TCL Corporation First Quarter Report 2019
TCL CORPORATION
TCL 集团股份有限公司
FIRST QUARTER REPORT 2019
23 April 2019
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TCL Corporation First Quarter Report 2019
Table of Contents
Part I Important Notes and Definitions ........................................................................................... 3
Part II Key Corporate Information ................................................................................................. 6
Part III Directors’ Report ............................................................................................................... 11
Part IV Significant Events ............................................................................................................... 18
Part V Financial Statements ........................................................................................................... 25
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TCL Corporation First Quarter Report 2019
Part I Important Notes and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of TCL Corporation (hereinafter referred to as the
“Company”) hereby guarantee the factuality, accuracy and completeness of the contents of
this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Mr. Li Dongsheng, the Chairman of the Board, Ms. Du Juan, the person-in-charge of
financial affairs (Chief Financial Officer), and Mr. Xi Wenbo, the person-in-charge of the
financial department, hereby guarantee that the financial statements carried in this Report
are factual, accurate and complete.
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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TCL Corporation First Quarter Report 2019
Definitions
Term Definition
The “Company”, the “Group”, “TCL”, “TCL TCL Corporation and its consolidated subsidiaries, except where the context
Corp.” or “we” otherwise requires
The “Reporting Period” The period from 1 January 2019 to 31 March 2019
The “Restructuring” The major asset restructuring approved at the 13th meeting of the 6th Board of
Directors on 7 December and the First Extraordinary General Meeting of 2019
on 7 January 2019
TCL Electronics TCL Electronics Holdings Limited, a majority-owned subsidiary of the
Company listed on the Stock Exchange of Hong Kong (stock code: 01070.HK)
TCL Communication TCL Communication Technology Holdings Limited
CSOT Shenzhen China Star Optoelectronics Technology Co., Ltd.
TCL Household Electric Appliance Group Huizhou TCL Household Electric Appliance Group Co., Ltd.
CDOT China Display Optoelectronics Technology Holdings Limited, a
majority-owned subsidiary of the Company listed on the Stock Exchange of
Hong Kong (stock code: 00334.HK)
Highly Highly Information Industry Co., Ltd., a majority-owned subsidiary of the
Company listed on the National Equities Exchange and Quotations (stock code:
835281)
Guangdong Juhua Guangdong Juhua Printed Display Technology Co., Ltd.
China Ray Guangzhou China Ray Optoelectronic Materials Co., Ltd.
Bank of Shanghai Bank of Shanghai Co., Ltd. (stock code: 601229.SH), with the Company
holding a 4.99% interest
712 Corp. Tianjin 712 Communication & Broadcasting Co., Ltd. (stock code:
603712.SH), with the Company holding a 19.07% interest as its second largest
shareholder
Fantasia Fantasia Holdings Group Co., Limited, a listed company on the Stock
Exchange of Hong Kong (stock code: 01777.HK), with the Company holding a
20.08% interest as its second largest shareholder
Admiralty Harbour Capital Admiralty Harbour Capital Limited
Environmental Resource Huizhou TCL Environmental Resource Co., Ltd.
Educational Web TCL Educational Web Ltd.
t1 project The generation 8.5 (or G8.5) TFT-LCD production line of CSOT
t2 project The generation 8.5 (or G8.5) TFT-LCD (including oxide semiconductor and
AMOLED) production line of CSOT
t3 project The generation 6 (or G6) LTPS LCD/AMOLED panel production line of
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TCL Corporation First Quarter Report 2019
CSOT
t4 project The generation 6 (or G6) flexible LTPS-AMOLED panel production line of
CSOT
t6 project The generation 11 (or G11) new TFT-LCD and AMOLED production line of
CSOT
t7 project The generation 11 (or G11) new ultra-high-definition (UHD) TFT-LCD and
AMOLED production line of CSOT
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TCL Corporation First Quarter Report 2019
Part II Key Corporate Information
I Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes ■ No
Seri
es Item Q1 2019 Q1 2018 Change (%)
No.
1 Operating revenue (RMB) 29,600,956,875 25,629,844,055 15.49
2 Gross profit (RMB) 5,045,955,708 4,977,411,074 1.38
3 EBITDA 4,155,509,053 3,465,538,469 19.91
4 Profit before tax (RMB) 1,219,417,833 1,057,422,453 15.32
Net profit (RMB) 1,006,077,530 788,045,509 27.67
Net profit attributable to the listed company’s 779,088,389 730,837,280 6.60
shareholders (RMB)
5
Net profit attributable to the listed company’s 560,950,806 521,159,061 7.64
shareholders before non-recurring gains and
losses (RMB)
Basic earnings per share (RMB/share) (note) 0.0578 0.0540 7.04
Diluted earnings per share (RMB/share) 0.0576 0.0540 6.67
6
Basic earnings per share before non-recurring 0.0416 0.0385 8.05
gains and losses (RMB/share)
2.54 2.38 Up by 0.16 percenta
Weighted average return on equity (%)
ge point
7
Weighted average return on equity before Up by 0.13 percenta
1.83 1.70
non-recurring gains and losses (%) ge point
Net cash generated from/used in operating 2,243,903,241 3,034,386,560 -26.05
activities (RMB)
8
Net cash per share generated from/used in 0.1656 0.2245 -26.24
operating activities (RMB/share)
31 March 2019 31 December 2018 Change (%)
9 Total assets (RMB) 198,662,703,285 192,763,941,739 3.06
10 Total liabilities (RMB) 135,200,417,778 131,892,269,092 2.51
68.06 68.42 Down by 0.36 perce
11 Debt/asset ratio (%)
ntage point
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TCL Corporation First Quarter Report 2019
Debt/asset ratio before borrowings obtained using 66.85 67.05 Down by 0.20 perce
bank deposit as a pledge and deferred income (%) ntage point
Total owners’ equity (RMB) 63,462,285,507 60,871,672,647 4.26
12 Owners’ equity attributable to the listed 31,086,614,033 30,494,364,951 1.94
company’s shareholders (RMB)
13 Share capital (share) 13,549,648,507 13,549,648,507 0.00
Equity per share attributable to the listed 2.2943 2.2506 1.94
14
company’s shareholders (RMB/share)
The total share capital at the end of the last trading session before the disclosure of this Report:
Total share capital at the end of the last trading
session before the disclosure of this Report 13,549,648,507
(share)
Fully diluted earnings per share based on the
0.0576
latest total share capital above (RMB/share)
Non-recurring gains and losses:
Unit: RMB
Item Q1 2019 Note
Gain or loss on disposal of non-current assets (inclusive of
33,746,384 Not applicable
impairment allowance write-offs)
Government subsidies charged to current profit or loss (exclusive
of government subsidies given in the Company’s ordinary course
278,312,518 Not applicable
of business at fixed quotas or amounts as per the government’s
uniform standards)
Gain or loss on fair-value changes in trading financial assets and
liabilities, as well as derivative financial assets and liabilities &
income from disposal of trading financial assets and liabilities,
10,320,281 Not applicable
derivative financial assets and liabilities, as well as investments in
other debt obligations (exclusive of the effective portion of
hedges that arise in the Company’s ordinary course of business)
Non-operating income and expense other than the above 21,508,198 Not applicable
Less: Corporate income tax -44,521,095 Not applicable
Non-controlling interests (net of tax) -81,228,703 Not applicable
Total 218,137,583 --
Explanation of why the Company reclassifies as recurrent a non-recurring gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss
Items:
□ Applicable ■ Not applicable
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TCL Corporation First Quarter Report 2019
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred shareholders
Number of ordinary shareholders at
561,950 with resumed voting rights at the
the period-end
period-end (if any)
Top 10 shareholders
Name of Nature of Shareholding Restricted shares Shares in pledge or frozen
Total shares held
shareholder shareholder percentage held Status Shares
Hubei
Changjiang Hezhi
Hanyi Equity Domestic
Investment Fund non-state-owned 6.57 890,576,845 In pledge 761,920,000
Partnership legal person
(Limited
Partnership)
Huizhou
State-owned legal
Investment 6.48 878,419,747
person
Holding Co., Ltd.
Domestic natural
Li Dongsheng 4.91 665,148,488 498,861,366 In pledge 618,980,000
person
Beijing Ziguang
State-owned legal
Investment Co., 3.49 472,768,900
person
Ltd.
Xinjiang
Dongxing Huarui
Equity Domestic
Investment non-state-owned 3.34 452,660,287 In pledge 452,660,287
Partnership legal person
(Limited
Partnership)
Xinjiang Jiutian
Liancheng Equity
Domestic
Investment
non-state-owned 3.02 408,899,521 In pledge 408,899,521
Partnership
legal person
(Limited
Partnership)
China Securities Domestic 2.75 373,231,553
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TCL Corporation First Quarter Report 2019
Finance non-state-owned
Corporation legal person
Limited
CDB Innovation State-owned legal
1.84 249,985,219
Capital Co., Ltd. person
Central Huijin
Asset State-owned legal
1.52 206,456,500
Management Co., person
Ltd.
