[中报]京东方Ｂ:2021年半年度报告（英文版）（更新后）
原标题:京东方Ｂ:2021年半年度报告（英文版）（更新后） INTERIM REPORT 2021 C:\Users\10157956\Desktop\BOE LOGO\BOE灰.jpg 说明: {536FCC60-55B9-4119-80C6-BAEB397C0202} August 2021 Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of BOE Technology Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. Mr. Chen Yanshun, the Company’s legal representative, Mr. Liu Xiaodong, President, Ms. Sun Yun, Chief Financial Officer, and Ms. Yang Xiaoping, head of the financial department (equivalent to financial manager) hereby guarantee that the Financial Statements carried in this Report are factual, accurate and complete. All the directors of the Company attended in person the Board meeting for the review of this Report and its summary. The Company has no interim dividend plan, either in the form of cash or stock. Any plans for the future, development strategies and other forward-looking statements mentioned in this Report and its summary shall NOT be considered as absolute promises of the Company to investors. Therefore, investors are reminded to exercise caution when making investment decisions. For further information, see “(X) Risks Facing the Company and Countermeasures” in Part III herein. This Report has been prepared as per the Chinese Accounting Standards for Business Enterprises and other relevant regulations. This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail. Table of Contents Part I Important Notes, Table of Contents and Definitions ........................................................... 2 Part II Corporate Information and Key Financial Information ................................................... 6 Part III Management Discussion and Analysis ............................................................................. 10 Part IV Corporate Governance ...................................................................................................... 26 Part V Environmental and Social Responsibility .......................................................................... 28 Part VI Significant Events ............................................................................................................... 33 Part VII Share Changes and Shareholder Information ............................................................... 53 Part VIII Preferred Shares .............................................................................................................. 63 Part IX Bonds .................................................................................................................................. 64 Part X Financial Statements ........................................................................................................... 68 Documents Available for Reference (I) The financial statements signed and sealed by the Company’s legal representative, President, Chief Financial Officer and head of the financial department (equivalent to financial manager); and (II) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the Reporting Period. All the above mentioned documents are available at the Board Secretary’s Office of the Company. Chairman of the Board (signature): Mr. Chen Yanshun Date of the Board’s approval of this Report: 27 August 2021 Definitions Term Definition “BOE”, the “Company”, the “Group” or “we” BOE Technology Group Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires The cninfo website http://www.cninfo.com.cn/ CSRC The China Securities Regulatory Commission Microdisplay Microdisplay technology LCD Liquid Crystal Display AMOLED Active-matrix Organic Light Emitting Diode OLED Organic Light Emitting Diode Mini-LED Submillimeter Light Emitting Diode P0.9 Point 0.9mm AM Active matrix Micro-LED Micro Light Emitting Diode VR/AR Virtual Reality /Augmented Reality TFT-LCD Thin Film Transistor Liquid Crystal Display 3C Computer, communication and consumer electronics SID The Society for Information Display IEC International Electrotechnical Commission DIC Display Innovation China Expo DIC AWARD Display Innovation China Award Part II Corporate Information and Key Financial Information I Corporate Information Stock name BOE-A, BOE-B Stock code 000725, 200725 Changed stock name (if any) N/A Stock exchange for stock listing Shenzhen Stock Exchange Company name in Chinese 京东方科技集团股份有限公司 Abbr. (if any) 京东方 Company name in English (if any) BOE TECHNOLOGY GROUP CO., LTD. Abbr. (if any) BOE Legal representative Chen Yanshun II Contact Information Item Board Secretary Securities Representative Name Liu Hongfeng Su Xuefei Address 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China Tel. 010－64318888 ext. 010－64318888 ext. Fax 010－64366264 010－64366264 Email address [email protected] [email protected] III Other Information 1. Contact Information of the Company Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address and email address of the Company in the Reporting Period. □ Applicable √ Not applicable No change occurred to the said information in the Reporting Period, which can be found in the 2020 Annual Report. 