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TCL科技:2024年一季度报告(英文版)2024-05-25  

                                                                   First Quarter 2024 Report of TCL Technology Group Corporation




Stock Code: 000100       Stock Abbr.: TCL TECH.                 Announcement No.: 2024-018




   TCL 科技集团股份有限公司
     TCL Technology Group Corporation




                     First Quarter 2024 Report

                                April 28, 2024




                                       1
                                                                      First Quarter 2024 Report of TCL Technology Group Corporation




                                                           Content


Section I Important Notices and Definitions ................................................................................... 3
Section II Key Financial Information .............................................................................................. 5
Section III Management Discussion and Analysis .......................................................................... 8
Section IV Shareholder Information .............................................................................................. 11
Section V Other Significant Events ................................................................................................ 13
Section VI Quarterly Financial Statements ................................................................................... 14




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                                                       First Quarter 2024 Report of TCL Technology Group Corporation



                    Section I Important Notices and Definitions

     The Board of Directors (or the "Board"), the Supervisory Committee, directors, supervisors and
senior management of TCL Technology Group Corporation (hereinafter referred to as the "Company")
hereby guarantee that this quarterly report is factual, accurate and complete, and shall be jointly and
severally liable for any misrepresentations, misleading statements, or material omissions therein.
     Mr. Li Dongsheng, the Chairman of the Board, Ms. Li Jian, the person-in-charge of financial
affairs (Chief Financial Officer), and Ms. Jing Chunmei, the person-in-charge of the financial
department, hereby guarantee that the financial statements carried in this Report are factual, accurate
and complete.
     All the Company's directors attended the Board meeting for the review of this Report.
     The future plans, development strategies or other forward-looking statements mentioned in this
Report shall NOT be considered as promises of the Company to investors. Therefore, investors are
kindly reminded to pay attention to possible investment risks.
     This Report has not been audited. This Report has been prepared in both Chinese and English.
Should there be any discrepancies or misunderstandings between the two versions, the Chinese
version shall prevail.




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                                                                   First Quarter 2024 Report of TCL Technology Group Corporation



                                                       Definitions

                 Term                      Refers to                                   Definition
Company, the Company, the Group            Refers to    TCL Technology Group Corporation
The "Reporting Period", "current period"   Refers to    The period from January 1, 2024 to March 31, 2024.
TCL CSOT                                   Refers to    TCL China Star Optoelectronics Technology Co., Ltd.
                                                        TCL Zhonghuan Renewable Energy Technology Co., Ltd., a majority-
TZE                                        Refers to    owned subsidiary of the Company listed on the Shenzhen Stock Exchange
                                                        (stock code: 002129.SZ)
                                                        The generation 8.6 (or G8.6) new oxide production line at Guangzhou
t9                                         Refers to
                                                        CSOT
                                                        12-inch ultra-large DW-cut solar monocrystalline silicon square wafer,
G12                                        Refers to    size: 44,096mm, diagonal line: 295mm, side length: 210mm, with its size
                                                        80.5% larger than the conventional M2
RMB                                        Refers to    Renminbi




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                                                                       First Quarter 2024 Report of TCL Technology Group Corporation



                                  Section II Key Financial Information
(I) Key accounting data and financial indicators
Indicate whether there is any retrospectively adjusted or restated datum in the table below

 Yes □ No

Reason for retrospective adjustment or restatement

□Change of accounting policies □Correction of accounting errors □Business combination under common control

Others
                                                                              Q1 2023                             Change (%)
                                          Q1 2024
                                                             Before adjustment       After adjustment           After adjustment
 Revenue (RMB)                          39,908,458,083           39,443,242,439         39,443,242,439                          1.18%
 Net profit attributable to the
                                            239,970,389            -548,999,154           -548,999,154                        143.71%
 company's shareholders (RMB)
 Net profits attributable to the
 company's shareholders after
                                             70,716,493            -729,931,586           -729,931,586                        109.69%
 non-recurring gains and losses
 (RMB)
 Net cash generated from
                                          6,596,505,932           4,495,356,538          4,495,356,538                         46.74%
 operating activities (RMB)
 Basic earnings per share
                                                 0.0129                   -0.0326              -0.0297                        143.43%
 (RMB/share)
 Diluted earnings per share
                                                 0.0128                   -0.0322              -0.0292                        143.84%
 (RMB/share)
 Weighted average return on                                                                               Increase by 1.54 percentage
                                                  0.45%                   -1.09%               -1.09%
 equity (%)                                                                                                               points YoY
                                                                         December 31, 2023                       Change (%)
                                       March 31, 2024
                                                             Before adjustment       After adjustment           After adjustment

 Total assets (RMB)                    391,746,725,368         382,859,086,727        382,859,086,727                           2.32%
 Owner's equity attributable to
 the company's shareholders             53,682,079,210           52,921,867,086         52,921,867,086                          1.44%
 (RMB)
Note 1: The Company converted its capital reserve into share capital in May 2023, at a rate of 1 share for every 10 shares to all

shareholders. The Company recalculated the basic earnings per share and diluted earnings per share for the first quarter of 2023 in

accordance with accounting standards and other regulations.