Guangdong
Guangxin State-owned legal
1.09 147,760,683
Holdings Group person
Ltd.
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held
Type Shares
Hubei Changjiang Hezhi Hanyi
RMB-denominate
Equity Investment Fund Partnership 890,576,845 890,576,845
d ordinary stock
(Limited Partnership)
Huizhou Investment Holding Co., RMB-denominate
878,419,747 878,419,747
Ltd. d ordinary stock
Beijing Ziguang Investment Co., RMB-denominate
472,768,900 472,768,900
Ltd. d ordinary stock
Xinjiang Dongxing Huarui Equity
RMB-denominate
Investment Partnership (Limited 452,660,287 452,660,287
d ordinary stock
Partnership)
Xinjiang Jiutian Liancheng Equity
RMB-denominate
Investment Partnership (Limited 408,899,521 408,899,521
d ordinary stock
Partnership)
China Securities Finance RMB-denominate
373,231,553 373,231,553
Corporation Limited d ordinary stock
RMB-denominate
CDB Innovation Capital Co., Ltd. 249,985,219 249,985,219
d ordinary stock
Central Huijin Asset Management RMB-denominate
206,456,500 206,456,500
Co., Ltd. d ordinary stock
RMB-denominate
Li Dongsheng 166,287,122 166,287,122
d ordinary stock
Guangdong Guangxin Holdings RMB-denominate
147,760,683 147,760,683
Group Ltd. d ordinary stock
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TCL Corporation First Quarter Report 2019
Being acting-in-concert parties upon the signing of the Agreement on Acting in Concert, Mr.
Li Dongsheng and Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited
Partnership) are the biggest shareholder of the Company with a total of 1,074,048,009 shares.
Meanwhile, CDB Innovation Capital Co., Ltd., CDB Equipment Manufacturing Industrial
Related or acting-in-concert parties
Investment Fund Co., Ltd. and CDB Jingcheng (Beijing) Investment Fund Co., Ltd. are
among the shareholders above
acting-in-concert parties as CDB Innovation and CDB Equipment are both controlled by a
majority-owned subsidiary of China Development Bank Capital Co., Ltd., and CDB
Jingcheng is an investment company managed by a subsidiary of China Development Bank
Capital Co., Ltd.
Top 10 ordinary shareholders
involved in securities margin trading None
(if any)
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable ■ Not applicable
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TCL Corporation First Quarter Report 2019
Part III Directors’ Report
I Overview
For Q1 2019, the Group recorded operating revenue of RMB29.60 billion, representing a
year-on-year increase of 15.5%; core business revenue of RMB29.33 billion, rising by 15.2%
compared to a year ago; a net profit of RMB1.01 billion, representing a 27.7% year-on-year
increase; and a net profit attributable to TCL shareholders of RMB0.779 billion, representing an
increase of 6.6% compared to a year ago.
During the Reporting Period, the Group kept building its core competitiveness for faster business
growth by way of strengthening its product and technology capabilities. It continued to enhance its
product competitiveness through cultivation and innovation of core cutting-edge technologies, in
addition to refining its product and customer structures. In this period, the Group spent a total of
RMB1.58 billion on R&D, a 60.5% year-on-year increase; and it applied for 505 international
patents through PCT, representing a cumulative number of 10,495. Meanwhile, up to the end of the
Reporting Period, CSOT has applied for 15,529 Chinese patents and 7,888 U.S. patents.
In the period, focusing on improving the operating quality of assets and the profitability, the Group
deepened its reform and transformation, refined the business structure, streamlined the
organizational and management flows, as well as continued to promote cost efficiency. As a result,
the net profit margin increased to 3.40%, the expense ratio decreased by 1.88 percentage points
year-on-year, the return on equity (ROE) increased by 0.16 percentage point year-on-year, the cash
cycle is shortened by six days and the debt/asset ratio decreased to 68.1%.
The Group has divested its intelligent terminal and supporting businesses in the Restructuring, so as
to refine its business and capital structures, concentrate on the core business and transform towards
a high-tech conglomerate. The Restructuring plan has been approved at the First Extraordinary
General Meeting of 2019 on 7 January 2019 and the Group has received the transaction amount in
full on 15 April 2019. As such, the target assets in the Restructuring will be excluded from the
Group’s consolidated financial statements from Q2 2019. For Q1 2019, with the said target assets
excluded, the Group achieved a pro forma net profit of RMB925 million, up by 21.6% year-on-year;
a net profit attributable to TCL shareholders of RMB769 million, up by 5.18% year-on-year; a net
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TCL Corporation First Quarter Report 2019
profit margin of 7.76%; and a decreased debt/asset ratio to 59.1%. In addition, the Group’s capital
structure and profitability have been considerably improved.
II Core Business Analysis
Upon the completion of the Restructuring, the Group’s core businesses will be modified to comprise
the semi-conductor display and material business, the industrial finance & investment and venture
capital business and the emerging business group:
1. The Semi-Conductor Display and Material Business
It consists of CSOT, Guangdong Juhua and China Ray.
2. The Industrial Finance & Investment and Venture Capital Business
It includes TCL Finance and TCL Capital.
3. The Emerging Business Group
It comprises Highly, Educational Web and Environmental Resource.
According to its long-term development strategy, the Group will further concentrate on its core
businesses by continuing to divest non-core businesses according to the principle of maximum
value for shareholders. In pursuit of the whole-new positioning of a high-tech conglomerate, the
Group will also enter into other key basic high-tech industries when the timing is ripe by means of
M&A, etc., so as to foster new driving force.
TCL Corporation
Semi-Conductor Display Industrial Finance & Emerging Business
& Material Business Investment and VC Business Group
CSOT TCL Finance Highly
Guangdong Juhua TCL Capital Education Web
China Ray Environmental Resource
(I) The Semi-Conductor Display and Material Business
1. CSOT
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TCL Corporation First Quarter Report 2019
During Q1 2019, CSOT achieved a shipment of 5.56 million square meters, up by 17.1%
year-on-year; operating revenue of RMB7,250 million, up by 12.1% year-on-year; an EBITDA ratio
of 28.2%; and a net profit of RMB683 million, up by 35.2% as compared to Q4 2018.
Affected by the global economic downturn and the industrial cycle, CSOT’s major products saw a
significant price drop as compared to Q1 2018. To deal with that, CSOT actively promoted reform
and transformation, and managed to maintain leading operating efficiency and performance across
the global industry. Firstly, it further optimized its organization and flows for better cost efficiency.
Secondly, it increased its revenue through improving its product and technology capabilities and
refining its product structure. Thirdly, the two production bases of small- and large-sized panels
gave play to their advantage of intensive production as a way to reduce the structural costs. Finally,
the t3 plant operated at full capacity for strong sales and achieved a higher operating profit with
5.29 times of growth in shipment area and 3.95 times of growth in sales revenue as compared to Q1
2018.
CSOT’s core competitiveness lies in product and technology innovation. In the field of large-sized
panels, CSOT boasts the unique HVA technology, the industry-leading Cu-Cu+COA+PFA
manufacturing process, the application of the quantum-dot technology and the early development of
the MINI-LED back-light technology. In the field of small- and medium-sized panels, in addition to
the completed LTPS plant (t3), CSOT’s flexible AM-OLED plant (t4) is expected to achieve mass
production in Q4 2019, which targets high-end markets across the world with the HD full-screen,
flexible and foldable technologies. Meanwhile, CSOT will continue to work on the next-generation
flexible printed OLED technology so as to further strengthen its advantage of advanced
technologies.
International competitiveness is an important driver of CSOT’s business growth. In December 2018,
construction started for CSOT’s module and whole-widget integrated intelligent manufacturing park
in India, with a planned annual capacity of 8 million pieces of large-sized TV panels and 30 million
pieces of small- and medium-sized handset panels. Additionally, the rapid growth in the unit sales
of TCL TV and smart phones across the world, especially their enlarging market shares in major
countries and regions, provided a strong support for CSOT’s operating at full capacity.
Based on its world-leading advantages in the large-sized TV panel industry, CSOT will proactively
break into new application markets with high added value, including interactive whiteboards, tiled
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TCL Corporation First Quarter Report 2019
video walls, advertisement players, gaming monitor, vehicles, etc. In this way, it is marching faster
towards a multi-application-scenario display interface provider.
