Financial Performance - For the year ended December 31, 2020, BYD Electronic reported revenue of RMB 73,121 million, a 38% increase from RMB 53,028 million in 2019[12]. - Gross profit for 2020 was RMB 9,629 million, with a gross profit margin of 13%, up from 7% in 2019[13]. - Net profit attributable to equity holders of the parent reached RMB 5,441 million, representing a net profit margin of 7%, compared to 3% in the previous year[13]. - The Group recorded a turnover of approximately RMB 73,121 million, representing a year-on-year increase of 37.89%[24]. - Profit attributable to the owners of the parent company was RMB 5,441 million, a significant increase of 240.59% compared to 2019[24]. - Revenue increased by 37.89% compared to the previous year, with profit attributable to equity holders of the parent rising by 240.59% due to product mix optimization and improved operational efficiency[64][65]. - Gross profit increased by approximately 143.32% to approximately RMB 9,629 million, with gross profit margin rising from approximately 7.46% in 2019 to 13.17%[70][72]. Assets and Liabilities - The company's net assets increased to RMB 22,272 million in 2020, up from RMB 16,989 million in 2019[14]. - Total assets rose to RMB 37,976 million, with a gearing ratio of -3%[14]. - The gearing ratio was -3.24% as at 31 December 2020, compared to -5.29% as at 31 December 2019, indicating a decrease in net liabilities relative to equity[77]. - As of 31 December 2020, the company had bank borrowings of RMB 2,009 million and sufficient cash and cash equivalents to meet material commitments and working capital needs for at least the next year[76]. Market Trends - Global smartphone shipments decreased by 5.9% year on year to 1.292 billion units in 2020, while 5G mobile phone shipments rose to 163 million units[22]. - Global PC shipments increased by 13.1% year on year, reaching over 300 million units in 2020[23]. - The Chinese smartphone market saw shipments drop by 20.4% year on year, totaling 296 million units in 2020[22]. - The pandemic created new business opportunities, driving sustained sales growth in laptops, tablet PCs, and gaming hardware[23]. - New energy vehicles saw significant growth, with annual production and sales reaching 1.366 million and 1.367 million units respectively, up 7.5% and 10.9% year-on-year[45][46]. Business Segments - The Group's mobile phone and laptop business recorded revenue of RMB 48,719 million, an increase of approximately 7.29% over 2019[42]. - Revenue from components and parts amounted to approximately RMB 17,567 million, representing a decrease of 5.36% compared to the same period in 2019[42]. - Revenue from assembly amounted to approximately RMB 31,152 million, representing an increase of 16.03% compared to the same period in 2019[42]. - The Group's new intelligent product business generated revenue of RMB 9,476 million, accounting for 12.96% of the overall revenue, and representing an increase of approximately 57.27% over 2019[44]. - The Group's revenue from the automotive intelligent system business was approximately RMB 1,817 million, accounting for 2.49% of overall revenue, reflecting a year-on-year increase of about 13.98%[48][49]. Strategic Initiatives - The Group aims to expand and deepen strategic cooperation with customers to secure the development of its three major business segments[34]. - The Group plans to establish advanced manufacturing bases in multiple countries to support global business expansion and prepare for mass production of overseas projects[50]. - The Group's strategy includes optimizing customer structure and product portfolio to drive growth in the smartphone and laptop business[53][54]. - The Group aims to enhance its position in the automotive intelligent system business and strengthen cooperation with automobile OEMs to ensure long-term development[57][61]. - The Group plans to increase investment in research and development to expand product lines in emerging markets such as unmanned aerial vehicles and medical health products[61][62]. Corporate Governance - The Board of Directors held eleven meetings during the year to discuss overall strategy, operation, and financial performance[130]. - The Board comprises seven Directors, including two executive Directors, two non-executive Directors, and three independent non-executive Directors[125]. - The Audit Committee consists of five members, including three independent non-executive Directors, ensuring compliance with financial reporting and risk management standards[145]. - The Company has established various committees, including the Audit, Remuneration, and Nomination Committees, to enhance corporate governance[143]. - The Company has implemented corporate governance practices in compliance with the applicable provisions of the Corporate Governance Code since its listing on the main board of the Stock Exchange[122]. Risk Management - The Board is responsible for risk management and internal control systems, reviewing their effectiveness at least annually[175]. - The Company has established a comprehensive risk management and internal control system, which is reviewed at least annually by the Audit Committee[182]. - Major risks and related control measures are continuously reviewed and upgraded to ensure proper internal control procedures are in place[185]. - The Internal Audit Department plays a crucial role in the risk management framework and reports directly to the Audit Committee[187]. Future Outlook - Looking forward to 2021, the Group anticipates a rebound in the global economy, driven by the rollout of effective vaccines, despite existing uncertainties[34]. - The global smartphone production is expected to increase by 9% to 1.36 billion units in 2021, with 5G smartphone shipments projected to double to approximately 500 million units, raising market penetration to 37%[53][54]. - The global laptop shipments are anticipated to grow to 217 million units in 2021, reflecting an annual growth rate of 8.6%[53][54]. Employee and Remuneration - The Group employed approximately 100.3 thousand employees as of 31 December 2020[83]. - Total staff cost accounted for approximately 14.49% of the Group's revenue for the year ended 31 December 2020[83]. - The remuneration policy aims to retain and motivate executive Directors by linking compensation to individual performance and corporate objectives[155].

