INTERIM REPORT 2018
August 2018
BOE Technology Group Co., Ltd. Interim Report 2018
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referred
to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the
contents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.
Mr. Wang Dongsheng, the Company’s legal representative, Mr. Chen Yanshun, president ofthe Company’s Execution Committee (Chief Executive Officer), Ms. Sun Yun, the Company’sChief Financial Officer, and Ms. Yang Xiaoping, head of the Company’s financial department
(equivalent to financial manager) hereby guarantee that the Financial Statements carried inthis Report are factual, accurate and complete.
With the exception of following directors, all the other directors personally attended the boardmeeting where this semi-annual report was reviewd.
| Name of the director failed to personally attend the Board Meeting | Offices taken by the directors absent from the Meeting | Cause of the absence | Name of the mandatary |
| Li Xuan | Independent director | Business Trip | Hu XiaoLin |
The Company has no interim dividend plan, either in the form of cash or stock.Any plans for the future, development strategies and other forward-looking statements
mentioned in this Report and its summary shall NOT be considered as absolute promises ofthe Company to investors. Therefore, investors are reminded to exercise caution when making
investment decisions. For further information, see “X Risks Facing the Company andCountermeasures” in Part IV herein.This Report has been prepared as per China’s Accounting Standards for Business Enterprises
and other relevant regulations.This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
BOE Technology Group Co., Ltd. Interim Report 2018
Table of Contents
Interim Report 2018 ...... 1
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 5
Part III Business Summary ...... 9
Part IV Operating Performance Discussion and Analysis ...... 12
Part V Significant Events ...... 25
Part VI Share Changes and Shareholder Information ...... 43
Part VII Preferred Shares ...... 49
Part VIII Directors, Supervisors and Senior Management ...... 50
Part IX Corporate Bonds ...... 55
Part X Financial Report ...... 59
Part XI Documents Available for Reference ...... 210
BOE Technology Group Co., Ltd. Interim Report 2018
Definitions
| Term | Definition |
| “BOE”, the “Company”, the “Group” or “we” | BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires |
| The cninfo website | http://www.cninfo.com.cn/ |
| CSRC | The China Securities Regulatory Commission |
| SID | The Society for Information Display |
| United Ratings | United Credit Ratings Co., Ltd. |
| TFT- LCD | Thin Film Transistor- Liquid Crystal Display |
| AMOLED | Active-Matrix Organic Light Emitting Diode |
| OLED | Organic Light Emitting Diode |
| VR/AR | Virtual Reality /Augmented Reality |
| IoT | Internet of things |
| AI | Artificial Intelligence |
| IFI | The IFI CLAIMS Patent Services |
| IEC | The International Electro Technical Commission |
| The “Reporting Period” or “Current Period” | The period from 1 January 2018 to 30 June 2018 |
| RMB, RMB’0,000 | Expressed in the Chinese currency of Renminbi, expressed in ten thousand Renminbi |
BOE Technology Group Co., Ltd. Interim Report 2018
Part II Corporate Information and Key Financial Information
I Corporate Information
| Stock name | BOE-A, BOE-B | Stock code | 000725, 200725 |
| Changed stock name (if any) | N/A | ||
| Stock exchange for stock listing | Shenzhen Stock Exchange | ||
| Company name in Chinese | 京东方科技集团股份有限公司 | ||
| Abbr. (if any) | 京东方 | ||
| Company name in English (if any) | BOE TECHNOLOGY GROUP CO., LTD. | ||
| Abbr. (if any) | BOE | ||
| Legal representative | Wang Dongsheng | ||
II Contact Information
| Item | Board Secretary | Securities Representative |
| Name | Liu Hongfeng | -- |
| Address | 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China | -- |
| Tel. | 010－64318888 ext. | -- |
| Fax | 010－64366264 | -- |
| Email address | liuhongfeng@boe.com.cn | -- |
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address andemail address of the Company in the Reporting Period.
□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2017 Annual Report.
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s
BOE Technology Group Co., Ltd. Interim Report 2018
periodic reports in the Reporting Period.
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the
Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information can
be found in the 2017 Annual Report.
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| Item | H1 2018 | H1 2017 | Change (%) |
| Operating revenue (RMB) | 43,473,904,966.00 | 44,605,027,995.00 | -2.54% |
| Net profit attributable to the listed company’s shareholders (RMB) | 2,975,206,500.00 | 4,302,605,600.00 | -30.85% |
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | 978,868,759.00 | 4,017,844,109.00 | -75.64% |
| Net cash generated from/used in operating activities (RMB) | 11,439,605,846.00 | 10,638,591,266.00 | 7.53% |
| Basic earnings per share (RMB/share) | 0.085 | 0.123 | -30.89% |
| Diluted earnings per share (RMB/share) | 0.085 | 0.123 | -30.89% |
| Weighted average return on net assets (%) | 3.45% | 4.48% | -1.03% |
| Item | 30 June 2018 | 31 December 2017 | Change (%) |
| Total assets (RMB) | 276,232,247,578.00 | 256,108,741,849.00 | 7.86% |
| Net assets attributable to the listed company’s shareholders (RMB) | 85,465,192,715.00 | 84,809,816,377.00 | 0.77% |
V Accounting Data Differences under China’s Accounting Standards for Business Enterprises
(CAS) and International Financial Reporting Standards (IFRS) and Foreign AccountingStandards
1. Net Profit and Net Asset Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Reporting Period.
BOE Technology Group Co., Ltd. Interim Report 2018
2. Net Profit and Net Asset Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
XI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
| Item | Reporting Period | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -3,451,236.00 | N/A |
| Tax rebates, reductions and exemptions given with ultra vires approval or in lack of official approval documents | 0.00 | N/A |
| Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per government’s uniform standards) | 2,051,849,769.00 | N/A |
| Capital occupation charges on non-financial enterprises that are charged to current profit or loss | 0.00 | N/A |
| Gain equal to the amount by which investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net asset value of investees when making investments | 9,317,244.00 | N/A |
| Gain or loss on non-monetary asset swaps | 0.00 | N/A |
| Gain or loss on investments or assets entrusted to other entities for management | 0.00 | N/A |
| Allowance for asset impairments due to acts of God such as natural disasters | 0.00 | N/A |
| Gain or loss on debt restructuring | 0.00 | N/A |
| Restructuring costs in staff arrangement, integration, etc. | 0.00 | N/A |
| Gain or loss on over-fair value amount as a result of transactions with distinctly unfair prices | 0.00 | N/A |
| Current profit or loss on subsidiaries obtained in business combinations involving enterprises under common control from period-beginning to combination dates, net | 0.00 | N/A |
| Gain or loss on contingencies that do not arise in the Company’s ordinary course of business | 0.00 | N/A |
| Gain or loss on fair-value changes in trading financial assets and liabilities & investment income from disposal of trading financial assets and liabilities and available-for-sale financial assets (exclusive of effective portion of hedges that arise in the Company’s ordinary course of business) | 180,450,008.00 | N/A |
| Reversed portion of impairment allowance for accounts receivable which are tested individually for impairment | 153,235.00 | N/A |
| Gain or loss on loan entrustments | 0.00 | N/A |
| Gain or loss on fair-value changes in investment property of which subsequent measurement | 0.00 | N/A |
BOE Technology Group Co., Ltd. Interim Report 2018
| is carried out using fair value method | ||
| Effects of all adjustments required by taxation, accounting and other applicable laws and regulations on current profit or loss | 0.00 | N/A |
| Income from charges on entrusted management | 0.00 | N/A |
| Non-operating income and expense other than above | 31,223,326.00 | N/A |
| Other gains and losses that meet definition of exceptional gain/loss | 0.00 | N/A |
| Less: Income tax effects | 182,968,012.00 | N/A |
| Non-controlling interests effects (net of tax) | 90,236,593.00 | N/A |
| Total | 1,996,337,741.00 | -- |
Explanation of why the Company classifies a gain/loss item as exceptional according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items, or reclassifies any exceptional item listed in the said explanatory announcement as recurrent:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
BOE Technology Group Co., Ltd. Interim Report 2018
Part III Business Summary
I Core Business Scope of the Company in Reporting Period
Is the Company subject to any disclosure requirements for special industries?No.
Founded in April 1993, BOE Technology Group Co., Ltd. (“BOE”) is an IoT company providing intelligent interface products and
services for information interaction and human health. In order to further promote transformation, sharpen its competitive edges inmarket segments and stimulate faster growth, BOE has restructured itself in June 2018 into three business divisions with sevensub-divisions.1. Display and Sensor DeviceDivision D consists of the display and sensor device sub-division, and the sensor and application solution sub-division. The displayand sensor device sub-division designs and manufactures related devices with a B2B model. The display device business offersTFT-LCD, AMOLED, Micro Display and other intelligent interface devices for smartphones, tablet PCs, laptops, displayers, TVs,VR/AR devices, vehicles, wearable devices, industrial control, medical care, tiled display screens, etc. And the sensor devicebusiness provides thin film transistors for use in medical care, testing, communication, security, etc. The sensor and applicationsolution sub-division provides sensor system solutions for B2B customers of medical and household testing equipment,communication and transportation and so on, with products including X-ray, ultrasonographic systems, gene sequencing chips,molecular antenna, access control systems and liquid crystal lens.2. IoT-Based Smart SystemDivision S is divided into the smart manufacturing service sub-division, the IoT solution sub-division and the digital art IoT platformsub-division. The smart manufacturing service sub-division designs and manufactures, for its global B2B partners, the mostcompetitive ODM/OEM services and tailored smart manufacturing solutions of TVs, displayers, communication terminals, electroniclabels, commercial display products and backlight units, among others. The IoT solution sub-division offers software-and-hardwareintegrated solutions like supermarket retail solutions, bank marketing solutions, remote diagnosis solutions, digital hospitalsettlement solutions, traffic signal transmission solutions, multimedia interaction solutions, smart exhibition solutions, smart teachingsolutions, home entertainment solutions and smart micro-grid solutions, etc. for B2B customers in IoT market segments such assmart retail, smart finance, digital hospitals, smart transportation, smart education, smart business offices, smart homes and smartenergy. The digital art IoT platform sub-division with a B2C model is committed to offering the best user experience, introducing artto everyone and brightening everyday life with the beauty of art. The featured product, BOE iGallery, integrates informationtechnology with art, providing users with various services including artistic appreciation, art knowledge, art mall, custom artworksand visual aesthetics.3. Smart Healthcare Service Division (Division H)Division H includes the mobile healthcare IoT platform sub-division and the smart healthcare service sub-division. The mobilehealthcare IoT platform sub-division with a B2C model is focused on biochips for testing and household testing equipment, as wellas the related products, providing individual and household customers with mobile health testing and online diagnosis servicesincluding health management, online diagnosis, AI diagnosis and smart referral. The smart healthcare service sub-division coversdigital hospitals, regenerative medicine, healthcare parks, healthcare centres, etc. It offers B2C customers online-and-offlineintegrated professional healthcare services focused on digital medical care and supplemented by smart nursing home and healthcarepark integrated solutions, as well as by industrial park operations and the like.
BOE Technology Group Co., Ltd. Interim Report 2018
II Material Changes in Major Assets
1. Material Changes in Major Assets
| Major assets | Main reason for material changes |
| Equity assets | N/A |
| Fixed assets | N/A |
| Intangible assets | N/A |
| Construction in progress | Rise in expenditure on new construction in Reporting Period |
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
Is the Company subject to any disclosure requirements for special industries?No.1. The Company firmly promoted and implemented innovation and transformation, and improved global competitivenessBOE firmly promoted and implemented the development strategy of three major business divisions, namely smart interface devicesand solutions, smart systems and solutions as well as smart healthcare service. According to different business features and clientgroups, it also optimized the classification of its business sub-divisions, consolidated its organization mechanism and improvedglobal market competitiveness.Display and sensor device division: both the construction of new line and excellent creep speed for display and sensor businessgroup proceeded in order. In which, the product yield of the 6th Generation Flexible AMOLED Production Line (the fist in Chinaand the second in the world)-- the 6th BOE Chengdu Flexible AMOLED Production Line, as well as the first TFT-LCD ProductionLine of the highest generation in the world-- the 10.5th Generation BOE Hefei TFT-LCD Production Line was improved steadily; themain structure of the 6th Generation Mianyang Flexible AMOLED Production Line Project was capped in January; the pilefoundation project for both the 10.5th Generation BOE Wuhan TFT-LCD Production Line and Kunming OLED MicrodisplayProduction Line was completed in June. As for the sensor and solution business group, the technical innovation and marketpromotion have been further enhanced; the sales volume of photoelectric sensors has been increasing continuously, and otherproducts as gene sequencing devices start being shipped.IoT-Based smart system division: the shipment of complete TV and displayer of smart manufacturing business group has enjoyed ayear-on-year growth of 20%. Specifically, Chongqing Smart Factory realized product highlighting in March, and BOE Suzhou SmartManufacturing Service Industry Park Project realized construction commencement in May; the sales volume, volume of workstransaction as well as the number of daily active APP users of BOE Painted Screen of digital art IoT platform business group havebeen increased greatly; IoT solution business group has expanded brand owners of retail business, entered several dozens of stores,and established strategic cooperation relation with several famous benchmarking retail enterprises. In addition, it has madeachievements in terms of client development and product shipment in some business segments as smart finance and commercialoffice, etc.Smart healthcare services: Hefei Digital Hospital of smart healthcare service business group realized equipment entrance in February;
BOE Technology Group Co., Ltd. Interim Report 2018
Chengdu Digital Hospital has proceeded steadily as scheduled; regenerative medicine product R&D has developed in order;healthcare centers have realized continuous income growth. In addition, the mobile healthcare IoT platform business group hasaccelerated promoting new product R&D as well as construction of on-line/off-line sales channels, and steadily improved itsindustrial competitiveness.2. The Company stuck to client orientation and further increased its market shares
With the policy of “Deep cooperation, Collaborative development, and Value co-creation”, BOE has become the world top supplier
in semiconductor and display field. BOE has kept long-term and sustainable cooperation with well-known domestic and overseasclients, ranking as the 1st supplier for plenty of international 1st class brands. While intensifying on enlarging and maintainingstrategic clients, the Company deeply ploughed and subdivided the markets, and realized stable increase in market share insubdivided markets. According to IHS Markit (Information Handling Services, Inc. & Markit Ltd.) data, the shipment of BOEdisplay screens was nearly 0.4 billion in the first half year of 2018, enjoying a year-on-year growth surpassing 35% and ranking 1stin the world, including 5 major display screens that ranks No. 1 respectively in terms of their market occupancy. Specifically, themarket occupancy of LCD display screen for smart phones, as well as the display screen for tablet PCs and laptops kept ranking the
first place in the world, and that for displayers and TV succeeded in ranking the world’s first position. In addition, the shipment of
complete mart TV and displayers enjoyed a year-on-year growth of 20%; where, the market occupancy of complete TVs and displaysranked the 3rd and 4th place in the globe respectively.3. The Company reinforced independent innovation and further promoted innovation ability
BOE firmly persisted in self-innovation, as well as innovation ideas of “leading technology, first release in the globe, and joint valuecreation”, continued to strengthen construction of patent attack and defense system, and kept foresight and primacy of technologies
and products. In terms of the technology and product, various types of 5.45~6.3-inch mobile phones with free form and bezel-lessdisplay realized mass production; 6.18-inch WQHD flexible products realized 1mm dynamic warping; full-color transparent modelmachine of 8-inch waveguide displayer was highlighted; OGM Tilt active-pen-based 13.3-inch TPC product, namely the tablet PCsthat supports metal mesh integrated touch technology and uses active pen, realize initial release in the world; the thinnest 3.9mmMNT semi-set product (semi-integrated complete displayer product) in the world succeeded in mass production; the technologicaldevelopment of micro-fluidic chip with independent intellectual property was completed; the art Q&A, image filtering and othertechnologies for the IoT AI platform reached product-level application. In terms of patent, BOE applied for more than 4,800 patentsand was authorized with more than 2,600 patents, including more than 900 patents granted by America in the first half year of 2018,enjoying a year-on-year growth over 30%.4. The Company further improved operational efficiency via strengthening lean managementBOE continuously optimized the procedure of production bottleneck, improved yield rate, strengthened quality control andcomprehensively reduced energy consumption, thus improving the efficiency of operation remarkably. Multiple production lines ofthe Capacity reached a new high and its product yield rate was improved greatly. Specifically, the yield rate of 43-inch FHDproduced in the 8.5th Generation BOE Fuzhou TFT-LCD Production Line kept exceeding 98% for 3 consecutive months, reaching anew high in the industry. The Company strengthened client-oriented mechanism so as to further improve client-side qualityperformance, making the client-side quality of multiple brands rank the first and second place. With measures as energy saving andemission reduction, management control of spare parts and optimization of personnel structure, etc., the operation cost of theCompany was reduced effectively.
BOE Technology Group Co., Ltd. Interim Report 2018
Part IV Operating Performance Discussion and Analysis
I Overview
In the first half of 2018, the global economy was running steadily in a positive recovery. With a weakening display market, the
Company firmly upheld its strategy of “Ecoresystem: Open and Connected” and achieved good operating results in the industry. Also,the Reporting Period saw improvements in the Company’s technological and product innovation with the Company applying for over
4,800 new patents in the period. Meanwhile, the Company has dominated all the markets of mainstream display products. Progresshas been made in expansion in the innovative application market, with output rising over 140% year-on-year. Unit sales of all the
“8425” high-definition products registered marked growth. With enhanced marketing, BOE iGallery saw improvements in both
market recognition and unit sales. Cooperation on electronic labels for smart retail has been established with supermarkets across theglobe. In the Internet of Vehicles (IoV) business, the Company strengthened cooperation with notable car makers and the TFT unitsales went up. The AMOLED average yield rate has exceeded 70% as at the end of this June, with shipments continuously delivered
to well-known manufacturers. Additionally, the Company successfully held a suppliers’ meeting and the first Digital Art Forum, as
well as participating in various fairs and exhibitions at home and abroad (Japan, Europe, the U.S., etc.) to promote its advancedproducts and technologies including flexible AMOLED, 8K, micro display, mini-LED and QLED, as well as commercial display
solutions and new retail solutions. These moves were aimed at boosting the Company’s brand recognition.
1. Display and Sensor DeviceVarious types of mobile phones with free form and bezel-less display realized mass production, 6.18-inch flexible products realized1mm dynamic warping, and 5.99-inch flexible products realized dynamic floating appearance design. The OGM Tiltactive-pen-based TPC product (the tablet PCs that supports metal mesh integrated touch technology and uses active pen) that realizedinitial release in the world achieved mass production in April; the 3.9mm MNT semi-set product, which is the thinnest in the worldand first semi-integrated complete displayer product of BOE, succeeded in mass production; several types of innovative productswere exhibited in domestic and overseas exhibitions, including the 7.56-inch QXGA Foldable (foldable product with resolution ratiobeing 2048 x 1536) that won Innovative Product and Application Award in 2018 China Electronic Information Expo (CITE). Theconstruction of new production line was implemented as scheduled and realized phased target in advance; the 10.5
th
Generation BOEHefei Production Line was completed in June; the pile foundation engineering of Kunming Microdisplay Project was completed onJun. 25; the first 0.39-inch product was highlighted and realized SID sample display on May 23. The production capacity of the 8.5
th
Generation Chongqing and Fuzhou Production Lines reached a high respectively, with comprehensive yield rate improvedcontinuously.
2. IoT-Based Smart SystemThe Company innovated its iGallery business, optimized contents of APP function, and increased business performance rapidly, thusenjoying comparative growth of sales volume on moving base with 170%, newly developing 350,000 users, and increasing theamount of works transactions by fivefold. The layout of Smart Retail Business in China started to show effects; the cumulativenumber of brand owners and stores in market in regions as North China, Central China, Southern China and Sichuan, etc., reached 30and 40 respectively. As for Smart Services, the Company optimized product structure, increased sales volume steadily, improved thesales ratio of high-efficient products as TVs and displayers, and made its new application business develop rapidly. In addition, BOEalso promoted its project in progress steadily; for example, BOE Suzhou Industry Park Project was commenced successfully andChongqing Smart Manufacturing Factory realized mass production. Moreover, Smart Energy PV Project achieved stable andhigh-efficient operation.
3. Smart Healthcare Service
BOE Technology Group Co., Ltd. Interim Report 2018
The Company defined business development strategy, focused on mobile healthcare products on the basis of Internet of health andlife data, provided services as healthcare guidance, disease prevention and precision medicine through integrating digital hospitals,regenerative medicine and healthcare centers by virtue of life data, AI technology and professional medical team, and built an overalland full-life-circle healthcare service ecosystem. As for mobile healthcare, the Company focused on microfluidics, biologicaldetection method and other technologies to independently research and develop biochips and family doctor equipment products,which form an integrated business development framework together with ecological chain products and APP service platform. Forregenerative medicine, the Company completed establishing a system for heart diaphragm clinical research to promote animalexperiment and clinical research. The operation preparation for Hefei BOE Hospital was in progress, and the Company continuouslycarried out on-line/off-line market promotion to improve its brand popularity; Chengdu BOE Hospital completed conceptual plan.For healthcare centers, the Company persisted in optimizing client structure continuously, and realized remarkable effect in projectexpansion. In addition, the Company also firmly promoted project planning for life science and technology industry base.
II Analysis of Core Businesses
See “I Overview” above.
Year-on-year changes in key financial data:
Unit: RMB
| Item | H1 2018 | H1 2017 | Change (%) | Main reason for change |
| Operating revenue | 43,473,904,966.00 | 44,605,027,995.00 | -2.54% | -- |
| Cost of sales | 35,144,582,131.00 | 32,235,266,589.00 | 9.03% | -- |
| Selling expense | 1,294,782,594.00 | 1,228,560,863.00 | 5.39% | -- |
| Administrative expense | 3,743,903,273.00 | 3,052,661,575.00 | 22.64% | -- |
| Finance costs | 1,201,173,655.00 | 1,099,113,182.00 | 9.29% | -- |
| Income tax expense | 659,568,560.00 | 940,261,615.00 | -29.85% | -- |
| R&D expense | 3,645,381,340.00 | 3,169,248,290.00 | 15.02% | R&D was strengthened |
| Net cash generated from/used in operating activities | 11,439,605,846.00 | 10,638,591,266.00 | 7.53% | -- |
| Net cash generated from/used in investing activities | -23,807,637,169.00 | -31,989,473,181.00 | N/A | -- |
| Net cash generated from/used in financing activities | 8,148,650,744.00 | 15,249,414,489.00 | -46.56% | Rise in cash repayment of borrowings |
| Net increase in cash and cash equivalents | -4,823,287,992.00 | -6,556,493,365.00 | N/A | -- |
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes in the Reporting Period.Breakdown of core businesses:
BOE Technology Group Co., Ltd. Interim Report 2018
Unit: RMB
| Item | Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) |
| By operating division | ||||||
| Display and Sensor Device | 39,168,994,378.00 | 32,151,300,891.00 | 17.92% | -5.15% | 8.34% | -10.22% |
| IoT-Based Smart System | 7,347,282,083.00 | 6,738,168,128.00 | 8.29% | 4.01% | 2.38% | 1.47% |
| Smart healthcare service | 526,401,626.00 | 245,030,759.00 | 53.45% | 7.45% | -0.51% | 3.72% |
| Other | 2,536,686,461.00 | 5,086,300.00 | 99.80% | 473.69% | -40.08% | 1.72% |
| Offset | -6,105,459,582.00 | -3,995,003,947.00 | 34.57% | 30.26% | -6.61% | 25.83% |
| By product category | ||||||
| Display and Sensor Device | 39,168,994,378.00 | 32,151,300,891.00 | 17.92% | -5.15% | 8.34% | -10.22% |
| IoT-Based Smart System | 7,347,282,083.00 | 6,738,168,128.00 | 8.29% | 4.01% | 2.38% | 1.47% |
| Smart healthcare services | 526,401,626.00 | 245,030,759.00 | 53.45% | 7.45% | -0.51% | 3.72% |
| Other | 2,536,686,461.00 | 5,086,300.00 | 99.80% | 473.69% | -40.08% | 1.72% |
| Offset | -6,105,459,582.00 | -3,995,003,947.00 | 34.57% | 30.26% | -6.61% | 25.83% |
| By operating segment | ||||||
| Mainland China | 20,103,929,842.00 | 16,190,889,704.00 | 19.46% | -6.63% | -2.21% | -3.64% |
| Other Asian countries and regions | 19,536,476,173.00 | 15,631,279,906.00 | 19.99% | -6.48% | 12.28% | -13.37% |
| Americas | 2,235,667,679.00 | 1,932,772,478.00 | 13.55% | 115.96% | 132.80% | -6.25% |
| Europe | 1,530,317,118.00 | 1,336,718,515.00 | 12.65% | 37.50% | 49.00% | -6.74% |
| Other countries and regions | 67,514,154.00 | 52,921,528.00 | 21.61% | 87.55% | 82.22% | 2.29% |
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | As % of profit before taxation | Source/Reason | Exceptional or recurrent |
BOE Technology Group Co., Ltd. Interim Report 2018
| Investment income | 166,924,013.00 | 4.78% | Income from wealth management product investments | Exceptional |
| Gain/loss on changes in fair value | 0.00 | 0.00% | N/A | Exceptional |
| Asset impairments | 458,149,260.00 | 13.13% | Inventory valuation allowances established according to market conditions | Exceptional |
| Non-operating income | 96,641,868.00 | 2.77% | Governmental subsidies received in Reporting Period | Exceptional |
| Non-operating expense | 7,653,811.00 | 0.22% | Loss on disposal of non-current assets | Exceptional |
IV Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
| Item | 30 June 2018 | 30 June 2017 | Change in percentage (%) | Reason for material change | ||
| Amount | As % of total assets | Amount | As % of total assets | |||
| Monetary assets | 50,581,910,423.00 | 18.31% | 50,760,400,727.00 | 22.51% | -4.20% | N/A |
| Accounts receivable | 17,356,033,029.00 | 6.28% | 16,863,534,739.00 | 7.48% | -1.20% | N/A |
| Inventories | 10,933,542,222.00 | 3.96% | 9,759,164,036.00 | 4.33% | -0.37% | N/A |
| Investment property | 1,278,070,770.00 | 0.46% | 1,271,764,715.00 | 0.56% | -0.10% | N/A |
| Long-term equity investments | 3,443,815,633.00 | 1.25% | 1,981,030,454.00 | 0.88% | 0.37% | N/A |
| Fixed assets | 84,979,890,697.00 | 30.76% | 78,898,829,994.00 | 34.99% | -4.23% | N/A |
| Construction in progress | 73,903,155,311.00 | 26.75% | 44,127,069,216.00 | 19.57% | 7.18% | Higher expenditures on new construction, equipment installation and renovations |
| Short-term borrowings | 2,213,431,454.00 | 0.80% | 6,088,832,994.00 | 2.70% | -1.90% | Repayment of some bank loans |
| Long-term borrowings | 83,261,644,214.00 | 30.14% | 53,462,402,931.00 | 23.71% | 6.43% | Rise in borrowings for new |
BOE Technology Group Co., Ltd. Interim Report 2018
| construction | ||||||
| Other current assets | 18,930,028,377.00 | 6.85% | 9,773,604,550.00 | 4.33% | 2.52% | Rise in wealth management product investments |
| Accounts payable | 19,003,618,742.00 | 6.88% | 15,215,611,240.00 | 6.75% | 0.13% | N/A |
| Other payables | 15,925,444,403.00 | 5.77% | 15,003,435,170.00 | 6.65% | -0.88% | N/A |
| Current portion of non-current liabilities | 6,402,772,896.00 | 2.32% | 9,749,188,493.00 | 4.32% | -2.00% | Repayment of bank loans and amounts under finance leases |
BOE Technology Group Co., Ltd. Interim Report 2018
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
| Item | Beginning amount | Gain/loss on fair-value changes in Reporting Period | Cumulative fair-value changes charged to equity | Impairment allowance for Reporting Period | Purchased in Reporting Period | Sold in Reporting Period | Ending amount |
| Financial assets | |||||||
| 1. Financial assets at fair value through profit or loss (exclusive of derivatives) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Derivative financial assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Available-for-sale financial assets | 527,750,536.00 | 0.00 | 11,433,970.00 | 0.00 | 0.00 | 4,666,723.00 | 428,940,048.00 |
| Subtotal of financial assets | 527,750,536.00 | 0.00 | 11,433,970.00 | 0.00 | 0.00 | 4,666,723.00 | 428,940,048.00 |
| Investment property | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Productive living assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total of above | 527,750,536.00 | 0.00 | 11,433,970.00 | 0.00 | 0.00 | 4,666,723.00 | 428,940,048.00 |
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Material changes in the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
BOE Technology Group Co., Ltd. Interim Report 2018
3. Restricted Asset Rights as of End of the Reporting Period
| Item | Ending carrying value | Reason for restriction |
| Monetary funds | 7,491,910,832.00 | Guarantee and security deposits |
| Notes receivable | 337,614,015.00 | Discounted and transferred with right of recourse, endorsed and transferred with right of recourse, as pledge for opening notes payable |
| Inventories | 0.00 | Naught |
| Fixed assets | 58,386,289,547.00 | Mortgage |
| Intangible assets | 919,408,714.00 | Mortgage |
| Investment property | 202,627,706.00 | Mortgage |
| Construction in progress | 8,516,973,161.00 | Mortgage |
| Total | 75,854,823,975.00 | -- |
V Investments Made
1. Total Investments Made
√ Applicable □ Not applicable
| Investments made in this Reporting Period (RMB) | Investments made in the prior year (RMB) | +/-% |
| 914,421,769.00 | 787,439,623.00 | 16.13% |
2. Significant Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Interim Report 2018
4. Financial Investments(1) Securities Investments
√ Applicable □ Not applicable
| Variety of securities | Code of securities | Name of securities | Initial investment cost | Accounting measurement model | Beginning carrying value | Profit/loss on fair value changes in this Reporting Period | Cumulative fair value changes charged to equity | Purchased in this Reporting Period | Sold in this Reporting Period | Profit/loss in this Reporting Period | Ending carrying value | Accounting title | Source of investment funds |
| Domestic/overseas stock | HK00903 | TPV Technology | 134,658,158.00 | Fair value method | 21,584,703.00 | 0.00 | -10,380,561.00 | 0.00 | 0.00 | 196,070.00 | 17,662,746.00 | Available-for-sale financial asset | Self-owned funds |
| Domestic/overseas stock | SH600658 | Electronic Zone | 90,160,428.00 | Fair value method | 108,996,372.00 | 0.00 | 25,222,704.00 | 0.00 | 0.00 | 1,875,523.00 | 71,898,328.00 | Available-for-sale financial asset | Self-owned funds |
| Domestic/overseas stock | HK01963 | Bank of Chongqing | 120,084,375.00 | Fair value method | 130,968,760.00 | 0.00 | -14,105,522.00 | 0.00 | 0.00 | 2,973,103.00 | 105,978,853.00 | Available-for-sale financial asset | Self-owned funds |
| Funds | BLK | BlackRock Global Allocation Fund (USD) A2 | 0.00 | Fair value method | 6,347,799.00 | 0.00 | 2,081,841.00 | 0.00 | 6,179,429.00 | 2,519,561.00 | 0.00 | Available-for-sale financial asset | Self-owned funds |
| Domestic/overseas stock | HK06066 | China Securities | 70,041,364.00 | Fair value method | 65,856,319.00 | 0.00 | -16,478,117.00 | 0.00 | 0.00 | 0.00 | 53,563,247.00 | Available-for-sale | Self-owned funds |
BOE Technology Group Co., Ltd. Interim Report 2018
| financial asset | |||||||||||||
| Domestic/overseas stock | HK01518 | New century medical treatment | 140,895,855.00 | Fair value method | 178,837,871.00 | 0.00 | 27,387,438.00 | 0.00 | 662,426.00 | 1,105,194.00 | 168,283,293.00 | Available-for-sale financial asset | Self-owned funds |
| Domestic/overseas stock | HK00948 | Z-Obee Holdings Ltd. | 0.00 | Fair value method | 246,566.00 | 0.00 | 305,200.00 | 0.00 | 290,658.00 | 293,867.00 | 0.00 | Available-for-sale financial asset | Self-owned funds |
| Other securities investments held at the period-end | 0.00 | -- | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | ||
| Total | 555,840,180.00 | -- | 512,838,390.00 | 0.00 | 14,032,983.00 | 0.00 | 7,132,513.00 | 8,963,318.00 | 417,386,467.00 | -- | -- | ||
| Disclosure date of the announcement about the board’s consent for the securities investment | N/A | ||||||||||||
| Disclosure date of the announcement about the general meeting’s consent for the securities investment (if any) | N/A | ||||||||||||
Note: During the Reporting Period, the Group disposed its investments in the BlackRock Global Allocation Fund and Z-Obee Holdings Limited, and the corresponding initial investment costsare zero as a result. It also disposed some shares in New Century Healthcare, reducing the corresponding initial investment cost by RMB662,426.00 from the beginning amount.
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Interim Report 2018
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
VII Main Controlled and Joint Stock Companies
√Applicable □ Not applicableMain subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
| Company name | Relationship with the Company | Main business scope | Registered capital | Total assets | Net assets | Operating revenues | Operating profit | Net profit |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Subsidiary | R&D, design, production, and sales of the new type display devices and the components | 20,000,000,000.00 | 36,431,072,202.00 | 18,057,579,935.00 | 1,633,816,945.00 | 459,016,102.00 | 463,054,338.00 |
| Hefei BOE Optoelectronics Technology Co., Ltd. | Subsidiary | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products | 9,000,000,000.00 | 15,529,942,441.00 | 11,104,422,788.00 | 6,391,886,535.00 | 970,527,137.00 | 830,300,581.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Beijing BOE Display Technology Co., Ltd. | Subsidiary | Development and production of TFT-LCD | 17,882,913,500.00 | 31,361,554,717.00 | 20,999,627,381.00 | 13,996,549,715.00 | 405,473,811.00 | 352,160,749.00 |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Subsidiary | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products | 19,226,000,000.00 | 39,681,055,534.00 | 24,601,144,758.00 | 8,549,888,630.00 | 1,284,048,337.00 | 1,092,672,322.00 |
Subsidiaries obtained or disposed in this Reporting Period
√ Applicable □ Not applicable
BOE Technology Group Co., Ltd. Interim Report 2018
| Subsidiary | How the subsidiary was obtained or disposed in this Reporting Period | Effect on overall production and operation results |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Business combination not under the same control | Subsidiary incorporated to build the 6th generation AMOLED (flexible) production line, which is expected to produce positive effects on the Company. |
| Beijing BOE Sensor Technology Co., Ltd. | Invest to establish | In order to promote fast development of the sensor business, a sensor technology subsidiary has been set up to provide sensor system solutions for B2B customers of medical and household testing equipment, communication and transportation and so on. |
| SES Imagotag SA | Business combination not under common control | The combination of SES Imagotag SA is an important strategic opportunity to capitalize on the “new retail” trend at home and abroad to launch the Company’s new retail business for strategic transformation. |
Information about the main controlled and joint stock companiesNaught
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Performance Forecast for January-September 2018
Warning of possible loss or considerable YoY change in the accumulative net profit made during the period-beginning to the end ofthe next reporting period, as well as the reasons:
□ Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
1. Risk of Macroeconomic FluctuationThe first half of 2018 saw a stable global economy but with complexities and changes, and frequent trade frictions led to mounting
downward pressure. China’s economy was also in a stable and positive state with remarkable supply-side reform results, but the
external environment affected the domestic economy to some degree. With respect to the display device market, lower-than-expectedgrowth was seen with oversupply and falling market prices. The five major mainstream markets in this industry were almostsaturated, indicating limited space for growth, while certain market segments saw fast growth and there were promising prospects forinnovative products. Under this background, the Company persisted in transformation and upgrading driven by innovation, continuedstrengthening lean management, optimized product structure, improved efficiency of product operation, accelerated improving
BOE Technology Group Co., Ltd. Interim Report 2018
AMOLED global competitiveness, promoted the rapid development of sensor business, consolidated the basis for software andhardware technology integration, accelerate core capacity building of information and healthcare, and comprehensively promoted theimprovement of profitability.2. Management Risk Caused by Transformation and UpgradingAt present, the Company has established standard management system and its business management has been in excellent situation;
however, the Company’s development has also brought in production scale growth and business scope expansion, thus putting
forward higher requirements on operation and management level of the Company.Under this background, the Company has optimized and adjusted its organization structure to provide strong organizational guaranteefor innovative transformation and development, as well as core capacity building. Meanwhile, the Company has optimized itsmanagement mode, reduced organizational hierarchies, improved efficiency of operation, strengthened professional service
organization and ability by adhering to “objective-oriented, client-oriented, question-oriented and people-oriented” policies and theprinciples of “marketization, internationalization and professionalization” according to business features and development stages of
market segment, thus making its business team focus more on the market segment, inspiring entrepreneurial enthusiasm continuously,as well as realizing long-time, stable and high-quality growth.
BOE Technology Group Co., Ltd. Interim Report 2018
Part V Significant Events
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Index to disclosed information |
| The 1st Extraordinary General Meeting of 2018 | Extraordinary General Meeting | 35.21% | 30 March 2018 | 31 March 2018 | www.cninfo.com.cn |
| The 2017 Annual General Meeting | Annual General Meeting | 34.31% | 28 May 2018 | 29 May 2018 | www.cninfo.com.cn |
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed VotingRights
□ Applicable √ Not applicable
II Interim Dividend Plan for the Reporting Period
□ Applicable √ Not applicable
The Company has no interim dividend plan.
III Commitments of the Company’s Actual Controller, Shareholders, Connected Parties and
Acquirer, as well as the Company and Other Commitment Makers, Fulfilled in the ReportingPeriod or still Ongoing at Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of CPAs Firm
Has the Interim financial report been audited?
□Yes √ No
This Interim Report is unaudited.
BOE Technology Group Co., Ltd. Interim Report 2018
V Explanations Given by Board of Directors and Supervisory Committee Regarding
“Modified Auditor’s Report” Issued by CPAs Firm for the Reporting Period
□ Applicable √ Not applicable
VI Explanations Given by Board of Directors Regarding “Modified Auditor’s Report” Issued
for Last Year
□ Applicable √ Not applicable
VII Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits or arbitrations:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Other legal matters:
√ Applicable □Not applicable
| Basic situation of lawsuit (arbitration) | Lawsuit amount (RMB ‘0,000) | Whether form into estimated liabilities | Process of lawsuit (arbitration) | Trial results and influences of lawsuit (arbitration) | Situation of execution of judgment of lawsuit (arbitration) | Disclosure date | Disclosure index |
| Disputes case of sales contract that BOE Technology (HK) Limited sued LeTV Mobile Intelligent Information Technology (Beijing) Co., Ltd, LeTV Holdings (Beijing) Co., Ltd., Le | 28,471.43 | No | Jurisdiction objection put forward by LeTV Mobile to Beijing High People’s Court was rejected, and LeTV Mobile had filed a lawsuit before supreme people’s court on jurisdiction objection. At present, the final verdict is waiting to be to be made by | Unknown | N/A | 24 April 2018 | For details, see Annual Report of 2017 of BOE Technology Group Co., Ltd. disclosed on www.cninfo.com.cn. on 24 April 2018 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Sai Mobile Technology (Beijing) Co., Ltd. and Mr. JiaYueting | supreme people’s court. | ||||||
| Litigations for the first half year of 2018 (including carryforwards in previous years ) | 7,066.06 | No | N/A | N/A | N/A | N/A | N/A |
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Credit Conditions of the Company as well as its Controlling Shareholder and ActualController
□ Applicable √ Not applicable
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures forEmployees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Significant Connected Transactions
1. Connected Transactions Relevant to Routine Operations
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Connected Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Connected Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Interim Report 2018
No such cases in the Reporting Period.
4. Credits and Liabilities with Connected Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Significant Connected Transactions
√ Applicable □Not applicable
NaughtIndex to the public announcements about the said related-party transactions disclosed
| Title of public announcement | Disclosure date | Disclosure website |
| Announcement on Investment and Construction of Project of the 6th generation AMOLED (flexible) production line in Chongqing and Connected Transactions | 9 March 2018 | www.cninfo.com.cn |
| Announcement on the Prediction of 2018 Annual Routine Connected Transaction | 24 April 2018 | www.cninfo.com.cn |
XIII. Particulars about the Non-operating Occupation of Funds by the ControllingShareholder and Other Connected Parties of the Company
□ Applicable √ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other connected partiesduring the Reporting Period.
