京东方B:2022年半年度报告（英文版）

INTERIM REPORT 2022

August 2022

1Part I Important Notes Table of Contents and Definitions

The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors

supervisors and senior management of BOE Technology Group Co. Ltd. (hereinafter referred

to as the “Company”) hereby guarantee the factuality accuracy and completeness of the

contents of this Report and its summary and shall be jointly and severally liable for any

misrepresentations misleading statements or material omissions therein.Mr. Chen Yanshun the Company’s legal representative Mr. Gao Wenbao President Ms. Yang

Xiaoping Chief Financial Officer and Mr. Teng Jiao head of the financial department

(equivalent to financial manager) hereby guarantee that the Financial Statements carried in

this Report are factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report and

its summary.Any plans for the future development strategies and other forward-looking statements

mentioned in this Report and its summary shall NOT be considered as absolute promises of the

Company to investors. Therefore investors are reminded to exercise caution when makinginvestment decisions. For further information see “(X) Risks Facing the Company andCountermeasures” in Part III herein.The Company has no interim dividend plan either in the form of cash or stock.This Report and its summary have been prepared in both Chinese and English. Should there

be any discrepancies or misunderstandings between the two versions the Chinese versions shall

prevail.

2Table of Contents

Part I Important Notes Table of Contents and Defin... 2

Part II Corporate Information and Key Financial In... 6

Part III Management Discussion and Analysis ........ 10

Part IV Corporate Governance ....................... 25

Part V Environmental and Social Responsibility ..... 28

Part VI Significant Events ......................... 33

Part VII Share Changes and Shareholder Information.. 47

Part VIII Preferred Shares ......................... 57

Part IX Bonds ...................................... 58

Part X Financial Statements ........................ 62

3BOE Technology Group Co. Ltd. Interim Report 2022

Documents Available for Reference

(I) The financial statements signed and sealed by the Company’s legal representative President Chief Financial Officer and head of

the financial department (equivalent to financial manager); and

(II) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the Reporting

Period.All the above mentioned documents are available at the Board Secretary’s Office of the Company.Chairman of the Board (signature): Mr. Chen Yanshun

Date of the Board’s approval of this Report: 26 August 2022

4BOE Technology Group Co. Ltd. Interim Report 2022

Definitions

Term Definition

“BOE” the “Company” BOE Technology Group Co. Ltd. and its consolidated subsidiaries except where the context

the “Group” or “we” otherwise requires

The cninfo website http://www.cninfo.com.cn/

CSRC The China Securities Regulatory Commission

The Articles of Association The Articles of Association of BOE Technology Group Co. Ltd.OLED Organic Light Emitting Diode

LED Light-emitting Diode

MLED Mini/Micro LED

TFT-LCD Thin Film Transistor Liquid Crystal Display

AMOLED Active-matrix Organic Light Emitting Diode

Oxide A compound of oxygen and another chemical element

Microdisplay Microdisplay technology

LCD Liquid Crystal Display

IoT Internet of Things

A type of radiation that can pass through objects that are not transparent and make it possible to

X-ray

see inside them

Mini/Micro LED Submillimeter/Micro Light Emitting Diode

IEC International Electrotechnical Commission

BP Back Plate

EPD Electrophoretic Display

AM Active Matrix

MNT Monitor generally referring to the 27~34 inch model

VR/AR Virtual Reality /Augmented Reality

MNT QHD+ Monitor with QHD+ definition

NB Oxide A compound of oxygen and another chemical element

MBL Mobile

ISO International Organization for Standardization

TV Television

RGB Red Green Blue

3C Computer communication and consumer electronics

P0.9 Point 0.9mm

SID The Society for Information Display

DIA Display Industry Awards

NB Notebook

SaaS Software-as-a-Service

Gaming Gaming monitor

C2P and C2S Whole-gadget models manufactured by the Company

5BOE Technology Group Co. Ltd. Interim Report 2022

Part II Corporate Information and Key Financial Information

I Corporate Information

Stock name BOE-A BOE-B Stock code 000725 200725

Changed stock name (if any) N/A

Stock exchange for stock listing Shenzhen Stock Exchange

Company name in Chinese 京东方科技集团股份有限公司

Abbr. (if any) 京东方

Company name in English (if any) BOE TECHNOLOGY GROUP CO. LTD.Abbr. (if any) BOE

Legal representative Chen Yanshun

II Contact Information

Item Board Secretary Securities Representative

Name Liu Hongfeng Luo Wenjie

12 Xihuan Middle Road Beijing Economic- 12 Xihuan Middle Road Beijing Economic-

Address

Technological Development Area P.R.China Technological Development Area P.R.China

Tel. 010-64318888 ext. 010-64318888 ext.Fax 010-64366264 010-64366264

Email address liuhongfeng@boe.com.cn luowenjie@boe.com.cn

III Other Information

1. Contact Information of the Company

Indicate by tick mark whether any change occurred to the registered address office address and their zip codes website address and

email address of the Company in the Reporting Period.□ Applicable □ Not applicable

No change occurred to the said information in the Reporting Period which can be found in the 2021 Annual Report.

