京东方A(000725)_公司公告_京东方B：2022年年度审计报告(英文版)新浪财经

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京东方B：2022年年度审计报告(英文版) （下载公告）

公告日期:2023-04-04

BOE Technology Group Co., Ltd.

ENGLISH TRANSLATION OF FINANCIAL STATEMENTSFOR THE YEAR 1 JANUARY 2022 TO 31 DECEMBER 2022IF THERE IS ANY CONFLICT BETWEEN THE CHINESEVERSION AND ITS ENGLISH TRANSLATION,THE CHINESE VERSION WILL PREVAIL

Page 1 of 9

AUDITOR’S REPORT

毕马威华振审字第2303647号

The Shareholders of BOE Technology Group Co., Ltd.:

Opinion

We have audited the accompanying financial statements of BOE Technology Group Co., Ltd.(“BOE”), which comprise the consolidated and company balance sheets as at 31 December2022, the consolidated and company income statements, the consolidated and companycash flow statements, the consolidated and company statements of changes in shareholders’equity for the year then ended, and notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects,the consolidated and company financial position of BOE as at 31 December 2022, and theconsolidated and company financial performance and cash flows of BOE for the year thenended in accordance with Accounting Standards for Business Enterprises issued by theMinistry of Finance of the People’s Republic of China.

Basis for Opinion

We conducted our audit in accordance with China Standards on Auditing for Certified PublicAccountants (“CSAs”). Our responsibilities under those standards are further described in theAuditor’s Responsibilities for the Audit of the Financial Statements section of our report. Weare independent of BOE in accordance with the China Code of Ethics for Certified PublicAccountants (“the Code”), and we have fulfilled our other ethical responsibilities inaccordance with the Code. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

Page 2 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2303647号

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of mostsignificance in our audit of the financial statements of the current period. These matters wereaddressed in the context of our audit of the financial statements as a whole, and in formingour opinion thereon, and we do not provide a separate opinion on these matters.

Revenue recognition
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 23 and “V. Notes to the consolidated financial statements” 43.
The Key Audit Matter	How the matter was addressed in our audit
The revenue of BOE and its subsidiaries (“BOE Group”) is mainly derived from the sales of products relating to display device across the domestic and overseas market. The sales contracts/orders signed between BOE Group and its customers (mainly electronic equipment manufacturers) contain various trading terms. BOE Group judges the transfer timing of control according to the trading terms, and recognises revenue accordingly. Depending on the trading terms, the income is usually recognized when the goods are delivered and received, or when they are received by the carrier. We identified the recognition of BOE Group’s revenue as a key audit matter because revenue, as one of BOE Group’s key performance indicators, involves various trading terms, and there is an inherent risk that revenue may not be recognised in a correct period.	Our audit procedures to evaluate revenue recognition included the following: ? Evaluate the design and operation effectiveness of key internal controls related to revenue recognition; ? Check key sales contracts/orders on a sampling basis to identify relevant trading terms, and evaluate whether the accounting policies for revenue recognition of BOE Group meet the requirements of the Enterprise Accounting Standards; ? On a sampling basis and according to different trading terms, reconcile the revenue recorded in the current year to relevant supporting files such as relevant orders, shipping orders, sales invoices, customs declarations, bills of lading, delivery receipts, etc. to evaluate whether revenue is recognised in accordance with the accounting policy of BOE Group; ? On a sampling basis and according to different trading terms, cross check the revenue recorded before and after the balance sheet date against relevant supporting files such as relevant orders, shipping orders, sales invoices, customs declarations, bills of lading, delivery receipts, etc. to evaluate whether revenue is recorded in the appropriate period;

Page 3 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2303647号

Key Audit Matters (continued)

Revenue recognition (continued)
Refer to Note III. 23 of the accounting policy to the financial statements and Note V. 43 to to the consolidated financial statements.
The Key Audit Matter	How the matter was addressed in our audit
	? Select a sample based on the characteristics and nature of customer's transaction, and perform confirmation procedures on the balance of accounts receivable as at the balance sheet date and the sales transaction amount during the current year; ? On a sampling basis, check the written-back of revenue after the balance sheet date (including sales discounts and sales returns, etc.) with relevant supporting documents to assess whether revenue is recorded in the appropriate period; ? Select revenue accounting entries that meet specific risk criteria and check related supporting documents.

Page 4 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2303647号

Key Audit Matters (continued)

Book value of fixed assets and construction in progress
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 13, 14 and “V. Notes to the consolidated financial statements” 14, 15.
The Key Audit Matter	How the matter was addressed in our audit
BOE Group continued to invest in building production lines of display device to expand its production capacity. As at 31 December 2022, the book value of fixed assets and construction in progress amounted to RMB 249.373 billion. The judgement made by the management on the following aspects will affect the book value of fixed assets and construction in progress, including: ? Determine which type of expenditures are qualified for capitalisation; ? Determine the timing for transferring construction in progress to fixed assets and making depreciation; ? Estimate the useful life and residual value of corresponding fixed assets. We identified the book value of fixed assets and construction in progress of BOE Group as a key audit matter because the valuation of the book value of fixed assets and construction in progress involves significant judgement from the management and it is of importance to the consolidated financial statements.	Our audit procedures to assess the book value of fixed assets and construction in progress included the following: ? Evaluate the design and operation effectiveness of key internal controls (including estimating useful life and residual values, etc.) related to the integrity, existence and accuracy of fixed assets and construction in progress; ? Check the physical status of construction in progress and fixed assets on a sampling basis; ? Check capital expenditures with relevant supporting documents (including purchase agreements/ orders, acceptance orders, engineering construction contracts, project progress reports, etc.) on a sampling basis; ? Assess whether the capitalised commissioning expenses for the current year are in compliance with relevant capitalization conditions; check the commissioning expenses with relevant supporting documents on a sampling basis; ? On the basis of sampling, assess the timing for transferring construction in progress to fixed assets, through the inspection of commissioning situation and the documents for transferring construction in progress to fixed assets; ? Based on our understanding of industry practices and actual operating conditions of assets, we evaluate the management's estimation of the useful life and residual value of fixed assets.

Page 5 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2303647号

Key Audit Matters (continued)

Impairment of fixed assets and intangible assets
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 19 and “V. Notes to the consolidated financial statements” 14, 16.
The Key Audit Matter	How the matter was addressed in our audit
BOE Group principally generates revenue from the production and sale of display device. Due to the fluctuation of supply-demand relationship of display device and the influence of technology upgrading, the profit level of different production lines suffer dramatic fluctuation. As at 31 December 2022, the book value of fixed assets and intangible assets amounted to RMB 214.935 billion, the judgement on impairment indications and impairment test are material to BOE Group’s financial statements. The management classifies asset groups based on the smallest identifiable group of assets that generates cash inflows that are independent, and continuously monitors the trend of market of supply and demand as well as the technology evolution; comprehensively judges impairment indications of each asset group in accordance with market trends, operating conditions of production lines and technological advanced performance, and performs impairment test on asset groups if any impairment indication exists. For asset groups with impairment indications, the management assesses whether the book value of fixed assets and intangible assets as at 31 December 2022 were impaired by calculating the present value of expected future cash flows. Calculating the present value of expected future cash flows requires management to make significant judgements, especially for the estimation of future selling prices, sales volume and applicable discount rate.	Our audit procedures to evaluate impairment of fixed assets and intangible assets included the following: ? Evaluate management’s identification of asset groups, assessment of impairment indications, and assess the design and operation effectiveness of key internal controls for impairment tests; ? Based on our understanding of BOE Group’s businesses and relevant accounting standards, evaluate management’s classification basis of asset groups and judgement basis of impairment indications; ? For asset groups with impairment indications, based on our understanding of the industry, compare the key assumptions in the calculation of recoverable amounts used by management with external available data and historical analysis, including future selling prices, sales volume and discount rate used by management, evaluate the key assumptions and estimations used by the management; ? For asset groups with significant impairment risk, assess the competence, professional quality and objectivity of experts hired by the management; and adopt our own valuation experts’ work, assess if discount rates used for estimating the present value of future cash flows by management are within the range used by other companies in the same industry;

Page 6 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2303647号

Key Audit Matters (continued)

Impairment of fixed assets and intangible assets (continued)
Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 19 and “V. Notes to the consolidated financial statements” 14, 16.
The Key Audit Matter	How the matter was addressed in our audit
We identified the impairment of fixed assets and intangible assets as a key audit matter because the book value of fixed assets and intangible assets is significant to the financial statements; management’s significant judgements and estimations are involved in assessing the classification basis of asset groups, existence of impairment indications and impairment test of asset groups with impairment indications, which may exist errors or potential management bias.	Our audit procedures to evaluate impairment of fixed assets and intangible assets included the following: ? Compare estimations used for calculating the present value of expected future cash flows in the previous year by the management with the actual situation in this year to consider the historical accuracy of management’s forecast results; ? Perform sensitivity analysis on key assumptions, including future selling prices, sales volume and discount rates, used in the calculation of recoverable amount by the management; assess how changes in key assumptions (individually or collectively) will lead to different results and assess whether there are indications of management bias in the selection of key assumptions; ? Consider whether the disclosure of impairment of fixed assets and intangible assets in the financial statements is consistent with relevant accounting policy.

Page 7 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2303647号

Other Information

BOE’s management is responsible for the other information. The other information comprisesall the information included in 2022 annual report of BOE, other than the financial statementsand our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistentwith the financial statements or our knowledge obtained in the audit or otherwise appears tobe materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatementof this other information, we are required to report that fact. We have nothing to report in thisregard.

Responsibilities of Management and Those Charged with Governance for the FinancialStatements

Management is responsible for the preparation and fair presentation of the financialstatements in accordance with the Accounting Standards for Business Enterprises, and forthe design, implementation and maintenance of such internal control necessary to enablethat the financial statements are free from material misstatement, whether due to fraud orerror.

In preparing the financial statements, management is responsible for assessing BOE’s abilityto continue as a going concern, disclosing, as applicable, matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate BOE or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing BOE’s financial reportingprocess.

Page 8 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2303647号

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements asa whole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with CSAs will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with CSAs, we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:

? Identify and assess the risks of material misstatement of the financial statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.

? Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances.

? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

? Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertaintyexists related to events or conditions that may cast significant doubt on BOE’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we arerequired to draw attention in our auditor’s report to the related disclosures in the financialstatements or, if such disclosures are inadequate, to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor’s report. However,future events or conditions may cause BOE to cease to continue as a going concern.

? Evaluate the overall presentation, structure and content of the financial statements,including the disclosures, and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

Page 9 of 9

AUDITOR’S REPORT (continued)

毕马威华振审字第2303647号

Auditor’s Responsibilities for the Audit of the Financial Statements (continued)

? Obtain sufficient appropriate audit evidence regarding the financial information of the

entities or business activities within BOE to express an opinion on the financialstatements. We are responsible for the direction, supervision and performance of thegroup audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence, and communicate with them allrelationships and other matters that may reasonably be thought to bear on our independenceand, where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine thosematters that were of most significance in the audit of the financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure about the matter or when, inextremely rare circumstances, we determine that a matter should not be communicated inour report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

KPMG Huazhen LLP Certified Public AccountantsRegistered in the People’s Republic of China

Su Xing (Engagement Partner)

Beijing, China Chai Jing

31 March 2023

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2022(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
Assets	?	?	?	?
?	?	?	?	?
Current assets	?	?	?	?
Cash at bank and on hand	V.1	68,800,307,369	?	80,986,835,088
Financial assets held for trading	V.2	17,187,993,936	?	10,028,172,853
Bills receivable	V.3	211,792,061	?	217,734,298
Accounts receivable	V.4	28,203,647,569	?	35,503,414,820
Prepayments	V.5	589,764,680	?	1,112,880,007
Other receivables	V.6	975,809,236	?	1,922,828,378
Inventories	V.7	22,787,814,225	?	27,805,161,436
Contract assets	V.8	71,636,461	?	75,698,324
Non-current assets due within one year	?	8,561,307	?	7,700,735
Other current assets	V.9	3,394,036,919	?	3,578,919,710
?	?	?	?	?
Total current assets	?	142,231,363,763	?	161,239,345,649

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
Assets (continued)	?	?	?	?
?	?	?	?	?
Non-current assets	?	?	?	?
Long-term receivables	?	28,637,449	?	29,918,542
Long-term equity investments	V.10	12,421,878,851	?	6,040,948,317
Investments in other equity instruments	V.11	483,060,306	?	519,088,146
Other non-current financial assets	V.12	2,022,967,681	?	606,895,447
Investment properties	V.13	1,122,025,138	?	1,158,365,401
Fixed assets	V.14	205,987,050,430	?	227,141,366,884
Construction in progress	V.15	43,386,134,668	?	32,099,711,879
Right-of-use assets	V.60	687,120,946	?	753,164,237
Intangible assets	V.16	8,948,327,143	?	11,209,498,406
Goodwill	V.17	660,823,651	?	1,130,006,987
Long-term deferred expenses	V.18	556,941,377	?	636,530,502
Deferred tax assets	V.19	70,250,425	?	190,335,524
Other non-current assets	V.20	1,955,521,384	?	7,477,427,483
?	?	?	?	?
Total non-current assets	?	278,330,739,449	?	288,993,257,755
?	?	?	?	?
?	?	?	?	?
Total assets	?	420,562,103,212	?	450,232,603,404

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
Liabilities and shareholders’ equity	?	?	?	?
?	?	?	?	?
Current liabilities	?	?	?	?
Short-term loans	V.21	2,373,938,871	?	2,072,057,332
Bills payable	V.22	870,221,538	?	827,958,031
Accounts payable	V.23	29,834,720,464	?	32,455,830,694
Advance payments received	V.24	79,848,977	?	146,140,084
Contract liabilities	V.25	2,411,717,792	?	3,765,081,554
Employee benefits payable	V.26	2,818,532,823	?	5,133,155,237
Taxes payable	V.27	1,331,401,188	?	2,200,249,305
Other payables	V.28	19,632,223,269	?	23,835,374,942
Non-current liabilities due within one year	V.29	22,703,750,744	?	28,874,958,714
Other current liabilities	V.30	3,613,967,673	?	4,051,532,509
?	?	?	?	?
Total current liabilities	?	85,670,323,339	?	103,362,338,402

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Non-current liabilities	?	?	?	?
Long-term loans	V.31	123,143,479,690	?	116,078,666,587
Debentures payable	V.32	-	?	359,586,437
Lease liabilities	V.60	538,586,010	?	669,130,264
Long-term payables	V.33	229,587,077	?	906,592,838
Deferred income	V.34	5,156,347,332	?	6,416,089,611
Deferred tax liabilities	V.19	1,274,406,833	?	1,525,622,873
Other non-current liabilities	V.35	2,499,075,805	?	3,535,809,876
?	?	?	?	?
Total non-current liabilities	?	132,841,482,747	?	129,491,498,486
?
?	?	?	?	?
Total liabilities	?	218,511,806,086	?	232,853,836,888
?

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Shareholders’ equity	?	?	?	?
Share capital	V.36	38,196,363,421	?	38,445,746,482
Other equity instruments	V.37	8,176,366,808	?	14,146,997,427
Capital reserve	V.38	55,218,504,392	?	53,917,609,094
Less: Treasury shares	V.39	3,508,201,911	?	3,415,768,207
Other comprehensive income	V.40	(1,073,768,030)	?	113,551,147
Surplus reserve	V.41	3,241,063,934	?	2,889,590,205
Retained earnings	V.42	35,839,081,781	?	37,106,514,799
?	?	?	?	?
Total equity attributable to shareholders of the Company	?	136,089,410,395	?	143,204,240,947
?	?	?	?	?
Non-controlling interests	?	65,960,886,731	?	74,174,525,569
?	?	?	?	?
Total shareholders’ equity	?	202,050,297,126	?	217,378,766,516
?
?	?	?	?	?
Total liabilities and shareholders’ equity	?	420,562,103,212	?	450,232,603,404

????

These financial statements were approved by the Board of Directors of the Company on 31March 2023.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2022(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
Assets	?	?	?	?
?	?	?	?	?
Current assets	?	?	?	?
Cash at bank and on hand		7,121,641,234	?	5,609,364,822
Accounts receivable	XV.1	4,863,665,269	?	4,828,855,275
Prepayments	?	7,045,311	?	12,669,107
Other receivables	XV.2	19,878,145,375	?	15,449,830,610
Inventories	?	15,065,947	?	15,853,238
Other current assets		57,226,515	?	167,179,023
?	?	?	?	?
Total current assets	?	31,942,789,651	?	26,083,752,075
?	?	?	?	?
Non-current assets	?	?	?	?
Long-term equity investments	XV.3	214,308,953,020	?	210,945,821,235
Investments in other equity instruments	?	60,434,464	?	63,458,868
Other non-current financial assets		1,416,072,234	?	-
Investment properties	?	251,870,591	?	261,526,129
Fixed assets	?	921,510,043	?	961,944,766
Construction in progress	?	616,247,335	?	551,352,449
Right-of-use assets		126,373,643	?	170,173,793
Intangible assets		1,122,230,564	?	1,243,806,868
Long-term deferred expenses	?	384,123,386	?	441,560,097
Other non-current assets	?	1,080,322,988	?	1,744,751,520
?	?	?	?	?
Total non-current assets	?	220,288,138,268	?	216,384,395,725
?	?	?	?	?
?	?	?	?	?
Total assets	?	252,230,927,919	?	242,468,147,800

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
Liabilities and shareholders’ equity	?	?	?	?
?	?	?	?	?
Current liabilities	?	?	?	?
Accounts payable	?	312,100,258	?	61,519,244
Advance payments received		14,819,929	?	20,038,334
Contract liabilities	?	19,200	?	-
Employee benefits payable		282,792,422	?	640,728,285
Taxes payable	?	139,166,672	?	244,586,957
Other payables	XV.5	4,249,391,146	?	2,880,884,768
Non-current liabilities due within one year	?	2,704,607,119	?	10,909,326,195
Other current liabilities	?	20,283,257	?	29,190,783
?	?	?	?	?
Total current liabilities	?	7,723,180,003	?	14,786,274,566
?	?	?	?	?
Non-current liabilities	?	?	?	?
Long-term loans	XV.6	39,557,500,000	?	32,208,500,000
Lease liabilities		85,830,813	?	129,343,868
Deferred income		1,933,587,746	?	2,906,951,707
Deferred tax liabilities	XV.4	111,987,272	?	225,816,218
Other non-current liabilities	XV.7?	96,394,661,805	?	74,506,661,805
?	?	?	?	?
Total non-current liabilities	?	138,083,567,636	?	109,977,273,598
?
?	?	?	?	?
Total liabilities	?	145,806,747,639	?	124,763,548,164

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
Liabilities and shareholders’ equity (continued)	?	?	?	?
?	?	?	?	?
Shareholders’ equity	?	?	?	?
Share capital	V.36	38,196,363,421	?	38,445,746,482
Other equity instruments	V.37	8,176,366,808	?	14,146,997,427
Capital reserve	XV.8	53,693,627,213	?	53,598,033,152
Less: Treasury shares	V.39	3,508,201,911	?	3,415,768,207
Other comprehensive income	XV.9	340,345	?	89,024,650
Surplus reserve	V.41	3,241,063,934	?	2,889,590,205
Retained earnings	XV.10	6,624,620,470	?	11,950,975,927
?	?	?	?	?
Total shareholders’ equity	?	106,424,180,280	?	117,704,599,636
?
?	?	?	?	?
Total liabilities and shareholders’ equity	?	252,230,927,919	?	242,468,147,800

???

These financial statements were approved by the Board of Directors of the Company on 31March 2023.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2022(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
?	?	?	?	?
I. Operating income	V.43	178,413,731,179	?	221,035,718,012
?	?	?	?	?
II. Less: Operating costs	V.43	157,530,566,152	?	157,298,825,781
Taxes and surcharges	V.44	1,275,171,339	?	1,424,205,826
Selling and distribution expenses	V.45	4,233,290,297	?	5,484,589,978
General and administrative expenses	V.46	6,247,637,006	?	6,693,373,589
Research and development expenses	V.47	11,100,768,677	?	10,616,426,327
Financial expenses	V.48	2,445,130,575	?	3,682,379,202
Including: Interest expenses	?	3,572,211,438	?	4,866,778,333
Interest income	?	1,483,022,892	?	1,050,431,325
Add: Other income	V.49	5,485,529,324	?	2,092,765,728
Investment income	V.50	6,094,267,884	?	1,347,489,345
Including: Income from investment in associates and joint ventures	?	528,103,680	?	1,245,036,895
Gains from changes in fair value	V.51	159,344,584	?	84,966,963
Credit losses	V.52	(51,577,226)	?	(28,409,869)
Impairment losses	V.53	(7,304,471,630)	?	(4,478,251,852)
Gains from asset disposals	V.54	10,965,556	?	153,505,791
?	?	?	?	?
III. Operating (loss) / profit	?	(24,774,375)	?	35,007,983,415
?	?	?	?	?
Add: Non-operating income	V.55	163,242,857	?	131,607,946
Less: Non-operating expenses	V.55	87,249,543	?	55,215,102

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
?	?	?	?	?
IV. Profit before income tax	?	51,218,939	?	35,084,376,259
?	?	?	?	?
Less: Income tax expenses	V.56	1,788,394,107	?	4,187,971,404
?	?	?	?	?
V. Net (loss) / profit for the year	?	(1,737,175,168)	?	30,896,404,855
?	?	?	?	?
Shareholders of the Company	?	7,550,877,790	?	25,960,751,646
Non-controlling interests	?	(9,288,052,958)	?	4,935,653,209

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
?	?	?	?	?
VI. Other comprehensive income, net of tax	V.40	(1,158,016,792)	?	155,717,231
?	?	?	?	?
Other comprehensive income (net of tax) attributable to owners of the Company	?	(1,164,537,236)	?	190,988,004
(1) Items that will not be reclassified to profit or loss	?	?	?	?
1. Other comprehensive income recognised under equity method	?	(53,367,649)	?	68,869,497
2. Changes in fair value of investments in other equity instruments	?	(79,547,426)	?	(40,618,274)
(2) Items that may be reclassified to profit or loss	?	?	?	?
1. Other comprehensive income recognised under equity method	?	127,867	?	(296,553)
2. Translation differences arising from translation of foreign currency financial statements	?	(1,031,750,028)	?	163,033,334
Other comprehensive income (net of tax) attributable to non-controlling interests	?	6,520,444	?	(35,270,773)

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
?	?	?	?	?
VII. Total comprehensive income for the year	?	(2,895,191,960)	?	31,052,122,086
?	?	?	?	?
Attributable to shareholders of the Company	?	6,386,340,554	?	26,151,739,650
Attributable to non-controlling interests	?	(9,281,532,514)	?	4,900,382,436
?	?	?	?	?
VIII. Earnings per share:	?	?	?	?
(1) Basic earnings per share	V.57	0.19	?	0.71
(2) Diluted earnings per share	V.57	Not applicable	?	0.71

???

These financial statements were approved by the Board of Directors of the Company on 31March 2023.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2022(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
?	?	?	?	?
I. Operating income	XV.11	4,873,328,715	?	5,716,998,034
?	?	?	?	?
II. Less: Operating costs	?	10,080,268	?	16,459,454
Taxes and surcharges	XV.11	55,342,015	?	36,630,410
General and administrative expenses	?	1,348,187,653	?	1,577,032,602
Research and development expenses		2,046,032,751	?	2,330,865,497
Financial expenses		574,596,105	?	798,736,264
Including: Interest expenses		631,737,202	?	892,768,026
Interest income		96,658,931	?	93,003,346
Add: Other income		948,637,354	?	948,922,174
Investment income	XV.12	1,934,087,931	?	2,755,668,691
Including: Income from investment in associates and joint ventures	?	328,861,860	?	864,640,400
Credit losses	?	(18,126,642)	?	(5,247,340)
Losses from asset disposals	?	-	?	(773,327)
?	?	?	?	?
III. Operating profit	?	3,703,688,566	?	4,655,844,005
?	?	?	?	?
Add: Non-operating income	?	6,873,424	?	7,424,220
Less: Non-operating expenses	?	26,617,581	?	5,915,655
?	?	?	?	?
IV. Profit before income tax	?	3,683,944,409	?	4,657,352,570
?	?	?	?	?
Less: Income tax expenses	XV.13	202,080,897	?	260,856,004
?	?	?	?	?
V. Net profit for the year	?	3,481,863,512	?	4,396,496,566

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
?	?	?	?	?
VI. Other comprehensive income, net of tax	XV.9	(55,810,525)	?	53,550,302
(1) Items that will not be reclassified to profit or loss	?	?	?	?
1. Other comprehensive income recognised under equity method	?	(53,367,649)	?	68,869,497
2. Changes in fair value of investments in other equity instruments	?	(2,570,743)	?	(15,073,903)
(2) Items that may be reclassified to profit or loss	?	127,867	?	(245,292)
?	?	?	?	?
VII. Total comprehensive income for the year	?	3,426,052,987	?	4,450,046,868

???

These financial statements were approved by the Board of Directors of the Company on 31March 2023.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2022(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
I. Cash flows from operating activities:	?	?	?	?
Proceeds from sale of goods and rendering of services	?	193,327,661,415	?	221,840,098,206
Refund of taxes	?	17,259,338,469	?	13,173,129,922
Proceeds from other operating activities	?	7,397,264,096	?	5,925,158,408
?	?	?	?	?
Sub-total of cash inflows	?	217,984,263,980	?	240,938,386,536
?	?	?	?	?
Payment for goods and services	?	(142,617,274,685)	?	(146,642,673,111)
Payment to and for employees	?	(19,821,022,609)	?	(17,908,235,464)
Payment of various taxes	?	(5,394,897,972)	?	(5,149,971,194)
Payment for other operating activities	?	(7,129,101,409)	?	(8,538,818,211)
?	?	?	?	?
Sub-total of cash outflows	?	(174,962,296,675)	?	(178,239,697,980)
?
?	?	?	?	?
Net cash flows generated from operating activities	V.58(1)	43,021,967,305	?	62,698,688,556

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
II. Cash flows from investing activities:	?	?	?	?
Proceeds from disposal of investments	?	83,038,823,137	?	33,071,343,623
Investment returns received	?	461,543,173	?	180,030,588
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets	?	26,645,620	?	69,111,303
Net proceeds from disposal of subsidiaries	?	936,758,922	?	-
Proceeds from other investing activities	?	1,311,942,470	?	3,438,995,631
?	?	?	?	?
Sub-total of cash inflows	?	85,775,713,322	?	36,759,481,145
?	?	?	?	?
Payment for acquisition of fixed assets, intangible assets and other long-term assets	?	(29,398,245,045)	?	(36,098,078,337)
Payment for acquisition of investments	?	(92,205,577,385)	?	(41,638,460,294)
Net payment for acquisition of subsidiaries	?	-	?	(2,815,535)
Net payment for disposal of subsidiaries	?	(144,689,766)	?	(160,887,997)
?	?	?	?	?
Sub-total of cash outflows	?	(121,748,512,196)	?	(77,900,242,163)
?
?	?	?	?	?
Net cash flows used in investing activities	?	(35,972,798,874)	?	(41,140,761,018)

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
?	?	?	?	?
III. Cash flows from financing activities:	?	?	?	?
Proceeds from investors	?	2,301,848,242	?	31,519,607,755
Including: Proceeds from non-controlling shareholders of subsidiaries	?	2,301,848,242	?	11,187,003,325
Proceeds from issuance of debentures	?	2,000,000,000	?	-
Proceeds from borrowings	?	49,812,750,352	?	31,028,727,811
Proceeds from other financing activities	?	771,327,623	?	1,106,689,881
?	?	?	?	?
Sub-total of cash inflows	?	54,885,926,217	?	63,655,025,447

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
III. Cash flows from financing activities (continued):	?	?	?	?
Repayments of borrowings	?	(51,681,667,124)	?	(48,435,579,182)
Payment for redeeming bonds	?	(8,000,000,000)	?	-
Payment for dividends or interest	?	(13,828,515,479)	?	(10,261,666,002)
Including: Profits paid to non-controlling shareholders of subsidiaries	?	(39,388,061)	?	(34,862,550)
Payment for other financing activities	?	(2,548,995,476)	?	(17,139,649,816)
?	?	?	?	?
Sub-total of cash outflows	?	(76,059,178,079)	?	(75,836,895,000)
?
?	?	?	?	?
Net cash flow used in financing activities	?	(21,173,251,862)	?	(12,181,869,553)
?	?	?	?	?
IV. Effect of foreign exchange rate changes on cash and cash equivalents	?	1,882,635,112	?	(817,308,273)
?
?	?	?	?	?
V. Net (decrease) / increase in cash and cash equivalents	V.58(1)	(12,241,448,319)	?	8,558,749,712
?	?	?	?	?
Add: Cash and cash equivalents at the beginning of the year	?	76,623,486,083	?	68,064,736,371
?	?	?	?	?
VI. Cash and cash equivalents at the end of the year	V.58(3)	64,382,037,764	?	76,623,486,083

???

These financial statements were approved by the Board of Directors of the Company on 31March 2023.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2022(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
I. Cash flows from operating activities:	?	?	?	?
Proceeds from sale of goods and rendering of services	?	5,650,186,755	?	5,868,891,208
Proceeds from other operating activities	?	2,005,413,901	?	406,266,493
?	?	?	?	?
Sub-total of cash inflows	?	7,655,600,656	?	6,275,157,701
?	?	?	?	?
Payment for goods and services	?	(1,161,216,577)	?	(1,038,043,873)
Payment to and for employees	?	(1,681,332,214)	?	(1,532,937,459)
Payment of various taxes	?	(676,007,600)	?	(495,289,004)
Payment for other operating activities	?	(452,287,489)	?	(2,504,787,813)
?	?	?	?	?
Sub-total of cash outflows	?	(3,970,843,880)	?	(5,571,058,149)
?	?	?	?	?
?	?	?	?	?
Net cash flows generated from operating activities	XV.14(1)	3,684,756,776	?	704,099,552
?	?	?	?	?
II. Cash flows from investing activities:	?	?	?	?
Proceeds from disposal of investments	?	330,944,027	?	890,504,898
Proceeds from disposal of subsidiaries	?	-	?	230,142,095
Investment returns received	?	1,257,584,843	?	2,129,623,919
Net proceeds from disposal of fixed assets	?	241,034	?	13,445,008
Proceeds from other investing activities	?	10,546,180,253	?	2,075,919,565
?	?	?	?	?
Sub-total of cash inflows	?	12,134,950,157	?	5,339,635,485

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
II. Cash flows from investing activities (continued):	?	?	?	?
Payment for acquisition of fixed assets, intangible assets and other long-term assets	?	(405,565,299)	?	(715,641,262)
Payment for acquisition of investments	?	(3,989,687,433)	?	(30,498,556,648)
Payment for other investing activities	?	(14,117,701,133)	?	(825,000,000)
?	?	?	?	?
Sub-total of cash outflows	?	(18,512,953,865)	?	(32,039,197,910)
?	?	?	?	?
?	?	?	?	?
Net cash flows used in investing activities	?	(6,378,003,708)	?	(26,699,562,425)
?	?	?	?	?
III. Cash flows from financing activities:	?	?	?	?
Proceeds from investors	?	-	?	20,332,604,430
Proceeds from issuance of debentures	?	2,000,000,000	?	-
Proceeds from borrowings	?	25,000,000,000	?	14,303,000,000
Proceeds from other financing activities	?	24,936,039,463	?	20,888,483,038
?	?	?	?	?
Sub-total of cash inflows	?	51,936,039,463	?	55,524,087,468
?	?	?	?	?
Repayments of borrowings	?	(25,827,547,455)	?	(17,355,376,312)
Payment for redeeming bonds	?	(8,000,000,000)	?	-
Payment for dividends and interest	?	(9,842,819,608)	?	(5,524,312,554)
Payment for other financing activities	?	(4,136,747,868)	?	(5,389,705,939)
?	?	?	?	?
Sub-total of cash outflows	?	(47,807,114,931)	?	(28,269,394,805)
?
?	?	?	?	?
Net cash flows generated from financing activities	?	4,128,924,532	?	27,254,692,663

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	Note	2022	?	2021
?	?	?	?	?
IV. Effect of foreign exchange rate changes on cash and cash equivalents	?	76,264,084	?	(19,357,657)
?
?	?	?	?	?
V. Net increase in cash and cash equivalents	XV.14(1)	1,511,941,684	?	1,239,872,133
?	?	?	?	?
Add: Cash and cash equivalents at the beginning of the year	?	5,599,937,349	?	4,360,065,216
?	?	?	?	?
VI. Cash and cash equivalents at the end of the year	XV.14(2)	7,111,879,033	?	5,599,937,349

????

These financial statements were approved by the Board of Directors of the Company on 31March 2023.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2022(Expressed in Renminbi Yuan)

?	?	Attributable to shareholders of the Company												?	?	?	?
?	Note	Share capital	?	Other equity instruments	Capital reserve	?	Less: Treasury shares	?	Other comprehensive income	Surplus reserve	?	Retained earnings	Sub-total		Non-controlling interests		Total
?	?	?		?	?	?	?		?	?		?	?		?		?
I. Balance at the beginning of the year	?	38,445,746,482		14,146,997,427	53,917,609,094	?	3,415,768,207		113,551,147	2,889,590,205		37,106,514,799	143,204,240,947		74,174,525,569		217,378,766,516
II. Changes in equity during the year	?	?		?	?	?	?		?	?		?	?		?		?
1. Total comprehensive income	?	-		-	-	?	-		(1,164,537,236)	-		7,550,877,790	6,386,340,554		(9,281,532,514)		(2,895,191,960)
2. Shareholders’ contributions of capital	?	?		?	?	?	?		?	?		?	?		?		?
(1) Contribution by non-controlling interests	?	-		-	-	?	-		-	-		-	-		2,301,848,242		2,301,848,242
(2) Repurchase of treasury shares	V.39	-		-	-	?	1,048,154,539		-	-		-	(1,048,154,539)		-		(1,048,154,539)
(3) Cancellation of treasury shares	V.36/38/39	(249,383,061)		-	(641,811,942)	?	(891,195,003)		-	-		-	-		-		-
(4) Equity-settled share-based payments	XI	-		-	654,336,707	?	(64,525,832)		-	-		-	718,862,539		44,728,854		763,591,393
(5) Contribution by holders of other equity instruments	V.37	-		1,989,320,755	-	?	-		-	-		-	1,989,320,755		-		1,989,320,755
(6) Payment for capital of holders of other equity instruments	V.37	-		(7,957,047,264)	(42,952,736)	?	-		-	-		-	(8,000,000,000)		-		(8,000,000,000)
3. Appropriation of profits	?	?		?	?	?	?		?	?		?	?		?		?
(1) Appropriation for surplus reserve	V.41	-		-	-	?	-		-	348,186,351		(348,186,351)	-		-		-
(2) Accrued interest on holders of other equity instruments	V.37	-		530,695,890	-	?	-		-	-		(530,695,890)	-		-		-
(3) Payment for interest on holders of other equity instruments	V.37	-		(533,600,000)	-	?	-		-	-		-	(533,600,000)		-		(533,600,000)
(4) Distributions to shareholders	V.42	-		-	-	?	-		-	-		(7,958,923,130)	(7,958,923,130)		(54,411,212)		(8,013,334,342)

???

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

?	?	Attributable to shareholders of the Company									?	?
?	Note	Share capital	Other equity instruments	Capital reserve	?	Less: Treasury shares	Other comprehensive income	Surplus reserve	Retained earnings	Sub-total	Non-controlling interests	Total
4. Transfers within equity	?	?	?	?		?	?	?	?	?	?	?
(1) Transfer of other comprehensive income to retained earnings	V.40/41/42	-	-	-		-	(22,781,941)	3,287,378	19,494,563	-	-	-
5. Others	?	?	?	?		?	?	?	?	?	?	?
(1) Other movements in equity of associates	V.10	-	-	274,685,689		-	-	-	-	274,685,689	845,261	275,530,950
(2) Disposal of equities in subsidiaries	V.38	-	-	-		-	-	-	-	-	(1,154,255,778)	(1,154,255,778)
(3) Others	V.38	-	-	1,056,637,580		-	-	-	-	1,056,637,580	(70,861,691)	985,775,889
?	?	?	?	?		?	?	?	?	?	?	?
III. Balance at the end of the year	?	38,196,363,421	8,176,366,808	55,218,504,392		3,508,201,911	(1,073,768,030)	3,241,063,934	35,839,081,781	136,089,410,395	65,960,886,731	202,050,297,126

???

These financial statements were approved by the Board of Directors of the Company on 31 March 2023.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

Attributable to shareholders of the Company

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Surplus reserve

Retained earnings

Sub-total

Non-controlling interests

Total

I. Balance at the beginning of the year

34,798,398,763

14,146,997,427

37,435,655,934

1,036,298,508

(22,198,072)

2,444,416,669

15,509,794,622

103,276,766,835

70,120,967,879

173,397,734,714

Add: Changes in accounting policies

35,577,201

5,309,967

40,887,168

Adjusted balance at the beginning of the year

34,798,398,763

14,146,997,427

37,435,655,934

1,036,298,508

(22,198,072)

2,444,416,669

15,545,371,823

103,312,344,036

70,126,277,846

173,438,621,882

II. Changes in equity during the year

1. Total comprehensive income

190,988,004

25,960,751,646

26,151,739,650

4,900,382,436

31,052,122,086

2. Shareholders’ contributions of capital

(1) Contribution by ordinary shareholders

V.36

3,650,377,019

16,219,134,815

19,869,511,834

(2) Contribution by non-controlling interests

11,187,003,325

(3) Decrease of capital by non-controlling interests

322,947

(8,482,947)

(8,160,000)

(4) Repurchase of treasury shares

V.39

2,428,003,419

(2,428,003,419)

(5) Cancellation of treasury shares

V.36/38/39

(3,029,300)

(14,270,384)

(17,299,684)

(6) Equity-settled share-based payments

598,701,862

(31,234,036)

629,935,898

41,990,775

671,926,673

3. Appropriation of profits

(1) Appropriation for surplus reserve

V.41

439,649,657

(439,649,657)

(2) Accrued interest on holders of other equity instruments

V.37

533,600,000

(533,600,000)

(3) Payment for interest on holders of other equity instruments

V.37

(533,600,000)

(4) Distributions to shareholders

V.42

(3,476,073,919)

(34,862,550)

(3,510,936,469)

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

Attributable to shareholders of the Company

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Surplus reserve

Retained earnings

Sub-total

Non-controlling interests

Total

4. Transfers within equity

(1) Transfer of other comprehensive income to retained earnings

V.40/42

(55,238,785)

5,523,879

49,714,906

5. Others

(1) Other movements in equity of associates

V.10

51,030,550

(2) Acquisition of non-controlling interests

V.38

(658,923,890)

(12,180,161,432)

(12,839,085,322)

(3) Disposal of equities in subsidiaries

V.38

288,039,797

146,828,923

434,868,720

(4) Others

V.38

(2,082,537)

(4,450,807)

(6,533,344)

III. Balance at the end of the year

38,445,746,482

14,146,997,427

53,917,609,094

3,415,768,207

113,551,147

2,889,590,205

37,106,514,799

143,204,240,947

74,174,525,569

217,378,766,516

These financial statements were approved by the Board of Directors of the Company on 31 March 2023.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2022(Expressed in Renminbi Yuan)

?	Note	Share capital	?	Other equity instruments	Capital reserve	Less: Treasury shares	Other comprehensive income	Surplus reserve	Retained earnings	?	Total
?	?	?		?	?	?	?	?	?	?	?
I. Balance at the beginning of the year	?	38,445,746,482		14,146,997,427	53,598,033,152	3,415,768,207	89,024,650	2,889,590,205	11,950,975,927	?	117,704,599,636
II. Changes in equity during the year	?	?		?	?	?	?	?	?	?	?
1. Total comprehensive income	?	-		-	-	-	(55,810,525)	-	3,481,863,512	?	3,426,052,987
2. Shareholders’ contributions of capital	?	?		?	?	?	?	?	?	?	?
(1) Repurchase of treasury shares	V.39	-		-	-	1,048,154,539	-	-	-	?	(1,048,154,539)
(2) Cancellation of treasury shares	V.36/38/39	(249,383,061)		-	(641,811,942)	(891,195,003)	-	-	-	?	-
(3) Equity-settled share-based payments	XI	-		-	699,065,561	(64,525,832)	-	-	-	?	763,591,393
(4) Contribution by holders of other equity instruments	V.37	-		1,989,320,755	-	-	-	-	-	?	1,989,320,755
(5) Payment for capital of holders of other equity instruments	V.37/38	-		(7,957,047,264)	(42,952,736)	-	-	-	-	?	(8,000,000,000)
3. Appropriation of profits	?	?		?	?	?	?	?	?	?	?
(1) Appropriation for surplus reserve	V.41	-		-	-	-	-	348,186,351	(348,186,351)	?	-
(2) Accrued interest on holders of other equity instruments	V.37	-		530,695,890	-	-	-	-	(530,695,890)	?	-
(3) Payment for interest on holders of other equity instruments	V.37	-		(533,600,000)	-	-	-	-	-	?	(533,600,000)
(4) Distributions to shareholders	V.42	-		-	-	-	-	-	(7,958,923,130)	?	(7,958,923,130)

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2022 (continued)(Expressed in Renminbi Yuan)

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Surplus reserve

Retained earnings

Total

4. Transfers within equity

(1) Transfer of other comprehensive income to retained earnings

XV.9/10

(32,873,780)

3,287,378

29,586,402

5. Others

(1) Other movements in equity of associates

XV.3

141,386,796

(2) Others

(60,093,618)

III. Balance at the end of the year

38,196,363,421

8,176,366,808

53,693,627,213

3,508,201,911

340,345

3,241,063,934

6,624,620,470

106,424,180,280

???