XIV. Significant Contracts and Execution
1. Entrustment, Contracting and Leasing(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Interim Report 2018
(3) Leasing
□ Applicable √ Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Interim Report 2018
2. Significant Guarantees
√ Applicable □Not applicable
(1) Guarantees
Unit: RMB'0,000
| Guarantees provided by the Company for external parties (excluding those for subsidiaries) | ||||||||
| Guaranteed party | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date (date of agreement signing) | Actual guarantee amount | Type of guarantee | Term of guarantee | Due or not | Guarantee for a connected party or not |
| N/A | ||||||||
| Total guarantee line for external parties approved during the Reporting Period (A1) | 0 | Total actual guarantee amount for external parties during the Reporting Period (A2) | 0 | |||||
| Total approved guarantee line for external parties at the end of the Reporting Period (A3) | 0 | Total actual guarantee balance for external parties at the end of the Reporting Period (A4) | 0 | |||||
| Guarantees provided by the Company for subsidiaries | ||||||||
| Guaranteed party | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date (date of agreement signing) | Actual guarantee amount | Type of guarantee | Term of guarantee | Due or not | Guarantee for a connected party or not |
| Hefei BOE Photoelectric Technology Co., Ltd. | 14 August 2014 | 731,955 | 12 March 2015 | 104,140 | Joint liability guarantee | 23 July 2010 to 23 July 2019 | No | No |
BOE Technology Group Co., Ltd. Interim Report 2018
| Hefei XinSheng Photoelectric Technology Co., Ltd. | 14 August 2014 | 1,208,827 | 15 January 2015 | 767,526 | Joint liability guarantee | 6 January 2014 to 6 January 2022 | No | No |
| Ordos YuanSheng Photoelectric Co., Ltd. | 2 April 2013 | 463,642 | 22 May 2013 | 246,788 | Joint liability guarantee | 17 June 2013 to 9 June 2021 | No | No |
| Ordos YuanSheng Photoelectric Co., Ltd. | 14 August 2014 | 463,642 | 30 September 2014 | 246,788 | Pledge | 17 June 2013 to 9 June 2021 | No | No |
| Ordos YuanSheng Photoelectric Co., Ltd. | 30 November 2016 | 544,746 | 15 March 2017 | 413,444 | Joint liability guarantee | 17 March 2017 to 17 March 2025 | No | No |
| Chengdu BOE Photoelectric Technology Co., Ltd. | 25 April 2017 | 2,244,479 | 30 August 2017 | 1,398,692 | Joint liability guarantee | 6 September 2017 to 6 September 2027 | No | No |
| Chengdu BOE Photoelectric Technology Co., Ltd. | 25 April 2017 | 450,000 | 30 August 2017 | 248,900 | Joint liability guarantee | Opening date of the letter of guarantee to 31 July 2023 | No | No |
| Chongqing BOE Photoelectric Technology Co., Ltd. | 14 August 2014 | 1,390,897 | 29 September 2014 | 1,074,402 | Joint liability guarantee | 5 November 2014 to 5 November 2022 | No | No |
| Chongqing BOE Photoelectric Technology Co., Ltd. | 14 August 2014 | 300,000 | 25 May 2015 | 15,000 | Joint liability guarantee | Opening date of the letter of guarantee to 31 December 2020 | No | No |
| Hefei BOE Display Technology Co., Ltd. | 1 December 2016 | 1,625,361 | 30 August 2017 | 1,563,749 | Joint liability guarantee | 7 September 2017 to 7 September 2025 | No | No |
| Hefei BOE Display Technology Co., Ltd. | 1 December 2016 | 450,000 | 21 December 2017 | 352,000 | Joint liability guarantee | Opening date of the letter of guarantee to 31 March 2024 | No | No |
| Fuzhou BOE Photoelectric Technology Co., Ltd. | 10 December 2015 | 1,303,256 | 8 November 2016 | 1,092,839 | Joint liability guarantee | 19 December 2016 to 19 December 2024 | No | No |
| Fuzhou BOE Photoelectric Technology Co., Ltd. | 10 December 2015 | 300,000 | 8 November 2016 | 204,000 | Joint liability guarantee | Opening date of the letter of guarantee to 28 December 2023 | No | No |
BOE Technology Group Co., Ltd. Interim Report 2018
| Mianyang BOE Photoelectric Technology Co., Ltd. | 18 May 2018 | 2,050,000 | N/A | N/A | Joint liability guarantee | Not signing the contract yet | No | No |
| Mianyang BOE Photoelectric Technology Co., Ltd. | 18 May 2018 | 460,000 | 22 June 2018 | 68,000 | Joint liability guarantee | Opening date of the letter of guarantee to 31 October 2027 | No | No |
| Total guarantee line for subsidiaries approved during the Reporting Period(B1) | 2,510,000 | Total actual guarantee amount for subsidiaries during the Reporting Period (B2) | 412,262 | |||||
| Total approved guarantee line for subsidiaries at the end of the Reporting Period (B3) | 13,618,162 | Total actual guarantee balance for subsidiaries at the end of the Reporting Period (B4) | 7,549,479 | |||||
| Guarantees between subsidiaries | ||||||||
| Guaranteed party | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date (date of agreement signing) | Actual guarantee amount | Type of guarantee | Term of guarantee | Due or not | Guarantee for a connected party or not |
| Ordos YuanSheng Photoelectric Co., Ltd. | 2 April 2013 | 463,642 | 22 May 2013 | 246,788 | Pledge | 17 June 2013 to 9 June 2021 | No | No |
| Huanda Trading (Hebei) Co., Ltd. | N/A | 14,600 | 24 May 2017 | 14,550 | Joint liability guarantee | 15 June 2017 to 16 January 2029 | No | No |
| Guangtai Solar Energy Technology (Suzhou) Co., Ltd | N/A | 5,450 | 20 December 2017 | 5,240 | Joint liability guarantee | 20 December 2017 to 6 April 2027 | No | No |
| Yangyuan Photovoltaic Power Generation | N/A | 4,552 | 11 September 2017 | 4,552 | Joint liability guarantee | 11 September 2017 to 11 September 2027 | No | No |
BOE Technology Group Co., Ltd. Interim Report 2018
| (Huanggang) Co., Ltd | ||||||||
| Yaoguang New Energy (Shouguang) Co., Ltd | N/A | 4,192 | 31 October 2017 | 4,192 | Joint liability guarantee | 31 October 2017 to 31 October 2027 | No | No |
| Suzhou Industrial Park Taijing Photovoltaic Co., Ltd | N/A | 3,484 | 1 December 2017 | 3,484 | Joint liability guarantee | 1 December 2017 to 1 December 2027 | No | No |
| Qingmei Solar Energy Technology (Lishui) Co., Ltd | N/A | 4,678 | 21 December 2017 | 4,678 | Joint liability guarantee | 21 December 2017 to 21 December 2027 | No | No |
| Qinghong Solar Energy Technology (Jinhua) Co., Ltd | N/A | 2,374 | 21 December 2017 | 2,374 | Joint liability guarantee | 21 December 2017 to 21 December 2027 | No | No |
| Qinghui Solar Energy Technology (Jinhua) Co., Ltd | N/A | 3,666 | 15 December 2017 | 3,666 | Joint liability guarantee | 15 December 2017 to 15 December 2027 | No | No |
| Rongke New Energy (Hefei) Co., Ltd | N/A | 1,400 | 18 December 2017 | 1,396 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Tianchi New Energy (Hefei) Co., Ltd | N/A | 1,100 | 18 December 2017 | 1,096 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Qinghao Solar Energy Technology (Jinhua) Co., Ltd | N/A | 890 | 18 December 2017 | 886 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Xiangqing Solar Energy Technology (Dongyang) Co., Ltd | N/A | 3,476 | 18 December 2017 | 3,331 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Qingyue Solar Energy Technology (Wuyi) Co., Ltd | N/A | 960 | 18 December 2017 | 920 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
BOE Technology Group Co., Ltd. Interim Report 2018
| Qingyou Solar Energy Technology (Longyou) Co., Ltd | N/A | 2,210 | 18 December 2017 | 2,206 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Qingfan Solar Energy Technology (Quzhou) Co., Ltd | N/A | 1,855 | 18 December 2017 | 1,777 | Joint liability guarantee | 18 December 2017 to 18 December 2029 | No | No |
| Anhui BOE Energy Investment Co., Ltd | N/A | 13,575 | 27 December 2017 | 13,515 | Joint liability guarantee | 27 December 2017 to 27 December 2029 | No | No |
| Taihang Electric Power Technology (Ningbo) Co., Ltd | N/A | 600 | 19 December 2017 | 563 | Joint liability guarantee | 19 December 2017 to 18 December 2025 | No | No |
| Guoji Energy (Ningbo) Co., Ltd | N/A | 2,740 | 19 December 2017 | 2,652 | Joint liability guarantee | 19 December 2017 to 18 December 2025 | No | No |
| Hexu Technology (Hefei) Co., Ltd | N/A | 538 | 18 May 2018 | 538 | Joint liability guarantee | 18 May 2018 to 10 May 2028 | No | No |
| Chenneng Technology (Hefei) Co., Ltd | N/A | 1,068 | 18 May 2018 | 1,068 | Joint liability guarantee | 18 May 2018 to 10 May 2028 | No | No |
| Hongyang Solar Energy Power Generation (Anji) Co., Ltd | N/A | 3,500 | 14 December 2017 | 3,500 | Joint liability guarantee | 14 December 2017 to 13 December 2025 | No | No |
| Ke’enSolar Energy Power Generation (Pingyang) Co., Ltd | N/A | 2,400 | 14 December 2017 | 2,323 | Joint liability guarantee | 14 December 2017 to 13 December 2025 | No | No |
| Dongze Photovoltaic Power Generation (Wenzhou) Co., Ltd | N/A | 2,100 | 14 December 2017 | 2,032 | Joint liability guarantee | 14 December 2017 to 13 December 2025 | No | No |
| Aifeisheng Investment and | N/A | 1,400 | 14 December 2017 | 1,355 | Joint liability guarantee | 14 December 2017 to 13 December | No | No |
BOE Technology Group Co., Ltd. Interim Report 2018
| Management (Wenzhou) Co, Ltd | 2025 | ||||||||
| Junlong New Energy Technology (Huaibin) Co., Ltd | N/A | 8,459 | 25 April 2018 | 8,451 | Joint liability guarantee | 25 April 2018 to 10 March 2030 | No | No | |
| Hengchuan New Energy Technology (Hong’an) Co., Ltd | N/A | 6,892 | 31 January 2018 | 6,851 | Joint liability guarantee | 31 January 2018 to 31 January 2030 | No | No | |
| Anhui BOE Energy Investment Co., Ltd | N/A | 2,060 | 25 April 2018 | 2,058 | Joint liability guarantee | 25 April 2018 to 10 March 2030 | No | No | |
| Hefei BOE Hospital Co., Ltd | 27 April 2018 | 130,000 | 27 April 2018 | 17,000 | Joint liability guarantee | 27 April 2018 to 26 April 2033 | No | No | |
| BOE Technology (HK) Limited | N/A | 107,886 | 31 October 2017 | 107,886 | Pledge | 12 December 2017 to 7 December 2020 | No | No | |
| Total guarantee line for subsidiaries approved during the Reporting Period (C1) | 130,000 | Total actual guarantee amount for subsidiaries during the Reporting Period (C2) | 114,253 | ||||||
| Total approved guarantee line for subsidiaries at the end of the Reporting Period (C3) | 240,020 | Total actual guarantee balance for subsidiaries at the end of the Reporting Period (C4) | 224,138 | ||||||
| Total guarantee amount (total of the above-mentioned three kinds of guarantees) | |||||||||
| Total guarantee line approved during the Reporting Period (A1+B1+C1) | 2,640,000 | Total actual guarantee amount during the Reporting Period (A2+B2+C2) | 526,515 | ||||||
| Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 13,858,182 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 7,773,617 | ||||||
| Proportion of the total actual guarantee amount (A4+B4+C4) in net assets of the Company | 90.96% | ||||||||
BOE Technology Group Co., Ltd. Interim Report 2018
| Of which: | ||
| Amount of guarantees provided for shareholders, the actual controller and their related parties (D) | 0 | |
| Amount of debt guarantees provided directly or indirectly for entities with a liability-to-asset ratio over 70% (E) | 190,269 | |
| Portion of the total guarantee amount in excess of 50% of net assets (F) | 3,500,452 | |
| Total amount of the three kinds of guarantees above (D+E+F) | 3,500,452 | |
| Joint responsibilities possibly borne or already borne in the Reporting Period for undue guarantees (if any) | N/A | |
| Provision of external guarantees in breach of the prescribed procedures (if any) | N/A | |
Notes for details about guarantee by complex method
(2) Illegal Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
BOE Technology Group Co., Ltd. Interim Report 2018
XV. Social Responsibilities
1. Significant Environment Protection
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental protection authorities of China
| Name of Company or subsidiary | Name of Main Pollutant and Distinctive Pollutant | Discharge Method | Quantity of Emission Outlet | Distribution Information of Emission Outlet | Emission Concentration | Executed Emission Standard of Pollutant | Total Weight of Emission (t) | Approved Total Weight of Emission (t) | Excessive Emission Condition |
| Beijing BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 2 | South gate of factory (sanitary wastewater) | 38mg/L | 500mg/L | 1.664t | 835.002t | None |
| COD | Northwest corner of factory (industrial waste water) | 66mg/L | 500mg/L | 147.37t | None | ||||
| Ammonia nitrogen | Standard emission after being treated by sewage treatment system | Northwest corner of factory (industrial waste water) | 30.62 mg/L | 45 mg/L | 29.53t | 97.4169t | None | ||
| Ammonia nitrogen | South gate of factory (sanitary wastewater) | 10.1 mg/L | 45 mg/L | 0.442t | |||||
| The 4.5th | COD | Standard | 1 | North side of | 144.09mg/L | 500mg/L | 71.20t | 490.51t | None |
BOE Technology Group Co., Ltd. Interim Report 2018
| generation TFT-LCD production line of Chengdu BOE Optoelectronics Technology Co., Ltd. | Ammonia nitrogen | emission after being treated by sewage treatment system | factory | 20.34mg/L | 45 mg/L | 10.26t | 25.249t | ||
| Hefei BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northwest corner of factory | 59.37mg/L | 380mg/L | 110.77t | 1059t | None |
| Ammonia nitrogen | 8.17mg/L | 30mg/L | 15.60t | 99.2t | None | ||||
| Beijing BOE Display Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | East gate of factory | 155.07mg/L | 500mg/L | 467.13t | 1618.8t | None |
| Ammonia nitrogen | 12.74mg/L | 45 mg/L | 34.16t | 134.4t | None | ||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast gate of factory | 80 mg/L | 380mg/L | 240.92t | 1621.97t | None |
| Ammonia nitrogen | 14.1 mg/L | 30mg/L | 43.22t | 128.08t | None | ||||
| Erdos Yuansheng Optoelectronics Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | North side of factory | 40.41 mg/L | 500mg/L | 62.8t | 713.81t | None |
| Ammonia nitrogen | 3.6 mg/L | 45mg/L | 5.6t | 76.82t | None | ||||
| The 6th generation flexible AMOLED production line of Chengdu BOE | COD | Standard emission after being treated by sewage treatment | 3 | North side of factory | 10.89 mg/L | 500mg/L | 16.28t | 2004.15t | None |
| COD | Southwest side of factory | 77.50 mg/L | 6.40t |
BOE Technology Group Co., Ltd. Interim Report 2018
| Optoelectronics Technology Co., Ltd. | COD | system Standard emission after being treated by sewage treatment system Standard emission after being treated by sewage treatment system | West side of factory | 70.67 mg/L | 2.32t | ||||
| Ammonia nitrogen | North side of factory | 1.10 mg/L | 45 mg/L | 1.64t | 216.81t | None | |||
| Ammonia nitrogen | Southwest side of factory | 10.35 mg/L | 0.85t | ||||||
| Ammonia nitrogen | West side of factory | 11.45 mg/L | 0.38t | ||||||
| Chongqing BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 emission Outlet for industrial waste water | South side of factory | 94.15 mg/L | 400mg/L | 259.773t | 2281.158t | None |
| Ammonia nitrogen | 3.92 mg/L | 30mg/L | 10.926t | 252.885t | None | ||||
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | COD | Standard emission after being treated by sewage treatment system | 1 | Northeast side of factory | 85.77 mg/L | 500mg/L | 240.67t | 510.35t | None |
| Ammonia nitrogen | 6.01 mg/L | 45mg/L | 16.86t | 68.05t | None |
BOE Technology Group Co., Ltd. Interim Report 2018
Construction of pollution prevention equipment and operation conditionDuring report period, the Company did not have important environmental problem. The Company built strict environmentalmanagement system, and established internal organizational structure to supervise overall environmental performance of theCompany, formulated environmental management regulations and targets, carried out regular supervision for the environmentalmanagement condition of subordinate enterprises to promote the implementation of environmental management work.Currently, the waste water which is generated by each subordinate enterprise of the Company can be divided in to industrial wastewater and household waste water. Rain water-waste water shunting system is adopted for drainage system to drain water separatelyaccording to different natures. After collecting, the rain water is discharged into rain water pipeline of factory; after the rain water iscollected by rain water pipe network, the rain water is discharged. After being treated by sewage treatment system in factory,industrial waste water is discharged into sewage treatment factory through municipal pipe network for intense treatment. Householdwaste water comprises household fecal waste water and canteen oily waste water etc, after pretreatment, the waste water isdischarged into municipal sewage treatment factory. All industrial and household waste water is not discharged directly, and the
concentration and total amount of drainage satisfy the requirements of national and local relevant standards.
In additional, the exhaust gas which is emitted by each subordinate enterprise mainly comes from technology exhaust gas duringproduction process, including general exhaust gas, acid exhaust gas, alkaline exhaust gas, special exhaust gas and organic exhaust gasetc. Various exhaust gas can be emitted after being treated by independent emission treatment system. The emission concentrationand total amount satisfy the national and local relevant standards.
“4R concept” for the use of materials has been used by the Company since 2007, that is recycle (Recycle), reduction (Reduce),
renewal (Renew) and responsibility (responsibly). The Company promises that the used materials are all in accordance withrequirements of national relevant environmental regulations and the registration, assessment, permission and restriction system ofchemicals. In additional, the Company promotes the recycle of package materials constantly. The waste materials which aregenerated by each subordinate enterprise can be divided into general industrial solid waste, hazardous waste materials and householdwaste materials, and they all handed over to qualified recycler for regular treatment.The Company focuses on the recycle of water resource and advanced cleaning methods such as adverse cleaning etc are adopted forprocessing equipment. Most high purity water and chemicals are recycled, reducing the consumption of high purity water, chemicaland other materials maximally and reducing the discharge of waste water and waste materials.At present, each subordinate enterprise formulates various management methods such as water pollution management, air pollutionmanagement standard, hazardous waste materials management standard, energy management standard etc. The methods specify theoperation and maintenance regulations and requirements of pollutant treatment system, establish regular monitoring and supervisingmechanism, in order to ensure the continuous stable operation of each system.In recent years, the environmental emission index of the Company is up to national standards such as Sewage ComprehensiveDischarge Standard (GB8979-1996), Air Pollutant Comprehensive Emission Standard (GB89879-1996), Industrial EnterpriseEnvironmental Noise Emission Standard within Factory Boundary (GB12348-2008) etc and local standards. The Company willcontinue to promote the environmental management, devote to forging green factory and improve environmental management levelconstantly.
Environmental Impact Assessment on Construction Project and Other Administrative Licenses for Environmental ProtectionAt present, corresponding environmental impact assessments have been conducted for all construction projects under the control ofthe company in conformity with applicable national and local laws and regulations, and corresponding administrative licenses havealso been obtained.
Contingency Plan for Emergent Environmental IncidentsThe company has formulated and filed corresponding contingency plan for emergent environmental incidents in the environmental
BOE Technology Group Co., Ltd. Interim Report 2018
protection agency according to relevant local requirements. However, such contingency plan consists of comprehensive plan, specialplan and on-site disposal plan, and involves various aspects such as waste water, exhaust gas, hazardous wastes and dangerouschemicals etc. Meanwhile, drills must be conducted regularly.
Self-monitoring PlanCurrently, major pollutant-discharging units subordinated to the company have worked out corresponding self-monitoring planaccording to relevant requirements put forward by the local environmental protection agency. The self-monitoring plans respectivelyformulated by BOE Technology Group Co., Ltd, Beijing BOE Display Technology Co., Ltd. and Beijing BOE Photoelectric
Technology Co., Ltd. have been published via the company’s official website.
Other environment information that should be disclosedOn 28 March 2018, Beijing Environmental Protection Bureau listed BOE Technology Group Co., Ltd. as an enterprise with pollutionsources controlled by the City. The main control objects of this Company under the control of Beijing Economic and TechnologicalDevelopment Zone are our experiment lines and core competence building. For experiment lines, there is no data on industrialwastewater discharge since industrial wastewater is discharged into the wastewater treatment station of Beijing BOE OptoelectronicsTechnology Co., Ltd. without being discharged outside; the domestic wastewater is monitored manually and daily without any targeton total amount of discharge. For the core competence building, only domestic wastewater is discharged without the requirement ontotal amount of discharge.
Other related environment protection informationNaught
2. Targeted Measures Taken to Help People Lift Themselves Out of Poverty
There is no precise poverty alleviation work in this period, nor any follow-up precise poverty alleviation plan.
XVI. Other Significant Events
√ Applicable □Not applicable
1. The Company issued Pre-disclosure Announcement on Stock Reduction of Shareholders with More than 5% Stocks(Announcement No.: 2017-061) and Pre-disclosure Announcement on Stock Reduction of Shareholders with More than 5% Stocks(Announcement No.: 2017-062) on 22 November 2017 and 25 November 2017 respectively; shareholders of the Company as HefeiJianxiang Investment Co., Ltd. and Chongqing Yufu Photovoltaic Industry Investment Co., Ltd. planned to reduce no more than 1.00%of general capital of the Company by means of centralized competitive bidding within 3 months after 15 working days since theissuance of each Announcement. Aforementioned stock reduction plans were completed by 15 January 2018 and 19 January 2018respectively.2. The Company issued the Announcement on Acquisition of SES-imagotag Stocks (Announcement No.: 2017-036) on 17 June 2017.The Company proposed to purchase more than 50.01% of SES stocks and realize consolidation of financial statements with SES by
virtue of BOE SPV, which is a joint venture invested and established by BOE’s wholly-owned subsidiary and investment platform
designated by SES management layer. By 16 March 2018, BOE SPV acquired 10,789,186 shares of SES stock in total by means of
block transactions and general offer, occupying 79.94% of SES’ outstanding capital stocks with total consideration of 323,675,580
Euros. For more information, please refer to the Announcement on Completing Acquisition of SES-imagotag Stocks (AnnouncementNo.: 2018-017) issued by the Company on 17 March 2018.
BOE Technology Group Co., Ltd. Interim Report 2018
3. The wholly-owned subsidiary, BOE Technology (Hong Kong) Co., Ltd., filed lawsuits to Beijing Municipal Higher People's Court
against following Defendants: Letv Mobile Intelligent Information Technology (Beijing) Co., Ltd. (referred to as “Letv Mobilehereinafter”) , TV Plus Holdings (Beijing) Limited, Leseil Mobile Technology (Beijing) Co., Ltd. and JiaYueting, with the total
amount of claims being about US$41.84 million. Beijing Municipal Higher People's Court issued Notice of Case Acceptance andCivil Ruling Paper for property preservation on 6 July 2017 and 31 July 2017 respectively. Letv Mobile raised the jurisdictionobjection to Beijing Municipal Higher People's Court, which was rejected, and also instituted an appeal to the Supreme People'sCourt for verdict on jurisdiction objection. At present, it has been waiting for final verdict of the Supreme People's Court. Forreceivables corresponding to aforementioned amount of claims, the Company has counted provision for bad debts as per regulationsin accounting standard accordingly; therefore, it has uncertain influences on the Company.4. The corporate bonds (Phase I) of BOE Technology Group Co., Ltd. issued to public qualified investors from 21 March 2016 to 22March 2016 reached one full year by 21 March 2017. According to regulations, the interest should be paid once per year during the
interest-bearing period. The Company issued Announcement on Payment “16BOE01” Interest 2017 (Announcement No.: 2018-016)
on 16 March 2018, in which the interest should be paid as per the standard of RMB31.5 (tax-inclusive) for every 10 bonds.5. The Company issued Announcement on 2017 Implementation of Annual Interest Distribution on 20 June 2018. The annual interestdistribution plan 2017 was reviewed and adopted in 2017 Annual General Meeting held on 28 May 2018. According to thedistribution plan, the Company shall allocated annual corporate benefits in 2017 by means of RMB0.5 for every 10 shares (where,the B-share benefit distribution shall be completed with Hong Kong dollar as per conversion rate from RMB to HKD published by
People’s Bank of China on the first working day after Shareholders Meeting of the Company) without distributing bonus share or
transferring shares in the name of public reserve funds.
| Overview of significant events | Disclosure date | index to disclosure website for interim report |
| Announcement on Investment and Construction of Project of the 6th generation AMOLED (flexible) production line in Chongqing and Connected Transactions | 9 March 2018 | www.cninfo.com.cn |
| Announcement on Investment and Construction of Project of Wuhan Gaoshidai Production Line of Thin Film Transistor LCD and its Auxiliary Products | 9 March 2018 | www.cninfo.com.cn |
| Announcement on Project of Investment into BOE (Suzhou) Industrial Park | 9 March 2018 | www.cninfo.com.cn |
XVII. Significant Events of Subsidiaries
□ Applicable √ Not applicable
BOE Technology Group Co., Ltd. Interim Report 2018
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: Share
| Item | Before | Increase/decrease (+/-) | After | ||||||
| Number | Percentage (%) | New issues | Bonus shares | Bonus issue from profit | Other | Subtotal | Number | Percentage (%) | |
| I. Restricted shares | 1,789,918 | 0.01% | 0 | 0 | 0 | 747,223 | 747,223 | 2,537,141 | 0.01% |
| 1. Shares held by the state | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2. Shares held by state-owned corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3. Shares held by other domestic investors | 1,789,918 | 0.01% | 0 | 0 | 0 | 747,223 | 747,223 | 2,537,141 | 0.01% |
| Among which: shares held by domestic corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by domestic individuals | 1,789,918 | 0.01% | 0 | 0 | 0 | 747,223 | 747,223 | 2,537,141 | 0.01% |
| 4. Shares held by foreign investors | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Among which: Shares held by foreign corporations | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Shares held by foreign individuals | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| II. Non-restricted shares | 34,796,608,845 | 99.99% | 0 | 0 | 0 | -747,223 | -747,223 | 34,795,861,622 | 99.99% |
BOE Technology Group Co., Ltd. Interim Report 2018
| 1. RMB ordinary shares | 33,860,495,357 | 97.30% | 0 | 0 | 0 | -747,223 | -747,223 | 33,859,748,134 | 97.30% |
| 2. Domestically listed foreign shares | 936,113,488 | 2.69% | 936,113,488 | 2.69% | |||||
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4. Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III. Total shares | 34,798,398,763 | 100.00% | 0 | 0 | 0 | 0 | 0 | 34,798,398,763 | 100.00% |
Reasons for the share changes
□ Applicable √ Not applicable
Approval of share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Effects of share changes on the basic EPS, diluted EPS, net assets per share attributable to ordinary shareholders of the Company and other financial indexes over the prior year and the priorperiod
□ Applicable √ Not applicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: Share
| Name of the shareholders | Restricted shares amount at the period-begin | Restricted shares relieved of the period | Restricted shares increased of the period | Restricted shares amount at the period-end | Restricted reasons | Restricted shares relieved date |
BOE Technology Group Co., Ltd. Interim Report 2018
| Capital increase by senior executives | 1,789,918 | 0 | 747,223 | 2,537,141 | Capital increase by senior executives | -- |
| Total | 1,789,918 | 0 | 747,223 | 2,537,141 | -- | -- |
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: Share
| Total number of ordinary shareholders at the period-end | 1,423,193 (including 1,383,999 A-shareholders and 39,194 B-shareholders) | ||||||||
| 5% or greater ordinary shareholders or the top 10 ordinary shareholders | |||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage (%) | Total shares held at the period-end | Increase/decrease during the Reporting Period | Number of restricted shares held | Number of non-restricted shares held | Pledged or frozen shares | ||
| Status | Number | ||||||||
| Beijing State-owned Capital Operation and Management Center | State-owned legal person | 11.68% | 4,063,333,333 | 0 | 0 | 4,063,333,333 | N/A | 0 | |
| Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. | State-owned legal person | 7.62% | 2,653,000,041 | -173,500,029 | 0 | 2,653,000,041 | N/A | 0 | |
| Hefei Jianxiang Investment Co., Ltd. | State-owned legal person | 7.21% | 2,510,142,953 | -173,500,000 | 0 | 2,510,142,953 | N/A | 0 | |
| Beijing Yizhuang | State-owned legal person | 3.57% | 1,241,423,641 | 0 | 0 | 1,241,423,641 | N/A | 0 | |
BOE Technology Group Co., Ltd. Interim Report 2018
| Investment Holdings Co., Ltd | ||||||||
| Beijing BOE Investment & Development Co., Ltd. | State-owned legal person | 2.36% | 822,092,180 | 0 | 0 | 822,092,180 | N/A | 0 |
| National Social Security Fund Portfolio 108 | Other | 1.24% | 429,993,527 | 254,993,381 | 0 | 429,993,527 | N/A | 0 |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 1.20% | 416,179,024 | -26,348,228 | 0 | 416,179,024 | N/A | 0 |
| National Social Security Fund Portfolio 101 | Other | 0.96% | 335,271,500 | 111,900,000 | 0 | 335,271,500 | N/A | 0 |
| Beijing Electronics Holdings Co., Ltd. | State-owned legal person | 0.79% | 273,735,583 | 0 | 0 | 273,735,583 | N/A | 0 |
| Central Huijin Assets Management Co., Ltd | State-owned legal person | 0.71% | 248,305,300 | 0 | 0 | 248,305,300 | N/A | 0 |
| Strategic investors or general corporations becoming top-ten shareholders due to placing of new shares (if any) | Naught | |||||||
| Connected or acting-in-concert parties among the shareholders above | 1. Beijing State-owned Capital Operation and Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder. 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital Photoelectricity Investment Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders. 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to | |||||||
BOE Technology Group Co., Ltd. Interim Report 2018
| Implementation Protocol of Voting Right. 5. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | |||
| Shareholdings of the top ten non-restricted ordinary shareholders | |||
| Name of shareholder | Number of non-restricted shares held at the period-end | Type of shares | |
| Type | Number | ||
| Beijing State-owned Capital Operation and Management Center | 4,063,333,333 | RMB ordinary share | 4,063,333,333 |
| Chongqing Ezcapital Opto-electronics Industry Investment Co., Ltd. | 2,653,000,041 | RMB ordinary share | 2,653,000,041 |
| Hefei Jianxiang Investment Co., Ltd. | 2,510,142,953 | RMB ordinary share | 2,510,142,953 |
| Beijing Yizhuang Investment Holdings Co., Ltd | 1,241,423,641 | RMB ordinary share | 1,241,423,641 |
| Beijing BOE Investment & Development Co., Ltd. | 822,092,180 | RMB ordinary share | 822,092,180 |
| National Social Security Fund Portfolio 108 | 429,993,527 | RMB ordinary share | 429,993,527 |
| Hong Kong Securities Clearing Company Ltd. | 416,179,024 | RMB ordinary share | 416,179,024 |
| National Social Security Fund Portfolio 101 | 335,271,500 | RMB ordinary share | 335,271,500 |
| Beijing Electronics Holdings Co., Ltd. | 273,735,583 | RMB ordinary share | 273,735,583 |
| Central Huijin Assets Management Co., Ltd | 248,305,300 | RMB ordinary share | 248,305,300 |
| Connected or acting-in-concert parties among the top ten non-restrictedly tradable share holders and between the top ten non-restrictedly tradable share holders and the top ten shareholders | 1. Beijing State-owned Capital Operation and Management Center held 100% equities of Beijing Electronics Holdings Co., Ltd. 2. Beijing Electronics Holdings Co., Ltd. held 66.25% equities of Beijing BOE Investment & Development Co., Ltd. and was its controlling shareholder. 3. After the non-public issuing of BOE in 2014, Hefei Jianxiang Investment Co., Ltd. and Chongqing Capital Photoelectricity Investment Co., Ltd., by entering into Implementation Protocol of Voting Right respectively, agreed to maintain all of the shares held by them respectively unanimous with Beijing BOE Investment & Development Co., Ltd. when executing the voting rights of the shareholders. 4. After the non-public issuing of the Company in 2014, Beijing State-owned Capital Operation and Management Center handed over 70% of the shares directly held by it to Beijing Electronics Holdings Co., Ltd. for management through Stock Management Protocol, and | ||
BOE Technology Group Co., Ltd. Interim Report 2018
| Beijing Electronics Holdings Co., Ltd. gained the incidental shareholders’ rights except for disposing right and usufruct of the shares, of which the rest 30% voting right maintained unanimous with Beijing Electronics Holdings Co., Ltd. through the agreement according to Implementation Protocol of Voting Right. 5. Except for the above relationships, the Company does not know any other connected party or acting-in-concert party among the top 10 shareholders. | |
| Top ten ordinary shareholders conducting securities margin trading (if any) | Naught |
Indicate by tick mark whether any of the top ten ordinary shareholders or the top ten non-restricted ordinary shareholders of the Company conducted any promissory repo during the ReportingPeriod.
□ Yea √ No
No such cases in the Reporting Period.
IV. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
There was no any change of the controlling shareholder of the Company in the Reporting Period.Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the Reporting Period.
BOE Technology Group Co., Ltd. Interim Report 2018
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
BOE Technology Group Co., Ltd. Interim Report 2018
Part VIII Directors, Supervisors and Senior Management
I Changes in Shareholdings of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
| Name | Office title | Incumbent/former | Beginning shareholding (share) | Increase in the Reporting Period (share) | Decrease in the Reporting Period (share) | Ending shareholding (share) | Number of the restricted shares granted at the period-begin (share) | Number of the restricted shares granted during the Reporting Period (share) | Number of the restricted shares granted at the period-end (share) |
| Wang Dongsheng | Chairman of the Board | Current | 299,905 | 0 | 0 | 299,905 | 0 | 0 | 0 |
| Xie Xiaoming | Vice Chairman of the Board | Current | 7,680 | 0 | 0 | 7,680 | 0 | 0 | 0 |
| Chen Yanshun | Vice Chairman of the Board, Chief of Executive Committee, Chief Executive Officer | Current | 260,000 | 340,000 | 0 | 600,000 | 0 | 0 | 0 |
| Wang Chenyang | Director | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Liu Xiaodong | Director, Vice Chief of Executive Committee, | Current | 250,000 | 0 | 0 | 250,000 | 0 | 0 | 0 |
BOE Technology Group Co., Ltd. Interim Report 2018
| President and COO | |||||||||
| Song Jie | Director | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sun Yun | Director, Executive Vice President, CFO | Current | 155,981 | 68,000 | 0 | 223,981 | 0 | 0 | 0 |
| Li Yantao | Director | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Lv Tingjie | Independent Director | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Wang Huacheng | Independent Director | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Hu Xiaolin | Independent Director | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Li Xuan | Independent Director | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Yang Xiangdong | Chairman of Supervisory Committee | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Xu Tao | Supervisor | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Chen Zhaozhen | Supervisor | Current | 900 | 0 | 900 | 0 | 0 | 0 | |
| Zhao Wei | Supervisor | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Shi Hong | Supervisor | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Zhuang Haoyu | Supervisor | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Miao Chuanbin | Employee Supervisor | Current | 0 | 1,800 | 0 | 1,800 | 0 | 0 | 0 |
| Xu Yangping | Employee | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Supervisor | |||||||||
| He Daopin | Employee Supervisor | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dong Youmei | Executive Vice President | Current | 200,000 | 26,400 | 0 | 226,400 | 0 | 0 | 0 |
| Yao Xiangjun | Executive Vice President, Co-COO | Current | 100,000 | 0 | 0 | 100,000 | 0 | 0 | 0 |
| Zhang Zhaohong | Executive Vice President, Co-COO | Current | 150,000 | 178,700 | 0 | 328,700 | 0 | 0 | 0 |
| Zhong Huifeng | Executive Vice President, Co-CHO | Current | 150,000 | 0 | 0 | 150,000 | 0 | 0 | 0 |
| Feng Liqiong | Executive Vice President, CLO | Current | 150,000 | 50,000 | 0 | 200,000 | 0 | 0 | 0 |
| Yue Zhanqiu | Senior Vice President, Chief Information Officer | Current | 150,000 | 70,000 | 0 | 220,000 | 0 | 0 | 0 |
| Xie Zhongdong | Senior Vice President, CRO and Auditor General | Current | 110,000 | 90,000 | 0 | 200,000 | 0 | 0 | 0 |
| Feng Qiang | Senior Vice President | Current | 100,000 | 20,000 | 0 | 120,000 | 0 | 0 | 0 |
| Yang Anle | Senior Vice | Current | 100,000 | 50,000 | 0 | 150,000 | 0 | 0 | 0 |
BOE Technology Group Co., Ltd. Interim Report 2018
| President, Chief Investment Officer | |||||||||
| Tong Guanshan | Senior Vice President | Current | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Jing Linfeng | Senior Vice President | Current | 100,000 | 45,000 | 0 | 145,000 | 0 | 0 | 0 |
| Liu Hongfeng | Vice President, Secretary of the Board | Current | 100,000 | 54,500 | 0 | 154,500 | 0 | 0 | 0 |
| Wang Jing | Director | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Zhang Jinsong | Director | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Chen Ming | Chairman of Supervisory Committee | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Mu Chengyuan | Supervisor, Secretary of Supervisory Committee | Former | 2,991 | 0 | 0 | 2,991 | 0 | 0 | 0 |
| Total | -- | -- | 2,386,557 | 995,300 | 0 | 3,381,857 | 0 | 0 | 0 |
BOE Technology Group Co., Ltd. Interim Report 2018
II Changes in Directors, Supervisors and Executive Officers
√ Applicable □ Not applicable
| Name | Office title | Type of change | Date | Reason |
| Chen Ming | Chairman of Supervisory Committee | Left | 1 March 2018 | Voluntary turnover |
| Zhang Jinsong | Director | Left | 30 March 2018 | Voluntary turnover |
| Mu Chengyuan | Supervisor | Left | 30 March 2018 | Voluntary turnover |
| Yang Xiangdong | Chairman of Supervisory Committee | Elected | 30 March 2018 | Elected |
| Wang jing | Director | Left | 11 May 2018 | Voluntary turnover |
| Li Yantao | Director | Elected | 28 May 2018 | Elected |
| Chen Zhaozhen | Supervisor | Elected | 28 May 2018 | Elected |
| Wang Chenyang | Director | Elected | 28 May 2018 | Elected |
BOE Technology Group Co., Ltd. Interim Report 2018
Part IX Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of thisReport or were due but could not be redeemed in full?Yes
I. Bond Profile
| Bond name | Abbr. | Bond code | Release date | Due date | Balance (RMB’0,000) | Coupon rate | Way of redemption |
| The 2016 public offering of corporate bonds by BOE Technology Group Co., Ltd. for qualified investors (Phase I) | 16BOE01 | 112358 | 21 March 2016 | 31 March 2021 | 1,000,000 | 3.15% | Paid for the interests by year and the principals once when expired. |
| Listed or transferred trading place of the Company bonds | List on the SZSE. | ||||||
| Appropriate arrangement of the investors | the qualified investors | ||||||
| List of the interests payment of the Company bonds during the Reporting Period | On 21 March 2018, the Company completed the 2017 annual interest payout for the qualified investors of its 2016 corporate bonds. | ||||||
| Execution of the relevant regulations during the Reporting Period such as the affiliated option clause of the issuers or investors, special clauses such as the exchangeable regulations of the Company bonds (if applicable) | There was affiliated issuers’ up-regulation nominal interest rate option and the investors’ sell-back option at the year-end of the third year of the current bond duration; and up to the approval quotation date of the Interim Report, the bonds were not yet needed to be executed. | ||||||
II. List of the Bond Trustee and the Rating Organization
BOE Technology Group Co., Ltd. Interim Report 2018
| Name | China Securities Co., Ltd. | Office address | Rm. 2203, North Tower, Shanghai Securities Plaza, 528 Pudong Road South, Shanghai | Contact | Zhu Mingqiang, Han Yong, Sheng Cheng | Contact number | 021-68801565 | |
| Rating organization executed the tracking rating of the Company bonds of the Reporting Period: | ||||||||
| Name | United Ratings Co., Ltd. | Office address | 12/F, PICC Building, No.2 Jianwai Street, Chaoyang District, Beijing | |||||
| Alternation reasons, execution process and influences on the investors’ interests etc. if there was alternation of the bond trustees and the credit rating agencies engaged by the Company during the Reporting Period (if applicable) | Naught | |||||||
III. List of the Usage of the Raised Funds of the Company Bonds
| List of the usage of the raised funds and the execution process of the Company bonds | The Company executed the internal decision-making process strictly according to the applications committed by the prospectus as well as the review regulations of the Board of Directors and Annual General Meeting of the Company. |
| Ending balance (RMB’0,000) | 2.58 |
| Operating situation of the raised funds special account | The Company signed the Agreement on the 2016 Public Offering of the Corporation Bonds Account for the Qualified Investors and the Funds Tripartite Authorities of BOE Technology Group Co., Ltd. with the Beijing Olympic Branch of Ping An Bank Co, Beijing Hepingli Branch of China CITIC Bank Corporation Limited and Beijing Branch of China Merchants Bank Co., Ltd., which set up the raise funds account that ensure the exclusive use of the special fund of the raise funds. |
| Whether the usage of the raised funds met with the usage, using plan and other agreements committed on the prospectus | Yes |
IV. Rating Situation of the Company Bonds Information
On 23 June 2017, United Ratings issued the Tracking Rating Report of the 2017 Corporate Bonds Credit Rating of BOE Technology
Group Co., Ltd., with the issuers’ main body credit rating of AAA and AAA of the credit rating of the current corporate bonds. On
24 June 2017, the tracking rating report was disclosed on www.cninfo.com.cn and www.unitedratings.com.cn.On 20 June 2018, United Ratings issued the Tracking Rating Report of the 2018 Corporate Bonds Credit Rating of BOE Technology
Group Co., Ltd., with the issuers’ main body credit rating of AAA and AAA of the credit rating of the current corporate bonds. On
22 June 2018, the tracking rating report was disclosed on www.cninfo.com.cn and www.unitedratings.com.cn.
BOE Technology Group Co., Ltd. Interim Report 2018
V. Credit-adding Mechanism, Repayment Plan and Other Repayment Guarantee Measures ofthe Company Bonds
There was no guarantee of the corporate bonds of the Reporting Period.The profits of the main business of the issuers ware the main resources of the debt service fund of the bonds of the Reporting Period.The debt repayment plan was as follows: during the duration period of the bonds of the Reporting Period, every March 21
st
of eachyear from Y2017 to Y2021 is the interest date of the last interest accrual year (if met with the legal holidays or rest days, shouldpostpone which to the subsequent 1
st
working day); if the investors executed the put-back right, the interest date of the part of theput-back bonds is every March 21
st
of each year from Y2017 to Y2019 is the interest date of the last interest accrual year (if met withthe legal holidays or rest days, should postpone which to the subsequent 1
st
working day). The principal of the current bonds shouldbe paid at one time when expired. The payment date of the current bonds would be 21 March 2021 (if met with the legal holidays orrest days, should postpone which to the subsequent 1
st
working day); if the investors executed the put-back right, the payment date ofthe part of the put-back bonds would be 21 March 2019 (if met with the legal holidays or rest days, should postpone which to thesubsequent 1
st
working day).The repayment guarantee measures of the corporate bonds of the Reporting Period: to formulate the Meeting Regulations of theBondholders and the repayment guarantee measures; to formulate and strictly carry out the funds management plans; to fully exertthe functions of the bond trustees; to strictly disclose the information; at the same time, when expected to fail to repay the principalsand interest of the bonds on time or failed to repay the principals and interest of the bonds when expired, the Company will at leastadopt the measures of the execution of the capital expenditures projects such as to postpone the significant external investment andthe purchase as well as merger and so on that guarantee the repayment of the debts.During the Reporting Period, there was no alternation of the credit-adding mechanism, debt repayment plan and other repaymentguarantee measures of the corporate bonds.
