BOE Technology Group Co. Ltd.ENGLISH TRANSLATION OF FINANCIAL STATEMENTS
FOR THE YEAR 1 JANUARY 2022 TO 31 DECEMBER 2022
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2303647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
2022 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 2022 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2303647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” 43.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 bills of lading
trading terms and there is an inherent risk
delivery receipts etc. to evaluate whether
that revenue may not be recognised in a
revenue is recognised in accordance with
correct period.the accounting policy of BOE Group;
On a sampling basis and according to
different trading terms cross check the
revenue recorded before and after the
balance sheet date against relevant
supporting files such as relevant orders
shipping orders sales invoices customs
declarations bills of lading 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2303647号
Key Audit Matters (continued)
Revenue recognition (continued)
Refer to Note III. 23 of the accounting policy to the financial statements and Note V. 43 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 confirmation
procedures 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2303647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” 14 15.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:
2022 the book value of fixed assets and
Evaluate the design and operation
construction in progress amounted to RMB
effectiveness of key internal controls
249.373 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2303647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” 14 16.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
2022 the book value of fixed assets and
controls for impairment tests;
intangible assets amounted to RMB 214.935
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 2022 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2303647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” 14 16.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2303647号
Other Information
BOE’s management is responsible for the other information. The other information comprises
all the information included in 2022 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2303647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2303647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
Su Xing (Engagement Partner)
Beijing China Chai Jing
31 March 2023
Page 9 of 9BOE Technology Group Co. Ltd.Consolidated balance sheet
as at 31 December 2022
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
Assets ? ? ? ?
?????
Current assets ? ? ? ?
Cash at bank and on hand V.1 68800307369 ? 80986835088
Financial assets held for trading V.2 17187993936 ? 10028172853
Bills receivable V.3 211792061 ? 217734298
Accounts receivable V.4 28203647569 ? 35503414820
Prepayments V.5 589764680 ? 1112880007
Other receivables V.6 975809236 ? 1922828378
Inventories V.7 22787814225 ? 27805161436
Contract assets V.8 71636461 ? 75698324
Non-current assets due within one
year ? 8561307 ? 7700735
Other current assets V.9 3394036919 ? 3578919710
?????
Total current assets ? 142231363763 ? 161239345649
????
The notes on pages 30 to 175 form part of these financial statements.
1BOE Technology Group Co. Ltd.
Consolidated balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
Assets (continued) ? ? ? ?
?????
Non-current assets ? ? ? ?
Long-term receivables ? 28637449 ? 29918542
Long-term equity investments V.10 12421878851 ? 6040948317
Investments in other equity
instruments V.11 483060306 ? 519088146
Other non-current financial assets V.12 2022967681 ? 606895447
Investment properties V.13 1122025138 ? 1158365401
Fixed assets V.14 205987050430 ? 227141366884
Construction in progress V.15 43386134668 ? 32099711879
Right-of-use assets V.60 687120946 ? 753164237
Intangible assets V.16 8948327143 ? 11209498406
Goodwill V.17 660823651 ? 1130006987
Long-term deferred expenses V.18 556941377 ? 636530502
Deferred tax assets V.19 70250425 ? 190335524
Other non-current assets V.20 1955521384 ? 7477427483
?????
Total non-current assets ? 278330739449 ? 288993257755
?????
?????
Total assets ? 420562103212 ? 450232603404
???
The notes on pages 30 to 175 form part of these financial statements.
2BOE Technology Group Co. Ltd.
Consolidated balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
Liabilities and shareholders’ equity ? ? ? ?
?????
Current liabilities ? ? ? ?
Short-term loans V.21 2373938871 ? 2072057332
Bills payable V.22 870221538 ? 827958031
Accounts payable V.23 29834720464 ? 32455830694
Advance payments received V.24 79848977 ? 146140084
Contract liabilities V.25 2411717792 ? 3765081554
Employee benefits payable V.26 2818532823 ? 5133155237
Taxes payable V.27 1331401188 ? 2200249305
Other payables V.28 19632223269 ? 23835374942
Non-current liabilities due within one
year V.29 22703750744 ? 28874958714
Other current liabilities V.30 3613967673 ? 4051532509
?????
Total current liabilities ? 85670323339 ? 103362338402
????
The notes on pages 30 to 175 form part of these financial statements.
3BOE Technology Group Co. Ltd.
Consolidated balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
Liabilities and shareholders’ equity
(continued) ? ? ? ?
?????
Non-current liabilities ? ? ? ?
Long-term loans V.31 123143479690 ? 116078666587
Debentures payable V.32 - ? 359586437
Lease liabilities V.60 538586010 ? 669130264
Long-term payables V.33 229587077 ? 906592838
Deferred income V.34 5156347332 ? 6416089611
Deferred tax liabilities V.19 1274406833 ? 1525622873
Other non-current liabilities V.35 2499075805 ? 3535809876
?????
Total non-current liabilities ? 132841482747 ? 129491498486
?????
?????
Total liabilities ? 218511806086 ? 232853836888
????????
The notes on pages 30 to 175 form part of these financial statements.
4BOE Technology Group Co. Ltd.
Consolidated balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
Liabilities and shareholders’ equity
(continued) ? ? ? ?
?????
Shareholders’ equity ? ? ? ?
Share capital V.36 38196363421 ? 38445746482
Other equity instruments V.37 8176366808 ? 14146997427
Capital reserve V.38 55218504392 ? 53917609094
Less: Treasury shares V.39 3508201911 ? 3415768207
Other comprehensive income V.40 (1073768030) ? 113551147
Surplus reserve V.41 3241063934 ? 2889590205
Retained earnings V.42 35839081781 ? 37106514799
?????
Total equity attributable to
shareholders of the Company ? 136089410395 ? 143204240947
?????
Non-controlling interests ? 65960886731 ? 74174525569
?????
Total shareholders’ equity ? 202050297126 ? 217378766516
?????
?????
Total liabilities and shareholders’ equity ? 420562103212 ? 450232603404
????
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (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 175 form part of these financial statements.
5BOE Technology Group Co. Ltd.
Company balance sheet
as at 31 December 2022
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
Assets ? ? ? ?
?????
Current assets ? ? ? ?
Cash at bank and on hand 7121641234 ? 5609364822
Accounts receivable XV.1 4863665269 ? 4828855275
Prepayments ? 7045311 ? 12669107
Other receivables XV.2 19878145375 ? 15449830610
Inventories ? 15065947 ? 15853238
Other current assets 57226515 ? 167179023
?????
Total current assets ? 31942789651 ? 26083752075
?????
Non-current assets ? ? ? ?
Long-term equity investments XV.3 214308953020 ? 210945821235
Investments in other equity
instruments ? 60434464 ? 63458868
Other non-current financial assets 1416072234 ? -
Investment properties ? 251870591 ? 261526129
Fixed assets ? 921510043 ? 961944766
Construction in progress ? 616247335 ? 551352449
Right-of-use assets 126373643 ? 170173793
Intangible assets 1122230564 ? 1243806868
Long-term deferred expenses ? 384123386 ? 441560097
Other non-current assets ? 1080322988 ? 1744751520
?????
Total non-current assets ? 220288138268 ? 216384395725
?????
?????
Total assets ? 252230927919 ? 242468147800
?
The notes on pages 30 to 175 form part of these financial statements.
6BOE Technology Group Co. Ltd.
Company balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
Liabilities and shareholders’ equity ? ? ? ?
?????
Current liabilities ? ? ? ?
Accounts payable ? 312100258 ? 61519244
Advance payments received 14819929 ? 20038334
Contract liabilities ? 19200 ? -
Employee benefits payable 282792422 ? 640728285
Taxes payable ? 139166672 ? 244586957
Other payables XV.5 4249391146 ? 2880884768
Non-current liabilities due within one
year ? 2704607119 ? 10909326195
Other current liabilities ? 20283257 ? 29190783
?????
Total current liabilities ? 7723180003 ? 14786274566
?????
Non-current liabilities ? ? ? ?
Long-term loans XV.6 39557500000 ? 32208500000
Lease liabilities 85830813 ? 129343868
Deferred income 1933587746 ? 2906951707
Deferred tax liabilities XV.4 111987272 ? 225816218
Other non-current liabilities XV.7? 96394661805 ? 74506661805
?????
Total non-current liabilities ? 138083567636 ? 109977273598
?????
?????
Total liabilities ? 145806747639 ? 124763548164
????
The notes on pages 30 to 175 form part of these financial statements.
7BOE Technology Group Co. Ltd.
Company balance sheet
as at 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
Liabilities and shareholders’ equity
(continued) ? ? ? ?
?????
Shareholders’ equity ? ? ? ?
Share capital V.36 38196363421 ? 38445746482
Other equity instruments V.37 8176366808 ? 14146997427
Capital reserve XV.8 53693627213 ? 53598033152
Less: Treasury shares V.39 3508201911 ? 3415768207
Other comprehensive income XV.9 340345 ? 89024650
Surplus reserve V.41 3241063934 ? 2889590205
Retained earnings XV.10 6624620470 ? 11950975927
?????
Total shareholders’ equity ? 106424180280 ? 117704599636
?????
?????
Total liabilities and shareholders’ equity ? 252230927919 ? 242468147800
???
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (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 175 form part of these financial statements.
8BOE Technology Group Co. Ltd.
Consolidated income statement
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
?????
I. Operating income V.43 178413731179 ? 221035718012
?????
II. Less: Operating costs V.43 157530566152 ? 157298825781
Taxes and surcharges V.44 1275171339 ? 1424205826
Selling and distribution expenses V.45 4233290297 ? 5484589978
General and administrative
expenses V.46 6247637006 ? 6693373589
Research and development
expenses V.47 11100768677 ? 10616426327
Financial expenses V.48 2445130575 ? 3682379202
Including: Interest expenses ? 3572211438 ? 4866778333
Interest income ? 1483022892 ? 1050431325
Add: Other income V.49 5485529324 ? 2092765728
Investment income V.50 6094267884 ? 1347489345
Including: Income from
investment in
associates and joint
ventures ? 528103680 ? 1245036895
Gains from changes in fair value V.51 159344584 ? 84966963
Credit losses V.52 (51577226) ? (28409869)
Impairment losses V.53 (7304471630) ? (4478251852)
Gains from asset disposals V.54 10965556 ? 153505791
?????
III. Operating (loss) / profit ? (24774375) ? 35007983415
?????
Add: Non-operating income V.55 163242857 ? 131607946
Less: Non-operating expenses V.55 87249543 ? 55215102
????
The notes on pages 30 to 175 form part of these financial statements.
9BOE Technology Group Co. Ltd.
Consolidated income statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
?????
IV. Profit before income tax ? 51218939 ? 35084376259
?????
Less: Income tax expenses V.56 1788394107 ? 4187971404
?????
V. Net (loss) / profit for the year ? (1737175168) ? 30896404855
?????
Shareholders of the Company ? 7550877790 ? 25960751646
Non-controlling interests ? (9288052958) ? 4935653209
???
The notes on pages 30 to 175 form part of these financial statements.
10BOE Technology Group Co. Ltd.
Consolidated income statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
?????
VI. Other comprehensive income net of
tax V.40 (1158016792) ? 155717231
?????
Other comprehensive income (net of
tax) attributable to owners of the
Company ? (1164537236) ? 190988004
(1) Items that will not be
reclassified to profit or loss ? ? ? ?
1. Other comprehensive
income recognised
under equity method ? (53367649) ? 68869497
2. Changes in fair value of
investments in other
equity instruments ? (79547426) ? (40618274)
(2) Items that may be reclassified
to profit or loss ? ? ? ?
1. Other comprehensive
income recognised
under equity method ? 127867 ? (296553)
2. Translation differences
arising from translation of
foreign currency financial
statements ? (1031750028) ? 163033334
Other comprehensive income (net of
tax) attributable to non-controlling
interests ? 6520444 ? (35270773)
????
The notes on pages 30 to 175 form part of these financial statements.
11BOE Technology Group Co. Ltd.
Consolidated income statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
?????
VII. Total comprehensive income for the
year ? (2895191960) ? 31052122086
?????
Attributable to shareholders of the
Company ? 6386340554 ? 26151739650
Attributable to non-controlling interests ? (9281532514) ? 4900382436
?????
VIII. Earnings per share: ? ? ? ?
(1) Basic earnings per share V.57 0.19 ? 0.71
(2) Diluted earnings per share V.57 Not applicable ? 0.71
???
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (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 175 form part of these financial statements.
12BOE Technology Group Co. Ltd.
Company income statement
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
?????
I. Operating income XV.11 4873328715 ? 5716998034
?????
II. Less: Operating costs ? 10080268 ? 16459454
Taxes and surcharges XV.11 55342015 ? 36630410
General and administrative
expenses ? 1348187653 ? 1577032602
Research and development
expenses 2046032751 ? 2330865497
Financial expenses 574596105 ? 798736264
Including: Interest expenses 631737202 ? 892768026
Interest income 96658931 ? 93003346
Add: Other income 948637354 ? 948922174
Investment income XV.12 1934087931 ? 2755668691
Including: Income from
investment in
associates and
joint ventures ? 328861860 ? 864640400
Credit losses ? (18126642) ? (5247340)
Losses from asset disposals ? - ? (773327)
?????
III. Operating profit ? 3703688566 ? 4655844005
?????
Add: Non-operating income ? 6873424 ? 7424220
Less: Non-operating expenses ? 26617581 ? 5915655
?????
IV. Profit before income tax ? 3683944409 ? 4657352570
?????
Less: Income tax expenses XV.13 202080897 ? 260856004
?????
V. Net profit for the year ? 3481863512 ? 4396496566
????
The notes on pages 30 to 175 form part of these financial statements.
13BOE Technology Group Co. Ltd.
Company income statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
?????
VI. Other comprehensive income net of
tax XV.9 (55810525) ? 53550302
(1) Items that will not be reclassified
to profit or loss ? ? ? ?
1. Other comprehensive income
recognised under equity
method ? (53367649) ? 68869497
2. Changes in fair value of
investments in other equity
instruments ? (2570743) ? (15073903)
(2) Items that may be reclassified to
profit or loss ? 127867 ? (245292)
?????
VII. Total comprehensive income for the
year ? 3426052987 ? 4450046868
???
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (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 175 form part of these financial statements.
14BOE Technology Group Co. Ltd.
Consolidated cash flow statement
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
I. Cash flows from operating
activities: ? ? ? ?
Proceeds from sale of goods and
rendering of services ? 193327661415 ? 221840098206
Refund of taxes ? 17259338469 ? 13173129922
Proceeds from other operating
activities ? 7397264096 ? 5925158408
?????
Sub-total of cash inflows ? 217984263980 ? 240938386536
?????
Payment for goods and services ? (142617274685) ? (146642673111)
Payment to and for employees ? (19821022609) ? (17908235464)
Payment of various taxes ? (5394897972) ? (5149971194)
Payment for other operating
activities ? (7129101409) ? (8538818211)
?????
Sub-total of cash outflows ? (174962296675) ? (178239697980)
?????
?????
Net cash flows generated from
operating activities V.58(1) 43021967305 ? 62698688556
???
The notes on pages 30 to 175 form part of these financial statements.
15BOE Technology Group Co. Ltd.
Consolidated cash flow statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
II. Cash flows from investing activities: ? ? ? ?
Proceeds from disposal of investments ? 83038823137 ? 33071343623
Investment returns received ? 461543173 ? 180030588
Net proceeds from disposal of fixed
assets intangible assets and other
long-term assets ? 26645620 ? 69111303
Net proceeds from disposal of
subsidiaries ? 936758922 ? -
Proceeds from other investing
activities ? 1311942470 ? 3438995631
?????
Sub-total of cash inflows ? 85775713322 ? 36759481145
?????
Payment for acquisition of fixed
assets intangible assets and other
long-term assets ? (29398245045) ? (36098078337)
Payment for acquisition of investments ? (92205577385) ? (41638460294)
Net payment for acquisition of
subsidiaries ? - ? (2815535)
Net payment for disposal of
subsidiaries ? (144689766) ? (160887997)
?????
Sub-total of cash outflows ? (121748512196) ? (77900242163)
?????
?????
Net cash flows used in investing
activities ? (35972798874) ? (41140761018)
???
The notes on pages 30 to 175 form part of these financial statements.
16BOE Technology Group Co. Ltd.
Consolidated cash flow statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
?????
III. Cash flows from financing activities: ? ? ? ?
Proceeds from investors ? 2301848242 ? 31519607755
Including: Proceeds from non-
controlling shareholders
of subsidiaries ? 2301848242 ? 11187003325
Proceeds from issuance of debentures ? 2000000000 ? -
Proceeds from borrowings ? 49812750352 ? 31028727811
Proceeds from other financing
activities ? 771327623 ? 1106689881
?????
Sub-total of cash inflows ? 54885926217 ? 63655025447
???
The notes on pages 30 to 175 form part of these financial statements.
17BOE Technology Group Co. Ltd.
Consolidated cash flow statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
III. Cash flows from financing activities
(continued): ? ? ? ?
Repayments of borrowings ? (51681667124) ? (48435579182)
Payment for redeeming bonds ? (8000000000) ? -
Payment for dividends or interest ? (13828515479) ? (10261666002)
Including: Profits paid to non-
controlling shareholders
of subsidiaries ? (39388061) ? (34862550)
Payment for other financing activities ? (2548995476) ? (17139649816)
?????
Sub-total of cash outflows ? (76059178079) ? (75836895000)
?????
?????
Net cash flow used in financing
activities ? (21173251862) ? (12181869553)
?????
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents ? 1882635112 ? (817308273)
?????
?????
V. Net (decrease) / increase in cash and
cash equivalents V.58(1) (12241448319) ? 8558749712
?????
Add: Cash and cash equivalents at
the beginning of the year ? 76623486083 ? 68064736371
?????
VI. Cash and cash equivalents at the end
of the year V.58(3) 64382037764 ? 76623486083
???
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (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 175 form part of these financial statements.
18BOE Technology Group Co. Ltd.
Company cash flow statement
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
I. Cash flows from operating
activities: ? ? ? ?
Proceeds from sale of goods and
rendering of services ? 5650186755 ? 5868891208
Proceeds from other operating
activities ? 2005413901 ? 406266493
?????
Sub-total of cash inflows ? 7655600656 ? 6275157701
?????
Payment for goods and services ? (1161216577) ? (1038043873)
Payment to and for employees ? (1681332214) ? (1532937459)
Payment of various taxes ? (676007600) ? (495289004)
Payment for other operating
activities ? (452287489) ? (2504787813)
?????
Sub-total of cash outflows ? (3970843880) ? (5571058149)
?????
?????
Net cash flows generated from
operating activities XV.14(1) 3684756776 ? 704099552
?????
II. Cash flows from investing
activities: ? ? ? ?
Proceeds from disposal of
investments ? 330944027 ? 890504898
Proceeds from disposal of
subsidiaries ? - ? 230142095
Investment returns received ? 1257584843 ? 2129623919
Net proceeds from disposal of
fixed assets ? 241034 ? 13445008
Proceeds from other investing
activities ? 10546180253 ? 2075919565
?????
Sub-total of cash inflows ? 12134950157 ? 5339635485
????
The notes on pages 30 to 175 form part of these financial statements.
19BOE Technology Group Co. Ltd.
Company cash flow statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
II. Cash flows from investing activities
(continued): ? ? ? ?
Payment for acquisition of fixed
assets intangible assets and other
long-term assets ? (405565299) ? (715641262)
Payment for acquisition of investments ? (3989687433) ? (30498556648)
Payment for other investing activities ? (14117701133) ? (825000000)
?????
Sub-total of cash outflows ? (18512953865) ? (32039197910)
???
??
?????
Net cash flows used in investing
activities ? (6378003708) ? (26699562425)
?????
III. Cash flows from financing activities: ? ? ? ?
Proceeds from investors ? - ? 20332604430
Proceeds from issuance of debentures ? 2000000000 ? -
Proceeds from borrowings ? 25000000000 ? 14303000000
Proceeds from other financing
activities ? 24936039463 ? 20888483038
?????
Sub-total of cash inflows ? 51936039463 ? 55524087468
?????
Repayments of borrowings ? (25827547455) ? (17355376312)
Payment for redeeming bonds ? (8000000000) ? -
Payment for dividends and interest ? (9842819608) ? (5524312554)
Payment for other financing activities ? (4136747868) ? (5389705939)
?????
Sub-total of cash outflows ? (47807114931) ? (28269394805)
???
??
?????
Net cash flows generated from
financing activities ? 4128924532 ? 27254692663
????
The notes on pages 30 to 175 form part of these financial statements.
20BOE Technology Group Co. Ltd.
Company cash flow statement
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? Note 2022 ? 2021
?????
IV. Effect of foreign exchange rate changes
on cash and cash equivalents ? 76264084 ? (19357657)
?????
?????
V. Net increase in cash and cash equivalents XV.14(1) 1511941684 ? 1239872133
?????
Add: Cash and cash equivalents at the
beginning of the year ? 5599937349 ? 4360065216
?????
VI. Cash and cash equivalents at the end of
the year XV.14(2) 7111879033 ? 5599937349
????
These financial statements were approved by the Board of Directors of the Company on 31
March 2023.Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (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 175 form part of these financial statements.
21BOE Technology Group Co. Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
? ? 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
?????????????????????
I. Balance at the beginning of the
year ? 38445746482 ? 14146997427 ? 53917609094 ? 3415768207 ? 113551147 ? 2889590205 ? 37106514799 ? 143204240947 ? 74174525569 ? 217378766516
II. Changes in equity during the
year ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
1. Total comprehensive
income ? - ? - ? - ? - ? (1164537236) ? - ? 7550877790 ? 6386340554 ? (9281532514) ? (2895191960)
2. Shareholders’
contributions of capital ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Contribution by non-
controlling
interests ? - ? - ? - ? - ? - ? - ? - ? - ? 2301848242 ? 2301848242
(2) Repurchase of
treasury shares V.39 - ? - ? - ? 1048154539 ? - ? - ? - ? (1048154539) ? - ? (1048154539)
(3) Cancellation of
treasury shares V.36/38/39 (249383061) ? - ? (641811942) ? (891195003) ? - ? - ? - ? - ? - ? -
(4) Equity-settled share-
based payments XI - ? - ? 654336707 ? (64525832) ? - ? - ? - ? 718862539 ? 44728854 ? 763591393
(5) Contribution by
holders of other
equity instruments V.37 - ? 1989320755 ? - ? - ? - ? - ? - ? 1989320755 ? - ? 1989320755
(6) Payment for capital
of holders of other
equity instruments V.37 - ? (7957047264) ? (42952736) ? - ? - ? - ? - ? (8000000000) ? - ? (8000000000)
3. Appropriation of profits ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Appropriation for
surplus reserve V.41 - ? - ? - ? - ? - ? 348186351 ? (348186351) ? - ? - ? -
(2) Accrued interest on
holders of other
equity instruments V.37 - ? 530695890 ? - ? - ? - ? - ? (530695890) ? - ? - ? -
(3) Payment for interest
on holders of other
equity instruments V.37 - ? (533600000) ? - ? - ? - ? - ? - ? (533600000) ? - ? (533600000)
(4) Distributions to
shareholders V.42 - ? - ? - ? - ? - ? - ? (7958923130) ? (7958923130) ? (54411212) ? (8013334342)
???
The notes on pages 30 to 175 form part of these financial statements.
22BOE Technology Group Co. Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
? ? Attributable to shareholders of the Company ? ? ? ?
Other
Other equity Less: Treasury comprehensive Non-controlling
? Note Share capital ? instruments ? Capital reserve ? shares ? income ? Surplus reserve ? Retained earnings ? Sub-total ? interests ? Total
4. Transfers within equity ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Transfer of other
comprehensive
income to
retained
earnings V.40/41/42 - ? - ? - ? - ? (22781941) ? 3287378 ? 19494563 ? - ? - ? -
5. Others ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Other movements
in equity of
associates V.10 - ? - ? 274685689 ? - ? - ? - ? - ? 274685689 ? 845261 ? 275530950
(2) Disposal of
equities in
subsidiaries V.38 - ? - ? - ? - ? - ? - ? - ? - ? (1154255778) ? (1154255778)
(3) Others V.38 - ? - ? 1056637580 ? - ? - ? - ? - ? 1056637580 ? (70861691) ? 985775889
?????????????????????
III. Balance at the end of the
year ? 38196363421 ? 8176366808 ? 55218504392 ? 3508201911 ? (1073768030) ? 3241063934 ? 35839081781 ? 136089410395 ? 65960886731 ? 202050297126
???
These financial statements were approved by the Board of Directors of the Company on 31 March 2023.Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (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 175 form part of these financial statements.
23BOE Technology Group Co. Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? ? 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
?????????????????????
I. Balance at the beginning of the year ? 34798398763 ? 14146997427 ? 37435655934 ? 1036298508 ? (22198072) ? 2444416669 ? 15509794622 ? 103276766835 ? 70120967879 ? 173397734714
Add: Changes in accounting policies ? - ? - ? - ? - ? - ? - ? 35577201 ? 35577201 ? 5309967 ? 40887168
Adjusted balance at the beginning of the year ? 34798398763 ? 14146997427 ? 37435655934 ? 1036298508 ? (22198072) ? 2444416669 ? 15545371823 ? 103312344036 ? 70126277846 ? 173438621882
II. Changes in equity during the year ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
1. Total comprehensive income ? - ? - ? - ? - ? 190988004 ? - ? 25960751646 ? 26151739650 ? 4900382436 ? 31052122086
2. Shareholders’ contributions of capital ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Contribution by ordinary
shareholders V.36 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.39 - ? - ? - ? 2428003419 ? - ? - ? - ? (2428003419) ? - ? (2428003419)
(5) Cancellation of treasury shares V.36/38/39 (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.41 - ? - ? - ? - ? - ? 439649657 ? (439649657) ? - ? - ? -
(2) Accrued interest on holders of
other equity instruments V.37 - ? 533600000 ? - ? - ? - ? - ? (533600000) ? - ? - ? -
(3) Payment for interest on holders of
other equity instruments V.37 - ? (533600000) ? - ? - ? - ? - ? - ? (533600000) ? - ? (533600000)
(4) Distributions to shareholders V.42 - ? - ? - ? - ? - ? - ? (3476073919) ? (3476073919) ? (34862550) ? (3510936469)
????
The notes on pages 30 to 175 form part of these financial statements.
24BOE Technology Group Co. Ltd.
Consolidated statement of changes in shareholders’ equity
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
? ? 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.40/42 - ? - ? - ? - ? (55238785) ? 5523879 ? 49714906 ? - ? - ? -
5. Others ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Other movements in equity of
associates V.10 - ? - ? 51030550 ? - ? - ? - ? - ? 51030550 ? - ? 51030550
(2) Acquisition of non-controlling
interests V.38 - ? - ? (658923890) ? - ? - ? - ? - ? (658923890) ? (12180161432) ? (12839085322)
(3) Disposal of equities in subsidiaries V.38 - ? - ? 288039797 ? - ? - ? - ? - ? 288039797 ? 146828923 ? 434868720
(4) Others V.38 - ? - ? (2082537) ? - ? - ? - ? - ? (2082537) ? (4450807) ? (6533344)
?????????????????????
III. Balance at the end of the year ? 38445746482 ? 14146997427 ? 53917609094 ? 3415768207 ? 113551147 ? 2889590205 ? 37106514799 ? 143204240947 ? 74174525569 ? 217378766516
??
These financial statements were approved by the Board of Directors of the Company on 31 March 2023.Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (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 175 form part of these financial statements.
25BOE Technology Group Co. Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2022
(Expressed in Renminbi Yuan)
Less: Other
Other equity Treasury comprehensive Surplus Retained
? Note Share capital ? instruments ? Capital reserve ? shares ? income ? reserve ? earnings ? Total
?????????????????
I. Balance at the beginning of the year ? 38445746482 ? 14146997427 ? 53598033152 ? 3415768207 ? 89024650 ? 2889590205 ? 11950975927 ? 117704599636
II. Changes in equity during the year ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
1. Total comprehensive income ? - ? - ? - ? - ? (55810525) ? - ? 3481863512 ? 3426052987
2. Shareholders’ contributions of
capital ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Repurchase of treasury shares V.39 - ? - ? - ? 1048154539 ? - ? - ? - ? (1048154539)
(2) Cancellation of treasury V.36/38/
shares 39 (249383061) ? - ? (641811942) ? (891195003) ? - ? - ? - ? -
(3) Equity-settled share-based
payments XI - ? - ? 699065561 ? (64525832) ? - ? - ? - ? 763591393
(4) Contribution by holders of
other equity instruments V.37 - ? 1989320755 ? - ? - ? - ? - ? - ? 1989320755
(5) Payment for capital of holders
of other equity instruments V.37/38 - ? (7957047264) ? (42952736) ? - ? - ? - ? - ? (8000000000)
3. Appropriation of profits ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Appropriation for surplus
reserve V.41 - ? - ? - ? - ? - ? 348186351 ? (348186351) ? -
(2) Accrued interest on holders of
other equity instruments V.37 - ? 530695890 ? - ? - ? - ? - ? (530695890) ? -
(3) Payment for interest on
holders of other equity
instruments V.37 - ? (533600000) ? - ? - ? - ? - ? - ? (533600000)
(4) Distributions to shareholders V.42 - ? - ? - ? - ? - ? - ? (7958923130) ? (7958923130)
????