These financial statements were approved by the Board of Directors of the Company on 31 March 2023.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

?	Note	Share capital	?	Other equity instruments	Capital reserve	Less: Treasury shares	?	Other comprehensive income	Surplus reserve	Retained earnings	Total
?	?	?		?	?	?		?	?	?	?
I. Balance at the beginning of the year	?	34,798,398,763		14,146,997,427	36,696,079,366	1,036,298,508		90,713,133	2,444,416,669	11,954,088,031	99,094,394,881
II. Changes in equity during the year	?	?		?	?	?		?	?	?	?
1. Total comprehensive income	?	-		-	-	-		53,550,302	-	4,396,496,566	4,450,046,868
2. Shareholders’ contributions of capital	?	?		?	?	?		?	?	?	?
(1) Contribution by ordinary shareholders	V.36	3,650,377,019		-	16,219,134,815	-		-	-	-	19,869,511,834
(2) Repurchase of treasury shares	V.39	-		-	-	2,428,003,419		-	-	-	(2,428,003,419)
(3) Cancellation of treasury shares	V.36/38/39	(3,029,300)		-	(14,270,384)	(17,299,684)		-	-	-	-?
(4) Equity-settled share-based payments	XI	-		-	640,692,637	(31,234,036)		-	-	-	671,926,673
3. Appropriation of profits	?	?		?	?	?		?	?	?	?
(1) Appropriation for surplus reserve	V.41	-		-	-	-		-	439,649,657	(439,649,657)	-
(2) Accrued interest on holders of other equity instruments	V.37	-		533,600,000	-	-		-	-	(533,600,000)	-
(3) Payment for interest on holders of other equity instruments	V.37	-		(533,600,000)	-	-		-	-	-	(533,600,000)
(4) Distributions to shareholders	V.42	-		-	-	-		-	-	(3,476,073,919)	(3,476,073,919)

????

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2021 (continued)(Expressed in Renminbi Yuan)

Note

Share capital

Other equity instruments

Capital reserve

Less: Treasury shares

Other comprehensive income

Surplus reserve

Retained earnings

Total

4. Transfers within equity

(1) Transfer of other comprehensive income to retained earnings

XV.9/10

(55,238,785)

5,523,879

49,714,906

5. Others

(1) Other movements in equity of associates

XV.3

53,544,976

(2) Others

2,851,742

III. Balance at the end of the year

38,445,746,482

14,146,997,427

53,598,033,152

3,415,768,207

89,024,650

2,889,590,205

11,950,975,927

117,704,599,636

These financial statements were approved by the Board of Directors of the Company on 31 March 2023.


Chen Yanshun Chairman of the Board	Gao Wenbao Chief Executive Officer	Yang Xiaoping Chief Financial Officer	Teng Jiao The head of the accounting department	(Company stamp)
(Signature and stamp)	(Signature and stamp)	(Signature and stamp)	(Signature and stamp)

The notes on pages 30 to 175 form part of these financial statements.

BOE Technology Group Co., Ltd.Notes to the financial statements(Expressed in Renminbi Yuan unless otherwise indicated)

I. Company status

BOE Technology Group Company Limited (the “Company”) is a company limited by sharesestablished on 9 April 1993 in Beijing, with its head office located at Beijing. The parent ofthe Company and the Company’s ultimate holding company is Beijing Electronics HoldingsCo., Ltd. (“Electronics Holdings”).

The Company and its subsidiaries (referred to as the “Group”) comprise five main businesssegments: display business, Internet of Things (IoT) innovation business, sensor business,MLED business and smart medicine & engineering business. For information about thesubsidiaries of the Company, refer to Note VII.

II. Basis of preparation

The financial statements have been prepared on the going concern basis.

III. Significant accounting policies and accounting estimates

1 Statement of compliance

The financial statements have been prepared in accordance with the requirements ofAccounting Standards for Business Enterprises or referred to as China AccountingStandards (“CAS”) issued by the MOF. These financial statements present truly andcompletely the consolidated financial position and financial position of the Company as at 31December 2022, and the consolidated financial performance and financial performance andthe consolidated cash flows and cash flows of the Company for the year then ended.

These financial statements also comply with the disclosure requirements of “Regulation onthe Preparation of Information Disclosures by Companies Issuing Securities, No. 15: GeneralRequirements for Financial Reports” as revised by the China Securities RegulatoryCommission (“CSRC”) in 2014.

2 Accounting period

The accounting period is from 1 January to 31 December.

3 Operating cycle

The Company takes the period from the acquisition of assets for processing to until theultimate realisation of cash or cash equivalents as a normal operating cycle. The operatingcycle of the Company is usually less than 12 months.

4 Functional currency

The Company’s functional currency is Renminbi and these financial statements arepresented in Renminbi. Functional currency is determined by the Company and itssubsidiaries on the basis of the currency in which major income and costs are denominatedand settled. Some of the Company’s subsidiaries have functional currencies that are differentfrom the Company’s functional currency. Their financial statements have been translatedbased on the accounting policy set out in Note III.8.

5 Accounting treatments for business combinations involving entities under common control

and not under common control

A transaction constitutes a business combination when the Group obtains control of one ormore entities (or a group of assets or net assets). Business combination is classified aseither business combinations involving enterprises under common control or businesscombinations not involving enterprises under common control.

For a transaction not involving enterprises under common control, the acquirer determineswhether acquired set of assets constitute a business. The Group may elect to apply thesimplified assessment method, the concentration test, to determine whether an acquired setof assets is not a business. If the concentration test is met and the set of assets isdetermined not to be a business, no further assessment is needed. If the concentration testis not met, the Group shall perform the assessment according to the guidance on thedetermination of a business.

When the set of assets the group acquired does not constitute a business, acquisition costsshould be allocated to each identifiable assets and liabilities at their acquisition date fairvalues. It is not required to apply the accounting of business combination described asbelow.

(1) Business combinations involving entities under common control

A business combination involving entities under common control is a business combination inwhich all of the combining entities are ultimately controlled by the same party or parties bothbefore and after the business combination, and that control is not transitory. The assetsacquired and liabilities assumed are measured based on their carrying amounts in theconsolidated financial statements of the ultimate controlling party at the combination date.The difference between the carrying amount of the net assets acquired and the considerationpaid for the combination (or the total par value of shares issued) is adjusted against sharepremium in the capital reserve, with any excess adjusted against retained earnings. Anycosts directly attributable to the combination are recognised in profit or loss when incurred.The combination date is the date on which one combining entity obtains control of othercombining entities.

(2) Business combinations involving entities not under common control

A business combination involving entities not under common control is a businesscombination in which all of the combining entities are not ultimately controlled by the sameparty or parties both before and after the business combination. Where (1) the aggregate ofthe acquisition-date fair value of assets transferred (including the acquirer’s previously heldequity interest in the acquiree), liabilities incurred or assumed, and equity securities issuedby the acquirer, in exchange for control of the acquiree, exceeds (2) the acquirer’s interest inthe acquisition-date fair value of the acquiree’s identifiable net assets, the difference isrecognised as goodwill (see Note III.17). If (1) is less than (2), the difference is recognised inprofit or loss for the current period. The costs of issuing equity or debt securities as a part ofthe consideration for the acquisition are included in the carrying amounts of these equity ordebt securities upon initial recognition. Other acquisition-related costs are expensed whenincurred. Any difference between the fair value and the carrying amount of the assetstransferred as consideration is recognised in profit or loss. The acquiree’s identifiable asset,liabilities and contingent liabilities, if the recognition criteria are met, are recognised by theGroup at their acquisition-date fair value. The acquisition date is the date on which theacquirer obtains control of the acquiree.

For a business combination involving entities not under common control and achieved instages, the Group remeasures its previously-held equity interest in the acquiree to itsacquisition-date fair value and recognises any resulting difference between the fair value andthe carrying amount as investment income or other comprehensive income for the currentperiod. In addition, any amount recognised in other comprehensive income and otherchanges in the owners’ equity under equity accounting in prior reporting periods relating tothe previously-held equity interest that may be reclassified to profit or loss are transferred toinvestment income at the date of acquisition (see Note III.11(2)(b)); Any previously-heldequity interest that is designated as equity investment at fair value through othercomprehensive income, the other comprehensive income recognised in prior reportingperiods is transferred to retained earnings and surplus reserve at the date of acquisition.

6 Consolidated financial statements

(1) General principles

The scope of consolidated financial statements is based on control and the consolidatedfinancial statements comprise the Company and its subsidiaries. Control exists when theinvestor has all of following: power over the investee; exposure, or rights, to variable returnsfrom its involvement with the investee and has the ability to affect those returns through itspower over the investee. When assessing whether the Group has power, only substantiverights (held by the Group and other parties) are considered. The financial position, financialperformance and cash flows of subsidiaries are included in the consolidated financialstatements from the date that control commences until the date that control ceases.

Non-controlling interests are presented separately in the consolidated balance sheet withinshareholders’ equity. Net profit or loss attributable to non-controlling shareholders ispresented separately in the consolidated income statement below the net profit line item.Total comprehensive income attributable to non-controlling shareholders is presentedseparately in the consolidated income statement below the total comprehensive income lineitem.

When the amount of loss for the current period attributable to the non-controllingshareholders of a subsidiary exceeds the non-controlling shareholders’ share of the openingowners’ equity of the subsidiary, the excess is still allocated against the non-controllinginterests.

When the accounting period or accounting policies of a subsidiary are different from those ofthe Company, the Company makes necessary adjustments to the financial statements of thesubsidiary based on the Company’s own accounting period or accounting policies. Intra-group balances and transactions, and any unrealised profit or loss arising from intra-grouptransactions, are eliminated when preparing the consolidated financial statements.Unrealised losses resulting from intra-group transactions are eliminated in the same way asunrealised gains, unless they represent impairment losses that are recognised in thefinancial statements.

(2) Subsidiaries acquired through a business combination

Where a subsidiary was acquired during the reporting period, through a businesscombination involving entities under common control, the financial statements of thesubsidiary are included in the consolidated financial statements based on the carryingamounts of the assets and liabilities of the subsidiary in the financial statements of theultimate controlling party as if the combination had occurred at the date that the ultimatecontrolling party first obtained control. The opening balances and the comparative figures ofthe consolidated financial statements are also restated.

Where a subsidiary was acquired during the reporting period, through a businesscombination involving entities not under common control, the identifiable assets and liabilitiesof the acquired subsidiaries are included in the scope of consolidation from the date thatcontrol commences, based on the fair value of those identifiable assets and liabilities at theacquisition date.

(3) Disposal of subsidiaries

When the Group loses control over a subsidiary, any resulting disposal gains or losses arerecognised as investment income for the current period. The remaining equity interests is re-measured at its fair value at the date when control is lost, any resulting gains or losses arealso recognised as investment income for the current period.

When the Group loses control of a subsidiary in multiple transactions in which it disposes ofits long-term equity investment in the subsidiary in stages, the following are considered todetermine whether the Group should account for the multiple transactions as a bundledtransaction:

- arrangements are entered into at the same time or in contemplation of each other;- arrangements work together to achieve an overall commercial effect;- the occurrence of one arrangement is dependent on the occurrence of at least one otherarrangement;- one arrangement considered on its own is not economically justified, but it is economicallyjustified when considered together with other arrangements.

If each of the multiple transactions does not form part of a bundled transaction, thetransactions conducted before the loss of control of the subsidiary are accounted for inaccordance with the accounting policy for partial disposal of equity investment in subsidiarieswhere control is retained (see Note III.6(4)).

If each of the multiple transactions forms part of a bundled transaction which eventuallyresults in the loss of control in the subsidiary, these multiple transactions are accounted foras a single transaction. In the consolidated financial statements, the difference between theconsideration received and the corresponding proportion of the subsidiary’s net assets(calculated continuously from the acquisition date) in each transaction prior to the loss ofcontrol shall be recognised in other comprehensive income and transferred to profit or losswhen the parent eventually loses control of the subsidiary.

(4) Changes in non-controlling interests

Where the Company acquires a non-controlling interest from a subsidiary’s non-controllingshareholders or disposes of a portion of an interest in a subsidiary without a change incontrol, the difference between the proportion interests of the subsidiary’s net assets beingacquired or disposed and the amount of the consideration paid or received is adjusted to thecapital reserve (share premium) in the consolidated balance sheet, with any excess adjustedto retained earnings.

7 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, deposits that can be readily withdraw ondemand, and short-term, highly liquid investments that are readily convertible into knownamounts of cash and are subject to an insignificant risk of change in value.

8 Foreign currency transactions and translation of foreign currency financial statements

When the Group receives capital in foreign currencies from investors, the capital is translatedto Renminbi at the spot exchange rate at the date of the receipt. Other foreign currencytransactions are, on initial recognition, translated to Renminbi at the spot exchange rates onthe dates of the transactions.

Monetary items denominated in foreign currencies are translated to Renminbi at the spotexchange rate at the balance sheet date. The resulting exchange differences are generallyrecognised in profit or loss, unless they arise from the re-translation of the principal andinterest of specific borrowings for the acquisition and construction of qualifying assets (seeNote III.15). Non-monetary items that are measured at historical cost in foreign currenciesare translated to Renminbi using the exchange rate at the transaction date. Non-monetaryitems that are measured at fair value in foreign currencies are translated using the exchangerate at the date the fair value is determined. The resulting exchange differences arerecognised in profit or loss, except for the differences arising from the re-translation of equityinvestments at fair value through other comprehensive income, which are recognised in othercomprehensive income.

In translating the financial statements of a foreign operation, assets and liabilities of foreignoperation are translated to Renminbi at the spot exchange rate at the balance sheet date.Equity items, excluding retained earnings and the translation differences in othercomprehensive income, are translated to Renminbi at the spot exchange rates at thetransaction dates. Income and expenses of foreign operation are translated to Renminbi atthe rates that approximate the spot exchange rates at the transaction dates. The resultingtranslation differences are recognised in other comprehensive income. The translationdifferences accumulated in shareholders’ equity with respect to a foreign operation aretransferred to profit or loss in the period when the foreign operation is disposed.

9 Financial instruments

Financial instruments include cash at bank and on hand, investments in debt and equitysecurities other than those classified as long-term equity investments (see Note III.11),receivables, payables, loans and borrowings, debentures payable and share capital.

(1) Recognition and initial measurement of financial assets and financial liabilities

A financial asset or financial liability is recognised in the balance sheet when the Groupbecomes a party to the contractual provisions of a financial instrument.

A financial or financial liability is measured initially at fair value. For financial assets andfinancial liabilities at fair value through profit or loss, any related directly attributabletransaction costs are charged to profit or loss; for other categories of financial assets andfinancial liabilities, any related directly attributable transaction costs are included in theirinitial costs. A trade receivable, without significant financing component or practicalexpedient applied for one year or less contracts, is initially measured at the transaction pricein accordance with Note III.20.

(2) Classification and subsequent measurement of financial assets

(a) Classification of financial assets

The classification of financial assets is generally based on the business model in whicha financial asset is managed and its contractual cash flow characteristics. On initialrecognition, a financial asset is classified as measured at amortised cost, at fair valuethrough other comprehensive income (“FVOCI”), or at fair value through profit or loss(“FVTPL”).

Financial assets are not reclassified subsequent to their initial recognition unless theGroup changes its business model for managing financial assets in which case allaffected financial assets are reclassified on the first day of the first reporting periodfollowing the change in the business model.

A financial asset is measured at amortised cost if it meets both of the followingconditions and is not designated as at FVTPL:

- it is held within a business model whose objective is to hold assets to collectcontractual cash flows; and- its contractual terms give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions andis not designated as at FVTPL:

- it is held within a business model whose objective is achieved by both collectingcontractual cash flows and selling financial assets; and- its contractual terms give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group mayirrevocably elect to present subsequent changes in the investment’s fair value in othercomprehensive income. This election is made on an investment-by-investment basis.The instrument meets the definition of equity from the perspective of the issuer.

All financial assets not classified as measured at amortised cost or FVOCI asdescribed above are measured at FVTPL. On initial recognition, the Group mayirrevocably designate a financial asset that otherwise meets the requirements to bemeasured at amortised cost or at FVOCI as at FVTPL if doing so eliminates orsignificantly reduces an accounting mismatch that would otherwise arise.

The business model refers to how the Group manages its financial assets in order togenerate cash flows. That is, the Group’s business model determines whether cashflows will result from collecting contractual cash flows, selling financial assets or both.The Group determines the business model for managing the financial assets accordingto the facts and based on the specific business objective for managing the financialassets determined by the Group’s key management personnel.

In assessing whether the contractual cash flows are solely payments of principal andinterest, the Group considers the contractual terms of the instrument. For the purposesof this assessment, ‘principal’ is defined as the fair value of the financial asset on initialrecognition. ‘Interest’ is defined as consideration for the time value of money and forthe credit risk associated with the principal amount outstanding during a particularperiod of time and for other basic lending risks and costs, as well as a profit margin.The Group also assesses whether the financial asset contains a contractual term thatcould change the timing or amount of contractual cash flows such that it would notmeet this condition.

(b) Subsequent measurement of financial assets

- Financial assets at FVTPL

These financial assets are subsequently measured at fair value. Net gains andlosses, including any interest or dividend income, are recognised in profit or lossunless the financial assets are part of a hedging relationship.

- Financial assets at amortised cost

These assets are subsequently measured at amortised cost using the effectiveinterest method. A gain or loss on a financial asset that is measured at amortisedcost and is not part of a hedging relationship shall be recognised in profit or losswhen the financial asset is derecognised, reclassified, through the amortisationprocess or in order to recognise impairment gains or losses.

- Debt investments at FVOCI

These assets are subsequently measured at fair value. Interest income calculatedusing the effective interest method, impairment and foreign exchange gains andlosses are recognised in profit or loss. Other net gains and losses are recognised inother comprehensive income. On derecognition, gains and losses accumulated inother comprehensive income are reclassified to profit or loss.

- Equity investments at FVOCI

These assets are subsequently measured at fair value. Dividends are recognised asincome in profit or loss. Other net gains and losses are recognised in othercomprehensive income. On derecognition, gains and losses accumulated in othercomprehensive income are reclassified to retained earnings.

(3) Classification and subsequent measurement of financial liabilities

Financial liabilities are classified as measured at FVTPL or amortised cost.

- Financial liabilities at FVTPL

A financial liability is classified as at FVTPL if it is classified as held-for-trading (includingderivative financial liability) or it is designated as such on initial recognition.

Financial liabilities at FVTPL are subsequently measured at fair value and net gains andlosses, including any interest expense, are recognised in profit or loss, unless the financialliabilities are part of a hedging relationship.

- Financial liabilities at amortised cost

These financial liabilities are subsequently measured at amortised cost using the effectiveinterest method.

(4) Offsetting

Financial assets and financial liabilities are generally presented separately in the balancesheet, and are not offset. However, a financial asset and a financial liability are offset and thenet amount is presented in the balance sheet when both of the following conditions aresatisfied:

- The Group currently has a legally enforceable right to set off the recognised amounts；- The Group intends either to settle on a net basis, or to realise the financial asset and

settle the financial liability simultaneously.

(5) Derecognition of financial assets and financial liabilities

Financial asset is derecognised when one of the following conditions is met:

- the Group’s contractual rights to the cash flows from the financial asset expire;- the financial asset has been transferred and the Group transfers substantially all of therisks and rewards of ownership of the financial asset; or；- the financial asset has been transferred, although the Group neither transfers nor retainssubstantially all of the risks and rewards of ownership of the financial asset, it does notretain control over the transferred asset.

Where a transfer of a financial asset in its entirety meets the criteria for derecognition, thedifference between the two amounts below is recognised in profit or loss:

- the carrying amount of the financial asset transferred measured at the date ofderecognition;- the sum of the consideration received from the transfer and, when the transferred financialasset is a debt investment at FVOCI, any cumulative gain or loss that has beenrecognised directly in other comprehensive income for the part derecognised.

The Group derecognises a financial liability (or part of it) only when its contractual obligation(or part of it) is extinguished.

(6) Impairment

The Group recognises loss allowances for expected credit loss (ECL) on:

- financial assets measured at amortised cost;- contract assets;- debt investments at FVOCI; and- lease receivables

Financial assets measured at fair value, including debt investments or equity securities atFVTPL, equity securities designated at FVOCI and derivative financial assets, are not subjectto the ECL assessment.

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as thepresent value of all cash shortfalls (i.e. the difference between the cash flows due to theentity in accordance with the contract and the cash flows that the Group expects to receive).

The maximum period considered when estimating ECLs is the maximum contractual period(including extension options) over which the Group is exposed to credit risk.

Lifetime ECLs are the ECLs that result from all possible default events over the expected lifeof a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possiblewithin the 12 months after the balance sheet date (or a shorter period if the expected life ofthe instrument is less than 12 months).

Loss allowances for trade receivables, lease receivables and contract assets are alwaysmeasured at an amount equal to lifetime ECL. ECLs on these financial assets are estimatedusing a provision matrix based on the Group’s historical credit loss experience, adjusted forfactors that are specific to the debtors and an assessment of both the current and forecastgeneral economic conditions at the balance sheet date.

Except for trade receivables, lease receivables and contract assets, the Group measuresloss allowance at an amount equal to 12-month ECL for the following financial instruments,and at an amount equal to lifetime ECL for all other financial instruments.

- If the financial instrument is determined to have low credit risk at the balance sheet date;- If the credit risk on a financial instrument has not increased significantly since initialrecognition.

Financial instruments that have low credit risk

The credit risk on a financial instrument is considered low if the financial instrument has a lowrisk of default, the borrower has a strong capacity to meet its contractual cash flowobligations in the near term and adverse changes in economic and business conditions in thelonger term may, but will not necessarily, reduce the ability of the borrower to fulfil itscontractual cash flow obligations.

Significant increases in credit risk

In assessing whether the credit risk of a financial instrument has increased significantly sinceinitial recognition, the Group compares the risk of default occurring on the financialinstrument assessed at the balance sheet date with that assessed at the date of initialrecognition.

When determining whether the credit risk of a financial asset has increased significantlysince initial recognition and when estimating ECL, the Group considers reasonable andsupportable information that is relevant and available without undue cost or effort, includingforward-looking information. In particular, the following information is taken into account:

- failure to make payments of principal or interest on their contractually due dates;- an actual or expected significant deterioration in a financial instrument’s external orinternal credit rating (if available);- an actual or expected significant deterioration in the operating results of the debtor; and- existing or forecast changes in the technological, market, economic or legal environmentthat have a significant adverse effect on the debtor’s ability to meet its obligation to theGroup.

Depending on the nature of the financial instruments, the assessment of a significantincrease in credit risk is performed on either an individual basis or a collective basis. Whenthe assessment is performed on a collective basis, the financial instruments are groupedbased on shared credit risk characteristics, such as past due status and credit risk ratings.

The Group assumes that the credit risk on a financial asset has increased significantly if it ismore than 30 days past due.

Credit-impaired financial assets

At each balance sheet date, the Group assesses whether financial assets carried atamortised cost and debt investments at FVOCI are credit-impaired. A financial asset is‘credit-impaired’ when one or more events that have a detrimental impact on the estimatedfuture cash flows of the financial asset have occurred. Evidence that a financial asset iscredit-impaired includes the following observable data:

- significant financial difficulty of the borrower or issuer;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the borrower’s financial difficulty, the

Group having granted to the borrower a concession that would not otherwise consider;- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or- the disappearance of an active market for that financial asset because of financialdifficulties.

Presentation of allowance for ECL

ECLs are remeasured at each balance sheet date to reflect changes in the financialinstrument’s credit risk since initial recognition. Any change in the ECL amount is recognisedas an impairment gain or loss in profit or loss. The Group recognises an impairment gain orloss for all financial instruments with a corresponding adjustment to their carrying amountthrough a loss allowance account, except for debt investments that are measured at FVOCI,for which the loss allowance is recognised in other comprehensive income.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to theextent that there is no realistic prospect of recovery. A write-off constitutes a derecognitionevent. This is generally the case when the Group determines that the debtor does not haveassets or sources of income that could generate sufficient cash flows to repay the amountssubject to the write-off. However, financial assets that are written off could still be subject toenforcement activities in order to comply with the Group’s procedures for recovery ofamounts due.

Subsequent recoveries of an asset that was previously written off are recognised as areversal of impairment in profit or loss in the period in which the recovery occurs.

(7) Equity instrument

The consideration received from the issuance of equity instruments net of transaction costsis recognised in shareholders’ equity. Consideration and transaction costs paid by theCompany for repurchasing self-issued equity instruments are deducted from shareholders’equity.

When the Company repurchases its own shares, those shares are treated as treasuryshares. All expenditure relating to the repurchase is recorded in the cost of the treasuryshares, with the transaction recording in the share register. Treasury shares are excludedfrom profit distributions and are presented as a deduction under shareholders’ equity in thebalance sheet.

When treasury shares are cancelled, the share capital should be reduced to the extent of thetotal par value of the treasury shares cancelled. Where the cost of the treasury sharescancelled exceeds the total par value, the excess is deducted from capital reserve (sharepremium), surplus reserve and retained earnings sequentially. If the cost of treasury sharescancelled is less than the total par value, the difference is credited to the capital reserve(share premium).

When treasury shares are disposed of, any excess of proceeds above cost is recognised incapital reserve (share premium); otherwise, the shortfall is deducted against capital reserve(share premium), surplus reserve and retained earnings sequentially.

(8) Perpetual bonds

At initial recognition, the Group classifies the perpetual bonds issued or their components asfinancial assets, financial liabilities or equity instruments based on their contractual terms andtheir economic substance after considering the definition of financial assets, financialliabilities and equity instruments.

Perpetual bonds issued that should be classified as equity instruments are recognised inequity based on the actual amount received. Any distribution of dividends or interests duringthe instruments’ duration is treated as profit appropriation. When the perpetual bonds areredeemed according to the contractual terms, the redemption price is charged to equity.

10 Inventories

(1) Classification and cost

Inventories include raw materials, work in progress, finished goods and reusable materials.Reusable materials include low-value consumables, packaging materials and othermaterials, which can be used repeatedly but do not meet the definition of fixed assets.

Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase,costs of conversion and other expenditure incurred in bringing the inventories to their presentlocation and condition. In addition to the purchase cost of raw materials, work in progressand finished goods include direct labour costs and an appropriate allocation of productionoverheads.

(2) Measurement method of cost of inventories

Cost of inventories recognised is calculated using the weighted average method.

Consumables including low-value consumables and packaging materials are charged toprofit or loss upon receipt. The amortisation charge is included in the cost of the relatedassets or recognised in profit or loss for the current period.

(3) Basis for determining the net realisable value and method for provision for obsolete

inventories

At the balance sheet date, inventories are carried at the lower of cost and net realisablevalue.

Net realisable value is the estimated selling price in the ordinary course of business less theestimated costs of completion and the estimated costs necessary to make the sale andrelevant taxes. The net realisable value of materials held for use in the production ismeasured based on the net realisable value of the finished goods in which they will beincorporated. The net realisable value of the inventory held to satisfy sales or servicecontracts is measured based on the contract price, to the extent of the quantities specified insales contracts, and the excess portion of inventories is measured based on general sellingprices.

Any excess of the cost over the net realisable value of each category of inventories isrecognised as a provision for obsolete inventories, and is recognised in profit or loss.

(4) Inventory count system

The Group maintains a perpetual inventory system.

11 Long-term equity investments

(1) Investment cost of long-term equity investments

(a) Long-term equity investments acquired through a business combination

- The initial cost of a long-term equity investment acquired through a business

combination involving entities under common control is the Company’s share of thecarrying amount of the subsidiary’s equity in the consolidated financial statements ofthe ultimate controlling party at the combination date. The difference between theinitial investment cost and the carrying amount of the consideration given is adjustedto the share premium in the capital reserve, with any excess adjusted to retainedearnings. For a long-term equity investment in a subsidiary acquired through abusiness combination achieved in stages which do not form a bundled transactionand involving entities under common control, the Company determines the initialcost of the investment in accordance with the above policies. The differencebetween this initial cost and the sum of the carrying amount of previously-heldinvestment and the consideration paid for the shares newly acquired is adjusted tocapital premium in the capital reserve, with any excess adjusted to retainedearnings.

- For a long-term equity investment obtained through a business combination not

involving entities under common control, the initial cost comprises the aggregate ofthe fair value of assets transferred, liabilities incurred or assumed, and equitysecurities issued by the Company, in exchange for control of the acquiree. For along-term equity investment obtained through a business combination not involvingentities under common control and achieved through multiple transactions in stageswhich do not form a bundled transaction, the initial cost comprises the carryingamount of the previously-held equity investment in the acquiree immediately beforethe acquisition date, and the additional investment cost at the acquisition date.

(b) Long-term equity investments acquired other than through a business combination

- A long-term equity investment acquired other than through a business combinationis initially recognised at the amount of cash paid if the Group acquires theinvestment by cash, or at the fair value of the equity securities issued if aninvestment is acquired by issuing equity securities.

(2) Subsequent measurement of long-term equity investment

(a) Investments in subsidiaries

In the Company’s separate financial statements, long-term equity investments insubsidiaries are accounted for using the cost method for subsequent measurementunless the investment is classified as held for sale (see Note III.29). Except for cashdividends or profit distributions declared but not yet distributed that have been includedin the price or consideration paid in obtaining the investments, the Companyrecognises its share of the cash dividends or profit distributions declared by theinvestee as investment income for the current period.

The investments in subsidiaries are stated in the balance sheet at cost lessaccumulated impairment losses.

For the impairment of the investments in subsidiaries, refer to Note III.19.

In the Group’s consolidated financial statements, subsidiaries are accounted for inaccordance with the policies described in Note III.6.

(b) Investment in joint ventures and associates

A joint venture is an arrangement whereby the Group and other parties have jointcontrol (see Note III.11(3)) and rights to the net assets of the arrangement.

An associate is an entity over which the Group has significant influence (see NoteIII.11(3)).

An investment in a joint venture or an associate is accounted for using the equitymethod for subsequent measurement, unless the investment is classified as held forsale (see Note III.29).

The accounting treatments under the equity method adopted by the Group are asfollows:

- Where the initial cost of a long-term equity investment exceeds the Group’s interestin the fair value of the investee’s identifiable net assets at the date of acquisition, theinvestment is initially recognised at cost. Where the initial investment cost is lessthan the Group’s interest in the fair value of the investee’s identifiable net assets atthe date of acquisition, the investment is initially recognised at the investor’s shareof the fair value of the investee’s identifiable net assets, and the difference isrecognised in profit or loss.

- After the acquisition of the investment, the Group recognises its share of theinvestee’s profit or loss and other comprehensive income as investment income orlosses and other comprehensive income respectively, and adjusts the carryingamount of the investment accordingly. Once the investee declares any cashdividends or profit distributions, the carrying amount of the investment is reduced bythe amount attributable to the Group. Changes in the Group’s share of theinvestee’s owners’ equity, other than those arising from the investee’s net profit orloss, other comprehensive income or profit distribution (referred to as “otherchanges in owners’ equity”), is recognised directly in the Group’s equity, and thecarrying amount of the investment is adjusted accordingly.

- In calculating its share of the investee’s net profits or losses, other comprehensiveincome and other changes in owners’ equity, the Group recognises investmentincome and other comprehensive income after making appropriate adjustments toalign the accounting policies or accounting periods with those of the Group based onthe fair value of the investee’s identifiable net assets at the date of acquisition.Unrealised profits and losses resulting from transactions between the Group and itsassociates or joint ventures are eliminated to the extent of the Group’s interest in theassociates or joint ventures. Unrealised losses resulting from transactions betweenthe Group and its associates or joint ventures are eliminated in the same way asunrealised gains but only to the extent that there is no impairment.

- The Group discontinues recognising its share of further losses of the investee afterthe carrying amount of the long-term equity investment and any long-term interestthat in substance forms part of the Group’s net investment in the joint venture orassociate is reduced to zero, except to the extent that the Group has an obligation toassume additional losses. If the joint venture or associate subsequently reports netprofits, the Group resumes recognising its share of those profits only after its shareof the profits has fully covered the share of losses not recognised.

For the impairment of the investments in joint ventures and associates, refer to NoteIII.19.

(3) Criteria for determining the existence of joint control or significant influence over an investee

Joint control is the contractually agreed sharing of control of an arrangement, which existsonly when decisions about the relevant activities (activities with significant impact on thereturns of the arrangement) require the unanimous consent of the parties sharing control.

The following factors are usually considered when assessing whether the Group canexercise joint control over an investee:

- Whether no single participant party is in a position to control the investee’s related

activities unilaterally;- Whether strategic decisions relating to the investee’s related activities require theunanimous consent of all participant parties that sharing of control.

Significant influence is the power to participate in the financial and operating policy decisionsof an investee but does not have control or joint control over those policies.

12 Investment properties

Investment properties are properties held either to earn rental income or for capitalappreciation or for both. Investment properties are accounted for using the cost model andstated in the balance sheet at cost less accumulated depreciation, amortisation andimpairment losses. The cost of investment property, less its estimated residual value andaccumulated impairment losses, is depreciated or amortised using the straight-line methodover its estimated useful life, unless the investment property is classified as held for sale (seeNote III.29). For the impairment of the investment properties, refer to Note III.19.

The estimated useful lives, residual value rates and depreciation rates of each class ofinvestment properties are as follows:

?	Estimated useful life (years)	?	Residual value rate (%)	?	Depreciation rate (%)
?	?	?	?	?	?
Land use rights	32 - 50 years	?	0.0%	?	2.0% - 3.1%
Buildings	20 - 40 years	?	0% - 10.0%	?	2.3% - 5.0%

???

13 Fixed assets

(1) Recognition of fixed assets

Fixed assets represent the tangible assets held by the Group for use in the production ofgoods, supply of services, for rental or for administrative purposes with useful lives over oneyear.

The cost of a purchased fixed asset comprises the purchase price, related taxes, and anydirectly attributable expenditure for bringing the asset to working condition for its intendeduse. The cost of self-constructed assets is measured in accordance with the policy set out inNote III.14.

Where the parts of an item of fixed assets have different useful lives or provide benefits tothe Group in a different pattern, thus necessitating use of different depreciation rates ormethods, each part is recognised as a separate fixed asset.

Any subsequent costs including the cost of replacing part of an item of fixed assets arerecognised as assets when it is probable that the economic benefits associated with thecosts will flow to the Group, and the carrying amount of the replaced part is derecognised.The costs of the day-to-day maintenance of fixed assets are recognised in profit or loss asincurred.

Fixed assets are stated in the balance sheet at cost less accumulated depreciation andimpairment losses.

(2) Depreciation of fixed assets

The cost of a fixed asset, less its estimated residual value and accumulated impairmentlosses, is depreciated using the straight-line method over its estimated useful life, unless thefixed asset is classified as held for sale (see Note III.29).

The estimated useful lives, residual value rates and depreciation rates of each class of fixedassets are as follows:

Class	Estimated useful life (years)	?	Residual value rate (%)	?	Depreciation rate (%)
?	?	?	?	?	?
Buildings	10 - 50 years	?	3% - 10%	?	1.8% - 9.7%
Equipment	2 - 25 years	?	0 - 10%	?	3.6% - 50%
Others	2 - 10 years	?	0 - 10%	?	9.0% - 50%

???

Useful lives, residual values and depreciation methods are reviewed at least at each year-end.

(3) For the impairment of the fixed assets, refer to Note III.19.

(4) Disposal of fixed assets

The carrying amount of a fixed asset is derecognised:

- when the fixed asset is holding for disposal; or- when no future economic benefit is expected to be generated from its use or disposal.

Gains or losses arising from the retirement or disposal of an item of fixed asset aredetermined as the difference between the net disposal proceeds and the carrying amount ofthe item, and are recognised in profit or loss on the date of retirement or disposal.

14 Construction in progress

The cost of self-constructed assets includes the cost of materials, direct labour, capitalisedborrowing costs (see Note III.15), and any other costs directly attributable to bringing theasset to working condition for its intended use.

A self-constructed asset is classified as construction in progress and transferred to fixedasset when it is ready for its intended use. No depreciation is provided against constructionin progress.

Construction in progress is stated in the balance sheet at cost less accumulated impairmentlosses (see Note III.19).

When an enterprise sells products or by-products produced before a fixed asset is availablefor its intended use, the proceeds and related cost are accounted for in accordance with CAS14 – Revenue and CAS 1 – Inventories respectively, and recognised in profit or loss for thecurrent period.

15 Borrowing costs

Borrowing costs incurred directly attributable to the acquisition and construction of aqualifying asset are capitalised as part of the cost of the asset. Other borrowing costs arerecognised as financial expenses when incurred.

During the capitalisation period, the amount of interest (including amortisation of anydiscount or premium on borrowing) to be capitalised in each accounting period is determinedas follows:

- Where funds are borrowed specifically for the acquisition and construction of a qualifyingasset, the amount of interest to be capitalised is the interest expense calculated usingeffective interest rates during the period less any interest income earned from depositingthe borrowed funds or any investment income on the temporary investment of those fundsbefore being used on the asset.

- To the extent that the Group borrows funds generally and uses them for the acquisitionand construction of a qualifying asset, the amount of borrowing costs eligible forcapitalisation is determined by applying a capitalisation rate to the weighted average ofthe excess amounts of cumulative expenditure on the asset over the above amounts ofspecific borrowings. The capitalisation rate is the weighted average of the interest ratesapplicable to the general-purpose borrowings. The capitalisation rate is the weightedaverage of the interest rates applicable to the general-purpose borrowings.

The effective interest rate is determined as the rate that exactly discounts estimated futurecash flow through the expected life of the borrowing or, when appropriate, a shorter period tothe initially recognised amount of the borrowings.

During the capitalisation period, exchange differences related to the principal and interest ona specific-purpose borrowing denominated in foreign currency are capitalised as part of thecost of the qualifying asset. The exchange differences related to the principal and interest onforeign currency borrowings other than a specific-purpose borrowing are recognised as afinancial expense when incurred.

The capitalisation period is the period from the date of commencement of capitalisation ofborrowing costs to the date of cessation of capitalisation, excluding any period over whichcapitalisation is suspended. Capitalisation of borrowing costs commences when expenditurefor the asset is being incurred, borrowing costs are being incurred and activities of acquisitionand construction that are necessary to prepare the asset for its intended use are in progress,and ceases when the assets become ready for their intended use. When the parts of thequalifying assets acquired or constructed that are eligible for capitalisation are completedseparately, and each part is available for use in other parts of the construction process orcan be sold externally, and for the purpose of making the parts of the assets ready for use ornecessary for the sales status, the acquisition or construction activities have beensubstantially completed, the Group ceases the capitalisation of the borrowing costs related tothe parts of the assets. Capitalisation of borrowing costs is suspended when the acquisitionand construction activities are interrupted abnormally for a period of more than three months.

16 Intangible assets

Intangible assets are stated in the balance sheet at cost less accumulated amortisation(where the estimated useful life is finite) and impairment losses (see Note III.19). For anintangible asset with finite useful life, its cost less estimated residual value and accumulatedimpairment losses is amortised using the straight-line method over its estimated useful life,unless the intangible asset is classified as held for sale (see Note III.29).

The respective amortisation periods for intangible assets are as follows:

Item	Amortisation period (years)
?	?
Land use rights	20 - 50 years
Patent and proprietary technology	5 - 20 years
Computer software	3 - 10 years
Others	5 - 20 years

???

Useful lives and amortisation methods of intangible asset with finite useful life are reviewedat least at each year-end. An intangible asset is regarded as having an indefinite useful lifeand is not amortised when there is no foreseeable limit to the period over which the asset isexpected to generate economic benefits for the Group. At the balance sheet date, the Groupdoes not have any intangible assets with indefinite useful lives.

Expenditure on an internal research and development project is classified into expenditureincurred during the research phase and expenditure incurred during the development phase.

Expenditure during the research phase is expensed when incurred. Expenditure during thedevelopment phase is capitalised if development costs can be measured reliably, the productor process is technically and commercially feasible, and the Group intends to and hassufficient resources to complete the development. Capitalised development costs are statedin the balance sheet at cost less impairment losses (see Note III.19). Other developmentexpenditure is recognised as an expense in the period in which it is incurred.

