Third Quarter Report 2019 of TCL Corporation
TCL 集团股份有限公司
TCL CORPORATION
Third Quarter Report 2019
31 October 2019
1
Third Quarter Report 2019 of TCL Corporation
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of TCL Corporation (hereinafter referred to as the
“Company” or the “Group”) 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, Chairman of the Board of the Company, and Ms. Du Juan, Principal in
charge of accounting (CFO), and Mr. Xi Wenbo, head of the financial department, hereby
guarantee that the financial statements carried in this Report are factual, accurate and
complete.
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Third Quarter Report 2019 of TCL Corporation
Table of Contents
Part I Important Notes, Table of Contents and Definitions ................................................ 2
Part II Key Corporate Information ........................................................................................ 4
Part III Management Discussion and Analysis ........................................................................ 4
Part IV Significant Events .......................................................................................................... 7
Part V Financial Statements .................................................................................................... 13
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Third Quarter Report 2019 of TCL Corporation
Definitions
Term Definition
The “Company”, the “Group” TCL Corporation
The “Reporting Period” The period from 1 July 2019 to 30 September 2019
Reference Basis or Reference Report Excluding the impact of restructuring business data, the Company prepares the
financial report for Q1~Q3 2019 and the corresponding period of prior year
according to the consolidation scope after restructuring.
Reorganization The Company held the 13th meeting of the 6th Board of Directors on 7 December
2018 and held the 1st Extraordinary Shareholders’ General Meeting of on 7
January 2019 to review and approve the relevant proposals and implementation
of major asset restructuring matters.
CSOT Shenzhen China Star Optoelectronics Technology Co., Ltd.
Wuhan CSOT Wuhan China Star Optoelectronics Technology Co., Ltd.
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 5.14% 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 (stock code: 01777.HK), with the
Company holding a 20.08% interest as its second largest shareholder
Admiralty Harbour Capital Admiralty Harbour Capital Limited
China Innovative Capital Management China Innovative Capital Management Limited
Open Edutainment Beijing National Center for Open & Distance Education Co., 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 production line of CSOT
t3 project The generation 6 (or G6) LTPS-LCD panel production line of 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 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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Third Quarter Report 2019 of TCL Corporation
Part II Key Corporate Information
I. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes ■ No
SN Item Q1~Q3 2019 Q1~Q3 2018 Change (%)
1 Note 58,817,666,092 82,237,144,880 -28.48
Operating revenue (RMB)
2 EBITDA (RMB) 11,628,483,268 10,980,668,039 5.90
Net profit (RMB) 3,487,414,307 2,875,954,102 21.26
Net profit attributable to the listed 3.52
2,577,329,981 2,489,661,515
company’s shareholders (RMB)
3
Net profit attributable to the listed
company’s shareholders before non- 503,396,307 1,594,799,286 -68.44
recurring gains and losses (RMB)
Basic earnings per share (RMB/share) 0.1946 0.1842 5.65
4
Diluted earnings per share (RMB/share) 0.1902 0.1840 3.37
5 Weighted average return on equity (%) 8.85 8.65 0.2
Net cash generated from/used in operating 0.70
7,609,274,189 7,556,432,868
activities (RMB)
6
Net cash per share generated from/used in 0.70
0.5616 0.5577
operating activities (RMB/share)
30 September 2019 31 December 2018 Change (%)
7 Total assets (RMB) 161,733,012,431 192,763,941,739 -16.1
Total owners’ equity (RMB) 64,194,513,642 60,871,672,647 5.46
8 Owners’ equity attributable to the listed
30,402,435,279 30,494,364,951 -0.30
company’s shareholders (RMB)
9 Share capital (share) 13,549,648,507 13,549,648,507 0.00
Equity per share attributable to the listed
10 2.2438 2.2506 -0.30
company’s shareholders (RMB/share)
Note: In April 2019, the Company completed the handover of major assets in a restructuring. Therefore, the operating revenue data of
Q1~Q3 2019 and Q1~Q3 2018 are not comparable as the former only includes the January-March 2019 operating revenue generated
by the said assets, while the latter comprises the January-September 2018 such revenue. On the reference basis, the Q1~Q3 2019
operating revenue would be up by 19.23% year-on-year.
The total share capital at the end of the last trading session before the disclosure of this Report:
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Third Quarter Report 2019 of TCL Corporation
Total share capital at the end of the last trading
13,528,438,719
session before the disclosure of this Report (share)
Fully diluted earnings per share based on the latest total share capital above:
Fully diluted earnings per share based on the latest
0.1905
total share capital above (RMB/share)
Note: After the restructuring, the Company has transformed into a global high-tech conglomerate concentrating on the semi-conductor
display and materials business. The key operational philosophy and mission of the Company is to create value for and grow with the
shareholders. In order to effectively protect shareholders’ interests and improve shareholder value, the Company carried out a share
repurchase programme during the Reporting Period. Up to the disclosure date of this Report, 502,108,222 shares have been repurchased,
of which 3,875,613 shares have been used for the 2019 Restricted Stock Incentive Plan which is the Second Global Innovation Partner
Plan, 33,391,897 shares have been used for the Second Global Partner Plan with the relevant non-transaction transfer already completed,
and the rest will be kept as treasury shares and used for employee stock ownership plans, equity incentive plans or convertible bonds.
The key financial information of Q1~Q3 2019 and Q1~Q3 2018 exclusive of the effects of the businesses of the restructuring (pro
forma data presented based on the consolidation scope after the restructuring) is as follows:
Series
Item Q1~Q3 2019 Q1~Q3 2018 Change (%)
No.
1 Operating revenue (RMB) 41,155,521,088 34,516,849,258 19.23
2 EBITDA (RMB) 11,185,231,704 8,512,067,043 31.40
Net profit (RMB) 3,393,704,069 2,450,815,301 38.47
3 Net profit attributable to the listed 2,577,342,044 2,160,702,740 19.28
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before non- 566,036,298 1,259,589,648 -55.06
recurring gains and losses (RMB)
Basic earnings per share (RMB/share) 0.1946 0.1599 21.70
4
Diluted earnings per share (RMB/share) 0.1902 0.1596 19.17
5 Weighted average return on equity (%) 8.85 7.08 1.77
Note: The data of Q1~Q3 2019 and Q1~Q3 2018 in the table above exclude the results of the businesses of the restructuring.
Non-recurring gains and losses:
Unit: RMB
Item Q1~Q3 2019 Note
Gain or loss on disposal of non-current assets (inclusive of
1,306,635,794 N/A
impairment allowance write-offs)
Government subsidies charged to current profit or loss (exclusive
of government subsidies given in the Company’s ordinary course 866,210,360 N/A
of business at fixed quotas or amounts as per government’s
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Third Quarter Report 2019 of TCL Corporation
uniform standards)
Gain or loss on fair-value changes in trading financial assets and
liabilities & investment income from disposal of trading financial
assets and liabilities and available-for-sale financial assets 161,115,198 N/A
(exclusive of effective portion of hedges that arise in the
Company’s ordinary course of business)
Other 103,020,541 N/A
Less: Corporate income tax 133,708,269 N/A
Minority interests (net of tax) 229,339,950 N/A
Total 2,073,933,674 --
Explain the reasons if the Company classifies an item as a non-recurring profit/loss according to the definition in the , or classifies any non-recurring profit/loss item mentioned in the said explanatory announcement as a recurring profit/loss item
□ Applicable ■ N/A
No such cases for the Reporting Period.
II. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting
Rights as well as Holdings of Top 10 Shareholders
Unit: share
Number of preferred
Number of ordinary shareholders 489,699 shareholders with resumed -
voting rights (if any)
Top 10 shareholders
Name of Nature of Shareholding Shares in pledge or frozen
Number of shares Restricted shares
shareholder shareholder percentage% Status Status
Li Dongsheng In
Li Dongsheng 579,480,000
Domestic natural pledge
and his acting-in- 9.02 1,221,748,009 609,636,366
person Jiutian Liancheng
concert parties 408,899,521
In pledge
Huizhou
State-owned legal
Investment 6.48 878,419,747
person
Holding Co., Ltd.
Hubei
Changjiang Hezhi Domestic non-
Hanyi Equity state-owned legal 4.97 673,965,188
Investment Fund person
Partnership
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Third Quarter Report 2019 of TCL Corporation
(Limited
Partnership)
China Securities
Domestic non-
Finance
state-owned legal 2.75 373,231,553
Corporation
person
Limited
Xinjiang
Dongxing Huarui
Equity Domestic non-
Investment state-owned legal 1.85 250,726,210
Partnership person
(Limited
Partnership)
Hong Kong
Securities Foreign legal
1.79 242,181,788
Clearing person
Company Ltd.
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.
