[年报]京东方Ｂ(200725):2021年年度报告（英文版）
原标题:京东方Ｂ:2021年年度报告（英文版） ANNUAL REPORT 2021 C:\Users\10157956\Desktop\BOE LOGO\BOE灰.jpg 说明: {536FCC60-55B9-4119-80C6-BAEB397C0202} March 2022 Driving High-Quality Development with Innovation as the Engine Chen Yanshun, Chairman of BOE Time flies, and a new year has once again begun. On behalf of all staff at BOE, I would like to express our most sincere gratitude and heartfelt respect to all our shareholders who have been following, accompanying and supporting us along this journey. For BOE, the year 2021 witnessed both progress and accomplishments. In the face of the ever-changing international political and economic situation and unpredictable industrial environment, after striving with resolute fortitude, BOE successfully achieved the best business performance since the Company’s incorporation. As a result, our annual revenue exceeded RMB200 billion for the first time, reaching RMB219.31 billion, an increase of 61.79% year-on-year, with net profit attributable to the Company as the parent reaching RMB25.831 billion, an increase of 412.96% year-on-year. In terms of mainstream semiconductor Display Devices business, our market share in the five major application areas of mobile phones, tablet devices, laptop PCs, monitors and televisions continued to rank first in the world. In addition, in December we achieved the milestone of successfully shipping 10 million flexible AMOLED products in a single month. Meanwhile, our IoT Innovation business also continued to make breakthroughs, with annual revenue exceeding RMB28.379 billion, a significant year-on-year increase, with outstanding development achievements in innovative devices, smart terminals, system solutions, Intelligent Car Networking, Smart Retail, Industrial IoT and other areas. Finally, in 2021, BOE was awarded the Fourth China Quality Award and ranked among the top 500 global brands of Brand Finance for the first time, further enhancing its brand reputation and influence. Since its incorporation, BOE has adhered to the business philosophy of innovation-driven high-quality development, and continued to stimulate organizational vitality through innovation, so as to build and deepen its global competitive advantage. These achievements could not have been made without our unwavering “three insistences” in innovation. Insisting on technology and product innovation to serve the public with technology. Over the years, through respecting technology, BOE has continued to maintain high investment in R&D. In 2021, the Company’s R&D expenses exceeded RMB10 billion for the first time, an increase of 31.72% year-on-year. BOE has also insisted on the global patent layout strategy of “quality-orientation while developing quantity and quality simultaneously.” We have ranked among the top 10 in international patent applications for six consecutive years, and among the top 20 global organizations granted US patents for four consecutive years, at number 11 in 2021. Last year, we officially launched the first technology brand in China’s semiconductor display industry, which not only marks a material milestone in the development of China’s semiconductor display industry, but also ushers in a new era of “technology + branding.” This is expected to lead the industry, customers and consumers into a new “visual world” that is brilliant, as well as perceptible and tangible. Insisting on management innovation to optimize business operations by digital means. Digital technology is rapidly accelerating, and has become a key technological force in driving economic and social development. Based on the strategic need to support the rapid development of the enterprise by digital means, BOE has integrated internal resources and created a special professional organization to promote the Company’s digital transformation and ensure the effective implementation of the digital transformation work, while also continuously investing resources in digitalization at the Company level. Aiming at the construction of “a digital, visual BOE,” we vigorously improve our digital management level and spare no effort to promote our efficient digital operation by building an end-to-end procedure system, optimizing operation mechanism, strengthening IT system support, and revitalizing data assets. Insisting on model innovation to create an industry model of value creation. Throughout its development, BOE has been actively exploring the innovation and optimization of business model and corporate structure, and is committed to maximizing operational efficiency with the most effective development model for our feedback shareholders and society as a whole. In 2021, for the Internet of Things (IoT) era, we proposed a development strategy of the “Screen-Connected IoT”. This signifies our commitment to maximize our core competencies accumulated in the semiconductor display field over the years, seize the industrial opportunity of the ubiquitous presence of screens in the digital era, and continue to enhance our value creation capability by integrating additional functions into screens, placing the screen in more scenarios, and deriving more shipping forms of screens while continuously empowering thousands of scenarios. Based on the “Screen-Connected IoT” strategy, we have also innovated the “1+4+N” development structure, the significance of which is as follows: “1” stand for the mother ship platform with the capabilities and resources of Display Devices business as the core, which is the source and