2. Media for Information Disclosure and Place where this Report is Lodged Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s periodic reports in the Reporting Period. □ Applicable √ Not applicable The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information can be found in the 2020 Annual Report. IV Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below. √ Yes □ No Reason for retrospective restatement: Other reason. Item H1 2021 H1 2020 Change (%) Before Restated Restated Operating revenue (RMB) 107,285,327,026.00 60,867,073,506.00 56,751,329,065.00 89.04% Net profit attributable to the listed company’s shareholders (RMB) 12,762,024,968.00 1,135,450,325.00 1,135,450,325.00 1,023.96% Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) 11,661,616,772.00 -176,328,585.00 -176,328,585.00 — Net cash generated from/used in operating activities (RMB) 32,745,188,339.00 9,716,675,534.00 9,716,675,534.00 237.00% Basic earnings per share (RMB/share) 0.363 0.026 0.026 1,296.15% Diluted earnings per share (RMB/share) 0.363 0.026 0.026 1,296.15% Weighted average return on equity (%) 13.40% 1.05% 1.05% 12.35% Item 30 June 2021 31 December 2020 Change (%) Before Restated Restated Total assets (RMB) 435,476,169,633.00 424,256,806,331.00 424,256,806,331.00 2.64% Equity attributable to the listed company’s shareholders (RMB) 111,945,985,236.00 103,276,766,835.00 103,276,766,835.00 8.39% Quarterly operating revenue was restated according to the audited data, which had no impact on other financial indicators. V Accounting Data Differences under China’s Accounting Standards for Business Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards 1. Net Profit and Net Asset Differences under CAS and IFRS □ Applicable √ Not applicable No such differences for the Reporting Period. 2. Net Profit and Net Asset Differences under CAS and Foreign Accounting Standards □ Applicable √ Not applicable No such differences for the Reporting Period. VI Exceptional Gains and Losses √ Applicable □ Not applicable Unit: RMB Item Amount Note Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 147,769,658.00 N/A Tax rebates, reductions and exemptions given with ultra vires approval or in lack of official approval documents 0.00 N/A Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s uniform standards) 1,125,750,664.00 N/A Capital occupation charges on non-financial enterprises that are charged to current profit or loss 0.00 N/A Gain equal to the amount by which investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments 0.00 N/A Gain or loss on non-monetary asset swaps 0.00 N/A Gain or loss on assets entrusted to other entities for investment or management 0.00 N/A Allowance for asset impairments due to acts of God such as natural disasters 0.00 N/A Gain or loss on debt restructuring 0.00 N/A Restructuring costs in staff arrangement, integration, etc. 0.00 N/A Gain or loss on the over-fair value amount as a result of transactions with distinctly unfair prices 0.00 N/A Current profit or loss on subsidiaries obtained in business combinations involving enterprises under common control from the period-beginning to combination dates, net 0.00 N/A Gain or loss on contingencies that do not arise in the Company’s ordinary course of business 0.00 N/A Gain or loss on fair-value changes in held-for-trading and derivative financial assets and liabilities 46,230,279.00 N/A & income from disposal of held-for-trading and derivative financial assets and liabilities and other investments in debt obligations (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) Reversed portions of impairment allowances for accounts receivable and contract assets which are tested individually for impairment 12,706,456.00 N/A Gain or loss on loan entrustments 0.00 N/A Gain or loss on fair-value changes in investment property of which subsequent measurement is carried out using the fair value method 0.00 N/A Effects of all adjustments required by taxation, accounting and other applicable laws and regulations on current profit or loss 0.00 N/A Income from charges on entrusted management 0.00 N/A Non-operating income and expense other than the above 28,677,012.00 N/A Other gains and losses that meet the definition of exceptional