The notes on pages 30 to 175 form part of these financial statements.
26BOE Technology Group Co. Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2022 (continued)
(Expressed in Renminbi Yuan)
Less: Other
Other equity 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 XV.9/10 - ? - ? - ? - ? (32873780) ? 3287378 ? 29586402 ? -
5. Others ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Other movements in
equity of associates XV.3 - ? - ? 141386796 ? - ? - ? - ? - ? 141386796
(2) Others ? - ? - ? (60093618) ? - ? - ? - ? - ? (60093618)
?????????????????
III. Balance at the end of the year ? 38196363421 ? 8176366808 ? 53693627213 ? 3508201911 ? 340345 ? 3241063934 ? 6624620470 ? 106424180280
???
These financial statements were approved by the Board of Directors of the Company on 31 March 2023.Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (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 175 form part of these financial statements.
27BOE Technology Group Co. Ltd.
Company statement of changes in shareholders’ equity
for the year ended 31 December 2021 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensiv Retained
? Note Share capital ? instruments ? Capital reserve ? shares ? e income ? Surplus reserve ? earnings ? Total
?????????????????
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.36 3650377019 ? - ? 16219134815 ? - ? - ? - ? - ? 19869511834
(2) Repurchase of treasury shares V.39 - ? - ? - ? 2428003419 ? - ? - ? - ? (2428003419)
(3) Cancellation of treasury V.36/38/
shares 39 (3029300) ? - ? (14270384) ? (17299684) ? - ? - ? - ? -?
(4) Equity-settled share-based
payments XI - ? - ? 640692637 ? (31234036) ? - ? - ? - ? 671926673
3. Appropriation of profits ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Appropriation for surplus
reserve V.41 - ? - ? - ? - ? - ? 439649657 ? (439649657) ? -
(2) Accrued interest on holders of
other equity instruments V.37 - ? 533600000 ? - ? - ? - ? - ? (533600000) ? -
(3) Payment for interest on
holders of other equity
instruments V.37 - ? (533600000) ? - ? - ? - ? - ? - ? (533600000)
(4) Distributions to shareholders V.42 - ? - ? - ? - ? - ? - ? (3476073919) ? (3476073919)
????
The notes on pages 30 to 175 form part of these financial statements.
28BOE 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 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 XV.9/10 - ? - ? - ? - ? (55238785) ? 5523879 ? 49714906 ? -
5. Others ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(1) Other movements in equity of
associates XV.3 - ? - ? 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 31 March 2023.Chen Yanshun Gao Wenbao Yang Xiaoping Teng Jiao (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 175 form part of these financial statements.
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 business
MLED business and smart medicine & engineering business. For information about the
subsidiaries of the Company refer to Note VII.II. Basis of preparation
The financial statements have been prepared on the going concern basis.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 2022 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.
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.
304 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.
(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.
31For a business combination involving entities not under common control and achieved in
stages the Group remeasures its previously-held equity interest in the acquiree to its
acquisition-date fair value and recognises any resulting difference between the fair value and
the carrying amount as investment income or other comprehensive income for the current
period. In addition any amount recognised in other comprehensive income and other
changes in the owners’ equity under equity accounting in prior reporting periods relating to
the previously-held equity interest that may be reclassified to profit or loss are transferred to
investment income at the date of acquisition (see Note III.11(2)(b)); Any previously-held
equity interest that is designated as equity investment at fair value through other
comprehensive income the other comprehensive income recognised in prior reporting
periods is transferred to retained earnings and surplus reserve at the date of acquisition.
6 Consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the consolidated
financial statements comprise the Company and its subsidiaries. Control exists when the
investor has all of following: power over the investee; exposure or rights to variable returns
from its involvement with the investee and has the ability to affect those returns through its
power over the investee. When assessing whether the Group has power only substantive
rights (held by the Group and other parties) are considered. The financial position financial
performance and cash flows of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.Non-controlling interests are presented separately in the consolidated balance sheet within
shareholders’ equity. Net profit or loss attributable to non-controlling shareholders is
presented separately in the consolidated income statement below the net profit line item.Total comprehensive income attributable to non-controlling shareholders is presented
separately in the consolidated income statement below the total comprehensive income line
item.When the amount of loss for the current period attributable to the non-controlling
shareholders of a subsidiary exceeds the non-controlling shareholders’ share of the opening
owners’ equity of the subsidiary the excess is still allocated against the non-controlling
interests.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.
32(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.
(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.
338 Foreign currency transactions and translation of foreign currency financial statements
When the Group receives capital in foreign currencies from investors the capital is translated
to Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency
transactions are on initial recognition translated to Renminbi at the spot exchange rates on
the dates of the transactions.Monetary items denominated in foreign currencies are translated to Renminbi at the spot
exchange rate at the balance sheet date. The resulting exchange differences are generally
recognised in profit or loss unless they arise from the re-translation of the principal and
interest of specific borrowings for the acquisition and construction of qualifying assets (see
Note III.15). Non-monetary items that are measured at historical cost in foreign currencies
are translated to Renminbi using the exchange rate at the transaction date. Non-monetary
items that are measured at fair value in foreign currencies are translated using the exchange
rate at the date the fair value is determined. The resulting exchange differences are
recognised in profit or loss except for the differences arising from the re-translation of equity
investments at fair value through other comprehensive income which are recognised in other
comprehensive income.In translating the financial statements of a foreign operation assets and liabilities of foreign
operation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items excluding retained earnings and the translation differences in other
comprehensive income are translated to Renminbi at the spot exchange rates at the
transaction dates. Income and expenses of foreign operation are translated to Renminbi at
the rates that approximate the spot exchange rates at the transaction dates. The resulting
translation differences are recognised in other comprehensive income. The translation
differences accumulated in shareholders’ equity with respect to a foreign operation are
transferred to profit or loss in the period when the foreign operation is disposed.
9 Financial instruments
Financial instruments include cash at bank and on hand investments in debt and equity
securities other than those classified as long-term equity investments (see Note III.11)
receivables payables loans and borrowings debentures payable and share capital.
(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.
34(2) Classification and subsequent measurement of financial assets
(a) Classification of financial assets
The classification of financial assets is generally based on the business model in which
a financial asset is managed and its contractual cash flow characteristics. On initial
recognition a financial asset is classified as measured at amortised cost at fair value
through other comprehensive income (“FVOCI”) or at fair value through profit or loss
(“FVTPL”).Financial assets are not reclassified subsequent to their initial recognition unless the
Group changes its business model for managing financial assets in which case all
affected financial assets are reclassified on the first day of the first reporting period
following the change in the business model.A financial asset is measured at amortised cost if it meets both of the following
conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect
contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.A debt investment is measured at FVOCI if it meets both of the following conditions and
is not designated as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.On initial recognition of an equity investment that is not held for trading the Group may
irrevocably elect to present subsequent changes in the investment’s fair value in other
comprehensive income. This election is made on an investment-by-investment basis.The instrument meets the definition of equity from the perspective of the issuer.All financial assets not classified as measured at amortised cost or FVOCI as
described above are measured at FVTPL. On initial recognition the Group may
irrevocably designate a financial asset that otherwise meets the requirements to be
measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.
35The business model refers to how the Group manages its financial assets in order to
generate cash flows. That is the Group’s business model determines whether cash
flows will result from collecting contractual cash flows selling financial assets or both.The Group determines the business model for managing the financial assets according
to the facts and based on the specific business objective for managing the financial
assets determined by the Group’s key management personnel.In assessing whether the contractual cash flows are solely payments of principal and
interest the Group considers the contractual terms of the instrument. For the purposes
of this assessment ‘principal’ is defined as the fair value of the financial asset on initial
recognition. ‘Interest’ is defined as consideration for the time value of money and for
the credit risk associated with the principal amount outstanding during a particular
period of time and for other basic lending risks and costs as well as a profit margin.The Group also assesses whether the financial asset contains a contractual term that
could change the timing or amount of contractual cash flows such that it would not
meet this condition.(b) Subsequent measurement of financial assets
- Financial assets at FVTPL
These financial assets are subsequently measured at fair value. Net gains and
losses including any interest or dividend income are recognised in profit or loss
unless the financial assets are part of a hedging relationship.- Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective
interest method. A gain or loss on a financial asset that is measured at amortised
cost and is not part of a hedging relationship shall be recognised in profit or loss
when the financial asset is derecognised reclassified through the amortisation
process or in order to recognise impairment gains or losses.- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculated
using the effective interest method impairment and foreign exchange gains and
losses are recognised in profit or loss. Other net gains and losses are recognised in
other comprehensive income. On derecognition gains and losses accumulated in
other comprehensive income are reclassified to profit or loss.- Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as
income in profit or loss. Other net gains and losses are recognised in other
comprehensive income. On derecognition gains and losses accumulated in other
comprehensive income are reclassified to retained earnings.
36(3) Classification and subsequent measurement of financial liabilities
Financial liabilities are classified as measured at FVTPL or amortised cost.- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (including
derivative financial liability) or it is designated as such on initial recognition.Financial liabilities at FVTPL are subsequently measured at fair value and net gains and
losses including any interest expense are recognised in profit or loss unless the financial
liabilities are part of a hedging relationship.- Financial liabilities at amortised cost
These financial liabilities are subsequently measured at amortised cost using the effective
interest method.
(4) Offsetting
Financial assets and financial liabilities are generally presented separately in the balance
sheet and are not offset. However a financial asset and a financial liability are offset and the
net amount is presented in the balance sheet when both of the following conditions are
satisfied:
- The Group currently has a legally enforceable right to set off the recognised amounts；
- The Group intends either to settle on a net basis or to realise the financial asset and
settle the financial liability simultaneously.
(5) Derecognition of financial assets and financial liabilities
Financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or；
- the financial asset has been transferred although the Group neither transfers nor retains
substantially all of the risks and rewards of ownership of the financial asset it does not
retain control over the transferred asset.Where a transfer of a financial asset in its entirety meets the criteria for derecognition the
difference between the two amounts below is recognised in profit or loss:
- the carrying amount of the financial asset transferred measured at the date of
derecognition;
- the sum of the consideration received from the transfer and when the transferred financial
asset is a debt investment at FVOCI any cumulative gain or loss that has been
recognised directly in other comprehensive income for the part derecognised.
37The Group derecognises a financial liability (or part of it) only when its contractual obligation
(or part of it) is extinguished.
(6) Impairment
The Group recognises loss allowances for expected credit loss (ECL) on:
- financial assets measured at amortised cost;
- contract assets;
- debt investments 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.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.
38Significant increases in credit risk
In assessing whether the credit risk of a financial instrument has increased significantly since
initial recognition the Group compares the risk of default occurring on the financial
instrument assessed at the balance sheet date with that assessed at the date of initial
recognition.When determining whether the credit risk of a financial asset has increased significantly
since initial recognition and when estimating ECL the Group considers reasonable and
supportable information that is relevant and available without undue cost or effort including
forward-looking information. In particular the following information is taken into account:
- failure to make payments of principal or interest on their contractually due dates;
- an actual or expected significant deterioration in a financial instrument’s external or
internal credit rating (if available);
- an actual or expected significant deterioration in the operating results of the debtor; and
- existing or forecast changes in the technological market economic or legal environment
that have a significant adverse effect on the debtor’s ability to meet its obligation to the
Group.Depending on the nature of the financial instruments the assessment of a significant
increase in credit risk is performed on either an individual basis or a collective basis. When
the assessment is performed on a collective basis the financial instruments are grouped
based on shared credit risk characteristics such as past due status and credit risk ratings.The Group assumes that the credit risk on a financial asset has increased significantly if it is
more than 30 days past due.Credit-impaired financial assets
At each balance sheet date the Group assesses whether financial assets carried at
amortised cost and debt investments at FVOCI are credit-impaired. A financial asset is
‘credit-impaired’ when one or more events that have a detrimental impact on the estimated
future cash flows of the financial asset have occurred. Evidence that a financial asset is
credit-impaired includes the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a default or delinquency in interest or principal payments;
- for economic or contractual reasons relating to the borrower’s financial difficulty the
Group having granted to the borrower a concession that would not otherwise consider;
- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for that financial asset because of financial
difficulties.Presentation of allowance for ECL
ECLs are remeasured at each balance sheet date to reflect changes in the financial
instrument’s credit risk since initial recognition. Any change in the ECL amount is recognised
as an impairment gain or loss in profit or loss. The Group recognises an impairment gain or
loss for all financial instruments with a corresponding adjustment to their carrying amount
through a loss allowance account except for debt investments that are measured at FVOCI
for which the loss allowance is recognised in other comprehensive income.
39Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the
extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition
event. This is generally the case when the Group determines that the debtor does not have
assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. However financial assets that are written off could still be subject to
enforcement activities in order to comply with the Group’s procedures for recovery of
amounts due.Subsequent recoveries of an asset that was previously written off are recognised as a
reversal of impairment in profit or loss in the period in which the recovery occurs.
(7) Equity instrument
The consideration received from the issuance of equity instruments net of transaction costs
is recognised in shareholders’ equity. Consideration and transaction costs paid by the
Company for repurchasing self-issued equity instruments are deducted from shareholders’
equity.When the Company repurchases its own shares those shares are treated as treasury
shares. All expenditure relating to the repurchase is recorded in the cost of the treasury
shares with the transaction recording in the share register. Treasury shares are excluded
from profit distributions and are presented as a deduction under shareholders’ equity in the
balance sheet.When treasury shares are cancelled the share capital should be reduced to the extent of the
total par value of the treasury shares cancelled. Where the cost of the treasury shares
cancelled exceeds the total par value the excess is deducted from capital reserve (share
premium) surplus reserve and retained earnings sequentially. If the cost of treasury shares
cancelled is less than the total par value the difference is credited to the capital reserve
(share premium).When treasury shares are disposed of any excess of proceeds above cost is recognised in
capital reserve (share premium); otherwise the shortfall is deducted against capital reserve
(share premium) surplus reserve and retained earnings sequentially.
(8) Perpetual bonds
At initial recognition the Group classifies the perpetual bonds issued or their components as
financial assets financial liabilities or equity instruments based on their contractual terms and
their economic substance after considering the definition of financial assets financial
liabilities and equity instruments.Perpetual bonds issued that should be classified as equity instruments are recognised in
equity based on the actual amount received. Any distribution of dividends or interests during
the instruments’ duration is treated as profit appropriation. When the perpetual bonds are
redeemed according to the contractual terms the redemption price is charged to equity.
4010 Inventories
(1) Classification and cost
Inventories include raw materials work in progress finished goods and reusable materials.Reusable materials include low-value consumables packaging materials and other
materials which can be used repeatedly but do not meet the definition of fixed assets.Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase
costs of conversion and other expenditure incurred in bringing the inventories to their present
location and condition. In addition to the purchase cost of raw materials work in progress
and finished goods include direct labour costs and an appropriate allocation of production
overheads.
(2) Measurement method of cost of inventories
Cost of inventories recognised is calculated using the weighted average method.Consumables including low-value consumables and packaging materials are charged to
profit or loss upon receipt. The amortisation charge is included in the cost of the related
assets or recognised in profit or loss for the current period.
(3) Basis for determining the net realisable value and method for provision for obsolete
inventories
At the balance sheet date inventories are carried at the lower of cost and net realisable
value.Net realisable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale and
relevant taxes. The net realisable value of materials held for use in the production is
measured based on the net realisable value of the finished goods in which they will be
incorporated. The net realisable value of the inventory held to satisfy sales or service
contracts is measured based on the contract price to the extent of the quantities specified in
sales contracts and the excess portion of inventories is measured based on general selling
prices.Any excess of the cost over the net realisable value of each category of inventories is
recognised as a provision for obsolete inventories and is recognised in profit or loss.
(4) Inventory count system
The Group maintains a perpetual inventory system.
4111 Long-term equity investments
(1) Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
- The initial cost of a long-term equity investment acquired through a business
combination involving entities under common control is the Company’s share of the
carrying amount of the subsidiary’s equity in the consolidated financial statements of
the ultimate controlling party at the combination date. The difference between the
initial investment cost and the carrying amount of the consideration given is adjusted
to the share premium in the capital reserve with any excess adjusted to retained
earnings. For a long-term equity investment in a subsidiary acquired through a
business combination achieved in stages which do not form a bundled transaction
and involving entities under common control the Company determines the initial
cost of the investment in accordance with the above policies. The difference
between this initial cost and the sum of the carrying amount of previously-held
investment and the consideration paid for the shares newly acquired is adjusted to
capital premium in the capital reserve with any excess adjusted to retained
earnings.- For a long-term equity investment obtained through a business combination not
involving entities under common control the initial cost comprises the aggregate of
the fair value of assets transferred liabilities incurred or assumed and equity
securities issued by the Company in exchange for control of the acquiree. For a
long-term equity investment obtained through a business combination not involving
entities under common control and achieved through multiple transactions in stages
which do not form a bundled transaction the initial cost comprises the carrying
amount of the previously-held equity investment in the acquiree immediately before
the acquisition date and the additional investment cost at the acquisition date.(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business combination
is initially recognised at the amount of cash paid if the Group acquires the
investment by cash or at the fair value of the equity securities issued if an
investment is acquired by issuing equity securities.
(2) Subsequent measurement of long-term equity investment
(a) Investments in subsidiaries
In the Company’s separate financial statements long-term equity investments in
subsidiaries are accounted for using the cost method for subsequent measurement
unless the investment is classified as held for sale (see Note III.29). Except for cash
dividends or profit distributions declared but not yet distributed that have been included
in the price or consideration paid in obtaining the investments the Company
recognises its share of the cash dividends or profit distributions declared by the
investee as investment income for the current period.The investments in subsidiaries are stated in the balance sheet at cost less
accumulated impairment losses.For the impairment of the investments in subsidiaries refer to Note III.19.
42In 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)).An investment in a joint venture or an associate is accounted for using the equity
method for subsequent measurement unless the investment is classified as held for
sale (see Note III.29).The accounting treatments under the equity method adopted by the Group are as
follows:
- Where the initial cost of a long-term equity investment exceeds the Group’s interest
in the fair value of the investee’s identifiable net assets at the date of acquisition the
investment is initially recognised at cost. Where the initial investment cost is less
than the Group’s interest in the fair value of the investee’s identifiable net assets at
the date of acquisition the investment is initially recognised at the investor’s share
of the fair value of the investee’s identifiable net assets and the difference is
recognised in profit or loss.- After the acquisition of the investment the Group recognises its share of the
investee’s profit or loss and other comprehensive income as investment income or
losses and other comprehensive income respectively and adjusts the carrying
amount of the investment accordingly. Once the investee declares any cash
dividends or profit distributions the carrying amount of the investment is reduced by
the amount attributable to the Group. Changes in the Group’s share of the
investee’s owners’ equity other than those arising from the investee’s net profit orloss other comprehensive income or profit distribution (referred to as “otherchanges in owners’ equity”) is recognised directly in the Group’s equity and the
carrying amount of the investment is adjusted accordingly.- In calculating its share of the investee’s net profits or losses other comprehensive
income and other changes in owners’ equity the Group recognises investment
income and other comprehensive income after making appropriate adjustments to
align the accounting policies or accounting periods with those of the Group based on
the fair value of the investee’s identifiable net assets at the date of acquisition.Unrealised profits and losses resulting from transactions between the Group and its
associates or joint ventures are eliminated to the extent of the Group’s interest in the
associates or joint ventures. Unrealised losses resulting from transactions between
the Group and its associates or joint ventures are eliminated in the same way as
unrealised gains but only to the extent that there is no impairment.
43- 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.
(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%
???
4413 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 for rental 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 ? 3% - 10% ? 1.8% - 9.7%
Equipment 2 - 25 years ? 0 - 10% ? 3.6% - 50%
Others 2 - 10 years ? 0 - 10% ? 9.0% - 50%
???
Useful lives residual values and depreciation methods are reviewed at least at each year-
end.
(3) For the impairment of the fixed assets refer to Note III.19.
(4) 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.
45Gains 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).When an enterprise sells products or by-products produced before a fixed asset is available
for its intended use the proceeds and related cost are accounted for in accordance with CAS
14 – Revenue and CAS 1 – Inventories respectively and recognised in profit or loss for the
current period.
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.
46During 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.
47Expenditure 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.When an enterprise sells products or by-products produced in the course of research and
development the proceeds and related cost are accounted for in accordance with CAS 14 –
Revenue and CAS 1 – Inventories respectively and recognised in profit or loss for the
current period.
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.
48If any indication exists the recoverable amount of the asset is estimated. In addition the
Group estimates the recoverable amounts of goodwill at each year-end irrespective of
whether there is any indication of impairment. Goodwill is allocated to each asset group or
set of asset groups which is expected to benefit from the synergies of the combination for
the purpose of impairment testing.The recoverable amount of an asset (or asset group set of asset groups) is the higher of its
fair value (see Note III.20) less costs to sell and its present value of expected future cash
flows.An asset group is composed of assets directly related to cash generation and is the smallest
identifiable group of assets that generates cash inflows that are largely independent of the
cash inflows from other assets or asset groups.The present value of expected future cash flows of an asset is determined by discounting the
future cash flows estimated to be derived from continuing use of the asset and from its
ultimate disposal to their present value using an appropriate pre-tax discount rate.An impairment loss is recognised in profit or loss when the recoverable amount of an asset is
less than its carrying amount. A provision for impairment of the asset is recognised
accordingly. Impairment losses related to an asset group or a set of asset groups are
allocated first to reduce the carrying amount of any goodwill allocated to the asset group or
set of asset groups and then to reduce the carrying amount of the other assets in the asset
group or set of asset groups on a pro rata basis. However such allocation would not reduce
the carrying amount of an asset below the highest of its fair value less costs to sell (if
measurable) its present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognised it is not reversed in a subsequent period.
20 Fair value measurement
Unless otherwise specified the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date.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.
4921 Provisions
A provision is recognised for an obligation related to a contingency if the Group has a
present obligation that can be estimated reliably and it is probable that an outflow of
economic benefits will be required to settle the obligation.A provision is initially measured at the best estimate of the expenditure required to settle the
related present obligation. Where the effect of the time value of money is material provisions
are determined by discounting the expected future cash flows. Factors pertaining to a
contingency such as the risks uncertainties and time value of money are taken into account
as a whole in reaching the best estimate. Where there is a continuous range of possible
outcomes for the expenditure required and each possible outcome in that range is as likely
as any other the best estimate is the mid-point of that range. In other cases the best
estimate is determined according to the following circumstances:
- Where the contingency involves a single item the best estimate is the most likely
outcome.- Where the contingency involves a large population of items the best estimate is
determined by weighting all possible outcomes by their associated probabilities.The Group reviews the carrying amount of a provision at the balance sheet date and adjusts
the carrying amount to the current best estimate.
22 Share-based payments
(1) Classification of share-based payments
Share-based payment transactions in the Group are equity-settled share-based payments.
(2) Accounting treatment of share-based payments
- Equity-settled share-based payments
Where the Group uses shares or other equity instruments as consideration for services
received from the employees the payment is measured at the fair value of the equity
instruments granted to the employees at the grant date. If the equity instruments granted
do not vest until the completion of services for a period or until the achievement of a
specified performance condition the Group recognises an amount at each balance sheet
date during the vesting period based on the best estimate of the number of equity
instruments expected to vest according to the newly obtained subsequent information of
the changes of the number of the employees expected to vest the equity instruments. The
Group measures the services received at the grant-date fair value of the equity
instruments and recognises the costs or expenses as the services are received with a
corresponding increase in capital reserve.
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.
50Where a contract has two or more performance obligations the Group determines the stand-
alone selling price at contract inception of the distinct good or service underlying each
performance obligation in the contract and allocates the transaction price in proportion to
those stand-alone selling prices. The Group recognises as revenue the amount of the
transaction price that is allocated to each performance obligation. The stand-alone selling
price is the price at which the Group would sell a promised good or service separately to a
customer. If a stand-alone selling price is not directly observable the Group considers all
information that is reasonably available to the entity maximises the use of observable inputs
to estimate the stand-alone selling price.For the contract which the Group grants a customer the option to acquire additional goods or
services (such as loyalty points discount coupons for future purchase etc.) the Group
assesses whether the option provides a material right to the customer. If the option provides
a material right the Group recognises the option as a performance obligation and
recognises revenue when those future goods or services are transferred or when the option
expires. If the stand-alone selling price for a customer’s option to acquire additional goods or
services is not directly observable the Group estimates it taking into account all relevant
information including the difference in the discount that the customer would receive when
exercising the option or without exercising the option and the likelihood that the option will
be exercised.For the contract with a warranty the Group analyses the nature of the warranty provided if
the warranty provides the customer with a distinct service in addition to the assurance that
the product complies with agreed-upon specifications the Group recognises for the promised
warranty as a performance obligation. Otherwise the Group accounts for the warranty in
accordance with the requirements of CAS No.13 – Contingencies.The transaction price is the amount of consideration to which the Group expects to be
entitled in exchange for transferring promised goods or services to a customer excluding
amounts collected on behalf of third parties. The Group recognises the transaction price only
to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur when the uncertainty associated with the variable
consideration is subsequently resolved. To determine the transaction price for contracts in
which a customer promises consideration in a form other than cash the Group measures the
non-cash consideration at fair value. If the Group cannot reasonably estimate the fair value
of the non-cash consideration the Group measures the consideration indirectly by reference
to the stand-alone selling price of the goods or services promised to the customer in
exchange for the consideration. Where the contract contains a significant financing
component the Group recognises the transaction price at an amount that reflects the price
that a customer would have paid for the promised goods or services if the customer had paid
cash for those goods or services when (or as) they transfer to the customer. The difference
between the amount of promised consideration and the cash selling price is amortised using
an effective interest method over the contract term. The Group does not adjust the
consideration for any effects of a significant financing component if it expects at contract
inception that the period between when the Group transfers a promised good or service to a
customer and when the customer pays for that good or service will be one year or less.The Group satisfies a performance obligation over time if one of the following criteria is met;
or otherwise a performance obligation is satisfied at a point in time:
- the customer simultaneously receives and consumes the benefits provided by the Group’s
performance as the Group performs;
- the customer can control the asset created or enhanced during the Group’s performance;
or
- the Group’s performance does not create an asset with an alternative use to it and the
Group has an enforceable right to payment for performance completed to date.For performance obligation satisfied over time the Group recognises revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. When
the outcome of that performance obligation cannot be measured reasonably but the Group
expects to recover the costs incurred in satisfying the performance obligation the Group
recognises revenue only to the extent of the costs incurred until such time that it can
reasonably measure the outcome of the performance obligation.
51For 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)
52For 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.
(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.
5324 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.
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.
54(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.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.
55In 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.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.
56At 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
At inception of a contract the Group assesses whether a contract is or contains a lease. A
contract is or contains a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.To assess whether a contract conveys the right to control the use of an identified asset the
Group assesses whether:
- the contract involves the use of an identified asset. An identified asset may be specified
explicitly or implicitly specified in a contract and should be physically distinct or capacity
portion or other portion of an asset that is not physically distinct but it represents
substantially all of the capacity of the asset and thereby provides the customer with the
right to obtain substantially all of the economic benefits from the use of the asset. If the
supplier has a substantive substitution right throughout the period of use then the asset is
not identified;
- the lessee has the right to obtain substantially all of the economic benefits from use of the
asset throughout the period of use;
- the lessee has the right to direct the use of the asset.For a contract that contains more separate lease components the lessee and the lessor
separate lease components and account for each lease component as a lease separately.For a contract that contains lease and non-lease components the lessee and the lessor
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.
