[中报]京东方Ｂ(200725):2023年半年度报告（英文版）
原标题:京东方Ｂ:2023年半年度报告（英文版） 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. Gao Wenbao, President, Ms. Yang Xiaoping, Chief Financial Officer, and Mr. Teng Jiao, 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 Company’s directors have attended the Board meeting for the review of this Report and its summary. 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. The Company has no interim dividend plan, either in the form of cash or stock. 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 ...................................................................................................... 27 Part V Environmental and Social Responsibility .......................................................................... 29 Part VI Significant Events ............................................................................................................... 34 Part VII Share Changes and Shareholder Information ............................................................... 46 Part VIII Preferred Shares .............................................................................................................. 54 Part IX Bonds ................................................................................................................................... 55 Part X Financial Statements ........................................................................................................... 58 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: 25 August 2023 Definitions
Part II Corporate Information and Key Financial Information I Corporate 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, email address and other contact information of the Company in the Reporting Period. ? Applicable □ Not applicable
periodic reports in the Reporting Period. □ Applicable ? Not applicable The website of the stock exchange, the media and other website where the Company’s periodic reports are disclosed, as well as the place for keeping such reports did not change in the Reporting Period. The said information can be found in the 2022 Annual Report. 3. Other Information Indicate by tick mark whether any change occurred to other information in the Reporting Period. □ Applicable ? Not applicable 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: Change of accounting policy.
The said changes of accounting policies have no significant impact on the Company’s financial condition and operating results. 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
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 Principal Operations of the Company in the Reporting Period (I) About the Company In constant pursuit of excellence, BOE Technology Group Co., Ltd. is an innovative IoT company dedicated to providing intelligent interface products and professional services for information interaction and human health. With the vision “To Be the Most Respected Company on Earth”, BOE has always been adhering to the mission of “Change Life with Heart”. Upholding the core values of integrity & reliability, dedication to customers, being people-oriented, openness and innovation, as well as the business philosophy of doing the right thing, innovation and progress seeking, it has been forging ahead through innovation. Upon three decades of hard work, BOE has grown into a world leader in the semiconductor display industry and a global innovative company in the IoT sector. At present, it has a significant number of manufacturing bases in Beijing, Hefei, Chengdu, Chongqing, Fuzhou, Mianyang, Wuhan, Kunming, Ordos, etc., with subsidiaries in the United States, Germany, Japan, South Korea, Singapore, India, Brazil, the United Arab Emirates and other countries and regions, as well as a service system that covers the major regions of the world, such as Europe, Americas, Asia, and Africa. In March 2023, BOE was selected as one of the “Demonstration World-Class Enterprises”. In full compliance with the requirements of “excellent products, outstanding brand, leading innovation and modern governance” for a world-class enterprise, it is committed to making good products, creating high value, and providing better products and services for customers with continuous innovation in the IoT era. (II) About the Company’s principal operations 1. The 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, Microdisplay and other technologies, focusing on providing customers with high-quality display devices for smartphones, tablet PCs, laptops, monitors, TVs, vehicles, VR/AR devices, etc. 2. The IoT Innovation business The IoT Innovation business offers integrated design and manufacturing services for system solutions, and provides customers with competitive smart terminal products for TVs, monitors, laptops, tablets, low-power devices, IoT, 3D display, etc. Backed by AI and big data technologies, it focuses on products and services combining hardware and software, providing integrated IoT solutions for segments including smart industrial parks, smart finance, etc. 3. The Sensor business The Sensor and Solution business offers integrated design and manufacturing services for glass- and silicon-based system solutions, focuses on medical imaging, smart display windows, innovative glass-based sensor devices, industrial applications, consumer electronics, automotive electronics and other fields, and provides customers with products and solutions including back plates for flat panel X-ray detectors (FPXD), intelligent PDLC windows and PDLC system solutions, industrial sensors and solutions, and MEMS sensors, among others. 4. The MLED business MLED business renders MLED backlight products with high reliability and high partition of dimming for LCD of TVs, monitors, notebooks, vehicles, VR/AR 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. The Smart Medical Engineering business The Smart Medical Engineering business adopts the professional service model that integrates technologies and medical services in an innovative manner to provide people-oriented health services for households, communities and hospitals. It provides a closed loop of through-life health services with health management as the core, medical terminals as the traction, and digital hospitals and recreational communities as the support. It connects testing equipment, healthcare workers and customers through the smart health management ecosystem where customers enjoy professional health services including prevention, treatment, therapy and nursing. 