries
Disclosure date of the Actual Counter Having Guarantee
Line of Actual occurrence Type of Collateral
Obligor guarantee line guarantee guarantee (if Term of guarantee expired for a related
guarantee date guarantee (if any)
announcement amount any) or not party or not
Ordos YuanSheng Optoelectronics 2017-3-17 to
2016-11-30 542448 2017-03-15 155455 Joint-liability N/A N/A Not Not
Co. Ltd. 2027-3-17
Chengdu BOE Optoelectronics 2017-04-24 2219994 2017-08-30 2008093 Joint-liability N/A N/A 2017-9-6 to 2029-9-6 Not Not
102BOE Technology Group Co. Ltd. Annual Report 2021
Technology Co. Ltd.Opening date of the
Chengdu BOE Optoelectronics
2017-04-24 450000 2017-07-31 39500 Joint-liability N/A N/A letter of guarantee to Not Not
Technology Co. Ltd.
2026-5-25
Chongqing BOE Optoelectronics 2014-11-5 to
2014-07-28 1359514 2014-09-29 119731 Joint-liability N/A N/A Not Not
Technology Co. Ltd. 2024-11-5
The secured
party provides
Hefei BOE Display Technology Co.
2016-11-30 1608158 2017-08-30 1052221 Joint-liability N/A a counter 2017-9-7 to 2027-9-7 Not Not
Ltd.guarantee for
the guarantor
Fuzhou BOE Optoelectronics 2016-12-19 to
2015-12-09 1287089 2016-11-08 457666 Joint-liability N/A N/A Not Not
Technology Co. Ltd. 2026-12-19
The secured
party provides
Mianyang BOE Optoelectronics Co. 2018-9-26 to
2018-05-18 2054691 2018-09-18 1942967 Joint-liability N/A a counter Not Not
Ltd. 2031-9-26
guarantee for
the guarantor
The secured
party provides Opening date of the
Mianyang BOE Optoelectronics Co.
2018-05-18 460000 2018-06-22 48000 Joint-liability N/A a counter letter of guarantee to Not Not
Ltd.guarantee for 2027-11-6
the guarantor
The secured
Chongqing BOE Display Technology party provides 2020-12-31 to
2020-04-27 1963503 2020-12-29 778595 Joint-liability N/A Not Not
Co. Ltd. a counter 2033-12-31
guarantee for
103BOE Technology Group Co. Ltd. Annual Report 2021
the guarantor
The secured
party provides
Wuhan BOE Optoelectronics 2019-8-23 to
2019-03-25 1940416 2019-08-16 1561416 Joint-liability N/A a counter Not Not
Technology Co. Ltd. 2032-8-23
guarantee for
the guarantor
The secured
party provides
Nanjing BOE Display Technology 2021-05-12 to
2020-09-23 180000 2021-05-12 135000 Joint-liability N/A a counter Not Not
Co. Ltd. 2026-05-31
guarantee for
the guarantor
The secured
party provides
Nanjing BOE Display Technology 2021-05-12 to
2020-09-23 120000 2021-05-12 120000 Joint-liability N/A a counter Not Not
Co. Ltd. 2026-06-06
guarantee for
the guarantor
The secured
party provides
Nanjing BOE Display Technology 2021-7-29 to
2020-09-23 100065 2021-07-29 75055 Joint-liability N/A a counter Not Not
Co. Ltd. 2025-6-17
guarantee for
the guarantor
The secured
party provides
Nanjing BOE Display Technology 2021-8-13 to
2020-09-23 19098 2021-08-13 15000 Joint-liability N/A a counter Not Not
Co. Ltd. 2025-4-28
guarantee for
the guarantor
Nanjing BOE Display Technology The secured 2021-12-27 to
2020-09-23 10500 2021-12-27 10500 Joint-liability N/A Not Not
Co. Ltd. party provides 2026-8-24
104BOE Technology Group Co. Ltd. Annual Report 2021
a counter
guarantee for
the guarantor
The secured
party provides
2020-6-15 to
Chengdu BOE Hospital Co. Ltd. 2020-04-27 240000 2020-06-15 115309 Joint-liability N/A a counter Not Not
2042-6-30
guarantee for
the guarantor
Total actual amount of such
Total approved line for such guarantees in the Reporting
0 guarantees in the Reporting -984171
Period (B1)
Period (B2)
Total actual balance of such
Total approved line for such guarantees at the end of the
14555476 guarantees at the end of the 8634510
Reporting Period (B3)
Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosure date of the Actual Counter Having Guarantee
Line of Actual occurrence Type of Collateral
Obligor guarantee line guarantee guarantee (if Term of guarantee expired for a related
guarantee date guarantee (if any)
announcement amount any) or not party or not
Guangtai Solar Energy Technology Joint-liability; Equity 2017-12-20 to
N/A 5450 2017-12-20 3458 N/A Not Not
(Suzhou) Co. Ltd. pledge interest 2029-4-6
Joint-liability; Equity 2017-6-15 to
Huanda Trading (Hebei) Co. Ltd. N/A 14600 2017-05-24 9097 N/A Not Not
pledge interest 2031-3-16
Yangyuan Photovoltaic Power 2020-9-30 to
N/A 3800 2020-09-30 3743 Joint-liability N/A N/A Not Not
Generation (Huanggang) Co. Ltd. 2034-9-30
Yaoguang New Energy (Shouguang) 2020-9-30 to
N/A 3600 2020-09-30 3546 Joint-liability N/A N/A Not Not
Co. Ltd. 2034-9-30
105BOE Technology Group Co. Ltd. Annual Report 2021
Suzhou Industrial Park Taijing 2020-9-30 to
N/A 2800 2020-09-30 2758 Joint-liability N/A N/A Not Not
Photovoltaic Co. Ltd. 2034-9-30
Qingmei Solar Energy Technology 2020-9-30 to
N/A 3300 2020-09-30 3030 Joint-liability N/A N/A Not Not
(Lishui) Co. Ltd. 2034-9-30
Qinghong Solar Energy Technology 2020-9-30 to
N/A 1700 2020-09-30 1561 Joint-liability N/A N/A Not Not
(Jinhua) Co. Ltd. 2034-9-30
Qinghui Solar Energy Technology 2020-9-30 to
N/A 1100 2020-09-30 1010 Joint-liability N/A N/A Not Not
(Jinhua) Co. Ltd. 2034-9-30
2020-9-30 to
Hefei Hexu Technology Co. Ltd. N/A 400 2020-09-30 394 Joint-liability N/A N/A Not Not
2034-9-30
2020-9-30 to
Hefei Chenneng Technology Co. Ltd. N/A 800 2020-09-30 788 Joint-liability N/A N/A Not Not
2034-9-30
Joint-liability; Equity 2017-12-18 to
Rongke New Energy (Hefei) Co. Ltd. N/A 1400 2017-12-18 1106 N/A Not Not
pledge interest 2032-12-18
Joint-liability; Equity 2017-12-18 to
Tianchi New Energy (Hefei) Co. Ltd. N/A 1100 2017-12-18 866 N/A Not Not
pledge interest 2032-12-18
Qinghao Solar Energy Technology Joint-liability; Equity 2017-12-18 to
N/A 890 2017-12-18 675 N/A Not Not
(Jinhua) Co. Ltd. pledge interest 2032-12-18
Xiangqing Solar Energy Technology Joint-liability; Equity 2017-12-18 to
N/A 3476 2017-12-18 2238 N/A Not Not
(Dongyang) Co. Ltd pledge interest 2032-12-18
Qingyue Solar Energy Technology Joint-liability; Equity 2017-12-18 to
N/A 960 2017-12-18 618 N/A Not Not
(Wuyi) Co. Ltd pledge interest 2032-12-18
Qingyou Solar Energy Technology Joint-liability; Equity 2017-12-18 to
N/A 2210 2017-12-18 1695 N/A Not Not
(Longyou) Co. Ltd pledge interest 2032-12-18
Qingfan Solar Energy Technology Joint-liability; Equity 2017-12-18 to
N/A 1855 2017-12-18 1194 N/A Not Not
(Quzhou) Co. Ltd pledge interest 2032-12-18
106BOE Technology Group Co. Ltd. Annual Report 2021
Anhui BOE Energy Investment Co. Joint-liability; Equity 2017-12-27 to
N/A 13575 2017-12-27 10301 N/A Not Not
Ltd pledge interest 2032-12-27
Taihang Electric Power Technology 2020-12-3 to
N/A 300 2020-12-03 281 Joint-liability N/A N/A Not Not
(Ningbo) Co. Ltd 2034-12-3
2020-12-3 to
Guoji Energy (Ningbo) Co. Ltd. N/A 1800 2020-12-03 1688 Joint-liability N/A N/A Not Not
2034-12-3
Hongyang Solar Energy Power 2020-12-3 to
N/A 2500 2020-12-03 2345 Joint-liability N/A N/A Not Not
Generation (Anji) Co. Ltd. 2034-12-3
Ke’en Solar Energy Power Generation 2020-12-3 to
N/A 1600 2020-12-03 1501 Joint-liability N/A N/A Not Not
(Pingyang) Co. Ltd. 2034-12-3
Dongze Photovoltaic Power 2020-12-3 to
N/A 1400 2020-12-03 1313 Joint-liability N/A N/A Not Not
Generation (Wenzhou) Co. Ltd. 2034-12-3
Aifeisheng Investment and 2020-12-3 to
N/A 700 2020-12-03 657 Joint-liability N/A N/A Not Not
Management (Wenzhou) Co Ltd. 2034-12-3
Beijing BOE Energy Technology Co. Charging 2017-10-24 to
N/A 12800 2017-10-23 12480 Pledge N/A Not Not
Ltd. right 2032-10-23
Beijing BOE Energy Technology Co. Charging 2018-9-26 to
N/A 20560 2018-08-15 15680 Pledge N/A Not Not
Ltd. right 2032-12-21
Beijing BOE Energy Technology Co. Charging 2017-12-1 to
N/A 25418 2017-11-28 22018 Pledge N/A Not Not
Ltd. right 2032-12-1
Hengchuang New Energy Technology 2018-1-31 to
N/A 6892 2018-01-31 5196 Joint-liability N/A N/A Not Not
(Hong’an) Co. Ltd. 2033-1-31
Anhui BOE Energy Investment Co. 2018-4-25 to
N/A 2060 2018-04-25 1642 Joint-liability N/A N/A Not Not
Ltd. 2033-4-25
Junlong New Energy Technology 2018-4-25 to
N/A 8459 2018-04-25 6743 Joint-liability N/A N/A Not Not
(Huaibin) Co. Ltd. 2033-4-25
107BOE Technology Group Co. Ltd. Annual Report 2021
Shaoxing Guangnian New Energy 2018-12-13 to
N/A 16000 2018-12-13 14285 Joint-liability N/A N/A Not Not
Co. Ltd. 2033-12-12
Shaoxing Xuhui New Energy Co. 2018-12-13 to
N/A 4500 2018-12-13 4018 Joint-liability N/A N/A Not Not
Ltd. 2033-12-12
2018-4-27 to
Hefei BOE Hospital Co. Ltd. 2018-04-27 130000 2018-04-27 114500 Joint-liability N/A N/A Not Not
2036-4-27
2021-10-27 to
Juhui New Energy (Pinghu) Co. Ltd. N/A 1200 2021-10-27 1175 Joint-liability N/A N/A Not Not
2036-10-27
2021-10-27 to
Dinghui New Energy (Zhuji) Co. Ltd. N/A 2100 2021-10-27 2056 Joint-liability N/A N/A Not Not
2036-10-27
Juhui New Energy (Shaoxing) Co. 2021-10-27 to
N/A 8700 2021-10-27 8519 Joint-liability N/A N/A Not Not
Ltd. 2036-10-27
The secured
party provides
Beijing BOE Life Technology Co. 2021-12-29 to
N/A 60000 2021-12-29 20000 Joint-liability N/A a counter Not Not
Ltd. 2039-12-28
guarantee for
the guarantor
Total actual amount of such
Total approved line for such guarantees in the Reporting
60000 guarantees in the Reporting 32151
Period (C1)
Period (C2)
Total actual balance of such
Total approved line for such guarantees at the end of the
370005 guarantees at the end of the 284175
Reporting Period (C3)
Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Total actual guarantee amount in
60000-952020
Reporting Period (A1+B1+C1) the Reporting Period
108BOE Technology Group Co. Ltd. Annual Report 2021
(A2+B2+C2)
Total approved guarantee line at the Total actual guarantee balance at
end of the Reporting Period 14925481 the end of the Reporting Period 8918685
(A3+B3+C3) (A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 62.40%
Of which:
Balance of guarantees provided for shareholders actual controller and their related parties (D) 0
Balance of debt guarantees provided directly or indirectly for obligors with an over 70%
39952
debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 1772408
Total of the three amounts above (D+E+F) 1808936
Joint responsibilities possibly borne or already borne in the Reporting Period for undue
N/A
guarantees (if any)
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
Compound guarantees
None
109BOE Technology Group Co. Ltd. Annual Report 2021
3. Cash Entrusted for Wealth Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overviews of cash entrusted for wealth management during the Reporting Period
Unit: RMB'0000
Unrecovered
Unrecovered
overdue amount
Specific type Capital resources Amount incurred Undue balance overdue
with provision for
amount
impairment
Bank financial products and
Self-owned funds 1016100 1000900 0 0
structured deposit
Total 1016100 1000900 0 0
Particulars of entrusted cash management with single significant amount or low security and bad liquidity
□ Applicable √ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for
entrusted asset management
□ Applicable √ Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.XVI Other Significant Events
√ Applicable □ Not applicable
1. On 18 October 2019 the Company disclosed the Announcement on the Company’s Application for CSRC’s Approval for its Public
Issue of Renewable Corporate Bonds (Announcement No. 2019-052) and the Company received the No. [2019] 1801 Approval from
CSRC. Based on the approval the Company could publicly issue the renewable corporate bonds with the nominal value no more than
RMB30 billion to qualified investors. The Company publicly issued renewable corporate bonds (to qualified investors) (the first issue)
(“19BOEY1” for short; Code: 112741) in 2019 with the issue term from 28 October 2019 to 29 October 2019 the issuing scale of
RMB8 billion and the bonds’ ultimate nominal interest rate of 4.0%. The Company publicly issued renewable corporate bonds (to
qualified investors) (the first issue) (epidemic prevention and control bonds) (“20BOEY1” for short; Code: 149046) in 2020 with the
issue term from 27 February 2020 to 28 February 2020 the issuing scale of RMB2 billion and the bonds’ ultimate nominal interest of
3.64%. The Company publicly issued the renewable corporate bonds (to qualified investors) (the second issue) (epidemic prevention
110BOE Technology Group Co. Ltd. Annual Report 2021
and control bonds) (“20BOEY2” for short; Code: 149065) in 2020 with the issue term from 18 March 2020 to 19 March 2020 the
issuing scale of RMB2 billion and the bonds’ ultimate nominal interest of 3.54%. The Company publicly issued the renewable
corporate bonds (to qualified investors) (the third issue) (epidemic prevention and control bonds) (“20BOEY3” for short; Code:
149108) in 2020 with the issue term from 24 April 2020 to 27 April 2020 the issuing scale of RMB2 billion and the bonds’ ultimate
nominal interest of 3.50%.The Company disclosed 2021 "20BOEY1" Interest Payment Announcement (Announcement No. 2021-016)
on 23 February 2021. BOE Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the First Issue) (epidemic
prevention and control bonds) in 2020 was one year old until 27 February 2021. According to the regulations interest will be paid
once a year during the interest-bearing period. The interest payment plan is RMB36.40 (including tax) per 10 bonds. The Company
disclosed 2021 "20BOEY2" Interest Payment Announcement (Announcement No. 2021-018) on 17 March 2021. BOE Public
Issuance of Renewable Corporate Bonds (to Qualified Investors) (the Second Issue) (epidemic prevention and control bonds) in 2020
was one year old until 18 March 2021. According to the regulations interest will be paid once a year during the interest-bearing
period. The interest payment plan is RMB35.40 (including tax) per 10 bonds. The Company disclosed 2021 "20BOEY3" Interest
Payment Announcement (Announcement No. 2021-035) on 23 April 2021. BOE Public Issuance of Renewable Corporate Bonds (to
Qualified Investors) (the Third Issue) (pandemic prevention and control bonds) in 2020 was one year old until 27 April 2021.According to the regulations interest will be paid once a year during the interest-bearing period. The interest payment plan is
RMB35.00 (including tax) per 10 bonds. The Company disclosed 2021 "19BOEY1" Interest Payment Announcement (Announcement
No. 2021-085) on 26 October 2021. BOE Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the First Issue) in
2019 was two years old until 28 October 2021. According to the regulations interest will be paid once a year during the
interest-bearing period. The interest payment plan is RMB40.00 (including tax) per 10 bonds. The Company disclosed 2022
"20BOEY1" Interest Payment Announcement (Announcement No. 2022-006) on 24 February 2022. 27 February 2022 was the second
anniversary of BOE Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the First Issue) (epidemic prevention
and control bonds) issued in 2020. According to the regulations interest will be paid once a year during the interest-bearing period.The interest payment plan was RMB36.40 (including tax) every ten bonds. The Company disclosed 2022 "20BOEY2" Interest
Payment Announcement (Announcement No. 2022-013) on March 17 2022. March 18 2022 was the second anniversary of BOE
Public Issuance of Renewable Corporate Bonds (to Qualified Investors) (the Second Issue) (epidemic prevention and control bonds)
issued in 2020. According to the regulations interest will be paid once a year during the interest-bearing period. The interest payment
plan was RMB35.40 (including tax) per ten bonds. The Company publicly issued renewable corporate bonds (digital economy) to
professional investors (the first issue) (“22BOEY1” for short; Code: 149861) in 2022 with the issue term from 24 March 2022 to 25
March 2022 the issuing scale of RMB2 billion and the bonds’ ultimate nominal interest rate of 3.50%.
2. On 16 January 2021 the Company disclosed the Announcement on the Resolution of the 21st Meeting of the 9th Board of Directors
(Announcement No. 2021-001) and the Plan for Non-Public Offering of A-Shares in 2021 and other related announcements in which
the Company intends to make a non-public offering of A-shares to no more than 35 specific investors including Jing Guorui Fund. The
net fund raised was expected to be no more than 20 billion. The raised funds will be used for "acquisition of 24.06% equity of Wuhan
BOE Optoelectronics Technology Co. Ltd." "capital increase to Chongqing BOE Display Technology Co. Ltd. and construction of its
Gen-6 AMOLED (flexible) production line project" "capital increase to Yunnan Chuangshijie Optoelectronics Technology Co. Ltd.and construction of its 12-inch silicon OLED project" "capital increase to Chengdu BOE Hospital and construction of Chengdu BOE
Hospital project" "repayment of Fuzhou Urban Construction Investment Group loan" and supplementation of working capital. On 8
July 2021 the Company disclosed the Announcement on the Approval of the China Securities Regulatory Commission for the
Non-Public Offering of A-Shares (Announcement No. 2021-054) which tells that the Company received the Reply on Approval of the
Non-Public Offering of Shares by BOE Technology Group Co. Ltd. (ZH.J.X.K. [2021] No. 2277) issued by the China Securities
Regulatory Commission on 7 July 2021. On 19 August 2021 the Company disclosed the Report on the Non-public Offering of
A-shares by BOE Technology Group Co. Ltd. & the Announcement on the Listing of these Shares (announcement No. 2021-058)
along with other relevant announcements. 3650377019 new shares were issued in the non-public offering which were listed on the
111BOE Technology Group Co. Ltd. Annual Report 2021
Shenzhen Stock Exchange on 20 August 2021. On 18 February 2022 the Company disclosed the Suggestive Announcement on
Relieving Restricted Non-publicly Offered A Shares in 2021 (Announcement No.: 2022-005). On February 21 2022 2932244165
restricted shares of non-publicly offered A shares in 2021 were relieved and could be traded in the market. The number of the
relieved restricted shares accounted for 8.5058% of non-restricted shares of the Company and 7.6270% of the total share capital of
the Company.
3. On 28 May 2021 the Company disclosed the Announcement on the Implementation of Equity Distribution for the Year 2020
(Announcement No.: 2021-049) which tells that the Company's equity distribution plan for the year 2020 has been examined and
approved at the 2020 Annual General Meeting held on 18 May 2021. In the year 2020 the Company distributed profit to all
shareholders at a rate of RMB1.00 per 10 shares based on the deduction of the total capital of 34770212630 shares held by the
Company through the buy-back account (wherein the profit of B shares was paid by converting RMB into HKD at the central rate of
the exchange of RMB into HKD published by People's Bank of China on the first business day after the resolution of the General
Meeting of the Company) and the Company did not give any bonus shares or increase the capital by the provident fund.
4. On 31 August 2021 the Company disclosed the Announcement No. 2021-060 on the Resolutions of the 31st Meeting of the 9th
Board of Directors the Announcement No. 2021-066 on the Grant of Share Options to Awardees of Reserved Share Options under
the 2020 Share Option and Restricted Share Incentive Plan and other related announcements. According to the 2020 Share Option
and Restricted Share Incentive Plan (Draft) of BOE Technology Group Co. Ltd. 33000000 share options would be granted to 110
awardees on 27 August 2021 for the conditions for the grant of the reserved share options under this plan had been met. On 23
October 2021 the Company disclosed the Announcement No. 2021-084 on the Transfer of the Ownership of the Reserved Share
Options under the 2020 Share Option and Restricted Share Incentive Plan. The reserved share options (code: 037179 name: Eastern
JLC2) were transferred on 22 October 2021.
5. Following the approval of the Proposal on the Repurchase of Some Public Shares at the 31st Meeting of the 9th Board of Directors
the Company disclosed the Announcement No. 2021-067 on the Repurchase of Some Public Shares on 31 August 2021. The
Company carried out the first repurchase on 2 September 2021 and disclosed the Announcement No. 2021-077 on the First
Repurchase of Some Public Shares on 3 September 2021. On 5 January 2022 the Company disclosed the Announcement No.
2022-005 on Progress of the Repurchase of Some Public Shares. As of 31 December 2021 the Company repurchased a total of
460419000 A-shares (approximately 1.2275% of the Company’s total A-share capital and 1.1976% of its total share capital) to the
special securities account for repurchase by way of centralized bidding. With the highest price being RMB5.96/share and the lowest
RMB4.89/share the total payment for this repurchase amounted to RMB2427517910.23 (exclusive of commissions and other fixed
costs). The said repurchase was in compliance with applicable laws and regulations as well as with the Company’s repurchase plan
On 2 March 2022 the Company disclosed the Announcement on the Completed Implementation of Share Repurchase Programme
and Repurchase Implementation Results (Announcement No.: 2022-007). As at 28 February 2022 the Company has implemented
the repurchase of the Company's shares by means of centralized bidding through a special securities account for the repurchase and
the cumulative number of A Shares repurchased was 499999919 accounting for approximately 1.3330% of the Company's A
Shares and 1.3005% of the Company's total share capital with the highest transaction price of RMB5.96 per share and the lowest
transaction price of RMB4.68 per share. The total amount paid was RMB2620105418.52 (including other fixed expenses such as
commissions). The above repurchase of the Company was in line with the requirements of relevant laws and regulations as well as
the established repurchase programme of the Company. The total fund of this share repurchase didn't exceed the amount proposed to
be used in the repurchase programme and the number of shares repurchased has reached the cap of shares under the repurchase
programme. So far this share repurchase has been implemented and completed as planned.Index to disclosure
Overview of significant events Disclosure date website for interim
report
112BOE Technology Group Co. Ltd. Annual Report 2021
Announcement on Intention to Purchasing Some Equity of the Subsidiary Wuhan 16 January 2021
www.cninfo.com.cn
BOE Optoelectronics Technology Co. Ltd.Announcement on Being Transferred Some Equity of Mianyang BOE
27 January 2021 www.cninfo.com.cn
Optoelectronics Technology Co. Ltd.Announcement on Investing the Production Line Expansion of Advanced
23 March 2021 www.cninfo.com.cn
Generation TFT-LCD by Wuhan BOE Optoelectronics Technology Co. Ltd.Announcement on Investment in Beijing YanDong MicroElectronic Co. Ltd. 31 August 2021
www.cninfo.com.cn
and Related Transactions
Announcement on Investment in BOE IoT Mobile Display Port Device Production 31 August 2021
www.cninfo.com.cn
Base Project
Announcement on Investment in the Project of Chengdu Vehicle Display Base of 29 October 2021
www.cninfo.com.cn
BOE
Announcement on the Participation in the Establishment of Beijing Jingguoguan 29 December 2021
www.cninfo.com.cn
Equity Investment Fund (Limited Partnership) and Related Transactions
XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
113BOE Technology Group Co. Ltd. Annual Report 2021
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Item Bonus issue from
Number Percentage New issues Bonus shares Other Subtotal Number Percentage
profit
I. Restricted shares 325345611 0.93% 3650377019 0 0 -3522700 3646854319 3972199930 10.33%
1. Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
2. Shares held by state-owned
00.00%1472764818000147276481814727648183.83%
corporations
3. Shares held by other domestic
2973644110.85%160335726600-2191200160116606618985304774.94%
investors
Among which: Shares held by
00.00%1603357266000160335726616033572664.17%
domestic corporations
Shares held by
2973644110.85%000-2191200-21912002951732110.77%
domestic individuals
4. Shares held by foreign investors 27981200 0.08% 574254935 0 0 -1331500 572923435 600904635 1.56%
Among which: Shares held by
00.00%5742549350005742549355742549351.49%
foreign corporations
Shares held by 27981200 0.08% 0 0 0 -1331500 -1331500 26649700 0.07%
114BOE Technology Group Co. Ltd. Annual Report 2021
foreign individuals
II. Non-restricted shares 34473053152 99.07% 0 0 0 493400 493400 34473546552 89.67%
1. RMB ordinary shares 33536939664 96.37% 0 0 0 493400 493400 33537433064 87.23%
2. Domestically listed foreign
9361134882.69%000009361134882.43%
shares
3. Overseas listed foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Other 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 34798398763 100.00% 3650377019 0 0 -3029300 3647347719 38445746482 100.00%
Reasons for share changes:
√ Applicable □ Not applicable
During the Reporting Period the Company issued 3650377019 RMB ordinary shares in a non-public manner and 3650377019 shares subject to trading moratorium of the Company were
added.During the Reporting Period the Company repurchased and cancelled 3029300 restricted shares that had been authorized to eight incentive recipients but were still locked resulting in a
decrease of 3029300 restricted shares of the Company's equity incentive.During the Reporting Period according to the Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock Exchange the legal quota of transferrable shares of
directors supervisors and senior management of the Company shall be re-calculated at the beginning of the year which resulted in the change of 493400 shares held by senior management
from restricted to non-restricted.During the Reporting Period the total number of shares increased by 3647347719 shares among which 3646854319 shares were restricted shares and 493400 shares were non-restricted
shares.Approval of share changes:
√ Applicable □ Not applicable
On 7 July 2021 China Securities Regulatory Commission issued the Approval on the Non-Public Offering of Shares by BOE Technology Group Co. Ltd. (Z.J.X.K. [2021] No. 2277) which
approved the Company's non-public offering of no more than 6959679752 new shares. As confirmed by the Shenzhen branch of China Securities Depository and Clearing Corporation Limited
the non-public offering of shares were officially listed on 20 August 2021 and a total of 3650377019 A Shares were issued.Transfer of share ownership:
□ Applicable √ Not applicable
115BOE Technology Group Co. Ltd. Annual Report 2021
Effects of share changes on the basic and diluted earnings per share equity per share attributable to the Company’s ordinary shareholders and other financial indicators of the prior year and the
prior accounting period respectively:
√ Applicable □ Not applicable
Item January-December 2021
Basic earnings per share (RMB/share) 0.71
Diluted earnings per share (RMB/share) 0.71
Item 31 December 2021
Equity per share attributable to the Company’s ordinary shareholders 3.39
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
116BOE Technology Group Co. Ltd. Annual Report 2021
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: Share
Restricted shares Restricted shares Restricted shares Restricted shares
Restricted shares
Name of the shareholders amount at the increased of the relieved of the amount at the Restricted reasons
relieved date
period-begin period period period-end
Beijing Jing Guorui Soe Reform and Development Fund
0 718132854 0 718132854 Private placement 2023-02-21
(L.P.)
Fuqing Huirong Venture Capital Co. Ltd. 0 538599640 0 538599640 Private placement 2022-02-21
MORGAN STANLEY & CO.INTERNATIONAL PLC. 0 271095152 0 271095152 Private placement 2022-02-21
Caitong Fund - PSBC - Caitong Fund - No. 1 Asset
0 179533214 0 179533214 Private placement 2022-02-21
Management Plan of Bohai Life in Yuquan
Yiwu Harmonious Jinhong Equity Investment Partnership
0 179533213 0 179533213 Private placement 2022-02-21
(L.P.)
Shandong Haixiang Equity Investment Fund Management
0 147163387 0 147163387 Private placement 2022-02-21
Co. Ltd.Hongta Securities Co. Ltd. 0 143626570 0 143626570 Private placement 2022-02-21
JPMORGAN CHASE BANKNATIONAL ASSOCIATION 0 116696588 0 116696588 Private placement 2022-02-21
Shanghai Gao Yi Asset Management Partnership (L.P.) -
0 107719928 0 107719928 Private placement 2022-02-21
Gao Yi Xiaofeng No. 2 Zhixin Fund
Haitong Securities Co. Ltd. 0 99030520 0 99030520 Private placement 2022-02-21
Other non-public offering restricted shareholders 0 1149245953 0 1149245953 Private placement 2022-02-21
Adjustment of legal
Shares locked by senior executives 3531811 0 493400 3038411 2021-01-04
quota for transferable
117BOE Technology Group Co. Ltd. Annual Report 2021
shares
Cancellation for
Restricted shares for equity incentive 321813800 0 3029300 318784500 equity incentive -
repurchase
Total 325345611 3650377019 3522700 3972199930 -- --
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
√ Applicable □ Not applicable
Name of Stock
Approved
and derivative issue price Termination date for
Issue date Issue amount Listing date amount for Disclosure index Disclosure date
securities (interest) trading
listing
thereof
Stock
Private Report and Listing Announcement of Private
RMB5.57 20 August
placement of 23 July 2021 3650377019 3650377019 - Placement of A-Shares of BOE Technology Group 18 August 2021
per share 2021
A-share Co. Ltd. Disclosed on http://www.cninfo.com.cn/
Convertible corporate bonds convertible corporate bonds separately traded and corporate bonds
None
Other derivative securities
None
Notes:
On 7 July 2021 China Securities Regulatory Commission issued the Approval on the Non-Public Offering of Shares by BOE Technology Group Co. Ltd. (Z.J.X.K. [2021] No. 2277) which
approved the Company's non-public offering of no more than 6959679752 new shares. As confirmed by the Shenzhen branch of China Securities Depository and Clearing Corporation Limited
the non-public offering of shares were officially listed on 20 August 2021 and a total of 3650377019 A Shares were issued.
118BOE Technology Group Co. Ltd. Annual Report 2021
2. Changes to Total Shares Shareholder Structure and Asset and Liability Structures
√ Applicable □ Not applicable
During the Reporting Period the Company repurchased and cancelled 3029300 restricted shares that had been authorized to eight incentive recipients but were still locked resulting in a
decrease of 3029300 restricted shares of the Company's equity incentive.During the Reporting Period the Company issued 3650377019 RMB ordinary shares in a non-public manner resulting in an increase of 3650377019 shares of the Company. During the
Reporting Period the total number of shares increased by 3647347719 shares
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
Unit: share
Number of ordinary
Number of ordinary shareholders at the 1661753 (including 1623582 A-shareholders and 38171 shareholders at the 1646433 (including 1608539 A-shareholders and 37894
period-end B-shareholders) month-end prior to the B-shareholders)
disclosure of this Report
5% or greater shareholders or top 10 shareholders
Shares in pledge
marked or frozen
Nature of Shareholding Total shares held at Increase/decrease in the Restricted shares Unrestricted S
Name of shareholder
shareholder percentage the period-end Reporting Period held shares held h
Status
a
r
119BOE Technology Group Co. Ltd. Annual Report 2021
e
s
Beijing State-owned Capital Operation and State-owned legal
10.57% 4063333333 0 0 4063333333 N/A 0
Management Company Limited person
Foreign legal
Hong Kong Securities Clearing Company Ltd. 3.56% 1368997836 -678017783 0 1368997836 N/A 0
person
Beijing BOE Investment & Development Co. State-owned legal
2.14% 822092180 0 0 822092180 N/A 0
Ltd. person
Beijing Jing Guorui Soe Reform and
Other 1.87% 718132854 718132854 718132854 0 N/A 0
Development Fund (L.P.)
State-owned legal
Hefei Jianxiang Investment Co. Ltd. 1.73% 666195772 -64689645 0 666195772 N/A 0
person
Domestic
Fuqing Huirong Venture Capital Co. Ltd. non-state-owned 1.40% 538599640 538599640 538599640 0 N/A 0
legal person
Chongqing Ezcapital Opto-electronics Industry State-owned legal
0.85% 326229746 -343726489 0 326229746 N/A 0
Investment Co. Ltd. person
Sinatay Life Insurance Co. Ltd.-Traditional
Other 0.79% 305330128 305330128 89766606 215563522 N/A 0
Product
State-owned legal
Beijing Electronics Holdings Co. Ltd. 0.71% 273735583 0 0 273735583 N/A 0
person
MORGAN STANLEY & CO. Foreign legal
0.71% 271657232 259216188 271095152 562080 N/A 0
INTERNATIONAL PLC. person
Strategic investors or general corporations
Naught
becoming top-ten ordinary shareholders due to
120BOE Technology Group Co. Ltd. Annual Report 2021
placing of new shares (if any) (see note 3)
1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co. Ltd.
2. Beijing Electronics Holdings Co. Ltd. held 66.25% equities of Beijing BOE Investment & Development Co. Ltd. and was its controlling shareholder.
3. After the non-public issuing of BOE in 2014 Hefei Jianxiang Investment Co. Ltd. and Chongqing Ezcapital Opto-electronic Industry Investment Co.
Ltd. by entering into Implementation Protocol of Voting Right respectively agreed to maintain all of the shares held by them respectively unanimous with
Beijing BOE Investment & Development Co. Ltd. when executing the voting rights of the shareholders.
4. After the non-public issuing of the Company in 2014 Beijing State-owned Capital Operation and Management Company Limited handed over 70% of
the shares directly held by it to Beijing Electronics Holdings Co. Ltd. for management through Stock Management Protocol and Beijing Electronics
Holdings Co. Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares of which the rest 30% voting right
Related or acting-in-concert parties among the
maintained unanimous with Beijing Electronics Holdings Co. Ltd. through the agreement according to Implementation Protocol of Voting Right.shareholders above
5. During the non-public issuing of the Company in 2021 Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert
Agreement with Beijing Electronics Holdings Co. Ltd.
6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment
Management Co. Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui
Investment Management Co. Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition among the nine
members of the Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.) three are nominated by
Beijing State-owned Capital Operation and Management Company Limited.
7. Except for the above relationships the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders.
1. After the non-public issuing of BOE in 2014 Hefei Jianxiang Investment Co. Ltd. and Chongqing Ezcapital Opto-electronic Industry Investment Co.
Ltd. by entering into Implementation Protocol of Voting Right respectively agreed to maintain all of the shares held by them respectively unanimous with
Beijing BOE Investment & Development Co. Ltd. when executing the voting rights of the shareholders.Explain if any of the shareholders above was 2. After the non-public issuing of the Company in 2014 Beijing State-owned Capital Operation and Management Company Limited handed over 70% of
involved in entrusting/being entrusted with the shares directly held by it to Beijing Electronics Holdings Co. Ltd. for management through Stock Management Protocol and Beijing Electronics
voting rights or waiving voting rights Holdings Co. Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares of which the rest 30% voting right
maintained unanimous with Beijing Electronics Holdings Co. Ltd. through the agreement according to Implementation Protocol of Voting Right.
3. During the non-public issuing of the Company in 2021 Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert
Agreement with Beijing Electronics Holdings Co. Ltd.Special account for share repurchases (if any) At the end of the Reporting Period among the top ten shareholders of the Company the special securities account for the repurchase of BOE Technology
121BOE Technology Group Co. Ltd. Annual Report 2021
among the top 10 shareholders (see note 10) Group Co. Ltd. held 488605133 shares accounting for 1.27%. According to relevant regulations in the Rule No. 2 for Content and Format of
Information Disclosure of the Company Issuing Securities Publicly if there are repurchase accounts in the top ten shareholders of the Company it should
be specified but these shareholders should not be included and listed as the top ten shareholders.Shareholdings of the top ten unrestricted ordinary shareholders
Shares by type
Name of shareholder Number of unrestricted ordinary shares held at the period-end
Type Shares
Beijing State-owned Capital Operation and
4063333333 RMB ordinary share 4063333333
Management Company Limited
Hong Kong Securities Clearing Company Ltd. 1368997836 RMB ordinary share 1368997836
Beijing BOE Investment & Development Co.
822092180 RMB ordinary share 822092180
Ltd.Hefei Jianxiang Investment Co. Ltd. 666195772 RMB ordinary share 666195772
Chongqing Ezcapital Opto-electronics Industry
326229746 RMB ordinary share 326229746
Investment Co. Ltd.Beijing Electronics Holdings Co. Ltd. 273735583 RMB ordinary share 273735583
Sinatay Life Insurance Co. Ltd.-Traditional
215563522 RMB ordinary share 215563522
Product
China Construction Bank-GF Technology
182316871 RMB ordinary share 182316871
Pioneer Mixed Type Securities Investment Fund
Beijing Yizhuang Investment Holdings Co. Ltd 161590832 RMB ordinary share 161590832
Shanghai Pudong Development Bank-GF
Small-Cap Growth Mixed Type Securities 151065847 RMB ordinary share 151065847
Investment Fund (LOF)
Related or acting-in-concert parties among top 1. Beijing State-owned Capital Operation and Management Company Limited held 100% equities of Beijing Electronics Holdings Co. Ltd.
10 unrestricted ordinary shareholders as well as 2. Beijing Electronics Holdings Co. Ltd. held 66.25% equities of Beijing BOE Investment & Development Co. Ltd. and was its controlling shareholder.
122BOE Technology Group Co. Ltd. Annual Report 2021
between top 10 unrestricted ordinary 3. After the non-public issuing of BOE in 2014 Hefei Jianxiang Investment Co. Ltd. and Chongqing Ezcapital Opto-electronic Industry Investment Co.shareholders and top 10 shareholders Ltd. by entering into Implementation Protocol of Voting Right respectively agreed to maintain all of the shares held by them respectively unanimous with
Beijing BOE Investment & Development Co. Ltd. when executing the voting rights of the shareholders.
4. After the non-public issuing of the Company in 2014 Beijing State-owned Capital Operation and Management Company Limited handed over 70% of
the shares directly held by it to Beijing Electronics Holdings Co. Ltd. for management through Stock Management Protocol and Beijing Electronics
Holdings Co. Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares of which the rest 30% voting right
maintained unanimous with Beijing Electronics Holdings Co. Ltd. through the agreement according to Implementation Protocol of Voting Right.
5. During the non-public issuing of the Company in 2021 Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the Acting-in-Concert
Agreement with Beijing Electronics Holdings Co. Ltd.
6. Beijing State-owned Capital Operation and Management Company Limited indirectly held 100% equities of Beijing Jingguorui Investment
Management Co. Ltd. and directly held 77.5918% shares of Beijing Jing Guorui Soe Reform and Development Fund (L.P.); Beijing Jingguorui Investment
Management Co. Ltd. is the general partner of Beijing Jing Guorui Soe Reform and Development Fund (L.P.). In addition among the nine members of the
Investment Decision-Making Committee of Beijing Jing Guorui Soe Reform and Development Fund (L.P.) three are nominated by Beijing State-owned
Capital Operation and Management Company Limited.
7. Except for the above relationships the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders.
Top 10 ordinary shareholders involved in The shares held by Beijing Yizhuang Investment Holdings Co. Ltd. in the Company decreased by 119705000 shares due to engaging in securities margin
securities margin trading (if any) (see note 4) trading.Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting
Period.□ Yes √ No
No such cases in the Reporting Period
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Name of controlling Legal
Date of establishment Unified social credit code Principal activity
shareholder representative/person
123BOE Technology Group Co. Ltd. Annual Report 2021
in charge
Operation and management of state-owned assets within authorization; communications
equipment audio & visual products for broadcasting and televisioncomputer and its
supporting equipment and the applied products electronic raw material and components
home electric appliances and electronic products electronic surveying instruments and
meters mechanical and electric equipment electronic transportation products and
Beijing Electronics investment in business fields other than electronics and its management development of
Wang Yan 8 April 1997 91110000633647998H
Holdings Co. Ltd. real estate lease and sales of commodity apartments property management. (The market
entity shall independently choose business items and carry out business activities
according to law. For items requiring approval according to law the company must obtain
approval from related authorities before carrying out the business activities. The company
shall not engage in business activities that are banned and restricted in the national and
municipal industrial policies.)
Beijing Electronic Shareholding Co. Ltd. held 508801304 shares of A share of Electronic City (Stock Code: 600658) which was of 45.49% of the total shares
Controlling shareholder’s amount of Electronic City; it held 49952842 shares of A share of NAURA Technology Group Co. Ltd. (original Beijing Sevenstar Electronics Co. Ltd. ) (Stock
holdings in other listed Code: 002371) which accounted for 9.50% of the total shares of NAURA Technology Group Co. Ltd. Beijing Electronic Shareholding Co. Ltd. held 178175721
companies at home or shares of A share of NAURA Technology Group Co. Ltd. through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co. Ltd
abroad in the Reporting which covered 33.90% of the total shares amount of NAURA Technology Group Co. Ltd. Beijing Electronic Shareholding Co. Ltd. held 58175076 shares of A
Period shares of BAIC BluePark New Energy Technology Co.Ltd. (Stock Code: 600733) which accounted for 1.36% of the total shares of BAIC BluePark New Energy
Technology Co.Ltd.Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets management
Type of the actual controller: legal person
124BOE Technology Group Co. Ltd. Annual Report 2021
Legal
Name of actual Date of Unified social credit
representative/person Principal activity
controller establishment code
in charge
Operation and management of state-owned assets
within authorization; communications equipment
audio & visual products for broadcasting and
television computer and its supporting equipment
and the applied products electronic raw material
and components home electric appliances and
electronic products electronic surveying
instruments and meters mechanical and electric
equipment; electronic transportation products and
investment in business fields other than electronics
Beijing Electronics
Wang Yan 8 April 1997 91110000633647998H and its management development of real estate
Holdings Co. Ltd.lease and sales of commodity apartments property
management. (The market entity shall
independently choose business items and carry out
business activities according to law. For items
requiring approval according to law the company
must obtain approval from related authorities
before carrying out the business activities. The
company shall not engage in business activities
that are banned and restricted in the national and
municipal industrial policies.)
Beijing Electronic Shareholding Co. Ltd. held 508801304 shares of A share of Electronic City (Stock Code:
600658) which was of 45.49% of the total shares amount of Electronic City; it held 49952842 shares of A
Other listed
share of NAURA Technology Group Co. Ltd. (original Beijing Sevenstar Electronics Co. Ltd. ) (Stock Code:
companies at home
002371) which accounted for 9.50% of the total shares of NAURA Technology Group Co. Ltd. Beijing
or abroad
Electronic Shareholding Co. Ltd. held 178175721 shares of A share of NAURA Technology Group Co. Ltd.controlled by the
through holding the wholly-owned subsidiary Beijing Seven Star Huadian Technology Group Co. Ltd which
actual controller in
covered 33.90% of the total shares amount of NAURA Technology Group Co. Ltd. Beijing Electronic
the Reporting
Shareholding Co. Ltd. held 58175076 shares of A shares of BAIC BluePark New Energy Technology Co.Ltd.Period
(Stock Code: 600733) which accounted for 1.36% of the total shares of BAIC BluePark New Energy
Technology Co.Ltd.Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company:
125BOE Technology Group Co. Ltd. Annual Report 2021
Notes: 1. Beijing Intelligent Kechuang Technology Development Co. Ltd. (Intelligent Kechuang) is used as a platform for the
Company to implement equity incentives for its core technical and managerial personnel who are the 20 nominal shareholders of
Intelligent Kechuang. The ratios of their capital contributions to Intelligent Kechuang do not represent their actual equity percentage.The equities of Intelligent Kechuang are jointly owned by the awardees of the Company’s equity incentive plans. The capital
contribution ratios of the said 20 people are as follows: Wang Dongsheng 20% Jiang Yukun 10% Liang Xinqing 10% Zhao
Caiyong 6.667% Shi Dong 6.667% Chen Yanshun 6.667% Song Ying 6.667% Han Guojian 6.667% Gong Xiaoqing 3.333%
Wang Yanjun 3.333% Wang Jiaheng 3.333% Liu Xiaodong 3.333% Ren Jianchang 1.667% Sun Jiping 1.667% Zhang Peng
1.667% Wang Aizhen 1.667% Mu Chengyuan 1.667% Xu Yan 1.667% Hua Yulun 1.667% and Zhong Huifeng 1.667%.
2. When the Company completed a private offering of shares in 2014 Beijing State-Owned Capital Operation and Management
Center transferred its 70% stake directly held in the Company to Beijing Electronics Holding Co. Ltd. for managing through a
Shares Management Agreement and Beijing Electronics Holding Co. Ltd. obtained the shareholder’s rights other than the disposal
and earnings rights attached to the 70% stake; and Beijing State-Owned Capital Operation and Management Center agreed in a
Voting Rights Exercise Agreement to align itself with Beijing Electronics Holding Co. Ltd. when exercising its voting rights of the
remaining 30% stake directly held by it in the Company.
3. During the non-public issuing of the Company in 2021 Beijing Jing Guorui Soe Reform and Development Fund (L.P.) signed the
Acting-in-Concert Agreement with Beijing Electronics Holdings Co. Ltd.Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.□ Applicable √ Not applicable
126BOE Technology Group Co. Ltd. Annual Report 2021
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the Largest
Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the Company held
by Them
□ Applicable √ Not applicable
5. Other 10% or Greater Corporate Shareholders
√ Applicable □ Not applicable
Legal
Date of
Name of corporate shareholder representative/person in Registered capital Principal activity
establishment
charge
Operation and management of
state-owned capital investment and
Beijing State-owned Capital
30 December investment management; assets
Operation and Management Zhao Jifeng RMB50 billion
2008 management; organize the
Company Limited
reorganization as well as the merger and
acquisition of the enterprise assets.
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder Actual Controller
Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
IV Specific Implementation of Share Repurchase during the Reporting Period
Progress on any share repurchase
√ Applicable □ Not applicable
Number of
shares
repurchased
Number of
Number of Amount of all as % of the
Disclosure time As % of total Term of shares
shares to be repurchased Usage underlying
of plan share capital repurchase repurchased
repurchased shares stocks involved
(share)
in the equity
incentive plan
(if any)
Not exceeding
12 months
350 million Implementatio
Not exceeding since the date
30 August 2021 shares to 500 0.09%-0.13% n of equity 460419000 49.40%
RMB3 billion when the share
million shares incentive plan
repurchase plan
was reviewed
127BOE Technology Group Co. Ltd. Annual Report 2021
and approved
by the Board.Progress on reducing the repurchased shares by means of centralized bidding
□ Applicable √ Not applicable
128BOE Technology Group Co. Ltd. Annual Report 2021
Part VIII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
129BOE Technology Group Co. Ltd. Annual Report 2021
Part IX Bonds
√ Applicable □ Not applicable
I Enterprise Bonds
□ Applicable √ Not applicable
No enterprise bonds in the Reporting Period.II Corporate Bonds
√ Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB
Balance Coupon Trade
Bond name Abbr. Bond code Date of issue Value date Maturity Way of redemption
(RMB’0000) rate place
If the issuer does not execute its right in the
2019 Public Offering of Renewable deferred interest payment corresponding
28 October 29 October 29 October
Corporate Bonds of BOE (for qualified 19BOEY1 112741 8000000000.00 4.00% interests shall be paid for this issue of bonds SZSE
201920192022
investors) (Phase I) yearly and the last installment of interest shall
be paid with the redemption of principal.If the issuer does not execute its right in the
2020 Public Offering of Renewable
deferred interest payment corresponding
Corporate Bonds of BOE (for qualified 27 February 28 February 28 February
20BOEY1 149046 2000000000.00 3.64% interests shall be paid for this issue of bonds SZSE
investors) (Phase I) (epidemic prevention 2020 2020 2023
yearly and the last installment of interest shall
and control bonds)
be paid with the redemption of principal.