Note 2: According to the relevant provisions of the Explanatory Announcement on Information Disclosure by Companies Offering

Securities to the Public No. 1 - Non-Recurring Profits and Losses (2023 Revision), any public subsidies that are closely related to the

Company's daily operations, comply with national policies, are granted based on determined standards, and have a continuous impact

on the Company's profits or losses, should be included into recurring profits or losses. Public grants presented as non-recurring profits

or losses in the first quarter of 2023 comprise of the public grants related to assets amounting to RMB75.12 million, which should be

classified as recurring profits or losses in accordance with the relevant provisions of the 2023 Explanatory Announcement No. 1. The

change did not have any material impact on the Company's financial position and operation results.


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                                                                         First Quarter 2024 Report of TCL Technology Group Corporation



(II) Non-recurring profit and loss items and amounts
 Applicable □ Not applicable

                                                                                                                               Unit: RMB

                                                                                                                       Amount in the
                                                      Item
                                                                                                                       reporting period
 Gains and losses on disposal of non-current assets (inclusive of impairment allowance write-offs)                            64,227,059
 Public subsidies charged to current profits and loss (except for public subsidies which are closely related
 to the Company's daily operations, comply with national policies, are granted based on determined                           249,918,328
 standards, and have a continuous impact on the Company's profits or losses)
 Gains and losses on change in fair value of financial assets and financial liabilities held by the non-financial
 companies, other than those valid hedging activities related to the normal operating business, as well as                    -1,977,888
 gains and losses from the disposal of financial assets and financial liabilities
 Reversal of provision for impairment of receivables that have been individually tested for impairment                        26,500,000
 Non-operating income and expenses other than the above                                                                       61,038,599
 Less: Corporate income tax                                                                                                   49,297,817
      Non-controlling interests (net of tax)                                                                                 181,154,385
 Total                                                                                                                       169,253,896

Details of other profit and loss items that meet the definition of non-recurring profits and losses

□ Applicable Not Applicable

The Company has no other profit and loss items that meet the definition of non-recurring profits and losses.

Notes on non-recurring profit and loss items that which is listed in the Explanatory Announcement No. 1 on Information Disclosure

for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss shall be used to define Recurring Gain/Loss items

□ Applicable Not Applicable

The Company does not have any non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information

Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss that are defined as recurring profit and

loss items.

(III) Changes of key accounting data and financial indicators and reasons therefor
 Applicable □ Not applicable

                                                                                                                               Unit: RMB
                                                                                      Increase / decrease
         Balance Sheet items            Ending balance       Beginning balance                                      Reason for change
                                                                                            ratio (%)
                                                                                                               Mainly due to an increase
 Receivables financing                     1,943,020,838            954,409,558                       103.6
                                                                                                               of bank acceptance notes
                                                                                     Increase / decrease
      Income Statement Item             Current balance          Prior balance                                      Reason for change
                                                                                       ratio (%)
                                                                                                               Due to an increase in
 Asset impairment losses (losses                                                                               falling price of inventory
                                            -702,391,301           -338,223,994                       107.7
 are indicated by "-")                                                                                         accrual in line with the
                                                                                                               market
                                                                                     Increase / decrease
    Cash Flow Statement items           Current balance          Prior balance                                      Reason for change
                                                                                       ratio (%)

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                                                First Quarter 2024 Report of TCL Technology Group Corporation


                                                                                   Mainly due to an increase
Net cash generated from                                                            in cash from sale of
                          6,596,505,932   4,495,356,538                     46.7
operating activities                                                               commodities           and
                                                                                   rendering of services




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                                                      First Quarter 2024 Report of TCL Technology Group Corporation



               Section III Management Discussion and Analysis

     Beginning this year, global geopolitical risks have increased, leading to an intensive
restructuring of industrial and supply chains. Developed economies worldwide have maintained tight
monetary policy, and the global economy faces increasing uncertainties. In response to these
challenges, the Company has focused on the development of displays and new energy photovoltaics,
and enhanced the resilience of its business and optimized its competitive edge in pursuit of high-
quality sustainable development. During the Reporting Period, TCL TECH. achieved a revenue of
RMB39.908 billion, which is a year-on-year increase of 1.18%; a net profit of RMB240 million
attributable to the shareholders of listed companies, which is an increase of RMB789 million year-
on-year; and a net operating cash flow of RMB6.597 billion.
     Driven by supply-side optimization, the display industry has returned to an orderly development
stage with reasonable commercial returns, and the supply-demand relationship remains stable and
healthy. Despite the seasonal off-season in Q1 2024, the price of mainstream products grew steadily.
The Company actively optimized its business strategies and improved its operation structure, which
resulted in a remarkable improvement in year-on-year performance. With the acceleration of the
energy transition, latent capacity was unleashed centrally from the investment peak period, leading
to a phased imbalance between supply and demand in the industry and a decline in industry chain
profitability. The Company's new energy photovoltaic business strengthened its operational resilience
to cope with challenges, but its performance declined year-on-year due to product price reduction.