VI. Convene Situation of the Bonds Holders Meeting during the Reporting Period
No such cases during the Reporting Period.
VII. List of the Duty Execution of the Bonds Trustee during the Reporting Period
As the bond trustee of the Reporting Period, China Securities Co., Ltd. constantly paid attention on the operating, finance and creditsituation of the Company strictly according to the relevant laws and regulations such as the Regulations of the Offering and Tradingof the Corporate Bonds, Professional Code of Conduct of the Bond Trustee of the Corporate Bonds and vigorously executed theresponsibilities as a trustee as well as maintained the legal interests of the bondholders; there was no any situation conflicted to the
Company’s interests when executing the relevant responsibilities of the trustee.
VIII. The Major Accounting Data and the Financial Indicators of the Company up thePeriod-end and the End of Last Year (or the Reporting Period and Same Period of Last Year)
Unit: RMB'0,000
| Item | Period-end | End of last year | Increase/decrease |
| Current ratio | 2.04 | 2.01 | 0.03 |
| Gearing ratio | 59.31% | 59.28% | 0.03% |
| Quick ratio | 1.81 | 1.83 | -0.02 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Item | Reporting Period | Same period of last year | Increase/decrease |
| EBITDA-to-interest coverage (times) | 5.66 | 8.43 | -32.86% |
| Loan repayment ratio | 100.00% | 100.00% | 0.00% |
| Interest coverage ratio | 100.00% | 100.00% | 0.00% |
Main reason of the above accounting data and the financial indicators with the YoY change exceeded 30%
√ Applicable □ Not applicable
EBITDA has a YOY decrease of 2.77due to the largely decreasing total profit in the first half year from the year earlier.
IX. Overdue Unpaid Debts of the Company
□ Applicable √ Not applicable
No such cases during the Reporting Period.
X. List of the Interest Payment of Other Bonds and Bonds Financing Instruments during theReporting Period
No such situation of the Company during the Reporting Period.
XI. List of the Acquired Bank Credit Lines, Usage and the Repayment of the Bank Loans
The operation and reputation of the Company was favorable and the profitability as well as the debt payment ability of the Companywas strong as well as the Company maintained the long-term cooperative partnerships with main cooperative banks. Up to 30 June2018, the total amount of the credit line of the major cooperative banks with the Company was of RMB47.6 billion with the usedcredit line of RMB18.4 billion and the unused amount of which was of RMB29.2 billion. The principal and interest of bank loanshave been paid back on time. No default in bank loans during the Reporting Period.
XII. List of the Execution of the Agreements or the Commitments Related to the CompanyBonds Raising Specification during the Reporting Period
During the Reporting Period., the Company strictly carried out each agreement and commitment of the current bond prospectus, andthere was no any situation of the inefficient execution of the relevant agreements or commitments according to the bond prospectusby the Company that caused the negative influences on the bonds investors.
XIII. Significant Events Occurred during the Reporting Period
There were no occurred significant events listed in Article 45 of Corporate Bonds Issuance and Trading Management Methods duringthe Reporting Period.
XIV. Whether there was guarantor of the Company bonds
□ Yes √ No
BOE Technology Group Co., Ltd. Interim Report 2018
Part X Financial Report
I. Auditor’s Report
Whether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.
II. Financial Statements
The unit of the financial statements attached: RMB
1. Consolidated Balance Sheet
Prepared by BOE Technology Group Co., Ltd.
30 June 2018
Unit: RMB
| Item | 30 June 2018 | 31 December 2017 |
| Current assets: | ||
| Monetary assets | 50,581,910,423.00 | 57,128,659,576.00 |
| Settlement reserve | 0.00 | 0.00 |
| Interbank loans granted | 0.00 | 0.00 |
| Financial assets at fair value through profit or loss | 0.00 | 0.00 |
| Derivative financial assets | 0.00 | 0.00 |
| Notes receivable | 540,151,648.00 | 833,268,127.00 |
| Accounts receivable | 17,356,033,029.00 | 15,513,763,252.00 |
| Prepayments | 755,433,430.00 | 587,126,751.00 |
| Premiums receivable | 0.00 | 0.00 |
| Reinsurance receivables | 0.00 | 0.00 |
| Receivable reinsurance contract reserve | 0.00 | 0.00 |
| Interest receivable | 127,018,762.00 | 89,628,559.00 |
| Dividends receivable | 5,950,240.00 | 0.00 |
| Other receivables | 608,318,659.00 | 728,395,573.00 |
| Financial assets purchased under resale agreements | 0.00 | 0.00 |
| Inventories | 10,933,542,222.00 | 8,957,719,381.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Assets classified as held for sale | 0.00 | 0.00 |
| Current portion of non-current assets | 0.00 | 17,303,152.00 |
| Other current assets | 18,930,028,377.00 | 15,924,433,978.00 |
| Total current assets | 99,838,386,790.00 | 99,780,298,349.00 |
| Non-current assets: | ||
| Loans and advances to customers | 0.00 | 0.00 |
| Available-for-sale financial assets | 777,023,613.00 | 859,899,356.00 |
| Held-to-maturity investments | 0.00 | 0.00 |
| Long-term receivables | 0.00 | 0.00 |
| Long-term equity investments | 3,443,815,633.00 | 6,928,854,415.00 |
| Investment property | 1,278,070,770.00 | 1,296,662,205.00 |
| Fixed assets | 84,979,890,697.00 | 88,625,296,761.00 |
| Construction in progress | 73,903,155,311.00 | 50,761,250,426.00 |
| Engineering materials | 0.00 | 0.00 |
| Proceeds from disposal of fixed assets | 0.00 | 0.00 |
| Productive living assets | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 |
| Intangible assets | 5,490,324,217.00 | 2,982,664,308.00 |
| R&D expense | 0.00 | 0.00 |
| Goodwill | 841,479,045.00 | 197,963,688.00 |
| Long-term prepaid expense | 383,215,107.00 | 379,829,430.00 |
| Deferred income tax assets | 176,341,669.00 | 106,255,657.00 |
| Other non-current assets | 5,120,544,726.00 | 4,189,767,254.00 |
| Total non-current assets | 176,393,860,788.00 | 156,328,443,500.00 |
| Total assets | 276,232,247,578.00 | 256,108,741,849.00 |
| Current liabilities: | ||
| Short-term borrowings | 2,213,431,454.00 | 3,249,736,430.00 |
| Borrowings from central bank | 0.00 | 0.00 |
| Customer deposits and deposits from banks and other financial institutions | 0.00 | 0.00 |
| Interbank loans obtained | 0.00 | 0.00 |
| Financial liabilities at fair value through profit or loss | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 |
| Notes payable | 838,808,117.00 | 543,798,835.00 |
| Accounts payable | 19,003,618,742.00 | 16,205,788,698.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Advances from customers | 991,348,534.00 | 781,324,522.00 |
| Financial assets sold under repurchase agreements | 0.00 | 0.00 |
| Handling charges and commissions payable | 0.00 | 0.00 |
| Payroll payable | 1,220,668,515.00 | 2,217,066,944.00 |
| Taxes payable | 538,406,225.00 | 775,621,146.00 |
| Interest payable | 822,004,488.00 | 847,955,186.00 |
| Dividends payable | 12,477,033.00 | 9,651,170.00 |
| Other payables | 15,925,444,403.00 | 15,264,806,774.00 |
| Reinsurance payables | 0.00 | 0.00 |
| Insurance contract reserve | 0.00 | 0.00 |
| Payables for acting trading of securities | 0.00 | 0.00 |
| Payables for underwriting of securities | 0.00 | 0.00 |
| Liabilities directly associated with assets classified as held for sale | 0.00 | 0.00 |
| Current portion of non-current liabilities | 6,402,772,896.00 | 9,109,708,511.00 |
| Other current liabilities | 1,029,526,302.00 | 730,709,590.00 |
| Total current liabilities | 48,998,506,709.00 | 49,736,167,806.00 |
| Non-current liabilities: | ||
| Long-term borrowings | 83,261,644,214.00 | 78,973,633,010.00 |
| Bonds payable | 9,971,424,165.00 | 9,966,467,496.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Long-term payables | 1,427,376,178.00 | 1,176,250,982.00 |
| Long-term payroll payable | 0.00 | 0.00 |
| Specific payables | 0.00 | 0.00 |
| Provisions | 16,457,010.00 | 16,457,010.00 |
| Deferred income | 8,177,403,504.00 | 2,261,955,307.00 |
| Deferred income tax liabilities | 1,287,125,895.00 | 563,302,910.00 |
| Other non-current liabilities | 10,698,441,824.00 | 9,130,244,495.00 |
| Total non-current liabilities | 114,839,872,790.00 | 102,088,311,210.00 |
| Total liabilities | 163,838,379,499.00 | 151,824,479,016.00 |
| Owners’ equity: | ||
| Share capital | 34,798,398,763.00 | 34,798,398,763.00 |
| Other equity instruments | 0.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Perpetual bonds | 0.00 | 0.00 |
| Capital reserves | 38,244,761,356.00 | 38,585,515,122.00 |
| Less: Treasury shares | 0.00 | 0.00 |
| Other comprehensive income | -87,683,584.00 | 150,602,933.00 |
| Specific reserve | 0.00 | 0.00 |
| Surplus reserves | 889,640,475.00 | 889,640,475.00 |
| General reserve | 0.00 | 0.00 |
| Retained profits | 11,620,075,705.00 | 10,385,659,084.00 |
| Total equity attributable to owners of the Company as the parent | 85,465,192,715.00 | 84,809,816,377.00 |
| Non-controlling interests | 26,928,675,364.00 | 19,474,446,456.00 |
| Total owners’ equity | 112,393,868,079.00 | 104,284,262,833.00 |
| Total liabilities and owners’ equity | 276,232,247,578.00 | 256,108,741,849.00 |
Legal representative: Wang Dongsheng Chief Financial Officer: Sun Yun Financial Officer: Yang Xiaoping
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 30 June 2018 | 31 December 2017 |
| Current assets: | ||
| Monetary assets | 3,862,839,767.00 | 2,990,801,501.00 |
| Financial assets at fair value through profit or loss | 0.00 | 0.00 |
| Derivative financial assets | 0.00 | 0.00 |
| Notes receivable | 800,000.00 | 0.00 |
| Accounts receivable | 41,070,568.00 | 39,897,385.00 |
| Prepayments | 24,558,561.00 | 10,315,083.00 |
| Interest receivable | 6,002,673.00 | 0.00 |
| Dividends receivable | 312,475,740.00 | 10,404,147.00 |
| Other receivables | 1,565,138,570.00 | 1,824,727,573.00 |
| Inventories | 11,756,668.00 | 12,751,847.00 |
| Assets classified as held for sale | 0.00 | 0.00 |
| Current portion of non-current assets | 587,000,000.00 | 3,648,840,000.00 |
| Other current assets | 45,861,505.00 | 61,082,075.00 |
| Total current assets | 6,457,504,052.00 | 8,598,819,611.00 |
| Non-current assets: |
BOE Technology Group Co., Ltd. Interim Report 2018
| Available-for-sale financial assets | 108,249,106.00 | 149,269,107.00 |
| Held-to-maturity investments | 0.00 | 0.00 |
| Long-term receivables | 0.00 | 0.00 |
| Long-term equity investments | 131,040,361,626.00 | 121,193,680,391.00 |
| Investment property | 291,882,469.00 | 292,544,063.00 |
| Fixed assets | 980,480,600.00 | 982,985,346.00 |
| Construction in progress | 243,332,835.00 | 274,400,649.00 |
| Engineering materials | 0.00 | 0.00 |
| Proceeds from disposal of fixed assets | 0.00 | 0.00 |
| Productive living assets | 0.00 | 0.00 |
| Oil and gas assets | 0.00 | 0.00 |
| Intangible assets | 512,709,485.00 | 530,490,988.00 |
| R&D expense | 0.00 | 0.00 |
| Goodwill | 0.00 | 0.00 |
| Long-term prepaid expense | 116,659,975.00 | 112,776,691.00 |
| Deferred income tax assets | 118,288,416.00 | 150,206,185.00 |
| Other non-current assets | 401,161,107.00 | 480,909,226.00 |
| Total non-current assets | 133,813,125,619.00 | 124,167,262,646.00 |
| Total assets | 140,270,629,671.00 | 132,766,082,257.00 |
| Current liabilities: | ||
| Short-term borrowings | 0.00 | 0.00 |
| Financial liabilities at fair value through profit or loss | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 |
| Notes payable | 0.00 | 0.00 |
| Accounts payable | 24,239,349.00 | 50,152,503.00 |
| Advances from customers | 2,004,607,023.00 | 1,375,022,585.00 |
| Payroll payable | 126,202,194.00 | 283,000,193.00 |
| Taxes payable | 57,108,752.00 | 119,584,927.00 |
| Interest payable | 120,871,893.00 | 312,029,252.00 |
| Dividends payable | 6,451,170.00 | 6,451,170.00 |
| Other payables | 13,852,647,546.00 | 9,713,912,548.00 |
| Liabilities directly associated with assets classified as held for sale | 0.00 | 0.00 |
| Current portion of non-current liabilities | 3,040,000,000.00 | 4,031,840,000.00 |
| Other current liabilities | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Total current liabilities | 19,232,127,927.00 | 15,891,993,178.00 |
| Non-current liabilities: | ||
| Long-term borrowings | 20,020,000,000.00 | 23,943,000,000.00 |
| Bonds payable | 9,971,424,165.00 | 9,966,467,496.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Long-term payables | 0.00 | 0.00 |
| Long-term payroll payable | 0.00 | 0.00 |
| Specific payables | 0.00 | 0.00 |
| Provisions | 0.00 | 0.00 |
| Deferred income | 5,970,717,701.00 | 130,652,127.00 |
| Deferred income tax liabilities | 0.00 | 0.00 |
| Other non-current liabilities | 9,500,000,000.00 | 7,600,000,000.00 |
| Total non-current liabilities | 45,462,141,866.00 | 41,640,119,623.00 |
| Total liabilities | 64,694,269,793.00 | 57,532,112,801.00 |
| Owners’ equity: | ||
| Share capital | 34,798,398,763.00 | 34,798,398,763.00 |
| Other equity instruments | 0.00 | 0.00 |
| Including: Preferred shares | 0.00 | 0.00 |
| Perpetual bonds | 0.00 | 0.00 |
| Capital reserves | 37,590,966,191.00 | 37,588,541,593.00 |
| Less: Treasury shares | 0.00 | 0.00 |
| Other comprehensive income | 157,230,488.00 | 192,097,489.00 |
| Specific reserve | 0.00 | 0.00 |
| Surplus reserves | 889,640,475.00 | 889,640,475.00 |
| Retained profits | 2,140,123,961.00 | 1,765,291,136.00 |
| Total owners’ equity | 75,576,359,878.00 | 75,233,969,456.00 |
| Total liabilities and owners’ equity | 140,270,629,671.00 | 132,766,082,257.00 |
3. Consolidated Income Statement
Unit: RMB
| Item | H1 2018 | H1 2017 |
| 1. Revenue | 43,473,904,966.00 | 44,605,027,995.00 |
| Including: Operating revenue | 43,473,904,966.00 | 44,605,027,995.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Interest income | 0.00 | 0.00 |
| Premium income | 0.00 | 0.00 |
| Handling charge and commission income | 0.00 | 0.00 |
| 2. Operating costs and expenses | 42,145,156,667.00 | 39,394,749,331.00 |
| Including: Cost of sales | 35,144,582,131.00 | 32,235,266,589.00 |
| Interest expense | 0.00 | 0.00 |
| Handling charge and commission expense | 0.00 | 0.00 |
| Surrenders | 0.00 | 0.00 |
| Net claims paid | 0.00 | 0.00 |
| Net amount provided as insurance contract reserve | 0.00 | 0.00 |
| Expenditure on policy dividends | 0.00 | 0.00 |
| Reinsurance premium expense | 0.00 | 0.00 |
| Taxes and surtaxes | 302,565,754.00 | 355,700,992.00 |
| Selling expense | 1,294,782,594.00 | 1,228,560,863.00 |
| Administrative expense | 3,743,903,273.00 | 3,052,661,575.00 |
| Finance costs | 1,201,173,655.00 | 1,099,113,182.00 |
| Asset impairment loss | 458,149,260.00 | 1,423,446,130.00 |
| Add: Gain on changes in fair value (“-” for loss) | 0.00 | 0.00 |
| Investment income (“-” for loss) | 166,924,013.00 | 19,162,151.00 |
| Including: Share of profit or loss of joint ventures and associates | -29,578,579.00 | -13,690,554.00 |
| Foreign exchange gain (“-” for loss) | 0.00 | 0.00 |
| Asset disposal income (“-” for loss) | -158,511.00 | -3,120,539.00 |
| Other income | 1,904,160,159.00 | 275,302,864.00 |
| 3. Operating profit (“-” for loss) | 3,399,673,960.00 | 5,501,623,140.00 |
| Add: Non-operating income | 96,641,868.00 | 53,530,983.00 |
| Less: Non-operating expense | 7,653,811.00 | 20,330,503.00 |
| 4. Profit before taxation (“-” for loss) | 3,488,662,017.00 | 5,534,823,620.00 |
| Less: Income tax expense | 659,568,560.00 | 940,261,615.00 |
| 5. Net profit (“-” for net loss) | 2,829,093,457.00 | 4,594,562,005.00 |
| 5.1 Net profit from continuing operations (“-” for net loss) | 2,829,093,457.00 | 4,594,562,005.00 |
| 5.2 Net profit from discontinued operations (“-” for net loss) | 0.00 | 0.00 |
| Net profit attributable to owners of the Company as the | 2,975,206,500.00 | 4,302,605,600.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| parent | ||
| Net profit attributable to non-controlling interests | -146,113,043.00 | 291,956,405.00 |
| 6. Other comprehensive income, net of tax | -223,269,396.00 | -14,001,966.00 |
| Attributable to owners of the Company as the parent | -238,286,517.00 | 9,368,196.00 |
| 6.1 Items that will not be reclassified to profit or loss | 0.00 | 0.00 |
| 6.1.1 Changes in net liabilities or assets caused by remeasurements on defined benefit pension schemes | 0.00 | 0.00 |
| 6.1.2 Share of other comprehensive income of investees that will not be reclassified to profit or loss under equity method | 0.00 | 0.00 |
| 6.2 Items that may subsequently be reclassified to profit or loss | -238,286,517.00 | 9,368,196.00 |
| 6.2.1 Share of other comprehensive income of investees that will be reclassified to profit or loss under equity method | 0.00 | 0.00 |
| 6.2.2 Gain/Loss on changes in fair value of available-for-sale financial assets | -91,055,052.00 | -2,155,092.00 |
| 6.2.3 Gain/Loss arising from reclassification of held-to-maturity investments to available-for-sale financial assets | 0.00 | 0.00 |
| 6.2.4 Effective gain/loss on cash flow hedges | 0.00 | 0.00 |
| 6.2.5 Differences arising from translation of foreign currency-denominated financial statements | -147,231,465.00 | 11,523,288.00 |
| 6.2.6 Other | 0.00 | 0.00 |
| Attributable to non-controlling interests | 15,017,121.00 | -23,370,162.00 |
| 7. Total comprehensive income | 2,605,824,061.00 | 4,580,560,039.00 |
| Attributable to owners of the Company as the parent | 2,736,919,983.00 | 4,311,973,796.00 |
| Attributable to non-controlling interests | -131,095,922.00 | 268,586,243.00 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.085 | 0.123 |
| 8.2 Diluted earnings per share | 0.085 | 0.123 |
Where business mergers under the same control occurred in the Reporting Period, the net profit achieved by the merged partiesbefore the business mergers was RMB0.00, with the corresponding amount for the last period being RMB 0.00.
Legal representative: Wang Dongsheng Chief Financial Officer: Sun Yun Financial Officer: Yang Xiaoping
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | H1 2018 | H1 2017 |
BOE Technology Group Co., Ltd. Interim Report 2018
| 1. Operating revenue | 2,146,860,956.00 | 705,463,015.00 |
| Less: Cost of sales | 12,786,733.00 | 5,670,598.00 |
| Taxes and surtaxes | 24,031,851.00 | 18,569,385.00 |
| Selling expense | 433,606.00 | 1,021,144.00 |
| Administrative expense | 820,273,111.00 | 684,340,188.00 |
| Finance costs | 378,937,888.00 | 205,355,880.00 |
| Asset impairment loss | 0.00 | 0.00 |
| Add: Gain on changes in fair value (“-” for loss) | 0.00 | 0.00 |
| Investment income (“-” for loss) | 884,469,030.00 | 594,517,970.00 |
| Including: Share of profit or loss of joint ventures and associates | -17,602,562.00 | -13,690,554.00 |
| Asset disposal income (“-” for loss) | 0.00 | -182,599.00 |
| Other income | 532,427,665.00 | 9,628,783.00 |
| 2. Operating profit (“-” for loss) | 2,327,294,462.00 | 394,469,974.00 |
| Add: Non-operating income | 3,317,848.00 | 2,306,707.00 |
| Less: Non-operating expense | 576,343.00 | 679,940.00 |
| 3. Profit before taxation (“-” for loss) | 2,330,035,967.00 | 396,096,741.00 |
| Less: Income tax expense | 214,413,263.00 | 7,327,135.00 |
| 4. Net profit (“-” for net loss) | 2,115,622,704.00 | 388,769,606.00 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 2,115,622,704.00 | 388,769,606.00 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | 0.00 | 0.00 |
| 5. Other comprehensive income, net of tax | -34,867,001.00 | 6,030,946.00 |
| 5.1 Items that will not be reclassified to profit or loss | 0.00 | 0.00 |
| 5.1.1 Changes in net liabilities or assets caused by remeasurements on defined benefit pension schemes | 0.00 | 0.00 |
| 5.1.2 Share of other comprehensive income of investees that will not be reclassified into profit or loss under equity method | 0.00 | 0.00 |
| 5.2 Items that may subsequently be reclassified to profit or loss | -34,867,001.00 | 6,030,946.00 |
| 5.2.1 Share of other comprehensive income of investees that will be reclassified into profit or loss under equity method | 0.00 | 0.00 |
| 5.2.2 Gain/Loss on changes in fair value of available-for-sale financial assets | -34,867,001.00 | 6,030,946.00 |
| 5.2.3 Gain/Loss arising from reclassification of | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| held-to-maturity investments to available-for-sale financial assets | ||
| 5.2.4 Effective gain/loss on cash flow hedges | 0.00 | 0.00 |
| 5.2.5 Differences arising from translation of foreign currency-denominated financial statements | 0.00 | 0.00 |
| 5.2.6 Other | 0.00 | 0.00 |
| 6. Total comprehensive income | 2,080,755,703.00 | 394,800,552.00 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | 0.0608 | 0.0111 |
| 7.2 Diluted earnings per share | 0.0608 | 0.0111 |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | H1 2018 | H1 2017 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 46,919,613,472.00 | 43,665,151,353.00 |
| Net increase in customer deposits and deposits from banks and other financial institutions | 0.00 | 0.00 |
| Net increase in loans from central bank | 0.00 | 0.00 |
| Net increase in loans from other financial institutions | 0.00 | 0.00 |
| Premiums received on original insurance contracts | 0.00 | 0.00 |
| Net proceeds from reinsurance | 0.00 | 0.00 |
| Net increase in deposits and investments of policy holders | 0.00 | 0.00 |
| Net increase in proceeds from disposal of financial assets at fair value through profit or loss | 0.00 | 0.00 |
| Interest, handling charges and commissions received | 0.00 | 0.00 |
| Net increase in interbank loans obtained | 0.00 | 0.00 |
| Net increase in proceeds from repurchase transactions | 0.00 | 0.00 |
| Tax rebates | 3,252,910,154.00 | 3,662,030,436.00 |
| Cash generated from other operating activities | 2,892,613,722.00 | 768,953,070.00 |
| Subtotal of cash generated from operating activities | 53,065,137,348.00 | 48,096,134,859.00 |
| Payments for commodities and services | 31,789,388,744.00 | 28,313,641,143.00 |
| Net increase in loans and advances to customers | 0.00 | 0.00 |
| Net increase in deposits in central bank and in interbank loans granted | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Payments for claims on original insurance contracts | 0.00 | 0.00 |
| Interest, handling charges and commissions paid | 0.00 | 0.00 |
| Policy dividends paid | 0.00 | 0.00 |
| Cash paid to and for employees | 5,206,850,022.00 | 4,183,675,298.00 |
| Taxes paid | 1,826,914,249.00 | 2,139,357,844.00 |
| Cash used in other operating activities | 2,802,378,487.00 | 2,820,869,308.00 |
| Subtotal of cash used in operating activities | 41,625,531,502.00 | 37,457,543,593.00 |
| Net cash generated from/used in operating activities | 11,439,605,846.00 | 10,638,591,266.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestments | 42,727,697,470.00 | 8,594,039,173.00 |
| Investment income | 225,460,451.00 | 34,325,731.00 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-lived assets | 6,071,367.00 | 58,574,338.00 |
| Net proceeds from disposal of subsidiaries or other business units | 0.00 | 0.00 |
| Cash generated from other investing activities | 4,020,095,013.00 | 1,651,837,600.00 |
| Subtotal of cash generated from investing activities | 46,979,324,301.00 | 10,338,776,842.00 |
| Payments for acquisition of fixed assets, intangible assets and other long-lived assets | 22,369,952,658.00 | 24,969,365,239.00 |
| Payments for investments | 46,687,262,053.00 | 16,940,890,821.00 |
| Net increase in pledged loans granted | 0.00 | 0.00 |
| Net payments for acquisition of subsidiaries and other business units | 0.00 | 0.00 |
| Cash used in other investing activities | 1,729,746,759.00 | 417,993,963.00 |
| Subtotal of cash used in investing activities | 70,786,961,470.00 | 42,328,250,023.00 |
| Net cash generated from/used in investing activities | -23,807,637,169.00 | -31,989,473,181.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 4,211,130,000.00 | 6,105,150,000.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 4,211,130,000.00 | 6,105,150,000.00 |
| Increase in borrowings obtained | 16,019,313,696.00 | 17,478,499,523.00 |
| Net proceeds from issuance of bonds | 0.00 | 0.00 |
| Cash generated from other financing activities | 1,736,188,263.00 | 98,452,479.00 |
| Subtotal of cash generated from financing activities | 21,966,631,959.00 | 23,682,102,002.00 |
| Repayment of borrowings | 9,708,459,433.00 | 5,752,923,590.00 |
| Payments for interest and dividends | 3,920,842,959.00 | 2,030,450,605.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Including: Dividends paid by subsidiaries to non-controlling interests | 0.00 | 0.00 |
| Cash used in other financing activities | 188,678,823.00 | 649,313,318.00 |
| Subtotal of cash used in financing activities | 13,817,981,215.00 | 8,432,687,513.00 |
| Net cash generated from/used in financing activities | 8,148,650,744.00 | 15,249,414,489.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -603,907,413.00 | -455,025,939.00 |
| 5. Net increase in cash and cash equivalents | -4,823,287,992.00 | -6,556,493,365.00 |
| Add: Cash and cash equivalents, beginning of the period | 47,913,287,583.00 | 49,354,810,388.00 |
| 6. Cash and cash equivalents, end of the period | 43,089,999,591.00 | 42,798,317,023.00 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | H1 2018 | H1 2017 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 3,175,402,626.00 | 710,405,975.00 |
| Tax rebates | 2,294,981.00 | 0.00 |
| Cash generated from other operating activities | 431,273,788.00 | 304,429,662.00 |
| Subtotal of cash generated from operating activities | 3,608,971,395.00 | 1,014,835,637.00 |
| Payments for commodities and services | 242,669,705.00 | 198,978,019.00 |
| Cash paid to and for employees | 495,217,910.00 | 380,998,757.00 |
| Taxes paid | 388,375,276.00 | 175,285,708.00 |
| Cash used in other operating activities | 49,861,076.00 | 2,690,735,937.00 |
| Subtotal of cash used in operating activities | 1,176,123,967.00 | 3,445,998,421.00 |
| Net cash generated from/used in operating activities | 2,432,847,428.00 | -2,431,162,784.00 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestments | 506,475,341.00 | 0.00 |
| Investment income | 614,938,715.00 | 1,434,763,684.00 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-lived assets | 5,330.00 | 2,096.00 |
| Net proceeds from disposal of subsidiaries or other business units | 0.00 | 0.00 |
| Cash generated from other investing activities | 3,464,350,013.00 | 1,122,010,303.00 |
| Subtotal of cash generated from investing activities | 4,585,769,399.00 | 2,556,776,083.00 |
| Payments for acquisition of fixed assets, intangible assets and other long-lived assets | 139,310,504.00 | 98,591,704.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Payments for investments | 9,916,742,439.00 | 14,153,939,400.00 |
| Net payments for acquisition of subsidiaries and other business units | 0.00 | 0.00 |
| Cash used in other investing activities | 200,000,000.00 | 700,914,519.00 |
| Subtotal of cash used in investing activities | 10,256,052,943.00 | 14,953,445,623.00 |
| Net cash generated from/used in investing activities | -5,670,283,544.00 | -12,396,669,540.00 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 0.00 | 0.00 |
| Increase in borrowings obtained | 3,567,000,000.00 | 12,533,000,000.00 |
| Net proceeds from issuance of bonds | 0.00 | 0.00 |
| Cash generated from other financing activities | 7,306,322,534.00 | 19.00 |
| Subtotal of cash generated from financing activities | 10,873,322,534.00 | 12,533,000,019.00 |
| Repayment of borrowings | 3,882,732,992.00 | 0.00 |
| Payments for interest and dividends | 2,224,217,165.00 | 459,582,730.00 |
| Cash used in other financing activities | 700,000,000.00 | 351,381,074.00 |
| Sub-total of cash used in financing activities | 6,806,950,157.00 | 810,963,804.00 |
| Net cash generated from/used in financing activities | 4,066,372,377.00 | 11,722,036,215.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 43,102,003.00 | -4,955,113.00 |
| 5. Net increase in cash and cash equivalents | 872,038,264.00 | -3,110,751,222.00 |
| Add: Cash and cash equivalents, beginning of the period | 2,990,801,501.00 | 7,548,700,412.00 |
| 6. Cash and cash equivalents, end of the period | 3,862,839,765.00 | 4,437,949,190.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
7. Consolidated Statements of Changes in Owners’ Equity
H1 2018
Unit: RMB
| Item | H1 2018 | ||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained profits | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||
| 1. Balances as of end of prior year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 38,585,515,122.00 | 0.00 | 150,602,933.00 | 0.00 | 889,640,475.00 | 0.00 | 10,385,659,084.00 | 19,474,446,456.00 | 104,284,262,833.00 |
| Add: Adjustments for changed accounting policies | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustments for corrections of previous errors | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustments for business combinations involving enterprises under common | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| control | |||||||||||||
| Other adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Balances as of beginning of the year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 38,585,515,122.00 | 0.00 | 150,602,933.00 | 0.00 | 889,640,475.00 | 0.00 | 10,385,659,084.00 | 19,474,446,456.00 | 104,284,262,833.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | 0.00 | 0.00 | 0.00 | 0.00 | -340,753,766.00 | 0.00 | -238,286,517.00 | 0.00 | 0.00 | 0.00 | 1,234,416,621.00 | 7,454,228,908.00 | 8,109,605,246.00 |
| 3.1 Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -238,286,517.00 | 0.00 | 0.00 | 0.00 | 2,975,206,500.00 | -131,095,922.00 | 2,605,824,061.00 |
| 3.2 Capital increased and reduced by owners | 0.00 | 0.00 | 0.00 | 0.00 | -343,178,364.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 7,588,004,608.00 | 7,244,826,244.00 |
| 3.2.1 Ordinary shares increased by shareholders | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.3 Share-based | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| payments included in owners’ equity | |||||||||||||
| 3.2.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | -343,178,364.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 7,588,004,608.00 | 7,244,826,244.00 |
| 3.3 Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,740,789,879.00 | -2,679,778.00 | -1,743,469,657.00 |
| 3.3.1 Appropriation to surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3.2 Appropriation to general reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3.3 Appropriation to owners (or shareholders) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,740,789,879.00 | -2,679,778.00 | -1,743,469,657.00 |
| 3.3.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4 Carryforwards within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.1 Increase in capital (or share capital) from capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| reserves | |||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.3 Surplus reserves used to make up losses | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5 Specific reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.1 Withdrawn for the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.2 Used during the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 2,424,598.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,424,598.00 |
| 4. Balances as of end of the period | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 38,244,761,356.00 | 0.00 | -87,683,584.00 | 0.00 | 889,640,475.00 | 0.00 | 11,620,075,705.00 | 26,928,675,364.00 | 112,393,868,079.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
H1 2017
Unit: RMB
| Item | H1 2017 | ||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained profits | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||
| 1. Balances as of end of prior year | 35,153,067,743.00 | 0.00 | 0.00 | 0.00 | 39,031,357,529.00 | 314,350,824.00 | 75,718,703.00 | 0.00 | 743,139,855.00 | 0.00 | 4,011,055,487.00 | 13,316,066,667.00 | 92,016,055,160.00 |
| Add: Adjustments for changed accounting policies | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustments for corrections of previous errors | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustments for business combinations involving enterprises under common control | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| adjustments | |||||||||||||
| 2. Balances as of beginning of the year | 35,153,067,743.00 | 0.00 | 0.00 | 0.00 | 39,031,357,529.00 | 314,350,824.00 | 75,718,703.00 | 0.00 | 743,139,855.00 | 0.00 | 4,011,055,487.00 | 13,316,066,667.00 | 92,016,055,160.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | -354,668,980.00 | 0.00 | 0.00 | 0.00 | -445,842,407.00 | -314,350,824.00 | 74,884,230.00 | 0.00 | 146,500,620.00 | 0.00 | 6,374,603,597.00 | 6,158,379,789.00 | 12,268,207,673.00 |
| 3.1 Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 74,884,230.00 | 0.00 | 0.00 | 0.00 | 7,567,682,493.00 | 262,231,919.00 | 7,904,798,642.00 |
| 3.2 Capital increased and reduced by owners | -354,668,980.00 | 0.00 | 0.00 | 0.00 | -445,842,407.00 | -314,350,824.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 5,903,507,090.00 | 5,417,346,527.00 |
| 3.2.1 Ordinary shares increased by shareholders | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.3 Share-based payments included in | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| owners’ equity | |||||||||||||
| 3.2.4 Other | -354,668,980.00 | 0.00 | 0.00 | 0.00 | -445,842,407.00 | -314,350,824.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 5,903,507,090.00 | 5,417,346,527.00 |
| 3.3 Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 146,500,620.00 | 0.00 | -1,193,078,896.00 | -7,359,220.00 | -1,053,937,496.00 |
| 3.3.1 Appropriation to surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 146,500,620.00 | 0.00 | -146,500,620.00 | 0.00 | 0.00 |
| 3.3.2 Appropriation to general reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3.3 Appropriation to owners (or shareholders) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,046,578,276.00 | -7,359,220.00 | -1,053,937,496.00 |
| 3.3.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4 Carryforwards within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.1 Increase in capital (or share capital) from capital reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.2 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| Increase in capital (or share capital) from surplus reserves | |||||||||||||
| 3.4.3 Surplus reserves used to make up losses | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5 Specific reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.1 Withdrawn for the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.2 Used during the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Balances as of end of the period | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 38,585,515,122.00 | 0.00 | 150,602,933.00 | 0.00 | 889,640,475.00 | 0.00 | 10,385,659,084.00 | 19,474,446,456.00 | 104,284,262,833.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2018
Unit: RMB
| Item | H1 2018 | ||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | Retained profits | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | |||||||||
| 1. Balances as of end of prior year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 37,588,541,593.00 | 0.00 | 192,097,489.00 | 0.00 | 889,640,475.00 | 1,765,291,136.00 | 75,233,969,456.00 |
| Add: Adjustments for changed accounting policies | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustments for corrections of previous errors | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Other adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Balances as of beginning of the year | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 37,588,541,593.00 | 0.00 | 192,097,489.00 | 0.00 | 889,640,475.00 | 1,765,291,136.00 | 75,233,969,456.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | 0.00 | 0.00 | 0.00 | 0.00 | 2,424,598.00 | 0.00 | -34,867,001.00 | 0.00 | 0.00 | 374,832,825.00 | 342,390,422.00 |
| 3.1 Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -34,867,001.00 | 0.00 | 0.00 | 2,115,622,704.00 | 2,080,755,703.00 |
| 3.2 Capital increased and reduced by owners | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.1 Ordinary shares increased by shareholders | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.3 Share-based payments included in owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3 Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,740,789,879.00 | -1,740,789,879.00 |
| 3.3.1 Appropriation to surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.3.2 Appropriation to owners (or shareholders) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,740,789,879.00 | -1,740,789,879.00 |
| 3.3.3 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4 Carryforwards within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.1 Increase in capital (or share capital) from capital reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.2 Increase in capital (or share capital) from surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.3 Surplus reserves used to make up losses | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5 Specific reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.1 Withdrawn for | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| the period | |||||||||||
| 3.5.2 Used during the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 2,424,598.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2,424,598.00 |
| 4. Balances as of end of the period | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 37,590,966,191.00 | 0.00 | 157,230,488.00 | 0.00 | 889,640,475.00 | 2,140,123,961.00 | 75,576,359,878.00 |
H1 2017
Unit: RMB
| Item | H1 2017 | ||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | Retained profits | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | |||||||||
| 1. Balances as of end of prior year | 35,153,067,743.00 | 0.00 | 0.00 | 0.00 | 38,157,600,408.00 | 314,350,824.00 | 152,323,461.00 | 0.00 | 743,139,855.00 | 1,493,363,829.00 | 75,385,144,472.00 |
| Add: Adjustments for changed accounting policies | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Adjustments for corrections of previous errors | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Other adjustments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Balances as of beginning of the year | 35,153,067,743.00 | 0.00 | 0.00 | 0.00 | 38,157,600,408.00 | 314,350,824.00 | 152,323,461.00 | 0.00 | 743,139,855.00 | 1,493,363,829.00 | 75,385,144,472.00 |
| 3. Increase/ decrease in the period (“-” for decrease) | -354,668,980.00 | 0.00 | 0.00 | 0.00 | -569,058,815.00 | -314,350,824.00 | 39,774,028.00 | 0.00 | 146,500,620.00 | 271,927,307.00 | -151,175,016.00 |
| 3.1 Total comprehensive income | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 39,774,028.00 | 0.00 | 0.00 | 1,465,006,203.00 | 1,504,780,231.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| 3.2 Capital increased and reduced by owners | -354,668,980.00 | 0.00 | 0.00 | 0.00 | -569,058,815.00 | -314,350,824.00 | 0.00 | 0.00 | 0.00 | 0.00 | -609,376,971.00 |
| 3.2.1 Ordinary shares increased by shareholders | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.2 Capital increased by holders of other equity instruments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.3 Share-based payments included in owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.2.4 Other | -354,668,980.00 | 0.00 | 0.00 | 0.00 | -569,058,815.00 | -314,350,824.00 | 0.00 | 0.00 | 0.00 | 0.00 | -609,376,971.00 |
| 3.3 Profit distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 146,500,620.00 | -1,193,078,896.00 | -1,046,578,276.00 |
| 3.3.1 Appropriation to surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 146,500,620.00 | -146,500,620.00 | 0.00 |
| 3.3.2 Appropriation to owners (or shareholders) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,046,578,276.00 | -1,046,578,276.00 |
| 3.3.3 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4 Carryforwards within owners’ equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.1 Increase in capital (or share capital) from capital reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.2 Increase in capital (or share capital) from surplus reserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
BOE Technology Group Co., Ltd. Interim Report 2018
| 3.4.3 Surplus reserves used to make up losses | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.4.4 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5 Specific reserve | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.1 Withdrawn for the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.5.2 Used during the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3.6 Other | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Balances as of end of the period | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 37,588,541,593.00 | 0.00 | 192,097,489.00 | 0.00 | 889,640,475.00 | 1,765,291,136.00 | 75,233,969,456.00 |
III. Company Profile
Founded in Beijing on 9 April 1993 and headquartered in the city, BOE Technology Group Co., Ltd. (hereinafter referred to as the
“Company”) is a company limited by shares. Its parent and ultimate controller is Beijing Electronics Holding Co., Ltd. (“ElectronicsHolding”). The Company and its affiliated subsidiaries (hereinafter jointly referred to as the “Group”) are divided into three major
business divisions, namely, Display and Sensor Device, IoT-Based Smart System and the smart healthcare service division. For
information about the Company’s subsidiaries, see item XII, 2 herein. During the Reporting Period, three new subsidiaries were
added to the Group, namely, Beijing BOE Sensor Technology Co., Ltd., Mianyang BOE Optoelectronics Co., Ltd. and SESImagotagSA, with the Company holding a stake of 100%, 61.54% and 79.94%, respectively. For further information on the new and reduced
subsidiaries, see “VIII Changes to Consolidation Scope” and “IX Interests in Other Entities” herein.
