BOE Technology Group Co., Ltd.
ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR 1 JANUARY 2024 TO 31 DECEMBER 2024IF THERE IS ANY CONFLICT BETWEEN THE CHINESE VERSION AND ITS ENGLISH
TRANSLATION, THE CHINESE VERSION WILL PREVAIL
Page 1 of 8
AUDITOR’S REPORT
毕马威华振审字第2511030号
To 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 December2024, 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 2024, and theconsolidated and company financial performance and cash flows of BOE for the year thenended in accordance with the requirements of Accounting Standards for BusinessEnterprises issued by the Ministry of Finance of the People’s Republic of China.
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified 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 8
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030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 for the current period. These matterswere addressed in the context of our audit of the financial statements as a whole, and informing our 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” 24 and “V. Notes to the consolidated financial statements” 45. | |
| 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 sale of products relating to display device across the domestic and overseas markets. 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 revenue is usually recognised 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 policies 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 8
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030号
Key Audit Matters (continued)
| Revenue recognition (continued) | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 24 and “V. Notes to the consolidated financial statements” 45. | |
| 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 evaluate 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 8
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030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” 20 and “V. Notes to the consolidated financial statements” 15, 18. | |
| The key audit matter | How the matter was addressed in our audit |
| BOE Group principally generates revenue from the production and sale of display devices. Due to the fluctuation of supply-demand relationship of display devices and the influence of technology upgrading, the profit level of different production lines suffer dramatic fluctuation. As at 31 December 2024, the book value of fixed assets and intangible assets amounted to RMB216.168 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 2024 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, evaluate the competence, professional quality and objectivity of experts hired by the management; and adopt our own valuation experts’ work, evaluate 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 5 of 8
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030号
Key Audit Matters (continued)
| Impairment of fixed assets and intangible assets (continued) | |
| Refer to the accounting policies set out in the notes to the financial statements “III. Significant accounting policies and accounting estimates” 20 and “V. Notes to the consolidated financial statements” 15, 18. | |
| 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; evaluate 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 standards. |
Page 6 of 8
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030号
Other Information
BOE’s management is responsible for the other information. The other information comprisesall the information included in 2024 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 requirements of Accounting Standards for BusinessEnterprises, and for the design, implementation and maintenance of such internal controlnecessary to enable that the financial statements are free from material misstatement,whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing BOE’s 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 7 of 8
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030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 audit
procedures that are appropriate in the circumstances.
? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.
? Conclude on the appropriateness of the 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 (including the disclosures), structure and content of the
financial statements and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
Page 8 of 8
AUDITOR’S REPORT (continued)
毕马威华振审字第2511030号
Auditor’s Responsibilities for the Audit of the Financial Statement (continued)
? Obtain sufficient appropriate audit evidence regarding the financial information of theentities 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 Liu Jingyuan
18 April 2025
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2024
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Assets | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current assets | ? | ? | ? | ? |
| Cash at bank and on hand | V.1 | 74,252,625,215 | ? | 72,467,392,718 |
| Financial assets held for trading | V.2 | 3,116,435,963 | ? | 7,755,964,495 |
| Bills receivable | V.3 | 338,059,783 | ? | 375,577,011 |
| Accounts receivable | V.4 | 36,338,199,204 | ? | 33,365,416,490 |
| Receivables under financing | V.5 | 472,537,400 | ? | 408,534,622 |
| Prepayments | V.6 | 634,482,224 | ? | 558,659,780 |
| Other receivables | V.7 | 812,871,521 | ? | 726,659,207 |
| Inventories | V.8 | 23,313,464,392 | ? | 24,119,667,325 |
| Contract assets | V.9 | 150,871,486 | ? | 95,710,742 |
| Non-current assets due within one year | ? | 3,900,201 | ? | 8,683,381 |
| Other current assets | V.10 | 3,954,007,985 | ? | 3,308,338,931 |
| ? | ? | ? | ? | ? |
| Total current assets | ? | 143,387,455,374 | ? | 143,190,604,702 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Assets (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Non-current assets | ? | ? | ? | ? |
| Long-term receivables | ? | 492,067 | ? | 3,341,844 |
| Long-term equity investments | V.11 | 13,533,271,302 | ? | 13,731,696,627 |
| Investments in other equity instruments | V.12 | 441,371,815 | ? | 494,629,577 |
| Other non-current financial assets | V.13 | 2,735,680,042 | ? | 2,253,778,325 |
| Investment properties | V.14 | 1,751,189,740 | ? | 1,412,553,446 |
| Fixed assets | V.15 | 204,904,419,511 | ? | 210,371,476,524 |
| Construction in progress | V.16 | 30,159,016,097 | ? | 29,670,115,546 |
| Right-of-use assets | V.17 | 754,408,280 | ? | 724,344,345 |
| Intangible assets | V.18 | 11,263,463,194 | ? | 11,565,585,700 |
| Development costs | VI.2 | 109,323,354 | ? | 166,977,531 |
| Goodwill | V.19 | 653,575,022 | ? | 704,705,586 |
| Long-term deferred expenses | V.20 | 598,444,923 | ? | 534,494,564 |
| Deferred tax assets | V.21 | 694,888,275 | ? | 396,877,020 |
| Other non-current assets | V.22 | 18,991,222,545 | ? | 3,965,918,458 |
| ? | ? | ? | ? | ? |
| Total non-current assets | ? | 286,590,766,167 | ? | 275,996,495,093 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total assets | ? | 429,978,221,541 | ? | 419,187,099,795 |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Liabilities and shareholders’ equity | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current liabilities | ? | ? | ? | ? |
| Short-term loans | V.23 | 1,563,317,166 | ? | 1,746,184,534 |
| Bills payable | V.24 | 1,399,557,969 | ? | 919,313,033 |
| Accounts payable | V.25 | 36,713,498,406 | ? | 32,977,603,351 |
| Advance payments received | ? | 118,971,193 | ? | 94,704,981 |
| Contract liabilities | V.26 | 2,083,836,158 | ? | 3,000,168,620 |
| Employee benefits payable | V.27 | 4,076,008,388 | ? | 3,100,911,276 |
| Taxes payable | V.28 | 1,576,606,596 | ? | 1,317,080,022 |
| Other payables | V.29 | 20,827,962,570 | ? | 19,487,760,965 |
| Non-current liabilities due within one year | V.30 | 43,506,539,611 | ? | 24,437,027,442 |
| Other current liabilities | V.31 | 3,394,971,140 | ? | 3,085,773,591 |
| ? | ? | ? | ? | ? |
| Total current liabilities | ? | 115,261,269,197 | ? | 90,166,527,815 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Non-current liabilities | ? | ? | ? | ? |
| Long-term loans | V.32 | 100,932,391,740 | ? | 121,546,339,022 |
| Lease liabilities | V.33 | 631,418,986 | ? | 542,141,496 |
| Long-term payables | V.34 | 121,077,871 | ? | 171,611,393 |
| Provisions | V.35 | 1,652,566 | ? | 3,580,000 |
| Deferred income | V.36 | 4,544,617,931 | ? | 4,763,051,955 |
| Deferred tax liabilities | V.21 | 1,290,798,747 | ? | 1,694,639,729 |
| Other non-current liabilities | V.37 | 2,648,822,759 | ? | 2,500,522,066 |
| ? | ? | ? | ? | ? |
| Total non-current liabilities | ? | 110,170,780,600 | ? | 131,221,885,661 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities | ? | 225,432,049,797 | ? | 221,388,413,476 |
| ? |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated balance sheetas at 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Shareholders’ equity | ? | ? | ? | ? |
| Share capital | V.38 | 37,645,016,203 | ? | 37,652,529,195 |
| Other equity instruments | V.39 | 2,043,402,946 | ? | 2,043,402,946 |
| Capital reserve | V.40 | 52,207,573,706 | ? | 52,113,580,746 |
| Less: Treasury shares | V.41 | 1,216,490,683 | ? | 462,036,240 |
| Other comprehensive income | V.42 | (1,171,823,864) | ? | (1,136,997,224) |
| Specific reserve | ? | 139,227,664 | ? | 66,472,402 |
| Surplus reserve | V.43 | 3,879,754,479 | ? | 3,571,778,635 |
| Retained earnings | V.44 | 39,410,894,857 | ? | 35,579,576,607 |
| ? | ? | ? | ? | ? |
| Total equity attributable to shareholders of the Company | ? | 132,937,555,308 | ? | 129,428,307,067 |
| ? | ? | ? | ? | ? |
| Non-controlling interests | ? | 71,608,616,436 | ? | 68,370,379,252 |
| ? | ? | ? | ? | ? |
| Total shareholders’ equity | ? | 204,546,171,744 | ? | 197,798,686,319 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | ? | 429,978,221,541 | ? | 419,187,099,795 |
???????
???????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao 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 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2024
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Assets | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current assets | ? | ? | ? | ? |
| Cash at bank and on hand | ? | 4,622,109,813 | ? | 4,255,943,334 |
| Accounts receivable | XVI.1 | 3,557,166,876 | ? | 4,870,413,096 |
| Prepayments | ? | 6,440,618 | ? | 4,807,079 |
| Other receivables | XVI.2 | 32,075,715,118 | ? | 28,381,628,538 |
| Inventories | ? | 31,198,429 | ? | 19,337,053 |
| Other current assets | ? | 143,433,811 | ? | 126,758,000 |
| ? | ? | ? | ? | ? |
| Total current assets | ? | 40,436,064,665 | ? | 37,658,887,100 |
| ? | ? | ? | ? | ? |
| Non-current assets | ? | ? | ? | ? |
| Long-term equity investments | XVI.3 | 203,191,541,965 | ? | 191,109,201,591 |
| Investments in other equity instruments | ? | 60,783,163 | ? | 62,020,419 |
| Other non-current financial assets | ? | 1,562,089,931 | ? | 1,493,778,324 |
| Investment properties | ? | 235,247,956 | ? | 246,605,801 |
| Fixed assets | ? | 1,542,132,717 | ? | 945,373,523 |
| Construction in progress | ? | 1,262,758,363 | ? | 612,320,190 |
| Right-of-use assets | ? | 47,104,764 | ? | 86,718,376 |
| Intangible assets | ? | 1,001,523,422 | ? | 997,974,193 |
| Long-term deferred expenses | ? | 290,214,066 | ? | 337,051,031 |
| Other non-current assets | ? | 320,460,049 | ? | 1,740,557,308 |
| ? | ? | ? | ? | ? |
| Total non-current assets | ? | 209,513,856,396 | ? | 197,631,600,756 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total assets | ? | 249,949,921,061 | ? | 235,290,487,856 |
????
????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Liabilities and shareholders’ equity | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Current liabilities | ? | ? | ? | ? |
| Accounts payable | ? | 503,922,556 | ? | 566,941,531 |
| Advance payments received | ? | 13,140,209 | ? | 10,542,897 |
| Contract liabilities | ? | 719,297 | ? | 74,594 |
| Employee benefits payable | ? | 453,127,454 | ? | 300,267,423 |
| Taxes payable | ? | 310,771,542 | ? | 279,057,718 |
| Other payables | XVI.4 | 3,471,340,673 | ? | 3,515,995,979 |
| Non-current liabilities due within one year | ? | 11,029,129,176 | ? | 4,029,679,945 |
| Other current liabilities | ? | 609,513,850 | ? | 77,354,731 |
| ? | ? | ? | ? | ? |
| Total current liabilities | ? | 16,391,664,757 | ? | 8,779,914,818 |
| ? | ? | ? | ? | ? |
| Non-current liabilities | ? | ? | ? | ? |
| Long-term loans | XVI.5 | 41,257,600,000 | ? | 44,053,100,000 |
| Lease liabilities | ? | 555,400 | ? | 42,482,289 |
| Deferred income | ? | 47,137,540 | ? | 954,798,900 |
| Deferred tax liabilities | ? | 18,162,044 | ? | 222,201,768 |
| Other non-current liabilities | ? | 89,520,793,681 | ? | 79,800,793,681 |
| ? | ? | ? | ? | ? |
| Total non-current liabilities | ? | 130,844,248,665 | ? | 125,073,376,638 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities | ? | 147,235,913,422 | ? | 133,853,291,456 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company balance sheetas at 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| Liabilities and shareholders’ equity (continued) | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Shareholders’ equity | ? | ? | ? | ? |
| Share capital | V.38 | 37,645,016,203 | ? | 37,652,529,195 |
| Other equity instruments | V.39 | 2,043,402,946 | ? | 2,043,402,946 |
| Capital reserve | XVI.6 | 51,871,366,552 | ? | 51,741,820,724 |
| Less: Treasury shares | V.41 | 1,216,490,683 | ? | 462,036,240 |
| Other comprehensive income | XVI.7 | (267,884,908) | ? | (296,433,056) |
| Surplus reserve | V.43 | 3,879,754,479 | ? | 3,571,778,635 |
| Retained earnings | XVI.8 | 8,758,843,050 | ? | 7,186,134,196 |
| ? | ? | ? | ? | ? |
| Total shareholders’ equity | ? | 102,714,007,639 | ? | 101,437,196,400 |
| ? | ||||
| ? | ? | ? | ? | ? |
| Total liabilities and shareholders’ equity | ? | 249,949,921,061 | ? | 235,290,487,856 |
??????
??????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao 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 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2024(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| I. Operating income | V.45 | 198,380,605,661 | ? | 174,543,445,895 |
| ? | ? | ? | ? | ? |
| II. Less: Operating costs | V.45 | 168,221,949,573 | ? | 154,473,670,036 |
| Taxes and surcharges | V.46 | 1,296,146,896 | ? | 1,132,985,865 |
| Selling and distribution expenses | V.47 | 1,995,294,652 | ? | 1,896,331,536 |
| General and administrative expenses | V.48 | 6,218,672,130 | ? | 5,944,875,540 |
| Research and development expenses | V.49 | 13,123,309,231 | ? | 11,319,503,088 |
| Financial expenses | V.50 | 1,224,387,370 | ? | 1,150,310,546 |
| Including: Interest expenses | ? | 4,033,259,880 | ? | 3,536,889,899 |
| Interest income | ? | 2,285,948,395 | ? | 2,032,287,888 |
| Add: Other income | V.51 | 2,288,477,566 | ? | 4,202,333,156 |
| Investment income (“-” for losses) | V.52 | (540,900,653) | ? | 810,709,642 |
| Including: Income from investments in associates and joint ventures | ? | (752,455,175) | ? | 702,555,344 |
| Gains from changes in fair value | V.53 | 522,447,744 | ? | 291,542,233 |
| Credit losses | V.54 | (112,125,114) | ? | (18,562,198) |
| Impairment losses | V.55 | (3,624,262,580) | ? | (2,406,230,634) |
| Gains from asset disposals | V.56 | 96,175,264 | ? | 13,090,386 |
| ? | ? | ? | ? | ? |
| III. Operating profit | ? | 4,930,658,036 | ? | 1,518,651,869 |
| ? | ? | ? | ? | ? |
| Add: Non-operating income | V.57 | 216,286,272 | ? | 383,996,163 |
| Less: Non-operating expenses | V.57 | 61,290,675 | ? | 69,649,357 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| IV. Profit before income tax | ? | 5,085,653,633 | ? | 1,832,998,675 |
| ? | ? | ? | ? | ? |
| Less: Income tax expenses | V.58 | 940,379,751 | ? | 1,463,127,346 |
| ? | ? | ? | ? | ? |
| V. Net profit for the year | ? | 4,145,273,882 | ? | 369,871,329 |
| ? | ? | ? | ? | ? |
| Shareholders of the Company | ? | 5,323,248,974 | ? | 2,547,435,360 |
| Non-controlling interests | ? | (1,177,975,092) | ? | (2,177,564,031) |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| VI. Other comprehensive income, net of tax | V.42 | (5,776,420) | ? | (18,318,697) |
| ? | ? | ? | ? | ? |
| Other comprehensive income (net of tax) attributable to shareholders of the Company | ? | (19,707,777) | ? | (114,919,973) |
| (1) Items that will not be reclassified to profit or loss | ? | ? | ? | ? |
| 1. Other comprehensive income recognised under equity method | ? | 45,589,853 | ? | (302,258,742) |
| 2. Changes in fair value of investments in other equity instruments | ? | (35,206,474) | ? | 4,408,730 |
| (2) Items that may be reclassified to profit or loss | ? | ? | ? | ? |
| 1. Other comprehensive income recognised under equity method | ? | - | ? | 38,009 |
| 2. Translation differences arising from translation of foreign currency financial statements | ? | (30,091,156) | ? | 182,892,030 |
| Other comprehensive income (net of tax) attributable to non-controlling interests | ? | 13,931,357 | ? | 96,601,276 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated income statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| VII. Total comprehensive income for the year | ? | 4,139,497,462 | ? | 351,552,632 |
| ? | ? | ? | ? | ? |
| Attributable to shareholders of the Company | ? | 5,303,541,197 | ? | 2,432,515,387 |
| Attributable to non-controlling interests | ? | (1,164,043,735) | ? | (2,080,962,755) |
| ? | ? | ? | ? | ? |
| VIII. Earnings per share | ? | ? | ? | ? |
| (1) Basic earnings per share | V.59 | 0.14 | ? | 0.06 |
| (2) Diluted earnings per share | V.59 | Not applicable? | ? | Not applicable |
??????
??????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao 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 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2024(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| I. Operating income | XVI.9 | 5,558,110,352 | ? | 4,708,465,987 |
| ? | ? | ? | ? | ? |
| II. Less: Operating costs | XVI.9 | 11,459,521 | ? | 12,627,567 |
| Taxes and surcharges | ? | 41,818,720 | ? | 43,605,220 |
| General and administrative expenses | ? | 1,944,464,914 | ? | 1,332,250,430 |
| Research and development expenses | ? | 2,452,578,625 | ? | 2,128,570,079 |
| Financial expenses | ? | 494,390,647 | ? | 480,003,968 |
| Including: Interest expenses | ? | 528,904,973 | ? | 545,603,838 |
| Interest income | ? | 39,349,343 | ? | 71,059,318 |
| Add: Other income | ? | 955,230,189 | ? | 951,291,761 |
| Investment income (“-” for losses) | XVI.10 | 1,708,144,852 | ? | 1,991,483,354 |
| Including: Income from investments in associates and joint ventures | ? | (476,270,739) | ? | 429,364,809 |
| Gains from changes in fair value | ? | 3,403,675 | ? | 49,498,773 |
| Credit losses | ? | (80,000,336) | ? | 5,490,866 |
| Gains from asset disposals | ? | 818 | ? | 5,077,109 |
| ? | ? | ? | ? | ? |
| III. Operating profit | ? | 3,200,177,123 | ? | 3,714,250,586 |
| ? | ? | ? | ? | ? |
| Add: Non-operating income | ? | 6,601,784 | ? | 3,921,345 |
| Less: Non-operating expenses | ? | 22,272,166 | ? | 6,859,836 |
| ? | ? | ? | ? | ? |
| IV. Profit before income tax | ? | 3,184,506,741 | ? | 3,711,312,095 |
| ? | ? | ? | ? | ? |
| Less: Income tax expenses | ? | 105,274,860 | ? | 405,340,309 |
| ? | ? | ? | ? | ? |
| V. Net profit for the year | ? | 3,079,231,881 | ? | 3,305,971,786 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company income statementfor the year ended 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| VI. Other comprehensive income, net of tax | XVI.7 | 29,074,708 | ? | (295,598,180) |
| ? | ? | ? | ? | ? |
| (1) Items that will not be reclassified to profit or loss | ? | ? | ? | ? |
| 1. Other comprehensive income recognised under equity method | ? | 30,126,376 | ? | (302,258,742) |
| 2. Changes in fair value of investments in other equity instruments | ? | (1,051,668) | ? | 6,660,562 |
| (2) Items that may be reclassified to profit or loss | ? | - | ? | - |
| ? | ? | ? | ? | ? |
| VII. Total comprehensive income for the year | ? | 3,108,306,589 | ? | 3,010,373,606 |
???
???
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao 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 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2024(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| I. Cash flows from operating activities: | ? | ? | ? | ? |
| Proceeds from sale of goods and rendering of services | ? | 207,177,636,682 | ? | 180,947,736,116 |
| Refund of taxes | ? | 9,436,155,018 | ? | 10,373,888,040 |
| Proceeds from other operating activities | V.60(1) a | 2,601,966,374 | ? | 6,145,484,931 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 219,215,758,074 | ? | 197,467,109,087 |
| ? | ? | ? | ? | ? |
| Payment for goods and services | ? | (139,974,564,163) | ? | (129,474,896,348) |
| Payment to and for employees | ? | (19,215,661,123) | ? | (18,253,350,198) |
| Payment of various taxes | ? | (4,938,746,118) | ? | (3,823,925,586) |
| Payment for other operating activities | V.60(1) b | (7,349,209,291) | ? | (7,613,110,071) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (171,478,180,695) | ? | (159,165,282,203) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash flows generated from operating activities | V.61(1) | 47,737,577,379 | ? | 38,301,826,884 |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| II. Cash flows from investing activities: | ? | ? | ? | ? |
| Proceeds from disposal of investments | ? | 59,316,324,819 | ? | 70,648,492,540 |
| Investment returns received | ? | 671,568,341 | ? | 569,248,170 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | ? | 156,338,437 | ? | 62,750,260 |
| Net proceeds from acquisition of subsidiaries | V.61(2) | - | ? | 59,293,141 |
| Proceeds from other investing activities | V.60(2) a | 2,485,332,205 | ? | 3,940,488,690 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 62,629,563,802 | ? | 75,280,272,801 |
| ? | ? | ? | ? | ? |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | ? | (34,037,798,428) | ? | (24,807,796,061) |
| Payment for acquisition of investments | ? | (61,241,398,520) | ? | (79,608,953,781) |
| Net payment for acquisition of subsidiaries | V.61(2) | - | ? | (165,333,139) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (95,279,196,948) | ? | (104,582,082,981) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flows used in investing activities | ? | (32,649,633,146) | ? | (29,301,810,180) |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| III. Cash flows from financing activities: | ? | ? | ? | ? |
| Proceeds from investors | ? | 4,652,010,645 | ? | 3,291,140,600 |
| Including: Proceeds from non-controlling shareholders of subsidiaries | ? | 4,652,010,645 | ? | 3,291,140,600 |
| Proceeds from borrowings | ? | 47,194,037,263 | ? | 27,341,860,631 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 51,846,047,908 | ? | 30,633,001,231 |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated cash flow statementfor the year ended 31 December 2024 (continued)(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| III. Cash flows from financing activities (continued): | ? | ? | ? | ? |
| Repayments of borrowings | ? | (49,117,270,919) | ? | (30,091,893,380) |
| Payment for redemption of debentures | ? | - | ? | (6,000,000,000) |
| Payment for dividends or interest | ? | (6,390,837,882) | ? | (8,306,333,083) |
| Including: Profits paid to non-controlling shareholders of subsidiaries | ? | (91,448,476) | ? | (72,650,624) |
| Payment for other financing activities | V.60(3) a | (1,855,318,097) | ? | (7,896,143,409) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (57,363,426,898) | ? | (52,294,369,872) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flows used in financing activities | ? | (5,517,378,990) | ? | (21,661,368,641) |
| ? | ? | ? | ? | ? |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | ? | 341,705,520 | ? | 372,295,921 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| V. Net increase/(decrease) in cash and cash equivalents | V.61(1) b | 9,912,270,763 | ? | (12,289,056,016) |
| ? | ? | ? | ? | ? |
| Add: Cash and cash equivalents at the beginning of the year | ? | 52,092,981,748 | ? | 64,382,037,764 |
| ? | ? | ? | ? | ? |
| VI. Cash and cash equivalents at the end of the year | V.61(3) | 62,005,252,511 | ? | 52,092,981,748 |
??????
??????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao 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 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2024
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| I. Cash flows from operating activities: | ? | ? | ? | ? |
| Proceeds from sale of goods and rendering of services | ? | 8,576,350,715 | ? | 4,312,367,550 |
| ?Refund of taxes | ? | 12,091 | ? | - |
| Proceeds from other operating activities | ? | 458,561,728 | ? | 622,801,775 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 9,034,924,534 | ? | 4,935,169,325 |
| ? | ? | ? | ? | ? |
| Payment for goods and services | ? | (1,041,936,007) | ? | (1,098,622,995) |
| Payment to and for employees | ? | (1,348,047,244) | ? | (1,333,331,329) |
| Payment of various taxes | ? | (470,413,241) | ? | (433,065,340) |
| Payment for other operating activities | ? | (1,204,371,696) | ? | (1,099,330,089) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (4,064,768,188) | ? | (3,964,349,753) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flows generated from operating activities | XVI.11(1) | 4,970,156,346 | ? | 970,819,572 |
| ? | ? | ? | ? | ? |
| II. Cash flows from investing activities: | ? | ? | ? | ? |
| Proceeds from disposal of investments | ? | 2,807,425,581 | ? | 1,200,350,000 |
| Investment returns received | ? | 2,527,840,286 | ? | 955,365,976 |
| Net proceeds from disposal of fixed assets | ? | 842,917 | ? | 682,093 |
| Proceeds from other investing activities | ? | 6,942,812,478 | ? | 1,260,912,332 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 12,278,921,262 | ? | 3,417,310,401 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| II. Cash flows from investing activities (continued): | ? | ? | ? | ? |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | ? | (1,743,031,313) | ? | (618,917,399) |
| Payment for acquisition of investments | ? | (13,557,349,939) | ? | (16,691,342,703) |
| Payment for other investing activities | ? | (12,190,000,000) | ? | (5,468,000,000) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (27,490,381,252) | ? | (22,778,260,102) |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| Net cash outflow used in investing activities | ? | (15,211,459,990) | ? | (19,360,949,701) |
| ? | ? | ? | ? | ? |
| III. Cash flows from financing activities: | ? | ? | ? | ? |
| Proceeds from borrowings | ? | 18,520,000,000 | ? | 10,000,000,000 |
| Proceeds from other financing activities | ? | 11,220,000,000 | ? | 19,830,000,000 |
| ? | ? | ? | ? | ? |
| Sub-total of cash inflows | ? | 29,740,000,000 | ? | 29,830,000,000 |
| ? | ? | ? | ? | ? |
| Repayments of borrowings | ? | (14,318,800,000) | ? | (4,184,100,000) |
| Payment for redemption of debentures | ? | - | ? | (6,000,000,000) |
| Payment for dividends and interest | ? | (2,499,539,504) | ? | (3,751,590,381) |
| Payment for other financing activities | ? | (2,517,521,421) | ? | (397,385,776) |
| ? | ? | ? | ? | ? |
| Sub-total of cash outflows | ? | (19,335,860,925) | ? | (14,333,076,157) |
| ? | ||||
| ? | ? | ? | ? | ? |
| Net cash flows generated from financing activities | ? | 10,404,139,075 | ? | 15,496,923,843 |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company cash flow statementfor the year ended 31 December 2024 (continued)
(Expressed in Renminbi Yuan)
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | ? | 29,846,436 | ? | 30,657,074 |
| ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? |
| V. Net increase/(decrease) in cash and cash equivalents | XVI.11(1) | 192,681,867 | ? | (2,862,549,212) |
| ? | ? | ? | ? | ? |
| Add: Cash and cash equivalents at the beginning of the year | ? | 4,249,329,821 | ? | 7,111,879,033 |
| ? | ? | ? | ? | ? |
| VI. Cash and cash equivalents at the end of the year | XVI.11(2) | 4,442,011,688 | ? | 4,249,329,821 |
???????
???????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao 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 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2024(Expressed in Renminbi Yuan)
| ? | ? | Attributable to shareholders of the Company | ? | ? | ? | ? | ||||||||||||||||
| ? | Note | Share capital | ? | Other equity instruments | ? | Capital reserve | ? | Less: Treasury shares | ? | Other comprehensive income | ? | Specific reserve | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 37,652,529,195 | ? | 2,043,402,946 | ? | 52,113,580,746 | ? | 462,036,240 | ? | (1,136,997,224) | ? | 66,472,402 | ? | 3,571,778,635 | ? | 35,579,576,607 | ? | 129,428,307,067 | ? | 68,370,379,252 | ? | 197,798,686,319 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| II. Movements during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | - | ? | (19,707,777) | ? | - | ? | - | ? | 5,323,248,974 | ? | 5,303,541,197 | ? | (1,164,043,735) | ? | 4,139,497,462 |
| 2. Shareholders’ contributions and decrease of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Contribution by non-controlling interests | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 4,652,010,645 | ? | 4,652,010,645 |
| (2) Repurchase of treasury shares | V.38/41 | - | ? | - | ? | - | ? | 999,872,378 | ? | - | ? | - | ? | - | ? | - | ? | (999,872,378) | ? | - | ? | (999,872,378) |
| (3) Cancellation of treasury shares | V.38/41 | (7,512,992) | ? | - | ? | (9,986,070) | ? | (17,499,062) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | ? | ? | - |
| (4) Equity-settled share-based payment | XII | - | ? | - | ? | 127,147,039 | ? | (227,918,873) | ? | - | ? | - | ? | - | ? | - | ? | 355,065,912 | ? | 9,581,064 | ? | 364,646,976 |
| (5) Others | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (10,000,000) | ? | (10,000,000) |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V.43 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 307,923,188 | ? | (307,923,188) | ? | - | ? | - | ? | - |
| (2) Accrued interest on holders of other equity instruments | V.39 | - | ? | 70,000,000 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (70,000,000) | ? | - | ? | - | ? | - |
| (3) Payment for interest on holders of other equity instruments | V.39 | - | ? | (70,000,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (70,000,000) | ? | - | ? | (70,000,000) |
| (4) Distributions to shareholders | V.44 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (1,129,073,743) | ? | (1,129,073,743) | ? | (93,546,479) | ? | (1,222,620,222) |
??????