When an enterprise sells products or by-products produced in the course of research anddevelopment, the proceeds and related cost are accounted for in accordance with CAS 14 –Revenue and CAS 1 – Inventories respectively, and recognised in profit or loss for thecurrent period.

17 Goodwill

The initial cost of goodwill represents the excess of cost of acquisition over the acquirer’sinterest in the fair value of the identifiable net assets of the acquiree under a businesscombination not involving entities under common control.

Goodwill is not amortised and is stated in the balance sheet at cost less accumulatedimpairment losses (see Note III.19). On disposal of an asset group or a set of asset groups,any attributable goodwill is written off and included in the calculation of the profit or loss ondisposal.

18 Long-term deferred expenses

Long-term deferred expenses are amortised using a straight-line method within the benefitperiod. The respective amortisation periods for such expenses are as follows:

Item	Amortisation period (years)
?	?
Payment for public facilities construction and use	10 - 15 years
Leasehold improvements	2 - 10 years
Others	2 - 10 years

???

19 Impairment of assets other than inventories and financial assets

The carrying amounts of the following assets are reviewed at each balance sheet date basedon internal and external sources of information to determine whether there is any indicationof impairment:

- fixed assets- construction in progress- right-of-use assets- intangible assets- investment properties measured using a cost model- long-term equity investments- goodwill- long-term deferred expenses, etc.

If any indication exists, the recoverable amount of the asset is estimated. In addition, theGroup estimates the recoverable amounts of goodwill at each year-end, irrespective ofwhether there is any indication of impairment. Goodwill is allocated to each asset group orset of asset groups, which is expected to benefit from the synergies of the combination forthe purpose of impairment testing.

The recoverable amount of an asset (or asset group, set of asset groups) is the higher of itsfair value (see Note III.20) less costs to sell and its present value of expected future cashflows.

An asset group is composed of assets directly related to cash generation and is the smallestidentifiable group of assets that generates cash inflows that are largely independent of thecash inflows from other assets or asset groups.

The present value of expected future cash flows of an asset is determined by discounting thefuture cash flows, estimated to be derived from continuing use of the asset and from itsultimate disposal, to their present value using an appropriate pre-tax discount rate.

An impairment loss is recognised in profit or loss when the recoverable amount of an asset isless than its carrying amount. A provision for impairment of the asset is recognisedaccordingly. Impairment losses related to an asset group or a set of asset groups areallocated first to reduce the carrying amount of any goodwill allocated to the asset group orset of asset groups, and then to reduce the carrying amount of the other assets in the assetgroup or set of asset groups on a pro rata basis. However, such allocation would not reducethe carrying amount of an asset below the highest of its fair value less costs to sell (ifmeasurable), its present value of expected future cash flows (if determinable) and zero.

Once an impairment loss is recognised, it is not reversed in a subsequent period.

20 Fair value measurement

Unless otherwise specified, the Group measures fair value as follows:

Fair value is the price that would be received to sell an asset or paid to transfer a liability inan orderly transaction between market participants at the measurement date.

When measuring fair value, the Group takes into account the characteristics of the particularasset or liability (including the condition and location of the asset and restrictions, if any, onthe sale or use of the asset) that market participants would consider when pricing the assetor liability at the measurement date, and uses valuation techniques that are appropriate inthe circumstances and for which sufficient data and other information are available tomeasure fair value. Valuation techniques mainly include the market approach, the incomeapproach and the cost approach.

21 Provisions

A provision is recognised for an obligation related to a contingency if the Group has apresent obligation that can be estimated reliably, and it is probable that an outflow ofeconomic benefits will be required to settle the obligation.

A provision is initially measured at the best estimate of the expenditure required to settle therelated present obligation. Where the effect of the time value of money is material, provisionsare determined by discounting the expected future cash flows. Factors pertaining to acontingency such as the risks, uncertainties and time value of money are taken into accountas a whole in reaching the best estimate. Where there is a continuous range of possibleoutcomes for the expenditure required, and each possible outcome in that range is as likelyas any other, the best estimate is the mid-point of that range. In other cases, the bestestimate is determined according to the following circumstances:

- Where the contingency involves a single item, the best estimate is the most likely

outcome.- Where the contingency involves a large population of items, the best estimate isdetermined by weighting all possible outcomes by their associated probabilities.

The Group reviews the carrying amount of a provision at the balance sheet date and adjuststhe carrying amount to the current best estimate.

22 Share-based payments

(1) Classification of share-based payments

Share-based payment transactions in the Group are equity-settled share-based payments.

(2) Accounting treatment of share-based payments

- Equity-settled share-based payments

Where the Group uses shares or other equity instruments as consideration for services

received from the employees, the payment is measured at the fair value of the equity

instruments granted to the employees at the grant date. If the equity instruments granted

do not vest until the completion of services for a period, or until the achievement of a

specified performance condition, the Group recognises an amount at each balance sheet

date during the vesting period based on the best estimate of the number of equity

instruments expected to vest according to the newly obtained subsequent information of

the changes of the number of the employees expected to vest the equity instruments. The

Group measures the services received at the grant-date fair value of the equity

instruments and recognises the costs or expenses as the services are received, with a

corresponding increase in capital reserve.

23 Revenue recognition

Revenue is the gross inflow of economic benefits arising in the course of the Group’sordinary activities when the inflows result in increase in shareholders’ equity, other thanincrease relating to contributions from shareholders.

Revenue is recognised when the Group satisfies the performance obligation in the contractby transferring the control over relevant goods or services to the customers.

Where a contract has two or more performance obligations, the Group determines the stand-alone selling price at contract inception of the distinct good or service underlying eachperformance obligation in the contract and allocates the transaction price in proportion tothose stand-alone selling prices. The Group recognises as revenue the amount of thetransaction price that is allocated to each performance obligation. The stand-alone sellingprice is the price at which the Group would sell a promised good or service separately to acustomer. If a stand-alone selling price is not directly observable, the Group considers allinformation that is reasonably available to the entity, maximises the use of observable inputsto estimate the stand-alone selling price.

For the contract which the Group grants a customer the option to acquire additional goods orservices (such as, loyalty points, discount coupons for future purchase, etc.,), the Groupassesses whether the option provides a material right to the customer. If the option providesa material right, the Group recognises the option as a performance obligation, andrecognises revenue when those future goods or services are transferred or when the optionexpires. If the stand-alone selling price for a customer’s option to acquire additional goods orservices is not directly observable, the Group estimates it, taking into account all relevantinformation, including the difference in the discount that the customer would receive whenexercising the option or without exercising the option, and the likelihood that the option willbe exercised.

For the contract with a warranty, the Group analyses the nature of the warranty provided, ifthe warranty provides the customer with a distinct service in addition to the assurance thatthe product complies with agreed-upon specifications, the Group recognises for the promisedwarranty as a performance obligation. Otherwise, the Group accounts for the warranty inaccordance with the requirements of CAS No.13 – Contingencies.

The transaction price is the amount of consideration to which the Group expects to beentitled in exchange for transferring promised goods or services to a customer, excludingamounts collected on behalf of third parties. The Group recognises the transaction price onlyto the extent that it is highly probable that a significant reversal in the amount of cumulativerevenue recognised will not occur when the uncertainty associated with the variableconsideration is subsequently resolved. To determine the transaction price for contracts inwhich a customer promises consideration in a form other than cash, the Group measures thenon-cash consideration at fair value. If the Group cannot reasonably estimate the fair valueof the non-cash consideration, the Group measures the consideration indirectly by referenceto the stand-alone selling price of the goods or services promised to the customer inexchange for the consideration. Where the contract contains a significant financingcomponent, the Group recognises the transaction price at an amount that reflects the pricethat a customer would have paid for the promised goods or services if the customer had paidcash for those goods or services when (or as) they transfer to the customer. The differencebetween the amount of promised consideration and the cash selling price is amortised usingan effective interest method over the contract term. The Group does not adjust theconsideration for any effects of a significant financing component if it expects, at contractinception, that the period between when the Group transfers a promised good or service to acustomer and when the customer pays for that good or service will be one year or less.

The Group satisfies a performance obligation over time if one of the following criteria is met;or otherwise, a performance obligation is satisfied at a point in time:

- the customer simultaneously receives and consumes the benefits provided by the Group’sperformance as the Group performs;- the customer can control the asset created or enhanced during the Group’s performance;or- the Group’s performance does not create an asset with an alternative use to it and theGroup has an enforceable right to payment for performance completed to date.

For performance obligation satisfied over time, the Group recognises revenue over time bymeasuring the progress towards complete satisfaction of that performance obligation. Whenthe outcome of that performance obligation cannot be measured reasonably, but the Groupexpects to recover the costs incurred in satisfying the performance obligation, the Grouprecognises revenue only to the extent of the costs incurred until such time that it canreasonably measure the outcome of the performance obligation.

For performance obligation satisfied at a point in time, the Group recognises revenue at thepoint in time at which the customer obtains control of relevant goods or services. Todetermine whether a customer has obtained control of goods or services, the Groupconsiders the following indicators:

- the Group has a present right to payment for the goods or services;- the Group has transferred physical possession of the goods to the customer;- the Group has transferred the legal title of the goods or the significant risks and rewards ofownership of the goods to the customer; and- the customer has accepted the goods or services.

The Group determines whether it is a principal or an agent, depending on whether it obtainscontrol of the specified good or service before that good or service is transferred to acustomer. The Group is a principal if it controls the specified good or service before that goodor service is transferred to a customer, and recognises revenue in the gross amount ofconsideration to which it has received (or receivable). Otherwise, the Group is an agent, andrecognises revenue in the amount of any fee or commission to which it expects to be entitled.The fee or commission is the net amount of consideration that the Group retains after payingthe other party the consideration, or is the established amount or proportion.

For the sale of a product with a right of return, the Group recognises revenue when theGroup obtains control of that product, in the amount of consideration to which the Groupexpects to be entitled in exchange for the product transferred (i.e. excluding the amount ofwhich expected to be returned), and recognises a refund liability for the products expected tobe returned. Meanwhile, an asset is recognised in the amount of carrying amount of theproduct expected to be returned less any expected costs to recover those products (includingpotential decreases in the value of returned products), and carry forward to cost in theamount of carrying amount of the transferred products less the above costs. At the end ofeach reporting period, the Group updates its assessment of future sales return. If there is anychange, it is accounted for as a change in accounting estimate.

The Group determines whether the licence transfers to a customer either at a point in time orover time. If all of the following criteria are met, revenue is recognised for performanceobligations satisfied over time. Otherwise, revenue is recognised for performance obligationssatisfied at a point in time.

- the contract requires, or the customer reasonably expects, that the Group will undertakeactivities that significantly affect the intellectual property to which the customer has rights;- the rights granted by the licence directly expose the customer to any positive or negativeeffects of the Group’s activities; and- those activities do not result in the transfer of a good or a service to the customer as thoseactivities occur.

The Group recognises revenue for a sales-based or usage-based royalty promised inexchange for a licence of intellectual property only when (or as) the later of the followingevents occurs:

- the subsequent sale or usage occurs; and- the performance obligation has been satisfied (or partially satisfied)

For a change in the scope or price of a contract that is approved by the parties to thecontract, the Group accounts for the contract modification according to the followingsituations:

- The addition of promised goods or services are distinct and the price of the contractincreases by an amount of consideration reflects stand-alone selling prices of theadditional promised goods or services, the Group shall account for a contract modificationas a separate contract.

- If the above criteria are not met, and the remaining goods or services are distinct from thegoods or services transferred on the date of the contract modification, the Group accountsfor the contract modification as if it were a termination of the existing contract and thecreation of a new contract.

- If the above criteria are not met, and the remaining goods or services are not distinct fromthe goods or services transferred on the date of the contract modification, the Groupaccounts for the contract modification as if it were a part of the existing contract. Theeffect that the contract modification has on the revenue is recognised as an adjustment torevenue in the reporting period.

A contract asset is the Group’s right to consideration in exchange for goods or services that ithas transferred to a customer when that right is conditional on something other than thepassage of time. The Group recognises loss allowances for expected credit loss on contractassets (see Note III.9(6)). Accounts receivable is the Group’s right to consideration that isunconditional (only the passage of time is required). A contract liability is the Group’sobligation to transfer goods or services to a customer for which the Group has receivedconsideration (or an amount of consideration is due) from the customer.

The following is the description of accounting policies regarding revenue from the Group’sprincipal activities:

(1) Sale of goods

The sales contracts/orders signed between the Group and its customers usuallycontain various trading terms. Depending on the trading terms, customers obtaincontrol of the goods when the goods are delivered and received, or when they arereceived by the carrier. Revenue of sale of goods is recognised at that point in time.

For the transfer of goods with a right of return, revenue is recognised to the extent thatit is highly probable that a significant reversal in the amount of cumulative revenuerecognised will not occur. Therefore, the amount of revenue recognised is adjusted forthe amount expected to be returned, which are estimated based on the historical data.The Group recognises a refund liability based on the amount expected to be returned.An asset is initially measured by reference to the former carrying amount of the productexpected to be returned less any expected costs to recover those products (includingpotential decreases in the value to the Group of returned products). At each balancesheet date, the Group updates the measurement of the refund liability for changes inexpectations about the amount of funds. The above asset and liability are adjustedaccordingly.

(2) Rendering of services

The Group recognises the revenue from rendering of services within a certain period oftime according to the progress of the performance as the customer simultaneouslyreceives and consumes the benefits provided by the Group’s performance as theGroup performs. Otherwise, for performance obligation satisfied at a point in time, theGroup recognises revenue at the point in time at which the customer obtains control ofrelevant services.

24 Contract costs

Contract costs are either the incremental costs of obtaining a contract with a customer or thecosts to fulfil a contract with a customer.

Incremental costs of obtaining a contract are those costs that the Group incurs to obtain acontract with a customer that it would not have incurred if the contract had not beenobtained. The Group recognises as an asset the incremental costs of obtaining a contractwith a customer if it expects to recover those costs. Other costs of obtaining a contract areexpensed when incurred.

If the costs to fulfil a contract with a customer are not within the scope of inventories or otheraccounting standards, the Group recognises an asset from the costs incurred to fulfil acontract only if those costs meet all of the following criteria:

- the costs relate directly to an existing contract or to a specifically identifiable anticipatedcontract, including direct labour, direct materials, allocations of overheads (or similarcosts), costs that are explicitly chargeable to the customer and other costs that areincurred only because the Group entered into the contract- the costs generate or enhance resources of the Group that will be used in satisfying (or incontinuing to satisfy) performance obligations in the future; and- the costs are expected to be recovered.

Assets recognised for the incremental costs of obtaining a contract and assets recognised forthe costs to fulfil a contract (the “assets related to contract costs”) are amortised on asystematic basis that is consistent with the transfer to the customer of the goods or servicesto which the assets relate and recognised in profit or loss for the current period.

The Group recognises an impairment loss in profit or loss to the extent that the carryingamount of an asset related to contract costs exceeds:

- remaining amount of consideration that the Group expects to receive in exchange for thegoods or services to which the asset relates; less- the costs that relate directly to providing those goods or services that have not yet beenrecognised as expenses.

25 Employee benefits

(1) Short-term employee benefits

Employee wages or salaries, bonuses, social security contributions such as medicalinsurance, work injury insurance, maternity insurance and housing fund, measured at theamount incurred or accrued at the applicable benchmarks and rates, are recognised as aliability as the employee provides services, with a corresponding charge to profit or loss orincluded in the cost of assets where appropriate.

(2) Post-employment benefits – defined contribution plans

Pursuant to the relevant laws and regulations of the People’s Republic of China, the Groupparticipated in a defined contribution basic pension insurance plan and unemploymentinsurance plan in the social insurance system established and managed by governmentorganisations, and annuity plan established by the Group in compliance with the nationalpolicy of the corporation annuity. The Group makes contributions to basic pension andunemployment insurance plans based on the applicable benchmarks and rates stipulated bythe government. Annuity is accrued based on the gross salaries of the employees. Basicpension insurance contributions payable are recognised as a liability as the employeeprovides services, with a corresponding charge to profit or loss or included in the cost ofassets where appropriate.

(3) Post-employment benefits – defined benefit plans

During the reporting period, the Group did not have defined benefit plans.

(4) Termination benefits

When the Group terminates the employment with employees before the employmentcontracts expire, or provides compensation under an offer to encourage employees to acceptvoluntary redundancy, a provision is recognised with a corresponding expense in profit orloss at the earlier of the following dates:

- When the Group cannot unilaterally withdraw the offer of termination benefits because of

an employee termination plan or a curtailment proposal;- When the Group has a formal detailed restructuring plan involving the payment oftermination benefits and has raised a valid expectation in those affected that it will carryout the restructuring by starting to implement that plan or announcing its main features tothose affected by it.

26 Government grants

Government grants are non-reciprocal transfers of monetary or non-monetary assets fromthe government to the Group except for capital contributions from the government in thecapacity as an investor in the Group.

A government grant is recognised when there is reasonable assurance that the grant will bereceived and that the Group will comply with the conditions attaching to the grant.

If a government grant is in the form of a transfer of a monetary asset, it is measured at theamount received or receivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured at fair value.

Government grants related to assets are grants whose primary condition is that the Groupqualifying for them should purchase, construct or otherwise acquire long-term assets.Government grants related to income are grants other than those related to assets.

Those related to daily activities of the Company are included in other income or used to writeoff related cost based on the nature of economic businesses, or included in non-operatingincome and expense in respect of those not related to daily activities of the Company.

With respect to the government grants related to assets, if the Group first obtainsgovernment grants related to assets and then recognizes the long-term assets purchasedand constructed, deferred income is included in profit and loss based on a reasonable andsystematic approach by stages when related assets are initially depreciated or amortized; orthe 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 governmentgrants related to the assets after relevant long-term assets are put into use, deferred incomeis included in profit and loss based on a reasonable and systematic approach by stageswithin the remaining useful life of relevant assets, or the deferred income is written offagainst the carrying amount of relevant asset when the grants are obtained; the assets shallbe depreciated or amortized based on the carrying amount after being offset and theremaining useful life of relevant assets.

A grant that compensates the Group for expenses or losses to be incurred in the future isrecognised as deferred income, and included in current income or offset against relatedexpenses in the periods in which the expenses or losses are recognised. Or included incurrent income or offset against the related expenses directly.

In respect of the policy-based preferential loan interest subsidy obtained by the Group, if theinterest subsidy is appropriated to the lending bank which shall provide loans to the Group atthe policy-based preferential interest rate, the actual loan amount is used as the entry valueand relevant borrowing costs are calculated on the basis of the loan principal and thepreferential interest rate. If the interest subsidy is directly appropriated to the Group, relevantborrowing costs shall be offset by corresponding interest subsidy. If borrowing costs arecapitalized as part of the cost of the asset (see Note III. 15), the interest subsidy shall beused to offset relevant asset costs.

27 Income tax

Current tax and deferred tax are recognised in profit or loss except to the extent that theyrelate to a business combination or items recognised directly in equity (including othercomprehensive income).

Current tax is the expected tax payable calculated at the applicable tax rate on taxableincome for the year, plus any adjustment to tax payable in respect of previous years.

At the balance sheet date, current tax assets and liabilities are offset only if the Group has alegally enforceable right to set them off and also intends either to settle on a net basis or torealise the asset and settle the liability simultaneously.

Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporarydifferences respectively, being the differences between the carrying amounts of assets andliabilities for financial reporting purposes and their tax bases, which include the deductiblelosses and tax credits carried forward to subsequent periods. Deferred tax assets arerecognised to the extent that it is probable that future taxable profits will be available againstwhich deductible temporary differences can be utilised.

Deferred tax is not recognised for the temporary differences arising from the initialrecognition of assets or liabilities in a transaction that is not a business combination and thataffects neither accounting profit nor taxable profit (or deductible loss). Deferred tax is notrecognised for taxable temporary differences arising from the initial recognition of goodwill.

At the balance sheet date, deferred tax is measured based on the tax consequences thatwould follow from the expected manner of recovery or settlement of the carrying amounts ofthe assets and liabilities, using tax rates enacted at the balance sheet date that are expectedto be applied in the period when the asset is recovered or the liability is settled.

The carrying amount of a deferred tax asset is reviewed at each balance sheet date, and isreduced to the extent that it is no longer probable that the related tax benefits will be utilised.Such reduction is reversed to the extent that it becomes probable that sufficient taxableprofits will be available.

At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if all ofthe following conditions are met:

- the taxable entity has a legally enforceable right to offset current tax liabilities and currenttax assets;

- they relate to income taxes levied by the same tax authority on either:

- the same taxable entity; or- different taxable entities which intend either to settle the current tax liabilities andcurrent tax assets on a net basis, or to realise the assets and settle the liabilitiessimultaneously, in each future period in which significant amounts of deferred taxliabilities or deferred tax assets are expected to be settled or recovered.

28 Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. Acontract is, or contains, a lease if the contract conveys the right to control the use of anidentified asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, theGroup assesses whether:

- the contract involves the use of an identified asset. An identified asset may be specifiedexplicitly or implicitly specified in a contract and should be physically distinct, or capacityportion or other portion of an asset that is not physically distinct but it representssubstantially all of the capacity of the asset and thereby provides the customer with theright to obtain substantially all of the economic benefits from the use of the asset. If thesupplier has a substantive substitution right throughout the period of use, then the asset isnot identified;- the lessee has the right to obtain substantially all of the economic benefits from use of the

asset throughout the period of use;- the lessee has the right to direct the use of the asset.

For a contract that contains more separate lease components, the lessee and the lessorseparate lease components and account for each lease component as a lease separately.For a contract that contains lease and non-lease components, the lessee and the lessorseparate lease components from non-lease components. For a contract that contains leaseand non-lease components, the lessee allocates the consideration in the contract to eachlease component on the basis of the relative stand-alone price of the lease component andthe aggregate stand-alone price of the non-lease components. The lessor allocates theconsideration in the contract in accordance with the accounting policy in Note III.23.

(1) As a lessee

The Group recognises a right-of-use asset and a lease liability at the lease commencementdate. The right-of-use asset is initially measured at cost, which comprises the initial amountof the lease liability, any lease payments made at or before the commencement date (lessany lease incentives received), any initial direct costs incurred and an estimate of costs todismantle and remove the underlying asset or to restore the site on which it is located orrestore the underlying asset to the condition required by the terms and conditions of thelease.

The right-of-use asset is depreciated using the straight-line method. If the lessee isreasonably certain to exercise a purchase option by the end of the lease term, the right-of-use asset is depreciated over the remaining useful lives of the underlying asset. Otherwise,the right-of-use asset is depreciated from the commencement date to the earlier of the end ofthe useful life of the right-of-use asset or the end of the lease term. Impairment losses ofright-of-use assets are accounted for in accordance with the accounting policy described inNote III.19.

The lease liability is initially measured at the present value of the lease payments that are notpaid at the commencement date, discounted using the interest rate implicit in the lease or, ifthat rate cannot be readily determined, the Group’s incremental borrowing rate.

A constant periodic rate is used to calculate the interest on the lease liability in each periodduring the lease term with a corresponding charge to profit or loss or included in the cost ofassets where appropriate. Variable lease payments not included in the measurement of thelease liability is charged to profit or loss or included in the cost of assets where appropriateas incurred.

Under the following circumstances after the commencement date, the Group remeasureslease liabilities based on the present value of revised lease payments:

- there is a change in the amounts expected to be payable under a residual valueguarantee;- there is a change in future lease payments resulting from a change in an index or a rateused to determine those payments;- there is a change in the assessment of whether the Group will exercise a purchase,extension or termination option, or there is a change in the exercise of the extension ortermination option.

When the lease liability is remeasured, a corresponding adjustment is made to the carryingamount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of theright-of-use asset has been reduced to zero.

The Group has elected not to recognise right-of-use assets and lease liabilities for short-termleases that have a lease term of 12 months or less and leases of low-value assets. TheGroup recognises the lease payments associated with these leases in profit or loss or as thecost of the assets where appropriate using the straight-line method or other systematic basisover the lease term.

(2) As a lessor

The Group determines at lease inception whether each lease is a finance lease or anoperating lease. A lease is classified as a finance lease if it transfers substantially all therisks and rewards incidental to ownership of an underlying asset irrespective of whether thelegal title to the asset is eventually transferred. An operating lease is a lease other than afinance lease.

When the Group is a sub-lessor, it assesses the lease classification of a sub-lease withreference to the right-of-use asset arising from the head lease, not with reference to theunderlying asset. If a head lease is a short-term lease to which the Group applies practicalexpedient described above, then it classifies the sub-lease as an operating lease.

Under a finance lease, at the commencement date, the Group recognises the finance leasereceivable and derecognises the finance lease asset. The finance lease receivable is initiallymeasured at an amount equal to the net investment in the lease. The net investment in thelease is measured at the aggregate of the unguaranteed residual value and the presentvalue of the lease receivable that are not received at the commencement date, discountedusing the interest rate implicit in the lease.

The Group calculates and recognises interest income for each period of the lease termbased on a fixed periodic interest rate. The derecognition and impairment of the financelease receivable are recognised in accordance with the accounting policy in Note III.9.Variable lease payments not included in the measurement of net investment in the lease arerecognised as income as they are earned.

Lease receipts from operating leases is recognised as income using the straight-line methodor other systematic basis over the lease term. The initial direct costs incurred in respect ofthe operating lease are initially capitalised and subsequently amortised in profit or loss overthe lease term on the same basis as the lease income. Variable lease payments not includedin lease receipts are recognised as income as they are earned.

29 Assets held for sale

The Group classified a non-current asset or disposal group as held for sale when thecarrying amount of a non-current asset or disposal group will be recovered through a saletransaction rather than through continuing use,.

A disposal group refers to a group of assets to be disposed of, by sale or otherwise, togetheras a whole in a single transaction and liabilities directly associated with those assets that willbe transferred in the transaction.

A non-current asset or disposal group is classified as held for sale when all the followingcriteria are met:

- According to the customary practices of selling such asset or disposal group in similar

transactions, the non-current asset or disposal group must be available for immediate salein their present condition subject to terms that are usual and customary for sales of suchassets or disposal groups;- Its sale is highly probable, that is, the Group has made a resolution on a sale plan and has

obtained a firm purchase commitment. The sale is to be completed within one year.

Non-current assets or disposal groups held for sale are stated at the lower of carryingamount and fair value (see Note III.20) less costs to sell (except financial assets (see noteIII.9), deferred tax assets (see note III.27). Any excess of the carrying amount over the fairvalue (see Note III.20) less costs to sell is recognised as an impairment loss in profit or loss.

30 Hedge accounting

Hedge accounting is a method which recognises in profit or loss (or other comprehensiveincome) the gain or loss on the hedging instrument and the hedged item in the sameaccounting period(s) to represent the effect of risk management.

Hedged items are items that expose the Group to risks of changes in fair value or cash flowsand that are designated as being hedged and can be reliably measured. The Group’shedged items include a firm commitment that is settled with a fixed amount of foreigncurrency and that exposes the Group to foreign currency risk.

A hedging instrument is a designated financial instrument whose changes in fair value orcash flows are expected to offset changes in the fair value or cash flows of the hedged item.For a hedge of foreign currency risk, the foreign currency risk component of a non-derivativefinancial asset or non-derivative financial liability may also be designated as a hedginginstrument provided that it is not an investment in an equity instrument for which an entityhas elected to present changes in the fair value in other comprehensive income.

The Group assesses at the inception of a hedging relationship, and on an ongoing basis,whether the hedging relationship meets the hedge effectiveness requirements. A hedgingrelationship is regarded as having met the hedge effectiveness requirements if all of thefollowing conditions are satisfied:

- There is an economic relationship between the hedged item and the hedging instrument.- The effect of credit risk does not dominate the value changes that result from theeconomic relationship.- The hedge ratio of the hedging relationship is the same as that resulting from the quantityof the hedged item that the entity actually hedges and the quantity of the hedginginstrument that the entity actually uses to hedge that quantity of the hedged item.

When a hedging relationship no longer meets the hedge effectiveness requirements due tothe hedge ratio, but the risk management objective of the designated hedging relationshipremains unchanged, the Group rebalances the hedging relationship. Rebalancing refers tothe adjustments made to the designated quantities of the hedged item or the hedginginstrument of an already existing hedging relationship for the purpose of maintaining a hedgeratio that complies with the hedge effectiveness requirements.

The Group discontinues applying hedge accounting in any of the following circumstances:

- The hedging relationship no longer meets the risk management objective on the basis ofwhich it qualified for hedge accounting.- The hedging instrument expires or is sold, terminated or exercised.- There is no longer an economic relationship between the hedged item and the hedginginstrument or the effect of credit risk starts to dominate the value changes that result fromthat economic relationship.- The hedging relationship no longer meets other criteria for applying hedge accounting.

Cash flow hedges

A cash flow hedge is a hedge of the exposure to variability in cash flows. The portion of thegain or loss on a hedging instrument that is determined to be an effective hedge isrecognised in other comprehensive income as a cash flow hedge reserve. The amount of thecash flow hedge reserve is adjusted to the lower of the following (in absolute amounts):

- the cumulative gain or loss on the hedging instrument from inception of the hedge;- the cumulative change in present value of the expected future cash flows on the hedged

item from inception of the hedge.

The change in the amount of the cash flow hedge reserve is recognised in othercomprehensive income in each period.

The portion of the gain or loss on the hedging instrument that is determined to beineffectiveness is recognised in profit or loss.

If a hedged forecast transaction subsequently results in the recognition of a non-financialasset or non-financial liability, or a hedged forecast transaction for a non-financial asset ornon-financial liability becomes a firm commitment for which fair value hedge accounting isapplied, the Group removes that amount from the cash flow hedge reserve and includes it inthe initial cost or other carrying amount of the asset or liability.

For cash flow hedges other than those covered above, that amount is reclassified from thecash flow hedge reserve to profit or loss as a reclassification adjustment in the same periodor periods during which the hedged expected future cash flows affect profit or loss.

When the Group discontinues hedge accounting for a cash flow hedge, the amount of theaccumulated cash flow hedge reserve recognised in other comprehensive income isaccounted for as follows:

- If the hedged future cash flows are still expected to occur, that amount will remain in the

cash flow hedge reserve, and be accounted for in accordance with the above policy.- If the hedged future cash flows are no longer expected to occur, that amount isimmediately reclassified from the cash flow hedge reserve to profit or loss as areclassification adjustment.

31 Profit distributions

Dividends or profit distributions proposed in the profit appropriation plan, which will beapproved after the balance sheet date, are not recognised as a liability at the balance sheetdate but are disclosed in the notes separately.

32 Related parties

If a party has the power to control, jointly control or exercise significant influence overanother party, or vice versa, or where two or more parties are subject to common control orjoint control from another party, they are considered to be related parties. Related partiesmay be individuals or enterprises. Enterprises with which the Company is under commoncontrol only from the State and that have no other related party relationships are notregarded as related parties.

In addition to the related parties stated above, the Company determines related partiesbased on the disclosure requirements of Administrative Procedures on the InformationDisclosures of Listed Companies issued by the CSRC.

33 Segment reporting

Reportable segments are identified based on operating segments which are determinedbased on the structure of the Group’s internal organisation, management requirements andinternal reporting system after taking the materiality principle into account. Two or moreoperating segments may be aggregated into a single operating segment if the segmentshave the similar economic characteristics and are same or similar in respect of the nature ofeach segment’s products and services, the nature of production processes, the types orclasses of customers for the products and services, the methods used to distribute theproducts or provide the services, and the nature of the regulatory environment.

Inter-segment revenues are measured on the basis of the actual transaction prices for suchtransactions for segment reporting. Segment accounting policies are consistent with those forthe consolidated financial statements.

34 Significant accounting estimates and judgements

The preparation of the financial statements requires management to make estimates andassumptions that affect the application of accounting policies and the reported amounts ofassets, liabilities, income and expenses. Actual results may differ from these estimates.Estimates as well as underlying assumptions and uncertainties involved are reviewed on anongoing basis. Revisions to accounting estimates are recognised in the period in which theestimate is revised and in any future periods affected.

Except for accounting estimates relating to depreciation and amortisation of assets such asfixed assets and intangible assets (see Notes III.13 and 16) and provision for impairment ofvarious types of assets (see Notes V.4, 6, 7, 8, 10, 14, 15, 16 and 17). Other significantaccounting estimates are as follows:

(i) Note V.19: Recognition of deferred tax assets;(ii) Note V.30: Warranty provisions;(iii) Note IX. – Fair value measurements of financial instruments; and(iv) Note XI: Share-based payments.

Significant judgements made by the Group in the application of accounting policies are asfollows:

(i) Note VII. 1(1) –Disclosure of significant judgements and assumptions of control and

exercising significant influence over other entities.

35. Changes in significant accounting policies

(1) Description of and reasons for changes in accounting policies

In 2022, the Group has adopted the revised accounting requirements and guidance underCAS newly issued by the Ministry of Finance (“MOF”) as follows:

- “Accounting for selling outputs that are produced before fixed assets are available forintended use or produced in the course of research and development” (“accounting forsales before intended use") in CAS Bulletin No.15 (Caikuai [2021] No.35);- “Determining whether a contract is onerous” in CAS Bulletin No.15;- Notice of Application Issues for Accounting Treatment of COVID-19-Related Rent

Concessions (Caikuai [2022] No.13);

- “Accounting for the income tax consequences of dividends on financial instrumentsclassified as equity instruments by the issuer” in CAS Bulletin No.16 (Caikuai [2022]No.31); and- “Accounting for the modification of a share-based payment transaction that changes theclassification of the transaction from cash-settled to equity-settled” in CAS Bulletin No.16

(a) Main effects of adopting the above requirements and guidance

(i) Accounting for sales before intended use

In accordance with CAS Bulletin No.15, the Group accounts for the proceeds andrelated cost arising from the sale of products or by-products produced before thefixed asset is available for its intended use and in the course of research anddevelopment (“sales before intended use”) in accordance with CAS 14 – Revenueand CAS 1 – Inventories respectively, and recognises them in profit or loss for thecurrent period. The net amount of proceeds from such sales before intended useless related costs is no longer offset against the cost of the fixed asset or researchand development expenditure.

These provisions are effective from 1 January 2022. The Group has maderetrospective adjustments in accordance with these provisions for sales beforeintended use occurring between 1 January 2021 and the date of initialimplementation.

The adoption of Bulletin No.15 does not have a significant effect on the financialposition and financial performance of the Company.

(ii) “Determining whether a contract is onerous”

In accordance with CAS Bulletin No.15, when determining whether a contract isonerous, the Group includes in its estimated cost of fulfilling the contract theamount of the incremental cost of fulfilling the contract and the allocation of othercosts directly attributable to fulfilling the contract.

The adoption of Bulletin No.15 does not have a significant effect on the financialposition and financial performance of the Group and the Company.

(iii) Caikuai [2022] No.13

The Accounting Treatment of COVID-19-Related Rent Concessions (Caikuai[2020] No.10) provides a practical expedient under certain conditions for rentconcessions occurring as a direct consequence of the COVID-19 pandemic.According to the provisions of Caikuai [2022] No.13, the practical expedient ofCaikuai [2020] No.10 can continue to apply to eligible reduction in lease paymentsthat are originally due after 30 June 2022.

The adoption of the above regulation does not have a significant effect on thefinancial position and financial performance of the Group and the Company.

(iv) Accounting for the income tax consequences of dividends on financial instruments

classified as equity instruments by the issuer

In accordance with CAS Bulletin No.16, for financial instruments classified asequity instruments (such as perpetual bonds classified as equity instruments, etc.)in accordance with the CAS No. 37 - Presentation and Disclosure of FinancialInstruments and other requirements, if the relevant dividend payments aredeductible for income tax purposes according to the relevant provisions of taxpolicies, the Group (as the issuer) shall recognise the income tax consequences ofdividends when it recognises a liability to pay a dividend. The Group shallrecognise the income tax consequences of dividends in (1) profit or loss, if thosepayments are distributions of profits generated from transactions or eventspreviously recognised in profits or loss; or (2) the items of owner's equity, if thosepayments are distributions of profits generated from the transactions or eventspreviously recognised in the items of owner's equity.

The adoption of Bulletin No.16 does not have a significant effect on the financialposition and financial performance of the Group and the Company.

(v) Accounting for the modification of a share-based payment transaction that

changes the classification of the transaction from cash-settled to equity-settled

In accordance with CAS Bulletin No.16, if the terms and conditions of a cash-settled share-based payment transaction are modified such that it becomes anequity-settled share-based payment transaction, the Group shall, at themodification date:

? measure the equity-settled share-based payment at its fair value as at themodification date and recognise in equity that fair value to the extent that theservices have been rendered up to that date;

? derecognise the liability for the cash-settled share-based payment as at themodification date; and

? immediately recognise in profit or loss the difference between the carryingamount of the liability and the amount recognised in equity.

If the modification extends or shortens the vesting period, the Group applies themodified vesting period to the above accounting treatment.

The adoption of Bulletin No.16 does not have a significant effect on the financialposition and financial performance of the Group and the Company.

(b) The effects on the financial statements

The effects on each of the line items in the consolidated balance sheet as at 31December 2022 are as follows:

	Increase/(decrease) in the line items for the year as a result of applying new accounting policies
	The Group
?	?
Assets:	?
Inventories	125,164,818
Fixed assets	370,255,620
Construction in progress	(122,638,939)
?	?
Shareholders’ equity:	?
Retained earnings	98,225,752
Capital reserve	112,771,892
Non-controlling interests	161,783,855

The effects on each of the line items in the consolidated income statement for the yearended 31 December 2022 are as follows:

	Increase/(decrease) in the line items for the year as a result of applying new accounting policies
	The Group
?	?
Operating income	1,407,856,936
Operating costs	1,514,976,278
Research and development expenses	25,722,208
Losses before income tax	(132,841,550)
Net loss for the year	(132,841,550)
Attributable to: Shareholders of the Company	(67,167,595)
Non-controlling interests	(65,673,955)

The effects on each of the line items in the consolidated cash flow statement for the yearended 31 December 2022 are as follows:

	Increase/(decrease) in the line items for the year as a result of applying new accounting policies
	The Group
?	?
Proceeds from sale of goods and rendering of services	1,558,099,468
Payment for goods and services	1,615,780,128
Payment to and for employees	119,971,211
Payment for acquisition of fixed assets, intangible assets and other long-term assets	(177,651,871)

The effects of these changes in accounting policies on the Group’s net profit for the yearended 31 December 2021, and opening and closing balances of shareholders’ equity asat 1 January and 31 December 2021 are summarised as follows:

	The Group
	2021 Net profit	?	2021 Closing balance of shareholders’ equity	?	2021 Opening balance of shareholders’ equity
?	?	?	?	?	?
Net profit and shareholders’ equity before adjustments	30,431,668,974	?	216,873,143,467	?	173,397,734,714
The effects of sales before intended use	464,735,881	?	505,623,049	?	40,887,168
Net profit and shareholders’ equity after adjustments	30,896,404,855	?	217,378,766,516	?	173,438,621,882

The effects on each of the line items in the consolidated balance sheet as at 31December 2021 are as follows:

	The Group
	Before adjustments	?	The amounts of adjustments	?	After adjustments
?	?	?	?	?	?
Assets:	?	?	?	?	?
Inventories	27,724,806,939	?	80,354,497	?	27,805,161,436
Fixed assets	226,695,489,704	?	445,877,180	?	227,141,366,884
Construction in progress	32,120,320,507	?	(20,608,628)	?	32,099,711,879
?	?	?	?	?	?
Shareholders’ equity:	?	?	?	?	?
Retained earnings	36,941,121,452	?	165,393,347	?	37,106,514,799
Capital reserve	53,804,309,393	?	113,299,701	?	53,917,609,094
Non-controlling interests	73,947,595,568	?	226,930,001	?	74,174,525,569

?The effects on each of the line items in the consolidated income statement for the yearended 31 December 2021 are as follows:

	The Group
	Before adjustments	?	The amounts of adjustments	?	After adjustments
?	?		?		?
Operating income	219,309,799,505		1,725,918,507		221,035,718,012
Operating costs	155,985,225,295		1,313,600,486		157,298,825,781
Research and development expenses	10,668,844,187		(52,417,860)		10,616,426,327
Profit before income tax	34,619,640,378		464,735,881		35,084,376,259
Net profit for the year	30,431,668,974		464,735,881		30,896,404,855
Attributable to: Shareholders of the Company	25,830,935,500		129,816,146		25,960,751,646
Non-controlling interests	4,600,733,474		334,919,735		4,935,653,209

?The effects on each of the line items in the consolidated cash flow statement for the yearended 31 December 2021 are as follows:

	The Group
	Before adjustments	?	The amounts of adjustments	?	After adjustments
?	?		?		?
Proceeds from sale of goods and rendering of services	219,962,740,822		1,877,357,384		221,840,098,206
Payment for goods and services	145,205,421,170		1,437,251,941		146,642,673,111
Payment to and for employees	17,896,262,253		11,973,211		17,908,235,464
Payment for acquisition of fixed assets, intangible assets and other long-term assets	35,669,946,105		428,132,232		36,098,078,337

?(d) After retrospective adjustments of the above accounting policy changes, the

consolidated balance sheet as at 1 January 2021 are as follows:

?	The Group
Assets	?
?	?
Current assets:	?
Cash at bank and on hand	73,694,296,095
Financial assets held for trading	4,367,201,833
Bills receivable	215,994,373
Accounts receivable	22,969,140,355
Prepayments	1,119,595,984
Other receivables	658,114,833
Inventories	17,919,205,338
Contract assets	49,897,395
Assets held for sale	186,892,645
Other current assets	7,848,869,252
?	?
Total current assets	129,029,208,103
?	?
Non-current assets:	?
Long-term equity investments	3,693,170,224
Investments in other equity instruments	533,645,423
Investment properties	1,196,168,511
Fixed assets	224,866,586,069
Construction in progress	42,572,986,272
Intangible assets	11,875,926,448
Goodwill	1,400,357,242
Long-term deferred expenses	299,634,100
Deferred tax assets	205,041,088
Other non-current assets	8,624,970,019
?	?
Total non-current assets	295,268,485,396
?	?
?	?
Total assets	424,297,693,499
?	?