Display business
     During Q1 2024, the end-user demand for displays was still that of a traditional "off-season".
However, driven by favorable supply-side fundamentals and an on-demand production strategy, the
industry's supply-demand dynamics and inventory levels remained healthy. Restocking demand after
the Chinese New Year pushed up the prices of large-sized panels, while the prices of small- and
medium-sized panels remained relatively stable, with some products experiencing structured price
hikes.
     By virtue of the gradual recovery of profitability in key products and the Company's edge in

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                                                       First Quarter 2024 Report of TCL Technology Group Corporation



operational excellence, the display business surged in profitability year-on-year. During the
Reporting Period, the display business achieved an operating revenue of RMB23.376 billion, with a
year-on-year increase of 54.58%, and a net profit of RMB539 million, with a year-on-year increase
of RMB3.337 billion.
     In the large-sized products segment, TCL CSOT, on the basis of on-demand production, was
well-poised to lead the upgrade of large-sized TV panels, impelling the healthy and sound
development of the industry. During the Reporting Period, the Company's overall utilization rate
remained relatively low. However, in March, restocking demand drove a significant rebound in
utilization rates. The Company maintained its leadership position in the large-sized panels segment
and ranked within the top two globally in terms of its TV panel market share. In the medium-sized
products segment, the T9 production line ramped up as scheduled and continuously bolstered the
Company's market share in IT products. The Company remained No. 3 in the display market, among
which, e-sports displays ranked No. 1 in terms of market share globally. In the small-sized display
segment, the Company's flexible OLED products maintained a high demand. During the Reporting
Period, the Company ascended to No. 3 globally in terms of shipments of flexible OLED mobile
phone panels, while also further optimizing its product and customer structure, which resulted in
continuous improvements in operating performance.
     Looking forward to the remainder of the year, global display terminal sales are expected to
remain stable. The size growth trend of large-sized products will drive the robust growth of display
areas. At the same time, catalyzed by innovation in AI hardware and other factors, the display industry
is expecting structural growth. The improving supply-side structure will push the industry to pivot
back on reasonable commercial returns, and the display industry's cyclical fluctuation will gradually
weaken. As the global leader in large-sized display panels, TCL CSOT will continuously drive the
healthy and stable development of the industry, while enhancing both corporate profitability and
value.


New energy photovoltaics and other silicon materials business
     In Q1 2024, global demand for new PV installed capacity continued to grow rapidly, but the
trend of localized PV manufacturing and anti-globalization trade remains unchanged as countries

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                                                     First Quarter 2024 Report of TCL Technology Group Corporation



seek energy self-sufficiency and control. As domestic photovoltaic capacity is released across all
segments of industry chain, intensified competition further impacts product price reductions, putting
pressure on industry profitability. However, rapid iteration of new technologies, such as N-type, is
further restructuring the industry's capacity, and laggard capacity will be ruled out in a faster sense.
During the Reporting Period, TZE achieved a revenue of RMB9.933 billion, a year-on-year decrease
of 43.62%, and a net profit of negative RMB951 million, due to falling prices for major products
across the industry chain.
     In response to external environmental challenges, TZE has further improved its quality and
efficiency through technological innovation, process improvement and management enhancement. It
has promoted the optimization of operating indicators, e.g., utilization of silicon materials, furnace
costs and number of output wafers per kilogram, and cemented the Company's competitive advantage.
The Company further consolidated its technological and market leadership in G12 large silicon wafers
and N-type products. The proportion of shipments of N-type and large-sized (210 series) products
accounted for 88%, among which the external sales market share of N-type 210 exceeded 90%,

maintaining its leading position. The Company is continuously promoting the transformation to

Industry 4.0, enabling factories for silicon wafers, batteries and components to achieve international
leading quality in terms of digitization and intelligentization.


     Looking to the future, with the continuous optimization of supply-side structure and the stable
growth of demand area, the display industry is expected to improve its prosperity, and the operating
return of the Company's display business will further improve. The photovoltaic industry is currently
at the bottom of the cycle, and downstream demand continues its rapid growth. The long-term positive
outlook for the industry remains unchanged. The Company's new energy photovoltaic business will
strengthen its operational resilience, allowing it to smoothly navigate industry cycles with a
competitive edge. By upholding the spirit of "Venturing Midstream and Striving to Win", the
Company will firmly grasp the opportunities brought by transformations in the technology
manufacturing industry and global energy structure, and continue to implement the business strategies
of "improving operational quality and efficiency, enhancing strengths to shore up weaknesses,
innovation-driven development as well as accelerating global expansion" in order to achieve
sustainable, high-quality development and take on a leading role in the global market.
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                                                                         First Quarter 2024 Report of TCL Technology Group Corporation