Financial Performance - The company's revenue for the first half of 2020 reached RMB 31,386 million, representing a year-on-year increase of approximately 34.82%[4] - Gross profit surged by 164.27% to RMB 4,100 million, while net profit attributable to shareholders increased by 329.90% to RMB 2,473 million[4] - Earnings per share rose by 329.90% to RMB 1.10[4] - Revenue increased by 34.82% year-on-year, with net profit attributable to shareholders rising by 329.90% due to robust growth in components and new smart devices[12] - Gross profit grew by approximately 164.27% to RMB 4,100 million, with gross margin increasing from 6.66% to 13.06% driven by strong performance in components and new smart devices[15] - Revenue for the six months ended June 30, 2020, was RMB 31,386,402, an increase of 34.8% compared to RMB 23,280,207 for the same period in 2019[33] - Net profit for the six months ended June 30, 2020, was RMB 2,472,754, a significant increase of 330.5% compared to RMB 575,199 in 2019[34] - The company reported a net profit of RMB 2,472,754 thousand for the six months ended June 30, 2020, compared to RMB 618,793 thousand for the same period in 2019, representing a significant increase[39] Revenue Segmentation - The new smart product segment recorded revenue of approximately RMB 3,624 million, accounting for 11.55% of total revenue, with a year-on-year growth of about 39.50%[7] - The automotive intelligent systems business generated revenue of approximately RMB 680 million, representing a year-on-year decline of about 10.68%[7] - Revenue from the Chinese market (including Hong Kong, Macau, and Taiwan) was RMB 25,284,650 thousand, accounting for 80.5% of total revenue, while overseas revenue was RMB 6,101,752 thousand[50] Operational Efficiency - Operating cash inflow reached approximately RMB 3,508 million, a significant increase compared to cash outflow of RMB 1,036 million in the same period last year[14] - The inventory turnover period decreased from approximately 45 days to 36 days, indicating improved inventory management[14] - The company plans to enhance its operational efficiency and product mix to further improve profitability in the upcoming periods[6] Market Position and Growth - The company maintained a strong market position in the smartphone metal business, holding over 40% market share in the Android metal frame segment[6] - The company anticipates continued growth in the second half of 2020, driven by the expansion of 5G networks and increasing sales of 5G smartphones[9] - The company is actively expanding its market presence in various sectors, including IoT, smart home, and gaming hardware, with significant growth in demand due to the pandemic[7] - The automotive intelligent systems segment is expected to enter a high growth phase, supported by national strategies for smart vehicle development[10] Research and Development - The company is actively increasing R&D investment to broaden its product offerings and build technological barriers[10] - Research and development expenses for the six months ended June 30, 2020, were RMB 1,107,603, up from RMB 853,084 in 2019[33] Corporate Governance - The board emphasizes maintaining high standards of corporate governance and compliance with the relevant rules and regulations[27] - The company is committed to board diversity and aims to ensure a variety of skills and experiences among its directors[29] - The financial statements were approved by the board on August 28, 2020, indicating timely governance and oversight[87] Shareholder Information - As of June 30, 2020, BYD's total share capital was RMB 2,728,142,855, consisting of 1,813,142,855 A shares and 915,000,000 H shares[20] - Mr. Wang Chuanfu holds 518,351,550 shares in BYD, representing 19.00% of the total issued shares[20] - Golden Link Worldwide Limited holds 1,481,700,000 shares, accounting for 65.76% of the total issued shares[25] - Gold Dragonfly, a company owned by BF Trustee, holds 137,081,650 shares, which is 6.08% of the total issued shares[25] - The company did not recommend the payment of an interim dividend for the period[31] - The company declared a final dividend of RMB 0.071 per ordinary share, down from RMB 0.195 per share in 2019, totaling RMB 159,978,000[55] Financial Position - The company’s total assets as of June 30, 2020, were RMB 34,654,783, an increase from RMB 28,026,974 as of December 31, 2019[35] - Total liabilities increased to RMB 14,617,011 as of June 30, 2020, from RMB 10,398,818 at the end of 2019[36] - The company’s total equity increased to RMB 19,295,644 thousand as of June 30, 2020, up from RMB 16,989,473 thousand at the beginning of the year[38] - Cash and cash equivalents increased to RMB 5,640,274 as of June 30, 2020, compared to RMB 1,650,730 at the end of 2019[36] Related