BOE Technology Group Co. Ltd.ENGLISH TRANSLATION OF FINANCIAL STATEMENTS
FOR THE YEAR 1 JANUARY 2023 TO 31 DECEMBER 2023
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2404989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
2023 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 2023 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 8AUDITOR’S REPORT (continued)毕马威华振审字第2404989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” 24 and “V. Notes to theconsolidated financial statements” 46.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 8AUDITOR’S REPORT (continued)毕马威华振审字第2404989号
Key Audit Matters (continued)
Revenue recognition (continued)
Refer to Note III. 24 of the accounting policy to the financial statements and Note V. 46 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 8AUDITOR’S REPORT (continued)毕马威华振审字第2404989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” 20 and “V. Notes to theconsolidated financial statements” 15 18.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
2023 the book value of fixed assets and
controls for impairment tests;
intangible assets amounted to RMB 221，
937 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 2023 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 4 of 8AUDITOR’S REPORT (continued)毕马威华振审字第2404989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” 20 and “V. Notes to theconsolidated financial statements” 15 18.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 5 of 8AUDITOR’S REPORT (continued)毕马威华振审字第2404989号
Other Information
BOE’s management is responsible for the other information. The other information comprises
all the information included in 2023 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 6 of 8AUDITOR’S REPORT (continued)毕马威华振审字第2404989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 7 of 8AUDITOR’S REPORT (continued)毕马威华振审字第2404989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
29 March 2024
Page 8 of 8BOE Technology Group Co. Ltd.Consolidated balance sheet
as at 31 December 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
Assets
Current assets
Cash at bank and on hand V.1 72467392718 68800307369
Financial assets held for trading V.2 7755964495 17187993936
Bills receivable V.3 375577011 211792061
Accounts receivable V.4 33365416490 28203647569
Receivables financing V.5 408534622 -
Prepayments V.6 558659780 589764680
Other receivables V.7 726659207 975809236
Inventories V.8 24119667325 22787814225
Contract assets V.9 95710742 71636461
Non-current assets due within one
year 8683381 8561307
Other current assets V.10 3308338931 3394036919
Total current assets 143190604702 142231363763
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Assets (continued)
Non-current assets
Long-term receivables 3341844 28637449
Long-term equity investments V.11 13731696627 12421878851
Investments in other equity
instruments V.12 494629577 483060306
Other non-current financial assets V.13 2253778325 2022967681
Investment properties V.14 1412553446 1122025138
Fixed assets V.15 210371476524 205987050430
Construction in progress V.16 29670115546 43386134668
Right-of-use assets V.17 724344345 687120946
Intangible assets V.18 11565585700 8948327143
Development costs VI.2 166977531 -
Goodwill V.19 704705586 660823651
Long-term deferred expenses V.20 534494564 556941377
Deferred tax assets V.21 396877020 76013149
Other non-current assets V.22 3965918458 1955521384
Total non-current assets 275996495093 278336502173
Total assets 419187099795 420567865936
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Liabilities and shareholders’ equity
Current liabilities
Short-term loans V.23 1746184534 2373938871
Bills payable V.24 919313033 870221538
Accounts payable V.25 32977603351 29834720464
Advance payments received V.26 94704981 79848977
Contract liabilities V.27 3000168620 2411717792
Employee benefits payable V.28 3100911276 2818532823
Taxes payable V.29 1317080022 1331401188
Other payables V.30 19487760965 19632223269
Non-current liabilities due within one
year V.31 24437027442 22703750744
Other current liabilities V.32 3085773591 3613967673
Total current liabilities 90166527815 85670323339
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Liabilities and shareholders’ equity
(continued)
Non-current liabilities
Long-term loans V.33 121546339022 123143479690
Lease liabilities V.34 542141496 538586010
Long-term payables V.35 171611393 229587077
Provisions V.36 3580000 -
Deferred income V.37 4763051955 5156347332
Deferred tax liabilities V.21 1694639729 1289899658
Other non-current liabilities V.38 2500522066 2499075805
Total non-current liabilities 131221885661 132856975572
Total liabilities 221388413476 218527298911
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V.39 37652529195 38196363421
Other equity instruments V.40 2043402946 8176366808
Capital reserve V.41 52113580746 55224885675
Less: Treasury shares V.42 462036240 3508201911
Other comprehensive income V.43 (1136997224) (1073768030)
Special reserve 66472402 -
Surplus reserve V.44 3571778635 3241063934
Retained earnings V.45 35579576607 35829465307
Total equity attributable to
shareholders of the Company 129428307067 136086175204
Non-controlling interests 68370379252 65954391821
Total shareholders’ equity 197798686319 202040567025
Total liabilities and shareholders’ equity 419187099795 420567865936
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.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 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
Assets
Current assets
Cash at bank and on hand 4255943334 7121641234
Accounts receivable XVI.1 4870413096 4863665269
Prepayments 4807079 7045311
Other receivables XVI.2 28381628538 19878145375
Inventories 19337053 15065947
Other current assets 126758000 57226515
Total current assets 37658887100 31942789651
Non-current assets
Long-term equity investments XVI.3 191109201591 214308953020
Investments in other equity 62020419 60434464
instruments
Other non-current financial assets 1493778324 1416072234
Investment properties 246605801 251870591
Fixed assets 945373523 921510043
Construction in progress 612320190 616247335
Right-of-use assets 86718376 126373643
Intangible assets 997974193 1122230564
Long-term deferred expenses 337051031 384123386
Other non-current assets 1740557308 1080322988
Total non-current assets 197631600756 220288138268
Total assets 235290487856 252230927919
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Liabilities and shareholders’ equity
Current liabilities
Accounts payable 566941531 312100258
Advance payments received 10542897 14819929
Contract liabilities 74594 19200
Employee benefits payable 300267423 282792422
Taxes payable 279057718 139166672
Other payables XVI.4 3515995979 4249391146
Non-current liabilities due within one
year 4029679945 2704607119
Other current liabilities 77354731 20283257
Total current liabilities 8779914818 7723180003
Non-current liabilities
Long-term loans XVI.5 44053100000 39557500000
Lease liabilities 42482289 85830813
Deferred income 954798900 1933587746
Deferred tax liabilities 222201768 111987272
Other non-current liabilities 79800793681 96394661805
Total non-current liabilities 125073376638 138083567636
Total liabilities 133853291456 145806747639
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity
Share capital V.39 37652529195 38196363421
Other equity instruments V.40 2043402946 8176366808
Capital reserve XVI.6 51741820724 53693627213
Less: Treasury shares V.42 462036240 3508201911
Other comprehensive income XVI.7 (296433056) 340345
Surplus reserve V.44 3571778635 3241063934
Retained earnings XVI.8 7186134196 6624620470
Total shareholders’ equity 101437196400 106424180280
Total liabilities and shareholders’ equity 235290487856 252230927919
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.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 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
I. Operating income V.46 174543445895 178413731179
II. Less: Operating costs V.46 152633061367 157530566152
Taxes and surcharges V.47 1132985865 1275171339
Selling and distribution expenses V.48 3736940205 4233290297
General and administrative
expenses V.49 5944875540 6247637006
Research and development
expenses V.50 11319503088 11100768677
Financial expenses V.51 1150310546 2445130575
Including: Interest expenses 3536889899 3572211438
Interest income 2032287888 1483022892
Add: Other income V.52 4202333156 5485529324
Investment income V.53 810709642 6094267884
Including: Income from
investment in
associates and joint
ventures 702555344 528103680
Gains from changes in fair value V.54 291542233 159344584
Credit losses V.55 (18562198) (51577226)
Impairment losses V.56 (2406230634) (7304471630)
Gains from asset disposals V.57 13090386 10965556
III. Operating profit /(loss) 1518651869 (24774375)
Add: Non-operating income V.58 383996163 163242857
Less: Non-operating expenses V.58 69649357 87249543
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
IV. Profit before income tax 1832998675 51218939
Less: Income tax expenses V.59 1463127346 1791720662
V. Net profit for the year / (loss) 369871329 (1740501723)
Shareholders of the Company 2547435360 7541423198
Non-controlling interests (2177564031) (9281924921)
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
VI. Other comprehensive income net of
tax V.43 (18318697) (1158016792)
Other comprehensive income (net of
tax) attributable to owners of the
Company (114919973) (1164537236)
(1) Items that will not be
reclassified to profit or loss
1. Other comprehensive
income recognised
under equity method (302258742) (53367649)
2. Changes in fair value of
investments in other
equity instruments 4408730 (79547426)
(2) Items that may be reclassified
to profit or loss
1. Other comprehensive
income recognised
under equity method 38009 127867
2. Translation differences
arising from translation of
foreign currency financial
statements 182892030 (1031750028)
Other comprehensive income (net of
tax) attributable to non-controlling
interests 96601276 6520444
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
VII. Total comprehensive income for the
year 351552632 (2898518515)
Attributable to shareholders of the
Company 2432515387 6376885962
Attributable to non-controlling interests (2080962755) (9275404477)
VIII. Earnings per share:
(1) Basic earnings per share V.60 0.06 0.19
(2) Diluted earnings per share V.60 Not applicable Not applicable
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.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 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
I. Operating income XVI.9 4708465987 4873328715
II. Less: Operating costs XVI.9 12627567 10080268
Taxes and surcharges 43605220 55342015
General and administrative
expenses 1332250430 1348187653
Research and development
expenses 2128570079 2046032751
Financial expenses 480003968 574596105
Including: Interest expenses 545603838 631737202
Interest income 71059318 96658931
Add: Other income 951291761 948637354
Investment income XVI.10 1991483354 1934087931
Including: Income from
investment in
associates and
joint ventures 429364809 328861860
Gains from changes in fair value 49498773 -
Credit losses 5490866 (18126642)
Losses from asset disposals 5077109 -
III. Operating profit 3714250586 3703688566
Add: Non-operating income 3921345 6873424
Less: Non-operating expenses 6859836 26617581
IV. Profit before income tax 3711312095 3683944409
Less: Income tax expenses 405340309 202080897
V. Net profit for the year 3305971786 3481863512
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
VI. Other comprehensive income net of
tax XVI.7 (295598180) (55810525)
(1) Items that will not be reclassified
to profit or loss
1. Other comprehensive income
recognised under equity
method (302258742) (53367649)
2. Changes in fair value of
investments in other equity
instruments 6660562 (2570743)
(2) Items that may be reclassified to
profit or loss - 127867
VII. Total comprehensive income for the
year 3010373606 3426052987
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.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 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
I. Cash flows from operating
activities:
Proceeds from sale of goods and
rendering of services 180947736116 193327661415
Refund of taxes 10373888040 17259338469
Proceeds from other operating
activities V.61(1)a 6145484931 7397264096
Sub-total of cash inflows 197467109087 217984263980
Payment for goods and services (129474896348) (142617274685)
Payment to and for employees (18253350198) (19821022609)
Payment of various taxes (3823925586) (5394897972)
Payment for other operating
activities V.61(1)b (7613110071) (7129101409)
Sub-total of cash outflows (159165282203) (174962296675)
Net cash flows generated from
operating activities V.62(1) 38301826884 43021967305
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
II. Cash flows from investing activities:
Proceeds from disposal of
investments 70648492540 83038823137
Investment returns received 569248170 461543173
Net proceeds from disposal of fixed
assets intangible assets and other
long-term assets 62750260 26645620
Net proceeds for acquisition of
subsidiaries V.62(2) 59293141 -
Net proceeds from disposal of
subsidiaries V.62(2) - 936758922
Proceeds from other investing
activities V.61(2) a 3940488690 1311942470
Sub-total of cash inflows 75280272801 85775713322
Payment for acquisition of fixed
assets intangible assets and other
long-term assets (24807796061) (29398245045)
Payment for acquisition of
investments (79608953781) (92205577385)
Net payment for acquisition of
subsidiaries V.62(2) (165333139) -
Net payment for disposal of
subsidiaries V.62(2) - (144689766)
Sub-total of cash outflows (104582082981) (121748512196)
Net cash flows used in investing
activities (29301810180) (35972798874)
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
III. Cash flows from financing activities:
Proceeds from investors 3291140600 2301848242
Including: Proceeds from non-
controlling shareholders
of subsidiaries 3291140600 2301848242
Proceeds from issuance of debentures - 2000000000
Proceeds from borrowings 27341860631 49812750352
Proceeds from other financing
activities V.61(3)a - 771327623
Sub-total of cash inflows 30633001231 54885926217
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
III. Cash flows from financing activities
(continued):
Repayments of borrowings (30091893380) (51681667124)
Payment for redeeming bonds (6000000000) (8000000000)
Payment for dividends or interest (8306333083) (13828515479)
Including: Profits paid to non-
controlling
shareholders of
subsidiaries (72650624) (39388061)
Payment for other financing activities V.61(3) b (7896143409) (2548995476)
Sub-total of cash outflows (52294369872) (76059178079)
Net cash flow used in financing
activities (21661368641) (21173251862)
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents 372295921 1882635112
V. Net decrease in cash and cash
equivalents V.62(1) b (12289056016) (12241448319)
Add: Cash and cash equivalents at
the beginning of the year 64382037764 76623486083
VI. Cash and cash equivalents at the
end of the year V.62(3) 52092981748 64382037764
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.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 2023
(Expressed in Renminbi Yuan)
Note 2023 2022
I. Cash flows from operating
activities:
Proceeds from sale of goods and
rendering of services 4312367550 5650186755
Proceeds from other operating
activities 622801775 2005413901
Sub-total of cash inflows 4935169325 7655600656
Payment for goods and services (1098622995) (1161216577)
Payment to and for employees (1333331329) (1681332214)
Payment of various taxes (433065340) (676007600)
Payment for other operating
activities (1099330089) (452287489)
Sub-total of cash outflows (3964349753) (3970843880)
Net cash flows generated from
operating activities XVI.11(1) 970819572 3684756776
II. Cash flows from investing
activities:
Proceeds from disposal of
investments 1200350000 330944027
Proceeds from disposal of
subsidiaries - -
Investment returns received 955365976 1257584843
Net proceeds from disposal of
fixed assets 682093 241034
Proceeds from other investing
activities 1260912332 10546180253
Sub-total of cash inflows 3417310401 12134950157
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
II. Cash flows from investing activities
(continued):
Payment for acquisition of fixed
assets intangible assets and other
long-term assets (618917399) (405565299)
Payment for acquisition of investments (16691342703) (3989687433)
Payment for other investing activities (5468000000) (14117701133)
Sub-total of cash outflows (22778260102) (18512953865)
Net cash flows used in investing
activities (19360949701) (6378003708)
III. Cash flows from financing activities:
Proceeds from issuance of debentures - 2000000000
Proceeds from borrowings 10000000000 25000000000
Proceeds from other financing
activities 19830000000 24936039463
Sub-total of cash inflows 29830000000 51936039463
Repayments of borrowings (4184100000) (25827547455)
Payment for redeeming bonds (6000000000) (8000000000)
Payment for dividends and interest (3751590381) (9842819608)
Payment for other financing activities (397385776) (4136747868)
Sub-total of cash outflows (14333076157) (47807114931)
Net cash flows generated from
financing activities 15496923843 4128924532
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 2023 (continued)
(Expressed in Renminbi Yuan)
Note 2023 2022
IV. Effect of foreign exchange rate changes
on cash and cash equivalents 30657074 76264084
V. Net (decrease) / increase in cash and
cash equivalents XVI.11(1) (2862549212) 1511941684
Add: Cash and cash equivalents at the
beginning of the year 7111879033 5599937349
VI. Cash and cash equivalents at the end of
the year XVI.11(2) 4249329821 7111879033
These financial statements were approved by the Board of Directors of the Company on 29
March 2024.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 2023
(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 Special reserve Surplus reserve earnings Sub-total interests Total
I. Balance at the beginning of the year 38196363421 8176366808 55224885675 3508201911 (1073768030) - 3241063934 35829465307 136086175204 65954391821 202040567025
II. Changes in equity during the year
1. Total comprehensive income - - - - (114919973) - - 2547435360 2432515387 (2080962755) 351552632
2. Shareholders’ contributions of
capital
(1) Contribution by non-controlling
interests - - - - - - - - - 3291140600 3291140600
(2) Cancellation of treasury V.
shares 39/41/42 (543834226) - (2244946976) (2788781202) - - - - - - -
(3) Equity-settled share-based
payments XII - - 309120206 (257384469) - - - - 566504675 22319221 588823896
(4) Payment for capital of holders
of other equity instruments V. 40 - (5967915094) (32084906) - - - - - (6000000000) - (6000000000)
3. Appropriation of profits
(1) Appropriation for surplus
reserve V. 44 - - - - - - 330597179 (330597179) - - -
(2) Accrued interest on holders of
other equity instruments V. 40 - 118551232 - - - - - (118551232) - - -
(3) Payment for interest on
holders of other equity
instruments V. 40 - (283600000) - - - - - - (283600000) - (283600000)
(4) Distributions to shareholders V. 45 - - - - - - - (2296367348) (2296367348) (106934768) (2403302116)
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 2023 (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 Special reserve Surplus reserve earnings Sub-total interests Total
4. Transfers within equity
(1) Transfer of other
comprehensive income to V.retained earnings 43/44/45 - - - - 51690779 - 117522 (51808301) - - -
5. Special reserve
(1) Accrued special reserve - - - - - 209367057 - - 209367057 42370558 251737615
(2) Used special reserve - - - - - (142894655) - - (142894655) (29280043) (172174698)
6. Others
(1) Other movements in equity
of associates V. 11/41 - - 61662689 - - - - - 61662689 1229195 62891884
(2) Others V. 41 - - (1205055942) - - - - - (1205055942) 1276105423 71049481
III. Balance at the end of the year 37652529195 2043402946 52113580746 462036240 (1136997224) 66472402 3571778635 35579576607 129428307067 68370379252 197798686319
These financial statements were approved by the Board of Directors of the Company on 29 March 2024.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 2022 (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 38445746482 14146997427 53917609094 3415768207 113551147 2889590205 37106514799 143204240947 74174525569 217378766516
Add: Changes in accounting policies - - - - - - (161882) (161882) (6241664) (6403546)
A djusted balance at the beginning of the year 38445746482 14146997427 53917609094 3415768207 113551147 2889590205 37106352917 143204079065 74168283905 217372362970
II. Changes in equity during the year
1. Total comprehensive income - - - - (1164537236) - 7541423198 6376885962 (9275404477) (2898518515)
2. Shareholders’ contributions of capital
(1) Contribution by non-controlling
interests - - - - - - - - 2301848242 2301848242
(2) Repurchase of treasury shares V. 42 - - - 1048154539 - - - (1048154539) - (1048154539)
V.
(3) Cancellation of treasury shares 39/41/42 (249383061) - (641811942) (891195003) - - - - - -
(4) Equity-settled share-based payments XII - - 654336707 (64525832) - - - 718862539 44728854 763591393
(5) Contribution by holders of other
equity instruments V. 40 - 1989320755 - - - - - 1989320755 - 1989320755
(6) Payment for capital of holders of
other equity instruments V. 40 - (7957047264) (42952736) - - - - (8000000000) - (8000000000)
3. Appropriation of profits
(1) Appropriation for surplus reserve V. 44 - - - - - 348186351 (348186351) - - -
(2) Accrued interest on holders of other
equity instruments V. 40 - 530695890 - - - - (530695890) - - -
(3) Payment for interest on holders of
other equity instruments V. 40 - (533600000) - - - - - (533600000) - (533600000)
(4) Distributions to shareholders V. 45 - - - - - - (7958923130) (7958923130) (54411212) (8013334342)
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 2022 (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. 43/44/45 - - - - (22781941) 3287378 19494563 - - -
5. Others
(1) Other movements in equity of
associates V. 11/41 - - 274685689 - - - - 274685689 845261 275530950
(2) Disposal of equities in
subsidiaries V. 41 - - - - - - - - (1154255778) (1154255778)
(3) Others V. 41 - - 1063018863 - - - - 1063018863 (77242974) 985775889
III. Balance at the end of the year 38196363421 8176366808 55224885675 3508201911 (1073768030) 3241063934 35829465307 136086175204 65954391821 202040567025
These financial statements were approved by the Board of Directors of the Company on 29 March 2024.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 2023
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive Retained
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Total
I. Balance at the beginning of the year 38196363421 8176366808 53693627213 3508201911 340345 3241063934 6624620470 106424180280
II. Changes in equity during the year
1. Total comprehensive income - - - - (295598180) - 3305971786 3010373606
2. Shareholders’ contributions of capital
V.