origin of BOE’s transformation and development; “4” indicates the four cruiser layers of IoT innovation, namely Sensor and Solution business, the MLED business and the Smart Medical Engineering business, which are also the four main fronts of our IoT transformation; and “N” is the landing ship layer based on the “1+4” core technology products, namely the subdivided application scenarios of IoT that we are continuously exploring and cultivating, along with the specific focus of BOE’s IoT transformation development. Based on the “1+4+N” development structure, we will continue to promote the implementation of the “Screen-Connected IoT” development strategy, enhance our value creation capabilities, and continuously achieve high-quality development at our company. BOE’s vision is to be the most respected company on earth, including becoming “the world leader in semiconductor display industry” and “a global leading player in related smart systems products and services”. We know full well that realizing this great vision requires a process and generations of BOE employees to continue forging ahead and accumulating experience. After two decades of professional cultivation, we have developed into a leader in the semiconductor display industry. In the future, we will actively play a leading role in the industry chain, continue to practice leading responsibilities, and spare no effort to promote the transformation of the display industry from cyclical to growth-oriented, thereby leading the healthy development of the industry. We have made proper arrangements in Mini/Micro LED, Micro OLED, quantum dot and light field display technologies, and will continue to guarantee resources investment to create a 30-year leading technology system, while engaging in the construction of “industrial ecological toughness,” so to ensure that the industry chain remains safe and controllable. We will also comprehensively compound BOE’s systemic competitive advantages in the global semiconductor display field, consolidate our industry position, and continuously enhance our influence in the industry. In the current development of the IoT industry, the fourth wave of the industrial revolution is sweeping across the globe with real economy+IoT becoming a significant trend, providing us with broad market space. Whiling leading the semiconductor display industry into a new era, BOE has determined IoT transformation as its strategic direction, and will firmly implement it. Focusing on digital and intelligent transformation, we will continue to drive integration across the business ecosystem, build an intelligent manufacturing network across the entire business chain, and drive innovation in new paths such as intelligent systems, intelligent medical engineering, and Industrial Internet. By accelerating the integration of software and hardware and system integration capabilities, continuously optimizing business models and establishing a well-suited operation system, we are well positioned to build a series of benchmark projects to set a model for the industry. With the development strategy of “Screen of Things”, we will beef up the in-depth integration of “display technology+IoT application”, i.e., to create more scenarios for display, build more screen functions, create more business forms, and empower more and more businesses and industries. We will strengthen our capability in each specialized segment scenario, significantly increase the performance contribution of the IoT Innovation business to the Company, and resolutely work toward our goal of becoming a global leading player in related smart systems products and services, with an aim to drive high-quality development of BOE and even the digital economy. I firmly believe that BOE’s future will indeed be even more glorious! At the same time, we could not have made such achievements without the long-term trust and support of our shareholders. To share the fruits of development with our investors, BOE attaches great importance to the return of investors, in terms of both dividends and repos, and continuously provides cash dividends. Over the past three years, we have adhered to taking no less than 30% of the net profit attributable to the Company as the parent for shareholder dividends. For 2021, our Board of Directors proposed a dividend of RMB2.1 for every 10 shares, with total dividends expected to be RMB7,963 million, accounting for 30.83% of net profit attributable to the Company as the parent. At the same time, we completed RMB2,428 million of share repos, with the total shareholder returns expected to account for 40.22% of net profit attributable to the Company as the parent. Looking ahead to 2022, as this era of change will continue accelerating and the global economic recovery faces uncertainty, both enterprises and individuals will find themselves in an increasingly complex and unpredictable world. Only with stamina and diligence can one make progress. In the face of challenges and opportunities, we at BOE will continue to insist on our innovation-driven concept, promote our “Screen-Connected IoT” strategy to achieve immense results and benefits, and promote the Company to achieve long-term stable and high-quality development. In other words, we will keep our heads in the clouds, but our feet on the ground. We look forward to the continuous collaboration and unwavering support of investors as we continue down our road of development. Together, let’s make progress and create a bright future for everyone. 