Currently, the global semi-conductor display industry is still experiencing a slight oversupply ,the
competition is being fiercely. But opportunities are followed with challenges. This year, in order to
support the real economy, China has unveiled a series of effective measures, including tax cuts and
encouraging technological innovations, to promote faster development of the manufacturing sector
in a high-quality manner. In view of that, CSOT, as a high-end manufacturer, is confident to
continue to grow in a healthy way with better operating results. Meanwhile, driven by technological
innovation, CSOT’s production is ramping up fast. It also maintains leading operating efficiency
and performance by way of promoting cost efficiency, further strengthens its advantages with
regard to products and new display technology through continual investment, as well as beefs up its
efforts on new application markets and major regional markets. Therefore, CSOT’s core
competitiveness is expected to strengthen further. We are confident that CSOT will achieve a
double-digit growth in sales revenue and profit for 2019.
1.1 Large-Sized Panel Business Group
During the Reporting Period, CSOT’s two G8.5 TFT-LCD production lines—t1 and t2 continued to
strengthen the position and competitive edges in the large-sized panel industry by means of
improving product development and process design, increasing product quality and enriching the
product mix. The shipment of the 32-inch product is the second highest in the world, that of the
55-inch UD product ranks first globally, and CSOT maintains the highest shipment to domestic
top-brand customers.
The G11 TFT-LCD production line—t6, mainly producing 65-inch, 75-inch and other
ultra-large-sized new display panels, is seeing an industry-leading production ramp-up and yield
rate and is expected to reach full capacity in late 2019. Meanwhile, the construction of the G11
UHD new display production line—t7 is progressing as scheduled, which is mainly responsible for
the production and sales of 65-inch, 70-inch (21:9) and 75-inch 8K UHD display panels and
AMOLED display panels, among other products.
Supporting the G8.5 and G11 production lines, the first phase of CSOT’s module and whole-widget
integrated intelligent manufacturing base—the high generation module project has realized bulk
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TCL Corporation First Quarter Report 2019
shipment to the customers. It is strengthening CSOT’s industrial manufacturing competence in the
field of large-sized panels.
1.2 Small- and Medium-Sized Panel Business Group
During the Reporting Period, the G6 LTPS-LCD production line—t3 reached a total shipment of
27.28 million pieces (the world’s third highest such shipment), up by 5.9 times year-on-year. The t3
project has also launched a production line upgrade project to satisfy the growing demand of
high-end customers. The G6 LTPS-AMOLED flexible production line—t4 is progressing smoothly
in the development and introduction of the key technologies and manufacturing process. The
capacity is ramping up and its yield rate is improving, thesample presentation and verification work
by strategic customers are well underway.
2. Guangdong Juhua
As the Group’s R&D platform of the printed display technology, Guangdong Juhua is the builder of
the "National Printed and Flexible Display Innovation Center", which is the first national innovation
center in China’s display sector. During the Reporting Period, Guangdong Juhua launched the
31-inch UHD (4K) top-emitting printed H-QLED prototype at the CES..The prototype is combined
by printed blue-light emitting OLED materials, as well as printed red- and green-light emitting
QLED materials, which is the world’s first such product adopt both advantages of
electroluminescent QLED materials and OLED materials. With a resolution as high as 3840x2160,
this product is drawing attention across the display industry.
3. China Ray
Up to the end of the Reporting Period, China Ray has developed over 700 new materials with
independent IP, including the phosphorescent host and guest materials, the fluorescent host and
guest materials, the soluble material, the soluble hole-transport material, the TADF material, the
electron transport material, the p-type doping material, the CPL material, etc. The evaporated
red-light and green-light emitting materials, as well as the solution-processed red-light emitting
materials, are all of an industry-wide advanced performance; the red-light and green-light emitting
materials and devices of printed OLED have reached domestically advanced performance. And
breakthroughs have also been made concerning the blue-light emitting materials. During the
Reporting Period, China Ray’s multiple materials passed the verification of the domestic major
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TCL Corporation First Quarter Report 2019
panel manufacturers; the assembly plant went into mass production; and mass production of certain
products has started.
(II) The Industrial Finance & Investment and Venture Capital Business
1. TCL Finance
TCL Finance mainly comprises the Group’s finance and the supply chain finance. During the
Reporting Period, the Group’s finance business enhanced its financial support to the Group’s
business development according to the Group’s strategic goals, and further improved its active
management ability for capital and risks. The operation of the Group’s finance business is
progressing smoothly. Its asset scale, gross profit, ROE and capital concentration are all of a leading
level in the industry. Upholding the service philosophy of “partner finance”, the supply chain
finance business worked on TCL’s internal businesses in a deeper manner and improved the
business output competence externally. As a result, the number of key corporate customers and the
business volume continued to increase in a rapid manner, and the consumer finance business
enjoyed healthy development, with its asset quality far better than the industry average. The number
of B2B finance clients has reached more than 12,700, while the registered retail finance clients are
over 360,000.
2. TCL Capital
TCL Capital includes the venture capital and financial investment business, as well as Admiralty
Harbour Capital Limited. Up to the end of the Reporting Period, the venture capital business
manages funds of RMB9.365 billion in total, and has accumulatively invested in 108 projects.
Currently, it owns shareholdings in listed companies such as S.C., CertusNet, Chipone, CATL,
Petro-King, Sky Solar, etc., in addition to interests in Cambricon, DK Electronic Materials,
Transwarp and so on. Harbour Capital has started operation. During the Reporting Period, it
completed one bond issue, built positions in a specialized investment account for margin trading,
obtained a funding quota and signed a prime broker agreement with Goldman Sachs. Meanwhile,
the Group holds a 19.07% interest in 712 Corp. (603712.SH), a 20.08% interest in Fantasia
Holdings (01777.HK), and a 4.99% interest in Bank of Shanghai (601229.SH).
(III) The Emerging Business Group
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TCL Corporation First Quarter Report 2019
In pursuit of the strategic goal of "sales + service", Highly Information (835281) continued to
strengthen its core competitiveness in these two aspects, improve the quality of assets, especially
that of inventories and accounts receivable, as well as increase the asset turnover ratio. As a result,
Highly Information recorded a steady growth in both sales revenue and profit.
During the Reporting Period, the enrollment for the degree courses of Educational Web was
progressing smoothly, and teacher training was steadily processing. It is also intensified the
integration of educational resources and B2C business development. The registered users of the
Internet IT vocational education platform (IMOOC) have reached 15.40 million.
Huizhou TCL Environmental Resource Co., Ltd. specializes in the collection, transportation and
overall treatment of industrial hazardous wastes, resource recycling, household appliance
dismantling and deep processing for recycling, etc. During the Reporting Period, the household
appliance dismantling and hazardous waste treatment businesses both maintained a fast growth in
profit.
The Group will withdraw from the non-core businesses as soon as possible. Meanwhile, according
to the development vision of a high-tech conglomerate, it will restructure the emerging business
group towards key, high-end and basic technologies so as to cultivate new growth drivers.
(IV) Major Target Businesses of the Restructuring
Since Q2 2019, the intelligent terminal and supporting business will be divested and excluded from
the Group’s consolidated financial statements. During the Reporting Period, by way of integrating
products technology and marketing, and with management platform integration as the theme of
work, the intelligent terminal business gradually expanded its business scaleand increased its
management efficiency ,as well as improved its profitability.
During the Reporting Period, the sales revenue of TCL Electronics increased by 22.8%
year-on-year to RMB10.75 billion (HK$12.57 billion). Supported by its global operations,
increasing strength in products and brand, as well as refined product and channel structures, the TV
unit sales of TCL Electronics increased by 32.5% year-on-year to 8.443 million sets.
With “focus on making breakthroughs, drive growth through efficiency increase and prepare for
transformation” as its operating strategies, TCL Communication concentrated on regional markets,
increased the operating efficiency of assets, as well as proactively invested in the R&D of new
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TCL Corporation First Quarter Report 2019
technology and products. TCL Communication sold 6.90 million units of products during the
Reporting Period, representing a year-on-year growth of 11%.
In face of the complicated operating environment in domestic and abroad, TCL Household Electric
Appliance Group drove product and technological transitions and upgrades, as well as promoted
cost efficiency and lean management throughout the industrial chain. During the Reporting Period,
it sold 2.742 million units of air-conditioners (a 2.8% year-on-year increase), 0.643 million units of
washing machines (a 19.5% year-on-year increase), and 0.457 million units of refrigerators (an 18.4%
year-on-year increase).