130BOE Technology Group Co. Ltd. Annual Report 2021
If the issuer does not execute its right in the
2020 Public Offering of Renewable
deferred interest payment corresponding
Corporate Bonds of BOE (for qualified 18 March 19 March 19 March
20BOEY2 149065 2000000000.00 3.54% interests shall be paid for this issue of bonds SZSE
investors) (Phase II) (epidemic prevention 2020 2020 2023
yearly and the last installment of interest shall
and control bonds)
be paid with the redemption of principal.If the issuer does not execute its right in the
2020 Public Offering of Renewable
deferred interest payment corresponding
Corporate Bonds of BOE (for qualified
20BOEY3 149108 24 April 2020 27 April 2020 27 April 2023 2000000000.00 3.50% interests shall be paid for this issue of bonds SZSE
investors) (Phase III) (epidemic
yearly and the last installment of interest shall
prevention and control bonds)
be paid with the redemption of principal.Appropriate arrangement of the investors (if any) Only for the qualified investors
Applicable trade mechanism centralized bidding trade and negotiated block trade
Risk of delisting (if any) and countermeasures Not
Overdue bonds
□ Applicable √ Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the Investor Protection Clause
√ Applicable □ Not applicable
For the renewable corporate bonds “19BOEY1” “20BOEY1” “20BOEY2” and “20BOEY3” 3 interest-bearing years shall be regarded as a cycle. At the end of each cycle the issuer shall have
the right to conditionally extend the issue of bonds for another cycle (3 years) or choose to fully redeem the due bonds at the end of the cycle. All bonds issued in the Reporting Period entitle the
issuer the right in the deferred interest payment. As of the approval quotation date of the Annual Report these bonds have not yet been executed.
3. Intermediary
Contact
Signature Contact
Bond Intermediary Office address person of
accountant number
intermediary
2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) 2020 Public Offering of China Securities Rm. 2203 North Zhang Zhu 021-68801569
131BOE Technology Group Co. Ltd. Annual Report 2021
Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds) 2020 Co. Ltd. Tower Shanghai Huan Liu Mingqiang
Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control Securities Plaza Jingyuan Han Yong
bonds) 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic 528 Pudong Road Su Xing Liao Ling
prevention and control bonds) South Shanghai Wang Xu
Ting Tianquan
2019 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) 2020 Public Offering of 12/F PICC
Renewable Corporate Bonds of BOE (for qualified investors) (Phase I) (epidemic prevention and control bonds) 2020 China Lianhe Building No.2
Li Jie Sun
Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase II) (epidemic prevention and control Credit Rating Jianwai Street None 010-85679696
Jing
bonds) 2020 Public Offering of Renewable Corporate Bonds of BOE (for qualified investors) (Phase III) (epidemic Co. Ltd. Chaoyang District
prevention and control bonds) Beijing
Indicate by tick mark whether above intermediary changed in the Reporting Period
□ Yes √ No
132BOE Technology Group Co. Ltd. Annual Report 2021
4. List of the Usage of the Raised Funds
Unit: RMB
Whether is
Rectificati consistent
Operation of on of with the
special raised usage using
Unused
Bonds Total amount Amount spent account for funds for plan and other
amount
raised funds violation agreements
(if any) operation stipulated in
(if any) the raising
specification
2019 Public Offering of
Renewable Corporate Bonds of
8000000000.00 8000000000.00 0.00 N/A N/A Yes
BOE (for qualified investors)
(Phase I)
2020 Public Offering of
Renewable Corporate Bonds of
BOE (for qualified investors) 2000000000.00 2000000000.00 0.00 N/A N/A Yes
(Phase I) (epidemic prevention
and control bonds)
2020 Public Offering of
Renewable Corporate Bonds of
BOE (for qualified investors) 2000000000.00 2000000000.00 0.00 N/A N/A Yes
(Phase II) (epidemic prevention
and control bonds)
2020 Public Offering of
Renewable Corporate Bonds of
BOE (for qualified investors) 2000000000.00 2000000000.00 0.00 N/A N/A Yes
(Phase III) (epidemic prevention
and control bonds)
The raised funds were used for project construction
□ Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.□ Applicable √ Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable √ Not applicable
133BOE Technology Group Co. Ltd. Annual Report 2021
6. Execution and Changes of Guarantee Repayment Plan and Other Repayment Guarantee Measures as
well as Influence on Equity of Bond Investors during the Reporting Period
□ Applicable √ Not applicable
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.IV Convertible Corporate Bonds
□ Applicable √ Not applicable
No such cases in the Reporting Period.V Losses of Scope of Consolidated Financial Statements during the Reporting Period
Exceeding 10% of Net Assets up the Period-end of Last Year
□ Applicable √ Not applicable
VI Matured Interest-bearing Debt excluding Bonds up the Period-end
□ Applicable √ Not applicable
VII Whether there was any Violation of Rules and Regulations during the Reporting Period
□ Yes √ No
VIII The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0000
Item 31 December 2021 31 December 2020 Change
Current ratio 1.56 1.23 26.83%
Debt/asset ratio 51.78% 59.13% -7.35%
Quick ratio 1.29 1.06 21.70%
Item 2021 2020 Change
Net profit after deducting
2393754267045796.39%
non-recurring profit or loss
Total debt ratio of EBITDA 50.09% 19.23% 30.86%
Times interest earned 7.63 2.27 236.12%
Times interest earned of cash 10.71 8.07 32.71%
134BOE Technology Group Co. Ltd. Annual Report 2021
EBITDA-to-interest coverage
14.226.69112.56%
(times)
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
135Part X Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Standard unqualified audit opinion
Name of the independent auditor KPMG Huazhen Certified Public Accountants (LLP)
Date of signing this report March 30 2022
Reference number of auditor’s report KPMGHZSZ No. 2204172
Name of the certified public accountants Zhang Huan Chai Jing
AUDITOR’S REPORT毕马威华振审字第2204172号
The Shareholders of BOE Technology Group Co. Ltd.:
Opinion
We have audited the accompanying financial statements of BOE Technology Group Co. Ltd.(“BOE”) which comprise the consolidated and company balance sheets as at 31 December
2021 the consolidated and company income statements the consolidated and company cash
flow statements the consolidated and company statements of changes in shareholders’
equity for the year then ended and notes to the financial statements.In our opinion the accompanying financial statements present fairly in all material respects
the consolidated and company financial position of BOE as at 31 December 2021 and the
consolidated and company financial performance and cash flows of BOE for the year then
ended in accordance with Accounting Standards for Business Enterprises issued by the
Ministry of Finance of the People’s Republic of China.Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified Public
Accountants (“CSAs”). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of BOE in accordance with the China Code of Ethics for Certified Public
Accountants (“the Code”) and we have fulfilled our other ethical responsibilities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
136AUDITOR’S REPORT (continued)
毕马威华振审字第2204172号
Key Audit Matters
Key audit matters are those matters that in our professional judgement were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole and in forming
our opinion thereon and we do not provide a separate opinion on these matters.Revenue recognitionRefer to the accounting policies set out in the notes to the financial statements “III.Significant accounting policies and accounting estimates” 23 and “V. Notes to theconsolidated financial statements” 44.How the matter was addressed in our
The Key Audit Matter
audit
The revenue of BOE and its subsidiaries Our audit procedures to evaluate revenue
(“BOE Group”) is mainly derived from the recognition included the following:
sales of products relating to display device
Evaluate the design and operation
across the domestic and overseas market.effectiveness of key internal controls
The sales contracts/orders signed between related to revenue recognition;
BOE Group and its customers (mainly
Check key sales contracts/orders on a
electronic equipment manufacturers) contain
sampling basis to identify relevant trading
various trading terms. BOE Group judges
terms and evaluate whether the
the transfer timing of control according to the
accounting policies for revenue
trading terms and recognises revenue
recognition of BOE Group meet the
accordingly. Depending on the trading
requirements of the Enterprise
terms the income is usually recognized
Accounting Standards;
when the goods are delivered and received
or when they are received by the carrier. On a sampling basis and according to
different trading terms reconcile the
We identified the recognition of BOE Group’s
revenue recorded in the current year to
revenue as a key audit matter because
relevant supporting files such as relevant
revenue as one of BOE Group’s key
orders shipping orders sales invoices
performance indicators involves various
customs declarations delivery receipts
trading terms and there is an inherent risk
etc. to evaluate whether revenue is
that revenue may not be recognised in a
recognised in accordance with the
correct period.accounting policy of BOE Group;
On a sampling basis and according to
different trading terms cross check the
revenue recorded before and after the
balance sheet date against relevant
supporting files such as relevant orders
shipping orders sales invoices customs
declarations delivery receipts etc. to
evaluate whether revenue is recorded in
the appropriate period;
137AUDITOR’S REPORT (continued)
毕马威华振审字第2204172号
Key Audit Matters (continued)
Revenue recognition (continued)
Refer to Note III. 23 of the accounting policy to the financial statements and Note V. 44 to to
the consolidated financial statements.How the matter was addressed in our
The Key Audit Matter
audit
Select a sample based on the
characteristics and nature of customer's
transaction and perform certification on
the balance of accounts receivable as at
the balance sheet date and the sales
transaction amount during the current
year;
On a sampling basis check the
written-back of revenue after the balance
sheet date (including sales discounts and
sales returns etc.) with relevant
supporting documents to assess whether
revenue is recorded in the appropriate
period;
Select revenue accounting entries that
meet specific risk criteria and check
related supporting documents.
138AUDITOR’S REPORT (continued)
毕马威华振审字第2204172号
Key Audit Matters (continued)
Book value of fixed assets and construction in progressRefer to the accounting policies set out in the notes to the financial statements “III.Significant accounting policies and accounting estimates” 13 14 and “V. Notes to theconsolidated financial statements” 15 16.How the matter was addressed in our
The Key Audit Matter audit
BOE Group continued to invest in building Our audit procedures to assess the book
production lines of display device to expand value of fixed assets and construction in
its production capacity. As at 31 December progress included the following:
2021 the book value of fixed assets and
Evaluate the design and operation
construction in progress amounted to RMB
effectiveness of key internal controls
258.816 billion.
(including estimating useful life and
The judgement made by the management on residual values etc.) related to the
the following aspects will affect the book integrity existence and accuracy of fixed
value of fixed assets and construction in assets and construction in progress;
progress including:
Check the physical status of construction
Determine which type of expenditures are in progress and fixed assets on a
qualified for capitalisation; sampling basis;
Determine the timing for transferring Check capital expenditures with relevant
construction in progress to fixed assets supporting documents (including
and making depreciation; purchase agreements/ orders
acceptance orders engineering
Estimate the useful life and residual value
construction contracts project progress
of corresponding fixed assets.reports etc.) on a sampling basis;
We identified the book value of fixed assets Assess whether the capitalised
and construction in progress of BOE Group
commissioning expenses for the current
as a key audit matter because the valuation
year are in compliance with relevant
of the book value of fixed assets and
capitalization conditions; check the
construction in progress involves significant
commissioning expenses with relevant
judgement from the management and it is of
supporting documents on a sampling
importance to the consolidated financial
basis;
statements.On the basis of sampling assess the
timing for transferring construction in
progress to fixed assets through the
inspection of commissioning situation and
the documents for transferring
construction in progress to fixed assets;
Based on our understanding of industry
practices and actual operating conditions
of assets we evaluate the management's
estimation of the useful life and residual
value of fixed assets.
139AUDITOR’S REPORT (continued)
毕马威华振审字第2204172号
Key Audit Matters (continued)
Impairment of fixed assets and intangible assetsRefer to the accounting policies set out in the notes to the financial statements “III.Significant accounting policies and accounting estimates” 19 and “V. Notes to theconsolidated financial statements” 15 17.How the matter was addressed in our
The Key Audit Matter audit
BOE Group principally generates revenue Our audit procedures to evaluate impairment
from the production and sale of display of fixed assets and intangible assets
device. Due to the fluctuation of included the following:
supply-demand relationship of display
Evaluate management’s identification of
device and the influence of technology
asset groups assessment of impairment
upgrading the profit level of different
indications and assess the design and
production lines suffer dramatic fluctuation.operation effectiveness of key internal
As at 31 December 2021 the book value of
controls for impairment tests;
fixed assets and intangible assets amounted
to RMB 237.905 billion the judgement on Based on our understanding of BOE
impairment indications and impairment test Group’s businesses and relevant
are material to BOE Group’s financial accounting standards evaluate
statements. management’s classification basis of
asset groups and judgement basis of
The management classifies asset groups
impairment indications;
based on the smallest identifiable group of
assets that generates cash inflows that are For asset groups with impairment
independent and continuously monitors the indications based on our understanding
trend of market of supply and demand as of the industry compare the key
well as the technology evolution; assumptions in the calculation of
comprehensively judges impairment recoverable amounts used by
indications of each asset group in management with external available data
accordance with market trends operating and historical analysis including future
conditions of production lines and selling prices sales volume and discount
technological advanced performance and rate used by management evaluate the
performs impairment test on asset groups if key assumptions and estimations used by
any impairment indication exists. the management;
For asset groups with impairment For asset groups with significant
indications the management assesses impairment risk assess the competence
whether the book value of fixed assets and professional quality and objectivity of
intangible assets as at 31 December 2020 experts hired by the management; and
were impaired by calculating the present adopt our own valuation experts’ work
value of expected future cash flows. assess if discount rates used for
Calculating the present value of expected estimating the present value of future
future cash flows requires management to cash flows by management are within the
make significant judgements especially for range used by other companies in the
the estimation of future selling prices sales same industry;
volume and applicable discount rate.
140AUDITOR’S REPORT (continued)
毕马威华振审字第2204172号
Key Audit Matters (continued)
Impairment of fixed assets and intangible assets (continued)Refer to the accounting policies set out in the notes to the financial statements “III.Significant accounting policies and accounting estimates” 19 and “V. Notes to theconsolidated financial statements” 15 17.How the matter was addressed in our
The Key Audit Matter audit
We identified the impairment of fixed assets Our audit procedures to evaluate impairment
and intangible assets as a key audit matter of fixed assets and intangible assets
because the book value of fixed assets and included the following:
intangible assets is significant to the financial
statements; management’s significant Compare estimations used for calculating
judgements and estimations are involved in the present value of expected future cash
assessing the classification basis of asset flows in the previous year by the
groups existence of impairment indications management with the actual situation in
and impairment test of asset groups with this year to consider the historical
impairment indications which may exist accuracy of management’s forecast
errors or potential management bias. results;
Perform sensitivity analysis on key
assumptions including future selling
prices sales volume and discount rates
used in the calculation of recoverable
amount by the management; assess how
changes in key assumptions (individually
or collectively) will lead to different results
and assess whether there are indications
of management bias in the selection of
key assumptions;
Consider whether the disclosure of
impairment of fixed assets and intangible
assets in the financial statements is
consistent with relevant accounting
policy.
141AUDITOR’S REPORT (continued)
毕马威华振审字第2204172号
Other Information
BOE’s management is responsible for the other information. The other information comprises
all the information included in 2021 annual report of BOE other than the financial statements
and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated.If based on the work we have performed we conclude that there is a material misstatement
of this other information we are required to report that fact. We have nothing to report in this
regard.Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with the Accounting Standards for Business Enterprises and for
the design implementation and maintenance of such internal control necessary to enable that
the financial statements are free from material misstatement whether due to fraud or error.In preparing the financial statements management is responsible for assessing BOE’s ability
to continue as a going concern disclosing as applicable matters related to going concern
and using the going concern basis of accounting unless management either intends to
liquidate BOE or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing BOE’s financial reporting
process.
142AUDITOR’S REPORT (continued)
毕马威华振审字第2204172号
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement whether due to fraud or error and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with CSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if individually or in the aggregate they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with CSAs we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
* Identify and assess the risks of material misstatement of the financial statements whether
due to fraud or error design and perform audit procedures responsive to those risks and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error as fraud may involve collusion forgery intentional omissions
misrepresentations or the override of internal control.* Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.* Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.* Conclude on the appropriateness of management’s use of the going concern basis of
accounting and based on the audit evidence obtained whether a material uncertainty
exists related to events or conditions that may cast significant doubt on BOE’s ability to
continue as a going concern. If we conclude that a material uncertainty exists we are
required to draw attention in our auditor’s report to the related disclosures in the financial
statements or if such disclosures are inadequate to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However
future events or conditions may cause BOE to cease to continue as a going concern.* Evaluate the overall presentation structure and content of the financial statements
including the disclosures and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
143AUDITOR’S REPORT (continued)
毕马威华振审字第2204172号
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
* Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within BOE to express an opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit. We
remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the
planned scope and timing of the audit and significant audit findings including any significant
deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence
and where applicable related safeguards.From the matters communicated with those charged with governance we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when in
extremely rare circumstances we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.KPMG Huazhen LLP Certified Public Accountants
Registered in the People’s Republic of
China
Zhang Huan (Engagement Partner)
Beijing China Chai Jing
30 March 2022
144BOE Technology Group Co. Ltd.
Consolidated balance sheet
as at 31 December 2021
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
Assets ? ? ? ?
?????
Current assets ? ? ? ?
Cash at bank and on hand V.1 80986835088 ? 73694296095
Financial assets held for trading V.2 10028172853 ? 4367201833
Bills receivable V.3 217734298 ? 215994373
Accounts receivable V.4 35503414820 ? 22969140355
Prepayments V.5 1112880007 ? 1119595984
Other receivables V.6 1922828378 ? 658114833
Inventories V.7 27724806939 ? 17875454490
Contract assets V.8 75698324 ? 49897395
Assets held for sale V.9? - ? 186892645
Non-current assets due within one
year ? 7700735 ? -
Other current assets V.10 3578919710 ? 7848869252
?????
Total current assets ? 161158991152 ? 128985457255
???
The notes on pages 30 to 193 form part of these financial statements.Page 1BOE Technology Group Co. Ltd.Consolidated balance sheet
as at 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
Assets (continued) ? ? ? ?
?????
Non-current assets ? ? ? ?
Long-term receivables 29918542 ? -
Long-term equity investments V.11 6040948317 ? 3693170224
Investments in other equity
instruments V.12 519088146 ? 533645423
Other non-current financial assets V.13 606895447 ? -
Investment properties V.14 1158365401 ? 1196168511
Fixed assets V.15 226695489704 ? 224866586069
Construction in progress V.16 32120320507 ? 42575849952
Right-of-use assets V.62 753164237 ? -
Intangible assets V.17 11209498406 ? 11875926448
Goodwill V.18 1130006987 ? 1400357242
Long-term deferred expenses V.19 636530502 ? 299634100
Deferred tax assets V.20 190335524 ? 205041088
Other non-current assets V.21 7477427483 ? 8624970019
?????
Total non-current assets ? 288567989203 ? 295271349076
?????
?????
Total assets ? 449726980355 ? 424256806331
??
The notes on pages 30 to 193 form part of these financial statements.Page 2BOE Technology Group Co. Ltd.Consolidated balance sheet
as at 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
Liabilities and shareholders’ equity ? ? ? ?
?????
Current liabilities ? ? ? ?
Short-term loans V.22 2072057332 ? 8599569471
Bills payable V.23 827958031 ? 1231533895
Accounts payable V.24 32455830694 ? 27164171682
Advance payments received V.25 146140084 ? 124040749
Contract liabilities V.26 3765081554 ? 3440720535
Employee benefits payable V.27 5133155237 ? 3758623797
Taxes payable V.28 2200249305 ? 1077686869
Other payables V.29 23835374942 ? 32867709024
Non-current liabilities due within one
year V.30 28874958714 ? 24500550121
Other current liabilities V.31 4051532509 ? 2194716852
?????
Total current liabilities ? 103362338402 ? 104959322995
???
The notes on pages 30 to 193 form part of these financial statements.Page 3BOE Technology Group Co. Ltd.Consolidated balance sheet
as at 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
Liabilities and shareholders’ equity
(continued) ? ? ? ?
?????
Non-current liabilities ? ? ? ?
Long-term loans V.32 116078666587 ? 132452767135
Debentures payable V.33 359586437 ? 398971739
Lease liabilities V.62 669130264 ? -
Long-term payables V.34 906592838 ? 2114175683
Deferred income V.35 6416089611 ? 4246231468
Deferred tax liabilities V.20 1525622873 ? 1427601154
Other non-current liabilities V.36 3535809876 ? 5260001443
?????
Total non-current liabilities ? 129491498486 ? 145899748622
?????
?????
Total liabilities ? 232853836888 ? 250859071617
???????
The notes on pages 30 to 193 form part of these financial statements.Page 4BOE Technology Group Co. Ltd.Consolidated balance sheet
as at 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
Liabilities and shareholders’ equity
(continued) ? ? ? ?
?????
Shareholders’ equity ? ? ? ?
Share capital V.37 38445746482 ? 34798398763
Other equity instruments V.38 14146997427 ? 14146997427
Capital reserve V.39 53804309393 ? 37435655934
Less: Treasury shares V.40 3415768207 ? 1036298508
Other comprehensive income V.41 113551147 ? (22198072)
Surplus reserve V.42 2889590205 ? 2444416669
Retained earnings V.43 36941121452 ? 15509794622
?????
Total equity attributable to
shareholders of the Company ? 142925547899 ? 103276766835
?????
Non-controlling interests ? 73947595568 ? 70120967879
?????
Total shareholders’ equity ? 216873143467 ? 173397734714
?????
?????
Total liabilities and shareholders’ equity ? 449726980355 ? 424256806331
???
These financial statements were approved by the Board of Directors of the Company on 30
March 2022.Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 193 form part of these financial statements.Page 5BOE Technology Group Co. Ltd.Company balance sheet
as at 31 December 2021
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
Assets ? ? ? ?
?????
Current assets ? ? ? ?
Cash at bank and on hand XVI.1 5609364822 ? 4375497010
Accounts receivable XVI.2 4828855275 ? 3974212308
Prepayments ? 12669107 ? 12185651
Other receivables XVI.3 15449830610 ? 16345474583
Inventories ? 15853238 ? 18622283
Other current assets XVI.4 167179023 ? 177761718
?????
Total current assets ? 26083752075 ? 24903753553
??
?????
Non-current assets ? ? ? ?
Long-term equity investments XVI.5 210945821235 ? 182135057208
Investments in other equity
instruments ? 63458868 ? 81192872
Investment properties ? 261526129 ? 271212241
Fixed assets ? 961944766 ? 1009178229
Right-of-use assets XVI.25 170173793 ? -
Construction in progress ? 551352449 ? 418343961
Intangible assets XVI.6 1243806868 ? 1380069827
Long-term deferred expenses ? 441560097 ? 105439681
Other non-current assets ? 1744751520 ? 2611437988
?????
Total non-current assets ? 216384395725 ? 188011932007
??????????
Total assets ? 242468147800 ? 212915685560
The notes on pages 30 to 193 form part of these financial statements.Page 6BOE Technology Group Co. Ltd.Company balance sheet
as at 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
Liabilities and shareholders’ equity ? ? ? ?
?????
Current liabilities ? ? ? ?
Accounts payable ? 61519244 ? 272241469
Advance payments received XVI.8 20038334 ? 18286458
Employee benefits payable XVI.9 640728285 ? 516060153
Taxes payable ? 244586957 ? 87179892
Other payables XVI.10 2880884768 ? 6541918681
Non-current liabilities due within one
year ? 10909326195 ? 7847210073
Other current liabilities ? 29190783 ? 1977977
?????
Total current liabilities ? 14786274566 ? 15284874703
?????
Non-current liabilities ? ? ? ?
Long-term loans XVI.11 32208500000 ? 38360714121
Lease liabilities XVI.25 129343868 ? -
Deferred income XVI.12 2906951707 ? 3633342446
Deferred tax liabilities XVI.7 225816218 ? 385697604
Other non-current liabilities ? 74506661805 ? 56156661805
?????
Total non-current liabilities ? 109977273598 ? 98536415976
?????
?????
Total liabilities ? 124763548164 ? 113821290679
???
The notes on pages 30 to 193 form part of these financial statements.Page 7BOE Technology Group Co. Ltd.Company balance sheet
as at 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
Liabilities and shareholders’ equity
(continued) ? ? ? ?
?????
Shareholders’ equity ? ? ? ?
Share capital V.37 38445746482 ? 34798398763
Other equity instruments V.38 14146997427 ? 14146997427
Capital reserve XVI.13 53598033152 ? 36696079366
Less: Treasury shares V.40 3415768207 ? 1036298508
Other comprehensive income XVI.14 89024650 ? 90713133
Surplus reserve V.42 2889590205 ? 2444416669
Retained earnings XVI.15 11950975927 ? 11954088031
?????
Total shareholders’ equity ? 117704599636 ? 99094394881
?????
?????
Total liabilities and shareholders’ equity ? 242468147800 ? 212915685560
??
These financial statements were approved by the Board of Directors of the Company on 30
March 2022.Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 193 form part of these financial statements.Page 8BOE Technology Group Co. Ltd.Consolidated income statement
for the year ended 31 December 2021
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
?????
I. Operation income V.44 219309799505 ? 135552569729
?????
II. Less: Operating costs V.44 155985225295 ? 110409882204
Taxes and surcharges V.45 1424205826 ? 1078900085
Selling and distribution expenses V.46 5484589978 ? 3138283646
General and administrative
expenses V.47 6693373589 ? 4600271642
Research and development
expenses V.48 10668844187 ? 7638602711
Financial expenses V.49 3682379202 ? 2650153972
Including: Interest expenses ? 4866778333 ? 3497697709
Interest income ? 1050431325 ? 873376712
Add: Other income V.50 2092765728 ? 2337705817
Investment income V.51 1347489345 ? 897891109
Including: Income from
investment in
associates and joint
ventures ? 1245036895 ? 444407986
Gains from changes in fair value V.52 84966963 ? 31936339
Credit (losses) /gains V.53 (28409869) ? 1827519
Impairment loss V.54 (4478251852) ? (3280425399)
Gains from asset disposals V.55 153505791 ? 19061846
?????
III. Operating profit ? 34543247534 ? 6044472700
?????
Add: Non-operating income V.56 131607946 ? 120503628
Less: Non-operating expenses V.56 55215102 ? 72139666
???
The notes on pages 30 to 193 form part of these financial statements.Page 9BOE Technology Group Co. Ltd.Consolidated income statement
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
?????
IV. Profit before income tax ? 34619640378 ? 6092836662
?????
Less: Income tax expenses V.57 4187971404 ? 1564566246
????
V. Net profit for the year ? 30431668974 ? 4528270416
?????
Shareholders of the Company ? 25830935500 ? 5035627952
Non-controlling interests ? 4600733474 ? (507357536)
??
The notes on pages 30 to 193 form part of these financial statements.Page 10BOE Technology Group Co. Ltd.Consolidated income statement
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
?????
VI. Other comprehensive income net of tax V.41 155717231 ? 165945656
Other comprehensive income (net of
tax) attributable to owners of the
Company ? 190988004 ? 177438725
(1) Items that will not be reclassified
to profit or loss ? ? ? ?
1. Other comprehensive income
recognised under equity
method ? 68869497 ? 136381254
2. Changes in fair value of
investments in other equity
instruments ? (40618274) ? (19975534)
(2) Items that may be reclassified to
profit or loss ? ? ? ?
1. Other comprehensive income
recognised under equity
method ? (296553) ? 11835
2. Translation differences arising
from translation of foreign
currency financial
statements ? 163033334 ? 61021170
Other comprehensive income (net of
tax) attributable to non-controlling
interests ? (35270773) ? (11493069)
????????
The notes on pages 30 to 193 form part of these financial statements.Page 11BOE Technology Group Co. Ltd.Consolidated income statement
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
?????
VII. Total comprehensive income for the
year ? 30587386205 ? 4694216072
?????
Attributable to shareholders of the
Company ? 26021923504 ? 5213066677
Attributable to non-controlling interests ? 4565462701 ? (518850605)
?????
VIII. Earnings per share: ? ? ? ?
(1) Basic earnings per share V.58 0.71 ? 0.13
(2) Diluted earnings per share V.58 0.71 ? 0.13
??
These financial statements were approved by the Board of Directors of the Company on 30
March 2022.Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 193 form part of these financial statements.Page 12BOE Technology Group Co. Ltd.Company income statement
for the year ended 31 December 2021
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
?????
I. Operation income XVI.16 5716998034 ? 4541676195
?????
II. Less: Operating costs ? 16459454 ? 22304841
Taxes and surcharges XVI.17 36630410 ? 40889596
General and administrative
expenses ? 1577032602 ? 858750449
Research and development
expenses XVI.18 2330865497 ? 2102895125
Financial expenses XVI.19 798736264 ? 916538545
Including: Interest expenses ? 892768026 ? 970259855
Interest income ? 93003346 ? 37793976
Add: Other income XVI.20 948922174 ? 970989167
Investment income XVI.21 2755668691 ? 2429685102
Including: Income from
investment in associates and
joint ventures ? 864640400 ? 416901621
Credit losses ? (5247340) ? (5376889)
Losses from asset disposals ? (773327) ? -
?????
III. Operating profit ? 4655844005 ? 3995595019
?????
Add: Non-operating income ? 7424220 ? 6879087
Less: Non-operating expenses ? 5915655 ? 11908850
?????
IV. Profit before income tax ? 4657352570 ? 3990565256
?????
Less: Income tax expenses XVI.22 260856004 ? 251373672
?????
V. Net profit for the year ? 4396496566 ? 3739191584
???
The notes on pages 30 to 193 form part of these financial statements.Page 13BOE Technology Group Co. Ltd.Company income statement
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
?????
VI. Other comprehensive income net of tax XVI.14 53550302 ? 136131965
(1) Items that will not be reclassified to
profit or loss ? ? ? ?
1. Other comprehensive income
recognised under equity
method ? 68869497 ? 136381254
2. Changes in fair value of
investments in other equity
instruments ? (15073903) ? (261124)
(2) Items that may be reclassified to
profit or loss ? (245292) ? 11835
?????
?????
VII. Total comprehensive income for the
year ? 4450046868 ? 3875323549
???
These financial statements were approved by the Board of Directors of the Company on 30
March 2022.Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 193 form part of these financial statements.Page 14BOE Technology Group Co. Ltd.Consolidated cash flow statement
for the year ended 31 December 2021
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
I. Cash flows from operating activities: ? ? ? ?
Proceeds from sale of goods and
rendering of services ? 219962740822 ? 152737944370
Refund of taxes ? 13173129922 ? 11677125705
Proceeds from other operating
activities ? 5925158408 ? 5178686102
?????
Sub-total of cash inflows ? 239061029152 ? 169593756177
?????
Payment for goods and services ? (145205421170) ? (115414695545)
Payment to and for employees ? (17896262253) ? (10375043429)
Payment of various taxes ? (5149971194) ? (2493092709)
Payment for other operating
activities ? (8538818211) ? (2059151036)
?????
Sub-total of cash outflows ? (176790472828) ? (130341982719)
?????
?????
Net cash flows from operating
activities V.59(1) 62270556324 ? 39251773458
??
The notes on pages 30 to 193 form part of these financial statements.Page 15BOE Technology Group Co. Ltd.Consolidated cash flow statement
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
II. Cash flows from investing activities: ? ? ? ?
Proceeds from disposal of
investments ? 33071343623 ? 23039182987
Investment returns received ? 180030588 ? 79109825
Net proceeds from disposal of fixed
assets intangible assets and
other long-term assets ? 69111303 ? 177874045
Net amount received from
subsidiaries - ? 954155710
Net proceeds from disposal of
subsidiaries - ? 336086996
Proceeds from other investing
activities ? 3438995631 ? 945857001
?????
Sub-total of cash inflows ? 36759481145 ? 25532266564
?????
Payment for acquisition of fixed
assets intangible assets and
other long-term assets ? (35669946105) ? (44215334543)
Payment for acquisition of
investments ? (41638460294) ? (20725326161)
Net cash paid to acquire
subsidiaries (2815535) ? (1895124119)
Net payment for disposal of
subsidiaries (160887997) ? -
Payment for other investing
activities ? - ? (2103448590)
?????
Sub-total of cash outflows ? (77472109931) ? (68939233413)
?????
?????
Net cash flows from investing
activities ? (40712628786) ? (43406966849)
??
The notes on pages 30 to 193 form part of these financial statements.Page 16BOE Technology Group Co. Ltd.Consolidated cash flow statement
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
?????
III. Cash flows from financing activities: ? ? ? ?
Proceeds from investors ? 31519607755 ? 10377793629
Including: Proceeds from
non-controlling
shareholders of
subsidiaries ? 11187003325 ? 10377793629
Proceeds from issuance of debentures ? - ? 5966660000
Proceeds from borrowings ? 31028727811 ? 50709738711
Net amount of monetary movements
for pledging loans ? 1106689881 ? 2927370511
Proceeds from other financing
activities ? - ? 920016046
?????
Sub-total of cash inflows ? 63655025447 ? 70901578897
??
Page 17The notes on pages 30 to 193 form part of these financial statements.Page 18BOE Technology Group Co. Ltd.Consolidated cash flow statement
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
III. Cash flows from financing activities
(continued): ? ? ? ?
Repayments of borrowings ? (48435579182) ? (38547043449)
Payment for dividends or interest ? (10261666002) ? (6520054957)
Including: Profits paid to
non-controlling
shareholders of
subsidiaries ? (34862550) ? (88810446)
Payment for other financing activities ? (17139649816) ? (2016750534)
?????
Sub-total of cash outflows ? (75836895000) ? (47083848940)
?????
?????
Net cash flows from financing
activities ? (12181869553) ? 23817729957
?????
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents ? (817308273) ? (1868121768)
?????
?????
V. Net increase in cash and cash
equivalents V.59(1) 8558749712 ? 17794414798
?????
Add: Cash and cash equivalents at
the beginning of the year ? 68064736371 ? 50270321573
?????
VI. Cash and cash equivalents at the end
of the year V.59(2) 76623486083 ? 68064736371
??
These financial statements were approved by the Board of Directors of the Company on 30
March 2022.Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 193 form part of these financial statements.Page 19BOE Technology Group Co. Ltd.Company cash flow statement
for the year ended 31 December 2021
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
I. Cash flows from operating activities: ? ? ? ?
Proceeds from sale of goods and
rendering of services ? 5868891208 ? 3125955887
Proceeds from other operating
activities ? 406266493 ? 77211104
?????
Sub-total of cash inflows ? 6275157701 ? 3203166991
?????
Payment for goods and services ? (1038043873) ? (952364398)
Payment to and for employees ? (1532937459) ? (977064794)
Payment of various taxes ? (495289004) ? (513631723)
Payment for other operating
activities ? (2504787813) ? (644659863)
?????
Sub-total of cash outflows ? (5571058149) ? (3087720778)
?????
?????
Net cash flows from operating
activities XVI.23(1) 704099552 ? 115446213
?????
II. Cash flows from investing activities: ? ? ? ?
Proceeds from disposal of
investments ? 890504898 ? 931412417
Proceeds from disposal of
subsidiaries ? 230142095 ? -?
Investment returns received ? 2129623919 ? 1208468425
Net proceeds from disposal of
fixed assets ? 13445008 ? 303987
Proceeds from other investing
activities ? 2075919565 ? 470877944
?????
Sub-total of cash inflows ? 5339635485 ? 2611062773
???
The notes on pages 30 to 193 form part of these financial statements.Page 20BOE Technology Group Co. Ltd.Company cash flow statement
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
II. Cash flows from investing activities
(continued): ? ? ? ?
Payment for acquisition of fixed
assets intangible assets and other
long-term assets ? (715641262) ? (412494447)
Payment for acquisition of investments ? (30498556648) ? (20477410853)
Payment for other investing activities ? (825000000) ? (12405000000)
?????
Sub-total of cash outflows ? (32039197910) ? (33294905300)
???
??
?????
Net cash flows from investing activities ? (26699562425) ? (30683842527)
?????
III. Cash flows from financing activities: ? ? ? ?
Proceeds from issuance of debentures ? - ? 5966660000
Proceeds from investors ? 20332604430 ? -?
Proceeds from borrowings ? 14303000000 ? 21867000000
Proceeds from other financing
activities ? 20888483038 ? 23967730377
?????
Sub-total of cash inflows ? 55524087468 ? 51801390377
?????
Repayments of borrowings ? (17355376312) ? (15767047454)
Payment for dividends and interest ? (5524312554) ? (2254787893)
Payment for other financing activities ? (5389705939) ? (2398651425)
?????
Sub-total of cash outflows ? (28269394805) ? (20420486772)
???
??
?????
Net cash flows from financing activities ? 27254692663 ? 31380903605
???
The notes on pages 30 to 193 form part of these financial statements.Page 21BOE Technology Group Co. Ltd.Company cash flow statement
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? Note 2021 ? 2020
?????
IV. Effect of foreign exchange rate changes on
cash and cash equivalents ? (19357657) ? (133212123)
?????
?????
V. Net (Decrease)/Increase in cash and cash
equivalents XVI.23(1) 1239872133 ? 679295168
?????
Add: Cash and cash equivalents at the
beginning of the year ? 4360065216 ? 3680770048
?????
VI. Cash and cash equivalents at the end of
the year XVI.23(2) 5599937349 ? 4360065216
???
These financial statements were approved by the Board of Directors of the Company on 30
March 2022.Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 193 form part of these financial statements.Page 22BOE Technology Group Co. Ltd.Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2021
(Expressed in Renminbi Yuan)
? ? Equity attributable to shareholders of the Company ? ? ? ?
Less: Other
Other equity Capital Treasury comprehensiv Surplus Retained Non-controlli
? Note Share capital ? instruments ? reserve ? shares ? e income ? reserve ? earnings ? Sub-total ? ng interests ? Total
?????????????????????
I. Balance at the beginning of the year ? 34798398763 ? 14146997427 ? 37435655934 ? 1036298508 ? (22198072) ? 2444416669 ? 15509794622 ? 103276766835 ? 70120967879 ? 173397734714
II. Changes in equity during the year ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
1. Total comprehensive income ? - ? - ? - ? - ? 190988004 ? - ? 25830935500 ? 26021923504 ? 4565462701 ? 30587386205
2. Shareholders’ contributions of capital ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Contribution by ordinary shareholders V.37 3650377019 ? - ? 16219134815 ? - ? - ? - ? - ? 19869511834 ? - ? 19869511834
(2) Contribution by non-controlling interests ? - ? - ? - ? - ? - ? - ? - ? - ? 11187003325 ? 11187003325
(3) Decrease of capital by non-controlling
interests ? - ? - ? 322947 ? - ? - ? - ? - ? 322947 ? (8482947) ? (8160000)
(4) Repurchase of treasury shares V.40 - ? - ? - ? 2428003419 ? - ? - ? - ? (2428003419) ? - ? (2428003419)
(5) Cancellation of treasury shares V. 37/39/40 (3029300) ? - ? (14270384) ? (17299684) ? - ? - ? - ? - ? - ? -
(6) Equity-settled share-based payments XI - ? - ? 598701862 ? (31234036) ? - ? - ? - ? 629935898 ? 41990775 ? 671926673
3. Appropriation of profits ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Appropriation for surplus reserve V.42 - ? - ? - ? - ? - ? 439649657 ? (439649657) ? - ? - ? -
(2) Accrued interest on holders of other
equity instruments V.38 - ? 533600000 ? - ? - ? - ? - ? (533600000) ? - ? - ? -
(3) Payment for interest on holders of other
equity instruments V.38 - ? (533600000) ? - ? - ? - ? - ? - ? (533600000) ? - ? (533600000)
(4) Distributions to shareholders V.43 - ? - ? - ? - ? - ? - ? (3476073919) ? (3476073919) ? (34862550) ? (3510936469)
??
The notes on pages 30 to 193 form part of these financial statements.Page 23BOE Technology Group Co. Ltd.Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? ? Equity attributable to shareholders of the Company ? ? ? ?
Less: Other
Other equity Treasury comprehensiv Surplus Retained Non-controlling
? Note Share capital ? instruments ? Capital reserve ? shares ? e income ? reserve ? earnings ? Sub-total ? interests ? Total
4. Transfers within equity ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Transfer of other
comprehensive
income to retained
earnings V. 41/43 - ? - ? - ? - ? (55238785) ? 5523879 ? 49714906 ? - ? - ? -
5. Others ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Other movements
in equity of
associates V. 11 - ? - ? 51030550 ? - ? - ? - ? - ? 51030550 ? - ? 51030550
(2) Acquisition of
non-controlling
interests V.39 - ? - ? (772223591) ? - ? - ? - ? - ? (772223591) ? (12066861731) ? (12839085322)
(3) Disposal of
equities in
subsidiaries V.39 - ? - ? 288039797 ? - ? - ? - ? - ? 288039797 ? 146828923 ? 434868720
(4) Others V.39 - ? - ? (2082537) ? - ? - ? - ? - ? (2082537) ? (4450807) ? (6533344)
?????????????????????
III. Balance at the end of the
year ? 38445746482 ? 14146997427 ? 53804309393 ? 3415768207 ? 113551147 ? 2889590205 ? 36941121452 ? 142925547899 ? 73947595568 ? 216873143467
??
These financial statements were approved by the Board of Directors of the Company on 30 March 2022.Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 193 form part of these financial statements.Page 24BOE Technology Group Co. Ltd.Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2020
(Expressed in Renminbi Yuan)
? ? Equity attributable to shareholders of the Company ? ? ? ?
Other
Other equity Less: Treasury comprehensiv Retained Non-controlling
? Note Share capital ? instruments ? Capital reserve ? shares ? e income ? Surplus reserve ? earnings ? Sub-total ? interests ? Total
?????????????????????
I. Balance at the beginning of the year ? 34798398763 ? 8013156853 ? 38353242364 ? - ? (4566639) ? 2050045823 ? 11847851891 ? 95058129055 ? 45999567919 ? 141057696974
II. Changes in equity during the year ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
1. Total comprehensive income ? - ? - ? - ? - ? 177438725 ? - ? 5035627952 ? 5213066677 ? (518850605) ? 4694216072
2. Shareholders’ contributions of
capital ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Contribution by non-controlling
interests ? - ? - ? - ? - ? - ? - ? - ? - ? 10663566927 ? 10663566927
(2) Contribution by holders of
other equity instruments V.38 - ? 5967915094 ? - ? - ? - ? - ? - ? 5967915094 ? - ? 5967915094
(3) Repurchase of treasury
shares V.40 - ? - ? - ? 1998774694 ? - ? - ? - ? (1998774694) ? - ? (1998774694)
(4) Business combinations
involving entities not under
common control ? - ? - ? - ? - ? - ? - ? - ? - ? 14293193400 ? 14293193400
(5) Changes in shareholding ratio
of subsidiaries V.39 - ? - ? 76020559 ? - ? - ? - ? - ? 76020559 ? (76020559) ? -
(6) Equity-settled share-based
payments XI - ? - ? (946466251) ? (962476186) ? - ? - ? - ? 16009935 ? 1201528 ? 17211463
3. Appropriation of profits ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Appropriation for surplus
reserve V.42 - ? - ? - ? - ? - ? 373919158 ? (373919158) ? - ? - ? -
(2) Accrued interest on holders of
other equity instruments V.38 - ? 485925480 ? - ? - ? - ? - ? (485925480) ? - ? - ? -
(3) Payment for interest on
holders of other equity
instruments V.38 - ? (320000000) ? - ? - ? - ? - ? - ? (320000000) ? - ? (320000000)
(4) Distributions to shareholders V.43 - ? - ? - ? - ? - ? - ? (695967975) ? (695967975) ? (88810446) ? (784778421)
???
The notes on pages 30 to 193 form part of these financial statements.Page 25BOE Technology Group Co. Ltd.Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
? ? Equity attributable to shareholders of the Company ? ? ? ?
Other
Other equity Less: Treasury comprehensive Retained Non-controlling
? Note Share capital ? instruments ? Capital reserve ? shares ? income ? Surplus reserve ? earnings ? Sub-total ? interests ? Total
4. Transfers within equity ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Transfer of other comprehensive
income to retained earnings V. 41/43 - ? - ? - ? - ? (195070158) ? 23905741 ? 171164417 ? - ? - ? -
5. Others ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Disposal of subsidiaries to equity
method accounting ? - ? - ? (46470087) ? - ? - ? (3454053) ? 3454053 ? (46470087) ? (146654227) ? (193124314)
(2) Other movements in equity of
associates V. 11 - ? - ? 7011400 ? - ? - ? - ? - ? 7011400 ? - ? 7011400
(3) Others ? - ? - ? (7682051) ? - ? - ? - ? 7508922 ? (173129) ? (6226058) ? (6399187)
?????????????????????
III. Balance at the end of the year ? 34798398763 ? 14146997427 ? 37435655934 ? 1036298508 ? (22198072) ? 2444416669 ? 15509794622 ? 103276766835 ? 70120967879 ? 173397734714
?
These financial statements were approved by the Board of Directors of the Company on 30 March 2022.Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 193 form part of these financial statements.Page 26BOE Technology Group Co. Ltd.Company statement of changes in shareholders’ equity
for the year ended 31 December 2021
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensi Surplus Retained
? Note Share capital ? instruments ? Capital reserve ? shares ? ve income ? reserve ? earnings ? Total
?????????????????
I. Balance at the beginning of the year ? 34798398763 ? 14146997427 ? 36696079366 ? 1036298508 ? 90713133 ? 2444416669 ? 11954088031 ? 99094394881
II. Changes in equity during the year ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
1. Total comprehensive income ? - ? - ? - ? - ? 53550302 ? - ? 4396496566 ? 4450046868
2. Shareholders’ contributions of
capital ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Contribution by ordinary
shareholders V.37 3650377019 ? - ? 16219134815 ? - ? - ? - ? - ? 19869511834
(2) Repurchase of treasury shares V.40 - ? - ? - ? 2428003419 ? - ? - ? - ? (2428003419)
(3) Cancellation of treasury shares V. 37/39/40 (3029300) ? - ? (14270384) ? (17299684) ? - ? - ? - ? -?
(4) Equity-settled share-based
payment XI - ? - ? 640692637 ? (31234036) ? - ? - ? - ? 671926673
3. Appropriation of profits ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Appropriation for surplus
reserve V.42 - ? - ? - ? - ? - ? 439649657 ? (439649657) ? -
(2) Accrued interest on holders of
other equity instruments V.38 - ? 533600000 ? - ? - ? - ? - ? (533600000) ? -
(3) Payment for interest on
holders of other equity
instruments V.38 - ? (533600000) ? - ? - ? - ? - ? - ? (533600000)
(4) Distributions to shareholders V.43 - ? - ? - ? - ? - ? - ? (3476073919) ? (3476073919)
???
The notes on pages 30 to 193 form part of these financial statements.Page 27BOE Technology Group Co. Ltd.Company statement of changes in shareholders’ equity
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensiv Retained
? Note Share capital ? instruments ? Capital reserve ? shares ? e income ? Surplus reserve ? earnings ? Total
?????????????????
4. Transfers within equity ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Transfer of other
comprehensive income to
retained earnings XVI.14/15 - ? - ? - ? - ? (55238785) ? 5523879 ? 49714906 ? -
5. Others ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Other movements in equity of
associates XVI.5 - ? - ? 53544976 ? - ? - ? - ? - ? 53544976
(2) Others ? - ? - ? 2851742 ? - ? - ? - ? - ? 2851742
?????????????????