                                   Section IV Shareholder Information

(I) Table of the total number of ordinary shareholders and the number of preferred
shareholders with resumed voting rights as well as the shareholdings of the top 10 shareholders
                                                                                                                                     Unit: Share
 Total number of ordinary shareholders by the end                  Total number of preferred shareholders with resumed voting
                                                       578,652                                                                                  0
 of the reporting period                                           rights by the end of the reporting period
                                               Shareholdings of top 10 shareholders of ordinary shares
                                                (excluding the lending of shares under refinancing)
                                                                                                Number of     Shares in pledge, marked or frozen
                                      Nature of        Shareholding          Number of
       Name of shareholder                                                                       restricted
                                     shareholder      percentage (%)         shares held                           Status            Number
                                                                                                shares held
 Li Dongsheng                      Domestic
                                   individual/Do
 Ningbo Jiutian Liancheng          mestic                         6.73      1,264,053,189       672,868,840
 Equity Investment Partnership     general legal                                                             Pledge                 293,668,015
 (Limited Partnership)             entity
 Huizhou Investment Holding        Public legal
                                                                  4.35        817,453,824
 Co., Ltd.                         entity
 Hong Kong Securities Clearing     Foreign legal
                                                                  4.05        761,222,897
 Company Ltd.                      entity
 Wuhan Optics Valley Industrial Public legal
                                                                  2.64        495,390,330                    Pledge                 246,780,000
 Investment Co., Ltd.              entity
                                   Domestic
 China Securities Finance
                                   general legal                  2.19        410,554,710
 Corporation Limited
                                   entity
 Perseverance Asset
                                   Fund, wealth
 Management Partnership
                                   management                     1.19        223,736,600
 (Limited Partnership) - Gaoyi
                                   product, etc.
 Xiaofeng No. 2 Zhixin Fund
 Industrial and Commercial         Fund, wealth
 Bank of China - Huatai-           management                     1.08        202,917,730
 Pinebridge CSI 300 ETF            product, etc.
 Bank of China Limited -           Fund, wealth
 Huatai-Pinebridge CSI             management                     1.03        192,656,860
 Photovoltaic Industry ETF         product, etc.
                                   Financial
 CITIC Securities Co., Ltd.                                       0.98        184,127,136
                                   Institution
                                            Shareholdings of top 10 non-restricted ordinary shareholders
                                                     Number of non-restricted ordinary shares held at the          Share type and quantity
               Name of shareholder
                                                                   end of reporting period                          Type             Quanity
                                                                                                             RMB-
 Huizhou Investment Holding Co., Ltd.                                                        817,453,824     denominated            817,453,824
                                                                                                             ordinary shares
                                                                                                             RMB-
 Hong Kong Securities Clearing Company Ltd.                                                  761,222,897     denominated            761,222,897
                                                                                                             ordinary shares
 Li Dongsheng                                                                                                RMB-
 Ningbo Jiutian Liancheng Equity Investment                                                  591,184,349     denominated            591,184,349
 Partnership (Limited Partnership)                                                                           ordinary shares
                                                                                                             RMB-
 Wuhan Optics Valley Industrial Investment Co.,
                                                                                             495,390,330     denominated            495,390,330
 Ltd.
                                                                                                             ordinary shares
                                                                                                             RMB-
 China Securities Finance Corporation Limited                                                410,554,710     denominated            410,554,710
                                                                                                             ordinary shares
 Perseverance Asset Management Partnership                                                                   RMB-
 (Limited Partnership) - Gaoyi Xiaofeng No. 2                                                223,736,600     denominated            223,736,600
 Zhixin Fund                                                                                                 ordinary shares
                                                                                                             RMB-
 Industrial and Commercial Bank of China -
                                                                                             202,917,730     denominated            202,917,730
 Huatai-Pinebridge CSI 300 ETF
                                                                                                             ordinary shares
                                                                                                             RMB-
 Bank of China Limited - Huatai-Pinebridge CSI
                                                                                             192,656,860     denominated            192,656,860
 Photovoltaic Industry ETF
                                                                                                             ordinary shares
                                                                       11
                                                                         First Quarter 2024 Report of TCL Technology Group Corporation


                                                                                                              RMB-
 CITIC Securities Co., Ltd.                                                                  184,127,136      denominated            184,127,136
                                                                                                              ordinary shares
                                                    Among the top 10 shareholders, Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity
                                                    Investment Partnership (Limited Partnership) became persons acting in concert by signing the
 Note on the above shareholders' associations or    Agreement on Concerted Action. Mr. Li Dongsheng holds 897,158,453 shares and Ningbo
 concerted actions                                  Jiutian Liancheng Equity Investment Partnership (Limited Partnership) holds 366,894,736
                                                    shares, representing 1,264,053,189 shares in total and becoming the largest shareholder of the
                                                    Company.
                                                    At the end of the Reporting Period, Wuhan Optics Valley Industrial Investment Co., Ltd.,
 Explanation on the top 10 ordinary shareholders
                                                    among the shareholders above, held certain shares in the Company through a credit security
 participating in securities margin trading
                                                    account.

5% or greater shareholders, top 10 shareholders and top 10 unrestricted shareholders participating in the lending of shares under the

refinancing business

Applicable □ Not applicable

                                                                                                                                      Unit: Share

  5% or greater shareholders, top 10 shareholders and top 10 unrestricted shareholders participating in the lending of shares under
                                                     the refinancing business
                                                       Shares lent under
                     Shares in the ordinary                                                                               Shares lent under
                                                       refinancing at the            Shares in the ordinary
                   account and credit account                                                                         refinancing at the end of
                                                    beginning of the period        account and credit account
                     at the beginning of the                                                                          the period that have not
   Name of                                            that have not been             at the end of the period
                              period                                                                                        been returned
  shareholder                                               returned
  (full name)                                                      Proportion                        Proportion                      Proportion
                                     Proportion
                      Total                           Total          to total         Total            to total         Total          to total
                                       to total
                     number                          number           share          number             share          number           share
                                    share capital
                                                                     capital                           capital                         capital
 Industrial
 and
 Commercial
 Bank of
 China -          140,037,730              0.75%       136,900        0.001%       202,917,730             1.08%               0              0%
 Huatai-
 Pinebridge
 CSI 300
 ETF
 Bank of
 China
 Limited -
 Huatai-
 Pinebridge       204,079,760              1.09%    1,602,800           0.01%      192,656,860             1.03%        418,800          0.002%
 CSI
 Photovoltaic
 Industry
 ETF
Change in the top 10 shareholders and top 10 unrestricted shareholders due to the lending of shares under the refinancing business
compared with the previous period

