BOE Technology Group Co. Ltd.ENGLISH TRANSLATION OF FINANCIAL STATEMENTS FOR THE YEAR 1 JANUARY
2021 TO 31 DECEMBER 2021
IF THERE IS ANY CONFLICT BETWEEN THE CHINESE VERSION AND ITS ENGLISH
TRANSLATION THE CHINESE VERSION WILL PREVAILAUDITOR’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.Page 1 of 9AUDITOR’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
accounting policies for revenue
the 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
revenue recorded in the current year to
Group’s revenue as a key audit matter
relevant supporting files such as relevant
because revenue as one of BOE Group’s
orders shipping orders sales invoices
key 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;
Page 2 of 9AUDITOR’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.Page 3 of 9AUDITOR’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 residual values etc.) related to the
on 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
construction contracts project progress
value 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.Page 4 of 9AUDITOR’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
from the production and sale of display impairment of fixed assets and intangible
device. Due to the fluctuation of supply- assets included the following:
demand relationship of display device and
Evaluate management’s identification of
the influence of technology upgrading the
asset groups assessment of impairment
profit level of different production lines suffer
indications and assess the design and
dramatic fluctuation. As at 31 December
operation effectiveness of key internal
2021 the book value of fixed assets and
controls for impairment tests;
intangible assets amounted to RMB 237.905
billion the judgement on impairment Based on our understanding of BOE
indications and impairment test are material Group’s businesses and relevant
to BOE Group’s financial statements. accounting standards evaluate
management’s classification basis of
The management classifies asset groups
asset groups and judgement basis of
based on the smallest identifiable group of
impairment indications;
assets that generates cash inflows that are
independent and continuously monitors the For asset groups with impairment
trend of market of supply and demand as indications based on our understanding
well as the technology evolution; of the industry compare the key
comprehensively judges impairment assumptions in the calculation of
indications of each asset group in recoverable amounts used by
accordance with market trends operating management with external available data
conditions of production lines and and historical analysis including future
technological advanced performance and selling prices sales volume and discount
performs impairment test on asset groups if rate used by management evaluate the
any impairment indication exists. key assumptions and estimations used
by the management;
For asset groups with impairment
indications the management assesses For asset groups with significant
whether the book value of fixed assets and impairment risk assess the competence
intangible assets as at 31 December 2020 professional quality and objectivity of
were impaired by calculating the present experts hired by the management; and
value of expected future cash flows. adopt our own valuation experts’ work
Calculating the present value of expected assess if discount rates used for
future cash flows requires management to estimating the present value of future
make significant judgements especially for cash flows by management are within the
the estimation of future selling prices sales range used by other companies in the
volume and applicable discount rate. same industry;
Page 5 of 9AUDITOR’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
and intangible assets as a key audit matter impairment of fixed assets and intangible
because the book value of fixed assets and assets included the following:
intangible assets is significant to the
financial statements; management’s Compare estimations used for calculating
significant judgements and estimations are the present value of expected future cash
involved in assessing the classification basis flows in the previous year by the
of asset groups existence of impairment management with the actual situation in
indications and impairment test of asset this year to consider the historical
groups with impairment indications which accuracy of management’s forecast
may exist errors or potential management results;
bias. 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.Page 6 of 9AUDITOR’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.Page 7 of 9AUDITOR’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.Page 8 of 9AUDITOR’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
Page 9 of 9BOE 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
??
The notes on pages 30 to 193 form part of these financial statements.Page 17BOE 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 18BOE 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 19BOE 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 20BOE 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 21BOE 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 Non-
Other equity Capital Treasury comprehensiv Surplus Retained controlling
? Note Share capital ? instruments ? reserve ? shares ? e income ? reserve ? earnings ? Sub-total ? 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 22BOE 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 23BOE 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 ? ? ? ?
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
?????????????????????
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 24BOE 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 25BOE 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 26BOE 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 27BOE 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 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
?????????????????