III. Balance at the end of the year ? 38445746482 ? 14146997427 ? 53598033152 ? 3415768207 ? 89024650 ? 2889590205 ? 11950975927 ? 117704599636
??
These financial statements were approved by the Board of Directors of the Company on 30 March 2022.Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 193 form part of these financial statements.Page 28BOE Technology Group Co. Ltd.Company statement of changes in shareholders’ equity
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive Retained
? Note Share capital ? instruments ? Capital reserve ? shares ? income ? Surplus reserve ? earnings ? Total
?????????????????
I. Balance at the beginning of the year ? 34798398763 ? 8013156853 ? 37608039685 ? - ? 193638576 ? 1516139709 ? 4781488839 ? 86910862425
Add: Changes in accounting policies ? - ? - ? - ? - ? - ? 533906114 ? 4805155027 ? 5339061141
?????????????????
Adjusted balance at the beginning of the
year ? 34798398763 ? 8013156853 ? 37608039685 ? - ? 193638576 ? 2050045823 ? 9586643866 ? 92249923566
II. Changes in equity during the year ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
1. Total comprehensive income ? - ? - ? - ? - ? 136131965 ? - ? 3739191584 ? 3875323549
2. Shareholders’ contributions of capital ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Contribution by holders of other
equity instruments V.38 - ? 5967915094 ? - ? - ? - ? - ? - ? 5967915094
(2) Repurchase of treasury shares V.40 - ? - ? - ? 1998774694 ? - ? - ? - ? (1998774694)
(3) Equity-settled share-based
payment XI - ? - ? (945264723) ? (962476186) ? - ? - ? - ? 17211463
3. Appropriation of profits ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Appropriation for surplus reserve V.42 - ? - ? - ? - ? - ? 373919158 ? (373919158) ? -
(2) Accrued interest on holders of
other equity instruments V.38 - ? 485925480 ? - ? - ? - ? - ? (485925480) ? -
(3) Payment for interest on holders
of other equity instruments V.38 - ? (320000000) ? - ? - ? - ? - ? - ? (320000000)
(4) Distributions to shareholders V.43 - ? - ? - ? - ? - ? - ? (695967975) ? (695967975)
???
The notes on pages 30 to 193 form part of these financial statements.Page 29BOE Technology Group Co. Ltd.Company statement of changes in shareholders’ equity
for the year ended 31 December 2020 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive Retained
? Note Share capital ? instruments ? Capital reserve ? shares ? income ? Surplus reserve ? earnings ? Total
?????????????????
4. Transfers within equity ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Transfer of other comprehensive
income to retained earnings XVI.14/15 - ? - ? - ? - ? (239057408) ? 23905741 ? 215151667 ? -
5. Others ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Disposal of subsidiaries to equity
method accounting ? - ? - ? - ? - ? - ? (3454053) ? (31086473) ? (34540526)
(2) Other movements in equity of
associates XVI.5 - ? - ? 33304404 ? - ? - ? - ? - ? 33304404
?????????????????
III. Balance at the end of the year ? 34798398763 ? 14146997427 ? 36696079366 ? 1036298508 ? 90713133 ? 2444416669 ? 11954088031 ? 99094394881
?
These financial statements were approved by the Board of Directors of the Company on 30 March 2022.Chen Yanshun Liu Xiaodong Sun Yun Yang Xiaoping (Company
Chairman of the Chief Executive Chief Financial The head of the stamp)
Board Officer Officer accounting
department
(Signature and (Signature and (Signature and (Signature and
stamp) stamp) stamp) stamp)
The notes on pages 30 to 193 form part of these financial statements.Page 30BOE Technology Group Co. Ltd.Notes to the financial statements
(Expressed in Renminbi Yuan unless otherwise indicated)
I. Company status
BOE Technology Group Company Limited (the “Company”) is a company limited by shares
established on 9 April 1993 in Beijing with its head office located at Beijing. The parent of the
Company and the Company’s ultimate holding company is Beijing Electronics Holdings Co.Ltd. (“Electronics Holdings”).The Company and its subsidiaries (referred to as the “Group”) comprise five main business
segments: display business Internet of Things (IoT) innovation business sensor and
application solutions MLED and smart medicine & engineering. For information about the
subsidiaries of the Company refer to Note VII.II. Basis of preparation
The financial statements have been prepared on the going concern basis.The Group has adopted the revised “Accounting Standard for Business Enterprises No. 22 –Financial Instruments: Recognition and Measurement” and related new financial instruments
standards issued by the Ministry of Finance (“MOF”) of the People’s Republic of China in
2017 since 1 January 2019. In addition it has adopted the revised “Accounting Standard forBusiness Enterprises No. 14 – Revenue” issued by the MOF in 2017 since 1 January 2020
and has adopted the revised “Accounting Standard for Business Enterprises No. 21 – Leases”
issued by the MOF in 2018 since 1 January 2021 (see Note III.28).III. Significant accounting policies and accounting estimates
1 Statement of compliance
The financial statements have been prepared in accordance with the requirements of
Accounting Standards for Business Enterprises or referred to as China Accounting Standards
(“CAS”) issued by the MOF. These financial statements present truly and completely the
consolidated financial position and financial position of the Company as at 31 December
2021 and the consolidated financial performance and financial performance and the
consolidated cash flows and cash flows of the Company for the year then ended.These financial statements also comply with the disclosure requirements of “Regulation onthe Preparation of Information Disclosures by Companies Issuing Securities No. 15: GeneralRequirements for Financial Reports” as revised by the China Securities Regulatory
Commission (“CSRC”) in 2014.Page 31BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
2 Accounting period
The accounting period is from 1 January to 31 December.
3 Operating cycle
The Company takes the period from the acquisition of assets for processing to until the
ultimate realisation of cash or cash equivalents as a normal operating cycle. The operating
cycle of the Company is usually less than 12 months.
4 Functional currency
The Company’s functional currency is Renminbi and these financial statements are
presented in Renminbi. Functional currency is determined by the Company and its
subsidiaries on the basis of the currency in which major income and costs are
denominated and settled. Some of the Company’s subsidiaries have functional currencies
that are different from the Company’s functional currency. Their financial statements have
been translated based on the accounting policy set out in Note III.8.
5 Accounting treatments for business combinations involving entities under common control
and not under common control
A transaction constitutes a business combination when the Group obtains control of one or
more entities (or a group of assets or net assets). Business combination is classified as
either business combinations involving enterprises under common control or business
combinations not involving enterprises under common control.For a transaction not involving enterprises under common control the acquirer determines
whether acquired set of assets constitute a business. The Group may elect to apply the
simplified assessment method the concentration test to determine whether an acquired
set of assets is not a business. If the concentration test is met and the set of assets is
determined not to be a business no further assessment is needed. If the concentration
test is not met the Group shall perform the assessment according to the guidance on the
determination of a business.When the set of assets the group acquired does not constitute a business acquisition
costs should be allocated to each identifiable assets and liabilities at their acquisition date
fair values. It is not required to apply the accounting of business combination described as
below.
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business
combination in which all of the combining entities are ultimately controlled by the same
party or parties both before and after the business combination and that control is not
transitory. The assets acquired and liabilities assumed are measured based on their
carrying amounts in the consolidated financial statements of the ultimate controlling party
at the combination date. The difference between the carrying amount of the net assets
acquired and the consideration paid for the combination (or the total par value of shares
issued) is adjusted against share premium in the capital reserve with any excess adjusted
against retained earnings. Any costs directly attributable to the combination are
recognised in profit or loss when incurred. The combination date is the date on which one
combining entity obtains control of other combining entities.Page 32BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a business
combination in which all of the combining entities are not ultimately controlled by the same
party or parties both before and after the business combination. Where (1) the aggregate
of the acquisition-date fair value of assets transferred (including the acquirer’s previously
held equity interest in the acquiree) liabilities incurred or assumed and equity securities
issued by the acquirer in exchange for control of the acquiree exceeds (2) the acquirer’s
interest in the acquisition-date fair value of the acquiree’s identifiable net assets the
difference is recognised as goodwill (see Note III.17). If (1) is less than (2) the difference
is recognised in profit or loss for the current period. The costs of issuing equity or debt
securities as a part of the consideration for the acquisition are included in the carrying
amounts of these equity or debt securities upon initial recognition. Other
acquisition-related costs are expensed when incurred. Any difference between the fair
value and the carrying amount of the assets transferred as consideration is recognised in
profit or loss. The acquiree’s identifiable asset liabilities and contingent liabilities if the
recognition criteria are met are recognised by the Group at their acquisition-date fair
value. The acquisition date is the date on which the acquirer obtains control of the
acquiree.For a business combination involving entities not under common control and achieved in
stages the Group remeasures its previously-held equity interest in the acquiree to its
acquisition-date fair value and recognises any resulting difference between the fair value
and the carrying amount as investment income or other comprehensive income for the
current period. In addition any amount recognised in other comprehensive income and
other changes in the owners’ equity under equity accounting in prior reporting periods
relating to the previously-held equity interest that may be reclassified to profit or loss are
transferred to investment income at the date of acquisition (see Note III.11(2)(b)); Any
previously-held equity interest that is designated as equity investment at fair value through
other comprehensive income the other comprehensive income recognised in prior
reporting periods is transferred to retained earnings and surplus reserve at the date of
acquisition.Page 33BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
6 Consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the consolidated
financial statements comprise the Company and its subsidiaries. Control exists when the
investor has all of following: power over the investee; exposure or rights to variable
returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee. When assessing whether the Group has power only
substantive rights (held by the Group and other parties) are considered. The financial
position financial performance and cash flows of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that
control ceases.Non-controlling interests are presented separately in the consolidated balance sheet
within shareholders’ equity. Net profit or loss attributable to non-controlling shareholders is
presented separately in the consolidated income statement below the net profit line item.Total comprehensive income attributable to non-controlling shareholders is presented
separately in the consolidated income statement below the total comprehensive income
line item.When the amount of loss for the current period attributable to the non-controlling
shareholders of a subsidiary exceeds the non-controlling shareholders’ share of the
opening owners’ equity of the subsidiary the excess is still allocated against the
non-controlling interests.When the accounting period or accounting policies of a subsidiary are different from those
of the Company the Company makes necessary adjustments to the financial statements
of the subsidiary based on the Company’s own accounting period or accounting policies.Intra-group balances and transactions and any unrealised profit or loss arising from
intra-group transactions are eliminated when preparing the consolidated financial
statements. Unrealised losses resulting from intra-group transactions are eliminated in the
same way as unrealised gains unless they represent impairment losses that are
recognised in the financial statements.
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period through a business
combination involving entities under common control the financial statements of the
subsidiary are included in the consolidated financial statements based on the carrying
amounts of the assets and liabilities of the subsidiary in the financial statements of the
ultimate controlling party as if the combination had occurred at the date that the ultimate
controlling party first obtained control. The opening balances and the comparative figures
of the consolidated financial statements are also restated.Where a subsidiary was acquired during the reporting period through a business
combination involving entities not under common control the identifiable assets and
liabilities of the acquired subsidiaries are included in the scope of consolidation from the
date that control commences based on the fair value of those identifiable assets and
liabilities at the acquisition date.Page 34BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(3) Disposal of subsidiaries
When the Group loses control over a subsidiary any resulting disposal gains or losses are
recognised as investment income for the current period. The remaining equity interests is
re-measured at its fair value at the date when control is lost any resulting gains or losses
are also recognised as investment income for the current period.When the Group loses control of a subsidiary in multiple transactions in which it disposes
of its long-term equity investment in the subsidiary in stages the following are considered
to determine whether the Group should account for the multiple transactions as a bundled
transaction:
- arrangements are entered into at the same time or in contemplation of each other;
- arrangements work together to achieve an overall commercial effect;
- the occurrence of one arrangement is dependent on the occurrence of at least one
other arrangement;
- one arrangement considered on its own is not economically justified but it is
economically justified when considered together with other arrangements.If each of the multiple transactions does not form part of a bundled transaction the
transactions conducted before the loss of control of the subsidiary are accounted for in
accordance with the accounting policy for partial disposal of equity investment in
subsidiaries where control is retained (see Note III.6(4)).If each of the multiple transactions forms part of a bundled transaction which eventually
results in the loss of control in the subsidiary these multiple transactions are accounted
for as a single transaction. In the consolidated financial statements the difference
between the consideration received and the corresponding proportion of the subsidiary’s
net assets (calculated continuously from the acquisition date) in each transaction prior to
the loss of control shall be recognised in other comprehensive income and transferred to
profit or loss when the parent eventually loses control of the subsidiary.Page 35BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling
shareholders or disposes of a portion of an interest in a subsidiary without a change in
control the difference between the proportion interests of the subsidiary’s net assets
being acquired or disposed and the amount of the consideration paid or received is
adjusted to the capital reserve (share premium) in the consolidated balance sheet with
any excess adjusted to retained earnings.
7 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand deposits that can be readily withdraw
on demand and short-term highly liquid investments that are readily convertible into
known amounts of cash and are subject to an insignificant risk of change in value.
8 Foreign currency transactions and translation of foreign currency financial statements
When the Group receives capital in foreign currencies from investors the capital is
translated to Renminbi at the spot exchange rate at the date of the receipt. Other foreign
currency transactions are on initial recognition translated to Renminbi at the spot
exchange rates on the dates of the transactions.Monetary items denominated in foreign currencies are translated to Renminbi at the spot
exchange rate at the balance sheet date. The resulting exchange differences are
generally recognised in profit or loss unless they arise from the re-translation of the
principal and interest of specific borrowings for the acquisition and construction of
qualifying assets (see Note III.15). Non-monetary items that are measured at historical
cost in foreign currencies are translated to Renminbi using the exchange rate at the
transaction date. Non-monetary items that are measured at fair value in foreign currencies
are translated using the exchange rate at the date the fair value is determined. The
resulting exchange differences are recognised in profit or loss except for the differences
arising from the re-translation of equity investments at fair value through other
comprehensive income which are recognised in other comprehensive income.In translating the financial statements of a foreign operation assets and liabilities of
foreign operation are translated to Renminbi at the spot exchange rate at the balance
sheet date. Equity items excluding retained earnings and the translation differences in
other comprehensive income are translated to Renminbi at the spot exchange rates at the
transaction dates. Income and expenses of foreign operation are translated to Renminbi at
the rates that approximate the spot exchange rates at the transaction dates. The resulting
translation differences are recognised in other comprehensive income. The translation
differences accumulated in shareholders’ equity with respect to a foreign operation are
transferred to profit or loss in the period when the foreign operation is disposed.Page 36BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
9 Financial instruments
Financial instruments include cash at bank and on hand investments in debt and equity
securities other than those classified as long-term equity investments (see Note III.11)
receivables payables loans and borrowings debentures payable and share capital.
(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Group
becomes a party to the contractual provisions of a financial instrument.A financial or financial liability is measured initially at fair value. For financial assets and
financial liabilities at fair value through profit or loss any related directly attributable
transaction costs are charged to profit or loss; for other categories of financial assets and
financial liabilities any related directly attributable transaction costs are included in their
initial costs. A trade receivable without significant financing component or practical
expedient applied for one year or less contracts is initially measured at the transaction
price in accordance with Note III.20.
(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in
which a financial asset is managed and its contractual cash flow characteristics. On
initial recognition a financial asset is classified as measured at amortised cost at
fair value through other comprehensive income (“FVOCI”) or at fair value through
profit or loss (“FVTPL”).Financial assets are not reclassified subsequent to their initial recognition unless the
Group changes its business model for managing financial assets in which case all
affected financial assets are reclassified on the first day of the first reporting period
following the change in the business model.A financial asset is measured at amortised cost if it meets both of the following
conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect
contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.Page 37BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
A debt investment is measured at FVOCI if it meets both of the following conditions
and is not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.On initial recognition of an equity investment that is not held for trading the Group
may irrevocably elect to present subsequent changes in the investment’s fair value
in other comprehensive income. This election is made on an
investment-by-investment basis. The instrument meets the definition of equity from
the perspective of the issuer.All financial assets not classified as measured at amortised cost or FVOCI as
described above are measured at FVTPL. On initial recognition the Group may
irrevocably designate a financial asset that otherwise meets the requirements to be
measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.The business model refers to how the Group manages its financial assets in order to
generate cash flows. That is the Group’s business model determines whether cash
flows will result from collecting contractual cash flows selling financial assets or
both. The Group determines the business model for managing the financial assets
according to the facts and based on the specific business objective for managing the
financial assets determined by the Group’s key management personnel.In assessing whether the contractual cash flows are solely payments of principal and
interest the Group considers the contractual terms of the instrument. For the
purposes of this assessment ‘principal’ is defined as the fair value of the financial
asset on initial recognition. ‘Interest’ is defined as consideration for the time value of
money and for the credit risk associated with the principal amount outstanding
during a particular period of time and for other basic lending risks and costs as well
as a profit margin. The Group also assesses whether the financial asset contains a
contractual term that could change the timing or amount of contractual cash flows
such that it would not meet this condition.Page 38BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and
losses including any interest or dividend income are recognised in profit or loss
unless the financial assets are part of a hedging relationship.- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective
interest method. A gain or loss on a financial asset that is measured at amortised
cost and is not part of a hedging relationship shall be recognised in profit or loss
when the financial asset is derecognised reclassified through the amortisation
process or in order to recognise impairment gains or losses.- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income
calculated using the effective interest method impairment and foreign exchange
gains and losses are recognised in profit or loss. Other net gains and losses are
recognised in other comprehensive income. On derecognition gains and losses
accumulated in other comprehensive income are reclassified to profit or loss.- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised
as income in profit or loss. Other net gains and losses are recognised in other
comprehensive income. On derecognition gains and losses accumulated in other
comprehensive income are reclassified to retained earnings.
(3) Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost.- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading
(including derivative financial liability) or it is designated as such on initial recognition.Financial liabilities at FVTPL are subsequently measured at fair value and net gains
and losses including any interest expense are recognised in profit or loss unless the
financial liabilities are part of a hedging relationship.Page 39BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the
effective interest method.
(4) Offsetting
Financial assets and financial liabilities are generally presented separately in the balance
sheet and are not offset. However a financial asset and a financial liability are offset and
the net amount is presented in the balance sheet when both of the following conditions are
satisfied:
- The Group currently has a legally enforceable right to set off the recognised amounts；
- The Group intends either to settle on a net basis or to realise the financial asset and
settle the financial liability simultaneously.
(5) Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or；
- the financial asset has been transferred although the Group neither transfers nor
retains substantially all of the risks and rewards of ownership of the financial asset it
does not retain control over the transferred asset.Where a transfer of a financial asset in its entirety meets the criteria for derecognition the
difference between the two amounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of
derecognition;
- the sum of the consideration received from the transfer and when the transferred
financial asset is a debt investment at FVOCI any cumulative gain or loss that has
been recognised directly in other comprehensive income for the part derecognised.The Group derecognises a financial liability (or part of it) only when its contractual
obligation (or part of it) is extinguished.Page 40BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(6) Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;
- contract assets;
- debt investments at FVOCI; and
- lease receivables
Financial assets measured at fair value including debt investments or equity securities at
FVTPL equity securities designated at FVOCI and derivative financial assets are not
subject to the ECL assessment.Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as
the present value of all cash shortfalls (i.e. the difference between the cash flows due to
the entity in accordance with the contract and the cash flows that the Group expects to
receive).The maximum period considered when estimating ECLs is the maximum contractual
period (including extension options) over which the Group is exposed to credit risk.Lifetime ECLs are the ECLs that result from all possible default events over the expected
life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible
within the 12 months after the balance sheet date (or a shorter period if the expected life of
the instrument is less than 12 months).Loss allowances for trade receivables lease receivables and contract assets are always
measured at an amount equal to lifetime ECL. ECLs on these financial assets are
estimated using a provision matrix based on the Group’s historical credit loss experience
adjusted for factors that are specific to the debtors and an assessment of both the current
and forecast general economic conditions at the balance sheet date.Page 41BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Except for trade receivables lease receivables and contract assets the Group measures
loss allowance at an amount equal to 12-month ECL for the following financial
instruments and at an amount equal to lifetime ECL for all other financial instruments.- If the financial instrument is determined to have low credit risk at the balance sheet
date;
- If the credit risk on a financial instrument has not increased significantly since initial
recognition.Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a
low risk of default the borrower has a strong capacity to meet its contractual cash flow
obligations in the near term and adverse changes in economic and business conditions in
the longer term may but will not necessarily reduce the ability of the borrower to fulfil its
contractual cash flow obligations.Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly
since initial recognition the Group compares the risk of default occurring on the financial
instrument assessed at the balance sheet date with that assessed at the date of initial
recognition.When determining whether the credit risk of a financial asset has increased significantly
since initial recognition and when estimating ECL the Group considers reasonable and
supportable information that is relevant and available without undue cost or effort
including forward-looking information. In particular the following information is taken into
account:
- failure to make payments of principal or interest on their contractually due dates;
- an actual or expected significant deterioration in a financial instrument’s external or
internal credit rating (if available);
- an actual or expected significant deterioration in the operating results of the debtor; and
- existing or forecast changes in the technological market economic or legal
environment that have a significant adverse effect on the debtor’s ability to meet its
obligation to the Group.Depending on the nature of the financial instruments the assessment of a significant
increase in credit risk is performed on either an individual basis or a collective basis. When
the assessment is performed on a collective basis the financial instruments are grouped
based on shared credit risk characteristics such as past due status and credit risk ratings.The Group assumes that the credit risk on a financial asset has increased significantly if it
is more than 30 days past due.Page 42BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Credit-impaired financial assets
At each balance sheet date the Group assesses whether financial assets carried at
amortised cost and debt investments at FVOCI are credit-impaired. A financial asset is
‘credit-impaired’ when one or more events that have a detrimental impact on the estimated
future cash flows of the financial asset have occurred. Evidence that a financial asset is
credit-impaired includes the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the borrower’s financial difficulty the
Group having granted to the borrower a concession that would not otherwise consider;
- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for that financial asset because of financial
difficulties.Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financial
instrument’s credit risk since initial recognition. Any change in the ECL amount is
recognised as an impairment gain or loss in profit or loss. The Group recognises an
impairment gain or loss for all financial instruments with a corresponding adjustment to
their carrying amount through a loss allowance account except for debt investments that
are measured at FVOCI for which the loss allowance is recognised in other
comprehensive income.Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition
event. This is generally the case when the Group determines that the debtor does not
have assets or sources of income that could generate sufficient cash flows to repay the
amounts subject to the write-off. However financial assets that are written off could still be
subject to enforcement activities in order to comply with the Group’s procedures for
recovery of amounts due.Subsequent recoveries of an asset that was previously written off are recognised as a
reversal of impairment in profit or loss in the period in which the recovery occurs.Page 43BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(7) Equity instrument
The consideration received from the issuance of equity instruments net of transaction
costs is recognised in shareholders’ equity. Consideration and transaction costs paid by
the Company for repurchasing self-issued equity instruments are deducted from
shareholders’ equity.When the Company repurchases its own shares those shares are treated as treasury
shares. All expenditure relating to the repurchase is recorded in the cost of the treasury
shares with the transaction recording in the share register. Treasury shares are excluded
from profit distributions and are presented as a deduction under shareholders’ equity in
the balance sheet.When treasury shares are cancelled the share capital should be reduced to the extent of
the total par value of the treasury shares cancelled. Where the cost of the treasury shares
cancelled exceeds the total par value the excess is deducted from capital reserve (share
premium) surplus reserve and retained earnings sequentially. If the cost of treasury
shares cancelled is less than the total par value the difference is credited to the capital
reserve (share premium).When treasury shares are disposed of any excess of proceeds above cost is recognised
in capital reserve (share premium); otherwise the shortfall is deducted against capital
reserve (share premium) surplus reserve and retained earnings sequentially.
(8) Perpetual bonds
At initial recognition the Group classifies the perpetual bonds issued or their components
as financial assets financial liabilities or equity instruments based on their contractual
terms and their economic substance after considering the definition of financial assets
financial liabilities and equity instruments.Perpetual bonds issued that should be classified as equity instruments are recognised in
equity based on the actual amount received. Any distribution of dividends or interests
during the instruments’ duration is treated as profit appropriation. When the perpetual
bonds are redeemed according to the contractual terms the redemption price is charged
to equity.
10 Inventories
(1) Classification and cost
Inventories include raw materials work in progress finished goods and reusable
materials. Reusable materials include low-value consumables packaging materials and
other materials which can be used repeatedly but do not meet the definition of fixed
assets.Inventories are initially measured at cost. Cost of inventories comprises all costs of
purchase costs of conversion and other expenditure incurred in bringing the inventories to
their present location and condition. In addition to the purchase cost of raw materials work
in progress and finished goods include direct labour costs and an appropriate allocation of
production overheads.Page 44BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Measurement method of cost of inventories
Cost of inventories recognised is calculated using the weighted average method.Consumables including low-value consumables and packaging materials are charged to
profit or loss upon receipt. The amortisation charge is included in the cost of the related
assets or recognised in profit or loss for the current period.
(3) Basis for determining the net realisable value and method for provision for obsolete
inventories
At the balance sheet date inventories are carried at the lower of cost and net realisable
value.Net realisable value is the estimated selling price in the ordinary course of business less
the estimated costs of completion and the estimated costs necessary to make the sale
and relevant taxes. The net realisable value of materials held for use in the production is
measured based on the net realisable value of the finished goods in which they will be
incorporated. The net realisable value of the inventory held to satisfy sales or service
contracts is measured based on the contract price to the extent of the quantities specified
in sales contracts and the excess portion of inventories is measured based on general
selling prices.Any excess of the cost over the net realisable value of each category of inventories is
recognised as a provision for obsolete inventories and is recognised in profit or loss.
(4) Inventory count system
The Group maintains a perpetual inventory system.
11 Long-term equity investments
(1) Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business
combination involving entities under common control is the Company’s share of
the carrying amount of the subsidiary’s equity in the consolidated financial
statements of the ultimate controlling party at the combination date. The
difference between the initial investment cost and the carrying amount of the
consideration given is adjusted to the share premium in the capital reserve with
any excess adjusted to retained earnings. For a long-term equity investment in a
subsidiary acquired through a business combination achieved in stages which do
not form a bundled transaction and involving entities under common control the
Company determines the initial cost of the investment in accordance with the
above policies. The difference between this initial cost and the sum of the
carrying amount of previously-held investment and the consideration paid for the
shares newly acquired is adjusted to capital premium in the capital reserve with
any excess adjusted to retained earnings.Page 45BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
- For a long-term equity investment obtained through a business combination not
involving entities under common control the initial cost comprises the aggregate
of the fair value of assets transferred liabilities incurred or assumed and equity
securities issued by the Company in exchange for control of the acquiree. For a
long-term equity investment obtained through a business combination not
involving entities under common control and achieved through multiple
transactions in stages which do not form a bundled transaction the initial cost
comprises the carrying amount of the previously-held equity investment in the
acquiree immediately before the acquisition date and the additional investment
cost at the acquisition date.(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business
combination is initially recognised at the amount of cash paid if the Group
acquires the investment by cash or at the fair value of the equity securities
issued if an investment is acquired by issuing equity securities.
(2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements long-term equity investments in
subsidiaries are accounted for using the cost method for subsequent measurement
unless the investment is classified as held for sale (see Note III.29). Except for cash
dividends or profit distributions declared but not yet distributed that have been
included in the price or consideration paid in obtaining the investments the
Company recognises its share of the cash dividends or profit distributions declared
by the investee as investment income for the current period.The investments in subsidiaries are stated in the balance sheet at cost less
accumulated impairment losses.For the impairment of the investments in subsidiaries refer to Note III.19.In the Group’s consolidated financial statements subsidiaries are accounted for in
accordance with the policies described in Note III.6.(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint
control (see Note III.11(3)) and rights to the net assets of the arrangement.An associate is an entity over which the Group has significant influence (see Note
III.11(3)).Page 46BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
An investment in a joint venture or an associate is accounted for using the equity
method for subsequent measurement unless the investment is classified as held for
sale (see Note III.29).The accounting treatments under the equity method adopted by the Group are as
follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s
interest in the fair value of the investee’s identifiable net assets at the date of
acquisition the investment is initially recognised at cost. Where the initial
investment cost is less than the Group’s interest in the fair value of the investee’s
identifiable net assets at the date of acquisition the investment is initially
recognised at the investor’s share of the fair value of the investee’s identifiable
net assets and the difference is recognised in profit or loss.- After the acquisition of the investment the Group recognises its share of the
investee’s profit or loss and other comprehensive income as investment income
or losses and other comprehensive income respectively and adjusts the carrying
amount of the investment accordingly. Once the investee declares any cash
dividends or profit distributions the carrying amount of the investment is reduced
by the amount attributable to the Group. Changes in the Group’s share of the
investee’s owners’ equity other than those arising from the investee’s net profit orloss other comprehensive income or profit distribution (referred to as “otherchanges in owners’ equity”) is recognised directly in the Group’s equity and the
carrying amount of the investment is adjusted accordingly.- In calculating its share of the investee’s net profits or losses other
comprehensive income and other changes in owners’ equity the Group
recognises investment income and other comprehensive income after making
appropriate adjustments to align the accounting policies or accounting periods
with those of the Group based on the fair value of the investee’s identifiable net
assets at the date of acquisition. Unrealised profits and losses resulting from
transactions between the Group and its associates or joint ventures are
eliminated to the extent of the Group’s interest in the associates or joint ventures.Unrealised losses resulting from transactions between the Group and its
associates or joint ventures are eliminated in the same way as unrealised gains
but only to the extent that there is no impairment.- The Group discontinues recognising its share of further losses of the investee
after the carrying amount of the long-term equity investment and any long-term
interest that in substance forms part of the Group’s net investment in the joint
venture or associate is reduced to zero except to the extent that the Group has
an obligation to assume additional losses. If the joint venture or associate
subsequently reports net profits the Group resumes recognising its share of
those profits only after its share of the profits has fully covered the share of losses
not recognised.For the impairment of the investments in joint ventures and associates refer to Note
III.19.Page 47BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(3) Criteria for determining the existence of joint control or significant influence over an
investee
Joint control is the contractually agreed sharing of control of an arrangement which exists
only when decisions about the relevant activities (activities with significant impact on the
returns of the arrangement) require the unanimous consent of the parties sharing control.The following factors are usually considered when assessing whether the Group can
exercise joint control over an investee:
- Whether no single participant party is in a position to control the investee’s related
activities unilaterally;
- Whether strategic decisions relating to the investee’s related activities require the
unanimous consent of all participant parties that sharing of control.Significant influence is the power to participate in the financial and operating policy
decisions of an investee but does not have control or joint control over those policies.
12 Investment properties
Investment properties are properties held either to earn rental income or for capital
appreciation or for both. Investment properties are accounted for using the cost model and
stated in the balance sheet at cost less accumulated depreciation amortisation and
impairment losses. The cost of investment property less its estimated residual value and
accumulated impairment losses is depreciated or amortised using the straight-line
method over its estimated useful life unless the investment property is classified as held
for sale (see Note III.29). For the impairment of the investment properties refer to Note
III.19.The estimated useful lives residual value rates and depreciation rates of each class of
investment properties are as follows:
Estimated useful Residual value rate Depreciation rate
? life (years) ? (%) ? (%)
??????
Land use rights 32 - 50 years ? 0.0% ? 2.0% - 3.1%
Buildings 20 - 40 years ? 0% - 10.0% ? 2.3% - 5.0%
???
Page 48BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
13 Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in the production of
goods supply of services or for administrative purposes with useful lives over one year.The cost of a purchased fixed asset comprises the purchase price related taxes and any
directly attributable expenditure for bringing the asset to working condition for its intended
use. The cost of self-constructed assets is measured in accordance with the policy set out
in Note III.14.Where the parts of an item of fixed assets have different useful lives or provide benefits to
the Group in a different pattern thus necessitating use of different depreciation rates or
methods each part is recognised as a separate fixed asset.Any subsequent costs including the cost of replacing part of an item of fixed assets are
recognised as assets when it is probable that the economic benefits associated with the
costs will flow to the Group and the carrying amount of the replaced part is derecognised.The costs of the day-to-day maintenance of fixed assets are recognised in profit or loss as
incurred.Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
(2) Depreciation of fixed assets
The cost of a fixed asset less its estimated residual value and accumulated impairment
losses is depreciated using the straight-line method over its estimated useful life unless
the fixed asset is classified as held for sale (see Note III.29).The estimated useful lives residual value rates and depreciation rates of each class of
fixed assets are as follows:
Estimated useful Residual value rate Depreciation rate
Class life (years) ? (%) ? (%)
??????
Buildings 10 - 50 years ? 10% ? 1.8% - 9.7%
Equipment 2 - 25 years ? 0 - 10% ? 3.6% - 50%
Others 2 - 10 years ? 0 - 10% ? 9.0% - 50%
???
Useful lives residual values and depreciation methods are reviewed at least at each
year-end.
(3) For the impairment of the fixed assets refer to Note III.19.
Page 49BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(4) Disposal of fixed assets
The carrying amount of a fixed asset is derecognised:
- when the fixed asset is holding for disposal; or
- when no future economic benefit is expected to be generated from its use or disposal.Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between the net disposal proceeds and the carrying amount
of the item and are recognised in profit or loss on the date of retirement or disposal.
14 Construction in progress
The cost of self-constructed assets includes the cost of materials direct labour capitalised
borrowing costs (see Note III.15) and any other costs directly attributable to bringing the
asset to working condition for its intended use.A self-constructed asset is classified as construction in progress and transferred to fixed
asset when it is ready for its intended use. No depreciation is provided against
construction in progress.Construction in progress is stated in the balance sheet at cost less accumulated
impairment losses (see Note III.19).
15 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition and construction of a
qualifying asset are capitalised as part of the cost of the asset. Other borrowing costs are
recognised as financial expenses when incurred.During the capitalisation period the amount of interest (including amortisation of any
discount or premium on borrowing) to be capitalised in each accounting period is
determined as follows:
- Where funds are borrowed specifically for the acquisition and construction of a
qualifying asset the amount of interest to be capitalised is the interest expense
calculated using effective interest rates during the period less any interest income
earned from depositing the borrowed funds or any investment income on the temporary
investment of those funds before being used on the asset.- To the extent that the Group borrows funds generally and uses them for the acquisition
and construction of a qualifying asset the amount of borrowing costs eligible for
capitalisation is determined by applying a capitalisation rate to the weighted average of
the excess amounts of cumulative expenditure on the asset over the above amounts of
specific borrowings. The capitalisation rate is the weighted average of the interest rates
applicable to the general-purpose borrowings. The capitalisation rate is the weighted
average of the interest rates applicable to the general-purpose borrowings.The effective interest rate is determined as the rate that exactly discounts estimated future
cash flow through the expected life of the borrowing or when appropriate a shorter period
to the initially recognised amount of the borrowings.Page 50BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
During the capitalisation period exchange differences related to the principal and interest
on a specific-purpose borrowing denominated in foreign currency are capitalised as part of
the cost of the qualifying asset. The exchange differences related to the principal and
interest on foreign currency borrowings other than a specific-purpose borrowing are
recognised as a financial expense when incurred.The capitalisation period is the period from the date of commencement of capitalisation of
borrowing costs to the date of cessation of capitalisation excluding any period over which
capitalisation is suspended. Capitalisation of borrowing costs commences when
expenditure for the asset is being incurred borrowing costs are being incurred and
activities of acquisition and construction that are necessary to prepare the asset for its
intended use are in progress and ceases when the assets become ready for their
intended use. When the parts of the qualifying assets acquired or constructed that are
eligible for capitalisation are completed separately and each part is available for use in
other parts of the construction process or can be sold externally and for the purpose of
making the parts of the assets ready for use or necessary for the sales status the
acquisition or construction activities have been substantially completed the Group ceases
the capitalisation of the borrowing costs related to the parts of the assets. Capitalisation of
borrowing costs is suspended when the acquisition and construction activities are
interrupted abnormally for a period of more than three months.
16 Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortisation
(where the estimated useful life is finite) and impairment losses (see Note III.19). For an
intangible asset with finite useful life its cost less estimated residual value and
accumulated impairment losses is amortised using the straight-line method over its
estimated useful life unless the intangible asset is classified as held for sale (see Note
III.29).The respective amortisation periods for intangible assets are as follows:
Amortisation
Item period (years)
??
Land use rights 20 - 50 years
Patent and proprietary technology 5 - 20 years
Computer software 3 - 10 years
Others 5 - 20 years
???
Useful lives and amortisation methods of intangible asset with finite useful life are
reviewed at least at each year-end. An intangible asset is regarded as having an indefinite
useful life and is not amortised when there is no foreseeable limit to the period over which
the asset is expected to generate economic benefits for the Group. At the balance sheet
date the Group does not have any intangible assets with indefinite useful lives.Expenditure on an internal research and development project is classified into expenditure
incurred during the research phase and expenditure incurred during the development
phase.Page 51BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Expenditure during the research phase is expensed when incurred. Expenditure during
the development phase is capitalised if development costs can be measured reliably the
product or process is technically and commercially feasible and the Group intends to and
has sufficient resources to complete the development. Capitalised development costs are
stated in the balance sheet at cost less impairment losses (see Note III.19). Other
development expenditure is recognised as an expense in the period in which it is incurred.
17 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’s
interest in the fair value of the identifiable net assets of the acquiree under a business
combination not involving entities under common control.Goodwill is not amortised and is stated in the balance sheet at cost less accumulated
impairment losses (see Note III.19). On disposal of an asset group or a set of asset
groups any attributable goodwill is written off and included in the calculation of the profit or
loss on disposal.
18 Long-term deferred expenses
Long-term deferred expenses are amortised using a straight-line method within the benefit
period. The respective amortisation periods for such expenses are as follows:
Amortisation
Item period (years)
??
Payment for public facilities construction and use 10 - 15 years
Leasehold improvements 2 - 10 years
Others 2 - 10 years
???
19 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date
based on internal and external sources of information to determine whether there is any
indication of impairment:
- fixed assets
- construction in progress
- right-of-use assets
- intangible assets
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses etc.If any indication exists the recoverable amount of the asset is estimated. In addition the
Group estimates the recoverable amounts of goodwill at each year-end irrespective of
whether there is any indication of impairment. Goodwill is allocated to each asset group or
set of asset groups which is expected to benefit from the synergies of the combination for
the purpose of impairment testing.Page 52BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
The recoverable amount of an asset (or asset group set of asset groups) is the higher of
its fair value (see Note III.20) less costs to sell and its present value of expected future
cash flows.An asset group is composed of assets directly related to cash generation and is the
smallest identifiable group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or asset groups.The present value of expected future cash flows of an asset is determined by discounting
the future cash flows estimated to be derived from continuing use of the asset and from its
ultimate disposal to their present value using an appropriate pre-tax discount rate.An impairment loss is recognised in profit or loss when the recoverable amount of an asset
is less than its carrying amount. A provision for impairment of the asset is recognised
accordingly. Impairment losses related to an asset group or a set of asset groups are
allocated first to reduce the carrying amount of any goodwill allocated to the asset group or
set of asset groups and then to reduce the carrying amount of the other assets in the
asset group or set of asset groups on a pro rata basis. However such allocation would not
reduce the carrying amount of an asset below the highest of its fair value less costs to sell
(if measurable) its present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognised it is not reversed in a subsequent period.
20 Fair value measurement
Unless otherwise specified the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date.When measuring fair value the Group takes into account the characteristics of the
particular asset or liability (including the condition and location of the asset and
restrictions if any on the sale or use of the asset) that market participants would consider
when pricing the asset or liability at the measurement date and uses valuation techniques
that are appropriate in the circumstances and for which sufficient data and other
information are available to measure fair value. Valuation techniques mainly include the
market approach the income approach and the cost approach.
21 Provisions
A provision is recognised for an obligation related to a contingency if the Group has a
present obligation that can be estimated reliably and it is probable that an outflow of
economic benefits will be required to settle the obligation.A provision is initially measured at the best estimate of the expenditure required to settle
the related present obligation. Where the effect of the time value of money is material
provisions are determined by discounting the expected future cash flows. Factors
pertaining to a contingency such as the risks uncertainties and time value of money are
taken into account as a whole in reaching the best estimate. Where there is a continuous
range of possible outcomes for the expenditure required and each possible outcome in
that range is as likely as any other the best estimate is the mid-point of that range. In
other cases the best estimate is determined according to the following circumstances:
Page 53BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
- Where the contingency involves a single item the best estimate is the most likely
outcome.- Where the contingency involves a large population of items the best estimate is
determined by weighting all possible outcomes by their associated probabilities.The Group reviews the carrying amount of a provision at the balance sheet date and
adjusts the carrying amount to the current best estimate.
22 Share-based payments
(1) Classification of share-based payments
Share-based payment transactions in the Group are equity-settled share-based
payments.
(2) Accounting treatment of share-based payments
- Equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for services
received from the employees the payment is measured at the fair value of the equity
instruments granted to the employees at the grant date. If the equity instruments
granted do not vest until the completion of services for a period or until the
achievement of a specified performance condition the Group recognises an amount at
each balance sheet date during the vesting period based on the best estimate of the
number of equity instruments expected to vest according to the newly obtained
subsequent information of the changes of the number of the employees expected to
vest the equity instruments. The Group measures the services received at the
grant-date fair value of the equity instruments and recognises the costs or expenses as
the services are received with a corresponding increase in capital reserve.
23 Revenue recognition
Revenue is the gross inflow of economic benefits arising in the course of the Group’s
ordinary activities when the inflows result in increase in shareholders’ equity other than
increase relating to contributions from shareholders.Revenue is recognised when the Group satisfies the performance obligation in the
contract by transferring the control over relevant goods or services to the customers.Where a contract has two or more performance obligations the Group determines the
stand-alone selling price at contract inception of the distinct good or service underlying
each performance obligation in the contract and allocates the transaction price in
proportion to those stand-alone selling prices. The Group recognises as revenue the
amount of the transaction price that is allocated to each performance obligation. The
stand-alone selling price is the price at which the Group would sell a promised good or
service separately to a customer. If a stand-alone selling price is not directly observable
the Group considers all information that is reasonably available to the entity maximises
the use of observable inputs to estimate the stand-alone selling price.For the contract which the Group grants a customer the option to acquire additional goods
or services (such as loyalty points discount coupons for future purchase etc.) the Group
assesses whether the option provides a material right to the customer. If the option
provides a material right the Group recognises the option as a performance obligation
and recognises revenue when those future goods or services are transferred or when the
Page 54BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
option expires. If the stand-alone selling price for a customer’s option to acquire additional
goods or services is not directly observable the Group estimates it taking into account all
relevant information including the difference in the discount that the customer would
receive when exercising the option or without exercising the option and the likelihood that
the option will be exercised.For the contract with a warranty the Group analyses the nature of the warranty provided if
the warranty provides the customer with a distinct service in addition to the assurance that
the product complies with agreed-upon specifications the Group recognises for the
promised warranty as a performance obligation. Otherwise the Group accounts for the
warranty in accordance with the requirements of CAS No.13 – Contingencies.The transaction price is the amount of consideration to which the Group expects to be
entitled in exchange for transferring promised goods or services to a customer excluding
amounts collected on behalf of third parties. The Group recognises the transaction price
only to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur when the uncertainty associated with the
variable consideration is subsequently resolved. To determine the transaction price for
contracts in which a customer promises consideration in a form other than cash the
Group measures the non-cash consideration at fair value. If the Group cannot reasonably
estimate the fair value of the non-cash consideration the Group measures the
consideration indirectly by reference to the stand-alone selling price of the goods or
services promised to the customer in exchange for the consideration. Where the contract
contains a significant financing component the Group recognises the transaction price at
an amount that reflects the price that a customer would have paid for the promised goods
or services if the customer had paid cash for those goods or services when (or as) they
transfer to the customer. The difference between the amount of promised consideration
and the cash selling price is amortised using an effective interest method over the contract
term. The Group does not adjust the consideration for any effects of a significant financing
component if it expects at contract inception that the period between when the Group
transfers a promised good or service to a customer and when the customer pays for that
good or service will be one year or less.The Group satisfies a performance obligation over time if one of the following criteria is
met; or otherwise a performance obligation is satisfied at a point in time:
- the customer simultaneously receives and consumes the benefits provided by the
Group’s performance as the Group performs;
- the customer can control the asset created or enhanced during the Group’s
performance; or
- the Group’s performance does not create an asset with an alternative use to it and the
Group has an enforceable right to payment for performance completed to date.For performance obligation satisfied over time the Group recognises revenue over time
by measuring the progress towards complete satisfaction of that performance obligation.When the outcome of that performance obligation cannot be measured reasonably but
the Group expects to recover the costs incurred in satisfying the performance obligation
the Group recognises revenue only to the extent of the costs incurred until such time that it
can reasonably measure the outcome of the performance obligation.Page 55BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
For performance obligation satisfied at a point in time the Group recognises revenue at
the point in time at which the customer obtains control of relevant goods or services. To
determine whether a customer has obtained control of goods or services the Group
considers the following indicators:
- the Group has a present right to payment for the goods or services;
- the Group has transferred physical possession of the goods to the customer;
- the Group has transferred the legal title of the goods or the significant risks and rewards
of ownership of the goods to the customer; and
- the customer has accepted the goods or services.The Group determines whether it is a principal or an agent depending on whether it
obtains control of the specified good or service before that good or service is transferred to
a customer. The Group is a principal if it controls the specified good or service before that
good or service is transferred to a customer and recognises revenue in the gross amount
of consideration to which it has received (or receivable). Otherwise the Group is an agent
and recognises revenue in the amount of any fee or commission to which it expects to be
entitled. The fee or commission is the net amount of consideration that the Group retains
after paying the other party the consideration or is the established amount or proportion.For the sale of a product with a right of return the Group recognises revenue when the
Group obtains control of that product in the amount of consideration to which the Group
expects to be entitled in exchange for the product transferred (i.e. excluding the amount of
which expected to be returned) and recognises a refund liability for the products expected
to be returned. Meanwhile an asset is recognised in the amount of carrying amount of the
product expected to be returned less any expected costs to recover those products
(including potential decreases in the value of returned products) and carry forward to cost
in the amount of carrying amount of the transferred products less the above costs. At the
end of each reporting period the Group updates its assessment of future sales return. If
there is any change it is accounted for as a change in accounting estimate.The Group determines whether the licence transfers to a customer either at a point in time
or over time. If all of the following criteria are met revenue is recognised for performance
obligations satisfied over time. Otherwise revenue is recognised for performance
obligations satisfied at a point in time.- the contract requires or the customer reasonably expects that the Group will
undertake activities that significantly affect the intellectual property to which the
customer has rights;
- the rights granted by the licence directly expose the customer to any positive or
negative effects of the Group’s activities; and
- those activities do not result in the transfer of a good or a service to the customer as
those activities occur.The Group recognises revenue for a sales-based or usage-based royalty promised in
exchange for a licence of intellectual property only when (or as) the later of the following
events occurs:
- the subsequent sale or usage occurs; and
- the performance obligation has been satisfied (or partially satisfied)
Page 56BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
For a change in the scope or price of a contract that is approved by the parties to the
contract the Group accounts for the contract modification according to the following
situations:
- The addition of promised goods or services are distinct and the price of the contract
increases by an amount of consideration reflects stand-alone selling prices of the
additional promised goods or services the Group shall account for a contract
modification as a separate contract.- If the above criteria are not met and the remaining goods or services are distinct from
the goods or services transferred on the date of the contract modification the Group
accounts for the contract modification as if it were a termination of the existing contract
and the creation of a new contract.- If the above criteria are not met and the remaining goods or services are not distinct
from the goods or services transferred on the date of the contract modification the
Group accounts for the contract modification as if it were a part of the existing contract.The effect that the contract modification has on the revenue is recognised as an
adjustment to revenue in the reporting period.A contract asset is the Group’s right to consideration in exchange for goods or services
that it has transferred to a customer when that right is conditional on something other than
the passage of time. The Group recognises loss allowances for expected credit loss on
contract assets (see Note III.9(6)). Accounts receivable is the Group’s right to
consideration that is unconditional (only the passage of time is required). A contract
liability is the Group’s obligation to transfer goods or services to a customer for which the
Group has received consideration (or an amount of consideration is due) from the
customer.The following is the description of accounting policies regarding revenue from the Group’s
principal activities:
(1) Sale of goods
The sales contracts/orders signed between the Group and its customers usually
contain various trading terms. Depending on the trading terms customers obtain
control of the goods when the goods are delivered and received or when they are
received by the carrier. Revenue of sale of goods is recognised at that point in time.For the transfer of goods with a right of return revenue is recognised to the extent
that it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur. Therefore the amount of revenue recognised is
adjusted for the amount expected to be returned which are estimated based on the
historical data. The Group recognises a refund liability based on the amount
expected to be returned. An asset is initially measured by reference to the former
carrying amount of the product expected to be returned less any expected costs to
recover those products (including potential decreases in the value to the Group of
returned products). At each balance sheet date the Group updates the
measurement of the refund liability for changes in expectations about the amount of
funds. The above asset and liability are adjusted accordingly.Page 57BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Rendering of services
The Group recognises the revenue from rendering of services within a certain period of
time according to the progress of the performance as the customer simultaneously
receives and consumes the benefits provided by the Group’s performance as the Group
performs. Otherwise for performance obligation satisfied at a point in time the Group
recognises revenue at the point in time at which the customer obtains control of relevant
services.