Xiaomi Domestic non-
Technology Co., state-owned legal 1.00 134,949,437
Ltd. person
CDB Innovation State-owned legal
0.87 118,065,919
Capital Co., Ltd. person
Top 10 unrestricted shareholders
Type of shares
Name of shareholder Unrestricted shares
Type Shares
RMB-
Huizhou Investment Holding Co.,
878,419,747 denominated 878,419,747
Ltd.
ordinary stock
Hubei Changjiang Hezhi Hanyi RMB-
Equity Investment Fund Partnership 673,965,188 denominated 673,965,188
(Limited Partnership) ordinary stock
Li Dongsheng and his acting-in- 612,111,643 RMB- 612,111,643
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Third Quarter Report 2019 of TCL Corporation
concert parties denominated
ordinary stock
RMB-
China Securities Finance
373,231,553 denominated 373,231,553
Corporation Limited
ordinary stock
Xinjiang Dongxing Huarui Equity RMB-
Investment Partnership (Limited 250,726,210 denominated 250,726,210
Partnership) ordinary stock
RMB-
Hong Kong Securities Clearing
242,181,788 denominated 242,181,788
Company Ltd.
ordinary stock
RMB-
Central Huijin Asset Management
206,456,500 denominated 206,456,500
Co., Ltd.
ordinary stock
RMB-
Guangdong Guangxin Holdings
147,760,683 denominated 147,760,683
Group Ltd.
ordinary stock
RMB-
Xiaomi Technology Co., Ltd. 134,949,437 denominated 134,949,437
ordinary stock
RMB-
CDB Innovation Capital Co., Ltd. 118,065,919 denominated 118,065,919
ordinary stock
Being acting-in-concert parties upon the signing of the Agreement on Acting in Concert, Mr.
Related or acting-in-concert parties
Li Dongsheng and Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited
among the shareholders above
Partnership) are the biggest shareholder of the Company with a total of 1,221,748,000 shares.
Shareholders involved in securities
N/A
margin trading (if any)
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable ■ N/A
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Third Quarter Report 2019 of TCL Corporation
Part III Management Discussion and Analysis
I. Overview
The Company focused on its core business and achieved solid growth in operating results. This
April, TCL successfully spin-off the intelligent terminal and supporting business in restructuring and
fully transformed into a global high-tech conglomerate focusing on the semi-conductor display and
materials business. During Q1-Q3 2019, on a reference basis, the Company achieved operating
revenue of 41.16 billion, up by 19.2% year-on-year; and a net profit of 3.39 billion, representing a
year-on-year growth of 38.5%, of which the net profit attributable to the listed company’s
shareholders amounted to2.58 billion, up by 19.3% year-on-year.
Affected by global economic growth slowly and concentrated release of capacity in panel industry,
global semi-conductor display industry has continued over-supplying , the price of large-sized panel
has declined continuouslyand overseas panel manufacturers has faced greater losses, which
accelerated industrial restructuring and shuffling. Chinese enterprises are enjoying increasingly
prominent advantages in business scale and efficiency in display industry, with the industrial chain
has accelerated transforming into china, the development of new technologies has provided
opportunities for chinese display industry to catch up the global leading level.Therefor,China will
become a main force driving the development of display industry. As the “Survival of the Fittest” at
the supply side is further intensified, as well as rapid growth in commercial display, new
applications and new markets at the demand side, which will drive panel industry into great reforms
and opportunities.
The Company has further strengthened its leading advantages in operating efficiency and
performance by streamlining the organizational structure and redesigning business flows
according to the operational philosophy of maximizing cost efficiency. The Company’s per-capita
net profit has increased from RMB28,500 to RMB 76,100, expense ratio has decreased from 16.1%
to 13.0%. With a solid capital structure, the Company’s debt/assets ratio has dropped from 68.4% to
60.3% ,the operating cash flow amounted to RMB7.61 billion, which suggests more sustainability.
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Third Quarter Report 2019 of TCL Corporation
Competitive edges have been established with product development and process application as
the basis, driven by product and technological innovation. During Q1-Q3 2019, TCL spent a total
of RMB3.89 billion on R&D and filed for 1,527 PCT patents, with published patents of quantum dot
ranking the second globally. During the Reporting Period, CSOT launched the “Star Screen” Mini-
LED backlight product, which adopts the TFT-LCD process driven by LED backlight technology
with multi-segment dynamic control. The product offers significantly improved image contrast and
definition, which will consolidate dominant position of large-sized display products in the high-end
market. In the field of AMOLED, the company is focusing on the technology development and
application of flexible and foldable screens, CSOT has independently built a new laminated structure
that allows a switch between dual fold forms of outer fold and inner fold, which satisfied
differentiated demands of different customers.
Advantages of scale based on technology upgrading have been further enhanced and product
mix has been further optimized with focus on the extension of multi-scenario applicationas well
as the improvement of product economic performances. TCL CSOT has experienced a rapid
capacity ramping-up of t6 plant and a smooth construction of t7 project which is positioned to UHD.
With improved performances optimized by processes , the sixth-generation LTPS production line has
continued to increase capacity beyond its designed capacity and the sixth-generation flexible
AMOLED production line will put into mass production soon. In the next five years, the total shipping
area of CSOT will reach 18% CAGR ,which will account for a much larger market share. The coming
of 5G era is driving continuous diversification of terminal applications. Through in-depth cooperation
with industrial leaders, CSOT has launched emerging display applications such as “intelligent screen”
and “smart screen”, to jointly promote the building of multi-scenario IoT ecosystem with big
household screens as the core application and to keep improving interaction modes and user
experience with display as the core medium. CSOT’s market share of 55-inch TV panels has ranked
NO.1 in global, LTPS mobile panels and 86-inch commercial display panels has ranked No. 2 globally
for both, and the income from small and medium-sized products is taking up 44.8% of the total
income.
Take the lead in developing internationalization to refine the manufacturing system and
management capabilities for global customers. On September 26, the construction of the module
and whole-widget integrated intelligent manufacturing park in India under the cooperation of TCL
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Third Quarter Report 2019 of TCL Corporation
CSOT and TCL Electronics officially kicked off. According to the plan, the Phase I project will
produce 8 million pieces of 26-55 inch large-sized and 30 million pieces of 3.5-8 inch small- and
medium-sized modules annually, and mass production is expected to be delivered in the first half of
2020. As the third largest TV market and second largest mobile phone market in the world, India has
become an important strategic market of terminal manufacturers. TCL CSOT collaborates with a
number of strategic customers through its factory in India to jointly establish a local production, sales
and services integrated industrial chain system, further enhancing the globalization process and
influence of Chinese maufacturing as well as TCL CSOT’s competitive edges in global display
industry.
The industrial finance and investment businesses of TCL maintain a good momentum of
development, and continue to contribute strategic synergy and earnings to the Group. These
businesses not only provide capital management and allocation services, help reduce financing costs
and contribute steady earnings to TCL, but also help improve the ecological construction of industrial
chain and the layout of cutting-edge technologies through incubation, investment, etc.
At the end of 2016, the Company launched the transformation of “changing organization, adjusting
structure, focusing on core business, downsizing staffs and increasing efficiency” to remove
development obstacles and inject new growth momentum. After three years of development, TCL’s
industrial goal towards high-end science and technology will come true in the near future. During the
Reporting Period, in order to better lead future development and demonstrate the corporate vision and
mission guided by the new strategy, the Company released its corporate culture for the new phase
– 《The Strategy towards Global Leadership》，According to the new corporate culture, the
Company will strive towards its global leading position with a sense of responsibilities, innovation
and excellence as the fundamental philosophy, develop a sustainable internal drive with leading
technology, and take leading management and scale growth as resource guarantee.
Since the foundation in 2009, TCL CSOT, with a fast and pragmatic strategy, has achieved a global
industrial leading position in operating efficiency and performance at all stages of the industrial cycle
and established advantages in scale and management. With constant development of new
technologies, new processes and new applications as well as industrial faster shuffling and transfer
across countries, products, markets, technologies and ecosystems of global semi-conductor display
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Third Quarter Report 2019 of TCL Corporation
industry have entered into a new stage of development. Facing the next 10 years, with the goal of
developing leading products, technology and leading ecosystem, TCL CSOT will establish product
competitiveness in active mini-LED backlight and direct-viewing products and technology; lead the
development of printing OLED which will achieve a leading position in printing QLED based on its
experience and advantages in electroluminescent quantum dot materials, as well as based on the
technical strategic cooperation in materials, functional modules, equipment and chips for establishing
a technology ecosystem with a broader value chain.
TCL will stick to its operating strategy, maximize cost efficiency for survival, seek development
with reforms and innovation, while continues to enhance competitiveness and maintain
sustained and healthy development towards a global industrial leading position.
II. Core Business Analysis
TCL’s core businesses mainly include semi-conductor display and material business, industrial
finance and investment business and other businesses:
Pursuant to its development strategy of becoming a world-leading high-tech conglomerate, TCL will
concentrate on its core businesses and gradually spin- off the other businesses according to the
principle of the maximum value for shareholders. Meanwhile, in accordance with the whole new
positioning of a high-tech conglomerate, TCL will enter into the relevant basic and high-tech strategic
emerging industries when the timing is ripe by means of M&A, etc., as well as integrate resources
through the industrial chain, so as to foster new growth drivers.
(I) Semi-Conductor Display and Material Business
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Third Quarter Report 2019 of TCL Corporation
During Q1~Q3 2019, CSOT recorded a revenue of 24.56 billion, up by 28.4% year-on-year; and a
net profit of 1.30 billion, down by 28.7% year-on-year; EBITDA% is 26.5%. Due to great efficiency
rooted from plant investment, synergy from the industrial chain and excellent management level,
CSOT has maintained its global leadership for the efficiency and profitability with significantly over-
average edge than peers.