??????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2024 (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 | ? | Specific reserve | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Transfer of other comprehensive income to retained earnings | V.42/43/44 | - | ? | - | ? | - | ? | - | ? | (15,118,863) | ? | - | ? | 52,656 | ? | 15,066,207 | ? | - | ? | ? | ? | - |
| 5. Specific reserve | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation during the year | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 209,278,103 | ? | - | ? | - | ? | 209,278,103 | ? | 51,873,021 | ? | 261,151,124 |
| (2) Utilisation during the year | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (136,522,841) | ? | - | ? | - | ? | (136,522,841) | ? | (38,689,907) | ? | (175,212,748) |
| 6. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Other movements in equity of associates | V.11 | - | ? | - | ? | 14,652,743 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 14,652,743 | ? | - | ? | 14,652,743 |
| (2) Others | - | ? | - | ? | (37,820,752) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (37,820,752) | ? | (168,947,425) | ? | (206,768,177) | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 37,645,016,203 | ? | 2,043,402,946 | ? | 52,207,573,706 | ? | 1,216,490,683 | ? | (1,171,823,864) | ? | 139,227,664 | ? | 3,879,754,479 | ? | 39,410,894,857 | ? | 132,937,555,308 | ? | 71,608,616,436 | ? | 204,546,171,744 |
??????
??????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao 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 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2023 (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 | ? | Specific reserve | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| I. Balance at the beginning of the year | ? | 38,196,363,421 | ? | 8,176,366,808 | ? | 55,224,885,675 | ? | 3,508,201,911 | ? | (1,073,768,030) | ? | - | ? | 3,241,063,934 | ? | 35,829,465,307 | ? | 136,086,175,204 | ? | 65,954,391,821 | ? | 202,040,567,025 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| II. Movements during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | - | ? | (114,919,973) | ? | - | ? | - | ? | 2,547,435,360 | ? | 2,432,515,387 | ? | (2,080,962,755) | ? | 351,552,632 |
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Contribution by non-controlling interests | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 3,291,140,600 | ? | 3,291,140,600 |
| (2) Cancellation of treasury shares | V.38/41 | (543,834,226) | ? | - | ? | (2,244,946,976) | ? | (2,788,781,202) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
| (3) Equity-settled share-based payment | XII | - | ? | - | ? | 309,120,206 | ? | (257,384,469) | ? | - | ? | - | ? | - | ? | - | ? | 566,504,675 | ? | 22,319,221 | ? | 588,823,896 |
| (4) Payment for capital of holders of other equity instruments | V.39 | - | ? | (5,967,915,094) | ? | (32,084,906) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (6,000,000,000) | ? | - | ? | (6,000,000,000) |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V.43 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 330,597,179 | ? | (330,597,179) | ? | - | ? | - | ? | - |
| (2) Accrued interest on holders of other equity instruments | V.39 | - | ? | 118,551,232 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (118,551,232) | ? | - | ? | - | ? | - |
| (3) Payment for interest on holders of other equity instruments | V.39 | - | ? | (283,600,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (283,600,000) | ? | - | ? | (283,600,000) |
| (4) Distributions to shareholders | V.44 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (2,296,367,348) | ? | (2,296,367,348) | ? | (106,934,768) | ? | (2,403,302,116) |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Consolidated statement of changes in shareholders’ equityfor the year ended 31 December 2023 (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 | ? | Specific reserve | ? | Surplus reserve | ? | Retained earnings | ? | Sub-total | ? | Non-controlling interests | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 4. Transfers within equity | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Transfer of other comprehensive income to retained earnings | V.42/43/44 | - | ? | - | ? | - | ? | - | ? | 51,690,779 | ? | - | ? | 117,522 | ? | (51,808,301) | ? | - | ? | - | ? | - |
| 5. Specific reserve | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation during the year | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 209,367,057 | ? | - | ? | - | ? | 209,367,057 | ? | 42,370,558 | ? | 251,737,615 |
| (2) Utilisation during the year | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (142,894,655) | ? | - | ? | - | ? | (142,894,655) | ? | (29,280,043) | ? | (172,174,698) |
| 6. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Other movements in equity of associates | - | ? | - | ? | 61,662,689 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 61,662,689 | ? | 1,229,195 | ? | 62,891,884 | |
| (2) Others | - | ? | - | ? | (1,205,055,942) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (1,205,055,942) | ? | 1,276,105,423 | ? | 71,049,481 | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 37,652,529,195 | ? | 2,043,402,946 | ? | 52,113,580,746 | ? | 462,036,240 | ? | (1,136,997,224) | ? | 66,472,402 | ? | 3,571,778,635 | ? | 35,579,576,607 | ? | 129,428,307,067 | ? | 68,370,379,252 | ? | 197,798,686,319 |
?????
?????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao 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 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2024(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 | ? | 37,652,529,195 | ? | 2,043,402,946 | ? | 51,741,820,724 | ? | 462,036,240 | ? | (296,433,056) | ? | 3,571,778,635 | ? | 7,186,134,196 | ? | 101,437,196,400 |
| II. Movements during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | - | ? | 29,074,708 | ? | - | ? | 3,079,231,881 | ? | 3,108,306,589 |
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Repurchase of treasury shares | V.41 | - | ? | - | ? | - | ? | 999,872,378 | ? | - | ? | - | ? | - | ? | (999,872,378) |
| (2) Cancellation of treasury shares | V.38/41 | (7,512,992) | ? | - | ? | (9,986,070) | ? | (17,499,062) | ? | - | ? | - | ? | - | ? | - |
| (3) Equity-settled share-based payment | XII | - | ? | - | ? | 136,728,103 | ? | (227,918,873) | ? | - | ? | - | ? | - | ? | 364,646,976 |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V.43 | - | ? | - | ? | - | ? | - | ? | - | ? | 307,923,188 | ? | (307,923,188) | ? | - |
| (2) Accrued interest on holders of other equity instruments | V.39 | - | ? | 70,000,000 | ? | - | ? | - | ? | - | ? | - | ? | (70,000,000) | ? | - |
| (3) Payment for interest on holders of other equity instruments | V.39 | - | ? | (70,000,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (70,000,000) |
| (4) Distributions to shareholders | V.44 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (1,129,073,743) | ? | (1,129,073,743) |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2024 (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 | XVI.9/10 | - | ? | - | ? | - | ? | - | ? | (526,560) | ? | 52,656 | ? | 473,904 | ? | - |
| 5. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Other movements in equity of associates | XVI.3 | - | ? | - | ? | 2,698,287 | ? | - | ? | - | ? | - | ? | - | ? | 2,698,287 |
| (2) Others | - | ? | - | ? | 105,508 | - | ? | - | - | ? | - | ? | 105,508 | |||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 37,645,016,203 | ? | 2,043,402,946 | ? | 51,871,366,552 | ? | 1,216,490,683 | ? | (267,884,908) | ? | 3,879,754,479 | ? | 8,758,843,050 | ? | 102,714,007,639 |
??????
??????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao 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 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2023 (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 | ? | 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 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| II. Movements during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 1. Total comprehensive income | ? | - | ? | - | ? | - | ? | - | ? | (295,598,180) | ? | - | ? | 3,305,971,786 | ? | 3,010,373,606 |
| 2. Shareholders’ contributions of capital | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Cancellation of treasury shares | V.38/41 | (543,834,226) | ? | - | ? | (2,244,946,976) | ? | (2,788,781,202) | ? | - | ? | - | ? | - | ? | - |
| (2) Equity-settled share-based payment | XII | - | ? | - | ? | 331,439,427 | ? | (257,384,469) | ? | - | ? | - | ? | - | ? | 588,823,896 |
| (3) Payment for capital of holders of other equity instruments | V.39 | - | ? | (5,967,915,094) | ? | (32,084,906) | ? | - | ? | - | ? | - | ? | - | ? | (6,000,000,000) |
| 3. Appropriation of profits | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Appropriation for surplus reserve | V.43 | - | ? | - | ? | - | ? | - | ? | - | ? | 330,597,179 | ? | (330,597,179) | ? | - |
| (2) Accrued interest on holders of other equity instruments | V.39 | - | ? | 118,551,232 | ? | - | ? | - | ? | - | ? | - | ? | (118,551,232) | ? | - |
| (3) Payment for interest on holders of other equity instruments | V.39 | - | ? | (283,600,000) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (283,600,000) |
| (4) Distributions to shareholders | V.44 | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (2,296,367,348) | ? | (2,296,367,348) |
???????
???????
The notes on pages 30 to 143 form part of these financial statements.
BOE Technology Group Co., Ltd.Company statement of changes in shareholders’ equityfor the year ended 31 December 2023 (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 | XVI.7/8 | - | ? | - | ? | - | ? | - | ? | (1,175,221) | ? | 117,522 | ? | 1,057,699 | ? | - |
| 5. Others | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| (1) Other movements in equity of associates | XVI.3/6 | - | ? | - | ? | (6,214,034) | ? | - | ? | - | ? | - | ? | - | ? | (6,214,034) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| III. Balance at the end of the year | ? | 37,652,529,195 | ? | 2,043,402,946 | ? | 51,741,820,724 | ? | 462,036,240 | ? | (296,433,056) | ? | 3,571,778,635 | ? | 7,186,134,196 | ? | 101,437,196,400 |
?????
?????
These financial statements were approved by the Board of Directors on 18 April 2025.
| Chen Yanshun Chairman of the Board | Feng Qiang Chairman of the Executive Committee | Yang Xiaoping Chief Financial Officer | Xu Yaxiao 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 143 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 of theCompany and the Company’s ultimate holding company is Beijing Electronics Holdings Co.,Ltd. (“Beijing 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 VIII.
II. Basis of preparation
The financial statements have been prepared on a 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, which are also referred to as ChinaAccounting Standards (“CAS”), issued by the Ministry of Finance (“MOF”) of the People’sRepublic of China. These financial statements present truly and completely the consolidatedand company financial position of the Company as at 31 December 2024, and theconsolidated and company financial performance and cash flows of the Company for theyear 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 2023.
2 Accounting period
The accounting period is from 1 January to 31 December.
3 Operating cycle
The Company takes the period from the acquisition of assets for processing to until 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.9.
5 Method used to determine the materiality threshold and the basis for selection
| Item | Materiality threshold |
| ? | ? |
| Significant receivables for which provisions for bad and doubtful are individually assessed recoveries or reversals and written-offs | Amount of the individual accounts receivable ≥ RMB50 million |
| Significant prepayments, contract liabilities, accounts payable and other payables with ageing of more than one year | Amount of the individual items exceeds 0.5% of the Group’s total assets |
| Significant construction projects in progress | Carrying amount of individual item at the end of the period exceeds RMB10 billion |
| Significant non-wholly-owned subsidiaries, joint ventures or associates | Total assets of non-wholly-owned subsidiaries, carrying amount of long-term equity investments in individual investee exceed 10% of the Group’s total assets; or total revenue of non-wholly-owned subsidiaries exceed 10% of the Group’s total revenue |
| Significant capitalised research and development projects | Accumulated expenditure of individual R&D project exceeds 0.5% of the Group’s total assets |
?
?
6 Accounting treatments for business combinations involving entities under common control
and not under common control
A transaction or event constitutes a business combination when the Group obtains control ofone or more entities (or a group of assets or net assets) which meet the definition of abusiness. Business combinations are classified as either business combinations involvingenterprises under common control or business combinations not involving enterprises undercommon control.
For a transaction not involving enterprises under common control, the acquirer determineswhether an acquired set of assets constitutes a business. The Group may elect to apply thesimplified assessment method, the concentration test, to determine whether an acquired setof assets is a business. If the concentration test is met, the set of assets is determined not tobe a business, no further assessment is needed. If the concentration test is not met, theGroup should perform the assessment according to the guidance on the determination of abusiness.
When the set of assets the Group acquired does not constitute a business, acquisition costsshould be allocated to each identifiable asset and liability on the basis of their relative fairvalues at the date of acquisition. The accounting treatments for business combinationsdescribed below are not applied.
(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 share of carrying amount of the net assets acquired and theconsideration paid for the combination (or the total par value of shares issued) is adjustedagainst share premium in the capital reserve, with any excess deducted from surplus reserveand retained earnings sequentially. Any costs directly attributable to the combination arerecognised in profit or loss when incurred. The combination date is the date on which onecombining entity obtains control of other combining entities.
(2) Business combinations involving entities not under common control
A business combination involving entities not under common control is a businesscombination in which all of the combining entities are not ultimately controlled by the sameparty or parties both before and after the business combination. The Group, as the acquirer,the sum of the fair value of the assets paid (including the equity of the acquiree held beforethe acquisition date), liabilities incurred or assumed, and equity securities issued on theacquisition date, minus the fair value share of the identifiable net assets of the acquireeacquired in the merger on the acquisition date, after considering the impact of relevantdeferred income tax, if it is positive, it will be recognized as goodwill (see Note III.18). If it isnegative, it will be recognised in profit or loss for the current period. The costs of issuingequity or debt securities as a part of the consideration for the acquisition are included in thecarrying amounts of these equity or debt securities upon initial recognition. Other acquisition-related costs are expensed when incurred. Any difference between the fair value and thecarrying amount of the assets transferred as consideration is recognised in profit or loss. Theacquiree’s identifiable assets, liabilities and contingent liabilities, if the recognition criteria aremet, are recognised by the Group at their acquisition-date fair values. The acquisition date isthe date on which the acquirer obtains control of the acquiree.
7 Criteria of control and preparation of 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 the following: power over the investee; exposure, or rights, to variablereturns from its involvement with the investee; and the ability to affect those returns throughits power over the investee. The financial position, financial performance and cash flows ofsubsidiaries are included in the consolidated financial statements from the date that controlcommences until the date that control ceases.
Intra-group balances and transactions, and any unrealised profit or loss arising from intra-group transactions, are eliminated when preparing the consolidated financial statements.Unrealised losses resulting from intra-group transactions are eliminated in the same way asunrealised gains, unless they represent impairment losses that are recognised in full in thefinancial statements.
(2) Subsidiaries acquired through a business combination
Where a subsidiary was acquired during the reporting period through a business combinationinvolving entities under common control, the financial statements of the subsidiary areincluded in the consolidated financial statements based on the carrying amounts of theassets and liabilities of the subsidiary in the financial statements of the ultimate controllingparty as if the combination had occurred at the date that the ultimate controlling party firstobtained control. The opening balances and the comparative figures of the consolidatedfinancial statements are also restated.
Where a subsidiary was acquired during the reporting period through a business combinationinvolving entities not under common control, the identifiable assets and liabilities of theacquired subsidiaries are included in the scope of consolidation from the date that controlcommences, based on the fair values 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 investment isre-measured at its fair value at the date when control is lost, and any resulting gains orlosses are also recognised as investment income for the current period.
(4) Changes in non-controlling interests
Where the Company acquires more interest in a subsidiary from the subsidiary’s non-controlling shareholders or disposes of a portion of an interest in a subsidiary without losingcontrol, the difference between the portion of the interest in the subsidiary’s net assets beingacquired or disposed of and the amount of the consideration paid or received is adjusted tothe capital reserve (share premium) in the consolidated balance sheet, with any excessdeducted from surplus reserve and retained earnings sequentially.
8 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily withdrawnon demand, 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.
9 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.16). 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 atrates that approximate the spot exchange rates at the transaction dates. The resultingtranslation differences are recognised in other comprehensive income. At the time of disposalof overseas operations, the relevant translation differences arising from translation of foreigncurrency financial statements is transferred from shareholders’ equity to the current profit andloss of disposal.
10 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.12),receivables, payables, loans and borrowings, debentures payable and share capital.
(1) Recognition and initial measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the Groupbecomes a party to the contractual provisions of a financial instrument.
Financial assets and financial liabilities are measured initially at fair value. For financialassets and financial liabilities measured at fair value through profit or loss, any relateddirectly attributable transaction costs are charged to profit or loss; for other categories offinancial assets and financial liabilities, any related directly attributable transaction costs areincluded in their initial costs. Trade receivables that do not have a significant financingcomponent or do not account for the significant financing component in one-year-or-lesscontracts under the practical expedient are initially measured at the transaction price inaccordance with Note III.24.
(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 underwhich a financial asset is managed and its contractual cash flow characteristics. Oninitial recognition, a financial asset is classified as measured at amortised cost, at fairvalue through other comprehensive income (“FVOCI”), or at fair value through profit orloss (“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 under 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 solelypayments of principal and interest on the principal amount outstanding.
A financial asset is measured at FVOCI if it meets both of the following conditions andis not designated as at FVTPL:
- it is held under a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; and- its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group 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,and 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.
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 that is not part of a hedging relationship should be recognised in profit orloss when the financial asset is derecognised, reclassified, amortised under theeffective interest method or when an impairment gain or loss is recognised.
- Debt investments at FVOCI
These assets are subsequently measured at fair value. Interest income calculatedusing the effective interest method, and 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 as financial liabilities measured atamortised cost.
- Financial liabilities at FVTPL
A financial liability is classified as at FVTPL if it is classified as held-for-trading (includingderivative financial liabilities) or if 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 settlethe financial liability simultaneously.
(5) Derecognition of financial assets and financial liabilities
A financial asset is derecognised when one of the following conditions is met:
- the Group’s contractual rights to the cash flows from the financial asset expire;- the financial asset has been transferred and the Group transfers substantially all of the
risks and rewards of ownership of the financial asset; or- the financial asset has been transferred; and although the Group neither transfers norretains substantially all of the risks and rewards of ownership of the financial asset, it doesnot retain 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 of
derecognition;- the sum of the consideration received from the transfer and, when the transferred financial
asset is a debt investment at FVOCI, any cumulative gain or loss that has been
recognised directly in other comprehensive income for the financial asset 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 measured at FVOCI;- 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 theGroup 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 bills receivable, accounts receivable, receivables under financing andcontract assets arising from ordinary business activities such as sale of goods and provisionof services, as well as lease receivables arising from lease transactions are alwaysmeasured at an amount equal to lifetime ECLs. 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 bills receivable, accounts receivable, receivables under financing, contract assets,and lease receivables, the Group measures loss allowances at an amount equal to 12-monthECLs for the following financial instruments, and at an amount equal to lifetime ECLs for allother financial instruments:
- Financial instruments that have been determined to have low credit risk at the balancesheet date; or- Financial instruments for which credit risk has not increased significantly since initialrecognition.
Provisions for bad and doubtful debts arising from receivables
Categories of groups for collective assessment based on credit risk characteristics and basisfor determination
| Item | Basis for recognition |
| ? | ? |
| Bills receivable | Based on the different credit risk characteristics of acceptors, the Group classifies bills receivable into two groups: bank acceptance bills and commercial acceptance bills. |
| Accounts receivable | Historically, there is no significant difference in terms of occurrence of losses among different customer types for the Group. Therefore, the Group classifies accounts receivable into three groups, specifically: receivables from customers with high credit risk, receivables from customers with low credit risk and receivables from customers with medium credit risk. |
| Receivables under financing | The Group’s receivables under financing are bank acceptance bills held for dual purposes. As the accepting banks have high credit ratings, the Group considers all receivables under financing as a single group. |
| Other receivables | The Group’s other receivables mainly include cash pledges and deposits receivable, petty cash receivables due from employees, receivables due from related parties, dividends receivable, etc. Based on the nature of receivables and the credit risk characteristics of different counterparties, the Group classifies other receivables into three groups, specifically: receivables with high credit risk, receivables with low credit risk and receivables with medium credit risk. |
| Contract assets | Historically, there is no significant difference in terms of occurrence of losses among different customer types for the Group. Therefore, the Group makes provisions for bad and doubtful debts arising from contract assets on the basis of all customers being one group without further segmentation by different customer types. |
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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 inthe longer 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, the Group considers reasonable and supportable information that isrelevant and available without undue cost or effort, including forward-looking information. Inparticular, the following information is taken into account:
- failure to make payments of principal or interest on their contractual due dates;- an actual or expected significant deterioration in a financial instrument’s external or
internal credit rating (if available);- an actual or expected significant deterioration in the operating results of the debtor;- 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.
The Group determines that the credit risk on a financial asset has increased significantly if itis more 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 difficulties of the issuer or debtor;- a breach of contract, such as a default or delinquency in interest or principal payments;- for economic or contractual reasons relating to the debtor’s financial difficulties, the Group
having granted to the debtor a concession that it would not otherwise consider;- it is probable that the debtor will enter bankruptcy or other financial reorganisation;- the disappearance of an active market for the financial asset because of financial
difficulties of the issuer or debtor.
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. Loss allowances for financial assets measuredat amortised cost are deducted from the gross carrying amount of the assets. For debtinvestments that are measured at FVOCI, the loss allowance is recognised in othercomprehensive income and not deducted from the carrying amount of the assets.
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 generally occurs 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 instruments
The issuance of equity instruments is recognised at the actual issue price in shareholders’equity, relevant transaction costs are deducted from shareholders’ equity (capital reserve),with any excess deducted from surplus reserve and retained earnings sequentially.Consideration and transaction costs paid by the Company for repurchasing self-issued equityinstruments are deducted from shareholders’ equity.
When the Company repurchases its own shares, those shares are treated as treasuryshares. The entire repurchase expenditure is recorded as the cost of the treasury shares inthe reference register. Treasury shares are excluded from profit distributions and arepresented as a deduction from shareholders’ equity on the balance 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, perpetual bonds issued by the Group or their components are classifiedas financial assets, financial liabilities or equity instruments based on their contractual termsand economic substance with reference to the definition of financial assets, financial liabilitiesand equity instruments.
Perpetual bonds issued by the Group that should be classified as equity instruments arerecognised in equity based on the actual proceeds received. Any distribution of dividends orinterests during the instruments’ duration is treated as profit appropriation. When theperpetual bonds are redeemed according to the contractual terms, the redemption amount isrecognised as a deduction from equity.
11 Inventories
(1) Categories
Inventories include raw materials, work in progress, finished goods and reusable materials.Reusable materials include low-value consumables, packaging materials and other materialswhich can be used repeatedly but which do not meet the definition of fixed assets.
In addition to the purchase cost of raw materials, work in progress and finished goodsinclude direct labour costs and an appropriate allocation of production overheads based onnormal capacity.
(2) Measurement method of cost of inventories
Cost of inventories is calculated using the weighted average method.
(3) Inventory count system
The Group maintains a perpetual inventory system.
(4) Amortisation method for low-value consumables and packaging materials
Consumables including low-value consumables and packaging materials are amortized byone-off write off method. The amortisation charge is included in the cost of the related assetsor recognised in profit or loss for the current period.
(5) Criteria and method for provision for obsolete inventories
At the balance sheet date, inventories are carried at the lower of cost and net realisablevalue. 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.
The net realisable value of materials held for use in production is measured based on the netrealisable value of the finished goods in which they will be incorporated. The net realisablevalue of inventory held to satisfy sales or service contracts is measured based on thecontract price. If the quantities of inventories held by the Group exceed the quantitiesspecified in sales contracts, the net realisable value of the excess portion of inventories isbased on general selling prices.
12 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 businesscombination 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 deducted from surplusreserve and retained earnings sequentially.
- For a long-term equity investment obtained through a business combination notinvolving 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.
(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 measurement.The Company recognises its share of the cash dividends or profit distributions declaredby the investee as investment income for the current period.
(b) Investment in joint ventures and associates
A joint venture is an arrangement whereby the Group and other parties have jointcontrol (see Note III.12(3)) and rights to the net assets of the arrangement. Anassociate is an entity over which the Group has significant influence (see NoteIII.12(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.31).
After acquiring the investment, the Group recognises its share of the investee’s profit orloss and other comprehensive income as investment income or losses and othercomprehensive income respectively, and adjusts the carrying amount of the investmentaccordingly. Once the investee declares any cash dividends or profit distributions, thecarrying amount of the investment is reduced by the amount attributable to the Group.Changes in the Group’s share of the investee’s owners’ equity, other than those arisingfrom the investee’s net profit or loss, other comprehensive income or profit distribution(referred to as “other changes in owners’ equity”), are recognised directly in theGroup’s equity, and the carrying amount of the investment is adjusted accordingly.
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 between theGroup and its associates or joint ventures are eliminated in the same way asunrealised gains, unless they represent impairment losses that are recognised in full inthe financial statements.
The Group discontinues recognising its share of further losses of the investee after thecarrying amount of the long-term equity investment and any long-term interest that insubstance forms part of the Group’s net investment in the joint venture or associate isreduced to zero, except to the extent that the Group has an obligation to assumeadditional losses. If the joint venture or associate subsequently reports net profits, theGroup resumes recognising its share of those profits only after its share of the profitshas fully covered the share of losses not recognised.
(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 relevant
activities unilaterally;- Whether decisions relating to the investee’s relevant activities require the unanimousconsent of all participant parties that share control.
Significant influence is the power to participate in the financial and operating policy decisionsof an investee but is not control or joint control of those policies.
13 Investment properties
Investment properties are properties held either to earn rental income or for capitalappreciation or 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.31).
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% |
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14 Fixed assets
(1) Recognition of fixed assets
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.15.
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.
(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.31).
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 (%) |
| ? | ? | ? | ? | ? | ? |
| Plant and 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% |
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Useful lives, estimated residual values and depreciation methods are reviewed at least ateach year-end.
15 Construction in progress
The cost of self-constructed assets includes the cost of materials, direct labour, capitalisedborrowing costs (see Note III.16), 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 fixedassets when it is ready for its intended use. No depreciation is recorded against constructionin progress.
The criteria according to which, construction projects in progress are transferred to fixedassets:
| Class | Criteria for the transfers to fixed assets |
| ? | ? |
| Plant and buildings | Satisfy the acceptance criteria and be available for its intended use |
| Machinery and equipment | Installation and commissioning are qualified, and be available for its intended use |
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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.
16 Borrowing costs
Borrowing costs incurred that are 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 qualifying
asset, 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 they are 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 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.
17 Intangible assets
(1) Useful life and amortisation methods
For an intangible asset with finite useful life, its cost less estimated residual value andaccumulated impairment losses is amortised using the straight-line method over its estimateduseful life, unless the intangible asset is classified as held for sale (see Note III.31).
The estimated useful lives, basis for determination and amortisation methods of intangibleassets are as follows:
| Item | Estimated useful life (years) | ? | Basis for determination | ? | Amortisation method |
| ? | ? | ? | ? | ? | ? |
| Land use rights | 20 - 50 years | ? | Terms of land use rights | ? | Straight-line method |
| Patent and proprietary technology | 5 - 20 years | ? | Terms of patents | ? | Straight-line method |
| Computer software | 3 - 10 years | ? | Estimated useful life | ? | Straight-line method |
| Others | 5 - 20 years | ? | Estimated useful life | ? | Straight-line method |
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Useful lives and amortisation methods of intangible assets with finite useful lives arereviewed at least at each year-end.
An intangible asset is regarded as having an indefinite useful life and is not amortised whenthere is no foreseeable limit to the period over which the asset is expected to generateeconomic benefits for the Group. At the balance sheet date, the Group does not have anyintangible assets with indefinite useful lives.
(2) The scope of research and development expenditures
The Group classifies all expenses directly related to the R&D activities as research anddevelopment (R&D) expenditure, including the employee benefits of R&D personnel, directinvestments, depreciation expenses and long-term deferred expenses, design expenses,equipment commissioning costs, amortisation expenses of intangible assets, developmentcosts incurred by an entrusted external party as well as other expenses. Expenditures oninternal research and development projects are classified into expenditures incurred duringthe research phase and expenditures incurred during the development phase.
(3) The basis for the classification of internal R&D projects under the research phase and the
development phase
- The phase of planned investigations to acquire new techniques and knowledge should beidentified as the research phase, which is characterised by, among other things, aplanned and exploratory approach.
- The phase of applying research results or other knowledge to a plan or design to producenew or substantially improved materials, devices, products, etc., prior to commercialproduction or use, shall be identified as the development phase, which is characterised byits relevance and greater likelihood of generating results.
(4) Expenditures on research and development
Expenditures on internal research and development projects are classified into expendituresincurred during the research phase and expenditures incurred during the developmentphase.
Expenditures during the research phase are expensed when incurred. Expenditures duringthe development phase are capitalised if development costs can be measured reliably, theproduct or process is technically and commercially feasible, and the Group intends to andhas sufficient resources to complete the development. Other development expenditures arerecognised as expenses 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.
18 Goodwill
The initial cost of goodwill represents the excess of the cost of the acquisition over theacquirer’s interest in the fair value of the identifiable net assets of the acquiree under abusiness combination 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.20).
19 Long-term deferred expenses
Long-term deferred expenses are amortised using the 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 |
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20 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
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. For the purposes of impairment testing,goodwill is allocated to each asset group, or set of asset groups, that is expected to benefitfrom the synergies of the business combination.
The recoverable amount of an asset (or asset group or set of asset groups) is the higher ofits fair value (see Note III.21) less costs of disposal and the present value of its expectedfuture cash flows.
An asset group is composed of assets 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 an asset’s expected future cash flows 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 to reduce the carrying amount to the recoverable amount. Impairment lossesrelated to an asset group or a set of asset groups are allocated first to reduce the carryingamount of any goodwill allocated to the asset group or set of asset groups, and then toreduce the carrying amount of the other assets in the asset group or set of asset groups on apro rata basis. However, such allocations would not reduce the carrying amount of an assetbelow the highest of its fair value less costs of disposal (if measurable), the present value ofits expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it should not be reversed in a subsequent period.
21 Fair value measurement
Unless otherwise specified, the Group measures fair value as follows:
Fair value is the price that would be received to sell an asset or paid to transfer a liability 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 the Group uses valuation techniques that areappropriate in the circumstances and for which sufficient data and other information areavailable to measure fair value. Valuation techniques mainly include the market approach,the income approach and the cost approach.