(1) Cancellation of treasury shares 39/41/42 (543834226) - (2244946976) (2788781202) - - - -
(2) Equity-settled share-based payments XII - - 331439427 (257384469) - - - 588823896
(3) Payment for capital of holders of other
equity instruments V. 40 - (5967915094) (32084906) - - - - (6000000000)
3. Appropriation of profits
(1) Appropriation for surplus reserve V. 44 - - - - - 330597179 (330597179) -
(2) Accrued interest on holders of other
equity instruments V. 40 - 118551232 - - - - (118551232) -
(3) Payment for interest on holders of other
equity instruments V. 40 - (283600000) - - - - - (283600000)
(4) Distributions to shareholders V. 45 - - - - - - (2296367348) (2296367348)
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 2023 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive Retained
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Total
4. Transfers within equity
(1) Transfer of other comprehensive income to
retained earnings XVI. 7/8 - - - - (1175221) 117522 1057699 -
5. Others
(1) Other movements in equity of associates XVI. 3/6 - - (6214034) - - - - (6214034)
III. Balance at the end of the year 37652529195 2043402946 51741820724 462036240 (296433056) 3571778635 7186134196 101437196400
These financial statements were approved by the Board of Directors of the Company on 29 March 2024.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 2022 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive Retained
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Total
I. Balance at the beginning of the year 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. 42 - - - 1048154539 - - - (1048154539)
(2) Cancellation of treasury shares V. 39/41/42 (249383061) - (641811942) (891195003) - - - -
(3) Equity-settled share-based payments XII - - 699065561 (64525832) - - - 763591393
(4) Contribution by holders of other equity
instruments V. 40 - 1989320755 - - - - - 1989320755
(5) Payment for capital of holders of other
equity instruments V. 40 - (7957047264) (42952736) - - - - (8000000000)
3. Appropriation of profits
(1) Appropriation for surplus reserve V. 44 - - - - - 348186351 (348186351) -
(2) Accrued interest on holders of other
equity instruments V. 40 - 530695890 - - - - (530695890) -
(3) Payment for interest on holders of
other equity instruments V. 40 - (533600000) - - - - - (533600000)
(4) Distributions to shareholders V. 45 - - - - - - (7958923130) (7958923130)
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 2022 (continued)
(Expressed in Renminbi Yuan)
Other
Other equity Less: Treasury comprehensive Retained
Note Share capital instruments Capital reserve shares income Surplus reserve earnings Total
4. Transfers within equity
(1) Transfer of other comprehensive
income to retained earnings XVI. 7/8 - - - - (32873780) 3287378 29586402 -
5. Others
(1) Other movements in equity of
associates XVI. 3/6 - - 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 29 March 2024.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 smart medicine engineering business and others. For information about the
subsidiaries of the Company refer to Note VIII.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 2023 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 2023.
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 (9).
5 Method used to determine the materiality threshold and the basis for selection
Items Materiality threshold
Significant receivables for which provisions for Amount of the individual accounts receivable ≥
bad and doubtful are individually assessed
RMB50 million
recoveries or reversals and written-offs
Significant prepayments contract liabilities Amount of the individual prepayments exceeds 0.5%
accounts payable and other payables with of the Group’s total assets
ageing of more than one year
Significant construction projects in progress Accumulated carrying amount of individual item at the
end of the period exceeds RMB10 billion
Significant non-wholly-owned subsidiaries， Total assets of non-wholly-owned subsidiaries exceed
10% of the Group’s total assets or total revenue of
joint ventures or associates
non-wholly-owned subsidiaries exceed 10% of the
Group’s total revenue
Significant capitalised R&D projects Accumulated expenditure of individual R&D project
exceeds 0.5% of the Group’s total assets
6 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
31consolidated 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.18). 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.
32For 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.12(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.
7 Consolidated financial statements
(1) General principles
The scope of consolidated financial statements is based on control and the consolidated
financial statements comprise the Company and its subsidiaries. Control exists when the
investor has all of 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.
33(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.7(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.
8 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.
349 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.16). Non-monetary items that are measured at historical cost in foreign currencies
are translated to Renminbi using the exchange rate at the transaction date. Non-monetary
items that are measured at fair value in foreign currencies are translated using the exchange
rate at the date the fair value is determined. The resulting exchange differences are
recognised in profit or loss except for the differences arising from the re-translation of equity
investments at fair value through other comprehensive income which are recognised in other
comprehensive income.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.
10 Financial instruments
Financial instruments include cash at bank and on hand investments in debt and equity
securities other than those classified as long-term equity investments (see Note III.12)
receivables payables loans and borrowings debentures payable and share capital.
(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Group
becomes a party to the contractual provisions of a financial instrument.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.24.
35(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.
36The 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.
37(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.
38The 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 bills receivable accounts receivable receivables under financing and
contract assets arising from ordinary business activities such as sale of goods and provision
of services as well as lease receivables arising from lease transactions are always
measured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimated
using a provision matrix based on the Group’s historical credit loss experience adjusted for
factors that are specific to the debtors and an assessment of both the current and forecast
general economic conditions at the balance sheet date.Except for bills receivable accounts receivable receivables under financing contract assets
and lease receivables the Group measures loss allowances at an amount equal to 12-month
ECLs for the following financial instruments and at an amount equal to lifetime ECLs for all
other financial instruments:
- 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.Provisions for bad and doubtful debts arising from receivables
Categories of groups for collective assessment based on credit risk characteristics and basis
for determination
39Item classification of partition and combination
Bills receivable Based on the different credit risk characteristics of acceptors
the Group classifies bills receivable into two groups: bank
acceptance bills and commercial acceptance bills.Accounts Historically there is no significant difference in terms of
receivable occurrence of losses among different customer types for the
Group. Therefore the Group classifies accounts receivable
into three groups specifically: receivables from customers with
high credit risk receivables from customers with low credit risk
and receivables from customers with medium credit risk.Receivables The Group’s receivables under financing are bank acceptance
under financing bills held for dual purposes. As the accepting banks have high
credit ratings the Group considers all receivables under
financing as a single group.Other receivables The Group’s other receivables mainly include cash pledges
and deposits receivable petty cash receivables due from
employees receivables due from related parties dividends
receivable etc. Based on the nature of receivables and the
credit risk characteristics of different counterparties the Group
classifies other receivables into three groups specifically:
receivables with high credit risk receivables with low credit
risk and receivables with medium credit risk.Contract assets Historically there is no significant difference in terms of
occurrence of losses among different customer types for the
Group. Therefore the Group makes provisions for bad and
doubtful debts arising from contract assets on the basis of all
customers being one group without further segmentation by
different customer types.Financial instruments that have low credit risk
The credit risk on a financial instrument is considered low if the financial instrument has a low
risk of default the borrower has a strong capacity to meet its contractual cash flow
obligations in the near term and adverse changes in economic and business conditions in the
longer term may but will not necessarily reduce the ability of the borrower to fulfil its
contractual cash flow obligations.
40Significant 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 incomeother than
offsetting the carrying amount.
41Write-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.
4211 Inventories
(1) Inventory classification
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) Issuance valuation methods
Cost of inventories recognised is calculated using the weighted average method.
(3) Inventory system
The Group maintains a perpetual inventory system.
(4) Amortization method for low-value consumables and packing materials
Low-value consumables and working capital materials such as packaging are amortized
using the lump-sum transfer method and are included in the cost of the related assets or in
profit or loss for the current period.
(5) Confirmation criteria and method for provision for obsolete inventories
At the balance sheet date inventories are carried at the lower of cost and net realisable
value.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.
4312 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.31). 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.20.
44In the Group’s consolidated financial statements subsidiaries are accounted for in
accordance with the policies described in Note III.7.(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have joint
control (see Note III.12(3)) and rights to the net assets of the arrangement.An associate is an entity over which the Group has significant influence (see Note
III.12(3)).An investment in a joint venture or an associate is accounted for using the equity
method for subsequent measurement unless the investment is classified as held for
sale (see Note III.31).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.
45- 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.20.
(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.
13 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.31). For the impairment of the investment properties refer to Note III.20.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%
4614 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.15.Where the parts of an item of fixed assets have different useful lives or provide benefits to
the Group in a different pattern thus necessitating use of different depreciation rates or
methods each part is recognised as a separate fixed asset.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.31).The estimated useful lives residual value rates and depreciation rates of each class of fixed
assets are as follows:
Estimated useful Residual value rate Depreciation rate
Class life (years) (%) (%)
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.20.
(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.
47Gains 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.
15 Construction in progress
The cost of self-constructed assets includes the cost of materials direct labour capitalised
borrowing costs (see Note III.16) and any other costs directly attributable to bringing the
asset to working condition for its intended use.A self-constructed asset is classified as construction in progress and transferred to fixed
asset when it is ready for its intended use. No depreciation is provided against construction
in progress.The criteria according to which construction projects in progress are transferred to fixed
assets:
Category Criteria for the transfers to fixed assets
Satisfy the acceptance criteria and be available for its predetermined
Plant and buildings readiness for use
Machinery and Installation and commissioning are qualified and be available for its
equipment predetermined readiness for use
Construction in progress is stated in the balance sheet at cost less accumulated impairment
losses (see Note III.20).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.
16 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
48applicable 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.During the capitalisation period exchange differences related to the principal and interest on
a specific-purpose borrowing denominated in foreign currency are capitalised as part of the
cost of the qualifying asset. The exchange differences related to the principal and interest on
foreign currency borrowings other than a specific-purpose borrowing are recognised as a
financial expense when incurred.The capitalisation period is the period from the date of commencement of capitalisation of
borrowing costs to the date of cessation of capitalisation excluding any period over which
capitalisation is suspended. Capitalisation of borrowing costs commences when expenditure
for the asset is being incurred borrowing costs are being incurred and activities of acquisition
and construction that are necessary to prepare the asset for its intended use are in progress
and ceases when the assets become ready for their intended use. When the parts of the
qualifying assets acquired or constructed that are eligible for capitalisation are completed
separately and each part is available for use in other parts of the construction process or
can be sold externally and for the purpose of making the parts of the assets ready for use or
necessary for the sales status the acquisition or construction activities have been
substantially completed the Group ceases the capitalisation of the borrowing costs related to
the parts of the assets. Capitalisation of borrowing costs is suspended when the acquisition
and construction activities are interrupted abnormally for a period of more than three months.
17 Intangible assets
(1) Estimated useful life and amortisation method
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.20). For an
intangible asset with finite useful life its cost less estimated residual value and accumulated
impairment losses is amortised using the straight-line method over its estimated useful life
unless the intangible asset is classified as held for sale (see Note III.31).The estimated useful lives basis for determination and amortisation methods of intangible
assets are as follows:
Basis for Amortisation
Item Estimated useful life (years) determination method
Terms of land use Straight-line
Land use rights 20 - 50 years rights method
Straight-line
Patents and know-how 5 - 20 years Terms of patents method
Straight-line
Computer software 3 - 10 years Estimated useful life method
Straight-line
Others 5 - 20 years Estimated useful life method
49Useful lives and amortisation methods of intangible assets 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.
(2) The scope of research and development expenditures
The Group aggregates all expenses directly related to R&D activities into R&D expenditures
which encompass labor costs material costs depreciation and amortization as well as other
miscellaneous expenses. The expenditures on internal research and development projects
within the Group are categorized into two phases: research phase expenditures and
development phase expenditures.Expenditures in the research phase are recognized as an expense in the current period
when they occur. As for the expenditures in the development phase if a product or process
developed during this phase is deemed technically and commercially feasible and the Group
possesses sufficient resources and intention to complete the development work and the
development phase expenditures can be reliably measured such expenditures will be
capitalized. Capitalized development expenditures are presented on the balance sheet at
cost less any impairment provision (as per Note 3 Item 20). Other development costs that do
not meet capitalization criteria are recognized as expenses in the period in which they arise.In instances where products or by-products resulting from the R&D process are sold
externally the enterprise follows the stipulations outlined in Accounting Standards for
Enterprises No. 14 - Revenue Recognition and No. 1 - Inventories respectively to
separately account for the corresponding revenues and costs ultimately recognizing them as
income or expenses in the current period.
(3) The basis for the classification of internal R&D projects under the research phase and the
development phase
- The phase of planned investigations to acquire new techniques and knowledge should be
identified as the research phase which is characterised by among other things a
planned and exploratory approach.- The phase of applying research results or other knowledge to a plan or design to produce
new or substantially improved materials devices products etc. prior to commercial
production or use shall be identified as the development phase which is characterised by
its relevance and greater likelihood of generating results.
18 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.20). 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.
5019 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)
Technology royalty fees prepaid 1 - 11 years
Payment for public facilities construction and use 10 - 15 years
Leasehold improvements 2 - 10 years
Others 2 - 10 years
20 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date based
on internal and external sources of information to determine whether there is any indication
of impairment:
- fixed assets
- construction in progress
- right-of-use assets
- intangible assets
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses etc.If any indication exists the recoverable amount of the asset is estimated. In addition the
Group estimates the recoverable amounts of goodwill at each year-end irrespective of
whether there is any indication of impairment. Goodwill is allocated to each asset group or
set of asset groups which is expected to benefit from the synergies of the combination for
the purpose of impairment testing.The recoverable amount of an asset (or asset group set of asset groups) is the higher of its
fair value (see Note III.21) 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
51the 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.
21 Fair value measurement
Unless otherwise specified the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date.When measuring fair value the Group takes into account the characteristics of the particular
asset or liability (including the condition and location of the asset and restrictions if any on
the sale or use of the asset) that market participants would consider when pricing the asset
or liability at the measurement date and uses valuation techniques that are appropriate in
the circumstances and for which sufficient data and other information are available to
measure fair value. Valuation techniques mainly include the market approach the income
approach and the cost approach.
22 Provisions
A provision is recognised for an obligation related to a contingency if the Group has a
present obligation that can be estimated reliably and it is probable that an outflow of
economic benefits will be required to settle the obligation.A provision is initially measured at the best estimate of the expenditure required to settle the
related present obligation. Where the effect of the time value of money is material provisions
are determined by discounting the expected future cash flows. Factors pertaining to a
contingency such as the risks uncertainties and time value of money are taken into account
as a whole in reaching the best estimate. Where there is a continuous range of possible
outcomes for the expenditure required and each possible outcome in that range is as likely
as any other the best estimate is the mid-point of that range. In other cases the best
estimate is determined 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.
5223 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.
24 Revenue recognition
Revenue is the gross inflow of economic benefits arising in the course of the Group’s
ordinary activities when the inflows result in increase in shareholders’ equity other than
increase relating to contributions from shareholders.Revenue is recognised when the Group satisfies the performance obligation in the contract
by transferring the control over relevant goods or services to the customers.Where a contract has two or more performance obligations the Group determines the stand-
alone selling price at contract inception of the distinct good or service underlying each
performance obligation in the contract and allocates the transaction price in proportion to
those stand-alone selling prices. The Group recognises as revenue the amount of the
transaction price that is allocated to each performance obligation. The stand-alone selling
price is the price at which the Group would sell a promised good or service separately to a
customer. If a stand-alone selling price is not directly observable the Group considers all
information that is reasonably available to the entity maximises the use of observable inputs
to estimate the stand-alone selling price.For the contract which the Group grants a customer the option to acquire additional goods or
services (such as loyalty points discount coupons for future purchase etc.) the Group
assesses whether the option provides a material right to the customer. If the option provides
a material right the Group recognises the option as a performance obligation and
recognises revenue when those future goods or services are transferred or when the 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.
53For 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.For performance obligation satisfied at a point in time the Group recognises revenue at the
point in time at which the customer obtains control of relevant goods or services. To
determine whether a customer has obtained control of goods or services the Group
considers the following indicators:
- the Group has a present right to payment for the goods or services;
- the Group has transferred physical possession of the goods to the customer;
- the Group has transferred the legal title of the goods or the significant risks and rewards of
ownership of the goods to the customer; and
- the customer has accepted the goods or services.The Group determines whether it is a principal or an agent depending on whether it obtains
control of the specified good or service before that good or service is transferred to a
customer. The Group is a principal if it controls the specified good or service before that good
or service is transferred to a customer and recognises revenue in the gross amount of
consideration to which it has received (or receivable). Otherwise the Group is an agent and
recognises revenue in the amount of any fee or commission to which it expects to be entitled.
54The 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)
For a change in the scope or price of a contract that is approved by the parties to the
contract the Group accounts for the contract modification according to the following
situations:
- The addition of promised goods or services are distinct and the price of the contract
increases by an amount of consideration reflects stand-alone selling prices of the
additional promised goods or services the Group shall account for a contract modification
as a separate contract.- If the above criteria are not met and the remaining goods or services are distinct from the
goods or services transferred on the date of the contract modification the Group accounts
for the contract modification as if it were a termination of the existing contract and the
creation of a new contract.- If the above criteria are not met and the remaining goods or services are not distinct from
the goods or services transferred on the date of the contract modification the Group
accounts for the contract modification as if it were a part of the existing contract. The
effect that the contract modification has on the revenue is recognised as an adjustment to
revenue in the reporting period.
55A contract asset is the Group’s right to consideration in exchange for goods or services that it
has transferred to a customer when that right is conditional on something other than the
passage of time. The Group recognises loss allowances for expected credit loss on contract
assets (see Note III.10(6)). Accounts receivable is the Group’s right to consideration that is
unconditional (only the passage of time is required). A contract liability is the Group’s
obligation to transfer goods or services to a customer for which the Group has received
consideration (or an amount of consideration is due) from the customer.The following is 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.
25 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
56- 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.
26 Employee benefits
(1) Short-term employee benefits
Employee wages or salaries bonuses social security contributions such as medical
insurance work injury insurance maternity insurance and housing fund measured at the
amount incurred or accrued at the applicable benchmarks and rates are recognised as a
liability as the employee provides services with a corresponding charge to profit or loss or
included in the cost of assets where appropriate.
(2) Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China the Group
participated in a defined contribution basic pension insurance plan and unemployment
insurance plan in the social insurance system established and managed by government
organisations and annuity plan established by the Group in compliance with the national
policy of the corporation annuity. The Group makes contributions to basic pension and
unemployment insurance plans based on the applicable benchmarks and rates stipulated by
the government. Annuity is accrued based on the gross salaries of the employees. Basic
pension insurance contributions payable are recognised as a liability as the employee
provides services with a corresponding charge to profit or loss or included in the cost of
assets where appropriate.
(3) Post-employment benefits – defined benefit plans
During the reporting period the Group did not have defined benefit plans.
(4) Termination benefits
When the Group terminates the employment with employees before the employment
contracts expire or provides compensation under an offer to encourage employees to accept
voluntary redundancy a provision is recognised with a corresponding expense in profit or
loss at the earlier of the following dates:
- When the Group cannot unilaterally withdraw the offer of termination benefits because of
an employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of
termination benefits and has raised a valid expectation in those affected that it will carry
out the restructuring by starting to implement that plan or announcing its main features to
those affected by it.
5727 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.In respect of the policy-based preferential loan interest subsidy obtained by the Group if the
interest subsidy is appropriated to the lending bank which shall provide loans to the Group at
the policy-based preferential interest rate the actual loan amount is used as the entry value
and relevant borrowing costs are calculated on the basis of the loan principal and the
preferential interest rate. If the interest subsidy is directly appropriated to the Group relevant
borrowing costs shall be offset by corresponding interest subsidy. If borrowing costs are
capitalized as part of the cost of the asset (see Note III. 16) the interest subsidy shall be
used to offset relevant asset costs.
5828 Specific reserve
The Group recognises a safety fund in the specific reserve pursuant to relevant government
regulations with a corresponding increase in the costs of the related products or expenses.When the safety fund is subsequently used for revenue expenditure the specific reserve is
reduced accordingly. When the safety fund is subsequently used for the construction or
acquisition of fixed assets the Group recognises the capitalised expenditure incurred as the
cost of the fixed assets when the related assets are ready for their intended use. In such
cases the specific reserve is reduced by the amount that corresponds to the cost of the fixed
assets and the credit side is recognised in the accumulated depreciation with respect to the
related fixed assets. Consequently such fixed assets are not depreciated in subsequent
periods.
29 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they
relate to a business combination or items recognised directly in equity (including other
comprehensive income).Current tax is the expected tax payable calculated at the applicable tax rate on taxable
income for the year plus any adjustment to tax payable in respect of previous years.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.
59At the balance sheet date deferred tax assets and deferred tax liabilities are offset if all of
the following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and current
tax assets;
- they relate to income taxes levied by the same tax authority on either:
- the same taxable entity; or
- different taxable entities which intend either to settle the current tax liabilities and
current tax assets on a net basis or to realise the assets and settle the liabilities
simultaneously in each future period in which significant amounts of deferred tax
liabilities or deferred tax assets are expected to be settled or recovered.
30 Leases
At inception of a contract the Group assesses whether a contract is or contains a lease. A
contract is or contains a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.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.24.
(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.
60The 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.20.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 that
specific lease asset as a brand new asset value is less valuable. 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.
61Under 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.10.Variable lease payments not included in the measurement of net investment in the lease are
recognised as income as they are earned.Lease receipts from operating leases 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.
31 Assets held for sale and discontinued operations
(1) Non-current assets or disposal group as 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.21) less costs to sell (except financial assets (see note
III.10) deferred tax assets (see note III.29). Any excess of the carrying amount over the fair
value (see Note III.21) less costs to sell is recognised as an impairment loss in profit or loss.
(2) Discontinued operations
The Group classifies a component as a discontinued operation either upon disposal of the
operation or when the operation meets the criteria to be classified as held for sale if it is
separately identifiable and satisfies one of the following conditions:
62- It represents a separate major line of business or a separate geographical area of
operations;
- It is part of a single coordinated plan to dispose of a separate major line of business or a
separate geographical area of operations;
- It is a subsidiary acquired exclusively with a view to resale.Where an operation is classified as discontinued in the current period profit or loss from
continuing operations and profit or loss from discontinued operations are separately
presented in the income statement for the current period. The comparative information for
profit or loss from discontinued operations which used to presented as profit or loss from
continuing operations in the prior period is re-presented as profit or loss from discontinued
operations in the comparative income statement.