57The right-of-use asset is depreciated using the straight-line method. If the lessee is
reasonably certain to exercise a purchase option by the end of the lease term the right-of-
use asset is depreciated over the remaining useful lives of the underlying asset. Otherwise
the right-of-use asset is depreciated from the commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end of the lease term. Impairment losses of
right-of-use assets are accounted for in accordance with the accounting policy described in
Note III.19.The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date discounted using the interest rate implicit in the lease or if
that rate cannot be readily determined the Group’s incremental borrowing rate.A constant periodic rate is used to calculate the interest on the lease liability in each period
during the lease term with a corresponding charge to profit or loss or included in the cost of
assets where appropriate. Variable lease payments not included in the measurement of the
lease liability is charged to profit or loss or included in the cost of assets where appropriate
as incurred.Under the following circumstances after the commencement date the Group remeasures
lease liabilities based on the present value of revised lease payments:
- there is a change in the amounts expected to be payable under a residual value
guarantee;
- there is a change in future lease payments resulting from a change in an index or a rate
used to determine those payments;
- there is a change in the assessment of whether the Group will exercise a purchase
extension or termination option or there is a change in the exercise of the extension or
termination option.When the lease liability is remeasured a corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.The Group has elected not to recognise right-of-use assets and lease liabilities for short-term
leases that have a lease term of 12 months or less and leases of low-value assets. The
Group recognises the lease payments associated with these leases in profit or loss or as the
cost of the assets where appropriate using the straight-line method or other systematic basis
over the lease term.
(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.
58Under a finance lease at the commencement date the Group recognises the finance lease
receivable and derecognises the finance lease asset. The finance lease receivable is initially
measured at an amount equal to the net investment in the lease. The net investment in the
lease is measured at the aggregate of the unguaranteed residual value and the present
value of the lease receivable that are not received at the commencement date discounted
using the interest rate implicit in the lease.The Group calculates and recognises interest income for each period of the lease term
based on a fixed periodic interest rate. The derecognition and impairment of the finance
lease receivable are recognised in accordance with the accounting policy in Note III.9.Variable lease payments not included in the measurement of net investment in the lease are
recognised as income as they are earned.Lease receipts from operating leases is recognised as income using the straight-line method
or other systematic basis over the lease term. The initial direct costs incurred in respect of
the operating lease are initially capitalised and subsequently amortised in profit or loss over
the lease term on the same basis as the lease income. Variable lease payments not included
in lease receipts are recognised as income as they are earned.
29 Assets held for sale
The Group classified a non-current asset or disposal group as held for sale when the
carrying amount of a non-current asset or disposal group will be recovered through a sale
transaction rather than through continuing use.A disposal group refers to a group of assets to be disposed of by sale or otherwise together
as a whole in a single transaction and liabilities directly associated with those assets that will
be transferred in the transaction.A non-current asset or disposal group is classified as held for sale when all the following
criteria are met:
- According to the customary practices of selling such asset or disposal group in similar
transactions the non-current asset or disposal group must be available for immediate sale
in their present condition subject to terms that are usual and customary for sales of such
assets or disposal groups;
- Its sale is highly probable that is the Group has made a resolution on a sale plan and has
obtained a firm purchase commitment. The sale is to be completed within one year.Non-current assets or disposal groups held for sale are stated at the lower of carrying
amount and fair value (see Note III.20) less costs to sell (except financial assets (see note
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.
59Hedged items are items that expose the Group to risks of changes in fair value or cash flows
and that are designated as being hedged and can be reliably measured. The Group’s
hedged items include a firm commitment that is settled with a fixed amount of foreign
currency and that exposes the Group to foreign currency risk.A hedging instrument is a designated financial instrument whose changes in fair value or
cash flows are expected to offset changes in the fair value or cash flows of the hedged item.For a hedge of foreign currency risk the foreign currency risk component of a non-derivative
financial asset or non-derivative financial liability may also be designated as a hedging
instrument provided that it is not an investment in an equity instrument for which an entity
has elected to present changes in the fair value in other comprehensive income.The Group assesses at the inception of a hedging relationship and on an ongoing basis
whether the hedging relationship meets the hedge effectiveness requirements. A hedging
relationship is regarded as having met the hedge effectiveness requirements if all of the
following conditions are satisfied:
- There is an economic relationship between the hedged item and the hedging instrument.- The effect of credit risk does not dominate the value changes that result from the
economic relationship.- The hedge ratio of the hedging relationship is the same as that resulting from the quantity
of the hedged item that the entity actually hedges and the quantity of the hedging
instrument that the entity actually uses to hedge that quantity of the hedged item.When a hedging relationship no longer meets the hedge effectiveness requirements due to
the hedge ratio but the risk management objective of the designated hedging relationship
remains unchanged the Group rebalances the hedging relationship. Rebalancing refers to
the adjustments made to the designated quantities of the hedged item or the hedging
instrument of an already existing hedging relationship for the purpose of maintaining a hedge
ratio that complies with the hedge effectiveness requirements.The Group discontinues applying hedge accounting in any of the following circumstances:
- The hedging relationship no longer meets the risk management objective on the basis of
which it qualified for hedge accounting.- The hedging instrument expires or is sold terminated or exercised.- There is no longer an economic relationship between the hedged item and the hedging
instrument or the effect of credit risk starts to dominate the value changes that result from
that economic relationship.- The hedging relationship no longer meets other criteria for applying hedge accounting.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.
60The portion of the gain or loss on the hedging instrument that is determined to be
ineffectiveness is recognised in profit or loss.If a hedged forecast transaction subsequently results in the recognition of a non-financial
asset or non-financial liability or a hedged forecast transaction for a non-financial asset or
non-financial liability becomes a firm commitment for which fair value hedge accounting is
applied the Group removes that amount from the cash flow hedge reserve and includes it in
the initial cost or other carrying amount of the asset or liability.For cash flow hedges other than those covered above that amount is reclassified from the
cash flow hedge reserve to profit or loss as a reclassification adjustment in the same period
or periods during which the hedged expected future cash flows affect profit or loss.When the Group discontinues hedge accounting for a cash flow hedge the amount of the
accumulated cash flow hedge reserve recognised in other comprehensive income is
accounted for as follows:
- If the hedged future cash flows are still expected to occur that amount will remain in the
cash flow hedge reserve and be accounted for in accordance with the above policy.- If the hedged future cash flows are no longer expected to occur that amount is
immediately reclassified from the cash flow hedge reserve to profit or loss as a
reclassification adjustment.
31 Profit distributions
Dividends or profit distributions proposed in the profit appropriation plan which will be
approved after the balance sheet date are not recognised as a liability at the balance sheet
date but are disclosed in the notes separately.
32 Related parties
If a party has the power to control jointly control or exercise significant influence over
another party or vice versa or where two or more parties are subject to common control or
joint control from another party they are considered to be related parties. Related parties
may be individuals or enterprises. Enterprises with which the Company is under common
control only from the State and that have no other related party relationships are not
regarded as related parties.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.
61Inter-segment revenues are measured on the basis of the actual transaction prices for such
transactions for segment reporting. Segment accounting policies are consistent with those for
the consolidated financial statements.
34 Significant accounting estimates and judgements
The preparation of the financial statements requires management to make estimates and
assumptions that affect the application of accounting policies and the reported amounts of
assets liabilities income and expenses. Actual results may differ from these estimates.Estimates as well as underlying assumptions and uncertainties involved are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.Except for accounting estimates relating to depreciation and amortisation of assets such as
fixed assets and intangible assets (see Notes III.13 and 16) and provision for impairment of
various types of assets (see Notes V.4 6 7 8 10 14 15 16 and 17). Other significant
accounting estimates are as follows:
(i) Note V.19: Recognition of deferred tax assets;
(ii) Note V.30: Warranty provisions;
(iii) Note IX. – 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.
35. Changes in significant accounting policies
(1) Description of and reasons for changes in accounting policies
In 2022 the Group has adopted the revised accounting requirements and guidance under
CAS newly issued by the Ministry of Finance (“MOF”) as follows:- “Accounting for selling outputs that are produced before fixed assets are available forintended use or produced in the course of research and development” (“accounting forsales before intended use") in CAS Bulletin No.15 (Caikuai [2021] No.35);
- “Determining whether a contract is onerous” in CAS Bulletin No.15;
- Notice of Application Issues for Accounting Treatment of COVID-19-Related Rent
Concessions (Caikuai [2022] No.13);- “Accounting for the income tax consequences of dividends on financial instrumentsclassified as equity instruments by the issuer” in CAS Bulletin No.16 (Caikuai [2022]
No.31); and- “Accounting for the modification of a share-based payment transaction that changes theclassification of the transaction from cash-settled to equity-settled” in CAS Bulletin No.16
62(a) Main effects of adopting the above requirements and guidance
(i) Accounting for sales before intended use
In accordance with CAS Bulletin No.15 the Group accounts for the proceeds and
related cost arising from the sale of products or by-products produced before the
fixed asset is available for its intended use and in the course of research and
development (“sales before intended use”) in accordance with CAS 14 – Revenue
and CAS 1 – Inventories respectively and recognises them in profit or loss for the
current period. The net amount of proceeds from such sales before intended use
less related costs is no longer offset against the cost of the fixed asset or research
and development expenditure.These provisions are effective from 1 January 2022. The Group has made
retrospective adjustments in accordance with these provisions for sales before
intended use occurring between 1 January 2021 and the date of initial
implementation.The adoption of Bulletin No.15 does not have a significant effect on the financial
position and financial performance of the Company.(ii) “Determining whether a contract is onerous”
In accordance with CAS Bulletin No.15 when determining whether a contract is
onerous the Group includes in its estimated cost of fulfilling the contract the
amount of the incremental cost of fulfilling the contract and the allocation of other
costs directly attributable to fulfilling the contract.The adoption of Bulletin No.15 does not have a significant effect on the financial
position and financial performance of the Group and the Company.(iii) Caikuai [2022] No.13
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.According to the provisions of Caikuai [2022] No.13 the practical expedient of
Caikuai [2020] No.10 can continue to apply to eligible reduction in lease payments
that are originally due after 30 June 2022.The adoption of the above regulation does not have a significant effect on the
financial position and financial performance of the Group and the Company.(iv) Accounting for the income tax consequences of dividends on financial instruments
classified as equity instruments by the issuer
In accordance with CAS Bulletin No.16 for financial instruments classified as
equity instruments (such as perpetual bonds classified as equity instruments etc.)
in accordance with the CAS No. 37 - Presentation and Disclosure of Financial
Instruments and other requirements if the relevant dividend payments are
deductible for income tax purposes according to the relevant provisions of tax
policies the Group (as the issuer) shall recognise the income tax consequences of
dividends when it recognises a liability to pay a dividend. The Group shall
recognise the income tax consequences of dividends in (1) profit or loss if those
payments are distributions of profits generated from transactions or events
previously recognised in profits or loss; or (2) the items of owner's equity if those
payments are distributions of profits generated from the transactions or events
previously recognised in the items of owner's equity.
63The adoption of Bulletin No.16 does not have a significant effect on the financial
position and financial performance of the Group and the Company.(v) Accounting for the modification of a share-based payment transaction that
changes the classification of the transaction from cash-settled to equity-settled
In accordance with CAS Bulletin No.16 if the terms and conditions of a cash-
settled share-based payment transaction are modified such that it becomes an
equity-settled share-based payment transaction the Group shall at the
modification date:
* measure the equity-settled share-based payment at its fair value as at the
modification date and recognise in equity that fair value to the extent that the
services have been rendered up to that date;
* derecognise the liability for the cash-settled share-based payment as at the
modification date; and
* immediately recognise in profit or loss the difference between the carrying
amount of the liability and the amount recognised in equity.If the modification extends or shortens the vesting period the Group applies the
modified vesting period to the above accounting treatment.The adoption of Bulletin No.16 does not have a significant effect on the financial
position and financial performance of the Group and the Company.(b) The effects on the financial statements
The effects on each of the line items in the consolidated balance sheet as at 31
December 2022 are as follows:
Increase/(decrease) in the
line items for the year as a
result of applying new
accounting policies
The Group
??
Assets: ?
Inventories 125164818
Fixed assets 370255620
Construction in progress (122638939)
??
Shareholders’ equity: ?
Retained earnings 98225752
Capital reserve 112771892
Non-controlling interests 161783855
?
64The effects on each of the line items in the consolidated income statement for the year
ended 31 December 2022 are as follows:
Increase/(decrease) in the
line items for the year as a
result of applying new
accounting policies
The Group
??
Operating income 1407856936
Operating costs 1514976278
Research and development expenses 25722208
Losses before income tax (132841550)
Net loss for the year (132841550)
Attributable to: Shareholders of the Company (67167595)
Non-controlling interests (65673955)
?
The effects on each of the line items in the consolidated cash flow statement for the year
ended 31 December 2022 are as follows:
Increase/(decrease) in the
line items for the year as a
result of applying new
accounting policies
The Group
??
Proceeds from sale of goods and rendering of services 1558099468
Payment for goods and services 1615780128
Payment to and for employees 119971211
Payment for acquisition of fixed assets intangible assets
and other long-term assets (177651871)
?
(c) The effects on the comparative financial statements
The effects of these changes in accounting policies on the Group’s net profit for the year
ended 31 December 2021 and opening and closing balances of shareholders’ equity as
at 1 January and 31 December 2021 are summarised as follows:
The Group
20212021
2021 Closing balance of Opening balance of
Net profit ? shareholders’ equity ? shareholders’ equity
??????
Net profit and shareholders’
equity before adjustments 30431668974 ? 216873143467 ? 173397734714
The effects of sales before
intended use 464735881 ? 505623049 ? 40887168
Net profit and shareholders’
equity after adjustments 30896404855 ? 217378766516 ? 173438621882
?
65The effects on each of the line items in the consolidated balance sheet as at 31
December 2021 are as follows:
The Group
The amounts of
Before adjustments ? adjustments ? After adjustments
??????
Assets: ? ? ? ? ?
Inventories 27724806939 ? 80354497 ? 27805161436
Fixed assets 226695489704 ? 445877180 ? 227141366884
Construction in progress 32120320507 ? (20608628) ? 32099711879
??????
Shareholders’ equity: ? ? ? ? ?
Retained earnings 36941121452 ? 165393347 ? 37106514799
Capital reserve 53804309393 ? 113299701 ? 53917609094
Non-controlling interests 73947595568 ? 226930001 ? 74174525569
?
?The effects on each of the line items in the consolidated income statement for the year
ended 31 December 2021 are as follows:
The Group
The amounts of
Before adjustments ? adjustments ? After adjustments
??????
Operating income 219309799505 ? 1725918507 ? 221035718012
Operating costs 155985225295 ? 1313600486 ? 157298825781
Research and development
expenses 10668844187 ? (52417860) ? 10616426327
Profit before income tax 34619640378 ? 464735881 ? 35084376259
Net profit for the year 30431668974 ? 464735881 ? 30896404855
Attributable to: Shareholders of
the Company 25830935500 ? 129816146 ? 25960751646
Non-controlling
interests 4600733474 ? 334919735 ? 4935653209
?
?The effects on each of the line items in the consolidated cash flow statement for the year
ended 31 December 2021 are as follows:
The Group
The amounts of
Before adjustments ? adjustments ? After adjustments
??????
Proceeds from sale of goods and
rendering of services 219962740822 ? 1877357384 ? 221840098206
Payment for goods and services 145205421170 ? 1437251941 ? 146642673111
Payment to and for employees 17896262253 ? 11973211 ? 17908235464
Payment for acquisition of fixed
assets intangible assets and other
long-term assets 35669946105 ? 428132232 ? 36098078337
?
66?(d) After retrospective adjustments of the above accounting policy changes the
consolidated balance sheet as at 1 January 2021 are as follows:
? The Group
Assets ?
??
Current assets: ?
Cash at bank and on hand 73694296095
Financial assets held for trading 4367201833
Bills receivable 215994373
Accounts receivable 22969140355
Prepayments 1119595984
Other receivables 658114833
Inventories 17919205338
Contract assets 49897395
Assets held for sale 186892645
Other current assets 7848869252
??
Total current assets 129029208103
??
Non-current assets: ?
Long-term equity investments 3693170224
Investments in other equity instruments 533645423
Investment properties 1196168511
Fixed assets 224866586069
Construction in progress 42572986272
Intangible assets 11875926448
Goodwill 1400357242
Long-term deferred expenses 299634100
Deferred tax assets 205041088
Other non-current assets 8624970019
??
Total non-current assets 295268485396
??
??
Total assets 424297693499
???
67? The Group
Liabilities and shareholders’ equity ?
??
Current liabilities: ?
Short-term loans 8599569471
Bills payable 1231533895
Accounts payable 27164171682
Advance payments received 124040749
Contract liabilities 3440720535
Employee benefits payable 3758623797
Taxes payable 1077686869
Other payables 32867709024
Non-current liabilities due within one year 24500550121
Other current liabilities 2194716852
??
Total current liabilities 104959322995
??
Non-current liabilities: ?
Long-term loans 132452767135
Debentures payable 398971739
Long-term payables 2114175683
Deferred income 4246231468
Deferred tax liabilities 1427601154
Other non-current liabilities 5260001443
??
Total non-current liabilities 145899748622
????
Total liabilities 250859071617
????
Shareholders’ equity: ?
Share capital 34798398763
Other equity instruments 14146997427
Capital reserve 37435655934
Less: Treasury shares 1036298508
Other comprehensive income (22198072)
Surplus reserve 2444416669
Retained earnings 15545371823
??
Total equity attributable to shareholders of the Company 103312344036
??
Non-controlling interests 70126277846
??
Total shareholders’ equity 173438621882
????
Total liabilities and shareholders’ equity 424297693499
???
68IV. 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
7%5%
and construction tax ? period ?
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% (2021: 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.
69The subsidiaries that are entitled to preferential tax treatments are as follows:
Preferential
Company name rate ? Reason
????
Beijing BOE Optoelectronics Technology Co. Ltd. (BOE OT) 15% ? High-tech Enterprise
Chengdu BOE Optoelectronics Technology Co. Ltd. (Chengdu
Optoelectronics) 15% ? High-tech Enterprise
Hefei BOE Optoelectronics Technology Co. Ltd. (Hefei BOE) 15% ? High-tech Enterprise
Beijing BOE Display Technology Co. Ltd. (BOE Display) 15% ? High-tech Enterprise
Hefei Xinsheng Optoelectronics Technology Co. Ltd. (Hefei
Xinsheng) 15% ? High-tech Enterprise
Ordos Yuansheng Optoelectronics Co. Ltd. (Yuansheng
Optoelectronics) 15% ? High-tech Enterprise
Encouraged enterprise in
Chongqing BOE Optoelectronics Co. Ltd. (Chongqing BOE) 15% ? Western Regions
BOE (Hebei) Mobile Technology Co. Ltd. (BOE Hebei) 15% ? High-tech Enterprise
BOE Optical Science and technology Co. Ltd (Optical
Technology) 15% ? High-tech Enterprise
Beijing BOE CHATANI Electronics Co. Ltd. (Beijing CHATANI) 15% ? High-tech Enterprise
Hefei BOE Display Lighting Co. Ltd. (Hefei Display Lighting) 15% ? High-tech Enterprise
Chongqing BOE Display Lighting Co. Ltd. (Chongqing Display Encouraged enterprise in
Lighting) 15% ? Western Regions
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. (Chongqing Encouraged enterprise in
Smart Electronic) 15% ? Western Regions
Beijing BOE Health Technology Co. Ltd. (Health Technology) 15% ? High-tech Enterprise
Chongqing BOE Electronic Technology Co. Ltd. (Chongqing Encouraged enterprise in
Electronic Technology) 15% ? Western Regions
Wuhan BOE Optoelectronics Technology Co. Ltd. (Wuhan
BOE) 15% ? High-tech Enterprise
Nanjing BOE Display Technology Co. Ltd. (Nanjing
Technology) 15% ? High-tech Enterprise
Chengdu BOE Display Sci-tech Co. Ltd.. (Chengdu Display
Sci-tech) 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
Yunnan Invensight Optoelectronics Technology Co. Ltd.(Yunnan Invensight) 15% ? High-tech Enterprise
BOE Mled Technology Co. Ltd. (Mled Technology) 15% ? High-tech Enterprise
Hefei BOE Semiconductor Co. Ltd. (Hefei Semiconductor) 15% ? High-tech Enterprise
????
70V. Notes to the consolidated financial statements
1 Cash at bank and on hand
?2022?2021
Amount in RMB/RMB Amount in RMB/RMB
? original currency ? Exchange rate ? equivalents ? original currency ? Exchange rate ? equivalents
????????????
Cash on hand ? ? ? ? ? ? ? ? ? ? ?
RMB ? ? ? ? 796306 ? ? ? ? ? 336429
USD 1773 ? 6.9646 ? 12348 ? 1480 ? 6.3757 ? 9438
HKD 35650 ? 0.8933 ? 31846 ? 35673 ? 0.8176 ? 29166
JPY 106508 ? 0.0524 ? 5581 ? 528014 ? 0.0554 ? 29252
KRW 70909 ? 0.0055 ? 390 ? 70185 ? 0.0054 ? 379
Other foreign currencies ? ? ? ? 49796 ? ? ? ? ? 47311
????????????
Sub-total ? ? ? ? 896267 ? ? ? ? ? 451975
????????????
Bank deposits ? ? ? ? ? ? ? ? ? ? ?
RMB ? ? ? ? 43646054088 ? ? ? ? ? 51889193811
USD 2681806253 ? 6.9646 ? 18677707830 ? 3615879387 ? 6.3757 ? 23053762209
HKD 364050751 ? 0.8933 ? 325206536 ? 9520528 ? 0.8176 ? 7783984
JPY 10556434427 ? 0.0524 ? 553157164 ? 13848652635 ? 0.0554 ? 767215356
KRW 578139636 ? 0.0055 ? 3179768 ? 1094268704 ? 0.0054 ? 5909051
EUR 200208832 ? 7.4229 ? 1486130139 ? 135902777 ? 7.2197 ? 981177279
Other foreign currencies ? ? ? ? 78007216 ? ? ? ? ? 55392165
????????????
Sub-total ? ? ? ? 64769442741 ? ? ? ? ? 76760433855
????????????
Other monetary funds ? ? ? ? ? ? ? ? ? ? ?
RMB ? ? ? ? 3914979538 ? ? ? ? ? 3857498365
USD 13176444 ? 6.9646 ? 91768662 ? 49772132 ? 6.3757 ? 317332183
HKD 438830 ? 0.8933 ? 392007 ? 7 ? 0.8176 ? 6
JPY 435651794 ? 0.0524 ? 22828154 ? 922720289 ? 0.0554 ? 51118704
????????????
Sub-total ? ? ? ? 4029968361 ? ? ? ? ? 4225949258
????????????
Total ? ? ? ? 68800307369 ? ? ? ? ? 80986835088
????
Including: Total overseas deposits were equivalent to RMB 5780461058 (2021: RMB
7197634319).
As at 31 December 2022 other monetary funds included deposits with securities companies
by the Group amounting to RMB 2609817 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 164299257 was pledged
for issuance of bills payable and an equivalent to RMB 3863059287 was mainly deposits
in commercial banks as security.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.
712 Financial assets held for trading
31 December 31 December
Item 2022 ? 2021
????
Financial assets at fair value through profit or loss ? ? ?
- Structured deposit and wealth management
products 16931468153 ? 10028172853
- Investment in equity instruments 256525783 ? -
????
Total 17187993936 ? 10028172853
????
3 Bills receivable
(1) Classification of bills receivable
31 December 31 December
Item ? 2022 ? 2021
?????
Bank acceptance bills ? 211292061 ? 217734298
Commercial acceptance bills ? 500000 ? -
?????
Total ? 211792061 ? 217734298
????
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 2022 the Group does not have any pledged bills receivable (2021: RMB
8441900).
(3) Outstanding endorsed or discounted bills that have not matured at the end of the year
Item ? ?
Amount Amount not
derecognised as derecognised as
at 31 December at 31 December
??2022?2022
?????
Bank acceptance bills ? 289638315 ? 28239380
????
For the year ended 31 December 2022 there was no amount transferred to accounts
receivable from bills receivable due to non-performance of the issuers of the Group (2021:
Nil).
724 Accounts receivable
(1) The Group’s accounts receivable by customer type:
31 December 31 December
Item ? 2022 ? 2021
?????
Amounts due from related parties ? 1070848317 ? 88954909
Amounts due from other customers ? 27252679049 ? 35496227051
?????
Sub-total ? 28323527366 ? 35585181960
?????
Less: Provision for bad and doubtful debts ? 119879797 ? 81767140
?????
Total ? 28203647569 ? 35503414820
????
(2) The Group’s accounts receivable by currency type:
?2022?2021
Amount in Amount in
original RMB/RMB original RMB/RMB
? currency ? Exchange rate ? equivalents ? currency ? Exchange rate ? equivalents
????????????
RMB ? ? ? ? 12806183088 ? ? ? ? ? 12064153278
USD 2139614722 ? 6.9646 ? 14901560693 ? 3551733364 ? 6.3757 ? 22644786409
JPY 5046551 ? 0.0524 ? 264439 ? 1985544 ? 0.0554 ? 109999
Other foreign currencies ? ? ? ? 615519146 ? ? ? ? ? 876132274
????????????
Sub-total ? ? ? ? 28323527366 ? ? ? ? ? 35585181960
????????????
Less: Provision for bad and doubtful
debts ? ? ? ? 119879797 ? ? ? ? ? 81767140
????????????
Total ? ? ? ? 28203647569 ? ? ? ? ? 35503414820
????
(3) The ageing analysis of accounts receivable is as follows:
31 December 31 December
??2022?2021
?????
Within 1 year (inclusive) ? 27791874623 ? 35052439412
Over 1 year but within 2 years (inclusive) ? 232130123 ? 190180631
Over 2 years but within 3 years (inclusive) ? 151304998 ? 181687107
Over 3 years ? 148217622 ? 160874810
?????
Sub-total ? 28323527366 ? 35585181960
?????
Less: Provision for bad and doubtful debts ? 119879797 ? 81767140
?????
Total ? 28203647569 ? 35503414820
????
The ageing is counted starting from the date when accounts receivable are recognised.
73(4) Accounts receivable by provisioning method
? 31 December 2022
? Book value ? Provision for impairment ? ?
Percentage Percentage
Category Amount ? (%) ? Amount ? (%) ? Carrying amount
??????????
Individual assessment ? ? ? ? ? ? ? ? ?
- Customers with high credit risk 62016470 ? 0% ? 59921373 ? 97% ? 2095097
- Customers with low credit risk 1359564251 ? 5% ? - ? 0% ? 1359564251
??????????
Collective assessment ? ? ? ? ? ? ? ? ?
- Customers with moderate credit risk 26901946645 ? 95% ? 59958424 ? 0% ? 26841988221
??????????
Total 28323527366 ? 100% ? 119879797 ? 0% ? 28203647569
????
? 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
???
(a) Criteria for collective assessment in 2022 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 2022:
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
?2022?2021
????
Balance at the beginning of the year 81767140 ? 57863022
Charge during the year 77823874 ? 48438509
Recoveries during the year (27926578) ? (20188349)
Written-off during the year (14534442) ? (3474488)
Translation differences 2749803 ? (871554)
????
Balance at the end of the year 119879797 ? 81767140
????
74(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
12252460319 representing 43% of the total accounts receivable and no provision was
made for bad and doubtful debts after assessment.
5 Prepayments
(1) The Group’s prepayments by category:
31 December 31 December
??2022?2021
?????
Prepayment for inventory ? 261349159 ? 648790765
Prepayment for electricity water gas and
power ? 234247912 ? 290002465
Others ? 94167609 ? 174086777
?????
Total ? 589764680 ? 1112880007
????
(2) The ageing analysis of prepayments is as follows:
? 31 December 2022 ? 31 December 2021
Ageing Amount ? Percentage (%) ? Amount ? Percentage (%)
????????
Within 1 year (inclusive) 471778052 ? 80% ? 1088149020 ? 98%
Over 1 year but within 2 years (inclusive) 112700267 ? 19% ? 9828654 ? 1%
Over 2 years but within 3 years (inclusive) 2959783 ? 1% ? 2531759 ? 0%
Over 3 years 2326578 ? 0% ? 12370574 ? 1%
????????
Total 589764680 ? 100% ? 1112880007 ? 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
256769053 representing 44% of the total prepayments.
6 Other receivables
31 December 31 December
? Note 2022 ? 2021
?????
Dividends receivable ? - ? 2414503
Others (1) 975809236 ? 1920413875
?????
Total ? 975809236 ? 1922828378
????
75(1) Others
(a) The Group’s other receivables by customer type:
31 December 31 December
Customer type ? 2022 ? 2021
?????
Amounts due from related parties ? 16588534 ? 1901777
Amounts due from other customers ? 969833087 ? 1927555914
?????
Sub-total ? 986421621 ? 1929457691
?????