2. Media for Information Disclosure and Place where this Report is Lodged

Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s

periodic reports in the Reporting Period.□ Applicable □ Not applicable

The newspapers designated by the Company for information disclosure the website designated by the CSRC for disclosing the

Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information can

6BOE Technology Group Co. Ltd. Interim Report 2022

be found in the 2021 Annual Report.

3. Other Information

Indicate by tick mark whether any change occurred to other information in the Reporting Period.□ Applicable □ Not applicable

IV Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes □ No

Reason for retrospective restatement:

Change of accounting policy.H1 2021 Change (%)

Item H1 2022

Before Restated Restated

Operating revenue (RMB) 91610241869.00 107285327026.00 108618018710.00 -15.66%

Net profit attributable to the listed

6595661738.0012762024968.0012917163177.00-48.94%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before 4239456093.00 11661616772.00 11816754981.00 -64.12%

exceptional gains and losses (RMB)

Net cash generated from/used in

28112000665.0032745188339.0032787642867.00-14.26%

operating activities (RMB)

Basic earnings per share (RMB/share) 0.166 0.363 0.367 -54.77%

Diluted earnings per share

0.1660.3630.367-54.77%

(RMB/share)

Weighted average return on equity

4.80%13.40%13.54%-8.74%

(%)

31 December 2021 Change (%)

Item 30 June 2022

Before Restated Restated

Total assets (RMB) 446291365552.00 449726980355.00 450232603405.00 -0.88%

Equity attributable to the listed

143316946650.00142925547899.00143086216558.000.16%

company’s shareholders (RMB)

Reason for accounting policy change and correction of accounting error:

As required by the Q&A on the Implementation of Fixed Assets Standards and the Interpretation of Accounting Standards for Business

Enterprises No. 15 issued by the Ministry of Finance the Group retrospectively adjusted related items of financial statements of the

beginning of the year and those of the same period of last year. The above changes of accounting policies have no significant influence

on the Company’s financial status and operating results.

7BOE Technology Group Co. Ltd. Interim Report 2022

V Accounting Data Differences under China’s Accounting Standards for Business Enterprises

(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting

Standards

1. Net Profit and Net Asset Differences under CAS and IFRS

□ Applicable □ Not applicable

No such differences for the Reporting Period.

2. Net Profit and Net Asset Differences under CAS and Foreign Accounting Standards

□ Applicable □ Not applicable

No such differences for the Reporting Period.VI Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Amount Note

Gain or loss on disposal of non-current assets (inclusive of impairment

-1480132.00 N/A

allowance write-offs)

Tax rebates reductions and exemptions given with ultra vires approval or

0.00 N/A

in lack of official approval documents

Government subsidies charged to current profit or loss (exclusive of

government subsidies consistently given in the Company’s ordinary

2960353628.00 N/A

course of business at fixed quotas or amounts as per governmental

policies or standards)

Capital occupation charges on non-financial enterprises that are charged

0.00 N/A

to current profit or loss

Gain equal to the amount by which investment costs for the Company to

obtain subsidiaries associates and joint ventures are lower than the

0.00 N/A

Company’s enjoyable fair value of identifiable net assets of investees

when making investments

Gain or loss on non-monetary asset swaps 0.00 N/A

Gain or loss on assets entrusted to other entities for investment or

0.00 N/A

management

Allowance for asset impairments due to acts of God such as natural

0.00 N/A

disasters

Gain or loss on debt restructuring 0.00 N/A

Restructuring costs in staff arrangement integration etc. 0.00 N/A

Gain or loss on the over-fair value amount as a result of transactions with

0.00 N/A

distinctly unfair prices

Current profit or loss on subsidiaries obtained in business combinations

involving enterprises under common control from the period-beginning to 0.00 N/A

combination dates net

Gain or loss on contingencies that do not arise in the Company’s ordinary

0.00 N/A

course of business

Gain or loss on fair-value changes in held-for-trading financial assets and

liabilities & income from disposal of held-for-trading financial assets and 122322990.00 N/A

liabilities and available-for-sale financial assets (exclusive of the effective

8BOE Technology Group Co. Ltd. Interim Report 2022

portion of hedges that arise in the Company’s ordinary course of

business)

Reversed portions of impairment allowances for receivables which are

20528284.00 N/A

tested individually for impairment

Gain or loss on loan entrustments 0.00 N/A

Gain or loss on fair-value changes in investment property of which

0.00 N/A

subsequent measurement is carried out using the fair value method

Effects of all adjustments required by taxation accounting and other

0.00 N/A

applicable laws and regulations on current profit or loss

Income from charges on entrusted management 0.00 N/A

Non-operating income and expense other than the above 85481075.00 N/A

Other gains and losses that meet the definition of exceptional gain/loss 0.00 N/A

Less: Income tax effects 92067447.00 N/A

Non-controlling interests effects (net of tax) 738932753.00 N/A

Total 2356205645.00

Particulars about other gains and losses that meet the definition of exceptional gain/loss:

□ Applicable □ Not applicable

No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.

1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:

□ Applicable □ Not applicable

No such cases for the Reporting Period.