The t1 and t2 plants in Shenzhen is operating at full capacity for strong sales, and the capacity of the
t6 plant ramps up as plan. The total shipment area of large-sized panels reaches 14,290,000 square
meters , up by 10.1% year-on-year, the total shipment of large-sized panels reaches 30,019,000
pieces ,which ranks third globally in large-sized panels. CSOT achieves a operating revenue of 13.55
billion in large-sized panel business, down by 17.7%, which is affected by the panel price of main
products is much lower than the last year.
The t3 plant achieves the shipment area of 1,008,000 square meters, up by 2.52 times year-on-year;
the total shipment of large-sized panels reaches of 87,787,000 pieces of small and medium sized
panels, up by over 2 times year-on-year. The market share of LTPS-LCD products ranked second
globally. Operating revenue reaches RMB 11.01 billion, up by 3.14 times year-on-year.
The t4 flexible AM-OLED plant saw a faster-than-expected ramp-up of its capacity and yield rate, as
well as the customer development progress. In particular, prominent advantages were gained in
differentiated technologies, such as camera under panel, extreme narrow frame and foldable screen.
Phase I will put into mass production in Q4.
As the capacity is stepping into high growth phrase, as well as product mix will be refined
continuously, the profitability will be further strengthened. At the end of the Reporting Period,
the t3 plant capacity rose to 50K/month, as the capacity will be further increased through technical
improvement, marginal investment efficiency will be improved significantly; the t6 plant capacity
ramped up to 80K/month, it would reach full capacity of 90K/month in November; the t4 plant would
volume shipping to the brand customers. CSOT has made significant progresses in its strategy of
multiple products by continuing to increase the proportions of high-growth and high margin products
for commercial display, vehicle display, gaming monitor, etc. and establishing strategic cooperation
with CVTE, HiteVision, BYD. The CAGR of CSOT’s overall shipment for large-sized panels in the
next five years will be 17%, including new applications such as ultra large-sized public display and
interactive whiteboards, as well as new technologies and products such as 8K and OLED; the CAGR
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Third Quarter Report 2019 of TCL Corporation
of small and medium sized panel shipment will achieve 26%, mainly including AMOLED products
and applications.
Leading production-line technology better meet the market demands for high-end and large-
sized panel , CSOT market share will increase continuously. According to the latest IHS statistics,
up to Q1 2019, Chinese mainland panel manufacturers enjoyed a market share of 33.9% for 60-inch
and larger-sized LCD TV panels, representing a growth of nearly 10 times compared to last year.
CSOT owns two G11 production lines, of which t6 will reach to full capacity at the end of this year
and the construction of t7 is smoothly on the way. The 65-inch, 75-inch, 86-inch and 118-inch large-
sized products can be cut in an economical way in these two production lines, which feature such
advantages of higher resolution and better production yield than lower-generation production lines.
With increases in the average size of large-sized display terminal products, CSOT will enjoy rapid
increases in market share with an increasingly dominating position.
Driven by technology innovation, CSOT accelerates the development of leading technology and
application . In the Reporting Period, CSOT launched the MLED product based on Mini-LED on
TFT glass to further increase its medium- and high-end market share. In the small and medium size
filed, CSOT’s LTPS production yield rate and quality have reached world-leading level and its under-
panel fingerprint recognition technology, ultimate bezelless screen, dynamic frame rate technology
and the upgrading process to diversify products have made great progress; in terms of flexible
AMOLED panel, CSOT mainly focus on differentiated technologies and products, such as camera
under-panel and foldable AMOLED, which aquires well recognition by a number of strategic brand
clients.
Actively promote newly display technology,materials as well as core processes and industrial
ecology, leading the development of next generation display technologies,. Served as the only
“National Printing and Flexible Display Innovation Centre”, Guangdong Juhua has launched the
production of the prototype for 31-inch 4K RGB full quantum dot printing OLED. China Ray
develops new OLED key materials with independent IP. The evaporated red-light and green-light
emitting materials, as well as the solution-processed red-light emitting materials produced by China
Ray are demonstrated an industry-wide advanced performance.
(II) Industrial Finance and Investment Business
1. TCL Financial
TCL Financial mainly comprises the Group’s finance and the supply chain finance.
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Third Quarter Report 2019 of TCL Corporation
The finance business primarily involves providing financial and management support to the major
businesses and subsidiaries within the Group, and undertaking the functions of efficiency
improvement and risk management of Group assets. Over the years, TCL’s credit rating has been
maintained at AAA. In the Reporting Period, TCL Financial completed the issue of five-year
debenture of RMB1 billion with a stated interest rate of 4.30% at an overall financing cost that is
lower than the market average. The supply chain finance business provides member and related
enterprises with various financing and supply chain financial services, helping them to increase
resource efficiency and generate stably growing income.
2. TCL Capital
TCL Capital consists of TCL Venture Capital, Admiralty Harbour Capital Limited and China
Innovative Capital Management Limited (equity participation).
TCL’s venture capital business manages funds of RMB9.365 billion in total (as at the end of the
Reporting Period), and has invested in a total of 116 projects. So far, the invested projects have
established technological and business cooperation with TCL’s businesses, and some projects from
which TCL Venture capital has withdrawn its investment have also provided satisfying returns.
Harbour Capital is a licensed financial enterprise in Hong Kong with investment banking and asset
management qualifications. During this year, it completed nine projects of debenture issue,
underwriting and debt restructuring. At present, it is taking active steps to generate income from
financial advising and asset management, with satisfactory profits gained.
China Innovative Capital Management Limited is a leading institutional investor in equity
investments and M&A in relation to listed companies. It has invested in over 110 listed companies
and provides professional support for TCL’s domestic M&A activities and business expansion.
Meanwhile, the Group directly invests in a number of listed companies, including a 19.07% interest
in 712 Corp. (603712.SH), a 5.14% interest in Bank of Shanghai (601229.SH) and a 20.08% interest
in Fantasia Holdings (01777.HK). During the Reporting Period, Apart from the Company increased
its interest in Bank of Shanghai by 0.15%, other direct interests in listed companies remained the
same shareholding ratio during the Reporting Period.
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Third Quarter Report 2019 of TCL Corporation
Part IV Significant Events
I. Changes in Key Consolidated Financial Statement Line Items and Explanation of why
□ Applicable ■ N/A
II. Progress, Influence and Solutions Associated with Significant Events
Announcement on significant event Date of disclosure Website for disclosed announcement
To ensure that the Partners Plan drives the
growth of the Company’s overall
performance on a long-term basis, the
Company has revised Phase II Global
Partners Plan (Draft) and its clauses in the
13 August 2019 http://www.cninfo.com
summary part. For more detail, please refer
to the TCL Corporation Phase II Global
Partners Plan (Draft Revision) disclosed on
the information media as designated by the
Company.
Progress of Stock Repurchase
To safeguard shareholders’ rights and interest and enhance shareholder value, the Company held the
14th Meeting of the 6th Session of the Board on 10 January 2019, where the Plan on the Repurchase
of Partial Public Shares was reviewed and considered. On 14 February 2019, the Company disclosed
the Repurchase Report on the Repurchase of Partial Public Shares. In light of the secondary stock
market trend, the Company reviewed and approved the Proposal on the Adjustment of the
Repurchased Share Price Cap at the 15th Meeting of the 6th Session of the Board held on 19 March
2019, adjusting the price for repurchasing the Company’s shares from a cap of RMB3.80 per share to
RMB5.00 per share. The Company started to implement the stock repurchase from 14 February 2019.
The specific progress can be found on related announcements disclosed on the media designated by
the Company.
From the first implementation of the repurchase till 15 October 2019, the Company had repurchased
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Third Quarter Report 2019 of TCL Corporation
a total of 502,108,200 shares by means of centralized bidding transaction through its securities
account for repurchase. The shares occupy 3.71% of the Company’s share capital with the highest
transaction price being RMB4.17 per share, the lowest RMB3.13 per share, the average RMB3.40
per share, and the total transaction amount RMB1,708,529,800 (not inclusive of transaction fees).
Progress of any repurchased share reduction through centralized price bidding
□ Applicable ■ N/A
III. Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Parties, Failed to Fulfill on Time during
Reporting Period
□ Applicable ■ N/A
No such cases in the Reporting Period.