Less: Provision for bad and doubtful
debts ? 10612385 ? 9043816
?????
Total ? 975809236 ? 1920413875
????
(b) The Group’s other receivables by currency type:
? 31 December 2022 ? 31 December 2021
Amount in Amount in
original RMB/RMB original RMB/RMB
? currency ? Exchange rate ? equivalents ? currency ? Exchange rate ? equivalents
????????????
RMB ? ? ? ? 480934242 ? ? ? ? ? 808428477
USD 69194294 ? 6.9646 ? 481910580 ? 170390641 ? 6.3757 ? 1086359610
JPY 316069 ? 0.0524 ? 16562 ? - ? - ? -
Other foreign currencies ? ? ? ? 23560237 ? ? ? ? ? 34669604
????????????
Sub-total ? ? ? ? 986421621 ? ? ? ? ? 1929457691
????????????
Less: Provision for bad and
doubtful debts ? ? ? ? 10612385 ? ? ? ? ? 9043816
????????????
Total ? ? ? ? 975809236 ? ? ? ? ? 1920413875
????
(c) The ageing analysis of the Group’s other receivables is as follows:
31 December 31 December
??2022?2021
?????
Within 1 year (inclusive) ? 367646687 ? 1637506264
Over 1 year but within 2 years
(inclusive) ? 362777830 ? 21232566
Over 2 years but within 3 years
(inclusive) ? 14948621 ? 24183841
Over 3 years ? 241048483 ? 246535020
?????
Sub-total ? 986421621 ? 1929457691
?????
Less: Provision for bad and doubtful
debts ? 10612385 ? 9043816
?????
Total ? 975809236 ? 1920413875
????
The ageing is counted starting from the date when other receivables are recognised.
76(d) Other receivables by provisioning method
? 31 December 2022
? Book value ? Provision for impairment ? ?
Percentag Percentag Carrying
Category Amount ? e (%) ? Amount ? e (%) ? amount
??????????
Individual assessment 10612385 ? 1% ? 10612385 ? 100% ? -
??????????
Collective assessment 975809236 ? 99% ? - ? 0% ? 975809236
??????????
Total 986421621 ? 100% ? 10612385 ? 1% ? 975809236
????
? 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
???
(e) Movements of provisions for bad and doubtful debts
31 December 31 December
??2022?2021
?????
Balance at the beginning of the year ? 9043816 ? 9044012
Charge during the year ? 1679930 ? 275661
Recoveries during the year ? - ? (115952)
Written-off during the year ? (111361) ? (159905)
?????
Balance at the end of the year ? 10612385 ? 9043816
????
(f) The Group’s other receivables categorised by nature
31 December 31 December
Nature ? 2022 ? 2021
?????
VAT refunds and export tax rebate ? 512851 ? 253311
Amounts due from equity transfer ? 200000000 ? 200000000
Surety and deposits Note 598972862 ? 1518208550
Others ? 186935908 ? 210995830
?????
Sub-total ? 986421621 ? 1929457691
?????
Less: Provision for bad and doubtful
debts ? 10612385 ? 9043816
?????
Total ? 975809236 ? 1920413875
????
77Note: As at 31 December 2022 an equivalent to RMB 436628186 (2021: 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
656304152 most of which were surety and amounts due from equity transfer. No
provision is made for bad and doubtful debts after assessment.
7 Inventories
(1) The Group’s inventories by category:
? 31 December 2022 ? 31 December 2021
Provision for Provision for
impairment of impairment of
inventories/Provi inventories/Provi
sion for sion for
impairment of 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 11178326632 ? 2890923826 ? 8287402806 ? 12029879462 ? 2083190076 ? 9946689386
Work in progress 4879573518 ? 1316529598 ? 3563043920 ? 4080209516 ? 732973017 ? 3347236499
Finished goods 14699012100 ? 4072862311 ? 10626149789 ? 17108598457 ? 2795564803 ? 14313033654
Consumables 147843921 ? - ? 147843921 ? 130472966 ? - ? 130472966
Costs to fulfil a contract with a customer 163373789 ? - ? 163373789 ? 67728931 ? - ? 67728931
????????????
Total 31068129960 ? 8280315735 ? 22787814225 ? 33416889332 ? 5611727896 ? 27805161436
????
As at 31 December 2022 there was no amount of capitalised borrowing cost in the Group’s
closing balance of inventories (2021: Nil).As at 31 December 2022 the Group had no inventory used as collateral (2021: Nil).
(2) An analysis of provision for impairment of inventories of the Group is as follows:
Balance at the
beginning of the Charge during the Decrease during Balance at the
? year ? year ? the year ? end of the year
????????
Raw materials 2083190076 ? 1535322358 ? (727588608) ? 2890923826
Work in progress 732973017 ? 1103212064 ? (519655483) ? 1316529598
Finished goods 2795564803 ? 8482398827 ? (7205101319) ? 4072862311
????????
Total 5611727896 ? 11120933249 ? (8452345410) ? 8280315735
????
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.
78(2) Significant changes in the contract assets during the year:
Significant changes in the contract assets of the Group are as follows:
??2022
? ? RMB
???
Balance at the beginning of the year ? 75698324
???
Transfers from contract assets recognised at the beginning of the
year to receivables ? (65331121)
Increase in contract assets resulting from no unconditional right
obtained ? 61269258
???
Balance at the end of the year ? 71636461
???
(3) Movements of provision for contract assets during the year:
?2022?2021
????
Balance at the beginning of the year - ? 207800
Decrease from disposal of subsidiaries - ? (207800)
????
Balance at the end of the year - ? -
???
9 Other current assets
31 December 31 December
??2022?2021
?????
VAT on tax credits ? 2556625457 ? 2643490711
Prepaid income taxes ? 331652233 ? 20739659
Input tax to be verified or deducted ? 329605466 ? 575209816
Costs receivables for recovering products
from a customer ? 108097353 ? 126447496
Others ? 68056410 ? 213032028
?????
Total ? 3394036919 ? 3578919710
????
7910 Long-term equity investments
(1) The Group’s long-term equity investments by category:
?2022?2021
????
Investments in joint ventures 392291560 ? -
Investments in associates 13086523900 ? 7066228472
????
Sub-total 13478815460 ? 7066228472
????
Less: Provision for impairment 1056936609 ? 1025280155
????
Total 12421878851 ? 6040948317
????
80(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 (loss) / 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
??????????????????
Joint venture ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
Chongqing Maite Optoelectronics Co. Ltd. - ? 400000000 ? - ? (7708440) ? - ? - ? - ? - ? 392291560
Sub-total - ? 400000000 ? - ? (7708440) ? - ? - ? - ? - ? 392291560
??????????????????
Associates ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
Erdos BOE Energy Investment Co. Ltd. 1409666833 ? 405200000 ? - ? (2983503) ? - ? - ? - ? - ? 1811883330
Beijing Xindongneng Investment Fund
(Limited Partnership) 2088917867 ? - ? (129798594) ? 241130621 ? (61062079) ? - ? (104317491) ? - ? 2034870324
Beijing Innovation Industry Investment Co.Ltd. 207564573 - - 15651980 - - - - 223216553
Beijing Electric Control Industry Investment
Co. Ltd. 231777557 21234700 - (2556780) 7694430 - - - 258149907
BOE Art Cloud Technology Co. Ltd. 286976389 129500000 (130381715) 10026871 - 134476619 - - 430598164
Cnoga Medical Co. Ltd. 253501065 - - - - - - 23414968 276916033
Tianjin Xianzhilian Investment Centre (Limited
Partnership) 968341880 ? 234000000 ? - ? 184737344 ? - ? - ? - ? - ? 1387079224
BioChain (Beijing) Science & Technology Inc. 339845254 - - (5751469) - - - - 334093785
Beijing YanDong MicroElectronic Co. Ltd. 1009985276 ? - ? - ? 34518797 ? - ? 126743478 ? - ? - ? 1171247551
SES Imagotag SA Co. Ltd. - ? 4871837182 ? - ? 11536838 ? - ? - ? - ? - ? 4883374020
Others 269651778 ? 46917149 ? (87070668) ? 49501421 ? 63317 ? 14310853 ? (18731712) ? 452871 ? 275095009
??????????????????
Sub-total 7066228472 ? 5708689031 ? (347250977) ? 535812120 ? (53304332) ? 275530950 ? (123049203) ? 23867839 ? 13086523900
??????????????????
Total 7066228472 6108689031 (347250977) 528103680 (53304332) 275530950 (123049203) 23867839 13478815460
Less: Provision for impairment 1025280155 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 1056936609
??????????????????
Total 6040948317 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 12421878851
?
81As at 31 December 2022 Hefei Xin Jing Yuan Electronic Materials Co. Ltd. still suffered 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 2022 the accumulated
unrecognised investment losses were RMB 14922087 (2021: RMB 20352876).As at 31 December 2022 Beijing Infi-Hailin Venture Investment Co. Ltd. made a profit and
made up for the unrecognised investment losses of RMB 1152818 in the prior year and
recognised investment income amounting to RMB 2073333 during the year.
11 Investments in other equity instruments
31 December 31 December
Items 2022 ? 2021
????
Listed equity instruments investment ? ? ?
- Beijing Electronic City High Tech Group Co. Ltd. 53614432 ? 56638836
- Bank of Chongqing Co. Ltd. 91600150 ? 91875688
- New Century Medical Holding Co. Ltd. 9098008 ? 19810485
????
Unlisted equity instruments investment ? ? ?
- Danhua Capital L. P. 34823000 ? 31878500
- Danhua Capital II L.P. 69646002 ? 63757002
- Kateeva Inc. 83192147 ? 76157736
- Nanosys INC 21591641 ? 47817750
- Baebies INC 30600273 ? 28012830
- Illumina Fund IL.P. 31079577 ? 25607407
- Horizon Robotics Inc. 35616005 ? 31722880
- Others 22199071 ? 45809032
????
Total 483060306 ? 519088146
????
82(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 income to retained income to retained
Item income ? year ? (“-” for losses) ? earnings ? earnings
??????????
Listed equity instruments investment ? ? ? ? ? ? ? ? ?
With the intention
of establishing or
maintaining a
long-term
- Beijing Electronic City High Tech Group investment for
Co. Ltd. strategic reasons ? 206209 ? (36545996) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Bank of Chongqing Co. Ltd. strategic reasons ? 9918634 ? (28484225) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- New Century Medical Holding Co. Ltd. strategic reasons ? - ? (131750842) ? - ? Not applicable
??????????
Unlisted equity instruments investment ? ? ? ? ? ? ? ? ?
With the intention
of establishing or
maintaining a
long-term
investment for
- Danhua Capital L. P. strategic reasons ? 5045925 ? 296625 ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Danhua Capital II L.P. strategic reasons ? 20183700 ? 1998251 ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Kateeva Inc. strategic reasons ? - ? 329681 ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Nanosys INC strategic reasons ? - ? (28757359) ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Baebies INC strategic reasons ? - ? 1476718 ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Illumina Fund IL.P. strategic reasons ? - ? 1110906 ? - ? Not applicable
With the intention
of establishing or
maintaining a
long-term
investment for
- Horizon Robotics Inc. strategic reasons ? - ? 3661505 ? - ? Not applicable
With the intention
of establishing or
maintaining a Transfer out due
long-term to bankruptcy
investment for liquidation
- Others strategic reasons ? - ? (38958805) ? (10091839) ? derecognition
??????????
Total ? ? 35354468 ? (255623541) ? (10091839) ? ?
????
8312 Other non-current financial assets
Item 2022 ? 2021
????
Financial assets at fair value through profit or loss 2022967681 ? 606895447
Including: Investments in equity instruments 2022967681 ? 606895447
????
Total 2022967681 ? 606895447
??
13 Investment properties
? ? Land use rights ? Buildings ? Total
???????
Cost ? ? ? ? ? ?
Balance at the beginning of the year ? 687434677 ? 1022831969 ? 1710266646
Additions during the year ? - ? 5461739 ? 5461739
???????
Balance at the end of the year ? 687434677 ? 1028293708 ? 1715728385
???????
Less: Accumulated depreciation or
amortisation ? ? ? ? ? ?
Balance at the beginning of the year ? 168017805 ? 383883440 ? 551901245
Additions during the year ? 13622701 ? 28179301 ? 41802002
???????
Balance at the end of the year ? 181640506 ? 412062741 ? 593703247
???????
???????
Carrying amounts ? ? ? ? ? ?
At the end of the year ? 505794171 ? 616230967 ? 1122025138
???????
At the beginning of the year ? 519416872 ? 638948529 ? 1158365401
????
8414 Fixed assets
(1) Analysis of the Group’s fixed assets are as follows:
Item Plant & buildings ? Equipment ? Others ? Total
????????
Cost ? ? ? ? ? ? ?
Balance at the beginning of the year 65746184870 ? 289073320848 ? 10027118299 ? 364846624017
Additions during the year ? ? ? ? ? ? ?
- Purchases 22873906 ? 576061450 ? 1874710266 ? 2473645622
- Transfers from construction in
progress 195460071 ? 9633715949 ? 732046393 ? 10561222413
- Written-down against government
interest discounts (16355538) ? (166721924) ? (12987) ? (183090449)
Decrease due to disposal of subsidiaries (61688333) ? (185865467) ? (88382014) ? (335935814)
Transfers to construction in progress - ? (1161980085) ? (29857355) ? (1191837440)
Disposals or written-offs during the year (176295) ? (446815683) ? (169873534) ? (616865512)
Translation differences 4131352 ? 29007311 ? 6239955 ? 39378618
????????
Balance at the end of the year 65890430033 ? 297350722399 ? 12351989023 ? 375593141455
????????
Less: Accumulated depreciation ? ? ? ? ? ? ?
Balance at the beginning of the year 7908069483 ? 122199288667 ? 5704812685 ? 135812170835
Charge during the year 2072464102 ? 29207688566 ? 1947737403 ? 33227890071
Decrease due to disposal of subsidiaries (30181955) ? (137710504) ? (23163432) ? (191055891)
Transfers to construction in progress - ? (730517943) ? (21961743) ? (752479686)
Disposals or written-offs during the year (13666) ? (374611961) ? (69200542) ? (443826169)
Translation differences 391129 ? 15781865 ? 1425638 ? 17598632
????????
Balance at the end of the year 9950729093 ? 150179918690 ? 7539650009 ? 167670297792
????????
Less: Provision for impairment ? ? ? ? ? ? ?
Balance at the beginning of the year 34480 ? 1704957933 ? 188093885 ? 1893086298
Charge during the year - ? 132578826 ? 10492666 ? 143071492
Transfers to construction in progress - ? (19908202) ? (165882) ? (20074084)
Disposals or written-offs during the year - ? (77467003) ? (2823470) ? (80290473)
????????
Balance at the end of the year 34480 ? 1740161554 ? 195597199 ? 1935793233
????????
????????
Carrying amounts ? ? ? ? ? ? ?
At the end of the year 55939666460 ? 145430642155 ? 4616741815 ? 205987050430
????????
At the beginning of the year 57838080907 ? 165169074248 ? 4134211729 ? 227141366884
????
In 2022 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 provisions for
impairment of RMB 143071492 (2021: RMB 675831912) based on the evaluation results.
(2) Fixed assets pending certificates of ownership
As at 31 December 2022 fixed assets pending certificates of ownership totalled RMB
7110462456 (31 December 2021: RMB 7892064184) and certificates of ownership is still
being processed.
8515 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
? 31 December 2022 ? 31 December 2021
Provision for Provision for
Item Book value ? impairment ? Carrying amount ? Book value ? impairment ? Carrying amount
????????????
The 6th generation AMOLED project -
Chongqing 31013623277 ? - ? 31013623277 ? 24774517248 ? - ? 24774517248
Others 12446773478 ? 74262087 ? 12372511391 ? 7369688455 ? 44493824 ? 7325194631
????????????
Total 43460396755 ? 74262087 ? 43386134668 ? 32144205703 ? 44493824 ? 32099711879
????
In 2022 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 29768263 based on the evaluation results.
(2) Movements of major construction projects in progress during the year
Percentage Accumulated Interest rate
Balance at the of actual capitalised Interest for
beginning of Additions Transfers to Balance at the cost to interest at the capitalised capitalisation Sources of
Item Budget ? the year ? during the year ? fixed assets ? end of the year ? budget (%) ? end of the year ? in 2022 ? in 2022 (%) ? funding
????????????????????
The 6th generation Self-raised
AMOLED project - funds and
Chongqing 46500000000 ? 24774517248 ? 6243115489 ? (4009460) ? 31013623277 ? 70.04% ? 624014961 ? 438224219 ? 4.24% ? borrowings
????
8616 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 5539522787 ? 6978992728 ? 1676849060 ? 1549958675 ? 15745323250
Additions during the year ? ? ? ? ? ? ? ? ?
- Purchases 256914399 ? 8532419 ? 121172137 ? - ? 386618955
- Transfers from construction in
progress - ? - ? 114068215 ? 112297 ? 114180512
Decrease due to disposal of
subsidiaries - ? (1732355021) ? (17486779) ? (846913855) ? (2596755655)
Disposals during the year - ? - ? (548585) ? - ? (548585)
Translation differences - ? (9139455) ? 947362 ? 2450615 ? (5741478)
Written-down against interest
discount - ? (771120) ? (120528) ? (771120) ? (1662768)
??????????
Balance at the end of the year 5796437186 ? 5245259551 ? 1894880882 ? 704836612 ? 13641414231
??????????
Less: Accumulated amortisation ? ? ? ? ? ? ? ? ?
Balance at the beginning of the year 524719007 ? 2613841165 ? 999888044 ? 397376628 ? 4535824844
Charge during the year 135495338 ? 602728282 ? 198089822 ? 85027074 ? 1021340516
Decrease due to disposal of
subsidiaries - ? (652040647) ? (5447593) ? (204670848) ? (862159088)
Disposals during the year - ? - ? (490789) ? - ? (490789)
Translation differences - ? (2483639) ? 168335 ? 886909 ? (1428395)
??????????
Balance at the end of the year 660214345 ? 2562045161 ? 1192207819 ? 278619763 ? 4693087088
??????????
??????????
Carrying amount at the end of the
year 5136222841 ? 2683214390 ? 702673063 ? 426216849 ? 8948327143
??????????
Carrying amount at the beginning of
the year 5014803780 ? 4365151563 ? 676961016 ? 1152582047 ? 11209498406
????
8717 Goodwill
(1) Changes in goodwill
Balance at the Decrease due to
beginning of the Additions during disposal of Balance at the
Name of investee ? year ? the year ? subsidiaries ? end 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 BOE Display Sci-tech Co.Ltd.. (Chengdu Display Sci-tech) ? 537038971 ? - ? - ? 537038971
Nanjing BOE Display Technology Co.Ltd. ? 155714415 ? - ? - ? 155714415
Hefei Jiangcheng Technology Co. Ltd. ? 9391961 ? - ? (9391961) ? -
?????????
Sub-total ? 1610939732 ? - ? (715798782) ? 895140950
?????????
Provision for impairment ? ? ? ? ? ? ? ?
Beijing BOE Optoelectronics
Technology Co. Ltd. ? (4423876) ? - ? - ? (4423876)
BOE Healthcare Investment &
Management Co. Ltd. ? (82137669) ? - ? - ? (82137669)
SES Imagotag SA Co. Ltd. ? (394371200) ? - ? 394371200 ? -
Chengdu BOE Display Sci-tech Co.Ltd.. (Chengdu Display Sci-tech) ? - ? (147755754) ? - ? (147755754)
?????????
Sub-total ? (480932745) ? (147755754) ? 394371200 ? (234317299)
?????????
Carrying amount ? 1130006987 ? (147755754) ? (321427582) ? 660823651
????
(2) Provision for impairment of goodwill
The recoverable amount of Beijing Yinghe Century Co. Ltd. Suzhou K-Tronics BOE
Healthcare Investment & Management Co. Ltd. (“Health Investment”) Chengdu Display Sci-
tech and Nanjing BOE Display Technology Co. Ltd. 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.As at 31 December 2022 as the present value of future cash flows of the asset group to
which Chengdu Display Sci-tech's goodwill belongs was lower than the carrying amount of
the asset group the Group made an impairment provision of RMB 147755754 for the
relevant goodwill.
8818 Long-term deferred expenses
Balance at Additions during Decrease during Balance at
? 31December 2021 ? the year ? the year ? 31December 2022
????????
Payment for public facilities construction and
use 51962118 ? - ? (10800827) ? 41161291
Leasehold improvements 10325942 ? 16912468 ? (7807977) ? 19430433
Others 574242442 ? 61375716 ? (139268505) ? 496349653
????????
Total 636530502 ? 78288184 ? (157877309) ? 556941377
????
19 Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets and liabilities
?2022?2021
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 151264910 ? 31020460 ? 113867486 ? 24884958
Changes in fair value of investments in
other equity instruments 142547604 ? 21382141 ? 139523200 ? 20928480
Depreciation of fixed assets 239415255 ? 37326236 ? 201462125 ? 34642083
Assessed value added by investing real
estate in subsidiaries 119895400 ? 29973850 ? 125449252 ? 31362313
Accumulated losses 459130 ? 75757 ? 422990806 ? 118064555
Government grant 143385420 ? 21507813 ? 209807147 ? 31471072
Others 59695684 ? 9274649 ? 306215006 ? 19010893
????????
Sub-total 856663403 ? 150560906 ? 1519315022 ? 280364354
????????
Amount offset ? ? (80310481) ? ? ? (90028830)
????????
Balance after offsetting ? ? 70250425 ? ? ? 190335524
????????
Deferred tax liabilities: ? ? ? ? ? ? ?
Revaluation due to business combinations
involving entities not under common
control (882129374) ? (217980404) ? (2197597331) ? (584383821)
Depreciation of fixed assets (7266110223) ? (1094970944) ? (6388163232) ? (984779332)
Long-term equity investments (120141687) ? (18021253) ? (120141687) ? (18021253)
Others (151491002) ? (23744713) ? (167106175) ? (28467297)
????????
Sub-total (8419872286) ? (1354717314) ? (8873008425) ? (1615651703)
????????
Amount offset ? ? 80310481 ? ? ? 90028830
????????
Balance after offsetting ? ? (1274406833) ? ? ? (1525622873)
????
89(2) Details of unrecognised deferred tax assets
?2022?2021
????
Deductible temporary differences 22749630064 ? 24215956667
Deductible tax losses 44677908573 ? 19433679291
????
Total 67427538637 ? 43649635958
????
As at 31 December 2022 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 2022 ? 2021
?????
2022?-?316585394
2023?280957810?290518573
2024?451137106?458962394
2025?1253378510?1276919825
2026?1473908686?1785437184
2027?3146172377?14979073
2028?2279355553?2221266958
2029?5008814339?5296070440
2030?4196348029?4368141751
2031?2502424694?2406109565
2032?23569766818?-?
Others (a) 515644651 ? 998688134
?????
Total ? 44677908573 ? 19433679291
????
(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.
9020 Other non-current assets
31 December 31 December
??2022?2021
?????
Surety ? 1338834402 ? 1339517936
Prepayments for construction ? 153690890 ? 224400336
Prepayment for fixed assets ? 148834349 ? 572510455
VAT on tax credits ? - ? 3424055815
Deferred VAT for imported equipment ? 2696796 ? 1407330930
Others ? 311464947 ? 509612011
?????
Total ? 1955521384 ? 7477427483
????
21 Short-term loans
? 31 December 2022
Credited/
? ? ? ? ? ? collateralised
Amount in original RMB/RMB guaranteed/
? currency ? Exchange rate ? equivalents ? pledged
????????
Bank loans ? ? ? ? ? ? ?
- RMB ? ? ? ? 901622500 ? Guaranteed
- RMB ? ? ? ? 30006237 ? Credited
????????
Sub-total ? ? ? ? 931628737 ? ?
????????
Foreign currency bank loans ? ? ? ? ? ? ?
- USD 128585504 ? 6.9646 ? 895546601 ? Credited
- JPY 205792620 ? 0.0524 ? 10783533 ? Credited
- HKD 600000000 ? 0.8933 ? 535980000 ? Credited
????????
Sub-total ? ? ? ? 1442310134 ? ?
????????
????????
Total ? ? ? ? 2373938871 ? ?
????
91? 31 December 2021
Credited/
? ? ? ? ? ? collateralised
Amount in original RMB/RMB guaranteed/
? currency ? Exchange rate ? equivalents ? pledged
????????
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 ? ?
???
As at 31 December 2022 no short-term loan was past due (2021: Nil).
22 Bills payable
31 December 31 December
?2022?2021
????
Bank acceptance bills 847418525 ? 663001350
Commercial acceptance bills 22803013 ? 164956681
????
Total 870221538 ? 827958031
????
There is no due but unpaid bill payable at the end of the year. The bills above are all due
within one year.
9223 Accounts payable
(1) The Group’s accounts payable by category are as follows:
31 December 31 December
?2022?2021
????
Payables to related parties 179047266 ? 142557107
Payables to third parties 29655673198 ? 32313273587
????
Total 29834720464 ? 32455830694
????
(2) The Group’s accounts payable by currency are as follows:
?2022?2021
Amount in RMB/RMB Amount in RMB/RMB
? original currency ? Exchange rate ? equivalents ? original currency ? Exchange rate ? equivalents
????????????
- RMB ? ? ? ? 21162560832 ? ? ? ? ? 23743766250
- USD 1146041405 ? 6.9646 ? 7981719969 ? 1093846298 ? 6.3757 ? 6974035842
- JPY 9299005433 ? 0.0524 ? 487267885 ? 10050541520 ? 0.0554 ? 556800000
- Other foreign currencies ? ? ? ? 203171778 ? ? ? ? ? 1181228602
????????????
Total ? ? ? ? 29834720464 ? ? ? ? ? 32455830694
????
As at 31 December 2022 the Group had no significant accounts payable with ageing of more
than one year.
24 Advance payments received
31 December 31 December
Item 2022 ? 2021
????
Advances from related parties 188623 ? 961806
Advances from third parties 79660354 ? 145178278
????
Total 79848977 ? 146140084
????
9325 Contract liabilities
31 December 31 December
Item 2022 ? 2021
????
Sale of goods 2411717792 ? 3765081554
???
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:
?2022
? RMB
??
Balance at the beginning of the year 3765081554
??
Revenue recognised that was included in the contract liability balance at
the beginning of year (3578825023)
Increase of contract liabilities due to cash received at the end of the year 2225461261
??
Balance at the end of the year 2411717792
???
9426 Employee benefits payable
(1) Employee benefits payable:
Balance at
Balance at Accrued during Decrease during 31 December
? Note 1 January 2022 ? the year ? the year ? 2022
?????????
Short-term employee benefits (2) 5098605495 ? 16306120923 ? (18748357070) ? 2656369348
Post-employment benefits ? ? ? ? ? ? ? ?
- defined contribution plans (3) 34235855 ? 1643219063 ? (1619403086) ? 58051832
Termination benefits ? 313887 ? 125276407 ? (21478651) ? 104111643
?????????
Total ? 5133155237 ? 18074616393 ? (20389238807) ? 2818532823
????
Balance at
Balance at Accrued during Decrease during 31 December
? Note 1 January 2021 ? the year ? the year ? 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
???
(2) Short-term employee benefits
Balance at
Balance at Accrued during Decrease during 31 December
? 1 January 2022 ? the year ? the year ? 2022
????????
Salaries bonuses allowances 4304276089 ? 12995283767 ? (15610071500) ? 1689488356
Staff welfare - ? 1212939702 ? (1212939702) ? -
Social insurance 43095684 ? 780825248 ? (778894329) ? 45026603
Medical insurance 38317039 ? 720094785 ? (718045022) ? 40366802
Work-related injury insurance 2583340 ? 44668965 ? (44821987) ? 2430318
Maternity insurance 2195305 ? 16061498 ? (16027320) ? 2229483
Housing fund 33089973 ? 946098096 ? (949389930) ? 29798139
Labour union fee staff and workers’
education fee 697018542 ? 370534929 ? (196078722) ? 871474749
Staff bonus and welfare fund 20553209 ? - ? - ? 20553209
Other short-term employee benefits 571998 ? 439181 ? (982887) ? 28292
????????
Total 5098605495 ? 16306120923 ? (18748357070) ? 2656369348
????
95Balance at
Balance at Accrued during Decrease during 31 December
? 1 January 2021 ? the year ? the year ? 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
???
(3) Post-employment benefits - defined contribution plans
Balance at
Balance at Accrued during Decrease during 31 December
? 1 January 2022 ? the year ? the year ? 2022
????????
Basic pension insurance 30284940 ? 1408163207 ? (1401435524) ? 37012623
Unemployment insurance 906583 ? 45871870 ? (45457632) ? 1320821
Annuity 3044332 ? 189183986 ? (172509930) ? 19718388
????????