IV. Basis for the Preparation of Financial Statements
1. Preparation Basis
The financial statements have been prepared on the basis of going concern.
2. Continuing Operations
The Company had the continuing operations ability within 12 months since the end of the Reporting Period.
V. Significant Accounting Policies and Estimates
Reminder of the specific accounting policies and estimates:
Naught
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in accordance with the requirements of Accounting Standards for Business Enterprisesissued by the Ministry of Finance (hereinafter referred to as MOF). These financial statements present truly and completely theconsolidated financial position and financial position as of 30 June 2018, the consolidated results of operations and results ofoperations and the consolidated cash flows and cash flows in the first half year of 2018 of the Company.
These financial statements also comply with the disclosure requirements of “Regulation on the Preparation of InformationDisclosures of Companies Issuing Public Shares, No. 15: General Requirements for Financial Reports” as revised by the ChinaSecurities Regulatory Commission (hereinafter referred to as “CSRC”) in 2014.
2. Accounting period
The accounting year of the Group is from January 1
st
to December 31
st
.
3. Operating Cycle
The Company regarded the period from purchasing the assets for processing to realizing the cash or cash equivalents as the normaloperating cycle. The operating cycle of the main business of the Company usually is less than 12 months.
4. Recording Currency
The Company’s functional currency is Renminbi. These financial statements are presented in Renminbi. The basis of choosing thefunctional currency for the Company and its subsidiaries is that it’s the pricing and settlement currency for the main business. Some
subsidiaries of the Company adopt the currency other than RMB as the recording currency. The Company translates the foreigncurrency financial statement of subsidiaries when compiling the financial statement.
5. Accounting Treatments for a Business Combination Involving Entities Under and those not UnderCommon Control
(1) Business combination involving entities under common control
A business combination involving enterprises under common control is a business combination in which all of the combiningenterprises are ultimately controlled by the same party or parties both before and after the business combination, and that control isnot transitory. The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise being combinedat the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount ofconsideration paid for the combination (or the total face value of shares issued) is adjusted to share premium in the capital reserve. Ifthe balance of share premium is insufficient, any excess is adjusted to retained earnings. Other direct expenses occur when the Groupconducting business combinations is recognized in current profit and loss. The combination date is the date on which one combiningenterprise effectively obtains control of the other combining enterprises.(2) Business combinations involving entities not under common controlA business combination involving entities not under common control is a business combination in which all of the combining entitiesare not ultimately controlled by the same party or parties both before and after the business combination. When the Group acts as thecombination party, the cost of a business combination paid by the acquirer is the aggregate of the fair value at the acquisition date ofassets given (including share equity of the acquiree held before the combination date), liabilities incurred or assumed, and equity
securities issued by the acquirer. Any excess of the cost of a business combination over the acquirer’s interest in the fair value of theacquiree’s identifiable net assets is recognized as goodwill, while any excess of the acquirer’s interest in the fair value of theacquiree’s identifiable net assets over the cost of a business combination is recognized in profit or loss. The cost of equity securities
or liability securities as on combination consideration offering is recognized in initial recording capital on equity securities or liabilitysecurities. Other direct expenses occur when the Group conducting business combinations is recognized in current profit and loss.The difference between the fair value and the carrying amount of the assets given is recognized in profit or loss. The Group, at the
acquisition date, recognized the acquiree’s identifiable asset, liabilities and contingent liabilities at their fair value at that date. The
acquisition date is the date on which the acquirer effectively obtains control of the acquiree.In a business combination not under same control realized by two or more transactions of exchange, for the equities of the purchaseesheld before the purchase date, the Group will execute the remeasurement according to the fair value of the equity on the purchasedate with the difference between the fair value and its book value be recorded in the current investment income. The othercomprehensive income which could be reclassified in the gains and losses afterwards and the changes of the equities of the otherowners under the measurement of the equity method that involved with the afterwards equity of the purchasees held before thepurchase date should be transferred in the current investment income.
6. Preparation Methods for Consolidated Financial Statements
(1) General principleThe scope of consolidated financial statements is determined on the base of control, which comprise the Company and its
subsidiaries. The term “control” is the power of the Group upon an investee, with which it can take part in relevant activities of the
investee to obtain variable returns and is able to influence the amount of returns. When judging whether the Group owns the right onthe investees or not, the Group only considers the substantive rights related to the investees (including the substantive rights enjoyedby the Group itself and by the other parties). The financial status, operating results and cash flow of subsidiaries are included in theconsolidated financial statements from the date that control commences until the date that control ceases.
Equity, profit or loss attributable to minority shareholders is presented separately under the item of shareholders’ equity in
consolidated income statement and the net profits in the consolidated income statement.If current loss shoulder by minority shareholders of a subsidy over the proportion enjoyed by minority shareholders in a subsidy at
owners’ equity at period-begin, its balance still offset minority shareholders’ equity.
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 unrealized profit or loss arising from intra-group transactions, are eliminatedin preparing the consolidated financial statements. Unrealized losses resulting from intra-group transactions are eliminated in thesame way as unrealized gains but only to the extent that there is no evidence of impairment.(2) Acquiring the subsidiaries from mergerWhere a subsidiary was acquired during the Reporting Period, through a business combination involving entities under commoncontrol, the financial statements of the subsidiary are included in the consolidated financial statements based on book value in the
consolidated balance sheet of the subsidiary’s assets, liabilities and results of operations as if the combination had occurred at the
date that common control was established. Therefore the opening balances and the comparative figures of the consolidated financialstatements are restated.Where a subsidiary was acquired during the Reporting Period, through a business combination involving entities not under commoncontrol, when prepared the consolidated financial statements, the Company shall included the acquired subsidiaries into theconsolidated scope from the acquisition date basing on the fair value of the identifiable assets, liabilities at the acquisition date.(3) Disposing the subsidiariesWhere the control of former subsidiary was lost, any disposal profit or loss occurred shall be recorded into the investment incomeduring the period of losing control right. As for remaining equity investment, the Group will re-account it according to the fair valueat the date the control was lost. Any profit or loss occurred shall be recorded into the investment income during the period of losingcontrol right.Where the Group losses control on its original subsidiaries due to step by step disposal of equity investments through multipletransactions, should judge whether is the package deal according to the following principles:
- These deals are at the same time or under the condition of considering the influence of each other to concluded;- These transactions only when be regarded as a whole could achieve a complete business result;
- The occurrence of a deal depends on at least one other transactions；
- A deal alone is not economical, it is economical with other trading together.If each deal not belongs to a package deal, as for each deal before losing the control right on the subsidiaries, should be disposedaccording to the accounting policies of partly disposing the equity investment of the subsidiaries under the situation not losing thecontrol right.If each deal belongs to a package deal, considered as a transaction and conduct accounting treatment, however, before losing control,the differences between every disposal cost and the shares of the book value of the corresponding net assets continuously calculatedsince the purchase date of the subsidiary of disposal investment are confirmed as other comprehensive income in consolidatedfinancial statements, which together transferred into the current profits and losses in the loss of control , when the Group losingcontrol on its subsidiary.(4) Changes of non-controlling interests
Where the Company acquires a minority interest from a subsidiary’s minority shareholders or disposes of a portion of an interest in a
subsidiary without a change in control, the difference between the amount by which the minority interests are adjusted and theamount of the consideration paid or received is adjusted to the capital reserve (share premium) in the consolidated balance sheet. Ifthe credit balance of capital reserve (share premium) is insufficient, any excess is adjusted to retained earnings.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and all the participants are bothrestricted by the arrangement; and two or more participants execute the jointly control on the arrangement. Any of the participantshould not individually control the arrangement, while any of the participant that owns the jointly control could stop otherparticipants or the participants group from individually control the arrangement.Joint arrangements divided into joint operations and joint ventures. A joint operation refers to a joint arrangement where theparticipant party enjoys assets and has to bear liabilities related to the arrangement. A joint venture refers to a joint arrangementwhere the participant party is only entitled to the net assets of the arrangement.The participant party should confirm the following items related to the interests portion among the jointly operation and execute theaccounting treatment according to the regulations of the relevant ASBE: recognizes the assets and liabilities that it holds and bears in
the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities according to the Group’s stake in the jointoperation; recognizes the income from sale of the Group’s share in the output of the joint operation; recognizes the income from saleof the joint operation’s outputs according to the Group’s stake in it; and recognizes the expense solely incurred to the Group and theexpense incurred to the joint operation according to the Group’s stake in it.
8. Recognition Standard for Cash and Cash Equivalents
In the Group’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for cover, and short-term
and high circulating investments, which are easily convertible into known amount of cash and whose risks in change of value areminimal.
9. Foreign Currency Businesses 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 rateat the date of the receipt. Other foreign currency transactions are, on initial recognition, translated to Renminbi at the spot exchangerates at 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. Theresulting exchange differences are recognized in profit or loss, except those arising from the principals and interests on foreigncurrency borrowings specifically for the purpose of acquisition, construction of qualifying assets. Non-monetary items denominatedin foreign currencies that are measured at historical cost are translated to Renminbi using the foreign exchange rate at the transactiondate. Non-monetary items denominated in foreign currencies that are measured at fair value are translated using the foreign exchange
rate at the date the fair value is determined; the exchange differences, if it’s the difference arising from the non-monetary item of
available-for-sale financial assets, which shall be considered as other comprehensive income and recognized in capital reserve; otherdifferences shall be recognized in current profit or loss.The assets and liabilities of foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. The
equity items, excluding “Retained earning”, are translated to Renminbi at the spot exchange rates at the transaction dates. The
income and expenses of foreign operation are translated to Renminbi at rates that approximate the spot exchange rates at thetransaction dates. The resulting exchange differences are listed in other comprehensive income. Upon disposal of a foreign operation,
the cumulative amount of the exchange differences recognized in equity which relates to that foreign operation is transferred to profitor loss in the period in which the disposal occurs.
10. Financial Instruments
Financial instruments comprise monetary funds, bonds investment, equity investment other than long-term equity investment,receivables, payables, borrowings and share capital, etc.(1) Recognition and measurement of the financial assets and financial liabilitiesA financial asset or financial liability is recognized in the balance sheet when the Group becomes a party to the contractualprovisions of a financial instrument.The Group classifies financial assets and liabilities into different categories at initial recognition based on the purpose of acquiringassets or assuming liabilities: financial assets and financial liabilities at fair value through profit or loss, loans and receivables,held-to-maturity investments, available-for-sale financial assets and other financial liabilities.Financial assets and liabilities are measured initially at fair value. For financial assets and liabilities at fair value through profit or loss,any directly attributable transaction costs are charged to profit or loss; for other categories of financial assets and financial liabilities,any attributed transaction costs are included in their initial costs. Subsequent to initial recognition financial assets and liabilities aremeasured as follows:
– Financial assets and financial liabilities at fair value through profit or loss (including financial assets or financial liabilities held for
trading)Subsequent to initial recognition, financial assets and financial liabilities at fair value through profit or loss are measured at fair value,and changes therein are recognized in profit or loss.
– Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.Subsequent to initial recognition, receivables are subsequently stated at amortized cost using the effective interest method.
– Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that theGroup has the positive intention and ability to hold to maturity.Subsequent to initial recognition, held-to-maturity investments are stated at amortized cost using the effective interest method.
– Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated upon initial recognition as available forsale and other financial assets which do not fall into any of the above categories.As for the available-for-sale financial assets whose fair value cannot be reliably measured is measured at cost subsequent to initialrecognition; except that, subsequent to initial recognition, other available-for-sale financial assets are measured at fair value andchanges therein, except for impairment losses and foreign exchange gains and losses from monetary financial assets, which arerecognized directly in profit or loss, are considered as other comprehensive income to be recognized directly in capital reserves.When an investment is derecognized, the cumulative gain or loss in equity is removed from equity and recognized in profit or loss.Dividend income from these equity instruments is recognized in profit or loss when the investee declares the dividends. Interest onavailable-for-sale financial assets calculated using the effective interest method is recognized in profit or loss.
– Other financial liabilities
Financial liabilities other than the financial liabilities at fair value through profit or loss are classified as other financial liabilities.Other financial liabilities include the liabilities arising from financial guarantee contracts. Financial guarantees are contracts thatrequire the issuer (i.e. the guarantor) to make specified payments to reimburse the beneficiary of the guarantee (the holder) for a lossthe holder incurs because a specified debtor fails to make payment when due, in accordance with the terms of a debt instrument.Where the Group issues a financial guarantee, subsequent to initial recognition, the guarantee is measured at the higher of the amount
initially recognized less accumulated amortization and the amount of a provision determined in accordance with the principles ofcontingent liabilities.Except for the liabilities arising from financial guarantee contracts described above, subsequent to initial recognition, other financialliabilities are measured at amortized cost using the effective interest method.(2) Presentation of financial assets and financial liabilitiesThe financial assets and financial liabilities are respectively presented in the balance sheet without mutual offset. However, for thosesimultaneously meet with the following conditions, should be presented in the balance sheet by the net amount after mutual offset:
-The Group owns the legal right of neutralizing the recognized amount and the right is executable at present:
-The Group plans to settle by the net amount or to realize the financial assets and to clear off the financial liabilities at the same time.(3) Derecognition of financial assets and financial liabilities
A financial asset is derecognized if the Group’s contractual rights to the cash flows from the financial asset expire or if the Group
transfers substantially all the risks and rewards of ownership of the financial asset to another party.Where a transfer of a financial asset in its entirety meets the criteria of derecognition, the difference between the two amounts belowis recognized in profit or loss:
– Carrying amount of the financial asset transferred– The sum of the consideration received from the transfer and any cumulative gain or loss that has been recognized directly in equity.
The Group derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged.(4) Impairment of financial assetsThe carrying amounts of financial assets (other than those at fair value through profit or loss) are reviewed at each balance sheet dateto determine whether there is objective evidence of impairment.Objective evidence of impairment includes but not is limited to the followings:
(a) A serious financial difficulty occurs to the issuer or debtor;(b) The debtor breaches any of the contractual stipulations, for example, fails to pay or delays the payment of interests or theprincipal, etc.;(c) The debtor will probably become bankrupt or carry out other financial reorganizations;(d) The financial asset can no longer continue to be traded in the active market due to serious financial difficulties of the issuer;(e) Any seriously disadvantageous change has occurred to technical, market, economic or legal environment, etc. wherein the issuerof instruments operates its business, which makes the investor of an equity instrument unable to take back its investment;(f) Where the fair value of the equity instrument investment drops significantly or not contemporarily (which the fair value declinedof 50%) or not contemporarily (which the fair value constantly declined over than 9 months) etc.For the methods of the impairment of the relevant accounts receivable, please refer to Notes V. 11. The methods of the impairment ofother financial assets are as follows:
– Held-to-maturity investments
Held-to-maturity investments are assessed for impairment on an individual basis.An impairment loss in respect of a held-to-maturity investment is calculated as the excess of its carrying amount over the presentvalue of the estimated future cash flows (exclusive of future credit losses that have not been incurred) discounted at the originaleffective interest rate. All impairment losses are recognized in profit or loss.If, after an impairment loss has been recognized on held-to-maturity investments, there is objective evidence of a recovery in value ofthe financial asset which can be related objectively to an event occurring after the impairment was recognized, the previouslyrecognized impairment loss is reversed through profit or loss. The reversed carrying amount shall not be any more than thepost-amortization costs of the said financial asset on the day of reverse under the assumption that no provision is made for theimpairment.
– Available-for-sale financial assets
Available-for-sale financial assets are assessed for impairment on an individual and combination basis. When an available-for-salefinancial asset is impaired, the cumulative loss arising from a decline in fair value that has been recognized directly in equity isremoved from equity and recognized in profit or loss even though the financial asset has not been derecognized.If, after an impairment loss has been recognized on an available-for-sale debt instrument, the fair value of the debt instrumentincreases in a subsequent period and the increase can be objectively related to an event occurring after the impairment loss wasrecognized, the impairment loss is reversed through profit or loss. An impairment loss recognized for an investment in an equityinstrument classified as available-for-sale is not reversed through profit or loss. However, for the investment on the equityinstruments without any quoted price among the active market with the fair value could not be reliable measured, should not bereversed.(5) Equity investmentsAfter the consideration received from issuing the equity instruments by the Company deducted the transaction expenses, should be
recorded in the shareholders’ equities. To repurchase the consideration and transaction expenses paid for the equity instruments andto decrease the shareholders’ equities.
When repurchasing the shares of the Company, those repurchased shares should be managed as the treasury stocks, and the wholeexpenses should be transferred as the treasury stocks cost and at the same time executes the future reference registration. The treasury
stocks would not participate in the profits distribution and would be represented as the allowance items of the shareholders’ equities
among the sheet balance.When executing the written-off of the treasury stocks, should decrease the share capital according to the total amount of the facevalue of the stocks and for the part that the cost of the treasury stocks exceeds the total amount of the face value, should successivelywrite down the capital surplus (capital stock premium), earned surplus and retained earnings; for the cost of the treasury stocks lessthan the total amount of the face value, the part that lower than the total amount of the face value should increase the capital surplus(capital stock premium).When transferring the treasury stocks, for the part of the revenues of the transfer that higher than the cost of the treasury stocks,should increase the capital surplus (capital stock premium); for the part that lower than the cost of the treasury stocks, shouldsuccessively write down the capital surplus (capital stock premium), earned surplus and retained earnings.(6) Convertible instruments
– Convertible instruments
For the convertible instruments issued by the Group which could be converted as the equity shares and when converting, the sharesnumber and the amount of the consideration are fixed, the Group consider which as the compound instruments that includes thecomponents of liabilities and equities.When executing the initial recognition, the Group splits the relevant liabilities and equities and firstly recognizes the fair value of theliabilities (including the fair value of the non-equity embedded derivative possibly included) then deducts the fair value of theliabilities component from the fair value of the compound instruments as the value of the equities component as well as record whichin the equities component. The transaction expenses occurred from issuing the compound instruments, should amortize whichaccording to each proportion of the total issuance price between the liabilities component and the equities component.After the initial recognition, for the liabilities component without appointed to be measured by fair value and to be recorded in thecurrent gains and losses with the changes, should be measured by the effective interest method according to the amortized cost. Andthe equities component would not be remeasured after the initial measurement.When converting the convertible instruments, the Group transfers the liabilities component and the equities component to therelevant subjects. When the convertible instruments are redeemed, the price paid and the occurred transaction expenses should bedistributed to the equities and liabilities component. The methods of the distribution price and the transaction expenses areunanimous with the distribution methods adopt when issuing the instruments. After the distribution of the price and transactionexpenses, for the differences between which and the book value of the equities component and between the book value of the
liabilities component, the part related to the equities component should be recorded in the equity while the part related to theliabilities component should be recorded in the gains and losses.
– Other convertible instruments excluding the equities component
For the other convertible instruments excluding the equities component issued by the Group, when executing the initial recognition,the derivative instruments component of the convertible instruments should be measured by fair value while the remained part shouldbe regarded as the initial recognized amount of the main debt instruments.After the initial recognition, for the derivative instruments component, should be measured by fair value, and the gains or lossesformed from the changes of the fair value should be recorded in the current gains and losses. As for the main debt instruments,should be measured by the effective interest rate according to the amortized cost.When converting the convertible instruments, the Group transfers the main debt instruments and derivative instruments to therelevant subjects. When the convertible instruments are redeemed, the deference between the paid price and the book value of themain debt instruments as well as the derivative instruments should be recorded in the gains and losses.
11. Receivables(1) Accounts Receivable with Significant Single Amount for which the Bad Debt Provision is Made
Individually
| Definition or amount criteria for an account receivable with a significant single amount | The single amount is more than RMB50,000,000.00 |
| Making individual bad-debt provisions for accounts receivable with a significant single amount | Impairment test is made individually |
(2) Accounts Receivable which the Bad Debt Provision is Withdrawn by Credit Risk Characteristics
| Name of portfolios | Bad debt provision method |
| Credit Risk Characteristics | Other method |
In the groups, those adopting aging analysis method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, those adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, those adopting other methods to withdraw bad debt provision:
□Applicable √Not applicable
(3) Accounts Receivable with an Insignificant Single Amount but for which the Bad Debt Provision is MadeIndependently
| Reason for bad debt provision | Lawsuits or deteriorative customers’ credit status |
| Withdrawal method | The lower one of the expected future receivable amount and carrying value |
12. Inventory
Is the Company subject to any disclosure requirements for special industry?No(1) Classification and cost of inventoriesInventories include raw materials, work in progress, finished goods and reusable materials. Reusable materials include low-valueconsumables, packaging materials and other materials, which can be used repeatedly but do not meet the definition of fixed assets.Inventories are initially measured by the cost. Cost of inventories comprises all costs of purchase, costs of conversion and other costs.Inventories are initially measured at their actual cost. In addition to the purchasing cost of raw materials, work in progress andfinished goods include direct labor costs and an appropriate allocation of production overheads.(2) Pricing method for outgoing inventoriesCost of inventories is calculated using the weighted average method.Revolving materials such as the low priced and easily worn articles and the packing materials should be amortized by adoptingone-time amortization method and be recorded in the cost of the relevant assets or the current gains and losses.(3) Recognition basis of net realizable value and withdrawal method of depreciation reserves for inventoriesOn the balance sheet day, inventories are carried at the lower of cost and net realizable value.Net realizable value is the estimated selling price in the normal course of business less the estimated costs to completion and theestimated expenses and related taxes necessary to make the sale. The net realizable value of materials held for use in the productionof inventories is measured based on the net realizable value of the finished goods in which they will be incorporated. The netrealizable value of the quantity of inventory held to satisfy sales or service contracts is based on the contract price. If the quantities ofinventories specified in sales contracts are less than the quantities held by the Group, the net realizable value of the excess portion ofinventories shall be based on general selling prices.Any excess of the cost over the net realizable value of each class of inventories is recognized as a provision for diminution in thevalue of inventories, and then recorded into current profit or loss.(4) Inventory system for inventories:
The Group maintains a perpetual inventory system.
13. Assets Held for Sale
The Group should divide the non-current assets (or the disposal group, that is an asset group concurrently be disposed through sellingor other methods as an entirety in a transaction and the liabilities directly related to the assets from the transfer among the transaction,
the same below )which simultaneously meet with the following conditions as the assets held for sale.– The assets could be immediately sold only according to the usual terms of selling this kind of assets under the current condition;– The Group had made resolutions on disposing the assets;– The Group had signed the irrevocable assignment agreement with the transferees; and the transfer will be completed within 1 year.
When the non-current assets be divided as assets held for sale, the Group measures the non-current assets held for sale, deferredincome tax assets and the investment properties be follow-up measured by the fair value mode according to the lower one betweenthe book value and the fair value after deducting the net amount of the disposal expenses, while the deference that the book valuehigher than the fair value which deducted the disposal expenses should be recognized as the impairment losses of the assets.The fixed assets and intangible assets be divided as assets held for sale and the investment properties be follow-up measured by thecost mode would not be withdrawn, depreciated or amortized, while the long-term equity investment be divided as assets held forsale that measured by equity method should cease the equity method measurement.
14. Long-term Equity Investments
(1) Recognition of the investment cost of the long-term equity investment(a) Investments in subsidiaries
– The initial investment cost of a long-term equity investment obtained through a business combination involving entities undercommon control is the Company’s share of the subsidiary’s equity at the combination date. The difference between the initial
investment cost and the carrying amounts of the consideration given is adjusted to share premium in capital reserve. If the balance ofthe share premium is insufficient, any excess is adjusted to retained earnings. For the long-term equity investment of the subsidiariesformed from the enterprise merger under the same control that realized step by step of the multiple transaction not belong to packagedeal, the Company would adjust the capital stock premium among the capital surplus according to the difference between the initialinvestment cost of the long-term equity investment recognized according to the above principles and the sum of the book value of thelong-term equity investment before reaching the merger and the book value of the newly paid consideration which be furtherreceived on the merger date, and if the balance of the share premium is insufficient, any excess is adjusted to retained earnings.
– For other long-term equity investment obtained through entities not under common control, the fair values, on the acquisition date,
of the assets given, the liabilities incurred or assumed and the equity securities issued by the acquirer in exchange for the control onthe acquiree shall be recognized as initial investment cost of the long-term equity investment. For long-term equity investmentobtained through a business combination involving entities not under common control by two or more transactions and by several
steps, the initial investment cost is recognized as the aggregation of the carrying value of acquirees’ equity investment before the
acquisition date held by the Company and newly investment cost at the acquisition date.(b) Long-term equity investments acquired otherwise than through a business combination
– An investment in a subsidiary acquired otherwise than through a business combination is initially recognized at initial investment
cost if the Group acquires the investment by cash, or at the fair value of the equity securities issued if an investment is acquired byissuing equity securities, or at the value stipulated in the investment contract or agreement if an investment is contributed byshareholders.(2) Subsequent measurement and recognition of profits or losses of the long-term equity investment(a) Investments in subsidiaries
In the Company’s financial statements, investments in subsidiaries are accounted for using the cost method, unless the investment is
classified as held for sale. Cash dividends or profit distributions declared by subsidiaries and attributed to the Company shall be
recognized as investment income, without dividing whether it’s the net profit realized by the investee before the investment or after
the investment, except those that have been declared but unpaid at the time of acquisition and therefore included in the price paid orconsideration.The investment into the subsidiaries is stated at cost less impairment losses in the balance sheet.
In the Group’s consolidated financial statements, investments in subsidiaries are accounted for in accordance with the principles.
(b) Investment in jointly controlled enterprises and associatesThe joint enterprise refers to an arrangement that the Group and other joint operation parties execute jointly control and only enjoythe rights of their own net assets.An associate is an enterprise over which the Group has significant influence.Upon the subsequent measurement, an investment in a jointly controlled enterprise or an associate is accounted for using the equitymethod, unless the investment is classified as held for sale.The Group makes the following accounting treatments when using the equity method:
– Where the initial investment 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 recognized at the initial investment 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 recognized at the investor’s share of the fair value of the investee’s identifiable net assets, and the difference is
charged to profit or loss.
– After the acquisition of the investment, the Group recognizes its share of the investee’s net profits or losses after deducting the
amortization of the debit balance of equity investment difference, which was recognized by the Group before the first-time adoptionof CAS, as investment income or losses, and adjusts the carrying amount of the investment accordingly. The debit balance of theequity investment difference is amortized using the straight-line method over a period which is determined in accordance withprevious accounting standards. Once the investee declares any cash dividends or profits distributions, the carrying amount of the
investment is reduced by that attributable to the Group. As for the other changes of the owners’ equities except for the net gains and
losses, other comprehensive income and profits distribution of the joint ventures or associated enterprises (hereinafter referred to as
“changes of other owners’ equities”), the Group included which in the shareholders’ equities according to the portion ought to be
enjoyed or shared, and at the same time adjust the book value of the long-term equity investment.
– The Group recognizes its share of the investee’s net profits or losses, other comprehensive income and changes of other owners’
equities after making appropriate adjustments to align the accounting policies or accounting periods with those of the Group based on
the fair values of the investee’s identifiable net assets at the date of acquisition. Unrealized profits and losses resulting fromtransactions between the Group and its associates or jointly controlled enterprises are eliminated to the extent of the Group’s interest
in the associates or jointly controlled enterprises. Unrealized losses resulting from transactions between the Group and its associatesor jointly controlled enterprises are eliminated in the same way as unrealized gains but only to the extent that there is no evidence ofimpairment.
– The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term equityinvestment and any long-term interest that in substance forms part of the Group’s net investment in the associate or the jointly
controlled enterprise is reduced to zero, except to the extent that the Group has an obligation to assume additional losses. Where netprofits are subsequently made by the associate or jointly controlled enterprise, the Group resumes recognizing its share of thoseprofits only after its share of the profits equals the share of losses not recognized.(3) The basis for determination of joint control or significant influence over investee enterpriseJoint control refers to the control jointly owned on certain arrangement according to relevant agreement and the relevant activities ofthe arrangement (which are the activities cause significant influences on the arrangement) could only execute the decision-makingthrough the unanimous consent of the parties sharing control.The following evidences shall be considered when determining whether the Group can exercise joint control over an investee:
? No single venture is in a position to control the operating activities unilaterally;? Operating decisions relating to the investee’s economic activity require the unanimous consent of the parties sharing control.
Significant influence is the power to participate in the financial and operating policy decisions of an investee but is not control orjoint control over those policies.
15. Investment Real Estates
Measurement model of investment real estateMeasurement of cost methodDepreciation and amortization methodAn investment property is a property held either to earn rental income or for capital appreciation or both. After deducting theestimated net salvage and accumulative impairment provision of the cost by the Group, the investment property is depreciated oramortized using the straight-line method over its estimated useful life, unless the investment property is classified as held for sale.The useful lives and estimated residual values as well as annual depreciation rate of each class of investment property are as follows:
Useful life (years) Residual value rate (%) Annual depreciation rate (%)
Land use rights 32 - 50 years 0.0% 2.0% - 3.1%House and buildings 25 - 40 years 3.0% - 10.0% 2.3% - 3.9%
16. Fixed Assets(1) Conditions for Recognition
Fixed assets represent the tangible assets held by the Group for use in the production of goods or supply of services for rental toothers or for operation and administrative purposes with useful lives over one year. The cost of a purchased fixed asset comprises thepurchase 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 V. 17. Where parts of an item of fixedassets have different useful lives or provide benefits to the Group in different patterns thus necessitating use of different depreciationrates or methods, each part is recognized as a separate fixed asset. The subsequent costs, including the cost of replacing part of anitem of fixed assets, are recorded into fixed asset cost when the economic interests related to costs may flow into the Group, and thecarrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of fixed assets are recognized in profit orloss as incurred. Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment losses.
(2) Depreciation Methods
| Category of fixed assets | Method | Useful life | Expected net salvage value | Annual deprecation |
| Workshops and buildings | Average method of useful life | 10-50 years | 3%-10% | 1.8%-9.7% |
| Equipments | Average method of useful life | 2-20 years | 0-10% | 4.5%-50% |
| Others | Average method of useful life | 2-10 years | 0-10% | 9.0%-50% |
The Group will made the provision for depreciation of fixed assets by average method of useful life within the useful life after
deducting the expected net salvage and accumulated impairment provision from fixed assets’ costs, unless the fixed asset is classified
into held for sale.
The Group rechecks the useful life, expected net salvage, and depreciation method of fixed assets at least the end of each year.
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
On the begin date of the lease term, the financing leased assets of the Group should be recorded in the entry value according to thelower one between the fair value of the leasing assets and the net value of the minimum lease payment, and the minimum leasepayment should be regarded as the entry value of the long-term account payable with the difference be recognized as theunrecognized financial charges. The Group records the initial direct costs of the financial lease in the leased assets value. If it isreasonable to be certain that the lessee will obtain the ownership of the leased assets when the lease term expires, the leased assetsshall be fully depreciated within the available age limit. Otherwise, the leased assets shall be fully depreciated over the shorter one ofthe lease term or its available age limit. The Group amortizes the unrecognized financial charges by the effective interest rate methodwithin each period during the lease term and manages according to the principles of the borrowing costs. On the balance sheet date,the Group will respectively list the difference from the long-term account payable related to the finance lease minuses theunrecognized financial charges as the long-term liabilities and the long-term liabilities due within 1 year.
17. Construction in Progress
(1) Categories of construction in progress
The enterprise’s self-constructed fixed asset includes self construction and contract construction. The cost of the self-constructed
fixed asset including the engineering materials, direct labor, borrowing expenses met with the capitalization condition and the
necessary expenses happened before the assets reach the expected available state.。
(2) Standards and time of transferring construction in progress into fixed assetWhen the self-constructed fixed asset reaches the available state, should transfer into the fixed assets, before which should be listedamong the construction in progress and not withdraw the depreciation.(3) Impairment test method and withdrawal method for impairment provision of construction in progressIf any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of anasset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cashflows. An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cashinflows from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identificationof an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows
from other assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’soperations and how management makes decisions about continuing or disposing of the Group’s assets. An asset’s fair value less coststo sell is the amount determined by the price of a sale agreement in an arm’s length transaction, less the costs that are directly
attributable to the disposal of the asset. The present value of expected future cash flows of an asset is determined by discountingfuture cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value usinga pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and chargedto profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairmentlosses related to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset groupor set of asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro ratabasis. However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less coststo sell (if determinable), the present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognized, it is not reserved in a subsequent period.
18. Borrowing Costs
(1) Recognition principles for capitalization of borrowing costsBorrowing costs of the Company incurred directly attributable to the acquisition, construction of a qualifying asset are capitalized aspart of the cost of the asset.(2) Capitalization period of borrowing costsThe capitalizations period is the period from the date of commencement of capitalization of borrowing costs to the date of cessationof capitalization, excluding any period over which capitalization is suspended. When the capital expenses and the borrowingexpenses had happened and the necessary purchasing and construction activity which was for leading the capital to reach theexpected available state had began, the borrowing expenses had began capitalization.When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the capitalization ofthe borrowing costs shall be ceased. If each part of the qualified asset under acquisition and construction or production is constructedand completed respectively, the Group shall determine the time of ceasing capitalization of the borrowing costs according to different
situation.Where each part of a qualified asset under acquisition and construction or production is completed separately and is ready for use orsale during the continuing construction of other parts, and if the acquisition and construction or production activities which arenecessary to prepare this part of the asset for the intended use or sale have already been completed substantially, the capitalization ofthe borrowing costs in relation to this part of asset shall be ceased. Because such part of asset has reached the expected condition ofuse or sale.(3) Period for suspending capitalization of borrowing costsWhere the acquisition and construction or production of a qualified asset is interrupted abnormally and the interruption period lastsfor more than 3 months, the capitalization of the borrowing costs shall be suspended.(4) Calculation method of capitalized amount of borrowing costs
? As for specifically borrowed loans for the acquisition and construction or production of assets eligible for capitalization, the
to-be-capitalized amount of interests shall be determined in light of the actual cost incurred of the specially borrowed loan at thepresent period minus the income of interests earned on the unused borrowing loans as a deposit in the bank or as a temporaryinvestment.
? Where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the
enterprise shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying theweighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by thecapitalization rate of the general borrowing used. The capitalization rate shall be calculated and determined in light of the weightedaverage interest rate of the general borrowing.
? During the period of capitalization, the amount of interest capitalized during each accounting period shall not exceed the amount of
interest actually incurred to the relevant borrowings in the current period.When the Group recognizes the effective interest rate of the borrowings, that means to discount the future cash flow of theborrowings during the expected duration or the applicable shorter period to be the interest rate used of the recognized amount duringthe initial recognition of the borrowings.During the capitalization period, should capitalize the exchange differences of the principal and the interests of the Foreign currencyspecific borrowings and record which in the cost of the assets that meet with the conditions of the capitalization. As for the exchangedifferences from the principal and the interests of the other foreign currency borrowings except for the foreign currency specificborrowings, should be regarded as the financial expenses and included in the current gains and losses.