IV. 2019 Annual Operating Performance Forecast
□ Applicable ■ N/A
V. Securities Investments
Unit: RMB’000
Beginning Sold in Gain/Loss on fair- Ending
Securit Securit Measuremen Purchased in Funding
Security name carrying Q1-Q3 value changes in carrying
y type y code t method Q1-Q3 2019 source
amount 2019 Q1-Q3 2019 amount
CDB
2017666
Fair value
Others N/A RMB wealth - 1,000,000 - 18,380 1,018,380 Self-funded
method
management
products
CDB
2017666
Fair value
Others N/A RMB wealth - 500,000 - 2,360 502,360 Self-funded
method
management
products
CCB
Trust
Shengjing Fair value
product N/A - 400,000 - 4,440 404,440 Self-funded
Tongying method
s
Bond
18
Third Quarter Report 2019 of TCL Corporation
Investment
Collective
Fund Trust
Products
ISHARES JP
MORGAN Fair value
Bond N/A - 351,970 - (2,630) 349,250 Self-funded
USD method
EMERGI
Guotai Junan
Asset
Management Fair value
Others N/A - 300,000 - 3,330 303,330 Self-funded
Junxiang method
Yinghuo
No.2
CDB
2017666
Fair value
Others N/A RMB wealth - 300,000 - 2,340 302,340 Self-funded
method
management
products
CDB
2017666
Fair value
Others N/A RMB wealth - 300,000 - 2,340 302,340 Self-funded
method
management
products
ABC “safe
and
profitable”
Fair value
Others N/A oriented - 300,000 - 1,650 301,650 Self-funded
method
RMB wealth
management
products
BCM
"Yutong
Fortune" Fair value
Others N/A - 300,000 - 1,650 301,650 Self-funded
RMB wealth method
management
products
ICBC
financial
products- Fair value
Others N/A - 300,000 - 1,630 301,630 Self-funded
Legal person method
RMB
property
19
Third Quarter Report 2019 of TCL Corporation
Other securities investments
-- 4,291,170 5,405,980 4,975,460 590,160 4,566,470 --
held at period-end
Total -- 4,291,170 9,457,950 4,975,460 625,650 8,653,840 --
Disclosure date of
announcement on Board’s
20 March 2019
consent for securities
investments
Disclosure date of
announcement on general
10 April 2019
meeting’s consent for securities
investments (if any)
VI. Wealth Management Entrustment
Unit: RMB’000
Type of wealth Outstanding amount
Funding source Principal Overdue amount
management before maturity
Bank’s wealth
Self-funded 5,302,390 3,723,950 0
management product
Securities firm’s wealth
Self-funded 800,000 800,000 0
management product
Trust wealth
Self-funded 500,000 500,000 0
management product
Other Self-funded 269,440 269,440 0
Total 6,871,830 5,293,390 0
High-risk wealth management entrustments with amounts that are individually significant, or with low security, low liquidity, or no
protection of the principal:
□ Applicable ■ N/A
VII. Investments in Derivative Financial Instruments
Funding source Mostly foreign-currency revenue
20
Third Quarter Report 2019 of TCL Corporation
Legal matters involved (if applicable) N/A
Disclosure date of board announcement approving
28 April 2018
derivative 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 of loss due to the fluctuation of underlying interest and exchange
rates, which lead to the fluctuation of prices of financial derivatives;
2. Liquidity risk: the derivatives business carried out by the Group is an over-the-
counter transaction operated by a financial institution, and there is a risk of loss
due to paying fees to the bank for the operations of evening up or selling the
derivatives below the buying prices;
3. Performance risk: the Group conducts the derivative business based on rolling
Analysis of risks and control measures associated budgets for risk management, and there is a risk of performance failure due to
with derivative investments held in Reporting deviation between the actual operating results and budgets;
Period (including but not limited to market risk, 4. Other risks: in the case of specific business operations, if the operator fails to
liquidity risk, credit risk, operational risk, legal finish the prescribed procedures for report or approval, or fails to record the
risk, etc.) 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:
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.
21
Third Quarter Report 2019 of TCL Corporation
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 the operation of forward foreign exchange contracts, interest
Changes in market prices or fair value of derivative rate swap contracts and futures contracts to avoid and hedge foreign exchange
investments in Reporting Period (fair value analysis risks arising from operation and financing. It saw a gain of RMB 46.84 million
should include measurement method and related for the Reporting Period. The fair value of derivatives is determined by real-
assumptions and parameters) time quoted price of the foreign exchange market, based on the difference
between the contractual price and the forward exchange rate quoted
immediately in the foreign exchange market on the balance sheet date.
Major changes in accounting policies and specific
accounting principles adopted for derivative
No major changes
investments in 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 range of settlement currencies is involved. The Company
reduces exchange losses and locks transaction costs by reasonable financial
derivatives, which helps to reduce risk control costs and improve company
competitiveness. Risks are effectively controlled as the Company has taken series
Opinion of independent directors on derivative
of measures such as conducting a rigorous internal evaluation for the operation
investments and risk control
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.
22
Third Quarter Report 2019 of TCL Corporation
The independent directors believe that the financial derivatives transactions
carried out by the Company in the nine months ended 30 September 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.
Unit: RMB’000
Ending contractual
amount as % of the
Beginning amount Ending amount Gain/loss in
Company’s ending net
Type of contract Reporting
assets
Period
Contractual Actual Contractual Actual Contractual Actual
amount amount amount amount amount amount
1. Forward forex
25,316,330 860,700 12,894,200 378,400
contracts 200.9 5.9
46,840
2. Interest rate swaps 4,653,250 139,600 5,672,470 170,170 88.4 2.7
3. Currency swaps 3,115,890 155,790 2,376,490 157,020 37 2.4
Total 33,085,470 1,156,090 20,943,160 705,590 46,840 326.3 11.0
VIII. Visits received during Reporting Period
Date of visit Way of visit Type of visitor Index to key discussions
18 January 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
12 February 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
18 February 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
19 February 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
19 February 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
20 February 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
25 February 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
27 February 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
1 March 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
4 March 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
7 March 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
20 March 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
28 March 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
29 March 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
9 April 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
24 April 2019 Tel communication Institutional investor http://www.cninfo.com.cn
23
Third Quarter Report 2019 of TCL Corporation
25 April 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
24 May 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
29 May 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
12 June 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
13 June 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
28 June 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
25 July 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
13 August 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
12 September 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
20 September 2019 One-on-one meeting Institutional investor http://www.cninfo.com.cn
IX. Irregularities in Provision of Guarantees for External Parties
□ Applicable ■ N/A
X. Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Parties
for Non-Operating Purposes
□ Applicable ■ N/A
24
Third Quarter Report 2019 of TCL Corporation
Part V Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by TCL Corporation
Unit: RMB
Item 30 September 2019 31 December 2018
Current assets:
Monetary capital 17,765,873,517.00 26,801,342,532.00
Deposit reservation for balance
Lending funds
Financial assets held for trading 8,455,991,946.00 0.00
Financial assets at fair value
0.00 1,137,579,704.00
through profit or loss
Derivative financial assets 104,730,871.00 0.00
Notes receivable 165,373,400.00 4,272,221,611.00
Accounts receivable 8,386,427,291.00 13,651,444,917.00
Receivables financing
Advances to suppliers 890,674,240.00 1,194,972,138.00
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve fund
receivable
Other receivables 3,127,931,370.00 5,719,378,954.00
Including: Interest receivable 152,634,125.00 70,777,805.00
Dividends receivable 0.00 47,748,475.00
Inventories 5,380,508,492.00 19,887,971,677.00
Contract assets
Available-for-sale financial assets 0.00 18,792,459.00
Other current assets 4,541,971,080.00 7,624,097,005.00
Current portion of non-current assets
Total current assets 48,819,482,207.00 80,307,800,997.00
Non-current assets:
25
Third Quarter Report 2019 of TCL Corporation