?	The Group
Liabilities and shareholders’ equity	?
?	?
Current liabilities:	?
Short-term loans	8,599,569,471
Bills payable	1,231,533,895
Accounts payable	27,164,171,682
Advance payments received	124,040,749
Contract liabilities	3,440,720,535
Employee benefits payable	3,758,623,797
Taxes payable	1,077,686,869
Other payables	32,867,709,024
Non-current liabilities due within one year	24,500,550,121
Other current liabilities	2,194,716,852
?	?
Total current liabilities	104,959,322,995
?	?
Non-current liabilities:	?
Long-term loans	132,452,767,135
Debentures payable	398,971,739
Long-term payables	2,114,175,683
Deferred income	4,246,231,468
Deferred tax liabilities	1,427,601,154
Other non-current liabilities	5,260,001,443
?	?
Total non-current liabilities	145,899,748,622
?
?	?
Total liabilities	250,859,071,617
?
?	?
Shareholders’ equity:	?
Share capital	34,798,398,763
Other equity instruments	14,146,997,427
Capital reserve	37,435,655,934
Less: Treasury shares	1,036,298,508
Other comprehensive income	(22,198,072)
Surplus reserve	2,444,416,669
Retained earnings	15,545,371,823
?	?
Total equity attributable to shareholders of the Company	103,312,344,036
?	?
Non-controlling interests	70,126,277,846
?	?
Total shareholders’ equity	173,438,621,882
?
?	?
Total liabilities and shareholders’ equity	424,297,693,499
?	?

IV. Taxation

1 Main types of taxes and corresponding tax rates

Tax type	?	Tax basis	?	Tax rate
?	?	?	?	?
Value-added tax (VAT)	?	Output VAT is calculated on product sales and taxable services revenue. The basis for VAT payable is to deduct input VAT from the output VAT for the period	?	6%, 9%, 13%
City maintenance and construction tax	?	Based on VAT paid, VAT exemption and offset for the period	?	7%, 5%
Education surcharges and local education surcharges	?	Based on VAT paid, VAT exemption and offset for the period	?	3%, 2%
Corporate income tax	?	Based on taxable profits	?	15% - 30%

???

2 Corporate income tax

The income tax rate applicable to the Company for the year is 15% (2021: 15%).

Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatment No.28, corporate income tax for key advanced and high-tech enterprises supported by the Stateis applicable to a preferential tax rate of 15%.

On 2 December 2020, the Company renewed the High-tech Enterprise Certificate No.GR202011004594, which was entitled jointly by Beijing Municipal Science and TechnologyCommission, Beijing Municipal Financial Bureau, Beijing Municipal Tax Service, StateTaxation Administration. The Company is subject to corporate income tax rate of 15% sincethe date of certification with the valid period of three years.

The income tax rate applicable to other subsidiaries of the Group is 25% other than thefollowing subsidiaries and the overseas subsidiaries which subject to the local income taxrate.

The subsidiaries that are entitled to preferential tax treatments are as follows:

Company name	Preferential rate	?	Reason
?	?	?	?
Beijing BOE Optoelectronics Technology Co., Ltd. (BOE OT)	15%	?	High-tech Enterprise
Chengdu BOE Optoelectronics Technology Co., Ltd. (Chengdu Optoelectronics)	15%	?	High-tech Enterprise
Hefei BOE Optoelectronics Technology Co., Ltd. (Hefei BOE)	15%	?	High-tech Enterprise
Beijing BOE Display Technology Co., Ltd. (BOE Display)	15%	?	High-tech Enterprise
Hefei Xinsheng Optoelectronics Technology Co., Ltd. (Hefei Xinsheng)	15%	?	High-tech Enterprise
Ordos Yuansheng Optoelectronics Co., Ltd. (Yuansheng Optoelectronics)	15%	?	High-tech Enterprise
Chongqing BOE Optoelectronics Co., Ltd. (Chongqing BOE)	15%	?	Encouraged enterprise in Western Regions
BOE (Hebei) Mobile Technology Co., Ltd. (BOE Hebei)	15%	?	High-tech Enterprise
BOE Optical Science and technology Co., Ltd (Optical Technology)	15%	?	High-tech Enterprise
Beijing BOE CHATANI Electronics Co., Ltd. (Beijing CHATANI)	15%	?	High-tech Enterprise
Hefei BOE Display Lighting Co., Ltd. (Hefei Display Lighting)	15%	?	High-tech Enterprise
Chongqing BOE Display Lighting Co., Ltd. (Chongqing Display Lighting)	15%	?	Encouraged enterprise in Western Regions
Beijing BOE Vacuum Electronics Co., Ltd. (Vacuum Electronics)	15%	?	High-tech Enterprise
Beijing BOE Vacuum Technology Co., Ltd. (Vacuum Technology)	15%	?	High-tech Enterprise
Beijing BOE Energy Technology Co., Ltd. (BOE Energy)	15%	?	High-tech Enterprise
Fuzhou BOE Optoelectronics Technology Co., Ltd. (Fuzhou BOE)	15%	?	High-tech Enterprise
Hefei BOE Display Technology Co., Ltd. (Hefei Technology)	15%	?	High-tech Enterprise
Mianyang BOE Optoelectronics Technology Co., Ltd. (Mianyang BOE)	15%	?	High-tech Enterprise
BOE Wisdom IOT Technology Co., Ltd. (Wisdom IOT)	15%	?	High-tech Enterprise
K-Tronics (Suzhou) Technology Co., Ltd. (Suzhou K-Tronics)	15%	?	High-tech Enterprise
Beijing BOE Sensing Technology Co., Ltd. (Sensing Technology)	15%	?	High-tech Enterprise
Chongqing BOE Smart Electronic System Co., Ltd. (Chongqing Smart Electronic)	15%	?	Encouraged enterprise in Western Regions
Beijing BOE Health Technology Co., Ltd. (Health Technology)	15%	?	High-tech Enterprise
Chongqing BOE Electronic Technology Co., Ltd. (Chongqing Electronic Technology)	15%	?	Encouraged enterprise in Western Regions
Wuhan BOE Optoelectronics Technology Co., Ltd. (Wuhan BOE)	15%	?	High-tech Enterprise
Nanjing BOE Display Technology Co., Ltd. (Nanjing Technology)	15%	?	High-tech Enterprise
Chengdu BOE Display Sci-tech Co., Ltd.. (Chengdu Display Sci-tech)	15%	?	High-tech Enterprise
BOE Regenerative Medical Technology Co., Ltd. (Regenerative Medical)	15%	?	High-tech Enterprise
Beijing Zhongxiangying Technology Co., Ltd. (Beijing Zhongxiangying)	15%	?	High-tech Enterprise
Yunnan Invensight Optoelectronics Technology Co., Ltd. (Yunnan Invensight)	15%	?	High-tech Enterprise
BOE Mled Technology Co., Ltd. (Mled Technology)	15%	?	High-tech Enterprise
Hefei BOE Semiconductor Co., Ltd. (Hefei Semiconductor)	15%	?	High-tech Enterprise

????

V. Notes to the consolidated financial statements

1 Cash at bank and on hand

?	2022					?	2021
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
Cash on hand	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	796,306	?	?	?	?	?	336,429
USD	1,773	?	6.9646	?	12,348	?	1,480	?	6.3757	?	9,438
HKD	35,650	?	0.8933	?	31,846	?	35,673	?	0.8176	?	29,166
JPY	106,508	?	0.0524	?	5,581	?	528,014	?	0.0554	?	29,252
KRW	70,909	?	0.0055	?	390	?	70,185	?	0.0054	?	379
Other foreign currencies	?	?	?	?	49,796	?	?	?	?	?	47,311
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	896,267	?	?	?	?	?	451,975
?	?	?	?	?	?	?	?	?	?	?	?
Bank deposits	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	43,646,054,088	?	?	?	?	?	51,889,193,811
USD	2,681,806,253	?	6.9646	?	18,677,707,830	?	3,615,879,387	?	6.3757	?	23,053,762,209
HKD	364,050,751	?	0.8933	?	325,206,536	?	9,520,528	?	0.8176	?	7,783,984
JPY	10,556,434,427	?	0.0524	?	553,157,164	?	13,848,652,635	?	0.0554	?	767,215,356
KRW	578,139,636	?	0.0055	?	3,179,768	?	1,094,268,704	?	0.0054	?	5,909,051
EUR	200,208,832	?	7.4229	?	1,486,130,139	?	135,902,777	?	7.2197	?	981,177,279
Other foreign currencies	?	?	?	?	78,007,216	?	?	?	?	?	55,392,165
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	64,769,442,741	?	?	?	?	?	76,760,433,855
?	?	?	?	?	?	?	?	?	?	?	?
Other monetary funds	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	3,914,979,538	?	?	?	?	?	3,857,498,365
USD	13,176,444	?	6.9646	?	91,768,662	?	49,772,132	?	6.3757	?	317,332,183
HKD	438,830	?	0.8933	?	392,007	?	7	?	0.8176	?	6
JPY	435,651,794	?	0.0524	?	22,828,154	?	922,720,289	?	0.0554	?	51,118,704
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	4,029,968,361	?	?	?	?	?	4,225,949,258
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	68,800,307,369	?	?	?	?	?	80,986,835,088

????

Including: Total overseas deposits were equivalent to RMB 5,780,461,058 (2021: RMB7,197,634,319).

As at 31 December 2022, other monetary funds included deposits with securities companiesby the Group amounting to RMB 2,609,817, used as refundable deposits for stockrepurchase and payment for settlement with third party platform, which can be withdrew ondemand. The rest was restricted monetary funds, of which, RMB 164,299,257 was pledgedfor issuance of bills payable, and an equivalent to RMB 3,863,059,287 was mainly depositsin commercial banks as security.

As at 31 December 2021, other monetary funds included deposits with securities companiesby the Group amounting to RMB 73,244,093, used as refundable deposits for stockrepurchase and payment for settlement with third party platform, which can be withdrew ondemand. The rest was restricted monetary funds, of which, RMB 91,976,204 was pledged forissuance of bills payable, and an equivalent to RMB 4,060,728,961 was mainly deposits incommercial banks as security.

2 Financial assets held for trading

Item	31 December 2022	?	31 December 2021
?	?	?	?
Financial assets at fair value through profit or loss	?	?	?
- Structured deposit and wealth management products	16,931,468,153	?	10,028,172,853
- Investment in equity instruments	256,525,783	?	-
?	?	?	?
Total	17,187,993,936	?	10,028,172,853

????

3 Bills receivable

(1) Classification of bills receivable

Item	?	31 December 2022	?	31 December 2021
?	?	?	?	?
Bank acceptance bills	?	211,292,061	?	217,734,298
Commercial acceptance bills	?	500,000	?	-
?	?	?	?	?
Total	?	211,792,061	?	217,734,298

????

All of the above bills are due within one year.

(2) The pledged bills receivable of the Group at the end of the year

As at 31 December 2022, the Group does not have any pledged bills receivable (2021: RMB8,441,900).

(3) Outstanding endorsed or discounted bills that have not matured at the end of the year

Item	?		?
?	?	Amount derecognised as at 31 December 2022	?	Amount not derecognised as at 31 December 2022
?	?	?	?	?
Bank acceptance bills	?	289,638,315	?	28,239,380

????

For the year ended 31 December 2022, there was no amount transferred to accountsreceivable from bills receivable due to non-performance of the issuers of the Group (2021:

Nil).

4 Accounts receivable

(1) The Group’s accounts receivable by customer type:

Item	?	31 December 2022	?	31 December 2021
?	?	?	?	?
Amounts due from related parties	?	1,070,848,317	?	88,954,909
Amounts due from other customers	?	27,252,679,049	?	35,496,227,051
?	?	?	?	?
Sub-total	?	28,323,527,366	?	35,585,181,960
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	119,879,797	?	81,767,140
?	?	?	?	?
Total	?	28,203,647,569	?	35,503,414,820

????

(2) The Group’s accounts receivable by currency type:

?	2022					?	2021
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	12,806,183,088	?	?	?	?	?	12,064,153,278
USD	2,139,614,722	?	6.9646	?	14,901,560,693	?	3,551,733,364	?	6.3757	?	22,644,786,409
JPY	5,046,551	?	0.0524	?	264,439	?	1,985,544	?	0.0554	?	109,999
Other foreign currencies	?	?	?	?	615,519,146	?	?	?	?	?	876,132,274
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	28,323,527,366	?	?	?	?	?	35,585,181,960
?	?	?	?	?	?	?	?	?	?	?	?
Less: Provision for bad and doubtful debts	?	?	?	?	119,879,797	?	?	?	?	?	81,767,140
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	28,203,647,569	?	?	?	?	?	35,503,414,820

????

(3) The ageing analysis of accounts receivable is as follows:

?	?	31 December 2022	?	31 December 2021
?	?	?	?	?
Within 1 year (inclusive)	?	27,791,874,623	?	35,052,439,412
Over 1 year but within 2 years (inclusive)	?	232,130,123	?	190,180,631
Over 2 years but within 3 years (inclusive)	?	151,304,998	?	181,687,107
Over 3 years	?	148,217,622	?	160,874,810
?	?	?	?	?
Sub-total	?	28,323,527,366	?	35,585,181,960
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	119,879,797	?	81,767,140
?	?	?	?	?
Total	?	28,203,647,569	?	35,503,414,820

????

The ageing is counted starting from the date when accounts receivable are recognised.

(4) Accounts receivable by provisioning method

?	31 December 2022
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	62,016,470	?	0%	?	59,921,373	?	97%	?	2,095,097
- Customers with low credit risk	1,359,564,251	?	5%	?	-	?	0%	?	1,359,564,251
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	26,901,946,645	?	95%	?	59,958,424	?	0%	?	26,841,988,221
?	?	?	?	?	?	?	?	?	?
Total	28,323,527,366	?	100%	?	119,879,797	?	0%	?	28,203,647,569

????

?	31 December 2021
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	66,060,901	?	0%	?	46,406,137	?	70%	?	19,654,764
- Customers with low credit risk	1,209,167,604	?	4%	?	-	?	0%	?	1,209,167,604
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	34,309,953,455	?	96%	?	35,361,003	?	0%	?	34,274,592,452
?	?	?	?	?	?	?	?	?	?
Total	35,585,181,960	?	100%	?	81,767,140	?	0%	?	35,503,414,820

???

(a) Criteria for collective assessment in 2022 and details:

Customer group	?	Basis
?	?	?
Customers with high credit risk	?	With special matters, litigations or the deterioration of customers’ credit status
Customers with low credit risk	?	Banks, insurance companies, large state-owned enterprises and public institutions
Customers with moderate credit risk	?	Customers not included in Groups above

(b) Assessment of ECLs on accounts receivable in 2022:

At all times the Group measures the impairment loss for accounts receivable at anamount equal to lifetime ECLs, and the ECLs are based on the number of overduedays and the expected loss rate. According to the Group’s historical experience,different loss models are applicable to different customer groups.

(5) Movements of provisions for bad and doubtful debts:

?	31 December 2022	?	31 December 2021
?	?	?	?
Balance at the beginning of the year	81,767,140	?	57,863,022
Charge during the year	77,823,874	?	48,438,509
Recoveries during the year	(27,926,578)	?	(20,188,349)
Written-off during the year	(14,534,442)	?	(3,474,488)
Translation differences	2,749,803	?	(871,554)
?	?	?	?
Balance at the end of the year	119,879,797	?	81,767,140

????

(6) Five largest accounts receivable by debtor at the end of the year

The total of five largest accounts receivable of the Group at the end of the year was RMB12,252,460,319, representing 43% of the total accounts receivable, and no provision wasmade for bad and doubtful debts after assessment.

5 Prepayments

(1) The Group’s prepayments by category:

?	?	31 December 2022	?	31 December 2021
?	?	?	?	?
Prepayment for inventory	?	261,349,159	?	648,790,765
Prepayment for electricity, water, gas and power	?	234,247,912	?	290,002,465
Others	?	94,167,609	?	174,086,777
?	?	?	?	?
Total	?	589,764,680	?	1,112,880,007

????

(2) The ageing analysis of prepayments is as follows:

?	31 December 2022			?	31 December 2021
Ageing	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)
?	?	?	?	?	?	?	?
Within 1 year (inclusive)	471,778,052	?	80%	?	1,088,149,020	?	98%
Over 1 year but within 2 years (inclusive)	112,700,267	?	19%	?	9,828,654	?	1%
Over 2 years but within 3 years (inclusive)	2,959,783	?	1%	?	2,531,759	?	0%
Over 3 years	2,326,578	?	0%	?	12,370,574	?	1%
?	?	?	?	?	?	?	?
Total	589,764,680	?	100%	?	1,112,880,007	?	100%

????

The ageing is counted starting from the date when prepayments are recognised.

The total of five largest prepayments of the Group at the end of the year is RMB256,769,053, representing 44% of the total prepayments.

6 Other receivables

?	Note	31 December 2022	?	31 December 2021
?	?	?	?	?
Dividends receivable	?	-	?	2,414,503
Others	(1)	975,809,236	?	1,920,413,875
?	?	?	?	?
Total	?	975,809,236	?	1,922,828,378

????

(1) Others

(a) The Group’s other receivables by customer type:

Customer type	?	31 December 2022	?	31 December 2021
?	?	?	?	?
Amounts due from related parties	?	16,588,534	?	1,901,777
Amounts due from other customers	?	969,833,087	?	1,927,555,914
?	?	?	?	?
Sub-total	?	986,421,621	?	1,929,457,691
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	10,612,385	?	9,043,816
?	?	?	?	?
Total	?	975,809,236	?	1,920,413,875

????

(b) The Group’s other receivables by currency type:

?	31 December 2022					?	31 December 2021
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	480,934,242	?	?	?	?	?	808,428,477
USD	69,194,294	?	6.9646	?	481,910,580	?	170,390,641	?	6.3757	?	1,086,359,610
JPY	316,069	?	0.0524	?	16,562	?	-	?	-	?	-
Other foreign currencies	?	?	?	?	23,560,237	?	?	?	?	?	34,669,604
?	?	?	?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	986,421,621	?	?	?	?	?	1,929,457,691
?	?	?	?	?	?	?	?	?	?	?	?
Less: Provision for bad and doubtful debts	?	?	?	?	10,612,385	?	?	?	?	?	9,043,816
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	975,809,236	?	?	?	?	?	1,920,413,875

????

?	?	31 December 2022	?	31 December 2021
?	?	?	?	?
Within 1 year (inclusive)	?	367,646,687	?	1,637,506,264
Over 1 year but within 2 years (inclusive)	?	362,777,830	?	21,232,566
Over 2 years but within 3 years (inclusive)	?	14,948,621	?	24,183,841
Over 3 years	?	241,048,483	?	246,535,020
?	?	?	?	?
Sub-total	?	986,421,621	?	1,929,457,691
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	10,612,385	?	9,043,816
?	?	?	?	?
Total	?	975,809,236	?	1,920,413,875

????

The ageing is counted starting from the date when other receivables are recognised.

(d) Other receivables by provisioning method

?	31 December 2022
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	10,612,385	?	1%	?	10,612,385	?	100%	?	-
?	?	?	?	?	?	?	?	?	?
Collective assessment	975,809,236	?	99%	?	-	?	0%	?	975,809,236
?	?	?	?	?	?	?	?	?	?
Total	986,421,621	?	100%	?	10,612,385	?	1%	?	975,809,236

????

?	31 December 2021
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	9,043,816	?	0%	?	9,043,816	?	100%	?	-
?	?	?	?	?	?	?	?	?	?
Collective assessment	1,920,413,875	?	100%	?	-	?	0%	?	1,920,413,875
?	?	?	?	?	?	?	?	?	?
Total	1,929,457,691	?	100%	?	9,043,816	?	0%	?	1,920,413,875

???

(e) Movements of provisions for bad and doubtful debts

?	?	31 December 2022	?	31 December 2021
?	?	?	?	?
Balance at the beginning of the year	?	9,043,816	?	9,044,012
Charge during the year	?	1,679,930	?	275,661
Recoveries during the year	?	-	?	(115,952)
Written-off during the year	?	(111,361)	?	(159,905)
?	?	?	?	?
Balance at the end of the year	?	10,612,385	?	9,043,816

????

(f) The Group’s other receivables categorised by nature

Nature	?	31 December 2022	?	31 December 2021
?	?	?	?	?
VAT refunds and export tax rebate	?	512,851	?	253,311
Amounts due from equity transfer	?	200,000,000	?	200,000,000
Surety and deposits	Note	598,972,862	?	1,518,208,550
Others	?	186,935,908	?	210,995,830
?	?	?	?	?
Sub-total	?	986,421,621	?	1,929,457,691
?	?	?	?	?
Less: Provision for bad and doubtful debts	?	10,612,385	?	9,043,816
?	?	?	?	?
Total	?	975,809,236	?	1,920,413,875

????

Note: As at 31 December 2022, an equivalent to RMB 436,628,186 (2021: RMB1,056,493,338) of the surety and deposits mainly represented production capacitysurety paid by the Group to suppliers.

(g) Five largest other receivables by debtor at the end of the year

The total of five largest other receivables of the Group at the end of the year was RMB656,304,152, most of which were surety and amounts due from equity transfer. Noprovision is made for bad and doubtful debts after assessment.

7 Inventories

(1) The Group’s inventories by category:

?	31 December 2022					?	31 December 2021
?	Book value	?	Provision for impairment of inventories/Provision for impairment of costs to fulfil a contract with a customer	?	Carrying amount	?	Book value	?	Provision for impairment of inventories/Provision for impairment of costs to fulfil a contract with a customer	?	Carrying amount
?	?	?	?	?	?	?	?	?	?	?	?
Raw materials	11,178,326,632	?	2,890,923,826	?	8,287,402,806	?	12,029,879,462	?	2,083,190,076	?	9,946,689,386
Work in progress	4,879,573,518	?	1,316,529,598	?	3,563,043,920	?	4,080,209,516	?	732,973,017	?	3,347,236,499
Finished goods	14,699,012,100	?	4,072,862,311	?	10,626,149,789	?	17,108,598,457	?	2,795,564,803	?	14,313,033,654
Consumables	147,843,921	?	-	?	147,843,921	?	130,472,966	?	-	?	130,472,966
Costs to fulfil a contract with a customer	163,373,789	?	-	?	163,373,789	?	67,728,931	?	-	?	67,728,931
?	?	?	?	?	?	?	?	?	?	?	?
Total	31,068,129,960	?	8,280,315,735	?	22,787,814,225	?	33,416,889,332	?	5,611,727,896	?	27,805,161,436

????

As at 31 December 2022, there was no amount of capitalised borrowing cost in the Group’sclosing balance of inventories (2021: Nil).

As at 31 December 2022, the Group had no inventory used as collateral (2021: Nil).

(2) An analysis of provision for impairment of inventories of the Group is as follows:

?	Balance at the beginning of the year	?	Charge during the year	?	Decrease during the year	?	Balance at the end of the year
?	?	?	?	?	?	?	?
Raw materials	2,083,190,076	?	1,535,322,358	?	(727,588,608)	?	2,890,923,826
Work in progress	732,973,017	?	1,103,212,064	?	(519,655,483)	?	1,316,529,598
Finished goods	2,795,564,803	?	8,482,398,827	?	(7,205,101,319)	?	4,072,862,311
?	?	?	?	?	?	?	?
Total	5,611,727,896	?	11,120,933,249	?	(8,452,345,410)	?	8,280,315,735

????

8 Contract assets

(1) The Group’s contract assets by customer type:

(2) Significant changes in the contract assets during the year:

Significant changes in the contract assets of the Group are as follows:

?	?	2022
?	?	RMB
?	?	?
Balance at the beginning of the year	?	75,698,324
?	?	?
Transfers from contract assets recognised at the beginning of the year to receivables	?	(65,331,121)
Increase in contract assets resulting from no unconditional right obtained	?	61,269,258
?	?	?
Balance at the end of the year	?	71,636,461

???

(3) Movements of provision for contract assets during the year:

?	2022	?	2021
?	?	?	?
Balance at the beginning of the year	-	?	207,800
Decrease from disposal of subsidiaries	-	?	(207,800)
?	?	?	?
Balance at the end of the year	-	?	-

???

9 Other current assets

?	?	31 December 2022	?	31 December 2021
?	?	?	?	?
VAT on tax credits	?	2,556,625,457	?	2,643,490,711
Prepaid income taxes	?	331,652,233	?	20,739,659
Input tax to be verified or deducted	?	329,605,466	?	575,209,816
Costs receivables for recovering products from a customer	?	108,097,353	?	126,447,496
Others	?	68,056,410	?	213,032,028
?	?	?	?	?
Total	?	3,394,036,919	?	3,578,919,710

????

10 Long-term equity investments

(1) The Group’s long-term equity investments by category:

?	2022	?	2021
?	?	?	?
Investments in joint ventures	392,291,560	?	-
Investments in associates	13,086,523,900	?	7,066,228,472
?	?	?	?
Sub-total	13,478,815,460	?	7,066,228,472
?	?	?	?
Less: Provision for impairment	1,056,936,609	?	1,025,280,155
?	?	?	?
Total	12,421,878,851	?	6,040,948,317

????

(2) Movements of long-term equity investments during the year are as follows:

Movements during the year

Investee

Balance at the beginning of the year

Increase in capital

Decrease in capital

Investment (loss) / income recognised under equity method

Other comprehensive income

Other equity movements

Declared distribution of cash dividends or profits

Translation differences arising from translation of foreign currency financial statements

Balance at the end of the year

Joint venture

Chongqing Maite Optoelectronics Co., Ltd.

400,000,000

(7,708,440)

392,291,560

Sub-total

400,000,000

(7,708,440)

392,291,560

Associates

Erdos BOE Energy Investment Co., Ltd.

1,409,666,833

405,200,000

(2,983,503)

1,811,883,330

Beijing Xindongneng Investment Fund (Limited Partnership)

2,088,917,867

(129,798,594)

241,130,621

(61,062,079)

(104,317,491)

2,034,870,324

Beijing Innovation Industry Investment Co., Ltd.

207,564,573

15,651,980

223,216,553

Beijing Electric Control Industry Investment Co., Ltd.

231,777,557

21,234,700

(2,556,780)

7,694,430

258,149,907

BOE Art Cloud Technology Co., Ltd.

286,976,389

129,500,000

(130,381,715)

10,026,871

134,476,619

430,598,164

Cnoga Medical Co., Ltd.

253,501,065

23,414,968

276,916,033

Tianjin Xianzhilian Investment Centre (Limited Partnership)

968,341,880

234,000,000

184,737,344

1,387,079,224

BioChain (Beijing) Science & Technology, Inc.

339,845,254

(5,751,469)

334,093,785

Beijing YanDong MicroElectronic Co., Ltd.

1,009,985,276

34,518,797

126,743,478

1,171,247,551

SES Imagotag SA Co., Ltd.

4,871,837,182

11,536,838

4,883,374,020

Others

269,651,778

46,917,149

(87,070,668)

49,501,421

63,317

14,310,853

(18,731,712)

452,871

275,095,009

Sub-total

7,066,228,472

5,708,689,031

(347,250,977)

535,812,120

(53,304,332)

275,530,950

(123,049,203)

23,867,839

13,086,523,900

Total

7,066,228,472

6,108,689,031

(347,250,977)

528,103,680

(53,304,332)

275,530,950

(123,049,203)

23,867,839

13,478,815,460

Less: Provision for impairment

1,025,280,155

1,056,936,609

Total

6,040,948,317

12,421,878,851

As at 31 December 2022, Hefei Xin Jing Yuan Electronic Materials Co., Ltd. still suffered lossand the Group does not have an obligation to assume additional losses. Therefore, theCompany discontinues recognising its share of further losses after the carrying amount oflong-term equity investment is reduced to zero. As at 31 December 2022, the accumulatedunrecognised investment losses were RMB 14,922,087 (2021: RMB 20,352,876).

As at 31 December 2022, Beijing Infi-Hailin Venture Investment Co., Ltd. made a profit andmade up for the unrecognised investment losses of RMB 1,152,818 in the prior year, andrecognised investment income amounting to RMB 2,073,333 during the year.

11 Investments in other equity instruments

Items	31 December 2022	?	31 December 2021
?	?	?	?
Listed equity instruments investment	?	?	?
- Beijing Electronic City High Tech Group Co., Ltd.	53,614,432	?	56,638,836
- Bank of Chongqing Co., Ltd.	91,600,150	?	91,875,688
- New Century Medical Holding Co., Ltd.	9,098,008	?	19,810,485
?	?	?	?
Unlisted equity instruments investment	?	?	?
- Danhua Capital, L. P.	34,823,000	?	31,878,500
- Danhua Capital II, L.P.	69,646,002	?	63,757,002
- Kateeva Inc.	83,192,147	?	76,157,736
- Nanosys INC	21,591,641	?	47,817,750
- Baebies INC	30,600,273	?	28,012,830
- Illumina Fund I,L.P.	31,079,577	?	25,607,407
- Horizon Robotics, Inc.	35,616,005	?	31,722,880
- Others	22,199,071	?	45,809,032
?	?	?	?
Total	483,060,306	?	519,088,146

????

(1) Investments in other equity instruments:

Item	Reason for being designated at fair value through other comprehensive income	?	Dividend income recognised for the year	?	Accumulated gains or losses recognised in other comprehensive income (“-” for losses)	?	Amount transferred from other comprehensive income to retained earnings	?	Reason for transferring from other comprehensive income to retained earnings
?	?	?	?	?	?	?	?	?	?
Listed equity instruments investment	?	?	?	?	?	?	?	?	?
- Beijing Electronic City High Tech Group Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	206,209	?	(36,545,996)	?	-	?	Not applicable
- Bank of Chongqing Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	9,918,634	?	(28,484,225)	?	-	?	Not applicable
- New Century Medical Holding Co., Ltd.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(131,750,842)	?	-	?	Not applicable
?	?	?	?	?	?	?	?	?	?
Unlisted equity instruments investment	?	?	?	?	?	?	?	?	?
- Danhua Capital, L. P.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	5,045,925	?	296,625	?	-	?	Not applicable
- Danhua Capital II, L.P.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	20,183,700	?	1,998,251	?	-	?	Not applicable
- Kateeva Inc.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	329,681	?	-	?	Not applicable
- Nanosys INC	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(28,757,359)	?	-	?	Not applicable
- Baebies INC	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	1,476,718	?	-	?	Not applicable
- Illumina Fund I,L.P.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	1,110,906	?	-	?	Not applicable
- Horizon Robotics, Inc.	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	3,661,505	?	-	?	Not applicable
- Others	With the intention of establishing or maintaining a long-term investment for strategic reasons	?	-	?	(38,958,805)	?	(10,091,839)	?	Transfer out due to bankruptcy liquidation derecognition
?	?	?	?	?	?	?	?	?	?
Total	?	?	35,354,468	?	(255,623,541)	?	(10,091,839)	?	?

????

12 Other non-current financial assets

Item	2022	?	2021
?	?	?	?
Financial assets at fair value through profit or loss	2,022,967,681	?	606,895,447
Including: Investments in equity instruments	2,022,967,681	?	606,895,447
?	?	?	?
Total	2,022,967,681	?	606,895,447

13 Investment properties

?	?	Land use rights	?	Buildings	?	Total
?	?	?	?	?	?	?
Cost	?	?	?	?	?	?
Balance at the beginning of the year	?	687,434,677	?	1,022,831,969	?	1,710,266,646
Additions during the year	?	-	?	5,461,739	?	5,461,739
?	?	?	?	?	?	?
Balance at the end of the year	?	687,434,677	?	1,028,293,708	?	1,715,728,385
?	?	?	?	?	?	?
Less: Accumulated depreciation or amortisation	?	?	?	?	?	?
Balance at the beginning of the year	?	168,017,805	?	383,883,440	?	551,901,245
Additions during the year	?	13,622,701	?	28,179,301	?	41,802,002
?	?	?	?	?	?	?
Balance at the end of the year	?	181,640,506	?	412,062,741	?	593,703,247
?
?	?	?	?	?	?	?
Carrying amounts	?	?	?	?	?	?
At the end of the year	?	505,794,171	?	616,230,967	?	1,122,025,138
?	?	?	?	?	?	?
At the beginning of the year	?	519,416,872	?	638,948,529	?	1,158,365,401

????

14 Fixed assets

(1) Analysis of the Group’s fixed assets are as follows:

Item	Plant & buildings	?	Equipment	?	Others	?	Total
?	?	?	?	?	?	?	?
Cost	?	?	?	?	?	?	?
Balance at the beginning of the year	65,746,184,870	?	289,073,320,848	?	10,027,118,299	?	364,846,624,017
Additions during the year	?	?	?	?	?	?	?
- Purchases	22,873,906	?	576,061,450	?	1,874,710,266	?	2,473,645,622
- Transfers from construction in progress	195,460,071	?	9,633,715,949	?	732,046,393	?	10,561,222,413
- Written-down against government interest discounts	(16,355,538)	?	(166,721,924)	?	(12,987)	?	(183,090,449)
Decrease due to disposal of subsidiaries	(61,688,333)	?	(185,865,467)	?	(88,382,014)	?	(335,935,814)
Transfers to construction in progress	-	?	(1,161,980,085)	?	(29,857,355)	?	(1,191,837,440)
Disposals or written-offs during the year	(176,295)	?	(446,815,683)	?	(169,873,534)	?	(616,865,512)
Translation differences	4,131,352	?	29,007,311	?	6,239,955	?	39,378,618
?	?	?	?	?	?	?	?
Balance at the end of the year	65,890,430,033	?	297,350,722,399	?	12,351,989,023	?	375,593,141,455
?	?	?	?	?	?	?	?
Less: Accumulated depreciation	?	?	?	?	?	?	?
Balance at the beginning of the year	7,908,069,483	?	122,199,288,667	?	5,704,812,685	?	135,812,170,835
Charge during the year	2,072,464,102	?	29,207,688,566	?	1,947,737,403	?	33,227,890,071
Decrease due to disposal of subsidiaries	(30,181,955)	?	(137,710,504)	?	(23,163,432)	?	(191,055,891)
Transfers to construction in progress	-	?	(730,517,943)	?	(21,961,743)	?	(752,479,686)
Disposals or written-offs during the year	(13,666)	?	(374,611,961)	?	(69,200,542)	?	(443,826,169)
Translation differences	391,129	?	15,781,865	?	1,425,638	?	17,598,632
?	?	?	?	?	?	?	?
Balance at the end of the year	9,950,729,093	?	150,179,918,690	?	7,539,650,009	?	167,670,297,792
?	?	?	?	?	?	?	?
Less: Provision for impairment	?	?	?	?	?	?	?
Balance at the beginning of the year	34,480	?	1,704,957,933	?	188,093,885	?	1,893,086,298
Charge during the year	-	?	132,578,826	?	10,492,666	?	143,071,492
Transfers to construction in progress	-	?	(19,908,202)	?	(165,882)	?	(20,074,084)
Disposals or written-offs during the year	-	?	(77,467,003)	?	(2,823,470)	?	(80,290,473)
?	?	?	?	?	?	?	?
Balance at the end of the year	34,480	?	1,740,161,554	?	195,597,199	?	1,935,793,233
?
?	?	?	?	?	?	?	?
Carrying amounts	?	?	?	?	?	?	?
At the end of the year	55,939,666,460	?	145,430,642,155	?	4,616,741,815	?	205,987,050,430

?	?	?	?	?	?	?	?
At the beginning of the year	57,838,080,907	?	165,169,074,248	?	4,134,211,729	?	227,141,366,884

????

In 2022, some of the equipment of the Group is idle and there is no clear use plan. TheGroup evaluated the recoverable amount of these equipment and made provisions forimpairment of RMB 143,071,492 (2021: RMB 675,831,912) based on the evaluation results.

(2) Fixed assets pending certificates of ownership

As at 31 December 2022, fixed assets pending certificates of ownership totalled RMB7,110,462,456 (31 December 2021: RMB 7,892,064,184) and certificates of ownership is stillbeing processed.

15 Construction in progress

(1) Analysis of the Group’s construction in progress is as follows:

?	31 December 2022					?	31 December 2021
Item	Book value	?	Provision for impairment	?	Carrying amount	?	Book value	?	Provision for impairment	?	Carrying amount
?	?	?	?	?	?	?	?	?	?	?	?
The 6th generation AMOLED project - Chongqing	31,013,623,277	?	-	?	31,013,623,277	?	24,774,517,248	?	-	?	24,774,517,248
Others	12,446,773,478	?	74,262,087	?	12,372,511,391	?	7,369,688,455	?	44,493,824	?	7,325,194,631
?	?	?	?	?	?	?	?	?	?	?	?
Total	43,460,396,755	?	74,262,087	?	43,386,134,668	?	32,144,205,703	?	44,493,824	?	32,099,711,879

????

In 2022, some of the engineering projects of the Group is idle and cannot be further used.The Group evaluated the residual values of these engineering projects and made a provisionfor impairment of RMB 29,768,263 based on the evaluation results.

(2) Movements of major construction projects in progress during the year

Item

Budget

Balance at the beginning of the year

Additions during the year

Transfers to fixed assets

Balance at the end of the year

Percentage of actual cost to budget (%)

Accumulated capitalised interest at the end of the year

Interest capitalised in 2022

Interest rate for capitalisation in 2022 (%)

Sources of funding

The 6th generation AMOLED project - Chongqing

46,500,000,000

24,774,517,248

6,243,115,489

(4,009,460)

31,013,623,277

70.04%

624,014,961

438,224,219

4.24%

Self-raised funds and borrowings

????

16 Intangible assets

(1) Intangible assets

?	Land use rights	?	Patent and proprietary technology	?	Computer software	?	Others	?	Total
?	?	?	?	?	?	?	?	?	?
Original book value	?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	5,539,522,787	?	6,978,992,728	?	1,676,849,060	?	1,549,958,675	?	15,745,323,250
Additions during the year	?	?	?	?	?	?	?	?	?
- Purchases	256,914,399	?	8,532,419	?	121,172,137	?	-	?	386,618,955
- Transfers from construction in progress	-	?	-	?	114,068,215	?	112,297	?	114,180,512
Decrease due to disposal of subsidiaries	-	?	(1,732,355,021)	?	(17,486,779)	?	(846,913,855)	?	(2,596,755,655)
Disposals during the year	-	?	-	?	(548,585)	?	-	?	(548,585)
Translation differences	-	?	(9,139,455)	?	947,362	?	2,450,615	?	(5,741,478)
Written-down against interest discount	-	?	(771,120)	?	(120,528)	?	(771,120)	?	(1,662,768)
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	5,796,437,186	?	5,245,259,551	?	1,894,880,882	?	704,836,612	?	13,641,414,231
?	?	?	?	?	?	?	?	?	?
Less: Accumulated amortisation	?	?	?	?	?	?	?	?	?
Balance at the beginning of the year	524,719,007	?	2,613,841,165	?	999,888,044	?	397,376,628	?	4,535,824,844
Charge during the year	135,495,338	?	602,728,282	?	198,089,822	?	85,027,074	?	1,021,340,516
Decrease due to disposal of subsidiaries	-	?	(652,040,647)	?	(5,447,593)	?	(204,670,848)	?	(862,159,088)
Disposals during the year	-	?	-	?	(490,789)	?	-	?	(490,789)
Translation differences	-	?	(2,483,639)	?	168,335	?	886,909	?	(1,428,395)
?	?	?	?	?	?	?	?	?	?
Balance at the end of the year	660,214,345	?	2,562,045,161	?	1,192,207,819	?	278,619,763	?	4,693,087,088
?	?	?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?	?	?
Carrying amount at the end of the year	5,136,222,841	?	2,683,214,390	?	702,673,063	?	426,216,849	?	8,948,327,143
?	?	?	?	?	?	?	?	?	?
Carrying amount at the beginning of the year	5,014,803,780	?	4,365,151,563	?	676,961,016	?	1,152,582,047	?	11,209,498,406

????