Total 34235855 ? 1643219063 ? (1619403086) ? 58051832
????
Balance at
Balance at Accrued during Decrease during 31 December
? 1 January 2021 ? the year ? the year ? 2021
????????
Basic pension insurance 19052829 ? 1055978182 ? (1044746071) ? 30284940
Unemployment insurance 1110934 ? 38192020 ? (38396371) ? 906583
Annuity 1464270 ? 48057354 ? (46477292) ? 3044332
????????
Total 21628033 ? 1142227556 ? (1129619734) ? 34235855
???
9627 Taxes payable
?2022?2021
????
Value-added tax 142337422 ? 101448944
Corporate income tax 287859236 ? 1266575648
Individual income tax 48228934 ? 58763365
City construction tax 428525949 ? 383455432
Education surcharges and local education
surcharges 306515854 ? 274382851
Others 117933793 ? 115623065
????
Total 1331401188 ? 2200249305
????
28 Other payables
31 December 31 December
? Note 2022 ? 2021
?????
Interest payable ? 151200 ? 126701
Dividends payable ? 6410514 ? 6561972
Others (1) 19625661555 ? 23828686269
?????
Total ? 19632223269 ? 23835374942
????
97(1) Others
(a) The Group’s other payables by category are as follows:
31 December 31 December
? Note 2022 ? 2021
?????
Projects and equipment ? 13185841311 ? 16494274603
Fund transaction (Note) ? 3130038067 ? 3077116568
Deferred VAT for imported
equipment ? 196440706 ? 927825520
Repurchase obligation of restricted
shares V.39 753440228 ? 835215390
Accrued water and electricity charges
and freight ? 407770818 ? 348955956
Security and deposits ? 505702125 ? 537788828
External agency fee ? 172851477 ? 193251964
Others ? 1273576823 ? 1414257440
?????
Total ? 19625661555 ? 23828686269
????
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 2022 are amounts and
interests due to original controlling shareholders of Nanjing Display Technology
and Chengdu Display Sci-tech acquired in 2020 with interest rates of 2.175%
and 0%.(b) The Group’s other payables by currency are as follows:
? 31 December 2022 ? 31 December 2021
Amount in Amount in
original RMB/RMB original RMB/RMB
? currency ? Exchange rate ? equivalents ? currency ? Exchange rate ? equivalents
????????????
RMB ? ? ? ? 13336886237 ? ? ? ? ? 16157489471
USD 736000871 ? 6.9646 ? 5125951666 ? 857826112 ? 6.3757 ? 5469241942
JPY 18492932844 ? 0.0524 ? 969029681 ? 38321236336 ? 0.0554 ? 2122996493
Other foreign currencies ? ? ? ? 193793971 ? ? ? ? ? 78958363
????????????
Total ? ? ? ? 19625661555 ? ? ? ? ? 23828686269
????
9829 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 2022
Credited/
? ? ? ? ? ? ? collateralised
Amount in RMB/RMB guaranteed/
? Note original currency ? Exchange rate ? equivalents ? pledged
Bank loans ? ? ? ? ? ? ? ?
- RMB ? ? ? ? ? 117008022 ? Pledged
- RMB ? ? ? ? ? 11356508048 ? Collateralised
- RMB ? ? ? ? ? 94144290 ? Guaranteed
- RMB ? ? ? ? ? 5528984741 ? Credited
- USD ? 694159756 ? 6.9646 ? 4834545037 ? Collateralised
?????????
Sub-total ? ? ? ? ? 21931190138 ? ?
?????????
Long-term payables V.33 ? ? ? ? 143117840 ? ?
Lease liabilities V.60 ? ? ? ? 118302766 ? ?
Contribution of non-controlling
interests with redemption
provisions V.35 ? ? ? ? 511140000 ? ?
?????????
Total ? ? ? ? ? 22703750744 ? ?
????
? ? 31 December 2021
Credited/
? ? ? ? ? ? ? collateralised
Amount in original RMB/RMB guaranteed/
? Note currency ? Exchange rate ? 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.33 ? ? ? ? 520546343 ? ?
Lease liabilities V.60 ? ? ? ? 92788055 ? ?
Contribution of non-controlling
interests with redemption
provisions V.35 ? ? ? ? 353772859 ? ?
?????????
Total ? ? ? ? ? 28874958714 ? ?
???
9930 Other current liabilities
31 December 31 December
Item ? 2022 ? 2021
?????
Warranty provisions ? 3368859501 ? 3595808261
Refund liability ? 101672253 ? 141997964
Pending output VAT ? 139462782 ? 216565073
Others ? 3973137 ? 97161211
?????
Total ? 3613967673 ? 4051532509
???
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.
31 Long-term loans
? ? 31 December 2022
Credited/
? ? ? ? ? ? ? collateralised
Amount in original RMB/RMB guaranteed/
? Note currency ? Exchange rate ? equivalents ? pledged
Bank loans ? ? ? ? ? ? ? ?
- RMB ? ? ? ? ? 1058900427 ? Pledged
- RMB ? ? ? ? ? 49363519760 ? Collateralised
- RMB ? ? ? ? ? 4326076807 ? Guaranteed
- RMB ? ? ? ? ? 58386326488 ? Credited
- USD ? 4586027388 ? 6.9646 ? 31939846346 ? Collateralised
Less: Long-term loans due within one
year V.29 ? ? ? ? 21931190138 ? ?
?????????
Total ? ? ? ? ? 123143479690 ? ?
????
100? ? 31 December 2021
Credited/
? ? ? ? ? ? ? collateralised
Amount in original RMB/RMB guaranteed/
? Note currency ? Exchange rate ? 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.29 ? ? ? ? 27907851457 ? ?
?????????
Total ? ? ? ? ? 116078666587 ? ?
???
32 Debentures payable
(1) Debentures payable
31 December 31 December
Item 2022 ? 2021
????
Debentures payable - ? 359586437
Less: Debentures payable due within one year - ? -
????
Total - ? 359586437
????
101(2) The movements of debenture payable:
Amortisatio
Balance at Increase n of Decrease due Balance at
Maturity Issuance the beginning during the Interest at discounts or to disposal of Translation the end of the
Debenture Face value ? Issuance date ? period ? amount ? of the year ? year ? face value ? premium ? subsidiaries ? differences ? year
??????????????????????
EUR EUR
Euro PP 10000000 ? 2016.12.29 ? 7 years ? 10000000 ? 71955154 ? - ? 2268020 ? 95736 ? (76355057) ? 2036147 ? -
EUR EUR
Euro PP 30000000 ? 2017.03.29 ? 6 years ? 30000000 ? 216118687 ? - ? 6804060 ? 353720 ? (229394798) ? 6118331 ? -
EUR EUR
Euro PP 10000000 ? 2019.07.22 ? 6 years ? 10000000 ? 71512596 ? - ? 2948426 ? 158190 ? (76678281) ? 2059069 ? -
??????????????????????
Total ? ? ? ? ? ? ? ? 359586437 ? - ? 12020506 ? 607646 ? (382428136) ? 10213547 ? -
????
SES Imagotag SA Co. Ltd. (“SES”) 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 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.
10233 Long-term payables
31 December 31 December
Item 2022 ? 2021
????
Obligations under finance leases 372704917 ? 1427139181
Less: Obligations under finance leases due within one
year 143117840 ? 520546343
????
Total 229587077 ? 906592838
????
As at 31 December 2022 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.
34 Deferred income
Balance at the Amounts
beginning of the Additions during recognised in Balance at the
Item year ? the year ? other income ? Other changes ? end of the year
??????????
Related to assets 3865273297 ? 704986506 ? (739587184) ? (32283470) ? 3798389149
Related to income 2550816314 ? 2610333056 ? (3781917899) ? (21273288) ? 1357958183
??????????
Total 6416089611 ? 3315319562 ? (4521505083) ? (53556758) ? 5156347332
????
35 Other non-current liabilities
31 December 31 December
Item Note 2022 ? 2021
?????
Contribution of non-controlling interests
with redemption provisions (1) 2499075805 ? 3020160654
Deferred VAT for imported equipment ? - ? 479505410
Others ? - ? 36143812
?????
Total ? 2499075805 ? 3535809876
????
103(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. The
Company recognises the above non-controlling interests contribution as a financial liability
which is subsequently measured at the cost of amortisation.The Company has an obligation to repurchase part of the equity of non-controlling interests
of its subsidiary Fuzhou BOE on 29 September 2023 with the repurchase principal of RMB
500000000 and the Company recognised the principal and interest of the financial liabilities
for the redemption obligation to non-current liabilities due within one year (Note V.29).
36 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 38445746482 ? - ? (249383061) ? (249383061) ? 38196363421
????
On 20 September 2022 the Company repurchased and cancelled 243229361 domestically
listed foreign shares (B shares) at China Securities Depository and Clearing Corporation
Limited Shenzhen Branch. After the repurchase and cancellation the total share capital of
the Company changed from 38445746482 to 38202517121 shares.On 14 October 2022 the Company repurchased and cancelled 6153700 shares of
restricted shares at China Securities Depository and Clearing Corporation Limited Shenzhen
Branch. After the repurchase and cancellation the total share capital of the Company
changed from 38202517121 to 38196363421 shares.
37 Other equity instruments
(1) Financial instruments (including perpetual bonds) that remain outstanding at the end of the
year are set out as follows:
Maturity
date or Conditions
Outstanding financial Accounting Issuance renewal for Conversion
instruments Issuance date ? classification ? Interest rate ? price ? Quantity ? Amount ? status ? conversion ? status
??????????????????
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
Equity RMB Not Not
22BOEY1 25 March 2022 ? instrument ? 3.50% ? 100/bond ? 20 million ? RMB 2 billion ? 3+N years ? applicable ? applicable
Total ? ? ? ? ? ? ? ? 80 million ? RMB 8 billion ? ? ? ? ? ?
????
104(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”); On March 25 2022 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. (digital
economy) in 2022 (the First Phase) which referred to as 22BOEY1 (“2022 bond”).Both 2019 bond 2020 bond and 2022 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 2020 bond and 2022 bond at the end of the
period. The nominal interest rate of the 2019 bond 2020 bond and 2022 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 2020 bond and 2022 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 2019 bond with a three-year issuance period will expire on 28 October 2022. The
Company has decided not to exercise the bond issuer’s option to renew the bond and has
paid the principal and interest of the bond in full. As at 31 December 2022 the actual
issuance of the 2020 bond and 2022 bond amounted to RMB 8000000000 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 ? Decrease during the year ? Accumulated interest ? At the end of the year
financial Carrying Carrying Carrying Charge for the Paid during Carrying
instruments Quantity ? amount ? Quantity ? amount ? Quantity ? amount ? year ? the year ? Quantity ? amount
????????????????????
19BOEY1 80000000 ? 8014033565 ? - ? - ? (80000000) ? (7957047264) ? 263013699 ? (320000000) ? - ? -
20BOEY1 20000000 ? 2050610478 ? - ? - ? - ? - ? 72800000 ? (72800000) ? 20000000 ? 2050610478
20BOEY2 20000000 ? 2045184865 ? - ? - ? - ? - ? 70800000 ? (70800000) ? 20000000 ? 2045184865
20BOEY3 20000000 ? 2037168519 ? - ? - ? - ? - ? 70000000 ? (70000000) ? 20000000 ? 2037168519
22BOEY1 - ? - ? 20000000 ? 1989320755 ? - ? - ? 54082191 ? - ? 20000000 ? 2043402946
????????????????????
Total 140000000 ? 14146997427 ? 20000000 ? 1989320755 ? (80000000) ? (7957047264) ? 530695890 ? (533600000) ? 80000000 ? 8176366808
????
105(4) Relevant information of amounts attributable to holders of equity instruments:
31 December 31 December
?2022?2021
????
Attributable to shareholders of the Company 136089410395 ? 143204240947
- Equity attributable to ordinary shareholders of
the Company 127913043587 ? 129057243520
- Equity attributable to holders of the Company’s
other equity instruments 8176366808 ? 14146997427
Equity attributable to non-controlling shareholders 65960886731 ? 74174525569
- Equity attributable to non-controlling ordinary
shareholders 65960886731 ? 74174525569
- Equity attributable to non-controlling
shareholders of other equity instruments - ? -
????
(5) Accrued interest on holders of other equity instruments
In 2022 as the above-mentioned issued renewable corporate bonds are cumulative other
equity instruments the Company accrued interest of RMB 530695890 on renewable
corporate bonds from undistributed profits and paid interest of RMB 533600000 on
renewable corporate bonds.
38 Capital reserve
Other capital
Item Note Share premium ? reserves ? Total
???????
Balance at the beginning of the year ? 53380787828 ? 536821266 ? 53917609094
Add: Changes in shareholding ratio
of subsidiaries ? 1135268806 ? - ? 1135268806
Equity-settled share-based
payment XI - ? 654336707 ? 654336707
Other movements in equity of
associates V.10 - ? 274685689 ? 274685689
Cancellation of treasury shares ? (641811942) ? - ? (641811942)
Others ? (42952736) ? (78631226) ? (121583962)
???????
Balance at the end of the year ? 53831291956 ? 1387212436 ? 55218504392
????
10639 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 3415768207 ? 1048154539 ? (955720835) ? 3508201911
???
According to the Proposal of Repurchase of Certain Domestically Listed Foreign Shares (B
shares) by the Company deliberated on an item-by-item basis and adopted in the 39th
meeting of the ninth session of the Board of Directors held on 30 March 2022 and the 2021
annual general meeting of shareholders held on 28 April 2022 the Company repurchased its
shares through centralised price bidding transactions with a designated securities account for
repurchase. The Company has repurchased the first batch of shares on 27 June 2022. By
the delivery date 2 September 2022 the Company repurchased 243229361 B shares in
total by paying total consideration of RMB 856052540. On 20 September 2022 the
Company completed the repurchase and cancellation procedures at China Securities
Depository and Clearing Corporation Limited Shenzhen Branch. The shortfall between the
cancelled treasury shares and the share capital of RMB 612823179 is deducted from
Capital reserve - Share premium.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 is allowed to use its own funds to
repurchase certain of its shares through centralised price bidding transactions. The Company
repurchased the shares for the first time on 2 September 2021. The Company has
repurchased its shares by centralised price bidding transactions with a designated securities
account for repurchase during 2022. The Company repurchased 39580919 A shares in total
by paying total consideration of RMB 192101999.According to the Proposal of Repurchase and Cancellation of Certain Restricted Shares by
the Company deliberated and adopted in the fifth meeting of the tenth session of the Board
of Directors meeting held on 26 August 2022 the Company completed repurchase and
cancellation of 6153700 restricted shares before 14 October 2022 at an average
repurchased price of RMB 5.71/share. The corresponding reduction of the treasury shares
are RMB 35142463 the shortfall between the cancelled treasury shares and the share
capital of RMB 28988763 is deducted against Capital reserve—Share premium.In 2022 the Company recognised RMB 64525832 of restricted share dividends against
Other payables—the Repurchased obligation of restricted shares (Note V. 28) and Treasury
shares.
10740 Other comprehensive income
? ? ? Movements during the year ? ?
Less: Amount Less: Transfer of
Balance at the transferred Net-of-tax other Balance at the end
end of previous from other Net-of-tax amount amount comprehensive of the year
year attributable Less: comprehensive attributable to attributable to income to attributable to
to shareholders Income tax income to profit shareholders of the non-controlling retained shareholders of the
Item of the Company ? Before-tax amount ? expenses ? or loss ? Company ? interests ? earnings ? Company
????????????????
Items that will not be reclassified to profit or
loss 34424335 ? (133368736) ? (453661) ? - ? (132915075) ? - ? 22781941 ? (121272681)
Including: Other comprehensive income
recognised under equity
method 207633206 ? (53367649) ? - ? - ? (53367649) ? - ? 32873780 ? 121391777
Changes in fair value of
investments in other equity
instruments (173208871) ? (80001087) ? (453661) ? - ? (79547426) ? - ? (10091839) ? (242664458)
Items that may be reclassified to profit or loss 79126812 ? (1011198322) ? - ? 13903395 ? (1031622161) ? 6520444 ? - ? (952495349)
Including: Other comprehensive income
recognised under equity
method (284718) ? 63317 ? - ? (64550) ? 127867 ? - ? - ? (156851)
Translation differences arising
from translation of foreign
currency financial statements 79411530 ? (1011261639) ? - ? 13967945 ? (1031750028) ? 6520444 ? - ? (952338498)
????????????????
Total 113551147 ? (1144567058) ? (453661) ? 13903395 ? (1164537236) ? 6520444 ? 22781941 ? (1073768030)
?
?
10841 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 2599918896 ? 348186351 ? 3287378 ? 2951392625
Discretionary surplus reserve 289671309 ? - ? - ? 289671309
????????
Total 2889590205 ? 348186351 ? 3287378 ? 3241063934
????
42 Retained earnings
Item Note 2022 ? 2021
?????
Retained earnings at the beginning of the
year (before adjustment) ? 37106514799 ? 15509794622
Total adjustments for opening retained
earnings (“+” for increase; “-” for
decrease) - ? 35577201
Retained earnings at the beginning of the
year (after adjustment) ? 37106514799 ? 15545371823
Add: Net profits for the year attributable to
shareholders of the Company ? 7550877790 ? 25960751646
Less: Appropriation for statutory surplus
reserve ? 348186351 ? 439649657
Interest on holders of other equity
instruments V.37 530695890 ? 533600000
Dividends to ordinary shares ? 7958923130 ? 3476073919
Transfer of other comprehensive
income to retained earnings (a) (19494563) ? (49714906)
?????
Retained earnings at the end of the year ? 35839081781 ? 37106514799
????
According to the Annual Shareholders’ Meeting for 2021 held on 28 April 2022 the Company
distributed cash dividends to shareholders of A shares and B shares on 30 May 2022 (A
shares) and 1 June 2022 (B shares) with RMB 2.1 (2021: RMB 1) every 10 shares and a
profit distribution amount of RMB 7961342043. Considering the turnover rate the
corresponding dividends of the expected non-exercisable portions of restricted shares are
RMB 2418913 with a profit distribution of RMB 7958923130 (2021: RMB 3476073919).As at 31 December 2022 the consolidated retained earnings attributable to the Company
included appropriation to surplus reserves made by the Company’s subsidiaries amounting
to RMB 6206465315 (2021: RMB 5488720290).(a) The amounts both transferred from other comprehensive income to retained earnings
which is associates’ gains from disposal of other equity instrument investments
included in retained earnings and changes in the fair value of other equity instrument
investments are carried out to retained earnings in 2022 are RMB 19494563 (2021:
RMB 49714906).
10943 Operating income and operating costs
?2022?2021
Item Income ? Cost ? Income ? Cost
????????
Principal activities 174113214324 ? 154442890090 ? 217251896977 ? 155258379475
Other operating activities 4300516855 ? 3087676062 ? 3783821035 ? 2040446306
????????
Total 178413731179 ? 157530566152 ? 221035718012 ? 157298825781
????????
Including: Revenue from contracts with
customers 177667655331 ? 157352470042 ? 220166407207 ? 157114068547
Other income - Leases 746075848 ? 178096110 ? 869310805 ? 184757234
????
Information on income of principal activities has been included in Note XIV.Revenue and the related costs of the Group's sales before intended use are as follows:
Relating to ordinary activities:
?2022?2021
Operating income 1407856936 ? 1725918507
Operating costs 1514976278 ? 1313600486
?
44 Taxes and surcharges
?2022?2021
????
Property tax 561061660 ? 502150698
City maintenance and construction tax 268999607 ? 386889711
Education surcharges and local education
surcharges 193572818 ? 278848244
Stamp duty 167033833 ? 168092921
Land use tax 50378527 ? 49797281
Others 34124894 ? 38426971
????
Total 1275171339 ? 1424205826
????
11045 Selling and distribution expenses
?2022?2021
????
Warranty provisions 2390095031 ? 3417085420
Staff costs 1112021277 ? 1350848641
Share-based payments 97853078 ? 75191185
Others 633320911 ? 641464732
????
Total 4233290297 ? 5484589978
????
46 General and administrative expenses
?2022?2021
????
Staff costs 3251030370 ? 3810075453
Repair expense 68934663 ? 94713646
Depreciation and amortisation 971573303 ? 931978993
Share-based payments 238162832 ? 218406816
Others 1717935838 ? 1638198681
????
Total 6247637006 ? 6693373589
????
47 Research and development expenses
?2022?2021
????
Staff costs 4601448025 ? 5065671981
Material expenses 1907254468 ? 1678488408
Depreciation and amortisation 2000893037 ? 1913242133
Share-based payments 269690937 ? 241880815
Others 2321482210 ? 1717142990
????
Total 11100768677 ? 10616426327
????
11148 Financial expenses
?2022?2021
????
Interest expenses from loans 4033749371 ? 5219339546
Less: Borrowing costs capitalised 461537933 ? 352561213
Interest income from bank deposits (1483022892) ? (1050431325)
Exchange losses / (gains) 258458498 ? (248019022)
Other financial expenses 97483531 ? 114051216
????
Total 2445130575 ? 3682379202
????
The interest rate per annum at which the borrowing costs were capitalised by the Group
was 3.25% - 4.25% (2021: 0.76% - 3.24%) for the year.
49 Other income
?2022?2021
????
Government grants related to assets 739587184 ? 507320798
Government grants related to income 4717326643 ? 1567752188
Others 28615497 ? 17692742
????
Total 5485529324 ? 2092765728
????
The amount of government subsidies related to income received by the Group in 2022 and
directly included in other income was RMB 935408744.
11250 Investment income
? Note 2022 ? 2021
?????
Income from long-term equity investments
accounted for using the equity method V.10 528103680 ? 1245036895
Investment income from disposal of long-
term equity investments VI.1? 829872568 ? 37327797
Dividend income from investments in other
equity instruments V.11 35354468 ? 24695749
Including: Dividend income from
investments in other equity instruments
held at the balance sheet date ? 35354468 ? 24695749
Investment income from disposal of
financial assets held for trading ? 116153975 ? 36689179
Investment income from disposal of debt
investments ? - ? 3739725
Gains from remeasurement of remaining
equity interests to fair value upon loss of
control VI.1 4266631856 ? -
Others ? 318151337 ? -
?????
Total ? 6094267884 ? 1347489345
????
51 Gains from changes in fair value
Item 2022 ? 2021
????
Financial assets held for trading 159344584 ? 84966963
????
52 Credit losses
Item 2022 ? 2021
????
Accounts receivable 49897296 ? 28250160
Other receivables 1679930 ? 159709
????
Total 51577226 ? 28409869
????
11353 Impairment losses
?2022?2021
????
Impairment losses of inventories 6975372718 ? 3437630440
Impairment losses of fixed assets 143071492 ? 675831912
Impairment losses of construction in progress 29768263 ? 83037514
Impairment losses of long-term equity investments 8503403 ? 2009770
Impairment losses of goodwill 147755754 ? 279742216
????
Total 7304471630 ? 4478251852
????
54 Gains from asset disposals
Amount recognised
in extraordinary
gain and loss in
Item 2022 ? 2021 ? 2022
??????
Gains from the disposal of assets held for sale - ? 156565635 ? -
Gains / (losses) from disposal of fixed assets 7963317 ? (4596757) ? 7963317
Gains from disposal of intangible assets - ? 29726 ? -
Losses from disposal of construction in
progress - ? (94570) ? -
Gains from disposal of right-of-use assets 3002239 ? 1601757 ? 3002239
??????
Total 10965556 ? 153505791 ? 10965556
????
11455 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 2022 ? 2021 ? 2022
??????
Government grants 1751445 ? 2464320 ? 1751445
Others 161491412 ? 129143626 ? 161491412
??????
Total 163242857 ? 131607946 ? 163242857
????
Government grants recognised in profit or loss for the current period
Item 2022 ? 2021
????
Policy incentives and others 1751445 ? 2464320
???
(2) Non-operating expenses
Amount recognised
in extraordinary
gain and loss in
?2022?2021?2022
??????
Donations provided 28491697 ? 4901023 ? 28491697
Losses from scrapping of non-current assets 17322542 ? 18096305 ? 17322542
Others 41435304 ? 32217774 ? 41435304
??????
Total 87249543 ? 55215102 ? 87249543
????
11556 Income tax expenses
? Note 2022 ? 2021
?????
Current tax expense based on tax law and
regulations ? 1675605623 ? 4072640975
Changes in deferred tax assets/liabilities (1) 112788484 ? 115330429
?????
Total ? 1788394107 ? 4187971404
????
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
?2022?2021
????
Origination and reversal of temporary differences 112788484 ? 115330429
????
(2) Reconciliation between income tax expenses and accounting profit:
?2022?2021
????
Profit before taxation 51218939 ? 35084376259
Expected income tax expenses at tax rate of 15% 7682841 ? 5262656439
Add: Effect of different tax rates applied by
subsidiaries (14751718) ? 54451529
Effect of non-deductible costs expenses and
losses 315429605 ? 236708708
Tax effect of weighted deduction and tax
preference (2652168644) ? (1428917005)
Utilisation of prior year tax losses (49695309) ? (1690731054)
Tax effect of deductible losses of deferred tax
assets not recognised 4456877895 ? 815217892
Tax effect of deductible temporary differences
of deferred tax assets not recognised (274980563) ? 1006609982
Effects of tax rate changes on deferred tax -? ? (68025087)
????
Income tax expenses 1788394107 ? 4187971404
????
116In accordance with the Announcement of the Ministry of Finance the State Taxation
Administration and the Ministry of Science and Technology on Increasing Efforts for Pre-tax
Deduction to Support Scientific and Technological Innovation (Announcement [2022] No.28
of the Ministry of Finance and the State Taxation Administration) high-tech enterprises are
allowed to deduct the full amount of equipment and appliances newly purchased during the
period from 1 October 2022 to 31 December 2022 from the taxable income amount on a one-
off basis in the current year and allowed to conduct 100% weighted deduction before tax.
57 Basic earnings per share and diluted earnings per share
Basic earnings per share is calculated as dividing consolidated net profit attributable to
ordinary shareholders of the Company by the weighted average number of ordinary shares
outstanding. The Group does not have any potential dilutive ordinary shares for the listed
years.?2022?2021
????
Consolidated net profit attributable to shareholders
of the Company 7550877790 ? 25960751646
Less: Current interest of other equity instruments 530695890 ? 533600000
Less: Current dividends of restricted shareholders 64525832 ? 31234036
Consolidated net profit attributable to ordinary
shareholders of the Company 6955656068 ? 25395917610
Weighted average number of ordinary shares
outstanding (shares) 37502641911 ? 35704986088
Basic earnings per share (RMB/share) 0.19 ? 0.71
????
Weighted average number of ordinary shares is calculated as follows:
?2022?2021
????
Issued ordinary shares at the beginning of the year 37638356849 ? 34448398830
Add: Weighted average number of ordinary shares
issued in current period - ? 1330137380
Less: Weighted average number of ordinary shares
repurchased in current period 135714938 ? 73550122
????
Weighted average number of ordinary shares at the
end of the year 37502641911 ? 35704986088
???
11758 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
?2022?2021
????
(a) Reconciliation of net (loss) / profit to cash
flows from operating activities: ? ? ?
????
Net (loss) / profit (1737175168) ? 30896404855
Add: Credit losses 51577226 ? 28409869
Impairment loss 7304471630 ? 4478251852
Depreciation of fixed assets
investment properties and right-of-
use assets 33422031705 ? 33432161074
Amortisation of intangible assets 995315014 ? 1185263603
Amortisation of long-term deferred
expenses 83058206 ? 130732527
Gains from disposal of fixed assets
intangible assets and other long-
term assets (10965556) ? (154943108)
Losses from scrapping of fixed assets
and intangible assets 15873895 ? 18096305
Financial expenses 4070314610 ? 4521336008
Gains from changes in fair value (159344584) ? (84966963)
Investment income (6094267884) ? (1347489345)
Share-based payments 649427866 ? 640692637
Change in deferred income (1259742279) ? 2177609983
Change in deferred tax assets 25329486 ? 14705564
Change in deferred tax liabilities 136748088 ? 100681820
Increase in inventories (3360776944) ? (13376494050)
Decrease / ( increase) in operating
receivables 7975232270 ? (8905074070)
Increase in operating payables 914859724 ? 8943309995
????
Net cash flows from operating activities 43021967305 ? 62698688556
???
118(b) Change in cash and cash equivalents: ? ? ?
????
?2022?2021
????
Cash and cash equivalents at the end of the
year 64382037764 ? 76623486083
Less: Cash and cash equivalents at the
beginning of the year 76623486083 ? 68064736371
????