Loans and advances to customers 4,962,826,572.00 1,123,799,564.00
Debt investment 20,230,211.00 0.00
Available-for-sale financial assets 0.00 4,270,844,592.00
Other debt investment 0.00 0.00
Held-to-maturity investment
Long-term receivables 0.00 0.00
Long-term equity investment 16,505,349,223.00 16,957,109,519.00
Other equity instrument
1,416,650,483.00 0.00
investment
Other non-current financial assets 1,352,285,147.00 0.00
Investment property 85,404,928.00 1,676,210,635.00
Fixed assets 40,363,437,728.00 35,983,131,306.00
Construction in progress 34,403,396,154.00 38,924,586,355.00
Bearer biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 5,713,948,761.00 5,954,872,994.00
R&D expense 1,182,054,993.00 1,011,503,608.00
Goodwill 2,452,185.00 357,111,511.00
Long-term prepaid expense 1,761,214,449.00 1,861,333,252.00
Deferred income tax assets 304,838,828.00 797,881,851.00
Other non-current assets 4,839,440,562.00 3,537,755,555.00
Total non-current assets 112,913,530,224.00 112,456,140,742.00
Total assets 161,733,012,431.00 192,763,941,739.00
Current liabilities:
Short-term borrowings 11,647,311,497.00 13,287,723,834.00
Borrowings from central bank 321,824,577.00 231,404,499.00
Interbank loans obtained 0.00 0.00
Financial liabilities held for trading 164,242,779.00 0.00
Financial liabilities at fair value
0.00 212,097,067.00
through profit or loss
Derivative financial liabilities 134,883,003.00 0.00
Notes payable 1,698,986,435.00 3,092,573,501.00
Accounts payable 10,428,286,568.00 23,922,711,995.00
Advances from customers 463,879,636.00 1,460,773,236.00
26
Third Quarter Report 2019 of TCL Corporation
Contract liabilities
Financial assets sold under
0.00 0.00
repurchase agreements
Customer deposits and interbank
2,271,522,476.00 545,052,800.00
deposits
Receiving from vicariously traded
securities
Acting underwriting securities
Employee benefits payable 962,366,407.00 2,891,392,699.00
Taxes payable 277,751,532.00 716,534,266.00
Other payables 12,779,825,053.00 23,120,774,383.00
Including: Interest payable 439,575,585.00 586,819,775.00
Dividend payable 11,058,234.00 22,552,834.00
Handling charges and
commissions payable
Dividend payable for reinsurance
Liabilities held for sale 0.00 0.00
Current portion of non-current
2,818,805,828.00 6,009,915,080.00
liabilities
Other current liabilities 16,365,508.00 3,344,450,936.00
Total current liabilities 43,986,051,299.00 78,835,404,296.00
Non-current liabilities:
Reserve fund for insurance
contract
Long-term borrowings 36,557,908,400.00 36,864,922,669.00
Bonds payable 14,484,218,148.00 12,985,628,025.00
Including: preferred stock
Perpetual capital
securities
Lease liabilities
Long-term payables 24,907,460.00 73,901,549.00
Long-term employee benefits
23,405,932.00 24,245,725.00
payable
Provisions
Deferred income 2,070,523,071.00 2,637,228,528.00
Deferred income tax liabilities 391,002,247.00 440,352,161.00
27
Third Quarter Report 2019 of TCL Corporation
Other non-current liabilities 482,232.00 30,586,139.00
Total non-current liabilities 53,552,447,490.00 53,056,864,796.00
Total liabilities 97,538,498,789.00 131,892,269,092.00
Owners’ equity:
Share capital 13,549,648,507.00 13,549,648,507.00
Other equity instruments
Including: preferred stock
Perpetual capital
securities
Capital surplus 5,782,131,867.00 5,996,741,456.00
Less: Treasury stock 1,726,338,433.00 63,457,893.00
Other comprehensive income -516,409,442.00 -1,174,161,842.00
Special reserves
Surplus reserves 2,184,261,029.00 2,184,261,029.00
General reserve 360,766.00 360,766.00
Undistributed profits 11,128,780,985.00 10,000,972,928.00
Total equity attributable to equity
30,402,435,279.00 30,494,364,951.00
holders of the Company
Minority interests 33,792,078,363.00 30,377,307,696.00
Total owners’ equity 64,194,513,642.00 60,871,672,647.00
Total liabilities and owners’ equity 161,733,012,431.00 192,763,941,739.00
Legal representative: Li Dongsheng Head for financial affairs: Du Juan Head of the financial department: Xi Wenbo
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 September 2019 31 December 2018
Current assets:
Monetary capital 10,711,739,610.00 1,328,706,659.00
Financial assets held for trading 3,425,782,656.00
Financial assets at fair value
711,741,161.00
through profit or loss
Derivative financial assets 88,938,440.00
Notes receivable 28,448,251.00 20,496,958.00
Accounts receivable 377,419,812.00 194,958,986.00
Receivables financing
28
Third Quarter Report 2019 of TCL Corporation
Advances to suppliers 153,597,813.00 187,895,276.00
Other receivable 16,335,297,175.00 18,773,352,761.00
Including: Interest receivable 45,946,747.00 212,199,974.00
Dividends receivable 4,211,824,115.00 4,211,824,115.00
Inventories 15,365,811.00 825,999.00
Contract assets
Available-for-sale financial assets
Current portion of non-current
assets
Other current assets 12,112,596.00 1,873,961,604.00
Total current assets 31,148,702,164.00 23,091,939,404.00
Non-current assets:
Debt investment
Available-for-sale financial assets 1,185,429,885.00
Other debt investment
Held-to-maturity investment
Long-term receivables
Long-term equity investment 39,249,008,763.00 41,803,449,993.00
Other equity instrument
518,669,009.00
investment
Other non-current financial assets 1,015,832,810.00
Investment property 93,607,444.00 5,158,426.00
Fixed assets 53,661,200.00 40,058,266.00
Construction in progress 1,241,308.00 551,693.00
Bearer biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 20,845,187.00 18,776,430.00
R&D expense
Goodwill
Long-term prepaid expense 457,596,747.00 461,055,759.00
Deferred income tax assets
Other non-current assets
Total non-current assets 41,410,462,468.00 43,514,480,452.00
Total assets 72,559,164,632.00 66,606,419,856.00
29
Third Quarter Report 2019 of TCL Corporation
Current liabilities:
Short-term borrowings 6,238,260,000.00 3,300,260,000.00
Financial liabilities held for trading
Financial liabilities at fair value
through profit or loss
Derivative financial assets
Notes payable 138,392,439.00 123,708,153.00
Accounts payable 371,960,665.00 252,801,470.00
Advances from customers 32,396,668.00 38,614,679.00
Contract liabilities
Employee benefits payable 72,530,578.00 98,753,095.00
Taxes payable 3,285,288.00 3,437,498.00
Other payables 16,198,761,281.00 6,407,741,790.00
Including: Interest payable 329,607,987.00 471,294,072.00
Dividends payable 11,057,515.00 4,549,747.00
Liabilities held for sale
Current portion of non-current
2,030,453,828.00 3,000,000,000.00
liabilities
Other current liabilities 2,000,000,000.00
Total current liabilities 25,086,040,747.00 15,225,316,685.00
Non-current liabilities:
Long-term borrowings 2,190,000,000.00 5,340,956,000.00
Bonds payable 14,484,218,148.00 12,985,628,025.00
Including: preferred stock
Perpetual capital
securities
Lease liabilities
Long-term payables 700,000.00 700,000.00
Long-term employee benefits
23,405,932.00 24,245,725.00
payable
Provisions
Deferred income 50,011,600.00 51,506,173.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 16,748,335,680.00 18,403,035,923.00
30
Third Quarter Report 2019 of TCL Corporation
Total liabilities 41,834,376,427.00 33,628,352,608.00
Owners’ equity:
Share capital 13,549,648,507.00 13,549,648,507.00
Other equity instruments
Including: preferred stock
Perpetual capital
securities
Capital surplus 8,391,390,047.00 8,565,337,838.00
Less: Treasury stock 1,726,338,433.00 63,457,893.00
Other comprehensive income 56,064,337.00 -24,869,176.00
Special reserves
Surplus reserves 1,982,196,590.00 1,982,196,590.00
Retained earnings 8,471,827,157.00 8,969,211,382.00
Total owners’ equity 30,724,788,205.00 32,978,067,248.00
Total liabilities and owners’ equity 72,559,164,632.00 66,606,419,856.00
3. Consolidated Income Statement for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Revenue 15,043,817,358.00 29,729,856,357.00
Including: Operating revenue 15,036,052,357.00 29,713,396,587.00
Interest income 7,765,001.00 16,459,770.00
Earned premiums
Fee and commission income
2. Operating costs and expenses 15,408,639,989.00 29,131,491,991.00
Including: Cost of sales 13,859,643,355.00 24,689,901,623.00
Interest expense 4,817,412.00 6,461,262.00
Fee and commission expense
Surrender value
Net payments for insurance
claims
Reserve fund for insurance
contracts
Policyholder dividend
expenses
31
Third Quarter Report 2019 of TCL Corporation
Amortized reinsurance
expenditures
Taxes and surcharges 48,091,768.00 158,209,758.00
Selling expense 199,683,347.00 2,140,730,098.00
Administrative expense 293,283,969.00 912,231,140.00
R&D expense 722,455,220.00 1,193,268,465.00
Finance costs 280,664,918.00 30,689,645.00
Including: Interest expense 434,347,881.00 480,746,488.00
Interest income 106,746,690.00 144,274,289.00
Add: Other income 517,506,256.00 628,754,578.00
Investment income (“-” for 576,410,283.00 460,824,515.00
loss)
Including: Share of profit or 396,531,183.00 360,196,830.00
loss of joint ventures and associates
Financial assets measured
at amortized cost through profit or loss
Foreign exchange gain (“-” for -299,877.00 -22,090,978.00
loss)
Net exposure hedge gain (“-” 0.00 0.00
for loss)
Gain on changes in fair value 64,950,705.00 -107,764,896.00
(“-” for loss)
Credit impairment loss (“-” for -1,054,559.00 0.00
loss)
Asset impairment loss (“-” for -83,358,305.00 -249,193,124.00
loss)
Asset disposal income (“-” for 5,599,397.00 20,537,781.00
loss)
3. Operating profit (“-” for loss) 714,931,269.00 1,329,432,242.00
Add: Non-operating income 81,998,416.00 46,554,058.00