22 Provisions
A provision is recognised for an obligation related to a contingency if the Group has 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 as follows:
- Where the contingency involves a single item, the best estimate is the most likelyoutcome.- 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 amounts of provisions at the balance sheet date and adjuststheir carrying amounts to the current best estimates.
23 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 servicesreceived from employees, the payment is measured at the fair value of the equityinstruments granted to employees at the grant date. If the equity instruments granted donot vest until the completion of services for a period, or until the achievement of aspecified performance condition, the Group recognises an amount at each balance sheetdate during the vesting period based on the best estimate of the number of equityinstruments expected to vest according to newly obtained subsequent informationregarding changes in the number of employees expected to vest the equity instruments.The Group measures the services received at the grant-date fair value of the equityinstruments and recognises the costs or expenses as the services are received, with acorresponding increase in capital reserve.
24 Revenue recognition
Revenue is the gross inflow of economic benefits arising in the course of the Group’sordinary activities when the inflows result in increases in shareholders’ equity, other thanincreases relating to contributions from shareholders.
Revenue is recognised when the Group satisfies the performance obligation in a contract bytransferring 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 Group and maximises the use of observableinputs to estimate the stand-alone selling price.
For a contract in which the Group grants a customer the option to acquire additional goods orservices (such as loyalty points, discount coupons for future purchases.), 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 a contract with a warranty, the Group analyses the nature of the warranty provided, if thewarranty provides the customer with a distinct service in addition to the assurance that theproduct complies with agreed-upon specifications, the Group recognises the promisedwarranty as a performance obligation. Otherwise, the Group accounts for the warranty inaccordance with the requirements of CAS 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 are transferred to the customer. Thedifference between the amount of promised consideration and the cash selling price isamortised using an effective interest method over the contract term. The Group does notadjust the consideration for any effects of a significant financing component if it expects, atcontract inception, that the period between when the Group transfers a promised good orservice to a customer and when the customer pays for that good or service will be one yearor less.
The Group satisfies a performance obligation over time if one of the following criteria is met;otherwise, the 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 the
Group has an enforceable right to payment for performance completed to date.
For a 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 a performance obligation satisfied at a point in time, the Group recognises revenue at thepoint in time at which the customer obtains control of the 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 of
ownership of the goods to the customer; and- the customer has accepted the goods or services.
The Group determines whether it is a principal or an agent, based 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 which it has received (or which is receivable). Otherwise, the Group is anagent, and recognises revenue in the amount of any fee or commission to which it expects tobe entitled. The fee or commission is the net amount of consideration that the Group retainsafter paying the other party the consideration, or is determined according to the establishedamount or proportion.
For the sale of a product with a right of return, the Group recognises revenue when thecustomer 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 thatis expected to be returned), and recognises a refund liability for the products expected to bereturned. Meanwhile, an asset is recognised at an amount equal to the carrying amount ofthe product expected to be returned less any expected costs to recover those products(including potential decreases in the value of the returned products), and carry forward tocost in the amount of carrying amount of the transferred products less the above costs. Ateach balance sheet date, the Group updates its assessment of future sales return liability. Ifthere is any change, it is accounted for as a change in accounting estimate.
The Group grants a licence of intellectual properties to a customer, and it determineswhether the licence is transferred to the customer at a point in time or over time. If all of thefollowing criteria are met, the licence revenue is recognised as a performance obligationsatisfied over time. Otherwise, the licence revenue is recognised as a performance obligationsatisfied at a point in time.
- the contract requires, or the customer reasonably expects, that the Group will undertake
activities that significantly affect the intellectual property to which the customer has rights;- the rights granted by the licence directly expose the customer to any positive or negative
effects of the Group’s activities; and- those activities do not result in the transfer of a good or a service to the customer as those
activities occur.
The Group recognises revenue for a sales-based or usage-based royalty promised inexchange for a licence to 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 as follows:
- In cases where the additional promised goods or services are distinct and the price of thecontract increases by an amount of consideration that reflects the stand-alone sellingprices of the additional promised goods or services, the Group should account for thecontract modification as a separate contract.
- If the above criteria are not met, and the remaining goods or services are distinct from thegoods or services transferred on or before the date of the contract modification, the Groupaccounts for the contract modification as if it were a termination of the existing contractand the creation 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 or before the date of the contract modification, theGroup accounts for the contract modification as if it were a part of the existing contract.The effect that the contract modification has on 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.10(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 a 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 of returned products). At each balance sheet date, theGroup updates the measurement of the refund liability for changes in expectationsabout the amount of returns. The above assets and liabilities are adjusted accordingly.
(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.
25 Contract costs
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 in
continuing to satisfy) performance obligations in the future; and- the costs are expected to be recovered.
Assets recognised for the incremental costs of obtaining a contract and assets recognised 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:
- the remaining amount of consideration that the Group expects to receive in exchange for
the goods or services to which the asset relates; less- the estimated costs that relate directly to providing those goods or services that have not
yet been recognised as expenses.
26 Employee benefits
(1) Short-term employee benefits
Employee wages or salaries, bonuses, and 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
The defined contribution plans in which the Group participates include: Pursuant to therelevant laws and regulations of the People’s Republic of China, the Group participated in adefined contribution basic pension insurance plan and unemployment insurance plan in thesocial insurance system established and managed by government organisations, and annuityplan established by the Group in compliance with the national policy of the corporationannuity. The Group makes contributions to basic pension and unemployment insuranceplans based on the applicable benchmarks and rates stipulated by the government. Annuityis accrued at a certain proportion of the total wages of employees who voluntarily participatein the annuity plan. Basic pension insurance contributions payable 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.
(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 an employee’s employment before the employment contractexpires, 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 provided inan employee termination plan or a curtailment proposal;
- When the Group has a formal detailed restructuring plan involving the payment of
termination benefits and has raised a valid expectation in those affected that it will carryout the restructuring by starting to implement that plan or announcing its main features tothose affected by it.
27 Government grants
A government grant is recognised when there is reasonable assurance that the grant will bereceived and that the Group will comply with the conditions attached 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 recognises 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 amortised; 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 off againstthe carrying amount of relevant asset when the grants are obtained; the assets shall bedepreciated or amortised based on the carrying amount after being offset and the remaininguseful 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. Otherwise, thegrant is included in current income or offset against the related expenses directly.
In respect of the policy-based preferential loan interest subsidy obtained by the Group, if 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 arecapitalised as part of the cost of the asset (see Note III.16), the interest subsidy shall be usedto offset relevant asset costs.
28 Specific reserve
The Group recognises a safety fund in the specific reserve pursuant to relevant governmentregulations, with a corresponding increase in the costs of the related products or expenses.
When the safety fund is subsequently used for revenue expenditure, the specific reserve isreduced accordingly. When the safety fund is subsequently used for the construction oracquisition of fixed assets, the Group recognises the capitalised expenditure incurred as thecost of the fixed assets when the related assets are ready for their intended use. In suchcases, the specific reserve is reduced by the amount that corresponds to the cost of the fixedassets and the credit side is recognised in the accumulated depreciation with respect to therelated fixed assets. Consequently, such fixed assets are not depreciated in subsequentperiods.
29 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 deductible lossesand tax credits carried forward to subsequent periods. Deferred tax assets are recognised tothe extent that it is probable that future taxable profits will be available against whichdeductible temporary differences can be utilised.
Deferred tax is not recognised for temporary differences arising from the initial recognition ofassets or liabilities in a single transaction that is not a business combination, affects neitheraccounting profit nor taxable profit (or deductible loss) and does not give rise to equal taxableand deductible temporary differences. Deferred tax is also not recognised for taxabletemporary 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 reductions are 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.
30 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.
For a contract that contains multiple separate lease components, the lessee and the lessorseparate the lease components and account for each lease component as a leaseseparately. For a contract that contains lease and non-lease components, the lessee and thelessor separate the lease components from the non-lease components.
(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 depreciated using the straight-line method. If the lessee isreasonably certain to obtain the ownership of the lease asset by the end of the lease term,the right-of-use asset is depreciated over the remaining useful life of the underlying asset.Otherwise, the right-of-use asset is depreciated over the shorter of the lease term or theremaining useful life of the lease asset.
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 are charged to profit or loss or included in the cost of assets where appropriateas incurred.
Under the following circumstances after the lease commencement date, the Groupremeasures lease liabilities based on the present value of revised lease payments:
- there is a change in the amounts expected to be payable under a residual value
guarantee;- there is a change in future lease payments resulting from a change in an index or a rate
used to determine those payments;- there is a change in the assessment of whether the Group will exercise a purchase,
extension or termination option, or the Group has exercised the extension or termination
option in a different manner from the original assessment.
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 (a leasedasset is of low value individually when it is new). The Group recognises the lease paymentsassociated with these leases in profit or loss or as the cost of the assets where appropriateusing the straight-line method or other systematic basis over the lease term.
(2) As a lessor
The Group determines at lease inception whether each lease is a finance lease or 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 thepractical expedient 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 asset under finance lease.
The Group recognises finance income over the lease term with a constant periodic rate ofreturn. The derecognition and impairment of the finance lease receivable are accounted forin accordance with the accounting policy in Note III.10. Variable lease payments not includedin the measurement of net investment in the lease are recognised as income as they areearned.
Lease receipts from operating leases are recognised as income using the straight-linemethod or other systematic basis over the lease term. Variable lease payments not includedin lease receipts are recognised as income as they are earned.
31 Assets held for sale and discontinued operations
(1) Non-current assets or disposal groups held for sale
The Group classifies a non-current asset or disposal group as held for sale when the carryingamount of a non-current asset or disposal group will be recovered through a sale transactionrather than through continuing use.
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 assets or disposal groups in similartransactions, the non-current asset or disposal group is available for immediate sale in itspresent condition;- The sale is highly probable to occur, that is, the Group has made a resolution on a saleplan and entered into a legally binding sales. The sale is expected to be completed withinone year.
Non-current assets or disposal groups held for sale are stated at the lower of carryingamount and fair value (see Note III.21) less costs to sell (except financial assets (see noteIII.10) and deferred tax assets (see note III.29)) initially and subsequently. Any excess of thecarrying amount over the fair value (see Note III.21) less costs to sell is recognised as animpairment loss in profit or loss.
(2) Discontinued operations
The Group classifies a separate component as a discontinued operation either upon disposalof the operation or when the operation meets the criteria to be classified as held for sale if itis separately identifiable and satisfies one of the following conditions:
- It represents a separate major line of business or a separate geographical area ofoperations;- It is part of a single coordinated plan to dispose of a separate major line of business or aseparate geographical area of operations;- It is a subsidiary acquired exclusively with a view to resale.
Where an operation is classified as discontinued in the current period, profit or loss fromcontinuing operations and profit or loss from discontinued operations are separatelypresented in the income statement for the current period. The comparative information forprofit or loss from discontinued operations, which used to present as profit or loss fromcontinuing operations in the prior period, is re-presented as profit or loss from discontinuedoperations in the comparative income statement.
32 Dividends 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.
33 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 the Administrative Procedures on the InformationDisclosures of Listed Companies issued by the CSRC.
34 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 similar economic characteristics and are the same or similar in respect of the nature ofproducts and services, the nature of production processes, the types or classes of customersfor the products and services, the methods used to distribute the products or provide theservices, and the nature of the regulatory environment.
For segment reporting, inter-segment revenues are measured on the basis of the actualtransaction prices for such transactions, and segment accounting policies are consistent withthose used to prepare the consolidated financial statements.
35 Significant accounting estimates and judgements
The preparation of 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 the underlying assumptions and uncertainties involved are reviewed onan ongoing basis. Revisions to accounting estimates are recognised in the period in whichthe estimate 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.14 and 17) and provision for impairment ofvarious types of assets (see Notes V.4, 6, 7, 8, 10, 14, 15, 16 and 18). Other significantaccounting estimates are as follows:
(i) Note V.21: Recognition of deferred tax assets;(ii) Note V.31: Warranty provisions;(iii) Note X: Valuation of fair value of financial instruments; and(iv) Note XII: Share-based payments.
Significant judgements made by the Group in the application of accounting policies are asfollows:
(i) Note VIII. 1(1): Disclosure of significant judgements and assumptions of control and
exercising significant influence over other entities.
36 Changes in significant accounting policies
(1) Description of and reasons for changes in accounting policies
In 2024, the Group has adopted the following revised accounting requirements and guidanceunder CASs newly issued by the Ministry of Finance (“MOF”).
- Classification of Liabilities as Current or Non-current” in CAS Bulletin No. 17 (Caikuai[2023] No. 21) (“CAS Bulletin No. 17”);
- The Accounting Treatment of Assurance-type Warranty that is not a Single Performance
Obligation” CAS Bulletin No. 18 (Caikuai [2024] No. 24) (“CAS Bulletin No. 18”).
(a) Main effects of the Group’s adoption of the above requirements and guidance
(i) Requirements on the Classification of Liabilities as Current or Non-current
According to CAS Bulletin No. 17, only the Group’s substantive right to defer thesettlement of liabilities for more than one year after the balance sheet date (“theright to defer the settlement of liabilities”) is considered when classifying theliquidity of liabilities; the subjective possibility of exercising the above right is notconsidered.
For liabilities arising from the Group’s loan arrangements, if the Group’s right to
defer the settlement of liabilities is subject to compliance with covenants specifiedin the loan arrangements (“covenants”), only the covenants on or before thebalance sheet date when classifying the liquidity of liabilities are considered; theeffect of covenants after the balance sheet date is not considered.
If the Group settles its liabilities by delivering its own equity instruments at theoption of the counterparty and classifies the above options as equity instrumentsand recognises them separately as the equity component of a compoundfinancial instrument in accordance with CAS 37- Presentation of FinancialInstruments, there will be no effect on the classification of the liquidity of theliabilities. However, there will be effects on the classification if the above optionscannot be classified as equity instruments.
The adoption of this requirement does not have a significant effect on thefinancial position and financial performance of the Group.
(ii) Presentation of Assurance-type Warranty Expenses
According to CAS Bulletin No. 18, the Group has presented assurance-typewarranty expenses accrued by the Group as “operating cost from principalactivities”, and no longer as “selling and distribution expenses”.
The Group has adjusted comparative information retrospectively.
(b) The effects on the financial statements
The effects on each of the line items in the consolidated income statement for the year2024 are as follows:
| ? | ? | Increase/ (decrease) in the line items as a result of applying new accounting policies |
| ? | ? | The Group |
| ? | ? | ? |
| Operating costs | ? | 2,144,172,010 |
| Selling and distribution expenses | ? | (2,144,172,010) |
???
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(c) The effects on the comparative financial statements
The effects on each of the line items in the consolidated income statement for the yearended 31 December 2023 are as follows:
| ? | The Group | ||||
| ? | Before adjustments | ? | The amounts of adjustments | ? | After adjustments |
| ? | ? | ? | ? | ? | ? |
| Operating costs | 152,633,061,367 | ? | 1,840,608,669 | ? | 154,473,670,036 |
| Selling and distribution expenses | 3,736,940,205 | ? | (1,840,608,669) | ? | 1,896,331,536 |
?
?
IV. Taxation
1 Main types of taxes and corresponding tax rates
| Tax type | ? | Tax basis | ? | Tax rate |
| ? | ? | ? | ? | ? |
| Value-added tax (VAT) | ? | According to tax laws, output VAT is calculated on product sales and taxable services revenue. VAT payable is determined by deducting input VAT from output VAT for the period | ? | 6%，9%，13% |
| Urban 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% |
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2 Corporate income tax
The income tax rate applicable to the Company for the year is 15% (2023: 15%).
Pursuant to the Corporate Income Tax Law of the People’s Republic of China treatmentNo.28, corporate income tax for key advanced and high-tech enterprises supported by theState is applicable to a preferential tax rate of 15%.
On 30 November 2023, the Company renewed the High-tech Enterprise Certificate No.GR202311004505, which was entitled jointly by Beijing Municipal Science and 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.
Except that 32 subsidiaries such as Beijing BOE Optoelectronics Technology Co., Ltd. areapplicable to high-tech enterprise tax preference, 6 subsidiaries such as Chongqing BOEDisplay Lighting Co., Ltd. are applicable to encouraged enterprises in the WesternDevelopment, and 15% corporate income tax rate is applicable, and overseas subsidiariesare applicable to local tax rate, the tax rate applicable to other enterprises of the Group is25%.
V. Notes to the consolidated financial statements
1 Cash at bank and on hand
| ? | 2024 | ? | 2023 |
| ? | RMB/ RMB equivalents | ? | RMB/ RMB equivalents |
| ? | ? | ? | ? |
| Cash on hand | 1,528,764 | ? | 802,967 |
| Deposits with banks | 72,723,894,478 | ? | 70,593,964,639 |
| Other monetary funds | 1,527,201,973 | ? | 1,872,625,112 |
| ? | ? | ? | ? |
| Total | 74,252,625,215 | ? | 72,467,392,718 |
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???????
Including: Total overseas deposits were equivalent to RMB6,539,879,671 (2023:
RMB6,120,969,123).
As at 31 December 2024, other monetary funds included deposits with securities companiesby the Group amounting to RMB85,440,549, 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, RMB595,018,149 was pledgedfor issuance of bills payable, and an equivalent to RMB846,743,275 was mainly deposits incommercial banks as security.
2 Financial assets held for trading
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Financial assets at fair value through profit or loss | ? | ? | ? |
| - Structured deposit and wealth management products | 2,779,828,500 | ? | 7,476,126,776 |
| - Investment in equity instruments | 336,607,463 | ? | 279,837,719 |
| ? | ? | ? | ? |
| Total | 3,116,435,963 | ? | 7,755,964,495 |
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???????
3 Bills receivable
(1) Classification of bills receivable
| Item | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Bank acceptance bills | ? | 324,870,516 | ? | 342,699,932 |
| Commercial acceptance bills | ? | 13,218,845 | ? | 32,896,723 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 338,089,361 | ? | 375,596,655 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 29,578 | ? | 19,644 |
| ? | ? | ? | ? | ? |
| Total | ? | 338,059,783 | ? | 375,577,011 |
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???????
All of the above bills are due within one year.
(2) The pledged bills receivable of the Group at the end of the year
| Item | Pledged amount at the end of the year |
| ? | ? |
| Bank acceptance bills | 36,842,766 |
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???
(3) Outstanding endorsed or discounted bills that have not matured at the end of the year
| Item | 2024 | ? | 2024 |
| ? | Amount derecognised | ? | Amount not derecognised |
| ? | ? | ? | ? |
| Bank acceptance bills | - | ? | 208,268,859 |
| Commercial acceptance bills | - | ? | 1,001,051 |
| ? | ? | ? | ? |
| Total | - | ? | 209,269,910 |
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???????
For the year ended 31 December 2024, there was no amount transferred to accountsreceivable from bills receivable due to non-performance of the issuers of the Group (2023:
Nil).
(4) Bills receivable by provisioning method
| ? | 31 December 2024 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Bank acceptance bills group | 324,870,516 | ? | 96% | ? | - | ? | 0% | ? | 324,870,516 |
| - Commercial acceptance bills group | 13,218,845 | ? | 4% | ? | 29,578 | ? | 0% | ? | 13,189,267 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 338,089,361 | ? | 100% | ? | 29,578 | ? | 0% | ? | 338,059,783 |
???
???
(5) Movements of provisions for bad and doubtful debts
| ? | 2024 |
| ? | Commercial acceptance bills |
| ? | ? |
| Balance at the beginning of the year | 19,644 |
| Additions during the year | 29,578 |
| Recoveries or reversals during the year | (19,644) |
| Written-off during the year | - |
| ? | ? |
| Balance at the end of the year | 29,578 |
???
???
4 Accounts receivable
(1) The Group’s accounts receivable are as follows:
| Item | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Accounts receivable | ? | 36,567,098,415 | ? | 33,500,667,967 |
| Less: Provision for bad and doubtful debts | ? | 228,899,211 | ? | 135,251,477 |
| ? | ? | ? | ? | ? |
| Total | ? | 36,338,199,204 | ? | 33,365,416,490 |
?
?
(2) The ageing analysis of accounts receivable is as follows:
| ? | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 35,533,315,993 | ? | 32,716,203,140 |
| Over 1 year but within 2 years (inclusive) | ? | 493,435,884 | ? | 350,015,788 |
| Over 2 years but within 3 years (inclusive) | ? | 228,715,579 | ? | 191,517,633 |
| Over 3 years | ? | 311,630,959 | ? | 242,931,406 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 36,567,098,415 | ? | 33,500,667,967 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 228,899,211 | ? | 135,251,477 |
| ? | ? | ? | ? | ? |
| Total | ? | 36,338,199,204 | ? | 33,365,416,490 |
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???????
The ageing is counted starting from the date when accounts receivable are recognised.
(3) Accounts receivable by provisioning method
| ? | 31 December 2024 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 57,435,774 | ? | 0% | ? | 33,528,866 | ? | 58% | ? | 23,906,908 |
| - Customers with low credit risk | 603,585,563 | ? | 2% | ? | - | ? | 0% | ? | 603,585,563 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with medium credit risk | 35,906,077,078 | ? | 98% | ? | 195,370,345 | ? | 1% | ? | 35,710,706,733 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 36,567,098,415 | ? | 100% | ? | 228,899,211 | ? | 1% | ? | 36,338,199,204 |
???????
???????
| ? | 31 December 2023 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 24,192,778 | ? | 0% | ? | 21,753,190 | ? | 90% | ? | 2,439,588 |
| - Customers with low credit risk | 799,508,925 | ? | 2% | ? | - | ? | 0% | ? | 799,508,925 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with medium credit risk | 32,676,966,264 | ? | 98% | ? | 113,498,287 | ? | 0% | ? | 32,563,467,977 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 33,500,667,967 | ? | 100% | ? | 135,251,477 | ? | 0% | ? | 33,365,416,490 |
??????
(a) Criteria for collective assessment 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 medium credit risk | Customers not included in groups above |
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????
(b) Assessment of ECLs on accounts receivable
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.
(4) Movements of provisions for bad and doubtful debts:
| ? | 2024 | ||||||
| ? | Customers with high credit risk | ? | Customers with low credit risk | ? | Customers with medium credit risk | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 21,753,190 | ? | - | ? | 113,498,287 | ? | 135,251,477 |
| Additions during the year | 14,498,238 | ? | - | ? | 106,227,398 | ? | 120,725,636 |
| Recoveries during the year | (2,440,317) | ? | - | ? | (11,960,332) | ? | (14,400,649) |
| Written-off during the year | (298,185) | ? | - | ? | (13,440,498) | ? | (13,738,683) |
| Foreign currency translation differences | 15,940 | ? | - | ? | 1,045,490 | ? | 1,061,430 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 33,528,866 | ? | - | ? | 195,370,345 | ? | 228,899,211 |
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???????
| ? | 2023 | ||||||
| ? | Customers with high credit risk | ? | Customers with low credit risk | ? | Customers with medium credit risk | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 59,921,373 | ? | - | ? | 59,958,424 | ? | 119,879,797 |
| Additions during the year | 4,972,817 | ? | - | ? | 71,147,926 | ? | 76,120,743 |
| Recoveries during the year | (43,645,120) | ? | - | ? | (17,261,740) | ? | (60,906,860) |
| Written-off during the year | (68,126) | ? | - | ? | (213,525) | ? | (281,651) |
| Foreign currency translation differences | 572,246 | ? | - | ? | (132,798) | ? | 439,448 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 21,753,190 | ? | - | ? | 113,498,287 | ? | 135,251,477 |
???
???
(5) Five largest accounts receivable and contract assets by debtor at the end of the year
The subtotal of the five largest accounts receivable and contract assets of the Group at theend of the year is RMB16,571,292,900, representing 45.14% of the total accounts receivableand contract assets.
5 Receivables under financing
(1) Receivables under financing by category
| Item | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Bank acceptance bills | ? | 472,537,400 | ? | 408,534,622 |
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???
(2) Receivables under financing that are endorsed or discounted but have not matured at the
end of the year:
| Item | 2024 | ? | 2024 |
| ? | Amount derecognised | ? | Amount not derecognised |
| ? | ? | ? | ? |
| Bank acceptance bills | 683,496,249 | ? | - |
???
???
6 Prepayments
(1) The Group’s prepayments by category:
| ? | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Prepayment for electricity, water, gas and power | ? | 284,648,237 | ? | 238,019,515 |
| Prepayment for inventory | ? | 225,583,907 | ? | 202,223,873 |
| Others | ? | 124,250,080 | ? | 118,416,392 |
| ? | ? | ? | ? | ? |
| Total | ? | 634,482,224 | ? | 558,659,780 |
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(2) The ageing analysis of prepayments is as follows:
| ? | 31 December 2024 | ? | 31 December 2023 | ||||
| Ageing | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | 561,764,216 | ? | 89% | ? | 478,067,697 | ? | 86% |
| Over 1 year but within 2 years (inclusive) | 15,640,256 | ? | 2% | ? | 22,099,954 | ? | 4% |
| Over 2 years but within 3 years (inclusive) | 3,945,077 | ? | 1% | ? | 53,855,290 | ? | 9% |
| Over 3 years | 53,132,675 | ? | 8% | ? | 4,636,839 | ? | 1% |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 634,482,224 | ? | 100% | ? | 558,659,780 | ? | 100% |
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The ageing is counted starting from the date when prepayments are recognised.
The total of the five largest prepayments of the Group at the end of the year isRMB226,268,106, representing 36% of the total prepayments.
7 Other receivables
| ? | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Dividends receivable | 55,028,131 | ? | - | |
| Others | (1) | 757,843,390 | ? | 726,659,207 |
| ? | ? | ? | ? | ? |
| Total | ? | 812,871,521 | ? | 726,659,207 |
?
?
(1) Others
(a) The Group’s other payables are as follows:
| Item | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Other receivables | ? | 776,708,135 | ? | 739,769,833 |
| Less: Provision for bad and doubtful debts | ? | 18,864,745 | ? | 13,110,626 |
| ? | ? | ? | ? | ? |
| Total | ? | 757,843,390 | ? | 726,659,207 |
?
?
(b) The ageing analysis of the Group’s other receivables is as follows:
| ? | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Within 1 year (inclusive) | ? | 357,915,532 | ? | 330,573,576 |
| Over 1 year but within 2 years (inclusive) | ? | 118,793,438 | ? | 121,561,167 |
| Over 2 years but within 3 years (inclusive) | ? | 19,227,857 | ? | 40,445,484 |
| Over 3 years | ? | 280,771,308 | ? | 247,189,606 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 776,708,135 | ? | 739,769,833 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 18,864,745 | ? | 13,110,626 |
| ? | ? | ? | ? | ? |
| Total | ? | 757,843,390 | ? | 726,659,207 |
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???????
The ageing is counted starting from the date when other receivables are recognised.
(c) Other receivables by provisioning method
| ? | 31 December 2024 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with high credit risk | 18,297,151 | ? | 2% | ? | 18,297,151 | ? | 100% | ? | - |
| - Amounts with low credit risk | 689,364,770 | ? | 89% | ? | - | ? | 0% | ? | 689,364,770 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with medium credit risk | 69,046,214 | ? | 9% | ? | 567,594 | ? | 1% | ? | 68,478,620 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 776,708,135 | ? | 100% | ? | 18,864,745 | ? | 2% | ? | 757,843,390 |
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???????
| ? | 31 December 2023 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with high credit risk | 12,515,014 | ? | 2% | ? | 12,515,014 | ? | 100% | ? | - |
| - Amounts with low credit risk | 705,496,057 | ? | 95% | ? | - | ? | 0% | ? | 705,496,057 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with medium credit risk | 21,758,762 | ? | 3% | ? | 595,612 | ? | 3% | ? | 21,163,150 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 739,769,833 | ? | 100% | ? | 13,110,626 | ? | 2% | ? | 726,659,207 |
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(d) Movements of provisions for bad and doubtful debts
| ? | 2024 | ? | 2023 | ||||||||||||
| ? | Stage 1 | ? | Stage 2 | ? | Stage 3 | ? | ? | ? | Stage 1 | ? | Stage 2 | ? | Stage 3 | ? | ? |
| ? | 12-month ECL | ? | Lifetime ECL - Not credit impaired | ? | Lifetime ECL - Credit impaired | ? | Total | ? | 12-month ECL | ? | Lifetime ECL - Not credit impaired | ? | Lifetime ECL - Credit impaired | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 131,167 | ? | 464,445 | ? | 12,515,014 | ? | 13,110,626 | ? | 9,822 | ? | 6,947 | ? | 10,595,616 | ? | 10,612,385 |
| Additions during the year | 462,980 | ? | 100,000 | ? | 8,885,942 | ? | 9,448,922 | ? | 131,167 | ? | 464,145 | ? | 3,084,758 | ? | 3,680,070 |
| Reversals during the year | (31,754) | ? | (559,244) | ? | (3,067,731) | ? | (3,658,729) | ? | (9,822) | ? | (6,647) | ? | (334,930) | ? | (351,399) |
| Written-off during the year | - | ? | - | ? | (32,177) | ? | (32,177) | ? | - | ? | - | ? | (841,937) | ? | (841,937) |
| Other changes | - | ? | - | ? | (3,897) | ? | (3,897) | ? | - | ? | - | ? | 11,507 | ? | 11,507 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 562,393 | ? | 5,201 | ? | 18,297,151 | ? | 18,864,745 | ? | 131,167 | ? | 464,445 | ? | 12,515,014 | ? | 13,110,626 |
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???????
(e) The other receivables categorised by nature
| Nature of other receivables | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Amount due from equity transfer | ? | 200,000,000 | ? | 200,000,000 |
| Margins and deposits | Note | 394,212,834 | ? | 398,335,916 |
| Others | ? | 182,495,301 | ? | 141,433,917 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 776,708,135 | ? | 739,769,833 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 18,864,745 | ? | 13,110,626 |
| ? | ? | ? | ? | ? |
| Total | ? | 757,843,390 | ? | 726,659,207 |
???????