Party Transactions - The group reported significant related party transactions, including sales of machinery and equipment amounting to RMB 2,195,000 to the ultimate holding company, up from RMB 334,000 in the same period last year[71] - Purchases of inventory from related parties reached RMB 694,879,000, a substantial increase from RMB 264,101,000 year-over-year[71] Accounting and Compliance - The company has adopted new accounting standards related to COVID-19 rent concessions, allowing for a practical expedient not to apply lease modification accounting for rent reductions directly resulting from the pandemic[48] - The company has not reported any significant impact on its financial position or performance due to the adoption of revised accounting standards[46] - The company’s revenue recognition is based on the transfer of goods at a point in time, with all revenue recognized at that point[50]

Financial Performance - BYD Electronic reported a revenue of approximately RMB 53,028 million for the year ended December 31, 2019, representing a year-on-year increase of 29.19%[15] - The net profit attributable to equity holders of the parent company decreased by 27.00% to RMB 1,598 million compared to the previous year[15] - The gross profit margin for 2019 was 7%, down from 10% in 2018[6] - The total assets of the company reached RMB 28,026,974 thousand, an increase from RMB 26,051,172 thousand in 2018[7] - The company maintained a current ratio of 1.64, indicating a stable liquidity position[7] - The group recorded a sales revenue of approximately RMB 53,028 million in 2019, representing a year-on-year increase of about 29.19%[19] - The net profit attributable to shareholders decreased by approximately 27.00% to about RMB 1,598 million compared to 2018[19] - The smartphone and laptop business generated revenue of RMB 454.09 billion, an increase of approximately 27.85% year-on-year, with assembly revenue growing by 53.37%[20] - The new smart products segment achieved revenue of approximately RMB 60.25 billion, accounting for 11.36% of total revenue, and grew by about 38.83% compared to 2018[20] - The automotive intelligent systems business generated revenue of approximately RMB 15.94 billion, representing a year-on-year growth of about 33.94%[20] Market Trends - The smartphone market saw a decline in shipments, with global smartphone shipments down 2.3% to 1.37 billion units in 2019[15] - The global smartphone shipment volume declined by 2.3% to 1.37 billion units in 2019, with China's smartphone shipments decreasing by 4.7% to 372 million units[18] - The company is leveraging opportunities from 5G commercialization to drive business transformation and growth across its three major business segments[19] - The Chinese smart home market is expected to enter a phase of scaled development in 2020, presenting significant growth potential for the company[23] - By 2025, it is projected that 80% of new car sales in China will be connected vehicles, with the total market size exceeding RMB 1 trillion[23] Corporate Governance - The board consists of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors[49] - The company has implemented corporate governance practices in accordance with the applicable provisions of the Listing Rules, except for a deviation regarding the attendance of independent non-executive directors at the annual general meeting[47] - The board held nine meetings during the year to discuss overall strategy, operational and financial performance, and other significant business matters[49] - The company is committed to maintaining high standards of corporate governance to enhance confidence among shareholders, investors, employees, and business partners[47] - The independent non-executive directors have confirmed their independence in accordance with the Listing Rules[49] Environmental Responsibility - In 2019, the total greenhouse gas emissions of the company were approximately 1.1111 million tons of CO2, calculated based on the power purchase emission factors[87] - The company generated approximately 2,437,084 tons of wastewater in 2019, which was treated and discharged after meeting standards[88] - The total amount of hazardous solid waste produced in 2019 was approximately 13,330 tons, reduced by 3,683 tons compared to the previous year[88] - The company achieved a total water consumption of approximately 8,025,764 cubic meters in 2019, with a water saving of about 1,332,800 cubic meters[97] - The total energy consumption in 2019 was approximately 1,306,366,854 KWH, with natural gas consumption around 3,112,771 cubic meters[96] Employee Engagement and Development - The company emphasizes the importance of talent as the primary resource, focusing on systematic and humanized human resource management to enhance