9BOE Technology Group Co. Ltd. Interim Report 2022

Part III Management Discussion and Analysis

I Principal Activity of the Company in the Reporting Period

BOE Technology Group Co. Ltd. is an loT company providing intelligent interface products and professional services for information

interaction and human health. After years of professional cultivation the Company has developed into a global leader in the field of

semiconductor display and a global innovative enterprise in the field of the Internet of Things. Based on a deep understanding of the

intrinsic laws of the market and practical exploration and in order to further enhance its value creation capability BOE has proposed

the development strategy of " Screen-Connected IoT " based on its core genes and capabilities seizing the ubiquitous growth

opportunities of "screen" and fully leveraging its core advantage of "screen" to integrate screens into more market segments and

application scenarios by integrating more functions and deriving more forms. By doing so BOE will realize the user perception

revolution of "screen as terminal" in the digital era build an industrial ecology of "screen as platform and screen as system" and

reshape the value growth model. At the same time based on the strategic design of " Screen-Connected IoT " BOE will bring a new

connotation to the "1+4+N+Ecosystem" development structure under the new development pattern."1" represents semiconductor display which is the core capacity and quality resources accumulated by BOE as well as the source and

origin of the Company's transformation and development."4" is a high-potential channel and direction of development selected based on BOE's core competence and value chain extension as

well as the four main fronts of the Company's IoT transformation namely the IoT Innovation business the Sensor and Solution business

the MLED business and the Smart Medical Engineering business."N" refers to the subdivided application scenarios of IoT that are continuously explored and cultivated by BOE as well as the specific

focus of the Company's IoT transformation development.“Ecosystem” means the Company work with its partners by way of strategic investment strategy cooperation etc. to ensure the security

of the business ecosystem.The Company's core businesses are summarized as follows:

1. Display Devices business

The Display Devices business offers integrated design and manufacturing services for devices and is committed to providing interface

devices applying TFT-LCD AMOLED Microdisplay and other technologies focusing on providing customers with high-quality

display devices for smartphones tablet PCs laptops monitors TVs vehicle-mounted electronic shelf label (ESL) industrial control

household medical applications applications on wearable devices whiteboards tiled display screens commercial devices VR/AR

devices etc.

2. IoT Innovation business

The IoT Innovation business offers integrated design and manufacturing services for system solutions and provides customers with

competitive smart terminal products for TVs monitors laptops tablets low-power devices IoT 3D display etc. Backed by AI and

big data technologies it focuses on products and services combining hardware and software providing integrated IoT solutions for

segments including smart industrial parks smart finance smart government affairs and transportation visual arts smart energy all-in-

one machines etc.

3. Sensor and Solution business

The Sensor and Solution business offers integrated design and manufacturing services for system solutions focuses on medical

biological segment transportation and construction consumer electronics microwave communications industrial sensors and other

fields and provides customers with design and manufacturing of sensor devices and system solution services with specific products

and solutions including back plates for flat panel X-ray detectors (FPXD) digital microfluidic chips intelligent PDLC glass and PDLC

system solutions fingerprint identification sensors and systems as well as industrial sensors and solutions among others.

10BOE Technology Group Co. Ltd. Interim Report 2022

4. MLED business

MLED business renders Mini-LED backlight products with high reliability and high partition of dimming for LCD of mobile phones

tablet PCs laptops monitors TVs vehicles wearable devices etc. as well as Mini/Micro-LED display products with high brightness

high reliability and high contrast for segment markets of outdoor commercial transparent specialized and other displays. All these

products are designed and manufactured in an integrated manner.

5. Smart Medical Engineering business

The Smart Medical Engineering business adopts the professional service model to combine technologies with medicine and integrate

medicine and engineering with innovation so as to provide families communities and hospitals with the four major human-centered

services of health management health technology digital hospital and technology services. It connects testing equipment healthcare

workers and customers through the health IoT platform to build a smart health management ecosystem where customers enjoy health

services including prevention treatment therapy and nursing.

6. The "N" business

With a specific focus on "N" the Company provides hardware and software integrated system solutions for different industries

including smart finance smart industrial parks visual art smart retail industrial IoT and other fields which can provide customers

with all-dimensional one-stop and smart new experience under IoT scenarios. For example smart retail provides customers with smart

retail solutions covering all fields such as malls and supermarkets 3C cosmetics and household realises online and offline integration

and upgrade and offers the new experience of smart shopping; industrial IoT provides enterprises with solutions products and services

like smart production smart factory and cloud services assists customers in digital intelligence transformation relying on its self-

developed industrial Internet platform realises refined operation and management achieves cost reduction and efficiency enhancement

from all procedures of design supply production and sales and offers all-dimensional one-stop and smart industrial IoT solutions to

customers.II Core Competitiveness Analysis

1. Steadily improved market position

The Company made breakthroughs in markets. In the five major application areas our LCD market share ranked first in the world. We

further expanded high-end market segments ranked first in the world in the market shares of NB Oxide and Gaming and saw an

increase of over 20% in the sales of MNT QHD+. In terms of innovative application the overall sales rose by over 50% year on year.In terms of car displays the Company's market share rose to the world's highest for the first time. The smart terminal product line was

gradually improved. We launched new products like 65-inch and 75-inch smart screens and C2P and C2S whole products and saw a

year-on-year increase of over 160% in the sales of large-size products; we expanded new application scenarios for smart finance

launched the industry's first elderly-friendly finance screen and rolled out innovative scenario solutions such as green finance and

elderly-friendly services; in terms of smart parks the Company successfully joined the smart industrial park working group of the

National Intelligence Standards Committee to promote the building of a standard industrial park system.