□ Applicable Not Applicable

(II) Total number of preferred shareholders and shareholdings of the top 10 preferred
shareholders
□ Applicable Not Applicab
                                                                      12
                                                                 First Quarter 2024 Report of TCL Technology Group Corporation



                                  Section V Other Significant Events
 Applicable □ Not applicable

1. Derivative investment for hedging purposes during the reporting period
                                                                                                                  Unit: RMB'0,000
                                                                                                         Ending contractual
                                                                                        Gain/loss
                                                                                                         amount as % of the
                                Beginning amount             Ending amount              status in
                                                                                                       Company's ending net
   Type of contract                                                                        the
                                                                                                               asset
                                                                                        Reportin
                          Contractua      Transactio    Contractua      Transactio                   Contractua    Transactio
                                                                                        g Period
                           l amount         n limit      l amount         n limit                     l amount       n limit
 1. Forward forex
                             3,039,040       114,095      3,440,748         131,003                       23.67%           0.90%
 contracts                                                                                  9,269
 2. Interest rate swaps          40,686       12,231        340,100          10,203                        2.34%           0.07%
          Total             3,446,726        126,326      3,780,848         141,206         9,269         26.01%           0.97%
 Accounting policies and specific accounting
 principles for hedging business during the Reporting
 Period and a description of whether there have been    No significant change.
 significant changes from those of the previous
 reporting period
                                                        During the Reporting Period, profit from changes in the fair value of
                                                        hedged items amounted to RMB55.19 million; losses from the delivery of
 Description of actual profits and losses during the
                                                        due forward exchange contracts amounted to negative RMB7.31 million;
 Reporting Period
                                                        and profit from the valuation of outstanding forward exchange contracts
                                                        amounted to RMB44.81 million.
                                                        During the Reporting Period, the Company's main foreign exchange risk
                                                        exposures included foreign currency asset and liability exposures arising
                                                        from business activities such as outbound sales, raw materials
 Description of the hedging effect
                                                        procurement, and financing. The uncertain risks arising from the exchange
                                                        rate fluctuations were effectively hedged by derivative contracts with the
                                                        same purchase amounts and terms in the opposite direction.
 Approval date of the Board of Directors and the        The proposal was approved by the 29th meeting of the 7th Session of the
 General Meeting for Derivative investment for          Board of Directors held on March 30, 2023, and the 2022 Annual
 hedging purposes during the Reporting Period           General Meeting held on April 21, 2023.



2. Other Significant Events During the Reporting Period
                       Title of announcement                               Date of disclosure         Website for disclosure
 Announcement on the Certain Quota Allocation Adjustment among
                                                                           January 27, 2024
 Expected Continuing Related-Party Transactions for 2023
                                                                                                    http:/ www.cninfo.com.cn
 Announcement on Public Offering of Sci-Tech Innovation Corporate
                                                                           January 29, 2024
 Bonds (Digital Economy) (Phase 1) for Professional Investors in 2024




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                                                         First Quarter 2024 Report of TCL Technology Group Corporation



                          Section VI Quarterly Financial Statements

(I) Financial statements

1. Consolidated Balance Sheet

Prepared by: TCL Technology Group Corporation
                                                                                                            Unit: RMB
                                                                                     Balance at the beginning of the
                            Item                             Ending balance
                                                                                                 period
 Current assets:
 Monetary assets                                                   24,944,029,733                     21,924,270,872
 Settlement reserves
 Funds on loan
 Held-for-trading financial assets                                 24,227,149,499                     23,184,116,975
 Derivative financial assets                                          110,218,202                        108,007,603
 Notes receivable                                                     369,068,163                        615,391,820
 Accounts receivable                                               23,886,721,056                     22,003,651,259
 Receivables financing                                              1,943,020,838                        954,409,558
 Prepayments                                                        3,376,980,570                      2,946,288,443
 Premiums receivable
 Reinsurance accounts receivable
 Reinsurance contract provisions receivable
 Other receivables                                                  4,704,724,701                      5,706,855,391
 Of which: Interests receivable                                                 -                                  -
            Dividends receivable                                    1,381,297,611                      1,381,489,936
 Financial assets purchased under sale-back agreement                           -                                  -
 Inventories                                                       19,304,750,766                     18,481,754,865
 Including: Data resources
 Contract assets                                                      350,323,417                        343,907,118
 Held-for-sale assets                                                           -                        162,415,745
 Non-current assets due within one year                               593,040,352                        580,694,984
 Other current assets                                               7,330,962,553                      5,286,533,753
 Total current assets                                             111,140,989,850                   102,298,298,386
 Non-current assets:
 Loans and advances to customers                                                -                                 -
 Debt investments                                                     113,675,101                       122,348,768
 Other debt investments                                                         -                                 -
 Long-term receivables                                                713,436,215                       720,281,051
 Long-term equity investments                                      25,385,336,134                    25,431,271,193
 Investments in other equity instruments                              383,375,780                       386,648,418
 Other non-current financial assets                                 3,465,290,957                     2,971,566,228
 Investment property                                                  893,614,356                       911,679,154
 Fixed assets                                                     172,335,934,669                   176,422,620,794
 Construction in progress                                          19,433,344,116                    17,000,052,457
 Productive biological assets
 Oil and gas assets
 Right-of-use assets                                                6,264,937,218                      6,386,446,373
 Intangible assets                                                 18,387,779,542                     18,419,544,291
 Including: Data resources