17 Goodwill

(1) Changes in goodwill

Name of investee	?	Balance at the beginning of the year	?	Additions during the year	?	Decrease due to disposal of subsidiaries	?	Balance at the end of the year
?	?	?	?	?	?	?	?	?
Book value	?	?	?	?	?	?	?	?
Beijing Yinghe Century Co., Ltd.	?	42,940,434	?	-	?	-	?	42,940,434
K-Tronics (Suzhou) technology Co., Ltd.	?	8,562,464	?	-	?	-	?	8,562,464
Beijing BOE Optoelectronics Technology Co., Ltd.	?	4,423,876	?	-	?	-	?	4,423,876
BOE Healthcare Investment & Management Co., Ltd.	?	146,460,790	?	-	?	-	?	146,460,790
SES Imagotag SA Co., Ltd.	?	706,406,821	?	-	?	(706,406,821)	?	-
Chengdu BOE Display Sci-tech Co., Ltd.. (Chengdu Display Sci-tech)	?	537,038,971	?	-	?	-	?	537,038,971
Nanjing BOE Display Technology Co., Ltd.	?	155,714,415	?	-	?	-	?	155,714,415
Hefei Jiangcheng Technology Co., Ltd.	?	9,391,961	?	-	?	(9,391,961)	?	-
?	?	?	?	?	?	?	?	?
Sub-total	?	1,610,939,732	?	-	?	(715,798,782)	?	895,140,950
?	?	?	?	?	?	?	?	?
Provision for impairment	?	?	?	?	?	?	?	?
Beijing BOE Optoelectronics Technology Co., Ltd.	?	(4,423,876)	?	-	?	-	?	(4,423,876)
BOE Healthcare Investment & Management Co., Ltd.	?	(82,137,669)	?	-	?	-	?	(82,137,669)
SES Imagotag SA Co., Ltd.	?	(394,371,200)	?	-	?	394,371,200	?	-
Chengdu BOE Display Sci-tech Co., Ltd.. (Chengdu Display Sci-tech)	?	-	?	(147,755,754)	?	-	?	(147,755,754)
?	?	?	?	?	?	?	?	?
Sub-total	?	(480,932,745)	?	(147,755,754)	?	394,371,200	?	(234,317,299)
?	?	?	?	?	?	?	?	?
Carrying amount	?	1,130,006,987	?	(147,755,754)	?	(321,427,582)	?	660,823,651

????

(2) Provision for impairment of goodwill

The recoverable amount of Beijing Yinghe Century Co., Ltd., Suzhou K-Tronics, BOEHealthcare Investment & Management Co., Ltd. (“Health Investment”), Chengdu Display Sci-tech and Nanjing BOE Display Technology Co., Ltd. is determined based on the presentvalue of expected future cash flows. When predicting the present value of cash flow, thecash flow in the next 5 years is determined based on the financial budget approved by themanagement. The cash flow in the years after the 5-year financial budget will remain stable.The pre-tax discount rate is determined with reference to comparable companies and relatedcapital structures.

As at 31 December 2022, as the present value of future cash flows of the asset group towhich Chengdu Display Sci-tech's goodwill belongs was lower than the carrying amount ofthe asset group, the Group made an impairment provision of RMB 147,755,754 for therelevant goodwill.

18 Long-term deferred expenses

?	Balance at 31December 2021	?	Additions during the year	?	Decrease during the year	?	Balance at 31December 2022
?	?	?	?	?	?	?	?
Payment for public facilities construction and use	51,962,118	?	-	?	(10,800,827)	?	41,161,291
Leasehold improvements	10,325,942	?	16,912,468	?	(7,807,977)	?	19,430,433
Others	574,242,442	?	61,375,716	?	(139,268,505)	?	496,349,653
?	?	?	?	?	?	?	?
Total	636,530,502	?	78,288,184	?	(157,877,309)	?	556,941,377

????

19 Deferred tax assets/deferred tax liabilities

(1) Deferred tax assets and liabilities

?	2022			?	2021
Item	Deductible/ (taxable) temporary differences	?	Deferred tax assets/(liabilities)	?	Deductible/ (taxable) temporary differences	?	Deferred tax assets/(liabilities)
?	?	?	?	?	?	?	?
Deferred tax assets:	?	?	?	?	?	?	?
Provision for impairment of assets	151,264,910	?	31,020,460	?	113,867,486	?	24,884,958
Changes in fair value of investments in other equity instruments	142,547,604	?	21,382,141	?	139,523,200	?	20,928,480
Depreciation of fixed assets	239,415,255	?	37,326,236	?	201,462,125	?	34,642,083
Assessed value added by investing real estate in subsidiaries	119,895,400	?	29,973,850	?	125,449,252	?	31,362,313
Accumulated losses	459,130	?	75,757	?	422,990,806	?	118,064,555
Government grant	143,385,420	?	21,507,813	?	209,807,147	?	31,471,072
Others	59,695,684	?	9,274,649	?	306,215,006	?	19,010,893
?	?	?	?	?	?	?	?
Sub-total	856,663,403	?	150,560,906	?	1,519,315,022	?	280,364,354
?	?	?	?	?	?	?	?
Amount offset	?	?	(80,310,481)	?	?	?	(90,028,830)
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	70,250,425	?	?	?	190,335,524

?	?	?	?	?	?	?	?
Deferred tax liabilities:	?	?	?	?	?	?	?
Revaluation due to business combinations involving entities not under common control	(882,129,374)	?	(217,980,404)	?	(2,197,597,331)	?	(584,383,821)
Depreciation of fixed assets	(7,266,110,223)	?	(1,094,970,944)	?	(6,388,163,232)	?	(984,779,332)
Long-term equity investments	(120,141,687)	?	(18,021,253)	?	(120,141,687)	?	(18,021,253)
Others	(151,491,002)	?	(23,744,713)	?	(167,106,175)	?	(28,467,297)
?	?	?	?	?	?	?	?
Sub-total	(8,419,872,286)	?	(1,354,717,314)	?	(8,873,008,425)	?	(1,615,651,703)
?	?	?	?	?	?	?	?
Amount offset	?	?	80,310,481	?	?	?	90,028,830
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	(1,274,406,833)	?	?	?	(1,525,622,873)

????

(2) Details of unrecognised deferred tax assets

?	2022	?	2021
?	?	?	?
Deductible temporary differences	22,749,630,064	?	24,215,956,667
Deductible tax losses	44,677,908,573	?	19,433,679,291
?	?	?	?
Total	67,427,538,637	?	43,649,635,958

????

As at 31 December 2022, the accumulated deductible temporary differences are mainlysubsidiaries’ impairment provisions of assets and accrual of expenses. Due to theuncertainty that there will be sufficient taxable income to cover these deductible differencesin future periods, the deferred income tax assets were not recognised in consideration ofprudence.

(3) Expiration of deductible tax losses for unrecognised deferred tax assets

Year	Note	2022	?	2021
?	?	?	?	?
2022	?	-	?	316,585,394
2023	?	280,957,810	?	290,518,573
2024	?	451,137,106	?	458,962,394
2025	?	1,253,378,510	?	1,276,919,825
2026	?	1,473,908,686	?	1,785,437,184
2027	?	3,146,172,377	?	14,979,073
2028	?	2,279,355,553	?	2,221,266,958
2029	?	5,008,814,339	?	5,296,070,440
2030	?	4,196,348,029	?	4,368,141,751
2031	?	2,502,424,694	?	2,406,109,565
2032	?	23,569,766,818	?	-?
Others	(a)	515,644,651	?	998,688,134
?	?	?	?	?
Total	?	44,677,908,573	?	19,433,679,291

????

(a) According to the applicable local tax laws, loss of some overseas subsidiaries of the

Group has indefinite carry-over period to deduct the future taxable income.

20 Other non-current assets

?	?	31 December 2022	?	31 December 2021
?	?	?	?	?
Surety	?	1,338,834,402	?	1,339,517,936
Prepayments for construction	?	153,690,890	?	224,400,336
Prepayment for fixed assets	?	148,834,349	?	572,510,455
VAT on tax credits	?	-	?	3,424,055,815
Deferred VAT for imported equipment	?	2,696,796	?	1,407,330,930
Others	?	311,464,947	?	509,612,011
?	?	?	?	?
Total	?	1,955,521,384	?	7,477,427,483

????

21 Short-term loans

?	31 December 2022
?	?	?	?	?		?	Credited/ collateralised
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
?	?	?	?	?	?	?	?
Bank loans	?	?	?	?	?	?	?
- RMB	?	?	?	?	901,622,500	?	Guaranteed
- RMB	?	?	?	?	30,006,237	?	Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	931,628,737	?	?
?	?	?	?	?	?	?	?
Foreign currency bank loans	?	?	?	?	?	?	?
- USD	128,585,504	?	6.9646	?	895,546,601	?	Credited
- JPY	205,792,620	?	0.0524	?	10,783,533	?	Credited
- HKD	600,000,000	?	0.8933	?	535,980,000	?	Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	1,442,310,134	?	?
?
?	?	?	?	?	?	?	?
Total	?	?	?	?	2,373,938,871	?	?

????

?	31 December 2021
?	?	?	?	?		?	Credited/ collateralised
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
?	?	?	?	?	?	?	?
Bank loans	?	?	?	?	?	?	?
- RMB	?	?	?	?	1,352,433,750	?	Guaranteed
- RMB	?	?	?	?	140,148,195	?	Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	1,492,581,945	?	?
?	?	?	?	?	?	?	?
Foreign currency bank loans	?	?	?	?	?	?	?
- USD	83,382,510	?	6.3757	?	531,621,869	?	Credited
- JPY	863,548,156	?	0.0554	?	47,853,518	?	Credited
?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	579,475,387	?	?
?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?
Total	?	?	?	?	2,072,057,332	?	?

???

As at 31 December 2022, no short-term loan was past due (2021: Nil).

22 Bills payable

?	31 December 2022	?	31 December 2021
?	?	?	?
Bank acceptance bills	847,418,525	?	663,001,350
Commercial acceptance bills	22,803,013	?	164,956,681
?	?	?	?
Total	870,221,538	?	827,958,031

????

There is no due but unpaid bill payable at the end of the year. The bills above are all duewithin one year.

23 Accounts payable

(1) The Group’s accounts payable by category are as follows:

?	31 December 2022	?	31 December 2021
?	?	?	?
Payables to related parties	179,047,266	?	142,557,107
Payables to third parties	29,655,673,198	?	32,313,273,587
?	?	?	?
Total	29,834,720,464	?	32,455,830,694

????

(2) The Group’s accounts payable by currency are as follows:

?	2022					?	2021
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	21,162,560,832	?	?	?	?	?	23,743,766,250
- USD	1,146,041,405	?	6.9646	?	7,981,719,969	?	1,093,846,298	?	6.3757	?	6,974,035,842
- JPY	9,299,005,433	?	0.0524	?	487,267,885	?	10,050,541,520	?	0.0554	?	556,800,000
- Other foreign currencies	?	?	?	?	203,171,778	?	?	?	?	?	1,181,228,602
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	29,834,720,464	?	?	?	?	?	32,455,830,694

????

As at 31 December 2022, the Group had no significant accounts payable with ageing of morethan one year.

24 Advance payments received

Item	31 December 2022	?	31 December 2021
?	?	?	?
Advances from related parties	188,623	?	961,806
Advances from third parties	79,660,354	?	145,178,278
?	?	?	?
Total	79,848,977	?	146,140,084

????

25 Contract liabilities

Item	31 December 2022	?	31 December 2021
?	?	?	?
Sale of goods	2,411,717,792	?	3,765,081,554

???

Contract liabilities primarily relate to the Group’s advances from goods purchase and salecontracts. The Group receives a certain proportion of advances as agreed in contract whenentering into the contract with customers. The revenue related to the contracts will berecognised until the Group satisfies its performance obligation.

Significant changes in the contract liabilities of the Group are as follows:

?	2022
?	RMB
?	?
Balance at the beginning of the year	3,765,081,554
?	?
Revenue recognised that was included in the contract liability balance at the beginning of year	(3,578,825,023)
Increase of contract liabilities due to cash received at the end of the year	2,225,461,261
?	?
Balance at the end of the year	2,411,717,792

???

26 Employee benefits payable

(1) Employee benefits payable:

?	Note	Balance at 1 January 2022	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2022
?	?	?	?	?	?	?	?	?
Short-term employee benefits	(2)	5,098,605,495	?	16,306,120,923	?	(18,748,357,070)	?	2,656,369,348
Post-employment benefits	?	?	?	?	?	?	?	?
- defined contribution plans	(3)	34,235,855	?	1,643,219,063	?	(1,619,403,086)	?	58,051,832
Termination benefits	?	313,887	?	125,276,407	?	(21,478,651)	?	104,111,643
?	?	?	?	?	?	?	?	?
Total	?	5,133,155,237	?	18,074,616,393	?	(20,389,238,807)	?	2,818,532,823

????

?	Note	Balance at 1 January 2021	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2021
?	?	?	?	?	?	?	?	?
Short-term employee benefits	(2)	3,733,572,462	?	18,689,911,958	?	(17,324,878,925)	?	5,098,605,495
Post-employment benefits	?	?	?	?	?	?	?	?
- defined contribution plans	(3)	21,628,033	?	1,142,227,556	?	(1,129,619,734)	?	34,235,855
Termination benefits	?	3,423,302	?	26,091,251	?	(29,200,666)	?	313,887
?	?	?	?	?	?	?	?	?
Total	?	3,758,623,797	?	19,858,230,765	?	(18,483,699,325)	?	5,133,155,237

???

(2) Short-term employee benefits

?	Balance at 1 January 2022	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2022
?	?	?	?	?	?	?	?
Salaries, bonuses, allowances	4,304,276,089	?	12,995,283,767	?	(15,610,071,500)	?	1,689,488,356
Staff welfare	-	?	1,212,939,702	?	(1,212,939,702)	?	-
Social insurance	43,095,684	?	780,825,248	?	(778,894,329)	?	45,026,603
Medical insurance	38,317,039	?	720,094,785	?	(718,045,022)	?	40,366,802
Work-related injury insurance	2,583,340	?	44,668,965	?	(44,821,987)	?	2,430,318
Maternity insurance	2,195,305	?	16,061,498	?	(16,027,320)	?	2,229,483
Housing fund	33,089,973	?	946,098,096	?	(949,389,930)	?	29,798,139
Labour union fee, staff and workers’ education fee	697,018,542	?	370,534,929	?	(196,078,722)	?	871,474,749
Staff bonus and welfare fund	20,553,209	?	-	?	-	?	20,553,209
Other short-term employee benefits	571,998	?	439,181	?	(982,887)	?	28,292
?	?	?	?	?	?	?	?
Total	5,098,605,495	?	16,306,120,923	?	(18,748,357,070)	?	2,656,369,348

????

?	Balance at 1 January 2021	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2021
?	?	?	?	?	?	?	?
Salaries, bonuses, allowances	3,184,794,255	?	15,851,656,348	?	(14,732,174,514)	?	4,304,276,089
Staff welfare	-	?	1,087,174,457	?	(1,087,174,457)	?	-
Social insurance	32,667,412	?	612,771,541	?	(602,343,269)	?	43,095,684
Medical insurance	29,551,408	?	563,695,980	?	(554,930,349)	?	38,317,039
Work-related injury insurance	1,614,132	?	32,393,361	?	(31,424,153)	?	2,583,340
Maternity insurance	1,501,872	?	16,682,200	?	(15,988,767)	?	2,195,305
Housing fund	27,141,059	?	679,488,225	?	(673,539,311)	?	33,089,973
Labour union fee, staff and workers’ education fee	467,724,919	?	445,370,010	?	(216,076,387)	?	697,018,542
Staff bonus and welfare fund	20,553,209	?	-	?	-	?	20,553,209
Other short-term employee benefits	691,608	?	13,451,377	?	(13,570,987)	?	571,998
?	?	?	?	?	?	?	?
Total	3,733,572,462	?	18,689,911,958	?	(17,324,878,925)	?	5,098,605,495

???

(3) Post-employment benefits - defined contribution plans

?	Balance at 1 January 2022	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2022
?	?	?	?	?	?	?	?
Basic pension insurance	30,284,940	?	1,408,163,207	?	(1,401,435,524)	?	37,012,623
Unemployment insurance	906,583	?	45,871,870	?	(45,457,632)	?	1,320,821
Annuity	3,044,332	?	189,183,986	?	(172,509,930)	?	19,718,388
?	?	?	?	?	?	?	?
Total	34,235,855	?	1,643,219,063	?	(1,619,403,086)	?	58,051,832

????

?	Balance at 1 January 2021	?	Accrued during the year	?	Decrease during the year	?	Balance at 31 December 2021
?	?	?	?	?	?	?	?
Basic pension insurance	19,052,829	?	1,055,978,182	?	(1,044,746,071)	?	30,284,940
Unemployment insurance	1,110,934	?	38,192,020	?	(38,396,371)	?	906,583
Annuity	1,464,270	?	48,057,354	?	(46,477,292)	?	3,044,332
?	?	?	?	?	?	?	?
Total	21,628,033	?	1,142,227,556	?	(1,129,619,734)	?	34,235,855

???

27 Taxes payable

?	2022	?	2021
?	?	?	?
Value-added tax	142,337,422	?	101,448,944
Corporate income tax	287,859,236	?	1,266,575,648
Individual income tax	48,228,934	?	58,763,365
City construction tax	428,525,949	?	383,455,432
Education surcharges and local education surcharges	306,515,854	?	274,382,851
Others	117,933,793	?	115,623,065
?	?	?	?
Total	1,331,401,188	?	2,200,249,305

????

28 Other payables

?	Note	31 December 2022	?	31 December 2021
?	?	?	?	?
Interest payable	?	151,200	?	126,701
Dividends payable	?	6,410,514	?	6,561,972
Others	(1)	19,625,661,555	?	23,828,686,269
?	?	?	?	?
Total	?	19,632,223,269	?	23,835,374,942

????

(1) Others

(a) The Group’s other payables by category are as follows:

?	Note	31 December 2022	?	31 December 2021
?	?	?	?	?
Projects and equipment	?	13,185,841,311	?	16,494,274,603
Fund transaction (Note)	?	3,130,038,067	?	3,077,116,568
Deferred VAT for imported equipment	?	196,440,706	?	927,825,520
Repurchase obligation of restricted shares	V.39	753,440,228	?	835,215,390
Accrued water and electricity charges and freight	?	407,770,818	?	348,955,956
Security and deposits	?	505,702,125	?	537,788,828
External agency fee	?	172,851,477	?	193,251,964
Others	?	1,273,576,823	?	1,414,257,440
?	?	?	?	?
Total	?	19,625,661,555	?	23,828,686,269

????

The Group’s significant other payables aged over one year are payables of projectsand equipment.

Note: The other payables by the Group as at 31 December 2022 are amounts and

interests due to original controlling shareholders of Nanjing Display Technologyand Chengdu Display Sci-tech acquired in 2020, with interest rates of 2.175%and 0%.

(b) The Group’s other payables by currency are as follows:

?	31 December 2022					?	31 December 2021
?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents
?	?	?	?	?	?	?	?	?	?	?	?
RMB	?	?	?	?	13,336,886,237	?	?	?	?	?	16,157,489,471
USD	736,000,871	?	6.9646	?	5,125,951,666	?	857,826,112	?	6.3757	?	5,469,241,942
JPY	18,492,932,844	?	0.0524	?	969,029,681	?	38,321,236,336	?	0.0554	?	2,122,996,493
Other foreign currencies	?	?	?	?	193,793,971	?	?	?	?	?	78,958,363
?	?	?	?	?	?	?	?	?	?	?	?
Total	?	?	?	?	19,625,661,555	?	?	?	?	?	23,828,686,269

????

29 Non-current liabilities due within one year

As at 31 December, the non-current liabilities due within one year for the Group were long-term loans due within one year, lease liabilities,long-term payables and contribution of non-controlling interests with redemption provisions.

?	?	31 December 2022
?	?	?	?	?	?		?	Credited/ collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	117,008,022	?	Pledged
- RMB	?	?	?	?	?	11,356,508,048	?	Collateralised
- RMB	?	?	?	?	?	94,144,290	?	Guaranteed
- RMB	?	?	?	?	?	5,528,984,741	?	Credited
- USD	?	694,159,756	?	6.9646	?	4,834,545,037	?	Collateralised
?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	?	21,931,190,138	?	?
?	?	?	?	?	?	?	?	?
Long-term payables	V.33	?	?	?	?	143,117,840	?	?
Lease liabilities	V.60	?	?	?	?	118,302,766	?	?
Contribution of non-controlling interests with redemption provisions	V.35	?	?	?	?	511,140,000	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	22,703,750,744	?	?

????

?	?	31 December 2021
?	?	?	?	?	?		?	Credited/ collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	27,993,413	?	Pledged
- RMB	?	?	?	?	?	7,544,963,177	?	Collateralised
- RMB	?	?	?	?	?	1,718,446	?	Guaranteed
- RMB	?	?	?	?	?	11,614,011,025	?	Credited
- USD	?	1,136,473,175	?	6.3757	?	7,245,812,022	?	Collateralised
- USD	?	63,796,480	?	6.3757	?	406,747,218	?	Guaranteed
- EUR	?	141,129,872	?	7.2197	?	1,018,915,337	?	Credited
- EUR	?	6,605,651	?	7.2197	?	47,690,819	?	Pledged
?	?	?	?	?	?	?	?	?
Sub-total	?	?	?	?	?	27,907,851,457	?	?
?	?	?	?	?	?	?	?	?
Long-term payables	V.33	?	?	?	?	520,546,343	?	?
Lease liabilities	V.60	?	?	?	?	92,788,055	?	?
Contribution of non-controlling interests with redemption provisions	V.35	?	?	?	?	353,772,859	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	28,874,958,714	?	?

???

30 Other current liabilities

Item	?	31 December 2022	?	31 December 2021
?	?	?	?	?
Warranty provisions	?	3,368,859,501	?	3,595,808,261
Refund liability	?	101,672,253	?	141,997,964
Pending output VAT	?	139,462,782	?	216,565,073
Others	?	3,973,137	?	97,161,211
?	?	?	?	?
Total	?	3,613,967,673	?	4,051,532,509

???

The other current liabilities of the Group were warranty provision. The warranty provisionmainly relates to the expected after-sales repair warranty to the customers. The provision isestimated by the Management, based on historical claim experience and current actual salesoutcomes.

31 Long-term loans

?	?	31 December 2022
?	?	?	?	?	?		?	Credited/ collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	1,058,900,427	?	Pledged
- RMB	?	?	?	?	?	49,363,519,760	?	Collateralised
- RMB	?	?	?	?	?	4,326,076,807	?	Guaranteed
- RMB	?	?	?	?	?	58,386,326,488	?	Credited
- USD	?	4,586,027,388	?	6.9646	?	31,939,846,346	?	Collateralised
Less: Long-term loans due within one year	V.29	?	?	?	?	21,931,190,138	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	123,143,479,690	?	?

????

?	?	31 December 2021
?	?	?	?	?	?		?	Credited/ collateralised
?	Note	Amount in original currency	?	Exchange rate	?	RMB/RMB equivalents	?	guaranteed/ pledged
Bank loans	?	?	?	?	?	?	?	?
- RMB	?	?	?	?	?	537,167,163	?	Pledged
- RMB	?	?	?	?	?	54,546,276,790	?	Collateralised
- RMB	?	?	?	?	?	3,703,662,752	?	Guaranteed
- RMB	?	?	?	?	?	46,573,377,423	?	Credited
- USD	?	5,747,119,917	?	6.3757	?	36,641,912,455	?	Collateralised
- USD	?	101,494,400	?	6.3757	?	647,097,846	?	Guaranteed
- EUR	?	12,407,013	?	7.2197	?	89,574,912	?	Pledged
- EUR	?	172,784,008	?	7.2197	?	1,247,448,703	?	Credited
Less: Long-term loans due within one year	V.29	?	?	?	?	27,907,851,457	?	?
?	?	?	?	?	?	?	?	?
Total	?	?	?	?	?	116,078,666,587	?	?

???

32 Debentures payable

(1) Debentures payable

Item	31 December 2022	?	31 December 2021
?	?	?	?
Debentures payable	-	?	359,586,437
Less: Debentures payable due within one year	-	?	-
?	?	?	?
Total	-	?	359,586,437

????

(2) The movements of debenture payable:

Debenture

Face value

Issuance date

Maturity period

Issuance amount

Balance at the beginning of the year

Increase during the year

Interest at face value

Amortisation of discounts or premium

Decrease due to disposal of subsidiaries

Translation differences

Balance at the end of the year

Euro PP

EUR 10,000,000

2016.12.29

7 years

EUR 10,000,000

71,955,154

2,268,020

95,736

(76,355,057)

2,036,147

Euro PP

EUR 30,000,000

2017.03.29

6 years

EUR 30,000,000

216,118,687

6,804,060

353,720

(229,394,798)

6,118,331

Euro PP

EUR 10,000,000

2019.07.22

6 years

EUR 10,000,000

71,512,596

2,948,426

158,190

(76,678,281)

2,059,069

Total

359,586,437

12,020,506

607,646

(382,428,136)

10,213,547

????

SES Imagotag SA Co., Ltd. (“SES”) issued two private placement bonds with a total face value of Euro 40 million to institutional investors on 29December 2016 and 29 March 2017. The coupon rate of the bonds is 3.50% and the maturity date is 29 December 2023. Interest payments aremade annually and the principle amount will be paid when the bonds become due.

SES issued a private placement bond with a total face value of Euro 10 million to institutional investors on 22 July 2019. The coupon rate of thebond is 4.55% and the maturity date is 22 July 2025. Interest payments are made annually, and the principle amount will be paid when the bondbecomes due.

33 Long-term payables

Item	31 December 2022	?	31 December 2021
?	?	?	?
Obligations under finance leases	372,704,917	?	1,427,139,181
Less: Obligations under finance leases due within one year	143,117,840	?	520,546,343
?	?	?	?
Total	229,587,077	?	906,592,838

????

As at 31 December 2022, the Group sold and leased back some of its machinery andequipment and construction in progress. Since asset sales and lease transactions areinterrelated, and it is almost certain that they will be repurchased after the lease term expires,the Group conducts accounting treatment according to mortgage loans and presents them aslong-term payables.

34 Deferred income

Item	Balance at the beginning of the year	?	Additions during the year	?	Amounts recognised in other income	?	Other changes	?	Balance at the end of the year
?	?	?	?	?	?	?	?	?	?
Related to assets	3,865,273,297	?	704,986,506	?	(739,587,184)	?	(32,283,470)	?	3,798,389,149
Related to income	2,550,816,314	?	2,610,333,056	?	(3,781,917,899)	?	(21,273,288)	?	1,357,958,183
?	?	?	?	?	?	?	?	?	?
Total	6,416,089,611	?	3,315,319,562	?	(4,521,505,083)	?	(53,556,758)	?	5,156,347,332

????

35 Other non-current liabilities

Item	Note	31 December 2022	?	31 December 2021
?	?	?	?	?
Contribution of non-controlling interests with redemption provisions	(1)	2,499,075,805	?	3,020,160,654
Deferred VAT for imported equipment	?	-	?	479,505,410
Others	?	-	?	36,143,812
?	?	?	?	?
Total	?	2,499,075,805	?	3,535,809,876

????

(1) Contribution of non-controlling interests with redemption provisions

The contribution of non-controlling interests with redemption provisions is mainly due to theredemption obligation of the Company to the non-controlling interests of Fuzhou BOE. TheCompany recognises the above non-controlling interests contribution as a financial liabilitywhich is subsequently measured at the cost of amortisation.

The Company has an obligation to repurchase part of the equity of non-controlling interestsof its subsidiary Fuzhou BOE on 29 September 2023, with the repurchase principal of RMB500,000,000, and the Company recognised the principal and interest of the financial liabilitiesfor the redemption obligation to non-current liabilities due within one year (Note V.29).

36 Share capital

?	Balance at the beginning of the year	?	Changes during the year					?	Balance at the end of the year
?	?	?	Issuance of new shares	?	Cancellation of treasury shares	?	Sub-total	?	?
?	?	?	?	?	?	?	?	?	?
Total shares	38,445,746,482	?	-	?	(249,383,061)	?	(249,383,061)	?	38,196,363,421

????

On 20 September 2022, the Company repurchased and cancelled 243,229,361 domesticallylisted foreign shares (B shares) at China Securities Depository and Clearing CorporationLimited Shenzhen Branch. After the repurchase and cancellation, the total share capital ofthe Company changed from 38,445,746,482 to 38,202,517,121 shares.

On 14 October 2022, the Company repurchased and cancelled 6,153,700 shares ofrestricted shares at China Securities Depository and Clearing Corporation Limited ShenzhenBranch. After the repurchase and cancellation, the total share capital of the Companychanged from 38,202,517,121 to 38,196,363,421 shares.

37 Other equity instruments

(1) Financial instruments (including perpetual bonds) that remain outstanding at the end of the

year are set out as follows:

Outstanding financial instruments

Issuance date

Accounting classification

Interest rate

Issuance price

Quantity

Amount

Maturity date or renewal status

Conditions for conversion

Conversion status

20BOEY1

28 February 2020

Equity instrument

3.64%

RMB 100/bond

20 million

RMB 2 billion

3+N years

Not applicable

20BOEY2

19 March 2020

Equity instrument

3.54%

RMB 100/bond

20 million

RMB 2 billion

3+N years

Not applicable

20BOEY3

27 April 2020

Equity instrument

3.50%

RMB 100/bond

20 million

RMB 2 billion

3+N years

Not applicable

22BOEY1

25 March 2022

Equity instrument

3.50%

RMB 100/bond

20 million

RMB 2 billion

3+N years

Not applicable

Total

80 million

RMB 8 billion

????

(2) Major terms:

On 29 October 2019, with the approval document No. 1801 [2019] of the China SecuritiesRegulatory Commission (“CSRC”), the Company successfully issued a renewable corporatebond to qualified investors. The full name of the bond was Renewable Corporate BondPublicly Issued by BOE Technology Group Co., Ltd. (to qualified investors) in 2019 (the FirstPhase), which referred to as 19BOEY1 (“2019 bond”); on 28 February 2020, 19 March 2020and 27 April 2020, the Company issued renewable corporate bonds to qualified investors.The full name of these bonds was Renewable Corporate Bond Publicly Issued by BOETechnology Group Co., Ltd. (to qualified investors) in 2020, which referred to as 20BOEY1,20BOEY2, 20BOEY3 respectively (“2020 bond”); On March 25, 2022, the Company issuedrenewable corporate bonds to qualified investors. The full name of these bonds wasRenewable Corporate Bond Publicly Issued by BOE Technology Group Co., Ltd. (digitaleconomy) in 2022 (the First Phase), which referred to as 22BOEY1 (“2022 bond”).

Both 2019 bond, 2020 bond and 2022 bond have a base term of 3 years and take everythree interest-bearing years as a period. The Company is entitled to choose to extend thematurity by 1 period at the end of the agreed base term or at the end of each extendedperiod, or choose to fully redeem the 2019 bond, 2020 bond and 2022 bond at the end of theperiod. The nominal interest rate of the 2019 bond, 2020 bond and 2022 bond is fixed duringthe first period, and then is reset once every period. The nominal interest rate in the firstperiod is the initial benchmark interest rate plus the initial spread, and the nominal interestrate in the subsequent period is adjusted to the current benchmark interest rate plus theinitial spread and 300 basis points. Therefore, when the Company exercises the renewaloption, the nominal interest rate will significantly increase, and the corresponding nominalinterest will also increase sharply. The 2019 bond, 2020 bond and 2022 bond have anissuer’s right to defer the payment of interest. Unless a mandatory interest payment eventoccurs (including distributions to ordinary shareholders and decrease of registered capital).At each interest payment date of the bonds, the Company may choose at its discretionwhether to defer the payment of the current interest as well as all the deferred interests andthe yields under this term until the next interest payment date without being subjected to anylimit on the number of interest deferring attempts.

The 2019 bond with a three-year issuance period will expire on 28 October 2022. TheCompany has decided not to exercise the bond issuer’s option to renew the bond and haspaid the principal and interest of the bond in full. As at 31 December 2022, the actualissuance of the 2020 bond and 2022 bond amounted to RMB 8,000,000,000 in total, and theCompany considers that the renewable corporate bonds do not meet the definition offinancial liabilities, and therefore will charge the total amount of the issuance to other equityinstruments after deducting underwriting fees and other transaction costs.

(3) Movement of the financial instruments (including perpetual bonds) that remain outstanding at

the end of the year:

Outstanding financial instruments	At the beginning of the year		Additions during the year		Decrease during the year		Accumulated interest			?	At the end of the year
Outstanding financial instruments	Quantity	Carrying amount	Quantity	Carrying amount	Quantity	Carrying amount	Charge for the year	?	Paid during the year		Quantity	?	Carrying amount
?	?	?	?	?	?	?	?		?		?		?
19BOEY1	80,000,000	8,014,033,565	-	-	(80,000,000)	(7,957,047,264)	263,013,699		(320,000,000)		-		-
20BOEY1	20,000,000	2,050,610,478	-	-	-	-	72,800,000		(72,800,000)		20,000,000		2,050,610,478
20BOEY2	20,000,000	2,045,184,865	-	-	-	-	70,800,000		(70,800,000)		20,000,000		2,045,184,865
20BOEY3	20,000,000	2,037,168,519	-	-	-	-	70,000,000		(70,000,000)		20,000,000		2,037,168,519
22BOEY1	-	-	20,000,000	1,989,320,755	-	-	54,082,191		-		20,000,000		2,043,402,946
?	?	?	?	?	?	?	?		?		?		?
Total	140,000,000	14,146,997,427	20,000,000	1,989,320,755	(80,000,000)	(7,957,047,264)	530,695,890		(533,600,000)		80,000,000		8,176,366,808

????

(4) Relevant information of amounts attributable to holders of equity instruments:

?	31 December 2022	?	31 December 2021
?	?	?	?
Attributable to shareholders of the Company	136,089,410,395	?	143,204,240,947
- Equity attributable to ordinary shareholders of the Company	127,913,043,587	?	129,057,243,520
- Equity attributable to holders of the Company’s other equity instruments	8,176,366,808	?	14,146,997,427
Equity attributable to non-controlling shareholders	65,960,886,731	?	74,174,525,569
- Equity attributable to non-controlling ordinary shareholders	65,960,886,731	?	74,174,525,569
- Equity attributable to non-controlling shareholders of other equity instruments	-	?	-

????

(5) Accrued interest on holders of other equity instruments

In 2022, as the above-mentioned issued renewable corporate bonds are cumulative otherequity instruments, the Company accrued interest of RMB 530,695,890 on renewablecorporate bonds from undistributed profits and paid interest of RMB 533,600,000 onrenewable corporate bonds.

38 Capital reserve

Item	Note	Share premium	?	Other capital reserves	?	Total
?	?	?	?	?	?	?
Balance at the beginning of the year	?	53,380,787,828	?	536,821,266	?	53,917,609,094
Add: Changes in shareholding ratio of subsidiaries	?	1,135,268,806	?	-	?	1,135,268,806
Equity-settled share-based payment	XI	-	?	654,336,707	?	654,336,707
Other movements in equity of associates	V.10	-	?	274,685,689	?	274,685,689
Cancellation of treasury shares	?	(641,811,942)	?	-	?	(641,811,942)
Others	?	(42,952,736)	?	(78,631,226)	?	(121,583,962)
?	?	?	?	?	?	?
Balance at the end of the year	?	53,831,291,956	?	1,387,212,436	?	55,218,504,392

????

39 Treasury shares

Item	Balance at the beginning of the year	?	Additions during the year	?	Reductions during the year	?	Balance at the end of the year
?	?	?	?	?	?	?	?
Treasury shares	3,415,768,207	?	1,048,154,539	?	(955,720,835)	?	3,508,201,911

???

According to the Proposal of Repurchase of Certain Domestically Listed Foreign Shares (Bshares) by the Company deliberated on an item-by-item basis and adopted in the 39thmeeting of the ninth session of the Board of Directors held on 30 March 2022 and the 2021annual general meeting of shareholders held on 28 April 2022, the Company repurchased itsshares through centralised price bidding transactions with a designated securities account forrepurchase. The Company has repurchased the first batch of shares on 27 June 2022. Bythe delivery date 2 September 2022, the Company repurchased 243,229,361 B shares intotal by paying total consideration of RMB 856,052,540. On 20 September 2022, theCompany completed the repurchase and cancellation procedures at China SecuritiesDepository and Clearing Corporation Limited Shenzhen Branch. The shortfall between thecancelled treasury shares and the share capital of RMB 612,823,179 is deducted fromCapital reserve - Share premium.

According to the Proposal of Repurchase of Certain Public Shares by the Companydeliberated and adopted in the thirty-first meeting of the ninth session of the Board ofDirectors meeting held on 27 August 2021, the Company is allowed to use its own funds torepurchase certain of its shares through centralised price bidding transactions. The Companyrepurchased the shares for the first time on 2 September 2021. The Company hasrepurchased its shares by centralised price bidding transactions with a designated securitiesaccount for repurchase during 2022. The Company repurchased 39,580,919 A shares in totalby paying total consideration of RMB 192,101,999.

According to the Proposal of Repurchase and Cancellation of Certain Restricted Shares bythe Company deliberated and adopted in the fifth meeting of the tenth session of the Boardof Directors meeting held on 26 August 2022, the Company completed repurchase andcancellation of 6,153,700 restricted shares before 14 October 2022 at an averagerepurchased price of RMB 5.71/share. The corresponding reduction of the treasury sharesare RMB 35,142,463, the shortfall between the cancelled treasury shares and the sharecapital of RMB 28,988,763 is deducted against Capital reserve—Share premium.

In 2022, the Company recognised RMB 64,525,832 of restricted share dividends againstOther payables—the Repurchased obligation of restricted shares (Note V. 28) and Treasuryshares.

40 Other comprehensive income

Movements during the year

Item

Balance at the end of previous year attributable to shareholders of the Company

Before-tax amount

Less: Income tax expenses

Less: Amount transferred from other comprehensive income to profit or loss

Net-of-tax amount attributable to shareholders of the Company

Net-of-tax amount attributable to non-controlling interests

Less: Transfer of other comprehensive income to retained earnings

Balance at the end of the year attributable to shareholders of the Company

Items that will not be reclassified to profit or loss

34,424,335

(133,368,736)

(453,661)

(132,915,075)

22,781,941

(121,272,681)

Including: Other comprehensive income recognised under equity method

207,633,206

(53,367,649)

32,873,780

121,391,777

Changes in fair value of investments in other equity instruments

(173,208,871)

(80,001,087)

(453,661)

(79,547,426)

(10,091,839)

(242,664,458)

Items that may be reclassified to profit or loss

79,126,812

(1,011,198,322)

13,903,395

(1,031,622,161)

6,520,444

(952,495,349)

Including: Other comprehensive income recognised under equity method

(284,718)

63,317

(64,550)

127,867

(156,851)

Translation differences arising from translation of foreign currency financial statements

79,411,530

(1,011,261,639)

13,967,945

(1,031,750,028)

6,520,444

(952,338,498)

Total

113,551,147

(1,144,567,058)

(453,661)

13,903,395

(1,164,537,236)

6,520,444

22,781,941

(1,073,768,030)

41 Surplus reserve

Item	Balance at the beginning of the year	?	Additions during the year	?	Others changes during the year	?	Balance at the end of the year
?	?	?	?	?	?	?	?
Statutory surplus reserve	2,599,918,896	?	348,186,351	?	3,287,378	?	2,951,392,625
Discretionary surplus reserve	289,671,309	?	-	?	-	?	289,671,309
?	?	?	?	?	?	?	?
Total	2,889,590,205	?	348,186,351	?	3,287,378	?	3,241,063,934

????

42 Retained earnings

Item	Note	2022	?	2021
?	?	?	?	?
Retained earnings at the beginning of the year (before adjustment)	?	37,106,514,799	?	15,509,794,622
Total adjustments for opening retained earnings (“+” for increase; “-” for decrease)		-	?	35,577,201
Retained earnings at the beginning of the year (after adjustment)	?	37,106,514,799	?	15,545,371,823
Add: Net profits for the year attributable to shareholders of the Company	?	7,550,877,790	?	25,960,751,646
Less: Appropriation for statutory surplus reserve	?	348,186,351	?	439,649,657
Interest on holders of other equity instruments	V.37	530,695,890	?	533,600,000
Dividends to ordinary shares	?	7,958,923,130	?	3,476,073,919
Transfer of other comprehensive income to retained earnings	(a)	(19,494,563)	?	(49,714,906)
?	?	?	?	?
Retained earnings at the end of the year	?	35,839,081,781	?	37,106,514,799

????