Part IV Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
■ Applicable □ Not applicable
Unit: RMB’000
Item 31 March 2019 31 December 2018 Change (%) Explanation of why
Current portion of 3,534,940 6,009,920 -41.2% Repayment of corporate bonds of
non-current liabilities RMB2.5 billion
1,111,570 3,344,450 -66.8% Repayment of short-term financing
Other current liabilities
bonds of RMB2 billion
Treasury stock 673,200 63,460 960.9% Repurchase of 179 million shares
II Progress, Influence and Solutions with regard to Significant Events
Summary of the significant event Disclosure date Index to the related announcement
Voluntary Announcement on Xiaomi
7 January 2019
Group’s Purchase of TCL Shares
The Report on the Repurchase of Certain
14 February 2019
Public Shares http://www.cninfo.com.cn
Announcement on the Ending of the
Acting-in-Concert Relationship between 27 February 2019
the Biggest Shareholder and Dongxing
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TCL Corporation First Quarter Report 2019
Huarui
Announcement on Adjusting the Upper
20 March 2019
Limit of the Share Repurchase Price
Announcement on the Investment in an
25 March 2019
Overseas Equity Investment Fund
Announcement on the Quota Allocation
and Equity Vesting of the First Top 400
and Key Personnel Stock Ownership Plan 29 March 2019
and the Global Partner Plan of TCL
Corporation
Progress of any share repurchase:
■ Applicable □ Not applicable
Up to 31 March 2019, the Company has repurchased a cumulative number of 178,870,000 shares by way of centralized bidding in its
special securities account for repurchases, accounting for 1.32% of the Company’s total share capital. With the highest trading price
being RMB4.17/share and the lowest being RMB3.15/share, the total repurchase price is RMB609,466,232.25 (exclusive of trading
charges).
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable ■ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
No such cases in the Reporting Period.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as explanation of
why:
□ Applicable ■Not applicable
V Securities Investments
Unit: RMB’000
Securi Purchased Sold in Gain/loss
Security Security Measure Beginnin Ending Accountin Funding
in Reporti in
ty ment g carrying carrying
code name Reporting ng Reporting g title source
method amount amount
type Period Period Period
Trust Not ZRT At 1,017,170 - - 1,040,550 23,380 Investmen Equity
produ applicab amortize t in debt capital
ct le d cost obligation
19
TCL Corporation First Quarter Report 2019
s
Entrus Not CDB At - 1,000,000 - 1,000,000 - Other Equity
ted applicab Win-Win amortize current capital
wealth le 2017666 d cost assets
manag
ement
Entrus Not CDB At - 1,000,000 - 1,000,000 - Other Equity
ted applicab Win-Win amortize current capital
wealth le 2017666 d cost assets
manag
ement
Entrus Not “Qianyua At 200,000 - - 202,300 2,300 Other Equity
ted applicab n-Shunxin amortize current capital
wealth le ” d cost assets
manag 2018-169
ement
Entrus Not CDB-GK At 200,000 - - 201,650 1,650 Other Equity
ted applicab CB20190 amortize current capital
wealth le 45 d cost assets
manag
ement
Entrus Not Ping An At 100,000 - - 100,980 980 Other Equity
ted applicab Bank-Cor amortize current capital
wealth le porate d cost assets
manag Structured
ement Deposits
Entrus Not CDB-GK At 100,000 - - 100,830 830 Other Equity
ted applicab CB20190 amortize current capital
wealth le 44 d cost assets
manag
ement
Bond Not ICBC At - 75,430 - 71,680 -3,750 Other Equity
applicab “Suixin amortize current capital
le E” d cost assets
(targeted)
Stock 300241. Refond At fair 40,740 - - 60,750 20,020 Trading Equity
SZ value financial capital
assets
Stock BABA ALIBAB At fair - 49,860 - 51,230 1,380 Trading Equity
A value financial capital
assets
20
TCL Corporation First Quarter Report 2019
Other securities investments 2,633,270 1,842,300 622,330 4,111,110 257,870 Not Equity
held at period-end applicable capital
Total 4,291,170 3,967,590 622,330 7,941,070 304,640
VI Investments in Derivative Financial Instruments
Funding source Mostly foreign-currency revenue
Legal matters involved (if applicable) Not applicable
Disclosure date of board
announcement approving derivative 28 April 2018
investment (if any)
Disclosure date of general meeting
announcement approving derivative Not applicable
investment (if any)
In order to effectively manage the exchange and interest rate risks of foreign currency assets,
liabilities and cash flows, the Company, after fully analyzing the market trend and predicting
the operation (including orders and capital plans), adopts forward foreign exchange
contracts, options and interest rate swaps to avoid future exchange rate and interest rate
risks. As its business scale changes subsequently, the Company will adjust the exchange rate
risk management strategy according to the actual market conditions and business plans.
Risk analysis:
1. Market risk: the financial derivatives business carried out by the Group belongs to
hedging and trading business related to main business operations, and there is a market risk
Analysis of risks and control of loss due to the fluctuation of underlying interest and exchange rates, which lead to the
measures associated with derivative fluctuation of prices of financial derivatives;
investments held in Reporting Period 2. Liquidity risk: the derivatives business carried out by the Group is an over-the-counter
(including but not limited to market transaction operated by a financial institution, and there is a risk of loss due to paying fees to
risk, liquidity risk, credit risk, the bank for the operations of evening up or selling the derivatives below the buying prices;
operational risk, legal risk, etc.) 3. Performance risk: the Group conducts the derivative business based on rolling budgets for
risk management, and there is a risk of performance failure due to deviation between the
actual operating results and budgets;
4. Other risks: in the case of specific business operations, if the operator fails to finish the
prescribed procedures for report or approval, or fails to record the financial derivative
business information accurately, timely and completely, it may result in loss of derivative
business or trading opportunities. Moreover, if the trading operator fails to fully understand
the terms of transaction contracts or product information, the Group will face the legal risks
and transaction losses therefrom.
Measures taken for risk control:
21
TCL Corporation First Quarter Report 2019
1. Basic management principles: the Group strictly follows the hedging principle and the
main purpose of locking costs and avoiding risks. It is required that the financial derivatives
business to be carried out matches the variety, size, direction and duration of spot goods, and
no speculative trading should be involved. In the selection of hedging instruments, only
simple financial derivatives that are closely related to the main business operation and meet
the requirements of hedge accounting treatment should be selected, and avoid complex
business that exceeds the prescribed business scope or is difficult to recognize in terms of
risk and pricing;
2. The Group has formulated a special risk management system tailored to the risk
characteristics of the financial derivatives business, covering all key aspects such as
pre-emptive prevention, in-process monitoring and post-processing. Professional personnel
are rationally arranged for investment decision-making, business operations and risk control.
Investment participants are required to fully understand the risks of financial derivatives
investment and strictly implement the business operations and risk management systems of
derivatives. Before starting the derivatives business, the holding company must submit to
the management department of the Group detailed business reports including its internal
approval, main product terms, operational necessity, preparations, risk analysis, risk
management strategy, fair value analysis and accounting methods, and special summary
reports on business operated. Operations can be implemented only after getting opinions
from the professional department of the Group;
3. Relevant departments should track the changes in the open market price or fair value of
financial derivatives, timely assess the risk exposure changes of invested financial
derivatives, and make reports to the board of directors on business development;
4. When the combined impairment of the fair value of derivatives and changes in the value
of the assets (if any) used for risk hedging by the Group results in a total loss or floating loss
amounting to 10% of the recently audited net assets of the Company, and the absolute
amount exceeds RMB10 million, the Group will disclose it in a timely manner.
With the rapid expansion of overseas sales, the Company keeps following the above rules in
Changes in market prices or fair value
the operation of forward foreign exchange contracts, interest rate swap contracts and futures
of derivative investments in
contracts to avoid and hedge foreign exchange risks arising from operation and financing. It
Reporting Period (fair value analysis
saw a loss of RMB35.99 million for the Reporting Period. The fair value of derivatives is
should include measurement method
determined by real-time quoted price of the foreign exchange market, based on the
and related assumptions and
difference between the contractual price and the forward exchange rate quoted immediately
parameters)
in the foreign exchange market on the balance sheet date.
Major changes in accounting policies
and specific accounting principles
adopted for derivative investments in No major changes
Reporting Period compared to last
reporting period
In view of the fact that nearly half of the main business of the Company is overseas, a wide
Opinion of independent directors on
range of settlement currencies is involved. The Company reduces exchange losses and locks
derivative investments and risk
transaction costs by reasonable financial derivatives, which helps to reduce risk control costs
control
and improve company competitiveness. Risks are effectively controlled as the Company has
22
TCL Corporation First Quarter Report 2019
taken series of measures such as conducting a rigorous internal evaluation for the operation
of financial derivatives business, establishing a corresponding regulatory mechanism,
formulating reasonable accounting policies and specific accounting principles, setting limits
for risk exposure management, and operating simple financial derivatives. The contracting
agent for financial derivatives business of the Company is a sound financial agent with good
credit standing.
The independent directors believe that the financial derivatives transactions carried out by
the Company in Q1 2019 are closely related to the daily operation needs of the Company
with controllable risks. The business is in line with the interests of minority shareholders of
the company and the relevant laws and regulations.