6. The “N” business With a specific focus on the "N" business, the Company provides hardware and software integrated system solutions for different segments, including smart vehicle connection, industrial IoT, digital art, etc., which can provide customers with all-dimensional, one- stop and smart new experience under IoT scenarios. For example, in terms of smart vehicle connection, the business integrates DMS, gesture recognition, touch feedback, naked-eye 3D and other cutting-edge functions, focuses on the intelligent cockpit "HERO" innovative application scenarios that include four dimensions of health, entertainment, leisure, and office, and provides customers with professional integrated solutions, which can bring a new and more intelligent driving experience. The industrial IoT business provides enterprises with solutions, products, and services like smart production, smart factory, and cloud services. Relying on its self-developed industrial Internet platform, it helps realise refined operation and management and achieve cost reduction and efficiency enhancement from all procedures of design, supply, production, and sales, offering all-dimensional, one-stop and smart industrial IoT solutions to customers and empowering customers in their digital transformation. In the field of digital artworks, the business adheres to "culture + technology" cross-field integration and innovation, launches the "one million digital culture experience scenario programme" around International Standard H.629.1 for digital art display, and join hands with partners at the content-, technology- and application-ends, so as to empower culture with display products and solutions with more functions and forms and better experience. II Core Competitiveness Analysis 1. Clear development strategy and sustainable value growth system Based on years of practical exploration in the semiconductor display and Internet of Things (IoT) industry, the Company has proposed the strategy of "Empower IoT with display" that is suitable for the transformation and development of its IoT. It regards "screen" as an important port for human information interaction and the first channel that shows the integration of digital and real world in the IoT era, seizing the ubiquitous growth opportunities of "screen", and fully leveraging its core advantage of "screen" to work with partners to continuously expand the application capabilities of "screen" by integrating more functions, deriving more forms, and inserting more scenarios. In this way, the Company will achieve 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. Guided by the strategy of "Empower IoT with display", the Company has established a value creation system for the entire industry chain, from display panels to smart terminals to system solutions. With the strongest product competitiveness and system integration ability in the industry, it meets the diversified needs of customers and achieves a transformation from "single device value creation" to "Empower IoT with display entire industry chain value creation", from "independent company value creation" to "synergistic ecological value creation", strengthening the synergistic empowerment effect of industrial ecology, and promoting the construction of a new value growth system. 2. Stable market position and agile market responsiveness The Company keeps following the trend of digitalisation and intelligence in industrial development, with a keen eye to capture customer needs, track market dynamics, and seek new development opportunities and market breakthroughs on top of its existing business. While stabilizing its position in its principal business markets, the Company continues to strengthen its market development capabilities and explore new business growth opportunities. In the first half of 2023, BOE continued to maintain its leading position in the display market, with its shipment volume in LCD displays and five major applications remaining the largest in the world. Meanwhile, due to its continuous optimisation of product mix, the the world's largest shipment volume. In the OLED sector, the Company's shipment volume of flexible AMOLEDs increased significantly, with more than 50 million units sold within six months, an increase of nearly 80% year-on-year. The Company's ongoing efforts in driving the IoT transformation continue to bear fruit in terms of market expansion. The shipment volume of whiteboards, splicing products and other products ranked first in the world. The system solution business has been promoted in an orderly manner, and the comprehensive management platform for smart financial outlets has been put into operation at the smart outlets of China Minsheng Bank, Postal Savings Bank of China, Bank of Beijing and other banks. The construction of smart industrial parks for benchmark projects such as the Mangrove Tree Resort World Qingdao and the Dream Langfang has been successfully delivered. Revenues in the sensor business continued to grow in the first half of the year, and the mass production and delivery of the first fibre optic colour sensor was achieved. The MLED overseas market has been actively expanded and orders have been signed with countries in South America and the Middle East. The core capabilities and performance of the digital hospital improved significantly, with the total outpatient volume exceeding 585,000, up more than 63% year on year. The total discharge volume exceeded 26,000, up more than 97% year on year. The number of Zhongxiangying's new external customers increased by more than 40% year on year. 3. Solid technological foundation and outstanding innovation capability Persisting in driving the development with technological innovation, the Company has built a technology architecture of "Empower IoT with display" that is suitable for the transformation and development of its IoT, including device layer, terminal layer, platform layer, and application layer. With a systematic technological innovation capability that integrates software and hardware, provides key support for the value extension of its "device - terminal - scenario". In terms of technology and products, the Company has accelerated the upgrade of its UB Cell and Oxide LCD technologies in