24 Contract costs
Contract costs are either the incremental costs of obtaining a contract with a customer or
the costs to fulfil a contract with a customer.Incremental costs of obtaining a contract are those costs that the Group incurs to obtain a
contract with a customer that it would not have incurred if the contract had not been
obtained. The Group recognises as an asset the incremental costs of obtaining a contract
with a customer if it expects to recover those costs. Other costs of obtaining a contract are
expensed when incurred.If the costs to fulfil a contract with a customer are not within the scope of inventories or
other accounting standards the Group recognises an asset from the costs incurred to fulfil
a contract only if those costs meet all of the following criteria:
- the costs relate directly to an existing contract or to a specifically identifiable anticipated
contract including direct labour direct materials allocations of overheads (or similar
costs) costs that are explicitly chargeable to the customer and other costs that are
incurred only because the Group entered into the contract
- the costs generate or enhance resources of the Group that will be used in satisfying (or
in continuing to satisfy) performance obligations in the future; and
- the costs are expected to be recovered.Assets recognised for the incremental costs of obtaining a contract and assets recognised
for the costs to fulfil a contract (the “assets related to contract costs”) are amortised on a
systematic basis that is consistent with the transfer to the customer of the goods or
services to which the assets relate and recognised in profit or loss for the current period.The Group recognises an impairment loss in profit or loss to the extent that the carrying
amount of an asset related to contract costs exceeds:
- remaining amount of consideration that the Group expects to receive in exchange for
the goods or services to which the asset relates; less
- the costs that relate directly to providing those goods or services that have not yet been
recognised as expenses.Page 58BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
25 Employee benefits
(1) Short-term employee benefits
Employee wages or salaries bonuses social security contributions such as medical
insurance work injury insurance maternity insurance and housing fund measured at the
amount incurred or accrued at the applicable benchmarks and rates are recognised as a
liability as the employee provides services with a corresponding charge to profit or loss or
included in the cost of assets where appropriate.
(2) Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China the
Group participated in a defined contribution basic pension insurance plan and
unemployment insurance plan in the social insurance system established and managed
by government organisations and annuity plan established by the Group in compliance
with the national policy of the corporation annuity. The Group makes contributions to basic
pension and unemployment insurance plans based on the applicable benchmarks and
rates stipulated by the government. Annuity is accrued based on the gross salaries of the
employees. Basic pension insurance contributions payable are recognised as a liability as
the employee provides services with a corresponding charge to profit or loss or included
in the cost of assets where appropriate.
(3) Post-employment benefits – defined benefit plans
During the reporting period the Group did not have defined benefit plans.
(4) Termination benefits
When the Group terminates the employment with employees before the employment
contracts expire or provides compensation under an offer to encourage employees to
accept voluntary redundancy a provision is recognised with a corresponding expense in
profit or loss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because
of an employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of
termination benefits and has raised a valid expectation in those affected that it will carry
out the restructuring by starting to implement that plan or announcing its main features
to those affected by it.
26 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets from
the government to the Group except for capital contributions from the government in the
capacity as an investor in the Group.A government grant is recognised when there is reasonable assurance that the grant will
be received and that the Group will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the
amount received or receivable. If a government grant is in the form of a transfer of a
non-monetary asset it is measured at fair value.Page 59BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Government grants related to assets are grants whose primary condition is that the Group
qualifying for them should purchase construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets.Those related to daily activities of the Company are included in other income or used to
write off related cost based on the nature of economic businesses or included in
non-operating income and expense in respect of those not related to daily activities of the
Company.With respect to the government grants related to assets if the Group first obtains
government grants related to assets and then recognizes the long-term assets purchased
and constructed deferred income is included in profit and loss based on a reasonable and
systematic approach by stages when related assets are initially depreciated or amortized;
or the deferred income is written off against the carrying amount of the asset when the
asset becomes ready for its intended status or intended use. If the Group obtains
government grants related to the assets after relevant long-term assets are put into use
deferred income is included in profit and loss based on a reasonable and systematic
approach by stages within the remaining useful life of relevant assets or the deferred
income is written off against the carrying amount of relevant asset when the grants are
obtained; the assets shall be depreciated or amortized based on the carrying amount after
being offset and the remaining useful life of relevant assets.A grant that compensates the Group for expenses or losses to be incurred in the future is
recognised as deferred income and included in current income or offset against related
expenses in the periods in which the expenses or losses are recognised. Or included in
current income or offset against the related expenses directly.In respect of the policy-based preferential loan interest subsidy obtained by the Group if
the interest subsidy is appropriated to the lending bank which shall provide loans to the
Group at the policy-based preferential interest rate the actual loan amount is used as the
entry value and relevant borrowing costs are calculated on the basis of the loan principal
and the preferential interest rate. If the interest subsidy is directly appropriated to the
Group relevant borrowing costs shall be offset by corresponding interest subsidy. If
borrowing costs are capitalized as part of the cost of the asset (see Note III. 15) the
interest subsidy shall be used to offset relevant asset costs.
27 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they
relate to a business combination or items recognised directly in equity (including other
comprehensive income).Current tax is the expected tax payable calculated at the applicable tax rate on taxable
income for the year plus any adjustment to tax payable in respect of previous years.At the balance sheet date current tax assets and liabilities are offset only if the Group has
a legally enforceable right to set them off and also intends either to settle on a net basis or
to realise the asset and settle the liability simultaneously.Deferred tax assets and deferred tax liabilities arise from deductible and taxable
temporary differences respectively being the differences between the carrying amounts of
assets and liabilities for financial reporting purposes and their tax bases which include the
deductible losses and tax credits carried forward to subsequent periods. Deferred tax
assets are recognised to the extent that it is probable that future taxable profits will be
available against which deductible temporary differences can be utilised.Page 60BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Deferred tax is not recognised for the temporary differences arising from the initial
recognition of assets or liabilities in a transaction that is not a business combination and
that affects neither accounting profit nor taxable profit (or deductible loss). Deferred tax is
not recognised for taxable temporary differences arising from the initial recognition of
goodwill.At the balance sheet date deferred tax is measured based on the tax consequences that
would follow from the expected manner of recovery or settlement of the carrying amounts
of the assets and liabilities using tax rates enacted at the balance sheet date that are
expected to be applied in the period when the asset is recovered or the liability is settled.The carrying amount of a deferred tax asset is reviewed at each balance sheet date and
is reduced to the extent that it is no longer probable that the related tax benefits will be
utilised. Such reduction is reversed to the extent that it becomes probable that sufficient
taxable profits will be available.At the balance sheet date deferred tax assets and deferred tax liabilities are offset if all of
the following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and
current tax assets;
- they relate to income taxes levied by the same tax authority on either:
- the same taxable entity; or
- different taxable entities which intend either to settle the current tax liabilities and
current tax assets on a net basis or to realise the assets and settle the liabilities
simultaneously in each future period in which significant amounts of deferred tax
liabilities or deferred tax assets are expected to be settled or recovered.
28 Leases
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.At inception of a contract the Group assesses whether a contract is or contains a lease.A contract is or contains a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.To assess whether a contract conveys the right to control the use of an identified asset
the Group assesses whether:
- the contract involves the use of an identified asset. An identified asset may be specified
explicitly or implicitly specified in a contract and should be physically distinct or
capacity portion or other portion of an asset that is not physically distinct but it
represents substantially all of the capacity of the asset and thereby provides the
customer with the right to obtain substantially all of the economic benefits from the use
of the asset. If the supplier has a substantive substitution right throughout the period of
use then the asset is not identified;
- the lessee has the right to obtain substantially all of the economic benefits from use of
the asset throughout the period of use;
- the lessee has the right to direct the use of the asset.For a contract that contains more separate lease components the lessee and the lessor
separate lease components and account for each lease component as a lease separately.For a contract that contains lease and non-lease components the lessee and the lessor
Page 61BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
separate lease components from non-lease components. For a contract that contains
lease and non-lease components the lessee allocates the consideration in the contract to
each lease component on the basis of the relative stand-alone price of the lease
component and the aggregate stand-alone price of the non-lease components. The lessor
allocates the consideration in the contract in accordance with the accounting policy in Note
III.23.
(1) As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost which comprises
the initial amount of the lease liability any lease payments made at or before the
commencement date (less any lease incentives received) any initial direct costs incurred
and an estimate of costs to dismantle and remove the underlying asset or to restore the
site on which it is located or restore the underlying asset to the condition required by the
terms and conditions of the lease.The right-of-use asset is depreciated using the straight-line method. If the lessee is
reasonably certain to exercise a purchase option by the end of the lease term the
right-of-use asset is depreciated over the remaining useful lives of the underlying asset.Otherwise the right-of-use asset is depreciated from the commencement date to the
earlier of the end of the useful life of the right-of-use asset or the end of the lease term.Impairment losses of right-of-use assets are accounted for in accordance with the
accounting policy described in Note III.19.The lease liability is initially measured at the present value of the lease payments that are
not paid at the commencement date discounted using the interest rate implicit in the lease
or if that rate cannot be readily determined the Group’s incremental borrowing rate.A constant periodic rate is used to calculate the interest on the lease liability in each period
during the lease term with a corresponding charge to profit or loss or included in the cost
of assets where appropriate. Variable lease payments not included in the measurement of
the lease liability is charged to profit or loss or included in the cost of assets where
appropriate as incurred.Under the following circumstances after the commencement date the Group remeasures
lease liabilities based on the present value of revised lease payments:
- there is a change in the amounts expected to be payable under a residual value
guarantee;
- there is a change in future lease payments resulting from a change in an index or a rate
used to determine those payments;
- there is a change in the assessment of whether the Group will exercise a purchase
extension or termination option or there is a change in the exercise of the extension or
termination option.When the lease liability is remeasured a corresponding adjustment is made to the
carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying
amount of the right-of-use asset has been reduced to zero.The Group has elected not to recognise right-of-use assets and lease liabilities for
short-term leases that have a lease term of 12 months or less and leases of low-value
assets. The Group recognises the lease payments associated with these leases in profit or
loss or as the cost of the assets where appropriate using the straight-line method or other
systematic basis over the lease term.Page 62BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) As a lessor
The Group determines at lease inception whether each lease is a finance lease or an
operating lease. A lease is classified as a finance lease if it transfers substantially all the
risks and rewards incidental to ownership of an underlying asset irrespective of whether
the legal title to the asset is eventually transferred. An operating lease is a lease other
than a finance lease.When the Group is a sub-lessor it assesses the lease classification of a sub-lease with
reference to the right-of-use asset arising from the head lease not with reference to the
underlying asset. If a head lease is a short-term lease to which the Group applies practical
expedient described above then it classifies the sub-lease as an operating lease.Under a finance lease at the commencement date the Group recognises the finance
lease receivable and derecognises the finance lease asset. The finance lease receivable
is initially measured at an amount equal to the net investment in the lease. The net
investment in the lease is measured at the aggregate of the unguaranteed residual value
and the present value of the lease receivable that are not received at the commencement
date discounted using the interest rate implicit in the lease.The Group calculates and recognises interest income for each period of the lease term
based on a fixed periodic interest rate. The derecognition and impairment of the finance
lease receivable are recognised in accordance with the accounting policy in Note III.9.Variable lease payments not included in the measurement of net investment in the lease
are recognised as income as they are earned.Lease receipts from operating leases is recognised as income using the straight-line
method or other systematic basis over the lease term. The initial direct costs incurred in
respect of the operating lease are initially capitalised and subsequently amortised in profit
or loss over the lease term on the same basis as the lease income. Variable lease
payments not included in lease receipts are recognised as income as they are earned.
29 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when the
carrying amount of a non-current asset or disposal group will be recovered through a sale
transaction rather than through continuing use.A disposal group refers to a group of assets to be disposed of by sale or otherwise
together as a whole in a single transaction and liabilities directly associated with those
assets that will be transferred in the transaction.A non-current asset or disposal group is classified as held for sale when all the following
criteria are met:
- According to the customary practices of selling such asset or disposal group in similar
transactions the non-current asset or disposal group must be available for immediate
sale in their present condition subject to terms that are usual and customary for sales of
such assets or disposal groups;
- Its sale is highly probable that is the Group has made a resolution on a sale plan and
has obtained a firm purchase commitment. The sale is to be completed within one year.Non-current assets or disposal groups held for sale are stated at the lower of carrying
amount and fair value (see Note III.20) less costs to sell (except financial assets (see note
Page 63BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
III.9) deferred tax assets (see note III.27) . Any excess of the carrying amount over the fair
value (see Note III.20) less costs to sell is recognised as an impairment loss in profit or
loss.
30 Hedge accounting
Hedge accounting is a method which recognises in profit or loss (or other comprehensive
income) the gain or loss on the hedging instrument and the hedged item in the same
accounting period(s) to represent the effect of risk management.Hedged items are items that expose the Group to risks of changes in fair value or cash
flows and that are designated as being hedged and can be reliably measured. The
Group’s hedged items include a firm commitment that is settled with a fixed amount of
foreign currency and that exposes the Group to foreign currency risk.A hedging instrument is a designated financial instrument whose changes in fair value or
cash flows are expected to offset changes in the fair value or cash flows of the hedged
item. For a hedge of foreign currency risk the foreign currency risk component of a
non-derivative financial asset or non-derivative financial liability may also be designated
as a hedging instrument provided that it is not an investment in an equity instrument for
which an entity has elected to present changes in the fair value in other comprehensive
income.The Group assesses at the inception of a hedging relationship and on an ongoing basis
whether the hedging relationship meets the hedge effectiveness requirements. A hedging
relationship is regarded as having met the hedge effectiveness requirements if all of the
following conditions are satisfied:
- There is an economic relationship between the hedged item and the hedging
instrument.- The effect of credit risk does not dominate the value changes that result from the
economic relationship.- The hedge ratio of the hedging relationship is the same as that resulting from the
quantity of the hedged item that the entity actually hedges and the quantity of the
hedging instrument that the entity actually uses to hedge that quantity of the hedged
item.When a hedging relationship no longer meets the hedge effectiveness requirements due
to the hedge ratio but the risk management objective of the designated hedging
relationship remains unchanged the Group rebalances the hedging relationship.Rebalancing refers to the adjustments made to the designated quantities of the hedged
item or the hedging instrument of an already existing hedging relationship for the purpose
of maintaining a hedge ratio that complies with the hedge effectiveness requirements.The Group discontinues applying hedge accounting in any of the following circumstances:
- The hedging relationship no longer meets the risk management objective on the basis
of which it qualified for hedge accounting.- The hedging instrument expires or is sold terminated or exercised.- There is no longer an economic relationship between the hedged item and the hedging
instrument or the effect of credit risk starts to dominate the value changes that result
from that economic relationship.- The hedging relationship no longer meets other criteria for applying hedge accounting.Page 64BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Cash flow hedges
A cash flow hedge is a hedge of the exposure to variability in cash flows. The portion of
the gain or loss on a hedging instrument that is determined to be an effective hedge is
recognised in other comprehensive income as a cash flow hedge reserve. The amount of
the cash flow hedge reserve is adjusted to the lower of the following (in absolute
amounts):
- the cumulative gain or loss on the hedging instrument from inception of the hedge;
- the cumulative change in present value of the expected future cash flows on the
hedged item from inception of the hedge.The change in the amount of the cash flow hedge reserve is recognised in other
comprehensive income in each period.The portion of the gain or loss on the hedging instrument that is determined to be
ineffectiveness is recognised in profit or loss.If a hedged forecast transaction subsequently results in the recognition of a non-financial
asset or non-financial liability or a hedged forecast transaction for a non-financial asset or
non-financial liability becomes a firm commitment for which fair value hedge accounting is
applied the Group removes that amount from the cash flow hedge reserve and includes it
in the initial cost or other carrying amount of the asset or liability.For cash flow hedges other than those covered above that amount is reclassified from the
cash flow hedge reserve to profit or loss as a reclassification adjustment in the same
period or periods during which the hedged expected future cash flows affect profit or loss.When the Group discontinues hedge accounting for a cash flow hedge the amount of the
accumulated cash flow hedge reserve recognised in other comprehensive income is
accounted for as follows:
- If the hedged future cash flows are still expected to occur that amount will remain in the
cash flow hedge reserve and be accounted for in accordance with the above policy.- If the hedged future cash flows are no longer expected to occur that amount is
immediately reclassified from the cash flow hedge reserve to profit or loss as a
reclassification adjustment.
31 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan which will be
approved after the balance sheet date are not recognised as a liability at the balance
sheet date but are disclosed in the notes separately.
32 Related parties
If a party has the power to control jointly control or exercise significant influence over
another party or vice versa or where two or more parties are subject to common control
or joint control from another party they are considered to be related parties. Related
parties may be individuals or enterprises. Enterprises with which the Company is under
common control only from the State and that have no other related party relationships are
not regarded as related parties.Page 65BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
In addition to the related parties stated above the Company determines related parties
based on the disclosure requirements of Administrative Procedures on the Information
Disclosures of Listed Companies issued by the CSRC.
33 Segment reporting
Reportable segments are identified based on operating segments which are determined
based on the structure of the Group’s internal organisation management requirements
and internal reporting system after taking the materiality principle into account. Two or
more operating segments may be aggregated into a single operating segment if the
segments have the similar economic characteristics and are same or similar in respect of
the nature of each segment’s products and services the nature of production processes
the types or classes of customers for the products and services the methods used to
distribute the products or provide the services and the nature of the regulatory
environment.Inter-segment revenues are measured on the basis of the actual transaction prices for
such transactions for segment reporting. Segment accounting policies are consistent with
those for the consolidated financial statements.
34 Significant accounting estimates and judgements
The preparation of the financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets liabilities income and expenses. Actual results may differ from these estimates.Estimates as well as underlying assumptions and uncertainties involved are reviewed on
an ongoing basis. Revisions to accounting estimates are recognised in the period in which
the estimate is revised and in any future periods affected.Except for accounting estimates relating to depreciation and amortisation of assets such
as fixed assets and intangible assets (see Notes III.13 and 16) and provision for
impairment of various types of assets (see Notes V.4 6 7 811 15 16 17 and18 and
Notes XVI.235 and 6). Other significant accounting estimates are as follows:
(i) Note V.20 Recognition of deferred tax assets;
(ii) Note V.31: Warranty provisions;
(iii) Note IX. – Fair value measurements of financial instruments; and
(iv) Note XI: Share-based payments.Significant judgements made by the Group in the application of accounting policies are as
follows:
(i) Note VII. 1(1) –Disclosure of significant judgements and assumptions of control and
exercising significant influence over other entities.Page 66BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
35 Changes in accounting policies
(1) Description and reasons of changes in accounting policies
In 2021 the Group has adopted the following accounting standards and implementation
guidance and illustrative examples issued by the MOF mainly include:
- CAS No.21 – Leases (Revised) (Caikuai [2018] No.35)(“New leases standard”)
- The Accounting Treatment of COVID-19 Related Rent Concessions (Caikuai [2020]
No.10) and Notice of Extending the Applicable Period of ‘Accounting Treatment of
COVID-19 Related Rent Concessions’ (Caikuai [2021] No.9)
- Implementation Q&As of fixed asset repair and maintenance expenses
(a) New standard on leases
New leases standard has revised CAS No.21 – Leases issued by the MOF in 2006
(“previous leases standard”). The Group has applied new leases standard since 01
January 2021 and has adjusted the related accounting policies.New leases standard refines the definition of a lease. The Group assesses whether
a contract is or contains a lease in accordance with the definition in new leases
standard. For contracts existed before the date of initial application the Group has
elected not to reassess whether a contract is or contains a lease at the date of initial
application and surplus.As a lessee
Under previous leases standard the Group classifies leases as operating or
finance leases based on its assessment of whether the lease transfers
significantly all of the risks and rewards incidental to ownership of the underlying
asset to the Group.Under new leases standard the Group no longer distinguishes between
operating leases and finance leases. The Group recognises right-of-use assets
and lease liabilities for all leases (except for short-term leases and leases of
low-value assets which are accounted for using practical expedient).For a contract that contains lease and non-lease components the Group
allocates the consideration in the contract to each lease component on the
basis of the relative stand-alone price of the lease component and the
aggregate stand-alone price of the non-lease components.The Group has elected to recognise the cumulative effect of adopting new
leases standard as an adjustment to the opening balances of retained earnings
and other related items in the financial statement in the initial year of application.Comparative information has not been restated.For leases classified as operating leases before the date of initial application
lease liabilities were measured at the present value of the remaining lease
payments discounted using the Group’s incremental borrowing rate at the date
of initial application. Right-of-use assets are measured at:
- an amount equal to the lease liability adjusted by the amount of any prepaid
lease payments – the Group applied this approach to all leases.Page 67BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
The Group also uses the following practical expedients to account for leases
classified as operating leases before the date of initial application:
- accounted for the leases for which the lease term ends within 12 months of
the date of initial application as short-term leases;
- applied a single discount rate to leases with similar characteristics when
measuring lease liabilities;
- determined the lease term according to the actual implementation or other
updates of options before the date of initial application if the contract contains
options to extend or terminate the lease;
- accounted for lease modifications before the initial year of application
according to the final arrangement of the change under new leases standard
without retrospective adjustments.For leases classified as finance leases before the date of initial application the
right-of-use asset and the lease liability are measured at the original carrying
amount of the assets under finance lease and obligations under finance leases
at the date of initial application.As a lessor
The Group is not required to make any adjustments to the opening balances of
retained earnings and other related items in the financial statements in the initial
year of application and surplus for leases for which it acts as a lessor. The
Group has applied new leases standard since the date of initial application.The Group applies the requirements of transaction price allocation under the
new revenue standard to allocate consideration in the contract to each lease
and non-lease component under new leases standard.Effect of the application of new leases standard since 1 January 2021 on
financial statements
When measuring lease liabilities the Group discounted lease payments using
its incremental borrowing rate at 1 January 2021. The weighted average interest
rate used by the Group is 4.62%.Page 68BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
The effects on each of the line items in the consolidated balance sheet and company
balance sheet as a1 January 2020 are analysed as follows:
? The Group
? 31 December 2020 ? 1 January 2021 ? Adjustments
Assets ? ? ? ? ?
??????
Current assets: ? ? ? ? ?
Cash at bank and on hand 73694296095 ? 73694296095 ? -
Financial assets held for trading 4367201833 ? 4367201833 ? -
Bills receivable 215994373 ? 215994373 ? -
Accounts receivable 22969140355 ? 22969140355 ? -
Prepayments 1119595984 ? 1104522441 ? (15073543)
Other receivables 658114833 ? 658114833 ? -
Inventories 17875454490 ? 17875454490 ? -
Contract assets 49897395 ? 49897395 ? -
Assets held for sale 186892645 ? 186892645 ? -
Other current assets 7848869252 ? 7848869252 ? -
??????
Total current assets 128985457255 ? 128970383712 ? (15073543)
??????
Non-current assets: ? ? ? ? ?
??????
Long-term equity investments 3693170224 ? 3693170224 ? -
Investments in other equity instruments 533645423 ? 533645423 ? -
Investment properties 1196168511 ? 1196168511 ? -
Fixed assets 224866586069 ? 224770354605 ? (96231464)
Construction in progress 42575849952 ? 42575849952 ? -
Right-of-use assets - ? 618678956 ? 618678956
Intangible assets 11875926448 ? 11875926448 ? -
Goodwill 1400357242 ? 1400357242 ? -
Long-term deferred expenses 299634100 ? 285653485 ? (13980615)
Deferred tax assets 205041088 ? 205041088 ? -
Other non-current assets 8624970019 ? 8624970019 ? -
??????
Total non-current assets 295271349076 ? 295779815953 ? 508466877
??????
????????????
Total assets 424256806331 ? 424750199665 ? 493393334
??
Page 69BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
? The Group
? 31 December 2020 ? 1 January 2021 ? Adjustments
Liabilities and shareholders’ equity ? ? ? ? ?
??????
Current liabilities ? ? ? ? ?
Short-term loans 8599569471 ? 8599569471 ? -
Bills payable 1231533895 ? 1231533895 ? -
Accounts payable 27164171682 ? 27164171682 ? -
Advance payments received 124040749 ? 124040749 ? -
Contract liabilities 3440720535 ? 3440720535 ? -
Employee benefits payable 3758623797 ? 3758623797 ? -
Taxes payable 1077686869 ? 1077686869 ? -
Other payables 32867709024 ? 32867709024 ? -
Non-current liabilities due within one year 24500550121 ? 24546750328 ? 46200207
Other current liabilities 2194716852 ? 2194716852 ? -
??????
Total current liabilities 104959322995 ? 105005523202 ? 46200207
??????
Non-current liabilities: ? ? ? ? ?
Long-term loans 132452767135 ? 132452767135 ? -
Debentures payable 398971739 ? 398971739 ? -
Lease liabilities - ? 549031243 ? 549031243
Long-term payables 2114175683 ? 2012337567 ? (101838116)
Deferred income 4246231468 ? 4246231468 ? -
Deferred tax liabilities 1427601154 ? 1427601154 ? -
Other non-current liabilities 5260001443 ? 5260001443 ? -
??????
Total non-current liabilities 145899748622 ? 146346941749 ? 447193127
??????
??????
Total liabilities 250859071617 ? 251352464951 ? 493393334
????????????
Shareholders’ equity: ? ? ? ? ?
Share capital 34798398763 ? 34798398763 ? -
Other equity instruments 14146997427 ? 14146997427 ? -
Capital reserve 37435655934 ? 37435655934 ? -
Less: Treasury shares 1036298508 ? 1036298508 ? -
Other comprehensive income for the year (22198072) ? (22198072) ? -
Surplus reserve 2444416669 ? 2444416669 ? -
Retained earnings 15509794622 ? 15509794622 ? ?
??????
Total equity attributable to shareholders of the
Company 103276766835 ? 103276766835 ? -
??????
Non-controlling interests 70120967879 ? 70120967879 ? -
??????
Total 173397734714 ? 173397734714 ? -
??????
??????
Total liabilities and shareholders’ equity 424256806331 ? 424750199665 ? 493393334
??
Page 70BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
? The Company
? 31 December 2020 ? 1 January 2021 ? Adjustments
Assets ? ? ? ? ?
??????
Current assets: ? ? ? ? ?
Cash at bank and on hand 4375497010 ? 4375497010 ? -
Accounts receivable 3974212308 ? 3974212308 ? -
Prepayments 12185651 ? 12185651 ? -
Other receivables 16345474583 ? 16345474583 ? -
Inventories 18622283 ? 18622283 ? -
Other current assets 177761718 ? 177761718 ? -
??????
Total current assets 24903753553 ? 24903753553 ? -
??????
Non-current assets: ? ? ? ? ?
??????
Long-term equity investments 182135057208 ? 182135057208 ? -
Investments in other equity instruments 81192872 ? 81192872 ? -
Investment properties 271212241 ? 271212241 ? -
Fixed assets 1009178229 ? 1002750947 ? (6427282)
Right-of-use assets - ? 6427282 ? 6427282
Construction in progress 418343961 ? 418343961 ? ?
Intangible assets 1380069827 ? 1380069827 ? -
Long-term deferred expenses 105439681 ? 105439681 ? -
Other non-current assets 2611437988 ? 2611437988 ? -
??????
Total non-current assets 188011932007 ? 188011932007 ? -
??????
??????
Total assets 212915685560 ? 212915685560 ? -
??
Page 71BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
? The Company
? 31 December 2020 ? 1 January 2021 ? Adjustments
Liabilities and shareholders’ equity ? ? ? ? ?
??????
Current liabilities ? ? ? ? ?
Accounts payable 272241469 ? 272241469 ? -
Advance payments received 18286458 ? 18286458 ? -
Employee benefits payable 516060153 ? 516060153 ? -
Taxes payable 87179892 ? 87179892 ? -
Other payables 6541918681 ? 6541918681 ? -
Non-current liabilities due within one year 7847210073 ? 7847210073 ? -
Other current liabilities 1977977 ? 1977977 ? -
??????
Total current liabilities 15284874703 ? 15284874703 ? -
??????
Non-current liabilities: ? ? ? ? ?
Long-term loans 38360714121 ? 38360714121 ? -
Deferred income 3633342446 ? 3633342446 ? -
Deferred tax liabilities 385697604 ? 385697604 ? ?
Other non-current liabilities 56156661805 ? 56156661805 ? -
??????
Total non-current liabilities 98536415976 ? 98536415976 ? -
??????
??????
Total liabilities 113821290679 ? 113821290679 ? -
????????????
Shareholders’ equity: ? ? ? ? ?
Share capital 34798398763 ? 34798398763 ? -
Other equity instruments 14146997427 ? 14146997427 ? -
Capital reserve 36696079366 ? 36696079366 ? -
Less: Treasury shares 1036298508 ? 1036298508 ? ?
Other comprehensive income for the year 90713133 ? 90713133 ? -
Surplus reserve 2444416669 ? 2444416669 ? -
Retained earnings 11954088031 ? 11954088031 ? -
??????
Total 99094394881 ? 99094394881 ? -
??????
??????
Total liabilities and shareholders’ equity 212915685560 ? 212915685560 ? -
??
Page 72BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(b) Caikuai [2020] No.10 and Caikuai [2021] No.9
The Accounting Treatment of COVID-19 Related Rent Concessions Caikuai [2020] No.10
provides a practical expedient under certain conditions for rent concessions occurring as a
direct consequence of the Covid-19 pandemic. If an entity elects to apply the practical
expedient the entity does not need to assess whether a lease modification has occurred
or to reassess the lease classification. Combining the requirements of Caikuai [2021]
No.9 such practical expedient is only applicable to any reduction in lease payments due
before 30 June 2022.The adoption of the above regulations does not have significant effect on the financial
position and financial performance of the Group.(c) Presentation of fixed asset repair and maintenance expenses and transportation costs
(i) Presentation of fixed asset repair and maintenance expenses
The routine fixed assets repair and maintenance expenses relating to production and
processing activities that do not qualify for capitalisation as subsequent expenditures on
fixed assets were directly recognised as "general and administrative expenses".According to the implementation question and answer on fixed asset repair and
maintenance expenses issued by the MOF the above repair and maintenance expenses
should be recognised in profit and loss according to their functions or capitalised as the
costs of relevant asset when incurred. Repair and maintenance expenses relating to the
production and conversion of inventories are accounted for in accordance with the
recognition principle of inventory costs. The Group has applied the above changes in
accounting policies retrospectively.(ii) Effects on financial reports
There are no effects on each of the line items in the consolidated balance sheet and
company balance sheet as at 31 December 2021.The effects on each of the line items in the consolidated income statement and company
income statement as at 31 December 2021 are analysed as follows:
Increase/(decrease)
in the line items as a
result of applying
new accounting
policies
The Group
Operating costs 2254438484
Selling and distribution expenses 812078
General and administrative expenses (2276273447)
Research and development expenses 21022885
Profit before income tax -
Less: Income tax expenses -
Net profit -
Attributable to: Shareholders of the Company -
Non-controlling interests -
??
Page 73BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
There are no effects on each of the line items in the consolidated balance sheet and
company balance sheet as at 31 December 2020 and 1 January 2020.The effects on each of the line items in the consolidated income statement and company
income statement as at 31 December 2020 are analysed as follows:
Increase/(decreas
e) in the line items
as a result of
applying new
accounting
policies
The Group
Operating costs 1586759448
Selling and distribution expenses 564645
General and administrative expenses (1603328879)
Research and development expenses 16004786
Profit before income tax -
Less: Income tax expenses -
Net profit -
Attributable to: Shareholders of the Company -
Non-controlling interests -
??
Page 74BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
IV. Taxation
1 Main types of taxes and corresponding tax rates
Tax type ? Tax basis ? Tax rate
?????
Output VAT is calculated on product sales and taxable
Value-added tax
services revenue. The basis for VAT payable is to 6% 9% 13%
(VAT)
? deduct input VAT from the output VAT for the period ?
City maintenance
Based on VAT paid VAT exemption and offset for the
and construction 7% 5%
period
tax ? ?
Education
surcharges and Based on VAT paid VAT exemption and offset for the
?3%2%
local education period
surcharges ?
Corporate income
Based on taxable profits 15% - 30%
tax ? ?
???
2 Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2020: 15%).Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatment No.
28 corporate income tax for key advanced and high-tech enterprises supported by the State
is applicable to a preferential tax rate of 15%.On 2 December 2020 the Company renewed the High-tech Enterprise Certificate No.GR202011004594 which was entitled jointly by Beijing Municipal Science and Technology
Commission Beijing Municipal Financial Bureau Beijing Municipal Tax Service State
Taxation Administration. The Company is subject to corporate income tax rate of 15% since
the date of certification with the valid period of three years.The income tax rate applicable to other subsidiaries of the Group is 25% other than the
following subsidiaries and the overseas subsidiaries which subject to the local income tax
rate.The subsidiaries that are entitled to preferential tax treatments are as follows:
Preferenti
Company name al rate ? Reason
????
Beijing BOE Optoelectronics Technology Co. Ltd. (BOE
OT) 15% ? High-tech Enterprise
Chengdu BOE Optoelectronics Technology Co. Ltd.
(Chengdu Optoelectronics) 15% ? High-tech Enterprise
Hefei BOE Optoelectronics Technology Co. Ltd. (Hefei
BOE) 15% ? High-tech Enterprise
Beijing BOE Display Technology Co. Ltd. (BOE Display) 15% ? High-tech Enterprise
Hefei Xinsheng Optoelectronics Technology Co. Ltd.(Hefei Xinsheng) 15% ? High-tech Enterprise
Ordos Yuansheng Optoelectronics Co. Ltd. (Yuansheng 15% ? High-tech Enterprise
Page 75BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Optoelectronics)
Chongqing BOE Optoelectronics Co. Ltd. (Chongqing Encouraged enterprise
BOE) 15% ? in Western Regions
BOE (Hebei) Mobile Technology Co. Ltd. (BOE Hebei) 15% ? High-tech Enterprise
BOE Optical Science and technology Co. Ltd. (Optical
Technology) 15% ? High-tech Enterprise
Beijing BOE CHATANI Electronics Co. Ltd. (Beijing
CHATANI) 15% ? High-tech Enterprise
Hefei BOE Display Lighting Co. Ltd. (Hefei Display
Lighting) 15% ? High-tech Enterprise
Chongqing BOE Display Lighting Co. Ltd. (Chongqing Encouraged enterprise
Display Lighting) 15% ? in Western Regions
Beijing Smart-aero Display Technology Co. Ltd.(Smart-aero) 15% ? High-tech Enterprise
Beijing BOE Vacuum Electronics Co. Ltd. (Vacuum
Electronics) 15% ? High-tech Enterprise
Beijing BOE Vacuum Technology Co. Ltd. (Vacuum
Technology) 15% ? High-tech Enterprise
Beijing BOE Energy Technology Co. Ltd. (BOE Energy) 15% ? High-tech Enterprise
Fuzhou BOE Optoelectronics Technology Co. Ltd.
(Fuzhou BOE) 15% ? High-tech Enterprise
Hefei BOE Display Technology Co. Ltd.(Hefei Technology) 15% ? High-tech Enterprise
Mianyang BOE Optoelectronics Technology Co. Ltd.(Mianyang BOE) 15% ? High-tech Enterprise
BOE Wisdom IOT Technology Co. Ltd. (Wisdom IOT) 15% ? High-tech Enterprise
K-Tronics (Suzhou) Technology Co. Ltd. (Suzhou
K-Tronics) 15% ? High-tech Enterprise
Beijing BOE Sensing Technology Co. Ltd. (Sensing
Technology) 15% ? High-tech Enterprise
Chongqing BOE Smart Electronic System Co. Ltd. Encouraged enterprise
(Chongqing Smart Electronic) 15% ? in Western Regions
Beijing BOE Health Technology Co. Ltd. (Health
Technology) 15% ? High-tech Enterprise
Chongqing BOE Electronic Technology Co. Ltd. Encouraged enterprise
(Chongqing Electronic Technology) 15% ? in Western Regions
Wuhan BOE Optoelectronics Technology Co. Ltd.(Wuhan BOE) 15% ? High-tech Enterprise
Nanjing BOE Display Technology Co. Ltd.(Nanjing Technology) 15% ? High-tech Enterprise
Chengdu CEC Panda Display Technology Co. Ltd.
(Chengdu CEC Panda) 15% ? High-tech Enterprise
BOE Regenerative Medical Technology Co. Ltd.(Regenerative Medical) 15% ? High-tech Enterprise
Beijing Zhongxiangying Technology Co. Ltd. (Beijing
Zhongxiangying) 15% ? High-tech Enterprise
Chengdu BOE Intelligent Technology Co. Ltd. Encouraged enterprise
(Chengdu Intelligent Technology) 15% ? in Western Regions
Yunnan Invensight Optoelectronics Technology Co. Ltd.(Yunnan Invensight) 15% ? High-tech Enterprise
???
V. Notes to the consolidated financial statements
Page 76BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
1 Cash at bank and on hand
?2021?2020
Amount in RMB/RMB Amount in RMB/RMB
? original currency ? Exchange rate ? equivalents ? original currency ? Exchange rate ? equivalents
????????????
Cash on hand ? ? ? ? ? ? ? ? ? ? ?
RMB ? ? ? ? 336429 ? ? ? ? ? 277055
USD 1480 ? 6.3757 ? 9438 ? 1493 ? 6.5249 ? 9741
HKD 35673 ? 0.8176 ? 29166 ? 55494 ? 0.8416 ? 46706
JPY 528014 ? 0.0554 ? 29252 ? 58474 ? 0.0632 ? 3698
KRW 70185 ? 0.0054 ? 379 ? 490445 ? 0.0060 ? 2941
Other foreign currencies ? ? ? ? 47311 ? ? ? ? ? 60900
????????????
Sub-total ? ? ? ? 451975 ? ? ? ? ? 401041
????????????
Bank deposits ? ? ? ? ? ? ? ? ? ? ?
RMB ? ? ? ? 51889193811 ? ? ? ? ? 39618620160
USD 3615879387 ? 6.3757 ? 23053762209 ? 4051241539 ? 6.5249 ? 26433945919
HKD 9520528 ? 0.8176 ? 7783984 ? 21037675 ? 0.8416 ? 17706149
JPY 13848652635 ? 0.0554 ? 767215356 ? 15628343064 ? 0.0632 ? 988273902
KRW 1094268704 ? 0.0054 ? 5909051 ? 521128601 ? 0.0060 ? 3125209
EUR 135902777 ? 7.2197 ? 981177279 ? 136705809 ? 8.0250 ? 1097064115
Other foreign currencies ? ? ? ? 55392165 ? ? ? ? ? 46443965
????????????
Sub-total ? ? ? ? 76760433855 ? ? ? ? ? 68205179419
????????????
Other monetary funds ? ? ? ? ? ? ? ? ? ? ?
RMB ? ? ? ? 3857498365 ? ? ? ? ? 3949848676
USD 49772132 ? 6.3757 ? 317332183 ? 218704451 ? 6.5249 ? 1427024669
HKD 7 ? 0.8176 ? 6 ? 15 ? 0.8416 ? 13
JPY 922720289 ? 0.0554 ? 51118704 ? 1769656282 ? 0.0632 ? 111842277
????????????
Sub-total ? ? ? ? 4225949258 ? ? ? ? ? 5488715635
????????????
Total ? ? ? ? 80986835088 ? ? ? ? ? 73694296095
???
Including: Total overseas deposits were equivalent to RMB 7197634319 (2020: RMB
7025632935).
As at 31 December 2021 other monetary funds included deposits with securities companies
by the Group amounting to RMB 73244093 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 91976204 was pledged for
issuance of bills payable and an equivalent to RMB 4060728961 was mainly deposits in
commercial banks as security.As at 31 December 2020 other monetary funds were pledged by the Group amounting to
RMB 99133679 for long-term loans and USD 152091672 were pledged for short-term
loans. The rest of other restricted monetary funds amounting to RMB 4396583003 were
the deposits in commercial banks as security.Page 77BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
2 Financial assets held for trading
31 December 31 December
Item 2021 ? 2020
????
Financial assets at fair value through profit or loss ? ? ?
- Structured deposit and wealth management
products 10028172853 ? 4367201833
???
3 Bills receivable
(1) Classification of bills receivable
31 December 31 December
Item ? 2021 ? 2020
?????
Bank acceptance bills ? 217734298 ? 215994373
?????
Total ? 217734298 ? 215994373
???
All of the above bills are due within one year.
(2) The pledged bills receivable of the Group at the end of the year
As at 31 December 2021 the amount of the Group’s pledged bills was RMB 8441900 (2020:
Nil).
(3) Outstanding endorsed or discounted bills that have not matured at the end of the year
Amount Amount not
Item ? derecognised ? derecognised
as at 31 as at 31
? ? December 2021 ? December 2021
?????
Bank acceptance bills ? 130058540 ? 15460955
?????
Total ? 130058540 ? 15460955
???
For the year ended 31 December 2021 there was no amount transferred to accounts
receivable from bills receivable due to non-performance of the issuers of the Group (2020:
Nil).Page 78BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
4 Accounts receivable
(1) The Group’s accounts receivable by customer type:
31 December 31 December
Item ? 2021 ? 2020
?????
Amounts due from related parties ? 88954909 ? 38773536
Amounts due from other customers ? 35496227051 ? 22988229841
?????
Sub-total ? 35585181960 ? 23027003377
?????
Less: Provision for bad and doubtful
debts ? 81767140 ? 57863022
?????
Total ? 35503414820 ? 22969140355
???
(2) The Group’s accounts receivable by currency type:
?2021?2020
Amount in Amount in
original RMB/RMB original RMB/RMB
? currency ? Exchange rate ? equivalents ? currency ? Exchange rate ? equivalents
????????????
RMB ? ? ? ? 12064153278 ? ? ? ? ? 8322396079
USD 3551733364 ? 6.3757 ? 22644786409 ? 2136679897 ? 6.5249 ? 13941622660
JPY 1985544 ? 0.0554 ? 109999 ? 36855786 ? 0.0632 ? 2329286
Other foreign currencies ? ? ? ? 876132274 ? ? ? ? ? 760655352
????????????
Sub-total ? ? ? ? 35585181960 ? ? ? ? ? 23027003377
????????????
Less: Provision for bad and doubtful
debts ? ? ? ? 81767140 ? ? ? ? ? 57863022
????????????
Total ? ? ? ? 35503414820 ? ? ? ? ? 22969140355
???
Page 79BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(3) The ageing analysis of accounts receivable is as follows:
31 December 31 December
??2021?2020
?????
Within 1 year (inclusive) ? 35052439412 ? 22515188628
Over 1 year but within 2 years (inclusive) ? 190180631 ? 256800012
Over 2 years but within 3 years (inclusive) ? 181687107 ? 172351904
Over 3 years ? 160874810 ? 82662833
?????
Sub-total ? 35585181960 ? 23027003377
?????
Less: Provision for bad and doubtful
debts ? 81767140 ? 57863022
?????
Total ? 35503414820 ? 22969140355
???
The ageing is counted starting from the date when accounts receivable are recognised.
(4) Accounts receivable by provisioning method
? 31 December 2021
? Book value ? Provision for impairment ? ?
Percentage Percentage
Category Amount ? (%) ? Amount ? (%) ? Carrying amount
??????????
Individual assessment ? ? ? ? ? ? ? ? ?
- Customers with high credit risk 66060901 ? 0% ? 46406137 ? 70% ? 19654764
- Customers with low credit risk 1209167604 ? 4% ? - ? 0% ? 1209167604
??????????
Collective assessment ? ? ? ? ? ? ? ? ?
- Customers with moderate credit risk 34309953455 ? 96% ? 35361003 ? 0% ? 34274592452
??????????
Total 35585181960 ? 100% ? 81767140 ? 0% ? 35503414820
???
? 31 December 2020
? Book value ? Provision for impairment ? ?
Percentage Percentage
Category Amount ? (%) ? Amount ? (%) ? Carrying amount
??????????
Individual assessment ? ? ? ? ? ? ? ? ?
- Customers with high credit risk 60093972 ? 0% ? 41752588 ? 69% ? 18341384
- Customers with low credit risk 1036981635 ? 5% ? - ? 0% ? 1036981635
??????????
Collective assessment ? ? ? ? ? ? ? ? ?
- Customers with moderate credit risk 21929927770 ? 95% ? 16110434 ? 0% ? 21913817336
??????????
Total 23027003377 ? 100% ? 57863022 ? 0% ? 22969140355
??
Page 80BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(a) Criteria for collective assessment in 2021 and details:
Customer group ? Basis
???
With special matters litigations or the deterioration
Customers with high credit risk ? of customers’ credit status
Banks insurance companies large state-owned
Customers with low credit risk ? enterprises and public institutions
Customers with moderate credit
risk ? Customers not included in Groups above
?
(b) Assessment of ECLs on accounts receivable in 2021:
At all times the Group measures the impairment loss for accounts receivable at an
amount equal to lifetime ECLs and the ECLs are based on the number of overdue days
and the expected loss rate. According to the Group’s historical experience different loss
models are applicable to different customer groups.
(5) Movements of provisions for bad and doubtful debts:
31 December 31 December
?2021?2020
????
Balance at the beginning of the year 57863022 ? 348005298
Charge during the year 48438509 ? 13048035
Recoveries during the year (20188349) ? (15387358)
Written-off during the year (3474488) ? (285159459)
Translation differences (871554) ? (2643494)
????
Balance at the end of the year 81767140 ? 57863022
???
(6) Five largest accounts receivable by debtor at the end of the year
The total of five largest accounts receivable of the Group at the end of the year was RMB
16114382450 representing 45% of the total accounts receivable and no provision was
made for bad and doubtful debts after assessment.Page 81BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
5 Prepayments
(1) The Group’s prepayments by category:
? ? 31 December 2021 ? 1 January 2021 ? 31 December 2020
???????
Prepayment for inventory ? 648790765 ? 617801035 ? 617801035
Prepayment for electricity water
gas and power ? 299002465 ? 230580992 ? 230580992
Others ? 174086777 ? 256140414 ? 271213957
???????
Total ? 1112880007 ? 1104522441 ? 1119595984
???
(2) The ageing analysis of prepayments is as follows:
? 31 December 2021 ? 1 January 2021 ? 31 December 2020
Percentage Percentage Percentage
Ageing Amount ? (%) ? Amount ? (%) ? Amount ? (%)
????????????