2. Continuously enhanced technological strength

Through the short- medium- and long-term technology R&D mechanism the Company productizes technology rapidly and actively

lays out forward-looking technology directions while realizing the incubation of technology value to ensure that the Company's

technological strength continues to lead. In terms of patents in the first half of the year the number of new patent applications exceeded

4500 including more than 90% for inventions and over 33% for overseas patents; patent applications in respect of OLED sensors

artificial intelligence (AI) and other fields exceeded 50%. In terms of technical standards the Company led the formulation and revision

of over 40 external standards participated in the formulation and revision of more than 70 external standards and raised over 20

proposals on technical standards. The ISO/IEC "Internet of Things (IoT) — IoT applications for electronic label system (ELS)" led by

the Company has been officially released. The four technical standards of the UHD video and audio broadcasting system for "100

11BOE Technology Group Co. Ltd. Interim Report 2022

Cities and 1000 Screens" such as the Technical Requirements of the Public Display System (Outdoor) of UHD Video and Audio

Broadcasting System for "100 Cities and 1000 Screens" which were formulated with the Company's participation have been officially

released as well. In terms of products and technologies the Company was the first to release the world's highest refresh rate technology

for TV MNT and NB. For TV products we launched the "black quartz" technology with image quality matching OLED and has passed

the product certification of brand customers. A 110-inch 8K naked-eye 3D product the largest size in the world and a 95-inch 8K

OLED smart terminal using the 8K AI image enhancement engine also the largest size in the world were debuted in the SID. The

establishment of the process route for the NB backlight with ultrathin glass was completed marking the thinnest module in the industry.For car display products we launched the first oversize (more than 40 inches) and curved vehicle-grade OLED product in the world.The Company was the first to launch the peep-proof display technology featuring a 360-degree swappable display. In respect of

mini/micro LED Company launched the first direct display glass P0.9 4K product in the world and won the award of best display

component product for its 86-inch COG AM Mini LED backlight unit from SID DIA. The smart screens were delivered in batches in

the automotive and construction fields. Besides we launched a command centre control platform and an omnimedia transportation

control platform and implemented the all-route commanding bus station project.

3. Further progress in the effectiveness of lean management

BOE continuously optimized its operation mechanism promoted the centralization and scale of products continued to strengthen

platform linkages and connections and leveraged its advantages of intensification continuously enhancing the efficiency of production

lines. Design supply production and sales departments closely collaborated with each other and made concerted efforts to

continuously guarantee efficient and accurate delivery. Meanwhile focusing on the Group's strategy policy of "high-quality" we

managed to increase the delivery rate of high-end products by 6.3% from last year.The Company was in a leading position in China's electronics industry in respect of the management of the "double carbon" task; we

successfully promoted the analysis report on management scenarios of science-based targets trials of carbon footprint verification for

products greenhouse gas verification assessment of the double carbon task by third-party technology consulting firms and the report

on carbon emission reduction by customers; the 10.5th generation of TFT-LCD production line in Wuhan was recognised as a national

green factory. The 8.5th generation of TFT-LCD production line won a national award for benchmarking enterprises of smart

manufacturing; the 8.5th generation of TFT-LCD production line in Fuzhou became the first enterprise in the Chinese Mainland to be

awarded as the "lighthouse factory" in the industry.

4. Steadily advanced digital transformation

BOE continued to comprehensively advance digital transformation with the top goal of building "a digital visual BOE". The Company

promoted and implemented a series of digital change key measures to build an end-to-end digital management system of "agile response

efficient coordination and full coverage" so as to stimulate organisational vitality strengthen IT system support revitalize data capital

and realise efficient digital operation. The Company continued to improve management efficiency and business efficiency. In the first

half of the year the Company further optimised the management mechanism for digital transformation projects deepened the

empowerment by the project management system refined the hierarchical decision-making mechanism constantly improved enterprise

structure governance process and data management capabilities and the development of professional capabilities and promoted the

implementation of each digital transformation project in an orderly manner focusing on excellent data products and delivery.III Analysis of Core Businesses

Overview:

See contents under the heading “I Principal Activity of the Company in the Reporting Period” above.Year-on-year changes in key financial data:

Unit: RMB

12BOE Technology Group Co. Ltd. Interim Report 2022

Change

Item H1 2022 H1 2021 Main reason for change

(%)

Demand for semiconductor

display lingered at low levels

and major panel products

Operating revenue 91610241869.00 108618018710.00 -15.66%

experienced falling prices

leading to a decline in

operating revenue.Cost of sales 74499068362.00 75420407266.00 -1.22% N/A

Selling expense 1862479468.00 2295547697.00 -18.87% N/A

Administrative expense 2948599229.00 3245612412.00 -9.15% N/A

Decreased net interest

Finance costs 654112804.00 1758296231.00 -62.80% expense in the Reporting

Period

Income tax expense 1681324244.00 2260425038.00 -25.62% N/A

R&D investments 5689976471.00 5535141416.00 2.80% N/A

Net cash generated from/used in

28112000665.00 32787642867.00 -14.26% N/A

operating activities

Net cash generated from/used in

-22841690510.00 -21356987489.00 - N/A

investing activities

Increased cash inflows from

Net cash generated from/used in

-3178244904.00 -12633974318.00 - borrowings received during

financing activities

the Reporting Period

Increased cash inflows from

Net increase in cash and cash

3181592619.00 -1723109268.00 - borrowings received during

equivalents

the Reporting Period

Material changes to the profit structure or sources of the Company in the Reporting Period:

□ Applicable □ Not applicable

No such changes in the Reporting Period.Breakdown of operating revenue:

Unit: RMB

H1 2022 H1 2021

As % of

As % of total Change

Item total

Operating revenue operating Operating revenue (%)

operating

revenue (%)

Total 91610241869.00 100% 108618018710.00 100% -15.66%

By operating division

Display devices 82641917513.00 90.21% 100644922831.00 92.66% -17.89%

IoT innovation 13490882043.00 14.73% 13321094890.00 12.26% 1.27%

Sensor and solution 103681585.00 0.11% 79166852.00 0.07% 30.97%

MLED 411634393.00 0.45% 274144781.00 0.25% 50.15%

Smart medical

1044238829.001.14%863981458.000.80%20.86%

engineering

Others and offset -6082112494.00 -6.64% -6565292102.00 -6.04% -7.36%

By product category

Display devices 82641917513.00 90.21% 100644922831.00 92.66% -17.89%

IoT innovation 13490882043.00 14.73% 13321094890.00 12.26% 1.27%

Sensor and solution 103681585.00 0.11% 79166852.00 0.07% 30.97%

MLED 411634393.00 0.45% 274144781.00 0.25% 50.15%

Smart medical

1044238829.001.14%863981458.000.80%20.86%

engineering

Others and offset -6082112494.00 -6.64% -6565292102.00 -6.04% -7.36%

By operating segment

Mainland China 37391483962.00 40.81% 50358289184.00 46.36% -25.75%

Other regions in Asia 37757230449.00 41.22% 44464483584.00 40.94% -15.08%

13BOE Technology Group Co. Ltd. Interim Report 2022

Europe 2914549849.00 3.18% 3602389524.00 3.32% -19.09%

America 13503340713.00 14.74% 10094599107.00 9.29% 33.77%

Other regions 43636896.00 0.05% 98257311.00 0.09% -55.59%

Operating division product category or operating segment contributing over 10% of operating revenue or operating profit:

□ Applicable □ Not applicable

Unit: RMB

YoY change

YoY change YoY change

Gross profit in gross

Item Operating revenue Cost of sales in operating in cost of

margin profit

revenue (%) sales (%)

margin (%)

By operating division

Display devices 82641917513.00 69884436495.00 15.44% -17.89% -3.40% -12.68%

IoT innovation 13490882043.00 12263288192.00 9.10% 1.27% 3.87% -2.27%

By product category

Display devices 82641917513.00 69884436495.00 15.44% -17.89% -3.40% -12.68%

IoT innovation 13490882043.00 12263288192.00 9.10% 1.27% 3.87% -2.27%

By operating segment

Mainland China 37391483962.00 29333965536.00 21.55% -25.75% -18.68% -6.82%

Other regions in

37757230449.0030966230745.0017.99%-15.08%4.53%-15.39%

Asia

America 13503340713.00 11568639131.00 14.33% 33.77% 70.49% -18.45%

Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:

□ Applicable □ Not applicable

IV Analysis of Non-Core Businesses

□ Applicable □ Not applicable

Unit: RMB

As % of total Recurrent

Item Amount Source/Reason

profit or not

Return on investment 646167675.00 13.20% Income recognized from associates Not

Gain/loss on changes

77771038.00 1.59% N/A Not

in fair value

Inventory valuation allowances

Asset impairments -4528459543.00 -92.53% Not

established based on market conditions

Non-operating income 99586182.00 2.03% N/A Not

Non-operating expense 17425496.00 0.36% N/A Not

14BOE Technology Group Co. Ltd. Interim Report 2022

V Analysis of Assets and Liabilities

1. Material Changes in Asset Composition

Unit: RMB

30 June 2022 31 December 2021 Change in Reason for

Item

Amount As % of total assets Amount As % of total assets percentage (%) material change

