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
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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
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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
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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
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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
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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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