employee performance and growth[104] - In 2019, the female employee ratio remained stable at approximately 35%, with female managers accounting for 24% of the management team[106] - The company organized various entertainment activities in 2019 to enrich employees' cultural lives and improve overall satisfaction[116] - In 2019, the company conducted over 130,000 training sessions, with a total of approximately 4.95 million participants, achieving a total training duration of 13.84 million hours, averaging about 82 hours per person[129] - The company maintained a zero fatal accident record throughout 2019, emphasizing its commitment to health and safety for all employees[123] Supplier Management - The company has implemented a 100% responsible procurement rate, ensuring that all procurement activities align with its development strategy and environmental policies[138] - The company emphasizes the importance of supplier management, requiring compliance with social responsibility standards and conducting annual audits to ensure adherence[135] - The company has developed a comprehensive supplier evaluation system that includes environmental management and social responsibility criteria, ensuring suppliers meet specific standards[136] - The company conducts regular checks on suppliers' compliance with environmental and social standards, including monitoring for any administrative penalties[137] - The company has established a clear set of requirements for suppliers, including adherence to ISO14001 and SA8000 standards, to ensure responsible sourcing[135] Audit and Compliance - The independent auditor confirmed that the financial statements fairly reflect the group's financial position as of December 31, 2019[190] - The company is responsible for preparing financial statements that present a true and fair view in accordance with Hong Kong Financial Reporting Standards[196] - The audit aims to provide reasonable assurance that the financial statements are free from material misstatement due to fraud or error[197] - The independent auditor's report emphasizes the responsibility to assess significant misstatements in the consolidated financial statements, whether due to fraud or error[198] - The auditor must conclude on the appropriateness of the going concern basis of accounting, identifying any significant uncertainties that may affect the company's ability to continue as a going concern[198]

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 23,280 million, representing a year-on-year increase of 19.32%[2] - Gross profit decreased by 21.96% to RMB 1,551 million[2] - Profit attributable to shareholders dropped by 49.31% to RMB 575 million, with earnings per share also declining by 49.31% to RMB 0.26[2] - Revenue for the six months ended June 30, 2019, was RMB 23,280,207 thousand, an increase of 19.4% compared to RMB 19,511,163 thousand for the same period in 2018[31] - Gross profit for the same period was RMB 1,551,400 thousand, down 22% from RMB 1,987,914 thousand in 2018[31] - Profit before tax decreased to RMB 618,793 thousand, a decline of 53.7% compared to RMB 1,335,920 thousand in the prior period[31] - Net profit for the period was RMB 575,199 thousand, down 49.3% from RMB 1,134,653 thousand in the same period last year[31] - The group reported a profit before tax of RMB 575,199,000 for the six months ended June 30, 2019, compared to RMB 1,134,653,000 for the same period in 2018, indicating a decrease of approximately 49%[65] Revenue Breakdown - The smartphone and laptop business generated revenue of RMB 199.21 billion, accounting for 85.57% of total revenue[6] - Revenue from new intelligent products was approximately RMB 25.98 billion, representing 11.16% of total revenue[6] - Revenue from automotive intelligent systems reached RMB 7.61 billion, making up 3.27% of total revenue[6] - Revenue from mobile components and modules sales accounted for the entirety of the total revenue, with RMB 23,280,207,000 recognized at a point in time[59] - Revenue from the Chinese market (including Hong Kong, Macau, and Taiwan) was RMB 18,976,060,000, which is about 81.5% of total revenue[59] Market Trends - The global smartphone market saw a decline in shipments by 4.4% year-on-year, with China's smartphone shipments down by 5.1%[4] - The global smartphone shipment is expected to decline by 1.9% to 1.38 billion units in 2019, with a projected increase to 1.54 billion units by 2023[1] - The group anticipates a significant growth opportunity in the automotive intelligent systems market, with a forecasted 80% connectivity rate for new car sales in China by 2025, equating to 28 million connected vehicles[1] - The smart home device market in China is projected to grow rapidly, reaching nearly 500 million units by 2023, with a global market