32 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.
33 Related parties
If a party has the power to control jointly control or exercise significant influence over
another party or vice versa or where two or more parties are subject to common control or
joint control from another party they are considered to be related parties. Related parties
may be individuals or enterprises. Enterprises with which the Company is under common
control only from the State and that have no other related party relationships are not
regarded as related parties.In addition to the related parties stated above the Company determines related parties
based on the disclosure requirements of Administrative Procedures on the Information
Disclosures of Listed Companies issued by the CSRC.
34 Segment reporting
Reportable segments are identified based on operating segments which are determined
based on the structure of the Group’s internal organisation management requirements and
internal reporting system after taking the materiality principle into account. Two or more
operating segments may be aggregated into a single operating segment if the segments
have the similar economic characteristics and are same or similar in respect of the nature of
each segment’s products and services the nature of production processes the types or
classes of customers for the products and services the methods used to distribute the
products or provide the services and the nature of the regulatory environment.Inter-segment revenues are measured on the basis of the actual transaction prices for such
transactions for segment reporting. Segment accounting policies are consistent with those for
the consolidated financial statements.
35 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
63ongoing 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.14 and 17) and provision for impairment of
various types of assets (see Notes V.4 6 7 8 10 14 15 16 18 and 19). Other significant
accounting estimates are as follows:
(i) Note V.21: Recognition of deferred tax assets;
(ii) Note V.32: Warranty provisions;
(iii) Note X. – Fair value measurements of financial instruments; and
(iv) Note XII: Share-based payments.Significant judgements made by the Group in the application of accounting policies are as
follows:
(i) Note VIII. 1(1) –Disclosure of significant judgements and assumptions of control and
exercising significant influence over other entities.
36 Changes in significant accounting policies
(1) Description of and reasons for changes in accounting policies
In 2023 the Group has adopted the revised accounting requirements and guidance under
CASs newly issued by the Ministry of Finance (“MOF”)(a) “The accounting treatment of deferred tax related to assets and liabilities arising from asingle transaction excluded from the scope of the initial recognition exemption” in CAS
Bulletin No.16 (Caikuai [2022] No.31) (“CAS Bulletin No.16”)
According to the provisions the Group does not apply the initial recognition exemption
under CAS 18 Income Taxes to temporary differences arising from the initial
recognition of assets or liabilities in a single transaction that is not a business
combination affects neither accounting profits nor taxable profit (or deductible losses)
and gives rise to equal taxable and deductible temporary differences.In accordance with the above provisions the Group has made retrospective
adjustments for relevant transactions that occurred between 1 January 2022 and the
date of initial application and to which the provisions apply. For the taxable and
deductible temporary differences arising from the recognition of lease liabilities and
right-of-use assets on 1 January 2022 as a result of the relevant transactions to which
the provisions apply the Group has recognised the cumulative effect as an adjustment
to the opening balance of retained earnings and other related financial statement items
for the earliest period presented in the financial statements in accordance with the
above provisions and the requirements of CAS 18 Income Tax.
64(i) The effects on the financial statements
The effects on each of the line items in the consolidated balance sheet as at 31
December 2023 are as follows:
Increase /
(decrease) in the
line items as a
result of applying
new accounting
policies
The Group
Assets:
Deferred tax assets 7012197
Liabilities:
Deferred tax liabilities 14474660
Shareholders’ equity:
Retained earnings (7969365)
Capital reserve (5874381)
Non-controlling interests 6381283
The effects on each of the line items in the consolidated income statement for the
year ended 31 December 2023 are as follows:
Increase / (decrease)
in the line items as a
result of applying
new accounting
policies
The Group
Profit before income tax -
Less: Income tax expenses 2267638
Net profit for the year (2267638)
Attributable to: Shareholders of the Company (1647109)
Non-controlling interests (620529)
65(ii) The effects on the comparative financial statements
The effects of these changes in accounting policies on the net (loss) for the year
ended 31 December 2022 and opening and closing balances of shareholders’
equity as at 1 January and 31 December 2022 are summarised as follows:
The Group
20222022
2022
Closing balance of Opening balance of Net loss shareholders’ equity shareholders’ equity
Net loss and shareholders’ equity
before adjustments (1737175168) 202050297126 217378766516
Deferred tax related to assets and
liabilities arising from a single
transaction excluded from the
scope of the initial recognition
exemption (3326555) (9730101) (6403546)
Net loss and shareholders’ equity
after adjustments (1740501723) 202040567025 217372362970
The effects on each of the line items in the consolidated balance sheet as at 31
December 2022 are as follows:
The Group
The amounts of
Before adjustments adjustments After adjustments
Assets:
Deferred tax assets 70250425 5762724 76013149
Liabilities:
Deferred tax liabilities 1274406833 15492825 1289899658
Shareholders’ equity
Capital reserve 55218504392 6381283 55224885675
Retained earnings 35839081781 (9616474) 35829465307
Non-controlling interests 65960886731 (6494910) 65954391821
The effects on each of the line items in the consolidated income statement for the
year ended 31 December 2022 are as follows:
The Group
The amounts of
Before adjustments adjustments After adjustments
Profit before income tax 51218939 - 51218939
Less: Income tax expenses 1788394107 3326555 1791720662
Net profit for the year (1737175168) (3326555) (1740501723)
Attributable to: Shareholders of the
Company 7550877790 (9454592) 7541423198
Non-controlling interests (9288052958) 6128037 (9281924921)
66(iii) After retrospective adjustments of the above accounting policy changes the
consolidated balance sheet as at 1 January 2022 are as follows:
The Group
Assets
Current assets:
Cash at bank and on hand 80986835088
Financial assets held for trading 10028172853
Bills receivable 217734298
Accounts receivable 35503414820
Prepayments 1112880007
Other receivables 1922828378
Inventories 27805161436
Contract assets 75698324
Non-current assets due within one year 7700735
Other current assets 3578919710
Total current assets 161239345649
Non-current assets:
Long-term receivables 29918542
Long-term equity investments 6040948317
Investments in other equity instruments 519088146
Other non-current financial assets 606895447
Investment properties 1158365401
Fixed assets 227141366884
Construction in progress 32099711879
Right-of-use assets 753164237
Intangible assets 11209498406
Goodwill 1130006987
Long-term deferred expenses 636530502
Deferred tax assets 198375250
Other non-current assets 7477427483
Total non-current assets 289001297481
Total assets 450240643130
67 The Group
Liabilities and shareholders’ equity
Current liabilities:
Short-term loans 2072057332
Bills payable 827958031
Accounts payable 32455830694
Advance payments received 146140084
Contract liabilities 3765081554
Employee benefits payable 5133155237
Taxes payable 2200249305
Other payables 23835374942
Non-current liabilities due within one year 28874958714
Other current liabilities 4051532509
Total current liabilities 103362338402
Non-current liabilities:
Long-term loans 116078666587
Debentures payable 359586437
Lease liabilities 669130264
Long-term payables 906592838
Deferred income 6416089611
Deferred tax liabilities 1540066145
Other non-current liabilities 3535809876
Total non-current liabilities 129505941758
Total liabilities 232868280160
The Group
Shareholders’ equity:
Share capital 38445746482
Other equity instruments 14146997427
Capital reserve 53917609094
Less: Treasury shares 3415768207
Other comprehensive income 113551147
Surplus reserve 2889590205
Retained earnings 37106352917
Total equity attributable to shareholders of the Company 143204079065
Non-controlling interests 74168283905
Total shareholders’ equity 217372362970
Total liabilities and shareholders’ equity 450240643130
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% (2022: 15%).Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatment No.
28 corporate income tax for key advanced and high-tech enterprises supported by the State
is applicable to a preferential tax rate of 15%.On 30 November 2023 the Company renewed the High-tech Enterprise Certificate No.GR202311004505 which was entitled jointly by Beijing Municipal Science and Technology
Commission Beijing Municipal Financial Bureau Beijing Municipal Tax Service State
Taxation Administration. The Company is subject to corporate income tax rate of 15% since
the date of certification with the valid period of three years.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 main 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
Chongqing BOE Optoelectronics Co. Ltd. (Chongqing BOE) 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
Lighting) 15% High-tech enterprise
Beijing BOE Vacuum Electronics Co. Ltd. (Vacuum Electronics) 15% High-tech enterprise
Beijing BOE Vacuum Technology Co. Ltd. (Vacuum Technology) 15% High-tech enterprise
Beijing BOE Energy Technology Co. Ltd. (BOE Energy) 15% High-tech enterprise
Fuzhou BOE Optoelectronics Technology Co. Ltd. (Fuzhou BOE) 15% High-tech enterprise
Hefei BOE Display Technology Co. Ltd. (Hefei Display
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 Display
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
Qingdao BOE Optoelectronics Technology Co. Ltd. (Qingdao
BOE) 15% High-tech enterprise
Hefei BOE Ruisheng Technology Co. Ltd. (Hefei Ruisheng) 15% High-tech enterprise
Chongqing BOE Display Technology Co. Ltd. (Chongqing Display
Technology) 15% High-tech enterprise
Mianyang BOE Electronic Technology Co. Ltd. (Mianyang Encouraged enterprise in
Electronic Technology) 15% Western Regions
BNJ Technology Co. Ltd. (BNJ) 15% High-tech enterprise
Beijing United Ultra High-Definition Video Technology
Collaboration Center Co. Ltd. (Beijing United Ultra HD) 15% High-tech enterprise
70V. Notes to the consolidated financial statements
1 Cash at bank and on hand
20232022
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
Cash on hand
RMB 696549 796306
USD 1978 7.0827 14010 1773 6.9646 12348
HKD 35281 0.9062 31972 35650 0.8933 31846
JPY 197450 0.0502 9912 106508 0.0524 5581
KRW 70909 0.0055 390 70909 0.0055 390
Other foreign currencies 50134 49796
Sub-total 802967 896267
Bank deposits
RMB 48638787209 43646054088
USD 3037570050 7.0827 21514197393 2681806253 6.9646 18677707830
HKD 19237661 0.9062 17433168 364050751 0.8933 325206536
JPY 3951660159 0.0502 198373340 10556434427 0.0524 553157164
KRW 1313182909 0.0055 7222506 578139636 0.0055 3179768
EUR 16331789 7.8592 128354796 200208832 7.4229 1486130139
Other foreign currencies 89596227 78007216
Sub-total 70593964639 64769442741
Other monetary funds
RMB 1731642660 3914979538
USD 16806283 7.0827 119033861 13176444 6.9646 91768662
HKD 61396 0.9062 55637 438830 0.8933 392007
JPY 436114622 0.0502 21892954 435651794 0.0524 22828154
Sub-total 1872625112 4029968361
Total 72467392718 68800307369
Including: Total overseas deposits were equivalent to RMB 6120969123 (2022: RMB
5780461058).
As at 31 December 2023 other monetary funds included deposits with securities companies
by the Group amounting to RMB 3085648 which can be withdrew on demand. The rest
was restricted monetary funds of which RMB 81101328was pledged for issuance of bills
payable and an equivalent to RMB 1788438136was 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 2609817 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.
712 Financial assets held for trading
31 December 31 December
Item 2023 2022
Financial assets at fair value through profit or loss
- Structured deposit and wealth management
products 7476126776 16931468153
- Investment in equity instruments 279837719 256525783
Total 7755964495 17187993936
3 Bills receivable
(1) Classification of bills receivable
31 December 31 December
Item 2023 2022
Bank acceptance bills 342699932 211292061
Commercial acceptance bills 32896723 500000
Sub-total 375596655 211792061
Less: Provision for bad and doubtful debts 19644 -
Total 375577011 211792061
All of the above bills are due within one year.
(2) The pledged bills receivable of the Group at the end of the year:
Pledged amount
at the end of the
Item year
Bank acceptance bills 58113245
72(3) Outstanding endorsed or discounted bills that have not matured of the Group at the end of
the year:
Item
Amount Amount not
derecognised in derecognised in
20232023
Bank acceptance bills - 172240824
For the year ended 31 December 2023 there was no amount transferred to accounts
receivable from bills receivable due to non-performance of the issuers of the Group (2022:
Nil).
(4) Bills receivable by provisioning method
31 December 2023
Provision for bad and doubtful
Book value debts
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Collective assessment
- Bank acceptance bills group 342699932 91% - 0% 342699932
- Commercial acceptance bills
group 32896723 9% 19644 0% 32877079
Total 375596655 100% 19644 0% 375577011
(5) Movements of provisions for bad and doubtful debts
2023
Commercial
acceptance bills
Balance at the beginning of the year -
Additions during the year 19644
Recoveries or reversals during the year -
Written-off during the year -
Balance at the end of the year 19644
734 Accounts receivable
(1) The Group’s accounts receivable by customer type:
31 December 31 December
Item 2023 2022
Amounts due from related parties 848755589 1070848317
Amounts due from other customers 32651912378 27252679049
Sub-total 33500667967 28323527366
Less: Provision for bad and doubtful debts 135251477 119879797
Total 33365416490 28203647569
(2) The Group’s accounts receivable by currency type:
20232022
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 17032805950 12806183088
USD 2246823876 7.0827 15913579467 2139614722 6.9646 14901560693
JPY 5572060 0.0502 279717 5046551 0.0524 264439
Other foreign currencies 554002833 615519146
Sub-total 33500667967 28323527366
Less: Provision for bad and doubtful
debts 135251477 119879797
Total 33365416490 28203647569
(3) The ageing analysis of accounts receivable is as follows:
31 December 31 December
20232022
Within 1 year (inclusive) 32716203140 27791874623
Over 1 year but within 2 years (inclusive) 350015788 232130123
Over 2 years but within 3 years (inclusive) 191517633 151304998
Over 3 years 242931406 148217622
Sub-total 33500667967 28323527366
Less: Provision for bad and doubtful debts 135251477 119879797
Total 33365416490 28203647569
The ageing is counted starting from the date when accounts receivable are recognised.
74(4) Accounts receivable by provisioning method
31 December 2023
Book value Provision for impairment
Percentage Percentage
Category Amount (%) Amount (%) Carrying amount
Individual assessment
- Customers with high credit risk 24192778 0% 21753190 90% 2439588
- Customers with low credit risk 799508925 2% - 0% 799508925
Collective assessment
- Customers with moderate credit risk 32676966264 98% 113498287 0% 32563467977
Total 33500667967 100% 135251477 0% 33365416490
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
(a) Criteria and details for collective assessment:
Customer group Basis
Customers with high credit risk With special matters litigations or the deterioration
of customers’ credit status
Customers with low credit risk Banks insurance companies large state-owned
enterprises and public institutions
Customers with moderate credit Customers not included in Groups above
risk
(b) Assessment of ECLs on accounts receivable:
At all times the Group measures the impairment loss for accounts receivable at an
amount equal to lifetime ECLs and the ECLs are based on the number of overdue
days and the expected loss rate. According to the Group’s historical experience
different loss models are applicable to different customer groups.
(5) Movements of provisions for bad and doubtful debts:
31 December 2023
Customers with high Customers with low Customers with
credit risk credit risk moderate credit risk Total
Balance at the beginning of the year 59921373 - 59958424 119879797
Charge during the year 4972817 - 71147926 76120743
Recoveries during the year (43645120) - (17261740) (60906860)
Written-off during the year (68126) - (213525) (281651)
Translation differences 572246 - (132798) 439448
Balance at the end of the year 21753190 - 113498287 135251477
75 31 December 2022
Customers with high Customers with low Customers with
credit risk credit risk moderate credit risk Total
Balance at the beginning of the year 46406137 - 35361003 81767140
Charge during the year 39701034 - 38122840 77823874
Recoveries during the year (18395999) - (9530579) (27926578)
Written-off during the year (8201685) - (6332757) (14534442)
Translation differences 411886 - 2337917 2749803
Balance at the end of the year 59921373 - 59958424 119879797
(6) Five largest accounts receivable and contract assets by debtor at the end of the year
The total of five largest accounts receivable and contract assets of the Group at the end of
the year was RMB 11169787517 representing 33% of the total accounts receivable and
contract assets..
5 Receivables financing
(1) Receivables financing by category
31 December 31 December
Category 2023 2022
Bank acceptance bills 408534622 -
(2) Receivables financing that are endorsed or discounted but have not matured of the Group at
the end of the year:
Category 2023 2023
Amount Amount not
derecognised derecognised
Bank acceptance bills 913806803 -
6 Prepayments
(1) The Group’s prepayments by category:
31 December 31 December
20232022
Prepayment for electricity water gas and
power 238019515 234247912
Prepayment for inventory 202223873 261349159
Others 118416392 94167609
Total 558659780 589764680
76(2) The ageing analysis of prepayments is as follows:
31 December 2023 31 December 2022
Ageing Amount Percentage (%) Amount Percentage (%)
Within 1 year (inclusive) 478067697 86% 471778052 80%
Over 1 year but within 2 years (inclusive) 22099954 4% 112700267 19%
Over 2 years but within 3 years (inclusive) 53855290 9% 2959783 1%
Over 3 years 4636839 1% 2326578 0%
Total 558659780 100% 589764680 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
211232794 representing 38% of the total prepayments.
7 Other receivables
(1) The Group’s other receivables by customer type:
31 December 31 December
Customer type 2023 2022
Amounts due from related parties 787519 16588534
Amounts due from other customers 738982314 969833087
Sub-total 739769833 986421621
Less: Provision for bad and doubtful
debts 13110626 10612385
Total 726659207 975809236
(2) The Group’s other receivables by currency type:
31 December 2023 31 December 2022
Amount in Amount in
original Exchange RMB/RMB original Exchange RMB/RMB
currency rate equivalents currency rate equivalents
RMB 478724580 480934242
USD 33442302 7.0827 236861792 69194294 6.9646 481910580
JPY 25775874 0.0502 1293949 316069 0.0524 16562
Other foreign currencies 22889512 23560237
Sub-total 739769833 986421621
Less: Provision for bad and
doubtful debts 13110626 10612385
Total 726659207 975809236
77(3) The ageing analysis of the Group’s other receivables is as follows:
31 December 2023 31 December 2022
Within 1 year (inclusive) 330573576 367646687
Over 1 year but within 2 years (inclusive) 121561167 362777830
Over 2 years but within 3 years
(inclusive) 40445484 14948621
Over 3 years 247189606 241048483
Sub-total 739769833 986421621
Less: Provision for bad and doubtful
debts 13110626 10612385
Total 726659207 975809236
The ageing is counted starting from the date when other receivables are recognised.
(4) The Group’s other receivables by provisioning method
31 December 2023
Book value Provision for impairment
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Individual assessment
- Amounts with high
credit risk 12515014 2% 12515014 100% -
- Amounts with low
credit risk 705496057 95% - 0% 705496057
Collective assessment
- Amounts with medium
credit risk 21758762 3% 595612 3% 21163150
Total 739769833 100% 13110626 2% 726659207
31 December 2022
Book value Provision for impairment
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Individual assessment
- Accounts with high
credit risk 10595616 1% 10595616 100% -
- Accounts with low credit
risk 941381539 95% - 0% 941381539
Collective assessment
- Accounts with medium
credit risk 34444466 4% 16769 0% 34427697
Total 986421621 100% 10612385 1% 975809236
78(5) Movements of provisions for bad and doubtful debts
20232022
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Lifetime ECL Lifetime ECL- Lifetime ECL Lifetime ECL-
12-month - Not credit Credit 12-month - Not credit Credit
ECL impaired impaired Total ECL impaired impaired Total
Balance at the
beginning of
the year 9822 6947 10595616 10612385 - 300 9043516 9043816
Additions
during the
year 131167 464145 3084758 3680070 9822 6647 1663461 1679930
Reversals
during the
year (9822) (6647) (334930) (351399) - - - -
Written-off
during the
year - - (841937) (841937) - - (111361) (111361)
Other changes - - 11507 11507 -
Balance at the
end of the
year 131167 464445 12515014 13110626 9822 6947 10595616 10612385
(6) The Group’s other receivables categorised by nature
31 December 31 December
Nature 2023 2022
Amounts due from equity transfer 200000000 200000000
Surety and deposits Note 398335916 598972862
Others 141433917 187448759
Sub-total 739769833 986421621
Less: Provision for bad and doubtful
debts 13110626 10612385
Total 726659207 975809236
Note: As at 31 December 2023 an equivalent to RMB 217669078 (2022: RMB
436628186) of the surety and deposits mainly represented production capacity surety paid
by the Group to suppliers.
(7) 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
461887815 most of which were surety and amounts due from equity transfer. No provision
is made for bad and doubtful debts after assessment.