Within 1 year (inclusive) 1088149020 ? 98% ? 993574554 ? 90% ? 1008648097 ? 90%
Over 1 year but within 2 years (inclusive) 9828654 ? 1% ? 18143348 ? 2% ? 18143348 ? 2%
Over 2 years but within 3 years (inclusive) 2531759 ? 0% ? 84733056 ? 8% ? 84733056 ? 8%
Over 3 years 12370574 ? 1% ? 8071483 ? 1% ? 8071483 ? -
????????????
Total 1112880007 ? 100% ? 1104522441 ? 100% ? 1119595984 ? 100%
???
The ageing is counted starting from the date when prepayments are recognised.The total of five largest prepayments of the Group at the end of the year is RMB 749974172
representing 67% of the total prepayments.Page 82BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
6 Other receivables
31 December 31 December
? Note 2021 ? 2020
?????
Interest receivable ? - ? 2037452
Dividends receivable ? 2414503 ? 1842137
Others (1) 1920413875 ? 654235244
?????
Total ? 1922828378 ? 658114833
???
(1) Others
(a) The Group’s other receivable by customer type:
31 December 31 December
Customer type ? 2021 ? 2020
?????
Amounts due from related parties ? 1901777 ? 14062445
Amounts due from other customers ? 1927555914 ? 649216811
?????
Sub-total ? 1929457691 ? 663279256
?????
Less: Provision for bad and
doubtful debts ? 9043816 ? 9044012
?????
Total ? 1920413875 ? 654235244
???
Page 83BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(b) The Group’s other receivable by currency type:
? 31 December 2021 ? 31 December 2020
Amount in Amount in
original RMB/RMB original RMB/RMB
? currency ? Exchange rate ? equivalents ? currency ? Exchange rate ? equivalents
????????????
RMB ? ? ? ? 808428477 ? ? ? ? ? 577989243
USD 170390641 ? 6.3757 ? 1086359610 ? 7746274 ? 6.5249 ? 50543663
JPY - ? - ? - ? 35289875 ? 0.0632 ? 2230320
Other foreign currencies ? ? ? ? 34669604 ? ? ? ? ? 32516030
????????????
Sub-total ? ? ? ? 1929457691 ? ? ? ? ? 663279256
????????????
Less: Provision for bad and
doubtful debts ? ? ? ? 9043816 ? ? ? ? ? 9044012
????????????
Total ? ? ? ? 1920413875 ? ? ? ? ? 654235244
???
(c) The ageing analysis of the Group’s other receivables is as follows:
31 December 31 December
??2021?2020
?????
Within 1 year (inclusive) ? 1637506264 ? 336023652
Over 1 year but within 2 years (inclusive) ? 21232566 ? 65883117
Over 2 years but within 3 years (inclusive) ? 24183841 ? 18983553
Over 3 years ? 246535020 ? 242388934
?????
Sub-total ? 1929457691 ? 663279256
?????
Less: Provision for bad and doubtful debts ? 9043816 ? 9044012
?????
Total ? 1920413875 ? 654235244
???
The ageing is counted starting from the date when other receivables are recognised.Page 84BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(d) Other receivables by provisioning method
? 31 December 2021
? Book value ? Provision for impairment ? ?
Percentag Percentag Carrying
Category Amount ? e (%) ? Amount ? e (%) ? amount
??????????
Individual assessment 9043816 ? 0% ? 9043816 ? 100% ? -
??????????
Collective assessment 1920413875 ? 100% ? - ? 0% ? 1920413875
??????????
Total 1929457691 ? 100% ? 9043816 ? 0% ? 1920413875
???
? 31 December 2020
? Book value ? Provision for impairment ? ?
Percentag Percentag Carrying
Category Amount ? e (%) ? Amount ? e (%) ? amount
??????????
Individual assessment 9044012 ? 1% ? 9044012 ? 100% ? -
??????????
Collective assessment 654235244 ? 99% ? - ? 0% ? 654235244
??????????
Total 663279256 ? 100% ? 9044012 ? 1% ? 654235244
??
(e) Movements of provisions for bad and doubtful debts
31 December 31 December
??2021?2020
?????
Balance at the beginning of the year ? 9044012 ? 8636111
Charge during the year ? 275661 ? 572266
Recoveries during the year ? (115952) ? (60462)
Written-off during the year ? (159905) ? (103903)
?????
Balance at the end of the year ? 9043816 ? 9044012
???
Page 85BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(f) The Group’s other receivables categorised by nature
31 December 31 December
Nature ? 2021 ? 2020
?????
VAT refunds and export tax rebate ? 253311 ? 41149236
Amounts due from equity transfer ? 200000000 ? 200000000
Surety and deposits Note 1518208550 ? 171340282
Others ? 210995830 ? 250789738
?????
Sub-total ? 1929457691 ? 663279256
?????
Less: Provision for bad and
doubtful debts ? 9043816 ? 9044012
?????
Total ? 1920413875 ? 654235244
???
Note: As at 31 December 2021 an equivalent to RMB 1056493338 of the surety and
deposits mainly represented production capacity surety paid by the Group to suppliers.(g) Five largest other receivables by debtor at the end of the year
The total of five largest other receivables of the Group at the end of the year was RMB
1328573338 most of which were surety and amounts due from equity transfer. No
provision is made for bad and doubtful debts after assessment.Page 86BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
7 Inventories
(1) The Group’s inventories by category:
? 31 December 2021 ? 31 December 2020
Provision for Provision for
impairment of impairment of
inventories/Provision inventories/Provision
for impairment of for impairment of
costs to fulfil a costs to fulfil a
contract with a contract with a
? Book value ? customer ? ? Carrying amount ? Book value ? customer ? Carrying amount
????????????
Raw materials 12000601448 ? 2083190076 ? 9917411372 ? 8068822655 ? 933491391 ? 7135331264
Work in progress 4080474691 ? 732973017 ? 3347501674 ? 2811789420 ? 583885537 ? 2227903883
Finished goods 17057256799 ? 2795564803 ? 14261691996 ? 10074715347 ? 1767518826 ? 8307196521
Consumables 130472966 ? - ? 130472966 ? 162817575 ? - ? 162817575
Costs to fulfil a contract with a customer 67728931 ? - ? 67728931 ? 42205247 ? - ? 42205247
????????????
Total 33336534835 ? 5611727896 ? 27724806939 ? 21160350244 ? 3284895754 ? 17875454490
???
As at 31 December 2021 there was no amount of capitalised borrowing cost in the Group’s closing balance of inventories (2020: Nil).As at 31 December 2021 the Group had no inventory used as collateral (2020: Nil).Page 87BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) An analysis of provision for impairment of inventories of the Group is as follows:
Balance at the
beginning of the Charge during the Balance at the
? year ? year ? Decrease during the year ? end of the year
? ? ? ? ? Reversals ? Write-off ? ?
??????????
Raw materials 933491391 ? 1531584144 ? (332196932) ? (49688527) ? 2083190076
Work in progress 583885537 ? 501332796 ? (273342622) ? (78902694) ? 732973017
Finished goods 1767518826 ? 2616006445 ? (605753391) ? (982207077) ? 2795564803
??????????
Total 3284895754 ? 4648923385 ? (1211292945) ? (1110798298) ? 5611727896
???
Page 88BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
8 Contract assets
(1) The Group’s contract assets by customer type:
A contract asset is the Group’s right to consideration in exchange for goods or services that it
has transferred to a customer when that right is conditional on something other than the
passage of time.
(2) Significant changes in the contract assets during the year:
Significant changes in the contract assets of the Group are as follows:
??2021
? ? RMB
Balance at the beginning of the year ? 49897395
???
Transfers from contract assets recognised at the beginning of the
year to receivables ? (34634630)
Increase in contract assets resulting from no unconditional right
obtained ? 62760207
Decrease from disposal of subsidiaries ? (2324648)
???
Balance at 31 December 2021 ? 75698324
??
(3) Additions recoveries or reversals of provision for contract asset during the year:
?20212020
???
Balance at the beginning of the year 207800 -
Additions during the year -? 207800
Recoveries during the year -? -
Written-off during the year ? ?
Decrease from disposal of subsidiaries (207800) -
???
Balance at the end of the year - 207800
??
Page 89BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
9 Assets held for sale
As at 31 December 2020 the Assets held for Sale by the Group were real estate and other
attachments of The Company's subsidiary Gaochuang (Suzhou) Electronics Co. Ltd located
in Wujiang Economic and Technological Development Zone and the disposal of the relevant
assets was completed in March 2021 and the relevant proceeds of RMB156565635 were
recorded in the gain on asset disposal (Note V. 55).
10 Other current assets
31 December 31 December
??2021?2020
?????
VAT on tax credits ? 2643490711 ? 6447432350
Input tax to be verified or deducted ? 575209816 ? 1068285033
Prepaid income taxes ? 20739659 ? 23710045
Costs receivables for recovering products
from a customer ? 126447496 ? 131986424
Others ? 213032028 ? 177455400
?????
Total ? 3578919710 ? 7848869252
???
11 Long-term equity investments
(1) The Group’s long-term equity investments by category:
?2021?2020
????
Investments in associates 7066228472 ? 4722215043
????
Sub-total 7066228472 ? 4722215043
????
Less: Provision for impairment 1025280155 ? 1029044819
????
Total 6040948317 ? 3693170224
???
Page 90BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Movements of long-term equity investments during the year are as follows:
? ? ? Movements during the year ? ?
Translation
differences
arising from
Investment Declared translation of
Balance at the income Other distribution of foreign currency
beginning of the Increase in Decrease in recognised under comprehensive Other equity cash dividends or financial Balance at the
Investee year ? capital ? capital ? equity method ? income ? movements ? profits ? statements ? end of the year
??????????????????
Beijing Nissin Electronics Precision Component
Co. Ltd. 263858 ? - ? - ? 1749280 ? - ? - ? - ? - ? 2013138
Beijing Nittan Electronic Co. Ltd. 71396821 ? - ? - ? 9399420 ? - ? - ? (3200000) ? - ? 77596241
Erdos BOE Energy Investment Co. Ltd. 906163137 ? 502802600 ? - ? (1023101) ? - ? 1724197 ? - ? - ? 1409666833
Beijing Infi-Hailin Venture Investment Co. Ltd. 1166524 ? - ? - ? (1166524) ? - ? - ? - ? - ? -
Beijing Infi-Hailin Venture Investment (Limited
Partnership) - ? - ? - ? 38376800 ? - ? - ? (38376800) ? - ? -
TPV Display Technology (China) Limited 24828264 ? - ? - ? 3631573 ? - ? - ? - ? - ? 28459837
Beijing Xindongneng Investment Fund (Limited
Partnership) 2058142325 ? - ? (813699978) ? 805886583 ? 38588937 ? - ? - ? - ? 2088917867
Beijing Xindongneng Investment Management
Co. Ltd. 7921626 ? - ? - ? 2718868 ? - ? - ? (2000000) ? - ? 8640494
Shenzhen Yunyinggu Technology Co. Ltd. 21910887 ? - ? - ? (3878846) ? (188015) ? 23249160 ? - ? - ? 41093186
Beijing Xloong Technologies Co. Ltd. 19766940 ? - ? - ? 551530 ? - ? 773082 ? - ? - ? 21091552
Beijing Innovation Industry Investment Co. Ltd. 204063254 ? - ? - ? 3501319 ? - ? - ? - ? - ? 207564573
Beijing Electric Control Industry Investment
Co. Ltd. 200283114 ? - ? - ? 1271160 ? 30223283 ? - ? - ? - ? 231777557
BOE Art Cloud Technology Co. Ltd. (formerly
known as Hunan BOE Art Cloud Technology
Co. Ltd.) 253630000 ? 860000 ? - ? 4687852 ? - ? 27798537 ? - ? - ? 286976389
New on Technology Co. Ltd. 2400038 ? - ? - ? (263848) ? (94195) ? - ? - ? (62966) ? 1979029
Cnoga Medical Co. Ltd. 266520324 ? - ? - ? (6793598) ? - ? (215626) ? - ? (6010035) ? 253501065
Beijing Zhonglianhe Ultra HD Collaborative
Technology Centre Co. Ltd. 2426909 ? - ? - ? (59737) ? - ? - ? - ? - ? 2367172
Hefei Jiangcheng Technology Co. Ltd.(formerly known as Shenzhen Jiangcheng
Technology Co. Ltd.) 5011461 ? - ? (4800960) ? (143214) ? - ? - ? - ? (67287) ? -
BOE Houji Technology (Beijing) Co. Ltd. 917633 ? - ? - ? 10128 ? - ? - ? - ? - ? 927761
Tianjin Xianzhilian Investment Centre (Limited
Partnership) 474207278 ? 117000000 ? - ? 379433402 ? - ? (2298800) ? - ? - ? 968341880
BioChain (Beijing) Science & Technology Inc. 200203487 ? 150000000 ? - ? (10358233) ? - ? - ? - ? - ? 339845254
Tianjin Xianzhilian Investment Management
Centre (Limited Partnership) 991163 ? - ? - ? 11757469 ? - ? - ? (8100000) ? - ? 4648632
Guoke BOE (Shanghai) Equity Investment
Management Co. Ltd. - ? 2571400 ? - ? (1387888) ? - ? - ? - ? - ? 1183512
Beijing BOE Microbial Technology Co. Ltd. - ? 22500000 ? - ? (2457064) ? - ? - ? - ? - ? 20042936
Beijing YanDong MicroElectronic Co. Ltd. - ? 1000000000 ? - ? 9985276 ? - ? - ? - ? - ? 1009985276
Chongqing BOE Smart Private Equity
Investment Fund Partnership (Limited
Partnership) - ? 60000000 ? - ? (391712) ? - ? - ? - ? - ? 59608288
??????????????????
Sub-total 4722215043 ? 1855734000 ? (818500938) ? 1245036895 ? 68530010 ? 51030550 ? (51676800) ? (6140288) ? 7066228472
??????????????????
Less: Provision for impairment 1029044819 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 1025280155
??????????????????
Total 3693170224 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 6040948317
Page 91BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
As at 31 December 2021 Hefei Xin Jing Yuan Electronic Materials Co. Ltd. suffered
continuous loss and the Group does not have an obligation to assume additional losses.Therefore the Company discontinues recognising its share of further losses after the carrying
amount of long-term equity investment is reduced to zero. As at 31 December 2021 the
accumulated unrecognised investment losses were RMB 20352876 (2020: RMB
18207308). During year ended 31 December 2021 Beijing Infi-Hailin Venture Investment
Co. Ltd. suffered continuous loss and the Group does not have an obligation to assume
additional losses. Therefore the Company discontinues recognising its share of further losses
after the carrying amount of long-term equity investment is reduced to zero. As at 31
December 2021 the accumulated unrecognised investment losses were RMB 1152818
(2020: Nil).
The change in the carrying amount of the Group's long term equity investment was mainly
due to the exchange translation of foreign currencies for the year ended 31 December 2021.
12 Investments in other equity instruments
31 December 31 December
Item 2021 ? 2020
????
Listed equity instruments investment ? ? ?
- Beijing Electronic City High Tech Group Co. Ltd. 56638836 ? 74372840
- Bank of Chongqing Co. Ltd. 91875688 ? 102845668
- New Century Medical Holding Co. Ltd. 19810485 ? 36995513
????
Unlisted equity instruments investment ? ? ?
- Zhejiang BOE Display Technology Co. Ltd. 321256 ? 321256
- Zhejiang Qiusheng Photoelectric Technology Co.Ltd. 248776 ? 248776
- National Engineering Laboratory of Digital
Television (Beijing) Co. Ltd. 6250000 ? 6250000
—Danhua Capital L. P. 31878500 ? 32624500
—Danhua Capital II L.P. 63757002 ? 65249007
—Kateeva Inc. 76157736 ? 77939931
—MOOV INC. 25608316 ? 26207585
—ZGLUE INC. - ? -
—Nanosys INC 47817750 ? 48936750
—Ceribell INC 8288403 ? 8482363
—Baebies INC 28012830 ? 28668368
—Illumina Fund IL.P. 25607407 ? 21320235
—ACQIS Technology Inc. 1275140 ? 1304980
—KA IMAGING INC. 1834716 ? 1877651
- Beijing Dongfang Electronic Industry Co. Ltd. - ? -
—Qingdao Ultra HD Video Innovation Technology
Co. Ltd. 500000 ? -
—Beijing Horizon Robotics Technology
Development Co. Ltd. 31722880 ? -
—Nanjing Xinjiayuan Technology Co. Ltd. 1482425 ? -
????
Total 519088146 ? 533645423
???
Page 92BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(1) Investments in other equity instruments:
Accumulated
Reason for being gains or losses Amount Reason for
designated at fair recognised in transferred from transferring from
value through other other other
other Dividend income comprehensive comprehensive comprehensive
comprehensive recognised for the income (“-” for income to retained income to retained
Item income ? year ? losses) ? earnings ? earnings
??????????
Listed equity instruments investment ? ? ? ? ? ? ? ? ?
With the intention
of establishing or
maintaining a
long-term
- Beijing Electronic City High Tech Group investment for
Co. Ltd. strategic reasons ? 1924620 ? (33521592) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Bank of Chongqing Co. Ltd. strategic reasons ? 9345312 ? (28208687) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- New Century Medical Holding Co. Ltd. strategic reasons ? - ? (121038365) ? - ? Not applicable
??????????
Unlisted equity instruments investment ? ? ? ? ? ? ? ? ?
With the intention
of establishing or
maintaining a
long-term
- Zhejiang BOE Display Technology Co. investment for
Ltd. strategic reasons ? - ? - ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
- Zhejiang Qiusheng Photoelectric investment for
Technology Co. Ltd. strategic reasons ? 1629959 ? - ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
- National Engineering Laboratory of Digital investment for
Television (Beijing) Co. Ltd. strategic reasons ? - ? - ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
—Danhua Capital L. P. strategic reasons ? 9351967 ? (2647875) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
—Danhua Capital II L.P. strategic reasons ? - ? (3890749) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
—Kateeva Inc. strategic reasons ? - ? (6704730) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
—MOOV INC. strategic reasons ? - ? (2254523) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
—ZGLUE INC. strategic reasons ? - ? (10405488) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
—Nanosys INC strategic reasons ? - ? (2531250) ? - ? Not applicable
Page 93BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
With the intention
of establishing or
maintaining a
long-term
investment for
—Ceribell INC strategic reasons ? - ? (373880) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
—Baebies INC strategic reasons ? - ? (1110724) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
—Illumina Fund IL.P. strategic reasons ? 2443891 ? (1359948) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
—ACQIS Technology Inc. strategic reasons ? - ? (288820) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
—KA IMAGING INC. strategic reasons ? - ? (172804) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
- Beijing Dongfang Electronic Industry Co. investment for
Ltd. strategic reasons ? - ? (180000) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
—Qingdao Ultra HD Video Innovation investment for
Technology Co. Ltd. strategic reasons ? - ? - ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
—Beijing Horizon Robotics Technology investment for
Development Co. Ltd. strategic reasons ? - ? (231620) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
—Nanjing Xinjiayuan Technology Co. Ltd. strategic reasons ? - ? (517575) ? - ? Not applicable
??????????
Total ? ? 24695749 ? (215438630) ? - ? ?
???
13 Other non-current financial assets
Item 2021 ? 2020
Financial assets at fair value through profit or loss 606895447 ? -
Including: Investments in equity instruments 606895447 ? -
????
Total 606895447 ? -
?
Page 94BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
14 Investment properties
? ? Land use rights ? Buildings ? Total
???????
Cost ? ? ? ? ? ?
Balance at the beginning of the
year ? 687434677 ? 1016178842 ? 1703613519
Additions during the year ? - ? 6653127 ? 6653127
???????
Balance at the end of the year ? 687434677 ? 1022831969 ? 1710266646
???????
Less: Accumulated
depreciation or amortisation ? ? ? ? ? ?
Balance at the beginning of the
year ? 154651171 ? 352793837 ? 507445008
Additions during the year ? 13366634 ? 31089603 ? 44456237
???????
Balance at the end of the year ? 168017805 ? 383883440 ? 551901245
???????
???????
Carrying amounts ? ? ? ? ? ?
At the end of the year ? 519416872 ? 638948529 ? 1158365401
???????
At the beginning of the year ? 532783506 ? 663385005 ? 1196168511
???
Page 95BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
15 Fixed assets
(1) Analysis of the Group’s fixed assets are as follows:
Item Plant & buildings ? Equipment ? Others ? Total
????????
Cost ? ? ? ? ? ? ?
Balance at 31 December 2020 62378026148 ? 260176443634 ? 6938507880 ? 329492977662
Changes in accounting policies (Note
III.35) (11291665) ? (107357735) ? - ? (118649400)
???????-
Balance at 1 January 2021 62366734483 ? 260069085899 ? 6938507880 ? 329374328262
Additions during the year ? ? ? ? ? ? -
- Purchases 61284801 ? 694000783 ? 1491643310 ? 2246928894
- Transfers from construction in
progress 3338617468 ? 28933367595 ? 1899046420 ? 34171031483
- Written-down against government
interest discounts - ? (715023755) ? - ? (715023755)
Disposals or written-offs during the year (12131793) ? (368463329) ? (298965375) ? (679560497)
Translation differences (8320089) ? (38961046) ? (3113936) ? (50395071)
????????
Balance at 31 December 2021 65746184870 ? 288574006147 ? 10027118299 ? 364347309316
????????
Less: Accumulated depreciation ? ? ? ? ? ? ?
Balance at 31 December 2020 6303863217 ? 93623727489 ? 3437354358 ? 103364945064
Changes in accounting policies (Note
III.35) (4864383) ? (17553553) ? - ? (22417936)
?-?-?-?-
Balance at 1 January 2021 6298998834 ? 93606173936 ? 3437354358 ? 103342527128
Charge during the year 1615323566 ? 29005403497 ? 2458754061 ? 33079481124
Disposals or written-offs during the year (3152667) ? (432699340) ? (190092327) ? (625944334)
Translation differences (3100250) ? (33026947) ? (1203407) ? (37330604)
????????
Balance at 31 December 2021 7908069483 ? 122145851146 ? 5704812685 ? 135758733314
????????
Less: Provision for impairment ? ? ? ? ? ? ?
Balance at 31 December 2020 1073381 ? 1182586123 ? 77787025 ? 1261446529
Charge during the year - ? 560810894 ? 115021018 ? 675831912
Disposals or written-offs during the year (1038901) ? (38439084) ? (4714158) ? (44192143)
????????
Balance at 31 December 2021 34480 ? 1704957933 ? 188093885 ? 1893086298
????????
????????
Carrying amounts ? ? ? ? ? ? ?
At 31 December 2021 57838080907 ? 164723197068 ? 4134211729 ? 226695489704
????????
At 1 January 2021 56066662268 ? 165280325840 ? 3423366497 ? 224770354605
At 31 December 2020 56073089550 ? 165370130022 ? 3423366497 ? 224866586069
???
In 2021 some of the equipment of the Group is idle and there is no clear use plan. The Group
evaluated the recoverable amount of these equipment and made a full provision for
impairment of RMB 675831912 based on the evaluation results.Page 96BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Fixed assets pending certificates of ownership
As at 31 December 2021 fixed assets pending certificates of ownership totalled RMB
7892064184 (31 December 2020: RMB 20426632149) and certificates of ownership is still
being processed.
16 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
?2021?2020
Provision for Carrying Provision for Carrying
Item Book value ? impairment ? amount ? Book value ? impairment ? amount
????????????
The 6th generation AMOLED project -
Mianyang 980943292 ? - ? 980943292 ? 10195964634 ? - ? 10195964634
The 6th generation AMOLED project -
Chongqing 24786048849 ? - ? 24786048849 ? 11920916965 ? - ? 11920916965
The 10.5th generation TFT-LCD project -
Wuhan 258272099 ? - ? 258272099 ? 10551056190 ? - ? 10551056190
Others 6139550091 ? 44493824 ? 6095056267 ? 9907912163 ? ? ? 9907912163
????????????
Total 32164814331 ? 44493824 ? 32120320507 ? 42575849952 ? - ? 42575849952
???
In 2021 some of the engineering projects of the Group is idle and cannot be further used. The
Group evaluated the residual values of these engineering projects and made a provision for
impairment of RMB 44493824 based on the evaluation results.Page 97BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Movements of major construction projects in progress during the year
Percentage Accumulated Interest rate
Balance at the Transfers to of actual capitalised Interest for
beginning of the Additions during Transfers to fixed intangible Balance at the cost to interest at the capitalised in capitalisation Sources of
Item Budget ? year ? the year ? assets ? assets ? end of the year ? budget (%) ? end of the year ? 2021 ? in 2021 (%) ? funding
??????????????????????
Self-raised
The 6th generation AMOLED funds and
project - Mianyang 46500000000 ? 10195964634 ? 1965743702 ? (11150619328) ? (30145716) ? 980943292 ? 93.64% ? - ? 114281964 ? 0.76% ? borrowings
Self-raised
The 6th generation AMOLED funds and
project - Chongqing 46500000000 ? 11920916965 ? 13456298518 ? (591166634) ? - ? 24786048849 ? 55.55% ? 185790742 ? 184548034 ? 2.87% ? borrowings
Self-raised
The 10.5th generation TFT-LCD funds and
project - Wuhan 46000000000 ? 10551056190 ? 1371755291 ? (11664402291) ? (137091) ? 258272099 ? 80.82% ? - ? 25450610 ? 3.24% ? borrowings
???
Page 98BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
17 Intangible assets
(1) Intangible assets
Patent and
proprietary Computer
? Land use rights ? technology ? software ? Others ? Total
??????????
Original book value ? ? ? ? ? ? ? ? ?
Balance at the beginning of the year 5252723967 ? 6942969070 ? 1538996080 ? 1551008011 ? 15285697128
Additions during the year ? ? ? ? ? ? ? ? ?
- Purchases 286798820 ? 117964109 ? 42232491 ? - ? 446995420
- Transfers from construction in
progress - ? - ? 115841974 ? - ? 115841974
- Additions due to business
combinations involving entities not
under common control - ? 27177686 ? - ? - ? 27177686
Disposals during the year - ? (34421757) ? (20198855) ? - ? (54620612)
Translation differences - ? (73738930) ? (22630) ? (798220) ? (74559780)
Written-down against interest discount - ? (957450) ? - ? (251116) ? (1208566)
??????????
Balance at the end of the year 5539522787 ? 6978992728 ? 1676849060 ? 1549958675 ? 15745323250
??????????
Less: Accumulated amortisation ? ? ? ? ? ? ? ? ?
Balance at the beginning of the year 398056104 ? 1950769869 ? 808673901 ? 252270806 ? 3409770680
Charge during the year 126662903 ? 688431777 ? 206062248 ? 145299554 ? 1166456482
Disposals during the year - ? (11363776) ? (14836853) ? - ? (26200629)
Translation differences - ? (13996705) ? (11252) ? (193732) ? (14201689)
??????????
Balance at the end of the year 524719007 ? 2613841165 ? 999888044 ? 397376628 ? 4535824844
??????????
??????????
Carrying amount at the end of the year 5014803780 ? 4365151563 ? 676961016 ? 1152582047 ? 11209498406
??????????
Carrying amount at the beginning of the
year 4854667863 ? 4992199201 ? 730322179 ? 1298737205 ? 11875926448
???
Page 99BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
18 Goodwill
(1) Changes in goodwill
Balance at the
beginning of the Additions during Balance at the end
Name of investee year ? the year ? of the year
???????
Book value ? ? ? ? ? ?
Beijing Yinghe Century Co. Ltd. ? 42940434 ? - ? 42940434
K-Tronics (Suzhou) technology Co.Ltd. ? 8562464 ? - ? 8562464
Beijing BOE Optoelectronics
Technology Co. Ltd. ? 4423876 ? - ? 4423876
BOE Healthcare Investment &
Management Co. Ltd. ? 146460790 ? - ? 146460790
SES Imagotag SA Co. Ltd. ? 706406821 ? - ? 706406821
Chengdu CEC Panda Display
Technology Co. Ltd. ? 537038971 ? - ? 537038971
Nanjing BOE Display Technology
Co. Ltd. ? 155714415 ? - ? 155714415
Hefei jiangcheng Technology Co.Ltd. - ? 9391961 ? 9391961
???????
Sub-total ? 1601547771 ? 9391961 ? 1610939732
???????
Provision for impairment ? ? ? ? ? ?
Beijing BOE Optoelectronics
Technology Co. Ltd. ? (4423876) ? - ? (4423876)
SES Imagotag SA Co. Ltd. ? (196766653) ? (197604547) ? (394371200)
BOE Healthcare Investment &
Management Co. Ltd. ? - ? (82137669) ? (82137669)
???????
Sub-total ? (201190529) ? (279742216) ? (480932745)
???????
Carrying amount ? 1400357242 ? (270350255) ? 1130006987
???
Page 100BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Provision for impairment of goodwill
The recoverable amount of Beijing Yinghe Century Co. Ltd. (“Yinghe Century”) Suzhou
K-Tronics BOE Healthcare Investment & Management Co. Ltd. (“Health Investment”) and
SES Imagotag SA Co. Ltd. Nanjing BOE Display Technology Co. Ltd. Chengdu CEC
Panda and Hefei jiangcheng is determined based on the present value of expected future
cash flows. When predicting the present value of cash flow the cash flow in the next 5 years
is determined based on the financial budget approved by the management. The cash flow in
the years after the 5-year financial budget will remain stable. The pre-tax discount rate is
determined with reference to comparable companies and related capital structures.
19 Long-term deferred expenses
Balance at 31 Balance at 1 Balance at 31
December 2020 January 2021 December 2021
Additions during Decrease during
? ? ? the year ? the year ?
??????????
Payment for public facilities construction
and use 67332342 ? 67332342 ? - ? (15370224) ? 51962118
Leasehold improvements 14172826 ? 14172826 ? 7667088 ? (11513972) ? 10325942
Others 218128932 ? 204148317 ? 492857377 ? (122763252) ? 574242442
??????????
Total 299634100 ? 285653485 ? 500524465 ? (149647448) ? 636530502
???
Page 101BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
20 Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets and liabilities
?2021?2020
Deductible/ Deductible/
(taxable) (taxable)
temporary Deferred tax temporary Deferred tax
Item differences ? assets/(liabilities) ? differences ? assets/(liabilities)
????????
Deferred tax assets: ? ? ? ? ? ? ?
Provision for impairment of assets 113867486 ? 24884958 ? 122139756 ? 27180254
Changes in fair value of investments in
other equity instruments 139523200 ? 20928480 ? 121789193 ? 18268379
Depreciation of fixed assets 201462125 ? 34642083 ? 179801722 ? 30341276
Assessed value added by investing real
estate in subsidiaries 125449252 ? 31362313 ? 131003100 ? 32750775
Accumulated losses 422990806 ? 118064555 ? 424212759 ? 132565377
Government grant 209807147 ? 31471072 ? 34989313 ? 5248397
Others 306215006 ? 19010893 ? 29644487 ? 9380549
????????
Sub-total 1519315022 ? 280364354 ? 1043580330 ? 255735007
????????
Amount offset ? ? (90028830) ? ? ? (50693919)
????????
Balance after offsetting ? ? 190335524 ? ? ? 205041088
????????
Deferred tax liabilities: ? ? ? ? ? ? ?
Revaluation due to business combinations
involving entities not under common
control (2197597331) ? (584383821) ? (2395173489) ? (713559149)
Depreciation of fixed assets (6388163232) ? (984779332) ? (4622699062) ? (721371438)
Long-term equity investments (120141687) ? (18021253) ? (120141687) ? (18021253)
Others (167106175) ? (28467297) ? (142029410) ? (25343233)
????????
Sub-total (8873008425) ? (1615651703) ? (7280043648) ? (1478295073)
????????
Amount offset ? ? 90028830 ? ? ? 50693919
????????
Balance after offsetting ? ? (1525622873) ? ? ? (1427601154)
???
Page 102BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Details of unrecognised deferred tax assets
?2021?2020
????
Deductible temporary differences 24215956667 ? 16442282572
Deductible tax losses 19433679291 ? 25680094343
????
Total 43649635958 ? 42122376915
???
As at 31 December 2021 the accumulated deductible temporary differences are mainly
subsidiaries’ impairment provisions of assets and accrual of expenses. Due to the uncertainty
that there will be sufficient taxable income to cover these deductible differences in future
periods the deferred income tax assets were not recognised in consideration of prudence .
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
Year Note 2021 ? 2020
?????
2021?-?78927101
2022?316585394?416996721
2023?290518573?518668889
2024?458962394?1129623213
2025?1276919825?2987078958
2026?1785437184?848779232
2027?14979073?128972134
2028?2221266958?5149658963
2029?5296070440?10575127795
2030?4368141751?2846283820
2031?2406109565?-
Others (a) 998688134 ? 999977517
?????
Total ? 19433679291 ? 25680094343
???
(a) According to the applicable local tax laws loss of some overseas subsidiaries of the
Group has indefinite carry-over period to deduct the future taxable income.Page 103BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
21 Other non-current assets
31 December 31 December
? Note 2021 ? 2020
?????
VAT on tax credits ? 3424055815 ? 3720414204
Deferred VAT for imported equipment ? 1407330930 ? 2444720228
Prepayment for fixed assets ? 572510455 ? 1476495591
Gains from transfer of exploration right (a) - ? 512802600
Prepayments for construction ? 224400336 ? 130568100
Surety ? 1339517936 ? -?
Others ? 509612011 ? 339969296
?????
Total ? 7477427483 ? 8624970019
???
(a) On 31 December 2020 gains from transfer of exploration right are amount for the
transfer of exploration paid by the Group through Erdos BOE Energy Investment Co.Ltd. to Ministry of Natural Resources of Inner Mongolia. On 15 January 2021 the Group
entered into the Agreement on Capital and Share Increase of Erdos BOE Energy
Investment Co. Ltd. with other enterprise holding coal resources (“the Agreement”).The closing of the capital and share increase transaction was completed in December
2021. Under the Agreement the Group's gains from transfer of exploration right was
converted to long-term equity investment in the Erdos BOE Energy Investment Co.Ltd..
22 Short-term loans
? 31 December 2021
Credited/collaterali
? ? ? ? ? ? ? sed
Amount in original RMB/RMB guaranteed/pledg
? currency ? Exchange rate ? equivalents ? ed
????????
Bank loans ? ? ? ? ? ? ?
- RMB ? ? ? ? 1352433750 ? Guaranteed
- RMB ? ? ? ? 140148195 ? Credited
????????
Sub-total ? ? ? ? 1492581945 ? ?
????????
Foreign currency bank loans ? ? ? ? ? ? ?
- USD 83382510 ? 6.3757 ? 531621869 ? Credited
- JPY 863548156 ? 0.0554 ? 47853518 ? Credited
????????
Sub-total ? ? ? ? 579475387 ? ?
????????????????
Total ? ? ? ? 2072057332 ? ?
???
Page 104BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
? 31 December 2020
Credited/collateral
? ? ? ? ? ? ised
Amount in original RMB/RMB guaranteed/pledg
? currency ? Exchange rate ? equivalents ? ed
????????
Bank loans ? ? ? ? ? ? ?
- RMB ? ? ? ? 600623333 ? Collateralised
- RMB ? ? ? ? 1853305416 ? Guaranteed
- RMB ? ? ? ? 2872713095 ? Credited
????????
Sub-total ? ? ? ? 5326641844 ? ?
????????
Foreign currency bank loans ? ? ? ? ? ? ?
- USD 346986252 ? 6.5249 ? 2264050596 ? Guaranteed
- USD 132229237 ? 6.5249 ? 862782549 ? Credited
- JPY 2310305559 ? 0.0632 ? 146094482 ? Credited
????????
Sub-total ? ? ? ? 3272927627 ? ?
????????
????????
Total ? ? ? ? 8599569471 ? ?
??
The interest rate of short-term loans for the Group ranged from 0.50% to 5.90% in 2021
(2020: 0.50% to 5.90%).
As at 31 December 2021 no short-term loan was past due (2020: Nil).
23 Bills payable
31 December 31 December
?2021?2020
????
Bank acceptance bills 663001350 ? 1130824139
Commercial acceptance bills 164956681 ? 100709756
????
Total 827958031 ? 1231533895
???
There is no due but unpaid bill payable at the end of the year. The bills above are all due
within one year.Page 105BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
24 Accounts payable
(1) The Group’s accounts payable by category are as follows:
31 December 31 December
?2021?2020
????
Payables to related parties 142557107 ? 108759439
Payables to related parties 32313273587 ? 27055412243
????
Total 32455830694 ? 27164171682
???
(2) The Group’s accounts payable by currency are as follows:
?2021?2020
Amount in RMB/RMB Amount in RMB/RMB
? original currency ? Exchange rate ? equivalents ? original currency ? Exchange rate ? equivalents
????????????
- RMB ? ? ? ? 23743766250 ? ? ? ? ? 18877719728
- USD 1093846298 ? 6.3757 ? 6974035842 ? 1065301852 ? 6.5249 ? 6950988054
- JPY 10050541520 ? 0.0554 ? 556800000 ? 7851845994 ? 0.0632 ? 496236667
- Other foreign currencies ? ? ? ? 1181228602 ? ? ? ? ? 839227233
????????????
Total ? ? ? ? 32455830694 ? ? ? ? ? 27164171682
???
As at 31 December 2021 the Group had no significant accounts payable ageing more than
one year.
25 Advance payments received
31 December 31 December
Item 2021 ? 2020
????
Advances from related parties 961806 ? 6018519
Advances from third parties 145178278 ? 118022230
????
Total 146140084 ? 124040749
???
Page 106BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
26 Contract liabilities
31 December 31 December
Item 2021 ? 2020
????
Sale of goods 3765081554 ? 3440720535
??
Contract liabilities primarily relate to the Group’s advances from goods purchase and sale
contracts. The Group receives a certain proportion of advances as agreed in contract when
entering into the contract with customers. The revenue related to the contracts will be
recognised until the Group satisfies its performance obligation.Significant changes in the contract liabilities of the Group are as follows:
?2021
? RMB
??
Balance at the beginning of the year 3440720535
??
Revenue recognised that was included in the contract liability balance at
the beginning of year (3195107678)
Increase of contract liabilities due to cash received at the end of the year 3519468697
??
Balance at 31 December 2021 3765081554
??
Page 107BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
27 Employee benefits payable
(1) Employee benefits payable:
Balance at 1 Accrued during Decrease during Balance at 31
? Note January 2021 ? the year ? the year ? December 2021
?????????
Short-term employee benefits (2) 3733572462 ? 18689911958 ? (17324878925) ? 5098605495
Post-employment benefits ? ? ? ? ? ? ? ?
- defined contribution plans (3) 21628033 ? 1142227556 ? (1129619734) ? 34235855
Termination benefits ? 3423302 ? 26091251 ? (29200666) ? 313887
?????????
Total ? 3758623797 ? 19858230765 ? (18483699325) ? 5133155237
???
Balance at 1 Accrued during Decrease during Balance at 31
? Note January 2020 ? the year ? the year ? December 2020
?????????
Short-term employee benefits (2) 2317952892 ? 14505206045 ? (13089586475) ? 3733572462
Post-employment benefits ? ? ? ? ? ? ? ?
- defined contribution plans (3) 30809715 ? 603373645 ? (612555327) ? 21628033
Termination benefits ? 24982847 ? 6049760 ? (27609305) ? 3423302
?????????
Total ? 2373745454 ? 15114629450 ? (13729751107) ? 3758623797
??
(2) Short-term employee benefits
Balance at 1 Accrued during Decrease during Balance at 31
? January 2021 ? the year ? the year ? December 2021
????????
Salaries bonuses allowances 3184794255 ? 15851656348 ? (14732174514) ? 4304276089
Staff welfare - ? 1087174457 ? (1087174457) ? -
Social insurance 32667412 ? 612771541 ? (602343269) ? 43095684
Medical insurance 29551408 ? 563695980 ? (554930349) ? 38317039
Work-related injury insurance 1614132 ? 32393361 ? (31424153) ? 2583340
Maternity insurance 1501872 ? 16682200 ? (15988767) ? 2195305
Housing fund 27141059 ? 679488225 ? (673539311) ? 33089973
Labour union fee staff and workers’ education
fee 467724919 ? 445370010 ? (216076387) ? 697018542
Staff bonus and welfare fund 20553209 ? - ? - ? 20553209
Other short-term employee benefits 691608 ? 13451377 ? (13570987) ? 571998
????????
Total 3733572462 ? 18689911958 ? (17324878925) ? 5098605495
???
Balance at 1 Accrued during Decrease during Balance at 31
? January 2020 ? the year ? the year ? December 2020
????????
Salaries bonuses allowances 1884102804 ? 12377361943 ? (11076670492) ? 3184794255
Staff welfare - ? 813811158 ? (813811158) ? -
Social insurance 32323849 ? 428892729 ? (428549166) ? 32667412
Medical insurance 28537074 ? 397973661 ? (396959327) ? 29551408
Work-related injury insurance 1592189 ? 17318426 ? (17296483) ? 1614132
Maternity insurance 2194586 ? 13600642 ? (14293356) ? 1501872
Housing fund 27503744 ? 572216189 ? (572578874) ? 27141059
Labour union fee staff and workers’ education
fee 345146487 ? 294743728 ? (172165296) ? 467724919
Staff bonus and welfare fund 7282591 ? 13270618 ? - ? 20553209
Other short-term employee benefits 21593417 ? 4909680 ? (25811489) ? 691608
????????
Total 2317952892 ? 14505206045 ? (13089586475) ? 3733572462
??
Page 108BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(3) Post-employment benefits - defined contribution plans
Balance at 1 Accrued during Decrease during Balance at 31
? January 2021 ? the year ? the year ? December 2021
????????
Basic pension insurance 19052829 ? 1055978182 ? (1044746071) ? 30284940
Unemployment insurance 1110934 ? 38192020 ? (38396371) ? 906583
Annuity 1464270 ? 48057354 ? (46477292) ? 3044332
????????
Total 21628033 ? 1142227556 ? (1129619734) ? 34235855
???
Balance at 1 Accrued during Decrease during Balance at 31
? January 2020 ? the year ? the year ? December 2020
????????
Basic pension insurance 26271958 ? 547052137 ? (554271266) ? 19052829
Unemployment insurance 1072077 ? 23115986 ? (23077129) ? 1110934
Annuity 3465680 ? 33205522 ? (35206932) ? 1464270
????????
Total 30809715 ? 603373645 ? (612555327) ? 21628033
??
Page 109BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
28 Taxes payable
?2021?2020
????
Value-added tax 101448944 ? 40678414
Corporate income tax 1266575648 ? 442103385
Individual income tax 58763365 ? 60823097
City construction tax 383455432 ? 239633339
Education surcharges and local education
surcharges 274382851 ? 171225887
Others 115623065 ? 123222747
????
Total 2200249305 ? 1077686869
???
29 Other payables
31 December 31 December
? Note 2021 ? 2020
?????
Interest payable ? 126701 ? 1946267
Dividends payable ? 6561972 ? 6451171
Others (1) 23828686269 ? 32859311586
?????
Total ? 23835374942 ? 32867709024
???
Page 110BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(1) Others
(a) The Group’s other payables by category are as follows:
31 December 31 December
? Note 2021 ? 2020
?????
Projects and equipment ? 16494274603 ? 22081009426
Fund transaction (Note) ? 3077116568 ? 3044729475
Equity acquisition ? - ? 2236488561
Deferred VAT for imported equipment ? 927825520 ? 1920558529
Repurchase obligation of restricted
shares V.40 835215390 ? 875333536
Accrued water and electricity charges
and freight ? 348955956 ? 711995694
Security deposits ? 537788828 ? 576740323
External agency fee ? 193251964 ? 95378987
Others ? 1414257440 ? 1317077055
?????
Total ? 23828686269 ? 32859311586
???
The Group’s significant other payables aged over one year are payables of projects and
equipment.Note: The other payables by the Group as at 31 December 2021 are amounts and
interests due to original controlling shareholders of Nanjing BOE Display
Technology Co. Ltd. and Chengdu CEC Panda acquired in 2020 with interest
rates of 2.175% and 0%.(b) The Group’s other payables by currency are as follows:
? 31 December 2021 ? 31 December 2020
Amount in RMB / Amount in RMB /
original RMB original RMB
? currency ? Exchange rate ? equivalents ? currency ? Exchange rate ? equivalents
????????????
RMB ? ? ? ? 16157489471 ? ? ? ? ? 25021226671
USD 857826112 ? 6.3757 ? 5469241942 ? 834593184 ? 6.5249 ? 5445637067
JPY 38321236336 ? 0.0554 ? 2122996493 ? 36887427437 ? 0.0632 ? 2331285414
Other foreign currencies ? ? ? ? 78958363 ? ? ? ? ? 61162434
????????????
Total ? ? ? ? 23828686269 ? ? ? ? ? 32859311586
???
Page 111BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
30 Non-current liabilities due within one year
As at 31 December the non-current liabilities due within one year for the Group were
long-term loans due within one year lease liabilitieslong-term payables and contribution of
non-controlling interests with redemption provisions.? ? 31 December 2021
Credited
? ? ? ? ? ? RMB / ? /collateralised
Amount in original guaranteed
? Note currency ? Exchange rate ? RMB equivalents ? /pledged
Bank loans ? ? ? ? ? ? ? ?
- RMB ? ? ? ? ? 27993413 ? Pledged
- RMB ? ? ? ? ? 7544963177 ? Collateralised
- RMB ? ? ? ? ? 1718446 ? Guaranteed
- RMB ? ? ? ? ? 11614011025 ? Credited
- USD ? 1136473175 ? 6.3757 ? 7245812022 ? Collateralised
- USD ? 63796480 ? 6.3757 ? 406747218 ? Guaranteed
- EUR ? 141129872 ? 7.2197 ? 1018915337 ? Credited
- EUR ? 6605651 ? 7.2197 ? 47690819 ? Pledged
?????????
Sub-total ? ? ? ? ? 27907851457 ? ?
?????????
Long-term payables V.34 ? ? ? ? 520546343 ? ?
Lease liabilities V.62 ? ? ? ? 92788055 ? ?
Contribution of non-controlling
interests with redemption
provisions V.36 ? ? ? ? 353772859 ? ?
?????????
Total ? ? ? ? ? 28874958714 ? ?
???
? ? 1 January 2021
Credited
? ? ? ? ? ? RMB / ? /collateralised
Amount in original guaranteed
? Note currency ? Exchange rate ? RMB equivalents ? /pledged
Bank loans ? ? ? ? ? ? ? ?
- RMB ? ? ? ? ? 28108784 ? Pledged
- RMB ? ? ? ? ? 5654665718 ? Collateralised
- RMB ? ? ? ? ? 1562733 ? Guaranteed
- RMB ? ? ? ? ? 8650207807 ? Credited
- USD ? 1397735847 ? 6.5249 ? 9120086628 ? Collateralised
- EUR ? 415746 ? 8.0250 ? 3336362 ? Credited
- EUR ? 7920370 ? 8.0250 ? 63560969 ? Pledged
?????????
Sub-total ? ? ? ? ? 23521529001 ? ?
?????????
Long-term payables V.34 ? ? ? ? 970462538 ? ?
Lease liabilities V.62 ? ? ? ? 54758789 ? ?
?????????
Total ? ? ? ? ? 24546750328 ? ?
??
Page 112BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
? ? 31 December 2020
Credited
? ? ? ? ? ? RMB / ? /collateralised
Amount in original guaranteed
? Note currency ? Exchange rate ? RMB equivalents ? /pledged
Bank loans ? ? ? ? ? ? ? ?