                                                        14
                                                       First Quarter 2024 Report of TCL Technology Group Corporation


Development costs                                               2,506,826,415                        2,541,492,504
Including: Data resources
Goodwill                                                       10,527,004,047                       10,516,741,724
Long-term deferred expenses                                     3,294,567,956                        3,402,689,489
Deferred income tax assets                                      2,636,794,377                        2,246,221,719
Other non-current assets                                       14,263,818,635                       13,081,184,178
Total non-current assets                                      280,605,735,518                     280,560,788,341
Total assets                                                  391,746,725,368                     382,859,086,727
Current liabilities:
Short-term borrowings                                          10,685,553,579                        8,473,582,304
Borrowings from the Central Bank                                1,193,509,342                          995,009,514
Borrowed funds                                                              -                                    -
Held-for-trading financial liabilities                            328,127,731                          251,451,420
Derivative financial liabilities                                   43,275,218                           58,590,840
Notes payable                                                   6,755,509,159                        5,610,802,064
Accounts payable                                               29,328,388,152                       29,402,493,015
Advances from customers                                               677,665                              677,665
Contract liabilities                                            1,882,128,359                        1,899,468,140
Financial assets sold under repurchase agreements                           -                                    -
Customer deposits and deposits from other banks and
                                                                  475,445,310                          270,928,810
financial institutions
Funds for brokering securities transaction
Funds for brokering securities underwriting
Employee salaries payable                                       2,988,086,266                        3,034,496,680
Taxes and levies payable                                        1,041,097,792                          861,342,467
Other payables                                                 21,983,250,582                       22,171,403,238
Of which: Interests payable                                                 -                                    -
           Dividends payable                                       54,250,777                           54,250,777
Service charges and commissions payable
Reinsurance accounts payable
Held-for-sale liabilities                                                   -                                    -
Non-current liabilities due within one year                    25,789,723,337                       24,631,658,876
Other current liabilities                                       1,596,875,014                        1,563,244,949
Total current liabilities                                     104,091,647,506                       99,225,149,982
Non-current liabilities:
Insurance contract provisions
Long-term borrowings                                          121,600,706,725                     117,662,208,623
Bonds payable                                                   8,618,969,988                       9,113,847,771
Of which: Preferred shares
           Perpetual bonds
Lease liabilities                                               5,734,875,694                        5,737,287,693
Long-term payables                                              2,640,183,515                        2,739,444,094
Long-term employee compensation payable                            29,570,539                           29,645,007
Estimated liabilities                                             121,583,401                          117,394,992
Deferred income                                                 2,117,319,016                        1,540,647,642
Deferred income tax liabilities                                 1,446,582,227                        1,427,487,042
Other non-current liabilities
Total non-current liabilities                                 142,309,791,105                     138,367,962,864
Total liabilities                                             246,401,438,611                     237,593,112,846
Owner's equity (or shareholders' equity)
Share capital                                                  18,779,080,767                       18,779,080,767

                                                      15
                                                                   First Quarter 2024 Report of TCL Technology Group Corporation


 Other equity instruments                                                                 -                                   -
 Of which: Preferred shares
            Perpetual bonds
 Capital reserves                                                            10,835,973,616                     10,752,055,217
 Less: Treasury share                                                           718,236,786                      1,094,943,423
 Other comprehensive income                                                    -888,982,900                       -945,797,878
 Specific reserves                                                               14,144,671                         11,342,949
 Surplus reserves                                                             3,874,005,579                      3,874,005,579
 General risk reserve                                                             8,933,515                          8,933,515
 Retained earnings                                                           21,777,160,748                     21,537,190,360
 Total equity attributable to the owners of the parent
                                                                             53,682,079,210                     52,921,867,086
 company
 Non-controlling interests                                                   91,663,207,547                     92,344,106,795
 Total owner's equity                                                       145,345,286,757                    145,265,973,881
 Total liabilities and owner's equity                                    391,746,725,368                      382,859,086,727
Legal representative:                 Person-in-charge of Financial affairs:    Person-in-charge of the Financial Department:
Li Dongsheng                               Li Jian                                 Jing Chunmei