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 except for the following attended in person the Board meeting for the review of this Report and its summary. Name Office title Reason for not attending the meeting in person Proxy entrusted to attend the meeting Song Jie Director Due to work Sun Yun Any plans for the future and other forward-looking statements mentioned in this Report shall NOT be considered as absolute promises of the Company to investors. Investors, among others, shall be sufficiently aware of the risk and shall differentiate between plans and forecasts and promises. The Board has approved a final dividend plan for the Reporting Period. Based on 37,917,560,430 shares (the total share capital minus the shares in the share repurchase account), a cash dividend of RMB2.10 (tax inclusive) per 10 shares is to be distributed to all the shareholders, with no bonus issue from either profit or capital reserves. This Report has been prepared as per the Chinese Accounting Standards for Business Enterprises and other relevant regulations. KPMG Huazhen LLP has issued an independent auditor’s report with unmodified unqualified opinion for the Company. 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 ........................................................... 7 Part II Corporate Information and Key Financial Information ................................................. 12 Part III Management Discussion and Analysis ............................................................................. 18 Part IV Corporate Governance ...................................................................................................... 50 Part V Environmental and Social Responsibility .......................................................................... 89 Part VI Significant Events ............................................................................................................... 95 Part VII Share Changes and Shareholder Information ............................................................. 114 Part VIII Preferred Shares ............................................................................................................ 129 Part IX Bonds ................................................................................................................................ 130 Part X Financial Statements ......................................................................................................... 136 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); (II) The original of the Independent Auditor’s Report sealed by the CPA firm and signed and sealed by the certified public accountants; (III) The originals of all the documents and announcements that the Company disclosed on www.cninfo.com.cn during the Reporting Period; and (IV) This Report disclosed in other securities markets. 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: 30 March 2022 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 SZSE, the Stock Exchange The Shenzhen Stock Exchange The Stock Listing Rules The Stock Listing Rules of the Shenzhen Stock Exchange (Revised in 2020) The Compliance in Operation of Main Board Listed Companies Guideline No. 1 of the Shenzhen Stock Exchange Regarding Self-disciplinary Activities and Regulation of Listed Companies—Compliance in Operation of Main Board Listed Companies The Articles of Association The Articles of Association of BOE Technology Group Co., Ltd. The Company Law The Company Law of the People’s Republic of China The Securities Law The Securities Law of the People’s Republic of China KPMG KPMG Huazhen LLP OLED Organic Light Emitting Diode LED Light-emitting Diode MLED Mini/Micro LED TFT-LCD Thin Film Transistor Liquid Crystal Display AMOLED Active-matrix Organic Light Emitting Diode Oxide A compound of oxygen and another chemical element Microdisplay Microdisplay technology IoT Internet of Things X-ray A type of radiation that can pass through objects that are not transparent and make it possible to see inside them Mini/Micro LED Submillimeter/Micro Light Emitting Diode IEC International Electrotechnical Commission EPQ A drive technology HSR A frequency multiplication technology α-Si Amorphous Silicon 1G1D A display screen design form BD Cell BOE Dual Cell BP Back Plate FHD Full High Definition at 1920*1080 EPD Electrophoretic Display P0.9 Point 0.9mm COG Chip (Mini LED) On Glass SMD Surface Mount Technology COB Chip (Mini LED) On Board (PCB) BT2020 HD digital video color standards issued by ITU in 2012 DCI-P3 Digital Cinema Initiatives - Protocol 3, wide color gamut standards released by the American film industry, which are widely used color standards for digital movies Adobe RGB Color gamut standards issued by Adobe, and RGB stands for red, green and blue BLU Backlight Unit dB Decibel AM Active Matrix MNT Monitor, generally referring to the 27~34 inch model MNT Gaming Monitor Gaming ARM Advanced RISC Machines, a 32 bits RISC processor structure, widely used in embedded system design sRGB standard Red Green Blue, one of the earliest color gamut standards NTSC Color gamut standards issued by the National Television Standards Committee of America, usually used to test the color range that a TV screen is able to cover AIoT Artificial Intelligence & Internet of Things Pitch Distance between two points mm Millimeter nit Unit for brightness 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. 