size expected to increase from 840 million units in 2019 to 1.46 billion units by 2023, reflecting a compound annual growth rate of 14.9%[1] Financial Stability - The group has no bank borrowings and maintains a capital debt ratio of zero as of June 30, 2019, indicating strong financial stability[13] - The group recorded an operating cash outflow of approximately RMB 1,036 million, compared to an inflow of approximately RMB 1,560 million in the first half of 2018[12] - Total assets as of June 30, 2019, were RMB 25,676,542 thousand, a decrease from RMB 26,051,172 thousand at the end of 2018[34] - Current assets totaled RMB 15,976,221 thousand, down from RMB 17,089,463 thousand at the end of 2018[34] - Current liabilities amounted to RMB 9,258,125 thousand, a decrease from RMB 10,061,535 thousand at the end of 2018[34] - Total equity as of June 30, 2019, was RMB 15,963,351,000, an increase from RMB 14,773,308,000 as of December 31, 2018[36] Corporate Governance - The board emphasized maintaining high standards of corporate governance and compliance with the relevant listing rules[25] - The company confirmed compliance with the standard code of conduct for securities trading by all directors during the period[26] - The board's diversity policy aims to ensure a diverse range of skills, experiences, and perspectives among its members[28] - The company did not adopt any share option schemes during the review period[21] - No share buybacks or repurchases of the company's listed securities occurred during the six months ending June 30, 2019[27] Research and Development - The company is actively expanding its market presence and investing in new intelligent product development amid the backdrop of the US-China trade dispute[5] - The group is increasing R&D investments to drive product innovation and enhance automation and lean production across its three main business areas[8] - Research and development expenses increased to RMB 853,084 thousand, representing a rise of 36.8% from RMB 623,348 thousand in the previous year[31] Inventory and Receivables Management - The average inventory turnover period decreased from approximately 51 days in the first half of 2018 to about 45 days in the current period, indicating improved inventory management[12] - As of June 30, 2019, the accounts receivable and notes receivable amounted to RMB 7,171,845 thousand, a slight decrease from RMB 7,209,225 thousand as of December 31, 2018, representing a reduction of approximately 0.52%[70] - The aging analysis of accounts receivable shows that RMB 6,757,304 thousand (94.2%) is within three months, compared to RMB 6,788,232 thousand (94.2%) in the previous period, indicating a stable collection period[71] Lease Accounting - The company adopted the new and revised Hong Kong Financial Reporting Standards effective from January 1, 2019, which includes significant changes in lease accounting[42] - The adoption of HKFRS 16 requires the recognition of all leases on the balance sheet, impacting the company's financial position and lease liabilities[43] - The financial impact of adopting HKFRS 16 will be reflected in the retained earnings adjustment as of January 1, 2019, without restating prior year comparative figures[43] - As of June 30, 2019, the total right-of-use assets amounted to RMB 1,006,031,000, with lease liabilities at RMB 573,053,000[55] - Rental expenses related to short-term leases for the six months ended June 30, 2019, were RMB 60,406,000[55] Related Party Transactions - The company reported significant related party transactions, including sales of machinery and equipment to subsidiaries totaling RMB 3,881 thousand and purchases amounting to RMB 22,666 thousand[76] - The revenue from sales of glass casing products to related parties reached RMB 79,938 thousand, indicating new product development and market expansion efforts[78] - The company incurred RMB 43,271 thousand in rental and auxiliary expenses paid to the ultimate holding company, reflecting ongoing operational costs[76] - The total payables to related parties reached RMB 3,869,772,000, an increase of 2.8% from RMB 3,765,739,000 as of December 31, 2018[82]