2. Consolidated Income Statement

                                                                                                                     Unit: RMB

                                    Item                                            Current balance            Prior balance
 I. Total revenue                                                                         39,946,382,780        39,465,731,391
 Including: Operating revenue                                                             39,908,458,083        39,443,242,439
      Interest income                                                                          37,924,697            22,488,952
      Earned premiums
      Service charge and commission income                                                                 -
 II. Total costs                                                                              40,367,085,554    40,491,139,667
 Of which: Operating cost                                                                     35,307,482,997    35,357,669,407
             Interest expenditures                                                                 5,895,581         5,205,619
             Service charge and commission expenditures                                                    -
             Surrender value
             Net claims payment
             Net insurance contract provisions accrued
            Policy dividend expenditures
            Reinsurance expenses
            Taxes and levies                                                                     198,854,235       171,412,685
            Sales expenses                                                                       562,546,199       520,726,236
            Administrative expenses                                                              984,278,694       937,229,625
            R&D expenses                                                                       2,207,454,463     2,593,998,005
            Financial expenses                                                                 1,100,573,385       904,898,090
            Including: Interest expenses                                                       1,336,824,794     1,145,570,837
                      Interest income                                                           208,100,403        213,027,337
 Plus: Other income                                                                             332,434,076        531,668,577
    Return on investment (losses are indicated by "-")                                          111,069,433        765,964,042
      Including: Share of profit or loss of joint ventures and associates                       -20,350,516        633,769,440
                 Income from derecognition of financial assets measured
   at amortised costs
    Exchange gains (losses are indicated by "-")                                                      7,789         -2,828,841
   Gain on net exposure hedging (losses are indicated by "-")                                             -                  -
   Gain on changes in fair value (losses are indicated by "-")                                  173,603,977        151,543,005
   Credit impairment losses (losses are indicated by "-")                                        -35,961,488       -23,968,551

                                                                 16
                                                                      First Quarter 2024 Report of TCL Technology Group Corporation


    Asset impairment losses (losses are indicated by "-")                                      -702,391,301           -338,223,994
    Income from asset disposal (losses are indicated by "-")                                     76,453,230            -15,124,996
 III. Operating profit (losses are indicated by "-")                                           -465,487,058             43,620,966
   Add: Non-operating income                                                                     23,528,519             10,152,922
   Less: Non-operating expenses                                                                  24,312,896              3,266,785
 IV. Gross profit (gross loss is indicated by "-")                                             -466,271,435             50,507,103
  Less: Income tax expenses                                                                    -132,665,572            -60,849,759
 V. Net profits (net losses are indicated by "-")                                              -333,605,863           111,356,862
    (I) Classification by business continuity
       1. Net profits from continuing operations (net losses are indicated
                                                                                               -333,605,863           111,356,862
    by "-")
       2. Net profits from discontinued operations (net losses are indicated
                                                                                                           -                       -
    by "-")
   (II) Classification by ownership
      1. Net profits attributable to the shareholders of the parent company                     239,970,389           -548,999,154
      2. Net profit attributable to non-controlling interests                                  -573,576,252            660,356,016
 VI. Other comprehensive income, net of tax                                                      60,681,004             25,847,967
   Other comprehensive income attributable to the owners of the parent
                                                                                                  50,576,585            48,006,773
   company, net of tax
  (I) Other comprehensive income that will not be reclassified to profit or
                                                                                                  -3,386,503           -19,294,731
   loss
              1. Changes arising from remeasurement of defined benefit
   plans
              2. Other comprehensive income that cannot be subsequently
                                                                                                           -               682,618
   reclassified into profits and losses under the equity method
              3. Changes in fair value of investments in other equity
                                                                                                  -3,386,503           -19,977,349
   instruments
               4. Changes in fair value of the enterprise's own credit risks                                                       -
               5. Others                                                                                                           -
   (II) Other comprehensive income that may subsequently reclassified
                                                                                                  53,963,088            67,301,504
    into profit and losses
               1. Other comprehensive income that can be transferred to
                                                                                                     14,828               -670,638
    profits and losses under the equity method
            2. Changes in fair value of other debt investments                                             -                       -
            3. Amount of financial assets reclassified into other
                                                                                                                                   -
    comprehensive income
             4. Provisions for credit impairment of other debt investments                                                       -
             5. Reserves for cash flow hedging                                                     7,722,180            32,625,420
             6. Conversion differences in foreign currency financial
                                                                                                  46,226,080            35,346,722
    statements
              7. Others                                                                                                            -
    Other net comprehensive income attributable to minority interests, net
                                                                                                  10,104,419           -22,158,806
    of tax
 VII. Total comprehensive income                                                               -272,924,859           137,204,829
   Total comprehensive income attributable to the shareholders of the
                                                                                                290,546,973           -500,992,380
   parent company
   Total comprehensive income attributable to non-controlling interests                        -563,471,832           638,197,209
 VIII. Earnings per share:
   (I) Basic earnings per share                                                                      0.0129                -0.0297
   (II) Diluted earnings per share                                                                   0.0128                -0.0292


Legal representative:                   Person-in-charge of Financial affairs:     Person-in-charge of the Financial Department:
Li Dongsheng                            Li Jian                                    Jing Chunmei

3. Consolidated Cash Flow Statement

                                                                                                                         Unit: RMB
                                                                    17
                                                          First Quarter 2024 Report of TCL Technology Group Corporation