???????
Note: As at 31 December 2024, an equivalent to RMB220,917,503 (2023:
RMB217,669,078) of the margins and deposits mainly represented productioncapacity deposits paid by the Group to suppliers.
(f) 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 wasRMB475,484,404, most of which were deposits and amounts due from equity transfer.No provision is made for bad and doubtful debts after assessment.
8 Inventories
(1) The Group’s inventories by category:
| ? | 31 December 2024 | ? | 31 December 2023 | ||||||||
| ? | 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 | 8,973,042,046 | ? | 1,763,382,653 | ? | 7,209,659,393 | ? | 9,443,911,152 | ? | 2,189,991,288 | ? | 7,253,919,864 |
| Work in progress | 5,803,359,611 | ? | 1,104,535,176 | ? | 4,698,824,435 | ? | 5,564,254,528 | ? | 1,144,952,516 | ? | 4,419,302,012 |
| Finished goods | 15,066,294,957 | ? | 3,954,314,368 | ? | 11,111,980,589 | ? | 16,215,828,399 | ? | 4,056,038,972 | ? | 12,159,789,427 |
| Consumables | 209,462,591 | ? | 677,753 | ? | 208,784,838 | ? | 189,084,809 | ? | - | ? | 189,084,809 |
| Costs to fulfil a contract with a customer | 84,215,137 | ? | - | ? | 84,215,137 | ? | 97,571,213 | ? | - | ? | 97,571,213 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 30,136,374,342 | ? | 6,822,909,950 | ? | 23,313,464,392 | ? | 31,510,650,101 | ? | 7,390,982,776 | ? | 24,119,667,325 |
???????
???????
The Group’s year-end balance of inventories included no capitalised borrowing costs (2023:
Nil).
At the year end, no inventories were pledged as security by the Group (2023: Nil).
(2) An analysis of provision for impairment of inventories of the Group is as follows:
| ? | Balance at the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Raw materials | 2,189,991,288 | ? | 1,169,380,689 | ? | (1,595,989,324) | ? | 1,763,382,653 |
| Work in progress | 1,144,952,516 | ? | 845,365,942 | ? | (885,783,282) | ? | 1,104,535,176 |
| Finished goods | 4,056,038,972 | ? | 4,235,259,606 | ? | (4,336,984,210) | ? | 3,954,314,368 |
| Consumables | - | ? | 1,563,667 | ? | (885,914) | ? | 677,753 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 7,390,982,776 | ? | 6,251,569,904 | ? | (6,819,642,730) | ? | 6,822,909,950 |
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???????
9 Contract assets
| ? | 31 December 2024 |
| ? | ? |
| Balance at the beginning of the year | 96,528,397 |
| ? | ? |
| Transfers from contract assets recognised at the beginning of the period to receivables | (93,653,977) |
| Increase in contract assets resulting from no unconditional right obtained | 148,773,456 |
| ? | ? |
| Sub-total | 151,647,876 |
| ? | ? |
| Less: Provision for bad and doubtful debts | 776,390 |
| ? | ? |
| Balance at the end of the year | 150,871,486 |
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??????
10 Other current assets
| ? | ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| VAT on tax credits | ? | 2,960,415,267 | ? | 2,512,924,348 |
| Input tax to be verified or deducted | ? | 503,287,770 | ? | 291,415,443 |
| Prepaid income taxes | ? | 112,183,664 | ? | 166,028,954 |
| Right to recover returned goods | ? | 166,513,664 | ? | 140,814,527 |
| Others | ? | 211,607,620 | ? | 197,155,659 |
| ? | ? | ? | ? | ? |
| Total | ? | 3,954,007,985 | ? | 3,308,338,931 |
???????
???????
11 Long-term equity investments
(1) The Group’s long-term equity investments by category:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Investments in joint ventures | 404,709,071 | ? | 400,375,826 |
| Investments in associates | 14,302,954,512 | ? | 14,392,984,350 |
| ? | ? | ? | ? |
| Sub-total | 14,707,663,583 | ? | 14,793,360,176 |
| ? | ? | ? | ? |
| Less: Provision for impairment | 1,174,392,281 | ? | 1,061,663,549 |
| ? | ? | ? | ? |
| Total | 13,533,271,302 | ? | 13,731,696,627 |
???????
???????
(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 | ? | Additions during the year | ? | Reductions during the year | ? | Investment (loss) /income under equity method | ? | Other comprehensive income | ? | Other equity movements | ? | Declared distribution of cash dividends or profits | ? | Others | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Joint ventures | 400,375,826 | ? | - | ? | - | ? | 4,333,196 | ? | - | ? | - | ? | - | ? | 49 | ? | 404,709,071 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Associates | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| VusionGroup SA (formely named “SES Imagotag SA Co., Ltd.”) | 5,092,823,075 | ? | - | ? | - | ? | (119,593,271) | ? | - | ? | - | ? | (35,644,762) | ? | (47,286,405) | ? | 4,890,298,637 |
| Erdos BOE Energy Investment Co., Ltd. | 1,808,344,074 | ? | - | ? | - | ? | (2,815,116) | ? | - | ? | 170,648 | ? | - | ? | - | ? | 1,805,699,606 |
| Tianjin Xianzhilian Investment Centre (Limited Partnership) | 1,875,744,723 | ? | - | ? | (52,025,505) | ? | (132,876,372) | ? | - | ? | - | ? | (928,314) | ? | - | ? | 1,689,914,532 |
| Beijing Xindongneng Investment Fund (Limited Partnership) | 1,864,768,203 | ? | - | ? | - | ? | (501,218,917) | ? | 6,032,979 | ? | - | ? | (447,573,615) | ? | - | ? | 922,008,650 |
| Others | 3,751,304,275 | ? | 1,261,298,345 | ? | (2,207,044) | ? | (41,325,466) | ? | 40,461,820 | ? | 17,001,150 | ? | (35,716,235) | ? | 4,216,242 | ? | 4,995,033,087 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 14,392,984,350 | ? | 1,261,298,345 | ? | (54,232,549) | ? | (797,829,142) | ? | 46,494,799 | ? | 17,171,798 | ? | (519,862,926) | ? | (43,070,163) | ? | 14,302,954,512 |
| ? | |||||||||||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 14,793,360,176 | ? | 1,261,298,345 | ? | (54,232,549) | ? | (793,495,946) | ? | 46,494,799 | ? | 17,171,798 | ? | (519,862,926) | ? | (43,070,114) | ? | 14,707,663,583 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | 1,061,663,549 | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | 1,174,392,281 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 13,731,696,627 | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | 13,533,271,302 |
????
????
As at 31 December 2024, certain associates invested by the Group suffered loss and the Group did not have an obligation to assume additionallosses. Therefore, the Company discontinues recognising its share of further losses after the carrying amount of long-term equity investment isreduced to zero, the accumulated unrecognised investment losses amounted to RMB11,456,900 (2023: RMB27,004,563).
12 Investments in other equity instruments
(1) Investments in other equity instruments:
| ? | ? | ? | Movements during the year | ? | ? | ? | ? | ? | ? | ||||||
| Item | Balance at the beginning of the year | ? | Increase in investments | ? | Decrease in investments | ? | Gains or losses recognised in other comprehensive income during the year (“-” for losses) | ? | Others | ? | Balance at the end of the year | ? | Dividend income recognised for the year | ? | Accumulated gains or losses recognised in other comprehensive income (“-” for losses) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Listed equity instrument investment | 169,355,368 | ? | - | ? | - | ? | 52,072,670 | ? | 36,130,330 | ? | 257,558,368 | ? | 15,162,882 | ? | (125,489,785) |
| Unlisted equity instruments investment | 325,274,209 | ? | 609,769 | ? | (9,248,192) | ? | (82,099,706) | ? | (50,722,633) | ? | 183,813,447 | ? | 18,038,273 | ? | (102,869,917) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 494,629,577 | ? | 609,769 | ? | (9,248,192) | ? | (30,027,036) | ? | (14,592,303) | ? | 441,371,815 | ? | 33,201,155 | ? | (228,359,702) |
???
???
(2) Investments derecognised during the year:
| Item | Accumulated gains transferred to retained earnings due to derecognition | ? | Accumulated losses transferred to retained earnings due to derecognition | ? | Reason for derecognition |
| ? | ? | ? | ? | ? | ? |
| Ceribell INC | 14,592,303 | ? | - | ? | Transfers out from disposal |
???
???
13 Other non-current financial assets
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Financial assets at fair value through profit or loss | 2,735,680,042 | ? | 2,253,778,325 |
| Including: Investments in equity instruments | 2,735,680,042 | ? | 2,253,778,325 |
?????
?????
14 Investment properties
| ? | ? | Land use rights | ? | Buildings | ? | Construction in progress | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 785,342,177 | ? | 1,130,308,269 | ? | 100,475,150 | ? | 2,016,125,596 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | ? | - | ? | 7,195,133 | ? | 48,827,787 | ? | 56,022,920 |
| - Transfers from fixed assets | ? | - | ? | 427,786,123 | ? | - | ? | 427,786,123 |
| Disposals during the year | ? | - | ? | (6,270,121) | ? | - | ? | (6,270,121) |
| Other changes | ? | - | ? | 149,302,937 | ? | (149,302,937) | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 785,342,177 | ? | 1,708,322,341 | ? | - | ? | 2,493,664,518 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation or amortisation | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | ? | 195,861,681 | ? | 407,710,469 | ? | - | ? | 603,572,150 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? | ? |
| - Charge for the year | ? | 16,392,531 | ? | 56,926,073 | ? | - | ? | 73,318,604 |
| - Transfers from fixed assets | ? | - | ? | 70,036,824 | ? | - | ? | 70,036,824 |
| Disposals during the year | ? | - | ? | (4,452,800) | ? | - | ? | (4,452,800) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 212,254,212 | ? | 530,220,566 | ? | - | ? | 742,474,778 |
| ? | ||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | ? | 573,087,965 | ? | 1,178,101,775 | ? | - | ? | 1,751,189,740 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | ? | 589,480,496 | ? | 722,597,800 | ? | 100,475,150 | ? | 1,412,553,446 |
???????
15 Fixed assets
(1) Analysis of the Group’s fixed assets are as follows:
| Item | Plant and buildings | ? | Equipment | ? | Others | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 75,988,186,206 | ? | 321,291,899,960 | ? | 14,562,205,110 | ? | 411,842,291,276 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | 16,141,913 | ? | 788,778,243 | ? | 1,473,007,248 | ? | 2,277,927,404 |
| - Transfers from construction in progress | 3,724,603,362 | ? | 24,495,775,553 | ? | 1,747,401,008 | ? | 29,967,779,923 |
| Transfers to investment properties | (427,786,123) | ? | - | ? | - | ? | (427,786,123) |
| Transfers to construction in progress | - | ? | (607,182,082) | ? | (142,127,990) | ? | (749,310,072) |
| Disposals or written-offs during the year | (40,795,055) | ? | (504,619,197) | ? | (233,948,748) | ? | (779,363,000) |
| Written-down against government interest discounts | - | ? | (10,426,505) | ? | - | ? | (10,426,505) |
| Translation differences | 768,399 | ? | (64,866,054) | ? | 86,070 | ? | (64,011,585) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 79,261,118,702 | ? | 345,389,359,918 | ? | 17,406,622,698 | ? | 442,057,101,318 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 12,031,057,846 | ? | 177,593,093,857 | ? | 9,837,849,835 | ? | 199,462,001,538 |
| Charge for the year | 2,167,108,633 | ? | 32,345,754,147 | ? | 2,435,926,437 | ? | 36,948,789,217 |
| Transfers to investment properties | (70,036,824) | ? | - | ? | - | ? | (70,036,824) |
| Transfers to construction in progress | - | ? | (392,050,352) | ? | (117,486,322) | ? | (509,536,674) |
| Disposals or written-offs during the year | (23,890,897) | ? | (465,768,387) | ? | (184,227,907) | ? | (673,887,191) |
| Translation differences | 1,288,806 | ? | (59,933,269) | ? | (1,216,455) | ? | (59,860,918) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 14,105,527,564 | ? | 209,021,095,996 | ? | 11,970,845,588 | ? | 235,097,469,148 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 34,480 | ? | 1,738,196,473 | ? | 270,582,261 | ? | 2,008,813,214 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? |
| - Charge for the year | 3,351,802 | ? | 142,324,506 | ? | 9,954,412 | ? | 155,630,720 |
| - Others | 817,463 | ? | - | ? | - | ? | 817,463 |
| Transfers to construction in progress | - | ? | (42,346,919) | ? | (12,861,390) | ? | (55,208,309) |
| Disposals or written-offs during the year | - | ? | (25,414,907) | ? | (29,425,522) | ? | (54,840,429) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 4,203,745 | ? | 1,812,759,153 | ? | 238,249,761 | ? | 2,055,212,659 |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 65,151,387,393 | ? | 134,555,504,769 | ? | 5,197,527,349 | ? | 204,904,419,511 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 63,957,093,880 | ? | 141,960,609,630 | ? | 4,453,773,014 | ? | 210,371,476,524 |
???????
???????
In 2024, 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 RMB155,630,720 (2023: RMB199,363,784) based on the evaluation results.
The recoverable amount of the relevant asset group is determined by reference to its fairvalue less costs of disposal and the present value of its expected future cash flows. The cashflow forecast period is determined based on the estimated remaining useful life of the asset,the cash flows over the estimated remaining useful life of the asset are determined accordingto financial budgets approved by the management, and the pre-tax discount rate isdetermined with reference to comparable companies and the relevant capital structure.
(2) Fixed assets pending certificates of ownership
As at 31 December 2024, fixed assets pending certificates of ownership totalledRMB1,898,846,096 (2023: RMB6,560,001,886) and certificates of ownership is still beingprocessed.
16 Construction in progress
(1) Analysis of the Group’s construction in progress is as follows:
| ? | 31 December 2024 | ? | 31 December 2023 | ||||||||
| Item | Book value | ? | Provision for impairment | ? | Face value | ? | Book value | ? | Provision for impairment | ? | Face value |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| BOE's 6th generation new semiconductor display device production line project | 10,629,806,006 | ? | - | ? | 10,629,806,006 | ? | 1,147,143,892 | ? | - | ? | 1,147,143,892 |
| Others | 19,606,680,983 | ? | 77,470,892 | ? | 19,529,210,091 | ? | 28,600,320,360 | ? | 77,348,706 | ? | 28,522,971,654 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 30,236,486,989 | ? | 77,470,892 | ? | 30,159,016,097 | ? | 29,747,464,252 | ? | 77,348,706 | ? | 29,670,115,546 |
???????
???????
(2) Movements of major construction projects in progress during the year
| Project | Budget | ? | Balance at the beginning of the year | ? | Additions during the year | ? | Written-down against interest discounts | ? | Transfers to fixed assets | ? | Other decreases | ? | 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 the current year | ? | Interest rate for capitalisation in the current year (%) | ? | Sources of funding |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| BOE's 6th generation new semiconductor display device production line project | 29,000,000,000 | ? | 1,147,143,892 | ? | 9,952,312,682 | ? | - | ? | (469,650,568) | ? | - | ? | 10,629,806,006 | ? | 46.11% | ? | 90,216,409 | ? | 80,470,570 | ? | 2.95% | ? | Self-raised funds and borrowings |
?
17 Right-of-use assets
(1) As a lessee
| ? | Plant and buildings | ? | Equipment | ? | Others | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 869,873,086 | ? | 15,789,766 | ? | 194,845,163 | ? | 1,080,508,015 |
| Additions during the year | 285,559,071 | ? | 3,725,855 | ? | 525,393 | ? | 289,810,319 |
| Reductions during the year | (43,927,050) | ? | (3,602,514) | ? | (4,841,901) | ? | (52,371,465) |
| Translation differences | (35,542,774) | ? | - | ? | (81,753) | ? | (35,624,527) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 1,075,962,333 | ? | 15,913,107 | ? | 190,446,902 | ? | 1,282,322,342 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated depreciation | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 319,601,077 | ? | 6,410,099 | ? | 30,152,494 | ? | 356,163,670 |
| Charge for the year | 192,643,300 | ? | 7,876,013 | ? | 10,157,019 | ? | 210,676,332 |
| Reductions during the year | (20,426,328) | ? | (3,602,514) | ? | (1,042,871) | ? | (25,071,713) |
| Translation differences | (13,818,517) | ? | - | ? | (35,710) | ? | (13,854,227) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 477,999,532 | ? | 10,683,598 | ? | 39,230,932 | ? | 527,914,062 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning and the end of the year | - | ? | - | ? | - | ? | - |
| ? | |||||||
| ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 597,962,801 | ? | 5,229,509 | ? | 151,215,970 | ? | 754,408,280 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 550,272,009 | ? | 9,379,667 | ? | 164,692,669 | ? | 724,344,345 |
??????
??????
18 Intangible assets
(1) Intangible assets
| ? | Land use rights | ? | Patent and proprietary technology | ? | Computer software | ? | Others | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 7,924,529,154 | ? | 6,238,659,015 | ? | 2,277,221,781 | ? | 816,081,655 | ? | 17,256,491,605 |
| Additions during the year | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Purchases | 389,406,887 | ? | 8,044,952 | ? | 70,243,638 | ? | - | ? | 467,695,477 |
| - Transfers from construction in progress | 13,096,315 | ? | - | ? | 209,602,483 | ? | - | ? | 222,698,798 |
| - Transfers from development costs | - | ? | 139,619,053 | ? | - | ? | - | ? | 139,619,053 |
| Translation differences | 3,881,979 | ? | (248,165) | ? | 324,363 | ? | 565,495 | ? | 4,523,672 |
| Disposals during the year | - | ? | - | ? | (17,271,779) | ? | - | ? | (17,271,779) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 8,330,914,335 | ? | 6,386,074,855 | ? | 2,540,120,486 | ? | 816,647,150 | ? | 18,073,756,826 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Accumulated amortisation | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | 830,130,337 | ? | 3,121,888,717 | ? | 1,410,837,304 | ? | 328,049,547 | ? | 5,690,905,905 |
| Charge for the year | 213,028,049 | ? | 589,238,249 | ? | 242,878,497 | ? | 65,331,441 | ? | 1,110,476,236 |
| Translation differences | 60,186 | ? | (248,165) | ? | 85,241 | ? | 344,988 | ? | 242,250 |
| Disposals during the year | - | ? | - | ? | (16,978,433) | ? | - | ? | (16,978,433) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | 1,043,218,572 | ? | 3,710,878,801 | ? | 1,636,822,609 | ? | 393,725,976 | ? | 6,784,645,958 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Less: Provision for impairment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | - | ? | - | ? | - | ? | - | ? | - |
| Charge for the year | - | ? | 25,647,674 | ? | - | ? | - | ? | 25,647,674 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | - | ? | 25,647,674 | ? | - | ? | - | ? | 25,647,674 |
| ? | |||||||||
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| At the end of the year | 7,287,695,763 | ? | 2,649,548,380 | ? | 903,297,877 | ? | 422,921,174 | ? | 11,263,463,194 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| At the beginning of the year | 7,094,398,817 | ? | 3,116,770,298 | ? | 866,384,477 | ? | 488,032,108 | ? | 11,565,585,700 |
???????
???????
19 Goodwill
(1) Changes in goodwill
| Name of investee | Balance at the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cost | ? | ? | ? | ? | ? | ? | ? |
| Chengdu BOE Display Sci-tech Co., Ltd. (“Chengdu Display Sci-tech”) | 537,038,971 | ? | - | ? | - | ? | 537,038,971 |
| Nanjing BOE Display Technology Co., Ltd. (“Nanjing Display Technology”) | 155,714,415 | ? | - | ? | - | ? | 155,714,415 |
| BOE Healthcare Investment & Management Co., Ltd. | 146,460,790 | ? | - | ? | - | ? | 146,460,790 |
| Beijing Yinghe Century Co., Ltd. | 42,940,434 | ? | - | ? | - | ? | 42,940,434 |
| BOE HC SemiTek Corporation (“HC SemiTek”) | 29,596,088 | ? | - | ? | - | ? | 29,596,088 |
| Beijing Zhonghe Ultra High Definition Collaborative Technology Center Co., Ltd | 14,285,847 | ? | - | ? | - | ? | 14,285,847 |
| K-Tronics (Suzhou) technology Co., Ltd. | 8,562,464 | ? | - | ? | - | ? | 8,562,464 |
| Beijing BOE Optoelectronics Technology Co., Ltd. | 4,423,876 | ? | - | ? | - | ? | 4,423,876 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 939,022,885 | ? | - | ? | - | ? | 939,022,885 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Provision for impairment | ? | ? | ? | ? | ? | ? | ? |
| Chengdu BOE Display Sci-tech Co., Ltd. | (147,755,754) | ? | - | ? | - | ? | (147,755,754) |
| BOE Healthcare Investment & Management Co., Ltd. | (82,137,669) | ? | (51,130,564) | ? | - | ? | (133,268,233) |
| Beijing BOE Optoelectronics Technology Co., Ltd. | (4,423,876) | ? | - | ? | - | ? | (4,423,876) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | (234,317,299) | ? | (51,130,564) | ? | - | ? | (285,447,863) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Carrying amount | 704,705,586 | ? | (51,130,564) | ? | - | ? | 653,575,022 |
???????
???????
(2) Provision for impairment of goodwill
The recoverable amount of the asset group to which the above goodwill relates is determinedbased on the present value of expected future cash flows. When predicting the present valueof cash flow, the cash flow in the next 5 years is determined based on the financial budgetapproved by the management. The cash flow in the years after the 5-year financial budgetwill remain stable. The pre-tax discount rate is determined with reference to comparablecompanies and related capital structures.
20 Long-term deferred expenses
| ? | Balance at the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Technology royalty fees prepaid | 333,718,713 | ? | 25,377,702 | ? | (71,002,922) | ? | 288,093,493 |
| Others | 200,775,851 | ? | 210,016,686 | ? | (100,441,107) | ? | 310,351,430 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 534,494,564 | ? | 235,394,388 | ? | (171,444,029) | ? | 598,444,923 |
???????
???????
21 Deferred tax assets / deferred tax liabilities
(1) Deferred tax assets and liabilities
| ? | 2024 | ? | 2023 | ||||
| Item | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/(liabilities) | ? | Deductible/ (taxable) temporary differences | ? | Deferred tax assets/(liabilities) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax assets: | ? | ? | ? | ? | ? | ? | ? |
| Accumulated losses | 3,787,640,423 | ? | 586,142,140 | ? | 2,748,927,099 | ? | 426,287,990 |
| Provision for impairment of assets | 813,547,069 | 139,856,263 | 586,093,818 | 98,130,637 | |||
| Lease liabilities | 502,310,310 | ? | 110,285,658 | ? | 564,279,038 | ? | 119,336,111 |
| Others | 1,298,567,979 | ? | 206,999,637 | ? | 576,540,216 | ? | 99,639,021 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | 6,402,065,781 | ? | 1,043,283,698 | ? | 4,475,840,171 | ? | 743,393,759 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | (348,395,423) | ? | ? | ? | (346,516,739) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | 694,888,275 | ? | ? | ? | 396,877,020 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Deferred tax liabilities: | ? | ? | ? | ? | ? | ? | ? |
| Revaluation due to business combinations involving entities not under common control and Depreciation of fixed assets | (6,973,869,010) | ? | (1,143,270,888) | ? | (8,900,128,679) | ? | (1,487,690,187) |
| Long-term equity investments | (1,487,863,171) | ? | (282,505,936) | ? | (2,113,902,264) | ? | (389,497,116) |
| Right-of-use assets | (503,216,511) | ? | (101,062,209) | ? | (600,669,199) | ? | (130,538,444) |
| Others | (511,688,145) | ? | (112,355,137) | ? | (203,263,744) | ? | (33,430,721) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Sub-total | (9,476,636,837) | ? | (1,639,194,170) | ? | (11,817,963,886) | ? | (2,041,156,468) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Amount offset | ? | ? | 348,395,423 | ? | ? | ? | 346,516,739 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Balance after offsetting | ? | ? | (1,290,798,747) | ? | ? | ? | (1,694,639,729) |
???????
???????
(2) Details of unrecognised deferred tax assets
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Deductible temporary differences | 23,454,408,247 | ? | 23,132,234,962 |
| Deductible tax losses | 66,975,969,671 | ? | 57,936,466,170 |
| ? | ? | ? | ? |
| Total | 90,430,377,918 | ? | 81,068,701,132 |
???????
???????
As at 31 December 2024, the accumulated deductible temporary differences are mainlysubsidiaries’ impairment provisions of assets and accrual of expenses. Due to the uncertaintythat there will be sufficient taxable income to cover these deductible differences in futureperiods, the deferred income tax assets were not recognised in consideration of prudence.
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
| Year | 2024 | ? | 2023 | |
| ? | ? | ? | ? | ? |
| 2024 | ? | - | ? | 308,958,033 |
| 2025 | ? | 637,426,137 | ? | 883,311,469 |
| 2026 | ? | 1,070,157,082 | ? | 1,202,044,391 |
| 2027 | ? | 1,431,984,146 | ? | 2,385,376,981 |
| 2028 | ? | 3,433,591,756 | ? | 3,527,170,592 |
| 2029 | ? | 6,862,197,069 | ? | 5,008,814,339 |
| 2030 | ? | 4,250,636,379 | ? | 4,200,121,737 |
| 2031 | ? | 2,712,347,426 | ? | 2,586,384,422 |
| 2032 | ? | 21,489,965,319 | ? | 23,919,302,827 |
| 2033 | ? | 13,370,606,261 | ? | 13,399,325,173 |
| 2034 | ? | 10,955,646,330 | ? | - |
| Non-fixed term | 761,411,766 | ? | 515,656,206 | |
| ? | ? | ? | ? | ? |
| Total | ? | 66,975,969,671 | ? | 57,936,466,170 |
???????
???????
22 Other non-current assets
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Certificates of deposits and time deposits | 13,348,874,212 | - | |
| Prepayment for construction and purchase of fixed assets | 4,518,996,586 | ? | 2,483,239,768 |
| Others | 1,123,351,747 | ? | 1,482,678,690 |
| ? | ? | ? | ? |
| Total | 18,991,222,545 | ? | 3,965,918,458 |
???????
???????
23 Short-term loans
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Pledged loans | 243,791,874 | ? | 23,498,395 |
| Guaranteed loans | 1,027,353,266 | ? | 1,311,144,222 |
| Unsecured loans | 292,172,026 | ? | 411,541,917 |
| ? | ? | ? | ? |
| Total | 1,563,317,166 | ? | 1,746,184,534 |
?
?
As at 31 December 2024, no short-term loan was past due (2023: Nil).
24 Bills payable
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Bank acceptance bills | 1,390,526,726 | ? | 919,313,033 |
| Commercial acceptance bills | 9,031,243 | ? | - |
| ? | ? | ? | ? |
| Total | 1,399,557,969 | ? | 919,313,033 |
???????
???????
There is no due but unpaid bill payable at the end of the year. The bills above are all duewithin one year.
25 Accounts payable
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Sales payments payable | 36,713,498,406 | ? | 32,977,603,351 |
?
?
As at 31 December 2024, the Group had no significant accounts payable with ageing of morethan one year.
26 Contract liabilities
(1) Contract liabilities are as follows:
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Sale of goods | 2,083,836,158 | ? | 3,000,168,620 |
??????
??????
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 when the Group satisfies its performance obligations.
(2) Significant changes in the contract liabilities of the Group are as follows:
| ? | 2024 |
| ? | ? |
| Balance at the beginning of the year | 3,000,168,620 |
| ? | ? |
| Revenue recognised that was included in the contract liability balance at the beginning of year | (2,779,202,988) |
| Increase of contract liabilities due to cash received at the end of the year | 1,862,870,526 |
| ? | ? |
| Balance at the end of the year | 2,083,836,158 |
???
???
27 Employee benefits payable
(1) Employee benefits payable:
| ? | Note | Balance at 1 January 2024 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2024 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 3,044,568,227 | ? | 18,512,715,190 | ? | (17,528,556,385) | ? | 4,028,727,032 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 53,121,125 | ? | 1,895,073,898 | ? | (1,902,947,026) | ? | 45,247,997 |
| Termination benefits | ? | 3,221,924 | ? | 29,761,343 | ? | (30,949,908) | ? | 2,033,359 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 3,100,911,276 | ? | 20,437,550,431 | ? | (19,462,453,319) | ? | 4,076,008,388 |
???????
???????
| ? | Note | Balance at 1 January 2023 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2023 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term employee benefits | (2) | 2,656,369,348 | ? | 16,850,640,827 | ? | (16,462,441,948) | ? | 3,044,568,227 |
| Post-employment benefits | ? | ? | ? | ? | ? | ? | ? | ? |
| - defined contribution plans | (3) | 58,051,832 | ? | 1,848,632,320 | ? | (1,853,563,027) | ? | 53,121,125 |
| Termination benefits | ? | 104,111,643 | ? | 50,931,357 | ? | (151,821,076) | ? | 3,221,924 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 2,818,532,823 | ? | 18,750,204,504 | ? | (18,467,826,051) | ? | 3,100,911,276 |
??????
??????