gain/loss 0.00 N/A Less: Income tax effects 124,486,027.00 N/A Non-controlling interests effects (net of tax) 136,239,846.00 N/A Total 1,100,408,196.00 -- Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items: □ Applicable √ Not applicable No such cases for the Reporting Period. Part III Management Discussion and Analysis I Principal Activity of the Company in the Reporting Period (I) Principal Operations Founded in April 1993, BOE Technology Group Co., Ltd. is an IoT company that provides smart ports and professional services for information interaction and human health. After years of development, the Group has become a global leader in the semiconductor display sector. The Company has established a "1+4+N" BG structure with display business as the core, which integrates MLED business, Sensor and Solution business, Intelligence System and Innovation business, Smart Medical Engineering business and extends to IoT scenarios and market segments such as Intelligent Car Networking, Smart Retail, Smart Finance, Smart Medicine and Engineering, Industrial IoT, Smart Park, and Digital Art. The Company has established an industrial fund to build a safe, healthy and competitive ecological chain finance and innovation investment platform. The Company has set up the Smart System Innovation Center to facilitate cooperation between business groups and strategic partners to jointly create products and value for win-win outcomes. For the first half of 2021, the Company recorded operating revenue of approximately RMB107.285 billion, up around 89.04% year-on-year; and a net profit attributable to the listed company’s shareholders of RMB12.762 billion, up 1,023.96% year-on-year. The specifics are as follows: 1. Display business Display business offers TFT-LCD, AMOLED, Microdisplay and other intelligent interface devices designed and manufactured in an integrated way, to create an integrated platform of semiconductor display panels, modules, whole products and services. Display business provides customers with high-quality display devices such as smartphones, tablet PCs, laptops, monitors, TVs, vehicle-mounted, electronic shelf label (ESL), tiled display screens, industrial control, wearable devices, VR/AR devices, electronic tags, white goods, healthcare, mobile payment, and interactive whiteboards, as well as the most competitive intelligent services in 3C display, smart IoT, system platform, and other fields. 2. Sensor and Solution business Sensor and Solution business offers B2B customers integrated design and manufacturing services of sensor devices for use in medical detection, household detection, communication & transportation, smart homes, etc., as well as sensor system solutions regarding medical imaging, biological detection, smart screens, microwave communication, fingerprint identification and the like, with products including flat panel X-ray detectors (FPXD), digital microfluidic chips, PDLC glass, fingerprint identification systems, etc. 3. MLED business MLED business renders Mini-LED backlight products with high reliability and high partition of dimming for LCD of mobile phones, tablet PCs, laptops, monitors, TVs, vehicles, wearable devices, etc., as well as Mini/Micro-LED display products with high brightness, high reliability and high contrast for segment markets of outdoor, commercial, transparent, specialized and other displays. All these products are designed and manufactured in an integrated manner. 4. Intelligence System and Innovation business Intelligence System and Innovation business offers overall system solutions under integrated design and backed by AI and big data, such as smart finance, smart industrial parks, smart governments, smart office, smart transportation, city light space, smart energy and other IoT solutions, for products and services combining hardware and software. 5. Smart Medical Engineering business Smart Medical Engineering business adopts the professional healthcare service model to combine technologies with medicine and integrate medicine and engineering with innovation, so as to provide families, communities and hospitals with the four core services of health management, health technology, digital hospital, and technology services. The health IoT platform connects testing equipment, medical workers and customers to build a smart health management ecosystem where customers enjoy health services including prevention, treatment, therapy and nursing. (II) Industry development In the first half of the year, the semiconductor industry continued to improve, the industrial consolidation accelerated, resources were further concentrated