Positions of derivative investments at the period-end:
Unit: RMB’000
Ending contractual amount
Beginning amount Ending amount Gain/loss in as % of the Company’s
Type of contract Reporting ending net asset value
Contractual Actual Contractual Actual Period Contractu
Actual amount
amount amount amount amount al amount
1. Forward forex
25,316,330 860,700 23,208,770 777,660 36.57% 1.23%
contracts
-35,990
2. Interest rate swaps 4,653,250 139,600 4,565,310 136,960 7.19% 0.22%
3. Currency swaps 3,115,890 155,790 3,366,750 168,340 5.31% 0.27%
Total 33,085,470 1,156,090 31,140,830 1,082,960 -35,990 49.07% 1.72%
VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
Type of communication Index to main information
Date Way of communication
party communicated
18 January 2019 By visit Institutional investor www.cninfo.com.cn
12 February 2019 By visit Institutional investor www.cninfo.com.cn
18 February 2019 By visit Institutional investor www.cninfo.com.cn
19 February 2019 By visit Institutional investor www.cninfo.com.cn
20 February 2019 By visit Institutional investor www.cninfo.com.cn
20 February 2019 By visit Institutional investor www.cninfo.com.cn
25 February 2019 By visit Institutional investor www.cninfo.com.cn
27 February 2019 By visit Institutional investor www.cninfo.com.cn
1 March 2019 By visit Institutional investor www.cninfo.com.cn
23
TCL Corporation First Quarter Report 2019
4 March 2019 By visit Institutional investor www.cninfo.com.cn
7 March 2019 By visit Institutional investor www.cninfo.com.cn
20 March 2019 By visit Institutional investor www.cninfo.com.cn
28 March 2019 By visit Institutional investor www.cninfo.com.cn
29 March 2019 By visit Institutional investor www.cninfo.com.cn
VIII Irregularities in the Provision of Guarantees
□ Applicable ■Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable ■Not applicable
No such cases in the Reporting Period.
24
TCL Corporation First Quarter Report 2019
Part V Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by TCL Corporation
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 24,088,968,884.00 26,801,342,532.00
Settlement reserve
Interbank loans granted
Trading financial assets 4,264,916,057.00
Financial assets at fair value through
1,137,579,704.00
profit or loss
Derivative financial assets 54,973,850.00
Notes and accounts receivable 20,146,193,381.00 17,923,666,528.00
Including: Notes receivable 5,256,215,084.00 4,272,221,611.00
Accounts receivable 14,889,978,297.00 13,651,444,917.00
Prepayments 2,163,070,379.00 1,194,972,138.00
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 5,950,284,413.00 5,719,378,954.00
Including: Interest receivable 85,040,831.00 70,777,805.00
Dividends receivable 90,505.00 47,748,475.00
Financial assets purchased under resale
agreements
Inventories 16,426,745,707.00 19,887,971,677.00
Contractual assets
Assets classified as held for sale 18,792,459.00
Current portion of non-current assets
Other current assets 8,685,289,827.00 7,624,097,005.00
Total current assets 81,780,442,498.00 80,307,800,997.00
Non-current assets:
25
TCL Corporation First Quarter Report 2019
Loans and advances to customers 1,224,881,193.00 1,123,799,564.00
Investments in debt obligations 1,289,850,846.00
Available-for-sale financial assets 4,270,844,592.00
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 18,397,314,513.00 16,957,109,519.00
Investments in other equity instruments 1,839,955,711.00
Other non-current financial assets 361,562,403.00
Investment property 1,717,838,413.00 1,676,210,635.00
Fixed assets 41,913,424,936.00 35,983,131,306.00
Construction in progress 36,057,971,637.00 38,924,586,355.00
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 6,298,044,984.00 5,954,872,994.00
R&D expense 1,055,423,705.00 1,011,503,608.00
Goodwill 357,111,511.00 357,111,511.00
Long-term prepaid expense 1,838,972,075.00 1,861,333,252.00
Deferred income tax assets 723,763,800.00 797,881,851.00
Other non-current assets 3,806,145,060.00 3,537,755,555.00
Total non-current assets 116,882,260,787.00 112,456,140,742.00
Total assets 198,662,703,285.00 192,763,941,739.00
Current liabilities:
Short-term borrowings 15,961,294,403.00 13,287,723,834.00
Borrowings from the central bank 128,829,897.00 231,404,499.00
Interbank loans obtained 100,000,000.00
Trading financial liabilities 112,605,100.00
Financial liabilities at fair value through
212,097,067.00
profit or loss
Derivative financial liabilities 125,141,628.00
Notes and accounts payable 27,710,400,977.00 27,015,285,496.00
Advances from customers 1,911,839,686.00 1,460,773,236.00
Financial assets sold under repurchase
182,566,672.00
agreements
26
TCL Corporation First Quarter Report 2019
Customer deposits and interbank
284,563,605.00 545,052,800.00
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Payroll payable 2,140,025,325.00 2,891,392,699.00
Taxes payable 675,382,925.00 716,534,266.00
Other payables 27,739,834,774.00 23,120,774,383.00
Including: Interest payable 847,491,714.00 586,819,775.00
Dividends payable 6,609,838.00 22,552,834.00
Handling charges and commissions
payable
Reinsurance payables
Contractual liabilities
Liabilities directly associated with assets
classified as held for sale
Current portion of non-current liabilities 3,534,939,770.00 6,009,915,080.00
Other current liabilities 1,111,570,164.00 3,344,450,936.00
Total current liabilities 81,718,994,926.00 78,835,404,296.00
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 37,432,475,830.00 36,864,922,669.00
Bonds payable 12,986,708,018.00 12,985,628,025.00
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables 73,897,294.00 73,901,549.00
Long-term payroll payable 23,999,609.00 24,245,725.00
Provisions
Deferred income 2,392,116,873.00 2,637,228,528.00
Deferred income tax liabilities 445,335,289.00 440,352,161.00
Other non-current liabilities 126,889,939.00 30,586,139.00
Total non-current liabilities 53,481,422,852.00 53,056,864,796.00
Total liabilities 135,200,417,778.00 131,892,269,092.00
Owners’ equity:
Share capital 13,549,648,507.00 13,549,648,507.00
27
TCL Corporation First Quarter Report 2019
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 6,026,250,805.00 5,996,741,456.00
Less: Treasury stock 673,197,021.00 63,457,893.00
Other comprehensive income -656,354,091.00 -1,174,161,842.00
Specific reserve
Surplus reserves 2,184,261,029.00 2,184,261,029.00
General reserve 360,766.00 360,766.00
Retained earnings 10,655,644,038.00 10,000,972,928.00
Total equity attributable to owners of the
31,086,614,033.00 30,494,364,951.00
Company as the parent
Non-controlling interests 32,375,671,474.00 30,377,307,696.00
Total owners’ equity 63,462,285,507.00 60,871,672,647.00
Total liabilities and owners’ equity 198,662,703,285.00 192,763,941,739.00
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
Person-in-charge of the financial department: Xi Wenbo
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 4,403,537,268.00 1,328,706,659.00
Trading financial assets 60,751,014.00
Financial assets at fair value through
711,741,161.00
profit or loss
Derivative financial assets
Notes and accounts receivable 262,533,285.00 215,455,944.00
Including: Notes receivable 13,751,045.00 20,496,958.00
Accounts receivable 248,782,240.00 194,958,986.00
Prepayments 5,794,585.00 187,895,276.00
Other receivables 17,681,430,433.00 18,773,352,761.00
Including: Interest receivable 98,741,623.00 212,199,974.00
Dividends receivable 4,211,824,115.00 4,211,824,115.00
Inventories 105,714,578.00 825,999.00
28
TCL Corporation First Quarter Report 2019
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 26,138,285.00 1,873,961,604.00
Total current assets 22,545,899,448.00 23,091,939,404.00
Non-current assets:
Investments in debt obligations 1,289,850,846.00
Available-for-sale financial assets 1,185,429,885.00
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 42,889,513,265.00 41,803,449,993.00
Investments in other equity instruments 1,144,618,009.00
Other non-current financial assets 41,868,710.00
Investment property 4,343,712.00 5,158,426.00
Fixed assets 35,351,392.00 40,058,266.00
Construction in progress 1,241,308.00 551,693.00
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 19,547,525.00 18,776,430.00
R&D expense
Goodwill
Long-term prepaid expense 457,851,024.00 461,055,759.00
Deferred income tax assets
Other non-current assets
Total non-current assets 45,884,185,791.00 43,514,480,452.00
Total assets 68,430,085,239.00 66,606,419,856.00
Current liabilities:
Short-term borrowings 4,230,260,000.00 3,300,260,000.00
Trading financial liabilities
Financial liabilities at fair value through
profit or loss
Derivative financial liabilities 3,768,280.00
Notes and accounts payable 416,730,669.00 376,509,623.00
29
TCL Corporation First Quarter Report 2019
Advances from customers 23,602,191.00 38,614,679.00
Contractual liabilities
Payroll payable 66,765,124.00 98,753,095.00
Taxes payable 4,153,418.00 3,437,498.00
Other payables 12,041,385,946.00 6,407,741,790.00
Including: Interest payable 453,342,112.00 471,294,072.00
Dividends payable 4,549,747.00 4,549,747.00
Liabilities directly associated with assets
classified as held for sale
Current portion of non-current liabilities 3,840,956,000.00 3,000,000,000.00
Other current liabilities 2,000,000,000.00
Total current liabilities 20,627,621,628.00 15,225,316,685.00
Non-current liabilities:
Long-term borrowings 2,300,000,000.00 5,340,956,000.00
Bonds payable 12,986,708,018.00 12,985,628,025.00
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables 700,000.00 700,000.00
Long-term payroll payable 23,999,609.00 24,245,725.00
Provisions
Deferred income 54,826,723.00 51,506,173.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 15,366,234,350.00 18,403,035,923.00
Total liabilities 35,993,855,978.00 33,628,352,608.00
Owners’ equity:
Share capital 13,549,648,507.00 13,549,648,507.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 8,551,666,338.00 8,565,337,838.00
Less: Treasury stock 673,197,021.00 63,457,893.00
Other comprehensive income -25,418,345.00 -24,869,176.00
Specific reserve
30
TCL Corporation First Quarter Report 2019
Surplus reserves 1,982,196,590.00 1,982,196,590.00
Retained earnings 9,051,333,192.00 8,969,211,382.00
Total owners’ equity 32,436,229,261.00 32,978,067,248.00
Total liabilities and owners’ equity 68,430,085,239.00 66,606,419,856.00
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
Person-in-charge of the financial department: Xi Wenbo
3. Consolidated Income Statement
Unit: RMB
Item Q1 2019 Q1 2018
1. Revenue 29,650,896,518.00 25,663,947,589.00
Including: Operating revenue 29,600,956,875.00 25,629,844,055.00
Interest income 49,939,643.00 34,103,534.00
Premium income
Handling charge and commission
income
2. Costs and expenses 29,397,234,192.00 25,520,120,772.00
Including: Cost of sales 24,435,034,582.00 20,641,198,558.00
Interest expense 18,216,588.00 17,002,816.00
Handling charge and commission
expense
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 194,829,143.00 158,904,425.00
Selling expense 2,182,421,040.00 2,087,965,694.00
Administrative expense 900,923,674.00 982,319,715.00
R&D expense 1,162,045,199.00 891,141,786.00
Finance costs 309,514,284.00 451,802,288.00
Including: Interest expense 659,007,115.00 418,425,531.00
Interest income 199,963,103.00 151,314,577.00
Asset impairment loss 171,248,740.00 289,785,490.00
31
TCL Corporation First Quarter Report 2019
Credit impairment loss 23,000,942.00
Add: Other income 465,016,958.00 359,075,871.00
Return on investment (“-” for loss) 536,480,452.00 480,997,437.00
Including: Share of profit or loss of joint
233,511,429.00 193,147,151.00
ventures and associates
Foreign exchange gain (“-” for loss) -2,170,320.00 -11,582,672.00
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -55,490,496.00 89,554,383.00
Asset disposal income (“-” for loss) -410,714.00 -4,236,068.00
3. Operating profit (“-” for loss) 1,197,088,206.00 1,057,635,768.00
Add: Non-operating income 30,958,150.00 22,298,944.00
Less: Non-operating expense 8,628,523.00 22,512,259.00
4. Profit before tax (“-” for loss) 1,219,417,833.00 1,057,422,453.00
Less: Income tax expense 213,340,303.00 269,376,944.00
5. Net profit (“-” for net loss) 1,006,077,530.00 788,045,509.00
5.1 By operating continuity
5.1.1 Net profit from continuing operations
1,006,077,530.00 788,045,509.00
(“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the
779,088,389.00 730,837,280.00
Company as the parent
5.2.1 Net profit attributable to
226,989,141.00 57,208,229.00
non-controlling interests
6. Other comprehensive income, net of tax 360,421,531.00 787,217,077.00
Attributable to owners of the Company as the
182,670,669.00 616,298,668.00
parent
6.1 Items that will not be reclassified to
profit or loss
6.1.1 Changes caused by remeasurements
on defined benefit pension schemes
6.1.2 Other comprehensive income that
will not be reclassified to profit or loss under the
equity method
6.1.3 Changes in the fair value of
investments in other equity instruments
6.1.4 Changes in the fair value of the
company’s credit risks
32
TCL Corporation First Quarter Report 2019
6.1.5 Other
6.2 Items that will be reclassified to profit
182,670,669.00 616,298,668.00
or loss
6.2.1 Other comprehensive income that
will be reclassified to profit or loss under the -219,502,741.00 14,098,292.00
equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Gain/Loss on changes in the fair
31,028,892.00
value of available-for-sale financial assets
6.2.4 Other comprehensive income
arising from the reclassification of financial
assets
6.2.5 Gain/Loss arising from the
reclassification of held-to-maturity investments
to available-for-sale financial assets
6.2.6 Allowance for credit impairments in
investments in other debt obligations
6.2.7 Reserve for cash flow hedges -1,824,916.00 119,029,402.00
6.2.8 Differences arising from the
translation of foreign currency-denominated 373,035,904.00 454,721,405.00
financial statements
6.2.9 Other 30,962,422.00 -2,579,323.00
Attributable to non-controlling interests 177,750,862.00 170,918,409.00
7. Total comprehensive income 1,366,499,061.00 1,575,262,586.00
Attributable to owners of the Company as the
961,759,058.00 1,347,135,948.00
parent
Attributable to non-controlling interests 404,740,003.00 228,126,638.00
8. Earnings per share
8.1 Basic earnings per share 0.0578 0.0540
8.2 Diluted earnings per share 0.0576 0.0540
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
Person-in-charge of the financial department: Xi Wenbo
4. Income Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 2018
1. Operating revenue 391,405,520.00 388,286,981.00
Less: Cost of sales 336,142,776.00 345,516,148.00
33
TCL Corporation First Quarter Report 2019
Taxes and surcharges 5,415,554.00 3,405,914.00
Selling expense 7,861,046.00 5,521,622.00
Administrative expense 59,858,577.00 55,299,895.00
R&D expense 13,988,515.00 24,432,765.00
Finance costs 174,605,997.00 189,083,274.00
Including: Interest expense 343,515,714.00 280,527,876.00
Interest income 202,474,056.00 314,004,140.00
Asset impairment loss
Credit impairment loss
Add: Other income 3,481,500.00
Return on investment (“-” for
351,140,692.00 246,182,662.00
loss)
Including: Share of profit or
225,928,594.00 190,095,753.00
loss of joint ventures and associates
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-75,625,521.00 -60,335,621.00
for loss)
Asset disposal income (“-” for
12,900.00 2,093.00
loss)
2. Operating profit (“-” for loss) 72,542,626.00 -49,123,503.00
Add: Non-operating income 8,843,380.00 3,946,079.00
Less: Non-operating expense 656,497.00
3. Profit before tax (“-” for loss) 81,386,006.00 -45,833,921.00
Less: Income tax expense 515,489.00
4. Net profit (“-” for net loss) 81,386,006.00 -46,349,410.00
4.1 Net profit from continuing
81,386,006.00 -46,349,410.00
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
-7,092,510.00
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
34
TCL Corporation First Quarter Report 2019
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
investments in other equity instruments
5.1.4 Changes in the fair value of
the company’s credit risks
5.1.5 Other
5.2 Items that will be reclassified to
-7,092,510.00
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial 1,674,009.00
assets
5.2.4 Other comprehensive income
arising from the reclassification of
financial assets
5.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.6 Allowance for credit
impairments in investments in other
debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.9 Other -8,766,519.00
6. Total comprehensive income 81,386,006.00 -53,441,920.00
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
Person-in-charge of the financial department: Xi Wenbo
35
TCL Corporation First Quarter Report 2019
5. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
29,948,578,250.00 29,764,501,809.00
and rendering of services
Net increase in customer deposits
-260,489,195.00 136,586,069.00