According to the Annual Shareholders’ Meeting for 2021 held on 28 April 2022, the Companydistributed cash dividends to shareholders of A shares and B shares on 30 May 2022 (Ashares) and 1 June 2022 (B shares), with RMB 2.1 (2021: RMB 1) every 10 shares and aprofit distribution amount of RMB 7,961,342,043. Considering the turnover rate, thecorresponding dividends of the expected non-exercisable portions of restricted shares areRMB 2,418,913 with a profit distribution of RMB 7,958,923,130 (2021: RMB 3,476,073,919).

As at 31 December 2022, the consolidated retained earnings attributable to the Companyincluded appropriation to surplus reserves made by the Company’s subsidiaries amountingto RMB 6,206,465,315 (2021: RMB 5,488,720,290).

(a) The amounts both transferred from other comprehensive income to retained earnings

which is associates’ gains from disposal of other equity instrument investmentsincluded in retained earnings and changes in the fair value of other equity instrumentinvestments are carried out to retained earnings in 2022 are RMB 19,494,563 (2021:

RMB 49,714,906).

43 Operating income and operating costs

?	2022			?	2021
Item	Income	?	Cost	?	Income	?	Cost
?	?	?	?	?	?	?	?
Principal activities	174,113,214,324	?	154,442,890,090	?	217,251,896,977	?	155,258,379,475
Other operating activities	4,300,516,855	?	3,087,676,062	?	3,783,821,035	?	2,040,446,306
?	?	?	?	?	?	?	?
Total	178,413,731,179	?	157,530,566,152	?	221,035,718,012	?	157,298,825,781
?	?	?	?	?	?	?	?
Including: Revenue from contracts with customers	177,667,655,331	?	157,352,470,042	?	220,166,407,207	?	157,114,068,547
Other income - Leases	746,075,848	?	178,096,110	?	869,310,805	?	184,757,234

????

Information on income of principal activities has been included in Note XIV.

Revenue and the related costs of the Group's sales before intended use are as follows:

Relating to ordinary activities:

?	2022	?	2021

Operating income	1,407,856,936	?	1,725,918,507
Operating costs	1,514,976,278	?	1,313,600,486

44 Taxes and surcharges

?	2022	?	2021
?	?	?	?
Property tax	561,061,660	?	502,150,698
City maintenance and construction tax	268,999,607	?	386,889,711
Education surcharges and local education surcharges	193,572,818	?	278,848,244
Stamp duty	167,033,833	?	168,092,921
Land use tax	50,378,527	?	49,797,281
Others	34,124,894	?	38,426,971
?	?	?	?
Total	1,275,171,339	?	1,424,205,826

????

45 Selling and distribution expenses

?	2022	?	2021
?	?	?	?
Warranty provisions	2,390,095,031	?	3,417,085,420
Staff costs	1,112,021,277	?	1,350,848,641
Share-based payments	97,853,078	?	75,191,185
Others	633,320,911	?	641,464,732
?	?	?	?
Total	4,233,290,297	?	5,484,589,978

????

46 General and administrative expenses

?	2022	?	2021
?	?	?	?
Staff costs	3,251,030,370	?	3,810,075,453
Repair expense	68,934,663	?	94,713,646
Depreciation and amortisation	971,573,303	?	931,978,993
Share-based payments	238,162,832	?	218,406,816
Others	1,717,935,838	?	1,638,198,681
?	?	?	?
Total	6,247,637,006	?	6,693,373,589

????

47 Research and development expenses

?	2022	?	2021
?	?	?	?
Staff costs	4,601,448,025	?	5,065,671,981
Material expenses	1,907,254,468	?	1,678,488,408
Depreciation and amortisation	2,000,893,037	?	1,913,242,133
Share-based payments	269,690,937	?	241,880,815
Others	2,321,482,210	?	1,717,142,990
?	?	?	?
Total	11,100,768,677	?	10,616,426,327

????

48 Financial expenses

?	2022	?	2021
?	?	?	?
Interest expenses from loans	4,033,749,371	?	5,219,339,546
Less: Borrowing costs capitalised	461,537,933	?	352,561,213
Interest income from bank deposits	(1,483,022,892)	?	(1,050,431,325)
Exchange losses / (gains)	258,458,498	?	(248,019,022)
Other financial expenses	97,483,531	?	114,051,216
?	?	?	?
Total	2,445,130,575	?	3,682,379,202

????

The interest rate per annum, at which the borrowing costs were capitalised by the Group,was 3.25% - 4.25% (2021: 0.76% - 3.24%) for the year.

49 Other income

?	2022	?	2021
?	?	?	?
Government grants related to assets	739,587,184	?	507,320,798
Government grants related to income	4,717,326,643	?	1,567,752,188
Others	28,615,497	?	17,692,742
?	?	?	?
Total	5,485,529,324	?	2,092,765,728

????

The amount of government subsidies related to income received by the Group in 2022 anddirectly included in other income was RMB 935,408,744.

50 Investment income

?	Note	2022	?	2021
?	?	?	?	?
Income from long-term equity investments accounted for using the equity method	V.10	528,103,680	?	1,245,036,895
Investment income from disposal of long-term equity investments	VI.1?	829,872,568	?	37,327,797
Dividend income from investments in other equity instruments	V.11	35,354,468	?	24,695,749
Including: Dividend income from investments in other equity instruments held at the balance sheet date	?	35,354,468	?	24,695,749
Investment income from disposal of financial assets held for trading	?	116,153,975	?	36,689,179
Investment income from disposal of debt investments	?	-	?	3,739,725
Gains from remeasurement of remaining equity interests to fair value upon loss of control	VI.1	4,266,631,856	?	-
Others	?	318,151,337	?	-
?	?	?	?	?
Total	?	6,094,267,884	?	1,347,489,345

????

51 Gains from changes in fair value

Item	2022	?	2021
?	?	?	?
Financial assets held for trading	159,344,584	?	84,966,963

????

52 Credit losses

Item	2022	?	2021
?	?	?	?
Accounts receivable	49,897,296	?	28,250,160
Other receivables	1,679,930	?	159,709
?	?	?	?
Total	51,577,226	?	28,409,869

????

53 Impairment losses

?	2022	?	2021
?	?	?	?
Impairment losses of inventories	6,975,372,718	?	3,437,630,440
Impairment losses of fixed assets	143,071,492	?	675,831,912
Impairment losses of construction in progress	29,768,263	?	83,037,514
Impairment losses of long-term equity investments	8,503,403	?	2,009,770
Impairment losses of goodwill	147,755,754	?	279,742,216
?	?	?	?
Total	7,304,471,630	?	4,478,251,852

????

54 Gains from asset disposals

Item	2022	?	2021	?	Amount recognised in extraordinary gain and loss in 2022
?	?	?	?	?	?
Gains from the disposal of assets held for sale	-	?	156,565,635	?	-
Gains / (losses) from disposal of fixed assets	7,963,317	?	(4,596,757)	?	7,963,317
Gains from disposal of intangible assets	-	?	29,726	?	-
Losses from disposal of construction in progress	-	?	(94,570)	?	-
Gains from disposal of right-of-use assets	3,002,239	?	1,601,757	?	3,002,239
?	?	?	?	?	?
Total	10,965,556	?	153,505,791	?	10,965,556

????

55 Non-operating income and non-operating expenses

(1) Non-operating income by item is as follows:

Item	2022	?	2021	?	Amount recognised in extraordinary gain and loss in 2022
?	?	?	?	?	?
Government grants	1,751,445	?	2,464,320	?	1,751,445
Others	161,491,412	?	129,143,626	?	161,491,412
?	?	?	?	?	?
Total	163,242,857	?	131,607,946	?	163,242,857

????

Government grants recognised in profit or loss for the current period

Item	2022	?	2021
?	?	?	?
Policy incentives and others	1,751,445	?	2,464,320

???

(2) Non-operating expenses

?	2022	?	2021	?	Amount recognised in extraordinary gain and loss in 2022
?	?	?	?	?	?
Donations provided	28,491,697	?	4,901,023	?	28,491,697
Losses from scrapping of non-current assets	17,322,542	?	18,096,305	?	17,322,542
Others	41,435,304	?	32,217,774	?	41,435,304
?	?	?	?	?	?
Total	87,249,543	?	55,215,102	?	87,249,543

????

56 Income tax expenses

?	Note	2022	?	2021
?	?	?	?	?
Current tax expense based on tax law and regulations	?	1,675,605,623	?	4,072,640,975
Changes in deferred tax assets/liabilities	(1)	112,788,484	?	115,330,429
?	?	?	?	?
Total	?	1,788,394,107	?	4,187,971,404

????

(1) The analysis of changes in deferred tax assets/liabilities is set out below:

?	2022	?	2021
?	?	?	?
Origination and reversal of temporary differences	112,788,484	?	115,330,429

????

(2) Reconciliation between income tax expenses and accounting profit:

?	2022	?	2021
?	?	?	?
Profit before taxation	51,218,939	?	35,084,376,259
Expected income tax expenses at tax rate of 15%	7,682,841	?	5,262,656,439
Add: Effect of different tax rates applied by subsidiaries	(14,751,718)	?	54,451,529
Effect of non-deductible costs, expenses and losses	315,429,605	?	236,708,708
Tax effect of weighted deduction and tax preference	(2,652,168,644)	?	(1,428,917,005)
Utilisation of prior year tax losses	(49,695,309)	?	(1,690,731,054)
Tax effect of deductible losses of deferred tax assets not recognised	4,456,877,895	?	815,217,892
Tax effect of deductible temporary differences of deferred tax assets not recognised	(274,980,563)	?	1,006,609,982
Effects of tax rate changes on deferred tax	-?	?	(68,025,087)
?	?	?	?
Income tax expenses	1,788,394,107	?	4,187,971,404

????

In accordance with the Announcement of the Ministry of Finance, the State TaxationAdministration and the Ministry of Science and Technology on Increasing Efforts for Pre-taxDeduction to Support Scientific and Technological Innovation (Announcement [2022] No.28of the Ministry of Finance and the State Taxation Administration), high-tech enterprises areallowed to deduct the full amount of equipment and appliances newly purchased during theperiod from 1 October 2022 to 31 December 2022 from the taxable income amount on a one-off basis in the current year and allowed to conduct 100% weighted deduction before tax.

57 Basic earnings per share and diluted earnings per share

Basic earnings per share is calculated as dividing consolidated net profit attributable toordinary shareholders of the Company by the weighted average number of ordinary sharesoutstanding. The Group does not have any potential dilutive ordinary shares for the listedyears.

?	2022	?	2021
?	?	?	?
Consolidated net profit attributable to shareholders of the Company	7,550,877,790	?	25,960,751,646
Less: Current interest of other equity instruments	530,695,890	?	533,600,000
Less: Current dividends of restricted shareholders	64,525,832	?	31,234,036
Consolidated net profit attributable to ordinary shareholders of the Company	6,955,656,068	?	25,395,917,610
Weighted average number of ordinary shares outstanding (shares)	37,502,641,911	?	35,704,986,088
Basic earnings per share (RMB/share)	0.19	?	0.71

????

Weighted average number of ordinary shares is calculated as follows:

?	2022	?	2021
?	?	?	?
Issued ordinary shares at the beginning of the year	37,638,356,849	?	34,448,398,830
Add: Weighted average number of ordinary shares issued in current period	-	?	1,330,137,380
Less: Weighted average number of ordinary shares repurchased in current period	135,714,938	?	73,550,122
?	?	?	?
Weighted average number of ordinary shares at the end of the year	37,502,641,911	?	35,704,986,088

???

58 Supplementary information on cash flow statement

(1) Supplement to cash flow statement

?	2022	2021
?	?	?
(a) Reconciliation of net (loss) / profit to cash flows from operating activities:	?	?
?	?	?
Net (loss) / profit	(1,737,175,168)	30,896,404,855
Add: Credit losses	51,577,226	28,409,869
Impairment loss	7,304,471,630	4,478,251,852
Depreciation of fixed assets, investment properties and right-of-use assets	33,422,031,705	33,432,161,074
Amortisation of intangible assets	995,315,014	1,185,263,603
Amortisation of long-term deferred expenses	83,058,206	130,732,527
Gains from disposal of fixed assets, intangible assets, and other long-term assets	(10,965,556)	(154,943,108)
Losses from scrapping of fixed assets and intangible assets	15,873,895	18,096,305
Financial expenses	4,070,314,610	4,521,336,008
Gains from changes in fair value	(159,344,584)	(84,966,963)
Investment income	(6,094,267,884)	(1,347,489,345)
Share-based payments	649,427,866	640,692,637
Change in deferred income	(1,259,742,279)	2,177,609,983
Change in deferred tax assets	25,329,486	14,705,564
Change in deferred tax liabilities	136,748,088	100,681,820
Increase in inventories	(3,360,776,944)	(13,376,494,050)
Decrease / ( increase) in operating receivables	7,975,232,270	(8,905,074,070)
Increase in operating payables	914,859,724	8,943,309,995
?	?	?
Net cash flows from operating activities	43,021,967,305	62,698,688,556

???

(b) Change in cash and cash equivalents:	?	?
?	?	?
?	2022	2021
?	?	?
Cash and cash equivalents at the end of the year	64,382,037,764	76,623,486,083
Less: Cash and cash equivalents at the beginning of the year	76,623,486,083	68,064,736,371
?	?	?
Net (decrease) / increase in cash and cash equivalents	(12,241,448,319)	8,558,749,712

????

(2) Information on acquisition or disposal of subsidiaries during the current year:

Information on acquisition of subsidiaries:

?	?	2022	?	2021
?	?	?	?	?
Cash or cash equivalents paid during the year for acquiring subsidiaries during the year	?	-	?	(5,916,812)
Less: Cash and cash equivalents held by acquired subsidiaries	?	-	?	(3,101,277)
?	?	?	?	?
Net payment for acquisition of subsidiaries	?	-	?	(2,815,535)

Information on disposal of subsidiaries:

?	?	2022	?	2021
?	?	?	?	?
Cash or cash equivalents received during the year for disposing of subsidiaries during the year	?	1,248,072,000	?	-
Less: Cash and cash equivalents held by acquired subsidiaries	?	311,313,078	?	-
?	?	?	?	?
Net cash received for disposing of subsidiaries	?	936,758,922	?	-

?	?	2022	?	2021
?	?	?	?	?
Cash or cash equivalents received during the year for disposing of subsidiaries during the year	?	-	?	88,028,400
Less: Cash and cash equivalents held by acquired subsidiaries	?	144,689,766	?	248,916,397
?	?	?	?	?
Net payment for disposal of subsidiaries	?	(144,689,766)	?	(160,887,997)

(3) Details of cash and cash equivalents

?	2022	?	2021
?	?	?	?
Cash on hand	896,267	?	451,975
Bank deposits available on demand	64,378,531,680	?	76,549,790,015
Other monetary funds available on demand	2,609,817	?	73,244,093
?	?	?	?
Closing balance of cash and cash equivalents	64,382,037,764	?	76,623,486,083

????

Note: The cash and cash equivalents disclosed above do not include the interest accrued

on bank deposits at the end of the period and the use of other currency funds subjectto restrictions.

59 Assets with restrictive ownership titles or right of use

Item	Balance at the beginning of the year	?	Additions during the year	Decreases during the year	?	Balance at the end of the year	Reason for restriction
?	?		?	?		?	?
Cash at bank and on hand	4,152,705,165		2,382,241,772	(2,507,588,393)		4,027,358,544	Mainly deposits, pledged for drawing bills payable
Bills receivable	23,902,855		28,239,380	(23,902,855)		28,239,380	Endorsed with resource and pledged for drawing bill
Investment properties	41,247,205		-	(1,529,204)		39,718,001	Mortgaged as collateral
Fixed assets	171,435,160,686		2,484,511,825	(33,500,815,134)		140,418,857,377	Mortgaged as collateral
Construction in progress	316,234,570		17,494,722,323	(15,759,854,976)		2,051,101,917	Mortgaged as collateral
Intangible assets	1,623,510,499		-	(162,384,713)		1,461,125,786	Mortgaged as collateral
?	?		?	?		?	?
Total	177,592,760,980		22,389,715,300	(51,956,075,275)		148,026,401,005	?

????

60 Leases

(1) As a lessee

Right-of-use assets

?	Plant & buildings	?	Equipment	?	Others	?	Total
?	?	?	?	?	?	?	?
Cost	?	?	?	?	?	?	?
Balance at the beginning of the year	567,247,967	?	107,357,735	?	192,885,015	?	867,490,717
Additions during the year	229,346,204	?	15,740,262	?	5,538,270	?	250,624,736
Decrease due to disposal of subsidiaries	(49,677,267)	?	-	?	-	?	(49,677,267)
Decreases during the year	(80,820,628)	?	(107,136,932)	?	-	?	(187,957,560)
Translation differences	20,192,444	?	-	?	-	?	20,192,444
?	?	?	?	?	?	?	?
Balance at the end of the year	686,288,720	?	15,961,065	?	198,423,285	?	900,673,070
?	?	?	?	?	?	?	?
Accumulated depreciation	?	?	?	?	?	?	?
Balance at the beginning of the year	82,687,553	?	22,013,731	?	9,625,196	?	114,326,480
Charge for the year	146,686,766	?	4,393,747	?	10,482,467	?	161,562,980
Decrease due to disposal of subsidiaries	(15,326,483)	?	-	?	-	?	(15,326,483)
Decreases during the year	(24,030,120)	?	(25,897,396)	?	-	?	(49,927,516)
Translation differences	2,916,663	?	-	?	-	?	2,916,663
?	?	?	?	?	?	?	?
Balance at the end of the year	192,934,379	?	510,082	?	20,107,663	?	213,552,124
?	?	?	?	?	?	?	?
Provision for impairment	?	?	?	?	?	?	?
Balance at the beginning of the year and at the end of the year	-	?	-	?	-	?	-
?	?	?	?	?	?	?	?
?	?	?	?	?	?	?	?
Carrying amount	?	?	?	?	?	?	?
Carrying amount at the end of the year	493,354,341	?	15,450,983	?	178,315,622	?	687,120,946

?	?	?	?	?	?	?	?
Carrying amount at the beginning of the year	484,560,414	?	85,344,004	?	183,259,819	?	753,164,237

???

Lease liabilities

Item	Note	31 December 2022	?	1 January 2022
?	?	?	?	?
Long-term lease liabilities	?	656,888,776	?	761,918,319
Less: lease liabilities due within one year	V.29	118,302,766	?	92,788,055
?	?	?	?	?
Total	?	538,586,010	?	669,130,264

???

In 2022, the Group, as the lessee, chooses the simplified treatment method for short-termlease expenses, low-value asset lease expenses and the amount of income obtained fromsublease of right-of-use assets is not significant.

VI. Change of consolidation scope

1 Disposal of subsidiaries

Disposal of investments in subsidiaries through a single transaction resulting in loss of control

Name of enterprise

Disposal price

Shareholding being disposed (%)

Disposal method

Date of losing control

Basis for determining date of losing control

Difference between consideration received and the related share of net assets in consolidated financial statements

Proportion of remaining shareholding on the date of losing control

Carrying amount of remaining equity interests on the date of losing control

Fair value of remaining equity interests on the date of losing control

Gain or loss from remeasurement of remaining equity interests to fair value

Method and key assumptions for determining the fair value of remaining equity interests

Investment income or loss transferred from other comprehensive income related to previous equity investments in subsidiaries

BOE Digital Technology Co., Ltd.

129,500,000

51%

Equity replacement

31 August 2022

Equity delivery and completing changes in the Articles of Association

62,130,573

15%

19,794,533

38,081,355

18,286,822

Asset appraisal report

SES Imagotag SA Co., Ltd.

1,248,072,000

9.51%

Transactions within the secondary market

28 November 2022

Completing re-election of members of the Board of Directors

753,774,050

32.56%

623,492,148

4,871,837,182

4,248,345,034

The stock closing price when control is lost

13,967,945

1) The Group previously had actual control over BOE Digital Technology Co., Ltd. ("Digital Technology") through its subsidiaries SES and

Wisdom IOT. During the year, SES made contributions to BOE Art Cloud Technology Co., Ltd.which is an associate of the Group with its51% equity interest in Digital Technology. The equity delivery was completed on 31 August 2022. Then the Group has lost control ofDigital Technology. In the consolidated financial statements, the long-term equity investment is re-measured at its fair value at the datewhen control is lost.

2) BOE Smart Retail (Hong Kong) Co., Ltd. (hereinafter referred to as "Smart Retail"), a subsidiary of the Group, sold its 9.51% of the

shares of SES on November 25, 2022. After the sale was completed, Smart Retail's shareholding percentage in SES dropped from

42.07% to 32.56%. On 28 November 2022, Paris time, SES convened an extraordinary Board meeting to re-electing members of theBoard of Directors, therefore, Smart Retail no longer has a majority vote on the Board of Directors of SES, the Group has lost controlof SES. In the consolidated financial statements, the long-term equity investment is re-measured at its fair value at the date whencontrol is lost.

2 Other reasons for change of consolidation scope

During the year, the Company newly established three tier-one subsidiaries, namely BOE Environmental Energy Technology Co., Ltd.,Chengdu BOE Display Technology Co., Ltd., and Beijing BOE Chuangyuan Technology Co., Ltd. ("Chuangyuan Technology").

VII. Interests in other entities

1 Interests in subsidiaries

(1) Composition of the Group

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

Beijing BOE Optoelectronics Technology Co., Ltd.

Beijing, China

Research and development (“R&D”), design and manufacturing of TFT-LCD

USD 649,110,000

100%

Founded by investment

Chengdu BOE Optoelectronics Technology Co., Ltd.

Chengdu, China

R&D, design, manufacturing, and sale of new display devices and components

RMB 25,000,000,000

100%

Business combinations involving entities not under common control

Hefei BOE Optoelectronics Technology Co., Ltd.

Hefei, China

Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products

RMB 9,000,000,000

100%

Business combinations involving entities not under common control

Beijing BOE Display Technology Co., Ltd.

Beijing, China

Development of TFT-LCD, manufacturing and sale of LCD

RMB 17,882,913,500

97.17%

2.83%

Founded by investment

Hefei Xinsheng Optoelectronics Technology Co., Ltd.

Hefei, China

Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products

RMB 19,500,000,000

99.97%

0.03%

Business combinations involving entities not under common control

Ordos Yuansheng Optoelectronics Co., Ltd.

Ordos, China

Manufacture and sales of AM-OLED products and auxiliary products

RMB 11,804,000,000

100%

Founded by investment

Chongqing BOE Optoelectronics Technology Co., Ltd.

Chongqing, China

R&D, production and sales of semi-conducting display devices, complete machine and related products; import & export of goods and technology consulting

RMB 19,226,000,000

100%

Business combinations involving entities not under common control

Fuzhou BOE Optoelectronics Technology Co., Ltd.

Fuzhou, China

Investment, construction, R&D, production and sales of the relevant products of thin film transistor LCD and its auxiliary products (separate business site); self-support and agency for the import and export of various goods and technologies, except those goods and technologies that are restricted by the country or prohibited from import and export; business management consulting and services; property leases; machinery and equipment leases; technology development, transfer, consulting and services related to LCD products (For business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of the relevant government authorities).

RMB 17,600,000,000

83.24%

Business combinations involving entities not under common control

Beijing BOE Video Technology Co., Ltd. (“BOE Video”)

Beijing, China

Investment platform, sales of LCD

RMB 4,424,095,800

100%

Founded by investment

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

Beijing BOE Vacuum Electronics Co., Ltd.

Beijing, China

Manufacture and sale of vacuum electronic products

RMB 33,250,000

57.89%

Founded by investment

Beijing BOE Vacuum Technology Co., Ltd.

Beijing, China

Manufacture and sale of electronic tubes

RMB 32,000,000

100%

Founded by investment

Beijing Yinghe Century Co., Ltd.

Beijing, China

Management of engineering projects; real estate development; public parking lot for motor vehicles service; market survey

RMB 233,105,200

100%

Founded by investment

BOE Optical Science and technology Co., Ltd.

Suzhou, China

R&D, production and sales of LCD, back light for display and related components

RMB 826,714,059

95.17%

Founded by investment

BOE Hyundai LCD (Beijing) Display Technology Co., Ltd.

Beijing, China

Development, manufacture and sale of liquid display for mobile termination

USD 5,000,000

75%

Founded by investment

BOE (Hebei) Mobile Technology Co., Ltd.

Langfang, China

Manufacture and sale of mobile flat screen display technical products and related services

RMB 1,358,160,140

100%

Founded by investment

Beijing BOE Energy Technology Co., Ltd.

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

RMB 1,242,690,058

68.40%

Founded by investment

Beijing BOE Multimedia Technology Co., Ltd.

Beijing, China

Technology development, technology transfer, technology consulting and technology services; sales of computer software, hardware and auxiliary equipment, digital video and audio technology products, electronic digital products, video telephone, mobile phones and spare parts, hardware (excluding electric bicycle), household appliances, photographic equipment, sporting goods, Class I medical devices, lamps, stationery, cosmetics, bathroom appliances, knitwear and textile, clothing, daily necessities, timepieces, glasses, toys and food; equipment maintenance; import and export of goods; basic software services; application software service; machinery and equipment leases; design, production, agency and publication of advertisements. (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.)

RMB 400,000,000

100%

Founded by investment

Beijing BOE Life Technology Co., Ltd.

Beijing, China

Technology promotion services, property management, sales of electronic products

RMB 24,000,000

100%

Founded by investment

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

Ordos City Haosheng Energy Investment Co., Ltd.

Ordos, China

Energy investment

RMB 30,000,000

100%

Founded by investment

BOE Semi-conductor Co., Ltd.

Beijing, China

Processing, manufacturing and sales of precision electronic components, semi-conductor devices, micro modules, microelectronic devices and electronic materials; import & export of goods

RMB 11,250,000

84%

Founded by investment

BOE Optoelectronics Holding Co., Ltd.

Hong Kong, China

British Virgin Islands

Investment holding

USD 1,000,000,000

100%

Founded by investment

BOE (Korea) Co., Ltd.

Korea

Wholesale and retail trade

KRW 95,000,000

100%

Founded by investment

BOE Healthcare Investment & Management Co., Ltd.

Beijing, China

Investment management and project investment

RMB 7,300,000,000

100%

Business combinations involving entities not under common control

Beijing Matsushita Colour CRT Co., Ltd.

Beijing, China

Colour TV set, display tube, colour RPTV projection tube and materials of electronic components; property management and parking services, etc.

RMB 325,754,049

88.80%

Business combinations involving entities not under common control

Hefei BOE Display Technology Co., Ltd.

Hefei, China

Investment, R & D and production of products related to TFT-LCD and the supporting facility

RMB 24,000,000,000

8.33%

Business combinations involving entities not under common control

Beijing BOE Technology Development Co., Ltd.

Beijing, China

Development, transfer, consulting and service of technology

RMB 1,000,000

100%

Founded by investment

Hefei BOE Zhuoyin Technology Co., Ltd.

Hefei, China

Investment, construction, R&D, production and sales of products related to OLED display device and auxiliary products

RMB 800,000,000

75%

Founded by investment

Beijing BOE Real Estate Co., Ltd.

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

RMB 55,420,000

70%

Founded by investment

Beijing BOE Marketing Co., Ltd.

Beijing, China

Sales of communication equipment, hardware & software of computer and peripheral units, electronic products, equipment maintenance; development, transfer, consulting and service providing of technologies; import & export of goods and technologies, agency of import & export; manufacturing consignment of electronic products and LCD devices

RMB 50,000,000

100%

Founded by investment

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

Beijing Zhongxiangying Technologies Co., Ltd.

Beijing, China

Technology promotion services, property management, sales of electronic products

RMB 109,767,000

91.10%

Founded by investment

Yunnan Invensight Optoelectronics Technology Co., Ltd.

Kunming, China

Development, promotion, transfer, consultation and services of display technology; computer software, hardware and network system services; the construction, operations and management of e-commerce platform; product design; conference services; undertaking exhibitions and presentation activities; computer animation design; production, R&D and sales of OLED microdisplays and AR/VR whole widget; warehousing services; Project investments and management of the invested projects; import and export of goods and technologies; property leases, machinery and equipment leases

RMB 3,040,000,000

79.10%

Founded by investment

Mianyang BOE Optoelectronics Technology Co., Ltd.

Mianyang, China

R&D, production and sales of flexible AMOLED, the products are mainly  used in smart phones, wearable devices, car display, AR/VR, etc.

RMB 26,000,000,000

83.46%

Business combinations involving entities not under common control

Beijing BOE Sensing Technology Co., Ltd.

Beijing, China

Formation of X-ray sensors, microfluidic chips, biochemical chips, gene chips, security sensors, microwave antennas, biosensors, logistics network technology and other semiconductor sensors, technology testing, technical consulting, technical services, technology transfer

RMB 4,651,482,400

100%

Founded by investment

Wuhan BOE Optoelectronics Technology Co., Ltd.

Wuhan, China

Investing, researching, manufacturing and selling TFT-LCD products and accessory products

RMB 26,000,000,000

47.14%

Business combinations involving entities not under common control

Chongqing BOE Display Technology Co., Ltd. (“Chongqing BOE Display”)

Chongqing, China

R&D, manufacture and sales of semiconductor display devices, whole widget and relevant products, import and export of goods and technical consulting

RMB 21,124,724,750

38.46%

Business combinations involving entities not under common control

Nanjing BOE Display Technology Co., Ltd.

Nanjing, China

R&D, production and sale of TFT-LCD panels, colour filters and LCD whole-widget modules; providing products and business-related services, as well as other business activities related to the above; import and export of proprietary and agent commodities and technologies

RMB 17,500,000,000

80.83%

Business combinations involving entities not under common control

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

Hefei BOE Xingyu Technology Co., Ltd. (“Hefei Xingyu”)

Hefei, China

R&D, production and sales of Mini LED backlight components and Mini LED display module components

USD 115,380,000

63.77%

Founded by investment

Fuzhou BOE Display Technology Co., Ltd. (“Fuzhou BOE Display”)

Fuzhou, China

R&D, production and sales of semiconductor display device-related products and related products; import or export of goods or technology; display device and component, other electronic components, and technology development, technology transfer, technical consulting, related fields related to display devices and electronic products, technical services; business management consulting; property management; house rental; machinery and equipment rental

RMB 50,000,000

43.46%

Business combinations involving entities not under common control

BOE Innovation Investment Co., Ltd.

Beijing, China

Project investment and investment management

RMB 800,000,000

100%

Founded by investment

Chengdu BOE Display Techlogy Co., Ltd.

Chengdu, China

General businesses: technical services, technology development, technology consulting, technical exchange, technology transfer, technology promotion; manufacturing of display devices [operations of branches]; sale of display devices; manufacturing of electronic components [operations of branches]; wholesale of electronic components; manufacturing of others electronic devices [operations of branches]; import and export of goods; import and export of technology; business management consulting; property management; non-residential real estate leasing; machinery and equipment leasing. (Except for business activities subject to approval in accordance with laws and regulations, operations are conducted in accordance with the law and business license.)

RMB 10,000,000

52.63%

Founded by investment

BOE Mled Technology Co., Ltd.

Beijing, China

Technology development, technology consulting, technology transfer, technology services; software development; basic software services; application software services; computer system services; internet data services (data centres in Internet data services, excluding cloud computing data centres with a PUE over 1.4); information processing and storage support services; general construction contracting, professional contracting, labour subcontracting; installation, maintenance and lease of equipment; literary and artistic creation; computer animation design; product design; enterprise management; enterprise management consulting; sales of computer, software and auxiliary equipment, electronic products.

RMB 950,000,000

100%

Founded by investment

BOE Smart Technology Co., Ltd.

Beijing, China

Provision of hardware and software integrated system solutions for the IoT market segment; intelligent city, intelligent transport, intelligent finance, intelligent park and the display terminal products such as the intelligent all-in-one machines

RMB 6,521,250,000

100%

Founded by investment

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

BOE Education Technology Co., Ltd.

Beijing, China

Technology development, technology consulting, technology services, technology transfer and technology promotion; software development; basic software services; application software services; computer system services; sales of stationery items, sporting goods, household appliances and electronic products; business management; market research; economic and trade consulting; business management consulting; education consulting; public relations services; corporate image planning; exhibition and presentation activities; conference services; research and experimental development in the natural sciences; research and experimental development in engineering and technology; agricultural scientific research and experimental development; medical research and experimental development; copyright agency; arts and crafts creation services. (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.)

RMB 55,000,000

100%

Founded by investment

Dongfang Chengqi (Beijing) Business Technology Co., Ltd.

Beijing, China

Technology development, technology services; application software services; basic software services; sales of daily necessities, fresh fruit, fresh vegetables, primary edible agricultural products, household appliances, electronic products and sporting goods; trade agency; translation services; conference services; organisation of cultural and artistic interchange activities (excluding shows); exhibition and presentation activities; design, production, agency and publication of advertisements; enterprise management; market research; real estate information consulting; warehousing services; public relations services; health management, health consulting (excluding diagnosis and treatment activities subject to the approval); ticket agency; hotel booking agency; airline ticket sales agency; railway and passenger ticket agency services; tourism consulting; hotel management; automobile leases; property management; public parking services for motor vehicle; landscaping management; cleaning services; import and export of goods, import and export agency, import and export of technologies; car decoration; operation of sporting events (excluding high-risk sports); accommodation (branch operation only); catering services (branch operation only); beauty services, hairdressing services (branch operation only); medical services (branch operation only); family services (branch operation only); inbound tourism business; sales of food; internet information services. (Market participants independently select the business activities and carry out the business activities in accordance with laws and regulations; sales of food and business activities subject to approval in accordance with laws and regulations, operations may be conducted only with the approval of relevant government authorities; business activities prohibited and restricted by the industrial policies of the state and the city.)

RMB 10,000,000

100%

Founded by investment

Shareholding (or similar equity interest) percentage

Name of the subsidiary

Principal place of business

Registered place

Business nature

Registered capital

Direct

Indirect

Acquisition method

BOE Environmental Energy Technology Co., Ltd.

Beijing, China

Technology development, technology consulting, technology transfer, technology promotion, technical services, technical testing of energy-saving technology, environmentally friendly new energy technology, environmental protection equipment, solar electrical energy generation, building integrated PV, electric power, power station operations and maintenance; software development; Internet data services (data centers for Internet data services, excluding cloud computing data centres with a PUE over 1.4); information processing and storage support services (data centers for information processing and storage support services, excluding cloud computing data centres with a PUE over 1.4); contract energy management; water pollution treatment; air pollution control; solid waste treatment; soil pollution treatment and restoration services; environmental protection monitoring; installation, maintenance, leasing of equipment; professional design services; property management; sale of special equipment for environment protection, lighting equipment, electronic products, machinery and equipment, electrical equipment, instruments, hardware products, computers, software and auxiliary equipment, chemical products (excluding licensed chemical products); import and export of goods; import and export of technology; import and export agents; power supply business; construction engineering design; electrical installation services; various engineering and construction activities; EPC of house construction and municipal infrastructure projects; construction labour subcontracting.

RMB 100,000,000

100%

Founded by investment

Chengdu BOE Display Sci-tech Co., Ltd. (formerly known as “Chengdu CEC Panda FPD Technology Co., Ltd.”)

Chengdu, China

R&D, production and sales of TFT-LCD panels and modules, liquid crystal display monitors, televisions, instruments, machinery equipment and accessories as well as provision of technical services; foreign trade in form of import and export of goods and technology

RMB 21,550,000,000

35.03%

Business combinations involving entities not under common control

Beijing BOE Chuangyuan Technology Co., Ltd.

Beijing, China

Manufacturing of display devices; sale of display devices; manufacturing of electronic components; wholesale of electronic components; retail of electronic components; technical services, technology development, technology consulting, technical exchange, technology transfer, technology promotion; import and export of goods; import and export of technology; business management consulting; property management; machinery and equipment leasing; manufacturing of other electronic devices. (Except for business activities subject to approval in accordance with laws and regulations, operations are conducted in accordance with the law and business license.)

RMB 10,000,000

79.31%

Founded by investment

The Company signed an agreement of acting in concert with Hefei Core Screen IndustrialInvestment Fund (Limited Partnership) on 23 January 2019. Hefei Core Screen IndustrialInvestment Fund (Limited Partnership) agreed to act as a person acting in concert accordingto the wishes of the Company, and exercised the voting rights unconditionally and irrevocablyin accordance with the opinions of the Company. Therefore, the Company’s voting right ratioto Hefei Display Technology is 100%.

The Company signed an agreement of acting in concert with the shareholder of Wuhan BOE,Wuhan Airport Economic Development Zone Industrial Development Investment Group Co.,Ltd. and Hubei Changbai Industrial Investment Fund Partnership (Limited Partnership) on 25December 2018 and 5 February 2021. Wuhan Airport Economic Development ZoneIndustrial Development Investment Group Co., Ltd. and Hubei Changbai IndustrialInvestment Fund Partnership (limited Partnership) agreed to follow the Company’s will to actas the persons acting in concert, unconditionally and irrevocably exercising voting rights inaccordance with the opinions of the Company, the voting rights of the Company to WuhanBOE is 100%.

The Company signed an agreement of acting in concert with shareholders of ChongqingBOE Display, Chongqing Strategic Emerging Industry Equity Investment Fund Partnership(Limited Partnership) and Chongqing Yuzi Optoelectronic Industry Investment Co., Ltd. on 25December 2018. The Company signed an agreement of acting in concert with ChongqingJingping Equity Investment Fund Partnership (Limited Partnership) on 31 March 2021. TheCompany signed an agreement of acting in concert with Chongqing Jianxin Junheng PrivateEquity Fund Partnership (Limited Partnership) on 30 June 2021. Chongqing StrategicEmerging Industry Equity Investment Fund Partnership (Limited Partnership), ChongqingYuzi Optoelectronic Industry Investment Co., Ltd., Chongqing Jingping Equity InvestmentFund Partnership (Limited Partnership) and Chongqing Jianxin Junheng Private Equity FundPartnership(Limited Partnership) agreed to act as persons acting in concert according to thewill of the Company, and exercise the voting rights unconditionally and irrevocably inaccordance with the opinions of the Company. Therefore, the proportion of voting rights ofthe Company to Chongqing BOE is 100%.

The Company signed an agreement of acting in concert with shareholders of Fuzhou BOEDisplay, Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou UrbanConstruction Investment Group Co., Ltd. on 21 January 2019. Fuqing City Invested-Construction Investment Group Co., Ltd. and Fuzhou Urban Construction Investment GroupCo., Ltd. agreed to act as persons acting in concert according to the will of the Company, andexercise the voting rights unconditionally and irrevocably in accordance with the opinions ofthe Company. Therefore, the proportion of voting rights of the Company to Fuzhou BOEDisplay is 100%.

The Company signed a concerted action agreement with Chengdu Advanced ManufacturingIndustry Investment Co., Ltd., a shareholder of Chengdu Display Sci-tech, and ChengduAirport Xingcheng Investment Group Co., Ltd. on December 17, 2020. The Company signeda concerted action agreement with Nanjing Zhongdian Panda Information Industry GroupCo., Ltd. on December 31, 2020, and signed a concerted action agreement with ZhongdianFinancial Investment Holding Co., Ltd. on June 28, 2022, A concerted action agreement wassigned with Ya'an Yashuang Investment Co., Ltd. on November 30, 2022, and ChengduAdvanced Manufacturing Industry Investment Co., Ltd., Chengdu Airport XingchengInvestment Group Co., Ltd., Ya'an Yashuang Investment Co., Ltd., Nanjing Zhongdian PandaInformation Industry Group Co., Ltd., and Zhongdian Financial Investment Holding Co., Ltd.acted in concert with the wishes of the company, We unconditionally and irrevocablyexercise our voting rights in accordance with our company's opinions, so our company'svoting rights ratio in Chengdu Display Sci-tech is 96.75%.

(2) Material non-wholly owned subsidiaries

Name of the subsidiary	Proportion of ownership interest held by non-controlling interests	?	Llosses attributable to non-controlling interests for the year	?	Dividend declared to non-controlling shareholders during the year	?	Balance of non-controlling interests at the end of the year
?	?	?	?	?	?	?	?
Hefei Display Technology	91.67%	?	(3,618,751,980)	?	-	?	18,822,591,037
Mianyang BOE	16.54%	?	(380,623,218)	?	-	?	3,556,733,678
Wuhan BOE	52.86%	?	(2,002,557,008)	?	-	?	13,146,768,173
Chongqing BOE Display	61.54%	?	(201,271,791)	?	-	?	14,444,887,413

????