(2) Short-term employee benefits
| ? | Balance at 1 January 2024 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2024 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses and allowances | 1,917,285,682 | ? | 14,930,402,847 | ? | (14,137,157,644) | ? | 2,710,530,885 |
| Staff welfare | - | ? | 1,235,790,293 | ? | (1,235,790,293) | ? | - |
| Social insurance | 37,193,021 | ? | 893,705,699 | ? | (896,458,516) | ? | 34,440,204 |
| - Medical insurance | 35,066,829 | ? | 836,299,073 | ? | (839,065,366) | ? | 32,300,536 |
| - Work-related injury insurance | 2,126,192 | ? | 57,406,626 | ? | (57,393,150) | ? | 2,139,668 |
| Housing fund | 19,697,119 | ? | 1,045,337,798 | ? | (1,040,320,725) | ? | 24,714,192 |
| Labour union fee, staff and workers’ education fee | 1,046,342,699 | ? | 401,911,495 | ? | (211,755,032) | ? | 1,236,499,162 |
| Staff and workers’ bonus and welfare fund | 20,553,209 | ? | - | ? | - | ? | 20,553,209 |
| Other short-term employee benefits | 3,496,497 | ? | 5,567,058 | ? | (7,074,175) | ? | 1,989,380 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 3,044,568,227 | ? | 18,512,715,190 | ? | (17,528,556,385) | ? | 4,028,727,032 |
???????
???????
| ? | Balance at 1 January 2023 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2023 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Salaries, bonuses and allowances | 1,689,488,356 | ? | 13,369,970,316 | ? | (13,142,172,990) | ? | 1,917,285,682 |
| Staff welfare | - | ? | 1,200,381,109 | ? | (1,200,381,109) | ? | - |
| Social insurance | 45,026,603 | ? | 866,656,861 | ? | (874,490,443) | ? | 37,193,021 |
| - Medical insurance | 42,596,285 | ? | 818,538,486 | ? | (826,067,942) | ? | 35,066,829 |
| - Work-related injury insurance | 2,430,318 | ? | 48,118,375 | ? | (48,422,501) | ? | 2,126,192 |
| Housing fund | 29,798,139 | ? | 1,034,105,760 | ? | (1,044,206,780) | ? | 19,697,119 |
| Labour union fee, staff and workers’ education fee | 871,474,749 | ? | 362,090,148 | ? | (187,222,198) | ? | 1,046,342,699 |
| Staff and workers’ bonus and welfare fund | 20,553,209 | ? | - | ? | - | ? | 20,553,209 |
| Other short-term employee benefits | 28,292 | ? | 17,436,633 | ? | (13,968,428) | ? | 3,496,497 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 2,656,369,348 | ? | 16,850,640,827 | ? | (16,462,441,948) | ? | 3,044,568,227 |
????
????
(3) Post-employment benefits – defined contribution plans
| ? | Balance at 1 January 2024 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2024 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 31,997,380 | ? | 1,601,749,795 | ? | (1,605,859,723) | ? | 27,887,452 |
| Unemployment insurance | 1,040,396 | ? | 54,220,057 | ? | (54,332,380) | ? | 928,073 |
| Annuity | 20,083,349 | ? | 239,104,046 | ? | (242,754,923) | ? | 16,432,472 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 53,121,125 | ? | 1,895,073,898 | ? | (1,902,947,026) | ? | 45,247,997 |
???????
???????
| ? | Balance at 1 January 2023 | ? | Accrued during the year | ? | Decrease during the year | ? | Balance at 31 December 2023 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Basic pension insurance | 37,012,623 | ? | 1,550,009,517 | ? | (1,555,024,760) | ? | 31,997,380 |
| Unemployment insurance | 1,320,821 | ? | 51,043,742 | ? | (51,324,167) | ? | 1,040,396 |
| Annuity | 19,718,388 | ? | 247,579,061 | ? | (247,214,100) | ? | 20,083,349 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 58,051,832 | ? | 1,848,632,320 | ? | (1,853,563,027) | ? | 53,121,125 |
??????
??????
28 Taxes payable
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Corporate income tax | 661,144,508 | ? | 502,726,541 |
| Value-added tax (VAT) | 314,302,588 | ? | 96,556,759 |
| Urban construction tax | 243,831,131 | ? | 309,488,421 |
| Education surcharges and local education surcharges | 174,228,317 | ? | 223,104,253 |
| Individual income tax | 42,608,326 | ? | 39,311,660 |
| Others | 140,491,726 | ? | 145,892,388 |
| ? | ? | ? | ? |
| Total | 1,576,606,596 | ? | 1,317,080,022 |
???????
???????
29 Other payables
| ? | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Interest payable | ? | - | ? | 175,698 |
| Dividends payable | ? | 42,861,753 | ? | 39,014,714 |
| Others | (1) | 20,785,100,817 | ? | 19,448,570,553 |
| ? | ? | ? | ? | ? |
| Total | ? | 20,827,962,570 | ? | 19,487,760,965 |
???????
???????
(1) Others
The Group’s other payables by category are as follows:
| ? | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Projects and equipment | ? | 15,590,702,070 | ? | 13,556,738,142 |
| Fund transaction (Note) | ? | 3,236,033,067 | ? | 3,182,963,067 |
| Margins and deposits | ? | 581,371,160 | ? | 764,238,522 |
| Repurchase obligation of restricted shares | V.41 | 228,786,210 | ? | 457,401,616 |
| Others | ? | 1,148,208,310 | ? | 1,487,229,206 |
| ? | ? | ? | ? | ? |
| Total | ? | 20,785,100,817 | ? | 19,448,570,553 |
??
??
The Group’s significant other payables aged over one year are payables of projects andequipment.
Note: The Group's other payables as at 31 December 2024 were amounts and interest due
to original controlling shareholders of Nanjing Display Technology and ChengduDisplay Technology, with the interest rates of 2.175% and 0%, respectively.
30 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 fromminority shareholders with redemption provisions.
| ? | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Long-term loans due within one year | V.32 | 42,892,065,934 | ? | 24,221,150,789 |
| Lease liabilities due within one year | V.33 | 147,060,968 | ? | 168,698,260 |
| Long-term payables due within one year | V.34 | 22,944,576 | ? | 47,178,393 |
| Contribution from minority shareholders with redemption provisions | V.37 | 444,468,133 | ? | - |
| ? | ? | ? | ? | ? |
| Total | ? | 43,506,539,611 | ? | 24,437,027,442 |
?
?
31 Other current liabilities
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Warranty provisions | 2,508,912,990 | ? | 2,751,418,713 |
| Others | 886,058,150 | ? | 334,354,878 |
| ? | ? | ? | ? |
| Total | 3,394,971,140 | ? | 3,085,773,591 |
??????
??????
The other current liabilities of the Group were warranty provisions. The warranty provisionsmainly relate 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.
32 Long-term loans
| ? | Note ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Pledged loans | ? | 702,831,586 | ? | 815,374,959 |
| Loans secured by mortgages | ? | 60,149,714,863 | ? | 67,886,121,454 |
| Guaranteed loans | ? | 3,528,124,014 | ? | 4,721,896,695 |
| Unsecured loans | ? | 79,443,787,211 | ? | 72,344,096,703 |
| Less: Long-term loans due within one year | V.30 | 42,892,065,934 | ? | 24,221,150,789 |
| ? | ? | ? | ? | ? |
| Total | ? | 100,932,391,740 | ? | 121,546,339,022 |
???????
???????
33 Lease liabilities
| Item | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Long-term lease liabilities | ? | 778,479,954 | ? | 710,839,756 |
| Less: Lease liabilities due within one year | V.30 | 147,060,968 | ? | 168,698,260 |
| ? | ? | ? | ? | ? |
| Total | ? | 631,418,986 | ? | 542,141,496 |
??????
??????
During the year ended 31 December 2024, income from short-term leases and leases of low-value assets which are accounted for using the practical expedient as well as sub-leasingright-of-use assets for which the Group, as a lessee, was not significant.
34 Long-term payables
| Item | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Obligations under finance leases | ? | 144,022,447 | ? | 218,789,786 |
| Less: obligations under finance leases due within one year | V.30 | 22,944,576 | ? | 47,178,393 |
| ? | ? | ? | ? | ? |
| Total | ? | 121,077,871 | ? | 171,611,393 |
???????
???????
As at 31 December 2024, the Group sold and leased back some of its machinery andequipment as well as 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.
35 Provisions
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Outstanding litigation | 1,652,566 | ? | 3,580,000 |
???
???
36 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 | 3,758,611,328 | ? | 419,981,983 | ? | (576,945,669) | ? | (22,495,397) | ? | 3,579,152,245 |
| Related to income | 1,004,440,627 | ? | 456,060,502 | ? | (491,151,584) | ? | (3,883,859) | ? | 965,465,686 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 4,763,051,955 | ? | 876,042,485 | ? | (1,068,097,253) | ? | (26,379,256) | ? | 4,544,617,931 |
???????
???????
37 Other non-current liabilities
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Contribution of non-controlling interests with redemption provisions | 2,047,376,157 | ? | 2,500,522,066 |
| Others | 601,446,602 | ? | - |
| ? | ? | ? | ? |
| Total | 2,648,822,759 | ? | 2,500,522,066 |
???????
???????
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 and will be repurchased at theagreed price for the period from 2025 and 2034 according to the agreement, of which thepart due in 2025 will be listed as non-current liabilities due within one year.
38 Share capital
| ? | ? | ? | Changes during the year | ? | ? | ||||
| ? | Balance at the beginning of the year | ? | Issuance of new shares | ? | Cancellation of treasury shares | ? | Sub-total | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total shares | 37,652,529,195 | ? | - | ? | (7,512,992) | ? | (7,512,992) | ? | 37,645,016,203 |
???????
???????
On 4 June 2024, the Company repurchased and cancelled 2,547,779 shares of restrictedshares at China Securities Depository and Clearing Corporation Limited Shenzhen Branch.After the completion of the cancellation procedures, the total shares will be changed from37,652,529,195 shares to 37,649,981,416 shares.
On 9 December 2024, the Company repurchased and cancelled 4,965,213 shares ofrestricted shares at China Securities Depository and Clearing Corporation Limited ShenzhenBranch. After the completion of cancellation, the total share capital of the Company changedfrom 37,649,981,416 shares to 37,645,016,203 shares.
39 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 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 22BOEY1 | 24 March 2022 | ? | Equity instrument | ? | 3.50% | ? | RMB 100/bond | ? | 20 million | ? | RMB 2 billion | ? | 3+N years | ? | Not applicable | ? | Not applicable |
???????
???????
(2) Major terms
On 24 March 2022, with the approval document No.1801 [2019] of the China SecuritiesRegulatory Commission (“CSRC”), the Company issued renewable corporate bonds toqualified investors. The full name of these bonds was Renewable Corporate Bond PubliclyIssued by BOE Technology Group Co., Ltd. (digital economy) in 2022 (the First Phase),which referred to as 22BOEY1 (“2022 bond”).
2022 bond has a base term of 3 years and take every three interest-bearing years as aperiod. The Company is entitled to choose to extend the maturity by 1 period at the end ofthe agreed base term or at the end of each extended period, or choose to fully derecognisethe 2022 bond at the end of the period. The nominal interest rate of the 2022 bond is fixedduring the first period, and then is reset once every period. The nominal interest rate in thefirst period is the initial benchmark interest rate plus the initial spread, and the nominalinterest rate in the subsequent period is adjusted to the current benchmark interest rate plusthe initial 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 significantly. The 2022 bond have an issuer’s right to defer thepayment of interest. Unless a mandatory interest payment event occurs (includingdistributions to ordinary shareholders and decrease of registered capital). At each interestpayment date of the bonds, the Company may choose at its discretion whether to defer thepayment of the current interest as well as all the deferred interests and the yields under thisterm until the next interest payment date without being subjected to any limit on the numberof interest deferring attempts.
As at 31 December 2024, the actual issuance of the 2022 bond amounted toRMB2,000,000,000 in total, and the Company considers that the renewable corporate bondsdo not meet the definition of financial liabilities, and therefore will charge the total amount ofthe issuance to other equity instruments after deducting underwriting fees and othertransaction costs.
(3) Movement of the financial instruments (including perpetual bonds) that remain outstanding at
the end of the year:
| ? | At the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Accumulative 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 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| 22BOEY1 | 20,000,000 | ? | 2,043,402,946 | ? | - | ? | - | ? | - | ? | - | ? | 70,000,000 | ? | (70,000,000) | ? | 20,000,000 | ? | 2,043,402,946 |
???????
???????
(4) Relevant information regarding amounts attributable to holders of equity instruments
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Equity attributable to shareholders of the Company | 132,937,555,308 | ? | 129,428,307,067 |
| - Equity attributable to ordinary shareholders of the Company | 130,894,152,362 | ? | 127,384,904,121 |
| - Equity attributable to holders of the Company’s other equity instruments | 2,043,402,946 | ? | 2,043,402,946 |
| Equity attributable to non-controlling shareholders | 71,608,616,436 | ? | 68,370,379,252 |
| - Equity attributable to non-controlling ordinary shareholders | 71,608,616,436 | ? | 68,370,379,252 |
| - Equity attributable to non-controlling shareholders of other equity instruments | - | ? | - |
???????
???????
(5) Accrued interest on holders of other equity instruments
In 2024, as the above-mentioned issued renewable corporate bonds are cumulative otherequity instruments, the Company accrued interest of RMB70,000,000 on renewablecorporate bonds from undistributed profits and paid interest of RMB70,000,000 on renewablecorporate bonds.
40 Capital reserve
| Item | 1 January 2024 | ? | Additions during the period | ? | Reductions during the period | ? | 31 December 2024 | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Share premium | ? | 50,340,686,263 | ? | - | ? | (71,738,763) | ? | 50,268,947,500 |
| Other capital reserves | ? | 1,772,894,483 | ? | 165,731,723 | ? | - | ? | 1,938,626,206 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | 52,113,580,746 | ? | 165,731,723 | ? | (71,738,763) | ? | 52,207,573,706 |
???????
???????
41 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 | 462,036,240 | ? | 999,872,378 | ? | (245,417,935) | ? | 1,216,490,683 |
??????
??????
According to the Proposal of Repurchase and Cancellation of Certain Restricted Shares bythe Company deliberated and adopted in the 28
th meeting of the 10
thsession of the Board ofDirectors meeting and the 9
th meeting of the 10
thsession of the Board of Supervisors held on29 March 2024, the Company completed repurchase and cancellation of 2,547,779 restrictedshares on 4 June 2024 at an average repurchased price of RMB 2.349/share. Thecorresponding reduction of the treasury shares are RMB5,984,733, the shortfall between thecancelled treasury shares and the share capital of RMB3,436,954 is deducted againstCapital reserve—Share premium.
Pursuant to the Proposal on the Fulfilment of the Conditions for the Release of RestrictedShares Granted under the 2020 Share Option and Restricted Share Incentive Plan during theSecond Release Period of the Restricted Shares and the Fulfilment of the Conditions for theSecond Exercise Period of the First Exercise Period of the Initial Grant of Share Optionsdeliberated and adopted in the 28
th
meeting of the 10
thsession of the Board of Directorsmeeting and the 9
th
meeting of the 10
thsession of the Board of Supervisors on 29 March2024, the Company recognised a total of 95,859,475 restricted shares that can be releasedfrom restricted sale, with the listing and circulation date on 11 April 2024, corresponding toRMB 225,173,907 reduction of Other payables—the Repurchased obligation of restrictedshares (Note V. 29) and Treasury shares.
According to the Proposal of Repurchase and Cancellation of Certain Restricted Shares bythe Company deliberated and adopted in the 38
th meeting of the 10
th
session of the Board ofDirectors meeting and the 13
th
meeting of the 10
thsession of the Board of Supervisors heldon 29 October 2024. The Company completed repurchase and cancellation of 4,965,213restricted shares on 9 December 2024 at an average repurchased price of RMB 2.319/share.The corresponding reduction of the treasury shares are RMB11,514,329, the shortfallbetween the cancelled treasury shares and the share capital of RMB6,549,116 is deductedagainst Capital reserve—Share premium.
According to the 38th meeting of the 10th session of the Board of Directors meeting held on29 October 2024, the Proposal of Repurchase of Certain Public Shares of the Company wasreviewed and approved. As at 31 December 2024, the Company repurchased its sharesthrough the special securities account for repurchase by centralised bidding, and theaccumulative A-shares repurchased was 228,882,900. The highest trading price of therepurchase is RMB4.46/share, the lowest trading price is RMB4.22/share, and the totalamount paid is RMB999,872,378 (excluding transaction costs).
In 2024, the Company recognised RMB2,744,966 of restricted share dividends against Otherpayables—the Repurchased obligation of restricted shares (Note V.29) and Treasury shares.
42 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 | (367,431,914) | ? | 10,371,922 | ? | 719,358 | ? | - | ? | 10,383,379 | ? | (730,815) | ? | 15,118,863 | ? | (372,167,398) |
| Including: Other comprehensive income recognised under equity method | (182,042,186) | ? | 46,494,799 | ? | 904,946 | ? | - | ? | 45,589,853 | ? | - | ? | 526,560 | ? | (136,978,893) |
| Changes in fair value of investments in other equity instruments | (185,389,728) | ? | (36,122,877) | ? | (185,588) | ? | - | ? | (35,206,474) | ? | (730,815) | ? | 14,592,303 | ? | (235,188,505) |
| Items that may be reclassified to profit or loss | (769,565,310) | ? | (15,428,984) | ? | - | ? | - | ? | (30,091,156) | ? | 14,662,172 | ? | - | ? | (799,656,466) |
| Including: Other comprehensive income recognised under equity method | (118,842) | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (118,842) |
| Translation differences arising from translation of foreign currency financial statements | (769,446,468) | ? | (15,428,984) | ? | - | ? | - | ? | (30,091,156) | ? | 14,662,172 | ? | - | ? | (799,537,624) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | (1,136,997,224) | ? | (5,057,062) | ? | 719,358 | ? | - | ? | (19,707,777) | ? | 13,931,357 | ? | 15,118,863 | ? | (1,171,823,864) |
????
????
?
43 Surplus reserve
| Item | Balance at the beginning of the year | ? | Additions during the year | ? | Other changes during the year | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Statutory surplus reserve | 3,282,107,326 | ? | 307,923,188 | ? | 52,656 | ? | 3,590,083,170 |
| Discretionary surplus reserve | 289,671,309 | ? | - | ? | - | ? | 289,671,309 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 3,571,778,635 | ? | 307,923,188 | ? | 52,656 | ? | 3,879,754,479 |
???????
???????
44 Retained earnings
| Item | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| Retained earnings at the beginning of the year | ? | 35,579,576,607 | ? | 35,829,465,307 |
| Add: Net profits for the year attributable to shareholders of the Company | ? | 5,323,248,974 | ? | 2,547,435,360 |
| Less: Appropriation for statutory surplus reserve | ? | 307,923,188 | ? | 330,597,179 |
| Interest on holders of other equity instruments | V.39 | 70,000,000 | ? | 118,551,232 |
| Dividends to ordinary shares | (a) | 1,129,073,743 | ? | 2,296,367,348 |
| Transfer of other comprehensive income to retained earnings | (b) | (15,066,207) | ? | 51,808,301 |
| ? | ? | ? | ? | ? |
| Retained earnings at the end of the year | ? | 39,410,894,857 | ? | 35,579,576,607 |
???????
???????
(a) According to the Annual Shareholders’ Meeting for 2023 held on 26 April 2024, the Company
distributed cash dividends to shareholders of A shares and B shares on 19 June 2024 (Ashares) and 21 June 2024 (B shares), with RMB0.3 (2023: RMB0.61) every 10 shares and aprofit distribution amount of RMB1,131,818,709. Considering the turnover rate, thecorresponding dividends of the expected non-exercisable portions of restricted shares areRMB144,471 with a profit distribution of RMB1,129,073,743 (2023: RMB1,268,367 andRMB2,296,367,348).
(b) The amount of transfers of other comprehensive income to retained earnings in 2024 was
RMB15,066,207 (2023: gains of RMB51,808,301), resulting from the transfer of accumulatedlosses from changes in fair value to retained earnings due to the disposal of investments inother equity instruments.
(c) As at 31 December 2024, the consolidated retained earnings attributable to the Company
included appropriation to surplus reserves made by the Company’s subsidiaries amountingto RMB7,233,974,561 (2023: RMB6,738,372,634).
45 Operating income and operating costs
(1) Operating income and operating costs
| ? | 2024 | ? | 2023 | ||||
| Item | Income | ? | Cost | ? | Income | ? | Cost |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Principal activities | 193,576,127,325 | ? | 164,101,410,809 | ? | 169,749,300,319 | ? | 150,477,735,786 |
| Other operating activities | 4,804,478,336 | ? | 4,120,538,764 | ? | 4,794,145,576 | ? | 3,995,934,250 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 198,380,605,661 | ? | 168,221,949,573 | ? | 174,543,445,895 | ? | 154,473,670,036 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Including: Revenue from contracts with customers | 197,588,200,093 | ? | 168,118,876,665 | ? | 174,029,517,307 | ? | 154,364,762,404 |
| Other income | 792,405,568 | ? | 103,072,908 | ? | 513,928,588 | ? | 108,907,632 |
???????
???????
Information on income of principal activities has been included in Note XV.
Revenue and the related costs of the Group's sales before intended use are as follows:
Relating to ordinary activities:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Operating income | 852,474,207 | ? | 2,109,347,934 |
| Operating costs | 820,315,992 | ? | 1,877,621,445 |
????
????
46 Taxes and surcharges
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Property tax | 653,423,403 | ? | 597,939,410 |
| Urban maintenance and construction tax | 214,651,232 | ? | 171,689,341 |
| Stamp duty | 180,996,591 | ? | 156,907,291 |
| Education surcharges and local education surcharges | 153,632,475 | ? | 125,103,191 |
| Land use tax | 70,077,226 | ? | 59,008,233 |
| Others | 23,365,969 | ? | 22,338,399 |
| ? | ? | ? | ? |
| Total | 1,296,146,896 | ? | 1,132,985,865 |
???????
???????
47 Selling and distribution expenses
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Staff costs and daily expenses | 1,524,547,555 | ? | 1,438,718,863 |
| Others | 470,747,097 | ? | 457,612,673 |
| ? | ? | ? | ? |
| Total | 1,995,294,652 | ? | 1,896,331,536 |
???????
???????
48 General and administrative expenses
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Staff costs and daily expenses | 3,781,534,288 | ? | 3,609,519,043 |
| Depreciation and amortisation | 1,062,279,681 | ? | 935,214,349 |
| Repair expenses | 39,755,624 | ? | 41,921,740 |
| Others | 1,335,102,537 | ? | 1,358,220,408 |
| ? | ? | ? | ? |
| Total | 6,218,672,130 | ? | 5,944,875,540 |
???????
???????
49 Research and development expenses
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Staff costs and daily expenses | 5,570,963,161 | ? | 5,007,531,801 |
| Material and test expenses | 3,331,371,532 | 2,434,873,103 | |
| Depreciation and amortisation | 2,201,837,134 | ? | 2,263,292,470 |
| Others | 2,019,137,404 | ? | 1,613,805,714 |
| ? | ? | ? | ? |
| Total | 13,123,309,231 | ? | 11,319,503,088 |
???????
???????
50 Financial expenses
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Interest expense from loans and lease liabilities | 4,335,040,880 | ? | 4,093,007,199 |
| Less: Borrowing costs capitalised | 301,781,000 | ? | 556,117,300 |
| Interest income from bank deposits | (2,285,948,395) | ? | (2,032,287,888) |
| Exchange gains | (543,827,626) | ? | (439,326,037) |
| Other financial expenses | 20,903,511 | ? | 85,034,572 |
| ? | ? | ? | ? |
| Total | 1,224,387,370 | ? | 1,150,310,546 |
???????
???????
The interest rates per annum at which borrowing costs were capitalised by the Group was
1.95% - 2.95% (2023: 2.95% - 3.95%) for the year.
51 Other income
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Government grants related to assets | 576,945,669 | ? | 547,154,297 |
| Government grants related to income | 1,220,232,805 | ? | 3,443,984,813 |
| Weighted deduction of input VAT | 462,974,895 | ? | 177,734,568 |
| Others | 28,324,197 | ? | 33,459,478 |
| ? | ? | ? | ? |
| Total | 2,288,477,566 | ? | 4,202,333,156 |
???????
???????
The amount of government subsidies related to income received by the Group in 2024 anddirectly included in other income was RMB729,081,221.
52 Investment income
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| Income from long-term equity investments accounted for using the equity method | V.11 | (752,455,175) | ? | 702,555,344 |
| Investment income from disposal of long-term equity investments | ? | 52,696,519 | ? | 1,581,850 |
| Investment income from disposal of financial assets held for trading | ? | 48,676,748 | ? | 69,166,228 |
| Dividend income from investments in other equity instruments | V.12 | 33,201,155 | ? | 28,419,020 |
| Including: Dividend income from investments in other equity instruments held at the balance sheet date | ? | 33,201,155 | ? | 28,419,020 |
| Others | ? | 76,980,100 | ? | 8,987,200 |
| ? | ? | ? | ? | ? |
| Total | ? | (540,900,653) | ? | 810,709,642 |
???????
???????
53 Gains from changes in fair value
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Financial assets held for trading | 522,447,744 | ? | 291,542,233 |
???????
???????
54 Credit losses
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Accounts receivable | 106,324,987 | ? | 15,213,883 |
| Other receivables | 5,790,193 | ? | 3,328,671 |
| Bills receivable | 9,934 | ? | 19,644 |
| ? | ? | ? | ? |
| Total | 112,125,114 | ? | 18,562,198 |
???????
???????
55 Impairment losses
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Impairment losses of inventories | 3,270,730,264 | ? | 2,202,962,576 |
| Impairment losses of fixed assets | 155,630,720 | ? | 199,363,784 |
| Impairment losses of long-term equity investments | 110,719,534 | ? | - |
| Impairment losses of goodwill | 51,130,564 | ? | - |
| Impairment losses of intangible assets | 25,647,674 | ? | - |
| Impairment losses of construction in progress | 10,445,089 | ? | 3,086,619 |
| Impairment losses of contract assets | (41,265) | ? | 817,655 |
| ? | ? | ? | ? |
| Total | 3,624,262,580 | ? | 2,406,230,634 |
???????
???????
56 Gains from asset disposals
| Item | 2024 | ? | 2023 | ? | Amount recognised in extraordinary gain and loss in 2024 |
| ? | ? | ? | ? | ? | ? |
| Gains from disposal of fixed assets | 96,788,213 | ? | 9,798,475 | ? | 96,788,213 |
| (Losses) / Gains from disposal of right-of-use assets | (612,949) | ? | 3,291,911 | ? | (612,948) |
| ? | ? | ? | ? | ? | ? |
| Total | 96,175,264 | ? | 13,090,386 | ? | 96,175,264 |
???????
???????
57 Non-operating income and non-operating expenses
(1) Non-operating income by item is as follows:
| Item | 2024 | ? | 2023 | ? | Amount recognised in extraordinary gain and loss in 2024 |
| ? | ? | ? | ? | ? | ? |
| Income from recoveries and disposals of residual materials | 156,922,836 | ? | 176,876,507 | ? | 156,922,836 |
| Gains from disposal of non-current assets | 10,758,866 | ? | 10,212,047 | ? | 10,758,866 |
| Others | 48,604,570 | ? | 196,907,609 | ? | 48,604,570 |
| ? | ? | ? | ? | ? | ? |
| Total | 216,286,272 | ? | 383,996,163 | ? | 216,286,272 |
???????
???????
(2) Non-operating expenses
| ? | 2024 | ? | 2023 | ? | Amount recognised in extraordinary gain and loss in 2024 |
| ? | ? | ? | ? | ? | ? |
| Donations provided | 22,799,573 | ? | 4,201,070 | ? | 22,799,573 |
| Losses from scrapping of non-current assets | 9,315,968 | ? | 42,927,593 | ? | 9,315,968 |
| Others | 29,175,134 | ? | 22,520,694 | ? | 29,175,134 |
| ? | ? | ? | ? | ? | ? |
| Total | 61,290,675 | ? | 69,649,357 | ? | 61,290,675 |
???????
???????
58 Income tax expenses
| ? | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| Current tax expense based on tax law and regulations | ? | 1,636,979,210 | ? | 1,311,971,433 |
| Changes in deferred tax assets/liabilities | (1) | (696,599,459) | ? | 151,155,913 |
| ? | ? | ? | ? | ? |
| Total | ? | 940,379,751 | ? | 1,463,127,346 |
???????
???????
(1) The analysis of changes in deferred tax assets/liabilities is set out below:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Origination and reversal of temporary differences | (696,599,459) | ? | 151,155,913 |
???????
???????
(2) Reconciliation between income tax expense and accounting profit:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Profit before taxation | 5,085,653,633 | ? | 1,832,998,675 |
| Expected income tax expense at tax rate of 15% | 762,848,045 | ? | 274,949,801 |
| Add: Effect of different tax rates applied by subsidiaries | (23,588,496) | ? | 18,028,526 |
| Effect of non-deductible costs, expense and losses | 12,976,976 | ? | 51,628,306 |
| Tax effect of weighted deduction and tax preference | (1,344,141,676) | ? | (1,017,881,773) |
| Utilisation of prior year tax losses | (634,192,216) | ? | (269,688,693) |
| Tax effect of deductible losses of deferred tax assets not recognised | 2,102,425,214 | ? | 2,326,078,995 |
| Tax effect of deductible temporary differences of deferred tax assets not recognised | 64,051,904 | ? | 80,012,184 |
| ? | ? | ? | ? |
| Income tax expenses | 940,379,751 | ? | 1,463,127,346 |
???????
???????
59 Basic 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.
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Consolidated net profit attributable to shareholders of the Company | 5,323,248,974 | ? | 2,547,435,360 |
| Less: Current interest of other equity instruments | 70,000,000 | ? | 118,551,232 |
| Less: Current dividends of restricted shareholders | 2,744,966 | ? | 17,173,897 |
| Consolidated net profit attributable to ordinary shareholders of the Company | 5,250,504,008 | ? | 2,411,710,231 |
| Weighted average number of ordinary shares outstanding (shares) | 37,519,930,241 | ? | 37,429,510,530 |
| Basic earnings per share (RMB/share) | 0.14 | ? | 0.06 |
???????