798 Inventories
(1) The Group’s inventories by category:
31 December 2023 31 December 2022
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 9443911152 2189991288 7253919864 11178326632 2890923826 8287402806
Work in progress 5564254528 1144952516 4419302012 4879573518 1316529598 3563043920
Finished goods 16215828399 4056038972 12159789427 14699012100 4072862311 10626149789
Consumables 189084809 - 189084809 147843921 - 147843921
Costs to fulfil a contract with a customer 97571213 - 97571213 163373789 - 163373789
Total 31510650101 7390982776 24119667325 31068129960 8280315735 22787814225
As at 31 December 2023 there was no amount of capitalised borrowing cost in the Group’s
closing balance of inventories (2022: Nil).As at 31 December 2023 the Group had no inventory used as collateral (2022: 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 2890923826 649806255 (1350738793) 2189991288
Work in progress 1316529598 777337498 (948914580) 1144952516
Finished goods 4072862311 2933896375 (2950719714) 4056038972
Total 8280315735 4361040128 (5250373087) 7390982776
9 Contract assets
31 December
2023
Balance at the beginning of the year 71636461
Transfers from contract assets recognised at the beginning of the
year to receivables (28449015)
Increase in contract assets resulting from no unconditional right
obtained 53340951
Sub-total 96528397
Less: Provision for bad and doubtful debts 817655
Balance at the end of the year 95710742
8010 Other current assets
31 December 31 December
20232022
VAT on tax credits 2512924348 2556625457
Input tax to be verified or deducted 291415443 329605466
Prepaid income taxes 166028954 331652233
Costs receivables for recovering products 140814527 108097353
from a customer
Others 197155659 68056410
Total 3308338931 3394036919
11 Long-term equity investments
(1) The Group’s long-term equity investments by category:
20232022
Investments in joint ventures 400375826 392291560
Investments in associates 14392984350 13086523900
Sub-total 14793360176 13478815460
Less: Provision for impairment 1061663549 1056936609
Total 13731696627 12421878851
81(2) Movements of long-term equity investments during the year are as follows:
Movements during the year
Translation
differences
arising from
Investment Declared translation of
Balance at the income / (loss) Other distribution of foreign currency
beginning of the recognised under comprehensive Other equity cash dividends or financial Balance at the
Investee year Increase Decrease equity method income movements profits statements end of the year
Joint venture
Chongqing Maite Optoelectronics Co. Ltd. 392291560 - - 8075273 - - - - 400366833
Semicon Light (China) Company Limited - 9118 - - - - - (125) 8993
Sub-total 392291560 9118 - 8075273 - - - (125) 400375826
Associates
Erdos BOE Energy Investment Co. Ltd. 1811883330 - - (3539256) - - - - 1808344074
Beijing Xindongneng Investment Fund
(Limited Partnership) 2034870324 - - 413237868 (341083735) - (242256254) - 1864768203
Beijing Innovation Industry Investment Co.Ltd. 223216553 - - 12953665 - - - - 236170218
Beijing Electric Control Industry Investment
Co. Ltd. 258149907 78035900 - (1505013) 51071365 - - - 385752159
BOE Art Cloud Technology Co. Ltd. 430598164 - - 8087341 - (6214034) - - 432471471
Cnoga Medical Co. Ltd. 276916033 - - - - - - 4695716 281611749
Tianjin Xianzhilian Investment Centre (Limited
Partnership) 1387079224 380000000 (8942540) 121848208 - - (4240169) - 1875744723
BioChain (Beijing) Science & Technology Inc. 334093785 - - (14087881) - 40878430 - - 360884334
Beijing YanDong MicroElectronic Co. Ltd. 1171247551 - - 34876298 38009 18093355 - - 1224255213
VusionGroup SA（ex-SES Imagotag SA Co. Ltd.） 4883374020 - - 148260071 - - - 61188984 5092823075
Chongqing BOE Smart Private Equity
Investment Fund Partnership (Limited
Partnership) 57545008 80000000 - (3511138) - - - - 134033870
Jinchuang (Beijing) Equity Investment Fund
Center (Limited Partnership) - 356400000 - - - - - - 356400000
Others 217550001 137881773 (2988821) (22140092) - 10134133 (800000) 88267 339725261
Sub-total 13086523900 1032317673 (11931361) 694480071 (289974361) 62891884 (247296423) 65972967 14392984350
Total 13478815460 1032326791 (11931361) 702555344 (289974361) 62891884 (247296423) 65972842 14793360176
Less: Provision for impairment 1056936609 1061663549
Total 12421878851 13731696627
82As at 31 December 2023 certain associates invested by the Group suffered loss and the Group did 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 the accumulated unrecognised investment losses amounted to RMB27004563 (2022: RMB14922087).
12 Investments in other equity instruments
(1) Cases of investments in other equity instruments：
Movements during the year
The gains or losses Cumulative gains or
recorded in other losses recorded in
comprehensive Dividend other comprehensive
Balance at the income for the current income income (losses to be
beginning of Increase in Decrease year (Losses to be Balance at the recognized indicated by a minus
Items the year capital in capital entered with a “-” sign) Other end of the year this year sign "-") Specified reasons
Listed equity instruments investment
- Beijing Electronic City High Tech Intended for long-term holding for
Group Co. Ltd. 53614432 - - 7835955 - 61450387 728606 (28710041) strategic purposes
- Bank of Chongqing Co. Ltd. Intended for long-term holding for
91600150 - - (1183443) - 90416707 9885131 (29667668) strategic purposes
- New Century Medical Holding Co. Ltd. Intended for long-term holding for
9098008 - - 8390266 - 17488274 - (123360576) strategic purposes
Unlisted equity instruments investment
Intended for long-term holding for
—Danhua Capital L. P. 34823000 - - 590500 - 35413500 8112915 887125 strategic purposes
Intended for long-term holding for
—Danhua Capital II L.P. 69646002 - - 1180998 - 70827000 9669593 3179249 strategic purposes
Intended for long-term holding for
—Kateeva Inc. 83192147 - - 1410705 - 84602852 - 1740386 strategic purposes
Intended for long-term holding for
—Nanosys INC 21591641 - - (21591641) - - - (52866000) strategic purposes
Intended for long-term holding for
—Baebies INC 30600273 - - 518894 - 31119167 - 1995613 strategic purposes
Intended for long-term holding for
—Illumina Fund IL.P. 31079577 2197830 - 537592 - 33814999 22775 1752294 strategic purposes
Intended for long-term holding for
—Horizon Robotics Inc. 35616005 - - 514325 - 36130330 - 4175830 strategic purposes
Intended for long-term holding for
—Others 22199071 - - 14202855 (3035565) 33366361 - (14664109) strategic purposes
Total 483060306 2197830 - 12407006 (3035565) 494629577 28419020 (235537897)
83(2) The explanation for derecognition events that have occurred this year：
Accumulated gains recognised in Accumulated losses recognised in retained
Item retained earnings upon derecognition earnings upon derecognition Reasons for derecognition
Transfers out due to the derecognition in
Nanosys INC - (52866000) the liquidation
8413 Other non-current financial assets
Item 2023 2022
Financial assets at fair value through profit or loss 2253778325 2022967681
Including: Investments in equity instruments 2253778325 2022967681
14 Investment properties
Plant & Construction in
Land use rights buildings progress Total
Cost
Balance at the beginning of the
year 687434677 1028293708 - 1715728385
Additions during the year
- Purchases - 47854083 62084334 109938417
- Transfers from fixed assets - 14125047 - 14125047
- Additions due to business
combinations involving entities
not under common control 97907500 133782131 - 231689631
Disposals during the year - (4015756) - (4015756)
Other changes - (89730944) 38390816 (51340128)
Balance at the end of the year 785342177 1130308269 100475150 2016125596
Less: Accumulated depreciation or
amortisation
Balance at the beginning of the
year 181640506 412062741 - 593703247
Charge during the year 14221175 50236490 - 64457665
Transfers from fixed assets - 28250 - 28250
Disposals during the year - (3600357) - (3600357)
Other changes - (51016655) - (51016655)
Balance at the end of the year 195861681 407710469 - 603572150
Carrying amounts
At the end of the year 589480496 722597800 100475150 1412553446
At the beginning of the year 505794171 616230967 - 1122025138
8515 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 65890430033 297350722399 12351989023 375593141455
Additions during the year
- Purchases 2975512 329347382 1971562327 2303885221
- Transfers from construction in
progress 7631374412 23074707679 1151849525 31857931616
- Additions due to business
combinations involving entities not
under common control 1711457927 3849118978 13245160 5573822065
Transfer to investment properties (14125047) - - (14125047)
Transfers to construction in progress - (2358952818) (64593844) (2423546662)
Disposals or written-offs during the year - (775662525) (138468435) (914130960)
Written-down against government
interest discounts - (148715529) - (148715529)
Reclassified from fixed assets 763414828 (37876582) (725538246) -
Translation differences 2658541 9210976 2159600 14029117
Balance at the end of the year 75988186206 321291899960 14562205110 411842291276
Less: Accumulated depreciation
Balance at the beginning of the year 9950729093 150179918690 7539650009 167670297792
Charge during the year 2013406593 29422264324 2487867788 33923538705
Transfer to investment properties (28250) - - (28250)
Transfers to construction in progress - (1469878899) (47440847) (1517319746)
Disposals or written-offs during the year - (541189550) (81743439) (622932989)
Reclassified from fixed assets 65703316 (3365817) (62337499) -
Translation differences 1247094 5345109 1853823 8446026
Balance at the end of the year 12031057846 177593093857 9837849835 199462001538
Less: Provision for impairment
Balance at the beginning of the year 34480 1740161554 195597199 1935793233
Charge during the year - 119115566 80248218 199363784
Transfers to construction in progress - (87542076) (676525) (88218601)
Disposals or written-offs during the year - (33538571) (4586631) (38125202)
Balance at the end of the year 34480 1738196473 270582261 2008813214
Carrying amounts
At the end of the year 63957093880 141960609630 4453773014 210371476524
At the beginning of the year 55939666460 145430642155 4616741815 205987050430
In 2023 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 199363784 (2022: RMB 143071492) based on the evaluation results.
(2) Fixed assets pending certificates of ownership
As at 31 December 2023 fixed assets pending certificates of ownership totalled RMB
6560001886 (2022: RMB 7110462456) and certificates of ownership is still being
processed.
8616 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
31 December 2023 31 December 2022
Provision for Provision for
Item Book value impairment Carrying amount Book value impairment Carrying amount
The 6th generation AMOLED project - Chongqing 15573483601 - 15573483601 31013623277 - 31013623277
Others 14173980651 77348706 14096631945 12446773478 74262087 12372511391
Total 29747464252 77348706 29670115546 43460396755 74262087 43386134668
Some of the engineering projects of the Group were idle and cannot be further used. The Group evaluated the residual values of these
engineering projects and made provisions for impairment.(a) Movements of major construction projects in progress during the year
Cumulative Accumulated Interest Interest rate for
Balance at the Additions during the Fiscal discount Transfers to fixed Balance at the investment in the capitalised interest at capitalised capitalisation in 2023
Item Budget beginning of the year year interest assets Others reduced end of the year project (%) the end of the year in 2023 (%) Sources of funding
The 6th generation AMOLED Self-raised funds
project - Chongqing 46500000000 31013623277 6232062763 (139357070) (21432183974) (100661395) 15573483601 83.91% 616688937 533623524 3.95% and borrowings
(b) Provision for impairment of construction in progress during the year
Balance at the beginning Additions during Decreases Balance at the
Item of the year the year during the year end of the year Reason for provision
Projects are idle and cannot be further used or are
Engineering projects machinery and equipment 74262087 3086619 - 77348706 not planned to be used temporarily.
8717 Right-of-use assets
(1) As a lessee
Plant and
buildings Equipment Others Total
Cost
Balance at the beginning of the year 686288720 15961065 198423285 900673070
Additions during the year 202226682 49505 1480835 203757022
Additions due to business combinations 8080595 - - 8080595
involving entities not under common
control
Decreases during the year (55747251) (220804) (5101832) (61069887)
Translation differences 29024340 - 42875 29067215
Balance at the end of the year 869873086 15789766 194845163 1080508015
Accumulated depreciation
Balance at the beginning of the year 192934379 510082 20107663 213552124
Charge for the year 152633217 5999682 10625520 169258419
Reductions during the year (31391906) (99665) (622665) (32114236)
Translation differences 5425387 - 41976 5467363
Balance at the end of the year 319601077 6410099 30152494 356163670
Provision for impairment
Balance at the beginning and the end of
the year - - - -
Carrying amount
At the end of the year 550272009 9379667 164692669 724344345
At the beginning of the year 493354341 15450983 178315622 687120946
8818 Intangible assets
(1) Intangible assets
Patent and
proprietary Computer
Land use rights technology software Others Total
Cost
Balance at the beginning of the year 5796437186 5245259551 1894880882 704836612 13641414231
Additions during the year
- Purchases 1606702704 27983853 86579545 - 1721266102
- Transfers from construction in
progress 258345199 - 269054659 110613208 638013066
- Additions due to business
combinations involving entities not
under common control 263044065 935121201 27525660 - 1225690926
- Transfers from development costs - 31920961 - - 31920961
Translation differences - 77552 466220 631835 1175607
Written-down against interest discount - (1704103) - - (1704103)
Disposals during the year - - (1285185) - (1285185)
Balance at the end of the year 7924529154 6238659015 2277221781 816081655 17256491605
Less: Accumulated amortisation
Balance at the beginning of the year 660214345 2562045161 1192207819 278619763 4693087088
Charge during the year 169915992 559766004 219577158 49147600 998406754
Translation differences - 77552 106487 282184 466223
Disposals during the year - - (1054160) - (1054160)
Balance at the end of the year 830130337 3121888717 1410837304 328049547 5690905905
Carrying amount
Carrying amount at the end of the year 7094398817 3116770298 866384477 488032108 11565585700
Carrying amount at the beginning of the
year 5136222841 2683214390 702673063 426216849 8948327143
8919 Goodwill
(1) Changes in goodwill
Balance at the
beginning of the Icrease during the Decrease during Balance at the
Name of investee year year the year 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
Chengdu BOE Display Sci-tech Co.Ltd. 537038971 - - 537038971
Nanjing BOE Display Technology Co.Ltd. 155714415 - - 155714415
Beijing United Ultra High-Definition
Video Technology Collaboration
Center Co. Ltd. - 14285847 - 14285847HC SemiTek Corporation (“HCSemiTek”) - 29596088 - 29596088
Sub-total 895140950 43881935 - 939022885
Provision for impairment
Beijing BOE Optoelectronics
Technology Co. Ltd. (4423876) - - (4423876)
BOE Healthcare Investment &
Management Co. Ltd. (82137669) - - (82137669)
Chengdu BOE Display Sci-tech Co.Ltd. (147755754) - - (147755754)
Sub-total (234317299) - - (234317299)
Carrying amount 660823651 43881935 - 704705586
(2) Provision for impairment of goodwill
The recoverable amount of the asset group to which the above goodwill relates is determined
based on the present value of expected future cash flows. When projecting the present value
of cash flows the cash flows for the most recent five years are determined based on the
financial budgets approved by management and the cash flows beyond the five-year budget
period were assumed to remain stable. The pre-tax discount rate is determined with
reference to comparable companies and the relevant capital structures.
9020 Long-term deferred expenses
Balance at Additions during Decrease during Balance at
31December 2022 the year the year 31December 2023
Technology royalty fees prepaid 379194821 25363191 (70839299) 333718713
Payment for public facilities construction and
use 41161291 458946 (8618117) 33002120
Leasehold improvements 19430433 55743559 (18357270) 56816722
Others 117154832 61264352 (67462175) 110957009
Total 556941377 142830048 (165276861) 534494564
21 Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets and liabilities
20232022
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 586093818 98130637 151264910 31020460
Changes in fair value of investments in
other equity instruments 134711649 20206748 142547604 21382141
Depreciation of fixed assets 251343643 39115495 239415255 37326236
Assessed value added by investing real
estate in subsidiaries 114341540 28585385 119895400 29973850
Accumulated losses 2748927099 426287990 459130 75757
Government grant 64596573 9689486 143385420 21507813
Lease Liabilities 564279038 119336111 417358141 89551026
Others 11546811 2041907 86936426 15037373
Sub-total 4475840171 743393759 1301262286 245874656
Amount offset (346516739) (169861507)
Balance after offsetting 396877020 76013149
Deferred tax liabilities:
Revaluation due to business combinations
involving entities not under common
control (1745944008) (409875698) (882129374) (217980404)
Depreciation of fixed assets (7154184671) (1077814489) (7266110223) (1094970944)
Long-term equity investments (2113902264) (389497116) (120141687) (18021253)
Right of use assets (600669199) (130538444) (440696099) (99281127)
Others (203263744) (33430721) (178731744) (29507437)
Sub-total (11817963886) (2041156468) (8887809127) (1459761165)
Amount offset 346516739 169861507
Balance after offsetting (1694639729) (1289899658)
91(2) Details of unrecognised deferred tax assets
20232022
Deductible temporary differences 23132234962 22749630064
Deductible tax losses 57936466170 44677908573
Total 81068701132 67427538637
As at 31 December 2023 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 2023 2022
2023-280957810
2024308958033451137106
20258833114691253378510
202612020443911473908686
202723853769813146172377
202835271705922279355553
202950088143395008814339
203042001217374196348029
203125863844222502424694
20322391930282723569766818
203313399325173-
Others (a) 515656206 515644651
Total 57936466170 44677908573
(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.
9222 Other non-current assets
31 December 31 December
20232022
Prepayment for fixed assets 2068302892 148834349
Surety 1048632965 1338834402
Prepayment for construction 414936876 153690890
VAT on tax credits 95942415 -
Deferred VAT for imported equipment - 2696796
Others 338103310 311464947
Total 3965918458 1955521384
23 Short-term loans
31 December 2023
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
currency Exchange rate equivalents pledged
Bank loans
- RMB 23498395 Pledge
- RMB 1311144222 Guaranteed
- RMB 406271598 Credited
Sub-total 1740914215
Foreign currency bank loans
- JPY 104986438 0.0502 5270319 Credited
Sub-total 5270319
Total 1746184534
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
As at 31 December 2023 no short-term loan was past due (2022: Nil).
9324 Bills payable
31 December 31 December
20232022
Bank acceptance bills 919313033 847418525
Commercial acceptance bills - 22803013
Total 919313033 870221538
There is no due but unpaid bill payable at the end of the year. The bills above are all due
within one year.
25 Accounts payable
(1) The Group’s accounts payable by category are as follows:
31 December 31 December
20232022
Payables to related parties 114282939 179047266
Payables to third parties 32863320412 29655673198
Total 32977603351 29834720464
(2) The Group’s accounts payable by currency are as follows:
20232022
Amount in RMB/RMB Amount in RMB/RMB
original currency Exchange rate equivalents original currency Exchange rate equivalents
- RMB 22178756264 21162560832
- USD 1414347882 7.0827 10017401744 1146041405 6.9646 7981719969
- JPY 11054142329 0.0502 554917945 9299005433 0.0524 487267885
- Other foreign currencies 226527398 203171778
Total 32977603351 29834720464
As at 31 December 2023 the Group had no significant accounts payable with ageing of more
than one year.
26 Advance payments received
31 December 31 December
Item 2023 2022
Advances from related parties 103733 188623
Advances from third parties 94601248 79660354
Total 94704981 79848977
9427 Contract liabilities
(1) The contract liabilities are as follows:
31 December 31 December
Item 2023 2022
Sale of goods 3000168620 2411717792
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.