(3) Key financial information about material non-wholly owned subsidiaries

The following table sets out the key financial information of the above subsidiaries withoutoffsetting internal transactions, but with adjustments made for the fair value adjustment at theacquisition date and any differences in accounting policies:

Hefei Display Technology

Mianyang BOE

Wuhan BOE

Chongqing BOE Display

2022

2021

2022

2021

2022

2021

2022

2021

Current assets

12,595,285,193

15,797,281,551

12,372,285,496

9,255,378,733

7,442,285,566

12,711,279,779

8,590,561,462

9,119,260,427

Non-current assets

20,269,449,516

24,332,972,509

37,212,140,922

43,427,820,893

38,934,335,172

38,277,507,503

32,479,448,086

25,994,167,505

Total assets

32,864,734,709

40,130,254,060

49,584,426,418

52,683,199,626

46,376,620,738

50,988,787,282

41,070,009,548

35,113,427,932

Current liabilities

6,306,350,492

7,432,659,554

11,072,411,471

7,343,085,123

6,251,107,827

7,311,202,489

5,410,946,190

3,837,467,534

Non-current liabilities

6,025,395,194

8,237,784,012

17,008,183,759

21,547,455,635

15,254,593,174

15,031,465,931

12,186,708,120

8,053,464,462

Total liabilities

12,331,745,686

15,670,443,566

28,080,595,230

28,890,540,758

21,505,701,001

22,342,668,420

17,597,654,310

11,890,931,996

Operating income

10,878,478,058

19,895,825,588

16,357,203,835

15,252,416,607

12,845,309,881

16,825,449,551

883,001,124

25,345,522

Net (loss) / profit

(3,947,585,884)

3,314,633,884

(2,301,228,643)

(998,415,291)

(3,788,416,587)

2,811,946,928

(327,058,484)

(243,647,739)

Total comprehensive income

(3,947,585,884)

3,314,633,884

(2,301,228,643)

(998,415,291)

(3,788,416,587)

2,811,946,928

(327,058,484)

(243,647,739)

Cash inflows / (outflows) in operating activities

899,521,665

9,132,590,378

7,118,785,052

3,589,416,228

2,816,292,270

5,734,190,509

(185,310,156)

91,717,067

???

2 Transactions that cause changes in the Group’s interests in subsidiaries that do not result in

loss of control

(1) Changes in the Group’s interests in subsidiaries:

?	Before changes of interests	?	After changes of interests
?	?	?	?
BOE Energy	100.00%	?	68.40%
Zhongxiangying	100.00%	?	91.10%
Hefei Xingyu	53.86%	?	63.77%

????

(2) Impact from transactions with non-controlling interests and equity attributable to the

shareholders of the Company:

The changes in the shareholding of the Company in the owners of above-mentioned othersubsidiaries were caused by the capital increase/decrease of the Company and the capitalincrease of their non-controlling interests or the failure to increase capital by the Companyand the non-controlling interests of the subsidiaries in equal proportion, which results in theincrease of capital reserves by RMB 1,135,268,806 . See Note V.38.

3 Interests in associates

Please see Note V.10(2) for details of the summarised financial information of theassociates.

No material restrictions on transfers of funds from investees to the Group. The judgementbasis of the Company and its subsidiaries to hold lower than 20% of the voting rights of otherentities but have significant influence on the entity is due to the fact that the Company and itssubsidiaries have seats in the board of directors of the entity, and the Company andsubsidiaries of the Company may have significant influence on the entity through therepresentation of the directors in the process of formulating financial and operating policies.

VIII. Risk related to financial instruments

The Group has exposure to the following main risks from its use of financial instruments inthe normal course of the Group’s operations:

- Credit risk- Liquidity risk- Interest rate risk- Foreign currency risk- Other price risks

The following mainly presents information about the Group’s exposure to each of the aboverisks and their sources, their changes during the year, and the Group’s objectives, policiesand processes for measuring and managing risks, and their changes during the year.

The Group aims to seek appropriate balance between the risks and benefits from its use offinancial instruments and to mitigate the adverse effects that the risks of financial instrumentshave on the Group’s financial performance. Based on such objectives, the Group’s riskmanagement policies are established to identify and analyse the risks faced by the Group, toset appropriate risk limits and controls, and to monitor risks and adherence to limits. Riskmanagement policies and systems are reviewed regularly to reflect changes in marketconditions and the Group’s activities. The internal audit department of the Group undertakesboth regular and ad-hoc reviews of risk management controls and procedures.

1 Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for theother party by failing to discharge an obligation. The Group’s credit risk is primarilyattributable to receivables. Exposure to these credit risks is monitored by management on anongoing basis.

The cash at bank of the Group is mainly held with well-known financial institutions.Management does not foresee any significant credit risks from these deposits and does notexpect that these financial institutions may default and cause losses to the Group.

In respect of receivables, the Group has established a credit policy under which individualcredit evaluations are performed on all customers to determine the credit limit and termsapplicable to the customers. These evaluations focus on the customers’ financial position,the external ratings of the customers and the record of previous transactions. Receivablesare due within 7 to 120 days from the date of billing. Debtors with balances that are past dueare requested to settle all outstanding balances before any further credit is granted.Normally, the Group does not obtain collateral from customers.

The Group’s exposure to credit risk is influenced mainly by the individual characteristics ofeach customer rather than the industry or country/region in which the customers operate.Therefore, significant concentrations of credit risk primarily arise when the Group hassignificant exposure to individual customers. At the balance sheet date, 39% (2021: 39%) ofthe Contract assets total accounts receivable were due from the five largest customers of theGroup. In addition, the accounts receivable not overdue or impaired is mainly related to manyclients who don’t have payment in arrears records recently.

The maximum exposure to credit risk is represented by the carrying amount of each financialasset in the balance sheet. As mentioned in Note XIII, as at 31 December 2022 the Groupdoes not provide any external guarantees which would expose the Group or the Company tocredit risk.

2 Liquidity risk

Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations thatare settled by delivering cash or another financial asset. The Company and its individualsubsidiaries are responsible for their own cash management, including short-term investmentof cash surpluses and the raising of loans to cover expected cash demands, subject toapproval by the Company’s board when the borrowings exceed certain predetermined levelsof authority. The Group’s policy is to regularly monitor its liquidity requirements and itscompliance with lending covenants, to ensure that it maintains sufficient reserves of cash,readily realisable marketable securities and adequate committed lines of funding from majorfinancial institutions to meet its liquidity requirements in the short and longer term.

The following tables set out the remaining contractual maturities at the balance sheet date ofthe Group’s financial liabilities, which are based on contractual undiscounted cash flows(including interest payments computed using contractual rates or, if floating, based on ratescurrent at 31 December) and the earliest date the Group can be required to pay:

?	2022 Contractual undiscounted cash flow									?	?
?	Within 1 year or on demand (inclusive)	?	More than 1 year but less than 3 years (inclusive)	?	More than 3 years but less than 5 years (inclusive)	?	More than 5 years	?	Total	?	Carrying amount of balance sheet
?	?	?	?	?	?	?	?	?	?	?	?
Financial liabilities	?	?	?	?	?	?	?	?	?	?	?
Short-term loans	2,472,050,871	?	-	?	-	?	-	?	2,472,050,871	?	2,373,938,871
Bills payable	870,221,538	?	-	?	-	?	-	?	870,221,538	?	870,221,538
Accounts payable	29,834,720,464	?	-	?	-	?	-	?	29,834,720,464	?	29,834,720,464
Other payables	19,632,223,269	?	-	?	-	?	-	?	19,632,223,269	?	19,632,223,269
Non-current liabilities due within one year	23,132,749,292	?	-	?	-	?	-	?	23,132,749,292	?	22,703,750,744
Long-term loans	4,872,695,550	?	17,357,391,426	?	26,251,319,950	?	99,561,622,533	?	148,043,029,459	?	123,143,479,690
Lease liabilities	-	?	246,663,217	?	123,905,787	?	323,315,125	?	693,884,129	?	538,586,010
Long-term payables	-	?	70,973,955	?	160,835,968	?	-	?	231,809,923	?	229,587,077
?	?	?	?	?	?	?	?	?	?	?	?
Total	80,814,660,984	?	17,675,028,598	?	26,536,061,705	?	99,884,937,658	?	224,910,688,945	?	199,326,507,663

????

?	2021 Contractual undiscounted cash flow									?	?
?	Within 1 year or on demand (inclusive)	?	More than 1 year but less than 3 years (inclusive)	?	More than 3 years but less than 5 years (inclusive)	?	More than 5 years	?	Total		Carrying amount of balance sheet
?	?	?	?	?	?		?	?	?		?
Financial liabilities	?	?	?	?	?		?	?	?		?
Short-term loans	2,156,682,843	?	-	?	-		-	?	2,156,682,843		2,072,057,332
Bills payable	827,958,031	?	-	?	-		-	?	827,958,031		827,958,031
Accounts payable	32,455,830,694	?	-	?	-		-	?	32,455,830,694		32,455,830,694
Other payables	23,835,374,942	?	-	?	-		-	?	23,835,374,942		23,835,374,942
Non-current liabilities due within one year	29,209,146,646	?	-	?	-		-	?	29,209,146,646		28,874,958,714
Long-term loans	4,195,689,815	?	19,625,783,023	?	10,743,655,014		102,812,410,156	?	137,377,538,008		116,078,666,587
Debentures payable	13,392,544	?	305,465,507	?	74,023,980		-	?	392,882,031		359,586,437
Lease liabilities	-	?	284,759,263	?	138,423,079		333,385,847	?	756,568,189		669,130,264
Long-term payables	-	?	373,905,903	?	211,205,405		457,906,633	?	1,043,017,941		906,592,838
?	?	?	?	?	?		?	?	?		?
Total	92,694,075,515	?	20,589,913,696	?	11,167,307,478		103,603,702,636	?	228,054,999,325		206,080,155,839

???

3 Interest rate risk

Interest-bearing financial instruments at variable rates and at fixed rates expose the Group tocash flow interest rate risk and fair value interest risk, respectively. The Group determinesthe appropriate weightings for fixed and floating rate interest-bearing instruments based oncurrent market conditions and performs regular reviews and monitoring to achieve anappropriate mix of fixed and floating rate exposure. The Group does not enter into financialderivatives to hedge interest rate risk.

(a) As at 31 December, the Group held the following interest-bearing financial instruments:

Fixed rate instruments:

?	2022			?	2021
Item	Effective interest rate	?	Amounts	?	Effective interest rate	?	Amounts
?	?	?	?	?	?	?	?
Financial assets	?	?	?	?	?	?	?
- Cash at bank	0.70%~5.45%	?	36,597,334,927	?	0.30%~3.99%	?	36,894,761,961
Financial liabilities	?	?	?	?	?	?	?
- Short-term loans	0.25%~5.90%	?	(1,149,712,480)	?	0.50%~5.90%	?	(2,068,800,511)
- Other payables	0%~2.18%		(3,000,000,000)		0%~2.18%		(3,000,000,000)
- Non-current liabilities due within one year	0%~6.86%	?	(7,841,491,191)	?	0%~6.86%	?	(9,407,794,957)
- Long-term loans	0%~5.90%	?	(25,324,584,996)	?	0%~5.90%	?	(28,644,395,246)
- Debentures payable	-	?	-	?	3.50%~4.55%	?	(359,586,437)
- Lease liabilities	3.65%~4.75%	?	(538,586,010)	?	3.85%~4.75%	?	(669,130,264)
- Long-term payables	4.30%~6.86%	?	(229,587,077)	?	4.65%~6.86%	?	(906,592,838)
?	?	?	?	?	?	?	?
Total	?	?	(1,486,626,827)	?	?	?	(8,161,538,292)

????

Floating rate instruments:

?	2022			?	2021
Item	Effective interest rate	?	Amounts	?	Effective interest rate	?	Amounts
?	?	?	?	?	?	?	?
Financial assets	?	?	?	?	?	?	?
- Cash at bank	0.0001%~5.30%	?	31,723,267,975	?	0.0001%~2.70%	?	41,471,269,422
Financial liabilities	?	?	?	?	?	?	?
- Short-term loans	5.65%~5.84%	?	(1,218,525,680)	?	-	?	-
- Non-current liabilities due within one year	1.00%~7.44%	?	(14,215,671,815)	?	1.66%~5.88%	?	(18,827,495,477)
- Long-term loans	1.00%~7.44%	?	(97,816,667,917)	?	2.30%~5.88%	?	(87,317,668,185)
?	?	?	?	?	?	?	?
Total	?	?	(81,527,597,437)	?	?	?	(64,673,894,240)

????

(b) Sensitivity analysis

As at 31 December 2022, it is estimated that a general increase / decrease of 100basis points in interest rates of variable rate instrument, with all other variables heldconstant, would decrease / increase the Group’s net profit and equity by RMB679,150,000 (2021: RMB 549,530,000).

In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative instruments held by the Group at the balance sheet date, the impact on thenet profit and owner’s equity is estimated as an annualised impact on interest expenseor income of such a change in interest rates. The analysis is performed on the samebasis for the previous year.

4 Foreign currency risk

In respect of cash at bank and on hand, accounts receivable and payable, short-term loansand other assets and liabilities denominated in foreign currencies other than the functionalcurrency, the Group ensures that its net exposure is kept to an acceptable level by buying orselling foreign currencies at spot rates when necessary to address short-term imbalances.

(a) The Group’s exposure as at 31 December to currency risk arising from recognized

foreign currency assets or liabilities is mainly denominated in US dollar. The amount ofthe USD exposure is net liabilities exposure USD 1,523,210,633 (2021 net liabilitiesexposure: USD 177,293,137), translated into RMB 10,608,552,775 (2021: RMB1,130,367,854), using the spot rate at the balance sheet date. Differences resultingfrom the translation of the financial statements denominated in foreign currency areexcluded.

(b) Assuming all other risk variables remained constant, a 5% strengthening / weakening

of the Renminbi against the US dollar at 31 December would have increased /decreased both the Group’s equity and net profit by the amount RMB 136,665,926(2021: decreased / increased RMB 164,148,318).

The sensitivity analysis above assumes that the change in foreign exchange rates hadbeen applied to re-measure those financial instruments held by the Group whichexpose the Group to foreign currency risk at the balance sheet date. The analysisexcludes differences that would result from the translation of the financial statementsdenominated in foreign currency. The analysis is performed on the same basis for theprevious year.

5 Other price risks

Other price risks include stock price risk and commodity price risk.

IX. Fair value disclosure

The following table presents the fair value information and the fair value hierarchy, at the endof the current reporting period, of the Group’s assets and liabilities which are measured atfair value at each balance sheet date on a recurring or non-recurring basis. The level inwhich fair value measurement is categorised is determined by the level of the fair valuehierarchy of the lowest level input that is significant to the entire fair value measurement. Thelevels are defined as follows:

Level 1 inputs: unadjusted quoted prices in active markets that are observable at the

measurement date for identical assets or liabilities;

Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly

observable for underlying assets or liabilities;

Level 3 inputs: Inputs that are unobservable for underlying assets or liabilities;

1 Fair value of assets measured at fair value at the end of the year

?	?	31 December 2022
Assets	Note	Level 1 Fair value measurement	?	Level 2 Fair value measurement	?	Level 3 Fair value measurement	?	Total
?	?	?	?	?	?	?	?	?
Recurring fair value measurements	?	?	?	?	?	?	?	?
- Financial assets held for trading	V.2	256,525,783	?	-	?	16,931,468,153	?	17,187,993,936
Including: Structured deposit and wealth-management products	?	-	?	-	?	16,931,468,153	?	16,931,468,153
Investments in equity instruments	?	256,525,783	?	-	?	-	?	256,525,783
- Investments in other equity instruments	V.11	154,312,590	?	-	?	328,747,716	?	483,060,306
- Other non-current financial assets	V.12	-	?	-	?	2,022,967,681	?	2,022,967,681
Including: Investments in equity instruments	?	-	?	-	?	2,022,967,681	?	2,022,967,681
?	?	?	?	?	?	?	?	?
Total assets measured at fair value on a recurring basis	?	410,838,373	?	-	?	19,283,183,550	?	19,694,021,923

????

?	?	31 December 2021
Assets	Note	Level 1 Fair value measurement	?	Level 2 Fair value measurement	?	Level 3 Fair value measurement	?	Total
?	?	?	?	?	?	?	?	?
Recurring fair value measurements	?	?	?	?	?	?	?	?
- Financial assets held for trading	V.2	-	?	-	?	10,028,172,853	?	10,028,172,853
Including: Structured deposit and wealth-management products	?	-	?	-	?	10,028,172,853	?	10,028,172,853
- Investments in other equity instruments	V.11	168,325,009	?	-	?	350,763,137	?	519,088,146
- Other non-current financial assets	V.12	-	?	-	?	606,895,447	?	606,895,447
Including: Investments in equity instruments	?	-	?	-	?	606,895,447	?	606,895,447
?	?	?	?	?	?	?	?	?
Total assets measured at fair value on a recurring basis	?	168,325,009	?	-	?	10,985,831,437	?	11,154,156,446

???

2 Basis of determining the market price for recurring and non-recurring fair value

measurements categorised within Level 1

The Group uses the active market quote as the fair value of financial assets within Level 1.

3 Valuation techniques used and the qualitative and quantitative information of key parameters

for recurring and non-recurring fair value measurements categorised within Level 3

Financial assets held for trading at recurring fair value within Level 3 are bank wealthmanagement products. For wealth management products measured at fair value, the fairvalue is determined based on the discounted cash flow method.

Investments in other equity instruments and other non-current financial assets at recurringfair value within Level 3 are unlisted equity investments held by the Group, including:

(i) For those who raised a new round of financing in 2022, the Group used the financing

price as the best estimates of their fair value;

(ii) For other investments in other equity instruments, since the operating environment,

operating conditions and financial status of the investee have not changed significantlyduring the year, the Group uses the book investment cost as a reasonable estimate offair value for measurement.

4 During 2022, there were no changes in valuation technique of fair value. As at 31 December,

the Group held no assets and liabilities measured at fair value. All financial assets andfinancial liabilities of the Group are carried at amounts not materially different from their fairvalue.

X. Related parties and related party transactions

1 Information about the parent of the Company

Company name	Registered place	?	Business nature	?	Registered capital	?	Shareholding percentage (%)	?	Percentage of voting rights (%)	?	Ultimate controlling party of the Company
?	?	?	?	?	?	?	?	?	?	?	?
Beijing Electronics Holding Co., Ltd.	No. 12, Jiuxianqiao Road, Chaoyang District, Beijing	?	Operation and management of state-owned assets within authorisation, etc.	?	RMB 3,139,210,000	?	0.72%	?	12.20%	?	Yes

????

2 Information about the subsidiaries of the Company

For information about the subsidiaries of the Group, refer to Note VII.1.

3 Information about joint ventures and associates of the Company

Associates and joint ventures that have related party transactions with the Group during thisyear or the previous year are as follows:

Name of entity	Relationship with the Company
?	?
Beijing Nittan Electronic Co., Ltd.	Associate of the Group and the Company
Beijing BOE Art Cloud Technology Co., Ltd.	Associate of the Group and the Company
Beijing Xindongneng Investment Management Co., Ltd.	Associate of the Group and the Company
TPV Display Technology (China) Limited	Associate of the Group and the Company
BOE Digital Technology Co., Ltd.	Associate of the Group and the Company
Beijing BOE Art Cloud (Suzhou)Technology Co., Ltd.	Associate of the Group and the Company
Beijing BOE Art Cloud (Hangzhou)Technology Co., Ltd.	Associate of the Group and the Company
Hefei Xin Jing Yuan Electronic Materials Co., Ltd.	Associate of the Group
Beijing BOE Microbial Technology Co., Ltd.	Associate of the Group
Biochain (Beijing) Science-Technology.Inc.	Associate of the Group
BOE Houji Technology (Beijing) Co., Ltd.	Associate of the Group
SES Imagotag SA Co., Ltd.	Associate of the Group
SES-Imagotag GmbH Co., Ltd.	Subsidiary of associate of the Group
Pervasive Displays Inc	Subsidiary of associate of the Group
Beijing Borcheng Medical Laboratory Co. Ltd.	Subsidiary of associate of the Group

????

4 Information on other related parties

Name of other related parties	Related-party relationship
?	?
Beijing BOE Investment Development Co., Ltd.	Under the same control of the ultimate holding company
NAURA Technology Group Co., Ltd.	Under the same control of the ultimate holding company
Beijing Zhengdong Electronic Power Group Co., Ltd.	Under the same control of the ultimate holding company
Beijing Dongdian Industrial Development Co., Ltd.	Under the same control of the ultimate holding company
Beijing Naura Microelectronics Equipment Co., Ltd.	Under the same control of the ultimate holding company
Sevenstar Semiconductor Technologies Co., Ltd.	Under the same control of the ultimate holding company
Beijing Zhaowei Technology Development Co., Ltd.	Under the same control of the ultimate holding company
Beijing C&W Intelligent Equipment Co., Ltd.	Under the same control of the ultimate holding company
Beijing Ether Electronics Group Co., Ltd.	Under the same control of the ultimate holding company
Beijing Yansong Economic and Trade Co., Ltd.	Under the same control of the ultimate holding company
Beijing Ripeness Sanyuan Instrumentation Co., Ltd.	Under the same control of the ultimate holding company
Beijing Electronics Holding & SK Technology Co., Ltd.	Under the same control of the ultimate holding company
Beijing Electrical Control Jiuyi Industrial Development Company	Under the same control of the ultimate holding company
761 Workshop (Beijing) Technology Development Co., Ltd.	Under the same control of the ultimate holding company
Beijing Smart-Aero Display Technology Co., Ltd.	Under the same control of the ultimate holding company
Beijing Electrical Energy Technology (Jiangsu) Co., Ltd.	Under the same control of the ultimate holding company
Beijing Peony Electronic Group Co., Ltd.	Under the same control of the ultimate holding company
Beijing Electric Control Industry Investment Co., Ltd.	Under the same control of the ultimate holding company
Baic Electronics Holding SK (Jiangsu) Technology Co., Ltd.	Under the same control of the ultimate holding company
Beijing 797 Audio Co., Ltd.	Under the same control of the ultimate holding company
Bei Jing Yan Dong Microelectronic Technology Co., Ltd.	Under the same control of the ultimate holding company
New Vision Microelectronics (Hong Kong) Limited	Associate of enterprise that is under the same control of the ultimate holding company
Beijing Senju Electronic Materials Co., Ltd.	Associate of enterprise that is under the same control of the ultimate holding company
Beijing Yizhuang Environmental Technology Group Co., Ltd.	Other related parties
China Minsheng Banking Corp., Ltd.	Other related parties
Hefei Construction Investment and Holding Co., Ltd.	Other related parties
Beijing Jingcheng Machinery Electric Holding Co., Ltd.	Other related parties
Nexchip Semiconductor Corporation	Other related parties
Hefei Visionox Technology Co., Ltd.	Other related parties

????

5 Transactions with related parties

The transactions below with related parties were conducted under normal commercial termsor agreements.

(1) Purchase of goods and equipment, and receiving of services (excluding remuneration of key

management personnel).

The Group

Nature of transaction	2022	?	2021
?	?	?	?
Purchase of goods	658,905,000	?	965,818,931
Procurement of equipment	155,286,378	?	255,199,826
Receiving services	12,843,982	?	24,377,762
Payment of interest expenses	43,423,377	?	20,715,586
?	?	?	?
Total	870,458,737	?	1,266,112,105

????

The Company

Nature of transaction	2022	?	2021
?	?	?	?
Purchase of goods	32,203,231	?	9,164,606
Receiving services	63,840,655	?	249,160,057
Payment of interest expenses	42,314,510	?	19,860,031
?	?	?	?
Total	138,358,396	?	278,184,694

????

(2) Sale of goods/rendering of services

The Group

Nature of transaction	2022	?	2021
?	?	?	?
Sale of goods	1,168,302,006	?	416,546,796
Rendering of services	12,004,788	?	10,267,108
Income from interest received	23,183,395	?	21,292,904
?	?	?	?
Total	1,203,490,189	?	448,106,808

????

The Company

Nature of transaction	2022	?	2021
?	?	?	?
Sale of goods	101,930	?	23,488,144
Rendering of services	4,742,920,134	?	5,561,607,938
Income from interest received	15,398,605	?	17,015,526
?	?	?	?
Total	4,758,420,669	?	5,602,111,608

????

(3) Leases

(a) As the lessor

The Group

Type of assets leased	Lease income recognised in 2022	?	Lease income recognised in 2021
?	?	?	?
Investment properties	7,925,143	?	5,114,048

????

The Company

Type of assets leased	Lease income recognised in 2022	?	Lease income recognised in 2021
?	?	?	?
Investment properties	65,287,838	?	70,534,069

????

(b) As the lessee

The Group

Type of assets leased	Lease expense recognised in 2022	?	Lease expense recognised in 2021
?	?	?	?
Fixed assets	2,886,041	?	2,804,351

????

The Company

Type of assets leased	Lease expense recognised in 2022	?	Lease expense recognised in 2021
?	?	?	?
Fixed assets	48,562,349	?	-

(4) Funding from related parties

The Company

Name of related party	Amount of funding	?	Inception date	?	Maturity date
?	?	?	?	?	?
Funds received	?	?	?	?	?
?	?	?	?	?	?
Subsidiary of the parent company	2,000,000,000	?	09/06/2017	?	Long-term
Subsidiary of the parent company	4,000,000,000	?	09/06/2017	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	23/12/2016	?	Long-term
Subsidiary of the parent company	200,000,000	?	28/07/2017	?	Long-term
Subsidiary of the parent company	1,600,000,000	?	04/12/2017	?	Long-term
Subsidiary of the parent company	700,000,000	?	13/04/2018	?	Long-term
Subsidiary of the parent company	650,000,000	?	25/04/2018	?	Long-term
Subsidiary of the parent company	3,000,000,000	?	27/04/2018	?	Long-term
Subsidiary of the parent company	3,000,000,000	?	28/05/2018	?	Long-term
Subsidiary of the parent company	2,500,000,000	?	31/08/2018	?	Long-term
Subsidiary of the parent company	3,800,000,000	?	19/07/2018	?	Long-term
Subsidiary of the parent company	3,500,000,000	?	01/08/2018	?	Long-term
Subsidiary of the parent company	1,500,000,000	?	24/05/2019	?	Long-term
Subsidiary of the parent company	2,000,000,000	?	27/05/2019	?	Long-term
Subsidiary of the parent company	360,000,000	?	24/04/2020	?	Long-term
Subsidiary of the parent company	1,300,000,000	?	21/05/2019	?	Long-term
Subsidiary of the parent company	500,000,000	?	28/05/2019	?	Long-term
Subsidiary of the parent company	500,000,000	?	21/05/2019	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	26/07/2019	?	Long-term
Subsidiary of the parent company	300,000,000	?	08/07/2020	?	Long-term
Subsidiary of the parent company	2,500,000,000	?	06/07/2020	?	Long-term
Subsidiary of the parent company	2,000,000,000	?	03/07/2020	?	Long-term
Subsidiary of the parent company	1,200,000,000	?	06/07/2020	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	20/08/2020	?	Long-term
Subsidiary of the parent company	1,700,000,000	?	12/10/2020	?	Long-term
Subsidiary of the parent company	3,000,000,000	?	05/11/2020	?	Long-term
Subsidiary of the parent company	2,358,000,000	?	07/12/2020	?	Long-term
Subsidiary of the parent company	900,000,000	?	11/12/2020	?	Long-term

Name of related party	Amount of funding	?	Inception date	?	Maturity date
?	?	?	?	?	?
Funds received	?	?	?	?	?
?	?	?	?	?	?
Subsidiary of the parent company	1,700,000,000	?	28/12/2020	?	Long-term
Subsidiary of the parent company	2,300,000,000	?	28/12/2020	?	Long-term
Subsidiary of the parent company	1,200,000,000	?	30/09/2015	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	09/03/2021	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	18/03/2021	?	Long-term
Subsidiary of the parent company	4,000,000,000	?	25/03/2021	?	Long-term
Subsidiary of the parent company	2,500,000,000	?	30/03/2021	?	Long-term
Subsidiary of the parent company	4,500,000,000	?	23/06/2021	?	Long-term
Subsidiary of the parent company	500,000,000	?	30/06/2021	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	30/06/2021	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	06/07/2021	?	Long-term
Subsidiary of the parent company	2,000,000,000	?	29/12/2021	?	Long-term
Subsidiary of the parent company	2,800,000,000	?	30/12/2021	?	Long-term
Subsidiary of the parent company	6,000,000,000	?	30/12/2021	?	Long-term
Subsidiary of the parent company	1,500,000,000	?	31/12/2021	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	27/01/2022	?	Long-term
Subsidiary of the parent company	200,000,000	?	31/12/2021	?	Long-term
Subsidiary of the parent company	800,000,000	?	15/06/2022	?	Long-term
Subsidiary of the parent company	400,000,000	?	31/12/2021	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	31/12/2021	?	Long-term
Subsidiary of the parent company	6,500,000,000	?	23/08/2022	?	Long-term
Subsidiary of the parent company	1,100,000,000	?	08/10/2022	?	Long-term
Subsidiary of the parent company	800,000,000	?	20/10/2022	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	25/10/2022	?	Long-term
Subsidiary of the parent company	1,000,000,000	?	25/10/2022	?	Long-term
Subsidiary of the parent company	200,000,000	?	10/11/2022	?	Long-term
Subsidiary of the parent company	650,000,000	?	16/03/2021	?	16/03/2026
?	?	?	?	?	?
Total	95,718,000,000	?	?	?	?

???

Name of related party	Amount of funding	Inception date	Maturity date
?	?	?	?
Funds provided	?	?	?
?	?	?	?
Subsidiary of the parent company	1,100,000,000	30/09/2022	Right to request return at any time
Subsidiary of the parent company	1,400,000,000	29/09/2022	Right to request return at any time
Subsidiary of the parent company	1,700,000,000	29/09/2022	Right to request return at any time
Subsidiary of the parent company	1,490,000,000	21/10/2020	Right to request return at any time
Subsidiary of the parent company	200,000,000	29/10/2020	Right to request return at any time
Subsidiary of the parent company	300,000,000	10/05/2022	Right to request return at any time
Subsidiary of the parent company	700,000,000	07/05/2022	Right to request return at any time
Subsidiary of the parent company	200,000,000	27/06/2022	Right to request return at any time
Subsidiary of the parent company	300,000,000	27/06/2022	Right to request return at any time
Subsidiary of the parent company	700,000,000	29/10/2020	Right to request return at any time
Subsidiary of the parent company	1,000,000,000	28/10/2022	Right to request return at any time
Subsidiary of the parent company	285,000,000	24/11/2020	Right to request return at any time
Subsidiary of the parent company	473,000,000	24/11/2020	Right to request return at any time
Subsidiary of the parent company	590,000,000	19/02/2020	Right to request return at any time
Subsidiary of the parent company	460,000,000	19/02/2020	Right to request return at any time
Subsidiary of the parent company	200,000,000	08/07/2021	Right to request return at any time
Subsidiary of the parent company	300,000,000	08/07/2021	Right to request return at any time
Subsidiary of the parent company	300,000,000	08/07/2021	Right to request return at any time
Subsidiary of the parent company	50,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	29,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	158,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	123,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	261,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	81,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	90,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	173,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	433,000,000	26/01/2022	Right to request return at any time
Subsidiary of the parent company	20,000,000	11/08/2022	Right to request return at any time
Subsidiary of the parent company	32,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	50,000,000	11/08/2022	Right to request return at any time
Subsidiary of the parent company	50,000,000	15/07/2022	Right to request return at any time
Subsidiary of the parent company	91,000,000	11/08/2022	Right to request return at any time
Subsidiary of the parent company	60,000,000	15/07/2022	Right to request return at any time
Subsidiary of the parent company	151,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	56,000,000	15/07/2022	Right to request return at any time
Subsidiary of the parent company	46,000,000	15/07/2022	Right to request return at any time
Subsidiary of the parent company	26,701,133	14/04/2022	Right to request return at any time
Subsidiary of the parent company	52,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	65,000,000	14/04/2022	Right to request return at any time
Subsidiary of the parent company	300,000,000	06/04/2022	Right to request return at any time
Subsidiary of the parent company	200,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	800,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	300,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	600,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	600,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	400,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	800,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	600,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	500,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	200,000,000	22/06/2022	Right to request return at any time
Subsidiary of the parent company	20,000,000	16/12/2022	Right to request return at any time
Subsidiary of the parent company	50,000,000	27/03/2015	26/12/2024
Subsidiary of the parent company	30,000,000	21/01/2016	21/01/2025
Subsidiary of the parent company	200,000,000	12/10/2020	12/10/2030
?	?	?	?
Total	19,395,701,133	?	?

(5) Remuneration of key management personnel

The Group and the Company

Item	2022	?	2021
?	?	?	?
Remuneration of key management personnel	RMB 86,665,000	?	RMB 110,629,000

????

The remuneration of key management personnel above does not include the one withrespect to share-based payments scheme.

6 Receivables from and payables to related parties

Receivables from related parties

The Group

?	Note	2022			?	2021
Item		Book value	?	Provision for impairment	?	Book value	?	Provision for impairment
?		?	?	?	?	?	?	?
Cash at bank and on hand	(1)	965,569,850	?	-	?	1,060,805,464	?	-
Accounts receivable		1,070,848,317	?	4,986,221	?	88,954,909	?	4,883,531
Prepayments		6,615,367	?	-	?	1,118,145	?	-
Other receivables		16,588,534	?	-	?	1,901,777	?	-
Contract assets		2,402,974	?	-	?	122,743	?	-

????

The Company

?	Note	2022			?	2021
Item		Book value	?	Provision for impairment		Book value	?	Provision for impairment
?		?		?		?		?
Cash at bank and on hand	(1)	8,850		-		6,830		-
Accounts receivable		4,867,860,690		4,315,658		4,827,924,553		-
Prepayments		146,368		-		165,134		-
Other receivables		19,686,877,080		16,868,539		15,287,017,182		2,964,404
Other non-current assets		1,080,000,000		-		1,740,000,000		-

????

Payables to related parties

The Group

Item	Note	2022	?	2021
?		?	?	?
Accounts payable		179,047,266	?	142,557,107
Advance payments received		188,623	?	961,806
Contract liabilities		34,164,291	?	3,717,500
Other payables		182,554,398	?	178,187,139
Non-current liabilities due within one year	(2)	6,000,000		-
Long-term loans	(2)	1,257,250,000	?	1,435,000,000

????

The Company

Item	Note	2022	?	2021
?		?	?	?
Accounts payable		27,646,402	?	18,924,459
Advance payments received		169,459	?	3,212,352
Other payables		2,921,972,111	?	1,364,404,865
Long-term loans	(2)	1,186,250,000	?	1,435,000,000
Other non-current liabilities		96,394,661,805	?	74,506,661,805

????

(1) The Group's and the Company's cash at bank and on hand were deposit in China

Minsheng Bank Co.

(2) The Group's and the Company's non-current liabilities and long-term borrowings due

within one year are borrowings from China Minsheng Bank Co.

7 Commitments of the related parties

As at balance sheet date, the commitments of the related parties, which are signed but notlisted in financial statement are as following:

?	2022	?	2021
?	?	?	?
Procurement of equipment	69,753,978	?	72,274,623

????

XI. Share-based payments

On 17 December 2020, the Board of Directors of the Company approved the implementationof share options and restricted share incentive plans from 2020. The shares for the shareoptions and restricted share incentive plans are from the Company’s Renminbi A-shareordinary shares repurchased from secondary market. The plans are presented as follows:

(a) Share option incentive plan

The initial grant date was 21 December 2020, and the implementation was completedon 25 December 2020. The actual number of grantees was 1,988, with a number ofgrants of 596,229,700 shares. The reserved grant date was 27 August 2021, the actualnumber of grantees was 110, and the number of grants is 33,000,000 shares, this grantwas completed on 22 October 2021.

The share options are exercised in three phases after 24 months from the grant date.The exercise ratios for each phase are 34%, 33%, and 33%, respectively. Thecorresponding exercise dates are 2 years, 3 years, and 4 years from the grant date.

When the Company’s performance meets the corresponding criteria, the proportion ofexercisable rights of the above-mentioned share options is determined based on thebusiness performance of the incentive object’s operation and the contribution value ofthe incentive object. In accordance with the plan, the Company will deregister thecurrent exercisable shares of the options obtained by the incentive objects if theexercise criteria stipulated in this plan are not met.

(b) Restricted share incentive plan

The grant date of restricted share incentive plan was 21 December 2020, and theimplementation was completed on 29 December 2020. The actual number of granteeswas 793, with a number of grants of 321,813,800 share.

The lock-up periods of the restricted share incentive plan are the 24, 36 and 48 monthsfrom the grant date, respectively. During the lock-up period, restricted shares grantedto the incentive object under this plan shall not be transferred, used for guarantee ordebt repayment before the lock-up release. Lock-up restricted shares are released inthree phases after 24 months from the grant date. The release ratios for each phaseare 34%, 33%, and 33%, respectively. The corresponding release dates are 2 years, 3years, and 4 years from the grant date. The actual number released shall be based onperformance assessment result for the previous year.

When the Company’s performance meets the corresponding criteria, the releaseproportion of the above-mentioned restricted shares is determined based on thebusiness performance of the incentive object’s operation and the contribution value ofthe incentive object. The Company will repurchase the locked restricted shares at thegranted price of the incentive objects if the release criteria stipulated in this plan are notmet, and the incentive object shall not release the restricted shares for the currentperiod.

As at 31 December 2022, the total costs recognised by the Group’s equity-settledshare-based payments in the consolidated financial statement was RMB 699,065,561,and the accumulated amount of capital reserve paid by equity-settled share-basedpayments amounted to RMB 1,364,808,372 (2021: 645,945,833). In the Company’sfinancial statements, the Company recognised its long-term equity investment of RMB534,225,046 in its subsidiary at the fair value of the equity instruments at the grantdate, and recognised expenses arising from share-based payments of RMB164,840,515, as well as a capital reserve of RMB 699,065,561.

Based on relevant provisions of the restricted share incentive plan for the serviceperiod, if the granted object resigns before the release date, the Company willrepurchase the restricted shares that have not been released at the subscription priceof the granted object. Please refer to Note V. 28 (1) for the repurchased obligation setout in other payables.

(1) Method for determining the fair value of equity instruments at the grant date is as

follows:

Share options:

The fair value of equity instruments at the grant date is determined based on thedifference between the assessed fair value of the exercisable share options at eachgrant date and the subscription price in RMB (RMB 1.68/share, RMB 1.93/share andRMB 2.09/share, respectively); the fair value of equity instruments at the reservedgrant date is determined based on the difference between the assessed fair value ofthe exercisable share options at each reserved grant date and the subscription price inRMB (RMB 1.70/share, RMB 2.02/share and RMB 2.17/share, respectively).

Restricted shares:

The fair value of equity instruments at the grant date is determined based on thedifference between the fair value of shares at the grant date and the subscription priceat RMB 2.68/share.

(2) Basis of determining the number of equity instruments expected to vest

At each balance sheet date during the vesting period, the best estimation is madeaccording to the latest information, such as the number of employees who are grantedoptions and the completion of performance indicators, and the number of equityinstruments expected to vest is revised accordingly. On the vesting date, the estimatednumber is equal to the number of equity instruments that are ultimately vested.

XII. Capital management

The Group’s primary objectives when managing capital are to safeguard its ability to continueas a going concern, so that it can continue to provide returns for shareholders, by pricingproducts and services commensurately with the level of risk and by securing access tofinance at a reasonable cost.

The Group defines “capital” as including all components of equity, less unaccrued proposeddividends. The balances of related party transactions are not regarded by the Group ascapital.

The Group’s capital structure is regularly reviewed and managed to achieve an optimalstructure and return for shareholders. Factors for the Group’s consideration include: its futurefunding requirements, capital efficiency, actual and expected profitability, expected cashflows, and expected capital expenditure. Adjustments are made to the capital structure inlight of changes in economic conditions affecting the Group.

The Group’s capital structure is monitored on the basis of an adjusted net debt-to-capitalratio (total liabilities divided by total assets). The capital management strategies exerted bythe Group remained unchanged from 2021. In order to maintain or adjust the ratio, the Groupmay adjust the amount of dividends paid to shareholders, request new loans, issue newshares, or sell assets to reduce debt.

As at 31 December 2022 and 31 December 2021, the Group’s asset-liability ratios are asfollows:

?	2022	?	2021
?	?	?	?
Asset-liability ratio	51.96%	?	51.72%

????

Neither the Company nor any of its subsidiaries are subject to externally imposed capitalrequirements.

XIII. Commitments and contingencies

1 Significant commitments

(1) Capital commitments

The Group	2022	?	2021
?	?	?	?
Contracts entered into but not performed or partially performed	31,109,629,604	?	36,353,906,810
Contracts authorized but not entered into	100,442,930,917	?	84,007,549,386
?	?	?	?
Total	131,552,560,521	?	120,361,456,196

????

The Group’s contracts authorised but not entered into mainly included the fixed assets thatFuzhou BOE Display Technology Co., Ltd. , Beijing BOE Chuangyuan Technology Co., Ltd. ,Chongqing BOE Display Technology Co., Ltd. , BOE Healthcare Investment & ManagementCo., Ltd. , Qingdao BOE Optoelectronics Technology Co., Ltd., BOE Wisdom IOTTechnology Co., Ltd., Chongqing BOE Smart Technology Co., Ltd. , BOE Varitronix Limitedand BOE Mled Technology Co., Ltd. planned to purchase in subsequent years and projectequipment that the Group planned to purchase in subsequent years.

