TCL 科技集团股份有限公司
TCL Technology Group Corporation
FIRST QUARTERLY REPORT 2021
27 April 2021
1
TCL Technology Group Corporation First Quarterly Report 2021
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 Technology Group Corporation (hereinafter
referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report, 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 all the Company’s supervisors have attended the meeting of the Supervisory Committee
for the review of this Report
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.
2
TCL Technology Group Corporation First Quarterly Report 2021
Table of Contents
Part I Important Notes, Table of Contents and Definitions ......................................................... 2
Part II Key Corporate Information ............................................................................................. 4
Part III Directors’ Report ............................................................................................................. 9
Part IV Significant Events .......................................................................................................... 17
Part V Financial Statements ....................................................................................................... 26
3
TCL Technology Group Corporation First Quarterly Report 2021
Part II Key Corporate Information
I Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes ■ No
Q1 2021 Q1 2020 Change (%)
Revenue (RMB) 32,143,561,563 13,742,129,162 133.91%
Net profit attributable to the company’s
2,403,729,935 408,125,802 488.97%
shareholders (RMB)
Net profit attributable to the company’s
shareholders before non-recurring gains 2,123,056,041 -109,881,642 2032.13%
and losses (RMB)
Net cash generated from/used in operating
8,003,201,979 2,299,183,493 248.09%
activities (RMB)
Basic earnings per share (RMB/share) 0.1781 0.0316 463.61%
Diluted earnings per share (RMB/share) 0.1713 0.0302 467.22%
Weighted average return on equity (%) 7.07% 1.35% 5.72%
31 March 2021 31 December 2020 Change (%)
Total assets (RMB) 274,693,487,644 257,908,278,887 6.51%
Owners’ equity attributable to the
35,224,374,002 34,107,795,454 3.27%
company’s shareholders (RMB)
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
14,030,788,362
disclosure of this Report (share)
Fully diluted earnings per share based on the latest total share
0.1713
capital above (RMB/share)
Non-recurring gains and losses:
Unit: RMB
Item Q1 2021 Note
Gain or loss on disposal of non-current assets (inclusive of
-14,935,921 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 of
302,185,840 Not applicable
business at fixed quotas or amounts as per the government’s
uniform standards)
4
TCL Technology Group Corporation First Quarterly Report 2021
Gain or loss on fair-value changes in held-for-trading and
derivative financial assets and liabilities & investment income from
disposal of held-for-trading and derivative financial assets and 25,600,678 Not applicable
liabilities and other debt investments (exclusive of effective portion
of hedges that arise in the Company’s ordinary course of business)
Non-operating income and expense other than the above 113,649,860 Not applicable
Less: Corporate income tax 73,184,923 Not applicable
Non-controlling interests (net of tax) 72,641,640 Not applicable
Total 280,673,894 --
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
II Total Number of Shareholders and Holdings of Top 10 Shareholders at the End of the
Reporting Period
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preference shareholders
Number of ordinary shareholders at
570,474 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
Li Dongsheng Put in pledge by
Domestic natural 144,000,000
and his Li Dongsheng
person/general 8.26% 1,158,599,393 610,181,602
acting-in-concert Put in pledge by
legal person 344,899,521
party Jiutian Liancheng
Huizhou
State-owned legal
Investment 5.30% 743,139,840 - - -
person
Holding Co., Ltd.
Wuhan Optics
Valley Industrial State-owned legal
3.65% 511,508,951 511,508,951 - -
Investment Co., person
Ltd.
Hong Kong Foreign legal
3.26% 457,850,083 - - -
Securities person
5
TCL Technology Group Corporation First Quarterly Report 2021
Clearing
Company Ltd.
China Securities
Finance Domestic general
2.66% 373,231,553 - - -
Corporation legal person
Limited
Tibet Tianfeng
Enterprise Domestic general
1.76% 247,284,337 - - -
Management Co., legal person
Ltd.
Domestic natural
Fang Deji 1.47% 206,130,576
person
Zhejiang Yiwu
Tanzhen
Investment
Management
Partnership
Fund, wealth
(Limited
management 1.03% 145,169,128
Partnership)－
product, etc.
Loyal Valley
(Tanzhen) Value
China Exclusive
Private Securities
Investment Fund
National Social
Fund, wealth
Security
management 0.93% 129,785,014 - - -
Fund-Portfolio
product, etc.
601
CITIC Securities
－CITIC Bank－
CITIC Securities Fund, wealth
Dividend Value management 0.58% 80,906,050 - - -
One-Year Mixed product, etc.