(2) Significant contract liabilities aged more than 1 year:
31 December The reason for the
Item 2023 non-carryover
Advance receipts 172566372 Not yet delivered
Significant changes in the contract liabilities of the Group are as follows:
2023
Balance at the beginning of the year 2411717792
Revenue recognised that was included in the contract liability balance at
the beginning of year (2059115794)
Increase of contract liabilities due to cash received at the end of the year 2647566622
Balance at the end of the year 3000168620
9528 Employee benefits payable
(1) Employee benefits payable:
Balance at
Balance at Accrued during Decrease during 31 December
Note 1 January 2023 the year the year 2023
Short-term employee benefits (2) 2656369348 16850640827 (16462441948) 3044568227
Post-employment benefits
- defined contribution plans (3) 58051832 1848632320 (1853563027) 53121125
Termination benefits 104111643 50931357 (151821076) 3221924
Total 2818532823 18750204504 (18467826051) 3100911276
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
(2) Short-term employee benefits
Balance at
Balance at Accrued during Decrease during 31 December
1 January 2023 the year the year 2023
Salaries bonuses allowances 1689488356 13369970316 (13142172990) 1917285682
Staff welfare - 1200381109 (1200381109) -
Social insurance 45026603 866656861 (874490443) 37193021
Medical insurance 42596285 818538486 (826067942) 35066829
Work-related injury insurance 2430318 48118375 (48422501) 2126192
Housing fund 29798139 1034105760 (1044206780) 19697119
Labour union fee staff and workers’
education fee 871474749 362090148 (187222198) 1046342699
Staff bonus and welfare fund 20553209 - - 20553209
Other short-term employee benefits 28292 17436633 (13968428) 3496497
Total 2656369348 16850640827 (16462441948) 3044568227
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
96(3) Post-employment benefits - defined contribution plans
Balance at
Balance at Accrued during Decrease during 31 December
1 January 2023 the year the year 2023
Basic pension insurance 37012623 1550009517 (1555024760) 31997380
Unemployment insurance 1320821 51043742 (51324167) 1040396
Annuity 19718388 247579061 (247214100) 20083349
Total 58051832 1848632320 (1853563027) 53121125
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
29 Taxes payable
20232022
Value-added tax 96556759 142337422
Corporate income tax 502726541 287859236
Individual income tax 39311660 48228934
City construction tax 309488421 428525949
Education surcharges and local education
surcharges 223104253 306515854
Others 145892388 117933793
Total 1317080022 1331401188
30 Other payables
31 December 31 December
Note 2023 2022
Interest payable 175698 151200
Dividends payable 39014714 6410514
Others (1) 19448570553 19625661555
Total 19487760965 19632223269
97(1) Others
(a) The Group’s other payables by category are as follows:
31 December 31 December
Note 2023 2022
Projects and equipment 13556738142 13185841311
Fund transaction (Note) 3182963067 3130038067
Deferred VAT for imported
equipment 148348308 196440706
Repurchase obligation of restricted
shares V.42 457401616 753440228
Accrued water and electricity charges
and freight 113409651 407770818
Security and deposits 764238522 505702125
External agency fee 109646050 172851477
Others 1115825197 1273576823
Total 19448570553 19625661555
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 2023 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 2023 31 December 2022
Amount in Amount in
original RMB/RMB original RMB/RMB
currency Exchange rate equivalents currency Exchange rate equivalents
RMB 14629710281 13336886237
USD 555743933 7.0827 3936167554 736000871 6.9646 5125951666
JPY 12646824124 0.0502 634870571 18492932844 0.0524 969029681
Other foreign currencies 247822147 193793971
Total 19448570553 19625661555
9831 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 liabilities and long-term payables. 31 December 2023
Credited/
collateralised
Amount in RMB/RMB guaranteed/
Note original currency Exchange rate equivalents pledged
Bank loans
- RMB 116082704 Pledged
- RMB 11632397549 Collateralised
- RMB 1584339256 Guaranteed
- RMB 7072242667 Credited
- USD 538790096 7.0827 3816088613 Collateralised
Sub-total 24221150789
Long-term payables V.35 47178393
Lease liabilities V.34 168698260
Total 24437027442
31 December 2022
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note 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.35 143117840
Lease liabilities V.34 118302766
Contribution of non-controlling
interests with redemption
provisions V.38 511140000
Total 22703750744
9932 Other current liabilities
31 December 31 December
Item 2023 2022
Warranty provisions 2751418713 3368859501
Refund liability 137738457 101672253
Pending output VAT 190865955 139462782
Others 5750466 3973137
Total 3085773591 3613967673
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.
33 Long-term loans
31 December 2023
Credited/
collateralised
Amount in original RMB/RMB guaranteed/
Note currency Exchange rate equivalents pledged
Bank loans
- RMB 815374959 Pledged
- RMB 43946736428 Collateralised
- RMB 4721896695 Guaranteed
- RMB 72344096703 Credited
- USD 3379980096 7.0827 23939385026 Collateralised
Less: Long-term loans due within one
year V.31 24221150789
Total 121546339022
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.31 21931190138
Total 123143479690
10034 Lease liabilities
31 December 1 January
Item Note 2023 2023
Long-term lease liabilities 710839756 656888776
Less: Lease liabilities due within one year V.31 168698260 118302766
Total 542141496 538586010
During the year ended 31 December 2023 income from short-term leases and leases of low-
value assets which are accounted for using the practical expedient as well as sub-leasing
right-of-use assets for which the Group as a lessee was not significant.
35 Long-term payables
31 December 31 December
Item 2023 2022
Obligations under finance leases 218789786 372704917
Less: Obligations under finance leases due within one 47178393 143117840
year
Total 171611393 229587077
As at 31 December 2023 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.
36 Provisions
31 December 31 December
Item 2023 2022
Outstanding litigation 3580000 -
37 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 3798389149 745618201 (547154297) (238241725) 3758611328
Related to income 1357958183 1939512378 (2293029934) - 1004440627
Total 5156347332 2685130579 (2840184231) (238241725) 4763051955
10138 Other non-current liabilities
31 December 31 December
Item Note 2023 2022
Contribution of non-controlling interests
with redemption provisions 2500522066 2499075805
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. According to the contracts the
Company will eventually carry out the repurchasing plan during the period from 2025 to
2034.
39 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 38196363421 - (543834226) (543834226) 37652529195
On May 25th 2023 our company conducted a repurchase and cancellation of 10298610
restricted shares at the Shenzhen Branch of China Securities Registration and Clearing
Corporation Limited. Upon completion of this repurchase and cancellation the company's
total share capital was adjusted from 38196363421 shares to 38186064811 shares.On August 29th 2023 our company cancelled 28186133 treasury shares held in a
dedicated repurchase account at the Shenzhen Branch of China Securities Registration and
Clearing Corporation Limited. Following this cancellation the company's total share capital
was further reduced from 38186064811 shares to 38157878678 shares.On December 25th 2023 our company proceeded with the cancellation of 499999919
treasury shares held in the dedicated repurchase account at the Shenzhen Branch of China
Securities Registration and Clearing Corporation Limited and simultaneously completed the
repurchase and cancellation of 5349564 restricted shares. As a result of this combined
repurchase and cancellation action the company's total share capital was adjusted down
from 38157878678 shares to 37652529195 shares.
40 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
22BOEY1 25 March 2022 instrument 3.50% 100/bond 20 million RMB 2 billion 3+N years applicable applicable
102(2) Major terms:
With the approval document No. 1801 [2019] of the China Securities Regulatory Commission
(“CSRC”) the Company issued renewable corporate bonds to qualified investors on March
25 2022. 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”).
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
2022 bond at the end of the period. The nominal interest rate of the 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 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.As at 31 December 2023 the actual issuance of the 2022 bond amounted to RMB
2000000000 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
20BOEY1 20000000 2050610478 - - (20000000) (1989179245) 11368767 (72800000) - -
20BOEY2 20000000 2045184865 - - (20000000) (1989320755) 14935890 (70800000) - -
20BOEY3 20000000 2037168519 - - (20000000) (1989415094) 22246575 (70000000) - -
22BOEY1 20000000 2043402946 - - - - 70000000 (70000000) 20000000 2043402946
Total 80000000 8176366808 - - (60000000) (5967915094) 118551232 (283600000) 20000000 2043402946
On February 28 March 19 and April 27 2020 our company issued the 2020 publicly issued
renewable corporate bonds of BOE Technology Group Co. Ltd. to qualified investors (forqualified investors) which referred to as 20BOEY1 20BOEY2 20BOEY3 respectively (“2020bond”). As at 31 December 2023 the 2020 bond has been issued for three years the Company
has not exercised the bond issuer’s renewal option and has fully paid the principal and interest
of the 2020 bond.
103(4) Relevant information of amounts attributable to holders of equity instruments:
31 December 31 December
20232022
Attributable to shareholders of the Company 129428307067 136086175204
- Equity attributable to ordinary shareholders of
the Company 127384904121 127909808396
- Equity attributable to holders of the Company’s
other equity instruments 2043402946 8176366808
Equity attributable to non-controlling shareholders 68370379252 65954391821
- Equity attributable to non-controlling ordinary
shareholders 68370379252 65954391821
- Equity attributable to non-controlling
shareholders of other equity instruments - -
(5) Accrued interest on holders of other equity instruments
In 2023 as the above-mentioned issued renewable corporate bonds are cumulative other
equity instruments the Company accrued interest of RMB 118551232on renewable
corporate bonds from undistributed profits and paid interest of RMB 283600000 on
renewable corporate bonds.
41 Capital reserve
Other capital
Item Note Share premium reserves Total
Balance at the beginning of the year 53837673239 1387212436 55224885675
Add: Changes in shareholding ratio
of subsidiaries (1219955094) - (1219955094)
Equity-settled share-based
payment XII - 309120206 309120206
Other movements in equity of
associates V.11 - 61662689 61662689
Cancellation of treasury shares (2244946976) - (2244946976)
Others (32084906) 14899152 (17185754)
Balance at the end of the year 50340686263 1772894483 52113580746
10442 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 3508201911 - (3046165671) 462036240
According to the resolution passed by the 13th Meeting of the 10th Board of Directors and
the 4th Meeting of the 10th Supervisory Board on March 31st 2023 regarding 'The Proposal
on Repurchasing and Cancelling Part of Restricted Shares' the company completed the
repurchase and cancellation of 10298610 restricted shares under the incentive plan as of
May 25th 2023. The average repurchase price per share was RMB 2.41 resulting in a
decrease in treasury shares of RMB 24819650 while the difference of RMB 14521040
between the cancelled treasury shares and the share capital was deducted from the Capital
reserve - Share premium.Based on the resolution approved during the same meetings on March 31st 2023
concerning 'The Proposal on Achieving the Conditions for the First Lifting of Restrictions
Period for the 2020 Stock Option and Restricted Share Incentive Plan and the First Exercise
Period for the Initial Grant of Stock Options' the company confirmed that a total of
102260780 restricted shares were eligible for lifting restrictions. These shares were listed
for circulation on April 11th 2023 corresponding to a reduction of RMB 240210572 in other
payables - obligation to repurchase restricted shares (Note V. 30) and Treasury shares.In accordance with the resolution passed by the 17th Meeting of the 10th Board of Directors
on July 24th 2023 regarding 'The Proposal on Cancelling Part of Treasury shares in the
Company's Dedicated Repurchase Account' the company finished the cancellation of
28186133 shares within the dedicated repurchase account on August 29th 2023. The
average repurchase price per share was RMB 5.71 reducing treasury shares by RMB
160964972. The difference of RMB 132778839 between the cancelled treasury shares
and the share capital was then deducted from Capital reserve - Share premium.Pursuant to the resolution adopted at the 21st Meeting of the 10th Board of Directors and the
7th Meeting of the 10th Supervisory Board on October 30th 2023 about 'The Proposal on
Repurchasing and Cancelling Part of Restricted Shares' the company concluded the
repurchase and cancellation of 5349564 restricted shares under the incentive plan on
December 25th 2023. The average repurchase price per share was RMB 2.35 leading to a
decrease in treasury shares of RMB 12566126 and the difference of RMB 7216562
between the cancelled treasury shares and the share capital was debited against the Capital
reserve - Share premium.Following the approval at the 23rd Meeting of the 10th Board of Directors on November 28th
2023 concerning 'The Proposal on Changing the Use of Repurchased Shares and
Cancelling Them' the company accomplished the change of use and subsequent
cancellation of 499999919 shares within the dedicated repurchase account on December
25th 2023. The average repurchase price per share was RMB 5.24 reducing treasury
shares by RMB 2620105418 and the difference of RMB 2120105499 between the
cancelled treasury shares and the share capital was deducted from the Capital reserve -
Share premium.During 2023 the company recognized restricted share dividends amounting to RMB
17173897 which led to a decrease in other payables - obligation to repurchase restricted
shares (Note V. 30) and Treasury shares.
10543 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 (121272681) (284719598) 13421765 - (297850012) (291351) (51690779) (367431914)
Including: Other comprehensive income
recognised under equity
method 121391777 (290012370) 12246372 - (302258742) - 1175221 (182042186)
Changes in fair value of
investments in other equity
instruments (242664458) 5292772 1175393 - 4408730 (291351) (52866000) (185389728)
Items that may be reclassified to profit or loss (952495349) 279822666 - - 182930039 96892627 - (769565310)
Including: Other comprehensive income
recognised under equity
method (156851) 38009 - - 38009 - - (118842)
Translation differences arising
from translation of foreign
currency financial statements (952338498) 279784657 - - 182892030 96892627 - (769446468)
Total (1073768030) (4896932) 13421765 - (114919973) 96601276 (51690779) (1136997224)
10644 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 2951392625 330597179 117522 3282107326
Discretionary surplus reserve 289671309 - - 289671309
Total 3241063934 330597179 117522 3571778635
45 Retained earnings
Item Note 2023 2022
Retained earnings at the beginning of the
year (before adjustment) 35829465307 37106514799
Total adjustments for opening retained
earnings (“+” for increase; “-” for
decrease) - (161882)
Retained earnings at the beginning of the
year (after adjustment) 35829465307 37106352917
Add: Net profits for the year attributable to
shareholders of the Company 2547435360 7541423198
Less: Appropriation for statutory surplus
reserve 330597179 348186351
Interest on holders of other equity
instruments V.40 118551232 530695890
Dividends to ordinary shares (a) 2296367348 7958923130
Transfer of other comprehensive
income to retained earnings (b) 51808301 (19494563)
Retained earnings at the end of the year 35579576607 35829465307
(a) According to the Annual Shareholders’ Meeting for 2022 held on 5 May 2023 the
Company distributed cash dividends to shareholders of A shares and B shares on 7
June 2023 (A shares) and 9 June 2023 (B shares) with RMB 0.61 (2022: RMB 2.1)
every 10 shares and a profit distribution amount of RMB 2297635715. Considering
the turnover rate the corresponding dividends of the expected non-exercisable
portions of restricted shares are RMB 1268367 with a profit distribution of RMB
2296367348 (2022: RMB 7958923130).
(b) The amounts both transferred from other comprehensive income to retained earnings
which is associates’ losses 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 2023 are RMB 51808301 (2022:
income RMB 19494563).(c) As at 31 December 2023 the consolidated retained earnings attributable to the
Company included appropriation to surplus reserves made by the Company’s
subsidiaries amounting to RMB 6738372634 (2022: RMB 6206465315).
10746 Operating income and operating costs
20232022
Item Income Cost Income Cost
Principal activities 169749300319 148637127117 174113214324 154442890090
Other operating activities 4794145576 3995934250 4300516855 3087676062
Total 174543445895 152633061367 178413731179 157530566152
Including: Revenue from contracts with
customers 174029517307 152524153735 177667655331 157352470042
Other income 513928588 108907632 746075848 178096110
Information on income of principal activities has been included in Note XV.Revenue and the related costs of the Group's sales before intended use are as follows:
Relating to ordinary activities:
20232022
Operating income 2109347934 1407856936
Operating costs 1877621445 1514976278
47 Taxes and surcharges
20232022
Property tax 597939410 561061660
City maintenance and construction tax 171689341 268999607
Education surcharges and local education
surcharges 125103191 193572818
Stamp duty 156907291 167033833
Land use tax 59008233 50378527
Others 22338399 34124894
Total 1132985865 1275171339
10848 Selling and distribution expenses
20232022
Warranty provisions 1840608669 2390095031
Staff costs 1152898586 1112021277
Share-based payments 47456891 97853078
Others 695976059 633320911
Total 3736940205 4233290297
49 General and administrative expenses
20232022
Staff costs 3190433935 3251030370
Depreciation and amortisation 935214349 971573303
Share-based payments 106565976 238162832
Repair expense 41921740 68934663
Others 1670739540 1717935838
Total 5944875540 6247637006
50 Research and development expenses
20232022
Staff costs 4696640452 4601448025
Depreciation and amortisation 2263292470 2000893037
Material expenses 1692001767 1907254468
Share-based payments 134440962 269690937
Others 2533127437 2321482210
Total 11319503088 11100768677
10951 Financial expenses
20232022
Interest expenses from loans 4093007199 4033749371
Less: Borrowing costs capitalised 556117300 461537933
Interest income from bank deposits (2032287888) (1483022892)
Exchange (gains) / losses (439326037) 258458498
Other financial expenses 85034572 97483531
Total 1150310546 2445130575
The interest rate per annum at which the borrowing costs were capitalised by the Group
was 2.95% ~ 3.95% (2022: 3.25% ~ 4.25%) for the year.
52 Other income
20232022
Government grants related to assets 547154297 739587184
Government grants related to income 3443984813 4717326643
Weighted deduction of input VAT 177734568 4064149
Others 33459478 24551348
Total 4202333156 5485529324
The amount of government subsidies related to income received by the Group in 2023 and
directly included in other income was RMB 1150954879.
11053 Investment income
Note 2023 2022
Income from long-term equity investments
accounted for using the equity method V.11 702555344 528103680
Investment income from disposal of long-
term equity investments 1581850 829872568
Dividend income from investments in other
equity instruments V.12 28419020 35354468
Including: Dividend income from
investments in other equity instruments
held at the balance sheet date 28419020 35354468
Investment income from disposal of
financial assets held for trading 69166228 116153975
Gains from remeasurement of remaining
equity interests to fair value upon loss of
control - 4266631856
Others 8987200 318151337
Total 810709642 6094267884
54 Gains from changes in fair value
Item 2023 2022
Financial assets held for trading 291542233 159344584
55 Credit losses
Item 2023 2022
Accounts receivable 15213883 49897296
Other receivables 3328671 1679930
19644-
Notes receivable
Total 18562198 51577226
11156 Impairment losses
20232022
Impairment losses of inventories 2202962576 6975372718
Impairment losses of fixed assets 199363784 143071492
Impairment losses of construction in progress 3086619 29768263
Impairment losses of contract assets 817655 -
Impairment losses of long-term equity investments - 8503403
Impairment losses of goodwill - 147755754
Total 2406230634 7304471630
57 Gains from asset disposals
Amount recognised
in extraordinary
gain and loss in
Item 2023 2022 2023
Gains from disposal of fixed assets 9798475 7963317 9798475
Gains from disposal of right-of-use assets 3291911 3002239 3291911
Total 13090386 10965556 13090386
58 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 2023 2022 2023
Government grants 13138657 1751445 13138657
Gain on disposal of non-current assets 10212047 1448647 10212047
Revenue from the recycling and disposal of
surplus waste 176876507 26348893 176876507
Others 183768952 133693872 183768952
Total 383996163 163242857 383996163
Government grants recognised in profit or loss for the current period
Item 2023 2022
Policy incentives and others 13138657 1751445
112(2) Non-operating expenses
Amount recognised
in extraordinary
gain and loss in
202320222023
Donations provided 4201070 28491697 4201070
Losses from scrapping of non-current assets 42927593 17322542 42927593
Others 22520694 41435304 22520694
Total 69649357 87249543 69649357
59 Income tax expenses
Note 2023 2022
Current tax expense based on tax law and
regulations 1311971433 1675605623
Changes in deferred tax assets/liabilities (1) 151155913 116115039
Total 1463127346 1791720662
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
20232022
Origination and reversal of temporary differences 151155913 116115039
(2) Reconciliation between income tax expenses and accounting profit:
20232022
Profit before taxation 1832998675 51218939
Expected income tax expenses at tax rate of 15% 274949801 7682841
Add: Effect of different tax rates applied by
subsidiaries 18028526 (14751718)
Effect of non-deductible costs expenses and
losses 51628306 315429605
Tax effect of weighted deduction and tax
preference (1017881773) (2652168644)
Utilisation of prior year tax losses (269688693) (49695309)
Tax effect of deductible losses of deferred tax
assets not recognised 2326078995 4456877895
Tax effect of deductible temporary differences
of deferred tax assets not recognised 80012184 (271654008)
Income tax expenses 1463127346 1791720662
11360 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.20232022
Consolidated net profit attributable to shareholders
of the Company 2547435360 7541423198
Less: Current interest of other equity instruments 118551232 530695890
Less: Current dividends of restricted shareholders 17173897 64525832
Consolidated net profit attributable to ordinary
shareholders of the Company 2411710231 6946201476
Weighted average number of ordinary shares
outstanding (shares) 37429510530 37502641911
Basic earnings per share (RMB/share) 0.06 0.19
Weighted average number of ordinary shares is calculated as follows:
20232022
Issued ordinary shares at the beginning of the year 37355546569 37638356849
Add: Weighted average number of ordinary shares
issued in current period - -
Add: Weighted average number of restricted shares
released from lock-up in current period 73963961 -
Less: Weighted average number of ordinary shares
repurchased in current period - 135714938
Weighted average number of ordinary shares at the
end of the year 37429510530 37502641911
11461 Cash flow statement
(1) Cash relating to operating activities
a. Proceeds relating to other operating activities:
Item 2023 2022
Government grants received 5323824411 6165190561
Restricted cash at bank and on hand as well as
others related to operating activities 821660520 1232073535
Total 6145484931 7397264096
b. Payments relating to other operating activities:
Item 2023 2022
Expenses paid during the period 7613110071 7129101409
(2) Cash relating to investing activities
a. Proceeds relating to other investing activities:
Item 2023 2022
Interest income 1658880796 1303694043
Restricted monetary funds and others related to
investing activities 2281607894 8248427
Total 3940488690 1311942470
115(3) Cash relating to financing activities
a. Proceeds relating to other financing activities:
Item 2023 2022
Cash received for disposing of subsidiaries without
a change in control - 770432703
Others - 894920
Total - 771327623
b. Payments relating to other financing activities:
Item 2023 2022
Acquisition of non-controlling interests of
subsidiaries 7429009200 1048154539
Principal and interest related to leases and others 467134209 1500840937
Total 7896143409 2548995476
c. Changes in liabilities arising from financing activities:
Additions during the year Decreases during the year
Balance at the
beginning of the Balance at the
year Cash Non-cash Cash Non-cash end of the year
Short-term loans 2373938871 1064102075 1053331132 (2745187544) - 1746184534
Long-term loans (including non-current
liabilities due within one year) 145074669828 26277758556 7293169349 (32878107922) - 145767489811
Lease liabilities (including non-current
liabilities due within one year) 656888776 - 429349128 (375398148) - 710839756
Long-term payables (including non-current
liabilities due within one year) 372704917 - 29861870 (183777001) - 218789786
Other non-current liabilities (including non-
current liabilities due within one year) 3010215805 - 26806261 (536500000) - 2500522066
Total 151488418197 27341860631 8832517740 (36718970615) - 150943825953
11662 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
20232022
(a) Reconciliation of net profit / (loss) to cash
flows from operating activities:
Net profit / (loss) 369871329 (1740501723)
Add: Credit losses 18562198 51577226
Impairment loss 2406230634 7304471630
Depreciation of fixed assets
investment properties and right-of-
use assets 33721207174 33422031705
Amortisation of intangible assets 955466291 995315014
Amortisation of long-term deferred
expenses 162353520 83058206
Gains from disposal of fixed assets
intangible assets and other long-
term assets (13090386) (10965556)
Losses from scrapping of fixed assets
and intangible assets 32715546 15873895
Financial expenses 2567467227 4070314610
Gains from changes in fair value (291542233) (159344584)
Investment income (810709642) (6094267884)
Share-based payments 307160605 649427866
Change in deferred income (393295377) (1259742279)
Change in deferred tax assets (26847208) 25329486
Change in deferred tax liabilities 178771023 140074643
Increase in inventories (1825979018) (3360776944)
Increase / ( decrease) in operating
receivables (3904919786) 7975232270
Increase in operating payables 4781932585 914859724
Safety fund 66472402 -
Net cash flows from operating activities 38301826884 43021967305
117(b) Change in cash and cash equivalents:
20232022
Cash and cash equivalents at the end of the
year 52092981748 64382037764
Less: Cash and cash equivalents at the
beginning of the year 64382037764 76623486083
Net decrease in cash and cash equivalents (12289056016) (12241448319)
(2) Information on acquisition or disposal of subsidiaries during the current year:
Net proceeds for acquisition of subsidiaries:
20232022
Cash or cash equivalents paid during the
year for acquiring subsidiaries during the
year (150000000) -
Less: Cash and cash equivalents held by
acquired subsidiaries 209293141 -
Net proceeds for acquisition of subsidiaries 59293141 -
Net payment for acquisition of subsidiaries:
20232022
Cash or cash equivalents paid during the
year for acquiring subsidiaries during the
year (2083597236) -
Less: Cash and cash equivalents held by
acquired subsidiaries 1918264097 -
Net payment for acquisition of subsidiaries (165333139) -
Net proceeds for disposal of subsidiaries:
20232022
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
118Net payment for disposal of subsidiaries:
20232022
Cash or cash equivalents received during
the year for disposing of subsidiaries
during the year - -
Less: Cash and cash equivalents held by
acquired subsidiaries - 144689766
Net payment for disposal of subsidiaries - (144689766)
(3) Details of cash and cash equivalents
20232022
Cash on hand 802967 896267
Bank deposits available on demand 52089093133 64378531680
Other monetary funds available on demand 3085648 2609817
Closing balance of cash and cash equivalents 52092981748 64382037764
Note: The cash and cash equivalents disclosed above do not include the interest accrued
on bank deposits at the end of the period bank deposits with fixed interest rate and
the use of other currency funds subject to restrictions.