the display sector and has achieved breakthroughs in Gaming high-end flagship products. The NB QHD 240Hz Mini LED product with mega contrast ratio has been listed as a customer flagship model. In addition, the 110" UB Cell LCD technology has won the SID Best LCD-Based Technology, and the flexible OLED high-end foldable products with COE+LTPO technology have been exclusively for brand customers. In terms of IoT innovation, BOE has become the first company in the industry to release a 16K video restoration solution that solves the industry pain points of 16K image generation and playback and enables detailed light and shadow representation. In terms of sensor technology, BOE has achieved mass production and delivery of its first fibre optic colour sensor with industry-leading specifications such as product recognition capability and response time. In terms of MLED, BOE's 65" and 8K TV backlight products won the "CDIA Bronze Award for Best Innovative Display Component of the Year" in 2023. With continuous technological breakthroughs, the Company was once again selected as one of the "Top 100 Global Innovators" by Clarivate Analytics in February 2023, further demonstrating its innovation strength and technological leadership as an industry leader. In terms of patents, in the first half of the year, the number of new patent applications exceeded 3,900, including more than 90% for inventions and over 30% for overseas patents. Patent applications in respect of flexible OLEDs, sensors, artificial intelligence (AI) and other sectors exceeded 2,100 and accounted for more than 50%. The Company ranked 11th worldwide in Global U.S. Patent Licensing Ranking issued by IFI in January 2023, and it has also been among the global top 20 for five consecutive years. The Company ranked seventh worldwide in Global PCT Patent Application Ranking issued by World Intellectual Property Organization (WIPO) in February 2023, and it has been among the global top 10 for seven consecutive years. In terms of technical standards, two international standard proposals, namely the world's first fingerprint recognition test method and the flexible curling display flattening force test method, have been formally approved by the International Electrotechnical Commission (IEC) in the electronic display sector, filling a gap of the Company in related sectors. An international standard for ITU ultra-high definition teleconsulting system and two P2P national standards have been issued. Besides, two group standards for Mini LED backlight LCD display and ultra-high definition TV variable frequency display have been issued at the 2023 Fourth Global Mini/Micro LED Display Technology Week and the 2023 World Ultra- High Definition Video Industry Development Conference. 4. Efficient lean management capability and comprehensive digital management system The Company is committed to promoting the upgrading of its management system and creating a long-term leading global competitive edge. In terms of operational management, it keeps improving the platform-based organisational design and optimises the operational office, an intensive middle office, and an efficient back office with key measures such as strategy, procedures and performance to continuously strengthen the coordinated operation of the three offices and increase the Company's operational efficiency. In terms of project management, the Company has innovatively established a five level management mechanism, clarifying the target positioning and output requirements for each stage of innovation, continuously optimizing the implementation effect of major projects of the Group, and strengthening management systems such as "linkages between the Group and business", "coordination between target and execution", and "processes and results traced back to each other". In terms of digital transformation, the Company promotes the efficient processing of the Group's overall business on the basis of online business process management and continues to promote the construction of "one digital and visible BOE" with digital transformation projects as breach. In the first half of the year, the Company issued a new management system for digital transformation projects, optimised the main process of the transformation projects, clarified the decision-making rules and responsibilities of all parties for pilot, implementation, and closure reviews, improved the separation mechanism of review and decision-making, and further supported the orderly development of the Company's digital transformation. 5. Cohesion-oriented corporate culture and value system 2023 marks the 30th anniversary of BOE. In more than 30 years of entrepreneurship and innovation practices, the Company has developed a series of outstanding corporate culture and core values, which have inspired generations of its employees to continue to forge ahead. The Company sticks to the establishment of the cultural atmosphere that refers to "step forward and bear your responsibilities bravely, use your time efficiently, and innovate proactively without fear of hardship" and guides its employees to work and develop their career under the principles of "scholar wisdom, commercial thinking, and chivalrous bearing", "observe the problem and bear the responsibility from an overall point of view, think from a different point of view and clarify the responsibilities of each position, dare to raise problems and help solve them", and so on. Thus, "three virtues" and "five spirits" can be formed. "Three virtues" refers to the gratitude for building ideal and belief oriented and sustainable entrepreneurial organisations, the awe for building sustainable innovation and learning oriented organisations, and the transcendence for building organisations with large talent tanks, while "five spirits" refer to backbone, ambition, courage, morale, and confidence. In the face of the opportunities and challenges of the Company's new development era, all BOE members will continue to carry on and promote the excellent corporate culture and values and work tirelessly to achieve the vision of “To Be the Most Respected Company on Earth”. III Analysis of Core Businesses Overview: 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
No such changes in the Reporting Period. Breakdown of operating revenue: Unit: RMB
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