The Company	2022	?	2021
?	?	?	?
Contracts entered into but not performed or partially performed	28,350,937,574	?	25,226,123,138

????

The Company’s contracts entered into but not performed or partially performed mainlyincluded guaranteed investments in Beijing BOE Chuangyuan Technology Co., Ltd. , BOEHealthcare Investment & Management Co., Ltd. , BOE Smart Technology Co., Ltd. andYunnan Invensight Optoelectronics Technology Co., Ltd.

2 Guarantee

(1) The Group as the guarantor

As at 31 December 2022, the Group did not have guarantees provided for externalenterprises.

(2) The Company as the guarantor

At 31 December 2022, Chengdu Optoelectronics pledged its land use right with carryingamount of RMB 39,337,190, machinery and equipment with carrying amount of RMB21,397,326,923 and plants and buildings with carrying amount of RMB 2,324,144,465 ascollaterals to obtain long-term loans of USD 578,700,000 and RMB 12,209,380,000. TheCompany provides joint-liability guarantee for the above loans.

At 31 December 2022, Yuansheng Optoelectronics pledged its land use rights with carryingamount of RMB 43,484,881, machinery and equipment with carrying amount of RMB5,459,351,367 and plant and buildings with carrying amount of RMB 2,018,273,173 ascollaterals to obtain long-term loans of RMB 1,186,370,000. The Company provides joint-liability guarantee for the above loans.

At 31 December 2022, Chongqing BOE Display pledged its land use right with carryingamount of RMB 159,786,737 as collaterals to obtain long-term loans of USD 1,034,000,000and RMB 5,226,000,000. The Company provides joint-liability guarantee for the above loans.In addition, the Company provides joint-liability guarantee for the letters of credit issued butnot accepted of USD 4,174,159 and JPY 5,451,000.

At 31 December 2022, Fuzhou BOE pledged its land use rights with carrying amount of RMB198,149,305, machinery and equipment with carrying amount of RMB 6,282,771,779 andplant and buildings with carrying amount of RMB 2,911,886,447 as collaterals to obtain long-term loans of USD 219,000,000 and RMB 815,740,000. The Company provides joint-liabilityguarantee for the above loans.

At 31 December 2022, Hefei Display Technology pledged its land use right with carryingamount of RMB 273,876,498, with machinery and equipment carrying amount of RMB12,507,752,146 and plants and buildings with carrying amount of RMB 3,489,590,026 ascollaterals to obtain long-term loans of USD 585,090,000 and RMB 3,374,494,080. TheCompany provides joint-liability guarantee for the above loans.

At 31 December 2022, Mianyang BOE pledged its land use rights with carrying amount ofRMB 372,381,841, machinery and equipment with carrying amount of RMB 24,533,264,774and plant and buildings with carrying amount of RMB 4,761,337,214 as collaterals to obtainlong-term loans of USD 694,730,000 and RMB 13,579,379,340. The Company providesjoint-liability guarantee for the above loans.

At 31 December 2022, Wuhan BOE pledged its land use right with carrying amount of RMB244,216,967, machinery and equipment with carrying amount of RMB 22,797,889,738 andplants and buildings with carrying amount of RMB 4,741,134,307 as collaterals to obtainlong-term loans of USD 1,181,500,000 and RMB 6,956,330,000. The Company providesjoint-liability guarantee for the above loans. In addition, the Company provides joint-liabilityguarantee for the letters of credit issued but not accepted of JPY 965,950,000.

At 31 December 2022, Chengdu BOE Hospital Co., Ltd. obtain long-term loans of RMB1,403,092,146. The Company provides joint-liability guarantee for the above loans.

At 31 December 2022, Nanjing BOE Display pledged its plant and buildings with carryingamount of RMB 4,052,329,316 as collaterals to obtain long-term loans of USD 65,440,000.The Company guarantees 60% of the above loan (i.e., USD 39,264,000) by means of acounter guarantee with joint-liability guarantee. Nanjing BOE Display pledged its machineryand equipment with carrying amount of RMB 319,824,268 as collaterals to obtain financelease loans of RMB 107,500,000. The Company provides joint-liability guarantee for theabove loans. In addition, the Company provided joint-liability guarantee by means of counterguarantee for its short-term borrowings of RMB 900,000,000 and long-term borrowings ofRMB 1,200,000,000.

XIV . Segment reporting

1 Segment reporting considerations

The Group management reviews the operation performance and allocates resourcesaccording to the business segments below.

(a) Display business — The display business integrates design and manufacturing of

display devices and strives to offer TFT-LCD, AMOLED, Microdisplay and otherintelligent interface devices. This business focuses on providing high-qualitysmartphones, tablet PCs, laptops, monitors, TVs, vehicles, electronic shelf label (ESL),industrial control, domiciliary medical applications, wearable devices, interactivewhiteboards , splice displays, business devices, VR/AR devices and other displaydevices for customers.

(b) IInternet of Things (IoT) innovation business — The IoT innovation business integrates

manufacturing models for system solution design, providing customers with competitivesmart terminal products in the fields of TVs, monitors, laptops, tablet PCs, low powerconsumption products, IoT, 3D displays, etc. With artificial intelligence and big data astechnical support, it focuses on products and services that integrate software andhardware, providing integrated solutions in IoT segments such as smart finance, smartindustrial parks, visual arts, smart administration, smart transportation etc.

models for system solution design. It focuses on various fields such as medical bio-detection, transportation and construction intelligence visions, consumer electronics,microwave communication and industrial sensing, providing customers with integrateddesign and manufacturing of sensor devices and system solution services. Specificproducts and solutions include flat panel X-ray detectors (FPXD), digital microfluidicchips, PDLC glass, fingerprint identification systems, industrial sensors, etc.

(d) MLED business — The MLED integrates design and manufacturing of devices and

provides Mini-LED backlight products with strong reliability and high dynamic rangethat allow precisely brightness adjustment for smartphones, tablet PCs, laptops,monitors, TVs, car displays, wearables and other products; besides, it providesMini/Micro-LED display products with high brightness, strong reliability and highcontrast for the usage of outdoor display, commercial display, transparent display,special display and other scenarios.

(e) Smart medicine and engineering business — The smart medicine and engineering

provides professional healthcare services and features the innovative integration ofmedical and engineering by integrating engineering technology and medical science.Adhering to people-centred thought, this business focuses on family, community andhospital, connecting testing equipment, medical personnel and costumers by health IoTplatform, constructing intelligent health administrative ecosystem, providing customerswith a "prevision-treatment-nursing" full-chained health services.

(f) Others — Other service mainly includes technical development service and patent

maintenance service.

The main reason to separate the segments is that the Group independently managesthe display business, IoT innovation business, sensor and application solutions, MLEDand smart medicine and engineering and other businesses. As these businesssegments manufacture and sale different products, apply different manufacturingprocesses and specifies in gross profit, the business segments are managedindependently. The management evaluates the performance and allocates resourcesaccording to the profit of each business segment and does not take financing cost andinvestment income into account.

2 Accounting policies for the measurements of reporting segments

For the purposes of assessing segment performance, the Group’s management regularly reviews the revenue and costs attributable to eachreportable segment. Inter-segment sales are determined with reference to prices charged to external parties for similar orders.

2022

Display business

IoT innovation business

Sensor business

MLED business

Smart medicine & engineering business

Others

Offsetting

Total

Operating income

157,949,486,684

27,245,456,382

306,552,648

846,820,654

2,203,142,669

11,232,889,896

(21,370,617,754)

178,413,731,179

Operating costs

145,362,979,605

24,666,540,176

241,869,035

864,618,690

1,809,802,648

4,446,526,834

(19,861,770,836)

157,530,566,152

2021

Display business

IoT innovation business

Sensor business

MLED business

Smart medicine & engineering business

Others

Offsetting

Total

Operating income

203,938,462,632

28,379,332,761

216,187,403

458,249,184

1,846,551,592

11,308,029,354

(25,111,094,914)

221,035,718,012

Operating costs

150,165,560,834

25,169,654,631

166,800,549

444,702,497

1,370,997,955

3,100,671,887

(23,119,562,572)

157,298,825,781

???

The Group develops various businesses by using common assets and liabilities and therefore, it could not analyse assets and liabilities of eachreportable segment respectively by business.

3 Secondary segment reporting (regional segments)

(a) The geographical information is based on the location of customers receiving services

or goods

The following table sets out information about the geographical location of the Group’soperating income from external customers:

?	Operating income from external customers
?	2022	?	2021
?	?	?	?
Mainland China	74,124,463,690	?	95,015,382,254
Other Asian countries and regions	63,351,896,814	?	96,677,882,907
Europe	5,745,261,109	?	5,478,685,804
America	35,121,526,346	?	23,770,495,392
Other regions	70,583,220	?	93,271,655
?	?	?	?
Total	178,413,731,179	?	221,035,718,012

????

(b) Divided based on asset locations

The geographical location of the specified non-current assets is based on the physicallocation of the asset, in the case of fixed assets; the location of the operation to whichthey are allocated, in the case of intangible assets and goodwill; and the location ofoperations, in the case of interests in associates and joint ventures. Most of the non-current assets in the Group are located in the Chinese mainland.

4 Major customers

The Group has one customer (2021: None), the operating income from which is over 10% ofthe Group’s total operating income (2021: Nil) in display business. The operating incomefrom the customer, which represents approximately 16% of the Group’s total operatingincome, is summarised in the table below:

Customer	2022	2021
	RMB	RMB

Customer 1	28,511,004,302	*

Note: * means that annual income from the customer accounted for less than 10%.

XV. Notes to the Company’s financial statements

1 Accounts receivable

(1) The Company’s accounts receivable by customer type:

?	31 December 2022	?	31 December 2021
?	?	?	?
Amounts due from related parties	4,867,860,690	?	4,827,924,553
Amounts due from other customers	4,289,987	?	5,195,374
?	?	?	?
Sub-total	4,872,150,677	?	4,833,119,927
?	?	?	?
Less: Provision for bad and doubtful debts	8,485,408	?	4,264,652
?	?	?	?
Total	4,863,665,269	?	4,828,855,275

????

(2) The ageing analysis of accounts receivable is as follows:

Ageing	2022	?	2021
?	?	?	?
Within 1 year (inclusive)	3,813,706,724	?	4,506,053,150
Over 1 year but within 2 years (inclusive)	742,074,869	?	184,286,182
Over 2 years but within 3 years (inclusive)	182,932,357	?	141,556,611
Over 3 years	133,436,727	?	1,223,984
?	?	?	?
Sub-total	4,872,150,677	?	4,833,119,927
?	?	?	?
Less: Provision for bad and doubtful debts	8,485,408	?	4,264,652
?	?	?	?
Total	4,863,665,269	?	4,828,855,275

????

The ageing is counted starting from the date when accounts receivable are recognised.

(3) Accounts receivable by provisioning method

?	2022
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	8,406,011	?	0%	?	8,406,011	?	100%	?	-
- Customers with low credit risk	4,863,603,112	?	100%	?	-	?	0%	?	4,863,603,112
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	141,554	?	0%	?	79,397	?	56%	?	62,157
?	?	?	?	?	?	?	?	?	?
Total	4,872,150,677	?	100%	?	8,485,408	?	0%	?	4,863,665,269

????

?	2021
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?	?	?	?	?	?	?	?	?
Individual assessment	?	?	?	?	?	?	?	?	?
- Customers with high credit risk	4,090,353	?	0%	?	4,090,353	?	100%	?	-
- Customers with low credit risk	4,828,194,553	?	100%	?	-	?	0%	?	4,828,194,553
?	?	?	?	?	?	?	?	?	?
Collective assessment	?	?	?	?	?	?	?	?	?
- Customers with moderate credit risk	835,021	?	0%	?	174,299	?	21%	?	660,722
?	?	?	?	?	?	?	?	?	?
Total	4,833,119,927	?	100%	?	4,264,652	?	0%	?	4,828,855,275

???

(4) Additions and recoveries of provision for bad and doubtful debts during the year:

?	2022	?	2021
?	?	?	?
Balance at the beginning of the year	4,264,652	?	20,301,553
Charge during the year	4,315,658	?	135,218
Recoveries during the year	(94,902)	?	(136)
Written-off during the year	-	?	(16,171,983)
?	?	?	?
Balance at the end of the year	8,485,408	?	4,264,652

????

(5) Five largest accounts receivable by debtor at the end of the year

The five largest accounts receivable of the Company amounted to RMB 4,466,867,289,amounting to 92% of the total accounts receivable at the end of the year, and no provisionsfor bad and doubtful debts were made at the end of the year.

2 Other receivables

?	Note	31 December 2022	?	31 December 2021
?	?	?	?	?
Dividends receivable	(1)	333,352,986	?	219,715,564
Others	(2)	19,544,792,389	?	15,230,115,046
?	?	?	?	?
Total	?	19,878,145,375	?	15,449,830,610

????

(1) Dividends receivable

?	31 December 2022	?	31 December 2021
?	?	?	?
Beijing Matsushita Colour CRT Co., Ltd.	333,352,986	?	214,240,861
BOE (Korea) Co.,Ltd.	-	?	5,474,703
?	?	?	?
Total	333,352,986	?	219,715,564

???

(2) Others

(a) The Company’s other receivables by customer type:

Customer type	31 December 2022	?	31 December 2021
?	?	?	?
Amounts due from subsidiaries	19,338,630,021	?	15,065,482,829
Amounts due from other related parties	14,894,073	?	1,818,789
Amounts due from other customers	211,976,091	?	169,615,338
?	?	?	?
Sub-total	19,565,500,185	?	15,236,916,956
?	?	?	?
Less: Provision for bad and doubtful debts	20,707,796	?	6,801,910
?	?	?	?
Total	19,544,792,389	?	15,230,115,046

????

(b) The Company’s other receivables by currency:

As at 31 December 2022 and 31 December 2021, there is no other receivables in foreigncurrency.

?	2022	?	2021
?	?	?	?
Within 1 year (inclusive)	15,304,792,246	?	5,896,130,713
Over 1 year but within 2 years (inclusive)	2,669,590,657	?	6,954,523,850
Over 2 years but within 3 years (inclusive)	1,515,874,424	?	2,348,713,430
Over 3 years	75,242,858	?	37,548,963
?	?	?	?
Sub-total	19,565,500,185	?	15,236,916,956
?	?	?	?
Less: Provision for bad and doubtful debts	20,707,796	?	6,801,910
?	?	?	?
Total	19,544,792,389	?	15,230,115,046

????

The ageing is counted starting from the date when other receivables are recognised.

(d) Other receivables by provisioning method

?	2022
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?		?	?	?	?	?	?	?
Individual assessment	20,707,796		0%	?	20,707,796	?	100%	?	-
?	?		?	?	?	?	?	?	?
Collective assessment	19,544,792,389		100%	?	-	?	0%	?	19,544,792,389
?	?		?	?	?	?	?	?	?
Total	19,565,500,185		100%	?	20,707,796	?	0%	?	19,544,792,389

???

?	2021
?	Book value			?	Provision for impairment			?	?
Category	Amount	?	Percentage (%)	?	Amount	?	Percentage (%)	?	Carrying amount
?	?		?	?	?	?	?	?	?
Individual assessment	6,801,910		0%	?	6,801,910	?	100%	?	-
?	?		?	?	?	?	?	?	?
Collective assessment	15,230,115,046		100%	?	-	?	0%	?	15,230,115,046
?	?		?	?	?	?	?	?	?
Total	15,236,916,956		100%	?	6,801,910	?	0%	?	15,230,115,046

(e) Movements of provisions for bad and doubtful debts

?	2022	?	2021
?	?	?	?
Balance at the beginning of the year	6,801,910	?	49,939,652
Charge for the year	13,905,886	?	5,112,258
Written-off during the year	-	?	(48,250,000)
?	?	?	?
Balance at the end of the year	20,707,796	?	6,801,910

????

(f) Other receivables categorised by nature

Nature of other receivables	Note	2022	?	2021
?		?	?	?
Transaction amount	(i)	19,338,630,021	?	15,065,482,829
Others		226,870,164	?	171,434,127
?		?	?	?
Sub-total		19,565,500,185	?	15,236,916,956
?		?	?	?
Less: Provision for bad and doubtful debts		20,707,796	?	6,801,910
?		?	?	?
Total		19,544,792,389	?	15,230,115,046

????

(i) As of December 31, 2022 and December 31, 2021, the Company's current accountsmainly consisted of loans receivable from subsidiaries.

(g) Five largest other receivables by debtor at the end of the year

Other receivables at the end of the year due from the top five debtors of the Companyamounted to RMB 14,977,867,884 in total, most of which are amounts due to/fromrelated parties within the Group. No provision is made for bad and doubtful debts afterassessment.

3 Long-term equity investments

(1) The Company’s long-term equity investments by category:

?	2022	?	2021
?	?	?	?
Investments in subsidiaries	211,178,767,516	?	207,777,846,290
Investments in associates and joint ventures	3,162,185,504	?	3,199,974,945
?	?	?	?
Sub-total	214,340,953,020	?	210,977,821,235
?	?	?	?
Less: Provision for impairment	32,000,000	?	32,000,000
?	?	?	?
Total	214,308,953,020	?	210,945,821,235

????

The closing balance of long-term equity investments represents the Company's impairmentprovision for its subsidiary Beijing BOE Vacuum Technology Co., Ltd. in the prior year ofRMB 32,000,000.

(2) Investments in subsidiaries:

Subsidiary	Balance at the beginning of the year	?	Increase during the year		?	Decrease during the year	?	Balance at the end of the year	Balance of provision for impairment at the beginning of the year	Balance of provision for impairment at the end of the year
?	?		Increase in investments	Share-based payments		?		?	?	?
?	?		?	?		?		?	?	?
Beijing BOE Optoelectronics Technology Co., Ltd.	4,198,742,954		-	14,526,251		(4,172,288,084)		40,981,121	-	-
Chengdu BOE Optoelectronics Technology Co., Ltd.	25,055,603,860		-	53,356,143		-		25,108,960,003	-	-
Hefei BOE Optoelectronics Technology Co., Ltd.	9,032,079,808		-	31,042,976		-		9,063,122,784	-	-
Beijing BOE Display Technology Co., Ltd.	17,520,168,739		-	127,142,375		-		17,647,311,114	-	-
Hefei Xinsheng Optoelectronics Technology Co., Ltd.	20,122,733,179		-	33,217,425		-		20,155,950,604	-	-
Ordos Yuansheng Optoelectronics Co., Ltd.	11,808,874,625		-	5,433,063		-		11,814,307,688	-	-
Chongqing BOE Optoelectronics Technology Co., Ltd.	19,584,823,404		-	14,834,363		-		19,599,657,767	-	-
Fuzhou BOE Optoelectronics Technology Co., Ltd.	14,687,793,781		-	13,578,397		-		14,701,372,178	-	-
Beijing BOE Video Technology Co., Ltd. (“BOE Video”)	4,094,913,328		330,595,800	1,848,592		-		4,427,357,720	-	-
Beijing BOE Vacuum Electronics Co., Ltd.	19,577,537		-	355,992		-		19,933,529	-	-
Beijing BOE Vacuum Technology Co., Ltd.	32,000,000		-	-		-		32,000,000	32,000,000	32,000,000
Beijing Yinghe Century Co., Ltd.	342,184,564		-	10,213,512		-		352,398,076	-	-
BOE Optical Science and technology Co., Ltd.	662,168,271		-	5,309,002		-		667,477,273	-	-
BOE Hyundai LCD (Beijing) Display Technology Co., Ltd.	36,624,841		-	5,361,914		-		41,986,755	-	-
BOE (Hebei) Mobile Technology Co., Ltd.	1,354,940,194		-	1,343,361		-		1,356,283,555	-	-
Beijing BOE Multimedia Technology Co., Ltd.	400,000,000		-	-		-		400,000,000	-	-
Beijing BOE Energy Technology Co., Ltd.	854,286,893		-	3,294,489		-		857,581,382	-	-
Beijing BOE Life Technology Co., Ltd.	10,000,000		-	-		-		10,000,000	-	-
Beijing Zhongxiangying Technologies Co., Ltd.	100,578,919		-	1,688,249		-		102,267,168	-	-
BOE Semi-conductor Co., Ltd.	9,450,000		-	-		-		9,450,000	-	-
BOE Optoelectronics Holding Co., Ltd.	3,211,961,538		275,723,224	-		-		3,487,684,762	-	-
BOE Healthcare Investment & Management Co., Ltd.	7,283,180,411		540,000,000	893,030		-		7,824,073,441	-	-
Hefei BOE Display Technology Co., Ltd.	2,020,815,508		-	20,764,412		-		2,041,579,920	-	-
Beijing BOE Technology Development Co., Ltd.	1,724,087		-	788,267		-		2,512,354	-	-
BOE Wisdom IOT Technology Co., Ltd.	13,441,936		-	14,954,155		-		28,396,091	-	-
Hefei BOE Zhuoyin Technology Co., Ltd.	602,251,996		-	2,452,167		-		604,704,163	-	-
Beijing BOE Real Estate Co., Ltd.	8,568,773		-	911,991		-		9,480,764	-	-
Beijing BOE Marketing Co., Ltd.	31,014,071		-	559,425		-		31,573,496	-	-
BOE (Korea) Co., Ltd.	3,900,987		-	3,194,914		-		7,095,901	-	-
Yunnan Invensight Optoelectronics Technology Co., Ltd. (formerly known as Kunming BOE Display Technology Co., Ltd.)	1,514,944,989		-	3,652,290		-		1,518,597,279	-	-
Mianyang BOE Optoelectronics Technology Co., Ltd.	22,329,872,372		-	12,400,963		-		22,342,273,335	-	-
Beijing BOE Sensing Technology Co., Ltd.	221,944,202		4,263,288,084	10,873,303		-		4,496,105,589	-	-
Wuhan BOE Optoelectronics Technology Co., Ltd.	12,511,267,959		-	13,217,462		-		12,524,485,421	-	-
Chongqing BOE Display Technology Co., Ltd.	9,085,662,024		218,750,000	8,167,786		-		9,312,579,810	-	-
Fuzhou BOE Display Technology Co., Ltd.	22,454,088		-	382,638		-		22,836,726	-	-
Beijing Matsushita Colour CRT Co., Ltd.	2,527,690		-	2,623,935		-		5,151,625	-	-
BOE Innovation Investment Co., Ltd.	2,964,000,000		234,000,000	191,319		-		3,198,191,319	-	-
Hefei BOE Xingyu Technology Co., Ltd.	335,731,430		169,364,156	1,271,650		-		506,367,236	-	-
BOE Education Technology Co., Ltd.	27,881,265		-	1,378,009		-		29,259,274	-	-
Dongfang Chengqi (Beijing) Business Technology Co., Ltd.	8,000,000		2,000,000	3,786,416		-		13,786,416	-	-
BOE Smart Technology Co., Ltd.	1,822,000,000		250,000,000	-		-		2,072,000,000	-	-
Nanjing BOE Display Technology Co., Ltd.	5,591,893,772		-	6,736,025		-		5,598,629,797	-	-
Chengdu BOE Display Sci-tech Co., Ltd. (Chengdu Display Sci-tech)	7,550,673,783		-	6,697,855		-		7,557,371,638	-	-
BOE Mled Technology Co., Ltd.	600,366,251		700,000,000	12,427,674		-		1,312,793,925	-	-
BOE Environmental Energy Technology Co., Ltd.	-		50,000,000	-		-		50,000,000	-	-
Chengdu BOE Display Technology Co., Ltd.	-		5,263,000	-		-		5,263,000	-	-
Others*	84,222,261		-	83,353,256		-		167,575,517	-	-
?	?		?	?		?		?	?	?
Total	207,777,846,290		7,038,984,264	534,225,046		(4,172,288,084)		211,178,767,516	32,000,000	32,000,000

????

* Others are the equity incentive funds paid for subsidiaries of the subsidiaries of the Group tobe accrued.

For information about the major subsidiaries of the Company, refer to Note VII. 1.

(3) Investments in associates:

Movements during the year

Investee

Balance at the beginning of the year

Increase in investments

Decrease in investments

Investment (loss) / income under equity method

Other comprehensive income

Other equity movements

Declared distribution of cash dividends or profits

Balance at the end of the year

Balance of provision for impairment at the end of the year

Erdos BOE Energy Investment Co., Ltd.

76,107,007

60,800,000

(447,397)

136,459,610

Beijing Xindongneng Investment Fund (Limited Partnership)

2,088,917,867

(129,798,594)

241,130,621

(61,062,079)

(104,317,491)

2,034,870,324

Beijing Innovation Industry Investment Co., Ltd.

207,564,573

15,651,980

223,216,553

Beijing Electric Control Industry Investment Co., Ltd.

231,777,557

21,234,700

(2,556,780)

7,694,430

258,149,907

Beijing BOE Art Cloud Technology Co., Ltd.

215,529,981

9,145,156

134,476,619

359,151,756

Chengdu BOE Automotive Electronics Co., Ltd. (formerly known as Chengdu BOE Motor Electronics Co., Ltd)

200,000,000

(200,000,000)

Others

180,077,960

(87,070,668)

65,938,280

63,317

6,910,177

(15,581,712)

150,337,354

3,199,974,945

82,034,700

(416,869,262)

328,861,860

(53,304,332)

141,386,796

(119,899,203)

3,162,185,504

????

4 Deferred tax assets/deferred tax liabilities

?	31 December 2022			?	31 December 2021
Items	Deductible/ (taxable) temporary differences	?	Deferred tax assets/ (liabilities)	?	Deductible/ (taxable) temporary differences	?	Deferred tax assets/(liabilities)
?	?	?	?	?	?	?	?
Deferred tax assets:	?	?	?	?	?	?	?
Provision for impairment of assets	84,310,502	?	12,646,575	?	66,183,860	?	9,927,579
Changes in fair value of investments in other equity instruments	142,547,604	?	21,382,141	?	139,523,200	?	20,928,480
Depreciation of fixed assets	181,992,613	?	27,298,892	?	156,677,700	?	23,501,655
Government grant	143,385,420	?	21,507,813	?	209,807,147	?	31,471,072
Others	38,342,471	?	5,751,371	?	59,527,066	?	8,929,060
?	?	?	?	?	?	?	?
Sub-total	590,578,610	?	88,586,792	?	631,718,973	?	94,757,846
?	?	?	?	?	?	?	?
Amount offset	?	?	(88,586,792)	?	?	?	(94,757,846)
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	-	?	?	?	-
?	?	?	?	?	?	?	?
Deferred tax liabilities:	?	?	?	?	?	?	?
Technology royalty receivable from subsidiaries	(1,250,000,000)	?	(187,500,000)	?	(2,050,000,000)	?	(307,500,000)
Others	(87,160,432)	?	(13,074,064)	?	(87,160,432)	?	(13,074,064)
?	?	?	?	?	?	?	?
Sub-total	(1,337,160,432)	?	(200,574,064)	?	(2,137,160,432)	?	(320,574,064)

?	?	?	?	?	?	?	?
Amount offset	?	?	88,586,792	?	?	?	94,757,846
?	?	?	?	?	?	?	?
Balance after offsetting	?	?	(111,987,272)	?	?	?	(225,816,218)

????

5 Other payables

?	Note	2022	?	2021
?	?	?	?	?
Dividends payable	?	6,410,514	?	6,561,972
Others	(1)	4,242,980,632	?	2,874,322,796
?	?	?	?	?
Total	?	4,249,391,146	?	2,880,884,768

????

(1) Others

(a) The Company’s other payables by category are as follows:

?	Note	2022	2021
?	?	?	?
Amounts due to/from subsidiaries	?	2,912,284,353	1,364,404,865
Repurchase obligation of restricted shares	V.39	753,440,228	835,215,390
Purchase of projects, equipment and intangible assets	?	405,997,313	462,535,293
Others	?	171,258,738	212,167,248
?	?	?	?
Total	?	4,242,980,632	2,874,322,796

????

(b) The Company’s other payables by currency:

?	2022				?	2021
?	Amount in original currency	?	Exchange rate	RMB/RMB equivalents		Amount in original currency	Exchange rate	?	RMB/RMB equivalents
?	?		?	?		?	?		?
RMB	?		?	2,182,655,332		?	?		2,536,057,636
USD	295,816,014		6.9646	2,060,240,211		52,998,757	6.3757		337,904,175
EUR	11,463		7.4229	85,089		50,000	7.2197		360,985
?	?		?	?		?	?		?
Total	?		?	4,242,980,632		?	?		2,874,322,796

????

6 Long-term loans

?	2022			?	2021
?	?	?	Credited/ collateralised	?	?	?	Credited/ collateralised
?	RMB	?	guaranteed/ pledged	?	RMB	?	guaranteed/ pledged
?	?	?	?	?	?	?	?
Bank loans	?	?	?	?	?	?	?
- RMB	42,222,030,392	?	Credited	?	43,079,530,231	?	Credited
Less: Long-term loans due within one year	2,664,530,392	?	Credited	?	10,871,030,231	?	Credited
?	?	?	?	?	?	?	?
Total	39,557,500,000	?	?	?	32,208,500,000	?	?

????

The interest rate of RMB long-term loans for the Company ranged from 0% to 3.53% in 2022(2021: 0% to 3.77%).

7 Other non-current liabilities

Item	31 December 2022	31 December 2021	?
?	?	?
Payables to related parties	96,394,661,805	74,506,661,805

As of December 31, 2022 and December 31, 2021, the Company's payables to relatedparties mainly consisted of loans payables from subsidiaries.

8 Capital reserve

Items	Share premium	Other capital reserves	?	Total
?	?	?		?
Balance at the beginning of the year	53,751,381,484	(153,348,332)		53,598,033,152
Add: Equity-settled share-based payments	-	699,065,561		699,065,561
Other movements in equity of associates	-	141,386,796		141,386,796
Cancellation of treasury shares	(641,811,942)	-		(641,811,942)
Others	(42,952,736)	(60,093,618)		(103,046,354)
?	?	?		?
Balance at the end of the year	53,066,616,806	627,010,407		53,693,627,213

????

9 Other comprehensive income

?	?	?	Movements during the year						?	?
Item	Balance at the beginning of the year	?	Before-tax amount	?	Less: Income tax expense	?	Less: Transfer of other comprehensive income to profit or loss	Less: Transfer of other comprehensive income to retained earnings	?	Balance at the end of the year
?	?	?	?	?	?	?	?	?	?	?
Items that will not be reclassified to profit or loss	89,258,107	?	(56,392,053)	?	(453,661)	?	-	32,873,780	?	445,935
Including: Other comprehensive income recognised under equity method	207,852,822	?	(53,367,649)	?	-	?	-	32,873,780	?	121,611,393
Changes in fair value of investments in other equity instruments	(118,594,715)	?	(3,024,404)	?	(453,661)	?	-	-	?	(121,165,458)
Items that may be reclassified to profit or loss	(233,457)	?	63,317	?	-	?	(64,550)	-	?	(105,590)
?	?	?	?	?	?	?	?	?	?	?
Total	89,024,650	?	(56,328,736)	?	(453,661)	?	(64,550)	32,873,780	?	340,345

???

10 Retained earnings

Item	2022	?	2021
?	?	?	?
Retained earnings at the beginning of the year	11,950,975,927	?	11,954,088,031
Add: Net profits for the year	3,481,863,512	?	4,396,496,566
Less: Appropriation for statutory surplus reserve	348,186,351	?	439,649,657
Interest on holders of other equity instruments	530,695,890	?	533,600,000
Dividends to ordinary shares	7,958,923,130	?	3,476,073,919
Transfer of other comprehensive income to retained earnings	(29,586,402)	?	(49,714,906)
?	?	?	?
Retained earnings at the end of the year	6,624,620,470	?	11,950,975,927

????

11 Operating income and operating costs

?	2022			?	2021
Item	Income	?	Cost	?	Income	?	Cost
?	?	?	?	?	?	?	?
Principal activities	4,826,443,711	?	9,746,176	?	5,664,683,841	?	8,880,161
Other operating activities	46,885,004	?	334,092	?	52,314,193	?	7,579,293
?	?	?	?	?	?	?	?
Total	4,873,328,715	?	10,080,268	?	5,716,998,034	?	16,459,454
?	?	?	?	?	?	?	?
Including: Revenue from contracts with customers	4,758,053,462	?	417,034	?	5,594,507,267	?	6,773,342
Other income	115,275,253	?	9,663,234	?	122,490,767	?	9,686,112

12 Investment income

?	2022	?	2021
?	?	?	?
Income from long-term equity investments accounted for using the cost method	1,221,116,853	?	1,841,946,602
Income from long-term equity investments accounted for using the equity method	328,861,860	?	864,640,400
Investment income from disposal of long-term equity investments	30,000,000	?	45,527,110
Dividend income from investments in other equity instruments	206,209	?	3,554,579
Including: Dividend income from investments in other equity instruments held at the balance sheet date	206,209	?	3,554,579
Others	353,903,009	?	-
?	?	?	?
Total	1,934,087,931	?	2,755,668,691

????

13 Income tax expenses

?	Note	2022	?	2021
?	?	?	?	?
Current tax expense for the period based on tax law and regulations	?	315,456,182	?	418,134,244
Changes in deferred tax assets/liabilities	(1)	(113,375,285)	?	(157,278,240)
?	?	?	?	?
Total	?	202,080,897	?	260,856,004

????

(1) The analysis of changes in deferred tax assets/liabilities is set out below:

?	2022	?	2021
?	?	?	?
Origination and reversal of temporary differences	(113,375,285)	?	(157,278,240)

???

(2) Reconciliation between income tax expenses and accounting profit:

Item	2022	?	2021
?	?	?	?
Profit before taxation	3,683,944,409	?	4,657,352,570
Expected income tax expense at tax rate of 15%	552,591,661	?	698,602,886
Add: Non-deductible expenses	32,425,844	?	22,551,281
Non-taxable income	(253,782,990)	?	(362,122,686)
Tax deduction for R&D activities	(129,158,755)	?	(107,936,270)
Others	5,137	?	9,760,793
?	?	?	?
Income tax expenses	202,080,897	?	260,856,004

????

14 Supplementary information on cash flow statement

(1) Supplement to the cash flow statement

?	2022	?	2021
?	?	?	?
(a) Reconciliation of net profit to cash flows from operating activities:	?	?	?
?	?	?	?
Net profit	3,481,863,512	?	4,396,496,566
Add: Credit losses	18,126,642	?	5,247,340
Depreciation of fixed assets, investment properties and right-of-use assets	198,186,954	?	186,180,161
Amortisation of intangible assets	205,316,168	?	175,887,643
Amortisation of long-term deferred expenses	53,563,810	?	74,101,005
Loss on disposal of fixed assets, intangible assets and other long-term assets	-	?	773,327
Losses from scrapping of fixed assets	11,563	?	-
Financial expenses	572,555,726	?	796,624,497
Investment income	(1,934,087,931)	?	(2,755,668,691)
Share-based payments	164,840,515	?	139,972,018
Change in deferred income	(916,302,566)	?	(910,723,593)
Changes in deferred tax assets and liabilities	(113,828,946)	?	(159,881,386)
Decrease in gross inventories	787,291	?	2,769,045
Decrease / (increase) in operating receivables	780,128,458	?	(83,241,004)
Increase / (decrease) in operating payables	1,173,595,580	?	(1,164,437,376)
?	?	?	?
Net cash inflow from operating activities	3,684,756,776	?	704,099,552

????

(b) Net changes in cash and cash equivalents:	?	?	?
?	2022	?	2021
?	?	?	?
Cash and cash equivalents at the end of the year	7,111,879,033	?	5,599,937,349
Less: Cash and cash equivalents at the beginning of the year	5,599,937,349	?	4,360,065,216
?	?	?	?
Net increase in cash and cash equivalents	1,511,941,684	?	1,239,872,133

????

(2) Details of cash and cash equivalents

?	2022	?	2021
?	?	?	?
Cash on hand	13,361	?	12,554
Bank deposits available on demand	7,111,658,528	?	5,527,470,074
Other monetary funds available on demand	207,144	?	72,454,721
?	?	?	?
Closing balance of cash and cash equivalents	7,111,879,033	?	5,599,937,349

????

Note: Cash and cash equivalents disclosed above exclude other monetary fund with

restricted usage.

XVI. Extraordinary gains and losses in 2022

?	?	2022	?	2021
?	?	?	?	?
Investment income from disposal of long-term equity investments	?	829,872,568	?	37,327,797
Other income from long-term equity investments		4,620,534,865		-
Losses from disposal of non-current assets	?	(4,908,339)	?	136,846,803
Government grants recognised through profit or loss (excluding those having close relationships with the Company’s normal operation and enjoyed in fixed amount or quantity according to uniform national standard)	?	5,458,665,272	?	2,077,537,306
Changes in fair value of financial assets held for trading and investment income from disposal of financial assets held for trading	?	275,498,559	?	121,656,142
Reversal of provision for bad and doubtful debts of receivables assessed on an individual basis	?	18,395,999	?	20,304,301
Other non-operating income and expenses besides items above	?	90,115,764	?	90,587,512
Less: Tax effect	?	133,580,776	?	191,362,477
?	?	?	?	?
Total	?	11,154,593,912	?	2,292,897,384
?	?	?	?	?
Including: Extraordinary gains affecting net profit of equity shareholders of the Company	?	9,779,529,951	?	1,893,395,748
Extraordinary gains affecting net profit of equity shareholders of the non-controlling shareholders	?	1,375,063,961	?	399,501,636

???

Note: Extraordinary gain and loss item listed above are presented in the amount before

taxation.

XVII. Return on net assets and earnings per share

In accordance with “Regulation on the Preparation of Information Disclosures by CompaniesIssuing Securities No.9 – Calculation and Disclosure of the Return on Net Assets andEarnings Per Share” (2010 revised) issued by the CSRC and relevant accounting standards,the Group’s return on net assets and earnings per share are calculated as follows:

Profit for the reporting period	Weighted average return on net assets (%)	?	Basic earnings per share	?	Diluted earnings per share
?	?	?	?	?	?
Net profit attributable to the Company’s ordinary equity shareholders	5.45%	?	0.19	?	Not applicable
Net profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	(2.21%)	?	(0.08)	?	Not applicable

????

1 Calculation of earnings per share

(1) Basic earnings per share

For calculation of the basic earnings per share, refer to Note V.57.

(2) Basic earnings per share excluding extraordinary gain and loss

Basic earnings per share excluding extraordinary gain and loss is calculated as dividingconsolidated net profit excluding extraordinary gain and loss attributable to ordinaryshareholders of the Company by the weighted average number of ordinary sharesoutstanding:

?	2022	?	2021
?	?	?	?
Consolidated net profit attributable to ordinary shareholders of the Company	6,955,656,068	?	25,395,917,610
Extraordinary gains and losses attributable to ordinary shareholders of the Company	9,779,529,951	?	1,893,395,748
Consolidated net (loss) / profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	(2,823,873,883)	?	23,502,521,862
Weighted average number of ordinary shares outstanding	37,502,641,911	?	35,704,986,088
Basic earnings per share excluding extraordinary gain and loss (RMB/share)	(0.08)	?	0.66

???

2 Calculation of weighted average return on net assets

(1) Weighted average return on net assets

Weighted average return on net assets is calculated as dividing consolidated net profitattributable to ordinary shareholders of the Company by the weighted average amount ofconsolidated net assets:

?	2022	?	2021
?	?	?	?
Consolidated net profit attributable to ordinary shareholders of the Company	6,955,656,068	?	25,395,917,610
Weighted average amount of consolidated net assets	127,513,376,950	?	106,139,286,422
Weighted average return on net assets	5.45%	?	23.93%

???

Calculation of weighted average amount of consolidated net assets is as follows:

?	2022	?	2021
?	?	?	?
Consolidated net assets at the beginning of the year	129,057,243,520	?	89,165,346,609
Effect of consolidated net profit attributable to ordinary shareholders of the Company	3,477,828,034	?	12,697,958,805
Effect of non-public issuance of shares	-	?	6,623,170,611
Effect of repurchase of treasury shares	(495,230,613)	?	(594,867,425)
Distribution of profits to ordinary shareholders	(4,626,435,310)	?	(1,738,036,960)
Effect of change in shareholding ratio of subsidiaries	374,012,026	?	(426,455,629)
Effect of movements in amounts attributable to ordinary shareholders of the Company	(274,040,707)	?	412,170,411
?	?	?	?
Weighted average amount of consolidated net assets	127,513,376,950	?	106,139,286,422

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(2) Weighted average return on net assets excluding extraordinary gains and losses

Weighted average return on net assets excluding extraordinary gain and loss is calculated asdividing consolidated net profit excluding extraordinary gain and loss attributable to ordinaryshareholders of the Company by the weighted average amount of consolidated net assets:

?	2022	?	2021
?	?	?	?
Consolidated net (loss) / profit excluding extraordinary gain and loss attributable to the Company’s ordinary equity shareholders	(2,823,873,883)	?	23,502,521,862
Weighted average amount of consolidated net assets	127,513,376,950	?	106,139,286,422
Weighted average return on net assets excluding extraordinary gain and loss	(2.21%)	?	22.14%

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