                           Item                               Current balance                  Prior balance
I. Net cash generated from operating activities:
   Proceeds from sale of commodities and rendering
                                                                       34,317,092,852                  28,874,162,646
   of services
   Net increase of deposits from customers, banks and
                                                                          204,352,893                    -414,994,865
   other financial institutions
   Net increase of borrowings from the Central Bank                       197,084,045                     134,144,024
   Net increase of borrowings from other financial
                                                                                        -                 500,112,500
   institutions
   Cash received from collecting premiums for
   original insurance contracts
   Net cash received for reinsurance business
   Net increase of deposits and investments of
   policyholders
   Cash received from interest, service charges and
                                                                            32,922,547                     22,488,952
   commissions
   Net increase of borrowed funds from banks and
                                                                                        -                           -
   other financial institutions
   Net increase of repurchase business funds
   Net cash received from brokering securities
   transaction
   Tax and levy rebates                                                  1,232,745,372                  1,661,519,549
   Cash generated from other operating activities                        2,995,096,129                  3,130,400,647
     Sub-total of cash generated from operating
                                                                       38,979,293,838                  33,907,833,453
   activities
   Payments for commodities and services                               25,276,065,192                  23,587,210,982
   Net increase of loans and advances to customers                         95,339,843                    -558,602,998
   Net increase of deposits with the Central Bank,
                                                                          -102,445,135                    105,682,459
   banks and other financial institutions
   Cash paid for claims for original insurance
   contracts
    Net increase of funds on loan
   Cash paid for interest, service charges and
                                                                                        -                           -
   commissions
   Cash paid for policy dividends
   Cash paid to and for employees                                       3,385,466,209                   2,733,093,133
   Taxes and levies paid                                                1,142,639,741                     915,275,257
   Cash used in other operating activities                              2,585,722,056                   2,629,818,082
     Sub-total of cash used in operating activities                    32,382,787,906                  29,412,476,915
     Net cash generated from operating activities                       6,596,505,932                   4,495,356,538
II. Cash flow generated from investing activities:
   Proceeds from disinvestments                                        16,290,600,367                  15,215,716,206
   Proceeds from return on investments                                    575,956,542                     380,580,542
   Net proceeds from disposal of fixed assets,
                                                                          253,835,051                      38,716,274
   intangible assets and other long-term assets
   Net proceeds from disposal of subsidiaries and
                                                                                        -                           -
   other business units
   Cash generated from other investing activities                           23,533,065                  1,451,281,370
     Sub-total of cash generated from investment
                                                                       17,143,925,025                  17,086,294,392
   activities
   Payments for the acquisition and construction of
   fixed assets, intangible assets and other long-term                   6,604,971,676                  8,748,893,383
   assets
   Payments for investments                                            19,201,612,912                  13,350,111,306
   Net increase of pledged loans                                                    -                               -
   Net payments for acquiring subsidiaries and other
                                                                            15,805,873                              -
   business units
   Cash used in other investing activities                                286,841,021                     187,762,364
     Subtotal of cash used in investing activities                     26,109,231,482                  22,286,767,053
      Net cash used in investing activities                            -8,965,306,457                  -5,200,472,661
 III. Net cash generated from financing activities:
   Capital contributions received                                               2,000,000                  46,449,000
   Including: Capital contributions by non-controlling
                                                                                2,000,000                  46,449,000
   interests to subsidiaries
   Borrowings raised                                                   19,205,366,600                  27,287,574,742
                                                         18
                                                                   First Quarter 2024 Report of TCL Technology Group Corporation


   Cash generated from other financing activities                                 994,839,843                           36,193,437
     Sub-total of cash generated from financing
                                                                                20,202,206,443                     27,370,217,179
   activities
   Cash paid for debt repayment                                                 12,362,132,985                     18,392,118,214
   Cash paid for distribution of dividends and profits
                                                                                 1,462,312,501                       1,429,360,583
   or the repayment of interest
   Of which: Dividends and profits distributed by
                                                                                   13,294,747                           16,524,493
   subsidiaries to minority shareholders
   Cash used in other financing activities                                         652,112,281                      4,287,733,637
     Subtotal of cash used in financing activities                              14,476,557,767                     24,109,212,434
      Net cash generated from financing activities                               5,725,648,676                      3,261,004,745
 IV. Effect of exchange rate changes on cash and
                                                                                   52,422,141                         -124,222,607
   cash equivalents
 V. Net increase in cash and cash equivalents                                    3,409,270,292                       2,431,666,015
   Plus: Beginning balance of cash and cash
                                                                                19,996,815,160                     33,675,624,291
   equivalents
 VI. Ending balance of cash and cash equivalents                                23,406,085,452                     36,107,290,306

Legal representative:                  Person-in-charge of Financial affairs:      Person-in-charge of the Financial Department:
Li Dongsheng                           Li Jian                                     Jing Chunmei

(II) Adjustments to financial statement items at the beginning of the year of the first
implementation of the new accounting standards which have been implemented since 2024
□ Applicable Not Applicable

(III) Auditor's Report
Whether the First Quarter Report has been audited or not?

□Yes No

The Company's First Quarter Report has not yet been audited.




                                                                                    TCL Technology Group Corporation
                                                                                                            Board of Directors
                                                                                                                 April 28, 2024




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