Less: Non-operating expense 4,649,448.00 19,475,159.00
4. Profit before tax (“-” for loss) 792,280,237.00 1,356,511,141.00
Less: Income tax expense 41,928,606.00 181,396,899.00
5. Net profit (“-” for net loss) 750,351,631.00 1,175,114,242.00
(1) Classified by continuity of
operations
1. Net profit from continuing 750,351,631.00 1,175,114,242.00
32
Third Quarter Report 2019 of TCL Corporation
operations (“-” for net loss)
2.Net profit from discontinued 0.00 0.00
operations (“-” for net loss)
(2) Classified by ownership of the
equity
1. Net profit attributable to owners 484,981,289.00 903,723,232.00
of the Company as the parent
2. Minority interests 265,370,342.00 271,391,010.00
6. Other comprehensive income, net of -26,068,932.00 -882,722,281.00
tax
Attributable to owners of the Company -26,691,643.00 -758,784,159.00
as the parent
(1) Items that will not be reclassified 19,081,757.00 0.00
to profit or loss
1. Changes arising from 0.00 0.00
remeasurement on defined benefit plans
2. Share of other 26,584,508.00 0.00
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
3. Changes in fair value of 12,454,793.00 0.00
other equity instruments investment
4. Changes in the fair value 0.00 0.00
of the company’s own credit risk
5. Others -19,957,544.00 0.00
(2) Items that may subsequently be -45,773,400.00 -758,784,159.00
reclassified to profit or loss
1.Share of other -179,106,860.00 35,681,864.00
comprehensive income of investees that
will be reclassified to profit or loss under
equity method
2. Changes in fair value of 0.00
other debt investments
3. Gains and losses from 0.00 -234,841,738.00
changes in fair value of available-for-sale
financial assets
4. Amount of financial assets 0.00
reclassified into other comprehensive
income
33
Third Quarter Report 2019 of TCL Corporation
5. Gain/Loss arising from 0.00
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6. Other debt investment 0.00
credit impairment provisions
7. Cash flow hedge reserve -19,415,646.00 -36,912,730.00
8. Differences arising from 151,851,168.00 -507,901,826.00
translation of foreign currency-
denominated financial statements
9. Others 897,938.00 -14,809,729.00
Attributable to minority interests 622,711.00 -123,938,122.00
7. Total comprehensive income 724,282,699.00 292,391,961.00
Attributable to owners of the 458,289,646.00 144,939,073.00
Company as the parent
Attributable to minority interests 265,993,053.00 147,452,888.00
8. Earnings per share
(1) Basic earnings per share 0.0364 0.0667
(2) Diluted earnings per share 0.0358 0.0667
Legal representative: Li Dongsheng Head for financial affairs: Du Juan Head of the financial department: Xi Wenbo
4. Income Statement of the Company as the Parent for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Total revenue 543,963,613.00 564,486,423.00
Less: Cost of sales 497,046,360.00 493,750,947.00
Taxes and surcharges 340,606.00 -1,100,091.00
Selling expense 5,534,527.00 8,713,780.00
Administrative expense 80,248,940.00 65,622,353.00
R&D expense 34,971,218.00 20,080,198.00
Finance costs 236,701,397.00 101,884,868.00
Including: Interest expense 333,209,614.00 359,032,988.00
Interest income 95,255,830.00 178,756,463.95
Add: Other income 0.00 0.00
Investment income (“-” for 361,094,314.00 834,483,557.00
34
Third Quarter Report 2019 of TCL Corporation
loss)
Including: Share of profit or 304,497,022.00 260,808,493.00
loss of joint ventures and associates
Financial assets 0.00 0.00
measured at amortized cost through
profit or loss
Net exposure hedge gain (“-” 0.00 0.00
for loss)
Gain on changes in fair value 116,206,626.00 -225,820,894.00
(“-” for loss)
Credit impairment loss (“-” -3,895.00 0.00
for loss)
Asset impairment loss (“-” for 0.00 -3,000,000.00
loss)
Asset disposal income (“-” for 256,624,954.00 22,236,169.00
loss)
2. Operating profit (“-” for loss) 423,042,564.00 503,433,200.00
Add: Non-operating income 67,299,176.00 3,171,065.00
Less: Non-operating expense 1,762,001.00 312,085.00
3. Profit before tax (“-” for loss) 488,579,739.00 506,292,180.00
Less: Income tax expense 0.00 0.00
4. Net profit (“-” for net loss) 488,579,739.00 506,292,180.00
(1) Net profit from continuing 488,579,739.00 506,292,180.00
operations (“-” for net loss)
(2) Net profit from discontinued 0.00 0.00
operations (“-” for net loss)
5. Other comprehensive income, net of 49,539,268.00 6,286,204.00
tax
(1) Items that will not be 20,973,409.00 0.00
reclassified to profit or loss
1. Changes arising from 0.00 0.00
remeasurement on defined benefit plans
2. Share of other 20,973,409.00 0.00
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
3. Changes in fair value of 0.00 0.00
other equity instruments investment
35
Third Quarter Report 2019 of TCL Corporation
4. Changes in the fair value 0.00 0.00
of the company’s own credit risk
5. Others 0.00 0.00
(2) Items that may subsequently be 28,565,859.00 6,286,204.00
reclassified to profit or loss
1. Share of other 28,379,224.00 8,666,867.00
comprehensive income of investees that
will be reclassified to profit or loss
under equity method
2. Changes in fair value of 0.00 0.00
other debt investments
3. Gains and losses from 0.00 37,443,122.00
changes in fair value of available-for-
sale financial assets
4. Amount of financial 0.00 0.00
assets reclassified into other
comprehensive income
5. Gain/Loss arising from 0.00 0.00
reclassification of held-to-maturity
investments to available-for-sale
financial assets
6. Other debt investment 0.00 0.00
credit impairment provisions
7. Cash flow hedge reserve 0.00 0.00
8. Differences arising from 0.00 0.00
translation of foreign currency-
denominated financial statements
9. Others 186,635.00 -39,823,785.00
6. Total comprehensive income 538,119,007.00 512,578,384.00
7. Earnings per share
(1) Basic earnings per share 0.0367 0.0374
(2) Diluted earnings per share 0.0361 0.0374
5. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Revenue 58,904,374,914.00 82,311,703,856.00
36
Third Quarter Report 2019 of TCL Corporation
Including: Operating revenue 58,817,666,092.00 82,237,144,880.00
Interest income 86,708,822.00 74,558,976.00
Earned premiums
Fee and commission income
2. Operating costs and expenses 59,149,896,807.00 81,214,122,617.00
Including: Cost of sales 51,216,771,448.00 67,608,559,930.00
Interest expense 13,129,607.00 47,798,247.00
Fee and commission expense
Surrender value
Net payments for insurance
claims
Reserve fund for insurance
contracts
Policyholder dividend
expenses
Amortized reinsurance
expenditures
Taxes and surcharges 289,281,187.00 476,751,931.00
Selling expense 2,582,419,684.00 6,591,710,312.00
Administrative expense 1,559,794,269.00 2,761,324,355.00
R&D expense 2,603,121,743.00 3,255,976,562.00
Finance costs 885,378,869.00 472,001,280.00
Including: Interest 1,531,338,739.00 1,426,122,381.00
expense
Interest income 346,654,556.00 586,773,983.00
Add: Other income 1,439,033,065.00 1,681,149,454.00
Investment income (“-” for 2,582,149,708.00 1,554,782,242.00
loss)
Including: Share of profit or 1,050,534,922.00 975,423,924.00
loss of joint ventures and associates
Financial assets measured
at amortized cost through profit or loss
Foreign exchange gain (“-” for -11,364,959.00 -46,156,011.00
loss)
Net exposure hedge gain (“-” 0.00 0.00
for loss)
37
Third Quarter Report 2019 of TCL Corporation
Gain on changes in fair value 360,480,571.00 -211,675,899.00
(“-” for loss)
Credit impairment loss (“-” for -21,601,368.00 0.00
loss)
Asset impairment loss (“-” for -397,698,940.00 -883,711,527.00
loss)
Asset disposal income (“-” for 2,171,307.00 20,666,672.00
loss)
3. Operating profit (“-” for loss) 3,707,647,491.00 3,212,636,170.00
Add: Non-operating income 128,111,130.00 393,308,150.00
Less: Non-operating expense 23,468,759.00 63,678,620.00
4. Profit before tax (“-” for loss) 3,812,289,862.00 3,542,265,700.00
Less: Income tax expense 324,875,555.00 666,311,598.00
5. Net profit (“-” for net loss) 3,487,414,307.00 2,875,954,102.00
(1) Classified by continuity of
operations
1.Net profit from continuing 3,487,414,307.00 2,875,954,102.00
operations (“-” for net loss)
2.Net profit from discontinued 0.00 0.00
operations (“-” for net loss)
(2) Classified by ownership of the
equity
1.Net profit attributable to owners of 2,577,329,981.00 2,489,661,515.00
the Company as the parent
2.Minority interests 910,084,326.00 386,292,587.00
6. Other comprehensive income, net of 486,458,995.00 -1,355,670,633.00
tax
Attributable to owners of the Company 322,801,953.00 -1,204,107,955.00
as the parent
(1) Items that will not be reclassified 10,569,895.00 0.00
to profit or loss
1. Changes arising from 0.00
remeasurement on defined benefit plans
2. Share of other 26,584,508.00
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
3. Changes in fair value of -15,116,675.00 0.00
38
Third Quarter Report 2019 of TCL Corporation
other equity instruments investment
4. Changes in the fair value 0.00
of the company’s own credit risk
5. Others -897,938.00
(2) Items that may subsequently be 312,232,058.00 -1,204,107,955.00
reclassified to profit or loss
1. Share of other -148,175,755.00 30,520,924.00
comprehensive income of investees that
will be reclassified to profit or loss under
equity method
2. Changes in fair value of
other debt investments
3. Gains and losses from -453,159,469.00
changes in fair value of available-for-sale
financial assets
4. Amount of financial assets
reclassified into other comprehensive
income
5. Gain/Loss arising from
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6. Other debt investment