to leading enterprises. The COVID-19 has reshaped the way people live and work. Demand for applications such as telecommuting, telemedicine, online education and online entertainment continues to grow. The continuous innovation of LCD technology and the rapid development of new display technologies such as OLED and small spacing LED have boosted the demand for new applications. Meanwhile, thanks to the continuous progress of 5G, AI, big data and other technologies, various industries are undergoing digital transformation at a faster speed, which has brought great opportunities for the Company's IoT transformation and development. (III) Market position 1. Display business Sales of display devices increased 18% year on year, and sales area increased 45% year on year. The market share of LCD smartphones, tablet PCs, laptops, monitors and TVs continued to rank first in the world. The sales area of innovative application devices increased by 66% year on year. The market share of electronic paper display devices continued to maintain above 60%. 3C product sales increased by 38% year on year. 2. Sensor and Solution business The sales of medical imaging in sensing business increased by 51% year on year, and the Company has made mass production and shipped to global high-end medical device companies in Europe, the United States, Japan and South Korea. Smart screens have been applied in subways in Beijing, Shenzhen, Qingdao and other places. 3. MLED business MLED business saw rapid development, and the overall sales of the market share increased significantly. The world's first backlit 75-inch four-piece product of chip-on-glass was successfully mass-produced and delivered. Relying on chip-on-glass display process and micron-level packaging process, the Company adopts the active driving mode, and the world's first glass-based active P0.9 direct display products have the conditions for mass production. 4. Intelligence System and Innovation business The smart whole products in smart systems innovation business have four series product lines, and the sales volume increased more than twice year on year. A comprehensive management platform for smart outlets was built to boost smart finance, which has been copied, promoted and applied. It has been successfully applied in the collective purchasing projects of ICBC Beijing, BOCOM Anhui, Everbright Head Office and Huaxia Head Office. PSBC Wealth Center, Minsheng Head Office Smart Remote Banking and other benchmarking projects have been created. Smart Part built a smart park digital platform and application platform, which has been applied in some scenarios in Capital, Boda, Apartment Taupe, CITIC Pacific Plaza and other projects. 5. Smart Medical Engineering business OASIS Hospital continued to make greater efforts to build market channels, and its outpatients and discharges grew by 86%and 55% respectively year on year. The brand influence of Hefei Hospital was further enhanced, with its outpatients and growing by 131% and 123% respectively year on year. Smart medical care solutions of health technology have been implemented in Beijing, Chengdu and other cities. A number of agents have been developed for gastric cancer gene methylation detection products. Regenerative medicine cell storage has increased significantly. (IV) Key performance drivers 1. Market condition The domestic economy is gradually recovering and sees steady growth. The online economy stimulates the demand for consumer electronics products. Benefited from the 14th Five-Year Plan, the digital economy has brought opportunities to the IoT scenarios, such as IIOT, smart park and smart finance. The overseas pandemic is still severe, and the "contactless economy" characterized by home living and telecommuting continues to drive the demand for display panels. The supply of raw materials such as driver IC and chip-on-glass is tight, which affects the panel price to a certain extent. 