19. Intangible Assets(1) Pricing Method, Useful life and Impairment test
(a) Pricing method of intangible assetsIntangible assets are stated in the balance sheet at cost less accumulated amortization (where the estimated useful life is finite) andimpairment losses. For an intangible asset with finite useful life, its cost less residual value and impairment losses are amortized onthe straight-line method over its estimated useful life, unless the intangible assets are classified as held for sale.(b) Estimated useful life of intangible assets with limited useful lifeAs for the intangible assets with limited useful life, after deducting the salvage of the cost and the impairment provision, the Groupamortized the intangible assets through straight line method within the expected service life, unless the intangible assets are classifiedas held for sale.Item Estimated useful life BasisLand use rights 40-50 years Period stipulated by the Land Use Right CertificateSpecial technology 9-20 years Period agreed in the contract or estimated to bring economic benefits for the Company
Computer software 3-10 years Period agreed in the contract or estimated to bring economic benefits for the CompanyPatent and others 5-10 years Period agreed in the contract or estimated to bring economic benefits for the Company(c) Judgment basis of intangible assets with uncertain useful lifeAn intangible asset is regarded as having an indefinite useful life and is not amortized 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 doesn’t have any
intangible assets with indefinite useful lives.(d) Withdrawal of impairment provision of intangible assetsIf any indication exists that an asset may be impaired, the recoverable amount of the asset is estimated. The recoverable amount of anasset, asset group or set of asset groups is the higher of its fair value less costs to sell and its present value of expected future cashflows. An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cashinflows from other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification ofan asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from
other assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’soperations and how management makes decisions about continuing or disposing of the Group’s assets. An asset’s fair value less coststo sell is the amount determined by the price of a sale agreement in an arm’s length transaction, less the costs that are directly
attributable to the disposal of the asset. The present value of expected future cash flows of an asset is determined by discountingfuture cash flows, estimated to be derived from continuing use of the asset and from its ultimate disposal, to their present value usinga pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and chargedto profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment lossesrelated to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or setof asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell(if determinable), the present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognized, it is not reserved in a subsequent period.
(2) Accounting Policies of Internal R & D Expenses
(a) Criteria of dividing the research phase and development phase of internal R&D projectResearch is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge andunderstanding. Development is the application of research findings or other knowledge to a plan or design for the production of newor substantially improved materials, devices, or products before the start of commercial production or use.(b) Calculation of the expenditures of internal R&D projectExpenditures of internal R&D project of the Group divides into expenditures on the research phase and expenditures on thedevelopment phase.Expenditures on the research phase are recognized in profit or loss when incurred. Expenditures on the development phase arecapitalized if development costs can be measured reliably, the product or process is technically and commercially feasible, and theGroup intends to and has sufficient resources to complete development. Capitalized development costs are stated at cost lessimpairment losses in the balance sheet. Other development expenditures are recognized as expenses in the period in which they areincurred.
20. Impairment of Long-term Assets
The Group executes the impairment test on the assets with impairment indication and evaluates the recoverable amount of the assets.
Besides, whether there is impairment indication, the Group will evaluate the recoverable amount of the goodwill at the year-end. TheGroup will amortize the book value of the good according to the benefit situation in the synergistic effect from the enterprise mergerby the relevant assets group or the combination of the assets group and based on which executes the impairment test of the goodwill.The recoverable amount of an asset, asset group or set of asset groups is the higher of its fair value less costs to sell and its presentvalue of expected future cash flows. An asset group is the smallest identifiable group of assets that generates cash inflows that arelargely independent of the cash inflows from other assets or asset groups. Fair value refers to the price received from selling an assetor paid for transferring a liability in the orderly transaction on the measurement date by the market participants. When the Groupevaluating the fair value, should consider the characteristics when executing pricing of the relevant assets or liabilities on themeasurement date of the market participants (including the assets conditions and the location, the restrictions of the sales or use ofthe assets and so on) as well as adopt the evaluation technology that applicable under the current circumstance and owns adequateavailable data and supported by other information. The evaluation technology used mainly including the market method, equitymethod and cost method.An asset group is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflowsfrom other assets or asset groups. An asset group is composed of assets directly relating to cash-generation. Identification of an assetgroup is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from other
assets or asset groups. In identifying an asset group, the Group also considers how management monitors the Group’s operations andhow management makes decisions about continuing or disposing of the Group’s assets.
The present value of expected future cash flows of an asset is determined by discounting future cash flows, estimated to be derivedfrom continuing use of the asset and from its ultimate disposal, to their present value using a pre-tax discount rate that reflects currentmarket assessments of the time value of money and the risks specific to the asset.If the result of the recoverable amount calculation indicates that the recoverable amount of an asset is less than its carrying amount,the carrying amount of the asset is reduced to its recoverable amount. That reduction is recognized as an impairment loss and chargedto profit or loss for the current period. A provision for impairment loss of the asset is recognized accordingly. For impairment lossesrelated to an asset group or a set of asset groups, first reduce the carrying amount of any goodwill allocated to the asset group or setof asset groups, and then reduce the carrying amount of the other assets in the asset group or set of asset groups on a pro rata basis.However, the carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell(if determinable), the present value of expected future cash flows (if determinable) and zero.Once an impairment loss is recognized, it is not reserved in a subsequent period.
21. Amortization Method of Long-term Deferred Expenses
Long-term deferred expenses are amortized on a straight-line method within the benefit period:
Item Amortization period (years)Cost of construction and use of public facilities 10-15 yearsCost of operating lease assets improvement 3-10 yearsOthers 2-10 years
22. Payroll(1) Accounting Treatment of Short-term Compensation
During the accounting period of an employee' providing services, the Group recognizes the actual occurred or withdrawn workerwages, bonuses and the social insurance charges such as the medical insurance premiums, industrial injury insurance premium andbirth insurance premium according to the specified benchmark and proportion as well as the housing funds as the liabilities and
records which in the current gains and losses or the relevant asset costs.
(2) Accounting Treatment of the Welfare after Demission
Welfare after demission refers to the various of the compensation and welfare provided after the retirement of the employees or afterthe labor relation relieved by the enterprise owning to not receiving the service provided by the employees, except for the short-termcompensation and the demission welfare. Specifically divided as defined contribution plans and defined benefit plans. The definedcontribution plans participated by the Group including: the basic endowment insurance and unemployment insurance among thesocial security system set up and managed by the government institutions according to the requirements of the relevant Chineseregulations of the employees of the Group and the corporation pension plan approved and set up by the relevant departmentsaccording to the relevant policies of the state enterprise annuity system. The payment amount of the basic endowment insurance andthe unemployment insurance should be calculated according to the benchmark and the proportion stipulated by the nation. Theenterprise annuity should be withdrawn according to the certain proportion of the total amount of the worker wages of the employeesvoluntarily participated in the pension plan. During the accounting period of the employees providing the service, the Companyrecognizes the deposited amount as the liabilities and records in the current gains and losses or the relevant asset costs. The Groupnot involved with any defined benefit plans.
(3) Accounting Treatment of the Demission Welfare
The Group relieves the labor relations with the employees before the maturity of the labor contracts or puts forward the advice forcompensation for encouraging the employees voluntarily accept the reduction, and recognizes the liabilities caused from thedemission welfare on the earlier date of the followings and at the same time records which in the current gains and losses:
? When the Group could not unilaterally withdraw the demission welfare provided owning to the termination of the labor relations or
the reduction advice:
? The Group owns specific and formal reorganization plan that concerning the payment of the demission welfare; and the time when
the reorganization plan had been executed or had announced the main content of the plan to the parties influenced by which, then ledall parties formed the rational expectations about the Group is going to execute the reorganization.
(4) Accounting Treatment of the Welfare of Other Long-term Staffs
The welfare of other long-term staffs refers to the all the employees compensation except for the short-term compensation, welfareafter demission and demission welfare, which including the long-term compensated absences, long-term sociability benefits andlong-term profit sharing plan and so on. The Group not involved with any other long-term employee's welfare.
23. Estimated Liabilities
(1) Criteria of estimated liabilitiesA provision is recognized for an obligation related to a contingency if the Group has a present obligation that can be estimatedreliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.(2) Measurement of estimated liabilitiesThe estimated liabilities should be executed the initial measurement according to the best estimated number needed to be spent whencaring out the relevant current obligations. As for those with significant influences on the time value of money, the estimatedliabilities should be confirmed according to the amount after the discount of the estimated future cash flow. When recognizing thebest estimated number, the Group comprehensively considers the factors such as the risks, uncertainty and the time value of moneyrelated to the contingencies. There is a contiguous range of the needed expenses and the possibility of various results within the rangeis the same and the best estimated number should be recognized according to the mediant within the range; under other circumstance,the best estimated number should be handled respectively according to the following situations:
? If the contingencies involve with a single item, should be recognized according to the most likely happened amount.? If the contingencies involve with various items, should be recognized according to the calculation of various possible results and
the relevant probabilities.The Group executes the reexamination of the book value of the estimated liabilities on the balance sheet date and adjusts the bookvalue according to the current best estimated number.
24. Revenue
Is the Company subject to any disclosure requirements of special industry?No
Revenue is the gross inflow of economic benefit arising in the course of the Group’s ordinary activities when the inflows result inincrease in shareholder’s equity, other than increase relating to contributions from shareholders. Revenue is recognized in profit or
loss when it is probable that the revenue and costs can be measured reliably and the economic benefits will flow to the Group, andthe following respective conditions are met.(1) Selling commoditiesRevenue from sale of goods is recognized when all of the general conditions stated above and following conditions are satisfied:
– The significant risks and rewards of ownership of goods have been transferred to the buyer;– The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control
over the goods sold.Revenue from the sale of goods is measured at the fair value of the considerations received or receivable under the sales contract oragreement.The Group appointed different trading methods with buyers in the sales contract. The Company judges the main risks and time-pointof remuneration transfer according to trading methods and recognizes the income correspondingly.(2) Providing labor servicesThe Group confirms amount of rendering services according to received or receivable contract or treaty.In balance sheet date, if the outcome of labor services can be reliably estimated, revenue from rendering services shall be confirmedby percentage-of-completion method, progress of rendering services shall be affirmed by measurement of finished works.As for the outcome of labor services cannot be reliably estimated, if labor services expenses estimated can receive compensation,revenue from rendering services shall be confirmed by labor services costs and carried down by the same amount; if labor servicesexpenses estimated cannot receive compensation, services costs shall be reckoned into current loss and gain and revenue fromproviding labor services shall not be confirmed.(3) Construction contract revenueOn balance sheet date, if the results of the construction contract could be reliable evaluated, the contract income and the contractexpenditure should be recognized according to the completion percentage method.The Group recognized the progress of the contract completion according to the percentage of the accumulative actual happenedcontract cost among the expected total contract cost.
If the result of the construction contract couldn’t be reliable evaluated, the Group should dispose according to the following situations
respectively:
? If the contract cost could be returned, the contract income should be recognized according to the actual contract cost which could
be returned, and the contract cost should be recognized as contract expenditure during the period when happened;
? If the contract cost could not be returned, should be recognized as contract expenditure at the time when happened, and not be
recognized as contract income.(4) Interest revenueInterest revenue is recognized according to the calculation of the time of lending monetary capital and the effective interest rate.
(5) Royalty revenue of the intangible assetsRoyalty revenue of the intangible assets is recognized according to the charging time and methods agreed by the contracts or theprotocol.
25. Government Subsidies(1) Judgment Basis and Accounting Treatment of Government Subsidies Related to Assets
If the Group first obtains government grants related to assets and then recognises 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 areinitially depreciated or amortized; or the deferred income is written off against the carrying amount of the asset when the assetbecomes ready for its intended status or intended use. If the Group obtains government grants related to the assets after relevantlong-term assets are put into use, deferred income is included in profit and loss based on a reasonable and systematic approach bystages within the remaining useful life of relevant assets, or the deferred income is written off against the carrying amount of relevantasset when the grants are obtained; the assets shall be depreciated or amortized based on the carrying amount after being offset andthe remaining useful life of relevant assets.
(2) Judgment Basis and Accounting Treatment of Government Subsidies Related to Profits
If they are used to compensate for related costs or losses of the Group in the future period, it shall be recognized as deferred income,and included in profit and loss or used to offset related costs; otherwise it shall be directly included in profit and loss or used to offsetrelated costs.In respect of the policy-based preferential loan interest subsidy obtained by the Group, if the interest subsidy is appropriated to thelending bank which shall provide loans to the Group at the policy-based preferential interest rate, the actual loan amount is used asthe entry value and relevant borrowing costs are calculated on the basis of the loan principal and the preferential interest rate. If theinterest subsidy is directly appropriated to the Group, relevant borrowing costs shall be offset by corresponding interest subsidy.
26. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Recognition basis of deferred income tax assetsThe Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a differencebetween the carrying amount of an asset or liability and its tax base (temporary difference). For any deductible loss that can becarried forward to the next year to deduct the income tax according to the stipulations of tax law, relevant deferred income tax assetsshall be recognized. The deferred income tax asset shall be determined to the extent that the amount of taxable income to be offset bythe deductible loss or tax deduction to be likely obtained. For the deductible temporary difference relating to the investments of thesubsidiary companies, associated enterprises and joint enterprises, the enterprise shall recognize the corresponding deferred incometax assets for those that meet the following requirements: the temporary differences are likely to be reversed in the expected future;and it is likely to acquire any amount of taxable income that may be used for deducting the deductible temporary differences.(2) Recognition basis of deferred income tax liabilitiesThe Group uses the balance sheet liability method to calculate its income tax, which is recognized in accordance with a differencebetween the carrying amount of an asset or liability and its tax base (temporary difference). As for the temporary difference from theinitial recognition of goodwill, no deferred income tax liabilities shall be recognized. The taxable temporary differences relating tothe investments of subsidiary companies, associated enterprises and joint enterprises shall recognized as corresponding deferredincome tax liabilities, however, excluding those that simultaneously satisfy the following conditions: the investing enterprise can
control the time of the reverse of temporary differences; and the temporary differences are unlikely to reverse in the excepted future.
27. Lease(1) Accounting Treatment of Operating Lease
Rental payments under operating leases are recognized as costs or expenses on a straight-line basis over the lease term.Fixed assets leased out under operating leases, except for investment property (see Notes V. 16), are depreciated in accordance with
the Group’s depreciation policies described in Notes V. 20. Impairment losses are provided for in accordance with the accounting
policy. Income derived from operating leases is recognized in the income statement using the straight-line method over the lease term.If initial direct costs incurred in respect of the assets leased out are material, the costs are initially capitalized and subsequentlyamortized in profit or loss over the lease term on the same basis as the lease income. Otherwise, the costs are charged to profit or lossimmediately.
(2) Accounting Treatments of Financial Lease
When the Group acquires an asset under a finance lease, the asset is measured at an amount equal to the lower of its faire values andthe present value of the minimum lease payments, each determined at the inception of the lease. The minimum lease payments arerecorded as long-term payables. The difference between the value of the leased assets and the minimum lease payments is recognizedas unrecognized finance charges. Initial direct costs that are attributable to a finance lease incurred by the Group are added to theamounts recognized for the leased asset. Depreciation and impairment losses are accounted for in accordance with the accountingpolicies described in Notes V. 16 and Notes V. 20, respectively.If there is reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease term, the leased asset isdepreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorter of the lease term and itsestimated useful life.Unrecognized finance charge under finance lease is amortized using an effective interest method over the lease term. Theamortization is accounted for in accordance with policies of borrowing costs. At the balance sheet date, long-term payables arisingfrom finance leases, net of the unrecognized finance charges, are presented into long-term payables and non-current liabilities duewithin one year, respectively in the balance sheet.The economic essence of leaseback formed financial lease is mortgage loan. The Company takes the received financing asborrowings to report, and conducts subsequent measurements for long-term accounts payable according to amortized costs byeffective interest method.
28. Other Significant Accounting Policies and Estimates
(1) Related partiesIf a party has the power to control, jointly control or exercise significant influence over another party, or vice versa, or where two ormore parties are subject to common control, joint control, or significant influence from another party, they are considered to berelated parties. Related parties may be individuals or enterprises. Enterprises with which the Company is under common control onlyfrom the State and that have no other related party relationships are not regarded as related parties of the Group. Related parties of theGroup and the Company include, but are not limited to:
(a) the Company’s parent(b) the Company’s subsidiaries(c) enterprises that are controlled by the Company’s parent
(d) investors that have joint control or over exercise significant influence over the Group(e) enterprise or individuals if a party has control, joint control or significant influence over both the enterprises or individuals and
the Group(f) joint ventures of the Group, including subsidies of joint ventures(g) associates of the Group, including subsidies of associates(h) principal individual investors and close family members of such individuals(i) key management personnel of the Group and close family members of such individuals
(j) key management personnel of the Company’s parent(k) close family members of key management personnel of the Company’s parent; and
(l) other enterprises that are jointly controlled or significantly influenced by principal individual investors, key managementpersonnel of the Group, and close family members of such individuals.Besides the related parties stated above determined in accordance with the requirements of CAS, the following enterprises and
individuals are considered as (but not restricted to) related parties based on the disclosure requirements of “AdministrativeProcedures on the Information Disclosures of Listed Companies” issued by the CSRC:
(m) enterprises, or persons that act in concert, that hold 5% or more of the Company’s shares(n) individuals and close family members of such individuals who directly or indirectly hold 5% or more of the Company’s shares
(o) enterprises that satisfy any of the aforesaid conditions in (a), (c) and (m) during the past 12 months or will satisfy them within thenext 12 months pursuant to a relevant agreement(p) individuals who satisfy any of the aforesaid conditions in (i), (j) and (n) during the past 12 months or will satisfy them within thenext 12 months pursuant to a relevant agreement; and(q) enterprises, other than the Company and subsidiaries controlled by the Company, which are controlled directly or indirectly by anindividual defined in (i), (j), (n) or (p), or in which such an individual assumes the position of a director or senior executive.
29. Changes in Critical Accounting Policies and Accounting Estimates(1) Changes in Critical Accounting Policies
□ Applicable √ Not applicable
(2) Changes in Critical Accounting Estimates
□ Applicable √ Not applicable
30. Others
Naught
VI. Taxation
1. Main Taxes and Tax Rate
| Category of taxes | Tax basis | Tax rate |
| VAT | Output VAT is calculated on product sales and taxable services revenue, based on tax laws. The remaining balance of output VAT, after subtracting the deductible input VAT of the period, is VAT payable. | 6%, 10%, 11%, 16%, 17% |
| Consumption tax | No | Naught |
| City maintenance and construction tax | Based on VAT payable and the VAT tax free for the Period | 7%, 5% |
| Enterprise income tax | Based on taxable revenue | 15%-25% |
| Education surcharge and local education surcharge | Based on VAT payable and the VAT tax free for the Period | 3%, 2% |
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rateAccording to the new tax law, except for the following tax benefits for certain subsidiaries and local tax rates for overseassubsidiaries, the tax rate for all the other entities within the Group is 25%.
| Name | Income tax rate |
| BOE Technology Group Co., Ltd. | 15% |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 15% |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 15% |
| Hefei BOE Optoelectronics Technology Co., Ltd. | 15% |
| Beijing BOE Display Technology Co., Ltd. | 15% |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | 15% |
| Erdos Yuansheng Optoelectronics Co., Ltd. | 15% |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 15% |
| BOE (Hebei) Mobile Display Technology Co., Ltd. | 15% |
| BOE Optical Science and Technology Co., Ltd. | 15% |
| Beijing BOE Tea Valley Electronic Co., Ltd. | 15% |
| Xiamen BOE Electronic Co., Ltd. | 15% |
| Hefei BOE Display Light Source Co., Ltd. | 15% |
| Chongqing BOE Display Lighting Co., Ltd. | 15% |
| Beijing BOE Dedicated Display Technology Co., Ltd. | 15% |
| Beijing BOE Vacuum Electronics Co., Ltd. | 15% |
| Beijing BOE Vacuum Technology Co., Ltd. | 15% |
| Beijing BOE Semi-conductor Co., Ltd. | 15% |
| Hefei BOE Semi-conductor Co., Ltd. | 15% |
| Beijing Asahi Electron Material Co., Ltd. | 15% |
| Beijing BOE Energy Technology Co., Ltd. | 15% |
| Beijing BOE Multimedia Technology Co., Ltd. | 15% |
| Varitronix (Heyuan) Display Technology Co., Ltd | 15% |
2. Tax Preference
Naught
3. Others
Naught
VII. Notes on Major Items in Consolidated Financial Statements of the Company
1. Monetary Funds
Unit: RMB
| Item | Ending balance | Beginning balance |
| Cash on hand | 729,517.00 | 526,764.00 |
| Bank deposits | 43,048,946,319.00 | 47,912,760,611.00 |
| Other monetary funds | 7,532,234,587.00 | 9,215,372,201.00 |
| Total | 50,581,910,423.00 | 57,128,659,576.00 |
| Of which: the total amount deposited in overseas | 4,359,724,940.00 | 3,341,984,398.00 |
Other notesOf which: the total amount deposited in overseas was equivalent to RMB 4,359,724,940.On 30 June 2018, the Company took RMB149,096,051 and US$49,729,540 (Y2017: RMB1,164,000,000 and US$ 60,159,875) of theother monetary capital as the pledge for acquiring the short-term borrowings, and took RMB1,452,547,192 and US$18,500,000(Y2017: RMB1,207,705,322 and USD$63,000,000) as the pledge for acquiring the long-term borrowings. The rest of the otherrestricted monetary capital equivalent to RMB5,438,820,015, and they are mainly the margin deposits for security deposited in thebank.
2. Derivative Financial Assets
□ Applicable √ Not applicable
3. Notes Receivable(1) Notes Receivable Listed by Category
Unit: RMB
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 533,255,633.00 | 824,873,475.00 |
| Commercial acceptance bill | 6,896,015.00 | 8,394,652.00 |
| Total | 540,151,648.00 | 833,268,127.00 |
(2) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
| Item | Amount |
| Bank acceptance bill | 77,761,441.00 |
| Commercial acceptance bill | 0.00 |
| Total | 77,761,441.00 |
(3) Notes Receivable which had Endorsed by the Company or had Discounted and had not Due on theBalance Sheet Date at the Period-end
Unit: RMB
| Item | Amount of recognition termination at the period-end | Amount of not terminated recognition at the period-end |
| Bank acceptance bill | 0.00 | 259,852,574.00 |
| Commercial acceptance bill | 0.00 | 0.00 |
| Total | 0.00 | 259,852,574.00 |
(4) Notes Transferred into Accounts Receivable by the Company Due to the Nonperformance of Drawer atthe Period-end
Unit: RMB
| Item | Amount |
| Commercial acceptance bill | 0.00 |
| Total | 0.00 |
Other notes
4. Accounts Receivable(1) Accounts Receivable Disclosed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Accounts receivable with significant single amount for which bad debt provision separately accrued | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Accounts receivable withdrawn bad debt provision according to credit risks characteristics | 17,613,207,459.00 | 99.71% | 265,952,428.00 | 1.51% | 17,347,255,031.00 | 15,767,136,659.00 | 99.68% | 262,640,383.00 | 1.67% | 15,504,496,276.00 |
| Accounts receivable with insignificant single amount for which bad debt provision separately accrued | 50,510,581.00 | 0.29% | 41,732,583.00 | 82.62% | 8,777,998.00 | 51,313,710.00 | 0.32% | 42,046,734.00 | 81.94% | 9,266,976.00 |
| Total | 17,663,718,040.00 | 100.00% | 307,685,011.00 | 1.74% | 17,356,033,029.00 | 15,818,450,369.00 | 100.00% | 304,687,117.00 | 1.93% | 15,513,763,252.00 |
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
| Name | Accounts receivable | Bad debt provision | Withdrawal proportion |
| Credit risks characteristics | 17,613,207,459.00 | 265,952,428.00 | 1.51% |
(2) Accounts Receivable Withdrawn, Reversed or Collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB510,083.00; the amount of the collected or reversed part during the Reporting Period was ofRMB153,235.00, among which the significant collected or reversed bad debt provision:
Unit: RMB
| Name of the unit | Amount | Method |
| Naught |
(3) The Actual Write-off Accounts Receivable
Unit: RMB
| Item | Amount |
| Customer 1 | 626,343.00 |
Among which the significant write-off accounts receivable:
Unit: RMB
| Name of the unit | Nature | Amount | Reasons | Performed write-off procedure | Generated from connected transactions or not |
| Naught |
Notes for write-off accounts receivable:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected According to the Arrears Party
The total amount of the accounts receivable of the top 5 of the Group at the year-end was of RMB8,374,359,263.00 that covered47.41%of the total amount of the closing balance of the accounts receivable at the year-end, which no need to withdraw the bad debtprovision after the assessment.
(5) Account Receivable which Terminate the Recognition owning to the Transfer of the Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continues Involvement ofAccounts Receivable
NaughtOther notes:
Naught
5. Prepayment(1) List by Aging Analysis
Unit: RMB
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 699,829,606.00 | 92.64% | 568,849,167.00 | 96.89% |
| 1 to 2 years | 53,019,337.00 | 7.02% | 17,188,654.00 | 2.93% |
| 2 to 3 years | 1,651,885.00 | 0.22% | 606,393.00 | 0.10% |
| Over 3 years | 932,602.00 | 0.12% | 482,537.00 | 0.08% |
| Total | 755,433,430.00 | -- | 587,126,751.00 | -- |
The reason why the prepayments with significant amount and aging over one year had not settled in time:
No such cases in the Reporting Period.
(2) Top 5 Prepayments in Ending Balance Collected according to the Prepayment Target
The total amount of the prepayment of the top 5 of the Group at the year-end was of RMB317,082,522.00 that covered 41.97%% ofthe total amount of the closing balance of the prepayment at the year-end.Other notes: Naught
6. Interest Receivable(1) Category of Interest Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Fixed time deposit | 127,018,762.00 | 88,981,946.00 |
| Entrusted loans | 0.00 | 0.00 |
| Bond investment | 0.00 | 646,613.00 |
| Total | 127,018,762.00 | 89,628,559.00 |
(2) Significant Overdue Interest
| Borrowing unit | Ending balance | Time | Reasons | Impairment occurred or not and its criterion |
| Naught |
Other notes:
No such cases in the Reporting Period.
7. Dividend Receivable(1) Dividend Receivable
Unit: RMB
| Item (or investees) | Ending balance | Beginning balance |
| TPV Technology Co., Ltd | 196,070.00 | 0.00 |
| Beijing Electronic City Investment and Development Group Co., Ltd. | 1,875,523.00 | 0.00 |
| Bank of Chongqing Co., Ltd. | 2,973,010.00 | 0.00 |
| New Century Medical Treatment Holdings Co., Ltd | 905,637.00 | 0.00 |
| Total | 5,950,240.00 | 0.00 |
(2) Significant Dividend Receivable with Aging over 1 Year
Unit: RMB
| Item (or investees) | Ending balance | Aging | Reasons | Impairment occurred or not and its criterion |
| Naught |
Other notes:
No such cases in the Reporting Period.
8. Other Accounts Receivable(1) Other Accounts Receivable Disclosed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Other accounts receivable with significant single amount for which bad debt provision separately accrued | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Other accounts receivable withdrawn bad debt provision according to credit risks characteristics | 608,318,659.00 | 99.94% | 0.00 | 0.00% | 608,318,659.00 | 728,395,573.00 | 100.00% | 0.00 | 0.00% | 728,395,573.00 |
| Other accounts receivable with insignificant single amount for | 340,513.00 | 0.06% | 340,513.00 | 100.00% | 0.00 | 509,257.00 | 0.00% | 509,257.00 | 100.00% | 0.00 |
| which bad debt provision separately accrued | ||||||||||
| Total | 608,659,172.00 | 100.00% | 340,513.00 | 0.06% | 608,318,659.00 | 728,904,830.00 | 100.00% | 509,257.00 | 0.07% | 728,395,573.00 |
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
√Applicable □ Not applicable
| Name | Other accounts receivable | Bad debt provision | Withdrawal proportion |
| Credit risks characteristics | 608,318,659.00 | 0.00 | 0.00% |
(2) Other Accounts Receivable Withdrawn, Reversed or Collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB1,351.00; the amount of the collected or reversed part during the Reporting Period was of RMB0.00.Among which the significant collected or reversed bad debt provision:
Unit: RMB
| Name of the unit | Amount | Method | |
| Naught | |||
(3) Particulars of the Actual Write-off Other Accounts Receivable during the Reporting Period
Unit: RMB
| Item | Amount |
| Customer | 170,097.00 |
Among which the significant write-off other accounts receivable:
Unit: RMB
| Name of the unit | Nature | Amount | Reasons | Performed write-off procedure | Generated from connected transactions or not |
| Naught |
Notes for write-off other accounts receivable:
Naught
(4) Other Account Receivable Classified by Account Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| VAT refunds | 5,501,516.00 | 179,152,619.00 |
| Equity transfer fee of accounts receivable | 200,000,000.00 | 200,000,000.00 |
| Cash deposit and cash pledge | 169,249,228.00 | 154,724,906.00 |
| Others | 233,908,428.00 | 195,027,305.00 |
| Total | 608,659,172.00 | 728,904,830.00 |
(5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
| Name of units | Nature | Ending balance | Aging | Proportion to total ending balance of other accounts receivable | Ending balance of bad debt provision |
| Customer 1 | Equity transfer fee of accounts receivable | 200,000,000.00 | Over 3 years | 32.86% | 0.00 |
| Customer 2 | Cash deposit and cash pledge | 47,500,000.00 | 2 to 3 years, over 3 years | 7.80% | 0.00 |
| Customer 3 | Cash deposit and cash pledge | 42,951,050.63 | Within one year | 7.06% | 0.00 |
| Customer 4 | Cash deposit and cash pledge | 27,904,527.95 | Within one year, 2 to 3 years, over 3 years | 4.58% | 0.00 |
| Customer 5 | Others | 16,495,000.00 | over 3 years | 2.71% | 0.00 |
| Total | -- | 334,850,578.58 | -- | 55.01% | 0.00 |
(6) Accounts Receivable Involved with Government Subsidies
Unit: RMB
| Name of units | Name of the item | Ending balance | Ending aging | Expected time, amount, and basis |
Naught
(7) Other Account Receivable which Terminate the Recognition owning to the Transfer of the FinancialAssets
Naught
(8) The Amount of the Assets and Liabilities Formed by the Transfer and the Continues Involvement ofOther Accounts Receivable
NaughtOther notes:
Naught
9. Inventory(1) Category of Inventory
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Falling price reserves | Carrying value | Carrying amount | Falling price reserves | Carrying value | |
| Raw materials | 3,925,352,967.00 | 326,185,834.00 | 3,599,167,133.00 | 3,663,568,064.00 | 312,167,170.00 | 3,351,400,894.00 |
| Goods in process | 1,248,534,575.00 | 102,717,184.00 | 1,145,817,391.00 | 1,442,250,856.00 | 130,466,876.00 | 1,311,783,980.00 |
| Inventory goods | 7,430,647,824.00 | 1,417,076,191.00 | 6,013,571,633.00 | 5,742,195,757.00 | 1,546,545,280.00 | 4,195,650,477.00 |
| Turnover materials | 175,081,350.00 | 95,285.00 | 174,986,065.00 | 99,620,537.00 | 736,507.00 | 98,884,030.00 |
| Consumptive biological assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Finished but unsettled assets generated from, | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| construction contract | ||||||
| Total | 12,779,616,716.00 | 1,846,074,494.00 | 10,933,542,222.00 | 10,947,635,214.00 | 1,989,915,833.00 | 8,957,719,381.00 |
Whether the Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No. 4 - Listed companies engaged in seed industry and planting businessNo
(2) Falling Price Reserves of Inventory
Unit: RMB
| Item | Beginning balance | Increased amount | Decreased amount | Ending balance | ||
| Withdrawal | Other | Reverse or write-off | Other | |||
| Raw materials | 312,167,170.00 | 161,945,595.00 | 0.00 | 147,926,931.00 | 0.00 | 326,185,834.00 |
| Goods in process | 130,466,876.00 | 66,657,744.00 | 0.00 | 94,407,436.00 | 0.00 | 102,717,184.00 |
| Inventory goods | 1,546,545,280.00 | 618,491,746.00 | 0.00 | 747,960,835.00 | 0.00 | 1,417,076,191.00 |
| Turnover materials | 736,507.00 | 6,057.00 | 0.00 | 647,279.00 | 0.00 | 95,285.00 |
| Consumptive biological assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Finished but unsettled assets generated from, construction contract | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 1,989,915,833.00 | 847,101,142.00 | 0.00 | 990,942,481.00 | 0.00 | 1,846,074,494.00 |
(3) Notes of the Ending Balance of the Inventory which Includes Capitalized Borrowing Expenses
Naught
(4) Completed but Unsettled Assets Resulting from Construction Contracts at the End of the Period
Unit: RMB
| Item | Amount |
| Completed but unsettled assets resulting from construction contracts at the end of the period | 0.00 |
Other notes:
Naught
10. Non-current Assets Due within One Year
Unit: RMB
| Item | Ending balance | Beginning balance |
| Long-term accounts receivable due within one year | 0.00 | 17,303,152.00 |
| Total | 0.00 | 17,303,152.00 |
Other notes:
Naught
11. Other Current Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| VAT retained | 5,242,918,603.00 | 4,847,422,522.00 |
| Input tax to be verified and deducted | 2,089,392,625.00 | 1,198,408,412.00 |
| Financial products | 11,375,421,041.00 | 9,791,137,808.00 |
| Other | 222,296,108.00 | 87,465,236.00 |
| Total | 18,930,028,377.00 | 15,924,433,978.00 |
Other notes:
Naught
12. Available-for-sale Financial Assets(1) List of Available-for-sale Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| Available-for-sale debt instruments: | 11,553,581.00 | 0.00 | 11,553,581.00 | 14,912,146.00 | 0.00 | 14,912,146.00 |
| Available-for-sale equity instruments: | 915,749,687.00 | 150,279,655.00 | 765,470,032.00 | 995,266,865.00 | 150,279,655.00 | 844,987,210.00 |
| Measured at fair value | 567,486,122.00 | 150,099,655.00 | 417,386,467.00 | 662,938,045.00 | 150,099,655.00 | 512,838,390.00 |
| Measured at cost | 348,263,565.00 | 180,000.00 | 348,083,565.00 | 332,328,820.00 | 180,000.00 | 332,148,820.00 |
| Total | 927,303,268.00 | 150,279,655.00 | 777,023,613.00 | 1,010,179,011.00 | 150,279,655.00 | 859,899,356.00 |
(2) Available-for-sale Financial Assets at Fair Value at the Period-end
Unit: RMB
| Category | Available-for-sale equity instrument | Available-for-sale debt instrument | Total |
| Cost of the equity instruments/amortized cost of the liabilities instruments | 555,840,180.00 | 11,765,553.00 | 567,605,733.00 |
| Fair value | 417,386,467.00 | 11,553,581.00 | 428,940,048.00 |
| Changes amount of the fair value accumulatively recorded in other comprehensive income | 11,645,942.00 | -211,972.00 | 11,433,970.00 |
| Withdrawn impairment amount | 150,099,655.00 | 0.00 | 150,099,655.00 |
(3) Available-for-sale Financial Assets at Cost at the Period-end
Unit: RMB
| Investee | Carrying amount | Depreciation reserve | Shareholding proportion among the investees | Current cash bonus | ||||||
| Period-beginning | Increase | Decrease | Period-end | Period-beginning | Increase | Decrease | Period-end | |||
| Teralane Semiconductor Inc | 11,868,000.00 | 0.00 | 0.00 | 11,868,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 7.29% | 0.00 |
| Zhejiang BOE Display Technology Co., Ltd. | 321,256.00 | 0.00 | 0.00 | 321,256.00 | 0.00 | 0.00 | 0.00 | 0.00 | 7.03% | 0.00 |
| Zhejiang Qiusheng Optoelectronics Technology Co., Ltd. | 248,776.00 | 0.00 | 0.00 | 248,776.00 | 0.00 | 0.00 | 0.00 | 0.00 | 5.09% | 0.00 |
| Meta Company | 32,670,951.00 | 411,999.00 | 0.00 | 33,082,950.00 | 0.00 | 0.00 | 0.00 | 0.00 | 5.66% | 0.00 |
| Danhua Capital, L.P. | 24,503,250.00 | 309,000.00 | 0.00 | 24,812,250.00 | 0.00 | 0.00 | 0.00 | 0.00 | 5.48% | 0.00 |
| Danhua Capital II,L.P. | 34,304,550.00 | 13,665,800.00 | 0.00 | 47,970,350.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3.29% | 0.00 |
| Beijing Digital TV National Engineering Laboratory Co., | 6,250,000.00 | 0.00 | 0.00 | 6,250,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 12.50% | 0.00 |