Net (decrease) / increase in cash and cash
equivalents (12241448319) ? 8558749712
????
(2) Information on acquisition or disposal of subsidiaries during the current year:
Information on acquisition of subsidiaries:
??2022?2021
?????
Cash or cash equivalents paid during the
year for acquiring subsidiaries during the
year ? - ? (5916812)
Less: Cash and cash equivalents held by
acquired subsidiaries ? - ? (3101277)
?????
Net payment for acquisition of subsidiaries ? - ? (2815535)
?
Information on disposal of subsidiaries:
??2022?2021
?????
Cash or cash equivalents received during
the year for disposing of subsidiaries
during the year ? 1248072000 ? -
Less: Cash and cash equivalents held by
acquired subsidiaries ? 311313078 ? -
?????
Net cash received for disposing of
subsidiaries ? 936758922 ? -
?
??2022?2021
?????
Cash or cash equivalents received during
the year for disposing of subsidiaries
during the year ? - ? 88028400
Less: Cash and cash equivalents held by
acquired subsidiaries ? 144689766 ? 248916397
?????
Net payment for disposal of subsidiaries ? (144689766) ? (160887997)
119(3) Details of cash and cash equivalents
?2022?2021
????
Cash on hand 896267 ? 451975
Bank deposits available on demand 64378531680 ? 76549790015
Other monetary funds available on demand 2609817 ? 73244093
????
Closing balance of cash and cash equivalents 64382037764 ? 76623486083
????
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.
59 Assets with restrictive ownership titles or right of use
Balance at the
beginning of the Additions during Decreases during Balance at the end
Item year ? the year ? the year ? of the year ? Reason for restriction
??????????
Mainly deposits pledged for
Cash at bank and on hand 4152705165 ? 2382241772 ? (2507588393) ? 4027358544 ? drawing bills payable
Endorsed with resource and
Bills receivable 23902855 ? 28239380 ? (23902855) ? 28239380 ? pledged for drawing bill
Investment properties 41247205 ? - ? (1529204) ? 39718001 ? Mortgaged as collateral
Fixed assets 171435160686 ? 2484511825 ? (33500815134) ? 140418857377 ? Mortgaged as collateral
Construction in progress 316234570 ? 17494722323 ? (15759854976) ? 2051101917 ? Mortgaged as collateral
Intangible assets 1623510499 ? - ? (162384713) ? 1461125786 ? Mortgaged as collateral
??????????
Total 177592760980 ? 22389715300 ? (51956075275) ? 148026401005 ? ?
????
12060 Leases
(1) As a lessee
Right-of-use assets
? Plant & buildings ? Equipment ? Others ? Total
????????
Cost ? ? ? ? ? ? ?
Balance at the beginning of the year 567247967 ? 107357735 ? 192885015 ? 867490717
Additions during the year 229346204 ? 15740262 ? 5538270 ? 250624736
Decrease due to disposal of subsidiaries (49677267) ? - ? - ? (49677267)
Decreases during the year (80820628) ? (107136932) ? - ? (187957560)
Translation differences 20192444 ? - ? - ? 20192444
????????
Balance at the end of the year 686288720 ? 15961065 ? 198423285 ? 900673070
????????
Accumulated depreciation ? ? ? ? ? ? ?
Balance at the beginning of the year 82687553 ? 22013731 ? 9625196 ? 114326480
Charge for the year 146686766 ? 4393747 ? 10482467 ? 161562980
Decrease due to disposal of subsidiaries (15326483) ? - ? - ? (15326483)
Decreases during the year (24030120) ? (25897396) ? - ? (49927516)
Translation differences 2916663 ? - ? - ? 2916663
????????
Balance at the end of the year 192934379 ? 510082 ? 20107663 ? 213552124
????????
Provision for impairment ? ? ? ? ? ? ?
Balance at the beginning of the year and
at the end of the year - ? - ? - ? -
????????
????????
Carrying amount ? ? ? ? ? ? ?
Carrying amount at the end of the year 493354341 ? 15450983 ? 178315622 ? 687120946
????????
Carrying amount at the beginning of the
year 484560414 ? 85344004 ? 183259819 ? 753164237
???
Lease liabilities
Item Note 31 December 2022 ? 1 January 2022
?????
Long-term lease liabilities ? 656888776 ? 761918319
Less: lease liabilities due within one
year V.29 118302766 ? 92788055
?????
Total ? 538586010 ? 669130264
???
In 2022 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.
121VI. Change of consolidation scope
1 Disposal of subsidiaries
Disposal of investments in subsidiaries through a single transaction resulting in loss of control
Investment
income or
loss
transferred
Difference from other
between Gain or loss comprehensi
consideration Proportion Carrying from Method and ve income
received and the of remaining amount of Fair value of remeasureme key related to
related share of shareholdin remaining remaining nt of assumptions previous
net assets in g on the equity equity remaining for determining equity
Shareholding Date of Basis for consolidated date of interests on interests on equity the fair value investments
being Disposal losing determining date financial losing the date of the date of interests to of remaining in
Name of enterprise Disposal price ? disposed (%) ? method ? control ? of losing control ? statements ? control ? losing control ? losing control ? fair value ? equity interests ? subsidiaries
????????????????????????
Equity delivery
and completing
changes in the Asset
BOE Digital Technology Co. Equity 31 August Articles of appraisal
Ltd. 129500000 ? 51% ? replacement ? 2022 ? Association ? 62130573 ? 15% ? 19794533 ? 38081355 ? 18286822 ? report ? -
Completing re-
Transactions election of The stock
within the 28 members of the closing price
secondary November Board of when control is
SES Imagotag SA Co. Ltd. 1248072000 ? 9.51% ? market ? 2022 ? Directors ? 753774050 ? 32.56% ? 623492148 ? 4871837182 ? 4248345034 ? lost ? 13967945
?
1) The Group previously had actual control over BOE Digital Technology Co. Ltd. ("Digital Technology") through its subsidiaries SES and
Wisdom IOT. During the year SES made contributions to BOE Art Cloud Technology Co. Ltd.which is an associate of the Group with its
51% equity interest in Digital Technology. The equity delivery was completed on 31 August 2022. Then the Group has lost control of
Digital Technology. In the consolidated financial statements the long-term equity investment is re-measured at its fair value at the date
when control is lost.
1222) BOE Smart Retail (Hong Kong) Co. Ltd. (hereinafter referred to as "Smart Retail") a subsidiary of the Group sold its 9.51% of the
shares of SES on November 25 2022. After the sale was completed Smart Retail's shareholding percentage in SES dropped from
42.07% to 32.56%. On 28 November 2022 Paris time SES convened an extraordinary Board meeting to re-electing members of the
Board of Directors therefore Smart Retail no longer has a majority vote on the Board of Directors of SES the Group has lost control
of SES. In the consolidated financial statements the long-term equity investment is re-measured at its fair value at the date when
control is lost.
2 Other reasons for change of consolidation scope
During the year the Company newly established three tier-one subsidiaries namely BOE Environmental Energy Technology Co. Ltd.Chengdu BOE Display Technology Co. Ltd. and Beijing BOE Chuangyuan Technology Co. Ltd. ("Chuangyuan Technology").
123VII. 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 Beijing Research and development (“R&D”) design and manufacturing USD Founded by
Technology Co. Ltd. China ? Beijing China ? of TFT-LCD ? 649110000 ? - ? 100% ? investment
Business combinations
Chengdu BOE Optoelectronics Chengdu Chengdu R&D design manufacturing and sale of new display devices RMB involving entities not
Technology Co. Ltd. China ? China ? and components ? 25000000000 ? 100% ? - ? under common control
Investment construction R&D production and sales of the Business combinations
Hefei BOE Optoelectronics Technology Hefei relevant products of thin film transistor LCD and its auxiliary RMB involving entities not
Co. Ltd. China ? Hefei China ? products ? 9000000000 ? 100% ? - ? under common control
Beijing BOE Display Technology Co. Beijing RMB Founded by
Ltd. China ? Beijing China ? Development of TFT-LCD manufacturing and sale of LCD ? 17882913500 ? 97.17% ? 2.83% ? investment
Investment construction R&D production and sales of the Business combinations
Hefei Xinsheng Optoelectronics Hefei relevant products of thin film transistor LCD and its auxiliary RMB involving entities not
Technology Co. Ltd. China ? Hefei China ? products ? 19500000000 ? 99.97% ? 0.03% ? under common control
Ordos
Ordos Yuansheng Optoelectronics Co. China Ordos China Manufacture and sales of AM-OLED products and auxiliary RMB Founded by
Ltd. ? ? products ? 11804000000 ? 100% ? - ? investment
R&D production and sales of semi-conducting display devices Business combinations
Chongqing BOE Optoelectronics Chongqing Chongqing complete machine and related products; import & export of RMB involving entities not
Technology Co. Ltd. China ? China ? goods and technology consulting ? 19226000000 ? 100% ? - ? under common control
Investment construction R&D production and sales of the
relevant products of thin film transistor LCD and its auxiliary
products (separate business site); self-support and agency for
the import and export of various goods and technologies
except those goods and technologies that are restricted by the
country or prohibited from import and export; business
management consulting and services; property leases;
machinery and equipment leases; technology development
transfer consulting and services related to LCD products (For
business activities subject to approval in accordance with laws Business combinations
Fuzhou BOE Optoelectronics Fuzhou Fuzhou and regulations operations may be conducted only with the RMB involving entities not
Technology Co. Ltd. China ? China ? approval of the relevant government authorities). ? 17600000000 ? 83.24% ? - ? under common control
Beijing BOE Video Technology Co. Ltd. Beijing RMB Founded by
(“BOE Video”) China ? Beijing China ? Investment platform sales of LCD ? 4424095800 ? 100% ? - ? investment
124Shareholding (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 Vacuum Electronics Co. Beijing RMB Founded by
Ltd. China ? Beijing China ? Manufacture and sale of vacuum electronic products ? 33250000 ? 57.89% ? - ? investment
Beijing BOE Vacuum Technology Co. Beijing RMB Founded by
Ltd. China ? Beijing China ? Manufacture and sale of electronic tubes ? 32000000 ? 100% ? - ? investment
Beijing Management of engineering projects; real estate development; RMB Founded by
Beijing Yinghe Century Co. Ltd. China ? Beijing China ? public parking lot for motor vehicles service; market survey ? 233105200 ? 100% ? - ? investment
BOE Optical Science and technology Suzhou Suzhou R&D production and sales of LCD back light for display and RMB Founded by
Co. Ltd. China ? China ? related components ? 826714059 ? 95.17% ? - ? investment
BOE Hyundai LCD (Beijing) Display Beijing Development manufacture and sale of liquid display for mobile USD Founded by
Technology Co. Ltd. China ? Beijing China ? termination ? 5000000 ? 75% ? - ? investment
BOE (Hebei) Mobile Technology Co. Langfang Langfang Manufacture and sale of mobile flat screen display technical RMB Founded by
Ltd. China ? China ? products and related services ? 1358160140 ? 100% ? - ? investment
Design consultancy and service of solar cell photovoltaic
Beijing BOE Energy Technology Co. Beijing system wind power system and solar thermal system as well RMB Founded by
Ltd. China ? Beijing China ? as the assembly units; energy-saving service ? 1242690058 ? 68.40% ? - ? 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 government
Beijing BOE Multimedia Technology Beijing authorities; business activities prohibited and restricted by the RMB Founded by
Co. Ltd. China ? Beijing China ? industrial policies of the state and the city.) ? 400000000 ? 100% ? - ? investment
Beijing Technology promotion services property management sales of RMB Founded by
Beijing BOE Life Technology Co. Ltd. China ? Beijing China ? electronic products ? 24000000 ? 100% ? - ? investment
125Shareholding (or similar
? ? ? ? ? ? ? ? ? equity interest) percentage ? ?
Principal
place of Registered
Name of the subsidiary business ? place ? Business nature ? Registered capital ? Direct ? Indirect ? Acquisition method
Ordos
Ordos City Haosheng Energy China Ordos China RMB Founded by
Investment Co. Ltd. ? ? Energy investment ? 30000000 ? - ? 100% ? investment
Processing manufacturing and sales of precision electronic
components semi-conductor devices micro modules
Beijing microelectronic devices and electronic materials; import & RMB Founded by
BOE Semi-conductor Co. Ltd. China ? Beijing China ? export of goods ? 11250000 ? 84% ? - ? investment
Hong Kong British Virgin USD Founded by
BOE Optoelectronics Holding Co. Ltd. China ? Islands ? Investment holding ? 1000000000 ? 100% ? - ? investment
KRW Founded by
BOE (Korea) Co. Ltd. Korea ? Korea ? Wholesale and retail trade ? 95000000 ? 100% ? - ? investment
Business combinations
BOE Healthcare Investment & Beijing RMB involving entities not
Management Co. Ltd. China ? Beijing China ? Investment management and project investment ? 7300000000 ? 100% ? - ? under common control
Colour TV set display tube colour RPTV projection tube and Business combinations
Beijing materials of electronic components; property management and RMB involving entities not
Beijing Matsushita Colour CRT Co. Ltd. China ? Beijing China ? parking services etc. ? 325754049 ? 88.80% ? - ? under common control
Business combinations
Hefei BOE Display Technology Co. Hefei Investment R & D and production of products related to TFT- RMB involving entities not
Ltd. China ? Hefei China ? LCD and the supporting facility ? 24000000000 ? 8.33% ? - ? under common control
Beijing BOE Technology Development Beijing RMB Founded by
Co. Ltd. China ? Beijing China ? Development transfer consulting and service of technology ? 1000000 ? 100% ? - ? investment
Hefei BOE Zhuoyin Technology Co. Hefei Investment construction R&D production and sales of RMB Founded by
Ltd. China ? Hefei China ? products related to OLED display device and auxiliary products ? 800000000 ? 75% ? - ? investment
Development construction property management and
supporting service of industrial plants and supporting facilities;
information consulting of real estate; lease of commercial
Beijing facilities commercial attendants and the supporting service RMB Founded by
Beijing BOE Real Estate Co. Ltd. China ? Beijing China ? facilities; motor vehicles public parking service ? 55420000 ? 70% ? - ? investment
Sales of communication equipment hardware & software of
computer and peripheral units electronic products equipment
maintenance; development transfer consulting and service
providing of technologies; import & export of goods and
Beijing technologies agency of import & export; manufacturing RMB Founded by
Beijing BOE Marketing Co. Ltd. China ? Beijing China ? consignment of electronic products and LCD devices ? 50000000 ? 100% ? - ? investment
126Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business ? place ? Business nature ? Registered capital ? Direct ? Indirect ? Acquisition method
Beijing Zhongxiangying Technologies Beijing Technology promotion services property management sales of RMB Founded by
Co. Ltd. China ? Beijing China ? electronic products ? 109767000 ? 91.10% ? - ? 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 projects;
Yunnan Invensight Optoelectronics Kunming Kunming import and export of goods and technologies; property leases RMB Founded by
Technology Co. Ltd. China ? China ? machinery and equipment leases ? 3040000000 ? 79.10% ? - ? investment
R&D production and sales of flexible AMOLED the products Business combinations
are mainly
involving
Mianyang BOE Optoelectronics Mianyang Mianyang used in smart phones wearable devices car display AR/VR RMB entities not under
Technology Co. Ltd. China ? China ? etc. ? 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
Beijing BOE Sensing Technology Co. Beijing semiconductor sensors technology testing technical RMB Founded by
Ltd. China ? Beijing China ? consulting technical services technology transfer ? 4651482400 ? 100% ? - ? investment
Business combinations
involving
Wuhan BOE Optoelectronics Wuhan Investing researching manufacturing and selling TFT-LCD RMB entities not under
Technology Co. Ltd. China ? Wuhan China ? products and accessory products ? 26000000000 ? 47.14% ? - ? common control
Business combinations
R&D manufacture and sales of semiconductor display devices involving
Chongqing BOE Display Technology Chongqing Chongqing whole widget and relevant products import and export of goods RMB entities not under
Co. Ltd. (“Chongqing BOE Display”) China ? China ? and technical consulting ? 21124724750 ? 38.46% ? - ? common control
R&D production and sale of TFT-LCD panels colour filters and
LCD whole-widget modules; providing products and business- Business combinations
related services as well as other business activities related to involving
Nanjing BOE Display Technology Co. Nanjing Nanjing the above; import and export of proprietary and agent RMB entities not under
Ltd. China ? China ? commodities and technologies ? 17500000000 ? 80.83% ? - ? common control
127Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business ? place ? Business nature ? Registered capital ? Direct ? Indirect ? Acquisition method
Hefei BOE Xingyu Technology Co. Ltd. Hefei R&D production and sales of Mini LED backlight components USD Founded by
(“Hefei Xingyu”) China ? Hefei China ? and Mini LED display module components ? 115380000 ? 63.77% ? - ? investment
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 Business combinations
and electronic products technical services; business involving
Fuzhou BOE Display Technology Co. Fuzhou Fuzhou management consulting; property management; house rental; RMB entities not under
Ltd. (“Fuzhou BOE Display”) China ? China ? machinery and equipment rental ? 50000000 ? 43.46% ? - ? common control
Beijing RMB Founded by
BOE Innovation Investment Co. Ltd. China Beijing China Project investment and investment management 800000000 100% - investment
General businesses: technical services technology
development technology consulting technical exchange
technology transfer technology promotion; manufacturing of
display devices [operations of branches]; sale of display
devices; manufacturing of electronic components [operations of
branches]; wholesale of electronic components; manufacturing
of others electronic devices [operations of branches]; import
and export of goods; import and export of technology; business
management consulting; property management; non-residential
real estate leasing; machinery and equipment leasing. (Except
for business activities subject to approval in accordance with
Chengdu BOE Display Techlogy Co. Chengdu Chengdu laws and regulations operations are conducted in accordance RMB Founded by
Ltd. China ? China ? with the law and business license.) ? 10000000 ? 52.63% ? -? ? investment
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;
Beijing enterprise management consulting; sales of computer software RMB Founded by
BOE Mled Technology Co. Ltd. China ? Beijing China ? and auxiliary equipment electronic products. ? 950000000 ? 100% ? - ? investment
Provision of hardware and software integrated system solutions
for the IoT market segment; intelligent city intelligent transport
Beijing intelligent finance intelligent park and the display terminal RMB Founded by
BOE Smart Technology Co. Ltd. China Beijing China products such as the intelligent all-in-one machines 6521250000 100% - investment
128Shareholding (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 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
Beijing activities prohibited and restricted by the industrial policies of RMB Founded by
BOE Education Technology Co. Ltd. China ? Beijing China ? the state and the city.) ? 55000000 ? 100% ? - ? investment
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
Dongfang Chengqi (Beijing) Business Beijing authorities; business activities prohibited and restricted by the RMB Founded by
Technology Co. Ltd. China Beijing China industrial policies of the state and the city.) 10000000 100% - investment
129Shareholding (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 consulting technology
transfer technology promotion technical services technical
testing of energy-saving technology environmentally friendly
new energy technology environmental protection equipment
solar electrical energy generation building integrated PV
electric power power station operations and maintenance;
software development; Internet data services (data centers for
Internet data services excluding cloud computing data centres
with a PUE over 1.4); information processing and storage
support services (data centers for information processing and
storage support services excluding cloud computing data
centres with a PUE over 1.4); contract energy management;
water pollution treatment; air pollution control; solid waste
treatment; soil pollution treatment and restoration services;
environmental protection monitoring; installation maintenance
leasing of equipment; professional design services; property
management; sale of special equipment for environment
protection lighting equipment electronic products machinery
and equipment electrical equipment instruments hardware
products computers software and auxiliary equipment
chemical products (excluding licensed chemical products);
import and export of goods; import and export of technology;
import and export agents; power supply business; construction
engineering design; electrical installation services; various
engineering and construction activities; EPC of house
BOE Environmental Energy Technology Beijing construction and municipal infrastructure projects; construction RMB Founded by
Co. Ltd. China ? Beijing China ? labour subcontracting. ? 100000000 ? 100% ? -? ? investment
R&D production and sales of TFT-LCD panels and modules
Chengdu BOE Display Sci-tech Co. liquid crystal display monitors televisions instruments Business combinationsLtd. (formerly known as “Chengdu machinery equipment and accessories as well as provision of involvingCEC Panda FPD Technology Co. Chengdu Chengdu technical services; foreign trade in form of import and export of RMB entities not underLtd.”) China ? China ? goods and technology ? 21550000000 ? 35.03% ? - ? common control
Manufacturing of display devices; sale of display devices;
manufacturing of electronic components; wholesale of
electronic components; retail of electronic components;
technical services technology development technology
consulting technical exchange technology transfer technology
promotion; import and export of goods; import and export of
technology; business management consulting; property
management; machinery and equipment leasing; manufacturing
of other electronic devices. (Except for business activities
subject to approval in accordance with laws and regulations
Beijing BOE Chuangyuan Technology Beijing operations are conducted in accordance with the law and RMB Founded by
Co. Ltd. China ? Beijing China ? business license.) ? 10000000 ? 79.31% ? -? ? investment
130The 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) 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%.The Company signed a concerted action agreement with Chengdu Advanced Manufacturing
Industry Investment Co. Ltd. a shareholder of Chengdu Display Sci-tech and Chengdu
Airport Xingcheng Investment Group Co. Ltd. on December 17 2020. The Company signed
a concerted action agreement with Nanjing Zhongdian Panda Information Industry Group
Co. Ltd. on December 31 2020 and signed a concerted action agreement with Zhongdian
Financial Investment Holding Co. Ltd. on June 28 2022 A concerted action agreement was
signed with Ya'an Yashuang Investment Co. Ltd. on November 30 2022 and Chengdu
Advanced Manufacturing Industry Investment Co. Ltd. Chengdu Airport Xingcheng
Investment Group Co. Ltd. Ya'an Yashuang Investment Co. Ltd. Nanjing Zhongdian Panda
Information Industry Group Co. Ltd. and Zhongdian Financial Investment Holding Co. Ltd.acted in concert with the wishes of the company We unconditionally and irrevocably
exercise our voting rights in accordance with our company's opinions so our company's
voting rights ratio in Chengdu Display Sci-tech is 96.75%.
131(2) Material non-wholly owned subsidiaries
Proportion of Llosses
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% ? (3618751980) ? - ? 18822591037
Mianyang BOE 16.54% ? (380623218) ? - ? 3556733678
Wuhan BOE 52.86% ? (2002557008) ? - ? 13146768173
Chongqing BOE Display 61.54% ? (201271791) ? - ? 14444887413
????
(3) Key financial information about material non-wholly owned subsidiaries
The following table sets out the key financial information of the above subsidiaries without
offsetting internal transactions but with adjustments made for the fair value adjustment at the
acquisition date and any differences in accounting policies:
? Hefei Display Technology ? Mianyang BOE ? Wuhan BOE ? Chongqing BOE Display
?2022?2021?2022?2021?2022?2021?2022?2021
????????????????
Current assets 12595285193 ? 15797281551 ? 12372285496 ? 9255378733 ? 7442285566 ? 12711279779 ? 8590561462 ? 9119260427
Non-current assets 20269449516 ? 24332972509 ? 37212140922 ? 43427820893 ? 38934335172 ? 38277507503 ? 32479448086 ? 25994167505
????????????????
Total assets 32864734709 ? 40130254060 ? 49584426418 ? 52683199626 ? 46376620738 ? 50988787282 ? 41070009548 ? 35113427932
????????????????
Current liabilities 6306350492 ? 7432659554 ? 11072411471 ? 7343085123 ? 6251107827 ? 7311202489 ? 5410946190 ? 3837467534
Non-current
liabilities 6025395194 ? 8237784012 ? 17008183759 ? 21547455635 ? 15254593174 ? 15031465931 ? 12186708120 ? 8053464462
????????????????
Total liabilities 12331745686 ? 15670443566 ? 28080595230 ? 28890540758 ? 21505701001 ? 22342668420 ? 17597654310 ? 11890931996
????????????????
Operating income 10878478058 ? 19895825588 ? 16357203835 ? 15252416607 ? 12845309881 ? 16825449551 ? 883001124 ? 25345522
Net (loss) / profit (3947585884) ? 3314633884 ? (2301228643) ? (998415291) ? (3788416587) ? 2811946928 ? (327058484) ? (243647739)
Total
comprehensive
income (3947585884) ? 3314633884 ? (2301228643) ? (998415291) ? (3788416587) ? 2811946928 ? (327058484) ? (243647739)
Cash inflows /
(outflows) in
operating
activities 899521665 ? 9132590378 ? 7118785052 ? 3589416228 ? 2816292270 ? 5734190509 ? (185310156) ? 91717067
???
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
????
BOE Energy 100.00% ? 68.40%
Zhongxiangying 100.00% ? 91.10%
Hefei Xingyu 53.86% ? 63.77%
????
132(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/decrease of the Company and the capital
increase of their non-controlling interests or the failure to increase capital by the Company
and the non-controlling interests of the subsidiaries in equal proportion which results in the
increase of capital reserves by RMB 1135268806 . See Note V.38.
3 Interests in associates
Please see Note V.10(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.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.
1331 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. The Group’s credit risk is primarily
attributable to receivables. Exposure to these credit risks is monitored by management on an
ongoing basis.The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does not
expect that these financial institutions may default and cause losses to the Group.In respect of receivables the Group has established a credit policy under which individual
credit evaluations are performed on all customers to determine the credit limit and terms
applicable to the customers. These evaluations focus on the customers’ financial position
the external ratings of the customers and the record of previous transactions. Receivables
are due within 7 to 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% (2021: 39%) of
the Contract assets total accounts receivable were due from the five largest customers of the
Group. 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 2022 the Group
does not provide any external guarantees which would expose the Group or the Company to
credit risk.
2 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that
are settled by delivering cash or another financial asset. The Company and its individual
subsidiaries are responsible for their own cash management including short-term investment
of cash surpluses and the raising of loans to cover expected cash demands subject to
approval by the Company’s board when the borrowings exceed certain predetermined levels
of authority. The Group’s policy is to regularly monitor its liquidity requirements and its
compliance with lending covenants to ensure that it maintains sufficient reserves of cash
readily realisable marketable securities and adequate committed lines of funding from major
financial institutions to meet its liquidity requirements in the short and longer term.
134The 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 31 December) and the earliest date the Group can be required to pay:
? 2022 Contractual undiscounted cash flow ? ?
More than 1 More than 3
Within 1 year or year but less years but less
on demand than 3 years than 5 years More than 5 Carrying amount
? (inclusive) ? (inclusive) ? (inclusive) ? years ? Total ? of balance sheet
????????????
Financial liabilities ? ? ? ? ? ? ? ? ? ? ?
Short-term loans 2472050871 ? - ? - ? - ? 2472050871 ? 2373938871
Bills payable 870221538 ? - ? - ? - ? 870221538 ? 870221538
Accounts payable 29834720464 ? - ? - ? - ? 29834720464 ? 29834720464
Other payables 19632223269 ? - ? - ? - ? 19632223269 ? 19632223269
Non-current liabilities due
within one year 23132749292 ? - ? - ? - ? 23132749292 ? 22703750744
Long-term loans 4872695550 ? 17357391426 ? 26251319950 ? 99561622533 ? 148043029459 ? 123143479690
Lease liabilities - ? 246663217 ? 123905787 ? 323315125 ? 693884129 ? 538586010
Long-term payables - ? 70973955 ? 160835968 ? - ? 231809923 ? 229587077
????????????
Total 80814660984 ? 17675028598 ? 26536061705 ? 99884937658 ? 224910688945 ? 199326507663
????
? 2021 Contractual undiscounted cash flow ? ?
More than 1
year but less More than 3 years
Within 1 year or on than 3 years but less than 5 Carrying amount
? demand (inclusive) ? (inclusive) ? years (inclusive) ? More than 5 years ? Total ? of 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
???
1353 Interest rate risk
Interest-bearing financial instruments at variable rates and at fixed rates expose the Group to
cash flow interest rate risk and fair value interest risk respectively. The Group determines
the appropriate weightings for fixed and floating rate interest-bearing instruments based on
current market conditions and performs regular reviews and monitoring to achieve an
appropriate mix of fixed and floating rate exposure. The Group does not enter into financial
derivatives to hedge interest rate risk.(a) As at 31 December the Group held the following interest-bearing financial instruments:
Fixed rate instruments:
?2022?2021
Effective interest Effective interest
Item rate ? Amounts ? rate ? Amounts
????????
Financial assets ? ? ? ? ? ? ?
- Cash at bank 0.70%~5.45% ? 36597334927 ? 0.30%~3.99% ? 36894761961
Financial liabilities ? ? ? ? ? ? ?