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 29BOE 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 2020and 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 30BOE 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 31BOE 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 32BOE 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 33BOE 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 34BOE 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 35BOE 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 36BOE 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 37BOE 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 38BOE 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 39BOE 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 40BOE 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 41BOE 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 42BOE 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 43BOE 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 44BOE 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 45BOE 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 profitor loss 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 46BOE 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 47BOE 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 48BOE 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 49BOE 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 50BOE 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 51BOE 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 52BOE 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
Page 53BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
option provides a material right the Group recognises the option as a performance
obligation and recognises revenue when those future goods or services are transferred
or when the option expires. If the stand-alone selling price for a customer’s option to
acquire additional goods or services is not directly observable the Group estimates it
taking into account all relevant information including the difference in the discount that
the customer would receive when exercising the option or without exercising the option
and the likelihood that the option will be exercised.For the contract with a warranty the Group analyses the nature of the warranty provided
if the warranty provides the customer with a distinct service in addition to the assurance
that the product complies with agreed-upon specifications the Group recognises for the
promised warranty as a performance obligation. Otherwise the Group accounts for the
warranty in accordance with the requirements of CAS No.13 – Contingencies.The transaction price is the amount of consideration to which the Group expects to be
entitled in exchange for transferring promised goods or services to a customer excluding
amounts collected on behalf of third parties. The Group recognises the transaction price
only to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur when the uncertainty associated with the
variable consideration is subsequently resolved. To determine the transaction price for
contracts in which a customer promises consideration in a form other than cash the
Group measures the non-cash consideration at fair value. If the Group cannot reasonably
estimate the fair value of the non-cash consideration the Group measures the
consideration indirectly by reference to the stand-alone selling price of the goods or
services promised to the customer in exchange for the consideration. Where the contract
contains a significant financing component the Group recognises the transaction price at
an amount that reflects the price that a customer would have paid for the promised goods
or services if the customer had paid cash for those goods or services when (or as) they
transfer to the customer. The difference between the amount of promised consideration
and the cash selling price is amortised using an effective interest method over the
contract term. The Group does not adjust the consideration for any effects of a significant
financing component if it expects at contract inception that the period between when the
Group transfers a promised good or service to a customer and when the customer pays
for that good or service will be one year or less.The Group satisfies a performance obligation over time if one of the following criteria is
met; or otherwise a performance obligation is satisfied at a point in time:
- the customer simultaneously receives and consumes the benefits provided by the
Group’s performance as the Group performs;
- the customer can control the asset created or enhanced during the Group’s
performance; or
- the Group’s performance does not create an asset with an alternative use to it and the
Group has an enforceable right to payment for performance completed to date.For performance obligation satisfied over time the Group recognises revenue over time
by measuring the progress towards complete satisfaction of that performance obligation.When the outcome of that performance obligation cannot be measured reasonably but
the Group expects to recover the costs incurred in satisfying the performance obligation
the Group recognises revenue only to the extent of the costs incurred until such time that
it can reasonably measure the outcome of the performance obligation.Page 54BOE 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 55BOE 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 56BOE 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 57BOE 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 58BOE 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 59BOE 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
Page 60BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
the lessor 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
Page 61BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
or as the cost of the assets where appropriate using the straight-line method or other
systematic basis over the lease term.
(2) As a lessor
The Group determines at lease inception whether each lease is a finance lease or an
operating lease. A lease is classified as a finance lease if it transfers substantially all the
risks and rewards incidental to ownership of an underlying asset irrespective of whether
the legal title to the asset is eventually transferred. An operating lease is a lease other
than a finance lease.When the Group is a sub-lessor it assesses the lease classification of a sub-lease with
reference to the right-of-use asset arising from the head lease not with reference to the
underlying asset. If a head lease is a short-term lease to which the Group applies
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;
Page 62BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
- Its sale is highly probable that is the Group has made a resolution on a sale plan and
has obtained a firm purchase commitment. The sale is to be completed within one
year.Non-current assets or disposal groups held for sale are stated at the lower of carrying
amount and fair value (see Note III.20) less costs to sell (except financial assets (see
note III.9) 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.Page 63BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
- There is no longer an economic relationship between the hedged item and the hedging
instrument or the effect of credit risk starts to dominate the value changes that result
from that economic relationship.- The hedging relationship no longer meets other criteria for applying hedge accounting.Cash flow hedges
A cash flow hedge is a hedge of the exposure to variability in cash flows. The portion of
the gain or loss on a hedging instrument that is determined to be an effective hedge is
recognised in other comprehensive income as a cash flow hedge reserve. The amount of
the cash flow hedge reserve is adjusted to the lower of the following (in absolute
amounts):
- the cumulative gain or loss on the hedging instrument from inception of the hedge;
- the cumulative change in present value of the expected future cash flows on the
hedged item from inception of the hedge.The change in the amount of the cash flow hedge reserve is recognised in other
comprehensive income in each period.The portion of the gain or loss on the hedging instrument that is determined to be
ineffectiveness is recognised in profit or loss.If a hedged forecast transaction subsequently results in the recognition of a non-financial
asset or non-financial liability or a hedged forecast transaction for a non-financial asset
or non-financial liability becomes a firm commitment for which fair value hedge
accounting is applied the Group removes that amount from the cash flow hedge reserve
and includes it in the initial cost or other carrying amount of the asset or liability.For cash flow hedges other than those covered above that amount is reclassified from
the cash flow hedge reserve to profit or loss as a reclassification adjustment in the same
period or periods during which the hedged expected future cash flows affect profit or loss.When the Group discontinues hedge accounting for a cash flow hedge the amount of the
accumulated cash flow hedge reserve recognised in other comprehensive income is
accounted for as follows:
- If the hedged future cash flows are still expected to occur that amount will remain in
the cash flow hedge reserve and be accounted for in accordance with the above
policy.- If the hedged future cash flows are no longer expected to occur that amount is
immediately reclassified from the cash flow hedge reserve to profit or loss as a
reclassification adjustment.
31 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan which will be
approved after the balance sheet date are not recognised as a liability at the balance
sheet date but are disclosed in the notes separately.
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
Page 64BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
or joint control from another party they are considered to be related parties. Related
parties may be individuals or enterprises. Enterprises with which the Company is under
common control only from the State and that have no other related party relationships are
not regarded as related parties.In addition to the related parties stated above the Company determines related parties
based on the disclosure requirements of Administrative Procedures on the Information
Disclosures of Listed Companies issued by the CSRC.