and interbank deposits
Net increase in borrowings from the
-102,574,602.00 -29,593,992.00
central bank
Net increase in loans from other
100,000,000.00
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Net increase in proceeds from
disposal of financial assets at fair value
through profit or loss
Interest, handling charges and
50,234,049.00 34,372,209.00
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates 1,527,267,914.00 953,871,586.00
Cash generated from other operating
611,209,398.00 1,108,465,105.00
activities
Subtotal of cash generated from
31,874,225,814.00 31,968,202,786.00
operating activities
Payments for commodities and
22,624,066,728.00 21,970,872,817.00
services
Net increase in loans and advances
101,081,629.00 282,643,965.00
to customers
Net increase in deposits in the
central bank and in interbank loans -73,444,006.00 -3,012,530,248.00
granted
Payments for claims on original
insurance contracts
36
TCL Corporation First Quarter Report 2019
Net increase in financial assets held
for trading purposes
Net increase in interbank loans
granted
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 2,262,538,883.00 1,944,827,399.00
Taxes paid 1,528,965,251.00 1,179,065,695.00
Cash used in other operating
3,187,114,088.00 6,568,936,598.00
activities
Subtotal of cash used in operating
29,630,322,573.00 28,933,816,226.00
activities
Net cash generated from/used in
2,243,903,241.00 3,034,386,560.00
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 6,994,293,557.00 560,035,833.00
Return on investment 107,806,341.00 129,226,315.00
Net proceeds from the disposal of
fixed assets, intangible assets and other 12,094,929.00 3,393,822.00
long-lived assets
Net proceeds from the disposal of
857,657,948.00 61,928,394.00
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
7,971,852,775.00 754,584,364.00
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 6,728,764,686.00 5,368,257,854.00
long-lived assets
Payments for investments 7,860,153,161.00 6,579,130,823.00
Net increase in pledged loans
granted
Net payments for the acquisition of
170,197,901.00
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
14,759,115,748.00 11,947,388,677.00
activities
Net cash generated from/used in
-6,787,262,973.00 -11,192,804,313.00
investing activities
37
TCL Corporation First Quarter Report 2019
3. Cash flows from financing activities:
Capital contributions received 1,717,989,160.00 1,557,219,649.00
Including: Capital contributions
by non-controlling interests to 1,717,989,160.00 1,557,219,649.00
subsidiaries
Borrowings obtained 11,450,834,740.00 12,661,658,722.00
Net proceeds from the issuance of
bonds
Cash generated from other financing
3,508,750.00
activities
Subtotal of cash generated from
13,168,823,900.00 14,222,387,121.00
financing activities
Repayments of borrowings 10,215,385,719.00 8,721,285,702.00
Payments for interest and dividends 633,721,052.00 705,027,234.00
Including: Dividends paid by
29,586,633.00 32,655,333.00
subsidiaries to non-controlling interests
Cash used in other financing
650,919,985.00 28,400,000.00
activities
Subtotal of cash used in financing
11,500,026,756.00 9,454,712,936.00
activities
Net cash generated from/used in
1,668,797,144.00 4,767,674,185.00
financing activities
4. Effect of foreign exchange rate
141,176,713.00 -636,628,114.00
changes on cash and cash equivalents
5. Net increase in cash and cash
-2,733,385,875.00 -4,027,371,682.00
equivalents
Add: Cash and cash equivalents,
25,702,383,482.00 23,281,170,084.00
beginning of the period
6. Cash and cash equivalents, end of
22,968,997,607.00 19,253,798,402.00
the period
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
Person-in-charge of the financial department: Xi Wenbo
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
323,551,914.00 403,410,287.00
and rendering of services
Tax rebates 332,021.00
38
TCL Corporation First Quarter Report 2019
Cash generated from other operating
6,660,157,054.00 5,832,730,512.00
activities
Subtotal of cash generated from
6,984,040,989.00 6,236,140,799.00
operating activities
Payments for commodities and
362,320,629.00 466,906,357.00
services
Cash paid to and for employees 44,495,298.00 55,085,763.00
Taxes paid 18,593,335.00 20,124,908.00
Cash used in other operating
2,809,080,047.00 337,042,985.00
activities
Subtotal of cash used in operating
3,234,489,309.00 879,160,013.00
activities
Net cash generated from/used in
3,749,551,680.00 5,356,980,786.00
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 5,542,600,000.00 199,017,050.00
Return on investment 54,718,062.00 69,966,648.00
Net proceeds from the disposal of
fixed assets, intangible assets and other 88,286.00 2,449.00
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
5,597,406,348.00 268,986,147.00
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 4,812,806.00 1,979,464.00
long-lived assets
Payments for investments 1,992,870,615.00 5,584,993,272.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
1,997,683,421.00 5,586,972,736.00
activities
Net cash generated from/used in
3,599,722,927.00 -5,317,986,589.00
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings obtained 3,810,956,000.00 3,561,712,000.00
39
TCL Corporation First Quarter Report 2019
Net proceeds from the issuance of
bonds
Cash generated from other financing
activities
Subtotal of cash generated from
3,810,956,000.00 3,561,712,000.00
financing activities
Repayments of borrowings 7,080,956,000.00 3,066,712,000.00
Payments for interest and dividends 323,287,951.00 3,238,037.00
Cash used in other financing
650,919,985.00
activities
Subtotal of cash used in financing
8,055,163,936.00 3,069,950,037.00
activities
Net cash generated from/used in
-4,244,207,936.00 491,761,963.00
financing activities
4. Effect of foreign exchange rate
-30,210,032.00 -42,912,814.00
changes on cash and cash equivalents
5. Net increase in cash and cash
3,074,856,639.00 487,843,346.00
equivalents
Add: Cash and cash equivalents,
1,328,680,629.00 1,106,498,974.00
beginning of the period
6. Cash and cash equivalents, end of
4,403,537,268.00 1,594,342,320.00
the period
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
Person-in-charge of the financial department: Xi Wenbo
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases
√ Applicable □ Not applicable
The consolidated balance sheet:
Unit: RMB
Item 31 December 2018 1 January 2019 Adjustment
Current assets:
Monetary capital 26,801,342,532.00 26,801,342,532.00 -
Settlement reserve
Interbank loans granted
Trading financial assets Not applicable 2,572,150,493.00 2,572,150,493.00
40
TCL Corporation First Quarter Report 2019
Financial assets at fair
1,137,579,704.00 Not applicable -1,137,579,704.00
value through profit or loss
Derivative financial assets 197,798,188.00 197,798,188.00
Notes and accounts
17,923,666,528.00 17,919,785,805.00 -3,880,723.00
receivable
Including: Notes
4,272,221,611.00 4,272,221,611.00
receivable
Accounts
13,651,444,917.00 13,647,564,194.00 -3,880,723.00
receivable
Prepayments 1,194,972,138.00 1,194,972,138.00 -
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 5,719,378,954.00 5,716,183,466.00 -3,195,488.00
Including: Interest
70,777,805.00 70,777,109.00 -696.00
receivable
Dividends
47,748,475.00 47,748,475.00 -
receivable
Financial assets purchased
under resale agreements
Inventories 19,887,971,677.00 19,887,971,677.00 -
Contractual assets Not applicable
Assets classified as held
18,792,459.00 18,792,459.00 -
for sale
Current portion of
non-current assets
Other current assets 7,624,097,005.00 7,624,097,005.00 -
Total current assets 80,307,800,997.00 81,933,093,763.00 1,625,292,766.00
Non-current assets:
Loans and advances to
1,123,799,564.00 1,123,799,564.00 -
customers
Investments in debt
Not applicable
obligations
Available-for-sale financial
4,270,844,592.00 Not applicable -4,270,844,592.00
assets
Investments in other debt
Not applicable
obligations
Held-to-maturity - Not applicable -
41
TCL Corporation First Quarter Report 2019
investments
Long-term receivables
Long-term equity
16,957,109,519.00 17,178,411,552.00 221,302,033.00
investments
Investments in other equity
Not applicable 1,618,075,184.00 1,618,075,184.00
instruments
Other non-current financial
Not applicable 1,034,117,327.00 1,034,117,327.00
assets
Investment property 1,676,210,635.00 1,676,210,635.00 -
Fixed assets 35,983,131,306.00 35,983,131,306.00 -
Construction in progress 38,924,586,355.00 38,924,586,355.00 -
Productive living assets