- Short-term loans 0.25%~5.90% ? (1149712480) ? 0.50%~5.90% ? (2068800511)
- Other payables 0%~2.18% (3000000000) 0%~2.18% (3000000000)
- Non-current liabilities due within
one year 0%~6.86% ? (7841491191) ? 0%~6.86% ? (9407794957)
- Long-term loans 0%~5.90% ? (25324584996) ? 0%~5.90% ? (28644395246)
- Debentures payable - ? - ? 3.50%~4.55% ? (359586437)
- Lease liabilities 3.65%~4.75% ? (538586010) ? 3.85%~4.75% ? (669130264)
- Long-term payables 4.30%~6.86% ? (229587077) ? 4.65%~6.86% ? (906592838)
????????
Total ? ? (1486626827) ? ? ? (8161538292)
????
Floating rate instruments:
?2022?2021
Effective interest Effective interest
Item rate ? Amounts ? rate ? Amounts
????????
Financial assets ? ? ? ? ? ? ?
- Cash at bank 0.0001%~5.30% ? 31723267975 ? 0.0001%~2.70% ? 41471269422
Financial liabilities ? ? ? ? ? ? ?
- Short-term loans 5.65%~5.84% ? (1218525680) ? - ? -
- Non-current liabilities due within
one year 1.00%~7.44% ? (14215671815) ? 1.66%~5.88% ? (18827495477)
- Long-term loans 1.00%~7.44% ? (97816667917) ? 2.30%~5.88% ? (87317668185)
????????
Total ? ? (81527597437) ? ? ? (64673894240)
????
136(b) Sensitivity analysis
As at 31 December 2022 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
679150000 (2021: RMB 549530000).
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 1523210633 (2021 net liabilities
exposure: USD 177293137) translated into RMB 10608552775 (2021: RMB
1130367854) using the spot rate at the balance sheet date. Differences resulting
from the translation of the financial statements denominated in foreign currency are
excluded.(b) Assuming all other risk variables remained constant a 5% strengthening / weakening
of the Renminbi against the US dollar at 31 December would have increased /
decreased both the Group’s equity and net profit by the amount RMB 136665926
(2021: decreased / increased RMB 164148318).
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.
137IX. 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 2022
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 256525783 ? - ? 16931468153 ? 17187993936
Including: Structured deposit
and wealth-
management
products ? - ? - ? 16931468153 ? 16931468153
Investments in
equity instruments ? 256525783 ? - ? - ? 256525783
- Investments in other equity
instruments V.11 154312590 ? - ? 328747716 ? 483060306
- Other non-current financial assets V.12 - ? - ? 2022967681 ? 2022967681
Including: Investments in
equity instruments ? - ? - ? 2022967681 ? 2022967681
?????????
Total assets measured at fair value
on a recurring basis ? 410838373 ? - ? 19283183550 ? 19694021923
????
? ? 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.11 168325009 ? - ? 350763137 ? 519088146
- Other non-current financial assets V.12 - ? - ? 606895447 ? 606895447
Including: Investments in
equity instruments ? - ? - ? 606895447 ? 606895447
?????????
Total assets measured at fair value
on a recurring basis ? 168325009 ? - ? 10985831437 ? 11154156446
???
1382 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 and other non-current financial assets 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 2022 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 2022 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.X. Related parties and related party transactions
1 Information about the parent of the Company
Percentage of Ultimate
Shareholding voting rights controlling party
Company name Registered place ? Business nature ? Registered 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 ? 0.72% ? 12.20% ? Yes
????
2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Group refer to Note VII.1.
1393 Information about joint ventures and associates of the Company
Associates and joint ventures that have related party transactions with the Group during this
year or the previous year are as follows:
Name of entity Relationship with the Company
??
Associate of the Group and the
Beijing Nittan Electronic Co. Ltd. Company
Associate of the Group and the
Beijing BOE Art Cloud Technology Co. Ltd. Company
Associate of the Group and the
Beijing Xindongneng Investment Management Co. Ltd. Company
Associate of the Group and the
TPV Display Technology (China) Limited Company
Associate of the Group and the
BOE Digital Technology Co. Ltd. Company
Associate of the Group and the
Beijing BOE Art Cloud (Suzhou)Technology Co. Ltd. Company
Associate of the Group and the
Beijing BOE Art Cloud (Hangzhou)Technology Co. Ltd. Company
Hefei Xin Jing Yuan Electronic Materials Co. Ltd. Associate of the Group
Beijing BOE Microbial Technology Co. Ltd. Associate of the Group
Biochain (Beijing) Science-Technology.Inc. Associate of the Group
BOE Houji Technology (Beijing) Co. Ltd. Associate of the Group
SES Imagotag SA Co. Ltd. Associate of the Group
Subsidiary of associate of the
SES-Imagotag GmbH Co. Ltd. Group
Subsidiary of associate of the
Pervasive Displays Inc Group
Subsidiary of associate of the
Beijing Borcheng Medical Laboratory Co. Ltd. Group
????
1404 Information on other related parties
Name of other related parties Related-party relationship
??
Under the same control of the ultimate
Beijing BOE Investment Development Co. Ltd. holding company
Under the same control of the ultimate
NAURA Technology Group Co. Ltd. holding company
Beijing Zhengdong Electronic Power Group Co. Under the same control of the ultimate
Ltd. holding company
Beijing Dongdian Industrial Development Co. Under the same control of the ultimate
Ltd. holding company
Beijing Naura Microelectronics Equipment Co. Under the same control of the ultimate
Ltd. holding company
Under the same control of the ultimate
Sevenstar Semiconductor Technologies Co. Ltd. holding company
Beijing Zhaowei Technology Development Co. Under the same control of the ultimate
Ltd. holding company
Under the same control of the ultimate
Beijing C&W Intelligent Equipment Co. Ltd. holding company
Under the same control of the ultimate
Beijing Ether Electronics Group Co. Ltd. holding company
Under the same control of the ultimate
Beijing Yansong Economic and Trade Co. Ltd. holding company
Beijing Ripeness Sanyuan Instrumentation Co. Under the same control of the ultimate
Ltd. holding company
Beijing Electronics Holding & SK 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
761 Workshop (Beijing) Technology Under the same control of the ultimate
Development Co. Ltd. holding company
Under the same control of the ultimate
Beijing Smart-Aero Display Technology Co. Ltd. holding company
Beijing Electrical Energy Technology (Jiangsu) Under the same control of the ultimate
Co. Ltd. holding company
Under the same control of the ultimate
Beijing Peony Electronic Group Co. Ltd. holding company
Beijing Electric Control Industry Investment Co. Under the same control of the ultimate
Ltd. holding company
Baic Electronics Holding SK (Jiangsu) Under the same control of the ultimate
Technology Co. Ltd. holding company
Under the same control of the ultimate
Beijing 797 Audio Co. Ltd. holding company
Bei Jing Yan Dong Microelectronic Technology Under the same control of the ultimate
Co. Ltd. holding company
Associate of enterprise that is under the
New Vision Microelectronics (Hong Kong) same control of the ultimate holding
Limited company
Associate of enterprise that is under the
same control of the ultimate holding
Beijing Senju Electronic Materials Co. Ltd. company
Beijing Yizhuang Environmental Technology
Group Co. Ltd. Other related parties
China Minsheng Banking Corp. Ltd. Other related parties
Hefei Construction Investment and Holding Co.Ltd. Other related parties
Beijing Jingcheng Machinery Electric Holding
Co. Ltd. Other related parties
Nexchip Semiconductor Corporation Other related parties
Hefei Visionox Technology Co. Ltd. Other related parties
????
1415 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 2022 ? 2021
????
Purchase of goods 658905000 ? 965818931
Procurement of equipment 155286378 ? 255199826
Receiving services 12843982 ? 24377762
Payment of interest expenses 43423377 ? 20715586
????
Total 870458737 ? 1266112105
????
The Company
Nature of transaction 2022 ? 2021
????
Purchase of goods 32203231 ? 9164606
Receiving services 63840655 ? 249160057
Payment of interest expenses 42314510 ? 19860031
????
Total 138358396 ? 278184694
????
(2) Sale of goods/rendering of services
The Group
Nature of transaction 2022 ? 2021
????
Sale of goods 1168302006 ? 416546796
Rendering of services 12004788 ? 10267108
Income from interest received 23183395 ? 21292904
????
Total 1203490189 ? 448106808
????
142The Company
Nature of transaction 2022 ? 2021
????
Sale of goods 101930 ? 23488144
Rendering of services 4742920134 ? 5561607938
Income from interest received 15398605 ? 17015526
????
Total 4758420669 ? 5602111608
????
(3) Leases
(a) As the lessor
The Group
Lease income Lease income
recognised in recognised in
Type of assets leased 2022 ? 2021
????
Investment properties 7925143 ? 5114048
????
The Company
Lease income Lease income
recognised in recognised in
Type of assets leased 2022 ? 2021
????
Investment properties 65287838 ? 70534069
????
(b) As the lessee
The Group
Lease expense Lease expense
recognised in recognised in
Type of assets leased 2022 ? 2021
????
Fixed assets 2886041 ? 2804351
????
143The Company
Lease expense Lease expense
recognised in recognised in
Type of assets leased 2022 ? 2021
????
Fixed assets 48562349 ? -
?
(4) Funding from related parties
The Company
Name of related party Amount of funding ? Inception date ? Maturity date
??????
Funds received ? ? ? ? ?
??????
Subsidiary of the parent company 2000000000 ? 09/06/2017 ? Long-term
Subsidiary of the parent company 4000000000 ? 09/06/2017 ? Long-term
Subsidiary of the parent company 1000000000 ? 23/12/2016 ? Long-term
Subsidiary of the parent company 200000000 ? 28/07/2017 ? Long-term
Subsidiary of the parent company 1600000000 ? 04/12/2017 ? Long-term
Subsidiary of the parent company 700000000 ? 13/04/2018 ? Long-term
Subsidiary of the parent company 650000000 ? 25/04/2018 ? Long-term
Subsidiary of the parent company 3000000000 ? 27/04/2018 ? Long-term
Subsidiary of the parent company 3000000000 ? 28/05/2018 ? Long-term
Subsidiary of the parent company 2500000000 ? 31/08/2018 ? Long-term
Subsidiary of the parent company 3800000000 ? 19/07/2018 ? Long-term
Subsidiary of the parent company 3500000000 ? 01/08/2018 ? Long-term
Subsidiary of the parent company 1500000000 ? 24/05/2019 ? Long-term
Subsidiary of the parent company 2000000000 ? 27/05/2019 ? Long-term
Subsidiary of the parent company 360000000 ? 24/04/2020 ? Long-term
Subsidiary of the parent company 1300000000 ? 21/05/2019 ? Long-term
Subsidiary of the parent company 500000000 ? 28/05/2019 ? Long-term
Subsidiary of the parent company 500000000 ? 21/05/2019 ? Long-term
Subsidiary of the parent company 1000000000 ? 26/07/2019 ? Long-term
Subsidiary of the parent company 300000000 ? 08/07/2020 ? Long-term
Subsidiary of the parent company 2500000000 ? 06/07/2020 ? Long-term
Subsidiary of the parent company 2000000000 ? 03/07/2020 ? Long-term
Subsidiary of the parent company 1200000000 ? 06/07/2020 ? Long-term
Subsidiary of the parent company 1000000000 ? 20/08/2020 ? Long-term
Subsidiary of the parent company 1700000000 ? 12/10/2020 ? Long-term
Subsidiary of the parent company 3000000000 ? 05/11/2020 ? Long-term
Subsidiary of the parent company 2358000000 ? 07/12/2020 ? Long-term
Subsidiary of the parent company 900000000 ? 11/12/2020 ? Long-term
144Name of related party Amount of funding ? Inception date ? Maturity date
??????
Funds received ? ? ? ? ?
??????
Subsidiary of the parent company 1700000000 ? 28/12/2020 ? Long-term
Subsidiary of the parent company 2300000000 ? 28/12/2020 ? Long-term
Subsidiary of the parent company 1200000000 ? 30/09/2015 ? Long-term
Subsidiary of the parent company 1000000000 ? 09/03/2021 ? Long-term
Subsidiary of the parent company 1000000000 ? 18/03/2021 ? Long-term
Subsidiary of the parent company 4000000000 ? 25/03/2021 ? Long-term
Subsidiary of the parent company 2500000000 ? 30/03/2021 ? Long-term
Subsidiary of the parent company 4500000000 ? 23/06/2021 ? Long-term
Subsidiary of the parent company 500000000 ? 30/06/2021 ? Long-term
Subsidiary of the parent company 1000000000 ? 30/06/2021 ? Long-term
Subsidiary of the parent company 1000000000 ? 06/07/2021 ? Long-term
Subsidiary of the parent company 2000000000 ? 29/12/2021 ? Long-term
Subsidiary of the parent company 2800000000 ? 30/12/2021 ? Long-term
Subsidiary of the parent company 6000000000 ? 30/12/2021 ? Long-term
Subsidiary of the parent company 1500000000 ? 31/12/2021 ? Long-term
Subsidiary of the parent company 1000000000 ? 27/01/2022 ? Long-term
Subsidiary of the parent company 200000000 ? 31/12/2021 ? Long-term
Subsidiary of the parent company 800000000 ? 15/06/2022 ? Long-term
Subsidiary of the parent company 400000000 ? 31/12/2021 ? Long-term
Subsidiary of the parent company 1000000000 ? 31/12/2021 ? Long-term
Subsidiary of the parent company 6500000000 ? 23/08/2022 ? Long-term
Subsidiary of the parent company 1100000000 ? 08/10/2022 ? Long-term
Subsidiary of the parent company 800000000 ? 20/10/2022 ? Long-term
Subsidiary of the parent company 1000000000 ? 25/10/2022 ? Long-term
Subsidiary of the parent company 1000000000 ? 25/10/2022 ? Long-term
Subsidiary of the parent company 200000000 ? 10/11/2022 ? Long-term
Subsidiary of the parent company 650000000 ? 16/03/2021 ? 16/03/2026
??????
Total 95718000000 ? ? ? ?
???
145Name of related party Amount of funding ? Inception date ? Maturity date
??????
Funds provided ? ? ? ? ?
??????
Subsidiary of the parent company 1100000000 ? 30/09/2022 ? Right to request return at any time
Subsidiary of the parent company 1400000000 ? 29/09/2022 ? Right to request return at any time
Subsidiary of the parent company 1700000000 ? 29/09/2022 ? Right to request return at any time
Subsidiary of the parent company 1490000000 ? 21/10/2020 ? Right to request return at any time
Subsidiary of the parent company 200000000 ? 29/10/2020 ? Right to request return at any time
Subsidiary of the parent company 300000000 ? 10/05/2022 ? Right to request return at any time
Subsidiary of the parent company 700000000 ? 07/05/2022 ? Right to request return at any time
Subsidiary of the parent company 200000000 ? 27/06/2022 ? Right to request return at any time
Subsidiary of the parent company 300000000 ? 27/06/2022 ? Right to request return at any time
Subsidiary of the parent company 700000000 ? 29/10/2020 ? Right to request return at any time
Subsidiary of the parent company 1000000000 ? 28/10/2022 ? Right to request return at any time
Subsidiary of the parent company 285000000 ? 24/11/2020 ? Right to request return at any time
Subsidiary of the parent company 473000000 ? 24/11/2020 ? Right to request return at any time
Subsidiary of the parent company 590000000 ? 19/02/2020 ? Right to request return at any time
Subsidiary of the parent company 460000000 ? 19/02/2020 ? Right to request return at any time
Subsidiary of the parent company 200000000 ? 08/07/2021 ? Right to request return at any time
Subsidiary of the parent company 300000000 ? 08/07/2021 ? Right to request return at any time
Subsidiary of the parent company 300000000 ? 08/07/2021 ? Right to request return at any time
Subsidiary of the parent company 50000000 ? 26/01/2022 ? Right to request return at any time
Subsidiary of the parent company 29000000 ? 26/01/2022 ? Right to request return at any time
Subsidiary of the parent company 158000000 ? 26/01/2022 ? Right to request return at any time
Subsidiary of the parent company 123000000 ? 26/01/2022 ? Right to request return at any time
Subsidiary of the parent company 261000000 ? 26/01/2022 ? Right to request return at any time
Subsidiary of the parent company 81000000 ? 26/01/2022 ? Right to request return at any time
Subsidiary of the parent company 90000000 ? 26/01/2022 ? Right to request return at any time
Subsidiary of the parent company 173000000 ? 26/01/2022 ? Right to request return at any time
Subsidiary of the parent company 433000000 ? 26/01/2022 ? Right to request return at any time
Subsidiary of the parent company 20000000 ? 11/08/2022 ? Right to request return at any time
Subsidiary of the parent company 32000000 ? 14/04/2022 ? Right to request return at any time
Subsidiary of the parent company 50000000 ? 11/08/2022 ? Right to request return at any time
Subsidiary of the parent company 50000000 ? 15/07/2022 ? Right to request return at any time
Subsidiary of the parent company 91000000 ? 11/08/2022 ? Right to request return at any time
Subsidiary of the parent company 60000000 ? 15/07/2022 ? Right to request return at any time
Subsidiary of the parent company 151000000 ? 14/04/2022 ? Right to request return at any time
Subsidiary of the parent company 56000000 ? 15/07/2022 ? Right to request return at any time
Subsidiary of the parent company 46000000 ? 15/07/2022 ? Right to request return at any time
Subsidiary of the parent company 26701133 ? 14/04/2022 ? Right to request return at any time
Subsidiary of the parent company 52000000 ? 14/04/2022 ? Right to request return at any time
Subsidiary of the parent company 65000000 ? 14/04/2022 ? Right to request return at any time
Subsidiary of the parent company 300000000 ? 06/04/2022 ? Right to request return at any time
Subsidiary of the parent company 200000000 ? 22/06/2022 ? Right to request return at any time
Subsidiary of the parent company 800000000 ? 22/06/2022 ? Right to request return at any time
Subsidiary of the parent company 300000000 ? 22/06/2022 ? Right to request return at any time
Subsidiary of the parent company 600000000 ? 22/06/2022 ? Right to request return at any time
Subsidiary of the parent company 600000000 ? 22/06/2022 ? Right to request return at any time
Subsidiary of the parent company 400000000 ? 22/06/2022 ? Right to request return at any time
Subsidiary of the parent company 800000000 ? 22/06/2022 ? Right to request return at any time
Subsidiary of the parent company 600000000 ? 22/06/2022 ? Right to request return at any time
Subsidiary of the parent company 500000000 ? 22/06/2022 ? Right to request return at any time
Subsidiary of the parent company 200000000 ? 22/06/2022 ? Right to request return at any time
Subsidiary of the parent company 20000000 ? 16/12/2022 ? Right to request return at any time
Subsidiary of the parent company 50000000 ? 27/03/2015 ? 26/12/2024
Subsidiary of the parent company 30000000 ? 21/01/2016 ? 21/01/2025
Subsidiary of the parent company 200000000 ? 12/10/2020 ? 12/10/2030
??????
Total 19395701133 ? ? ? ?
146(5) Remuneration of key management personnel
The Group and the Company
Item 2022 ? 2021
????
Remuneration of key management personnel RMB 86665000 ? RMB 110629000
????
The remuneration of key management personnel above does not include the one with
respect to share-based payments scheme.
6 Receivables from and payables to related parties
Receivables from related parties
The Group
? Note 2022 ? 2021
Provision for Provision for
Item Book value ? impairment ? Book value ? impairment
????????
Cash at bank and on hand (1) 965569850 ? - ? 1060805464 ? -
Accounts receivable 1070848317 ? 4986221 ? 88954909 ? 4883531
Prepayments 6615367 ? - ? 1118145 ? -
Other receivables 16588534 ? - ? 1901777 ? -
Contract assets 2402974 ? - ? 122743 ? -
????
The Company
? Note 2022 ? 2021
Provision for Provision for
Item Book value ? impairment ? Book value ? impairment
????????
Cash at bank and on hand (1) 8850 ? - ? 6830 ? -
Accounts receivable 4867860690 ? 4315658 ? 4827924553 ? -
Prepayments 146368 ? - ? 165134 ? -
Other receivables 19686877080 ? 16868539 ? 15287017182 ? 2964404
Other non-current assets 1080000000 ? - ? 1740000000 ? -
????
Payables to related parties
The Group
Item Note 2022 ? 2021
????
Accounts payable 179047266 ? 142557107
Advance payments received 188623 ? 961806
Contract liabilities 34164291 ? 3717500
Other payables 182554398 ? 178187139
Non-current liabilities due within one year (2) 6000000 -
Long-term loans (2) 1257250000 ? 1435000000
????
147The Company
Item Note 2022 ? 2021
????
Accounts payable 27646402 ? 18924459
Advance payments received 169459 ? 3212352
Other payables 2921972111 ? 1364404865
Long-term loans (2) 1186250000 ? 1435000000
Other non-current liabilities 96394661805 ? 74506661805
????
(1) The Group's and the Company's cash at bank and on hand were deposit in China
Minsheng Bank Co.
(2) The Group's and the Company's non-current liabilities and long-term borrowings due
within one year are borrowings from China Minsheng Bank Co.
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:
?2022?2021
????
Procurement of equipment 69753978 ? 72274623
????
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 from 2020. The shares for the share
options and restricted share incentive plans are from the Company’s Renminbi A-share
ordinary shares repurchased from secondary market. The plans are presented as follows:
(a) Share option incentive plan
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.
148(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.As at 31 December 2022 the total costs recognised by the Group’s equity-settled
share-based payments in the consolidated financial statement was RMB 699065561
and the accumulated amount of capital reserve paid by equity-settled share-based
payments amounted to RMB 1364808372 (2021: 645945833). In the Company’s
financial statements the Company recognised its long-term equity investment of RMB
534225046 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
164840515 as well as a capital reserve of RMB 699065561.
Based on relevant provisions of the restricted share incentive plan for the service
period if the granted object resigns before the release date the Company will
repurchase the restricted shares that have not been released at the subscription price
of the granted object. Please refer to Note V. 28 (1) for the repurchased obligation set
out in other payables.
149(1) Method for determining the fair value of equity instruments at the grant date is as
follows:
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
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 2021. 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.
150As at 31 December 2022 and 31 December 2021 the Group’s asset-liability ratios are as
follows:
?2022?2021
????
Asset-liability ratio 51.96% ? 51.72%
????
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 2022 ? 2021
????
Contracts entered into but not performed or partially
performed 31109629604 ? 36353906810
Contracts authorized but not entered into 100442930917 ? 84007549386
????
Total 131552560521 ? 120361456196
????
The Group’s contracts authorised but not entered into mainly included the fixed assets that
Fuzhou BOE Display Technology Co. Ltd. Beijing BOE Chuangyuan Technology Co. Ltd.Chongqing BOE Display Technology Co. Ltd. BOE Healthcare Investment & Management
Co. Ltd. Qingdao BOE Optoelectronics Technology Co. Ltd. BOE Wisdom IOT
Technology Co. Ltd. Chongqing BOE Smart Technology Co. Ltd. BOE Varitronix Limited
and BOE Mled Technology Co. Ltd. planned to purchase in subsequent years and project
equipment that the Group planned to purchase in subsequent years.The Company 2022 ? 2021
????
Contracts entered into but not performed or partially
performed 28350937574 ? 25226123138
????
The Company’s contracts entered into but not performed or partially performed mainly
included guaranteed investments in Beijing BOE Chuangyuan Technology Co. Ltd. BOE
Healthcare Investment & Management Co. Ltd. BOE Smart Technology Co. Ltd. and
Yunnan Invensight Optoelectronics Technology Co. Ltd.
1512 Guarantee
(1) The Group as the guarantor
As at 31 December 2022 the Group did not have guarantees provided for external
enterprises.
(2) The Company as the guarantor
At 31 December 2022 Chengdu Optoelectronics pledged its land use right with carrying
amount of RMB 39337190 machinery and equipment with carrying amount of RMB
21397326923 and plants and buildings with carrying amount of RMB 2324144465 as
collaterals to obtain long-term loans of USD 578700000 and RMB 12209380000. The
Company provides joint-liability guarantee for the above loans.At 31 December 2022 Yuansheng Optoelectronics pledged its land use rights with carrying
amount of RMB 43484881 machinery and equipment with carrying amount of RMB
5459351367 and plant and buildings with carrying amount of RMB 2018273173 as
collaterals to obtain long-term loans of RMB 1186370000. The Company provides joint-
liability guarantee for the above loans.At 31 December 2022 Chongqing BOE Display pledged its land use right with carrying
amount of RMB 159786737 as collaterals to obtain long-term loans of USD 1034000000
and RMB 5226000000. 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 4174159 and JPY 5451000.At 31 December 2022 Fuzhou BOE pledged its land use rights with carrying amount of RMB
198149305 machinery and equipment with carrying amount of RMB 6282771779 and
plant and buildings with carrying amount of RMB 2911886447 as collaterals to obtain long-
term loans of USD 219000000 and RMB 815740000. The Company provides joint-liability
guarantee for the above loans.At 31 December 2022 Hefei Display Technology pledged its land use right with carrying
amount of RMB 273876498 with machinery and equipment carrying amount of RMB
12507752146 and plants and buildings with carrying amount of RMB 3489590026 as
collaterals to obtain long-term loans of USD 585090000 and RMB 3374494080. The
Company provides joint-liability guarantee for the above loans.At 31 December 2022 Mianyang BOE pledged its land use rights with carrying amount of
RMB 372381841 machinery and equipment with carrying amount of RMB 24533264774
and plant and buildings with carrying amount of RMB 4761337214 as collaterals to obtain
long-term loans of USD 694730000 and RMB 13579379340. The Company provides
joint-liability guarantee for the above loans.
152At 31 December 2022 Wuhan BOE pledged its land use right with carrying amount of RMB
244216967 machinery and equipment with carrying amount of RMB 22797889738 and
plants and buildings with carrying amount of RMB 4741134307 as collaterals to obtain
long-term loans of USD 1181500000 and RMB 6956330000. 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 965950000.At 31 December 2022 Chengdu BOE Hospital Co. Ltd. obtain long-term loans of RMB
1403092146. The Company provides joint-liability guarantee for the above loans.
At 31 December 2022 Nanjing BOE Display pledged its plant and buildings with carrying
amount of RMB 4052329316 as collaterals to obtain long-term loans of USD 65440000.The Company guarantees 60% of the above loan (i.e. USD 39264000) by means of a
counter guarantee with joint-liability guarantee. Nanjing BOE Display pledged its machinery
and equipment with carrying amount of RMB 319824268 as collaterals to obtain finance
lease loans of RMB 107500000. 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 900000000 and long-term borrowings of
RMB 1200000000.XIV . Segment reporting
1 Segment reporting considerations
The Group management reviews the operation performance and allocates resources
according to the business segments below.(a) Display business — The display business integrates design and manufacturing of
display devices and strives to offer TFT-LCD AMOLED Microdisplay and other
intelligent interface devices. This business focuses on providing high-quality
smartphones tablet PCs laptops monitors TVs vehicles electronic shelf label (ESL)
industrial control domiciliary medical applications wearable devices interactive
whiteboards splice displays business devices VR/AR devices and other display
devices for customers.(b) IInternet 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
industrial parks visual arts smart administration smart transportation etc.
153(c) Sensor business — 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 intelligence visions 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 business — 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 the usage of outdoor display commercial display transparent display
special display and other scenarios.(e) Smart medicine and engineering business — The smart medicine and engineering
provides professional healthcare services and features the innovative integration of
medical and engineering by integrating engineering technology and medical science.Adhering to people-centred thought this business focuses on family community and
hospital connecting testing equipment medical personnel and costumers by health IoT
platform constructing intelligent health administrative ecosystem providing customers
with a "prevision-treatment-nursing" full-chained health services.(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.
1542 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.?2022
Smart medicine &
IoT innovation engineering
? Display business ? business ? Sensor business ? MLED business ? business ? Others ? Offsetting ? Total
????????????????
Operating income 157949486684 ? 27245456382 ? 306552648 ? 846820654 ? 2203142669 ? 11232889896 ? (21370617754) ? 178413731179
Operating costs 145362979605 ? 24666540176 ? 241869035 ? 864618690 ? 1809802648 ? 4446526834 ? (19861770836) ? 157530566152
?
?2021
Smart medicine &
IoT innovation engineering
? Display business ? business ? Sensor business ? MLED business ? business ? Others ? Offsetting ? Total
????????????????
Operating income 203938462632 ? 28379332761 ? 216187403 ? 458249184 ? 1846551592 ? 11308029354 ? (25111094914) ? 221035718012
Operating costs 150165560834 ? 25169654631 ? 166800549 ? 444702497 ? 1370997955 ? 3100671887 ? (23119562572) ? 157298825781
???