credit impairment provisions
7. Cash flow hedge reserve -81,314,957.00 -160,618,638.00
8. Differences arising from 541,722,770.00 -620,850,772.00
translation of foreign currency-
denominated financial statements
9. Others 0.00
Attributable to minority interests 163,657,042.00 -151,562,678.00
7. Total comprehensive income 3,973,873,302.00 1,520,283,469.00
Attributable to owners of the 2,900,131,934.00 1,285,553,560.00
Company as the parent
Attributable to minority interests 1,073,741,368.00 234,729,909.00
8. Earnings per share
(1) Basic earnings per share 0.1946 0.1842
(2) Diluted earnings per share 0.1902 0.1840
Legal representative: Li Dongsheng Head for financial affairs: Du Juan Head of the financial department: Xi Wenbo
39
Third Quarter Report 2019 of TCL Corporation
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Total revenue 1,307,562,446.00 1,592,583,396.00
Less: Cost of sales 1,147,964,483.00 1,426,166,215.00
Taxes and surcharges 9,260,334.00 5,192,099.00
Selling expense 19,930,919.00 22,078,001.00
Administrative expense 241,010,707.00 188,442,994.00
R&D expense 80,232,047.00 68,238,056.00
Finance costs 650,227,534.00 499,345,799.00
Including: Interest expense 1,009,268,066.00 947,416,942.00
Interest income 396,745,068.00 415,884,910.00
Add: Other income 4,958,600.00 0.00
Investment income (“-” for 1,103,949,851.00 3,460,955,519.00
loss)
Including: Share of profit or 887,726,773.00 750,817,598.00
loss of joint ventures and associates
Financial assets 0.00 0.00
measured at amortized cost through
profit or loss
Net exposure hedge gain (“-” 0.00 0.00
for loss)
Gain on changes in fair value 44,716,834.00 -298,214,663.00
(“-” for loss)
Credit impairment loss (“-” 2,741,266.00 0.00
for loss)
Asset impairment loss (“-” for 0.00 -3,920,025.00
loss)
Asset disposal income (“-” for 256,615,165.00 22,248,607.00
loss)
2. Operating profit (“-” for loss) 571,918,138.00 2,564,189,670.00
Add: Non-operating income 77,307,037.00 299,706,726.00
Less: Non-operating expense 9,065,602.00 9,666,588.00
3. Profit before tax (“-” for loss) 640,159,573.00 2,854,229,808.00
Less: Income tax expense 0.00 0.00
4. Net profit (“-” for net loss) 640,159,573.00 2,854,229,808.00
40
Third Quarter Report 2019 of TCL Corporation
(1) Net profit from continuing 640,159,573.00 2,854,229,808.00
operations (“-” for net loss)
(2) Net profit from discontinued 0.00 0.00
operations (“-” for net loss)
5. Other comprehensive income, net of 81,669,317.00 -16,405,104.00
tax
(1) Items that will not be 20,973,409.00 0.00
reclassified to profit or loss
1. Changes arising from 0.00 0.00
remeasurement on defined benefit plans
2. Share of other 20,973,409.00 0.00
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
3. Changes in fair value of 0.00 0.00
other equity instruments investment
4. Changes in the fair value 0.00 0.00
of the company’s own credit risk
5. Others 0.00 0.00
(2) Items that may subsequently be 60,695,908.00 -16,405,104.00
reclassified to profit or loss
1. Share of other 60,509,273.00 11,837,631.00
comprehensive income of investees that
will be reclassified to profit or loss
under equity method
2. Changes in fair value of 0.00 0.00
other debt investments
3. Gains and losses from 0.00 -28,242,735.00
changes in fair value of available-for-
sale financial assets
4. Amount of financial 0.00 0.00
assets reclassified into other
comprehensive income
5. Gain/Loss arising from 0.00 0.00
reclassification of held-to-maturity
investments to available-for-sale
financial assets
6. Other debt investment 0.00 0.00
credit impairment provisions
41
Third Quarter Report 2019 of TCL Corporation
7. Cash flow hedge reserve 0.00 0.00
8. Differences arising from 0.00 0.00
translation of foreign currency-
denominated financial statements
9. Others 186,635.00 0.00
6. Total comprehensive income 721,828,890.00 2,837,824,704.00
7. Earnings per share
(1) Basic earnings per share 0.0483 0.2112
(2) Diluted earnings per share 0.0472 0.2109
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities 62,445,844,833.00 87,478,829,334.00
and rendering of services
Net increase in customer deposits and 1,726,469,676.00 118,621,967.00
interbank deposits
Net increase in borrowings from 90,420,078.00 384,005,121.00
central bank
Net increase in funds borrowed 0.00 0.00
from other financial institutions
Cash premiums received on
original insurance contracts
Cash received from re-insurance
business
Net increase policyholders’
deposits investments
Interest, handling charges and 86,708,822.00 75,095,177.00
commissions received
Net increase in interbank loans 0.00 0.00
obtained
Net increase in repurchase
business capital
Net cash received from trading
securities
Tax refunded 2,937,257,381.00 3,150,142,479.00
42
Third Quarter Report 2019 of TCL Corporation
Cash generated from other 1,928,746,345.00 1,555,464,127.00
operating activities
Subtotal of cash generated from 69,215,447,135.00 92,762,158,205.00
operating activities
Payments for commodities and 47,132,428,452.00 70,949,819,486.00
services
Net increase in loans and advances 3,849,847,076.00 193,039,179.00
to customers
Net increase in deposits in central -273,067,081.00 -2,989,900,368.00
bank and in interbank loans granted
Cash paid for original insurance
contract compensation payment
Net increase of lending funds
Cash for payment of interest, 0.00 0.00
handling charge and commission
Cash paid for policy dividends
Cash paid to and for employees 3,548,355,254.00 6,552,021,316.00
Taxes paid 3,627,716,700.00 3,999,758,106.00
Cash used in other operating 3,720,892,545.00 6,500,987,618.00
activities
Subtotal of cash used in operating 61,606,172,946.00 85,205,725,337.00
activities
Net cash generated from/used in 7,609,274,189.00 7,556,432,868.00
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 18,373,451,069.00 29,694,358,171.00
Investment income 730,526,027.00 811,956,499.00
Net proceeds from disposal of fixed 92,766,770.00 329,046,258.00
assets, intangible assets and other long-
lived assets
Net proceeds from disposal of 863,813,211.00 187,122,885.00
subsidiaries or other business units
Cash generated from other investing 0.00 0.00
activities
Subtotal of cash generated from 20,060,557,077.00 31,022,483,813.00
investing activities
Payments for acquisition of fixed 14,853,883,306.00 24,385,750,710.00
assets, intangible assets and other long-
43
Third Quarter Report 2019 of TCL Corporation
lived assets
Payments for investments 24,810,844,947.00 35,635,978,700.00
Net increase in pledged loans 0.00 0.00
granted
Net payments for acquisition of 170,197,901.00 2,130,303.00
subsidiaries and other business units
Cash used in other investing activities 7,118,896,267.00 0.00
Subtotal of cash used in investing 46,953,822,421.00 60,023,859,713.00
activities
Net cash generated from/used in -26,893,265,344.00 -29,001,375,900.00
investing activities
3. Cash flows from financing activities:
Capital contributions received 7,530,780,247.00 4,268,302,543.00
Including: Capital contributions by 7,523,571,607.00 4,204,844,650.00
non-controlling interests to subsidiaries
Increase in borrowings obtained 30,186,401,095.00 41,706,872,105.00
Cash generated from other financing 2,017,417,200.00 3,000,000,000.00
activities
Subtotal of cash generated from 39,734,598,542.00 48,975,174,648.00
financing activities
Repayment of borrowings 23,925,281,321.00 33,831,573,154.00
Payments for interest and dividends 3,700,800,263.00 3,915,826,749.00
Including: Dividends paid by 99,072,668.00 340,664,124.00
subsidiaries to non-controlling interests
Cash used in other financing 2,150,539,531.00 1,917,202.00
activities
Subtotal of cash used in financing 29,776,621,115.00 37,749,317,105.00
activities
Net cash generated from/used in 9,957,977,427.00 11,225,857,543.00
financing activities
4. Effect of foreign exchange rate 657,452,489.00 -300,902,699.00
changes on cash and cash equivalents
5. Net increase in cash and cash -8,668,561,239.00 -10,519,988,188.00
equivalents
Add: Cash and cash equivalents, 25,702,383,482.00 23,281,170,085.00
beginning of the period
6. Cash and cash equivalents, end of the 17,033,822,243.00 12,761,181,897.00
period
44
Third Quarter Report 2019 of TCL Corporation
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities 1,143,838,588.00 1,604,971,486.00
and rendering of services
Tax rebates 690,755.00 0.00
Cash generated from other operating 14,276,992,714.00 7,682,534,306.00
activities
Subtotal of cash generated from 15,421,522,057.00 9,287,505,792.00
operating activities
Payments for commodities and 1,229,934,222.00 1,731,946,423.00
services
Cash paid to and for employees 120,421,860.00 156,871,079.00
Taxes paid 53,164,105.00 26,766,977.00
Cash used in other operating 1,161,090,996.00 2,205,056,143.00
activities
Subtotal of cash used in operating 2,564,611,183.00 4,120,640,622.00
activities
Net cash generated from/used in 12,856,910,874.00 5,166,865,170.00
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 13,841,885,978.00 24,032,951,216.00
Investment income 638,304,881.00 2,186,097,813.00
Net proceeds from disposal of fixed 141,657.00 242,738,774.00
assets, intangible assets and other long-
lived assets
Net proceeds from disposal of 0.00 0.00
subsidiaries or other business units
Cash generated from other investing 0.00 0.00
activities
Subtotal of cash generated from 14,480,332,516.00 26,461,787,803.00
investing activities
Payments for acquisition of fixed assets, 3,836,282.00 8,872,601.00
intangible assets and other long-lived
assets
Payments for investments 12,209,066,918.00 29,520,135,549.00