- RMB ? ? ? ? ? 28108784 ? Pledged
- RMB ? ? ? ? ? 5654665718 ? Collateralised
- RMB ? ? ? ? ? 1562733 ? Guaranteed
- RMB ? ? ? ? ? 8650207807 ? Credited
- USD ? 1397735847 ? 6.5249 ? 9120086628 ? Collateralised
- EUR ? 415746 ? 8.0250 ? 3336362 ? Credited
- EUR ? 7920370 ? 8.0250 ? 63560969 ? Pledged
?????????
Sub-total ? ? ? ? 23521529001 ? ?
?????????
Long-term payables V.34 ? ? ? ? 979021120 ? ?
?????????
Total ? ? ? ? ? 24500550121 ? ?
??
The interest rate of RMB long-term loans due within one year for the Group ranged from 0% to
5.88% in 2021 (2020: from 0% to 5.88%).
31 Other current liabilities
31 December 31 December
Item ? 2021 ? 2020
?????
Warranty provisions ? 3595808261 ? 1615534790
Refund liability ? 141997964 ? 144834876
Pending output VAT ? 216565073 ? 278791002
Others ? 97161211 ? 155556184
?????
Total ? 4051532509 ? 2194716852
??
The other current liabilities of the Group were warranty provision. The warranty provision
mainly relates to the expected after-sales repair warranty to the customers. The provision is
estimated by the Management based on historical claim experience and current actual sales
outcomes.Page 113BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
32 Long-term loans
? ? 31 December 2021
Credited
? ? ? ? ? ? RMB / ? /collateralised
Amount in original guaranteed
? Note currency ? Exchange rate ? RMB equivalents ? /pledged
Bank loans ? ? ? ? ? ? ? ?
- RMB ? ? ? ? ? 537167163 ? Pledged
- RMB ? ? ? ? ? 54546276790 ? Collateralised
- RMB ? ? ? ? ? 3703662752 ? Guaranteed
- RMB ? ? ? ? ? 46573377423 ? Credited
- USD ? 5747119917 ? 6.3757 ? 36641912455 ? Collateralised
- USD ? 101494400 ? 6.3757 ? 647097846 ? Guaranteed
- EUR ? 12407013 ? 7.2197 ? 89574912 ? Pledged
- EUR ? 172784008 ? 7.2197 ? 1247448703 ? Credited
Less: Long-term loans due within one
year V.30 ? ? ? ? 27907851457 ? ?
?????????
Total ? ? ? ? ? 116078666587 ? ?
???
? ? 31 December 2020
Credited
? ? ? ? ? ? RMB / ? /collateralised
Amount in original guaranteed
? Note currency ? Exchange rate ? RMB equivalents ? /pledged
Bank loans ? ? ? ? ? ? ? ?
- RMB ? ? ? ? ? 564470036 ? Pledged
- RMB ? ? ? ? ? 58205922053 ? Collateralised
- RMB ? ? ? ? ? 3245238880 ? Guaranteed
- RMB ? ? ? ? ? 48593938457 ? Credited
- USD ? 6647918240 ? 6.5249 ? 43377001724 ? Collateralised
- EUR ? 67323142 ? 8.0250 ? 540268215 ? Pledged
- EUR ? 180368445 ? 8.0250 ? 1447456771 ? Credited
Less: Long-term loans due within one
year V.30 ? ? ? ? 23521529001 ? ?
?????????
Total ? ? ? ? ? 132452767135 ? ?
??
The interest rate of RMB long-term loans for the Group ranged from 0% to 5.90% in 2021
(2020: from 0% to 5.90%).
33 Debentures payable
(1) Debentures payable
31 December 31 December
Item 2021 ? 2020
????
Debentures payable 359586437 ? 398971739
Less: Debentures payable due within one year - ? -
????
Total 359586437 ? 398971739
???
Page 114BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) The movements of debenture payable:
Balance at the Increase Amortisation of
Maturity beginning of the during the Interest at face discounts or Repayment during Translation Balance at the end
Debenture Face value ? Issuance date ? period ? Issuance amount ? year ? year ? value ? premium ? the period ? differences ? of the year
??????????????????????
Euro PP EUR 10000000 ? 2016.12.29 ? 7 years ? EUR 10000000 ? 79866803 ? - ? 2677465 ? 109029 ? (2677465) ? (8020678) ? 71955154
Euro PP EUR 30000000 ? 2017.03.29 ? 6 years ? EUR 30000000 ? 239802540 ? - ? 8032395 ? 402717 ? (8032395) ? (24086570) ? 216118687
Euro PP EUR 10000000 ? 2019.07.22 ? 6 years ? EUR 10000000 ? 79302396 ? - ? 3480705 ? 178127 ? (3480705) ? (7967927) ? 71512596
??????????????????????
Total ? ? ? ? ? ? ? ? 398971739 ? - ? 14190565 ? 689873 ? (14190565) ? (40075175) ? 359586437
???
SES Imagotag SA Co. Ltd. issued two private placement bonds with a total face value of Euro 40 million to institutional investors on 29
December 2016 and 29 March 2017. The coupon rate of the bonds is 3.50% and the maturity date is 29 December 2023. Interest payments are
made annually and the principle amount will be paid when the bonds become due.SES Imagotag SA Co. Ltd. issued a private placement bond with a total face value of Euro 10 million to institutional investors on 22 July 2019.The coupon rate of the bond is 4.55% and the maturity date is 22 July 2025. Interest payments are made annually and the principle amount will
be paid when the bond becomes due.Page 115BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
34 Long-term payables
Item Note 31 December 2021 ? 1 January 2021 ? 31 December 2020
???????
Obligations under finance leases (1) 1427139181 ? 2982800105 ? 3093196803
Less: Obligations under finance
leases due within one year ? 520546343 ? 970462538 ? 979021120
???????
Total ? 906592838 ? 2012337567 ? 2114175683
???
On December 31 2021 the Group sold and leased back some of its machinery and
equipment and construction in progress. Since asset sales and lease transactions are
interrelated and it is almost certain that they will be repurchased after the lease term
expires the Group conducts accounting treatment according to mortgage loans and
presents them as long-term payables.
(1) Details of obligations under finance leases included in long-term payables
As at 31 December the total future minimum lease payments under finance leases were
as follows:
31 December
Minimum lease payments 2020
??
Within 1 year (inclusive) 1175045108
After 1 year but within 2 years (inclusive) 1061063290
After 2 years but within 3 years (inclusive) 559312651
After 3 years 840557857
??
Sub-total 3635978906
??
Less: Unrecognised finance charges 542782103
??
Total 3093196803
??
Page 116BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
35 Deferred income
Balance at the Amounts
beginning of the Additions during recognised in Balance at
Item year ? the year ? other income ? Other changes ? the end of the year
??????????
Related to assets 2846739619 ? 2244966798 ? (507320798) ? (719112322) ? 3865273297
Related to income 1399491849 ? 2212967205 ? (1045088111) ? (16554629) ? 2550816314
??????????
Total 4246231468 ? 4457934003 ? (1552408909) ? (735666951) ? 6416089611
???
36 Other non-current liabilities
31 December 31 December
Item Note 2021 ? 2020
?????
Contribution of non-controlling interests
with redemption provisions (1) 3020160654 ? 3710474960
Deferred VAT for imported equipment ? 479505410 ? 1472958998
Others ? 36143812 ? 76567485
?????
Total ? 3535809876 ? 5260001443
???
(1) Contribution of non-controlling interests with redemption provisions
The contribution of non-controlling interests with redemption provisions is mainly due to
the redemption obligation of the Company to the non-controlling interests of Fuzhou BOE
and BOE Smart Retail (Hong Kong) Co. Ltd.(“Smart Retail”). The Company recognises
the above non-controlling interests contribution as a financial liability which is
subsequently measured at the cost of amortisation.The put option of non-controlling interest held by the non-controlling shareholders of
Smart Retail is exercisable from 15 March 2022 to 7 May 2022. The Company recognised
the financial liabilities for its redemption obligation for the above non-controlling interests
contributions to non-current liabilities due within one year (Note V.30).Page 117BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
37 Share capital
Balance at the
beginning of the Balance at the end
? year ? Changes during the year ? of the year
Issuance of new Cancellation of
? ? ? shares ? treasury shares ? Sub-total ? ?
??????????
Total shares 34798398763 ? 3650377019 ? (3029300) ? 3647347719 ? 38445746482
???
As approved by the CSRC Permit No. [2021] 2277 the Company has issued
3650377019 A shares through private placement each at the issue price of RMB5.57.
After the capital increase the Company’s total share capital was increased to
34798398763 shares.
On 8 November 2021 repurchased and cancelled 3029300 shares of restricted shares
at China Securities Depository and Clearing Corporation Limited Shenzhen Branch on 8
November 2021. After repurchase and cancellation the total share capital of the Company
reduced from 38448775782 to 38445746482 shares.
38 Other equity instruments
(1) Financial instruments (including perpetual bonds) that remain outstanding at the end of
the year are set out as follows:
Conditions
Outstanding financial Accounting Interest Issuance Maturity date or for Conversion
instruments ? Issuance date ? classification ? rate ? price ? Quantity ? Amount ? renewal status ? conversion ? status
???????????????????
Equity RMB Not Not
19BOEY1 ? 29 October 2019 ? instrument ? 4.00% ? 100/bond ? 80 million ? RMB 8 billion ? 3+N years ? applicable ? applicable
Equity RMB Not Not
20BOEY1 ? 28 February 2020 ? instrument ? 3.64% ? 100/bond ? 20 million ? RMB 2 billion ? 3+N years ? applicable ? applicable
Equity RMB Not Not
20BOEY2 ? 19 March 2020 ? instrument ? 3.54% ? 100/bond ? 20 million ? RMB 2 billion ? 3+N years ? applicable ? applicable
Equity RMB Not Not
20BOEY3 ? 27 April 2020 ? instrument ? 3.50% ? 100/bond ? 20 million ? RMB 2 billion ? 3+N years ? applicable ? applicable
Total ? ? ? ? ? ? ? ? ? 140 million ? RMB 14 billion ? ? ? ? ? ?
???
Page 118BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Major terms
On 29 October 2019 with the approval document No. 1801 [2019] of the China Securities
Regulatory Commission (“CSRC”) the Company successfully issued a renewable
corporate bond to qualified investors. The full name of the bond was Renewable
Corporate Bond Publicly Issued by BOE Technology Group Co. Ltd. (to qualified
investors) in 2019 (the First Phase) which referred to as 19BOEY1 (“2019 bond”); on 28
February 2020 19 March 2020 and 27 April 2020 the Company issued renewable
corporate bonds to qualified investors. The full name of these bonds was Renewable
Corporate Bond Publicly Issued by BOE Technology Group Co. Ltd. (to qualified
investors) in 2020 which referred to as 20BOEY1、20BOEY2、20BOEY3 respectively
(“2020 bond”).Both 2019 bond and 2020 bond have a base term of 3 years and take every three
interest-bearing years as a period. The Company is entitled to choose to extend the
maturity by 1 period at the end of the agreed base term or at the end of each extended
period or choose to fully redeem the 2019 bond and 2020 bond at the end of the period.The nominal interest rate of the 2019 bond and 2020 bond is fixed during the first period
and then is reset once every period. The nominal interest rate in the first period is the initial
benchmark interest rate plus the initial spread and the nominal interest rate in the
subsequent period is adjusted to the current benchmark interest rate plus the initial spread
and 300 basis points. Therefore when the Company exercises the renewal option the
nominal interest rate will significantly increase and the corresponding nominal interest will
also increase sharply. The 2019 bond and 2020 bond have an issuer’s right to defer the
payment of interest. Unless a mandatory interest payment event occurs (including
distributions to ordinary shareholders and decrease of registered capital). At each interest
payment date of the bonds the Company may choose at its discretion whether to defer
the payment of the current interest as well as all the deferred interests and the yields
under this term until the next interest payment date without being subjected to any limit on
the number of interest deferring attempts.The actual issuance of the 2019 bond and 2020 bond amounted to RMB 14000000000
in total and the Company considers that the renewable corporate bonds do not meet the
definition of financial liabilities and therefore will charge the total amount of the issuance
to other equity instruments after deducting underwriting fees and other transaction costs.
(3) Movement of the financial instruments (including perpetual bonds) that remain outstanding
at the end of the year:
Outstanding At the beginning of the year ? Additions during the year ? Accumulated interest ? At the end of the year
financial Carrying Charge for the Paid during the Carrying
instruments Quantity ? Carrying amount ? Quantity ? amount ? year ? year ? Quantity ? amount
????????????????
19BOEY1 80000000 ? 8014033565 ? - ? - ? 320000000 ? (320000000) ? 80000000 ? 8014033565
20BOEY1 20000000 ? 2050610478 ? - ? - ? 72800000 ? (72800000) ? 20000000 ? 2050610478
20BOEY2 20000000 ? 2045184865 ? - ? - ? 70800000 ? (70800000) ? 20000000 ? 2045184865
20BOEY3 20000000 ? 2037168519 ? - ? - ? 70000000 ? (70000000) ? 20000000 ? 2037168519
????????????????
Total 140000000 ? 14146997427 ? - ? - ? 533600000 ? (533600000) ? 140000000 ? 14146997427
???
Page 119BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(4) Relevant information of amounts attributable to holders of equity instruments
31 December 31 December
?2021?2020
????
Attributable to shareholders of the Company 142925547899 ? 103276766835
- Equity attributable to ordinary shareholders
of the Company 128778550472 ? 89129769408
- Equity attributable to holders of the Company’s
other equity instruments 14146997427 ? 14146997427
Equity attributable to non-controlling shareholders 73947595568 ? 70120967879
- Equity attributable to non-controlling ordinary
shareholders 73947595568 ? 70120967879
- Equity attributable to non-controlling
shareholders of other equity instruments - ? -
???
(5) Accrued interest on holders of other equity instruments
In 2021 as the above-mentioned issued renewable corporate bonds are cumulative other
equity instruments the Company accrued interest of RMB 533600000 on renewable
corporate bonds from undistributed profits and paid interest of RMB 533600000 on
renewable corporate bonds.
39 Capital reserve
Other capital
Item Note Share premiums ? reserves ? Total
???????
Balance at the beginning of the year ? 37546517053 ? (110861119) ? 37435655934
Add: Contribution by ordinary
shareholders ? 16219134815 ? - ? 16219134815
Acquisition of non-controlling
interests ? (772223591) ? - ? (772223591)
Disposal of shares of
subsidiaries ? 288039797 ? - ? 288039797
Non-controlling shareholders’
decrease of capital ? 322947 ? - ? 322947
Equity-settled share-based
payment XI. - ? 598701862 ? 598701862
Other movements in equity of
associates V. 11 - ? 51030550 ? 51030550
Cancellation of treasury shares ? (14270384) ? - ? (14270384)
Others ? (32510) ? (2050027) ? (2082537)
???????
Balance at the end of the year ? 53267488127 ? 536821266 ? 53804309393
???
Page 120BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
40 Treasury shares
Balance at the
beginning of the Additions during Reductions during Balance at the end
Item year ? the year ? the year ? of the year
????????
Treasury shares 1036298508 ? 2428003419 ? (48533720) ? 3415768207
????????
Total 1036298508 ? 2428003419 ? (48533720) ? 3415768207
??
According to the Proposal of Repurchase of Certain Public Shares by the Company
deliberated and adopted in the thirty-first meeting of the ninth session of the Board of
Directors meeting held on 27 August 2021 the Company completed repurchase of shares
through centralised price bidding before 2 September 2021. As at 31 December 2021 the
Company repurchased 460419000 A shares in total by paying total consideration of RMB
2428003419.
The repurchased shares are placed with the designated securities account for the use of
Company’s repurchase during which the Company is not entitled to have voting rights at
the shareholders’ general meeting or rights of profit appropriations increasing share
capital by transfer of reserves allotment of share and pledge etc. The repurchased shares
will be used for implementing incentive plan. For shares failed to be used in this way within
36 months after being repurchased the shares will be cancelled by performing related
procedures.According to the Proposal of Repurchase and Cancellation of Certain Restricted Shares
by the Company deliberated and adopted in the thirty-first meeting of the ninth session of
the Board of Directors meeting held on 27 August 2021 the Company completed
repurchase and cancellation of 3029300 restricted shares before 8 November 2021 at an
average repurchased price of RMB 5.71/share. The corresponding reduction of the
treasury shares are RMB 17299684 the shortfall between the cancelled treasury shares
and the share capital of RMB 14270384 is deducted against Capital reserve—Share
premium.In 2021 the Company recognised RMB 31234036 of restricted share dividends against
Other payables—the Repurchased obligation of restricted shares (Note V. 29) and
Treasury shares.Page 121BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
41 Other comprehensive income
Movements during the year
Balance at the end of Less: Transfer of
previous year Net-of-tax amount Net-of-tax amount other Balance at the end of
attributable to attributable to attributable to comprehensive the year attributable
shareholders of the Less: shareholders of the non-controlling income to retained to shareholders of
Item Company Before-tax amount Income tax expenses Company interests earnings the Company
Items that will not be reclassified to profit or
loss 61411897 25353887 (2660101) 28251223 (237235) (55238785) 34424335
Including: Other comprehensive income
recognised under equity method 194002494 68869497 - 68869497 - (55238785) 207633206
Changes in fair value of investments in
other equity instruments (132590597) (43515610) (2660101) (40618274) (237235) - (173208871)
Items that may be reclassified to profit or
loss (83609969) 127703243 - 162736781 (35033538) - 79126812
Including: Other comprehensive
income recognised under equity method 11835 (339487) - (296553) (42934) - (284718)
Translation differences arising from
translation of foreign currency financial
statements (83621804) 128042730 - 163033334 (34990604) - 79411530
???????
Total (22198072) 153057130 (2660101) 190988004 (35270773) (55238785) 113551147
?
Page 122BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
42 Surplus reserve
Balance at the
beginning of the Additions during Others changes Balance at the
Item ? year ? the year ? during the year ? end of the year
?????????
Statutory surplus reserve ? 2154745360 ? 439649657 ? 5523879 ? 2588871138
Discretionary surplus reserve ? 289671309 ? - ? - ? 289671309
?????????
Total ? 2444416669 ? 439649657 ? 5523879 ? 2889590205
???
43 Retained earnings
Item Note 2021 ? 2020
?????
Retained earnings at the beginning of the
year ? 15509794622 ? 11847851891
Add: Net profits for the year attributable to
shareholders of the Company ? 25830935500 ? 5035627952
Less: Appropriation for statutory surplus
reserve ? 439649657 ? 373919158
Interest on holders of other equity
instruments V.38 533600000 ? 485925480
Dividends to ordinary shares ? 3476073919 ? 695967975
Transfer of other comprehensive
income to retained earnings (a) (49714906) ? (171164417)
Effect of accounting for disposal of
subsidiaries to equity method ? - ? (3454053)
Others ? - ? (7508922)
?????
Retained earnings at the end of the year ? 36941121452 ? 15509794622
???
According to the Annual Shareholders’ Meeting for 2020 held on 18 May 2021 the
Company distributed cash dividends to all shareholders on 3 June 2021 with RMB 1
(2020: RMB 0.2) every 10 shares and a profit distribution amount of RMB 3477021263.
Considering the turnover rate the corresponding dividends of the expected
non-exercisable portions of restricted shares are RMB 947344 with a profit distribution of
RMB 3476073919 (2020: RMB 695967975).As at 31 December 2021 the consolidated retained earnings attributable to the Company
included appropriation to surplus reserves made by the Company’s subsidiaries
amounting to RMB 5464555678 (2020: RMB2958648210).(a) The amounts transferred from other comprehensive income to retained earnings in
2021 are RMB 49714906 of associates’ gains from disposal of other equity
instrument investments included in retained earnings.Page 123BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
44 Operating income and operating costs
?2021?2020
Item Income ? Cost ? Income ? Cost
????????
Principal activities 215525978470 ? 153944778989 ? 131839051171 ? 108604042714
Other operating activities 3783821035 ? 2040446306 ? 3713518558 ? 1805839490
????????
Total 219309799505 ? 155985225295 ? 135552569729 ? 110409882204
????????
Including: Revenue from contracts with
customers 218440488700 ? 155800468061 ? 134406942755 ? 109989259599
Other income 869310805 ? 184757234 ? 1145626974 ? 420622605
???
Information on income of principal activities has been included in Note XV.
45 Taxes and surcharges
?2021?2020
????
Property tax 502150698 ? 401351553
City maintenance and construction tax 386889711 ? 266845054
Education surcharges and local education
surcharges 278848244 ? 192450398
Stamp duty 168092921 ? 136589158
Land use tax 49797281 ? 45748963
Others 38426971 ? 35914959
????
Total 1424205826 ? 1078900085
???
46 Selling and distribution expenses
?2021?2020
????
Warranty provisions 3417085420 ? 1616634833
Staff costs 1350848641 ? 965992069
Share-based payments 75191185 ? 2050630
Others 641464732 ? 553606114
????
Total 5484589978 ? 3138283646
???
Page 124BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
47 General and administrative expenses
?2021?2020
????
Staff costs 3810075453 ? 2869736815
Repair expense 94713646 ? 55659465
Depreciation and amortisation 931978993 ? 726690746
Share-based payments 218406816 ? 4976462
Others 1638198681 ? 943208154
????
Total 6693373589 ? 4600271642
???
48 Research and development expenses
?2021?2020
????
Staff costs 5164241234 ? 3621724397
Material expenses 2104436143 ? 1395642077
Depreciation and amortisation 1972135608 ? 1501402837
Share-based payments 242035555 ? 7180405
Others 1185995647 ? 1112652995
????
Total 10668844187 ? 7638602711
???
Page 125BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
49 Financial expenses
?2021?2020
????
Interest expenses from loans 5219339546 ? 4807347590
Less: Borrowing costs capitalised 352561213 ? 1309649881
Interest income from bank deposits (1050431325) ? (873376712)
Net exchange gains (248019022) ? (73110352)
Other financial expenses 114051216 ? 98943327
????
Total 3682379202 ? 2650153972
???
The interest rate per annum at which the borrowing costs were capitalised by the Group
was 0.76% - 3.24% (2020: 1.77% - 3.81%) for the year. For details refer to Note V.16.Construction in progress.
50 Other income
?2021?2020
????
Government grants related to assets 507320798 ? 310532631
Government grants related to income 1567752188 ? 2016628502
Others 17692742 ? 10544684
????
Total 2092765728 ? 2337705817
???
The amount of government subsidies related to income received by the Group in 2021 and
directly included in other income was RMB 522664077.Page 126BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
51 Investment income
? Note 2021 ? 2020
?????
Income from long-term equity investments
accounted for using the equity method V. 11 1245036895 ? 444407986
Investment income from disposal of
long-term equity investments ? 37327797 ? 280374469
Dividend income from investments in other
equity instruments V. 12 24695749 ? 26376687
Including: Dividend income from
investments in other equity instruments
held at the balance sheet date ? 24695749 ? 26376687
Investment income from disposal of
financial assets held for trading ? 36689179 ? 18157931
Interest income from debt investments ? - ? 22213061
Investment income from disposal of debt
investments ? 3739725 ? 10391153
Gain from remeasurement of remaining
equity interests to fair value upon the
loss of control ? - ? 95969822
?????
Total ? 1347489345 ? 897891109
???
52 Gains from changes in fair value
Item 2021 ? 2020
????
Financial assets held for trading 84966963 ? 31936339
????
Total 84966963 ? 31936339
???
53 Credit losses
Item 2021 ? 2020
????
Accounts receivable 28250160 ? (2339323)
Other receivables 159709 ? 511804
????
Total 28409869 ? (1827519)
???
Page 127BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
54 Impairment losses
?2021?2020
????
Impairment losses of inventories 3437630440 ? 2509374165
Impairment losses of fixed assets 675831912 ? 505201450
Impairment losses of construction in progress 83037514 ? -
Impairment losses of long-term equity investments 2009770 ? 265641984
Impairment losses of goodwill 279742216 ? -
Impairment losses of contract assets - ? 207800
????
Total 4478251852 ? 3280425399
???
55 Gains from asset disposals
Amount recognised
in extraordinary
gain and loss in
Item 2021 ? 2020 ? 2021
??????
Gains from the disposal of assets held for sale 156565635 ? - ? 156565635
(Losses) /gains from disposal of fixed assets (4596757) ? 11403591 ? (4596757)
Gains from disposal of intangible assets 29726 ? 7658255 ? 29726
Losses from disposal of construction in
progress (94570) ? - ? (94570)
Gains from disposal of right-of-use assets 1601757 ? - ? 1601757
??????
Total 153505791 ? 19061846 ? 153505791
???
Page 128BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
56 Non-operating income and non-operating expenses
(1) Non-operating income by item is as follows:
Amount recognised
in extraordinary
gain and loss in
Item 2021 ? 2020 ? 2021
??????
Government grants 2464320 ? 4946559 ? 2464320
Others 129143626 ? 115557069 ? 129143626
??????
Total 131607946 ? 120503628 ? 131607946
???
Government grants recognised in profit or loss for the current period
Item 2021 ? 2020
????
Policy incentives and others 2464320 ? 4946559
??
(2) Non-operating expenses
Amount recognised
in extraordinary
gain and loss in
?2021?2020?2021
??????
Donations provided 4901023 ? 13324588 ? 4901023
Losses from scrapping of non-current assets 18096305 ? 22698482 ? 18096305
Others 32217774 ? 36116596 ? 32217774
??????
Total 55215102 ? 72139666 ? 55215102
???
Page 129BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
57 Income tax expenses
? Note 2021 ? 2020
?????
Current tax expense based on tax law and
regulations ? 4072640975 ? 1547783003
Changes in deferred tax assets/liabilities (1) 115330429 ? 16783243
?????
Total ? 4187971404 ? 1564566246
???
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
?2021?2020
????
Origination and reversal of temporary differences 115330429 ? 16783243
???
(2) Reconciliation between income tax expenses and accounting profit:
?2021?2020
????
Profit before taxation 34619640378 ? 6092836662
Expected income tax expenses at tax rate of 15% 5192946057 ? 913925499
Add: Effect of different tax rates applied by
subsidiaries 54451529 ? (26770857)
Effect of non-deductible costs expenses and
losses 236708708 ? 89724266
Tax effect of weighted deduction and tax
preference (1428917005) ? (643677261)
Utilisation of prior year tax losses (1690731054) ? (95546933)
Tax effect of deductible losses of deferred tax
assets not recognised 815217892 ? 515687922
Tax effect of deductible temporary differences
of deferred tax assets not recognised 1076320364 ? 811223610
Effects of tax rate changes on deferred tax (68025087) ? -
????
Income tax expenses 4187971404 ? 1564566246
???
Page 130BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
In order to further encourage enterprises to increase investment in research and
development support scientific and technological innovation according to the
Announcement on Further Improvements to the Policy of Weighted Pre-tax Deduction for
R&D Expenses (MOF and STA Announcement [2021] No. 13) during the period from
1 January 2021 the R&D expenses which do not form intangible assets and are included
in the current profit or loss for the manufacturing enterprises can be deducted in
accordance with provisions with 100% of the actual amount is deducted before tax
additionally (2020: 75%). If intangible assets are formed the 200% of R&D expenditures
can be deducted before tax during the aforementioned period with the aim of motivating
R&D activities (2020: 175%).
58 Basic earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable to
ordinary shareholders of the Company by the weighted average number of ordinary
shares outstanding. The Group does not have any potential dilutive ordinary shares for the
listed years.?2021?2020
????
Consolidated net profit attributable to shareholders
of the Company 25830935500 ? 5035627952
Less: Current interest of other equity instruments 533600000 ? 485925480
Less: Current dividends of restricted shareholders 31234036 ? -
Consolidated net profit attributable to ordinary
shareholders of the Company 25266101464 ? 4549702472
Weighted average number of ordinary shares
outstanding(shares) 35704986088 ? 34684107122
Basic earnings per share (RMB/share) 0.71 ? 0.13
???
Weighted average number of ordinary shares is calculated as follows:
?2021?2020
????
Issued ordinary shares at the beginning of the year 34448398830 ? 34798398763
Add: Weighted average number of ordinary shares
issued in current period 1330137380 ? -
Less: Weighted average number of ordinary shares
repurchased in current period 73550122 ? 114291641
????
Weighted average number of ordinary shares at the
end of the year 35704986088 ? 34684107122
??
Page 131BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
59 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
?2021?2020
????
(a) Reconciliation of net profit to cash flows from
operating activities: ? ? ?
????
Net profit 30431668974 ? 4528270416
Add: Credit losses 28409869 ? (1827519)
Impairment loss 4478251852 ? 3280425399
Depreciation of fixed assets investment
properties and right-of-use assets 33432161074 ? 21680555167
Amortisation of intangible assets 1185263603 ? 758817609
Amortisation of long-term deferred expenses 130732527 ? 123440347
Gains from disposal of fixed assets intangible
assets and other long-term assets (154943108) ? (19786363)
Losses from scrapping of fixed assets and
intangible assets 18096305 ? 22698482
Financial expenses 4521336008 ? 3835299300
Gains from changes in fair value (84966963) ? (31936339)
Investment income (1347489345) ? (897891109)
Share-based payments 640692637 ? 15779427
Change in deferred income 2177609983 ? 2101629423
Change in deferred tax assets 14705564 ? 43112673
Change in deferred tax liabilities 100681820 ? (26272475)
Increase in inventories (13339890401) ? (6687901867)
Decrease in operating receivables (8905074070) ? 2870511767
Increase in operating payables 8943309995 ? 7656849120
????
Net cash flows from operating activities 62270556324 ? 39251773458
??
(b) Change in cash and cash equivalents: ? ? ?
????
?2021?2020
????
Cash and cash equivalents at the end of the
year 76623486083 ? 68064736371
Less: Cash and cash equivalents at the
beginning of the year 68064736371 ? 50270321573
????
Net increase in cash and cash equivalents 8558749712 ? 17794414798
???
Page 132BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Details of cash and cash equivalents
?2021?2020
????
Cash on hand 451975 ? 401041
Bank deposits available on demand 76549790015 ? 68063719329
Other monetary funds available on demand 73244093 ? 616001
????
Closing balance of cash and cash equivalents 76623486083 ? 68064736371
???
Note: The cash and cash equivalents disclosed above do not include the interest accrued on
bank deposits at the end of the period and the use of other currency funds subject to
restrictions.Page 133BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
60 Assets with restrictive ownership title or right of use
Balance at the
beginning of the Additions during the Decreases during Balance at the end
Item year ? year ? the year ? of the year ? Reason for restriction
??????????
Mainly deposits pledged
Cash at bank and on hand 5488099634 ? 4346124249 ? (5681518718) ? 4152705165 ? for drawing bills payable
Endorsed with resource
and pledged for drawing
Bills receivable 60214157 ? 23902855 ? (60214157) ? 23902855 ? bill
Factored and discounted
Accounts receivable 44682510 ? - ? (44682510) ? - ? with recourse
Investment properties 42959088 ? - ? (1711883) ? 41247205 ? Mortgaged as collateral
Fixed assets 168972932363 ? 33155613526 ? (30693385203) ? 171435160686 ? Mortgaged as collateral
Construction in progress 21137162080 ? 1054881215 ? (21875808725) ? 316234570 ? Mortgaged as collateral
Intangible assets 1769040417 ? - ? (145529918) ? 1623510499 ? Mortgaged as collateral
??????????
Total 197515090249 ? 38580521845 ? (58502851114) ? 177592760980 ? ?
???
61 Details of provision for impairment of assets
? ? ? ? ? ? Reductions during the year ? ?
Balance at the Reduction of
beginning of the Additions disposals of Translation Balance at the
Item Note year ? during the year ? Reversals ? Transferred out ? subsidiaries ? differences ? end of the year
? ? RMB ? RMB ? RMB ? RMB ? ? ? RMB ? RMB
???????????????
Provision for bad and
doubtful debts V. 4 6 66907034 ? 48714170 ? (20304301) ? (3634393) ? - ? (871554) ? 90810956
Provision for
impairment of
inventories V. 7 3284895754 ? 4648923385 ? (1211292945) ? (1102349090) ? - ? (8449208) ? 5611727896
Provision for
impairment of
long-term equity
investments V. 11 1029044819 ? 2009770 ? - ? - ? - ? (5774434) ? 1025280155
Provision for
impairment of fixed
assets V. 15 1261446529 ? 675831912 ? - ? (44192143) ? - ? - ? 1893086298
Provision for
impairment of
construction in
progress V. 16 - ? 83037514 ? - ? (38543690) ? - ? - ? 44493824
Provision for
impairment of
goodwill V. 18 201190529 ? 279742216 ? - ? - ? - ? - ? 480932745
Provision for
impairment of
contact assets V. 8 207800 ? - ? - ? - ? (207800) ? - ? -
???????????????
Total ? 5843692465 ? 5738258967 ? (1231597246) ? (1188719316) ? (207800) ? (15095196) ? 9146331874
???
For reasons of recognition of impairment losses refer to the notes of relevant assets.Page 134BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
62 Leases
(1) As a lessee
Right-of-use assets
Plant &
buildings Equipment Others Total
?????
Cost ? ? ? ?
Balance at 1 January 2021 348032248 107357735 185706910 641096893
Additions during the year 260335669 - 7595813 267931482
Decreases during the year (35750138) - (390642) (36140780)
Translation differences (5369812) - (27066) (5396878)
?????
Balance at 31 December 2021 567247967 107357735 192885015 867490717
?????
Accumulated depreciation ? ? ? ?
Balance at 1 January 2021 4864383 17553554 - 22417937
Charge for the year 92871001 4460177 9766521 107097699
Decreases during the year (14948166) - (143906) (15092072)
Translation differences (99665) - 2581 (97084)
?????
Balance at 31 December 2021 82687553 22013731 9625196 114326480
?????
Provision for impairment ? ? ? ?
Balance at 1 January 2021 and
31 December 2021 - - - -
??????????
Carrying amount ? ? ? ?
Carrying amount at 31 December
202148456041485344004183259819753164237
?????
Carrying amount at 1 January
202134316786589804181185706910618678956
???????
Page 135BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Lease liabilities
Item Note 31 December 2021 ? 1 January 2021
?????
Long-term lease liabilities ? 761918319 ? 603790032
Less: lease liabilities due within one
year V.30 92788055 ? 54758789
?????
Total ? 669130264 ? 549031243
???????
In 2021 the Group as the lessee chooses the simplified treatment method for short-term
lease expenses low-value asset lease expenses and the amount of income obtained from
sublease of right-of-use assets is not significant.Page 136BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
VI. Change of consolidation scope
1 Disposal of subsidiaries
(1) Disposal of investments in subsidiaries through a single transaction resulting in loss of control
Difference Investment
between income or loss
consideration transferred from
received and the Gain or loss other
related share of net Proportion of Carrying amount Fair value of from Method and key comprehensive
Basis for assets in remaining of remaining remaining equity remeasurement assumptions for income related to
Shareholding determining consolidated shareholding equity interests interests on the of remaining determining the fair value previous equity
Disposal being Disposal Date of losing date of losing financial on the date of on the date of date of losing equity interests of remaining equity investments in
Name of enterprise price disposed (%) method control control statements losing control losing control control to fair value interests subsidiaries
?????????????
Received the
consideration
paid by the
Beijing Smart-aero Display Transfer by buyer
Technology Co. Ltd. 88028400 100% agreement 29 July 2021 39320405 - - - - - -
The Group recognised a gain of RMB39320405 on disposal of Beijing Smart-aero Display Technology Co. Ltd. resulting in loss of control which
has been included in investment income of consolidated financial statements.
2 Change of consolidation scope
The Company has no significant change of consolidation scope during the year.Page 137BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
VII. Interests in other entities
1 Interests in subsidiaries
(1) Composition of the Group
Shareholding (or similar equity
? ? ? ? ? ? ? ? ? interest) percentage ? ?
Principal
place of Registered
Name of the subsidiary business ? place ? Business nature ? Registered capital ? Direct ? Indirect ? Acquisition method
??????????????
Beijing BOE Optoelectronics Research and development (“R&D”) design and
Technology Co. Ltd. Beijing China ? Beijing China ? manufacturing of TFT-LCD ? USD 649110000 ? 82.49% ? 17.51% ? Founded by investment
Business combinations
Chengdu BOE Optoelectronics Chengdu Chengdu R&D design manufacturing and RMB involving entities not
Technology Co. Ltd. China ? China ? sale of new display devices and components ? 25000000000 ? 100% ? - ? under common control
Investment construction R&D production and sales of the Business combinations
Hefei BOE Optoelectronics Technology relevant products of thin film transistor LCD and its auxiliary RMB involving entities not
Co. Ltd. Hefei China ? Hefei China ? products ? 9000000000 ? 100% ? - ? under common control
Beijing BOE Display Technology Co. Development of TFT-LCD RMB
Ltd. Beijing China ? Beijing China ? manufacturing and sale of LCD ? 17882913500 ? 97.17% ? 2.83% ? Founded by investment
Investment construction R&D production and sales of the Business combinations
Hefei Xinsheng Optoelectronics relevant products of thin film transistor LCD and its auxiliary RMB involving entities not
Technology Co. Ltd. Hefei China ? Hefei China ? products ? 19500000000 ? 99.97% ? 0.03% ? under common control
Ordos Yuansheng Optoelectronics Co. Manufacture and sales of AM-OLED products and auxiliary RMB
Ltd. Ordos China ? Ordos China ? products ? 11804000000 ? 100% ? - ? Founded by investment
R&D production and sales of semi-conducting display Business combinations
Chongqing BOE Optoelectronics Chongqing Chongqing devices complete machine and related products; import & RMB involving entities not
Technology Co. Ltd. China ? China ? export of goods and technology consulting ? 19226000000 ? 100% ? - ? under common control
Investment construction R&D production and sales of the
relevant products of thin film transistor LCD and its auxiliary
products (separate business site); self-support and agency for
the import and export of various goods and technologies
except those goods and technologies that are restricted by the
country or prohibited from import and export; business
management consulting and services; property leases;
machinery and equipment leases; technology development
transfer consulting and services related to LCD products (For
business activities subject to approval in accordance with laws Business combinations
Fuzhou BOE Optoelectronics Fuzhou and regulations operations may be conducted only with the RMB involving entities not
Technology Co. Ltd. China ? Fuzhou China ? approval of the relevant government authorities.). ? 17600000000 ? 83.24% ? - ? under common control
Manufacture of LCD TV LCD; technology development of
Beijing BOE Video Technology Co. terminal products and systems such as TFT-LCD display and RMB
Ltd. (“BOE Video”) Beijing China ? Beijing China ? TV ? 4093500000 ? 100% ? - ? Founded by investment
? ? ? ? ? ? ? ? ? Shareholding (or ? ?
Page 138BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
similar equity
interest)
percentage
Principal
place of Registered
Name of the subsidiary business ? place ? Business nature ? Registered capital ? Direct ? Indirect ? Acquisition method
??????????????
Beijing BOE Vacuum Electronics Co. Manufacture and sale of
Ltd. Beijing China ? Beijing China ? vacuum electronic products ? RMB 33250000 ? 57.89% ? - ? Founded by investment
Beijing BOE Vacuum Technology Co.Ltd. Beijing China ? Beijing China ? Manufacture and sale of electronic tubes ? RMB 32000000 ? 100% ? - ? Founded by investment
*Beijing Smart-Aero Display
Technology Co. Ltd. (Formerly
known as Beijing BOE Special Development of display products and RMB
Display Technology Co. Ltd.) Beijing China ? Beijing China ? sale of electronic products ? 100000000 ? 100% ? - ? Founded by investment
Management of engineering projects;
real estate development; public parking lot for motor vehicles RMB
Beijing Yinghe Century Co. Ltd. Beijing China ? Beijing China ? service; market survey ? 233105200 ? 100% ? - ? Founded by investment
BOE Optical Science and technology Suzhou R&D production and sales of LCD back light for display and RMB
Co. Ltd. China ? Suzhou China ? related components ? 826714059 ? 95.17% ? - ? Founded by investment
BOE Hyundai LCD (Beijing) Display Development manufacture and sale of USD
Technology Co. Ltd. Beijing China ? Beijing China ? liquid display for mobile termination ? 5000000 ? 75% ? - ? Founded by investment
BOE (Hebei) Mobile Technology Co. Langfang Langfang Manufacture and sale of mobile flat screen display technical RMB
Ltd. China ? China ? products and related services ? 1358160140 ? 100% ? - ? Founded by investment
Technology development technology transfer technology
consulting and technology services; sales of computer
software hardware and auxiliary equipment digital video and
audio technology products electronic digital products video
telephone mobile phones and spare parts hardware
(excluding electric bicycle) household appliances
photographic equipment sporting goods Class I medical
devices lamps stationery cosmetics bathroom appliances
knitwear and textile clothing daily necessities timepieces
glasses toys and food; equipment maintenance; import and
export of goods; basic software services; application software
service; machinery and equipment leases; design production
agency and publication of advertisements. (Market
participants independently select the business activities and
carry out the business activities in accordance with laws and
regulations; sales of food and business activities subject to
approval in accordance with laws and regulations operations
may be conducted only with the approval of relevant
Beijing BOE Multimedia Technology government authorities; business activities prohibited and RMB
Co. Ltd. Beijing China ? Beijing China ? restricted by the industrial policies of the state and the city.) ? 400000000 ? 100% ? - ? Founded by investment
Design consultancy and service of solar cell photovoltaic
system wind power system and solar thermal system as well RMB
Beijing BOE Energy Technology Beijing China ? Beijing China ? as the assembly units; energy-saving service ? 850000000 ? 100% ? - ? Founded by investment
Page 139BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Shareholding (or similar equity interest)
? ? ? ? ? ? ? ? ? percentage ? ?
Principal
place of Registered
Name of the subsidiary business ? place ? Business nature ? Registered capital ? Direct ? Indirect ? Acquisition method
??????????????
Technology promotion services property RMB
Beijing BOE Life Technology Co. Ltd. Beijing China ? Beijing China ? management sales of electronic products ? 24000000 ? 100% ? - ? Founded by investment
Beijing Zhongxiangying Technologies Technology promotion services property RMB
Co. Ltd. Beijing China ? Beijing China ? management sales of electronic products ? 100000000 ? 100% ? - ? Founded by investment
Ordos City Haosheng Energy RMB
Investment Co. Ltd. Ordos China ? Ordos China ? Energy investment ? 30000000 ? - ? 100% ? Founded by investment
Processing manufacturing and sales of precision
electronic components semi-conductor devices
micro modules microelectronic devices and RMB
BOE Semi-conductor Co. Ltd. Beijing China ? Beijing China ? electronic materials; import & export of goods ? 11250000 ? 84% ? - ? Founded by investment
British Virgin USD
BOE Optoelectronics Holding Co.Ltd Hong Kong ? Islands ? Investment holding ? 1000000000 ? 100% ? - ? Founded by investment
BOE (Korea) Co.Ltd. Korea Korea Wholesale and retail trade KRW95000000 100% - Founded by investment
Business combinations
BOE Healthcare Investment & RMB involving entities not under
Management Co. Ltd. Beijing China ? Beijing China ? Investment management and project investment ? 7300000000 ? 100% ? - ? common control
Colour TV set display tube colour RPTV projection Business combinations
tube and materials of electronic components; involving entities not under
Beijing*Matsushita Colour CRT Co. Ltd. Beijing China ? Beijing China ? property management and parking services etc. ? RMB 325754049 ? 88.80% ? - ? common control
Business combinations
Investment R & D and production of products involving entities not under
Hefei BOE Display Technology Co. Ltd. Hefei China ? Hefei China ? related to TFT-LCD and the supporting facility ? RMB 24000000000 ? 8.33% ? - ? common control
Beijing BOE Technology Development Development transfer consulting and service of
Co. Ltd. Beijing China ? Beijing China ? technology ? RMB 1000000 ? 100% ? - ? Founded by investment
Investment construction R&D production and sales
of products related to OLED display device and
Hefei BOE Zhuoyin Technology Co. Ltd. Hefei China ? Hefei China ? auxiliary products ? RMB 800000000 ? 75% ? - ? Founded by investment
Development construction property management
and supporting service of industrial plants and
supporting facilities; information consulting of real
estate; lease of commercial facilities commercial
attendants and the supporting service facilities;
Beijing BOE Real Estate Co. Ltd. Beijing China ? Beijing China ? motor vehicles public parking service ? RMB 55420000 ? 70% ? - ? Founded by investment
Page 140BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Shareholding (or similar equity interest)
? ? ? ? ? ? ? ? ? percentage ? ?
Principal
place of Registered
Name of the subsidiary business ? place ? Business nature ? Registered capital ? Direct ? Indirect ? Acquisition method
??????????????
Sales of communication equipment hardware &
software of computer and peripheral units electronic
products equipment maintenance; development
transfer consulting and service providing of
technologies; import & export of goods and
technologies agency of import & export;
manufacturing consignment of electronic products
Beijing BOE Marketing Co. Ltd. Beijing China ? Beijing China ? and LCD devices ? RMB 50000000 ? 100% ? - ? Founded by investment
Development promotion transfer consultation and
services of display technology; computer software
hardware and network system services; the
construction operations and management of
e-commerce platform; product design; conference
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
Yunnan Chuangshijie Optoelectronic projects; import and export of goods andTechnology Co. Ltd. (“Yunnan Kunming technologies; property leases machinery and RMBChuangshijie”) China ? Kunming China ? equipment leases ? 3040000000 ? 79.10% ? - ? Founded by investment
R&D production and sales of flexible AMOLED the
products are mainly Business combinations
Mianyang BOE Optoelectronics Mianyang Mianyang used in smart phones wearable devices car involving entities not under
Technology Co. Ltd. China ? China ? display AR/VR etc. ? RMB 26000000000 ? 83.46% ? - ? common control
Formation of X-ray sensors microfluidic chips
biochemical chips gene chips security sensors
microwave antennas biosensors logistics network
technology and other semiconductor sensors
Beijing BOE Sensing Technology Co. technology testing technical consulting technical RMB
Ltd. Beijing China ? Beijing China ? services technology transfer ? 4651482400 ? 100% ? - ? Founded by investment
Investing researching manufacturing Business combinations
Wuhan BOE Optoelectronics and selling TFT-LCD products and accessory RMB involving entities not under
Technology Co. Ltd. (Wuhan BOE) Wuhan China ? Wuhan China ? products ? 26000000000 ? 47.14% ? - ? common control
R&D manufacture and sales of semiconductor Business combinations
Chongqing BOE Display Technology Chongqing Chongqing display devices whole widget and relevant products involving entities not under
Co. Ltd. China ? China ? import and export of goods and technical consulting ? RMB 21124724750 ? 38.46% ? - ? common control
R&D production and sales of semiconductor display
device-related products and related products; import
or export of goods or technology; display device and
component other electronic components and
technology development technology transfer
technical consulting related fields related to display
devices and electronic products technical services;
business management consulting; property Business combinations
Fuzhou BOE Display Technology Co. Fuzhou management; house rental; machinery and RMB involving entities not under
Ltd. (“Fuzhou BOE Display”) China ? Fuzhou China ? equipment rental ? 50000000 ? 43.46% ? - ? common control
Page 141BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Shareholding (or similar equity interest)
? ? ? ? ? ? ? ? ? percentage ? ?
Principal
place of Registered
Name of the subsidiary business ? place ? Business nature ? Registered capital ? Direct ? Indirect ? Acquisition method
??????????????