| Ltd. | ||||||||||
| Kateeva Inc. | 78,051,019.00 | 984,268.00 | 0.00 | 79,035,287.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3.51% | 0.00 |
| DEPICTINC. | 13,068,400.00 | 164,800.00 | 0.00 | 13,233,200.00 | 0.00 | 0.00 | 0.00 | 0.00 | 22.20% | 0.00 |
| MOOVINC. | 26,244,971.00 | 330,964.00 | 0.00 | 26,575,935.00 | 0.00 | 0.00 | 0.00 | 0.00 | 6.48% | 0.00 |
| ZGLUEINC. | 9,801,289.00 | 123,600.00 | 0.00 | 9,924,889.00 | 0.00 | 0.00 | 0.00 | 0.00 | 6.00% | 0.00 |
| Nanosys INC | 49,006,500.00 | 618,000.00 | 0.00 | 49,624,500.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3.33% | 0.00 |
| Ceribell INC | 8,494,453.00 | 107,120.00 | 0.00 | 8,601,573.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3.81% | 0.00 |
| Baebies INC | 28,709,230.00 | 362,039.00 | 0.00 | 29,071,269.00 | 0.00 | 0.00 | 0.00 | 0.00 | 11.59% | 0.00 |
| Illumina Fund, L.P. | 5,605,265.00 | 1,857,168.00 | 0.00 | 7,462,433.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2.14% | 0.00 |
| Fabord Ltd. | 910.00 | 0.00 | 13.00 | 897.00 | 0.00 | 0.00 | 0.00 | 0.00 | 10.30% | 0.00 |
| Hefei Xinjing Electronic Materials Co., Ltd. | 3,000,000.00 | 0.00 | 3,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 15.00% | 0.00 |
| Other | 180,000.00 | 0.00 | 0.00 | 180,000.00 | 180,000.00 | 0.00 | 0.00 | 180,000.00 | 0.00 | |
| Total | 332,328,820.00 | 18,934,758.00 | 3,000,013.00 | 348,263,565.00 | 180,000.00 | 0.00 | 0.00 | 180,000.00 | -- | 0.00 |
(4) Changes of the Impairment of the Available-for-sale Financial Assets during the Reporting Period
Unit: RMB
| Category | Available-for-sale equity instruments | Available-for-sale debt instruments | Total |
| Withdrawn impairment balance at the period-beginning | 150,279,655.00 | 0.00 | 150,279,655.00 |
| Withdrawn amount of the period | 0.00 | 0.00 | 0.00 |
| Of which: transferred from other comprehensive income | 0.00 | 0.00 | 0.00 |
| Decreased in the period | 0.00 | 0.00 | 0.00 |
| Of which: recovered and reversed amount of the fair value after the period | 0.00 | 0.00 | 0.00 |
| Withdrawn impairment balance at the period-end | 150,279,655.00 | 0.00 | 150,279,655.00 |
(5) Explanations on Available-for-sale Equity Instruments with Serious or Non-transient Decline in Fair Value of the Period-end but without Provisions forImpairment
Unit: RMB
| Available-for-sale equity instrument | Investment cost | Fair value of period-end | Decline ratio of fair value to cost | Duration of sustained decline (month) | Amount of provisions for impairment withdrawn | Reason for no provisions for impairment |
| Naught |
Other notes:
Naught
13. Held-to-maturity Investments(1) List of Investment Held-to-maturity
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| Convertible bonds for HYDIS Technology | 17,960,946.00 | 17,960,946.00 | 0.00 | 17,960,946.00 | 17,960,946.00 | 0.00 |
| Total | 17,960,946.00 | 17,960,946.00 | 0.00 | 17,960,946.00 | 17,960,946.00 | 0.00 |
(2) Significant Held-to-maturity Investments at the Period-end
Unit: RMB
| Item | Par value | Coupon rate | Actual interest rate | Maturity date |
| None |
(3) Held-to-maturity Investments Reclassified in the Reporting Period
NaughtOther notes:
Naught
14. Long-term Equity Investment
Unit: RMB
| Investees | Beginning balance | Increase/decrease | Ending balance | Ending balance of depreciation reserve | |||||||
| Additional investment | Reduced investment | Gains and losses recognized under the equity method | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| Beijing BOE Yiyun Technology Co., Ltd. | 3,763,783.00 | 0.00 | 0.00 | -2,943,687.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 820,096.00 | 0.00 |
| Wuhan BOE Optoelectronics Co., Ltd. | 91,590,309.00 | 750,000,000.00 | 0.00 | 569,162.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 842,159,471.00 | 0.00 |
| Mianyang BOE Optoelectronics Co., Ltd. | 2,698,378,093.00 | 0.00 | 0.00 | -1,526,010.00 | 0.00 | 0.00 | 0.00 | 0.00 | -2,696,852,083.00 | 0.00 | 0.00 |
| Subtotal | 2,793,732,185.00 | 750,000,000.00 | 0.00 | -3,900,535.00 | 0.00 | 0.00 | 0.00 | 0.00 | -2,696,852,083.00 | 842,979,567.00 | 0.00 |
| II. Associated enterprises | |||||||||||
| Beijing Nissin Electronics Precision Component Co., Ltd. | 0.00 | 0.00 | 0.00 | 780,003.00 | 0.00 | 2,424,598.00 | 0.00 | 0.00 | 0.00 | 3,204,601.00 | 0.00 |
| Beijing Nittan Electronics Co., Ltd. | 53,786,835.00 | 0.00 | 0.00 | 4,982,517.00 | 0.00 | 0.00 | -3,000,000.00 | 0.00 | 0.00 | 55,769,352.00 | 0.00 |
| Beijing Yingfei Hailin Venture Capital Management Co., Ltd. | 373,361.00 | 0.00 | 0.00 | -338,738.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 34,623.00 | 0.00 |
| Ordos BOE Energy Investment Co., Ltd. (BOE Energy Investment) | 907,458,312.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 907,458,312.00 | 537,136,972.00 |
| Beijing Fly | 137,448,451.00 | 0.00 | 0.00 | 24,387.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 137,472,838.00 | 0.00 |
| Hailin Investment Center | |||||||||||
| TPV Display Technology (China) Co., Ltd. | 27,190,533.00 | 0.00 | 0.00 | -1,304,414.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 25,886,119.00 | 0.00 |
| Beijing Xindong Neng Investment Fund (limited partnership) | 1,472,249,231.00 | 150,000,000.00 | 0.00 | -5,997,801.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,616,251,430.00 | 0.00 |
| Beijing Xindong Neng Investment Management Co., Ltd. | 4,861,735.00 | 0.00 | 0.00 | 806,640.00 | 0.00 | 0.00 | -2,000,000.00 | 0.00 | 0.00 | 3,668,375.00 | 0.00 |
| Shenzhen Yunyinggu Technology Co., Ltd. | 35,483,897.00 | 0.00 | 0.00 | -11,959,303.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 23,524,594.00 | 0.00 |
| Beijing Xiaolong Technology Co., Ltd. | 23,981,997.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 23,981,997.00 | 0.00 |
| NewOn Technology Co., Ltd. | 3,708,174.00 | 0.00 | 0.00 | 0.00 | 31,942.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,740,116.00 | 0.00 |
| CnogaMedical Ltd. | 326,710,000.00 | 0.00 | 0.00 | 0.00 | 4,120,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 330,830,000.00 | 0.00 |
| SES-imagotag | 1,675,160,676.00 | 0.00 | 0.00 | -11,976,016.00 | 0.00 | 0.00 | 0.00 | 0.00 | -1,663,184,660.00 | 0.00 | 0.00 |
| Chongqing BOE Display Technology Co., Ltd. | 3,846,000.00 | 0.00 | 0.00 | -695,319.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,150,681.00 | 0.00 |
| Hefei Xinjing Electronic Materials Co., Ltd. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,000,000.00 | 3,000,000.00 | 0.00 |
| Subtotal | 4,672,259,202.00 | 150,000,000.00 | 0.00 | -25,678,044.00 | 4,151,942.00 | 2,424,598.00 | -5,000,000.00 | 0.00 | -1,660,184,660.00 | 3,137,973,038.00 | 537,136,972.00 |
| Total | 7,465,991,387.00 | 900,000,000.00 | 0.00 | -29,578,579.00 | 4,151,942.00 | 2,424,598.00 | -5,000,000.00 | 0.00 | -4,357,036,743.00 | 3,980,952,605.00 | 537,136,972.00 |
Other notes
15. Investment Property(1) Investment Property Adopted the Cost Measurement Mode
√ Applicable □ Not applicable
Unit: RMB
| Item | Houses and buildings | Land use right | Construction in progress | Total |
| I. Original carrying value | ||||
| 1. Beginning balance | 991,566,471.00 | 675,597,667.00 | 0.00 | 1,667,164,138.00 |
| 2. Increased amount of the period | 599,382.00 | 3,548,681.00 | 0.00 | 4,148,063.00 |
| (1) Outsourcing | 0.00 | 3,548,681.00 | 0.00 | 3,548,681.00 |
| (2) Transfer from inventory\fixed assets\construction in progress | 599,382.00 | 0.00 | 0.00 | 599,382.00 |
| (3) Enterprise combination increase | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Decreased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Other transfer | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Ending balance | 992,165,853.00 | 679,146,348.00 | 0.00 | 1,671,312,201.00 |
| II. Accumulative depreciation and accumulative amortization | ||||
| 1. Beginning balance | 258,094,437.00 | 112,407,496.00 | 0.00 | 370,501,933.00 |
| 2. Increased amount of the period | 9,703,810.00 | 13,035,688.00 | 0.00 | 22,739,498.00 |
| (1) Withdrawal or amortization | 9,703,810.00 | 13,035,688.00 | 0.00 | 22,739,498.00 |
| 3. Decreased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Other transfer | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Ending balance | 267,798,247.00 | 125,443,184.00 | 0.00 | 393,241,431.00 |
| III. Depreciation reserves | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Beginning balance | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Increased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Withdrawal | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Decreased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Other transfer | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Ending balance | 0.00 | 0.00 | 0.00 | 0.00 |
| IV. Carrying value | ||||
| 1. Ending carrying value | 724,367,606.00 | 553,703,164.00 | 0.00 | 1,278,070,770.00 |
| 2. Beginning carrying value | 733,472,034.00 | 563,190,171.00 | 0.00 | 1,296,662,205.00 |
(2) Investment Property Adopted the Fair Value Measurement Mode
√ Applicable □ Not applicable
(3) Investment Property with Certificate of Title Uncompleted
Unit: RMB
| Item | Carrying value | Reason |
| None |
Other notes
16. Fixed Assets(1) List of Fixed Assets
Unit: RMB
| Item | Houses and buildings | Equipment | Other | Total |
| I. Original carrying value |
| 1. Beginning balance | 26,638,824,007.00 | 111,488,454,005.00 | 2,106,778,047.00 | 140,234,056,059.00 |
| 2. Increased amount of the period | 241,344,874.00 | 2,381,177,426.00 | 461,551,131.00 | 3,084,073,431.00 |
| (1) Purchase | 18,222,097.00 | 102,146,771.00 | 228,681,551.00 | 349,050,419.00 |
| (2) Transfer from construction in progress | 224,370,903.00 | 1,690,650,461.00 | 233,020,902.00 | 2,148,042,266.00 |
| (3) Enterprise combination increase | 0.00 | 580,992,189.00 | 529,193.00 | 581,521,382.00 |
| (2) Differences arising from translation of foreign currency-denominated financial statements | -1,248,126.00 | 7,388,005.00 | -680,515.00 | 5,459,364.00 |
| 3. Decreased amount of the period | 781,469.00 | 295,601,637.00 | 24,439,514.00 | 320,822,620.00 |
| (1) Disposal or Scrap | 781,469.00 | 295,601,637.00 | 24,439,514.00 | 320,822,620.00 |
| (2) off-set by government discount | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Ending balance | 26,879,387,412.00 | 113,574,029,794.00 | 2,543,889,664.00 | 142,997,306,870.00 |
| II. Accumulative depreciation | ||||
| 1. Beginning balance | 3,366,248,795.00 | 46,632,776,416.00 | 936,024,333.00 | 50,935,049,544.00 |
| 2. Increased amount of the period | 418,984,868.00 | 5,894,219,444.00 | 288,728,682.00 | 6,601,932,994.00 |
| (1) Withdrawal | 420,541,892.00 | 5,889,215,791.00 | 289,450,174.00 | 6,599,207,857.00 |
| (2) Differences arising from translation of foreign currency-denominated financial statements | -1,557,024.00 | 5,003,653.00 | -721,492.00 | 2,725,137.00 |
| 3. Decreased amount of the period | 559,485.00 | 162,194,944.00 | 18,646,921.00 | 181,401,350.00 |
| (1) Disposal or Scrap | 559,485.00 | 162,194,944.00 | 18,646,921.00 | 181,401,350.00 |
| 4. Ending balance | 3,784,674,178.00 | 52,364,800,916.00 | 1,206,106,094.00 | 57,355,581,188.00 |
| III. Depreciation reserves | ||||
| 1. Beginning balance | 1,085,094.00 | 663,639,306.00 | 8,985,354.00 | 673,709,754.00 |
| 2. Increased amount of | 0.00 | 0.00 | 0.00 | 0.00 |
| the period | ||||
| (1) Withdrawal | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Decreased amount of the period | 0.00 | 10,198,259.00 | 1,676,510.00 | 11,874,769.00 |
| (1) Disposal or Scrap | 0.00 | 10,198,259.00 | 1,676,510.00 | 11,874,769.00 |
| 4. Ending balance | 1,085,094.00 | 653,441,047.00 | 7,308,844.00 | 661,834,985.00 |
| IV. Carrying value | ||||
| 1. Ending carrying value | 23,093,628,140.00 | 60,555,787,831.00 | 1,330,474,726.00 | 84,979,890,697.00 |
| 2. Beginning carrying value | 23,271,490,118.00 | 64,192,038,283.00 | 1,161,768,360.00 | 88,625,296,761.00 |
(2) Temporarily Idle Fixed Assets
Unit: RMB
| Item | Original carrying value | Accumulated depreciation | Provisions for impairment | Carrying value | Note |
| None |
(3)Fixed Assets Leased in by Financing Lease
Unit: RMB
| Item | Original carrying value | Accumulated depreciation | Provisions for impairment | Carrying value |
| Workshops and buildings | 11,291,665.00 | 4,230,161.00 | 0.00 | 7,061,504.00 |
(4) Fixed Assets Leased out by Operating Lease
Unit: RMB
| Item | Ending carrying value |
| None |
(5) List of Fixed Assets with Certificate of Title Uncompleted
Unit: RMB
| Item | Carrying value | Reason |
| None |
Other notes:Naught
17. Construction in Progress(1) List of Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| The 6th Generation LTPS/AMOLED Production Line Project of Mianyang | 4,190,946,691.00 | 0.00 | 4,190,946,691.00 | 0.00 | 0.00 | 0.00 |
| The 8.5th Generation TFT-LCD Project of Hefei Xinsheng and the touch screen project | 760,569,417.00 | 0.00 | 760,569,417.00 | 638,162,030.00 | 0.00 | 638,162,030.00 |
| AM-OLED Project of Yuansheng Optoelectronics | 7,860,174,016.00 | 0.00 | 7,860,174,016.00 | 7,412,766,659.00 | 0.00 | 7,412,766,659.00 |
| The 8.5th Generation New Type Semiconductor Display Device Project of Fuzhou | 299,298,447.00 | 0.00 | 299,298,447.00 | 390,652,498.00 | 0.00 | 390,652,498.00 |
| The 6th Generation LTPS/AMOLED Production Line Project of Chengdu | 27,664,755,269.00 | 0.00 | 27,664,755,269.00 | 19,099,729,823.00 | 0.00 | 19,099,729,823.00 |
| The 10.5th Generation TFT-LCD Project of Hefei BOE Display | 28,640,758,854.00 | 0.00 | 28,640,758,854.00 | 19,778,218,499.00 | 0.00 | 19,778,218,499.00 |
| Other | 4,486,652,617.00 | 0.00 | 4,486,652,617.00 | 3,441,720,917.00 | 0.00 | 3,441,720,917.00 |
| Total | 73,903,155,311.00 | 0.00 | 73,903,155,311.00 | 50,761,250,426.00 | 0.00 | 50,761,250,426.00 |
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
| Item | Budget | Beginning balance | Increased amount | Transferred in fixed assets | Other decreased amount | Ending balance | Proportion of accumulated investment in constructions to budget | Job schedule | Accumulated amount of interest capitalization | Of which: amount of capitalized interests for the Reporting Period | Capitalization rate of interests for the Reporting Period | Capital resources |
| The 6th Generation LTPS/AMOLED Production Line Project of Mianyang | 44,700,000,000.00 | 0.00 | 4,430,742,562.00 | 239,795,871.00 | 0.00 | 4,190,946,691.00 | 9.91% | 9.91% | 0.00 | 0.00 | 0.00% | Self-owned capital, borrowings |
| The 8.5th Generation TFT-LCD Project of Hefei Xinsheng and the touch screen project | 30,987,000,000.00 | 638,162,030.00 | 723,205,123.00 | 600,797,736.00 | 0.00 | 760,569,417.00 | 85.43% | 85.43% | 0.00 | 0.00 | 0.00% | Self-owned capital |
| AM-OLED Project of Yuansheng Optoelectronics | 20,020,000,000.00 | 7,412,766,659.00 | 447,407,357.00 | 0.00 | 0.00 | 7,860,174,016.00 | 88.61% | 88.61% | 319,929,732.00 | 102,873,663.00 | 4.94% | Self-owned capital, borrowings and raised funds |
| The 8.5th Generation New Type Semiconductor Display Device | 26,985,000,000.00 | 390,652,498.00 | 508,512,696.00 | 599,866,747.00 | 0.00 | 299,298,447.00 | 80.37% | 80.37% | 0.00 | 0.00 | 0.00% | Self-owned capital |
| Project of Fuzhou | ||||||||||||
| The 6th Generation LTPS/AMOLED Production Line Project of Chengdu | 44,800,000,000.00 | 19,099,729,823.00 | 8,660,745,968.00 | 95,720,522.00 | 0.00 | 27,664,755,269.00 | 62.46% | 62.46% | 442,436,715.00 | 270,474,016.00 | 3.72% | Self-owned capital, borrowings |
| The 10.5th Generation TFT-LCD Project of Hefei BOE Display | 42,937,000,000.00 | 19,778,218,499.00 | 8,990,684,297.00 | 128,118,404.00 | 25,538.00 | 28,640,758,854.00 | 68.62% | 68.62% | 476,479,986.00 | 298,107,826.00 | 4.95% | Self-owned capital, borrowings |
| Other | 4,000,000,000.00 | 3,441,720,917.00 | 1,875,870,880.00 | 570,209,063.00 | 260,730,117.00 | 4,486,652,617.00 | 0.00% | 0.00% | 0.00 | 0.00 | 0.00% | -- |
| Total | 214,429,000,000.00 | 50,761,250,426.00 | 25,637,168,883.00 | 2,234,508,343.00 | 260,755,655.00 | 73,903,155,311.00 | -- | -- | 1,238,846,433.00 | 671,455,505.00 | 0.00% | -- |
(3) Provisions for Impairment of Construction in Progress during the Reporting Period
Unit: RMB
| Item | Withdrawal amount | Withdrawal reason |
| None |
Other notesNaught
18. Intangible Assets(1) List of Intangible Assets
Unit: RMB
| Item | Land use right | Patent right | Non-patent technologies | Computer software | Patent right and proprietary technology | Other | Total |
| I. Original carrying value | |||||||
| 1. Beginning balance | 1,822,280,424.00 | 0.00 | 0.00 | 776,387,468.00 | 1,744,517,311.00 | 343,837,159.00 | 4,687,022,362.00 |
| 2. Increased amount of the period | 334,175,304.00 | 0.00 | 0.00 | 397,944,051.00 | 1,037,199,599.00 | 1,006,105,571.00 | 2,775,424,525.00 |
| (1) Purchase | 298,264,724.00 | 0.00 | 0.00 | 40,663,685.00 | 0.00 | 5,306,700.00 | 344,235,109.00 |
| (2) Internal R&D | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (3) Business combination increase | 0.00 | 0.00 | 0.00 | 331,589,412.00 | 1,037,199,599.00 | 1,000,798,871.00 | 2,369,587,882.00 |
| (4) Transferred from construction in progress | 35,910,580.00 | 0.00 | 0.00 | 25,690,954.00 | 0.00 | 0.00 | 61,601,534.00 |
| 3. Decreased amount of the period | 0.00 | 0.00 | 0.00 | 2,852,819.00 | 3,222,600.00 | 96,525.00 | 6,171,944.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 2,852,819.00 | 2,682,847.00 | 96,525.00 | 5,632,191.00 |
| (2) Off-set by government discount | 0.00 | 0.00 | 0.00 | 0.00 | 539,753.00 | 0.00 | 539,753.00 |
| 4. Ending balance | 2,156,455,728.00 | 0.00 | 0.00 | 1,171,478,700.00 | 2,778,494,310.00 | 1,349,846,205.00 | 7,456,274,943.00 |
| II. Accumulated amortization | |||||||
| 1. Beginning balance | 178,337,119.00 | 0.00 | 0.00 | 443,322,429.00 | 1,024,064,866.00 | 58,633,640.00 | 1,704,358,054.00 |
| 2. Increased amount of the period | 27,420,368.00 | 0.00 | 0.00 | 45,191,498.00 | 159,598,355.00 | 30,893,191.00 | 263,103,412.00 |
| (1) Withdrawal | 27,420,368.00 | 0.00 | 0.00 | 45,191,498.00 | 159,598,355.00 | 30,893,191.00 | 263,103,412.00 |
| 3. Decreased amount of the period | 0.00 | 0.00 | 0.00 | 1,467,304.00 | 0.00 | 43,436.00 | 1,510,740.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 1,467,304.00 | 0.00 | 43,436.00 | 1,510,740.00 |
| 4. Ending balance | 205,757,487.00 | 0.00 | 0.00 | 487,046,623.00 | 1,183,663,221.00 | 89,483,395.00 | 1,965,950,726.0000 |
| III. Depreciation reserves | |||||||
| 1. Beginning balance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Increased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Withdrawal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Decreased amount of the period | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Disposal | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 4. Ending balance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| IV. Carrying value | |||||||
| 1. Ending carrying value | 1,950,698,241.00 | 0.00 | 0.00 | 684,432,077.00 | 1,594,831,089.00 | 1,260,362,810.00 | 5,490,324,217.00 |
| 2. Beginning carrying value | 1,643,943,305.00 | 0.00 | 0.00 | 333,065,039.00 | 720,452,445.00 | 285,203,519.00 | 2,982,664,308.00 |
The proportion of intangible assets generated from the internal R&D of the Company to the balance of intangible assets at the period-end:
(2) Land Use Right with Certificate of Title Uncompleted
Unit: RMB
| Item | Carrying value | Reason |
| None |
Other notes:
Naught
19. Goodwill(1) Original Carrying Value of Goodwill
Unit: RMB
| Name of the invested units or events generating goodwill | Beginning balance | Increase | Decrease | Ending balance |
| Beijing Yinghe Century Co., Ltd. | 42,940,434.00 | 0.00 | 0.00 | 42,940,434.00 |
| Gaochuang (Suzhou) Electronics Co., Ltd. | 8,562,464.00 | 0.00 | 0.00 | 8,562,464.00 |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,423,876.00 | 0.00 | 0.00 | 4,423,876.00 |
| BOE Health Investment Management Co., Ltd. | 146,460,790.00 | 0.00 | 0.00 | 146,460,790.00 |
| SES-imagotag SA | 0.00 | 643,515,357.00 | 0.00 | 643,515,357.00 |
| Total | 202,387,564.00 | 643,515,357.00 | 0.00 | 845,902,921.00 |
(2) Provisions for Impairment of Goodwill
Unit: RMB
| Name of the invested units or events generating goodwill | Beginning balance | Increase | Decrease | Ending balance |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,423,876.00 | 0.00 | 0.00 | 4,423,876.00 |
| Total | 4,423,876.00 | 0.00 | 0.00 | 4,423,876.00 |
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses: refer toV-22.Other notesNaught
20. Long-term Prepaid Expense
Unit: RMB
| Item | Beginning balance | Increased amount | Amortization amount of the period | Other decreased amount | Ending balance |
| Cost of construction and use of public facilities | 113,443,013.00 | 0.00 | 7,685,112.00 | 0.00 | 105,757,901.00 |
| Cost of operating lease assets improvement | 18,931,332.00 | 814,786.00 | 3,063,656.00 | 1,235,810.00 | 15,446,652.00 |
| Other | 247,455,085.00 | 59,239,067.00 | 41,274,523.00 | 3,409,075.00 | 262,010,554.00 |
| Total | 379,829,430.00 | 60,053,853.00 | 52,023,291.00 | 4,644,885.00 | 383,215,107.00 |
Other notesNaught
21. Deferred Income Tax Assets/Deferred Income Tax Liabilities(1) Deferred Income Tax Assets Had Not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Provision for impairment of assets | 392,411,066.00 | 69,770,938.00 | 404,563,258.00 | 72,783,228.00 |
| Internal unrealized profit | 0.00 | 0.00 | 0.00 | 0.00 |
| Deductable losses | 49,169,587.00 | 8,112,982.00 | 48,749,683.00 | 8,043,698.00 |
| Differences of depreciation and amortization | 80,006,688.00 | 12,068,128.00 | 79,460,328.00 | 11,970,733.00 |
| Evaluation increment of investment in subsidiaries with immovable property | 144,887,737.00 | 36,221,934.00 | 147,664,660.00 | 36,916,165.00 |
| Other | 247,726,069.00 | 76,197,949.00 | 34,900,387.00 | 8,725,096.00 |
| Total | 914,201,147.00 | 202,371,931.00 | 715,338,316.00 | 138,438,920.00 |
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Deductible temporary difference | Deferred income tax liabilities | Deductible temporary difference | Deferred income tax liabilities | |
| Asset evaluation increment of business combination not under the same control | 2,978,929,592.00 | 905,698,017.00 | 1,099,980,193.00 | 272,308,392.00 |
| Changes in fair value of available-for-sale financial assets | 63,006,116.00 | 10,173,377.00 | 104,026,120.00 | 16,326,379.00 |
| Depreciation of fixed assets | 1,562,028,347.00 | 278,957,792.00 | 1,246,406,521.00 | 213,674,259.00 |
| Changes in fair value of financial products | 26,036,062.00 | 6,265,152.00 | 41,137,810.00 | 9,457,398.00 |
| Long-term equity investment | 360,863,027.00 | 54,129,454.00 | 360,863,027.00 | 54,129,454.00 |
| Bond interest | 71,532,513.00 | 10,729,877.00 | 71,532,514.00 | 10,729,877.00 |
| Other | 207,416,470.00 | 47,202,488.00 | 204,034,820.00 | 18,860,414.00 |
| Total | 5,269,812,127.00 | 1,313,156,157.00 | 3,127,981,005.00 | 595,486,173.00 |
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
| Item | Mutual set-off amount of deferred income tax assets and liabilities at the period-end | Ending balance of deferred income tax assets or liabilities after off-set | Mutual set-off amount of deferred income tax assets and liabilities at the period-begin | Beginning balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax assets | 26,030,262.00 | 176,341,669.00 | 32,183,263.00 | 106,255,657.00 |
| Deferred income tax liabilities | 26,030,262.00 | 1,287,125,895.00 | 32,183,263.00 | 563,302,910.00 |
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Deductible temporary difference | 8,120,859,667.00 | 7,974,238,271.00 |
| Deductible losses | 2,938,053,910.00 | 1,888,693,158.00 |
| Total | 11,058,913,577.00 | 9,862,931,429.00 |
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Unit: RMB
| Years | Ending amount | Beginning amount | Notes |
| Y2018 | 0.00 | 113,247,077.00 | Naught |
| Y2019 | 38,076,038.00 | 173,165,457.00 | Naught |
| Y2020 | 254,477,362.00 | 643,475,666.00 | Naught |
| Y2021 | 72,140,922.00 | 307,160,037.00 | Naught |
| Y2022 | 624,985,743.00 | 651,644,921.00 | Naught |
| Y2023 | 1,229,143,452.00 | 0.00 | Naught |
| Y2024 | 125,649,690.00 | 0.00 | Naught |
| Y2025 | 270,633,391.00 | 0.00 | Naught |
| Y2026 | 151,127,450.00 | 0.00 | Naught |
| Y2027 | 33,987,260.00 | 0.00 | Naught |
| Y2028 | 137,832,602.00 | 0.00 | Naught |
| Total | 2,938,053,910.00 | 1,888,693,158.00 | -- |
Other notes:
Naught
22. Other Non-current Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Prepayment for construction | 412,367,194.00 | 289,231,537.00 |
| Prepayment for procurement of fixed assets | 1,123,338,,342.00 | 2,062,240,060.00 |
| Excess VAT paid | 678,221,399.00 | 321,022,343.00 |
| The VAT collection of imported equipment | 2,760,599,110.00 | 1,401,435,788.00 |
| Other | 146,018,681.00 | 115,837,526.00 |
| Total | 5,120,544,726.00 | 4,189,767,254.00 |
Other notes:
Naught
23. Short-term Borrowings(1) Category of Short-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pledge loans | 321,065,277.00 | 2,480,485,209.00 |
| Mortgage loans | 503,864,760.00 | 0.00 |
| Guaranteed loans | 0.00 | 0.00 |
| Credit loans | 1,388,501,417.00 | 769,251,221.00 |
| Total | 2,213,431,454.00 | 3,249,736,430.00 |
Notes:
Naught
(2) Overdue and Outstanding Short-term Borrowings
The total overdue and outstanding short-term borrowings was RMB 0.00, of which, the significant ones were listed as follows:
Unit: RMB
| Unit | Ending balance | Loan interest rate | Overdue time | Overdue charge rate |
| None |
Other notes:
Naught
24. Derivative Financial Assets
□ Applicable √ not applicable
25. Notes Payable
Unit: RMB
| Category | Ending balance | Beginning balance |
| Trade acceptance | 60,854,120.00 | 61,946,524.00 |
| Bank’s acceptance bill | 777,953,997.00 | 481,852,311.00 |
| Total | 838,808,117.00 | 543,798,835.00 |
The total overdue and outstanding notes payable at the period-end were RMB0.00.
26. Accounts Payable(1) List of Accounts Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Accounts payable of connected parties | 37,815,960.00 | 14,532,494.00 |
| Accounts payable of the Third-party | 18,965,802,782.00 | 16,191,256,204.00 |
| Total | 19,003,618,742.00 | 16,205,788,698.00 |
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/ Un-carry-over reason |
| None |
Other notes:Naught
27. Advances from Customers(1) List of Advances from Customers
Unit: RMB
| Item | Ending balance | Beginning balance |
| Advances from customers of connected parties | 94,816.00 | 141,921.00 |
| Advances from customers of the third-party | 991,253,718.00 | 781,182,601.00 |
| Total | 991,348,534.00 | 781,324,522.00 |
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/ Un-carry-over reason |
| None |
(3) Uncompleted but Settled Items Resulting from Construction Contracts at the Period-end
Unit: RMB
| Item | Amount |
| Accumulated incurred cost | 0.00 |
| Accumulated recognized gross margin | 0.00 |
| Less: estimated losses | 0.00 |
| Settlement amount | 0.00 |
| Completed but unsettled items resulting from construction contracts | 0.00 |
Other notes:
Naught
28. Payroll Payable(1) List of Payroll Payable
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| I. Short-term salary | 2,167,235,414.00 | 4,761,856,668.00 | 5,749,073,849.00 | 1,180,018,233.00 |
| II. Post-employment benefit-defined contribution plans | 34,854,644.00 | 392,413,685.00 | 401,421,513.00 | 25,846,816.00 |
| III. Termination benefits | 14,976,886.00 | 2,771,149.00 | 2,944,569.00 | 14,803,466.00 |
| IV. Other benefits due within one year | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 2,217,066,944.00 | 5,157,041,502.00 | 6,153,439,931.00 | 1,220,668,515.00 |
(2) List of Short-term Salary
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Salary, bonus, allowance, subsidy | 1,840,923,550.00 | 3,931,820,440.00 | 4,899,453,759.00 | 873,290,231.00 |
| 2. Employee welfare | 0.00 | 312,141,173.00 | 312,141,173.00 | 0.00 |
| 3. Social insurance | 33,561,796.00 | 193,457,969.00 | 200,523,654.00 | 26,496,111.00 |
| Of which: 1. Medical insurance premiums | 30,110,821.00 | 168,629,565.00 | 175,539,320.00 | 23,201,066.00 |
| Work-related injury insurance | 1,419,661.00 | 15,662,530.00 | 15,542,326.00 | 1,539,865.00 |
| Maternity insurance | 2,031,314.00 | 9,165,874.00 | 9,442,008.00 | 1,755,180.00 |
| 4. Housing fund | 17,201,305.00 | 183,010,929.00 | 189,955,571.00 | 10,256,663.00 |
| 5. Labor union budget | 246,372,990.00 | 112,330,790.00 | 110,790,450.00 | 247,913,330.00 |
| and employee education budget | ||||
| 6. Short-term compensated absence | 0.00 | 0.00 | 0.00 | 0.00 |
| 7. Short-term profit-sharing plan | 0.00 | 0.00 | 0.00 | 0.00 |
| 8. Employee bonus and welfare fund | 7,282,591.00 | 0.00 | 0.00 | 7,282,591.00 |
| 9. Other short-term salary | 21,893,182.00 | 29,095,367.00 | 36,209,242.00 | 14,779,307.00 |
| Total | 2,167,235,414.00 | 4,761,856,668.00 | 5,749,073,849.00 | 1,180,018,233.00 |
(3) List of Defined Contribution Plans
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Basic pension benefits | 28,831,475.00 | 377,209,161.00 | 381,297,440.00 | 24,743,196.00 |
| 2. Unemployment insurance | 1,155,250.00 | 10,573,264.00 | 10,962,175.00 | 766,339.00 |
| 3. Annuity | 4,867,919.00 | 4,631,260.00 | 9,161,898.00 | 337,281.00 |
| Total | 34,854,644.00 | 392,413,685.00 | 401,421,513.00 | 25,846,816.00 |
Other notes:
Naught
29. Taxes Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| VAT | 10,636,352.00 | 7,384,437.00 |
| Consumption tax | 0.00 | 0.00 |
| Corporate income tax | 242,884,069.00 | 501,685,626.00 |
| Personal income tax | 36,679,115.00 | 41,968,486.00 |
| Urban maintenance and construction tax | 100,515,062.00 | 84,932,308.00 |
| Education surcharge and local education surcharge | 72,548,497.00 | 61,375,167.00 |
| Other | 75,143,130.00 | 78,275,122.00 |
| Total | 538,406,225.00 | 775,621,146.00 |
Other notes:Naught
30. Interest Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Long-term loan interest of installment payment of interest and repay the due capital | 715,968,277.00 | 588,644,439.00 |
| Enterprise bond interest | 88,027,397.00 | 10,196,348.00 |
| Interest paid for short-term borrowings | 17,960,400.00 | 248,914,285.00 |
| Interest of preferred shares/perpetual bonds classified as financial liabilities | 0.00 | 0.00 |
| Other | 48,414.00 | 200,114.00 |
| Total | 822,004,488.00 | 847,955,186.00 |
Significant overdue and outstanding interests:
Unit: RMB
| Entity | Overdue amount | Overdue reason |
| None |
Other notes:Naught
31. Dividends Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Ordinary share dividends | 12,477,033.00 | 9,651,170.00 |
| Dividends of preferred shares/perpetual bonds classified as equity instruments | 0.00 | 0.00 |
| Other | 0.00 | 0.00 |
| Total | 12,477,033.00 | 9,651,170.00 |
Other notes, including the reason for unpayment of significant dividends payable unpaid for over one year:
There was no significant dividends payable unpaid for over one year for the Company at the period-end.
32. Other Accounts Payable(1) Other Accounts Payable Listed by Nature of Account
Unit: RMB
| Item | Ending balance | Beginning balance |
| Engineering and equipment | 12,850,648,032.00 | 12,772,388,210.00 |
| The VAT collection of imported equipment | 1,173,528,620.00 | 675,815,849.00 |
| Margin | 477,601,296.00 | 380,789,096.00 |
| Pre-withdrawal water and electricity & logistics freight | 577,875,154.00 | 430,803,905.00 |
| External agency fee | 30,752,046.00 | 34,108,132.00 |
| Other | 815,039,255.00 | 970,901,582.00 |
| Total | 15,925,444,403.00 | 15,264,806,774.00 |
(2) Significant Other Accounts Payable Aging over One Year
Unit: RMB
| Item | Ending balance | Unpaid/Un-carry-over reason |
| None |
Other notes:Naught
33. Non-current Liabilities Due within 1 Year
Unit: RMB
| Item | Ending balance | Beginning balance |
| Long-term loans due within 1 year | 6,112,967,339.00 | 8,930,400,434.00 |
| Bonds payable due within 1 year | 0.00 | 0.00 |
| Long-term accounts payable due within 1 year | 289,805,557.00 | 179,308,077.00 |
| Total | 6,402,772,896.00 | 9,109,708,511.00 |
Other notes :Naught
34. Other Current Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Short-term bonds payable | 0.00 | 0.00 |
| Quality assurance deposit | 989,909,665.00 | 716,491,628.00 |
| Other | 39,616,637.00 | 14,217,962.00 |
| Total | 1,029,526,302.00 | 730,709,590.00 |
Increase or decrease in short-term bonds payable:
Unit: RMB
| Bond name | Par value | Issuing date | Duration | Issuing amount | Beginning balance | Issued in the Current Period | Withdrawal of interest by par value | Amortization of premium and depreciation | Repayment in the Reporting Period | Ending balance |
| None |
Other notes :
Naught
35. Long-term Borrowings(1) Category of Long-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pledge loan | 1,011,995,075.00 | 1,607,709,300.00 |
| Mortgage loan | 59,910,293,799.00 | 52,708,750,433.00 |
| Guaranteed loan | 1,248,852,510.00 | 0.00 |
| Credit loan | 21,090,502,830.00 | 24,657,173,277.00 |
| Total | 83,261,644,214.00 | 78,973,633,010.00 |
Notes of the category of long-term borrowings:
NaughtOther notes, including the interest rate range:
Naught
36. Bonds Payable(1) Bonds Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| In 2016, BOE Technology Group Co., Ltd. public issued Corporate bond to the qualify investors (Phase I) | 9,971,424,165.00 | 9,966,467,496.00 |
| Total | 9,971,424,165.00 | 9,966,467,496.00 |
(2) Increase/Decrease of Bonds Payable (Excluding Other Financial Instruments Classified as Financial Liabilities such as Preferred Shares and PerpetualBonds)
Unit: RMB
| 债券名称 | 面值 | 发行日期 | 债券期限 | 发行金额 | 期初余额 | 本期发行 | 按面值计提利息 | 溢折价摊销 | 本期偿还 | 期末余额 |
| In 2016, BOE Technology Group Co., Ltd. public issued Corporate bond to the qualify investors (Phase I) | 100.00 | 2016.03.21 | 5 years (Attached end of 3 years, the issuer increase coupon rate option and investors selling back options | 10,000,000,000.00 | 9,966,467,496.00 | 0.00 | 0.00 | 4,956,669.00 | 0.00 | 9,971,424,165.00 |
| Total | -- | -- | -- | 10,000,000,000.00 | 9,966,467,496.00 | 0.00 | 0.00 | 4,956,669.00 | 0.00 | 9,971,424,165.00 |
37. Long-term Accounts Payable(1) Long-term Accounts Payable Listed by Nature of Account
Unit: RMB
| Item | Ending balance | Beginning balance |
| Financing lease | 1,717,181,735.00 | 1,355,559,059.00 |
| Less: financing lease due within one year | 289,805,557.00 | 179,308,077.00 |
| Total | 1,427,376,178.00 | 1,176,250,982.00 |
Other notesNaught
38. Provisions
Unit: RMB
| Item | Ending balance | Beginning balance | Formed reason |
| External guaranty | 0.00 | 0.00 | Naught |
| Pending litigation | 0.00 | 0.00 | Naught |
| Product quality assurance | 0.00 | 0.00 | Naught |
| Restructuring obligations | 0.00 | 0.00 | Naught |
| Onerous contracts to be executed | 0.00 | 0.00 | Naught |
| Other | 16,457,010.00 | 16,457,010.00 | In 2009, the Group ceased producing several products and stopped fulfilling the purchase contract related to production. Due to the indemnity incurred accordingly, the Group withdrew the relevant estimated liabilities according to reasonable estimation of losses. |
| Total | 16,457,010.00 | 16,457,010.00 | -- |
Other notes, including significant assumptions and estimation related to significant provisions:
Naught
39. Deferred Income
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | Formed reason |
| Government subsidies | 2,261,955,307.00 | 6,778,832,385.00 | 863,384,188.00 | 8,177,403,504.00 | Government subsidies |
| Total | 2,261,955,307.00 | 6,778,832,385.00 | 863,384,188.00 | 8,177,403,504.00 | -- |
Item involving government subsidies:
Unit: RMB
| Item | Beginning balance | Amount of newly | Amount recorded | Amount recorded | Amount offset cost | Other changes | Ending balance | Related to |
| subsidy | into non-operating income in the Reporting Period | into other income in Reporting Period | in the Reporting Period | assets/related income | ||||
| The 6th Generation LTPS/AMOLED Production Line Project of Chengdu | 125,930,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 125,930,000.00 | Related to assets |
| The 8.5th Generation TFT-LCD Project of Hefei Xinsheng and the touch screen project | 152,182,718.00 | 0.00 | 0.00 | 18,385,701.00 | 0.00 | 0.00 | 133,797,017.00 | Related to assets |
| The 5.5th Generation LTPS and AMOLED Project of Yuansheng Optoelectronics | 181,111,113.00 | 0.00 | 0.00 | 6,666,665.00 | 0.00 | 0.00 | 174,444,448.00 | Related to assets |
| The 10.5th Generation TFT-LCD Project of Hefei BOE Display | 369,744,100.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 369,744,100.00 | Related to assets |
| The 6th Generation TFT-LCD Project of Hefei BOE Display | 14,285,715.00 | 0.00 | 0.00 | 3,571,429.00 | 0.00 | 0.00 | 10,714,286.00 | Related to assets |
| The 8.5th Generation TFT-LCD Project of Chongqing BOE Display | 139,190,696.00 | 0.00 | 0.00 | 8,368,821.00 | 0.00 | 0.00 | 130,821,875.00 | Related to assets |
| The 8.5th Generation TFT-LCD Project of BOE Display | 93,761,903.00 | 0.00 | 0.00 | 51,142,855.00 | 0.00 | 0.00 | 42,619,048.00 | Related to assets |
| Other asset-related government subsidies | 952,120,708.00 | 6,617,402,803.00 | 620,589.00 | 645,935,878.00 | 0.00 | 5,259,286.00 | 6,917,707,758.00 | Related to assets |
| Other income-related government subsidies | 233,628,354.00 | 161,429,582.00 | 2,919,695.00 | 120,513,269.00 | 0.00 | 0.00 | 271,624,972.00 | Related to income |
| Total | 2,261,955,307.00 | 6,778,832,385.00 | 3,540,284.00 | 854,584,618.00 | 0.00 | 5,259,286.00 | 8,177,403,504.00 | -- |
Other notes:
Naught
40. Other Non-current Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Convertible creditor's right | 4,080,403,620.00 | 3,985,192,661.00 |
| Equity investment with redemption items | 3,670,971,836.00 | 3,629,616,046.00 |
| The VAT collection of imported equipment | 2,760,599,110.00 | 1,401,435,788.00 |
| Other | 186,467,258.00 | 114,000,000.00 |
| Total | 10,698,441,824.00 | 9,130,244,495.00 |
Other notes:
Naught
41. Share Capital
Unit: RMB
| Item | Beginning balance | Increase/decrease (+/-) | Ending balance | ||||
| New shares issued | Bonus shares | Bonus issue from profit | Other | Subtotal | |||
| The sum of shares | 34,798,398,763.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 34,798,398,763.00 |
Other notes:
Naught
42. Capital Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Capital premium (premium on stock) | 37,546,517,053.00 | 0.00 | 0.00 | 37,546,517,053.00 |
| Other capital reserves | 1,038,998,069.00 | 2,424,598.00 | 343,178,364.00 | 698,244,303.00 |
| Total | 38,585,515,122.00 | 2,424,598.00 | 343,178,364.00 | 38,244,761,356.00 |
Other notes, including notes to increase and decrease during the Reporting Period and the reasons for changes:
Naught
43. Treasury Shares
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| None | ||||
| Total | 0.00 | 0.00 |
Other notes, including notes to increase and decrease during the Reporting Period and the reasons for changes: Naught
44. Other Comprehensive Income
Unit: RMB
| Item | Beginning balance | Reporting Period | Ending balance | ||||
| Income before taxation in the Current Period | Less: recorded in other comprehensive income in prior period and transferred in profit or loss in the Current Period | Less: Income tax expense | Attributable to owners of the Company as the parent after tax | Attributable to non-controlling interests after tax | |||
| I. Other comprehensive income that will not be reclassified to profit or loss | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Of which: Changes in net liabilities or assets caused by remeasurements on defined benefit pension schemes | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Share of other comprehensive income of investees that will not be reclassified to profit or loss under equity method | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Other comprehensive income that may subsequently be reclassified to profit or loss | 150,602,933.00 | -38,975,590.00 | 194,426,731.00 | -10,132,925.00 | -238,286,517.00 | 15,017,121.00 | -87,683,584.00 |
| Of which: Share of other comprehensive income of investees that will be reclassified to profit or loss under equity method | 144,614,667.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 144,614,667.00 |
| Gain/Loss on changes in fair value of available-for-sale financial assets | 120,396,369.00 | 77,993,404.00 | 182,208,434.00 | -10,132,925.00 | -91,055,052.00 | -3,027,053.00 | 29,341,317.00 |
| Gain/Loss arising from reclassification of held-to-maturity investments to available-for-sale financial assets | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Effective gain/loss on cash flow hedges | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Differences arising from translation of foreign currency-denominated financial statements | -114,408,103.00 | -116,968,994.00 | 12,218,297.00 | 0.00 | -147,231,465.00 | 18,044,174.00 | -261,639,568.00 |
| Total other comprehensive income | 150,602,933.00 | -38,975,590.00 | 194,426,731.00 | -10,132,925.00 | -238,286,517.00 | 15,017,121.00 | -87,683,584.00 |
Other notes, including the note to the adjustment of the initial recognition amount of hedged item transferred from the effective gain/loss on cash flow hedges:
Naught
45. Surplus Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Statutory surplus reserves | 599,969,166.00 | 0.00 | 0.00 | 599,969,166.00 |
| Discretionary surplus reserves | 289,671,309.00 | 0.00 | 0.00 | 289,671,309.00 |
| Reserve fund | 0.00 | 0.00 | 0.00 | 0.00 |
| Enterprise expansion fund | 0.00 | 0.00 | 0.00 | 0.00 |
| Others | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 889,640,475.00 | 0.00 | 0.00 | 889,640,475.00 |
Notes to surplus reserves, including the note to increase and decrease in the Reporting Period and the reason for changes:
Naught
46. Retained Profits
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Opening balance of retained profits before adjustments | 10,385,659,084.00 | 4,011,055,487.00 |
| Total beginning balance of retained profits before adjustments (Increase+，decrease-) | 0.00 | 0.00 |
| Beginning balance of retained profits after adjustments | 10,385,659,084.00 | 4,011,055,487.00 |
| Add: Net profit attributable to owners of the Company as the parent | 2,975,206,500.00 | 4,302,605,600.00 |
| Less: Withdrawal of statutory surplus reserves | 0.00 | 0.00 |
| Withdrawal of discretional surplus reserves | 0.00 | 0.00 |
| Withdrawal of general reserve | 0.00 | 0.00 |
| Dividend of ordinary shares payable | 1,740,789,879.00 | 1,046,578,276.00 |
| Dividend of common stock transfer into share capital | 0.00 | 0.00 |
| Ending retained profits | 11,620,075,705.00 | 7,267,082,811.00 |
List of adjustment of beginning retained profits:
(1) RMB0.00 beginning retained profits was affected by retrospective adjustment conducted according to the Accounting Standards
for Business Enterprises and relevant new regulations.(2) RMB0.00 beginning retained profits was affected by changes in accounting policies.(3) RMB0.00 beginning retained profits was affected by correction of significant accounting errors.(4) RMB0.00 beginning retained profits was affected by changes in combination scope arising from same control.(5) RMB0.00 beginning retained profits was affected totally by other adjustments.
47. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same Period of last year | ||
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Main operations | 42,373,062,968.00 | 34,334,111,314.00 | 43,423,735,624.00 | 31,382,589,960.00 |
| Other operations | 1,100,841,998.00 | 810,470,817.00 | 1,181,292,371.00 | 852,676,629.00 |
| Total | 43,473,904,966.00 | 35,144,582,131.00 | 44,605,027,995.00 | 32,235,266,589.00 |
48. Taxes and Surtaxes
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Consumption tax | 0.00 | 0.00 |
| Urban maintenance and construction tax | 56,823,610.00 | 101,059,387.00 |
| Education Surcharge | 35,602,048.00 | 73,037,501.00 |
| Resource tax | 0.00 | 0.00 |
| Property tax | 148,231,522.00 | 110,136,739.00 |
| Land use tax | 15,009,812.00 | 20,626,843.00 |
| Vehicles and vessels use tax | 70,807.00 | 68,666.00 |
| Stamp duty | 41,039,849.00 | 38,902,335.00 |
| Other | 5,788,106.00 | 11,869,521.00 |
| Total | 302,565,754.00 | 355,700,992.00 |
Other notes: Naught
49. Selling Expense
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Labor cost | 234,613,824.00 | 224,486,520.00 |
| Logistic transport fees | 200,968,268.00 | 173,832,751.00 |
| Product quality assurance | 600,466,512.00 | 591,844,446.00 |
| Other | 258,733,990.00 | 238,397,146.00 |
| Total | 1,294,782,594.00 | 1,228,560,863.00 |
Other notes: Naught
50. Administrative Expense
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| R&D expenses | 1,600,194,723.00 | 951,137,953.00 |
| Labor cost | 993,219,826.00 | 939,585,805.00 |
| Maintenance cost | 438,011,265.00 | 412,714,741.00 |
| Depreciation and amortization | 293,524,665.00 | 217,075,708.00 |
| Other | 418,952,794.00 | 532,147,368.00 |
| Total | 3,743,903,273.00 | 3,052,661,575.00 |
51. Finance Costs
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Interest expense | 1,427,741,240.00 | 1,231,529,637.00 |
| Interest income | -345,988,686.00 | -376,820,432.00 |
| Foreign exchange gains or losses | 55,074,145.00 | 180,783,689.00 |
| Other finance costs | 64,346,956.00 | 63,620,288.00 |
| Total | 1,201,173,655.00 | 1,099,113,182.00 |
Other notes:
Naught
52. Asset Impairment Loss
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| I. Bad debt loss | 358,199.00 | 214,709,584.00 |
| II. Inventory falling price loss | 457,791,061.00 | 1,208,736,546.00 |
| III. Impairment losses on available-for-sale financial assets | 0.00 | 0.00 |
| IV. Impairment losses on held-to-maturity investment | 0.00 | 0.00 |
| V. impairment losses on long-term equity investment | 0.00 | 0.00 |
| VI. Impairment losses on investment property | 0.00 | 0.00 |
| VII. Fixed assets impairment losses | 0.00 | 0.00 |
| VIII. Impairment losses on engineering materials | 0.00 | 0.00 |
| IX. Impairment losses on construction in progress | 0.00 | 0.00 |
| X. Impairment losses on productive living assets | 0.00 | 0.00 |
| XI. Impairment losses on oil and gas assets | 0.00 | 0.00 |
| XII. Impairment losses on intangible assets | 0.00 | 0.00 |
| XIII. Goodwill Impairment losses | 0.00 | 0.00 |
| XIV. Other | 0.00 | 0.00 |
| Total | 458,149,260.00 | 1,423,446,130.00 |
Other notes:
Naught
53. Investment Income
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Investment income from long-term equity investment accounted by equity method | -29,578,579.00 | -13,690,555.00 |
| Investment income from disposal of long-term equity investment | 9,317,244.00 | 0.00 |
| Investment income from holding of financial assets at fair value through profit or loss | 0.00 | 0.00 |
| Investment income from disposal of financial assets at fair value through profit or loss | 0.00 | 0.00 |
| Investment income from holding of held-to-maturity investment | 0.00 | 0.00 |
| Investment income from holding of available-for-sale financial assets | 6,735,339.00 | 12,148,223.00 |
| Investment income from disposal of available-for-sale financial assets | 180,450,009.00 | 20,704,483.00 |
| Gains from re-measurement of residual equity at fair value after losing the control power | 0.00 | 0.00 |
| Total | 166,924,013.00 | 19,162,151.00 |
Other notes:
Naught
54. Asset Disposal Income
Unit: RMB
| Sources | Reporting Period | Same Period of last year |
| Fixed assets disposal lost | -158,511.00 | -3,120,539.00 |
55. Other Income
Unit: RMB
| Sources | Reporting Period | Same Period of last year |
| Government subsidy related to daily activities of enterprises | 1,904,160,159.00 | 275,302,864.00 |
56. Non-operating Income
Unit: RMB
| Item | Reporting Period | Same period of last year | Amount recorded in the current non-recurring profit or loss |
| Income from debt restructuring | 0.00 | 0.00 | 0.00 |
| Income from non-monetary assets exchange | 0.00 | 0.00 | 0.00 |
| Donations accepted | 0.00 | 0.00 | 0.00 |
| Government subsidies | 61,057,457.00 | 31,062,835.00 | 61,057,457.00 |
| Other | 35,584,411.00 | 22,468,148.00 | 35,584,411.00 |
| Total | 96,641,868.00 | 53,530,983.00 | 96,641,868.00 |
Government subsidies recorded into current profit or loss:
Unit: RMB
| Item | Distribution entity | Distribution reason | Nature | Whether subsidies influence the current profit or loss | Special subsidy or not | Reporting Period | Same period of last year | Related to assets/related income |
| Other non-recurring government subsidies | Municipal People’s Government, NDRC, Finance Bureau etc. | Subsidy | Due to engaged in special industry that the state encouraged and supported, gained subsidy (obtaining in line with the law and the regulations of national policy) | No | No | 61,057,457.00 | 31,062,835.00 | Related to income |
| Total | -- | -- | -- | -- | -- | 61,057,457.00 | 31,062,835.00 | -- |
Other notes:Naught
57. Non-operating Expense
Unit: RMB
| Item | Reporting Period | Same period of last year | Amount recorded in the current non-recurring profit or loss |
| Losses from debt reconstruction | 0.00 | 0.00 | 0.00 |
| Non-monetary asset exchange | 0.00 | 0.00 | 0.00 |
| losses | |||
| Donation | 1,383,000.00 | 1,184,940.00 | 1,383,000.00 |
| Other | 6,270,811.00 | 19,145,563.00 | 6,270,811.00 |
| Total | 7,653,811.00 | 20,330,503.00 | 7,653,811.00 |
Other notes:
Naught
58. Income Tax Expense(1) List of Income Tax Expense
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Current income tax expense | 600,652,106.00 | 923,414,609.00 |
| Deferred income tax expense | 58,916,454.00 | 16,847,006.00 |
| Total | 659,568,560.00 | 940,261,615.00 |
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
| Item | Reporting Period |
| Profit before taxation | 3,488,662,017.00 |
| Current income tax expense accounted at statutory/applicable tax rate | 523,299,303.00 |
| Influence of applying different tax rates by subsidiaries | 4,939,173.00 |
| Influence of income tax before adjustment | 0.00 |
| Influence of non-taxable income | -25,038,602.00 |
| Influence of not deductable costs, expenses and losses | 1,617,490.00 |
| Influence of deductable loss of unrecognized deferred income tax assets in prior period | -54,978,892.00 |
| Influence of deductable temporary difference or deductable loss of unrecognized deferred income tax assets in the Reporting Period | 190,417,590.00 |
| Other | 19,312,498.00 |
| Income tax expense | 659,568,560 |
Other notes:
Naught
59. Other Comprehensive Income
Refer to Note 44 for details.
60. Cash Flow Statement(1) Cash Generated from Other Operating Activities
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Interest income | 307,740,752.00 | 248,295,788.00 |
| Government subsidies related to income | 1,428,105,509.00 | 243,760,365.00 |
| Cash received from recycling waste and waste water | 72,288,700.00 | 80,220,554.00 |
| Bid bond/performance bond received | 166,693,021.00 | 38,191,239.00 |
| Deposit returned | 28,455,367.00 | 20,121,331.00 |
| Foreign exchange gain from carry-forward and purchase of foreign exchange | 20,430,024.00 | 187,772.00 |
| Recovery of restricted deposits in financial institutions | 640,087,321.00 | 0.00 |
| Other | 228,813,028.00 | 138,176,021.00 |
| Total | 2,892,613,722.00 | 768,953,070.00 |
Notes:
Naught
(2) Cash Used in Other Operating Activities
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Daily spending paid | 2,497,720,088.00 | 2,496,459,880.00 |
| Increase of restricted deposits in financial institutions | 5,015,188.00 | 200,676,652.00 |
| Margin & Cash deposit | 66,648,490.00 | 74,682,666.00 |
| Handling charge for banks | 62,327,573.00 | 24,698,890.00 |
| Other | 170,667,148.00 | 24,351,220.00 |
| Total | 2,802,378,487.00 | 2,820,869,308.00 |
Notes:
Naught
(3) Cash Generated from Other Investing Activities
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Recovery of restricted deposits in financial institutions | 747,033,118.00 | 1,419,977,569.00 |
| Interest income | 106,639,088.00 | 111,642,364.00 |
| Cash inflow from combination of subsidiaries | 2,726,820,652.00 | 51,553,545.00 |
| Bid price/bid bond | 291,772,664.00 | 33,986,781.00 |
| Government subsidies related to assets | 144,065,828.00 | 24,491,476.00 |
| Other | 3,763,663.00 | 10,185,865.00 |
| Total | 4,020,095,013.00 | 1,651,837,600.00 |
Notes:
Naught
(4) Cash Used in Other Investing Activities
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Refund on bid/performance bond / safety construction bond | 1,704,020,339.00 | 399,110,178.00 |
| Other | 25,726,420.00 | 18,883,785.00 |
| Total | 1,729,746,759.00 | 417,993,963.00 |
Notes:
Naught
(5) Cash Generated from Other Financing Activities
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Bill discounting | 0.00 | 98,452,460.00 |
| Scrappy interest of dividends | 0.00 | 19.00 |
| Recovery of restricted deposits in financial institutions | 1,726,033,053.00 | 0.00 |
| Other | 10,155,210.00 | 0.00 |
| Total | 1,736,188,263.00 | 98,452,479.00 |
Notes:
Naught
(6) Cash Used in Other Financing Activities
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Payment for repurchase of stocks | 0.00 | 351,381,074.00 |
| Recovery of restricted deposits in financial institutions | 0.00 | 157,510,760.00 |
| Guarantee fees paid | 41,943,012.00 | 120,000,000.00 |
| Handling charge for banks | 675,811.00 | 20,421,484.00 |
| Administrative charge for bank consortium | 146,060,000.00 | 0.00 |
| Total | 188,678,823.00 | 649,313,318.00 |
Notes:
Naught
61. Supplemental Information for Cash Flow Statement(1) Supplemental Information for Cash Flow Statement
Unit: RMB
| Supplemental information | Reporting Period | Same period of last year |
| 1. Reconciliation of net profit to net cash flows generated from operating activities | -- | -- |
| Net profit | 2,829,093,457.00 | 4,594,562,005.00 |
| Add: Provision for impairment of assets | 458,149,260.00 | 1,423,446,130.00 |
| Depreciation of fixed assets, oil-gas assets, and productive living assets | 6,556,160,630.00 | 5,464,374,990.00 |
| Amortization of intangible assets | 258,521,192.00 | 143,041,546.00 |
| Amortization of long-term prepaid expenses | 49,953,934.00 | 42,667,113.00 |
| Losses on disposal of fixed assets, intangible assets and other long-lived assets (gains: negative) | 421,587.00 | -9,952,741.00 |
| Losses on scrap of fixed assets (gains: negative) | 329,303.00 | -294,151.00 |
| Losses from variation of fair value (gains: negative) | 0.00 | 0.00 |
| Finance costs (gains: negative) | 1,330,319,892.00 | 1,472,353,270.00 |
| Investment loss (gains: negative) | -166,924,013.00 | -19,162,151.00 |
| Decrease in deferred income tax assets | -70,086,012.00 | -3,403,943.00 |
| (gains: negative) | ||
| Increase in deferred income tax liabilities (“-” means decrease) | 723,822,985.00 | 20,250,949.00 |
| Decrease in inventory (gains: negative) | -2,381,077,971.00 | -2,985,235,404.00 |
| Decrease in accounts receivable generated from operating activities (gains: negative) | -1,795,552,371.00 | -4,224,525,906.00 |
| Increase in accounts payable used in operating activities (decrease: negative) | 4,521,622,519.00 | 4,919,933,010.00 |
| Others | -875,148,546.00 | -199,463,451.00 |
| Net cash generated from/used in operating activities | 11,439,605,846.00 | 10,638,591,266.00 |
| 2. Significant investing and financing activities without involvement of cash receipts and payments | -- | -- |
| Transfer of debt to capital | 0.00 | 0.00 |
| Convertible corporate bonds due within one year | 0.00 | 0.00 |
| Fixed assets leased in through financing | 0.00 | 0.00 |
| 3. Net increase/decrease of cash and cash equivalent: | -- | -- |
| Ending balance of cash | 43,089,999,591.00 | 42,798,317,023.00 |
| Less: beginning balance of cash | 47,913,287,583.00 | 49,354,810,388.00 |
| Add: Ending balance of cash equivalents | 0.00 | 0.00 |
| Less: Beginning balance of cash equivalents | 0.00 | 0.00 |
| Net increase in cash and cash equivalents | -4,823,287,992.00 | -6,556,493,365.00 |
(2) Net Cash Used in Acquisition of Subsidiaries during the Reporting Period
Unit: RMB
| Item | Amount |
| Cash or cash equivalents paid for the current business combinations | 2,564,763,000.00 |
| Of which: | -- |
| Less: cash and cash equivalents held by subsidiary on purchase date | 5,291,583,652.00 |
| Net cash used in acquisition of subsidiaries | -2,726,820,652.00 |
Other notes:Naught
(3) Net Cash Received from Disposal of Subsidiaries during the Reporting Period
Unit: RMB
| Item | Amount |
| Cash or cash equivalents received from the current disposal of subsidiaries during the Reporting Period | 0.00 |
| Of which: | -- |
| Less: cash and cash equivalents held by subsidiaries on the date of losing control power | 0.00 |
| Of which: | -- |
| Add: cash or cash equivalents received from previous disposal of subsidiaries during the Reporting Period | 0.00 |
| Of which: | -- |
| Net cash generated from disposal of subsidiaries | 0.00 |
Other notes:Naught
(4) Cash and Cash Equivalents
Unit: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 43,089,999,591.00 | 47,913,287,583.00 |
| Including: Cash on hand | 729,517.00 | 526,764.00 |
| Bank deposit on demand | 43,048,946,319.00 | 47,912,760,611.00 |
| Other monetary funds on demand | 40,323,755.00 | 208.00 |
| Central bank deposit on demand | 0.00 | 0.00 |
| Deposits in other banks | 0.00 | 0.00 |
| Call loans to banks | 0.00 | 0.00 |
| II. Cash equivalents | 0.00 | 0.00 |
| Of which: bond investment due within three months | 0.00 | 0.00 |
| III. Ending balance of cash and cash equivalents | 43,089,999,591.00 | 47,913,287,583.00 |
| Of which: cash and cash equivalents with restricted use by the Company as the parent and its subsidiaries | 40,323,755.00 | 276,176,580.00 |
Other notes:Naught
62. Notes to Items in Statements of Changes in Owners’ Equity
Notes to names under the item of “Other” in the adjusted ending balance for the same period of last year and the corresponding
amount: Naught
63. Assets with Restricted Ownership or Right to Use
Unit: RMB
| Item | Ending carrying value | Reason for restriction |
| Monetary capital | 7,491,910,832.00 | Pledged for guarantee and as cash deposit |
| Notes receivable | 337,614,015.00 | Discounted transfer with recourse attached, negotiability with recourse attached and pledged for issuing notes payable |
| Inventories | 0.00 | Naught |
| Fixed assets | 58,386,289,547.00 | Mortgaged for guarantee |
| Intangible assets | 919,408,714.00 | Mortgaged for guarantee |
| Investment property | 202,627,706.00 | Mortgaged for guarantee |
| Construction in progress | 8,516,973,161.00 | Mortgaged for guarantee |
| Total | 75,854,823,975.00 | -- |
Other notes:
Naught
64. Foreign Currency Monetary Items(1) Foreign Currency Monetary Items
Unit: RMB
| Item | Ending foreign currency balance | Exchange rate | Ending balance converted to RMB |
| Monetary capital | -- | -- | 23,568,500,377.00 |
| Including: USD | 3,437,058,144.00 | 6.6166 | 22,741,638,918.00 |
| EUR | 104,410,058.00 | 7.6515 | 798,893,561.00 |
| HKD | 33,172,694.00 | 0.8431 | 27,967,898.00 |
| Accounts receivable | -- | -- | 12,559,344,002.00 |
| Including: USD | 1,871,351,669.00 | 6.6166 | 12,381,985,455.00 |
| EUR | 23,178,911.00 | 7.6515 | 177,353,441.00 |
| HKD | 6,056.00 | 0.8431 | 5,106.00 |
| Long-term borrowings | -- | -- | 38,801,386,244.00 |
| Including: USD | 5,557,751,340.00 | 6.6166 | 36,773,417,517.00 |
| EUR | 265,043,157.00 | 7.6515 | 2,027,968,727.00 |
| HKD | 0.00 | 0.00 | 0 |
Other notes:
Naught
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, RecordingCurrency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, RelevantReasons Shall Be Disclosed.
□ Applicable √ Not applicable
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control(1) Business Combination Not under the Same Control
Unit: RMB
| Name of the acquiree | Date of equity acquisition | Cost of equity acquisition | Proportion of equity acquired | Way of equity acquisition | Purchase date | Determination basis for the purchase date | Income of the acquiree from the purchase date to the period-end | Net profit of the acquiree from the purchase date to the period-end |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 30 April 2018 | N/A | N/A | N/A | 30 April 2018 | Actual control is materialized by amending the articles of association. | 2,160,966.00 | -29,877,124.00 |
| SES Imagotag SA | 6 February 2018 | N/A | N/A | N/A | 6 February 2018 | Holding director position in the acquiree enables actual control | 580,917,653.00 | -12,075,109.00 |
Other notes:
Naught
(2) Combination Cost and Goodwill
Unit: RMB
| Combination cost | Mianyang BOE Optoelectronics | SES Imagotag SA |
| Technology Co., Ltd. | ||
| --Cash | 0.00 | 0.00 |
| --Fair value of non-cash assets | 0.00 | 0.00 |
| --Fair value of debt issued or undertaken | 0.00 | 0.00 |
| --Fair value of equity securities issued | 0.00 | 0.00 |
| --Fair value of contingent consideration | 0.00 | 0.00 |
| --Fair value on the purchase date of equity held before the purchase date | 5,096,852,083.00 | 1,684,264,952.00 |
| --Other | 0.00 | 0.00 |
| Total combination cost | 5,096,852,083.00 | 1,684,264,952.00 |
| Less: Share of fair value of net identifiable assets acquired | 5,096,852,083.00 | 1,040,749,595.00 |
| Difference between goodwill/combination cost and share of fair value of net identifiable assets acquired | 0.00 | 643,515,357.00 |
Notes to the method of determining the fair value of combination cost, contingent consideration and changes:
NaughtMain reason for the formation of large amount goodwill:
NaughtOther notes:
Naught
(3) Identifiable Assets and Liabilities of the Acquiree on the Purchase Date
Unit: RMB
| Item | Mianyang BOE Optoelectronics Technology Co., Ltd. | SES Imagotag SA | ||
| Fair value on the purchase date | Carrying value on the purchase date | Fair value on the purchase date | Carrying value on the purchase date | |
| Assets: | 8,611,283,542.00 | 8,611,283,542.00 | 3,642,654,626.00 | 1,604,702,897.00 |
| Monetary capital | 5,077,088,102.00 | 5,077,088,102.00 | 177,550,092.00 | 177,550,092.00 |
| Accounts receivable | 23,905,024.00 | 23,905,024.00 | 267,885,852.00 | 267,885,852.00 |
| Inventories | 0.00 | 0.00 | 583,631,953.00 | 583,631,953.00 |
| Fixed assets | 3,577,015.00 | 3,577,015.00 | 89,664,932.00 | 89,664,932.00 |
| Intangible assets | 282,573,282.00 | 282,573,282.00 | 2,359,287,597.00 | 321,335,868.00 |
| Liabilities: | 328,897,967.00 | 328,897,967.00 | 1,709,572,956.00 | 1,030,308,065.00 |
| Borrowings | 0.00 | 0.00 | 394,087,746.00 | 394,087,746.00 |
| Accounts payable | 218,856,788.00 | 218,856,788.00 | 381,180,346.00 | 381,180,346.00 |
| Deferred income tax liabilities | 0.00 | 0.00 | 688,332,624.00 | 9,067,734.00 |
| Net assets | 8,282,385,575.00 | 8,282,385,575.00 | 1,933,081,670.00 | 574,394,832.00 |
| Less: non-controlling interests | 3,185,533,492.00 | 3,185,533,492.00 | 892,332,075.00 | 265,140,654.00 |
| Net assets acquired | 5,096,852,083.00 | 5,096,852,083.00 | 1,040,749,595.00 | 309,254,178.00 |
Method of determining the fair value of identifiable assets and liabilities:
For the above identifiable assets existing in the active market, the fair value was determined based on the quotation in the activemarket; for those not existing but with similar assets existing in the active market, the fair value was determined by reference to themarket price of the similar assets; for those not existing and without similar assets existing in the active market, the fair value wasdetermined by valuation technique.For the above identifiable liabilities, taking the amount payable or the present value of the amount payable as the fair value.Contingent liabilities of the acquire born in the business combination:
NaughtOther notes:
Naught
(4) Gains or Losses from Re-measurement of Equity at Fair Value Held before the Purchase Date
Was there a transaction achieving business combination through two or more transactions and achieving the control power during theReporting Period
□ Yes √ No
(5) Notes to Failure of Reasonably Determining the Consolidated Consideration or the Fair Value of the
Acquiree’s Identifiable Assets and Liabilities on the Purchase Date or the Period-end
Naught
(6) Other Notes
Naught
2. Changes in the Scope of Combination for Other Reasons
Notes to changes in the scope of combination for other reasons (such as set up new subsidiaries, liquidation of subsidiaries, etc.) andrelated information:
The Company set up one wholly-owned subsidiary in 2018 that was Beijing BOE Sensor Technology Co., Ltd.
3. Other
Naught
IX. Equity in Other Entities
1. Equity in Subsidiary(1) Subsidiaries
| Name | Main operating place | Registration place | Nature of business | Holding percentage (%) | Way of gaining | |
| Directly | Indirectly | |||||
| Beijing BOE Optoelectronics Technology Co., Ltd. | Beijing, China | Beijing, China | Research, development, design and manufacture of TFT-LCD | 82.49% | 17.51% | Investment |
| Chengdu BOE Optoelectronics Technology Co., Ltd. (“Chengdu Optoelectronics”) | Chengdu, China | Chengdu, China | R&D, design, production and sales of new display devices and modules and other electronic components | 100.00% | 0.00% | Business combination not under the same control |
| Hefei BOE Optoelectronics Technology Co., Ltd. | Hefei, China | Hefei, China | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products | 100.00% | 0.00% | Business combination not under the same control |
| Beijing BOE Display Technology Co., Ltd. (“Beijing BOE Display”) | Beijing, China | Beijing, China | Development of TFT-LCD, manufacture and sale of LCD | 97.17% | 2.83% | Investment |
| Hefei Xinsheng Optoelectronics | Hefei, China | Hefei, China | Investment, | 84.59% | 0.03% | Business combination |
| Technology Co., Ltd. | construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products | not under the same control | ||||
| Ordos Yuansheng Optoelectronics Co., Ltd. (“Yuansheng Optoelectronics”) | Ordos, China | Ordos, China | Manufacture and sales of AM-OLED products and auxiliary products | 100.00% | 0.00% | Investment |
| Chongqing BOE Optoelectronics Technology Co., Ltd. (“Chongqing BOE”) | Chongqing, China | Chongqing, China | R&D, production and sales of semi-conducting display devices, complete machine and related products; import&export of goods and technology consulting | 100.00% | 0.00% | Business combination not under the same control |
| Fuzhou BOE Optoelectronic Technology Co., Ltd. (“Fuzhou BOE”) | Fuzhou, China | Fuzhou, China | Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products | 80.96% | 0.00% | Business combination not under the same control |
| Beijing BOE Video Technology Co., Ltd. (“BOE Video”) | Beijing, China | Beijing, China | Manufacture of LCD TV, LCD; technology development of terminal products and systems such as TFT-LCD | 100.00% | 0.00% | Investment |
| display and TV | ||||||
| Beijing BOE Vacuum Electronics Co., Ltd. | Beijing, China | Beijing, China | Manufacture and sale of vacuum electronic products | 55.00% | 0.00% | Investment |
| Beijing BOE Vacuum Technology Co., Ltd. | Beijing, China | Beijing, China | Manufacture and sale of electronic tubes | 100.00% | 0.00% | Investment |
| Beijing BOE Special Display Technology Co., Ltd. (“Special Display”) | Beijing, China | Beijing, China | Development of display products and sale of electronic products | 100.00% | 0.00% | Investment |
| Beijing Yinghe Century Co., Ltd. | Beijing, China | Beijing, China | Management of engineering projects; real estate development; public parking lot for motor vehicles service; office lease | 100.00% | 0.00% | Investment |
| BOE Optical Science and Technology Co., Ltd. (“Optical Science and Technology”) | Suzhou, China | Suzhou, China | R&D, production and sales of LCD, back light for display and related components | 95.17% | 0.00% | Investment |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | Beijing, China | Beijing, China | Development, manufacture and sale of liquid display for mobile termination | 75.00% | 0.00% | Investment |
| BOE (Hebei) Mobile Technology Co., Ltd. (“BOE Hebei”) | Langfang, China | Langfang, China | Manufacture and sale of mobile flat screen display technical products and related services | 100.00% | 0.00% | Investment |
| Beijing BOE Multimedia Technology Co. Ltd. (“BOE Multimedia”) | Beijing, China | Beijing, China | Sale of computer software and hardware, the numeral regards the audio frequency technology | 100.00% | 0.00% | Investment |
| Beijing BOE Energy Technology Co., Ltd. (“BOE Energy”) | Beijing, China | Beijing, China | Design, consultancy and service of solar cell, photovoltaic system, wind power system and solar thermal system as well as the assembly units; energy-saving service | 100.00% | 0.00% | Investment |
| Beijing BOE Smart Commerce Co., Ltd. (“BOE Smart Commerce”) | Beijing, China | Beijing, China | Technology promotion, property management, and sales of electronic products | 100.00% | 0.00% | Investment |
| Beijing Zhongxiangying Technology Co., Ltd. (“Zhongxiangying”) | Beijing, China | Beijing, China | Technology promotion, property management, and sales of electronic products | 100.00% | 0.00% | Investment |
| Erdos Haosheng Energy Investment Co., Ltd. (“Haosheng Energy”) | Ordos, China | Ordos, China | Energy investment | 20.00% | 80.00% | Investment |
| Beijing BOE Semi-conductor Co., Ltd. | Beijing, China | Beijing, China | Processing, manufacturing and sales of precision electronic components, semi-conductor devices, micro modules, | 80.77% | 0.00% | Investment |
| microelectronic devices and electronic materials; import&export of goods | ||||||
| BOE Optoelectronics Holding Co., Ltd (“Optoelectronics Holding”) | Hong Kong, China | Virgin Islands, British | Design, manufacturing and sales of electronic-information industry related products, investment and financing businesses | 100.00% | 0.00% | Investment |
| Beijing Asahi Electronic Materials Co., Ltd. | Beijing, China | Beijing, China | Sales of TV bracket glass rod and CTV low-melting-point solder glass | 100.00% | 0.00% | Business combination not under the same control |
| BOE Health Investment Management Co., Ltd. (“Health Investment”) | Beijing, China | Beijing, China | Investment management and project investment | 100.00% | 0.00% | Business combination not under the same control |
| Beijing?Matsushita Color CRT Co., Ltd. (“Matsushita Color CRT”) | Beijing, China | Beijing, China | Color TV set, Display tube, color RPTV projection tube and materials of electronic components; property management and parking services, etc. | 88.80% | 0.00% | Business combination not under the same control |
| Hefei BOE Display Technology Co., Ltd. (“Hefei Technology”) | Hefei, China | Hefei, China | Investment, R & D and production of products related to TFT-LCD and the supporting facility | 8.33% | 0.00% | Business combination not under the same control |
| Beijing BOE Technology | Beijing, China | Beijing, China | Development, transfer, | 100.00% | 0.00% | Investment |
| Development Co., Ltd. (“Technology Development”) | consulting and service of technology | |||||
| BOE Intelligent Technology Co., Ltd. (“Intelligent Technology”) | Beijing, China | Beijing, China | Development, transfer, consulting, service and promotion of technology | 100.00% | 0.00% | Investment |
| Hefei BOE Zhuoyin Technology Co., Ltd. (“Zhuoyin Technology”) | Hefei, China | Hefei, China | Investment, construction, R&D, production and sales of products related to OLED display device and auxiliary products | 75.05% | 0.00% | Investment |
| Beijing BOE Real Estate Co., Ltd. | Beijing, China | Beijing, China | Development, construction, property management and supporting service of industrial plants and supporting facilities; information consulting of real estate; lease of commercial facilities, commercial attendants and the supporting service facilities; motor vehicles public parking service | 70.00% | 0.00% | Investment |
| Beijing BOE Marketing Co., Ltd. | Beijing, China | Beijing, China | Sales of communication equipment, hardward&software of computer and peripheral | 100.00% | 0.00% | Investment |
| units, electronic products, equipment maintenance; development, transfer, consulting and service providing of technologies; import&export of goods and technologies, agency of import&export; manufacturing consignment of electronic products and LCD devices | ||||||
| Kunming BOE Display Technology Co., Ltd. | Kunming, China | Kunming, China | Development, spread, transfer, consulting and service providing of display technology; service providing of computer software/hardware and network systems; construction, operation and management of e-commerce platforms; service providing of conferences; undertaking of exhibitions; computer | 81.25% | 0.00% | Investment |
| animation design; production, R7D and sales of OLED micro display devices and AR/VR complete machine; storage services; project investment and corresponding management; import&export of goods and technologies; lease of houses and mechanical equipment | ||||||
| Mianyang BOE Optoelectronic Technology Co., Ltd. | Mianyang, China | Mianyang, China | Production of display panel for high-end smart phones, folding laptops etc. and R&D, production and sales of modules | 61.54% | 0.00% | Business combination not under the same control |
| Beijing BOE Senor Technology Co., Ltd. | Beijing, China | Beijing, China | Development, testing, consulting, service and transfer of technologies in X-ray sensors, micro fluidic chips, biochemical chips, gene chips, security sensors, microwave antenna, biological sensors, internet of things, and | 100.00% | 0.00% | Investment |
Explanations that the shareholding percentage is different from the voting right percentage in subsidiaries:
NaughtBasis for the control over the investees with half or less voting right and for not controlling the investees with over half voting right:
The Company held 8.33% shares of Hefei BOE Display but had control power over it owing to the signing of acting in concert agreement with Hefei Construction Investment and Holding Co.,Ltd. and Hefei Xinping Industrial Investment Fund (limited partnership) in November 2016.Basis for the control over the significant structured entities included in the scope of combination:
NaughtBasis for the determining the Company as the agent or the trustor:
NaughtOther notes:
Naught
(2) Significant Not Wholly-owned Subsidiary
Unit: RMB
| Name | Shareholding proportion of non-controlling interests | The profit or loss attributable to non-controlling interests | Declaring dividends distributed to non-controlling interests | Ending balance of non-controlling interests |
| None |
Notes that the shareholding percentage is different from the voting right percentage of non-controlling shareholders in subsidiaries:
NaughtOther notes:
Naught
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
| Name | Ending balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liability | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liability | Total liabilities | |
| None | ||||||||||||
Unit: RMB
| Name | Reporting Period | Same period of last year | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| None | ||||||||
Other notes: naught
(4) Significant Limitation on the Use of Assets and Liquidation of Debts of the Company
Naught
(5) Financial Support or Other Support Provided for Structured Entities Included in the Scope ofConsolidated Financial Statements
NaughtOther notes: naught
2. The Transaction Resulting in Changes in Owner’s Equity of Subsidiary but Still Controlling the
Subsidiary
(1) Explanations on Changes in Owner’s Equity of Subsidiary
The Company increased its investment in Hefei BOE Display of RMB448,000,000 in April 2018; Hefei Xinping IndustrialInvestment Fund (limited partnership) increased its investment in Hefei BOE Display of RMB4,000,000,000 in April 2018. TheCompany held 7.94% shares of Hefei BOE Display before the capital increase and 8.33% shares after the capital increase.
(2) The Effects of the Transaction on Non-controlling Interests and Equity Attributable to Owners of theCompany as the Parent
Unit: RMB
| Hefei BOE Display | |
| Purchase cost/disposal consideration | 448,000,000.00 |
| --Cash | 448,000,000.00 |
| -Fair value of non-cash assets | 0.00 |
| Total of purchase cost /disposal consideration | 448,000,000.00 |
| Less: subsidiary net assets proportion calculated by share proportion obtained/disposal | 446,511,954.20 |
| Difference | 1,488,045.80 |
| Of which: Adjustment of capital reserves | 1,488,045.80 |
| Surplus reserves adjustments | 0.00 |
| Retained profits adjustments | 0.00 |
Other notesNaught
3. Equity in Joint Ventures or Associated Enterprises(1) Summary Financial Information of Insignificant Joint Ventures and Associated Enterprises
Unit: RMB
| Item | Ending balance/Reporting Period | Beginning balance/same period of last year |
| Joint ventures: | -- | -- |
| Total carrying value of investment | 842,979,567.00 | 2,793,732,185.00 |
| Total of the following items calculated by shareholding proportion | -- | -- |
| --net profit | -3,900,535.00 | -23,677,815.00 |
| --other comprehensive income | 0.00 | 0.00 |
| --total comprehensive income | -3,900,535.00 | -23,677,815.00 |
| Associated enterprise: | -- | -- |
| Total carrying value of investment | 2,600,836,066.00 | 4,672,259,202.00 |
| Total of the following items calculated by shareholding proportion | -- | -- |
| --net profit | -25,678,044.00 | 23,846,849.00 |
| --other comprehensive income | 4,151,942.00 | 76,051,151.00 |
| --total comprehensive income | -21,526,102.00 | 99,898,000.00 |
Other notesNaught
(2) Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
| Name | Accumulated recognized losses in the prior period of unrecognization | The current unrecognized losses (the current net profit shared) | Accumulated unrecognized losses at the period-end |
| N/A | 0.00 | 0.00 | 0.00 |
Other notesNaught
4. Other
X. The Risk Related to Financial Instruments
Risks related to financial instruments in daily activities for the Group include:
- Credit risk- Liquidity risk- Interest rate risk- Foreign exchange risk- Other price risksThe risk exposure and causes, changes in this year, risk management objectives, policies and procedures, methods of measuring risksand changes in this year will be discussed below.Risk management objective of the Company is to balance the risks and profits, minimize the negative effects to business performanceand maximize the profits for stockholders and other equity investors. On the basis of risk management objectives, basic strategies ofrisk management are to determine and analyze all possible risks, establish appropriate risk baseline, control and manage risks andmonitor all risks timely and reliably within defined scope. The Group will regularly review the risk management policies and internalcontrol system to adapt to the market and changes of operating activities. The Internal Audit Department will regularly review orrandomly inspect whether implementation of internal control system satisfies risk management policies.(1) Credit RiskCredit risk is the possibility of financial loss to one party of financial instruments from unfulfillment of obligations of the other party.