Monetary assets 84788918128.00 19.00% 80986835088.00 17.99% 1.01% N/A

Accounts receivable 25711089557.00 5.76% 35503414820.00 7.89% -2.13% N/A

Contract assets 88068862.00 0.02% 75698324.00 0.02% 0.00% N/A

Inventories 33018794213.00 7.40% 27805161436.00 6.18% 1.22% N/A

Investment property 1137543991.00 0.25% 1158365401.00 0.26% -0.01% N/A

Long-term equity

6646019274.00 1.49% 6040948317.00 1.34% 0.15% N/A

investments

Fixed assets 214032994330.00 47.96% 227141366885.00 50.45% -2.49% N/A

Construction in progress 40146851520.00 9.00% 32099711879.00 7.13% 1.87% N/A

Right-of-use assets 879444501.00 0.20% 753164237.00 0.17% 0.03% N/A

Short-term borrowings 2766638569.00 0.62% 2072057332.00 0.46% 0.16% N/A

Contract liabilities 3306387693.00 0.74% 3765081554.00 0.84% -0.10% N/A

Long-term borrowings 123858634582.00 27.75% 116078666587.00 25.78% 1.97% N/A

Lease liabilities 747894221.00 0.17% 669130264.00 0.15% 0.02% N/A

2. Major Assets Overseas

□ Applicable □ Not applicable

15BOE Technology Group Co. Ltd. Interim Report 2022

3. Assets and Liabilities at Fair Value

□ Applicable □ Not applicable

Unit: RMB

Gain/loss on fair- Impairment

Cumulative fair-

value changes in allowance for Purchased in the Sold in the Other

Item Beginning amount value changes Ending amount

the Reporting the Reporting Reporting Period Reporting Period changes

charged to equity

Period Period

Financial assets

1. Held-for-trading

financial assets

10635068300.0077771038.000.000.0042272000000.0035581000000.000.0017317207971.00

(excluding derivative

financial assets)

2.Derivative financial

0.000.000.000.000.000.000.000.00

assets

3. Investments in

0.000.000.000.000.000.000.000.00

other debt obligations

4. Investments in

other equity 519088146.00 0.00 -197519293.00 0.00 18036272.00 0.00 0.00 550228080.00

instruments

Subtotal of financial

11154156446.0077771038.00-197519293.000.0042290036272.0035581000000.000.0017867436051.00

assets

Investment property 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Productive living

0.000.000.000.000.000.000.000.00

assets

Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total of the above 11154156446.00 77771038.00 -197519293.00 0.00 42290036272.00 35581000000.00 0.00 17867436051.00

Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Contents of other changes:

N/A

Significant changes to the measurement attributes of the major assets in the Reporting Period:

□ Yes □ No

16BOE Technology Group Co. Ltd. Interim Report 2022

4. Restricted Asset Rights as at the Period-End

Unit: RMB

Item Ending carrying value Reason for restriction

Monetary assets 4740547715.00 Mainly margin deposit

Endorsed and transferred with right of

Notes receivable 110215838.00 recourse and put in pledge for the

issuance of notes payable

Inventories 0.00 N/A

Fixed assets 151628122893.00 Mortgaged as collateral

Intangible assets 1477181999.00 Mortgaged as collateral

Construction in progress 453776871.00 Mortgaged as collateral

Investment property 40313449.00 Mortgaged as collateral

Total 158450158765.00

VI Investments Made

1. Total Investments Made

□ Applicable □ Not applicable

Investments made in this Reporting Investments made in the same period of

Change（%）

Period (RMB) last year (RMB)

252036272.00796092446.00-68.34%

2. Significant Equity Investments Made in the Reporting Period

□ Applicable □ Not applicable

3. Significant Non-Equity Investments Ongoing in the Reporting Period

□ Applicable □ Not applicable

17BOE Technology Group Co. Ltd. Interim Report 2022

4. Financial Investments

(1) Securities Investments

□ Applicable □ Not applicable

Unit: RMB

Profit/loss

on fair Cumulative

Purchased Sold in

Accounting value fair value Profit/loss in

Variety of Code of Name of Initial Beginning in this this Ending carrying Accounting Funding

measurement changes changes this Reporting

securities securities securities investment cost carrying value Reporting Reporting value title source

model in this charged to Period

Period Period

Reporting equity

Period

Domestic/ Other equity

Electronic Fair value Self-

overseas SH600658 90160428.00 56638836.00 0.00 -32971701.00 0.00 0.00 206209.00 57188727.00 instrument

Zone method funded

stock investment

Domestic/ Other equity

Bank of Fair value Self-

overseas HK01963 120084375.00 91875688.00 0.00 -30022420.00 0.00 0.00 9563780.00 90061955.00 instrument

Chongqing method funded

stock investment

Domestic/ New - Other equity

Fair value Self-

overseas HK01518 Century 140848850.00 19810485.00 0.00 124529381.0 0.00 0.00 0.00 16319469.00 instrument

method funded

stock Healthcare 0 investment

Other securities investments held at the

0.00--0.000.000.000.000.000.000.00----

period-end

Total 351093653.00 -- 168325009.00 0.00 187523502.0 0.00 0.00 9769989.00 163570151.00 -- --

(2) Investments in Derivative Financial Instruments

□ Applicable □ Not applicable

Unit: RMB’0000

Relationship Related- Initial Beginning Purchased Sold in Impairment Ending Ending Actual

Type of Start End

Counterparty with the party investment investment in the the allowance investment investment gain/loss

derivative date date

Company transaction amount amount Reporting Reporting (if any) amount amount in the

18BOE Technology Group Co. Ltd. Interim Report 2022

or not Period Period as % of the Reporting

Company’s Period

ending net

asset value

Foreign 1 30

Financial Not related exchange

Not 77145.97 January June 77145.97 0.00 40233.27 0.00 36912.70 0.26% 191.48

institutions parties forward

contract 2022 2022

Total 77145.97 -- -- 77145.97 0.00 40233.27 0.00 36912.70 0.26% 191.48

Funding source Self-funded

Legal matters involved (if applicable) N/A

As of the end of the reporting period the financial derivatives held by the company are foreign exchange forward contracts and