33 Segment reporting
Reportable segments are identified based on operating segments which are determined
based on the structure of the Group’s internal organisation management requirements
and internal reporting system after taking the materiality principle into account. Two or
more operating segments may be aggregated into a single operating segment if the
segments have 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 65BOE 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 66BOE 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 67BOE 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 68BOE 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 69BOE 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 70BOE 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 71BOE 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 72BOE 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 73BOE 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
Value-added tax taxable services revenue. The basis for VAT payable
6%9%13%
(VAT) is to 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
Page 74BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Ordos Yuansheng Optoelectronics Co. Ltd. (Yuansheng
Optoelectronics) 15% ? High-tech Enterprise
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
???
Page 75BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
V. Notes to the consolidated 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 ? ? ? ? ? ? ? ? ? ? ?
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 76BOE 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 77BOE 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 78BOE 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 79BOE 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 80BOE 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 81BOE 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 82BOE 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 83BOE 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 84BOE 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 85BOE 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 86BOE 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 87BOE 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 88BOE 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 89BOE 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 90BOE 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 91BOE 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 92BOE 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 93BOE 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 94BOE 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 95BOE 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 96BOE 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 97BOE 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 98BOE 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 99BOE 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 100BOE 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 101BOE 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 102BOE 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 BOEEnergy Investment Co. Ltd. with other enterprise holding coal resources (“theAgreement”). 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 103BOE 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 104BOE 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 105BOE 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 106BOE 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 107BOE 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 108BOE 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 109BOE 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 110BOE 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 111BOE 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 112BOE 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 113BOE 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 114BOE 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 115BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
35 Deferred income
Balance at the Amounts Balance at
beginning of the Additions during recognised in the end of the
Item year ? the year ? other income ? Other changes ? 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 116BOE 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
? year ? Changes during the year ? end 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 117BOE 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 118BOE 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 119BOE 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
Item year ? the year ? the year ? end 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 120BOE 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 121BOE 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 122BOE 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 123BOE 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 124BOE 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 125BOE 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 126BOE 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 127BOE 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 128BOE 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 129BOE 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 130BOE 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 131BOE 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 132BOE 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 133BOE 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 134BOE 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 135BOE 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 Proportion of Carrying amount Fair value of from Method and key comprehensive
Basis for net 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 136BOE 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 Business combinations
Fuzhou BOE Optoelectronics Fuzhou laws and regulations operations may be conducted only with RMB involving entities not
Technology Co. Ltd. China ? Fuzhou China ? the 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 137BOE 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 138BOE 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
Hefei BOE Zhuoyin Technology Co. sales of products related to OLED display device
Ltd. Hefei China ? Hefei China ? and 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 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
??????????????
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
display devices whole widget and relevant Business combinations
Chongqing BOE Display Technology Chongqing Chongqing products import and export of goods and technical involving entities not under
Co. Ltd. China ? China ? 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 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
??????????????
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 RMB
BOE Education Technology Co. Ltd. Beijing China ? Beijing China ? of the state and the city.) ? 55000000 ? 100% ? - ? Founded by investment
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
??????????????
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 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
??????????????
R&D production and sale of TFT-LCD panels
colour filters and LCD whole-widget modules;
providing products and business-related services as
Nanjing BOE Display Technology Co. well as other business activities related to the above; Business combinationsLtd. (formerly known as “Nanjing CEC Nanjing import and export of proprietary and agent RMB involving entities not underPanda FPD Technology Co. Ltd.”) China ? Nanjing China ? commodities and 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 143BOE 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 144BOE 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 non-
held by non- non-controlling to non-controlling controlling
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 145BOE 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 146BOE 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 147BOE 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 148BOE 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 149BOE 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 150BOE 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 151BOE 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 152BOE 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 153BOE 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 154BOE 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 155BOE 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 156BOE 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 157BOE 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 158BOE 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 159BOE 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 160BOE 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 161BOE 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 162BOE 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 163BOE 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 164BOE 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 165BOE 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 166BOE 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-stophealth services 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 167BOE 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 168BOE 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 169BOE 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 170BOE 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 171BOE 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 172BOE 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 173BOE 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 174BOE 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 175BOE 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 176BOE 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 177BOE 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 178BOE 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 179BOE 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 180BOE 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 181BOE 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 182BOE 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 183BOE 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 184BOE 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
? the year ? Before-tax amount ? expense ? earnings ? end 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 185BOE 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 186BOE 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 187BOE 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 188BOE 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 189BOE 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 190BOE Technology Group Co. Ltd.Financial statements for the year ended 31 December 2021
Lease liability
Balance Balance at the
at the end of beginning of
Item the 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 191BOE 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 byCompanies Issuing Securities No.9 – Calculation and Disclosure of the Return onNet Assets and Earnings Per Share” (2010 revised) issued by the CSRC and
relevant accounting standards the Group’s return on net assets and earnings per
share are calculated as follows:
Weighted average
return on net 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 192BOE 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 193
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