Credit risk of the Group mainly comes from accounts receivable. The management of this group will monitor the credit riskexposure.Except that the monetary capital (other than cash) is deposited in financing institution with good credit, the management does not
believe that other important credit risks exist or losses are not expected to be made to the group due to the other party’s breach.
For the accounts receivable, the board of directors has formulated the credit policies according to actual conditions to determine the
credit sale limit and credit term by credit assessment. Credit assessment is performed according to customer s’ financial situation,
external ratings and transaction history. Relevant accounts receivable will expire within 15-120 days after billing date. Debtor ofaccounts receivable overdue will be required to pay off the outstanding balance to obtain the credit line.In order to monitor the credit risk, this group will analyze the customer data by aging, maturity date and other factors.Credit risk of this group is affected by the customer characteristics, but not the industry, country or region. Therefore, concentrationof important credit risk is relied on the important accounts receivable of individual customers. On balance sheet date, accountsreceivable of the Group and top 5 customers account for 46% and1.7% respectively of all receivables (37% and 0.2% in 2017).Furthermore, accounts receivable without expiry or decrease in value are most related to customers without arrears recently.The largest credit risk exposure of this group is the book amount of each financial asset on the balance sheet. Until 30 June 2018, thegroup did not provide any guaranty that may cause credit risk.(2) Liquidity RiskLiquidity risk refers to that with capital shortage when the Company is fulfilling obligations of cash payment or payment by otherfinancial assets methods. The Company and its subsidiaries are responsible for its own cash management, including short-terminvestment of cash surplus and loan financing to satisfy prospective cash needs (if the borrowing exceeds preauthorized upper limit,
it shall be approved by the board of directors). It is the group’s policy to regularly monitor short-term and long-term circulating
capital needs and confirm whether it satisfies loan agreement in order to keep sufficient cash reserve and negotiable securitiesavailable for realization and obtain sufficient reserve fund as promised by financing institution to satisfy the demands of short-termand long-term circulating capital.(3) Interest Rate RiskInterest bearing financial instruments of fixed interest rate and floating interest rate will impose interest rate risks of fair value andcash flow on the Group. Proportion of fixed interest rate and floating interest rate instruments is decided by marketing environment.The Group will regularly review and maintain the combination of fixed and floating interest rate instruments. The Group will nothedge interest rate risk by derivative financial instruments.
Until 30 June 2018, under the circumstance without changes of other variables，it is supposed that the rising/ falling interest rate at
100 base points will result in reduction/ increase of RMB426.29 million (RMB123.36 million in 2017) for net profits and
stockholders’ equity.
Until balance sheet date, the group has not held any financial instruments that may impose fair value interest rate risk on the Group.For the floating interest rate but not derivative instruments held by the Group and imposing the Group with interest rate risk of cash
flow on balance sheet date, the net profits and owners’ equity in the above sensitivity analysis will affect the annual interest expenses
or income due to above variation of interest rate.(4) Foreign Exchange RiskFor the monetary capital, accounts receivable and payable, short-term borrowing and other foreign currency assets and liabilities notvalued by bookkeeping base currency, if short-term unbalance occurs, the Group will buy or sell the foreign currencies at marketexchange rate to maintain net risk exposure at an acceptable level.(a) On 30 June 2018, the foreign assets liabilities item with significant risk exposure settled by USD, the total net assets exposure ofUSD item risk exposure was USD2,287,326,359 (net liabilities exposure USD2,282,216,777 in 2017) discounted into RMB wasRMB15,134,323,588 (RMB14,912,460,861 in 2017) at spot rate on balance sheet date. The Differences arising from translation offoreign currency-denominated financial statements was excluded.(b) Under the circumstance without changes of other variables, 5% fluctuation in exchange rate of RMB against USD will result in
reduction / increase of RMB42,476,534 (RMB199,436,178 in 2017) for stockholders’ equity and net profits.
Above sensitivity analysis is performed based on changes of exchange rate on balance sheet date and re-measurement of financialinstruments of foreign exchange risk according to changed exchange rate held by the Group on balance sheet date. Above analysisexcludes differences of the foreign currency conversion. Analysis of the last year is based on similar assumption and methods.(5) Other Price RisksOther price risks include equity price risk, commodity price risk, etc.
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
| Item | Ending fair value | |||
| Fair value measurement items at level 1 | Fair value measurement items at level 2 | Fair value measurement items at level 3 | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
| (I) Financial assets at fair value through profit or loss | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Trading financial assets | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Debt instruments investment | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Equity instruments investment | 0.00 | 0.00 | 0.00 | 0.00 |
| (3) Derivative financial assets | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Financial assets assigned measured by fair value and the changes be included in the current gains and losses | 0.00 | 0.00 | 0.00 | 0.00 |
| (1) Debt instruments investment | 0.00 | 0.00 | 0.00 | 0.00 |
| (2) Equity instruments investment | 0.00 | 0.00 | 0.00 | 0.00 |
| (II) Available-for-sale financial assets | 417,386,467.00 | 0.00 | 11,386,974,622.00 | 11,804,361,089.00 |
| (1) Debt instruments investment | 0.00 | 0.00 | 11,553,581.00 | 11,553,581.00 |
| (2) Equity instruments investment | 417,386,467.00 | 0.00 | 0.00 | 417,386,467.00 |
| (3) Other | 0.00 | 0.00 | 11,375,421,041.00 | 11,375,421,041.00 |
| (III)Investment property | 0.00 | 0.00 | 0.00 | 0.00 |
| 1. Lease the land use right | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Rental buildings | 0.00 | 0.00 | 0.00 | 0.00 |
| 3. Land use right held and prepared to transfer after appreciation | 0.00 | 0.00 | 0.00 | 0.00 |
| (IV)Biological assets | 0.00 | 0.00 | 0.00 | 0.00 |
| 1.Consumable biological assets | 0.00 | 0.00 | 0.00 | 0.00 |
| 2. Productive living assets | 0.00 | 0.00 | 0.00 | 0.00 |
| Total assets of consistent fair value measurement | 417,386,467.00 | 0.00 | 11,386,974,622.00 | 11,804,361,089.00 |
| (V)Trading financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 |
| Of which: tradable bond issued | 0.00 | 0.00 | 0.00 | 0.00 |
| Derivative financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 |
| Others | 0.00 | 0.00 | 0.00 | 0.00 |
| (VI) Refer as financial liabilities measured by fair value and the changes included in the current gains and losses | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities of consistent fair value measurement | 0.00 | 0.00 | 0.00 | 0.00 |
| II. Inconsistent fair value measurement | -- | -- | -- | -- |
| (I) Held-to-maturity assets | 0.00 | 0.00 | 0.00 | 0.00 |
| Total assets inconsistently measured at fair value | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities inconsistent measured at fair value | 0.00 | 0.00 | 0.00 | 0.00 |
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
The unadjusted offer in active market obtaining same assets or liabilities on calculation date
3. Consistent and Inconsistent Fair value Measurement Items at Level 2, Valuation Techniques Adopted,the Qualitative and Quantitative Information of Important Parameters
Observable input value of related assets or liabilities except level 1 input value
4. Consistent and Inconsistent Fair Value Measurement Items at Level 3, Valuation Techniques Adopted,the Qualitative and Quantitative Information of Important Parameters
The unobservable input value of related assets or liabilities
5. Consistent Fair Value Measurement Items at Level 3, Adjustment between the Beginning CarryingValue and the Ending Carrying Value and Sensitivity Analysis on Unobservable Parameters
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6. Explain the Reason for Conversion and the Policy Governing when the Conversion Happens ifConversion Happens among Consistent Fair Value Measurement Items at Different Levels
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7. Changes in Valuation Techniques in the Reporting Period and Reasons for the Changes
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8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
Naught
9. Other
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XII. Connected Party and Connected Transaction
1. Information on the Company as the Parent
| Name | Registration place | Nature of business | Registered capital | Proportion of share held by the Company as the parent against the | Proportion of voting rights owned by the Company as the parent against the |
| Company (%) | Company (%) | ||||
| Electronics Holding | No.12 Jiuxian Bridge, Zhaoyang District, Beijing | Operation and management of state-owned assets within authorization | RMB 2,418,350,000.00 | 0.79% | 11.32% |
Notes to the Company as the parent:
NaughtThe final controller of the Company is Beijing Electronics Holding Co., Ltd.Other notes:
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2. Subsidiaries of the Company
Refer to Note IX.-1 for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
For information of significant joint ventures or associated enterprises of the Company, please refer to Note IX-3.List of other joint ventures and associated enterprises that made connected transactions with the Company generating balance duringor before the Reporting Period:
| Name | Relationship with the Company |
| Beijing Nittan Electronic Co., Ltd. | Associated enterprise of the Group and the Company |
| Beijing Nissin Electronics Precision Component Co., Ltd. | Associated enterprise of the Group and the Company |
| TPV Display Technology (China) Limited | Associated enterprise of the Group and the Company |
| Beijing Xindongneng Investment Management Co., Ltd. | Associated enterprise of the Group and the Company |
| Shenzhen Yunyinggu Technology Co., Ltd. | Associated enterprise of the Group and the Company |
| CnogaMedical Ltd. | Associated enterprise of the Group and the Company |
| Beijing BOE Yiyun Technology Co., Ltd. | Joint venture of the Group and the Company |
| Chongqing BOE Display Technology Co., Ltd. | Associated enterprise of the Group and the Company |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | Joint venture of the Group and the Company |
Other notesNaught
4. Information on Other Connected Parties
| Name | Relationship with the Company |
| Beijing BOE Investment Development Co., Ltd. | Controlled by the same ultimate holding company |
| NAURA Technology Group Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing BBEF Science & Technology Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Zhengdong Electronic Power Group Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Yandong Microelectronic Co., Ltd., | Controlled by the same ultimate holding company |
| Beijing Dongdian Industrial Development Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Sevenstar Huadian Technology Group Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Sevenstar Integrated Circuit Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Zhaowei Technology Development Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Zhaowei Intelligent Equipment Co., Ltd. | Controlled by the same ultimate holding company |
| Xin Xiang Microelectronic (Hong Kong) Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Ether Electronics Group Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing North Microelectronics Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing Zhaowei Electronic Group Co., Ltd. | Controlled by the same ultimate holding company |
| Beijing PCB Square Corporation | Controlled by the same ultimate holding company |
| Beijing Yansong Trading Co., Ltd. | Controlled by the same ultimate holding company |
| BAIC BJEV | Other connected party |
Other notesNaught
5. List of Connected Transactions(1) Information on Acquisition of Goods and Reception of Labor Service (Unit: Ten Thousand Yuan)Information on acquisition of goods and reception of labor service
Unit: RMB
| Connected party | Content | Reporting Period | The approval trade credit | Whether exceed trade credit or not | Same period of last year |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Purchase of goods | 226,147,968.00 | 890,000,000.00 | No | 158,505,273.00 |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Accepting labor service | 1,887,192.00 | 4,000,000.00 | No | 1,640,754.00 |
| Other connected party | Purchase of goods | 7,719,867.00 | 450,000,000.00 | No | 5,847,243.00 |
Information of sales of goods and provision of labor service
Unit: RMB
| Connected party | Content | Reporting Period | Same period of last year |
| Beijing Electronics Holding | Sales of goods | 403,808.00 | 1,718,201.00 |
| Co., Ltd and its affiliated companies | |||
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Providing labor service | 45,745.00 | 48,192.00 |
| Other connected party | Sales of goods | 3,239,373.00 | 44,248,480.00 |
| Other connected party | Providing labor service | 6,253,228.00 | 223,757.00 |
Notes:
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(2) Connected Trusteeship/Contract and Entrust/Contractee
Lists of connected trusteeship/contract:
Unit: RMB
| Name of the entruster/contractee | Name of the entrustee/ contractor | Type | Start date | Due date | Pricing basis | Income recognized in the Reporting Period |
| Naught |
Notes:NaughtLists of entrust/contractee
Unit: RMB
| Name of the entruster/contractee | Name of the entrustee/ contractor | Type | Start date | Due date | Pricing basis | Income recognized in the Reporting Period |
| Naught |
Notes:Naught
(3) Information on Connected LeaseThe Company served as the lessor:
Unit: RMB
| Name of lessee | Category of leased assets | The lease income confirmed in the Reporting Period | The lease income confirmed in the same period of last year |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Investment property | 757,937.00 | 639,813.00 |
| Other connected party | Investment property | 692,573.00 | 1,767,383.00 |
The Company served as the lessee:
Unit: RMB
| Name of lessor | Category of leased assets | The lease income confirmed in the Reporting Period | The lease income confirmed in the same period of last year |
| Beijing Electronics Holding Co., Ltd and its affiliated companies | Fixed assets | 1,218,031.00 | 18,239.00 |
Notes to connected leaseNaught
(4) Connected Guarantee
The Company served as the guarantee
Unit: RMB
| Secured party | Amount | Start date | Due date | Whether completely performed |
| Naught |
The Company served as the secured party
Unit: RMB
| Guarantee | Amount | Start date | Due date | Whether completely performed |
| Naught |
Notes to connected guaranteeNaught
(5) Interbank Borrowing and Lending of Capital by Connected Party
Unit: RMB
| Connected party | Amount | Start date | Due date | Note |
| Borrowings | ||||
| Naught | ||||
| Lending | ||||
| Naught | ||||
(6) Assets Transfer and Debt Restructuring of Connected Party
Unit: RMB
| Connected party | Content | Reporting Period | Same period of last year |
| Naught |
(7) Remuneration for Key Management Personnel
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Remuneration for key management personnel | 50,069,577.00 | 28,603,916.00 |
(8) Other Connected Transactions
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6. Accounts Receivable and Payable of Connected Party(1) Accounts Receivable
Unit: RMB
| Item | Connected party | Ending balance | Beginning balance | ||
| Carrying amount | Bad debt provision | Carrying amount | Bad debt provision | ||
| Accounts receivable | Beijing Electronics Holding Co., Ltd and its affiliated companies | 634,412.00 | 0.00 | 23,518.00 | 0.00 |
| Accounts receivable | Other connected parties | 28,871,587.00 | 0.00 | 9,577,206.00 | 0.00 |
| Other accounts receivable | Beijing Electronics Holding Co., Ltd and its affiliated companies | 6,500.00 | 0.00 | 6,500.00 | 0.00 |
| Other accounts receivable | Other connected parties | 4,676,079.00 | 0.00 | 27,584,817.00 | 0.00 |
(2) Accounts Payable
Unit: RMB
| Item | Connected party | Ending carrying balance | Beginning carrying balance |
| Accounts payable | Beijing Electronics Holding Co., Ltd and its affiliated companies | 24,642,268.00 | 4,775,947.00 |
| Accounts payable | Other connected parties | 13,173,692.00 | 9,756,547.00 |
| Other accounts payable | Beijing Electronics Holding Co., Ltd and its affiliated | 104,973,788.00 | 132,845,171.00 |
| companies | |||
| Other accounts payable | Other connected parties | 918,874.00 | 976,392.00 |
7. Commitments of Connected Party8. Other
XIII. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date(1) Capital Commitments
| The Group | 30 June 2018 | 31 December 2017 |
| Investment contracts entered into but not performed or performed partially | 67,111,933,917.00 | 51,309,042,746.00 |
| Investment contracts authorized but not entered into | 43,313,486,071.00 | 37,485,065,035.00 |
| Total | 110,425,419,988.00 | 88,794,107,781.00 |
| The Group | 30 June 2018 | 31 December 2017 |
| Investment contracts entered into but not performed or performed partially | 38,492,643,013.00 | 40,532,322,288.00 |
| Investment contracts authorized but not entered into | 0.00 | 0.00 |
| Total | 38,492,643,013.00 | 40,532,322,288.00 |
(2) Operating Commitments
| The Group | 30 June 2018 | 31 December 2017 |
| Within 1 year (including 1 year) | 59,848,792.00 | 31,054,096.00 |
| Over 1 year and within 2 years (including 2 year) | 35,019,468.00 | 27,481,454.00 |
| Over 2 year and within 3 years (including 3 year) | 20,585,027.00 | 20,499,253.00 |
| Over 3 years | 76,595,062.00 | 87,810,970.00 |
| Total | 192,048,349.00 | 166,845,773.00 |
2. Contingency(1) Significant Contingency on the Balance Sheet Date
There was no significant contingency on the balance sheet date.
(2) Explanations Should Also Be Given when there Was No Significant Contingency to Disclose
There was no significant contingency to disclose.
3. Other
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XIV. Other Significant Events
1. Segment Information(1) Recognition Basis and Accounting Policies of Reportable Segment
(1) Segment Reporting ConsiderationsThe Group principal decision-makers review the operation performance and distribute resources in accordance to the businesssegments below.
(a) Display and Sensor Device – divided into the display and sensor device sub-division and the sensor and application solution
sub-division.
(b) IoT-Based Smart System –divided into the smart manufacturing service sub-division, the IoT solution sub-division and the
digital art IoT platform sub-division.
(c)Smart healthcare service division –divided into the mobile healthcare IoT platform sub-division and the smart healthcare service
sub-division.(d) Others - other service mainly includes technical development service and patent maintenance serviceThe main reason to separate the segments is that the Group independently manages the intelligent interface device and solutiondivision, the smart system and solution division, the smart healthcare service division and the other businesses. Because the businesssegments manufacture and distribute different products, apply to different manufacturing processes and specify in gross profit, thebusiness segments are managed independently. The management evaluates the performance and allocates resources according to theprofit of each business segment and does not take financing cost and investment income into account.(2) Accounting Policy for the Measurements of Segment Profit or Loss, Assets and Liabilities
For the purposes of assessing segment performance and allocating resources between segments, the Group’s management regularly
reviews the assets, liabilities, revenue, cost and results of operations, attributable to each reportable segment on the following bases:
Segment assets include all tangible, intangible, other non-current and current assets, such as accounts receivable, with the exceptionof deferred tax assets and other unallocated corporate assets. Segment liabilities include payables, bank borrowings and othernon-current liabilities attributable to the individual segments, but exclude deferred tax liabilities and other unallocated corporateliabilities.Financial performance is operating income (including operating income from external customers and inter-segment operating income)
after deducting expenses, depreciation, amortization, impairment losses, gains or losses from changes in fair value, investment gain,non-operating income and expenses and income tax expenses attributable to the individual segments. Inter-segment sales aredetermined with reference to prices charged to external parties for similar orders.
(2) The Financial Information of Reportable Segment
Unit: RMB
| Item | Display and Sensor | IoT Smart system | Smart healthcare service | Others | Offset among segment | Total |
| Operation revenue | 39,168,994,378.00 | 7,347,282,083.00 | 526,401,626.00 | 2,536,686,461.00 | -6,105,459,582.00 | 43,473,904,966.00 |
| Cost of sales | 32,151,300,891.00 | 6,738,168,128.00 | 245,030,759.00 | 5,086,300.00 | -3,995,003,947.00 | 35,144,582,131.00 |
(3) If there Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each ReportableSegment Could not Be Reported, Relevant Reasons Shall Be Clearly Stated
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(4)Other Notes
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2. Other Significant Transactions with Influence on Investors’ Decision-making
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3. Other
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XV. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable(1) Accounts Receivable Disclosed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Accounts receivable with significant single amount for which bad debt provision separately accrued | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Accounts receivable withdrawal of bad debt provision of by credit risks characteristics: | 26,564,467.00 | 60.43% | 0.00 | 0.00% | 26,564,467.00 | 25,391,284.00 | 59.00% | 0.00 | 0.00% | 25,391,284.00 |
| Accounts receivable with insignificant single amount for which bad debt provision separately accrued | 17,395,967.00 | 39.57% | 2,889,866.00 | 16.61% | 14,506,101.00 | 17,395,967.00 | 41.00% | 2,889,866.00 | 17.00% | 14,506,101.00 |
| Total | 43,960,434.00 | 100.00% | 2,889,866.00 | 6.57% | 41,070,568.00 | 42,787,251.00 | 100.00% | 2,889,866.00 | 7.00% | 39,897,385.00 |
Accounts receivable with single significant amount for which bad debt provision separately accrued at the end of the period
□ Applicable √ Not applicable
In the groups, accounts receivable adopted aging analysis method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
In the credit risk groups, bad debt provision was withdrawn in line with the lower one between the estimated recoverable amount and the carrying value, there was no bad debt provision in thegroups.
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB0.00; the amount of the reversed or collected part during the Reporting Period was of RMB0.00.Of which the bad debt provision reversed or recovered with significant amount in the Reporting Period:
Unit: RMB
| Name | Amount reversed or recovered | Way of recovery |
| Naught |
Naught
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
| Item | Amount |
| Naught |
Of which the verification of significant accounts receivable:
Unit: RMB
| Name | Nature of the account receivable | Amount verified | Reason for verification | Verification procedures performed | Whether generated from connected transaction |
| Naught |
Notes to the verification of accounts receivable:
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(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
The total Top 5 accounts receivable in ending balance was RMB41,386,958.00, accounting for 94.15% of the total ending balance of accounts receivable. The total ending balance of bad debtprovision correspondingly withdrawn was RMB473,228.00.
(5) Accounts Receivable Derecognized Due to the Transfer of Financial Assets
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(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continued Involvement of Accounts Receivable
NaughtOther notes: Naught
2. Other Accounts Receivable(1) Other Accounts Receivable Disclosed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Other accounts receivable with significant single amount for which bad debt provision separately accrued | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Other accounts receivable withdrawn bad debt provision | 1,565,138,570.00 | 100.00% | 0.00 | 0.00% | 1,565,138,570.00 | 1,824,727,573.00 | 100.00% | 0.00 | 0.00% | 1,824,727,573.00 |
| according to credit risks characteristics | ||||||||||
| Other accounts receivable with insignificant single amount for which bad debt provision separately accrued | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 |
| Total | 1,565,138,570.00 | 100.00% | 0.00 | 0.00% | 1,565,138,570.00 | 1,824,727,573.00 | 100.00% | 0.00 | 0.00% | 1,824,727,573.00 |
Other receivable with single significant amount for which bad debt provision separately accrued at the end of the period：
□ Applicable √ Not applicable
In the groups, other accounts receivable adopted aging analysis method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopted balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopted other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB0.00; the amount of the reversed or collected part during the Reporting Period was of RMB0.00.Of which the bad debt provision with significant amount:
Unit: RMB
| Name | Amount reversed or recovered | Way of recovery |
| Naught |
Naught
(3) Other Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
| Item | Amount verified |
| Naught |
Of which the verification of significant accounts receivable:
Unit: RMB
| Name | Nature of other accounts receivable | Amount verified | Reason for verification | Verification procedures performed | Whether generated from connected transaction |
| Naught |
Notes to the verification of other accounts receivable:
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(4) Other Account Receivable Classified by Account Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| Intercourse funds | 751,663,989.00 | 702,635,642.00 |
| Royalty receivable | 788,827,959.00 | 878,653,588.00 |
| Others | 24,646,622.00 | 243,438,343.00 |
| Total | 1,565,138,570.00 | 1,824,727,573.00 |
(5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
| Name of the entity | Nature | Ending balance | Aging | Proportion to total ending balance of other accounts receivable | Ending balance of bad debt provision |
| Customer 1 | Royalty receivable | 628,876,298.00 | Within 1 year | 40.18% | 0.00 |
| Customer 2 | Intercourse funds | 189,718,128.00 | Over 3 years | 12.12% | 0.00 |
| Customer 3 | Intercourse funds | 162,801,366.00 | Within 1 year, 1 to 2 years, over 3 years | 10.40% | 0.00 |
| Customer 4 | Intercourse funds | 117,021,568.00 | Within 1 year | 7.48% | 0.00 |
| Customer 5 | Intercourse funds | 88,498,912.00 | Within 1 year, 1 to 2 years | 5.65% | 0.00 |
| Total | -- | 1,186,916,272.00 | -- | 75.83% | 0.00 |
(6) Accounts Receivable Involving Government Subsidies
Unit: RMB
| Name of the entity | Project of government subsidies | Ending balance | Ending aging | Estimated recovering time, amount and basis |
| Naught |
Naught
(7) Other Accounts Receivable Derecognized Due to the Transfer of Financial Assets
Naught
(8) Amount of Assets and Liabilities Due to the Transfer of Other Account Receivable and ContinuedInvolvement
NaughtOther notes:
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3. Long-term Equity Investment
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserve | Carrying value | Carrying amount | Depreciation reserve | Carrying value | |
| Investment to subsidiaries | 128,354,979,137.00 | 60,000,000.00 | 128,294,979,137.00 | 116,691,267,854.00 | 60,000,000.00 | 116,631,267,854.00 |
| Investment to joint ventures and associated enterprises | 2,745,382,489.00 | 0.00 | 2,745,382,489.00 | 4,562,412,537.00 | 0.00 | 4,562,412,537.00 |
| Total | 131,100,361,626.00 | 60,000,000.00 | 131,040,361,626.00 | 121,253,680,391.00 | 60,000,000.00 | 121,193,680,391.00 |
(1) Investment to Subsidiaries
Unit: RMB
| Investee | Beginning balance | Increase | Decrease | Ending balance | Depreciation reserve withdrawn | Ending balance of depreciation reserve |
| Beijing BOE Semi-conductor | 9,450,000.00 | 0.00 | 0.00 | 9,450,000.00 | 0.00 | 0.00 |
| Co., Ltd. | ||||||
| Beijing Yinghe Century Co., Ltd. | 333,037,433.00 | 0.00 | 0.00 | 333,037,433.00 | 0.00 | 0.00 |
| Beijing BOE Land Co., Ltd. | 7,731,474.00 | 0.00 | 0.00 | 7,731,474.00 | 0.00 | 0.00 |
| BOE (Hebei) Mobile Technology Co., Ltd. | 1,053,651,020.00 | 0.00 | 0.00 | 1,053,651,020.00 | 0.00 | 0.00 |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | 31,038,525.00 | 0.00 | 0.00 | 31,038,525.00 | 0.00 | 0.00 |
| Beijing BOE Vacuum Electronics Co., Ltd. | 19,250,000.00 | 0.00 | 0.00 | 19,250,000.00 | 0.00 | 0.00 |
| Beijing BOE Vacuum Technology Co., Ltd. | 32,000,000.00 | 0.00 | 0.00 | 32,000,000.00 | 0.00 | 0.00 |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,172,288,084.00 | 0.00 | 0.00 | 4,172,288,084.00 | 0.00 | 0.00 |
| Beijing BOE Special Display Technology Co., Ltd. | 100,000,000.00 | 0.00 | 0.00 | 100,000,000.00 | 0.00 | 60,000,000.00 |
| BOE Optoelectronics Technology Co., Ltd. | 658,961,914.00 | 0.00 | 0.00 | 658,961,914.00 | 0.00 | 0.00 |
| BOE Marketing Co., Ltd. | 20,500,000.00 | 0.00 | 0.00 | 20,500,000.00 | 0.00 | 0.00 |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 14,733,149,991.00 | 2,750,000,000.00 | 0.00 | 17,483,149,991.00 | 0.00 | 0.00 |
| Beijing Asahi | 30,888,470.00 | 0.00 | 0.00 | 30,888,470.00 | 0.00 | 0.00 |
| Electronic Material Co., Ltd. | ||||||
| BOE (Korea) Co., Ltd. | 788,450.00 | 0.00 | 0.00 | 788,450.00 | 0.00 | 0.00 |
| Beijing BOE Optoelectronics Holding Co., Ltd. | 1,743,602,824.00 | 1,025,059,200.00 | 0.00 | 2,768,662,024.00 | 0.00 | 0.00 |
| Beijing BOE Display Technology Co., Ltd. | 17,418,713,599.00 | 0.00 | 0.00 | 17,418,713,599.00 | 0.00 | 0.00 |
| Beijing BOE Energy Technology Co., Ltd. | 850,000,000.00 | 0.00 | 0.00 | 850,000,000.00 | 0.00 | 0.00 |
| Beijing BOE Multimedia Technology Co. Ltd. | 400,000,000.00 | 0.00 | 0.00 | 400,000,000.00 | 0.00 | 0.00 |
| Hefei BOE Optoelectronics Technology Co., Ltd. | 9,000,000,000.00 | 0.00 | 0.00 | 9,000,000,000.00 | 0.00 | 0.00 |
| Beijing?Matsushita Color CRT Co., Ltd. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Beijing BOE Video Technology Co., Ltd. | 2,170,000,000.00 | 400,000,000.00 | 0.00 | 2,570,000,000.00 | 0.00 | 0.00 |
| Beijing BOE Smart Commerce Co., Ltd. | 10,000,000.00 | 0.00 | 0.00 | 10,000,000.00 | 0.00 | 0.00 |
| Beijing Zhongxiangying Technology Co., Ltd. | 10,000,000.00 | 0.00 | 0.00 | 10,000,000.00 | 0.00 | 0.00 |
| Ordos Yuansheng Optoelectronics Co., Ltd. | 11,804,000,000.00 | 0.00 | 0.00 | 11,804,000,000.00 | 0.00 | 0.00 |
| Erdos Haosheng Energy Investment | 2,000,000.00 | 0.00 | 0.00 | 2,000,000.00 | 0.00 | 0.00 |
| Co., Ltd. | ||||||
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | 16,575,150,000.00 | 0.00 | 0.00 | 16,575,150,000.00 | 0.00 | 0.00 |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 19,565,354,599.00 | 0.00 | 0.00 | 19,565,354,599.00 | 0.00 | 0.00 |
| Hefei BOE Display Technology Co., Ltd. | 1,550,765,323.00 | 448,000,000.00 | 0.00 | 1,998,765,323.00 | 0.00 | 0.00 |
| Fuzhou BOE Optoelectronic Technology Co., Ltd. | 12,666,042,079.00 | 1,367,000,000.00 | 0.00 | 14,033,042,079.00 | 0.00 | 0.00 |
| BOE Healthcare Co., Ltd. | 1,193,154,069.00 | 480,000,000.00 | 0.00 | 1,673,154,069.00 | 0.00 | 0.00 |
| Intelligent Technology | 50,000,000.00 | 0.00 | 0.00 | 50,000,000.00 | 0.00 | 0.00 |
| Hefei BOE Zhuoyin Technology Co., Ltd. | 400,750,000.00 | 0.00 | 0.00 | 400,750,000.00 | 0.00 | 0.00 |
| Beijing BOE Technology Development Co., Ltd. | 1,000,000.00 | 0.00 | 0.00 | 1,000,000.00 | 0.00 | 0.00 |
| Kunming BOE Display Technology Co., Ltd. | 78,000,000.00 | 46,800,000.00 | 0.00 | 124,800,000.00 | 0.00 | 0.00 |
| Beijing BOE Sensor Technology Co., Ltd. | 0.00 | 50,000,000.00 | 0.00 | 50,000,000.00 | 0.00 | 0.00 |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 0.00 | 5,096,852,083.00 | 0.00 | 5,096,852,083.00 | 0.00 | 0.00 |
| Total | 116,691,267,854.00 | 11,663,711,283.00 | 0.00 | 128,354,979,137.00 | 0.00 | 60,000,000.00 |
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
| The investor | Beginning balance | Increase/decrease | Ending balance | Ending balance for impairment provisions | |||||||
| Additional investments | Reduced investments | Profit and loss on investments confirmed according to equity law | Adjustment of other comprehensive income | Changes in other equity | Cash, dividends and profits declared to issue | Impairment provisions | Others | ||||
| I. Joint ventures | |||||||||||
| Wuhan BOE Optoelectronic Technology Co., Ltd. | 91,590,309.00 | 750,000,000.00 | 0.00 | 569,162.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 842,159,471.00 | 0.00 |
| Beijing BOE Yiyun Technology Co., Ltd. | 3,763,783.00 | 0.00 | 0.00 | -2,943,687.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 820,096.00 | 0.00 |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 2,698,378,093.00 | 0.00 | 0.00 | -1,526,010.00 | 0.00 | 0.00 | 0.00 | 0.00 | -2,696,852,083.00 | 0.00 | 0.00 |
| Subtotal | 2,793,732,185.00 | 750,000,000.00 | 0.00 | -3,900,535.00 | 0.00 | 0.00 | 0.00 | 0.00 | -2,696,852,083.00 | 842,979,567.00 | 0.00 |
| II. Associated enterprises | |||||||||||
| Beijing Nissin Electronics Precision Component | 0.00 | 0.00 | 0.00 | 780,003.00 | 0.00 | 2,424,598.00 | 0.00 | 0.00 | 0.00 | 3,204,601.00 | 0.00 |
| Co., Ltd. (Nissin Electronics ) | |||||||||||
| Beijing Nittan Electronic Co., Ltd. (Nittan Electronics) | 53,786,835.00 | 0.00 | 0.00 | 4,982,517.00 | 0.00 | 0.00 | -3,000,000.00 | 0.00 | 0.00 | 55,769,352.00 | 0.00 |
| Beijing Yingfei Hailin Venture Capital Management Co., Ltd. (Yingfei Hailin) | 373,361.00 | 0.00 | 0.00 | -338,738.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 34,623.00 | 0.00 |
| Ordos BOE Energy Investment Co., Ltd. (BOE Energy Investment) | 9,458,312.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 9,458,312.00 | 0.00 |
| Beijing Fly Hailin Investment Center | 137,448,451.00 | 0.00 | 0.00 | 24,387.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 137,472,838.00 | 0.00 |
| TPV Display Technology (China) Limited | 27,190,533.00 | 0.00 | 0.00 | -1,304,414.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 25,886,119.00 | 0.00 |
| Beijing Xindongneng Investment Fund (LLP) | 1,472,249,231.00 | 150,000,000.00 | 0.00 | -5,997,801.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,616,251,430.00 | 0.00 |
| Beijing Xindongneng Investment Management Co., Ltd. | 4,861,735.00 | 0.00 | 0.00 | 806,640.00 | 0.00 | 0.00 | -2,000,000.00 | 0.00 | 0.00 | 3,668,375.00 | 0.00 |
| Shenzhen Yunyinggu Technology Co., Ltd. | 35,483,897.00 | 0.00 | 0.00 | -11,959,303.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 23,524,594.00 | 0.00 |
| Beijing XLOONG Technology Co., Ltd. | 23,981,997.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 23,981,997.00 | 0.00 |
| Chongqing BOE Display Technology Co., Ltd. | 3,846,000.00 | 0.00 | 0.00 | -695,319.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 3,150,681.00 | 0.00 |
| Subtotal | 1,768,680,352.00 | 150,000,000.00 | 0.00 | -13,702,028.00 | 0.00 | 2,424,598.00 | -5,000,000.00 | 0.00 | 0.00 | 1,902,402,922.00 | 0.00 |
| Total | 4,562,412,537.00 | 900,000,000.00 | 0.00 | -17,602,563.00 | 0.00 | 2,424,598.00 | -5,000,000.00 | 0.00 | -2,696,852,083.00 | 2,745,382,489.00 | 0.00 |
(3) Other Notes
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4. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same period of last year | ||
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Main operations | 0.00 | 0.00 | 0.00 | 0.00 |
| Other operations | 2,146,860,956.00 | 12,786,733.00 | 705,463,015.00 | 5,670,598.00 |
| Total | 2,146,860,956.00 | 12,786,733.00 | 705,463,015.00 | 5,670,598.00 |
Other notes:
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5. Investment Income
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Long-term equity investment income accounted by cost method | 900,000,000.00 | 607,278,350.00 |
| Long-term equity investment income accounted by equity method | -17,602,562.00 | -13,690,555.00 |
| Investment income arising from disposal of long-term equity investments | 0.00 | 0.00 |
| Investment income received from financial assets at fair value through profit or loss during holding period | 0.00 | 0.00 |
| Investment income received from disposal of financial assets measured at fair value through profit or loss | 0.00 | 0.00 |
| Investment income of held to maturity investment during holding period | 0.00 | 0.00 |
| Investment income received from holding of available-for-sale financial assets | 2,071,592.00 | 930,175.00 |
| Investment income received from disposal of available-for-sale financial assets | 0.00 | 0.00 |
| After losing control, gains from re-measurement of residual shares at fair value | 0.00 | 0.00 |
| Total | 884,469,030.00 | 594,517,970.00 |
6. Other
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XVI. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | Explanation |
| Gains/losses on the disposal of non-current assets | -3,451,236.00 | Naught |
| Tax rebates, reductions or exemptions due to approval beyond authority or the lack | 0.00 | Naught |
| of official approval documents | ||
| Government grants recognized in the current period, except for those acquired in the ordinary course of business or granted at certain quotas or amounts according to the government’s unified standards | 2,051,849,769.00 | Naught |
| Capital occupation charges on non-financial enterprises that are recorded into current gains and losses | 0.00 | Naught |
| Gains due to that the investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the enjoyable fair value of the identifiable net assets of the investees when making the investments | 9,317,244.00 | Naught |
| Gain/loss on non-monetary asset swap | 0.00 | Naught |
| Gain/loss on entrusting others with investments or asset management | 0.00 | Naught |
| Asset impairment provisions due to acts of God such as natural disasters | 0.00 | Naught |
| Gains and losses from debt restructuring | 0.00 | Naught |
| Expenses on business reorganization, such as expenses on staff arrangements, integration, etc. | 0.00 | Naught |
| Gain/loss on the part over the fair value due to transactions with distinctly unfair prices | 0.00 | Naught |
| Current net gains and losses of subsidiaries acquired in business combination under the same control from period-begin to combination date | 0.00 | Naught |
| Profit and loss from contingencies irrelative to the normal business operations of company | 0.00 | Naught |
| Gain/loss from change of fair value of trading assets and liabilities, and investment gains from disposal of trading financial assets and liabilities and available-for-sale financial assets, other than valid hedging related to the Company’s common businesses | 180,450,008.00 | Naught |
| Depreciation reserves returns of receivables with separate depreciation test | 153,235.00 | Naught |
| Gain/loss on entrustment loans | 0.00 | Naught |
| Gain/loss on change of the fair value of investing real estate of which the subsequent measurement is carried out adopting the fair value method | 0.00 | Naught |
| Effect on current gains/losses when a one-off adjustment is made to current gains/losses according to requirements of taxation, accounting and other relevant laws and regulations | 0.00 | Naught |
| Custody fee income when entrusted with operation | 0.00 | Naught |
| Other non-operating income and expense other than the above | 31,223,326.00 | Naught |
| Project confirmed with the definition of non-recurring gains and losses and losses | 0.00 | Naught |
| Less: Income tax effects | 182,968,012.00 | Naught |
| Non-controlling interests effects | 90,236,593.00 | Naught |
| Total | 1,996,337,741.00 | -- |
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Profit or
Loss, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.
□ Applicable √ Not applicable
2. Return on Equity and Earnings Per Share
| Profit as of Reporting Period | Weighted average ROE (%) | EPS (Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| Net profit attributable to ordinary shareholders of the Company | 3.45% | 0.085 | 0.085 |
| Net profit attributable to ordinary shareholders of the Company after deduction of non-recurring profit and loss | 1.14% | 0.028 | 0.028 |
3. Other
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Part XI Documents Available for Reference
(I) The financial statements signed and sealed by the Company’s legal representative, president of the Execution Committee (Chief
Executive Officer), Chief Financial Officer and head of the financial department (equivalent to financial manager); and(II) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the ReportingPeriod.
All the above mentioned documents are available at the Board Secretary’s Office of the Company.
Chairman of the Board (signature): Mr. Wang Dongsheng
Date of the Board’s approval of this Report: 24 August 2018