京东方 Company name in English (if any) BOE TECHNOLOGY GROUP CO., LTD. Abbr. (if any) BOE Legal representative Chen Yanshun Registered address 10 Jiuxianqiao Road, Chaoyang District, Beijing, P.R.China Zip code 100015 Past changes of registered address N/A Office address 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China Zip code 100176 Company website www.boe.com Email address [email protected] II Contact Information Item Board Secretary Securities Representative Name Liu Hongfeng - Office Address 12 Xihuan Middle Road, Beijing Economic-Technological Development Area, P.R.China - Tel. 010-64318888 ext. - Fax 010-64366264 - E-mail address [email protected] - III Media for Information Disclosure and Place where this Report Is Lodged Stock exchange website where this Report is disclosed http://www.szse.cn Media and website where this Report is disclosed China Securities Journal, Shanghai Securities News, Securities Times, Ta Kung Pao (HK), http://www.cninfo.com.cn/ Place where this Report is lodged Board Secretary’s Office IV Changes to Company Registered Information Unified social credit code No change Change to principal activity of the Company since going public (if any) No change Every change of controlling shareholder since incorporation (if any) No change V Other Information The independent audit firm hired by the Company: Name KPMG Huazhen LLP Office address 8/F, East Tower 2, Oriental Plaza, 1 East Chang An Avenue, Dongcheng District, Beijing Accountants writing signatures Zhang Huan and Chai Jing The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period: √ Applicable □ Not applicable Name Office address Representatives Supervision period China Securities Co., Ltd. Room 2203, North Tower, Shanghai Securities Plaza, 528 Pudong South Road, Pudong New Area, Shanghai Han Yong and Liao Ling 20 August 2021-31 December 2022 Hua Ying Securities Company Limited Rooms 01-06, Wuxi Finance Center, 10 Jinrong First Road, Wuxi Economic Development Zone Wang Qian and Wu Yi 20 August 2021-31 December 2022 The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period: □ Applicable √ Not applicable VI Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below. √ Yes □ No Reason for retrospective restatement: Change of accounting policy. Item 2021 2020 2021-over-2020 change (%) 2019 Before Restated Restated Before Restated Operating revenue (RMB) 219,309,799,505.00 135,552,569,729.00 135,552,569,729.00 61.79% 116,059,590,164.00 116,059,590,164.00 Net profit attributable to the listed company’s shareholders (RMB) 25,830,935,500.00 5,035,627,952.00 5,035,627,952.00 412.96% 1,918,643,871.00 1,918,643,871.00 Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) 23,937,539,752.00 2,670,454,834.00 2,670,454,834.00 796.38% -1,166,793,317.00 -1,166,793,317.00 Net cash generated from/used in operating activities (RMB) 62,270,556,324.00 39,251,773,458.00 39,251,773,458.00 58.64% 26,083,079,194.00 26,083,079,194.00 Basic earnings per share (RMB/share) 0.71 0.13 0.13 446.15% 0.05 0.05 Diluted earnings per share (RMB/share) 0.71 0.13 0.13 446.15% 0.05 0.05 Weighted average return on equity (%) 23.84% 5.15% 5.15% 18.69% 2.16% 2.16% Item 31 December 2021 31 December 2020 Change of 31 December 2021 over 31 December 2020 (%) 31 December 2019 Before Restated Restated Before Restated Total assets (RMB) 449,726,980,355.00 424,256,806,331.00 424,256,806,331.00 6.00% 340,412,203,308.00 340,412,203,308.00 Equity attributable to the listed company’s shareholders (RMB) 142,925,547,899.00 103,276,766,835.00 103,276,766,835.00 38.39% 95,058,129,055.00 95,058,129,055.00 Reason for accounting policy change and correction of accounting error: In accordance with the Q&A on the implementation of fixed asset repair charge issued by the Ministry of Finance, the Group recorded routine repair charges of fixed assets that do not meet the subsequent expense conditions after the capitalization of fixed assets in current profit or loss or the cost of underlying assets as incurred in accordance with the objects to be benefited, and treated such repair charges related to the production and processing of inventories in accordance with the principles for determining the cost of inventories. The Group has changed the relevant accounting policy using the retrospective adjustment method. The above change in accounting policy has no impact on the various items of major accounting data and financial indicators for 2020. Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional gains and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there was uncertainty about the Company’s ability to continue as a going concern. □ Yes √ No Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional gains and losses was negative. □ Yes √ No VII 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 Equity under CAS and IFRS □ Applicable √ Not applicable No difference for the Reporting Period. 