2. The Company's operating capability The Company's "1+4+N" BG structure further promoted steadily towards the goal of IoT innovation ecology, and all layers of business showed a good momentum of coordinated development. Also, the Company enriched product categories and capacity advantages to provide customers with competitive products and services. The Company established first-launch advantages in multiple segments, improved the layout of core patents, and promoted innovation-driven development. BOE continued to improve production line operation efficiency for lean management, so that its customer quality performance continued to stay ahead. II Core Competitiveness Analysis 1. Excellent management team Since the Company implemented the strategy of "conducting overseas acquisitions and taking root in domestic markets" and entered the semiconductor display industry at a high starting point, it has developed into a leading enterprise in the industry after more than 20 years of concentrated efforts. The Company's management team has solid professional knowledge, rich industry experience, leading management level and keen strategic vision. Thanks to their efforts, the Company continued to grow stronger in the semiconductor display field, and grasped future development opportunities to firmly promote the Company's IoT transformation, and rendered a lot of achievements. In the context of the complex global political and economic situation, repeated outbreaks and the shortage of upstream resources and materials, the Company's management led the team to overcome difficulties and achieved excellent results in the overall operation in the first half of the year, creating the best half-year performance in the history of the Company. 2. Improved technology innovation system The Company always respects technology and makes constant innovations, maintaining stable resource investment in technology innovation. Through short- and medium-term technology R&D mechanism, the Company productizes technology rapidly. On this basis, through the full research and judgment of the industry development, the Company actively lays out the forward-looking technology direction and creates a dynamically iterative company-level technology innovation system to ensure that its technical strength continues to lead the industry. 3. Abundant patent and technology innovation achievements BOE continued to apply for and obtain more patents, with more than 4,500 new patent applications in the year. In particular, the invention patent applications exceeded 90% and overseas patent applications exceeded 33%; patent applications in respect of OLED, sensor, AI, big data and other fields exceeded 50%. New authorized patents amounted to 3,900, including over 1,200 overseas patents. Besides, the Company led the formulation and revision of 36 external technical standards. The IEC international standard Basic Rating and Characteristics of Flexible Display Devices and the national standard General Requirements for IoT Electronic Tag System have been approved. The jointly formed group standard Technical Specification for Foldable Displays for Microcomputer was officially released. The group standard Evaluation Specification for Artificial Intelligence Development Platform, which the Company participated in, was officially released. New breakthroughs have been made in technology application and innovation, and a number of products have been launched for the first time worldwide. BOE's Flexible OLED sliding display won the SID Best Technology Demonstration award. The world's first 55-inch 4K AMQLED display prototype of the Company won DIC AWARD International Gold Award for Display Device Innovation. Cadmium-free quantum dot top emitting device has stayed ahead in the industry in red and green efficiency, and has been published in the international authoritative journal Nano Research. The world's first chip-on-glass active P0.9 direct display product won two awards: CES 2021 Innovative Display Application of the Year and 2021 SID Best New Display Technology. 4. Leading lean management level and operational efficiency BOE continuously optimized its operation mechanism, promoted the centralization and scale of products, and further enhanced the efficiency of production lines. Chongqing Gen-8.5 LCD production line continued to miniaturize products and further improve the production level. Beijing Gen-8.5 LCD production line, Fuzhou Gen-8.5 LCD production line, Nanjing Gen-8.5 LCD production line, Chengdu Gen-8.6 LCD production line, Hefei Gen-10.5 LCD production line and Wuhan Gen-10.5 LCD production line hit a new high by chips in a single month. In particular, since the acquisition of Nanjing Gen-8.5 LCD production line and Chengdu Gen-8.6 LCD production line, we have dug deeper into the potential of production lines, grasped market opportunities and successfully turned losses into gains. The supply chain overcame the price increase of bulk commodities, and the tight supply of driver IC, polarizer, glass and other upstream materials, repeated outbreaks and other adverse factors to ensure a stable supply of all materials. Beijing Life Technology Industrial Base is in steady progress, and the renovation project of Suzhou Hospital has been basically completed. BOE established the full life cycle with customer delivery value chain as the core, connected value chain with data chain and continuously promoted the upgrading to digital operation. 