???????
Weighted average number of ordinary shares is calculated as follows:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Issued ordinary shares at the beginning of the year | 37,457,807,349 | ? | 37,355,546,569 |
| Add: Weighted average number of ordinary shares issued in current period | - | ? | - |
| Add: Weighted average of restricted shares released from sale restrictions during the period | 69,144,539 | ? | 73,963,961 |
| Less: Weighted average number of ordinary shares repurchased in current period | 7,021,647 | ? | - |
| ? | ? | ? | ? |
| Weighted average number of ordinary shares at 31 December | 37,519,930,241 | ? | 37,429,510,530 |
??????
??????
60 Cash flow statement
(1) Cash relating to operating activities
a. Proceeds relating to other operating activities
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Government grants received | 2,262,269,718 | ? | 5,323,824,411 |
| Restricted cash at bank and on hand as well as others related to operating activities | 339,696,656 | ? | 821,660,520 |
| ? | ? | ? | ? |
| Total | 2,601,966,374 | ? | 6,145,484,931 |
???
???
b. Payments relating to other operating activities
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Expenses paid during the period | 7,349,209,291 | ? | 7,613,110,071 |
???
???
(2) Cash relating to investing activities
a. Proceeds relating to other investing activities
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Interest income | 1,999,870,941 | ? | 1,658,880,796 |
| Restricted cash at bank and on hand as well as others related to investing activities | 485,461,264 | ? | 2,281,607,894 |
| ? | ? | ? | ? |
| Total | 2,485,332,205 | ? | 3,940,488,690 |
???
???
(3) Cash relating to financing activities
a. Payments for other financing activities
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Acquisition of non-controlling interests of subsidiaries | 241,418,106 | ? | 7,429,009,200 |
| Repurchase of treasury shares | 999,872,378 | ? | - |
| Principal and interest related to leases and others | 614,027,613 | ? | 467,134,209 |
| ? | ? | ? | ? |
| Total | 1,855,318,097 | ? | 7,896,143,409 |
???
???
b. Changes in liabilities arising from financing activities
| ? | ? | ? | Additions during the year | ? | Reductions during the year | ? | ? | ||||
| ? | Balance at the beginning of the year | ? | Cash | ? | Non-cash | ? | Cash | ? | Non-cash | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term loans | 1,746,184,534 | ? | 2,759,165,678 | ? | 66,843,120 | ? | (2,915,467,688) | ? | (93,408,478) | ? | 1,563,317,166 |
| Long-term loans (including non-current liabilities due within one year) | 145,767,489,811 | ? | 44,434,871,585 | ? | 4,923,036,134 | ? | (51,300,939,856) | ? | - | ? | 143,824,457,674 |
| Lease liabilities (including non-current liabilities due within one year) | 710,839,756 | ? | - | ? | 521,007,976 | ? | (453,367,778) | ? | - | ? | 778,479,954 |
| Long-term payables (including non-current liabilities due within one year) | 218,789,786 | ? | - | ? | 18,478,869 | ? | (93,246,208) | ? | - | ? | 144,022,447 |
| Other non-current liabilities (including non-current liabilities due within one year) | 2,500,522,066 | ? | - | ? | 630,846,602 | ? | (38,077,776) | ? | - | ? | 3,093,290,892 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 150,943,825,953 | ? | 47,194,037,263 | ? | 6,160,212,701 | ? | (54,801,099,306) | ? | (93,408,478) | ? | 149,403,568,133 |
???
???
61 Supplementary information for the cash flow statement
(1) Supplement to the cash flow statement
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| (a) Reconciliation of net profit / (loss) to cash flows from operating activities: | ? | ? | ? |
| ? | ? | ? | ? |
| Net profit / (loss) | 4,145,273,882 | ? | 369,871,329 |
| Add: Credit losses | 112,125,114 | ? | 18,562,198 |
| Impairment losses | 3,624,262,580 | ? | 2,406,230,634 |
| Depreciation of fixed assets, investment properties and right-of-use assets | 37,154,186,708 | ? | 33,721,207,174 |
| Amortisation of intangible assets | 1,097,857,402 | ? | 955,466,291 |
| Amortisation of long-term deferred expenses | 169,655,830 | ? | 162,353,520 |
| Gains from disposal of fixed assets, intangible assets, and other long-term assets | (96,175,264) | ? | (13,090,386) |
| Losses from scrapping of fixed assets and intangible assets (“-” for gains) | (1,442,898) | ? | 32,715,546 |
| Financial expenses | 1,910,873,352 | ? | 2,567,467,227 |
| Gains from changes in fair value | (522,447,744) | ? | (291,542,233) |
| Investment losses (“-” for gains) | 581,941,421 | ? | (810,709,642) |
| Share-based payments | 125,524,945 | ? | 307,160,605 |
| Decrease in deferred income | (218,434,024) | ? | (393,295,377) |
| Increase in deferred tax assets | (298,011,255) | ? | (26,847,208) |
| (Decrease)/increase in deferred tax liabilities | (404,560,340) | ? | 178,771,023 |
| Increase in inventories | (2,464,527,331) | ? | (1,825,979,018) |
| Decrease/(increase) in operating receivables | (3,667,418,533) | ? | (3,904,919,786) |
| (Decrease)/increase in operating payables | 6,399,187,934 | ? | 4,781,932,585 |
| Safety fund | 89,705,600 | ? | 66,472,402 |
| ? | ? | ? | ? |
| Net cash flows generated from operating activities | 47,737,577,379 | ? | 38,301,826,884 |
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??????
| (b) Change in cash and cash equivalents: | ? | ? | ? |
| ? | ? | ? | ? |
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Cash and cash equivalents at the end of the year | 62,005,252,511 | ? | 52,092,981,748 |
| Less: Cash and cash equivalents at the beginning of the year | 52,092,981,748 | ? | 64,382,037,764 |
| ? | ? | ? | ? |
| Net increase/(decrease) in cash and cash equivalents | 9,912,270,763 | ? | (12,289,056,016) |
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???????
(2) Information on acquisition of subsidiaries during the year
Net proceeds from acquisition of subsidiaries:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Cash or cash equivalents paid during the year for acquiring subsidiaries during the year | - | ? | (150,000,000) |
| Less: Cash and cash equivalents held by acquired subsidiaries | - | ? | 209,293,141 |
| ? | ? | ? | ? |
| Net proceeds from acquisition of subsidiaries | - | ? | 59,293,141 |
?
?
Net payment for acquisition of subsidiaries:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Cash or cash equivalents paid during the year for acquiring subsidiaries during the year | - | ? | (2,083,597,236) |
| Less: Cash and cash equivalents held by acquired subsidiaries | - | ? | 1,918,264,097 |
| ? | ? | ? | ? |
| Net payment for acquisition of subsidiaries | - | ? | (165,333,139) |
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????
(3) Details of cash and cash equivalents
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Cash on hand | 1,528,764 | ? | 802,967 |
| Bank deposits available on demand | 61,918,283,198 | ? | 52,089,093,133 |
| Other monetary funds available on demand | 85,440,549 | ? | 3,085,648 |
| ? | ? | ? | ? |
| Closing balance of cash and cash equivalents | 62,005,252,511 | ? | 52,092,981,748 |
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Note: The cash and cash equivalents disclosed above do not include bank deposits held not
for investment purpose, the interest accrued on bank deposits at the end of the periodand the use of other currency funds subject to restrictions.
(4) Monetary funds other than cash and cash equivalents
| Item | 2024 | ? | 2023 | ? | Rationale |
| ? | ? | ? | ? | ? | ? |
| Bank deposits with fixed interest rate | 10,170,589,885 | ? | 17,740,553,353 | ? | Held for investment purpose |
| Margin deposits | 1,441,761,424 | ? | 1,869,539,464 | ? | Mainly refer to margin deposits pledged for the issuance of bills payable |
| ? | ? | ? | ? | ? | ? |
| Total | 11,612,351,309 | ? | 19,610,092,817 | ? | ? |
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(5) Explanation for presentation of cash flows on a net basis
| Item | Relevant facts and circumstances | ? | Basis for presentation on a net basis | ? | Financial impact |
| ? | ? | ? | ? | ? | ? |
| Restricted monetary funds | Amounts of restricted deposits placed and recovered are presented on a net basis | ? | Cash inflows and outflows for fast-turnover, high-value, short-term items can be presented on a net basis | ? | Nil |
?
?
62 Assets with restrictive ownership titles or right of use
| ? | 2024 | ||||||
| Item | Book value | ? | Carrying amount | ? | Restriction | ? | Details of restriction |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cash at bank and on hand | 1,441,761,424 | ? | 1,441,761,424 | ? | Note V.1 | ? | Note V.1 |
| Bills receivable | 246,112,676 | ? | 246,112,676 | ? | Pledged | ? | Endorsed with resource and pledged for the issuance of bills payable |
| Investment properties | 154,510,137 | ? | 154,510,137 | ? | Mortgaged | ? | Mortgaged as collateral |
| Fixed assets | 237,348,939,293 | ? | 126,896,353,640 | ? | Mortgaged | ? | Mortgaged as collateral |
| Construction in progress | 11,473,130,082 | ? | 11,473,130,082 | ? | Mortgaged | ? | Mortgaged as collateral |
| Intangible assets | 2,264,095,450 | ? | 1,954,974,874 | ? | Mortgaged | ? | Mortgaged as collateral |
| Other non-current assets | 157,708,950 | ? | 157,708,950 | ? | Others | ? | Others |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 253,086,258,012 | ? | 142,324,551,783 | ? | ? | ? | ? |
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???????
| ? | 2023 | ||||||
| Item | Book value | ? | Carrying amount | ? | Restriction | ? | Details of restriction |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Cash at bank and on hand | 1,869,539,464 | ? | 1,869,539,464 | ? | Note V.1 | ? | Note V.1 |
| Bills receivable | 230,354,069 | ? | 230,354,069 | ? | Pledged | ? | Endorsed with resource and pledged for the issuance of bills payable |
| Investment properties | 101,775,150 | ? | 100,605,150 | ? | Mortgaged | ? | Mortgaged as collateral |
| Fixed assets | 237,742,564,332 | ? | 136,319,471,935 | ? | Mortgaged | ? | Mortgaged as collateral |
| Construction in progress | 2,925,304,165 | ? | 2,925,304,165 | ? | Mortgaged | ? | Mortgaged as collateral |
| Intangible assets | 1,806,103,571 | ? | 1,546,929,316 | ? | Mortgaged | ? | Mortgaged as collateral |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 244,675,640,751 | ? | 142,992,204,099 | ? | ? | ? | ? |
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???
VI Research and development expenses
1 Presentation by nature
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Staff costs and daily expenses | 5,625,237,778 | ? | 5,033,127,133 |
| Material and test expenses | 3,339,102,808 | 2,442,996,588 | |
| Depreciation and amortisation | 2,213,563,118 | ? | 2,269,453,425 |
| Others | 2,027,370,403 | ? | 1,617,691,744 |
| ? | ? | ? | ? |
| Total | 13,205,274,107 | ? | 11,363,268,890 |
| ? | ? | ? | ? |
| Including: research and development expenditures that are expensed | 13,123,309,231 | ? | 11,319,503,088 |
| research and development expenditures that are capitalised | 81,964,876 | ? | 43,765,802 |
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???
2 Expenditures on research and development projects which are eligible for capitalisation
| Item | Balance at the beginning of the year | ? | Internal development | ? | Recognised as intangible assets | ? | Balance at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| HC SemiTek Corporation LED and Micro-LED technology development | 166,977,531 | ? | 81,964,876 | ? | (139,619,053) | ? | 109,323,354 |
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VII Change of consolidation scope
Increases in the consolidation scope during the year were new subsidiaries establishedduring the year, and the decreases in the consolidation scope were cancellations ofsubsidiaries during the year.
VIII 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 | ? | Nature of business | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | Chengdu, China | ? | Chengdu, China | ? | Research and development, design, manufacture, and sale of new display devices and components | ? | 100% | ? | - | ? | Business combination involving entities not under common control |
| Hefei BOE Optoelectronics Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investing, researching, manufacturing and promoting TFT-LCD products and accessory products | ? | 100% | ? | - | ? | Business combination involving entities not under common control |
| Beijing BOE Display Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development of TFT-LCD, manufacture and sale of LCD | ? | 97.17% | ? | 2.83% | ? | Founded by investment |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investing, researching, manufacturing and promoting TFT-LCD products and accessory products | ? | 99.97% | ? | 0.03% | ? | Business combination involving entities not under common control |
| Ordos Yuansheng Optoelectronics Co., Ltd. | Ordos, China | ? | Ordos, China | ? | The production and operation of AMOLED and relevant products | ? | 100% | ? | - | ? | Founded by investment |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | Chongqing, China | ? | Chongqing, China | ? | Research, development, manufacture and sales of semiconductor display devices, machine and relevant products, import and export of goods and technical consulting | ? | 100% | ? | - | ? | Business combination involving entities not under common control |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | Fuzhou, China | ? | 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. | ? | 86.08% | ? | - | ? | Business combination involving entities not under common control |
| Beijing BOE Vision-electronic Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Investment platform, sales of LCD | ? | 100% | ? | - | ? | Founded by investment |
| Beijing BOE Vacuum Electronics Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Manufacture and sales of vacuum electronic products | ? | 57.89% | ? | - | ? | Founded by investment |
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?
| ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Nature of business | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Yinghe Century Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Management of engineering projects; property management services; lease of commercial buildings; lease of office space; enterprise management consulting | ? | 100% | ? | - | ? | Founded by investment |
| BOE Optical Science and technology Co., Ltd. | Suzhou, China | ? | Suzhou, China | ? | R&D, production and sales of LCD, back light for display and related components | ? | 95.17% | ? | - | ? | Founded by investment |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development, manufacture and sale of liquid display for mobile termination | ? | 75% | ? | - | ? | Founded by investment |
| BOE (Hebei) Mobile Technology Co., Ltd. | Langfang, China | ? | Langfang, China | ? | Manufacture and sale of mobile flat screen display technical products and related services | ? | 100% | ? | - | ? | Founded by investment |
| Beijing BOE Energy Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Provide comprehensive zero carbon comprehensive energy services, covering multiple dimensions such as comprehensive energy services, comprehensive energy utilization and zero carbon services | ? | 68.40% | ? | - | ? | Founded by investment |
| Beijing BOE Life Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Technology promotion services, property management, sales of electronic products | ? | 100% | ? | - | ? | Founded by investment |
| Beijing Zhongxiangying Technologies Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Technology promotion services, property management, sales of electronic products | ? | 91.10% | ? | - | ? | Founded by investment |
| BOE Semi-conductor Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Glass thinning processing and metal parts processing | ? | 84% | ? | - | ? | Founded by investment |
| BOE Optoelectronics Holding Co.,Ltd | Hong Kong, China | ? | British Virgin Islands | ? | Investment holding | ? | 100% | ? | - | ? | Founded by investment |
| BOE (Korea) Co.,Ltd. | Korea | ? | Korea | ? | Wholesale and retail trade | ? | 100% | ? | - | ? | Founded by investment |
| BOE Healthcare Investment & Management Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Investment management and project investment | ? | 100% | ? | - | ? | Business combination involving entities not under common control |
| Beijing Matsushita Colour Innovation Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Property management, parking services, lease of commercial buildings, etc | ? | 88.80% | ? | - | ? | Business combination involving entities not under common control |
| Hefei BOE Display Technology Co., Ltd. (“Hefei Display Technology”) | Hefei, China | ? | Hefei, China | ? | Investment, R&D and production of products related to TFT-LCD and the supporting facility | ? | 36.67% | ? | - | ? | Business combination involving entities not under common control |
| BOE Wisdom IOT Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development, transfer, consulting and service of technology | ? | 100% | ? | - | ? | Founded by investment |
| Hefei BOE Zhuoyin Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | Investment, construction, R&D, production and sales of products related to OLED display device and auxiliary products | ? | 75% | ? | - | ? | Founded by investment |
| Beijing BOE Land Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Development, construction, property management and supporting service of industrial plants and supporting facilities; information consulting of real estate; lease of commercial facilities, commercial attendants and the supporting service facilities; motor vehicles public parking service | ? | 70% | ? | - | ? | Founded by investment |
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?
| ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Nature of business | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Shiyan Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | General items: technical service, technical development, technical consultation, technical exchange, technology transfer and technology promotion; Computer software, hardware and peripheral equipment manufacturing; Wholesale of computer software, hardware and auxiliary equipment; Retail of computer software, hardware and auxiliary equipment; Manufacturing of electronic components; Optoelectronic device manufacturing; Display device manufacturing; Mobile terminal equipment manufacturing; Virtual reality equipment manufacturing; TV manufacturing; Internet of Things equipment manufacturing; Sales of electronic products; Display device sales; Sales of mobile terminal equipment; Sales of communication equipment; Sales of IoT equipment; Computer and communication equipment leasing; Integrated circuit manufacturing; Integrated circuit design; IC sales; Integrated circuit chip and product manufacturing; Software development; Software sales; Import and export of goods; Technology import and export; Sales of Class I medical devices; Class I medical device production; Class I medical device leasing; Sales of Class II medical devices; Class II medical device leasing. | ? | 80% | ? | - | ? | Founded by investment |
| Beijing BOE Marketing Co., Ltd. | Beijing, China | ? | 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 | ? | 100% | ? | - | ? | Founded by investment |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | Mianyang, China | ? | 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. | ? | 83.46% | ? | - | ? | Business combinations involving entities not under common control |
| Yunnan Invensight Optoelectronics Technology Co., Ltd. | Kunming, China | ? | 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 | ? | 79.10% | ? | - | ? | Founded by investment |
| Beijing BOE Sensing Technology Co., Ltd. | Beijing, China | ? | 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 | ? | 100% | ? | - | ? | Founded by investment |
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?
| ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Nature of business | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Wuhan BOE Optoelectronics Technology Co., Ltd. (“Wuhan BOE”) | Wuhan, China | ? | Wuhan, China | ? | Investment and construction, research and development, production, sales, technology development, transfer, consult and services of thin-film transistor LCD devices and related products and supporting products | ? | 47.14% | ? | - | ? | Business combinations involving entities not under common control |
| Chongqing BOE Display Technology Co., Ltd. (“Chongqing BOE Display”) | Chongqing, China | ? | Chongqing, China | ? | R&D, manufacture and sales of semiconductor display devices, whole widget and relevant products, import and export of goods and technical consulting | ? | 38.46% | ? | - | ? | Business combinations involving entities not under common control |
| Fuzhou BOE Display Technology Co., Ltd. (“Fuzhou BOE Display”) | Fuzhou, China | ? | 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 | ? | 43.46% | ? | - | ? | Business combinations involving entities not under common control |
| Hefei BOE Xingyu Technology Co., Ltd. | Hefei, China | ? | Hefei, China | ? | R&D, production and sales of Mini LED backlight components and Mini LED display module components | ? | 65.00% | ? | - | ? | Founded by investment |
| Dongfang Chengqi (Beijing) Business Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Intelligent administrative service solutions integrating property, business travel, procurement and consumption | ? | 100% | ? | - | ? | Founded by investment |
| BOE Smart Technology Co., Ltd. Technology (“Smart Technology”) | Beijing, China | ? | 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 | ? | 100% | ? | - | ? | Founded by investment |
| BOE Innovation Investment Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Project investment and investment management | ? | 100% | ? | - | ? | Founded by investment |
| Nanjing BOE Display Technology Co., Ltd. | Nanjing, China | ? | Nanjing, China | ? | R&D, production and sales of TFT-LCD panels, color filters and LCD machine modules; Providing services related to products and businesses, and other business activities related to the above;Self support and agency of import and export business of various commodities and technologies. | ? | 80.83% | ? | - | ? | Business combinations involving entities not under common control |
| Chengdu BOE Display Sci-tech Co., Ltd. | Chengdu, China | ? | Chengdu, China | ? | Mainly engaged in research and development, production, sales and technical services of TFT-LCD panels and modules, LCD displays, televisions, instruments, mechanical equipment and accessories; Engaged in the import and export of goods and technology. | 35.03% | ? | - | ? | Business combinations involving entities not under common control | |
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?
| ? | ? | ? | ? | ? | ? | ? | Shareholding (or similar equity interest) percentage) | ? | ? | ||
| Name of the subsidiary | Principal place of business | ? | Registered place | ? | Nature of business | ? | Direct | ? | Indirect | ? | Acquisition method |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| BOE Mled Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | Mainly engaged in technology development, technology consultation, technology transfer and technical services; Software development; Basic software services; Application software services; Computer system services; Internet data services (data centers in Internet data services, except cloud computing data centers with PUE values above 1.4); Information processing and storage support services; General construction contracting, professional contracting and labor subcontracting; Equipment installation, maintenance and leases; Literary and artistic creation; Computer animation design; Product design; business management; Enterprise management consulting; Sales of computers, software and auxiliary equipment, electronic products. | ? | 100% | ? | - | ? | Founded by investment |
| Beijing BOE Solar Energy Technology Co., Ltd. | Beijing, China | ? | Beijing, China | ? | technical services, technology development, technology consulting, technical exchange, technology transfer, technology promotion; manufacture of photovoltaic equipment and components; sales of photovoltaic equipment and components. | ? | 100% | ? | - | ? | Founded by investment |
| Chengdu BOE Display Techlogy Co., Ltd. (Chengdu Display Technology) | Chengdu, China | ? | Chengdu, China | ? | 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. | ? | 50.25% | ? | - | ? | Founded by investment |
| Beijing BOE Chuangyuan Technology Co., Ltd. (“Chuangyuan Technology”) | Beijing, China | ? | Beijing, China | ? | Manufacturing of display devices; sale of display devices; manufacturing of electronic components; wholesale 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. | ? | 79.31% | ? | - | ? | Founded by investment |
| Mianyang BOE Electronic Technology Co., Ltd. (“Mianyang Electronic Technology”) | Mianyang, China | ? | Mianyang, China | ? | Manufacturing of display devices; display device sales; manufacturing of electronic components; technical service, technical development, technical consultation, technical exchange, technology transfer and technology promotion; machinery and equipment leasing; intelligent control system integration; information system integration services; industrial control computer and system manufacturing; Internet of Things technical services; data processing service; sales of electronic products; sales of digital cultural creative technology and equipment; sales of semiconductor lighting devices; AI industry application system integration services; cloud computing equipment technology services; industrial Internet data service; Internet data service; semiconductor lighting device manufacturing; sales of new energy prime mover equipment; technology import and export. | ? | 100% | ? | - | ? | Founded by investment |
| BOE HC SemiTek Corporation | Wuhan, China | ? | Wuhan, China | ? | Design, manufacturing, sales and business leasing of semiconductor materials and devices, electronic materials and devices, semiconductor lighting equipment, sapphire crystal growth and sapphire deep processing products; research and development, processing and manufacturing of integrated circuits and sensors, and providing technical services; import and export of self owned products and raw materials. | ? | 22.92% | ? | - | ? | Business combinations involving entities not under common control |
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As the Company has signed agreements of concerted action with other shareholders of HefeiDisplay Technology, Wuhan BOE, Chongqing BOE Display, Fuzhou BOE Display, ChengduDisplay Sci-tech and HC SemiTek. The Company has 100% of the voting rights of HefeiDisplay Technology, Wuhan BOE, Chongqing BOE Display and Fuzhou BOE Display, and
96.75% of the voting rights of Chengdu Display Sci-tech. The voting right of HC SemiTek is
26.43%.
(2) Material non-wholly owned subsidiaries
| Name of the subsidiary | Proportion of ownership interest held by non-controlling interests | ? | Loss allocated to non-controlling interests during the year | ? | Dividend declared to non-controlling shareholders during the year | ? | Balance of non-controlling interests at the end of the year |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Subsidiary A | 61.54% | ? | (1,729,392,519) | ? | - | ? | 13,048,390,413 |
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(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:
| ? | Subsidiary A | ||
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Current assets | 10,383,778,491 | ? | 8,098,980,132 |
| Non-current assets | 37,068,011,098 | ? | 37,527,686,707 |
| ? | ? | ? | ? |
| Total assets | 47,451,789,589 | ? | 45,626,666,839 |
| ? | ? | ? | ? |
| Current liabilities | 9,932,275,658 | ? | 8,612,279,639 |
| Non-current liabilities | 16,316,409,587 | ? | 13,005,587,192 |
| ? | ? | ? | ? |
| Total liabilities | 26,248,685,245 | ? | 21,617,866,831 |
| ? | ? | ? | ? |
| Operating income | 10,105,118,112 | ? | 4,226,393,760 |
| Net (loss)/profit | (2,810,192,589) | ? | (1,288,455,305) |
| Total comprehensive income | (2,810,192,589) | ? | (1,288,455,305) |
| Cash inflows/(outflows) in operating activities | 307,572,244 | ? | 171,287,026 |
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 |
| ? | ? | ? | ? |
| Chengdu Display Technology | 52.63% | ? | 50.25% |
| Chuangyuan Technology | 60.21% | ? | 79.31% |
| HC SemiTek | 23.01% | ? | 22.92% |
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(2) Impact of transactions on 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 non-proportional capital increase of shareholders and theacquisition of non-controlling interests, which results in the decrease of capital reserves byRMB61,752,693.
3 Interests in associates
Please see Note V.11(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.
IX Risks related to financial instruments
The Group has exposure to the following main risks from its use of financial instruments inthe normal course of 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 achieve an appropriate balance between the risks and benefits from itsuse of financial instruments and to mitigate the adverse effects that the risks of financialinstruments have on the Group’s financial performance. Based on these objectives, theGroup’s risk management policies have been established to identify and analyse the risksfaced by the Group, to set appropriate risk limits and controls, and to monitor risks. 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 to determine whether the internal control system isimplemented in accordance with the Group’s risk management policies.
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, theexternal ratings of the customers and the record of previous transactions. Receivables aredue within 7 to 180 days from the date of billing. Debtors with balances that are past due arerequested to settle all outstanding balances before any further credit is granted. Normally, theGroup does not obtain collateral from customers.
The Group’s exposure to credit risk is influenced mainly by the individual characteristics ofeach customer, therefore significant concentrations of credit risk arise primarily when theGroup has significant exposure to individual customers. As at the balance sheet date, 45%(2023: 36%) of total accounts receivable and contract assets were due from the Group’s fivelargest customers. In addition, the debtors of the Group that are neither past due norimpaired mainly relate to a wide range of customers for whom there was no recent history ofarrearage.