45
Third Quarter Report 2019 of TCL Corporation
Net payments for acquisition of 0.00 0.00
subsidiaries and other business units
Cash used in other investing 0.00 0.00
activities
Subtotal of cash used in investing 12,212,903,200.00 29,529,008,150.00
activities
Net cash generated from/used in 2,267,429,316.00 -3,067,220,347.00
investing activities
3. Cash flows from financing activities:
Capital contributions received 7,208,640.00 63,457,893.00
Increase in borrowings obtained 9,058,956,000.00 8,474,962,000.00
Cash generated from other financing 2,000,000,000.00 3,000,000,000.00
activities
Subtotal of cash generated from 11,066,164,640.00 11,538,419,893.00
financing activities
Repayment of borrowings 12,740,956,000.00 7,791,532,000.00
Payments for interest and dividends 2,202,303,594.00 2,146,282,637.00
Cash used in other financing 1,837,149,002.00 1,917,202.00
activities
Sub-total of cash used in financing 16,780,408,596.00 9,939,731,839.00
activities
Net cash generated from/used in -5,714,243,956.00 1,598,688,054.00
financing activities
4. Effect of foreign exchange rate -27,037,253.00 58,444,146.00
changes on cash and cash equivalents
5. Net increase in cash and cash 9,383,058,981.00 3,756,777,023.00
equivalents
Add: Cash and cash equivalents, 1,328,680,629.00 1,056,211,686.00
beginning of the period
6. Cash and cash equivalents, end of the 10,711,739,610.00 4,812,988,709.00
period
II. Instructions on the Adjustment of Financial Statements
1. The implementation of new financial instrument criteria, new revenue criteria or new lease criteria from
2019 on and the adjusted implementation of financial statements at the beginning of the year
Consolidated balance sheet
Unit: RMB
46
Third Quarter Report 2019 of TCL Corporation
Assets 31 December 2018 1 January 2019 Adjusted
Current assets:
Monetary capital 26,801,342,532.00 26,801,342,532.00
Deposit reservation for
balance
Lending funds
Financial assets held for
0.00 2,632,625,960.00 2,632,625,960.00
trading
Financial assets at fair
1,137,579,704.00 -1,137,579,704.00
value through profit or loss
Derivative financial
0.00 197,798,188.00 197,798,188.00
assets
Notes receivable 4,272,221,611.00 4,272,221,611.00
Accounts receivable 13,651,444,917.00 13,647,564,194.00 -3,880,723.00
Receivables financing
Advances to suppliers 1,194,972,138.00 1,194,972,138.00
Premiums receivable
Reinsurance accounts
receivable
Reinsurance reserve
fund receivable
Other receivable 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
Dividend
47,748,475.00 47,748,475.00
receivable
Redemptory monetary
0.00
capital for sale
Inventory 19,887,971,677.00 19,887,971,677.00
Contract assets
Available-for-sale
18,792,459.00 18,792,459.00
financial assets
Non-current assets
0.00
matured within one year
Other current assets 7,624,097,005.00 7,624,097,005.00
Total current assets 80,307,800,997.00 81,993,569,230.00 1,685,768,233.00
Non-current assets:
47
Third Quarter Report 2019 of TCL Corporation
Loans and advances to
1,123,799,564.00 1,123,799,564.00
customers
Debt investment 0.00
Available-for-sale
4,270,844,592.00 -4,270,844,592.00
financial assets
Other debt investment 0.00
Held-to-maturity
investment
Long-term receivables 0.00
Long-term equity
16,957,109,519.00 17,117,936,085.00 160,826,566.00
investment
Other equity instrument
0.00 1,618,075,184.00 1,618,075,184.00
investment
Other non-current
0.00 1,034,117,327.00 1,034,117,327.00
financial 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
38,924,586,355.00 38,924,586,355.00
progress
Productive biological
assets
Oil and gas assets
Right-of-use assets
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
797,881,851.00 797,881,851.00
assets
Other non-current assets 3,537,755,555.00 3,537,755,555.00
Total non-current assets 112,456,140,742.00 110,998,315,227.00 -1,457,825,515.00
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 central
231,404,499.00 231,404,499.00
bank
48
Third Quarter Report 2019 of TCL Corporation
Interbank loans obtained 0.00
Transactional financial
0.00 143,456,979.00 143,456,979.00
liabilities
Financial liabilities at
fair value through profit or 212,097,067.00 -212,097,067.00
loss
Derivative financial
0.00 68,640,088.00 68,640,088.00
liabilities
Notes payable 3,092,573,501.00 3,092,573,501.00
Accounts payable 23,922,711,995.00 23,922,711,995.00
Advances from
1,460,773,236.00 1,460,773,236.00
customers
Contract liability
Financial assets sold
0.00
under repurchase agreements
Customer deposits and
545,052,800.00 545,052,800.00
interbank deposits
Receiving from
vicariously traded securities
Acting underwriting
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
Dividend
22,552,834.00 22,552,834.00
payable
Handling charges and
commissions payable
Dividend payable for
reinsurance
Liabilities held for sale 0.00
Current portion of non-
6,009,915,080.00 6,009,915,080.00
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
49
Third Quarter Report 2019 of TCL Corporation
Non-current liabilities:
Reserve fund for
insurance contract
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
stock
Perpetual
capital securities
Lease liability
Long-term payables 73,901,549.00 73,901,549.00
Long-term payroll
24,245,725.00 24,245,725.00
payable
Anticipation liabilities
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
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
stock
Perpetual
capital securities
Capital surplus 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
Special reserves
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
50
Third Quarter Report 2019 of TCL Corporation
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
Minority 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
Balance Sheet of the Company as the Parent
Unit: RMB
Assets 31 December 2018 1 January 2019 Adjusted
Current assets:
Monetary capital 1,328,706,659.00 1,328,706,659.00
Financial assets held for
40,735,804.00 40,735,804.00
trading
Financial assets at fair
711,741,161.00 -711,741,161.00
value through profit or loss
Derivative financial
2,802,750.00 2,802,750.00
assets
Notes receivable 20,496,958.00 20,496,958.00
Accounts receivable 194,958,986.00 194,958,986.00
Receivables financing
Advances to suppliers 187,895,276.00 187,895,276.00
Other receivable 18,773,352,761.00 18,773,352,761.00
Including: Interest
212,199,974.00 212,199,974.00
receivable
Dividend
4,211,824,115.00 4,211,824,115.00
receivable
Inventory 825,999.00 825,999.00
Contract assets
Available-for-sale
financial assets
Non-current assets
matured within one year
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:
Debt investment
51
Third Quarter Report 2019 of TCL Corporation
Available-for-sale
1,185,429,885.00 -1,185,429,885.00
financial assets
Other debt investment
Held-to-maturity
investment
Long-term receivables
Long-term equity
41,803,449,993.00 41,803,449,993.00
investment
Other equity instrument
1,144,694,080.00 1,144,694,080.00
investment
Other non-current
708,938,412.00 708,938,412.00
financial assets
Investment property 5,158,426.00 5,158,426.00
Fixed assets 40,058,266.00 40,058,266.00
Construction in
551,693.00 551,693.00
progress
Productive biological
assets
Oil and gas assets
Right-of-use assets
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
Transactional financial
liabilities
Financial liabilities at
fair value through profit or
loss
52
Third Quarter Report 2019 of TCL Corporation
Derivative financial
liabilities
Notes payable 123,708,153.00 123,708,153.00
Accounts payable 252,801,470.00 252,801,470.00
Advances from
38,614,679.00 38,614,679.00
customers
Contract liability
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
Dividend
4,549,747.00 4,549,747.00
payable
Liabilities held for sale
Current portion of non-
3,000,000,000.00 3,000,000,000.00
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
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
stock
Perpetual
capital securities
Lease liability
Long-term payables 700,000.00 700,000.00
Long-term payroll
24,245,725.00 24,245,725.00
payable
Anticipation liabilities
Deferred income 51,506,173.00 51,506,173.00
Deferred income tax
liabilities
Other non-current
liabilities
53
Third Quarter Report 2019 of TCL Corporation
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
stock
Perpetual
capital securities
Capital surplus 8,565,337,838.00 8,565,151,202.00 -186,636.00
Less: Treasury stock 63,457,893.00 63,457,893.00
Other comprehensive
-24,869,176.00 -25,418,344.00 -549,168.00
income
Special reserves
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
2. Instructions on Comparable Data on the earlier stage of retroactive adjustment and the implementation
of new financial instrument criteria or new lease criteria from 2019 on
For the financial instruments recognized and measured before 1 January 2019 in a way that is inconsistent with the
New Accounting Standards for Financial Instruments, the Company makes transitional adjustments according to
the new standards. And the Company does not restate the comparable financial data of the previous period that is
inconsistent with the New Accounting Standards for Financial Instruments. The difference between the original
carrying amount of a financial instrument and the new carrying amount on the date of the adoption of the New
Accounting Standards for Financial Instruments is recorded in the retained earnings or other comprehensive income
as at 1 January 2019.
III Independent Auditor’s Report
Indicate whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
54