Financial Performance - In 2018, BYD Electronic reported a revenue of RMB 41,047,139 thousand, an increase from RMB 38,774,422 thousand in 2017, representing a growth of 5.3%[3] - The gross profit for 2018 was RMB 4,171,983 thousand, with a gross margin of 10%, down from 11% in 2017[3] - Net profit attributable to equity holders of the parent company was RMB 2,188,620 thousand, resulting in a net profit margin of 5%, a decrease from 7% in the previous year[3] - For the year ended December 31, 2018, the company recorded sales of approximately RMB 41,047 million, representing a year-on-year increase of 5.86%[11] - The net profit attributable to shareholders decreased by 15.33% to approximately RMB 2,189 million compared to 2017[11] - The total comprehensive income for the year ended December 31, 2018, was RMB 2,175,577,000, compared to RMB 2,592,562,000 in 2017, reflecting a decrease of approximately 16%[182] - Annual profit for 2018 was RMB 2,188,620, a decrease of 15.3% from RMB 2,584,868 in 2017[175] - Total revenue for 2018 reached RMB 41,047,139, an increase of 5.9% compared to RMB 38,774,422 in 2017[175] Assets and Liabilities - The total assets of the company reached RMB 26,051,172 thousand in 2018, compared to RMB 25,386,326 thousand in 2017[4] - The company's net asset value increased to RMB 15,825,332 thousand in 2018, up from RMB 14,191,313 thousand in 2017[4] - Current liabilities decreased to RMB 10,061,535 from RMB 11,088,004 in 2017, reflecting a reduction of 9.2%[180] - The company’s equity increased to RMB 15,825,332 from RMB 14,191,313 in 2017, reflecting a growth of 11.5%[180] - The total liabilities were recorded at RMB 10,839,336 thousand, with trade payables amounting to RMB 8,982,988 thousand[197] Market Position and Share - BYD Electronic's market share among the top five global smartphone brands was approximately 67.2% in 2018, with three Chinese brands increasing their market share from 24.4% in 2017 to 31.5%[10] - The top ten smartphone manufacturers accounted for a combined shipment share of 93.0%, an increase of 7.9% compared to the previous year, indicating ongoing industry consolidation[13] Operational Efficiency - The company maintained a current ratio of 1.70 in 2018, an improvement from 1.50 in 2017[4] - Accounts receivable turnover days improved to 70 days in 2018, down from 84 days in 2017[4] - Inventory turnover days were recorded at 48 days in 2018, slightly higher than 44 days in 2017[4] Research and Development - Research and development expenses increased to RMB 1,588,654, up 32.3% from RMB 1,200,632 in 2017[175] - The company has invested substantial resources in the development of automated equipment for glass production, enhancing product R&D and capacity[13] Corporate Governance - The board of directors consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[39] - The company has implemented corporate governance practices in accordance with the applicable provisions of the Listing Rules, except for a deviation regarding attendance at the annual general meeting[37] - The company is committed to promoting the highest standards of corporate governance to enhance confidence among shareholders and stakeholders[37] Environmental and Social Responsibility - The company emphasizes sustainable development and has not experienced significant environmental pollution or ecological damage incidents in 2018[74] - The total greenhouse gas emissions for the year 2018 were approximately 960,100 tons of CO2, with a density of 4.136 KG/PCS[76] - The company has invested significantly in environmental governance to ensure harmony between business operations and environmental protection[74] Employee Engagement and Welfare - The company employed approximately 69,000 employees, with total employee costs accounting for about 15.04% of revenue[23] - The proportion of female employees in 2018 was approximately 36%, with female managers making up 25% of the management team[96] - The company conducted various employee engagement activities to enhance communication and address employee grievances, ensuring a harmonious work environment[98] Related Party Transactions - The company entered into an asset sale agreement with BYD on July 27, 2018, for a total consideration of RMB 10,649,000[143] - Continuous related party transactions include leasing factories and properties from BYD Group, with agreements signed for various locations including Shenzhen and Huizhou[147] - The independent non-executive directors confirmed compliance with the non-competition agreement established with BYD and its executives[143] Financial Reporting and Audit - The audit committee assists the board of directors in overseeing the financial reporting process of the group[170] - The auditor's report provides reasonable assurance that the financial statements are free from material misstatement, although it cannot guarantee the detection of all errors[171] - The expected credit loss provision for accounts receivable is calculated using a provision matrix, requiring significant judgments and estimates[166] Dividend and Share Capital - The proposed final dividend for the year ended December 31, 2018, is RMB 0.195 per share, compared to RMB 0.230 per share for the previous year[25] - The distributable reserves of BYD Electronic (International) Co., Ltd. as of December 31, 2018, amounted to approximately RMB 11,998,864,000, an increase from RMB 10,308,378,000 in 2017[132]