5. Digital transformation BOE is in the midst of a comprehensive digital transformation, with the top goal of building "a digital, visual BOE". The Company promoted and implemented a series of digital change key measures to build an end-to-end digital management system of "agile response, efficient coordination, and full coverage", so as to stimulate organizational vitality, strengthen IT system support, revitalize data assets, and realize efficient digital operation. The Company continued to improve management efficiency and business efficiency. At present, all digital change key projects are progressing in an orderly manner. III Analysis of Core Businesses See contents under the heading “I Principal Activity of the Company in the Reporting Period” above. Year-on-year changes in key financial data: Unit: RMB Item H1 2021 H1 2020 Change (%) Main reason for change Operating revenue 107,285,327,026.00 56,751,329,065.00 89.04% Promising industry development, rise in prices of major products, release of new capacity, and changes in the consolidation scope Cost of sales 73,745,889,031.00 47,153,846,668.00 56.39% Increase in operating revenue Selling expense 2,295,502,342.00 1,450,825,484.00 58.22% Increase in operating revenue Administrative expense 4,030,423,338.00 2,517,596,650.00 60.09% Increase in operating revenue Finance costs 1,758,296,231.00 1,204,359,858.00 45.99% New project going into operation, and changes in the consolidation scope Income tax expense 2,260,425,038.00 495,807,024.00 355.91% Increase in profit R&D expense 5,929,786,929.00 3,924,151,095.00 51.11% Efforts to strengthen R&D Net cash generated from/used in operating activities 32,745,188,339.00 9,716,675,534.00 237.00% Bigger business size with higher operating profit Net cash generated from/used in investing activities -21,314,532,961.00 -14,576,688,249.00 -- Increase in construction expenditures for new projects and investments inwealth management instruments Net cash generated from/used in financing activities -12,633,974,318.00 5,848,629,767.00 -316.02% Increase in expenditures on repurchase of non-controlling interests, and decrease in renewable corporate bonds issued Net increase in cash and cash equivalents -1,723,109,268.00 1,336,418,453.00 -228.93% N/A Material changes to the profit structure or sources of the Company in the Reporting Period: □ Applicable √ Not applicable No such changes in the Reporting Period. Breakdown of operating revenue: Unit: RMB Item H1 2021 H1 2020 Change (%) Operating revenue As % of total operating revenue (%) Operating revenue As % of total operating revenue (%) Total 107,285,327,026.00 100% 56,751,329,065.00 100% 89.04% By operating division Display business 104,673,381,879.00 97.57% 55,285,611,834.00 97.42% 89.33% Intelligence System and Innovation business 710,847,862.00 0.66% 454,883,859.00 0.80% 56.27% Smart Medical Engineering business 863,981,458.00 0.81% 704,620,573.00 1.24% 22.62% MLED business 273,171,561.00 0.25% 0.00 0.00% — Sensor and Solution business 79,166,852.00 0.07% 62,999,853.00 0.11% 25.66% Others and offset 684,777,414.00 0.64% 243,212,946.00 0.43% 181.55% By product category Display business 104,673,381,879.00 97.57% 55,285,611,834.00 97.42% 89.33% Intelligence System and Innovation business 710,847,862.00 0.66% 454,883,859.00 0.80% 56.27% Smart Medical Engineering business 863,981,458.00 0.81% 704,620,573.00 1.24% 22.62% MLED business 273,171,561.00 0.25% 0.00 0.00% — Sensor and Solution business 79,166,852.00 0.07% 62,999,853.00 0.11% 25.66% Others and offset 684,777,414.00 0.64% 243,212,946.00 0.43% 181.55% By operating segment Mainland China 49,456,134,518.00 46.10% 27,827,584,705.00 49.03% 77.72% Other regions in Asia 44,033,957,730.00 41.04% 23,316,786,200.00 41.09% 88.85% Europe 3,602,378,360.00 3.36% 2,114,536,683.00 3.73% 70.36% America 10,094,599,107.00 9.41% 3,384,364,128.00 5.96% 198.27% Other regions 98,257,311.00 0.09% 108,057,349.00 0.19% -9.07% Note: In order to protect the Company’s core competitiveness and investors’ interests, as well as avoid the leakage of business secrets, cost of sales is only presented with respect to the industry segment to which the Company belongs in the table below. Operating division, product category or operating segment contributing over 10% of operating revenue or operating profit: √ Applicable □ Not applicable Unit: RMB Item Operating revenue Cost of sales Gross profit margin YoY change in operating revenue (%) YoY change in cost of sales (%) YoY