2. Net Profit and Equity under CAS and Foreign Accounting Standards □ Applicable √ Not applicable No difference for the Reporting Period. VIII Key Financial Information by Quarter Unit: RMB Item Q1 Q2 Q3 Q4 Operating revenue 49,655,379,519.00 57,629,947,507.00 55,993,022,701.00 56,031,449,778.00 Net profit attributable to the listed company’s shareholders 5,182,037,171.00 7,579,987,797.00 7,253,390,635.00 5,815,519,897.00 Net profit attributable to the listed company’s shareholders before exceptional gains and losses 4,484,934,082.00 7,176,682,690.00 6,937,108,280.00 5,338,814,700.00 Net cash generated from/used in operating activities 14,522,832,708.00 18,222,355,631.00 12,006,193,144.00 17,519,174,841.00 Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what have been disclosed in the Company’s quarterly or interim reports. □ Yes √ No IX Exceptional Gains and Losses √ Applicable □ Not applicable Unit: RMB Item 2021 2020 2019 Note Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 174,174,600.00 373,432,171.00 20,340,136.00 N/A Tax rebates, reductions and exemptions given with ultra vires approval or in lack of official approval documents 0.00 0.00 0.00 N/A Government subsidies charged to current profit or loss (exclusive of government subsidies consistently given in the Company’s ordinary course of business at fixed quotas or amounts as per governmental policies or standards) 2,077,537,306.00 2,332,107,692.00 2,640,634,861.00 N/A Capital occupation charges on non-financial enterprises that are charged to current profit or loss 0.00 0.00 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 0.00 0.00 N/A Gain or loss on non-monetary asset swaps 0.00 0.00 0.00 N/A Gain or loss on assets entrusted to other entities for investment or management 0.00 0.00 0.00 N/A Allowance for asset impairments due to acts of God such as natural disasters 0.00 0.00 0.00 N/A Gain or loss on debt restructuring 0.00 0.00 0.00 N/A Restructuring costs in staff arrangement, integration, etc. 0.00 0.00 0.00 N/A Gain or loss on the over-fair value amount as a result of transactions with distinctly unfair prices 0.00 0.00 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 0.00 0.00 N/A Gain or loss on contingencies that do not arise in the Company’s ordinary course of business 0.00 0.00 0.00 N/A Gain or loss on fair-value changes in held-for-trading financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary 121,656,142.00 82,698,484.00 112,668,244.00 N/A course of business) Reversed portions of impairment allowances for receivables which are tested individually for impairment 20,304,301.00 15,447,820.00 1,498,805.00 N/A Gain or loss on loan entrustments 0.00 0.00 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 0.00 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 0.00 0.00 N/A Income from charges on entrusted management 0.00 0.00 0.00 N/A Non-operating income and expense other than the above 90,587,512.00 65,391,368.00 96,799,305.00 N/A Other gains and losses that meet the definition of exceptional gain/loss 0.00 0.00 795,126,980.00 N/A Less: Income tax effects 191,362,477.00 185,966,533.00 285,904,312.00 N/A Non-controlling interests effects (net of tax) 399,501,636.00 317,937,884.00 295,726,831.00 N/A Total 1,893,395,748.00 2,365,173,118.00 3,085,437,188.00 -- Particulars about other gains and losses that meet the definition of exceptional gain/loss: □ Applicable √ Not applicable No such cases for the Reporting Period. Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item 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 Industry Overview for the Reporting Period In 2021, the prosperity of the semiconductor display industry remained at a high level. In the first half of the year, as telecommuting, telemedicine, online education, online entertainment and other home economy stimulated the continued growth of the demand for display products, and with the lack of cores and materials, capacity shortages and other factors, the prosperity of the semiconductor display industry continued to improve. Since the beginning of the third quarter, with a slowdown in the demand for display products stimulated by the global home economy, as well as the shipping congestion, rising raw material prices and logistics costs, the downstream willingness to stock up was affected, TV products saw a structural adjustment, while the market quotation of was relatively stable by virtue of the demand from high-end business and supply concentration. In terms of industrial development, semiconductor display technology continued to show diversified development trends, OLED and small spacing LED were poised to become the new growth pole of the industry, with OLED in smart phones, smart watches and other small-size areas to further penetrate, and small spacing LED accelerating the commercialization process under the help of brand enterprises. The "14th Five-Year Plan" included "accelerating digital development and building a digital China" as a separate chapter, making it clear that China has entered an era of digital economy represented by massive data, advanced computing power and algorithms. IoT is one of the important infrastructures in the digital economy era. 5G, artificial intelligence, edge computing, big data and other technology applications are accelerating iterative development, speeding up the construction of the ecology of the Internet of Everything (IoE) and promoting the rapid development of demand-side scenarios. Currently, the development of demand-side scenarios is dominated by exploratory implementation in the consumer services market, such as smart screens, smart whole products, smart homes and other smart terminal products, which have achieved first-mover advantages supported by mature technology and growing demand for intelligence, with product shipments and market scale continuing to expand. As the technology gradually matures and the potential for integration applications is released, there will be a large number of IoT technologies integrated into industrial, agricultural, transportation, education, medical and other scenarios, advancing the rapid development of the industrial IoT, Intelligent Car