The maximum exposure to credit risk is represented by the carrying amount of each financialasset in the balance sheet. As mentioned in Note XIV, as at 31 December 2024, the Groupdid not provide any other guarantees which would expose the Group to credit 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:
| ? | 2024 Contractual undiscounted cash flow | ? | ? | ||||||||
| ? | Within 1 year or on demand (inclusive) | ? | Over 1 year but within 3 years (inclusive) | ? | Over 3 years but within 5 years (inclusive) | ? | Over 5 years | ? | Total | ? | Carrying amount at balance sheet date |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term loans | 1,583,159,882 | ? | - | ? | - | ? | - | ? | 1,583,159,882 | ? | 1,563,317,166 |
| Bills payable | 1,399,557,969 | ? | - | ? | - | ? | - | ? | 1,399,557,969 | ? | 1,399,557,969 |
| Accounts payable | 36,713,498,406 | ? | - | ? | - | ? | - | ? | 36,713,498,406 | ? | 36,713,498,406 |
| Other payables | 20,827,962,570 | ? | - | ? | - | ? | - | ? | 20,827,962,570 | ? | 20,827,962,570 |
| Non-current liabilities due within one year | 44,178,634,605 | ? | - | ? | - | ? | - | ? | 44,178,634,605 | ? | 43,506,539,611 |
| Long-term loans | 3,334,950,266 | ? | 19,791,399,478 | ? | 19,416,755,363 | ? | 75,019,608,770 | ? | 117,562,713,877 | ? | 100,932,391,740 |
| Lease liabilities | - | ? | 299,878,906 | ? | 178,097,898 | ? | 281,620,430 | ? | 759,597,234 | ? | 631,418,986 |
| Long-term payables | - | ? | 44,328,318 | ? | 36,291,945 | ? | 52,522,833 | ? | 133,143,096 | ? | 121,077,871 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 108,037,763,698 | ? | 20,135,606,702 | ? | 19,631,145,206 | ? | 75,353,752,033 | ? | 223,158,267,639 | ? | 205,695,764,319 |
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| ? | 2023 Contractual undiscounted cash flow | ? | ? | ||||||||
| ? | Within 1 year or on demand (inclusive) | ? | Over 1 year but within 3 years (inclusive) | ? | Over 3 years but within 5 years (inclusive) | ? | Over 5 years | ? | Total | ? | Carrying amount at balance sheet date |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Short-term loans | 1,773,280,214 | ? | - | ? | - | ? | - | ? | 1,773,280,214 | ? | 1,746,184,534 |
| Bills payable | 919,313,033 | ? | - | ? | - | ? | - | ? | 919,313,033 | ? | 919,313,033 |
| Accounts payable | 32,977,603,351 | ? | - | ? | - | ? | - | ? | 32,977,603,351 | ? | 32,977,603,351 |
| Other payables | 19,487,760,965 | ? | - | ? | - | ? | - | ? | 19,487,760,965 | ? | 19,487,760,965 |
| Non-current liabilities due within one year | 24,831,720,125 | ? | - | ? | - | ? | - | ? | 24,831,720,125 | ? | 24,437,027,442 |
| Long-term loans | 4,248,101,826 | ? | 18,954,443,798 | ? | 31,730,890,357 | ? | 87,859,873,238 | ? | 142,793,309,219 | ? | 121,546,339,022 |
| Lease liabilities | - | ? | 253,329,174 | ? | 164,561,752 | ? | 240,102,072 | ? | 657,992,998 | ? | 542,141,496 |
| Long-term payables | - | ? | 76,675,721 | ? | 43,243,078 | ? | 74,598,363 | ? | 194,517,162 | ? | 171,611,393 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 84,237,779,514 | ? | 19,284,448,693 | ? | 31,938,695,187 | ? | 88,174,573,673 | ? | 223,635,497,067 | ? | 201,827,981,236 |
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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:
| ? | 2024 | ? | 2023 | ||||
| Item | Effective interest rate | ? | Amount | ? | Effective interest rate | ? | Amount |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Financial assets | ? | ? | ? | ? | ? | ? | ? |
| - Cash at bank and on hand | 0.1% ~ 5.35% | ? | 22,379,239,813 | ? | 1.00% ~ 6.25% | ? | 34,032,083,693 |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? |
| - Short-term loans | 2.15% ~ 3.75% | ? | (778,784,075) | ? | 0.38% ~ 5.90% | ? | (1,427,826,333) |
| - Other payables | 0% ~ 2.18% | ? | (3,000,000,000) | ? | 0% ~ 2.18% | ? | (3,000,000,000) |
| - Non-current liabilities due within one year | 1.20% ~ 6.37% | ? | (6,428,602,243) | ? | 0% ~ 6.51% | ? | (11,321,474,654) |
| - Long-term loans | 1.20% ~ 6.37% | ? | (27,818,498,512) | ? | 1.20% ~ 6.37% | ? | (39,919,524,039) |
| - Lease liabilities | 3.10% ~ 4.75% | ? | (631,418,986) | ? | 3.65% ~ 4.75% | ? | (542,141,496) |
| - Long-term payables | 3.60% | ? | (121,077,871) | ? | 4.20% ~ 6.51% | ? | (171,611,393) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | (16,399,141,874) | ? | ? | ? | (22,350,494,222) |
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Variable rate instruments:
| ? | 2024 | ? | 2023 | ||||
| Item | Effective interest rate | ? | Amount | ? | Effective interest rate | ? | Amount |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Financial assets | ? | ? | ? | ? | ? | ? | ? |
| - Cash at bank and on hand | 0.0001% ~ 5.33% | ? | 51,232,751,535 | ? | 0.0001% ~ 6.25% | ? | 37,628,227,990 |
| Financial liabilities | ? | ? | ? | ? | ? | ? | ? |
| - Short-term loans | 2.60% ~ 3.20% | ? | (785,399,999) | ? | 3.10% ~ 3.60% | ? | (316,400,000) |
| - Non-current liabilities due within one year | 0.75% ~ 5.32% | ? | (36,785,444,254) | ? | 1.00% ~ 6.33% | ? | (12,588,822,776) |
| - Long-term loans | 1.55% ~ 5.32% | ? | (73,108,053,936) | ? | 1.00% ~ 6.33% | ? | (81,623,331,304) |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | ? | ? | (59,446,146,654) | ? | ? | ? | (56,900,326,090) |
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(b) Sensitivity analysis
As at 31 December 2024, it is estimated that a general increase/decrease of 100 basis pointsin interest rates of variable rate instrument, with all other variables held constant, woulddecrease/increase the Group’s net profit and shareholders’ equity by RMB502,550,000(2023: RMB481,870,000).
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 net profitand equity of such a change in interest rates is estimated as an annualised impact oninterest expense or income. The analysis is performed on the same basis for the previousyear.
4 Foreign currency risk
In respect of cash at bank and on hand, accounts receivable and payable, and short-termloans denominated in foreign currencies other than the functional currency, the Groupensures that its net exposure is kept to an acceptable level by buying or selling foreigncurrencies at spot rates when necessary to address short-term imbalances.
(a) The Group’s exposure as at 31 December to currency risk arising from recognised foreign
currency assets or liabilities is mainly denominated in US dollar. The amount of the USDexposure is net assets exposure USD2,564,028,518 (2023: net liabilities exposure:
USD191,267,567), translated into RMB18,431,262,599 (2023: RMB1,354,690,797), usingthe spot rate at the balance sheet date. Differences resulting from the translation of thefinancial statements denominated in foreign currency are excluded.
(b) Assuming all other risk variables remained constant, a 5% strengthening/weakening of the
Renminbi against the US dollar at 31 December would have decreased/increased both theGroup’s shareholders’ equity and net profit by the amount RMB792,219,870 (2023:
decreased/increased RMB105,886,060).
The sensitivity analysis above assumes that the change in foreign exchange rates had beenapplied to re-measure those financial instruments held by the Group which expose the Groupto foreign currency risk at the balance sheet date. The analysis excludes differences thatwould result from the translation of foreign currency financial statements. The analysis isperformed on the same basis for the previous year.
5 Other price risks
Other price risks include stock price risk and commodity price risk.
X Fair value disclosure
The following table presents the fair value information and fair value hierarchy, at the end ofthe current reporting period, of the Group’s assets and liabilities which are measured at fairvalue at each balance sheet date on a recurring or non-recurring basis. The level at whichfair value measurement is categorised is determined by the lowest level input in the fair valuehierarchy that is significant to the entire fair value measurement. The levels are defined asfollows:
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 2024 | ||||||
| Assets | Note | Level 1 Fair value measurement | ? | Level 2 fair value measurements | ? | Level 3 Fair value measurement | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Recurring fair value measurements | ? | ? | ? | ? | ? | ? | ? | ? |
| - Financial assets held for trading | V.2 | 316,768,188 | ? | 100,126,575 | ? | 2,699,541,200 | ? | 3,116,435,963 |
| Including: Structured deposit and wealth management products | ? | - | ? | 100,126,575 | ? | 2,679,701,925 | ? | 2,779,828,500 |
| Investment in equity instruments | ? | 316,768,188 | ? | - | ? | 19,839,275 | ? | 336,607,463 |
| - Receivables under financing | V.5 | - | ? | - | ? | 472,537,400 | ? | 472,537,400 |
| - Investments in other equity instruments | V.12 | 257,558,368 | ? | - | ? | 183,813,447 | ? | 441,371,815 |
| - Other non-current financial assets | V.13 | - | ? | - | ? | 2,735,680,042 | ? | 2,735,680,042 |
| Including: Investment in equity instruments | ? | - | ? | - | ? | 2,735,680,042 | ? | 2,735,680,042 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total assets measured at fair value on a recurring basis | ? | 574,326,556 | ? | 100,126,575 | ? | 6,091,572,089 | ? | 6,766,025,220 |
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| ? | ? | 31 December 2023 | ||||||
| Assets | Note | Level 1 Fair value measurement | ? | Level 2 fair value measurements | ? | Level 3 Fair value measurement | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Recurring fair value measurements | ? | ? | ? | ? | ? | ? | ? | ? |
| - Financial assets held for trading | V.2 | 261,201,215 | ? | - | ? | 7,494,763,280 | ? | 7,755,964,495 |
| Including: Structured deposit and wealth management products | ? | - | ? | - | ? | 7,476,126,776 | ? | 7,476,126,776 |
| Investment in equity instruments | ? | 261,201,215 | ? | - | ? | 18,636,504 | ? | 279,837,719 |
| - Receivables under financing | V.5 | - | ? | - | ? | 408,534,622 | ? | 408,534,622 |
| - Investments in other equity instruments | V.12 | 169,355,368 | ? | - | ? | 325,274,209 | ? | 494,629,577 |
| - Other non-current financial assets | V.13 | - | ? | - | ? | 2,253,778,325 | ? | 2,253,778,325 |
| Including: Investment in equity instruments | ? | - | ? | - | ? | 2,253,778,325 | ? | 2,253,778,325 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total assets measured at fair value on a recurring basis | ? | 430,556,583 | ? | - | ? | 10,482,350,436 | ? | 10,912,907,019 |
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2 Basis for 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 2
The fair value of interest rate swaps included in derivative financial assets is the estimatedamount that would be received or paid to transfer the swap at the end of the reporting period,taking into account current interest rates and the current creditworthiness of the swapcounterparties.
4 Valuation techniques used and the qualitative and quantitative information of key parameters
for recurring and non-recurring fair value measurements categorised within Level 3
For wealth management products measured at fair value, the fair value is determined basedon the discounted cash flow method.
Receivables under financing are bills receivable with short remaining maturities, for which thefair value determined is equal to the original carrying amount.
Investments in equity instruments are unlisted equity investments held by the Group,including:
(i) For those who raised a new round of financing in 2024, 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.
5 During 2024, 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 fairvalues.
XI 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. | Area A, No.6, West 6th Street, Sanlitun, Chaoyang District, Beijing | ? | Operation and management of state-owned assets within authorization, etc. | ? | RMB 3,139,210,000 | ? | 0.73% | ? | 12.37% | ? | Yes |
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2 Information about the subsidiaries of the Company
For information about the subsidiaries of the Company, refer to Note VIII.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:
4 Information about other related parties
| Name of other related parties | Related-party relationship |
| ? | ? |
| Beijing Electronics Holding Co., Ltd. and its subsidiaries | Controlling shareholder of the Company and under the same control of the ultimate holding company |
| Shanghai National Engineering Research Center of Digital Television Co., Ltd. | Associate of enterprise that is under the same control of the ultimate holding company |
| Shanghai New Vision Microelectronics Co., Ltd. and its subsidiaries | Associate of enterprise that is under the same control of the ultimate holding company |
| Beidian New Energy Technology (Jiangsu) Co., Ltd. | Under the same control of the ultimate holding company for the last 12 months |
| Beijing Electronics Holding & SK Technology Co., Ltd. | Under the same control of the ultimate holding company for the last 12 months |
| Baic Electronics SK (Jiangsu) Technology Co., Ltd. | Under the same control of the ultimate holding company for the last 12 months |
| Beijing DeHeng Law Offices | Others |
| Hua Xia Bank Co., Ltd. | Others |
| China Minsheng Banking Corporation Limited | Others |
Note: Hua Xia Bank Co., Ltd. Became a related party of the Company on 26 July 2024. China
Minsheng Banking Corporation Limited was no longer a related party of the Companyon 31 October 2024.
5 Transactions with related parties
The transactions below with related parties were conducted under normal commercial termsor relevant agreements.
(1) Purchase of goods, equipment and receiving of services (excluding remuneration of key
management personnel)
The Group
| Nature of transaction | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Purchase of goods | 1,036,110,867 | ? | 663,371,654 |
| Procurement of equipment | 342,397,862 | ? | 236,814,153 |
| Receiving services | 22,275,482 | ? | 14,986,020 |
| Payment of interest expenses | 29,228,902 | ? | 33,637,490 |
| ? | ? | ? | ? |
| Total | 1,430,013,113 | ? | 948,809,317 |
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The Company
| Nature of transaction | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Purchase of goods | 80,548,372 | ? | 34,372,208 |
| Receiving services | 34,694,760 | ? | 127,843,351 |
| Procurement of equipment | 115,537,859 | ? | 368,000 |
| Payment of interest expenses | 24,190,372 | ? | 30,926,480 |
| ? | ? | ? | ? |
| Total | 254,971,363 | ? | 193,510,039 |
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(2) Sale of goods/rendering of services
The Group
| Nature of transaction | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Sale of goods | 3,276,078,507 | ? | 3,929,802,831 |
| Rendering of services | 21,374,733 | ? | 23,418,868 |
| Interest income received | 38,696,473 | ? | 28,454,504 |
| ? | ? | ? | ? |
| Total | 3,336,149,713 | ? | 3,981,676,203 |
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The Company
| Nature of transaction | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Sale of goods | 8,144 | ? | 582,164 |
| Rendering of services | 5,449,585,756 | ? | 4,610,851,622 |
| Interest income received | 6,796,437 | ? | 15,702,137 |
| ? | ? | ? | ? |
| Total | 5,456,390,337 | ? | 4,627,135,923 |
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(3) Leases
(a) As the lessor
The Group
| Type of assets leased | Lease income recognised in 2024 | ? | Lease income recognised in 2023 |
| ? | ? | ? | ? |
| Investment properties | 12,234,810 | ? | 9,823,412 |
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The Company
| Type of assets leased | Lease income recognised in 2024 | ? | Lease income recognised in 2023 |
| ? | ? | ? | ? |
| Investment properties | 67,144,944 | ? | 65,795,509 |
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(b) As the lessee
The Group
| ? | ? | ? | Rental expenses for practical expedient of short-term leases and the leases of low-value assets | ? | Variable lease payments not included in the measurement of the lease liability | ? | Rental payments | ? | Assumed interest expenses from lease liabilities | ? | Increased right-of-use assets | ||||||||||
| Name of lessor | Type of assets leased | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Electric Control Subsidiary | Fixed assets | ? | 1,156,657 | ? | - | ? | - | ? | - | ? | 1,625,411 | ? | 2,801,931 | ? | 9,049 | ? | 124,586 | ? | - | ? | - |
| Associated enterprises of the Group | Fixed assets | ? | 341,135 | ? | 328,378 | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | - |
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The Company
| ? | ? | ? | Rental expenses for practical expedient of short-term leases and the leases of low-value assets | ? | Variable lease payments not included in the measurement of the lease liability | ? | Rental payments | ? | Assumed interest expenses from lease liabilities | ? | Increased right-of-use assets | ||||||||||
| Name of lessor | Type of assets leased | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 | ? | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Subsidiaries of the Group | Fixed assets | ? | 1,011,700 | ? | - | ? | - | ? | - | ? | 43,459,032 | ? | 42,971,406 | ? | 976,744 | ? | 4,093,830 | ? | - | ? | - |
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(4) Funding from related parties
The Company
| Name of related party | Amount of funding | ? | Inception date | Maturity date | |
| ? | ? | ? | ? | ||
| Funds received | 89,498,000,000 | 31 December 2023 to 20 November 2024 | Due 1-3 years | ||
| Funds provided | 30,180,000,000 | 19 February 2020 to 31 December 2024 | Right to request return at any time |
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(5) Remuneration of key management personnel
The Group and the Company
| Item | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Remuneration of key management personnel | RMB62,881,000 | ? | RMB51,002,000 |
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The remuneration of key management personnel above does not include the one withrespect to share-based payments scheme.
6 Unsettled items, including receivables from and payables to related parties
Receivables from related parties
The Group
| ? | ? | 2024 | ? | 2023 | ||||
| Item | Note | Book value | ? | Provision for bad and doubtful debts | ? | Book value | ? | Provision for bad and doubtful debts |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash at bank and on hand | (1) | 612,658,442 | ? | - | ? | 1,147,791,923 | ? | - |
| Accounts receivable | ? | 765,108,795 | ? | 5,276,893 | ? | 848,755,589 | ? | 4,883,714 |
| Prepayments | ? | 6,032,969 | ? | - | ? | 10,054,763 | ? | - |
| Other receivables | ? | 1,521,951 | ? | - | ? | 787,519 | ? | - |
| Contract assets | ? | 439,180 | ? | - | ? | 6,977,790 | ? | - |
| Other non-current assets | ? | 55,227,648 | ? | - | ? | 16,934,571 | ? | - |
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The Company
| ? | ? | 2024 | ? | 2023 | ||||
| Item | Note | Book value | ? | Provision for bad and doubtful debts | ? | Book value | ? | Provision for bad and doubtful debts |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Cash at bank and on hand | (1) | 11,190,339 | ? | - | ? | 511,657 | ? | - |
| Accounts receivable | ? | 3,556,844,804 | ? | - | ? | 4,874,309,921 | ? | 4,315,658 |
| Prepayments | ? | 535,316 | ? | - | ? | - | ? | - |
| Other receivables | ? | 31,804,306,639 | ? | 91,589 | ? | 28,179,338,207 | ? | 12,280,686 |
| Other non-current assets | ? | 320,000,000 | ? | - | ? | 1,740,000,000 | ? | - |
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Payables to related parties
The Group
| Item | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| Accounts payable | ? | 314,617,966 | ? | 114,282,939 |
| Advance payments received | ? | 202,505 | ? | 103,733 |
| Contract liabilities | ? | 15,549,505 | ? | 24,068,821 |
| Other payables | ? | 254,993,110 | ? | 202,371,165 |
| Non-current liabilities due within one year | (2) | 6,358,950 | ? | 6,000,000 |
| Short-term loans | (2) | 50,043,389 | ? | - |
| Long-term loans | (2) | 98,608,350 | ? | 1,107,750,000 |
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???????
The Company
| Item | Note | 2024 | ? | 2023 |
| ? | ? | ? | ? | ? |
| Accounts payable | ? | 171,389,697 | ? | 89,999,263 |
| Advance payments received | ? | 110,192 | ? | 798,119 |
| Contract liabilities | ? | 169,811 | ? | - |
| Other payables | ? | 3,087,450,524 | ? | 2,791,489,305 |
| Long-term loans | (2) | - | ? | 1,042,750,000 |
| Other non-current liabilities | ? | 89,520,793,681 | ? | 79,800,793,681 |
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(1) The Group's and the Company's cash at bank were deposits in Hua Xia Bank Co., Ltd.(2023:
China Minsheng Banking Corp.,Ltd.)
(2) The Group's and the Company's non-current liabilities, short-term loans and long-term loans
due within one year are loans from Hua Xia Bank Co., Ltd. .(2023: China Minsheng BankingCorp.,Ltd.)
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:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Procurement of equipment | 237,948,651 | ? | 65,703,454 |
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XII Share-based payments
1 Equity instruments
| ? | Granted during the year | ? | Exercised during the year | ? | Unlocked during the year | ? | Forfeited during the year | ||||||||
| Type of grantees | Quantity | ? | Amount | ? | Quantity | ? | Amount | ? | Quantity | ? | Amount | ? | Quantity | ? | Amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Senior management appointed by the Board of Directors | - | ? | - | ? | - | ? | - | ? | 3,944,160 | ? | 10,570,349 | ? | 209,220 | ? | 560,710 |
| Technical experts, middle management and above level | - | ? | - | ? | - | ? | - | ? | 91,915,315 | ? | 246,333,044 | ? | 7,303,772 | ? | 19,574,109 |
| Manager, senior technical cadre | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | 197,248,486 | ? | 378,579,815 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | - | ? | - | ? | - | ? | - | ? | 95,859,475 | ? | 256,903,393 | ? | 204,761,478 | ? | 398,714,634 |
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???
Share options or other equity instruments outstanding at the end of the year
| ? | Share options outstanding at the end of the year | ? | Other equity instruments outstanding at the end of the year | ||||
| Type of grantees | Range of exercise prices | ? | Remaining contractual life | ? | Range of exercise prices | ? | Remaining contractual life |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Manager, senior technical cadre | RMB5.029 - 5.529 /share | ? | 1 - 2 years | ? | / | ? | / |
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???
2 Equity-settled share-based payments
On 17 November 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 second 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.
The costs of equity-settled share-based payments recognised in the consolidatedfinancial statements for the year were RMB136,728,103, and the accumulated amountof equity-settled share-based payments recognised in the capital reserve amounted toRMB1,705,315,749. In the Company’s financial statements, the Company recognisedits long-term equity investment of RMB103,864,964 in its subsidiary at the fair value ofthe equity instruments at the grant date, and recognised expenses arising from share-based payments of RMB32,863,139, as well as recognised in the capital reserve ofRMB 136,728,103.
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.29(1) for the repurchased obligation setout in other payables.
(1) Method for determining the fair value of equity instruments at the grant date
Share options:
The fair value of equity instruments at the grant date is determined based on the assessedfair value of the exercisable share options at each grant date (RMB 1.68/share, RMB
1.93/share and RMB 2.09/share, respectively); the fair value of equity instruments at thereserved grant date is determined based on assessed fair value of the exercisable shareoptions at each reserved grant B (RMB 1.70/share, RMB 2.02/share and RMB 2.17/share,respectively).
Restricted shares:
The fair value of equity instruments at the grant date is determined based on the differencebetween the fair value of shares at the grant date and the subscription price at RMB
2.68/share.
(2) Basis for determining the number of equity instruments expected to vest
At each balance sheet date during the vesting period, the best estimation is made accordingto the latest information, such as the number of employees who are granted options and thecompletion of performance indicators, and the number of equity instruments expected to vestis revised accordingly. On the vesting date, the estimated number is equal to the number ofequity instruments that are ultimately vested.
XIII. Capital management
The Group’s primary objective when managing capital is 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 risks and by securing access tofinancing 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. In this regard, factors for the Group’s considerationinclude: its future funding requirements, capital efficiency, actual and expected profitability,expected cash flows, and expected capital expenditure. Adjustments are made to the capitalstructure in light of changes in economic conditions affecting the Group.
The Group’s capital structure is monitored on the basis of an adjusted net debt-to-capitalratio (total liabilities divided by total assets). The capital management strategies exerted bythe Group remained unchanged from 2023. 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 2024 and 31 December 2023, the Group’s asset-liability ratios are asfollows:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Asset-liability ratio | 52.43% | ? | 52.81% |
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Neither the Company nor any of its subsidiaries are subject to externally imposed capitalrequirements.
XIV. Commitments and contingencies
1 Significant commitments
(1) Capital commitments
| The Group | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Contracts entered into but not performed or partially performed | 28,280,123,927 | ? | 15,399,501,743 |
| Contracts authorised but not entered into | 85,050,646,514 | ? | 123,338,068,701 |
| ? | ? | ? | ? |
| Total | 113,330,770,441 | ? | 138,737,570,444 |
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The Group’s contracts authorised but not entered into mainly included fixed assets andproject equipment planned to purchase in subsequent years.
| The Company | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Contracts entered into but not performed or partially performed | 34,183,130,229 | ? | 42,398,401,670 |
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The Company’s contracts entered into but not performed or partially performed mainlyincluded guaranteed investments in its subsidiaries.
2 Guarantee
(1) The Group as the guarantor
As at 31 December 2024, the Group did not have guarantees provided for externalenterprises.
(2) The Company as the guarantor
At 31 December 2024, The subsidiaries of the Company obtained long-term loans of RMB40,010,719,830 and USD1,422,632,000. The Company provides joint-liability guarantee forthe above loans.
XV. 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 other intelligent interfacedevices. This business focuses on providing high-quality smartphones, tablet PCs, laptops,monitors, TVs, vehicles, VR/AR and other display devices for customers.
(b) Internet of Things (IoT) innovation business — The IoT innovation business integrates
manufacturing models for system solution design, providing customers with 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 and hardware,providing integrated solutions in IoT segments such as smart finance, smart industrial parks,etc.
(c) Sensor business - The sensor and application solutions integrate manufacturing models for
system solution design, covering both glass-based and silicon-based areas. It focuses onsmart windows, innovative glass-based sensor devices, MEMS sensors, industrial sensors,and consumer electronics, providing customers with products and solutions including smartdimming windows and dimming system solutions, industrial sensors and solutions, MEMSsensors, and X-ray flat panel detector backplanes.
(d) MLED business — The integrates design and manufacturing of devices and provides Mini-
LED backlight products with high quality and strong reliability as well as high dynamic rangethat allow precisely brightness adjustment for TVs, monitors, laptops, car displays, VR/ARand other products; besides, it provides Mini/Micro-LED display products with highbrightness, strong reliability and high contrast for use in outdoor display, commercial display,transparent display, special display and other scenarios.
(e) Smart medicine and engineering business - The smart medicine and engineering business is
a professional service model, providing services and solutions in healthcare, intelligentrehabilitation, and medical-engineering integration products. Meanwhile, the smart medicineand engineering business is committed to building a closed loop of full-cycle health serviceswith health management as the core, medical-engineering terminals as the traction, digitalhospitals and rehabilitation communities as the support, to create an intelligent healthmanagement ecosystem, to connect testing equipment, healthcare personnel andcustomers, and to provide customers with the "prevision-treatment-nursing" full-chainedhealth services.
(f) Others - In addition to the above businesses, the Group provides software-hardware fusion
and system integration solutions for different industries, specifically including intelligentinternet of vehicles, industrial interconnection and other segments, which can providecustomers with all-round, one-stop and intelligent new experiences in IoT segmentedscenarios.
The main reason to separate the segments is that the Group independently manages thedisplay business, IoT innovation business, sensor and application solutions, MLED and smartmedicine and engineering and other businesses. As these business segments manufactureand sale different products, apply different manufacturing processes and specifies in grossprofit, the business segments are managed independently. The management evaluates theperformance and allocates resources according to the profit of each business segment anddoes not take financing cost and investment 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.
| ? | 2024 | |||||||||||||
| ? | Display business | ? | IoT innovation business | ? | Sensor business | ? | MLED business | ? | Smart medicine & engineering business | ? | Others and offsetting | ? | Total | |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | |
| Operating income | 165,003,592,549 | ? | 33,828,880,608 | ? | 386,471,446 | ? | 8,483,421,034 | ? | 1,839,415,166 | ? | (11,161,175,142) | ? | 198,380,605,661 | |
| Operating costs | 143,955,472,188 | ? | 30,247,926,452 | ? | 304,425,278 | ? | 7,993,316,575 | ? | 1,899,758,297 | ? | (16,178,949,217) | ? | 168,221,949,573 | |
??
??
| ? | 2023 | ||||||||||||
| ? | Display business | ? | IoT innovation business | ? | Sensor business | ? | MLED business | ? | Smart medicine & engineering business | ? | Others and offsetting | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Operating income | 146,603,375,798 | ? | 33,792,127,023 | ? | 405,037,922 | ? | 5,664,637,280 | ? | 1,676,326,992 | ? | (13,598,059,120) | ? | 174,543,445,895 |
| Operating costs | 134,669,314,965 | ? | 30,940,234,587 | ? | 330,920,417 | ? | 5,512,239,740 | ? | 1,681,025,214 | ? | (18,660,064,887) | ? | 154,473,670,036 |
??
??
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. Besides, the Group restates comparative information in 2023 according to the classification ofsegment reporting in 2024.
3 Secondary segment reporting (regional segments)
(a) The geographical information is based on the location of customers receiving the 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 | ||
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Mainland China | 99,522,213,629 | ? | 80,541,975,332 |
| Other regions | 98,858,392,032 | ? | 94,001,470,563 |
| ? | ? | ? | ? |
| Total | 198,380,605,661 | ? | 174,543,445,895 |
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(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 which theyare allocated, in the case of intangible assets and goodwill; and the location of operations, inthe case of interests in associates and joint ventures. Most of the non-current assets in theGroup are located in the Mainland China.
4 Major customers
The Group has 1 customer (2023: 1), the operating income from which is over 10% of theGroup’s total operating income. The operating income from the customer, which representsapproximately 15% of the Group’s total operating income, is summarised in the table below:
| Customer | 2024 | ? | 2023 |
| ? | RMB | ? | RMB |
| ? | ? | ? | ? |
| Customer 1 | 29,896,086,331 | ? | 26,082,948,856 |
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XVI. Notes to the Company’s financial statements
1 Accounts receivable
(1) The Company’s accounts receivable are as follows:
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Accounts receivable | 3,560,415,637 | ? | 4,877,977,515 |
| Less: Provision for bad and doubtful debts | 3,248,761 | ? | 7,564,419 |
| ? | ? | ? | ? |
| Total | 3,557,166,876 | ? | 4,870,413,096 |
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(2) The ageing analysis of accounts receivable is as follows:
| Ageing | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Within 1 year (inclusive) | 3,217,732,115 | ? | 3,662,390,168 |
| Over 1 year but within 2 years (inclusive) | 1,322,026 | ? | 869,370,034 |
| Over 2 years but within 3 years (inclusive) | 785,947 | ? | 37,761,471 |
| Over 3 years | 340,575,549 | ? | 308,455,842 |
| ? | ? | ? | ? |
| Sub-total | 3,560,415,637 | ? | 4,877,977,515 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 3,248,761 | ? | 7,564,419 |
| ? | ? | ? | ? |
| Total | 3,557,166,876 | ? | 4,870,413,096 |
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??????
The ageing is counted starting from the date when accounts receivable are recognised.
(3) Accounts receivable by provisioning method
| ? | 2024 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 3,248,761 | ? | 0% | ? | 3,248,761 | ? | 100% | ? | - |
| - Customers with low credit risk | 3,556,844,804 | ? | 100% | ? | - | ? | 0% | ? | 3,556,844,804 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with medium credit risk | 322,072 | ? | 0% | ? | - | ? | 0% | ? | 322,072 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 3,560,415,637 | ? | 100% | ? | 3,248,761 | ? | 0% | ? | 3,557,166,876 |
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| ? | 2023 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with high credit risk | 7,564,419 | ? | 0% | ? | 7,564,419 | ? | 100% | ? | - |
| - Customers with low credit risk | 4,869,994,263 | ? | 100% | ? | - | ? | 0% | ? | 4,869,994,263 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Collective assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Customers with medium credit risk | 418,833 | ? | 0% | ? | - | ? | 0% | ? | 418,833 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 4,877,977,515 | ? | 100% | ? | 7,564,419 | ? | 0% | ? | 4,870,413,096 |
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(4) Additions and recoveries of provision for bad and doubtful debts during the year:
| ? | 2024 | ? | 2023 | ||||||||||||
| ? | Customers with low credit risk | ? | Customers with medium credit risk | ? | Customers with high credit risk | ? | Total | ? | Customers with low credit risk | ? | Customers with medium credit risk | ? | Customers with high credit risk | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | - | ? | - | ? | 7,564,419 | ? | 7,564,419 | ? | - | ? | 79,397 | ? | 8,406,011 | ? | 8,485,408 |
| Charge during the year | - | ? | - | ? | - | ? | - | ? | - | ? | 9,367 | ? | - | ? | 9,367 |
| Recoveries during the year | - | ? | - | ? | - | ? | - | ? | - | ? | (88,764) | ? | (841,592) | ? | (930,356) |
| Written-off during the year | - | ? | - | ? | (4,315,658) | ? | (4,315,658) | ? | - | ? | - | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | - | ? | - | ? | 3,248,761 | ? | 3,248,761 | ? | - | ? | - | ? | 7,564,419 | ? | 7,564,419 |
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(5) Five largest accounts receivable by debtor at the end of the year
The five largest accounts receivable of the Company amounted to RMB2,975,671,682amounting to 84% 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
| Item | Notes | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Dividends receivable | (1) | 1,625,667,171 | ? | 1,189,273,456 |
| Others | (2) | 30,450,047,947 | ? | 27,192,355,082 |
| ? | ? | ? | ? | ? |
| Total | ? | 32,075,715,118 | ? | 28,381,628,538 |
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???????