Support colour electronic paper segment LCD
TFT-LCD display covering ESL multi-frequency
protocol Wi-Fi BLE and NFC; multiple
communication methods integrated electronic
paper supply chain resources and downstream
software around electronic shelf labels platform Business combinations
Nanterre Nanterre image recognition and big data analytics resources EUR involving entities not under
SES Imagotag SA Co.Ltd. France France ? to create a complete solution for the retail industry ? 31516216 ? - ? 60.20% ? common control
R&D production and sales of Mini LED backlight
Hefei BOE Xingyu Technology Co. Ltd. components and Mini LED display module USD
(“Hefei Xingyu”) Hefei China ? Hefei China ? components ? 115380000 ? 53.86% ? - ? Founded by investment
Technology development technology consulting
technology services technology transfer and
technology promotion; software development;
basic software services; application software
services; computer system services; sales of
stationery items sporting goods household
appliances and electronic products; business
management; market research; economic and
trade consulting; business management
consulting; education consulting; public relations
services; corporate image planning; exhibition and
presentation activities; conference services;
research and experimental development in the
natural sciences; research and experimental
development in engineering and technology;
agricultural scientific research and experimental
development; medical research and experimental
development; copyright agency; arts and crafts
creation services. (Market participants
independently select the business activities and
carry out the business activities in accordance with
laws and regulations; sales of food and business
activities subject to approval in accordance with
laws and regulations operations may be
conducted only with the approval of relevant
government authorities; business activities
prohibited and restricted by the industrial policies of RMB
BOE Education Technology Co. Ltd. Beijing China ? Beijing China ? the state and the city.) ? 55000000 ? 100% ? - ? Founded by investment
Page 142BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Shareholding (or similar equity
? ? ? ? ? ? ? ? ? interest) percentage ? ?
Principal
place of Registered
Name of the subsidiary business ? place ? Business nature ? Registered capital ? Direct ? Indirect ? Acquisition method
??????????????
Technology development technology services;
application software services; basic software
services; sales of daily necessities fresh fruit fresh
vegetables primary edible agricultural products
household appliances electronic products and
sporting goods; trade agency; translation services;
conference services; organisation of cultural and
artistic interchange activities (excluding shows);
exhibition and presentation activities; design
production agency and publication of
advertisements; enterprise management; market
research; real estate information consulting;
warehousing services; public relations services;
health management health consulting (excluding
diagnosis and treatment activities subject to the
approval); ticket agency; hotel booking agency;
airline ticket sales agency; railway and passenger
ticket agency services; tourism consulting; hotel
management; automobile leases; property
management; public parking services for motor
vehicle; landscaping management; cleaning
services; import and export of goods import and
export agency import and export of technologies;
car decoration; operation of sporting events
(excluding high-risk sports); accommodation (branch
operation only); catering services (branch operation
only); beauty services hairdressing services (branch
operation only); medical services (branch operation
only); family services (branch operation only);
inbound tourism business; sales of food; internet
information services. (Market participants
independently select the business activities and
carry out the business activities in accordance with
laws and regulations; sales of food and business
activities subject to approval in accordance with laws
and regulations operations may be conducted only
with the approval of relevant government authorities;
Dongfang Chengqi (Beijing) Business business activities prohibited and restricted by the RMB
Technology Co. Ltd. Beijing China ? Beijing China ? industrial policies of the state and the city.) ? 10000000 ? 100% ? - ? Founded by investment
RMB
BOE Innovation Investment Co. Ltd. Beijing China ? Beijing China ? Project investment and investment management ? 800000000 ? 100% ? - ? Founded by investment
Provision of hardware and software integrated
system solutions for the IoT market segment;
intelligent city intelligent transport intelligent
finance intelligent park and the display terminal
BOE Smart Technology Co. Ltd. Beijing China ? Beijing China ? products such as the intelligent all-in-one machines ? RMB 6521250000 ? 100% ? - ? Founded by investment
Page 143BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Shareholding (or
similar equity
interest)
? ? ? ? ? ? ? ? ? percentage ? ?
Principal
place of Registered
Name of the subsidiary business ? place ? Business nature ? Registered capital ? Direct ? Indirect ? Acquisition method
??????????????
R&D production and sale of TFT-LCD panels colour
filters and LCD whole-widget modules; providing
products and business-related services as well as
Nanjing BOE Display Technology Co. other business activities related to the above; import Business combinationsLtd. (formerly known as “Nanjing CEC Nanjing and export of proprietary and agent commodities and RMB involving entities not underPanda FPD Technology Co. Ltd.”) China ? Nanjing China ? technologies ? 17500000000 ? 80.83% ? - ? common control
R&D production and sales of TFT-LCD panels and
modules liquid crystal display monitors televisions
instruments machinery equipment and accessories
as well as provision of technical services; foreign Business combinations
Chengdu CEC Panda Display Chengdu trade in form of import and export of goods and RMB involving entities not under
Technology Co. Ltd. China ? Chengdu China ? technology ? 21550000000 ? 35.03% ? - ? common control
Technology development technology consulting
technology transfer technology services; software
development; basic software services; application
software services; computer system services;
internet data services (data centres in Internet data
services excluding cloud computing data centres
with a PUE over 1.4); information processing and
storage support services; general construction
contracting professional contracting labour
subcontracting; installation maintenance and lease
of equipment; literary and artistic creation; computer
animation design; product design; enterprise
management; enterprise management consulting;
sales of computer software and auxiliary equipment
BOE Mled Technology Co. Ltd. Beijing China Beijing China electronic products RMB 950000000 100% - Founded by investment
Page 144BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
* Beijing Smart-Aero Display Technology Co. Ltd. was disposed on 29 July 2021 see Note
VI.1.The Company signed an agreement of acting in concert with Hefei Core Screen Industrial
Investment Fund (Limited Partnership) on 23 January 2019. Hefei Core Screen Industrial
Investment Fund (Limited Partnership) agreed to act as a person acting in concert according
to the wishes of the Company and exercised the voting rights unconditionally and irrevocably
in accordance with the opinions of the Company. Therefore the Company’s voting right ratio
to Hefei Display Technology is 100%.The Company signed an agreement of acting in concert with the shareholder of Wuhan BOE
Wuhan Airport Economic Development Zone Industrial Development Investment Group Co.Ltd. and Hubei Changbai Industrial Investment Fund Partnership (Limited Partnership) (湖北
省长柏产业投资基金合伙企业（有限合伙）) on 25 December 2018 and 5 February 2021.Wuhan Airport Economic Development Zone Industrial Development Investment Group Co.Ltd. and Hubei Changbai Industrial Investment Fund Partnership (limited Partnership) agreed
to follow the Company’s will to act as the persons acting in concert unconditionally and
irrevocably exercising voting rights in accordance with the opinions of the Company the
voting rights of the Company to Wuhan BOE is 100%.The Company signed an agreement of acting in concert with shareholders of Chongqing BOE
Display Chongqing Strategic Emerging Industry Equity Investment Fund Partnership (Limited
Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co. Ltd. on 25
December 2018. The Company signed an agreement of acting in concert with Chongqing
Jingping Equity Investment Fund Partnership (Limited Partnership) on 31 March 2021. The
Company signed an agreement of acting in concert with Chongqing Jianxin Junheng Private
Equity Fund Partnership (Limited Partnership) on 30 June 2021. Chongqing Strategic
Emerging Industry Equity Investment Fund Partnership (Limited Partnership) Chongqing Yuzi
Optoelectronic Industry Investment Co. Ltd. Chongqing Jingping Equity Investment Fund
Partnership (Limited Partnership) and Chongqing Jianxin Junheng Private Equity Fund
Partnership(Limited Partnership) agreed to act as persons acting in concert according to the
will of the Company and exercise the voting rights unconditionally and irrevocably in
accordance with the opinions of the Company. Therefore the proportion of voting rights of the
Company to Chongqing BOE is 100%.The Company signed an agreement of acting in concert with shareholders of Fuzhou BOE
Display Fuqing City Invested-Construction Investment Group Co. Ltd. and Fuzhou Urban
Construction Investment Group Co. Ltd. on 21 January 2019. Fuqing City
Invested-Construction Investment Group Co. Ltd. and Fuzhou Urban Construction
Investment Group Co. Ltd. agreed to act as persons acting in concert according to the will of
the Company and exercise the voting rights unconditionally and irrevocably in accordance
with the opinions of the Company. Therefore the proportion of voting rights of the Company to
Fuzhou BOE Display is 100%.Page 145BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
The Company signed an agreement of acting in concert with shareholders of Chengdu CEC
Panda and Chengdu Advanced Manufacturing Industry Investment Co. Ltd. Chengdu Airport
Xingcheng Investment Group Co. Ltd. on 17 December 2020. The Company signed an
agreement of acting in concert with Nanjing Panda Information Industry Group Co. Ltd. and
China Electronics Corporation on 31 December 2020. The Company signed an agreement of
acting in concert with Chengdu Xihanggang Industrial Development Investment Co. Ltd. (成
都西航港工业发展投资有限公司) on 18 November 2021. Chengdu Advanced Manufacturing
Industry Investment Co. Ltd. Chengdu Airport Xingcheng Investment Group Co. Ltd.Chengdu Xihanggang Industrial Development Investment Co. Ltd. Nanjing Panda
Information Industry Group Co. Ltd. and China Electronics Corporation agreed to act as
persons acting in concert according to the will of the Company and exercise the voting rights
unconditionally and irrevocably in accordance with the opinions of the Company. Therefore
the proportion of voting rights of the Company to Chengdu CEC Panda is 96.75%.
(2) Material non-wholly owned subsidiaries
Proportion of (Income) / losses
ownership interest attributable to Dividend declared Balance of
held by non-controlling to non-controlling non-controlling
non-controlling interests for the shareholders interests at the
Name of the subsidiary interests ? year ? during the year ? end of the year
????????
Hefei Display Technology 91.67% ? 3038524882 ? - ? 22422308280
Mianyang BOE 16.54% ? 268300651 ? - ? 3933910508
Wuhan BOE 52.86% ? (1712453524) ? - ? 14904450980
???
(3) Key financial information about material non-wholly owned subsidiaries
The following table sets out the key financial information of the above subsidiaries without
offsetting internal transactions but with adjustments made for the fair value adjustment at the
acquisition date and any differences in accounting policies:
? Hefei Display Technology ? Mianyang BOE ? Wuhan BOE
?2021?2020?2021?2020?2021?2020
????????????
Current assets 15797281551 ? 13917088962 ? 9246943007 ? 5001552767 ? 12711279779 ? 11748881218
Non-current assets 24332972509 ? 28144487136 ? 43427820893 ? 45771813314 ? 37827474491 ? 34698575568
????????????
Total assets 40130254060 ? 42061576098 ? 52674763900 ? 50773366081 ? 50538754270 ? 46447456786
????????????
Current liabilities 7432659554 ? 8775178650 ? 7343085123 ? 8221423949 ? 7311202489 ? 5369267140
Non-current liabilities 8237784012 ? 12162697407 ? 21547455635 ? 19783319398 ? 15031465931 ? 15257510868
????????????
Total liabilities 15670443566 ? 20937876057 ? 28890540758 ? 28004743347 ? 22342668420 ? 20626778008
????????????
Operating income 19853911826 ? 15153402394 ? 15201712170 ? 1406636788 ? 15927142620 ? 1775338449
Net profit / (loss) 3314633885 ? 3927966 ? (997825728) ? (830258844) ? 2363022009 ? (158596684)
Total comprehensive income 3314633885 ? 3927966 ? (997825728) ? (830258844) ? 2363022009 ? (158596684)
Cash inflows / (outflows) in operating
activities 8612667782 ? 3819978355 ? 3591201933 ? (1016864877) ? 5734190509 ? 2934840804
??
Page 146BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
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
????
Vacuum Electronics 55.00% ? 57.89%
Yunnan Chuangshijie 79.96% ? 79.10%
Mianyang BOE 66.67% ? 83.46%
Wuhan BOE 23.08% ? 47.14%
Hefei Xingyu 43.40% ? 53.86%
SES Imagotag SA Co. Ltd. 68.48% ? 60.20%
???
(2) Impact from transactions with non-controlling interests and equity attributable to the
shareholders of the Company:
The changes in the shareholding of the Company in the owners of above-mentioned other
subsidiaries were caused by the capital increase of the Company and its non-controlling
interests which results in the increase of capital reserves by RMB 483893357. See Note
V.39.
3 Interests in associates
Please see Note V.11(2) for details of the summarised financial information of the associates.No material restrictions on transfers of funds from investees to the Group. The judgement
basis of the Company and its subsidiaries to hold lower than 20% of the voting rights of other
entities but have significant influence on the entity is due to the fact that the Company and its
subsidiaries have seats in the board of directors of the entity and the Company and
subsidiaries of the Company may have significant influence on the entity through the
representation of the directors in the process of formulating financial and operating policies.Page 147BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
VIII. Risk related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments in the
normal course of the Group’s operations:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign currency risk
- Other price risks
The following mainly presents information about the Group’s exposure to each of the above
risks and their sources their changes during the year and the Group’s objectives policies
and processes for measuring and managing risks and their changes during the year.The Group aims to seek appropriate balance between the risks and benefits from its use of
financial instruments and to mitigate the adverse effects that the risks of financial instruments
have on the Group’s financial performance. Based on such objectives the Group’s risk
management policies are established to identify and analyse the risks faced by the Group to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities. The internal audit department of the Group undertakes
both regular and ad-hoc reviews of risk management controls and procedures.Page 148BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
1. Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. The Group’s credit risk is primarily attributable
to receivables. Exposure to these credit risks are monitored by management on an ongoing
basis.The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does not
expect that these financial institutions may default and cause losses to the Group.In respect of receivables the Group has established a credit policy under which individual
credit evaluations are performed on all customers to determine the credit limit and terms
applicable to the customers. These evaluations focus on the customers’ financial position the
external ratings of the customers and the record of previous transactions. Receivables are
due within 7 to 120 days from the date of billing. Debtors with balances that are past due are
requested to settle all outstanding balances before any further credit is granted. Normally the
Group does not obtain collateral from customers.The Group’s exposure to credit risk is influenced mainly by the individual characteristics of
each customer rather than the industry or country/region in which the customers operate.Therefore significant concentrations of credit risk primarily arise when the Group has
significant exposure to individual customers. At the balance sheet date 39% and 0.001%
(2020: 33% and 0.02%) of the Contract assets total accounts receivable were due from the
five largest customers of the Group and the Company respectively. In addition the accounts
receivable not overdue or impaired is mainly related to many clients who don’t have payment
in arrears records recently.The maximum exposure to credit risk is represented by the carrying amount of each financial
asset in the balance sheet. As mentioned in Note XIII as at 31 December 2021 the Group
does not provide any external guarantees which would expose the Group or the Company to
credit risk.Page 149BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that
are settled by delivering cash or another financial asset. The Company and its individual
subsidiaries are responsible for their own cash management including short-term investment
of cash surpluses and the raising of loans to cover expected cash demands subject to
approval by the Company’s board when the borrowings exceed certain predetermined levels
of authority. The Group’s policy is to regularly monitor its liquidity requirements and its
compliance with lending covenants to ensure that it maintains sufficient reserves of cash
readily realisable marketable securities and adequate committed lines of funding from major
financial institutions to meet its liquidity requirements in the short and longer term.The following tables set out the remaining contractual maturities at the balance sheet date of
the Group’s financial liabilities which are based on contractual undiscounted cash flows
(including interest payments computed using contractual rates or if floating based on rates
current at the balance sheet date) and the earliest date the Group can be required to pay:
? 2021 Contractual undiscounted cash flow ? ?
More than 1 More than 3 Carrying amount
Within 1 year or year but less years but less More than 5 of
? demand ? than 3 years ? than 5 years ? years ? Total ? balance sheet
????????????
Financial liabilities ? ? ? ? ? ? ? ? ? ? ?
Short-term loans 2156682843 ? - ? - ? - ? 2156682843 ? 2072057332
Bills payable 827958031 ? - ? - ? - ? 827958031 ? 827958031
Accounts payable 32455830694 ? - ? - ? - ? 32455830694 ? 32455830694
Other payables 23835374942 ? - ? - ? - ? 23835374942 ? 23835374942
Non-current liabilities due
within one year 29209146646 ? - ? - ? - ? 29209146646 ? 28874958714
Long-term loans 4195689815 ? 19625783023 ? 10743655014 ? 102812410156 ? 137377538008 ? 116078666587
Debentures payable 13392544 ? 305465507 ? 74023980 ? - ? 392882031 ? 359586437
Lease liabilities - ? 284759263 ? 138423079 ? 333385847 ? 756568189 ? 669130264
Long-term payables - ? 373905903 ? 211205405 ? 457906633 ? 1043017941 ? 906592838
????????????
Total 92694075515 ? 20589913696 ? 11167307478 ? 103603702636 ? 228054999325 ? 206080155839
???
? 2020 Contractual undiscounted cash flow ? ?
More than 1 year More than 3 Carrying amount
Within 1 year or but less than 3 years but less More than 5 of
? demand ? years ? than 5 years ? years ? Total ? balance sheet
????????????
Financial liabilities ? ? ? ? ? ? ? ? ? ? ?
Short-term loans 8778542209 ? - ? - ? - ? 8778542209 ? 8599569471
Bills payable 1231533895 ? - ? - ? - ? 1231533895 ? 1231533895
Accounts payable 27164171682 ? - ? - ? - ? 27164171682 ? 27164171682
Other payables 32867709024 ? - ? - ? - ? 32867709024 ? 32867709024
Non-current liabilities due
within one year 25053537286 ? - ? - ? - ? 25053537286 ? 24500550121
Long-term loans 4957036602 ? 28885981505 ? 24623632349 ? 97458835686 ? 155925486142 ? 132452767135
Debentures payable 14886375 ? 350772750 ? 85932140 ? - ? 451591265 ? 398971739
Long-term payables - ? 1620375941 ? 304011108 ? 536546749 ? 2460933798 ? 2114175683
????????????
Total 100067417073 ? 30857130196 ? 25013575597 ? 97995382435 ? 253933505301 ? 229329448750
??
Page 150BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
3 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to
cash flow interest rate risk and fair value interest risk respectively. The Group determines the
appropriate weightings of the fixed and floating rate interest-bearing instruments based on the
current market conditions and performs regular reviews and monitoring to achieve an
appropriate mix of fixed and floating rate exposure. The Group does not enter into financial
derivatives to hedge interest rate risk.(a.) As at 31 December the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
?2021?2020
Effective interest Effective interest
Item rate ? Amounts ? rate ? Amounts
????????
Financial assets ? ? ? ? ? ? ?
- Cash at bank 0.30% ~ 3.99% ? 36894761961 ? 0.20% ~ 3.74% ? 41745509216
Financial liabilities ? ? ? ? ? ? ?
- Short-term loans 0.50% ~ 5.90% ? (2068800511) ? 0.50% ~ 5.90% ? (6327791477)
- Non-current liabilities due within one year 0% ~ 6.86% ? (9407794957) ? 0% ~ 5.29% ? (12025528359)
- Long-term loans 0% ~ 5.90% ? (28644395246) ? 0% ~ 5.90% ? (49498675910)
- Debentures payable 3.50% ~ 4.55% ? (359586437) ? 3.50% ~ 4.55% ? (398971739)
- Long-term payables 4.65% ~ 6.86% ? (906592838) ? 4.17% ~ 7.02% ? (2114175683)
?
Total ? ? (4492408028) ? ? ? (28619633952)
???
Floating rate instruments:
?2021?2020
Effective interest Effective interest
Item rate ? Amounts ? rate ? Amounts
????????
Financial assets ? ? ? ? ? ? ?
- Cash at bank 0.0001% ~ 2.70% ? 41471269422 ? 0.0001% ~ 3.90% ? 31800233366
Financial liabilities ? ? ? ? ? ? ?
- Short-term loans - ? - ? 2.02% ~ 2.55% ? (2263424127)
- Non-current liabilities due within one year 1.66% ~ 5.88% ? (18827495477) ? 2.78% ~ 5.88% ? (12128797769)
- Long-term loans 2.30% ~ 5.88% ? (87317668185) ? 1.11% ~ 5.39% ? (82790180032)
????????
Total ? ? (64673894240) ? ? ? (65382168562)
???
Page 151BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(b) Sensitivity analysis
As at 31 December 2021 it is estimated that a general increase / decrease of 100 basis
points in interest rates of variable rate instrument with all other variables held constant
would decrease / increase the Group’s net profit and equity by RMB 549530000 (2020:
RMB 557440000).In respect of the exposure to cash flow interest rate risk arising from floating rate
non-derivative instruments held by the Group at the balance sheet date the impact on
the net profit and owner’s equity is estimated as an annualised impact on interest
expense or income of such a change in interest rates. The analysis is performed on the
same basis for the previous year.
4 Foreign currency risk
In respect of cash at bank and on hand accounts receivable and payable short-term loans
and other assets and liabilities denominated in foreign currencies other than the functional
currency the Group ensures that its net exposure is kept to an acceptable level by buying or
selling foreign currencies at spot rates when necessary to address short-term imbalances.(a) The Group’s exposure as at 31 December to currency risk arising from recognized
foreign currency assets or liabilities is mainly denominated in US dollar. The amount of
the USD exposure is net liabilities exposure USD 177293137 (2020 net liabilities
exposure: USD 2618785628) translated into RMB 1130367854 (2020: RMB
17087314344) using the spot rate at the balance sheet date. Differences resulting
from the translation of the financial statements denominated in foreign currency are
excluded.(b) The following are the exchange rates for Renminbi against US dollar applied by the
Group:
? Average rate ? Balance sheet date mid-spot rate
?2021?2020?2021?2020
????????
USD 6.4503 ? 6.7506 ? 6.3757 ? 6.5249
???
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 equity and net profit by the amount RMB 164148318 (2020: increased
/ decreased RMB 333959173).The sensitivity analysis above assumes that the change in foreign exchange rates had
been applied to re-measure those financial instruments held by the Group which expose
the Group to foreign currency risk at the balance sheet date. The analysis excludes
differences that would result from the translation of the financial statements denominated
in foreign currency. The analysis is performed on the same basis for the previous year.
5 Other price risks
Other price risks include stock price risk and commodity price risk.Page 152BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
IX. Fair value disclosure
The following table presents the fair value information and the fair value hierarchy at the end
of the current reporting period of the Group’s assets and liabilities which are measured at fair
value at each balance sheet date on a recurring or non-recurring basis. The level in which fair
value measurement is categorised is determined by the level of the fair value hierarchy of the
lowest level input that is significant to the entire fair value measurement. The levels are
defined as follows:
Level 1 inputs: unadjusted quoted prices in active markets that are observable at the
measurement date for identical assets or liabilities;
Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly
observable for underlying assets or liabilities;
Level 3 inputs: Inputs that are unobservable for underlying assets or liabilities;
1 Fair value of assets measured at fair value at the end of the year
? ? 31 December 2021
Level 1 Fair value Level 2 Fair value Level 3 Fair value
Assets Note measurement ? measurement ? measurement ? Total
?????????
Recurring fair value measurements ? ? ? ? ? ? ? ?
- Financial assets held for trading V. 2 - ? - ? 10028172853 ? 10028172853
Including: Structured deposit
and wealth-management
products ? - ? - ? 10028172853 ? 10028172853
- Investments in other equity
instruments V. 12 168325009 ? - ? 350763137 ? 519088146
- Other non-current financial assets V. 13 - ? - ? 606895447 ? 606895447
Including: Investments in other
equity instruments ? - ? - ? 606895447 ? 606895447
?????????
Total assets measured at fair value
on a recurring basis ? 168325009 ? - ? 10985831437 ? 11154156446
???
? ? 31 December 2020
Level 1 Fair value Level 2 Fair value Level 3 Fair value
Assets Note measurement ? measurement ? measurement ? Total
?????????
Recurring fair value measurements ? ? ? ? ? ? ? ?
- Financial assets held for trading ? - ? - ? 4367201833 ? 4367201833
Including: Structured deposit
and wealth-management
products V. 2 - ? - ? 4367201833 ? 4367201833
- Investments in other equity
instruments V. 12 214214021 ? - ? 319431402 ? 533645423
?????????
Total assets measured at fair value
on a recurring basis ? 214214021 ? - ? 4686633235 ? 4900847256
??
Page 153BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
2 Basis of determining the market price for recurring and non-recurring fair value
measurements categorised within Level 1
The Group uses the active market quote as the fair value of financial assets within Level 1.
3 Valuation techniques used and the qualitative and quantitative information of key parameters
for recurring and non-recurring fair value measurements categorised within Level 3
Financial assets held for trading at recurring fair value within Level 3 are bank wealth
management products. For wealth management products measured at fair value the fair
value is determined based on the discounted cash flow method.Investments in other equity instruments at recurring fair value within Level 3 are unlisted
equity investments held by the Group including:
(i) For those who raised a new round of financing in 2020 the Group used the financing
price as the best estimates of their fair value;
(ii) For other investments in other equity instruments since the operating environment
operating conditions and financial status of the investee have not changed significantly
during the year the Group uses the book investment cost as a reasonable estimate of
fair value for measurement.
4 During 2021 there were no changes in valuation technique of fair value. As at 31 December
the Group held no assets and liabilities measured at fair value. All financial assets and
financial liabilities of the Group are carried at amounts not materially different from their fair
value.Page 154BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
X. Related parties and related party transactions
1 Information about the parent of the Company
Percentage of Ultimate
Registered Shareholding voting rights controlling party
Company name Registered place ? Business nature ? capital ? percentage (%) ? (%) ? of the Company
????????????
Operation and
management of
No. 12 state-owned
Jiuxianqiao assets within
Road Chaoyang authorisation RMB
Beijing Electronics Holding Co. Ltd. District Beijing ? etc. ? 3139210000 ? 0.71% ? 17.87% ? Yes
???
2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Company refer to Note VII.1.
3 Information about joint ventures and associates of the Company
Associates and joint ventures that have related party transactions with the Group during this
year or the previous year are as follows:
Relationship with the
Name of entity Company
??
Beijing Nissin Electronics Precision Component Co. Ltd. Associate of the Group and
the Company
Beijing Nittan Electronic Co. Ltd. Associate of the Group and
the Company
Beijing BOE Art Cloud Technology Co. Ltd. Associate of the Group and
the Company
TPV Display Technology (China) Limited Associate of the Group and
the Company
Beijing Xindongneng Investment Management Co. Ltd. Associate of the Group and
the Company
Shenzhen Yunyinggu Technology Co. Ltd. Associate of the Group and
the Company
Biochain (Beijing) Science-Technology.Inc.Associate of the Group
Beijing BOE Microbial Technology Co. Ltd. Associate of the Group
Hefei Xin Jing Yuan Electronic Materials Co. Ltd. Associate of the Group
Beijing YanDong MicroElectronic Co. Ltd. Associate of the Group
Qingdao Ultra HD Video Innovation Technology Co. Ltd. Associate of the Group
BOE Houji Technology (Beijing) Co. Ltd. Associate of the Group
Changzhou Xiruojia Medical Technology Co. Ltd. Subsidiary of associate of the
Group
Beijing Borcheng Medical Laboratory Co. Ltd. Subsidiary of associate of the
Group
???
Page 155BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
4 Information on other related parties
Name of other related parties Related party relationship
??
Beijing Zhengdong Electronic Power Group Co. Under the same control of the ultimate
Ltd. holding company
Beijing Electronics Holding & SK Technology Co. Under the same control of the ultimate
Ltd. holding company
Baic Electronics Holding SK (Jiangsu) Technology Under the same control of the ultimate
Co. Ltd. holding company
Beijing Electrical Control Jiuyi Industrial Under the same control of the ultimate
Development Company holding company
Beijing Smart-Aero Display Technology Co. Ltd. Under the same control of the ultimate
holding company
Beijing Electrical Energy Technology (Jiangsu) Under the same control of the ultimate
Co. Ltd. holding company
Sevenstar Semiconductor Technologies Co. Ltd. Under the same control of the ultimate
holding company
NAURA Technology Group Co. Ltd. Under the same control of the ultimate
holding company
Beijing Naura Microelectronics Equipment Co. Under the same control of the ultimate
Ltd. holding company
Beijing Zhaowei Technology Development Co. Under the same control of the ultimate
Ltd. holding company
Beijing C&W Intelligent Equipment Co. Ltd. Under the same control of the ultimate
holding company
761 Workshop (Beijing) Technology Development Under the same control of the ultimate
Co. Ltd. holding company
Beijing Ripeness Sanyuan Instrumentation Co. Under the same control of the ultimate
Ltd. holding company
Beijing Ether Electronics Group Co. Ltd. Under the same control of the ultimate
holding company
Beijing Dongdian Industrial Development Co. Ltd. Under the same control of the ultimate
holding company
Beijing BOE Investment Development Co. Ltd. Under the same control of the ultimate
holding company
Beijing Yansong Economic and Trade Co. Ltd. Under the same control of the ultimate
holding company
Beijing Yandong Microelectronic Co. Ltd. Under the same control of the ultimate
holding company
Beijing Sevenstar-Hitech Electronic Equipment Under the same control of the ultimate
Co. Ltd. holding company
Beijing C&W Automation Equipment Technology Under the same control of the ultimate
Co. Ltd. holding company
Beijing C&W Electronics (Group) Co. Ltd. Under the same control of the ultimate
holding company
Beijing C&W Technology Co. Ltd. Under the same control of the ultimate
holding company
New Vision Microelectronics (Hong Kong) Limited Associate of enterprise that is under the
same control of the ultimate holding
company
Beijing Senju Electronic Materials Co. Ltd. Associate of enterprise that is under the
same control of the ultimate holding
company
Beijing Yizhuang Environmental Technology Other related parties
Group Co. Ltd.Beijing Asahi Electronic Materials Co. Ltd. Other related parties
China Minsheng Banking Corp. Ltd. Other related parties
Page 156BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
5 Transactions with related parties
The transactions below with related parties were conducted under normal commercial terms
or agreements.
(1) Purchase of goods and equipment and receiving of services (excluding remuneration of key
management personnel).The Group
Nature of transaction 2021 ? 2020
????
Purchase of goods 965818931 ? 698585167
Procurement of equipment 255199826 ? 169998650
Receiving of services 24377762 ? 17527375
????
Total 1245396519 ? 886111192
???
The Company
Nature of transaction 2021 ? 2020
????
Purchase of goods 9164606 ? 14438544
Receiving of services 249160057 ? 544225068
????
Total 258324663 ? 558663612
???
(2) Sale of goods/rendering of services
The Group
Nature of transaction 2021 ? 2020
????
Sale of goods 416546796 ? 20817125
Rendering of services 10267108 ? 4762316
????
Total 426813904 ? 25579441
???
Page 157BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
The Company
Lease income Lease income
recognised in recognised in
Nature of transaction 2021 ? 2020
????
Sale of goods 23488144 ? 3366359
Rendering of services 5561607938 ? 4406612262
Interest income received 17015526 ? 4044123
????
Total 5602111608 ? 4414022744
???
(3) Leases
(a) As the lessor
The Group
Lease income Lease income
Type of assets leased recognised in 2021 ? recognised in 2020
????
Investment properties 5114048 ? 1092879
???
The Company
Lease income Lease income
Type of assets leased recognised in 2021 ? recognised in 2020
????
Investment properties 70534069 ? 66764268
???
(b) As the lessee
The Group
Lease expense Lease expense
Type of assets leased recognised in 2021 ? recognised in 2020
????
Fixed assets 2804351 ? 2329933
???
Page 158BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(4) Funding from related party
The Company
Amount of
Name of related party funding ? Inception date ? Maturity date
??????
Funds received ? ? ? ? ?
??????
Subsidiary of the parent company 500000000 ? 28/05/2019 ? 31/12/2023
Subsidiary of the parent company 300000000 ? 08/07/2020 ? 31/12/2023
Subsidiary of the parent company 60000000 ? 31/12/2021 ? 31/12/2023
Subsidiary of the parent company 2000000000 ? 09/06/2017 ? 31/12/2023
Subsidiary of the parent company 700000000 ? 13/04/2018 ? 31/12/2023
Subsidiary of the parent company 2000000000 ? 27/05/2019 ? 31/12/2023
Subsidiary of the parent company 360000000 ? 24/04/2020 ? 31/12/2023
Subsidiary of the parent company 2500000000 ? 06/07/2020 ? 31/12/2023
Subsidiary of the parent company 1700000000 ? 12/10/2020 ? 31/12/2023
Subsidiary of the parent company 1700000000 ? 28/12/2020 ? 31/12/2023
Subsidiary of the parent company 1000000000 ? 09/03/2021 ? 31/12/2023
Subsidiary of the parent company 500000000 ? 30/06/2021 ? 31/12/2023
Subsidiary of the parent company 1200000000 ? 30/09/2015 ? 31/12/2023
Subsidiary of the parent company 650000000 ? 25/04/2018 ? 31/12/2023
Subsidiary of the parent company 3500000000 ? 01/08/2018 ? 31/12/2023
Subsidiary of the parent company 1500000000 ? 24/05/2019 ? 31/12/2023
Subsidiary of the parent company 2000000000 ? 03/07/2020 ? 31/12/2023
Subsidiary of the parent company 3000000000 ? 05/11/2020 ? 31/12/2023
Subsidiary of the parent company 900000000 ? 11/12/2020 ? 31/12/2023
Subsidiary of the parent company 4000000000 ? 25/03/2021 ? 31/12/2023
Subsidiary of the parent company 300000000 ? 29/12/2021 ? 31/12/2023
Subsidiary of the parent company 200000000 ? 28/07/2017 ? 31/12/2023
Subsidiary of the parent company 1600000000 ? 04/12/2017 ? 31/12/2023
Subsidiary of the parent company 3800000000 ? 19/07/2018 ? 31/12/2023
Subsidiary of the parent company 1000000000 ? 26/07/2019 ? 31/12/2023
Subsidiary of the parent company 1000000000 ? 20/08/2020 ? 31/12/2023
Subsidiary of the parent company 1000000000 ? 23/06/2021 ? 31/12/2023
Subsidiary of the parent company 60000000 ? 31/12/2021 ? 31/12/2023
Subsidiary of the parent company 4000000000 ? 09/06/2017 ? 31/12/2023
Subsidiary of the parent company 1000000000 ? 23/12/2016 ? 31/12/2023
Subsidiary of the parent company 3000000000 ? 27/04/2018 ? 31/12/2023
Subsidiary of the parent company 2500000000 ? 31/08/2018 ? 31/12/2023
Subsidiary of the parent company 500000000 ? 21/05/2019 ? 31/12/2023
Subsidiary of the parent company 2300000000 ? 28/12/2020 ? 31/12/2023
Subsidiary of the parent company 1200000000 ? 06/07/2020 ? 31/12/2023
Subsidiary of the parent company 2500000000 ? 30/03/2021 ? 31/12/2023
Subsidiary of the parent company 1000000000 ? 30/12/2021 ? 31/12/2023
Subsidiary of the parent company 3000000000 ? 28/05/2018 ? 31/12/2023
Subsidiary of the parent company 1300000000 ? 21/05/2019 ? 31/12/2023
Subsidiary of the parent company 1000000000 ? 18/03/2021 ? 31/12/2023
Subsidiary of the parent company 350000000 ? 05/07/2021 ? 31/12/2023
Subsidiary of the parent company 5400000000 ? 07/12/2020 ? 31/12/2023
Subsidiary of the parent company 650000000 ? 16/03/2021 ? 31/12/2023
Subsidiary of the parent company 4500000000 ? 23/06/2021 ? 31/12/2023
Subsidiary of the parent company 600000000 ? 29/12/2021 ? 31/12/2023
??????
Total 73830000000 ? ? ? ?
???
Page 159BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Name of related party Amount of ? Inception date ? Maturity date
funding
??????
Funds provided ? ? ? ? ?
??????
Subsidiary of the parent company 50000000 ? 27/03/2015 ? 26/12/2024
Subsidiary of the parent company 30000000 ? 21/01/2016 ? 21/01/2022
Subsidiary of the parent company 40000000 ? 20/01/2020 ? 20/01/2022
Subsidiary of the parent company 200000000 ? 12/10/2020 ? 12/10/2030
Subsidiary of the parent company 100000000 ? 13/12/2019 ? 13/12/2022
Subsidiary of the parent company 100000000 ? 24/12/2019 ? 13/12/2022
Subsidiary of the parent company 50000000 ? 28/04/2020 ? 13/12/2022
Subsidiary of the parent company 290000000 ? 24/11/2020 ? 24/11/2023
Subsidiary of the parent company 900000000 ? 05/11/2020 ? 28/10/2023
Subsidiary of the parent company 50000000 ? 13/12/2019 ? 13/12/2022
Subsidiary of the parent company 800000000 ? 17/12/2019 ? 13/12/2022
Subsidiary of the parent company 650000000 ? 20/12/2019 ? 13/12/2022
Subsidiary of the parent company 100000000 ? 24/12/2019 ? 13/12/2022
Subsidiary of the parent company 770000000 ? 19/02/2020 ? 17/02/2023
Subsidiary of the parent company 800000000 ? 30/04/2020 ? 17/02/2023
Subsidiary of the parent company 1490000000 ? 21/10/2020 ? 20/10/2023
Subsidiary of the parent company 482000000 ? 24/11/2020 ? 24/11/2023
Subsidiary of the parent company 250000000 ? 13/12/2019 ? 13/12/2022
Subsidiary of the parent company 350000000 ? 20/12/2019 ? 13/12/2022
Subsidiary of the parent company 50000000 ? 24/12/2019 ? 13/12/2022
Subsidiary of the parent company 200000000 ? 08/07/2021 ? 28/06/2026
Subsidiary of the parent company 400000000 ? 13/12/2019 ? 13/12/2022
Subsidiary of the parent company 120000000 ? 24/12/2019 ? 13/12/2022
Subsidiary of the parent company 180000000 ? 24/12/2019 ? 13/12/2022
Subsidiary of the parent company 70000000 ? 28/04/2020 ? 13/12/2022
Subsidiary of the parent company 130000000 ? 28/04/2020 ? 17/12/2022
Subsidiary of the parent company 500000000 ? 20/11/2020 ? 20/11/2023
Subsidiary of the parent company 340000000 ? 19/02/2020 ? 17/02/2023
Subsidiary of the parent company 170000000 ? 28/02/2020 ? 17/02/2023
Subsidiary of the parent company 300000000 ? 08/07/2021 ? 28/06/2026
Subsidiary of the parent company 1700000000 ? 20/11/2020 ? 20/11/2023
Subsidiary of the parent company 1800000000 ? 29/10/2020 ? 28/10/2023
Subsidiary of the parent company 1408000000 ? 24/11/2020 ? 24/11/2023
Subsidiary of the parent company 300000000 ? 08/07/2021 ? 28/06/2026
??????
Total 15170000000 ? ? ? ?
???
Page 160BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(5) Remuneration of key management personnel
The Group and the Company
Item 2021 ? 2020
????
Remuneration of key management personnel 110629000 ? 56368000
???
The remuneration of key management personnel above does not include the one with respect
to 2021 share-based payments scheme.
6 Receivables from and payables to related parties
Receivables from related parties
The Group
?2021?2020
Provision for Provision for
tem Book value ? impairment ? Book value ? impairment
????????
Accounts receivable 88954909 ? 4883531 ? 38773536 ? -
Contract Assets 122743 ? - ? - ? -
Prepayments 1118145 ? - ? 7678237 ? -
Other receivables 1901777 ? - ? 14062445 ? -
???
The Company
?2021?2020
Provision for Provision for
Item Book value ? impairment ? Book value ? impairment
????????
Accounts receivable 4827924553 ? - ? 3988518583 ? 14979329
Prepayments 165134 ? - ? 153768 ? -
Dividends receivable 219715564 ? - ? 460261502 ? -
Other receivables 15067301618 ? 2964404 ? 15724164267 ? 46377509
Other non-current assets 1740000000 ? - ? 2606920400 ? -
???
Page 161BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Payables to related parties
The Group
Item 2021 ? 2020
????
Accounts payable 142557107 ? 108759439
Advance payments received 961806 ? 6018519
Contract liabilities 3717500 ? 1604187
Other payables 178187139 ? 183204239
???
The Company
Item 2021 ? 2020
????
Accounts payable 18924459 ? 236990054
Advance payments received 3212352 ? 8735465
Other payables 1364404865 ? 3051622542
Other non-current liabilities 74506661805 ? 56156661805
???
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:
?2021?2020
????
Procurement of equipment 72274623 ? 254763625
???
Page 162BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
XI. Share-based payments
On 17 December 2020 the Board of Directors of the Company approved the implementation
of share options and restricted share incentive plans. The shares for the share options and
restricted share incentive plans are from the Company’s Renminbi A-share ordinary shares
repurchased from secondary market. The plans are presented as follows:
(a) Share option incentive plan
The share option incentive plan is classified into initial grant and reserved grant. The
initial grant date was 21 December 2020 and the implementation was completed on 25
December 2020. The actual number of grantees was 1988 with a number of grants of
596229700 shares. The reserved 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.(b) Restricted share incentive plan
The grant date of restricted share incentive plan was 21 December 2020 and the
implementation was completed on 29 December 2020. The actual number of grantees
was 793 with a number of grants of 321813800 share.The lock-up periods of the restricted share incentive plan are the 24 36 and 48 months
from the grant date respectively. During the lock-up period restricted shares granted to
the incentive object under this plan shall not be transferred used for guarantee or debt
repayment before the lock-up release. Lock-up restricted shares are released in three
phases after 24 months from the grant date. The release ratios for each phase are 34%
33% and 33% respectively. The corresponding release dates are 2 years 3 years and
4 years from the grant date. The actual number released shall be based on performance
assessment result for the previous year.When the Company’s performance meets the corresponding criteria the release
proportion of the above-mentioned restricted shares is determined based on the
business performance of the incentive object’s operation and the contribution value of
the incentive object. The Company will repurchase the locked restricted shares at the
granted price of the incentive objects if the release criteria stipulated in this plan are not
met and the incentive object shall not release the restricted shares for the current
period.Page 163BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
As at 31 December 2021 the total costs recognised by the Group’s equity-settled
share-based payments in the consolidated financial statement was RMB 640692637 and
the accumulated amount of capital reserve paid by equity-settled share-based payments
amounted to RMB 645945833. In the Company’s financial statements the Company
recognised its long-term equity investment of RMB 500606924 in its subsidiary at the fair
value of the equity instruments at the grant date and recognised expenses arising from
share-based payments of RMB 140142667 as well as a capital reserve of RMB
640692637.
Based on relevant provisions of the restricted share incentive plan for the service period if the
granted object resigns before the release date the Company will repurchase the restricted
shares that have not been released at the subscription price of the granted object. Please
refer to Note V. 29 (1) for the repurchased obligation set out in other payables.
(1) Method for determining the fair value of equity instruments at the grant date
Share options:
The fair value of equity instruments at the grant date is determined based on the
difference between the assessed fair value of the exercisable share options at each
grant date and the subscription price in RMB (RMB 1.68/share RMB 1.93/share and
RMB 2.09/share respectively); the fair value of equity instruments at the reserved grant
date is determined based on the difference between the assessed fair value of the
exercisable share options at each reserved grant date and the subscription price in
RMB (RMB 1.70/share RMB 2.02/share and RMB 2.17/share respectively).Restricted shares:
The fair value of equity instruments at the grant date is determined based on the
difference between the fair value of shares at the grant date and the subscription price
at RMB 2.68/share.
(2) Basis of determining the number of equity instruments expected to vest
At each balance sheet date during the vesting period the best estimation is made
according to the latest information such as the number of employees who are granted
options and the completion of performance indicators and the number of equity
instruments expected to vest is revised accordingly. On the vesting date the estimated
number is equal to the number of equity instruments that are ultimately vested.XII. Capital management
The Group’s primary objectives when managing capital are to safeguard its ability to continue
as a going concern so that it can continue to provide returns for shareholders by pricing
products and services commensurately with the level of risk and by securing access to
finance at a reasonable cost.The Group defines “capital” as including all components of equity less unaccrued proposed
dividends. The balances of related party transactions are not regarded by the Group as
capital.The Group’s capital structure is regularly reviewed and managed to achieve an optimal
structure and return for shareholders. Factors for the Group’s consideration include: its future
funding requirements capital efficiency actual and expected profitability expected cash
Page 164BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
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 2020. In order to maintain or adjust the ratio the Group may
adjust the amount of dividends paid to shareholders request new loans issue new shares or
sell assets to reduce debt.As at 31 December 2021 and 31 December 2020 the Group’s asset-liability ratios are as
follows:
?2021?2020
????
Asset-liability ratio 51.78% ? 59.13%
??
Neither the Company nor any of its subsidiaries are subject to externally imposed capital
requirements.XIII. Commitments and contingencies
1 Significant commitments
(1) Capital commitments
The Group 2021 ? 2020
????
Contracts entered into but not performed or partially
performed 36353906810 ? 58885156561
Contracts authorized but not entered into 84007549386 ? 74192859943
????
Total 120361456196 ? 133078016504
???
The Group’s contracts authorised but not entered into mainly included the fixed assets that
Chongqing BOE Display Fuzhou BOE Display Mianyang BOE Kunming BOE Suzhou
K-Tronics Health Investment and Wuhan BOE planned to purchase in subsequent years and
project equipment that the Group planned to purchase in subsequent years.The Company 2021 ? 2020
????
Contracts entered into but not performed or partially
performed 25226123138 ? 39391365336
???
The Company’s contracts entered into but not performed or partially performed mainly
included guaranteed investments in Chongqing BOE Display Fuzhou BOE Display BOE
Smart Technology Co. Ltd. and Health Investment.Page 165BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
2 Guarantee
(1) The Group as the guarantor
As at 31 December 2021 the Group did not have guarantees provided for external
enterprises.
(2) The Company as the guarantor
At 31 December 2021 Chengdu Optoelectronics pledged its land use right with carrying
amount of RMB 40257358 construction in progress with carrying amount of RMB
251614208 machinery and equipment with carrying amount of RMB 29981934456 and
plants and buildings with carrying amount of RMB 2381654025 as collaterals to obtain
long-term loans of USD 859740000 and RMB 14595100000. The Company provides
joint-liability guarantee for the above loans. In addition the Company provides joint-liability
guarantee for the letters of credit issued but not accepted of USD 449008 and JPY
27540000 and the long-term letter of guarantee issued but not accepted of RMB
395000000.