(4) Monetary funds other than cash and cash equivalents
Item 2023 2022 Rationale
Held for investment
Bank deposits with interest at fixed rates 17740553353 - purposes
Mainly refer to margin
deposits pledged for the
issuance of bills
Margin deposits 1869539464 4027358544 payable
Total 19610092817 4027358544
(5) Explanation for presentation of cash flows on a net basis
Relevant facts and
Item circumstances Basis for presentation on a net basis Financial impact
Amounts of restricted Cash inflows and outflows for fast-
deposits placed and turnover high-value short-term
recovered are presented items can be presented on a net
Restricted monetary funds on a net basis basis Nil
11963 Assets with restrictive ownership titles or right of use
2023
Item Book balance Book value Restricted type Restricted circumstances
Notes to the
financial Notes to the financial
Cash at bank and on hand 1869539464 1869539464 statements V.1 statements V.1
Endorsed with resource and
Bills receivable 230354069 230354069 Pledged pledged for drawing bill
Investment properties 101775150 100605150 Mortgaged Mortgaged as collateral
Fixed assets 237742564332 136319471935 Mortgaged Mortgaged as collateral
Construction in progress 2925304165 2925304165 Mortgaged Mortgaged as collateral
Intangible assets 1806103571 1546929316 Mortgaged Mortgaged as collateral
Total 244675640751 142992204099
2022
Item Book balance Book value Restricted type Restricted circumstances
Notes to the
financial Notes to the financial
Cash at bank and on hand 4027358544 4027358544 statements V.1 statements V.1
Endorsed with resource and
Bills receivable 28239380 28239380 Pledged pledged for drawing bill
Investment properties 94676065 39718001 Mortgaged Mortgaged as collateral
Fixed assets 218690717728 140418857377 Mortgaged Mortgaged as collateral
Construction in progress 2051101917 2051101917 Mortgaged Mortgaged as collateral
Intangible assets 1658448442 1461125786 Mortgaged Mortgaged as collateral
Total 226550542076 148026401005
120VI. Research and development expenses
1 Presentation by nature
Item 2023 2022
Labour costs 4722235784 4601448025
Material expenses 1700125252 1907254468
Depreciation and amortisation 2269453425 2000893037
Share-based payments 134440962 269690937
Others 2537013467 2321482210
Total 11363268890 11100768677
Including: research and development
expenditures that are expensed 11319503088 11100768677
research and development
expenditures that are capitalised 43765802 -
2 Expenditures on research and development projects which are eligible for capitalisation
Additions due to
business
combinations
Balance at involving
the entities not Internal Recognised as
beginning under common development intangible Balance at the
Item of the year control expenditure assets end of the year
HC SemiTek Corporation LED and Micro-
LED technology development - 155132690 43765802 (31920961) 166977531
121VII. Change of consolidation scope
1 Business combination involving entities not under common control
(1) Business combinations involving entities not under common control occurred during the year
Acquiree from acquisition date to 31 December 2023
Acquisition date of Cost of equity Shareholding Acquisition Basis of acquisition
Entity name equity investment investment acquired (%) method Acquisition date date determination Income Net loss Net cash outflow
Achieving actual
control by holding
more than half of
Beijing United Ultra High-Definition the Board of
Video Technology Collaboration Capital Directors of
Center Co. Ltd. 13 January 2023 152990214 56.28% increase 16 January 2023 acquiree 66154253 (31052687) (85861222)
Achieving actual
control by holding
Subscription more than half of
of non-public the Board of
offering Directors of
HC SemiTek Corporation 28 July 2023 2083597236 23.01% shares 31 August 2023 acquiree 1252521862 (372160575) (593987223)
Beijing United Ultra High-Definition Video Technology Collaboration Center Co. Ltd. was established in November 2018 and headquartered in
Beijing China which is mainly engaged in technology promotion and application services its business scope includes 8K design and
development integration recording production rebroadcasting and content production.HC SemiTek Corporation was established in November 2005 and headquartered in Wuhan China which is mainly engaged in the research
development production and sales of LED chips LED epitaxial wafers sapphire substrates and third-generation semiconductor compounds
GaN power electronics devices. Prior to the combination the ultimate controlling party of HC SemiTek Corporation was the State-owned Assets
Supervision and Administration Commission of Zhuhai Government.
122(2) Acquisition cost and goodwill
Beijing Zhonglianhe Ultra HD
Collaborative Technology Center Co.Acquisition cost Ltd. HC SemiTek Corporation
Carrying amount Fair value Carrying amount Fair value
Cash 150000000 150000000 2083597236 2083597236
Equity interests held before acquisition
date 1210671 2990214 - -
Total acquisition cost 151210671 152990214 2083597236 2083597236
Less: Share of the fair value of the
identifiable net assets acquired 138704367 2054001148
Goodwill 14285847 29596088
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
Beijing Zhonglianhe Ultra HD Collaborative
Technology Center Co. Ltd. HC SemiTek Corporation
Carrying amount Fair value Carrying amount Fair value
Assets:
Current assets 227887259 227887259 5252742512 5252742512
Non-current assets 74536116 92067362 6854631456 7853067925
Liabilities:
Current liabilities 8633836 8633836 2853491561 2853491561
Non-current liabilities 68283874 72666686 1377478403 1325760217
Net assets 225505665 238654099 7876404004 8926558659
Less: Non-controlling interests 98591077 99949732 6064043443 6872557511
Net assets acquired 126914588 138704367 1812360561 2054001148
If there is an active market for the above identifiable assets the quoted prices in the active
market are used to establish their fair value; if there is no active market their fair values are
estimated based on the market prices of the same or similar types of assets which have an
active market; if there is no active market for the same asset or similar types of assets
valuation techniques are used to determine the fair value.For the above identifiable liabilities the payable amount or the present value of the
payable amount is its fair value.
2 Other reasons for change of consolidation scope
Except for the increase in the consolidation scope due to the above-mentioned business
combination involving entities not under common control other increases in the consolidation
scope during the year were new subsidiaries established during the year and the decreases
in the consolidation scope were cancellations of subsidiaries during the year.
123VIII. 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 2700000000 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 8941456800 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 9750000000 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 3845200000 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 86.08% - under common control
Beijing RMB Founded by
Beijing BOE Video Technology Co. Ltd. China Beijing China Investment platform sales of LCD 5636475800 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 37440000 - 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 18300000000 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 36.67% - 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 4786482400 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 26000000000 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 R&D production and sales of Mini LED backlight components USD Founded by
Hefei BOE Xingyu Technology Co. Ltd. China Hefei China and Mini LED display module components 115380000 65.00% - 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 4577000000 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. (Chengdu BOE Display) China China with the law and business license.) 38000000000 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. 2140000000 100% - investment
Provision of hardware and software integrated system solutions
for the IoT market segment; intelligent city intelligent transport
BOE Smart Technology Co. Ltd. Beijing intelligent finance intelligent park and the display terminal RMB Founded by
(Smart Technology) 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
liquid crystal display monitors televisions instruments Business combinations
machinery equipment and accessories as well as provision of involving
Chengdu BOE Display Sci-tech Co. Chengdu Chengdu technical services; foreign trade in form of import and export of RMB entities not under
Ltd. 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
Beijing BOE Chuangyuan Technology Beijing management; machinery and equipment leasing; manufacturing RMB Founded by
Co. Ltd. (Chuangyuan Technology) China Beijing China of other electronic devices. 14500000000 60.21% - investment
130Shareholding (or similar
equity interest) percentage
Principal
place of Registered
Name of the subsidiary business place Business nature Registered capital Direct Indirect Acquisition method
Primarily engaged in technical services technology
Beijing Beijing development; manufacturing of computer software and RMB
Beijing Shiyan Technology Co. Ltd. China China hardware as well as peripheral equipment. 209000000 80% - Founded by investment
Mianyang BOE Electronic Technology Investment research and development production and sales of
Co. Ltd. (Mianyang Electronic Mianyang Mianyang products related to semiconductor display and the supporting RMB
Technology) China China products 2400000000 100% - Founded by investment
Research development production and sales of LED chips LED Business combination
Wuhan Wuhan epitaxial wafers sapphire substrates and third-generation RMB involving entities not
HC SemiTek Corporation China China semiconductor compounds GaN power electronics devices 1616698797 23.01% - under common control
131The 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%.
132The Company and New Sure Limited entered into the Share Voting Rights Management
Agreement on 4 November 2022 pursuant to which New Sure Limited agreed to
unconditionally and irrevocably delegate to the Company the exercise and management of
its voting nomination and ancillary rights in respect of its holdings in HC SemiTek
Corporation; the Company and Yiwu Harmony Core Light Equity Investment Partnership
(Limited Partnership) signed an agreement on 10 November 2022 whereby YYiwu Harmony
Core Light Equity Investment Partnership (Limited Partnership) undertook that it would not
individually jointly or with the assistance of a third party seek to obtain the control over HC
SemiTek Corporation; Zhuhai Huafa Technology Industry Group Co. Ltd. issued a
commitment letter to the Company on 10 November 2022 undertaking that Zhuhai Huafa
Technology Industry Group Co. Ltd. and its controlled entities will not seek the control over
HC SemiTek Corporation individually jointly or with the assistance of third parties and will
not form a concerted action relationship with the shareholders of HC SemiTek Corporation or
seek the control over HC SemiTek Corporation by way of entrustment agreement alliance or
signing of a concerted action agreement etc. Therefore the Company's percentage of voting
rights over HC SemiTek Corporation is 26.52% which makes the Company a controlling
shareholder of HC SemiTek Corporation.
(2) Material non-wholly owned subsidiaries
Proportion of Losses
ownership interest attributable to Dividend declared Balance of non-
held by non- non-controlling to non-controlling controlling
controlling interests for the shareholders interests at the
Name of the subsidiary interests year during the year end of the year
Mianyang BOE 16.54% (3998675) - 3554429180
Wuhan BOE 52.86% (157799681) - 12993173506
Chongqing BOE Display 61.54% (792915395) - 14775015526
(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:
Mianyang BOE Wuhan BOE Chongqing BOE Display
202320222023202220232022
Current assets 10753172652 12372285496 6885618252 7442285566 8098980132 8590561462
Non-current assets 35310022879 37212140922 35269508547 38934583089 37527686707 32479448086
Total assets 46063195531 49584426418 42155126799 46376868655 45626666839 41070009548
Current liabilities 11025760688 11072411471 5377137118 6251107827 8612279639 5410946190
Non-current liabilities 13547536533 17008183759 12197638748 15254879708 13005587192 12186708120
Total liabilities 24573297221 28080595230 17574775866 21505987535 21617866831 17597654310
Operating income 19379451169 16357203835 14876922434 12845309881 4226393760 883001124
Net loss (24175792) (2301228643) (298523801) (3788455205) (1288455305) (327058484)
Total comprehensive income (24175792) (2301228643) (298523801) (3788455205) (1288455305) (327058484)
Cash inflows / (outflows) in
operating activities 5668948328 7118785052 5254058686 2816292270 171287026 (185310156)
1332 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
Hefei Display Technology 8.33% 36.67%
Chuangyuan Technology 79.31% 60.21%
(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 and the acquisition of
the non-controlling interests which results in the decrease of capital reserves by RMB
1219955094. See Note V. 41.
3 Interests in associates
Please see Note V.11(2) for details of the summarised financial information of the
associates.No material restrictions on transfers of funds from investees to the Group. The judgement
basis of the Company and its subsidiaries to hold lower than 20% of the voting rights of other
entities but have significant influence on the entity is due to the fact that the Company and its
subsidiaries have seats in the board of directors of the entity and the Company and
subsidiaries of the Company may have significant influence on the entity through the
representation of the directors in the process of formulating financial and operating policies.IX. 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.
134The 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.
1 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. The Group’s credit risk is primarily
attributable to receivables. Exposure to these credit risks is monitored by management on an
ongoing basis.The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does not
expect that these financial institutions may default and cause losses to the Group.In respect of receivables the Group has established a credit policy under which individual
credit evaluations are performed on all customers to determine the credit limit and terms
applicable to the customers. These evaluations focus on the customers’ financial position
the external ratings of the customers and the record of previous transactions. Receivables
are due within 7 to 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. Therefore significant concentrations of credit risk primarily arise when the
Group has significant exposure to individual customers. At the balance sheet date 36%
(2022: 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 XIV as at 31 December 2023 the Group
does not provide any external guarantees which would expose the Group or the Company to
credit risk.
1352 Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that
are settled by delivering cash or another financial asset. The Company and its individual
subsidiaries are responsible for their own cash management including short-term investment
of cash surpluses and the raising of loans to cover expected cash demands subject to
approval by the Company’s board when the borrowings exceed certain predetermined levels
of authority. The Group’s policy is to regularly monitor its liquidity requirements and its
compliance with lending covenants to ensure that it maintains sufficient reserves of cash
readily realisable marketable securities and adequate committed lines of funding from major
financial institutions to meet its liquidity requirements in the short and longer term.The following tables set out the remaining contractual maturities at the balance sheet date of
the Group’s financial liabilities which are based on contractual undiscounted cash flows
(including interest payments computed using contractual rates or if floating based on rates
current at 31 December) and the earliest date the Group can be required to pay:
2023 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 1773280214 - - - 1773280214 1746184534
Bills payable 919313033 - - - 919313033 919313033
Accounts payable 32977603351 - - - 32977603351 32977603351
Other payables 19487760965 - - - 19487760965 19487760965
Non-current liabilities due
within one year 24831720125 - - - 24831720125 24437027442
Long-term loans 4248101826 18954443798 31730890357 87859873238 142793309219 121546339022
Lease liabilities - 253329174 164561752 240102072 657992998 542141496
Long-term payables - 76675721 43243078 74598363 194517162 171611393
Total 84237779514 19284448693 31938695187 88174573673 223635497067 201827981236
2022 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 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
1363 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:
20232022
Effective interest Effective interest
Item rate Amounts rate Amounts
Financial assets
- Cash at bank 1.00%~6.25% 34032083693 0.70%~5.45% 36597334927
Financial liabilities
- Short-term loans 0.38%~5.90% (1427826333) 0.25%~5.90% (1149712480)
- Other payables 0%~2.18% (3000000000) 0%~2.18% (3000000000)
- Non-current liabilities due within
one year 0%~6.51% (11321474654) 0%~6.86% (7841491191)
- Long-term loans 1.20%~6.37% (39919524039) 0%~5.90% (25324584996)
- Lease liabilities 3.50%~4.75% (542141496) 3.65%~4.75% (538586010)
- Long-term payables 4.20%-6.51% (171611393) 4.30%~6.86% (229587077)
Total (22350494222) (1486626827)
Floating rate instruments:
20232022
Effective interest Effective interest
Item rate Amounts rate Amounts
Financial assets
- Cash at bank 0.0001%~6.25% 37628227990 0.0001%~5.30% 31723267975
Financial liabilities
- Short-term loans 3.10%~3.60% (316400000) 5.65%~5.84% (1218525680)
- Non-current liabilities due within
one year 1.00%~6.33% (12588822776) 1.00%~7.44% (14215671815)
- Long-term loans 1.00%~6.33% (81623331304) 1.00%~7.44% (97816667917)
Total (56900326090) (81527597437)
137(b) Sensitivity analysis
As at 31 December 2023 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
481870000 (2021: RMB 679150000).
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 191267567 (2022 net liabilities
exposure: USD 1523210633) translated into RMB 1354690797 (2022: RMB
10608552775) using the spot rate at the balance sheet date. Differences resulting
from the translation of the financial statements denominated in foreign currency are
excluded.(b) Assuming all other risk variables remained constant a 5% strengthening / weakening
of the Renminbi against the US dollar at 31 December would have decreased /
increased both the Group’s equity and net profit by the amount RMB 105886060
(2022: increased / decreased RMB 136665926). The exchange difference that can be
capitalized for foreign currency specific borrowings has no impact on group’s equity
and net profit.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.
138X. 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 2023
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 261201215 - 7494763280 7755964495
Including: Structured deposit
and wealth-
management
products - - 7476126776 7476126776
Investments in
equity instruments 261201215 - 18636504 279837719
- Receivables financing V.5 - - 408534622 408534622
- Investments in other equity
instruments V.12 169355368 - 325274209 494629577
- Other non-current financial assets V.13 - - 2253778325 2253778325
Including: Investments in
equity instruments - - 2253778325 2253778325
Total assets measured at fair value
on a recurring basis 430556583 - 10482350436 10912907019
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.12 154312590 - 328747716 483060306
- Other non-current financial assets V.13 - - 2022967681 2022967681
Including: Investments in
equity instruments - - 2022967681 2022967681
Total assets measured at fair value
on a recurring basis 410838373 - 19283183550 19694021923
1392 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
For bank wealth management products measured at fair value the fair value is determined
based on the discounted cash flow method.Receivables financing that are subject to recurring Level 3 fair value measurement are bills
receivable with short remaining maturities for which the fair value determined is equal to the
original carrying amount.Equity instrument investments are unlisted equity investments held by the Group including:
(i) For those who raised a new round of financing in 2023 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 2023 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.XI. 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
Area A No. 6 management of
West 6th Street state-owned
Sanlitun assets within
Chaoyang authorisation RMB
Beijing Electronics Holding Co. Ltd. District Beijing etc. 3139210000 0.73% 12.37% Yes
2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Group refer to Note VIII.1.