Analysis of risks and control measures associated with the

the risks faced are related to the uncertainty of the foreign exchange market in the future. The company's control measures for

derivative investments held in the Reporting Period

the financial derivatives are as follows: the company controls the types of derivative transactions reasonably matches the scale

(including but not limited to market liquidity credit

of derivative transactions and the transactions must match the company's production operation and development planning

operational and legal risks etc.)

mainly for the purpose of cost locking and risk prevention.Changes in market prices or fair value of derivative

investments in the Reporting Period (fair value analysis The fair value of the invested derivatives at the end of the reporting period shall be determined by reference to the market

should include measurement methods and related quotation of the external financial institutions.assumptions and parameters)

Significant changes in accounting policies and specific

accounting principles adopted for derivative investments in No major changes

the Reporting Period compared to the last reporting period

Opinion of independent directors on derivative investments

N/A

and risk control

5. Use of Funds Raised

□ Applicable □ Not applicable

(1) Overall Usage of Funds Raised

□ Applicable □ Not applicable

Unit: RMB’0000

Total funds Proportion of Amount of

Total funds Accumulative Total The usage and

Total funds used in the Accumulative accumulative funds raised

Year Way of raising with usage funds with usage unused destination of

raised Current fund used funds with usage idle for over

changed changed funds unused funds

Period changed two years

2021 Private 2033260 90928 1840745 0 0 0.00% 192515 Continuously 0

19BOE Technology Group Co. Ltd. Interim Report 2022

placement of used for the

stocks construction of

equity investment

project

Renewable

2022 200000 200000 200000 0 0 0.00% 0 N/A 0

corporate bonds

Total -- 2233260 290928 2040745 0 0 0.00% 192515 -- 0

Explanation of overall usage of funds raised

The Company raised RMB2000000000 from the above-mentioned offering of renewable corporate bonds during the Reporting Period and the net proceeds exclusive of issuance costs were

RMB1989000000 which would be used for capital increase to subsidiary and replenishing the working capital. The raised funds of RMB2000000000 have been used up in the Reporting

Period conforming to the provisions of the prospectus.The cumulative amount of raised funds through private placement of stocks was RMB20332599995.83 and the net proceeds after deducting issuance costs were RMB19869507400. In the

Reporting Period the raised funds were used according to project investment plans conforming to the relevant promise.

(2) Commitment Projects of Fund Raised

□ Applicable □ Not applicable

Unit: RMB’0000

Whether

Changed or Investment Date of Realized

Committed Investment Investment Accumulative Whether occurred

not Committed schedule as reaching income in

investment project amount after amount in the investment reached significant

(including investment the period- intended the

and super raise fund adjustment Reporting amount as of the anticipated changes in

partial amount end (3)＝ use of the Reporting

arrangement (1) Period period-end (2) income project

changes) (2)/(1) project Period

feasibility

Committed investment project

Fuzhou BOE

Optoelectronics Not 300000 300000 0 300000 100.00% - - N/A Not

Technology Co. Ltd.Wuhan BOE

Optoelectronics Not 650000 650000 0 650000 100.00% - - N/A Not

Technology Co. Ltd.Chongqing BOE

Display Technology Not 600000 600000 88035 508365 84.73% - - N/A Not

Co. Ltd.Yunnan Chuangshijie

Optoelectronics Not 100000 100000 0 0 0.00% - - N/A Not

Technology Co. Ltd.Chengdu BOE

Not 50000 50000 2893 49120 98.24% - - N/A Not

Hospital Co. Ltd.Supplementation of Not 286951 286951 0 286951 100.00% - - N/A Not

20BOE Technology Group Co. Ltd. Interim Report 2022

working capital

Chengdu BOE

Optoelectronics Not 100000 100000 100000 100000 100.00% - - N/A Not

Technology Co. Ltd.Wuhan BOE

Optoelectronics Not 90000 90000 90000 90000 100.00% - - N/A Not

Technology Co. Ltd.Supplementation of

Not 10000 8900 8900 8900 100.00% - - N/A Not

working capital

Subtotal of

committed -- 2186951 2185851 289828 1993336 -- -- - -- --

investment project

Super raised funds arrangement

N/A

Total -- 2186951 2185851 289828 1993336 -- -- - -- --

Condition and reason

for not reaching the

schedule and N/A

anticipated income

(by specific items)

Notes of condition of

significant changes

N/A

occurred in project

feasibility

Amount usage and

schedule of super N/A

raise fund

Changes in

implementation

N/A

address of investment

project

Adjustment of

implementation mode N/A

of investment project

Advance investments Applicable

in projects financed As at 30 June 2022 the funds raised through Phase I of renewable corporate bonds of 2022 were used to swap with advance project investments of RMB1.9 billion.with raised funds and