At 31 December 2021 Yuansheng Optoelectronics pledged its land use rights with carrying
amount of RMB 44564690 machinery and equipment with carrying amount of RMB
7217890323 and plant and buildings with carrying amount of RMB 2101390080 as
collaterals to obtain long-term loans of RMB 1554550000. The Company provides
joint-liability guarantee for the above loans.At 31 December 2021 Chongqing BOE Display pledged its land use right with carrying
amount of RMB 163285716 as collaterals to obtain long-term loans of USD 804000000 and
RMB 2626000000. The Company provides joint-liability guarantee for the above loans. In
addition the Company provides joint-liability guarantee for the letters of credit issued but not
accepted of USD 4200889 and JPY 128251000.At 31 December 2021 Chongqing BOE pledged its land use rights with carrying amount of
RMB 129192476 machinery and equipment with carrying amount of RMB 4192400886
and plant and buildings with carrying amount of RMB 3568105312 as collaterals to obtain
long-term loans of USD 167240000 and RMB 131040000. The Company provides
joint-liability guarantee for the above loans.At 31 December 2021 Fuzhou BOE pledged its land use right with carrying amount of RMB
202793121 with machinery and equipment carrying amount of RMB 8484825161 and
plants and buildings with carrying amount of RMB 2988060054 as collaterals to obtain
long-term loans of USD 423000000 and RMB 1879740000. The Company provides
joint-liability guarantee for the above loans.At 31 December 2021 Hefei Display Technology pledged its land use rights with carrying
amount of RMB 280258086 machinery and equipment with carrying amount of RMB
15686591945 and plant and buildings with carrying amount of RMB 4136421272 as
collaterals to obtain long-term loans of USD 897620000 and RMB 4799254080. The
Company provides joint-liability guarantee for the above loans.Page 166BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
At 31 December 2021 Mianyang BOE pledged its land use rights with carrying amount of
RMB 380709305 machinery and equipment with carrying amount of RMB 27823641613
and plant and buildings with carrying amount of RMB 5003805171 as collaterals to obtain
long-term loans of USD 911350000 and RMB 13579379340. The Company provides
joint-liability guarantee for the above loans. In addition the Company provides joint-liability
guarantee for the letters of credit issued but not accepted of USD 6242363 and the long-term
letter of guarantee issued but not accepted of RMB 480000000.At 31 December 2021 Wuhan BOE pledged its land use right with carrying amount of RMB
249533924 machinery and equipment with carrying amount of RMB 26124061091 and
plants and buildings with carrying amount of RMB 4738970130 as collaterals to obtain
long-term loans of USD 1232000000 and RMB 7673000000. The Company provides
joint-liability guarantee for the above loans. In addition the Company provides joint-liability
guarantee for the letters of credit issued but not accepted of JPY 1557350000.At 31 December 2021 Chengdu Hospital obtain long-term loans of RMB 1153092146. The
Company provides joint-liability guarantee for the above loans.At 31 December 2021 Nanjing BOE Display pledged its plant and buildings with carrying
amount of RMB 4238396675 as collaterals to obtain long-term loans of USD 196200000.The Company guarantees 60% of the above loan (i.e. USD 117720000) by means of a
counter guarantee with joint-liability guarantee. Nanjing BOE Display pledged its machinery
and equipment with carrying amount of RMB 407414018 as collaterals to obtain finance
lease loans of RMB 255000000. The Company provides joint-liability guarantee for the
above loans. In addition the Company provided joint-liability guarantee by means of counter
guarantee for its short-term borrowings of RMB 1350000000 and long-term borrowings of
RMB 1200000000.XIV. Subsequent events
On 25 March 2021 BOE Technology Group Co. Ltd. publicly issued the renewable corporate
bonds (digital economy) (phase I) to professional investors with a bond abbreviation
“22BOEY1” with a total of RMB 2 billion and the nominal interest rate is 3.50%.XV. Segment reporting
1 Segment reporting considerations
The Group management reviews the operation performance and allocates resources
according to the business segments below.(a) Display business — The display business integrates design and manufacturing of
display devices and strives to offer TFT-LCD AMOLED Oxide Microdisplay and other
intelligent interface devices. This business focuses on providing high-quality
smartphones tablet PCs laptops monitors TVs vehicles electronic shelf label (ESL)
tiled display screens industrial control wearable devices VR/AR devices electronic
tags white goods healthcare mobile payment interactive whiteboards and other
intelligent display devices for customers.Page 167BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(b) Internet of Things (IoT) innovation business — The IoT innovation business integrates
manufacturing models for system solution design providing customers with competitive
smart terminal products in the fields of TVs monitors laptops tablet PCs low power
consumption products IoT 3D displays etc. With artificial intelligence and big data as
technical support it focuses on products and services that integrate software and
hardware providing integrated solutions in IoT segments such as smart finance smart
parks smart administration smart transportation urban light space smart energy as
well as product line areas such as all-in-one machines and large sizes.(c) Sensor and application solutions — The sensor and application solutions integrate
manufacturing models for system solution design. It focuses on various fields such as
medical bio-detection transportation and construction consumer electronics
microwave communication and industrial sensing providing customers with integrated
design and manufacturing of sensor devices and system solution services. Specific
products and solutions include flat panel X-ray detectors (FPXD) digital microfluidic
chips PDLC glass fingerprint identification systems industrial sensors etc.(d) MLED — The MLED integrates design and manufacturing of devices and provides
Mini-LED backlight products with strong reliability and high dynamic range that allow
precisely brightness adjustment for smartphones tablet PCs laptops monitors TVs car
displays wearables and other products; besides it provides Mini/Micro-LED display
products with high brightness strong reliability and high contrast for use in outdoor
display commercial display transparent display special display and other scenarios.(e) Smart medicine and engineering — The smart medicine and engineering provides
professional healthcare services and features the innovative integration of medical and
engineering by integrating technology and medical science. Adhering to people-centred
thought this business focuses on family community and hospital and emphasises
developing four business units such as health management health technology digital
hospital and technology services. It strives to create interconnection among testing
equipment medical personnel and customers through healthcare IoT platform and build
an intelligent health management ecosystem to provide customers with one-stop healthservices of "prevention-diagnosis and treatment-health care”.(f) Others — Other service mainly includes technical development service and patent
maintenance service.The main reason to separate the segments is that the Group independently manages
the display business IoT innovation business sensor and application solutions MLED
and smart medicine and engineering and other businesses. As these business
segments manufacture and sale different products apply different manufacturing
processes and specifies in gross profit the business segments are managed
independently. The management evaluates the performance and allocates resources
according to the profit of each business segment and does not take financing cost and
investment income into account.Page 168BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
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.?2021
IoT innovation Sensor & application Smart medicine &
? Display business ? business ? solutions ? MLED ? engineering ? Others ? Offsetting ? Total
????????????????
Operating
income 202219268075 ? 28379332761 ? 216187403 ? 451525233 ? 1846551592 ? 11308029354 ? (25111094913) ? 219309799505
Operating
costs 148920717889 ? 25108953836 ? 166800549 ? 436645746 ? 1370997955 ? 3100671887 ? (23119562567) ? 155985225295
?2020
Sensor &
IoT innovation application Smart medicine
? Display business ? business ? solutions ? MLED ? & engineering ? Others ? Offsetting ? Total
????????????????
Operating
income 123077882346 ? 19178428559 ? 119817921 ? - ? 1522460282 ? 7372351461 ? (15718370840) ? 135552569729
Operating
costs 102650861838 ? 16883719082 ? 75405672 ? - ? 724268025 ? 2213785494 ? (12138157907) ? 110409882204
??
The Company develops various businesses by using common assets and liabilities and therefore it could not analyse assets and liabilities of
each reportable segment respectively by business. Besides the Group restates comparative information in 2020 according to segment reporting
in 2021.Page 169BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
3 Secondary segment reporting (regional segments)
(a) The geographical information is based on the location of customers receiving services
or goods
The following table sets out information about the geographical location of the Group’s
operating income from external customers:s
Operating income from external
? customers
?2021?2020
????
Mainland China 93850467813 ? 65241679286
Other Asian countries and regions 96116878840 ? 54895384319
Europe 5478685805 ? 4804966123
America 23770495392 ? 10316934261
Other regions 93271655 ? 293605740
????
Total 219309799505 ? 135552569729
???
(b) Divided based on asset locations
The geographical location of the specified non-current assets is based on the physical
location of the asset in the case of fixed assets; the location of the operation to which
they are allocated in the case of intangible assets and goodwill; and the location of
operations in the case of interests in associates and joint ventures. Most of the
non-current assets in the Group are located in the Chinese mainland.
4 Major customers
The Group has no customer (2020: 2 customers) the operating income from which is over
10% of the Group’s total operating income (2020: the operating income from these customers
represented RMB 35420533749 which was approximately 26% of the Group’s total
operating income).Page 170BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
XVI. Notes to the Company’s financial statements
1 Cash at bank and on hand
?2021?2020
Amount in RMB/RMB Amount in RMB/RMB
? original currency ? Exchange rate ? equivalents ? original currency ? Exchange rate ? equivalents
????????????
Cash on hand ? ? ? ? ? ? ? ? ? ? ?
USD 5 ? 6.3757 ? 32 ? 5 ? 6.5249 ? 31
HKD 165 ? 0.8176 ? 135 ? 165 ? 0.8416 ? 139
JPY 1325 ? 0.0554 ? 73 ? 51325 ? 0.0632 ? 3244
KRW - ? 0.0054 ? - ? 420000 ? 0.0060 ? 2520
GBP 347 ? 8.6064 ? 2986 ? - ? - ? -
CHF 400 ? 6.9776 ? 2791 ? - ? - ? -
SGD 1381 ? 4.7179 ? 6515 ? - ? - ? -
Other foreign currencies ? ? ? ? 22 ? ? ? ? ? 16662
????????????
Sub-total ? ? ? ? 12554 ? ? ? ? ? 22596
????????????
Bank deposits ? ? ? ? ? ? ? ? ? ? ?
RMB ? ? ? ? 5524816219 ? ? ? ? ? 2694966600
USD 1183006 ? 6.3757 ? 7542493 ? 257341260 ? 6.5249 ? 1679125986
HKD 4337000 ? 0.8176 ? 3545931 ? 1641906 ? 0.8416 ? 1381828
????????????
Sub-total ? ? ? ? 5535904643 ? ? ? ? ? 4375474414
????????????
Other monetary funds ? ? ? ? ? ? ? ? ? ? ?
RMB ? ? ? ? 73447625 ? ? ? ? ? -
????????????
Sub-total ? ? ? ? 73447625 ? ? ? ? ? -
????????????
????????????
Total ? ? ? ? 5609364822 ? ? ? ? ? 4375497010
???
Including: Total overseas deposits were equivalent to RMB 146479 (2020: RMB150742) .On 31 December 2021 the Company’s other monetary funds of RMB72454721 were
investment deposits for share repurchase placed in the securities company’s account that can
be readily withdraw on demand. Others are restricted monetary funds which represent
margin deposits of RMB992904 placed in the commercial banks (2020: nil).Page 171BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
2 Accounts receivable
(1) The Company’s accounts receivable by customer type:
31 December 31 December
?2021?2020
????
Amounts due from subsidiaries 4827924553 ? 3988518583
Amounts due from other customers 5195374 ? 5995278
????
Sub-total 4833119927 ? 3994513861
????
Less: Provision for bad and doubtful debts 4264652 ? 20301553
????
Total 4828855275 ? 3974212308
???
(2) The ageing analysis of accounts receivable is as follows:
Ageing 2021 ? 2020
????
Within 1 year (inclusive) 4506053150 ? 3813737996
Over 1 year but within 2 years (inclusive) 184286182 ? 163379898
Over 2 years but within 3 years (inclusive) 141556611 ? -
Over 3 years 1223984 ? 17395967
????
Sub-total 4833119927 ? 3994513861
????
Less: Provision for bad and doubtful debts 4264652 ? 20301553
????
Total 4828855275 ? 3974212308
???
The ageing is counted starting from the date when accounts receivable are recognised.Page 172BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(3) Accounts receivable by provisioning method
?2021
? Book value ? Provision for impairment ? ?
Percentage Percentage
Category Amount ? (%) ? Amount ? (%) ? Carrying amount
??????????
Individual assessment ? ? ? ? ? ? ? ? ?
- Customers with high credit risk 4090353 ? 0% ? 4090353 ? 100% ? -
- Customers with low credit risk 4828194553 ? 100% ? - ? 0% ? 4828194553
??????????
Collective assessment ? ? ? ? ? ? ? ? ?
- Customers with moderate credit risk 835021 ? 0% ? 174299 ? 21% ? 660722
??????????
Total 4833119927 ? 100% ? 4264652 ? 0% ? 4828855275
???
?2020
? Book value ? Provision for impairment ? ?
Percentage Percentage
Category Amount ? (%) ? Amount ? (%) ? Carrying amount
??????????
Individual assessment ? ? ? ? ? ? ? ? ?
- Customers with high credit risk 5283008 ? 0% ? 5283008 ? 100% ? -
- Customers with low credit risk 3988518583 ? 100% ? 14979329 ? 0% ? 3973539254
??????????
Collective assessment ? ? ? ? ? ? ? ? ?
- Customers with moderate credit risk 712270 ? 0% ? 39216 ? 6% ? 673054
??????????
Total 3994513861 ? 100% ? 20301553 ? 1% ? 3974212308
??
(4) Additions and recoveries of provision for bad and doubtful debts during the year:
?2021?2020
????
Balance at the beginning of the year 20301553 ? 20264100
Charge during the year 135218 ? 37453
Reversal during the year (136) ? -
Written-off during the year (16171983) ? -
????
Balance at the end of the year 4264652 ? 20301553
???
Page 173BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB 4426651135
amounting to 91.59% of the total accounts receivable at the end of the year and no provisions
for bad and doubtful debts were made at the end of the year.
3 Other receivables
31 December 31 December
? Note 2021 ? 2020
?????
Dividends receivable (1) 219715564 ? 460261502
Others (2) 15230115046 ? 15885213081
?????
Total ? 15449830610 ? 16345474583
???
(1) Dividends receivable
31 December 31 December
?2021?2020
????
Chongqing BOE Optoelectronics Technology
Co. Ltd. - ? 400000000
Beijing Electronics Zone Investment and
Development Co. Ltd. - ? 1842137
BOE (Korea) Co.Ltd. 5474703 ? 6125106
Beijing Matsushita Colour Innovation Co. Ltd. 214240861 ? 52294259
????
Total 219715564 ? 460261502
??
Page 174BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Others
(a) The Company’s other receivables by customer type:
Customer type 31 December 2021 ? 31 December 2020
????
Amounts due from subsidiaries 15065482829 ? 15710102798
Amounts due from other related parties 1818789 ? 14061469
Amounts due from other customers 169615338 ? 210988466
????
Sub-total 15236916956 ? 15935152733
????
Less: Provision for bad and doubtful debts 6801910 ? 49939652
????
Total 15230115046 ? 15885213081
???
(b) The Company’s other receivables by currency:
As at 31 December 2021 and 31 December 2020 there is no other receivables in
foreign currency.(c) The ageing analysis of other receivables of the Company is as follows:
?2021?2020
????
Within 1 year (inclusive) 5896130713 ? 12252487143
Over 1 year but within 2 years (inclusive) 6954523850 ? 3610709401
Over 2 years but within 3 years (inclusive) 2348713430 ? 19445996
Over 3 years 37548963 ? 52510193
????
Sub-total 15236916956 ? 15935152733
????
Less: Provision for bad and doubtful debts 6801910 ? 49939652
????
Total 15230115046 ? 15885213081
???
The ageing is counted starting from the date when other receivables are recognised.Page 175BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(d) Other receivables by provisioning method
?2021
? Book value ? Provision for impairment ? ?
Carrying
Category Amount ? Percentage (%) ? Amount ? Percentage (%) ? amount
??????????
??????????
Individual assessment 6801910 ? 0% ? 6801910 ? 100% ? -
??????????
Collective assessment 15230115046 ? 100% ? - ? 0% ? 15230115046
??????????
Total 15236916956 ? 100% ? 6801910 ? 0% ? 15230115046
?2020
? Book value ? Provision for impairment ? ?
Carrying
Category Amount ? Percentage (%) ? Amount ? Percentage (%) ? amount
??????????
??????????
Individual assessment 49939652 ? 0% ? 49939652 ? 100% ? -
??????????
Collective assessment 15885213081 ? 100% ? - ? 0% ? 15885213081
??????????
Total 15935152733 ? 100% ? 49939652 ? 0% ? 15885213081
(e) Movements of provisions for bad and doubtful debts
?2021?2020
????
Balance at the beginning of the year 49939652 ? 44600216
Charge for the year 5112258 ? 5339436
Written-off during the year (48250000) ? -
????
Balance at the end of the year 6801910 ? 49939652
???
Page 176BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(f) Other receivables categorised by nature
Nature of other receivables 2021 ? 2020
????
Transaction amount 15065482829 ? 15844170864
Others 171434127 ? 90981869
????
Sub-total 15236916956 ? 15935152733
????
Less: Provision for bad and doubtful debts 6801910 ? 49939652
????
Total 15230115046 ? 15885213081
???
(g) Five largest other receivables by debtor at the end of the year
Other receivables at the end of the year due from the top five debtors of the Company
amounted to RMB 13723863214 in total most of which are borrowings. No provision
is made for bad and doubtful debts after assessment.
4 Other current assets
?2021?2020
????
VAT on tax credits 1170039 ? 45621676
Others 166008984 ? 132140042
????
Total 167179023 ? 177761718
???
Page 177BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
5 Long-term equity investments
(1) The Company’s long-term equity investments by category:
?2021?2020
????
Investments in subsidiaries 207777846290 ? 179426966866
Investments in associates and joint ventures 3199974945 ? 2800090342
????
Sub-total 210977821235 ? 182227057208
????
Less: Provision for impairment 32000000 ? 92000000
????
Total 210945821235 ? 182135057208
???
The Company disposed of its subsidiary Beijing Smart-aero Display Technology Co. Ltd in
the current year written off the corresponding prior years impairment provision of RMB
60000000. The closing balance represents the Company's impairment provision for its
subsidiary Beijing BOE Vacuum Technology Co. Ltd. in the prior year of RMB 32000000.Page 178BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Investments in subsidiaries:
Balance of Balance of
provision for provision for
Balance at the Balance at impairment at impairment at
beginning of Decrease the end of the beginning of the end of
Subsidiary the year ? Increase during the year ? during the year ? the year ? the year ? the year
Increase in Share-based
? ? ? investments ? payments ? ? ? ? ? ? ? ?
??????????????
Beijing BOE Optoelectronics Technology
Co. Ltd. 4172973427 ? - ? 25769527 ? - ? 4198742954 ? - ? -
Chengdu BOE Optoelectronics
Technology Co. Ltd. 25004494319 ? - ? 51109541 ? - ? 25055603860 ? - ? -
Hefei BOE Optoelectronics Technology
Co. Ltd. 9000846416 ? - ? 31233392 ? - ? 9032079808 ? - ? -
Beijing BOE Display Technology
Co. Ltd. 17421341981 ? - ? 98826758 ? - ? 17520168739 ? - ? -
Hefei Xinsheng Optoelectronics
Technology Co. Ltd. 20084018610 ? - ? 38714569 ? - ? 20122733179 ? - ? -
Ordos Yuansheng Optoelectronics
Co. Ltd. 11804123592 ? - ? 4751033 ? - ? 11808874625 ? - ? -
Chongqing BOE Optoelectronics
Technology Co. Ltd. 19565866421 ? - ? 18956983 ? - ? 19584823404 ? - ? -
Fuzhou BOE Optoelectronics
Technology Co. Ltd. 14300602919 ? 366344118 ? 20846744 ? - ? 14687793781 ? - ? -
Beijing BOE Vision Electronic
Technology Co. Ltd. 4093536288 ? - ? 1377040 ? - ? 4094913328 ? - ? -
Beijing BOE Vacuum Electronics
Co. Ltd. 19258410 ? - ? 319127 ? - ? 19577537 ? - ? -
Beijing BOE Vacuum Technology
Co. Ltd. 32000000 ? - ? - ? - ? 32000000 ? 32000000 ? 32000000
*Beijing Smart-aero Display Technology
Co. Ltd. (Beijing BOE Special Display
Technology Co. Ltd. (Special
Display)) 100113695 ? - ? 2387595 ? (102501290) ? - ? 60000000 ? -
Beijing Yinghe Century Co. Ltd. 333275229 ? - ? 8909335 ? - ? 342184564 ? - ? -
BOE Optical Science and technology
Co. Ltd. 659042674 ? - ? 3125597 ? - ? 662168271 ? - ? -
BOE Hyundai LCD (Beijing)
Display Technology Co. Ltd. 31181960 ? - ? 5442881 ? - ? 36624841 ? - ? -
BOE (Hebei) Mobile Technology
Co. Ltd. 1353691563 ? - ? 1248631 ? - ? 1354940194 ? - ? -
Beijing BOE Multimedia Technology Co.Ltd. 400000000 ? - ? - ? - ? 400000000 ? - ? -
Beijing BOE Energy Technology
Co. Ltd. 850110069 ? - ? 4176824 ? - ? 854286893 ? - ? -
Beijing BOE Life Technology
Co. Ltd. 10000000 ? - ? - ? - ? 10000000 ? - ? -
Beijing Zhongxiangying Technologies
Co. Ltd. 50014864 ? 50000000 ? 564055 ? - ? 100578919 ? - ? -
BOE Semi-conductor Co. Ltd. 9450000 ? - ? - ? - ? 9450000 ? - ? -
BOE Optoelectronics Holding Co. Ltd 3211961538 ? - ? - ? - ? 3211961538 ? - ? -
Beijing Asahi Electronic Materials
Co. Ltd. - ? - ? - ? - ? - ? - ? -
BOE Healthcare Investment &
Management Co. Ltd. 6093167584 ? 1189500000 ? 512827 ? - ? 7283180411 ? - ? -
Hefei BOE Display Technology
Co. Ltd. 1999338939 ? - ? 21476569 ? - ? 2020815508 ? - ? -
Beijing BOE Technology Development
Co. Ltd. 1018591 ? - ? 705496 ? - ? 1724087 ? - ? -
BOE Wisdom IOT Technology Co. Ltd. 142344796 ? - ? 13097140 ? (142000000) ? 13441936 ? - ? -
Hefei BOE Zhuoyin Technology
Co. Ltd. 600066764 ? - ? 2185232 ? - ? 602251996 ? - ? -
Beijing BOE Land Co. Ltd. 7752973 ? - ? 815800 ? - ? 8568773 ? - ? -
Beijing BOE Sales Co. Ltd. 30513199 ? - ? 500872 ? - ? 31014071 ? - ? -
BOE KOREA Co. Ltd 873317 ? - ? 3027670 ? - ? 3900987 ? - ? -
Kunming BOE Display Technology
Co. Ltd. 1290918433 ? 220820000 ? 3206556 ? - ? 1514944989 ? - ? -
Mianyang BOE Optoelectronics
Technology Co. Ltd. 15977360915 ? 6339085322 ? 13426135 ? - ? 22329872372 ? - ? -
Beijing BOE Sensing Technology
Co. Ltd. 50348624 ? 159000000 ? 12595578 ? - ? 221944202 ? - ? -
Wuhan BOE Optoelectronics
Technology Co. Ltd. 5998882896 ? 6500000000 ? 12385063 ? - ? 12511267959 ? - ? -
Chongqing BOE Display Technology
Co. Ltd. 3958981997 ? 5119594750 ? 7085277 ? - ? 9085662024 ? - ? -
Fuzhou BOE Display Technology
Co. Ltd. 21748591 ? - ? 705497 ? - ? 22454088 ? - ? -
Beijing Matsushita Colour Innovation
Co. Ltd. 64903 ? - ? 2462787 ? - ? 2527690 ? - ? -
BOE Innovation Investment Co. Ltd. 440000000 ? 2524000000 ? - ? - ? 2964000000 ? - ? -
Hefei BOE Xingyu Technology
Co. Ltd. 219197471 ? 114429600 ? 2104359 ? - ? 335731430 ? - ? -
BOE Education Technology Co. Ltd. 25073981 ? - ? 2807284 ? - ? 27881265 ? - ? -
Dongfang Chengqi (Beijing) Business
Technology Co. Ltd. 8000000 ? - ? - ? - ? 8000000 ? - ? -
BOE Smart Technology Co. Ltd. 1440000000 ? 382000000 ? - ? - ? 1822000000 ? - ? -
Nanjing BOE Display Technology Co.Ltd. 5591221400 ? - ? 672372 ? - ? 5591893772 ? - ? -
Chengdu CEC Panda Display
Technology Co. Ltd. 3020000000 ? 4530000000 ? 673783 ? - ? 7550673783 ? - ? -
BOE Mled Technology Co. Ltd. - ? 600000000 ? 366251 ? - ? 600366251 ? ? ? -
Others* 2187517 ? - ? 82034744 ? - ? 84222261 ? - ? -
??????????????
Total 179426966866 ? 28094773790 ? 500606924 ? (244501290) ? 207777846290 ? 92000000 ? 32000000
???
*Others are the equity incentive funds paid for subsidiaries of the subsidiaries of BOE Group to be accrued.For information about the major subsidiaries of the Company refer to Note VII. 1.Page 179BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(3) Investments in associates:
? ? Movements during the year ? ? ? ?
Balance of
provision
for
Balance at the Investment income Other Declared impairment
beginning of Increase in Decrease in under equity comprehensive Other equity distribution of cash Balance at the at the end
Investee the year ? investments ? investments ? method ? income ? movements ? dividends or profits ? end of the year ? of the year
?????????????????
Beijing Nissin Electronics Precision Component Co. Ltd. 263858 ? - ? - ? 1749280 ? - ? - ? - ? 2013138 ? -
Beijing Nittan Electronic Co. Ltd. 71396821 ? - ? - ? 9399420 ? - ? - ? (3200000) ? 77596241 ? -
Erdos BOE Energy Investment Co. Ltd. 8163137 ? 66920400 ? - ? (700727) ? - ? 1724197 ? - ? 76107007 ? -
Beijing Infi-Hailin Venture Investment
Co. Ltd. 1166524 ? - ? - ? (1166524) ? - ? - ? - ? - ? -
Beijing Infi-Hailin Venture Investment
(Limited Partnership) - ? - ? - ? 38376800 ? - ? - ? (38376800) ? - ? -
TPV Display Technology (China) Co. Ltd. 24828264 ? - ? - ? 3631573 ? - ? - ? - ? 28459837 ? -
Beijing Xindongneng Investment Fund (Limited Partnership) 2058142325 ? - ? (813699978) ? 805886583 ? 38588937 ? - ? - ? 2088917867 ? -
Beijing Xindongneng Investment Management Co. Ltd. 7921626 ? - ? - ? 2718868 ? - ? - ? (2000000) ? 8640494 ? -
Shenzhen Yunyinggu Technology Co. Ltd. 21910887 ? - ? - ? (3878846) ? (188015) ? 23249160 ? - ? 41093186 ? -
Beijing Xloong Technologies Co. Ltd. 19766940 ? - ? - ? 551530 ? - ? 773082 ? - ? 21091552 ? -
Beijing Innovation Industry Investment
Co. Ltd. 204063254 ? - ? - ? 3501319 ? - ? - ? - ? 207564573 ? -
Beijing Electric Control Industry Investment Co. Ltd. 200283114 ? - ? - ? 1271160 ? 30223283 ? - ? - ? 231777557 ? -BOE Art Cloud technology Co. ltd（formerly known asHunan BOE Art Cloud Science & Technology Co. Ltd） 182183592 ? 860000 ? - ? 4687852 ? - ? 27798537 ? - ? 215529981 ? -
Guoke BOE (Shanghai) Equity Investment Management
Co. Ltd. - ? 2571400 ? - ? (1387888) ? - ? - ? - ? 1183512 ? -
Chengdu BOE Motor Electronics Co. Ltd - ? 200000000 ? - ? - ? - ? - ? - ? 200000000 ? -
?????????????????
Total 2800090342 ? 270351800 ? (813699978) ? 864640400 ? 68624205 ? 53544976 ? (43576800) ? 3199974945 ? -
???
Page 180BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
6 Intangible assets
Patent and
proprietary Computer
? Land use rights ? technology ? software ? Others ? Total
??????????
Original book value ? ? ? ? ? ? ? ? ?
Balance at the beginning of the year 794939047 ? 1102554707 ? 374157427 ? 84327578 ? 2355978759
Additions during the year ? ? ? ? ? ? ? ? ?
- Purchases - ? - ? 7233761 ? - ? 7233761
- Transfers from construction in
progress - ? - ? 64683648 ? - ? 64683648
- Written-down against interest
discount -? ? (957451) ? -? ? (251116) ? (1208567)
Disposals during the year - ? - ? (5109010) ? (700000) ? (5809010)
??????????
Balance at the end of the year 794939047 ? 1101597256 ? 440965826 ? 83376462 ? 2420878591
??????????
Less: Accumulated amortisation ? ? ? ? ? ? ? ? ?
Balance at the beginning of the year 80233914 ? 696189217 ? 198599703 ? 886098 ? 975908932
Charge during the year 27738406 ? 50605804 ? 68853437 ? 54449488 ? 201647135
Disposals during the year - ? - ? (286011) ? (198333) ? (484344)
??????????
Balance at the end of the year 107972320 ? 746795021 ? 267167129 ? 55137253 ? 1177071723
??????????
??????????
Original book value ? ? ? ? ? ? ? ? ?
Carrying amount at the end of the year 686966727 ? 354802235 ? 173798697 ? 28239209 ? 1243806868
??????????
Carrying amount at the beginning of the
year 714705133 ? 406365490 ? 175557724 ? 83441480 ? 1380069827
???
Page 181BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
7 Deferred tax assets/deferred tax liabilities
?2021?2020
Deductible/ Deductible/
(taxable) (taxable)
temporary Deferred tax temporary Deferred tax
Item differences ? assets/(liabilities) ? differences ? assets/(liabilities)
????????
Deferred tax assets: ? ? ? ? ? ? ?
Provision for impairment of assets 66183860 ? 9927579 ? 185358501 ? 27803775
Changes in fair value of investments in
other equity instruments 139523200 ? 20928480 ? 121789193 ? 18268379
Depreciation of fixed assets 156677700 ? 23501655 ? 145995720 ? 21899358
Government grant 209807147 ? 31471072 ? 34989313 ? 5248397
Others 59527066 ? 8929060 ? 2710340 ? 406551
????????
Sub-total 631718973 ? 94757846 ? 490843067 ? 73626460
????????
Amount offset ? ? (94757846) ? - ? (73626460)
????????
Balance after offsetting ? ? - ? - ? -
????????
Deferred tax liabilities: ? ? ? ? ? ? ?
Revaluation due to business combinations
involving entities not under common
control (2050000000) ? (307500000) ? (2975000000) ? (446250000)
Others (87160432) ? (13074064) ? (87160432) ? (13074064)
????????
Sub-total (2137160432) ? (320574064) ? (3062160432) ? (459324064)
????????
Amount offset ? ? 94757846 ? ? ? 73626460
????????
Balance after offsetting ? ? (225816218) ? ? ? (385697604)
???
8 Advance payments received
31 December 31 December
Item 2021 ? 2020
????
Advances from related parties 3212352 ? 8735465
Advances from third parties 16825982 ? 9550993
????
Total 20038334 ? 18286458
???
Page 182BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
9 Employee benefits payable
(1) Employee benefits payable
Balance at 1 Accrued during Decrease during Balance at 31
? Note January 2021 ? the year ? the year ? December 2021
?????????
Short-term employee benefits (2) 508025207 ? 1559623213 ? (1434788182) ? 632860238
Post-employment benefits ? ? ? ? ? ? ? ?
- defined contribution plans (3) 8034946 ? 87996947 ? (88163846) ? 7868047
Termination benefits ? - ? 3169947 ? (3169947) ? -
?????????
Total ? 516060153 ? 1650790107 ? (1526121975) ? 640728285
???
Balance at 1 Accrued during Decrease during Balance at 31
? Note January 2020 ? the year ? the year ? December 2020
?????????
Short-term employee benefits (2) 241384459 ? 1190821753 ? (924181005) ? 508025207
Post-employment benefits ? ? ? ? ? ? ? ?
- defined contribution plans (3) 10821616 ? 66029897 ? (68816567) ? 8034946
Termination benefits ? - ? 6942728 ? (6942728) ? -
?????????
Total ? 252206075 ? 1263794378 ? (999940300) ? 516060153
??
(2) Short-term employee benefits
Balance at 1 Accrued during Decrease during Balance at 31
? January 2021 ? the year ? the year ? December 2021
????????
Salaries bonuses allowances 439436511 ? 1343203955 ? (1250864537) ? 531775929
Staff welfare - ? 47055395 ? (47055395) ? -
Social insurance ? ? ?
Medical insurance 14821943 ? 47844895 ? (48311394) ? 14355444
Work-related injury insurance 1075426 ? 2391672 ? (2301795) ? 1165303
Maternity insurance 1237219 ? 43829 ? (15208) ? 1265840
Housing fund 5838542 ? 57975653 ? (57534667) ? 6279528
Labour union fee staff and workers’ education
fee 45615566 ? 61107814 ? (28705186) ? 78018194
????????
Total 508025207 ? 1559623213 ? (1434788182) ? 632860238
???
Balance at 1 Accrued during Decrease during Balance at 31
? January 2020 ? the year ? the year ? December 2020
????????
Salaries bonuses allowances 188598673 ? 1014874667 ? (764036829) ? 439436511
Staff welfare - ? 45099922 ? (45099922) ? -
Social insurance
Medical insurance 14688541 ? 38992104 ? (38858702) ? 14821943
Work-related injury insurance 1104889 ? 2639691 ? (2669154) ? 1075426
Maternity insurance 1777726 ? 672235 ? (1212742) ? 1237219
Housing fund 3854824 ? 55069148 ? (53085430) ? 5838542
Labour union fee staff and workers’ education
fee 31359806 ? 33473986 ? (19218226) ? 45615566
????????
Total 241384459 ? 1190821753 ? (924181005) ? 508025207
Page 183BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(3) Post-employment benefits - defined contribution plans
Balance at 1 Accrued during Decrease during Balance at 31
? January 2021 ? the year ? the year ? December 2021
????????
Basic pension insurance 8016479 ? 76624857 ? (76525687) ? 8115649
Unemployment insurance 371484 ? 2832656 ? (2882072) ? 322068
Annuity (353017) ? 8539434 ? (8756087) ? (569670)
????????
Total 8034946 ? 87996947 ? (88163846) ? 7868047
???
Balance at 1 Accrued during Decrease during Balance at 31
? January 2020 ? the year ? the year ? December 2020
????????
Basic pension insurance 11489403 ? 55939880 ? (59412804) ? 8016479
Unemployment insurance 302098 ? 2775842 ? (2706456) ? 371484
Annuity (969885) ? 7314175 ? (6697307) ? (353017)
????????
Total 10821616 ? 66029897 ? (68816567) ? 8034946
??
10 Other payables
31 December 31 December
? Note 2021 ? 2020
?????
Dividends payable ? 6561972 ? 6451171
Others (1) 2874322796 ? 6535467510
?????
Total ? 2880884768 ? 6541918681
???
(1) Others
(a) The company’s other payables by category are as follows:
? Note 2021 ? 2020
?????
Amounts due to/from subsidiaries ? 1364404865 ? 3050656626
Equity acquisition fee ? - ? 2236488561
Repurchase obligation of restricted shares V. 40 835215390 ? 875333536
Purchase of projects equipment and
intangible assets ? 462535293 ? 257829238
Others ? 212167248 ? 115159549
?????
Total ? 2874322796 ? 6535467510
???
Page 184BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(b) The Company’s other payables by currency:
?2021?2020
Amount in Amount in
original Exchange RMB/RMB original Exchange RMB/RMB
? currency ? rate ? equivalents ? currency ? rate ? equivalents
????????????
RMB ? ? ? ? 2536057636 ? ? ? ? ? 5042463687
USD 52998757 ? 6.3757 ? 337904175 ? 228735332 ? 6.5249 ? 1492475170
JPY - ? 0.0554 ? - ? 8364763 ? 0.0632 ? 528653
EUR 50000 ? 7.2197 ? 360985 ? - ? ? ? -
????????????
Total ? ? ? ? 2874322796 ? ? ? ? ? 6535467510
???
11 Long-term loans
?2021?2020
Credited/ Credited/
? ? ? collateralised ? ? ? collateralised
guaranteed/ guaranteed/
? RMB ? pledged ? RMB ? pledged
????????
Bank loans ? ? ? ? ? ? ?
- RMB 43079530231 ? Credited ? 46207924194 ? Credited
Less: Long-term loans due within one year 10871030231 ? Credited ? 7847210073 ? Credited
????????
Total 32208500000 ? ? ? 38360714121 ? ?
???
The interest rate of RMB long-term loans for the Company ranged from 0% to 3.77% in 2021 (2020:
0% to 4.75%).
12 Deferred income
Balance at Amounts Balance at
the beginning of Additions recognised in the end of
Item the year ? during the year ? other income ? Other changes ? the year
??????????
- related to assets 3612222226 ? - ? (902698413) ? ? 2709523813
- related to income 21120220 ? 285932854 ? (8025180) ? (101600000) ? 197427894
??????????
Total 3633342446 ? 285932854 ? (910723593) ? (101600000) ? 2906951707
???
13 Capital reserve
Other capital
Item Share premium ? reserves ? Total
??????
Balance at the beginning of the year 37546517053 ? (850437687) ? 36696079366
Add:Common stock invested by shareholders 16219134815 ? - ? 16219134815
Other movements in equity of associates - ? 53544976 ? 53544976
Equity-settled share-based payments - ? 640692637 ? 640692637
Cancellation of treasury shares (14270384) ? - ? (14270384)
Others - ? 2851742 ? 2851742
??????
Balance at the end of the year 53751381484 ? (153348332) ? 53598033152
???
Page 185BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
14 Other comprehensive income
Item ? ? Movements during the year ? ?
Add: Transfer of
other
Balance at the comprehensive
beginning of Less: Income tax income to retained Balance at the end
? the year ? Before-tax amount ? expense ? earnings ? of the year
??????????
Items that will not be reclassified to profit or
loss 90701298 ? 51135493 ? (2660101) ? 55238785 ? 89258107
Including: Other comprehensive income
recognised under equity method 194222110 ? 68869497 ? - ? 55238785 ? 207852822
Changes in fair value of
investments in other equity
instruments (103520812) ? (17734004) ? (2660101) ? - ? (118594715)
Items that may be reclassified to profit or
loss 11835 ? (245292) ? - ? - ? (233457)
??????????
Total 90713133 ? 50890201 ? (2660101) ? 55238785 ? 89024650
??
15 Retained earnings
Item 2021 ? 2020
????
Retained earnings at the beginning of the year 11954088031 ? 9586643866
Add: Net profits for the year 4396496566 ? 3739191584
Less: Appropriation for statutory surplus reserve 439649657 ? 373919158
Interest on holders of other equity instruments 533600000 ? 485925480
Dividends to ordinary shares 3476073919 ? 695967975
Transfer of other comprehensive income to
retained earnings (49714906) ? (215151667)
Effect of accounting for disposal of subsidiaries
to equity method - ? 31086473
????
Retained earnings at the end of the year 11950975927 ? 11954088031
???
16 Operating income
?2021?2020
Item Income ? Income
????
Principal activities 5664683841 ? 3850224763
Other operating activities 52314193 ? 691451432
????
Total 5716998034 ? 4541676195
????
Including：Revenue from contracts 5594507267 ? 4418761325
Other income 122490767 ? 122914870
???
Page 186BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
17 Taxes and surcharges
?2021?2020
????
Property tax 27275020 ? 29195630
Land use tax 2834360 ? 2834360
Stamp duty 4748723 ? 7909675
City maintenance and construction tax 875253 ? 405990
Education surcharges and local education
surcharges 625180 ? 289993
Others 271874 ? 253948
????
Total 36630410 ? 40889596
???
18 Research and development expenses
?2021?2020
????
Staff cost 896654452 ? 686052717
Material expenses 76712945 ? 70093725
Depreciation and amortisation 317570050 ? 221602752
Commissioned and cooperative development 240981951 ? 533483606
Technology usage fee 210374149 ? 103450913
Share-based payment 82093408 ? 3062249
Others 506478542 ? 485149163
????
Total 2330865497 ? 2102895125
???
19 Financial expenses
?2021?2020
????
Interest expenses from loans 892768026 ? 970259855
Interest income from bank deposits (93003346) ? (37793976)
Net exchange (income)/losses (4245509) ? (17019010)
Other financial expenses 3217093 ? 1091676
????
Total 798736264 ? 916538545
???
Page 187BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
20 Other income
?2021?2020
????
Government grants related to assets 902698413 ? 903180554
Government grants related to income 43514609 ? 67808613
?2709152?-
Total ? ? ?
Government grants related to assets 948922174 ? 970989167
???
The amount of government grants received by the Company in 2021 and directly included in other
income was RMB 35489429.
21 Investment income
?2021?2020
????
Income from long-term equity investments
accounted for using cost method 1841946602 ? 1608291389
Income from long-term equity investments
accounted for using equity method 864640400 ? 416901621
Investment income from disposal of long-term equity
investments 45527110 ? 401239648
Dividend income from investments in other equity
instruments 3554579 ? 3252444
Including: Dividend income from investments in
other equity instruments held at the balance sheet
date 3554579 ? 3252444
????
Total 2755668691 ? 2429685102
???
22 Income tax expenses
? Note 2021 ? 2020
?????
Current tax expense for the period based
on tax law and regulations ? 418134244 ? 449586180
Changes in deferred tax assets/liabilities (1) (157278240) ? (198212508)
?????
Total ? 260856004 ? 251373672
???
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
?2021?2020
????
Origination and reversal of temporary differences (157278240) ? (198212508)
??
Page 188BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(2) Reconciliation between income tax expenses and accounting profit:
Item 2021 ? 2020
????
Profit before taxation 4657352570 ? 3990565256
Expected income tax expense at tax rate of 15% 698602886 ? 598584788
Add: Non-deductible expenses 22551281 ? 47469071
Non-taxable income (362122686) ? (304718886)
Tax deduction for R&D activities (107936270) ? (89961301)
Others 9760793 ? -
????
Income tax expenses 260856004 ? 251373672
???
23 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
?2021?2020
????
(a) Reconciliation of net profit to cash flows from
operating activities： ? ? ?
????
Net profit 4396496566 ? 3739191584
Add: Credit losses 5247340 ? 5376889
Depreciation of fixed assets and
investment properties 186180161 ? 135264681
Amortisation of intangible assets 175887643 ? 165094127
Amortisation of long-term deferred
expenses 74101005 ? 36414535
Loss on disposal of fixed assets
intangible assets and other long-term
assets 773327 ? -
Financial expenses 796624497 ? 1044078606
Investment income (2755668691) ? (2429685102)
Share-based payment 139972018 ? 3747294
Changes in deferred revenue tax assets
and liabilities (159881386) ? (196164236)
Increase in gross inventories 2769045 ? (4686882)
Increase in operating receivables (83241004) ? (1521836219)
Decrease in operating payables (2075160969) ? (861349064)
????
Net cash inflow from operating activities 704099552 ? 115446213
???
Page 189BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
(b) Net changes in cash and cash equivalents:： ? ? ?
?2021?2020
????
Cash and cash equivalents at the end of the
year 5599937349 ? 4360065216
Less: Cash and cash equivalents at the
beginning of the year 4360065216 ? 3680770048
????
Net increase/(decrease) in cash and cash
equivalents 1239872133 ? 679295168
???
(2) Details of cash and cash equivalents
?2021?2020
????
Cash on hand 12554 ? 22596
Bank deposits available on demand 5527470074 ? 4360042620
Funds in other currencies readily available for
payment 72454721 ? -
????
Closing balance of cash and cash equivalents 5599937349 ? 4360065216
???
Note: Cash and cash equivalents disclosed above exclude other monetary fund with restricted
usage.
24 Assets with restrictive ownership title
Balance at Decreased Balance at
1 January Accrued during the 31 December Restricted
Item 2021 ? during the year ? year ? 2021 ? reason
??????????
Cash at bank Margin
and on hand - 992904 ? - ? 992904 ? deposit?
Page 190BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
25 Leases
(1) The company’s lease as a lessee
Right-of-use asset
Houses and
buildings
??
Book value ?
Balance at the beginning of the year 11291665
Additions during the year 207543094
Decrease during the year -
??
Balance at the end of the year 218834759
??
Accumulated amortisation ?
Balance at the beginning of the year 4864383
Charge during the year 43796583
Decrease during the year -
??
Balance at the end of the year 48660966
??
Impairment provision ?
Balance at the beginning of the year
Balance at the end of the year -
??
??
Carrying amounts ?
Balance at the end of the year 170173793
??
Balance at the beginning of the year 6427282
????
Page 191BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Lease liability
Balance at Balance at the
the end of the beginning of
Item year ? the year
????
Long-term lease liabilities 167639832 ? -
Less:lease liabilities due within one year 38295964 ? -
????
Total 129343868 ? -
??????
In 2021 the Company as the lessee chooses the simplified treatment method for short-term lease
expenses low-value asset lease expenses and the amount of income obtained from sublease of
right-of-use assets is not significant.XVII. Extraordinary gains and losses in 2021
??2021?2020
?I nvestment income from disposal of ? ? ? ?
long-term equity investments ? 37327797 ? 376344290
Losses from disposal of non-current assets ? 136846803 ? (2912119)
Government grants recognised through
profit or loss (excluding those having
close relationships with the Company’s
normal operation and enjoyed in fixed
amount or quantity according to uniform
national standard) ? 2077537306 ? 2332107692
Changes in fair value of financial assets
held for trading and investment income
from disposal of financial assets held for
trading ? 121656142 ? 82698484
Reversal of provision for bad and doubtful
debts of receivables assessed on an
individual basis ? 20304301 ? 15447820
Other non-operating income and expenses
besides items above ? 90587512 ? 65391368
Less: Tax effect ? 191362477 ? 185966533
????
??2292897384?2683111002
?????
Including: Extraordinary gains affecting net
profit of equity shareholders of
the Company ? 1893395748 ? 2365173118
Extraordinary gains affecting net
profit of equity shareholders of
the non-controlling
shareholders ? 399501636 ? 317937884
??
Notes:Extraordinary gain and loss item listed above are presented in the amount before taxation.Page 192BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
XVIII. Return on net assets and earnings per shareIn accordance with “Regulation on the Preparation of Information Disclosures by CompaniesIssuing Securities No.9 – Calculation and Disclosure of the Return on Net Assets and Earnings PerShare” (2010 revised) issued by the CSRC and relevant accounting standards the Group’s return
on net assets and earnings per share are calculated as follows:
Weighted average
return on net Basic earnings per Diluted earnings
Profit for the reporting period assets (%) ? share ? per share
??????
Net profit attributable to the Company’s
ordinary equity shareholders 23.84% ? 0.71 ? 0.71
Net profit excluding extraordinary gain and
loss attributable to the Company’s ordinary
equity shareholders 22.05% ? 0.65 ? 0.65
??
1 Calculation of earnings per share
(1) Basic earnings per share
For calculation of the basic earnings per share refer to Note V.58.
(2) Basic earnings per share excluding extraordinary gain and loss
Basic earnings per share excluding extraordinary gain and loss is calculated as dividing
consolidated net profit excluding extraordinary gain and loss attributable to ordinary shareholders of
the Company by the weighted average number of ordinary shares outstanding:
?2021?2020
????
Consolidated net profit attributable to ordinary
shareholders of the Company 25266101464 ? 4549702472
Extraordinary gains and losses attributable to
ordinary shareholders of the Company 1893395748 ? 2365173118
Consolidated net profit excluding extraordinary gain
and loss attributable to the Company’s ordinary
equity shareholders 23372705716 ? 2184529354
Weighted average number of ordinary shares
outstanding 35704986088 ? 34684107122
Basic earnings per share excluding extraordinary
gain and loss (RMB/share) 0.65 ? 0.06
Page 193BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
2 Calculation of weighted average return on net assets
(1) Weighted average return on net assets
Weighted average return on net assets is calculated as dividing consolidated net profit attributable
to ordinary shareholders of the Company by the weighted average amount of consolidated net
assets:
?2021?2020
????
Consolidated net profit attributable to ordinary
shareholders of the Company 25266101464 ? 4549702472
Weighted average amount of consolidated net
assets 106001028458 ? 88422792378
Weighted average return on net assets 23.84% ? 5.15%
?
Calculation of weighted average amount of consolidated net assets is as follows:
?2021?2020
????
Consolidated net assets at the beginning of the year 89129769408 ? 87044972202
Effect of consolidated net profit attributable to
ordinary shareholders of the Company 12633050732 ? 2274851236
Effect of non-public issuance of shares 6623170611 ? -
Effect of repurchase of treasury shares (594867425) ? (666258231)
Distribution of profits to ordinary shareholders (1738036960) ? (347983988)
Effect of change in shareholding ratio of subsidiaries (464228319) ? 24957407
Effect of movements in amounts attributable to
ordinary shareholders of the Company 412170410 ? 92253752
????
Weighted average amount of consolidated net
assets 106001028458 ? 88422792378
?
(2) Weighted average return on net assets excluding extraordinary gain and loss
Weighted average return on net assets excluding extraordinary gain and loss is calculated as
dividing consolidated net profit excluding extraordinary gain and loss attributable to ordinary
shareholders of the Company by the weighted average amount of consolidated net assets:
?2021?2020
????
Consolidated net profit excluding extraordinary gain
and loss attributable to the Company’s ordinary
equity shareholders 23372705716 ? 2184529354
Weighted average amount of consolidated net
assets 106001028458 ? 88422792378
Weighted average return on net assets excluding
extraordinary gain and loss 22.05% ? 2.47%
?
Page 194
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