1403 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 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
Suzhou Chuangyi Culture Technology 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
Associate of the Group and the
Beijing BOE Art Cloud (Beijing)Technology Co. Ltd. Company
Beijing BOE Art Cloud (Yibin)Technology Co. Ltd. Associate of the Group and the
Company
Beijing Nissin Electronics Precision Component Co. Ltd. Associate of the Group and the
Company
Beijing Infi-Hailin Venture Investment (Limited Associate of the Group and the
Partnership) 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
Vusion Group SA ( Formerly known as SES Imagotag SA
Co. Ltd.) Associate of the Group
Beijing Houji Zhilian Information Technology Co. Ltd. Associate of the Group
Hefei Jiangcheng Technology Co. Ltd. Associate of the Group
Subsidiary of associate of the
SES-Imagotag GmbH Co. Ltd. Group
Chongqing Maite Optoelectronics Co. Ltd. Subsidiary of associate of the
Group
Subsidiary of associate of the
Pervasive Displays Inc Group
Subsidiary of associate of the
Beijing Borcheng Medical Laboratory Co. Ltd. Group
1414 Information on other related parties
Name of other related parties Related-party relationship
Beijing Smart-Aero Display Technology Co. Ltd. Under the same control of the ultimate holding company
Beijing Zhengdong Electronic Power Group Co. Ltd. Under the same control of the ultimate holding company
Beijing Information Technology College Under the same control of the ultimate holding company
Baic Electronics SK (Jiangsu) Technology Co. Ltd. Under the same control of the ultimate holding company
Beijing Electrical Control Jiuyi Industrial Development Under the same control of the ultimate holding company
Company
Beijing Electronic Digital Intelligence Technology Co. Under the same control of the ultimate holding company
Ltd.BeiJing D.Park Cultural Development Co. Ltd. Under the same control of the ultimate holding company
Beijing C&W Intelligent Equipment Co. Ltd. Under the same control of the ultimate holding company
Beijng NAURA Microelectronics Equipment Co.Ltd. Under the same control of the ultimate holding company
Beijing Zhaowei Technology Development Co. Ltd. Under the same control of the ultimate holding company
761 Workshop (Beijing) Technology Development Co. Under the same control of the ultimate holding company
Ltd.Sevenstar Semiconductor Technologies Co.Ltd. Under the same control of the ultimate holding company
Beijing Electronic Information Technology College Under the same control of the ultimate holding company
Beijing Ether Electronics Group co. Ltd. Under the same control of the ultimate holding company
Beijing BOE Investment Development Co. Ltd. Under the same control of the ultimate holding company
Electronic City (Tianjin) Mobile Internet Industry Platform Under the same control of the ultimate holding company
Development Co. Ltd.NAURA Technology Group Co. Ltd. Under the same control of the ultimate holding company
Beijing Yandong Microelectronic Co. Ltd. Under the same control of the ultimate holding company
Beijing Yandong Microelectronic Technology Co. Ltd. Under the same control of the ultimate holding company
Beijing Electronic City Shuzhi Technology Co. Ltd. Under the same control of the ultimate holding company
Beijing Dongdian Industrial Development Co. Ltd. Under the same control of the ultimate holding company
Beijing Electronics Holding & SK Technology Co. Ltd. Under the same control of the ultimate holding company
Beijing Zhengdong Power Equipment Installation Under the same control of the ultimate holding company
Engineering Co. Ltd.Beijing Electric Intelligent Energy Co. Ltd. Under the same control of the ultimate holding company
Beijing Dahua Electronic Instrument Corporation Under the same control of the ultimate holding company
Beijing C&W Electronics(Group) Co. Ltd. Under the same control of the ultimate holding company
Beijing Sevenstar PV Group Co. Ltd. Under the same control of the ultimate holding company
Beijing C&W Zifu Equipment Technology Co. Ltd. Under the same control of the ultimate holding company
Beijing 798 Culture Technology Co. Ltd. Associate of enterprise that is under the same control of
the ultimate holding company
New Vision Micro.(Hong Kong) Co. Ltd. Associate of enterprise that is under the same control of
the ultimate holding company
Beijing Senju Electronic Materials Co. Ltd. Associate of enterprise that is under the same control of
the ultimate holding company
Shanghai New Vision Microelectronics Co. Ltd. Associate of enterprise that is under the same control of
the ultimate holding company
China Minsheng Banking Corp. Ltd. Other related parties
Beijing Yizhuang Environmental Technology Group Co. Other related parties
Ltd.Nexchip Semiconductor Corporation Other related parties
Hefei Construction Investment and Holding Co. Ltd. Other related parties
Hefei Visionox Technology Co. Ltd. Other related parties
1425 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 2023 2022
Purchase of goods 663371654 658905000
Procurement of equipment 236814153 155286378
Receiving services 14986020 12843982
Payment of interest expenses 33637490 43423377
Total 948809317 870458737
The Company
Nature of transaction 2023 2022
Purchase of goods 34372208 32203231
Receiving services 127843351 63840655
Procurement of equipment 368000 -
Payment of interest expenses 30926480 42314510
Total 193510039 138358396
(2) Sale of goods/rendering of services
The Group
Nature of transaction 2023 2022
Sale of goods 3929802831 1168302006
Rendering of services 23418868 12004788
Income from interest received 28454504 23183395
Total 3981676203 1203490189
143The Company
Nature of transaction 2023 2022
Sale of goods 582164 101930
Rendering of services 4610851622 4742920134
Income from interest received 15702137 15398605
Total 4627135923 4758420669
(3) Leases
(a) As the lessor
The Group
Lease income Lease income
recognised in recognised in
Type of assets leased 2023 2022
Investment properties 9823412 7925143
The Company
Lease income Lease income
recognised in recognised in
Type of assets leased 2023 2022
Investment properties 65795509 65287838
144(b) As the lessee
The Group
Rental expenses for practical Variable lease payments not
expedient of short-term leases and included in the measurement of Assumed interest expenses from
the leases of low-value assets the lease liability Rental payments lease liabilities Increased right-of-use assets
Type of assets
Name of lessor leased 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Beijing Dongdian Industrial Development Co.Ltd. Fixed assets - - - - 2801931 2676474 124586 209567 - -
Hefei Jiangcheng Technology Co. Ltd. Fixed assets 328378 - - - - - - - - -
The Company
Rental expenses for practical Variable lease payments not
expedient of short-term leases and included in the measurement of Assumed interest expenses from
the leases of low-value assets the lease liability Rental payments lease liabilities Increased right-of-use assets
Type of assets
Name of lessor leased 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Beijing BOE Optoelectronics Technology Co.Ltd. Fixed assets - - - - 42971406 45409539 4093830 7113575 - -
145(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 3000000000 28/05/2018 Long-term
Subsidiary of the parent company 500000000 28/05/2019 Long-term
Subsidiary of the parent company 1300000000 28/05/2019 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 1700000000 12/10/2020 Long-term
Subsidiary of the parent company 3000000000 05/11/2020 Long-term
Subsidiary of the parent company 1700000000 28/12/2020 Long-term
Subsidiary of the parent company 1000000000 28/12/2020 Long-term
Subsidiary of the parent company 2358000000 07/12/2020 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 1000000000 05/07/2021 Long-term
Subsidiary of the parent company 2000000000 29/12/2021 Long-term
Subsidiary of the parent company 3400000000 29/12/2021 Long-term
Subsidiary of the parent company 6000000000 29/12/2021 Long-term
Subsidiary of the parent company 1500000000 31/12/2021 Long-term
Subsidiary of the parent company 200000000 31/12/2021 Long-term
Subsidiary of the parent company 1000000000 27/01/2022 Long-term
Subsidiary of the parent company 500000000 31/12/2021 Long-term
Subsidiary of the parent company 750000000 15/06/2022 Long-term
146Name of related party Amount of funding Inception date Maturity date
Funds received
Subsidiary of the parent company 1000000000 31/12/2021 Long-term
Subsidiary of the parent company 7000000000 23/08/2022 Long-term
Subsidiary of the parent company 1500000000 08/10/2022 Long-term
Subsidiary of the parent company 500000000 10/11/2022 Long-term
Subsidiary of the parent company 1000000000 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 1000000000 11/01/2023 Long-term
Subsidiary of the parent company 150000000 11/01/2023 Long-term
Subsidiary of the parent company 2400000000 11/01/2023 Long-term
Subsidiary of the parent company 2600000000 11/01/2023 Long-term
Subsidiary of the parent company 50000000 11/01/2023 Long-term
Subsidiary of the parent company 250000000 11/01/2023 Long-term
Subsidiary of the parent company 3750000000 11/01/2023 Long-term
Subsidiary of the parent company 800000000 11/01/2023 Long-term
Subsidiary of the parent company 1000000000 11/01/2023 Long-term
Subsidiary of the parent company 200000000 09/06/2023 Long-term
Subsidiary of the parent company 100000000 09/06/2023 Long-term
Subsidiary of the parent company 400000000 09/06/2023 Long-term
Subsidiary of the parent company 800000000 09/06/2023 Long-term
Subsidiary of the parent company 450000000 09/06/2023 Long-term
Subsidiary of the parent company 1290000000 09/06/2023 Long-term
Subsidiary of the parent company 1550000000 09/06/2023 Long-term
Subsidiary of the parent company 400000000 09/06/2023 Long-term
Subsidiary of the parent company 540000000 09/06/2023 Long-term
Subsidiary of the parent company 340000000 01/12/2023 Long-term
Total 79778000000
147Name of related party Amount of funding Inception date Maturity date
Funds provided
Subsidiary of the parent company 237000000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 161000000 14/04/2022 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 285000000 24/11/2020 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 200000000 29/10/2020 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 123000000 26/01/2022 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 88000000 26/01/2022 Right to request return at any time
Subsidiary of the parent company 1100000000 29/09/2022 Right to request return at any time
Subsidiary of the parent company 2000000000 03/01/2023 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 189000000 14/04/2022 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 1490000000 21/10/2020 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 570000000 30/06/2022 Right to request return at any time
Subsidiary of the parent company 175000000 08/07/2021 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 600000000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 162000000 14/04/2022 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 1700000000 26/12/2022 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 201000000 14/04/2022 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 262500000 08/07/2021 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 800000000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 159000000 14/04/2022 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 2000000000 28/10/2022 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 600000000 22/06/2022 Right to request return at any time
Subsidiary of the parent company 118000000 14/04/2022 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 201701133 14/04/2022 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 300000000 06/04/2022 Right to request return at any time
Subsidiary of the parent company 262500000 08/07/2021 Right to request return at any time
Subsidiary of the parent company 72000000 14/04/2022 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 116000000 14/04/2022 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 200000000 27/06/2022 Right to request return at any time
Subsidiary of the parent company 80000000 27/03/2015 21/01/2025
Subsidiary of the parent company 200000000 12/10/2020 12/10/2030
Subsidiary of the parent company 20000000 16/12/2022 Right to request return at any time
Total 24283701133
148(5) Remuneration of key management personnel
The Group and the Company
Item 2023 2022
Remuneration of key management personnel 51002000 86665000
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 2023 2022
Provision for Provision for
Item Book value impairment Book value impairment
Cash at bank and on hand (1) 1147791923 - 965569850 -
Accounts receivable 848755589 4883714 1070848317 4986221
Prepayments 10054763 - 6615367 -
Other receivables 787519 - 16588534 -
Contract assets 6977790 - 2402974 -
Other non-current assets 16934571 - 14026424 -
The Company
Note 2023 2022
Provision for Provision for
Item Book value impairment Book value impairment
Cash at bank and on hand (1) 511657 - 8850 -
Accounts receivable 4874309921 4315658 4867860690 4315658
Prepayments - - 146368 -
Other receivables 28179338207 12280686 19686877080 16868539
Other non-current assets 1740000000 - 1080000000 -
Payables to related parties
The Group
Item Note 2023 2022
Accounts payable 114282939 179047266
Advance payments received 103733 188623
Contract liabilities 24068821 34164291
Other payables 202371165 182554398
Non-current liabilities due within one year (2) 6000000 6000000
Long-term loans (2) 1107750000 1257250000
149The Company
Item Note 2023 2022
8999926327646402
Accounts payable
Advance payments received 798119 169459
Other payables 2791489305 2921972111
Long-term loans (2) 1042750000 1186250000
Other non-current liabilities 79800793681 96394661805
(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:
20232022
Procurement of equipment 65703454 69753978
XII. Share-based payments
1 Equity instruments
Exercised
Granted during during the
the year year Unlocked during the year Forfeited during the year
Quantit Amoun Quantit Amoun
Type of grantees y t y t Quantity Amount Quantity Amount
Senior management appointed by the
Board of Directors - - - - 3848120 10312962 1400000 3752000
Technical experts middle
management and above level - - - - 98412660 263745929 14248174 38185106
Manager senior technical cadre - - - - - - 200631536 337061981
Total - - - - 102260780 274058891 216279710 378999087
Share options or other equity instruments outstanding at the end of the year
Other equity instruments outstanding at the end of the
Share options outstanding at the end of the year year
Remaining contractual
Type of grantees Range of exercise prices life Range of exercise prices Remaining contractual life
Manager senior
technical cadre RMB 5.059 – 5.559 / share 1 - 3 years / /
1502 Equity-settled 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.(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.The total costs recognised by the Group’s equity-settled share-based payments in the
consolidated financial statement was RMB 331439427 and the accumulated amount
of capital reserve paid by equity-settled share-based payments amounted to RMB
1578168710. In the Company’s financial statements the Company recognised its
long-term equity investment of RMB 254548584 in its subsidiary at the fair value of
151the equity instruments at the grant date and recognised expenses arising from share-
based payments of RMB 76890843 as well as a capital reserve of RMB 331439427.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. 30 (1) for the repurchased obligation set
out in other payables.
(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.XIII. 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.
152The 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 2022. In order to maintain or adjust the ratio the Group
may adjust the amount of dividends paid to shareholders request new loans issue new
shares or sell assets to reduce debt.As at 31 December 2023 and 31 December 2022 the Group’s asset-liability ratios are as
follows:
20232022
Asset-liability ratio 52.81% 51.96%
Neither the Company nor any of its subsidiaries are subject to externally imposed capital
requirements.XIV. Commitments and contingencies
1 Significant commitments
(1) Capital commitments
The Group 2023 2022
Contracts entered into but not performed or partially
performed 15399501743 31109629604
Contracts authorized but not entered into 123338068701 100442930917
Total 138737570444 131552560521
The Group’s contracts authorised but not entered into mainly included the fixed assets that
Chengdu BOE Display Sci-tech Co. Ltd. BOE Healthcare Investment & Management Co.Ltd. Beijing BOE Chuangyuan Technology Co. Ltd. Management Co. Ltd. Qingdao BOE
Optoelectronics Technology Co. Ltd. Chongqing BOE Display Technology Co. Ltd. and
BOE Wisdom IOT Technology Co. Ltd. planned to purchase in subsequent years and
project equipment that the Group planned to purchase in subsequent years.The Company 2023 2022
Contracts entered into but not performed or partially
performed 42398401670 28350937574
The Company’s contracts entered into but not performed or partially performed mainly
included guaranteed investments in Chengdu BOE Display Sci-tech Co. Ltd. Beijing BOE
Chuangyuan Technology Co. Ltd. Management Co. Ltd. BOE Healthcare Investment &
Management Co. Ltd. BOE Wisdom IOT Technology Co. Ltd. Mianyang BOE Electronic
Technology Co. Ltd. and Yunnan Invensight Optoelectronics Technology Co. Ltd.
1532 Guarantee
(1) The Group as the guarantor
As at 31 December 2023 the Group did not have guarantees provided for external
enterprises.
(2) The Company as the guarantor
At 31 December 2023 Chengdu Optoelectronics pledged its land use right with carrying
amount of RMB 38417021 machinery and equipment with carrying amount of RMB
17224190248 and plants and buildings with carrying amount of RMB 2266634905 as
collaterals to obtain long-term loans of USD 578700000 and RMB 9823660000. The
Company provides joint-liability guarantee for the above loans.At 31 December 2023 Yuansheng Optoelectronics pledged its land use right with carrying
amount of RMB 42405072 machinery and equipment with carrying amount of RMB
3912197528 and plants and buildings with carrying amount of RMB 2166212374 as
collaterals to obtain long-term loans of RMB 531820000. The Company provides joint-
liability guarantee for the above loans.At 31 December 2023 Chongqing BOE Display pledged its land use right with carrying
amount of RMB 156287757 machinery and equipment with carrying amount of RMB
15749885667 and plants and buildings with carrying amount of RMB 3643694666 as
collaterals to obtain long-term loans of USD 1008140000 and RMB 7612218976. The
Company provides joint-liability guarantee for the above loans.At 31 December 2023 Fuzhou BOE pledged its land use right with carrying amount of RMB
193505488 machinery and equipment carrying amount of RMB 4056778651 and plants
and buildings with carrying amount of RMB 2835712839 as collaterals to obtain long-term
loans of USD 66000000 and RMB 216930000. The Company provides joint-liability
guarantee for the above loans.At 31 December 2023 Hefei Display Technology pledged its land use right with carrying
amount of RMB 267494910 machinery and equipment with carrying amount of RMB
9426450403 and plants and buildings with carrying amount of RMB 3400676062 as
collaterals to obtain long-term loans of RMB 1990914080. The Company provides joint-
liability guarantee for the above loans.At 31 December 2023 Mianyang BOE pledged its land use right with carrying amount of
RMB 364054376 machinery and equipment carrying amount of RMB 21837380218 and
plants and buildings with carrying amount of RMB 4721085480 as collaterals to obtain
long-term loans of USD 694730000 and RMB 10350138900. The Company provides
joint-liability guarantee for the above loans.
154At 31 December 2023 Wuhan BOE pledged its land use right with carrying amount of RMB
238900011 machinery and equipment with carrying amount of RMB 18732587486 and
plants and buildings with carrying amount of RMB 4625942334 as collaterals to obtain
long-term loans of USD 904500000 and RMB 5523000000. 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 156600000.At 31 December 2023 Chengdu BOE Hospital Co. Ltd. obtained long-term loans of RMB
1522953257. The Company provides joint-liability guarantee for the above loans.
At 31 December 2023 Nanjing Display Technology obtained short-term loans of RMB
450000000 and long-term loans of RMB 1200000000. The Company provides joint-
liability guarantee for the above loans by means of counter guarantee.XV . Segment reporting
1 Segment reporting considerations
The Group management reviews the operation performance and allocates resources
according to the business segments below.(a) Display business — The display business integrates design and manufacturing of
display devices and strives to offer TFT-LCD AMOLED Microdisplay and other
intelligent interface devices. This business focuses on providing high-quality
smartphones tablet PCs laptops monitors TVs vehicles VR/AR and other display
devices for customers.(b) Internet of Things (IoT) innovation business — The IoT innovation business integrates
manufacturing models for system solution design providing customers with competitive
smart terminal products in the fields of TVs monitors laptops tablet PCs low power
consumption products IoT 3D displays etc. With artificial intelligence and big data as
technical support it focuses on products and services that integrate software and
hardware providing integrated solutions in IoT segments such as smart finance smart
industrial parks etc.(c) Sensor business - The sensor and application solutions integrate manufacturing
models for system solution design covering both glass-based and silicon-based areas.It focuses on smart windows innovative glass-based sensor devices MEMS sensors
industrial sensors and consumer electronics providing customers with products and
solutions including smart dimming windows and dimming system solutions industrial
sensors and solutions MEMS sensors and X-ray flat panel detector backplanes.(d) MLED business — The integrates design and manufacturing of devices and provides
Mini-LED backlight products with high quality and strong reliability as well as high
dynamic range that allow precisely brightness adjustment for TVs monitors laptops
car displays VR/AR and other products; besides it provides Mini/Micro-LED display
products with high brightness strong reliability and high contrast for use in outdoor
display commercial display transparent display special display and other scenarios.
155(e) Smart engineering medicine business - The smart engineering medicine business is a
professional service model providing services and solutions in healthcare intelligent
rehabilitation and medical-engineering integration products. Meanwhile the smart
engineering medicine business is committed to building a closed loop of full-cycle
health services with health management as the core medical-engineering terminals as
the traction digital hospitals and rehabilitation communities as the support to create an
intelligent health management ecosystem to connect testing equipment healthcare
personnel and customers and to provide customers with the "prevision-treatment-
nursing" full-chained health services.(f) Others - In addition to the above businesses the Group provides software-hardware
fusion and system integration solutions for different industries specifically including
intelligent internet of vehicles industrial interconnection digital art and other segments
which can provide customers with all-round one-stop and intelligent new experiences
in IoT segmented scenarios.The main reason to separate the segments is that the Group independently manages
the display business IoT innovation business sensor and application solutions MLED
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.