The Group develops various businesses by using common assets and liabilities and therefore it could not analyse assets and liabilities of each
reportable segment respectively by business.
1553 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:
Operating income from external
? customers
?2022?2021
????
Mainland China 74124463690 ? 95015382254
Other Asian countries and regions 63351896814 ? 96677882907
Europe 5745261109 ? 5478685804
America 35121526346 ? 23770495392
Other regions 70583220 ? 93271655
????
Total 178413731179 ? 221035718012
????
(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 one customer (2021: None) the operating income from which is over 10% of
the Group’s total operating income (2021: Nil) in display business. The operating income
from the customer which represents approximately 16% of the Group’s total operating
income is summarised in the table below:
Customer 2022 2021
RMB RMB
Customer 1 28511004302 *
Note: * means that annual income from the customer accounted for less than 10%.
156XV. Notes to the Company’s financial statements
1 Accounts receivable
(1) The Company’s accounts receivable by customer type:
31 December 31 December
?2022?2021
????
Amounts due from related parties 4867860690 ? 4827924553
Amounts due from other customers 4289987 ? 5195374
????
Sub-total 4872150677 ? 4833119927
????
Less: Provision for bad and doubtful debts 8485408 ? 4264652
????
Total 4863665269 ? 4828855275
????
(2) The ageing analysis of accounts receivable is as follows:
Ageing 2022 ? 2021
????
Within 1 year (inclusive) 3813706724 ? 4506053150
Over 1 year but within 2 years (inclusive) 742074869 ? 184286182
Over 2 years but within 3 years (inclusive) 182932357 ? 141556611
Over 3 years 133436727 ? 1223984
????
Sub-total 4872150677 ? 4833119927
????
Less: Provision for bad and doubtful debts 8485408 ? 4264652
????
Total 4863665269 ? 4828855275
????
The ageing is counted starting from the date when accounts receivable are recognised.
157(3) Accounts receivable by provisioning method
?2022
? Book value ? Provision for impairment ? ?
Percentage Percentage Carrying
Category Amount ? (%) ? Amount ? (%) ? amount
??????????
Individual assessment ? ? ? ? ? ? ? ? ?
- Customers with high credit risk 8406011 ? 0% ? 8406011 ? 100% ? -
- Customers with low credit risk 4863603112 ? 100% ? - ? 0% ? 4863603112
??????????
Collective assessment ? ? ? ? ? ? ? ? ?
- Customers with moderate credit risk 141554 ? 0% ? 79397 ? 56% ? 62157
??????????
Total 4872150677 ? 100% ? 8485408 ? 0% ? 4863665269
????
?2021
? Book value ? Provision for impairment ? ?
Percentage Percentage Carrying
Category Amount ? (%) ? Amount ? (%) ? 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
???
(4) Additions and recoveries of provision for bad and doubtful debts during the year:
?2022?2021
????
Balance at the beginning of the year 4264652 ? 20301553
Charge during the year 4315658 ? 135218
Recoveries during the year (94902) ? (136)
Written-off during the year - ? (16171983)
????
Balance at the end of the year 8485408 ? 4264652
????
158(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB 4466867289
amounting to 92% 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.
2 Other receivables
31 December 31 December
? Note 2022 ? 2021
?????
Dividends receivable (1) 333352986 ? 219715564
Others (2) 19544792389 ? 15230115046
?????
Total ? 19878145375 ? 15449830610
????
(1) Dividends receivable
31 December 31 December
?2022?2021
????
Beijing Matsushita Colour CRT Co. Ltd. 333352986 ? 214240861
BOE (Korea) Co.Ltd. - ? 5474703
????
Total 333352986 ? 219715564
???
159(2) Others
(a) The Company’s other receivables by customer type:
31 December 31 December
Customer type 2022 ? 2021
????
Amounts due from subsidiaries 19338630021 ? 15065482829
Amounts due from other related parties 14894073 ? 1818789
Amounts due from other customers 211976091 ? 169615338
????
Sub-total 19565500185 ? 15236916956
????
Less: Provision for bad and doubtful debts 20707796 ? 6801910
????
Total 19544792389 ? 15230115046
????
(b) The Company’s other receivables by currency:
As at 31 December 2022 and 31 December 2021 there is no other receivables in foreign
currency.(c) The ageing analysis of other receivables of the Company is as follows:
?2022?2021
????
Within 1 year (inclusive) 15304792246 ? 5896130713
Over 1 year but within 2 years (inclusive) 2669590657 ? 6954523850
Over 2 years but within 3 years (inclusive) 1515874424 ? 2348713430
Over 3 years 75242858 ? 37548963
????
Sub-total 19565500185 ? 15236916956
????
Less: Provision for bad and doubtful debts 20707796 ? 6801910
????
Total 19544792389 ? 15230115046
????
The ageing is counted starting from the date when other receivables are recognised.
160(d) Other receivables by provisioning method
?2022
? Book value ? Provision for impairment ? ?
Percentage Percentage
Category Amount ? (%) ? Amount ? (%) ? Carrying amount
??????????
Individual assessment 20707796 ? 0% ? 20707796 ? 100% ? -
??????????
Collective assessment 19544792389 ? 100% ? - ? 0% ? 19544792389
??????????
Total 19565500185 ? 100% ? 20707796 ? 0% ? 19544792389
???
?2021
? Book value ? Provision for impairment ? ?
Percentage Percentage
Category Amount ? (%) ? Amount ? (%) ? Carrying amount
??????????
Individual assessment 6801910 ? 0% ? 6801910 ? 100% ? -
??????????
Collective assessment 15230115046 ? 100% ? - ? 0% ? 15230115046
??????????
Total 15236916956 ? 100% ? 6801910 ? 0% ? 15230115046
??
(e) Movements of provisions for bad and doubtful debts
?2022?2021
????
Balance at the beginning of the year 6801910 ? 49939652
Charge for the year 13905886 ? 5112258
Written-off during the year - ? (48250000)
????
Balance at the end of the year 20707796 ? 6801910
????
161(f) Other receivables categorised by nature
Nature of other receivables Note 2022 ? 2021
????
Transaction amount (i) 19338630021 ? 15065482829
Others 226870164 ? 171434127
????
Sub-total 19565500185 ? 15236916956
????
Less: Provision for bad and doubtful debts 20707796 ? 6801910
????
Total 19544792389 ? 15230115046
????
(i) As of December 31 2022 and December 31 2021 the Company's current accounts
mainly consisted of loans receivable from subsidiaries.(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 14977867884 in total most of which are amounts due to/from
related parties within the Group. No provision is made for bad and doubtful debts after
assessment.
3 Long-term equity investments
(1) The Company’s long-term equity investments by category:
?2022?2021
????
Investments in subsidiaries 211178767516 ? 207777846290
Investments in associates and joint ventures 3162185504 ? 3199974945
????
Sub-total 214340953020 ? 210977821235
????
Less: Provision for impairment 32000000 ? 32000000
????
Total 214308953020 ? 210945821235
????
The closing balance of long-term equity investments represents the Company's impairment
provision for its subsidiary Beijing BOE Vacuum Technology Co. Ltd. in the prior year of
RMB 32000000.
162(2) Investments in subsidiaries:
Balance of Balance of
provision for provision for
impairment at impairment at
Balance at the Decrease during Balance at the end of the beginning the end of the
Subsidiary beginning of the year ? Increase during the year ? the year ? the year ? of the year ? year
Increase in Share-based
? ? ? investments ? payments ? ? ? ? ? ? ? ?
??????????????
Beijing BOE Optoelectronics Technology Co.Ltd. 4198742954 ? - ? 14526251 ? (4172288084) ? 40981121 ? - ? -
Chengdu BOE Optoelectronics Technology Co.Ltd. 25055603860 ? - ? 53356143 ? - ? 25108960003 ? - ? -
Hefei BOE Optoelectronics Technology Co. Ltd. 9032079808 ? - ? 31042976 ? - ? 9063122784 ? - ? -
Beijing BOE Display Technology Co. Ltd. 17520168739 ? - ? 127142375 ? - ? 17647311114 ? - ? -
Hefei Xinsheng Optoelectronics Technology Co.Ltd. 20122733179 ? - ? 33217425 ? - ? 20155950604 ? - ? -
Ordos Yuansheng Optoelectronics Co. Ltd. 11808874625 ? - ? 5433063 ? - ? 11814307688 ? - ? -
Chongqing BOE Optoelectronics Technology
Co. Ltd. 19584823404 ? - ? 14834363 ? - ? 19599657767 ? - ? -
Fuzhou BOE Optoelectronics Technology Co.Ltd. 14687793781 ? - ? 13578397 ? - ? 14701372178 ? - ? -Beijing BOE Video Technology Co. Ltd. (“BOEVideo”) 4094913328 ? 330595800 ? 1848592 ? - ? 4427357720 ? - ? -
Beijing BOE Vacuum Electronics Co. Ltd. 19577537 ? - ? 355992 ? - ? 19933529 ? - ? -
Beijing BOE Vacuum Technology Co. Ltd. 32000000 ? - ? - ? - ? 32000000 ? 32000000 ? 32000000
Beijing Yinghe Century Co. Ltd. 342184564 ? - ? 10213512 ? - ? 352398076 ? - ? -
BOE Optical Science and technology Co. Ltd. 662168271 ? - ? 5309002 ? - ? 667477273 ? - ? -
BOE Hyundai LCD (Beijing) Display Technology
Co. Ltd. 36624841 ? - ? 5361914 ? - ? 41986755 ? - ? -
BOE (Hebei) Mobile Technology Co. Ltd. 1354940194 ? - ? 1343361 ? - ? 1356283555 ? - ? -
Beijing BOE Multimedia Technology Co. Ltd. 400000000 ? - ? - ? - ? 400000000 ? - ? -
Beijing BOE Energy Technology Co. Ltd. 854286893 ? - ? 3294489 ? - ? 857581382 ? - ? -
Beijing BOE Life Technology Co. Ltd. 10000000 ? - ? - ? - ? 10000000 ? - ? -
Beijing Zhongxiangying Technologies Co. Ltd. 100578919 ? - ? 1688249 ? - ? 102267168 ? - ? -
BOE Semi-conductor Co. Ltd. 9450000 ? - ? - ? - ? 9450000 ? - ? -
BOE Optoelectronics Holding Co. Ltd. 3211961538 ? 275723224 ? - ? - ? 3487684762 ? - ? -
BOE Healthcare Investment & Management Co.Ltd. 7283180411 ? 540000000 ? 893030 ? - ? 7824073441 ? - ? -
Hefei BOE Display Technology Co. Ltd. 2020815508 ? - ? 20764412 ? - ? 2041579920 ? - ? -
Beijing BOE Technology Development Co. Ltd. 1724087 ? - ? 788267 ? - ? 2512354 ? - ? -
BOE Wisdom IOT Technology Co. Ltd. 13441936 ? - ? 14954155 ? - ? 28396091 ? - ? -
Hefei BOE Zhuoyin Technology Co. Ltd. 602251996 ? - ? 2452167 ? - ? 604704163 ? - ? -
Beijing BOE Real Estate Co. Ltd. 8568773 ? - ? 911991 ? - ? 9480764 ? - ? -
Beijing BOE Marketing Co. Ltd. 31014071 ? - ? 559425 ? - ? 31573496 ? - ? -
BOE (Korea) Co. Ltd. 3900987 ? - ? 3194914 ? - ? 7095901 ? - ? -
Yunnan Invensight Optoelectronics Technology
Co. Ltd. (formerly known as Kunming BOE
Display Technology Co. Ltd.) 1514944989 ? - ? 3652290 ? - ? 1518597279 ? - ? -
Mianyang BOE Optoelectronics Technology Co.Ltd. 22329872372 ? - ? 12400963 ? - ? 22342273335 ? - ? -
Beijing BOE Sensing Technology Co. Ltd. 221944202 ? 4263288084 ? 10873303 ? - ? 4496105589 ? - ? -
Wuhan BOE Optoelectronics Technology Co.Ltd. 12511267959 ? - ? 13217462 ? - ? 12524485421 ? - ? -
Chongqing BOE Display Technology Co. Ltd. 9085662024 ? 218750000 ? 8167786 ? - ? 9312579810 ? - ? -
Fuzhou BOE Display Technology Co. Ltd. 22454088 ? - ? 382638 ? - ? 22836726 ? - ? -
Beijing Matsushita Colour CRT Co. Ltd. 2527690 ? - ? 2623935 ? - ? 5151625 ? - ? -
BOE Innovation Investment Co. Ltd. 2964000000 ? 234000000 ? 191319 ? - ? 3198191319 ? - ? -
Hefei BOE Xingyu Technology Co. Ltd. 335731430 ? 169364156 ? 1271650 ? - ? 506367236 ? - ? -
BOE Education Technology Co. Ltd. 27881265 ? - ? 1378009 ? - ? 29259274 ? - ? -
Dongfang Chengqi (Beijing) Business
Technology Co. Ltd. 8000000 ? 2000000 ? 3786416 ? - ? 13786416 ? - ? -
BOE Smart Technology Co. Ltd. 1822000000 ? 250000000 ? - ? - ? 2072000000 ? - ? -
Nanjing BOE Display Technology Co. Ltd. 5591893772 ? - ? 6736025 ? - ? 5598629797 ? - ? -
Chengdu BOE Display Sci-tech Co. Ltd.
(Chengdu Display Sci-tech) 7550673783 ? - ? 6697855 ? - ? 7557371638 ? - ? -
BOE Mled Technology Co. Ltd. 600366251 ? 700000000 ? 12427674 ? - ? 1312793925 ? - ? -
BOE Environmental Energy Technology Co.Ltd. - ? 50000000 ? - ? - ? 50000000 ? - ? -
Chengdu BOE Display Technology Co. Ltd. - ? 5263000 ? - ? - ? 5263000 ? - ? -
Others* 84222261 ? - ? 83353256 ? - ? 167575517 ? - ? -
??????????????
Total 207777846290 ? 7038984264 ? 534225046 ? (4172288084) ? 211178767516 ? 32000000 ? 32000000
????
* Others are the equity incentive funds paid for subsidiaries of the subsidiaries of the Group to
be accrued.For information about the major subsidiaries of the Company refer to Note VII. 1.
163(3) Investments in associates:
? ? ? Movements during the year ? ? ? ?
Investment Declared Balance of
Balance at the (loss) / income Other distribution of provision for
beginning of the Increase in Decrease in under equity comprehensive Other equity cash dividends or Balance at the impairment at the
Investee year ? investments ? investments ? method ? income ? movements ? profits ? end of the year ? end of the year
??????????????????
Erdos BOE Energy Investment Co. Ltd. 76107007 ? 60800000 ? - ? (447397) ? - ? - ? - ? 136459610 ? -
Beijing Xindongneng Investment Fund
(Limited Partnership) 2088917867 ? - ? (129798594) ? 241130621 ? (61062079) ? - ? (104317491) ? 2034870324 ? -
Beijing Innovation Industry Investment Co.Ltd. 207564573 ? - ? - ? 15651980 ? - ? - ? - ? 223216553 ? -
Beijing Electric Control Industry Investment
Co. Ltd. 231777557 ? 21234700 ? - ? (2556780) ? 7694430 ? - ? - ? 258149907 ? -
Beijing BOE Art Cloud Technology Co. Ltd. 215529981 ? - ? - ? 9145156 ? - ? 134476619 ? - ? 359151756 ? -
Chengdu BOE Automotive Electronics Co.Ltd. (formerly known as Chengdu BOE Motor
Electronics Co. Ltd) 200000000 ? - ? (200000000) ? - ? - ? - ? - ? - ? -
Others 180077960 ? - ? (87070668) ? 65938280 ? 63317 ? 6910177 ? (15581712) ? 150337354 ? -
??????????????????
?3199974945?82034700?(416869262)?328861860?(53304332)?141386796?(119899203)?3162185504?-
????
1644 Deferred tax assets/deferred tax liabilities
? 31 December 2022 ? 31 December 2021
Deductible/ Deductible/
(taxable) Deferred tax (taxable)
temporary assets/ temporary Deferred tax
Items differences ? (liabilities) ? differences ? assets/(liabilities)
????????
Deferred tax assets: ? ? ? ? ? ? ?
Provision for impairment of assets 84310502 ? 12646575 ? 66183860 ? 9927579
Changes in fair value of
investments in other equity
instruments 142547604 ? 21382141 ? 139523200 ? 20928480
Depreciation of fixed assets 181992613 ? 27298892 ? 156677700 ? 23501655
Government grant 143385420 ? 21507813 ? 209807147 ? 31471072
Others 38342471 ? 5751371 ? 59527066 ? 8929060
????????
Sub-total 590578610 ? 88586792 ? 631718973 ? 94757846
????????
Amount offset ? ? (88586792) ? ? ? (94757846)
????????
Balance after offsetting ? ? - ? ? ? -
????????
Deferred tax liabilities: ? ? ? ? ? ? ?
Technology royalty receivable
from subsidiaries (1250000000) ? (187500000) ? (2050000000) ? (307500000)
Others (87160432) ? (13074064) ? (87160432) ? (13074064)
????????
Sub-total (1337160432) ? (200574064) ? (2137160432) ? (320574064)
????????
Amount offset ? ? 88586792 ? ? ? 94757846
????????
Balance after offsetting ? ? (111987272) ? ? ? (225816218)
????
5 Other payables
? Note 2022 ? 2021
?????
Dividends payable ? 6410514 ? 6561972
Others (1) 4242980632 ? 2874322796
?????
Total ? 4249391146 ? 2880884768
????
165(1) Others
(a) The Company’s other payables by category are as follows:
? Note 2022 ? 2021
?????
Amounts due to/from
subsidiaries ? 2912284353 ? 1364404865
Repurchase obligation of
restricted shares V.39 753440228 ? 835215390
Purchase of projects equipment
and intangible assets ? 405997313 ? 462535293
Others ? 171258738 ? 212167248
?????
Total ? 4242980632 ? 2874322796
????
(b) The Company’s other payables by currency:
?2022?2021
Amount in
Amount in Exchange RMB/RMB original Exchange RMB/RMB
? original currency ? rate ? equivalents ? currency ? rate ? equivalents
????????????
RMB ? ? ? ? 2182655332 ? ? ? ? ? 2536057636
USD 295816014 ? 6.9646 ? 2060240211 ? 52998757 ? 6.3757 ? 337904175
EUR 11463 ? 7.4229 ? 85089 ? 50000 ? 7.2197 ? 360985
????????????
Total ? ? ? ? 4242980632 ? ? ? ? ? 2874322796
????
1666 Long-term loans
?2022?2021
Credited/ Credited/
? ? ? collateralised ? ? ? collateralised
guaranteed/ guaranteed/
? RMB ? pledged ? RMB ? pledged
????????
Bank loans ? ? ? ? ? ? ?
- RMB 42222030392 ? Credited ? 43079530231 ? Credited
Less: Long-term loans due within one
year 2664530392 ? Credited ? 10871030231 ? Credited
????????
Total 39557500000 ? ? ? 32208500000 ? ?
????
The interest rate of RMB long-term loans for the Company ranged from 0% to 3.53% in 2022
(2021: 0% to 3.77%).
7 Other non-current liabilities
31 December 31 December
Item 2022 ? 2021 ?
?????
Payables to related parties 96394661805 ? 74506661805 ?
As of December 31 2022 and December 31 2021 the Company's payables to related
parties mainly consisted of loans payables from subsidiaries.
8 Capital reserve
Items Share premium ? Other capital reserves ? Total
??????
Balance at the beginning of the year 53751381484 ? (153348332) ? 53598033152
Add: Equity-settled share-based payments - ? 699065561 ? 699065561
Other movements in equity of associates - ? 141386796 ? 141386796
Cancellation of treasury shares (641811942) ? - ? (641811942)
Others (42952736) ? (60093618) ? (103046354)
??????
Balance at the end of the year 53066616806 ? 627010407 ? 53693627213
????
1679 Other comprehensive income
? ? ? Movements during the year ? ?
Less: Transfer Less: Transfer of
of other other
Balance at the comprehensive comprehensive
beginning of the Before-tax Less: Income tax income to profit income to retained Balance at the
Item year ? amount ? expense ? or loss ? earnings ? end of the year
????????????
Items that will not be reclassified to profit or
loss 89258107 ? (56392053) ? (453661) ? - ? 32873780 ? 445935
Including: Other comprehensive income
recognised under equity method 207852822 ? (53367649) ? - ? - ? 32873780 ? 121611393
Changes in fair value of
investments in other equity
instruments (118594715) ? (3024404) ? (453661) ? - ? - ? (121165458)
Items that may be reclassified to profit or
loss (233457) ? 63317 ? - ? (64550) ? - ? (105590)
????????????
Total 89024650 ? (56328736) ? (453661) ? (64550) ? 32873780 ? 340345
???
10 Retained earnings
Item 2022 ? 2021
????
Retained earnings at the beginning of the year 11950975927 ? 11954088031
Add: Net profits for the year 3481863512 ? 4396496566
Less: Appropriation for statutory surplus reserve 348186351 ? 439649657
Interest on holders of other equity instruments 530695890 ? 533600000
Dividends to ordinary shares 7958923130 ? 3476073919
Transfer of other comprehensive income to
retained earnings (29586402) ? (49714906)
????
Retained earnings at the end of the year 6624620470 ? 11950975927
????
11 Operating income and operating costs
?2022?2021
Item Income ? Cost ? Income ? Cost
????????
Principal activities 4826443711 ? 9746176 ? 5664683841 ? 8880161
Other operating activities 46885004 ? 334092 ? 52314193 ? 7579293
????????
Total 4873328715 ? 10080268 ? 5716998034 ? 16459454
????????
Including: Revenue from contracts 4758053462 417034 ? 5594507267 ? 6773342
with customers ?
Other income 115275253 ? 9663234 ? 122490767 ? 9686112
16812 Investment income
?2022?2021
????
Income from long-term equity investments
accounted for using the cost method 1221116853 ? 1841946602
Income from long-term equity investments
accounted for using the equity method 328861860 ? 864640400
Investment income from disposal of long-term
equity
investments 30000000 ? 45527110
Dividend income from investments in other equity
instruments 206209 ? 3554579
Including: Dividend income from investments in
other equity instruments held at the balance
sheet date 206209 ? 3554579
Others 353903009 ? -
????
Total 1934087931 ? 2755668691
????
16913 Income tax expenses
? Note 2022 ? 2021
?????
Current tax expense for the period based
on tax law and regulations ? 315456182 ? 418134244
Changes in deferred tax assets/liabilities (1) (113375285) ? (157278240)
?????
Total ? 202080897 ? 260856004
????
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
?2022?2021
????
Origination and reversal of temporary differences (113375285) ? (157278240)
???
(2) Reconciliation between income tax expenses and accounting profit:
Item 2022 ? 2021
????
Profit before taxation 3683944409 ? 4657352570
Expected income tax expense at tax rate of 15% 552591661 ? 698602886
Add: Non-deductible expenses 32425844 ? 22551281
Non-taxable income (253782990) ? (362122686)
Tax deduction for R&D activities (129158755) ? (107936270)
Others 5137 ? 9760793
????
Income tax expenses 202080897 ? 260856004
????
17014 Supplementary information on cash flow statement
(1) Supplement to the cash flow statement
?2022?2021
????
(a) Reconciliation of net profit to cash flows from
operating activities: ? ? ?
????
Net profit 3481863512 ? 4396496566
Add: Credit losses 18126642 ? 5247340
Depreciation of fixed assets investment
properties and right-of-use assets 198186954 ? 186180161
Amortisation of intangible assets 205316168 ? 175887643
Amortisation of long-term deferred
expenses 53563810 ? 74101005
Loss on disposal of fixed assets
intangible assets and other long-term
assets - ? 773327
Losses from scrapping of fixed assets 11563 ? -
Financial expenses 572555726 ? 796624497
Investment income (1934087931) ? (2755668691)
Share-based payments 164840515 ? 139972018
Change in deferred income (916302566) ? (910723593)
Changes in deferred tax assets and
liabilities (113828946) ? (159881386)
Decrease in gross inventories 787291 ? 2769045
Decrease / (increase) in operating
receivables 780128458 ? (83241004)
Increase / (decrease) in operating
payables 1173595580 ? (1164437376)
????
Net cash inflow from operating activities 3684756776 ? 704099552
????
171(b) Net changes in cash and cash equivalents: ? ? ?
?2022?2021
????
Cash and cash equivalents at the end of the
year 7111879033 ? 5599937349
Less: Cash and cash equivalents at the
beginning of the year 5599937349 ? 4360065216
????
Net increase in cash and cash equivalents 1511941684 ? 1239872133
????
(2) Details of cash and cash equivalents
?2022?2021
????
Cash on hand 13361 ? 12554
Bank deposits available on demand 7111658528 ? 5527470074
Other monetary funds available on demand 207144 ? 72454721
????
Closing balance of cash and cash equivalents 7111879033 ? 5599937349
????
Note: Cash and cash equivalents disclosed above exclude other monetary fund with
restricted usage.
172XVI. Extraordinary gains and losses in 2022
??2022?2021
?????
Investment income from disposal of long-term
equity investments ? 829872568 ? 37327797
Other income from long-term equity investments 4620534865 -
Losses from disposal of non-current assets ? (4908339) ? 136846803
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) ? 5458665272 ? 2077537306
Changes in fair value of financial assets held for
trading and investment income from disposal of
financial assets held for trading ? 275498559 ? 121656142
Reversal of provision for bad and doubtful debts of
receivables assessed on an individual basis ? 18395999 ? 20304301
Other non-operating income and expenses
besides items above ? 90115764 ? 90587512
Less: Tax effect ? 133580776 ? 191362477
?????
Total ? 11154593912 ? 2292897384
?????
Including: Extraordinary gains affecting net profit
of equity shareholders of the Company ? 9779529951 ? 1893395748
Extraordinary gains affecting net profit
of equity shareholders of the non-
controlling shareholders 1? 375063961 ? 399501636
???
Note: Extraordinary gain and loss item listed above are presented in the amount before
taxation.
173XVII. Return on net assets and earnings per shareIn accordance with “Regulation on the Preparation of Information Disclosures by CompaniesIssuing Securities No.9 – Calculation and Disclosure of the Return on Net Assets andEarnings 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 5.45% ? 0.19 ? Not applicable
Net profit excluding extraordinary gain and
loss attributable to the Company’s ordinary
equity shareholders (2.21%) ? (0.08) ? Not applicable
????
1 Calculation of earnings per share
(1) Basic earnings per share
For calculation of the basic earnings per share refer to Note V.57.
(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:
?2022?2021
????
Consolidated net profit attributable to ordinary
shareholders of the Company 6955656068 ? 25395917610
Extraordinary gains and losses attributable to
ordinary shareholders of the Company 9779529951 ? 1893395748
Consolidated net (loss) / profit excluding
extraordinary gain and loss attributable to the
Company’s ordinary equity shareholders (2823873883) ? 23502521862
Weighted average number of ordinary shares
outstanding 37502641911 ? 35704986088
Basic earnings per share excluding extraordinary
gain and loss (RMB/share) (0.08) ? 0.66
???
1742 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:
?2022?2021
????
Consolidated net profit attributable to ordinary
shareholders of the Company 6955656068 ? 25395917610
Weighted average amount of consolidated net
assets 127513376950 ? 106139286422
Weighted average return on net assets 5.45% ? 23.93%
???
Calculation of weighted average amount of consolidated net assets is as follows:
?2022?2021
????
Consolidated net assets at the beginning of the
year 129057243520 ? 89165346609
Effect of consolidated net profit attributable to
ordinary shareholders of the Company 3477828034 ? 12697958805
Effect of non-public issuance of shares - ? 6623170611
Effect of repurchase of treasury shares (495230613) ? (594867425)
Distribution of profits to ordinary shareholders (4626435310) ? (1738036960)
Effect of change in shareholding ratio of
subsidiaries 374012026 ? (426455629)
Effect of movements in amounts attributable to
ordinary shareholders of the Company (274040707) ? 412170411
????
Weighted average amount of consolidated net
assets 127513376950 ? 106139286422
???
(2) Weighted average return on net assets excluding extraordinary gains and losses
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:
?2022?2021
????
Consolidated net (loss) / profit excluding
extraordinary gain and loss attributable to the
Company’s ordinary equity shareholders (2823873883) ? 23502521862
Weighted average amount of consolidated net
assets 127513376950 ? 106139286422
Weighted average return on net assets excluding
extraordinary gain and loss (2.21%) ? 22.14%
???
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