Oil and gas assets
Right-of-use assets Not applicable
Intangible assets 5,954,872,994.00 5,954,872,994.00 -
R&D expense 1,011,503,608.00 1,011,503,608.00 -
Goodwill 357,111,511.00 357,111,511.00 -
Long-term prepaid
1,861,333,252.00 1,861,333,252.00 -
expense
Deferred income tax assets 797,881,851.00 797,881,851.00 -
Other non-current assets 3,537,755,555.00 3,537,755,555.00 -
Total non-current assets 112,456,140,742.00 111,058,790,694.00 -1,397,350,048.00
Total assets 192,763,941,739.00 192,991,884,457.00 227,942,718.00
Current liabilities:
Short-term borrowings 13,287,723,834.00 13,287,723,834.00 -
Borrowings from the
231,404,499.00 231,404,499.00 -
central bank
Interbank loans obtained
Trading financial liabilities Not applicable 143,456,979.00 143,456,979.00
Financial liabilities at fair
212,097,067.00 Not applicable -212,097,067.00
value through profit or loss
Derivative financial
68,640,088.00 68,640,088.00
liabilities
Notes and accounts
27,015,285,496.00 27,015,285,496.00 -
payable
Advances from customers 1,460,773,236.00 1,460,773,236.00 -
Financial assets sold under
repurchase agreements
42
TCL Corporation First Quarter Report 2019
Customer deposits and
545,052,800.00 545,052,800.00 -
interbank deposits
Payables for acting trading
of securities
Payables for underwriting
of securities
Payroll payable 2,891,392,699.00 2,891,392,699.00 -
Taxes payable 716,534,266.00 716,534,266.00 -
Other payables 23,120,774,383.00 23,120,774,383.00 -
Including: Interest
586,819,775.00 586,819,775.00 -
payable
Dividends
22,552,834.00 22,552,834.00 -
payable
Handling charges and
commissions payable
Reinsurance payables
Contractual liabilities Not applicable
Liabilities directly
associated with assets
classified as held for sale
Current portion of
6,009,915,080.00 6,009,915,080.00 -
non-current liabilities
Other current liabilities 3,344,450,936.00 3,344,450,936.00 -
Total current liabilities 78,835,404,296.00 78,835,404,296.00 -
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 36,864,922,669.00 36,864,922,669.00 -
Bonds payable 12,985,628,025.00 12,985,628,025.00 -
Including: Preferred
shares
Perpetual
bonds
Lease liabilities Not applicable
Long-term payables 73,901,549.00 73,901,549.00 -
Long-term payroll payable 24,245,725.00 24,245,725.00 -
Provisions
Deferred income 2,637,228,528.00 2,637,228,528.00 -
Deferred income tax
440,352,161.00 441,171,726.00 819,565.00
liabilities
43
TCL Corporation First Quarter Report 2019
Other non-current
30,586,139.00 30,586,139.00 -
liabilities
Total non-current liabilities 53,056,864,796.00 53,057,684,361.00 819,565.00
Total liabilities 131,892,269,092.00 131,893,088,657.00 819,565.00
Owners’ equity:
Share capital 13,549,648,507.00 13,549,648,507.00 -
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 5,996,741,456.00 5,996,741,456.00 -
Less: Treasury stock 63,457,893.00 63,457,893.00 -
Other comprehensive
-1,174,161,842.00 -839,211,395.00 334,950,447.00
income
Specific reserve
Surplus reserves 2,184,261,029.00 2,184,261,029.00 -
General reserve 360,766.00 360,766.00 -
Retained earnings 10,000,972,928.00 9,894,139,954.00 -106,832,974.00
Total equity attributable to
owners of the Company as 30,494,364,951.00 30,722,482,424.00 228,117,473.00
the parent
Non-controlling interests 30,377,307,696.00 30,376,313,376.00 -994,320.00
Total owners’ equity 60,871,672,647.00 61,098,795,800.00 227,123,153.00
Total liabilities and owners’
192,763,941,739.00 192,991,884,457.00 227,942,718.00
equity
Notes to the adjustments:
The balance sheet of the Company as the parent:
Unit: RMB
Item 31 December 2018 1 January 2019 Adjustment
Current assets:
Monetary capital 1,328,706,659.00 1,328,706,659.00 -
Trading financial assets Not applicable 40,735,804.00 40,735,804.00
Financial assets at fair
711,741,161.00 Not applicable -711,741,161.00
value through profit or loss
Derivative financial assets 2,802,750.00 2,802,750.00
Notes and accounts 215,455,944.00 215,455,944.00 -
44
TCL Corporation First Quarter Report 2019
receivable
Including: Notes
20,496,958.00 20,496,958.00 -
receivable
Accounts
194,958,986.00 194,958,986.00 -
receivable
Prepayments 187,895,276.00 187,895,276.00 -
Other receivables 18,773,352,761.00 18,773,352,761.00 -
Including: Interest
212,199,974.00 212,199,974.00 -
receivable
Dividends
4,211,824,115.00 4,211,824,115.00 -
receivable
Inventories 825,999.00 825,999.00 -
Contractual assets Not applicable
Assets classified as held
for sale
Current portion of
non-current assets
Other current assets 1,873,961,604.00 1,873,961,604.00 -
Total current assets 23,091,939,404.00 22,423,736,797.00 -668,202,607.00
Non-current assets:
Investments in debt
Not applicable
obligations
Available-for-sale financial
1,185,429,885.00 Not applicable -1,185,429,885.00
assets
Investments in other debt
Not applicable
obligations
Held-to-maturity
Not applicable
investments
Long-term receivables
Long-term equity
41,803,449,993.00 41,803,449,993.00 -
investments
Investments in other equity
Not applicable 1,144,694,080.00 1,144,694,080.00
instruments
Other non-current financial
Not applicable 708,938,412.00 708,938,412.00
assets
Investment property 5,158,426.00 5,158,426.00 -
Fixed assets 40,058,266.00 40,058,266.00 -
Construction in progress 551,693.00 551,693.00 -
45
TCL Corporation First Quarter Report 2019
Productive living assets
Oil and gas assets
Right-of-use assets Not applicable
Intangible assets 18,776,430.00 18,776,430.00 -
R&D expense
Goodwill
Long-term prepaid
461,055,759.00 461,055,759.00 -
expense
Deferred income tax assets
Other non-current assets
Total non-current assets 43,514,480,452.00 44,182,683,059.00 668,202,607.00
Total assets 66,606,419,856.00 66,606,419,856.00 -
Current liabilities:
Short-term borrowings 3,300,260,000.00 3,300,260,000.00 -
Trading financial liabilities Not applicable
Financial liabilities at fair
Not applicable
value through profit or loss
Derivative financial
liabilities
Notes and accounts -
376,509,623.00 376,509,623.00
payable
Advances from customers 38,614,679.00 38,614,679.00 -
Contractual liabilities Not applicable
Payroll payable 98,753,095.00 98,753,095.00 -
Taxes payable 3,437,498.00 3,437,498.00 -
Other payables 6,407,741,790.00 6,407,741,790.00 -
Including: Interest -
471,294,072.00 471,294,072.00
payable
Dividends -
4,549,747.00 4,549,747.00
payable
Liabilities directly
associated with assets
classified as held for sale
Current portion of -
3,000,000,000.00 3,000,000,000.00
non-current liabilities
Other current liabilities 2,000,000,000.00 2,000,000,000.00 -
Total current liabilities 15,225,316,685.00 15,225,316,685.00 -
46
TCL Corporation First Quarter Report 2019
Non-current liabilities:
Long-term borrowings 5,340,956,000.00 5,340,956,000.00 -
Bonds payable 12,985,628,025.00 12,985,628,025.00 -
Including: Preferred
shares
Perpetual
bonds
Lease liabilities Not applicable
Long-term payables 700,000.00 700,000.00 -
Long-term payroll payable 24,245,725.00 24,245,725.00 -
Provisions
Deferred income 51,506,173.00 51,506,173.00 -
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 18,403,035,923.00 18,403,035,923.00 -
Total liabilities 33,628,352,608.00 33,628,352,608.00 -
Owners’ equity:
Share capital 13,549,648,507.00 13,549,648,507.00 -
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 8,565,337,838.00 8,565,337,838.00 -
Less: Treasury stock 63,457,893.00 63,457,893.00 -
Other comprehensive
-24,869,176.00 -25,604,980.00 -735,804.00
income
Specific reserve
Surplus reserves 1,982,196,590.00 1,982,196,590.00 -
Retained earnings 8,969,211,382.00 8,969,947,186.00 735,804.00
Total owners’ equity 32,978,067,248.00 32,978,067,248.00 -
Total liabilities and owners’ -
66,606,419,856.00 66,606,419,856.00
equity
47
TCL Corporation First Quarter Report 2019
2. Retrospective Restatement of Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases
■ Applicable □ Not applicable
The Company adopts the new accounting standard governing financial instruments starting from 1 January 2019 and adjusts the
format of its financial statements according to the Notice of the Ministry of Finance on Revising and Issuing the Format of the 2018
Annual Financial Statements of General Enterprises. And the affected financial statement items and amounts are shown in the two
financial statements above.
III Independent Auditor’s Report
Indicate whether the financial statements above have been audited by an independent auditor.
□ Yes ■ No
Indicate whether the independent auditor’s report is modified.
□ Yes ■ No
48