change in gross profit margin (%) By operating division Display business 104,673,381,879.00 72,756,787,083.00 30.49% 89.33% 55.59% 15.07% By product category Display business 104,673,381,879.00 72,756,787,083.00 30.49% 89.33% 55.59% 15.07% By operating segment Mainland China 49,456,134,518.00 35,059,330,192.00 29.11% 77.72% 51.39% 12.33% Other regions in Asia 44,033,957,730.00 28,963,326,982.00 34.23% 88.85% 50.91% 16.54% Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period: □ Applicable√ Not applicable Reason for any over 30% YoY movements in the data above √ Applicable □ Not applicable The domestic economy is gradually recovering and sees steady growth. The online economy stimulates the demand for consumer electronics products. Benefited from the 14th Five-Year Plan, digital economy has brought opportunities to the IoT scenarios, such as IIOT, smart park and smart finance. The overseas pandemic is still severe, and the "contactless economy" characterized by home living and telecommuting continues to drive the demand for display panels. The supply of raw materials such as driver IC and chip-on-glass is tight, which affects the panel price to a certain extent. Sales of display devices increased 18% year on year, and sales area increased 45% year on year. 3C product sales increased by 38% year on year. The sales area of innovative application devices increased by 66% year on year. The revenue increased significantly. IV Analysis of Non-Core Businesses √ Applicable □ Not applicable Unit: RMB Item Amount As % of profit before taxation Source/Reason Recurrent or not Return on investment 25,936,741.00 0.14% N/A Not Gain/loss on changes in fair value 37,887,125.00 0.20% N/A Not Asset impairments -2,307,446,795.00 -12.34% Amount provided for inventory falling price impairment according to market conditions Not Non-operating income 48,115,802.00 0.26% N/A Not Non-operating expense 21,548,141.00 0.12% N/A Not V Analysis of Assets and Liabilities 1. Material Changes in Asset Composition Unit: RMB Item 30 June 2021 31 December 2020 Change in percentage (%) Reason for material change Amount As % of total assets Amount As % of total assets Monetary assets 71,388,786,223.00 16.39% 73,694,296,095.00 17.37% -0.98% N/A Accounts receivable 36,105,667,536.00 8.29% 22,969,140,355.00 5.41% 2.88% Increase in operating revenue, and new production line project going into operation Contract assets 42,346,704.00 0.01% 49,897,395.00 0.01% 0.00% N/A Inventories 23,564,150,328.00 5.41% 17,875,454,490.00 4.21% 1.20% Increase in operating revenue, and new production line project going into operation Investment property 1,199,068,417.00 0.28% 1,196,168,511.00 0.28% 0.00% N/A Long-term equity investments 3,455,420,187.00 0.79% 3,693,170,224.00 0.87% -0.08% N/A Fixed assets 224,483,239,199.00 51.55% 224,866,586,069.00 53.00% -1.45% N/A Construction in progress 42,790,191,160.00 9.83% 42,575,849,952.00 10.04% -0.21% N/A Right-of-use assets 599,237,772.00 0.14% 0.00 0.00% 0.14% N/A Short-term borrowings 5,893,887,382.00 1.35% 8,599,569,471.00 2.03% -0.68% N/A Contract liabilities 3,513,356,959.00 0.81% 3,440,720,535.00 0.81% 0.00% N/A Long-term borrowings 132,226,258,609.00 30.36% 132,452,767,135.00 31.22% -0.86% N/A Lease liabilities 547,150,126.00 0.13% 0.00 0.00% 0.13% N/A 2. Major Assets Overseas □ Applicable√ Not applicable 3. Assets and Liabilities at Fair Value √ Applicable □ Not applicable Unit: RMB Item Beginning amount Gain/loss on fair-value changes in the Reporting Period Cumulative fair-value changes charged to equity Impairment allowance for the Reporting Period Purchased in the Reporting Period Sold in the Reporting Period Other changes Ending amount Financial assets 1. Held-for-trading financial assets (excluding derivative financial assets) 4,367,201,833.00 37,887,125.00 0.00 0.00 11,182,802,114.00 12,286,800,000.00 0.00 3,261,079,527.00 2.Derivative financial assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3. Investments in other debt obligations 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4. Investments in other equity instruments 533,645,423.00 0.00 -175,069,302.00 0.00 36,625,599.00 0.00 0.00 543,517,479.00 Subtotal of financial assets 4,900,847,256.00 37,887,125.00 -175,069,302.00 0.00 11,219,427,713.00 12,286,800,000.00 0.00 3,804,597,006.00 Investment property 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Productive living 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 assets Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total of the above 4,900,847,256.00 37,887,125.00 -175,069,302.00 0.00 11,219,427,713.00 12,286,800,000.00 （未完）  |