(1) Dividends receivable
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| BOE Optoelectronics Holdings Co., Ltd. | 800,772,478 | ? | 545,367,900 |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 400,000,000 | ? | 135,000,000 |
| Beijing Matsushita Colour Innovation Co., Ltd. | 382,655,888 | ? | 468,758,202 |
| Beijing BOE Land Co., Ltd. | 25,345,840 | ? | 40,147,354 |
| Others | 16,892,965 | ? | - |
| ? | ? | ? | ? |
| Total | 1,625,667,171 | ? | 1,189,273,456 |
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?????
(2) Others
(a) The Company’s other receivables are as follows:
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Other receivables | 30,453,997,104 | ? | 27,208,493,001 |
| Less: Provision for bad and doubtful debts | 3,949,157 | ? | 16,137,919 |
| ? | ? | ? | ? |
| Total | 30,450,047,947 | ? | 27,192,355,082 |
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???????
(b) The ageing analysis of other receivables of the Company is as follows:
| Ageing | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Within 1 year (inclusive) | 14,613,008,207 | ? | 26,906,173,796 |
| Over 1 year but within 2 years (inclusive) | 15,566,224,475 | ? | 136,005,824 |
| Over 2 years but within 3 years (inclusive) | 133,433,055 | ? | 68,122,231 |
| Over 3 years | 141,331,367 | ? | 98,191,150 |
| ? | ? | ? | ? |
| Sub-total | 30,453,997,104 | ? | 27,208,493,001 |
| ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | 3,949,157 | ? | 16,137,919 |
| ? | ? | ? | ? |
| Total | 30,450,047,947 | ? | 27,192,355,082 |
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???????
The ageing is counted starting from the date when other receivables are recognised.
(c) Other receivables by provisioning method
| ? | 2024 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with high credit risk | 3,949,157 | ? | 0% | ? | 3,949,157 | ? | 100% | ? | - |
| - Amounts with low credit risk | 30,450,047,947 | ? | 100% | ? | - | ? | ? | ? | 30,450,047,947 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 30,453,997,104 | ? | 100% | ? | 3,949,157 | ? | 0% | ? | 30,450,047,947 |
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??????
| ? | 2023 | ||||||||
| ? | Book value | ? | Provision for bad and doubtful debts | ? | ? | ||||
| Category | Amount | ? | Percentage (%) | ? | Amount | ? | Percentage (%) | ? | Carrying amount |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Individual assessment | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| - Amounts with high credit risk | 16,137,919 | ? | 0% | ? | 16,137,919 | ? | 100% | ? | - |
| - Amounts with low credit risk | 27,192,355,082 | ? | 100% | ? | - | ? | 0% | ? | 27,192,355,082 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 27,208,493,001 | ? | 100% | ? | 16,137,919 | ? | 0% | ? | 27,192,355,082 |
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?????
(d) Movements of provisions for bad and doubtful debts
| ? | 2024 | ? | 2023 | ||||||||||||
| ? | Stage 1 | ? | Stage 2 | ? | Stage 3 | ? | ? | ? | Stage 1 | ? | Stage 2 | ? | Stage 3 | ? | ? |
| ? | 12-month ECL | ? | Lifetime ECL - Not credit impaired | ? | Lifetime ECL - Credit impaired | ? | Total | ? | 12-month ECL | ? | Lifetime ECL - Not credit impaired | ? | Lifetime ECL - Credit impaired | ? | Total |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the beginning of the year | - | ? | - | ? | 16,137,919 | ? | 16,137,919 | ? | - | ? | - | ? | 20,707,796 | ? | 20,707,796 |
| Charge during the year | - | ? | - | ? | 80,000,336 | ? | 80,000,336 | ? | - | ? | - | ? | 176,044 | ? | 176,044 |
| Reversals during the year | - | ? | - | ? | - | ? | - | ? | - | ? | - | ? | (4,745,921) | ? | (4,745,921) |
| Written-off during the year | - | ? | - | ? | (92,189,098) | ? | (92,189,098) | ? | - | ? | - | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | - | ? | - | ? | 3,949,157 | ? | 3,949,157 | ? | - | ? | - | ? | 16,137,919 | ? | 16,137,919 |
???????
???????
(e) The Group’s other receivables categorised by nature
| Item | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Current accounts | (i) | 30,195,532,432 | ? | 26,989,987,234 |
| Others | ? | 258,464,672 | ? | 218,505,767 |
| ? | ? | ? | ? | ? |
| Sub-total | ? | 30,453,997,104 | ? | 27,208,493,001 |
| ? | ? | ? | ? | ? |
| Less: Provision for bad and doubtful debts | ? | 3,949,157 | ? | 16,137,919 |
| ? | ? | ? | ? | ? |
| Total | ? | 30,450,047,947 | ? | 27,192,355,082 |
???????
???????
(i) As at 31 December 2024 and 31 December 2023, the Company's current
accounts mainly consisted of loans receivable from subsidiaries.
(f) 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 RMB23,215,154,567 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:
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Investments in subsidiaries | 200,829,541,576 | ? | 187,984,376,186 |
| Investments in associates and joint ventures | 2,362,000,389 | ? | 3,156,825,405 |
| ? | ? | ? | ? |
| Sub-total | 203,191,541,965 | ? | 191,141,201,591 |
| ? | ? | ? | ? |
| Less: Provision for impairment | - | ? | 32,000,000 |
| ? | ? | ? | ? |
| Total | 203,191,541,965 | ? | 191,109,201,591 |
???????
???????
(2) Investments in subsidiaries
| ? | ? | ? | Movements during the year | ? | ? | ? | ? | ? | ? | ||||
| Name of entity | Balance at the beginning of the year | ? | Increase in investments | ? | Share-based payments | ? | Reductions 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 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Chengdu BOE Optoelectronics Technology Co., Ltd. | 25,132,862,300 | ? | - | ? | 11,489,469 | ? | - | ? | 25,144,351,769 | ? | - | ? | - |
| Hefei BOE Optoelectronics Technology Co., Ltd. | 2,774,220,036 | ? | - | ? | 5,339,250 | ? | - | ? | 2,779,559,286 | ? | - | ? | - |
| Beijing BOE Display Technology Co., Ltd. | 9,023,454,530 | ? | - | ? | 26,209,213 | ? | - | ? | 9,049,663,743 | ? | - | ? | - |
| Hefei Xinsheng Optoelectronics Technology Co., Ltd. | 10,424,839,990 | ? | - | ? | 5,956,382 | ? | - | ? | 10,430,796,372 | ? | - | ? | - |
| Ordos Yuansheng Optoelectronics Co., Ltd. | 11,816,424,205 | ? | - | ? | 629,141 | ? | - | ? | 11,817,053,346 | ? | - | ? | - |
| Chongqing BOE Optoelectronics Technology Co., Ltd. | 4,225,776,398 | ? | - | ? | 2,617,284 | ? | - | ? | 4,228,393,682 | ? | - | ? | - |
| Fuzhou BOE Optoelectronics Technology Co., Ltd. | 15,243,649,837 | ? | - | ? | 1,952,980 | ? | - | ? | 15,245,602,817 | ? | - | ? | - |
| Beijing BOE Vision-electronic Technology Co., Ltd. | 4,447,858,263 | ? | 710,000,000 | ? | - | ? | - | ? | 5,157,858,263 | ? | - | ? | - |
| Beijing BOE Vacuum Electronics Co., Ltd. | 20,126,113 | ? | - | ? | 85,200 | ? | - | ? | 20,211,313 | ? | - | ? | - |
| Beijing BOE Vacuum Technology Co., Ltd. | 32,000,000 | ? | - | ? | - | ? | (32,000,000) | ? | - | ? | 32,000,000 | ? | - |
| Beijing Yinghe Century Co., Ltd. | 358,184,475 | ? | - | ? | 2,458,930 | ? | - | ? | 360,643,405 | ? | - | ? | - |
| BOE Optical Science and technology Co., Ltd. | 669,553,238 | ? | - | ? | 1,085,054 | ? | - | ? | 670,638,292 | ? | - | ? | - |
| BOE Hyundai LCD (Beijing) Display Technology Co., Ltd. | 43,836,688 | ? | - | ? | (1,222,207) | ? | - | ? | 42,614,481 | ? | - | ? | - |
| BOE (Hebei) Mobile Technology Co., Ltd. | 1,356,796,294 | ? | - | ? | - | ? | - | ? | 1,356,796,294 | ? | - | ? | - |
| Beijing BOE Multimedia Technology Co., Ltd. | 400,000,000 | ? | - | ? | - | ? | (400,000,000) | ? | - | ? | - | ? | - |
| Beijing BOE Energy Technology Co., Ltd. | 858,249,916 | ? | - | ? | 642,897 | ? | - | ? | 858,892,813 | ? | - | ? | - |
| Beijing BOE Life Technology Co., Ltd. | 10,000,000 | ? | - | ? | - | ? | - | ? | 10,000,000 | ? | - | ? | - |
| Beijing Zhongxiangying Technologies Co., Ltd. | 102,490,962 | ? | - | ? | 56,853 | ? | - | ? | 102,547,815 | ? | - | ? | - |
| Beijing BOE Semi-conductor Co., Ltd. | 9,450,000 | ? | - | ? | - | ? | - | ? | 9,450,000 | ? | - | ? | - |
| BOE Optoelectronics Holding Co., Ltd | 3,487,684,762 | ? | - | ? | - | ? | - | ? | 3,487,684,762 | ? | - | ? | - |
| BOE Healthcare Investment & Management Co., Ltd. | 9,422,994,176 | ? | 713,000,000 | ? | 839,520 | ? | - | ? | 10,136,833,696 | ? | - | ? | - |
| Hefei BOE Display Technology Co., Ltd. | 8,979,853,583 | ? | - | ? | 4,170,939 | ? | - | ? | 8,984,024,522 | ? | - | ? | - |
| Beijing BOE Technology Development Co., Ltd | 2,955,574 | ? | 10,000,000 | ? | 200,616 | ? | - | ? | 13,156,190 | ? | - | ? | - |
| Hefei BOE Zhuoyin Technology Co., Ltd. | 605,598,776 | ? | - | ? | 671,040 | ? | - | ? | 606,269,816 | ? | - | ? | - |
| Beijing BOE Land Co., Ltd. | 10,000,162 | ? | - | ? | 236,808 | ? | - | ? | 10,236,970 | ? | - | ? | - |
| Beijing BOE Marketing Co., Ltd. | 31,885,370 | ? | - | ? | 254,280 | ? | - | ? | 32,139,650 | ? | - | ? | - |
| BOE KOREA Co., Ltd | 8,993,260 | ? | - | ? | 644,996 | ? | - | ? | 9,638,256 | ? | - | ? | - |
| Yunnan Invensight Optoelectronics Technology Co., Ltd. | 1,521,548,388 | ? | - | ? | 1,166,618 | ? | - | ? | 1,522,715,006 | ? | - | ? | - |
| Mianyang BOE Optoelectronics Technology Co., Ltd. | 22,347,538,961 | ? | - | ? | 2,387,605 | ? | - | ? | 22,349,926,566 | ? | - | ? | - |
| Beijing BOE Sensing Technology Co., Ltd. | 4,537,093,774 | ? | 50,000,000 | ? | 1,912,511 | ? | - | ? | 4,589,006,285 | ? | - | ? | - |
| Wuhan BOE Optoelectronics Technology Co., Ltd. | 12,530,838,461 | ? | - | ? | 2,464,272 | ? | - | ? | 12,533,302,733 | ? | - | ? | - |
| Chongqing BOE Display Technology Co., Ltd. | 10,017,479,885 | ? | - | ? | 2,119,225 | ? | - | ? | 10,019,599,110 | ? | - | ? | - |
| Fuzhou BOE Display Technology Co., Ltd. | 23,060,520 | ? | - | ? | - | ? | - | ? | 23,060,520 | ? | - | ? | - |
| Beijing Matsushita Colour Innovation Co., Ltd. | 6,146,008 | ? | - | ? | 651,240 | ? | - | ? | 6,797,248 | ? | - | ? | - |
| BOE Innovation Investment Co., Ltd. | 3,677,760,342 | ? | 1,099,000,000 | ? | 548,165 | ? | - | ? | 4,777,308,507 | ? | - | ? | - |
| Hefei BOE Xingyu Technology Co., Ltd. | 506,907,751 | ? | - | ? | 245,916 | ? | - | ? | 507,153,667 | ? | - | ? | - |
| BOE Education Technology Co., Ltd. | 29,259,274 | ? | - | ? | - | ? | (29,259,274) | ? | - | ? | - | ? | - |
| Dongfang Chengqi (Beijing) Business Technology Co., Ltd. | 15,927,168 | ? | - | ? | 687,665 | ? | - | ? | 16,614,833 | ? | - | ? | - |
| BOE Smart Technology Co., Ltd. | 2,722,000,000 | ? | 214,444,400 | ? | - | ? | - | ? | 2,936,444,400 | ? | - | ? | - |
| Nanjing BOE Display Technology Co., Ltd. | 5,602,671,987 | ? | - | ? | 1,600,916 | ? | - | ? | 5,604,272,903 | ? | - | ? | - |
| Chengdu BOE Display Sci-tech Co., Ltd. | 7,561,638,738 | ? | - | ? | 907,482 | ? | - | ? | 7,562,546,220 | ? | - | ? | - |
| BOE Mled Technology Co., Ltd. | 1,464,806,545 | ? | 174,000,000 | ? | 2,108,006 | ? | - | ? | 1,640,914,551 | ? | - | ? | - |
| Beijing BOE Solar Energy Technology Co., Ltd. | 51,886,158 | ? | 170,000,000 | ? | (612,074) | ? | - | ? | 221,274,084 | ? | - | ? | - |
| Chengdu BOE Display Technology Co., Ltd. | 399,988,000 | ? | 4,099,877,000 | ? | - | ? | - | ? | 4,499,865,000 | ? | - | ? | - |
| Beijing BOE Chuangyuan Technology Co., Ltd. | 2,249,653,000 | ? | 5,175,238,300 | ? | 2,267,663 | ? | - | ? | 7,427,158,963 | ? | - | ? | - |
| Mianyang BOE Electronics Technology Co., Ltd. | 680,000,000 | ? | 787,000,000 | ? | - | ? | - | ? | 1,467,000,000 | ? | - | ? | - |
| Beijing Shiyan Technology Co., Ltd. | 167,200,000 | ? | - | ? | 1,699,524 | ? | - | ? | 168,899,524 | ? | - | ? | - |
| BOE HC SemiTek Corporation | 2,083,597,236 | ? | - | ? | - | ? | - | ? | 2,083,597,236 | ? | - | ? | - |
| Others* | 287,635,082 | ? | - | ? | 19,391,585 | ? | - | ? | 307,026,667 | ? | - | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 187,984,376,186 | ? | 13,202,559,700 | ? | 103,864,964 | ? | (461,259,274) | ? | 200,829,541,576 | ? | 32,000,000 | ? | - |
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??????
* Others represented equity-settled share-based payments granted by the Company toemployees of other subsidiaries.
For information about the major subsidiaries of the Company, refer to Note VIII.1.
(3) Investments in associates
| ? | ? | ? | Movements during the year | ? | ? | ? | ? | ||||||||||
| Investee | Balance at the beginning of the year | ? | Additions during the year | ? | Reductions during the year | ? | Investment (loss) /income under equity method | ? | Other comprehensive income | ? | Other changes in equity | ? | 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 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Beijing Xindongneng Investment Fund (Limited Partnership) | 1,864,768,203 | ? | - | ? | - | ? | (501,218,917) | ? | 6,032,979 | ? | - | ? | (447,573,615) | ? | 922,008,650 | ? | - |
| Erdos BOE Energy Investment Co., Ltd. | 135,928,979 | ? | - | ? | - | ? | (422,258) | ? | - | ? | 170,648 | ? | - | ? | 135,677,369 | ? | - |
| Others | 1,156,128,223 | ? | 110,179,400 | ? | - | ? | 25,370,436 | ? | 24,998,343 | ? | 2,527,639 | ? | (14,889,671) | ? | 1,304,314,370 | ? | - |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | - |
| ? | 3,156,825,405 | ? | 110,179,400 | ? | - | ? | (476,270,739) | ? | 31,031,322 | ? | 2,698,287 | ? | (462,463,286) | ? | 2,362,000,389 | ? | - |
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???????
4 Other payables
| Item | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Dividends payable | ? | 6,451,170 | ? | 6,451,170 |
| Others | (1) | 3,464,889,503 | ? | 3,509,544,809 |
| ? | ? | ? | ? | ? |
| Total | ? | 3,471,340,673 | ? | 3,515,995,979 |
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???????
(1) The Company’s other payables by category are as follows
| Item | Note | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? | ? |
| Amounts due to / from subsidiaries | ? | 3,075,540,118 | ? | 2,791,489,305 |
| Repurchase obligation of restricted shares | V.41 | 211,839,210 | ? | 457,401,616 |
| Purchase of projects, equipment and intangible assets | ? | 94,897,198 | ? | 132,545,852 |
| Others | ? | 82,612,977 | ? | 128,108,036 |
| ? | ? | ? | ? | ? |
| Total | ? | 3,464,889,503 | ? | 3,509,544,809 |
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???????
5 Long-term loans
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Unsecured loans | 52,243,655,504 | ? | 48,042,049,084 |
| Less: Long-term loans due within one year | 10,986,055,504 | ? | 3,988,949,084 |
| ? | ? | ? | ? |
| Total | 41,257,600,000 | ? | 44,053,100,000 |
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???????
The interest rate of RMB long-term loans for the Company ranged from 1.20% to 3.10% in2024 (2023: 1.20% to 3.30%).
6 Capital reserve
| Item | ? | 1 January 2024 | ? | Additions during the period | ? | Reductions during the period | ? | 31 December 2024 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Share premium | ? | 50,789,584,924 | ? | - | ? | (9,986,070) | ? | 50,779,598,854 |
| Other capital reserves | ? | 952,235,800 | ? | 139,531,898 | ? | - | ? | 1,091,767,698 |
| ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Balance at the end of the year | ? | 51,741,820,724 | ? | 139,531,898 | ? | (9,986,070) | ? | 51,871,366,552 |
??
??
7 Other comprehensive income
| ? | ? | ? | Movements during the year | ? | ? | ||||||
| Item | Balance at the beginning of the year | ? | Before-tax amount | ? | Less: Income tax expenses | ? | 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 | (296,327,466) | ? | 29,794,066 | ? | 719,358 | ? | - | ? | 526,560 | ? | (267,779,318) |
| Including: Other comprehensive income recognised under equity method | (181,822,570) | ? | 31,031,322 | ? | 904,946 | ? | - | ? | 526,560 | ? | (152,222,754) |
| Changes in fair value of investments in other equity instruments | (114,504,896) | ? | (1,237,256) | ? | (185,588) | ? | - | ? | - | ? | (115,556,564) |
| Items that may be reclassified to profit or loss | (105,590) | ? | - | ? | - | ? | - | ? | - | ? | (105,590) |
| ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? |
| Total | (296,433,056) | ? | 29,794,066 | ? | 719,358 | ? | - | ? | 526,560 | ? | (267,884,908) |
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??????
8 Retained earnings
| Item | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Retained earnings at the beginning of the year | 7,186,134,196 | ? | 6,624,620,470 |
| Add: Net profits for the year | 3,079,231,881 | ? | 3,305,971,786 |
| Less: Appropriation for statutory surplus reserve | 307,923,188 | ? | 330,597,179 |
| Interest on holders of other equity instruments | 70,000,000 | ? | 118,551,232 |
| Dividends to ordinary shares | 1,129,073,743 | ? | 2,296,367,348 |
| Transfer of other comprehensive income to retained earnings | (473,904) | ? | (1,057,699) |
| ? | ? | ? | ? |
| Retained earnings at the end of the year | 8,758,843,050 | ? | 7,186,134,196 |
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???????
9 Operating income and operating costs
| ? | 2024 | ? | 2023 | ||||
| Item | Income | ? | Cost | ? | Income | ? | Cost |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Principal activities | 5,514,699,140 | ? | 9,430,925 | ? | 4,669,890,971 | ? | 11,551,234 |
| Other operating activities | 43,411,212 | ? | 2,028,596 | ? | 38,575,016 | ? | 1,076,333 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Total | 5,558,110,352 | ? | 11,459,521 | ? | 4,708,465,987 | ? | 12,627,567 |
| ? | ? | ? | ? | ? | ? | ? | ? |
| Including: Revenue from contracts with customers | 5,452,693,863 | ? | 1,788,997 | ? | 4,604,652,687 | ? | 3,072,136 |
| Other income | 105,416,489 | ? | 9,670,524 | ? | 103,813,300 | ? | 9,555,431 |
??
??
10 Investment income
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Income from long-term equity investments accounted for using the cost method | 2,113,201,157 | ? | 1,555,817,904 |
| Income from long-term equity investments accounted for using the equity method | (476,270,739) | ? | 429,364,809 |
| Investment income from disposal of long-term equity investments | - | ? | 1,581,850 |
| Dividend income from investments in other equity instruments | - | ? | 728,606 |
| Including: Dividend income from investments in other equity instruments held at the balance sheet date | - | ? | 728,606 |
| Others | 71,214,434 | ? | 3,990,185 |
| ? | ? | ? | ? |
| Total | 1,708,144,852 | ? | 1,991,483,354 |
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??????
11 Supplementary information for the cash flow statement
(1) Supplement to the cash flow statement
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| (a) Reconciliation of net profit to cash flows from operating activities: | ? | ? | ? |
| ? | ? | ? | ? |
| Net profit | 3,079,231,881 | ? | 3,305,971,786 |
| Add: Depreciation of fixed assets, investment properties and right-of-use assets | 212,111,340 | ? | 205,071,503 |
| Amortisation of intangible assets | 153,958,598 | ? | 181,868,535 |
| Amortisation of long-term deferred expenses | 72,877,017 | ? | 73,436,949 |
| Losses from scrapping of fixed assets | 8,766 | ? | 4,248,142 |
| Gains from disposal of fixed assets, intangible assets, and other long-term assets | (818) | ? | (5,077,109) |
| Credit losses | 80,000,336 | ? | (5,490,866) |
| Gains from changes in fair value | (3,403,675) | ? | (49,498,773) |
| Financial expenses | 515,803,000 | ? | 414,990,764 |
| Investment income | (1,708,144,852) | ? | (1,991,483,354) |
| Share-based payments | 32,863,140 | ? | 76,890,841 |
| Changes in deferred income | (907,661,360) | ? | (978,788,846) |
| Changes in deferred tax liabilities | (204,759,083) | ? | 97,968,124 |
| Increase in inventories | (11,861,376) | ? | (4,271,106) |
| Decrease/(increase) in operating receivables | 2,630,702,553 | ? | (411,585,912) |
| Increase in operating payables | 1,028,430,879 | ? | 56,568,894 |
| ? | ? | ? | ? |
| Net cash flows generated from operating activities | 4,970,156,346 | ? | 970,819,572 |
???????
???????
| (b) Change in cash and cash equivalents: | ? | ? | ? |
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Cash and cash equivalents at the end of the year | 4,442,011,688 | ? | 4,249,329,821 |
| Less: Cash and cash equivalents at the beginning of the year | 4,249,329,821 | ? | 7,111,879,033 |
| ? | ? | ? | ? |
| Net increase/(decrease) in cash and cash equivalents | 192,681,867 | ? | (2,862,549,212) |
???????
???????
(2) Details of cash and cash equivalents
| ? | 31 December 2024 | ? | 31 December 2023 |
| ? | ? | ? | ? |
| Cash on hand | 13,969 | ? | 14,205 |
| Bank deposits available on demand | 4,437,526,860 | ? | 4,248,378,624 |
| Other monetary funds available on demand | 4,470,859 | ? | 936,992 |
| ? | ? | ? | ? |
| Closing balance of cash and cash equivalents | 4,442,011,688 | ? | 4,249,329,821 |
???????
???????
Note: Cash and cash equivalents disclosed above exclude bank deposits held for investment
purposes, bank deposit interest accrued at the end of the period, and other monetaryfund with restricted usage.
XVII. Extraordinary gains and losses in 2024
| ? | 2024 |
| ? | ? |
| Gains and losses from disposal of non-current assets, including the written-off on the provisions for impairment of assets | 150,314,680 |
| Government grants recognised in profit or loss (except for those which are closely related to the company’s normal operations, which the company is entitled to under established standards in accordance with government policies and which have a continuing impact on the profits and losses of the company) | 1,220,722,012 |
| For a company which is not a financial institution, gains and losses arising from changes in the fair value of financial assets and financial liabilities held by the company, and those arising from the disposal of financial assets and financial liabilities, other than those held for effective hedging related to normal operations | 571,124,492 |
| Reversal of provision for bad and doubtful debts assessed on an individual basis | 6,099,046 |
| Other non-operating income and expenses besides the items above | 153,063,492 |
| ? | ? |
| Sub-total | 2,101,323,722 |
| ? | ? |
| Tax effect | 208,616,605 |
| Effect on non-controlling interests after taxation | 406,583,010 |
| ? | ? |
| Total | 1,486,124,107 |
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??????
Notes: 1. There is no significant impact of the implementation of Interpretive
Pronouncement on the Preparation of Information Disclosures of CompaniesIssuing Public Shares No. 1 – Extraordinary Gains and Losses (Revised in 2023)on the Group’s extraordinary gains and losses.
2. Extraordinary gain and loss item listed above are presented in the amount before
taxation.
XVIII. 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 Return on Net Assets and EarningsPer Share (2010 revised) issued by the CSRC and relevant accounting standards, theGroup’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 | 4.05% | ? | 0.14 | ? | Not applicable |
| Net profit excluding extraordinary gains and losses attributable to the Company’s ordinary equity shareholders | 2.90% | ? | 0.10 | ? | Not applicable |
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1 Calculation of earnings per share
(1) Basic earnings per share
For the calculation of basic earnings per share, refer to Note V.59.
(2) Basic earnings per share excluding extraordinary gains and losses
Basic earnings per share excluding extraordinary gains and losses is calculated by dividingconsolidated net profit excluding extraordinary gains and losses attributable to ordinaryshareholders of the Company by the weighted average number of ordinary sharesoutstanding:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Consolidated net profit attributable to ordinary shareholders of the Company | 5,250,504,008 | ? | 2,411,710,231 |
| Extraordinary gains and losses attributable to ordinary shareholders of the Company | 1,486,124,107 | ? | 3,179,996,704 |
| Consolidated net profit/(loss) excluding extraordinary gains and losses attributable to the Company’s ordinary equity shareholders | 3,764,379,901 | ? | (768,286,473) |
| Weighted average number of ordinary shares outstanding | 37,519,930,241 | ? | 37,429,510,530 |
| Basic earnings per share excluding extraordinary gains and losses (RMB/share) | 0.10 | ? | (0.02) |
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2 Calculation of weighted average return on net assets
(1) Weighted average return on net assets
Weighted average return on net assets is calculated by dividing consolidated net profitattributable to ordinary shareholders of the Company by the weighted average amount ofconsolidated net assets:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Consolidated net profit attributable to ordinary shareholders of the Company | 5,250,504,008 | ? | 2,411,710,231 |
| Weighted average amount of consolidated net assets | 129,663,993,599 | ? | 127,674,255,464 |
| Weighted average return on net assets | 4.05% | ? | 1.89% |
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The calculation of the weighted average amount of consolidated net assets is as follows:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Consolidated net assets at the beginning of the year | 127,384,904,121 | ? | 127,909,808,396 |
| Effect of consolidated net profit attributable to ordinary shareholders of the Company | 2,625,252,004 | ? | 1,205,855,116 |
| Effect of non-public issuance of shares | - | ? | - |
| Effect of repurchase of treasury shares | (16,830,932) | ? | - |
| Profit distribution to ordinary equity shareholders | (564,536,872) | ? | (1,335,983,365) |
| Effect of changes in shareholding ratio of subsidiaries | (24,300,265) | ? | (418,139,849) |
| Effect of other equity changes attributable to the Company’s ordinary equity shareholders | 259,505,543 | ? | 312,715,166 |
| ? | ? | ? | ? |
| Weighted average amount of consolidated net assets | 129,663,993,599 | ? | 127,674,255,464 |
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(2) Weighted average return on net assets excluding extraordinary gains and losses
Weighted average return on net assets excluding extraordinary gains and losses iscalculated by dividing consolidated net profit excluding extraordinary gains and lossesattributable to ordinary shareholders of the Company by the weighted average amount ofconsolidated net assets:
| ? | 2024 | ? | 2023 |
| ? | ? | ? | ? |
| Consolidated net profit/(loss) excluding extraordinary gains and losses attributable to the Company’s ordinary equity shareholders | 3,764,379,901 | ? | (768,286,473) |
| Weighted average amount of consolidated net assets | 129,663,993,599 | ? | 127,674,255,464 |
| Weighted average return on net assets excluding extraordinary gains and losses | 2.90% | ? | (0.60%) |
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