As at 30 June 2022 the Company had replaced the prior invested funds of the committed investment projects with the raised funds from the non-public offering of

swaps of such

advance investments shares for a total amount of RMB6023.0660 million . Of these RMB3 billion was to replace the Company's own funds invested in repaying the loan of Fuzhou Urban

with subsequent Construction Investment Group. RMB250 million was to replace the own funds invested in BOE Health Investment Management Company Limited and

raised funds RMB2773.0660 million was to replace the own funds invested in Chongqing BOE Display Technology Co. Ltd.Idle fund

supplementing the N/A

current capital

21BOE Technology Group Co. Ltd. Interim Report 2022

temporarily

Applicable

Amount of surplus in As at 30 June 2022 the funds raised through the renewable corporate bonds have been used up with a balance of RMB3.2148 million in the raised funds account

project which was the interest income generated during the deposit period.implementation and As at 30 June 2022 the balance of the raised funds from the non-public offering of shares was RMB1987.1914 million representing the unused raised funds and

the reasons interest income generated during the deposit period.Usage and

destination of unused As at 30 June 2022 the unspent raised funds will be paid for the purposes specified in the Issuance Report and Listing Notice.funds

Problems incurred in

fund using and

N/A

disclosure or other

condition

(3) Changes in Items of Funds Raised

□ Applicable □ Not applicable

No such cases in the Reporting Period.VII Sale of Major Assets and Equity Interests

1. Sale of Major Assets

□ Applicable □ Not applicable

No such cases in the Reporting Period.

2. Sale of Major Equity Interests

□ Applicable □ Not applicable

VIII Main Controlled and Joint Stock Companies

□ Applicable □ Not applicable

22BOE Technology Group Co. Ltd. Interim Report 2022

Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit

Unit: RMB

Relationship

Registered

Name with the Principal activities Total assets Net assets Operating revenue Operating profit Net profit

capital

Company

R&D Production and

sales of semi-conductor

Chongqing BOE display device complete

Optoelectronics machine and relevant

Subsidiary 19226000000 51086339315.00 42050779329.00 14584108287.00 4735993509.00 4022938055.00

Technology Co. products; import and

Ltd. export business and

technology consulting of

goods.Investment construction

Fuzhou BOE

R&D Production and

Optoelectronics

Subsidiary sales of relevant products 17600000000 30373168281.00 23361695160.00 7503816684.00 1111851720.00 950620453.00

Technology Co.of TFT-LCD and its

Ltd.matching products.Hefei Xinsheng Investment construction

R&D Production and

Optoelectronics

Subsidiary sales of relevant products 19500000000 33048144814.00 24091526663.00 9490240470.00 819647212.00 699264696.00

Technology Co. of TFT-LCD and its

Ltd. matching products.Subsidiaries obtained or disposed in this Reporting Period

□ Applicable □ Not applicable

Information about major majority- and minority-owned subsidiaries:

N/A

IX Structured Bodies Controlled by the Company

□ Applicable □ Not applicable

X Risks Facing the Company and Countermeasures

Due to the challenges brought about by the pandemic and the ever-changing environment the uncertainty of the global political and business environment continued to increase and the macro

environment was extraordinarily severe and complex. International geopolitical turbulence continued while inflation was spiking around the world forcing central banks of many countries to

23BOE Technology Group Co. Ltd. Interim Report 2022

regulate their economies through interest rate hikes RRR cuts and other methods. However the recovery of the global economy remained weak dampening consumer confidence. Facing such an

environment the Company withstood the pressure insisted on guaranteeing the resource input into technology continuously enhanced its technological strength and deepened the strategic

cooperation with upstream and downstream partners to overcome the current difficulties with joint efforts. Meanwhile the Company continued to pursue innovation-driven development

accelerated the IoT transformation and actively promoted the building of a safe and sound industrial ecology to respond to the impact of the external environment on all fronts.

24BOE Technology Group Co. Ltd. Interim Report 2022

Part IV Corporate Governance

I Annual and Extraordinary General Meeting Convened during the Reporting Period

1. General Meetings Convened during the Reporting Period

Investor

Convened Disclosure

Meeting Type participati Meeting resolutions

date date

on ratio

The following reports and proposals were deliberated and

approved i.e. Report on the Work of the Board of Directors

for 2021 Report on the Work of the Board of Supervisors for

2021 Full Annual Report and Summary for 2021 Financial

Final Report for 2021 and Business Plan for 2022 Proposal

for the Distribution of Profits for 2021 Proposal on Borrowing

and Credit Line Proposal on the Development of Structured

Deposits and Other Principal-protected Business Proposal on

Provision of Guarantee by A Subsidiary of Beijing BOE

The 2021

Annual Energy Technology Co. Ltd. for the 200000 kW Photovoltaic

Annual 28 April 29 April

General 24.61% Project of Sonid Right Banner Proposal on Provision of

General

Meeting 2022 2022

Meeting Guarantee for BOE Vision Electronic Technology Co. Ltd.Proposal on the Intended Appointment of an Audit Agency for

2022 Proposal on Repurchase of Domestic Listed Foreign

Investment Shares (B Share) of the Company Proposal on

Purchase of Liability Insurance for Directors Supervisors and

Senior Managers Proposal on the Amendment of the Articles

of Association of the Company and other Policies Proposal on

the Amendment of the Rules of Procedure for the Supervisory

Committee Election of Non-Independent Directors Election

of Independent Directors and Election of Supervisors.

2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed

Voting Rights

□ Applicable □ Not applicable

II Change of Directors Supervisors and Senior Management

□ Applicable □ Not applicable

Name Office title Type of change Date of change Reason for change

Wang Jing Director Resigned 17 March 2022 Voluntary resignation