1562 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.2023
Smart
engineering
IoT innovation medicine
Display business business Sensor business MLED business business Others Offsetting Total
Operating income 147053141751 38900197799 405037922 2902110558 2791584190 6850103017 (24358729342) 174543445895
Operating costs 133565229836 35289028777 330401208 3226930635 2241522000 1196726016 (23216777105) 152633061367
2022
Smart
engineering
IoT innovation medicine
Display business business Sensor business MLED business business Others Offsetting Total
Operating income 150150853163 34334478938 306552648 1599702766 2203142667 11941121572 (22122120575) 178413731179
Operating costs 137702662276 31888691477 241869035 1709769060 1809802648 4881797483 (20704025827) 157530566152
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. Besides the Group restates comparative information in 2022 according to segment reporting in
2023
1573 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
20232022
Mainland China 80541975332 74124463690
Other Asian countries and regions 55229893619 63351896814
Europe 5504039510 5745261109
America 33250560809 35121526346
Other regions 16976625 70583220
Total 174543445895 178413731179
(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 (2022: One) the operating income from which is over 10% of
the Group’s total operating income in display business. The operating income from the
customer which represents approximately 15% of the Group’s total operating income is
summarised in the table below:
Customer 2023 2022
RMB RMB
Customer 1 26082948856 28511004302
158XVI. Notes to the Company’s financial statements
1 Accounts receivable
(1) The Company’s accounts receivable by customer type:
31 December 31 December
20232022
Amounts due from related parties 4874309921 4867860690
Amounts due from other customers 3667594 4289987
Sub-total 4877977515 4872150677
Less: Provision for bad and doubtful debts 7564419 8485408
Total 4870413096 4863665269
(2) The ageing analysis of accounts receivable is as follows:
Ageing 2023 2022
Within 1 year (inclusive) 3662390168 3813706724
Over 1 year but within 2 years (inclusive) 869370034 742074869
Over 2 years but within 3 years (inclusive) 37761471 182932357
Over 3 years 308455842 133436727
Sub-total 4877977515 4872150677
Less: Provision for bad and doubtful debts 7564419 8485408
Total 4870413096 4863665269
The ageing is counted starting from the date when accounts receivable is recognised.
159(3) Accounts receivable by provisioning method
2023
Book value Provision for impairment
Percentage Percentage Carrying
Category Amount (%) Amount (%) amount
Individual assessment
- Customers with high credit risk 7564419 0% 7564419 100% -
- Customers with low credit risk 4869994263 100% - 0% 4869994263
Collective assessment
- Customers with moderate credit risk 418833 0% - 0% 418833
Total 4877977515 100% 7564419 0% 4870413096
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
(4) Additions and recoveries of provision for bad and doubtful debts during the year:
31 December 2023 31 December 2022
Customers with
Customers with Customers with Customers with Customers with Customers with moderate credit
high credit risk low credit risk moderate credit risk Total high credit risk low credit risk risk Total
Balance at the beginning of the year - 79397 8406011 8485408 - 174299 4090353 4264652
Charge during the year - 9367 - 9367 - - 4315658 4315658
Recoveries during the year - (88764) (841592) (930356) - (94902) - (94902)
Written-off during the year - - - - - - - -
Balance at the end of the year - - 7564419 7564419 - 79397 8406011 8485408
160(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB 4613531874
amounting to 95% 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 2023 2022
Dividends receivable (1) 1189273456 333352986
Others (2) 27192355082 19544792389
Total 28381628538 19878145375
(1) Dividends receivable
31 December 31 December
20232022
Beijing Matsushita Colour Innovation Co. Ltd. 468758202 333352986
BOE Optoelectronics Holdings Co. Ltd. 545367900 -
Chongqing BOE Optoelectronics Technology Co. Ltd. 135000000 -
Beijing BOE Land Co. Ltd. 40147354 -
Total 1189273456 333352986
161(2) Others
(a) The Company’s other receivables by customer type:
31 December 31 December
Customer type 2023 2022
Amounts due from subsidiaries 26989987234 19338630021
Amounts due from other related parties 77517 14894073
Amounts due from other customers 218428250 211976091
Sub-total 27208493001 19565500185
Less: Provision for bad and doubtful debts 16137919 20707796
Total 27192355082 19544792389
(b) The Company’s other receivables by currency:
As at 31 December 2023 and 31 December 2022 there is no other receivables in foreign
currency.(c) The ageing analysis of other receivables of the Company is as follows:
20232022
Within 1 year (inclusive) 26906173796 15304792246
Over 1 year but within 2 years (inclusive) 136005824 2669590657
Over 2 years but within 3 years (inclusive) 68122231 1515874424
Over 3 years 98191150 75242858
Sub-total 27208493001 19565500185
Less: Provision for bad and doubtful debts 16137919 20707796
Total 27192355082 19544792389
The ageing is counted starting from the date when other receivables are recognised.
162(d) Other receivables by provisioning method
31 December 2023
Book value Provision for impairment
Carrying
Category Amount Percentage (%) Amount Percentage (%) amount
Individual assessment
- Accounts with high creditrisk 16137919 0% 16137919 100% -
- Accounts with low credit risk 27192355082 100% - 0% 27192355082
合计27208493001100%161379190%27192355082
31 December 2022
Book value Provision for impairment
Carrying
Category Amount Percentage (%) Amount Percentage (%) amount
Individual assessment
- Accounts with high creditrisk 20707796 0% 20707796 100% -
- Accounts with low credit risk 19544792389 100% - 0% 19544792389
合计19565500185100%207077960%19544792389
(e) Movements of provisions for bad and doubtful debts
20232022
Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3
Lifetime
ECL - Not Lifetime Lifetime ECL - Lifetime
12-month credit ECL- Credit 12-month Not credit ECL- Credit
ECL impaired impaired Total ECL impaired impaired Total
Balance at the beginning of the
year - - 20707796 20707796 - - 6801910 6801910
Additions during the year - - 176044 176044 - - 13905886 13905886
Recoveries during the year - - (4745921) (4745921) - - - -
Balance at the end of the year - - 16137919 16137919 - - 20707796 20707796
(f) Other receivables categorised by nature
Nature of other receivables Note 2023 2022
Transaction amount 26989987234 19338630021
Others 218505767 226870164
Sub-total 27208493001 19565500185
Less: Provision for bad and doubtful debts 16137919 20707796
Total 27192355082 19544792389
(i) As of December 31 2023 and December 31 2022 the Company's current
accounts mainly consisted of loans receivable from subsidiaries.
163(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 22299935803 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:
20232022
Investments in subsidiaries 187984376186 211178767516
Investments in associates and joint ventures 3156825405 3162185504
Sub-total 191141201591 214340953020
Less: Provision for impairment 32000000 32000000
Total 191109201591 214308953020
164(2) Investments in subsidiaries:
Increase during the year
Balance of Balance of
provision for provision for
impairment at impairment at
Balance at the Increase in Share-based Decrease during Balance at the end of the beginning the end of the
Subsidiary beginning of the year investments payments the year* the year of the year year
Chengdu BOE Optoelectronics Technology Co.Ltd. 25108960003 - 23902297 - 25132862300 - -
Hefei BOE Optoelectronics Technology Co. Ltd. 9063122784 - 11097252 (6300000000) 2774220036 - -
Beijing BOE Display Technology Co. Ltd. 17647311114 - 64743016 (8688599600) 9023454530 - -
Hefei Xinsheng Optoelectronics Technology Co.Ltd. 20155950604 - 16389386 (9747500000) 10424839990 - -
Ordos Yuansheng Optoelectronics Co. Ltd. 11814307688 - 2116517 - 11816424205 - -
Chongqing BOE Optoelectronics Technology
Co. Ltd. 19599657767 - 6918631 (15380800000) 4225776398 - -
Fuzhou BOE Optoelectronics Technology Co.Ltd. 14701372178 536500000 5777659 - 15243649837 - -Beijing BOE Video Technology Co. Ltd. (“BOEVideo”) 4427357720 20000000 500543 - 4447858263 - -
Beijing BOE Vacuum Electronics Co. Ltd. 19933529 - 192584 - 20126113 - -
Beijing BOE Vacuum Technology Co. Ltd. 32000000 - - - 32000000 32000000 32000000
Beijing Yinghe Century Co. Ltd. 352398076 - 5786399 - 358184475 - -
BOE Optical Science and technology Co. Ltd. 667477273 - 2075965 - 669553238 - -
BOE Hyundai LCD (Beijing) Display Technology
Co. Ltd. 41986755 - 1849933 - 43836688 - -
BOE (Hebei) Mobile Technology Co. Ltd. 1356283555 - 512739 - 1356796294 - -
Beijing BOE Multimedia Technology Co. Ltd. 400000000 - - - 400000000 - -
Beijing BOE Energy Technology Co. Ltd. 857581382 - 668534 - 858249916 - -
Beijing BOE Life Technology Co. Ltd. 10000000 - - - 10000000 - -
Beijing Zhongxiangying Technologies Co. Ltd. 102267168 - 223794 - 102490962 - -
BOE Semi-conductor Co. Ltd. 9450000 - - - 9450000 - -
BOE Optoelectronics Holding Co. Ltd. 3487684762 - - - 3487684762 - -
BOE Healthcare Investment & Management Co.Ltd. 7824073441 1597000000 1920735 - 9422994176 - -
Hefei BOE Display Technology Co. Ltd. 2041579920 6929009200 9264463 - 8979853583 - -
Beijing BOE Technology Development Co. Ltd. 2512354 - 443220 - 2955574 - -
Hefei BOE Zhuoyin Technology Co. Ltd. 604704163 - 894613 - 605598776 - -
Beijing BOE Real Estate Co. Ltd. 9480764 - 519398 - 10000162 - -
Beijing BOE Marketing Co. Ltd. 31573496 - 311874 - 31885370 - -
BOE (Korea) Co. Ltd. 7095901 - 1897359 - 8993260 - -
Yunnan Invensight Optoelectronics Technology
Co. Ltd. 1518597279 - 2951109 - 1521548388 - -
Mianyang BOE Optoelectronics Technology Co.Ltd. 22342273335 - 5265626 - 22347538961 - -
Beijing BOE Sensing Technology Co. Ltd. 4496105589 35000000 5988185 - 4537093774 - -
Wuhan BOE Optoelectronics Technology Co.Ltd. 12524485421 - 6353040 - 12530838461 - -
Chongqing BOE Display Technology Co. Ltd. 9312579810 700275250 4624825 - 10017479885 - -
Fuzhou BOE Display Technology Co. Ltd. 22836726 - 223794 - 23060520 - -
Beijing Matsushita Colour CRT Co. Ltd. 5151625 - 994383 - 6146008 - -
BOE Innovation Investment Co. Ltd. 3198191319 479000000 569023 - 3677760342 - -
Hefei BOE Xingyu Technology Co. Ltd. 506367236 - 540515 - 506907751 - -
BOE Education Technology Co. Ltd. 29259274 - - - 29259274 - -
Dongfang Chengqi (Beijing) Business
Technology Co. Ltd. 13786416 - 2140752 - 15927168 - -
BOE Smart Technology Co. Ltd. 2072000000 650000000 - - 2722000000 - -
Nanjing BOE Display Technology Co. Ltd. 5598629797 - 4042190 - 5602671987 - -
Chengdu BOE Display Sci-tech Co. Ltd.
(Chengdu Display Sci-tech) 7557371638 - 4267100 - 7561638738 - -
BOE Mled Technology Co. Ltd. 1312793925 146000000 6012620 - 1464806545 - -
BOE Environmental Energy Technology Co.Ltd. 50000000 - 1886158 - 51886158 - -
Chengdu BOE Display Technology Co. Ltd. 5263000 394725000 - - 399988000 - -
Beijing BOE Chuangyuan Technology Co. Ltd - 2249653000 - - 2249653000
Mianyang BOE Electronics Technology Co. Ltd - 680000000 - - 680000000
Beijing Shiyan Technology Co. Ltd - 167200000 - - 167200000
HC SemiTek Corporation - 2083597236 - - 2083597236
Others** 236952729 - 50682353 - 287635082 - -
Total 211178767516 16667959686 254548584 (40116899600) 187984376186 32000000 32000000
* As of December 31 2023 this year's reduction in capital contribution to the subsidiary by our company has been
completed and the total amount of capital reduction receivable amounts to RMB 40116899600 Within this
figure our company has received RMB 1200000000 as capital reduction proceeds. Furthermore an
aggregate amount of RMB 36144229375 from the capital reduction receivable has been utilized to offset the
principal and interest on internal loans extended by our company to the subsidiary. As of the reporting period
there remains an outstanding capital reduction receivable of RMB 2772670225 which is recorded under other
accounts receivable.** Others represented equity-settled share-based payments granted by the Company to employees of other
subsidiaries.For information about the major subsidiaries of the Company refer to Note VIII. 1.
165(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. 136459610 - - (530631) - - - 135928979 -
Beijing Xindongneng Investment Fund
(Limited Partnership) 2034870324 - - 413237868 (341083735) - (242256254) 1864768203 -
Beijing Innovation Industry Investment Co.Ltd. 223216553 - - 12953665 - - - 236170218 -
Beijing Electric Control Industry Investment
Co. Ltd. 258149907 78035900 - (1505013) 51071365 - - 385752159 -
Beijing BOE Art Cloud Technology Co. Ltd. 359151756 - - 8087341 - (6214034) - 361025063 -
Others 150337354 28300000 (1778150) (2878421) - - (800000) 173180783 -
Total 3162185504 106335900 (1778150) 429364809 (290012370) (6214034) (243056254) 3156825405 -
1664 Other payables
Note 2023 2022
Dividends payable 6451170 6410514
Others (1) 3509544809 4242980632
Total 3515995979 4249391146
(1) Others
(a) The Company’s other payables by category are as follows:
Note 2023 2022
Amounts due to/from
subsidiaries 2791489305 2912284353
Repurchase obligation of
restricted shares V.42 457401616 753440228
Purchase of projects equipment
and intangible assets 132545852 405997313
Others 128108036 171258738
Total 3509544809 4242980632
(b) The Company’s other payables by currency:
20232022
Amount in
Amount in Exchange RMB/RMB original Exchange RMB/RMB
original currency rate equivalents currency rate equivalents
RMB 1546430154 2182655332
USD 276804561 7.0827 1960523664 295816014 6.9646 2060240211
JPY 51613367 0.0502 2590991 - - -
EUR - - - 11463 7.4229 85089
Total 3509544809 4242980632
1675 Long-term loans
20232022
Credited/ Credited/
collateralised collateralised
guaranteed/ guaranteed/
RMB pledged RMB pledged
Bank loans
- RMB 48042049084 Credited 42222030392 Credited
Less: Long-term loans due within one
year 3988949084 Credited 2664530392 Credited
Total 44053100000 39557500000
The interest rate of RMB long-term loans for the Company ranged from 1.20% to 3.30% in
2023 (2022: 0% to 3.53%).
6 Capital reserve
Items Share premium Other capital reserves Total
Balance at the beginning of the year 53066616806 627010407 53693627213
Add: Equity-settled share-based payments - 331439427 331439427
Other movements in equity of associates - (6214034) (6214034)
Cancellation of treasury shares (2244946976) - (2244946976)
Others (32084906) - (32084906)
Balance at the end of the year 50789584924 952235800 51741820724
7 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 445935 (282176415) 13421765 - 1175221 (296327466)
Including: Other comprehensive income
recognised under equity method 121611393 (290012370) 12246372 - 1175221 (181822570)
Changes in fair value of
investments in other equity
instruments (121165458) 7835955 1175393 - - (114504896)
Items that may be reclassified to profit or
loss (105590) - - - - (105590)
Total 340345 (282176415) 13421765 - 1175221 (296433056)
1688 Retained earnings
Item 2023 2022
Retained earnings at the beginning of the year 6624620470 11950975927
Total adjustments for opening retained earnings (“+”
for increase; “-” for decrease) - -
Retained earnings at the beginning of the year
(after adjustment) 6624620470 11950975927
Add: Net profits for the year 3305971786 3481863512
Less: Appropriation for statutory surplus reserve 330597179 348186351
Interest on holders of other equity instruments 118551232 530695890
Dividends to ordinary shares 2296367348 7958923130
Transfer of other comprehensive income to
retained earnings (1057699) (29586402)
Retained earnings at the end of the year 7186134196 6624620470
9 Operating income and operating costs
20232022
Item Income Cost Income Cost
Principal activities 4669890971 11551234 4826443711 9746176
Other operating activities 38575016 1076333 46885004 334092
Total 4708465987 12627567 4873328715 10080268
Including: Revenue from contracts
with customers 4604652687 3072136 4758053462 417034
Other income 103813300 9555431 115275253 9663234
16910 Investment income
20232022
Income from long-term equity investments
accounted for using the cost method 1555817904 1221116853
Income from long-term equity investments
accounted for using the equity method 429364809 328861860
Investment income from disposal of long-term
equity investments 1581850 30000000
Dividend income from investments in other equity
instruments 728606 206209
Including: Dividend income from investments in
other equity instruments held at the balance
sheet date 728606 206209
Others 3990185 353903009
Total 1991483354 1934087931
17011 Supplementary information on cash flow statement
(1) Supplement to the cash flow statement
20232022
(a) Reconciliation of net profit to cash flows from
operating activities:
Net profit 3305971786 3481863512
Add: Depreciation of fixed assets investment
properties and right-of-use assets 205071503 198186954
Amortisation of intangible assets 181868535 205316168
Amortisation of long-term deferred
expenses 73436949 53563810
Losses from scrapping of fixed assets 4248142 11563
Loss on disposal of fixed assets
intangible assets and other long-term
assets (5077109) -
Credit losses (5490866) 18126642
Losses from changes in fair value (49498773) -
Financial expenses 414990764 572555726
Investment income (1991483354) (1934087931)
Share-based payments 76890841 164840515
Change in deferred income (978788846) (916302566)
Changes in deferred tax assets and
liabilities 97968124 (113828946)
Decrease in gross inventories (4271106) 787291
Decrease / (increase) in operating
receivables (411585912) 780128458
Increase / (decrease) in operating
payables 56568894 1173595580
Net cash inflow from operating activities 970819572 3684756776
171(b) Net changes in cash and cash equivalents:
20232022
Cash and cash equivalents at the end of the
year 4249329821 7111879033
Less: Cash and cash equivalents at the
beginning of the year 7111879033 5599937349
Net increase in cash and cash equivalents (2862549212) 1511941684
(2) Details of cash and cash equivalents
20232022
Cash on hand 14205 13361
Bank deposits available on demand 4248378624 7111658528
Other monetary funds available on demand 936992 207144
Closing balance of cash and cash equivalents 4249329821 7111879033
Note: Cash and cash equivalents disclosed above exclude other monetary fund with
restricted usage.
172XVII. Extraordinary gains and losses in 2023
20232022
Losses from disposal of non-current assets (19625160) (4908339)
Government grants recognised through profit or
loss (Except for government subsidies that are
closely related to the company's normal
business operations comply with national
policies and regulations are enjoyed in
accordance with determined standards and
have a continuous impact on the company's
profit and loss) 3793619228 5458665272
Changes in fair value of financial assets held for
trading and investment income from disposal of
financial assets held for trading 360708461 275498559
Reversal of provision for bad and doubtful debts of
receivables assessed on an individual basis 43996519 18395999
Investment income from disposal of long-term
equity investments 1581850 829872568
Other income from long-term equity investments - 4620534865
Other non-operating income and expenses
besides items above 333923695 90115764
Sub total 4514204593 11288174688
Tax effect 227580473 133580776
Extraordinary gains affecting net profit of equity
shareholders of the non-controlling
shareholders 1106627416 1375063961
Total 3179996704 9779529951
Note: 1. There is no impact on BOE Group's disclosure for the year after the implementation
based on the Interpretive Pronouncement on the Preparation of Information
Disclosures of Companies Issuing Public Shares No.1 - Extraordinary Gains and
Losses (Revised in 2023).
2. Extraordinary gain and loss item listed above are presented in the amount before
taxation.
173XVIII. 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 1.89% 0.06 Not applicable
Net profit excluding extraordinary gain and
loss attributable to the Company’s ordinary
equity shareholders (0.60%) (0.02) 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.60.
(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:
20232022
Consolidated net profit attributable to ordinary
shareholders of the Company 2411710231 6946201476
Extraordinary gains and losses attributable to
ordinary shareholders of the Company 3179996704 9779529951
Consolidated net loss excluding extraordinary gain
and loss attributable to the Company’s ordinary
equity shareholders (768286473) (2833328475)
Weighted average number of ordinary shares
outstanding 37429510530 37502641911
Basic earnings per share excluding extraordinary
gain and loss (RMB/share) (0.02) (0.08)
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:
20232022
Consolidated net profit attributable to ordinary
shareholders of the Company 2411710231 6946201476
Weighted average amount of consolidated net
assets 127674255464 127511655974
Weighted average return on net assets 1.89% 5.45%
Calculation of weighted average amount of consolidated net assets is as follows:
20232022
Consolidated net assets at the beginning of the
year 127909808396 129057081638
Effect of consolidated net profit attributable to
ordinary shareholders of the Company 1205855116 3473100738
Effect of non-public issuance of shares - -
Effect of repurchase of treasury shares - (495230613)
Distribution of profits to ordinary shareholders (1335983365) (4626435310)
Effect of change in shareholding ratio of
subsidiaries (418139849) 377180229
Effect of movements in amounts attributable to
ordinary shareholders of the Company 312715166 (274040708)
Weighted average amount of consolidated net
assets 127674255464 127511655974
(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 loss excluding extraordinary gain and loss attributable to ordinary
shareholders of the Company by the weighted average amount of consolidated net assets:
20232022
Consolidated net loss excluding extraordinary gain
and loss attributable to the Company’s ordinary
equity shareholders (768286473) (2833328475)
Weighted average amount of consolidated net
assets 127674255464 127511655974
Weighted average return on net assets excluding
extraordinary gain and loss (0.60%) (2.22%)
175
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