Networking, smart finance, smart industrial parks, smart energy, smart healthcare and other IoT application industries. At the same time, the 14th Five-Year Plan also clarified that it is necessary to comprehensively promote the construction of a healthy China and provide people with health services on all fronts, further promoting the Internet medical platform as a trend; the application of cloud computing, IoT and big data technology has accelerated the implementation of health management application scenarios, which, together with the pandemic, has facilitated the closed-loop management of online and offline services and the integration of "drug + medicine + insurance + healthcare". As aging continues to intensify, active response to aging has become a national strategy, ushering in a golden period of development for the massive health industry. II Principal Activity of the Company in the Reporting Period BOE Technology Group Co., Ltd. is an loT company providing intelligent interface products and professional services for information interaction and human health. After years of professional cultivation, the Company has developed into a global leader in the field of semiconductor display and a global innovative enterprise in the field of the Internet of Things. Based on a deep understanding of the intrinsic laws of the market and practical exploration, and in order to further enhance the Company’s value creation capability, BOE has proposed the development strategy of " Screen-Connected IoT " based on its core genes and capabilities, seizing the ubiquitous growth opportunities of "screen", and fully leveraging its core advantage of "screen" to integrate screens into more market segments and application scenarios by integrating more functions, inserting more scenarios, and deriving more forms. By doing so, BOE will realize the user perception revolution of "screen as terminal" in the digital era, build an industrial ecology of "screen as platform and screen as system", and reshape the value growth model. At the same time, based on the strategic design of " Screen-Connected IoT ", BOE will bring a new connotation to the "1+4+N" development structure under the new development pattern. "1" is the mother ship platform with the capabilities and resources of Display Devices business as the core, which is the core capacity and quality resources accumulated by BOE, as well as the source and origin of the Company's transformation and development. "4" is the cruiser layers, which is a high-potential channel and direction of development selected based on BOE's core competence and value chain extension, as well as the four main fronts of the Company's IoT transformation, namely the IoT Innovation business, the Sensor and Solution business, the MLED business and the Smart Medical Engineering business. "N" is the landing ship layer based on the "1+4" core technology products, which are the subdivided application scenarios of IoT that are continuously explored and cultivated by BOE, as well as the specific focus of the Company's IoT transformation development. The Company's core business includes: 1. Display Devices business The Display Devices business offers integrated design and manufacturing services for devices, and is committed to providing interface devices applying TFT-LCD, AMOLED, Oxide, Microdisplay and other technologies, focusing on providing 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. 2. IoT Innovation business The IoT Innovation business offers integrated design and manufacturing services for system solutions, and provides customers with competitive TVs, monitors, laptops, tablets, low-power, IoT, 3D display and other smart terminal products. Backed by AI and big data, it focuses on products and services combining hardware and software, and provides smart finance, smart parks, smart government, smart transportation, urban light space, smart energy The company also provides total solutions in the field of IoT segments such as smart finance, smart industrial parks, smart government affairs, smart transportation, city light space, smart energy and other IoT solutions, as well as overall solutions for areas such as whole and large-size products. 3. Sensor and Solution business The Sensor and Solution business offers integrated design and manufacturing services for system solutions, focuses on medical biological detection, transportation and construction, consumer electronics, microwave communications, industrial sensing and other fields, and provides customers with integrated design and manufacturing of sensor devices and system solution services, with specific products and solutions including flat panel X-ray detectors (FPXD), digital microfluidic chips, PDLC glass, fingerprint identification systems and industrial sensors. 4. 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. 5. Smart Medical Engineering business The Smart Medical Engineering business adopts the professional 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 major human-centered services of health management, health technology, digital hospital, and technology services. It connects testing equipment, healthcare workers and customers through the health IoT platform to build a smart health management ecosystem where customers enjoy health services including prevention, treatment, therapy and nursing. III 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 global semiconductor display 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 （未完）  |