Collective Asset
Management Plan
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held at the period-end
Type Shares
Huizhou Investment Holding Co., RMB-denominate
743,139,840 743,139,840
Ltd. d ordinary stock
Li Dongsheng and his 548,417,791 RMB-denominate 548,417,791
6
TCL Technology Group Corporation First Quarterly Report 2021
acting-in-concert party d ordinary stock
Hong Kong Securities Clearing RMB-denominate
457,850,083 457,850,083
Company Ltd. d ordinary stock
China Securities Finance RMB-denominate
373,231,553 373,231,553
Corporation Limited d ordinary stock
Tibet Tianfeng Enterprise RMB-denominate
247,284,337 247,284,337
Management Co., Ltd. d ordinary stock
RMB-denominate
Fang Deji 206,130,576 206,130,576
d ordinary stock
Zhejiang Yiwu Tanzhen Investment
Management Partnership (Limited
RMB-denominate
Partnership)－Loyal Valley 145,169,128 145,169,128
d ordinary stock
(Tanzhen) Value China Exclusive
Private Securities Investment Fund
National Social Security RMB-denominate
129,785,014 129,785,014
Fund-Portfolio 601 d ordinary stock
CITIC Securities－CITIC Bank－
CITIC Securities Dividend Value RMB-denominate
80,906,050 80,906,050
One-Year Mixed Collective Asset d ordinary stock
Management Plan
Bank of Communications Co., Ltd.
RMB-denominate
－China Southern Growth Pioneer 77,368,741 77,368,741
d ordinary stock
Mixed Securities Investment Fund
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) (hereinafter referred to as “Jiutian Liancheng”) are the biggest shareholder of the
Company with a total of 1,158.5994 million shares.
Shareholders Fang Deji and Zhejiang Yiwu Tanzhen Investment Management Partnership
Top 10 shareholders involved in
(Limited Partnership)－Loyal Valley (Tanzhen) Value China Exclusive Private Securities
securities margin trading (if any)
Investment Fund held shares in the Company in margin accounts.
Note: The top 10 shareholders in the table above do not include “The Securities Account of TCL Technology Group Corporation for
Repurchases”. As of the end of the Reporting Period, there were 484,206,763 shares in the account.
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted
any promissory repo during the Reporting Period.
□ Yes ■ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable ■ Not applicable
7
TCL Technology Group Corporation First Quarterly Report 2021
Part III Directors’ Report
I. Overview
In the Reporting Period, the rollout of the COVID-19 vaccine and the implementation of
relaxed policies contributed to the recovery of the global economy. However, the adjustment of
relations among major countries continued to disturb the trade order, increasing the instability of the
industrial chain, and accelerating the differentiation and restructuring of the global economic
pattern. The manufacturing, as a source of China's economic competitiveness and comparative
competitive advantage, will usher in a new stage of development. In the face of the challenges and
opportunities, the Company continued its efforts in line with the spirit of “Ramping up, Catching up
and Going all out to be A Global Leader”, the requirements of the "9205" strategic development
plan and the operating strategy of “improving operating quality and profitability, consolidating
advantages and improving disadvantages, accelerating global layout, and driving development via
innovation” to promote the two core businesses, namely the semi-conductor display business and
the semi-conductor photovoltaic and semi-conductor materials business, to be global leading
industries.
In the first quarter of 2021, the Company recorded a revenue of RMB32.144 billion, up by
133.91% year-on-year; a net profit of RMB3.236 billion, up by 10.96 times year-on-year; a net
profit attributable to the Company’s shareholders of RMB2.404 billion, up by 488.97%
year-on-year. TCL CSOT and Zhonghuan Semiconductor had great performance in these two core
industries. The semi-conductor display industry had constant improvement in the competition
pattern and the supply and demand relationship, resulting in the price rise; the new production line
is raising its mass production, and the scale effect and market position are increasing, product
portfolio in high-end market and medium-size products is expanded. TCL CSOT recorded a net
profit of RMB2.396 billion, up by RMB2.57 billion year-on-year and by 29.12% quarter-on-quarter,
including a quarter-on-quarter net profit increase of 52.96% from large-size products, achieving
continuously leading efficiency and profitability. The main raw materials in the photovoltaic
industry continued to increase in price, and the competition pattern tends to be more complex.
8
TCL Technology Group Corporation First Quarterly Report 2021
Zhonghuan Semiconductor redefined its corporate development strategy, and reduced the costs,
increased the capacity of existing equipment, improved product quality and consistency, and
reduced raw material consumption per unit of product through technological innovation and
improved manufacturing process. The total capacity of photovoltaic monocrystalline silicon product
reached 60GW two months ahead of schedule, the market competitiveness, market share and
profitability improved month by month. With continued global semiconductor shortage, Zhonghuan
Semiconductor had accelerated growth in the business of raw materials used for power
semiconductor products. The 8-12-inch large silicon wafers project ramped up smoothly, with a
revenue increase of c. 80% year-on-year. Zhonghuan Semiconductor achieved a net profit of
RMB743 million, up by 100.0% year-over-year.
Looking into the rest of 2021, TCL CSOT and Zhonghuan Semiconductor will continue to
grow robustly. Phase I of the t7 production line in Shenzhen will reach design capacity this year. 60%
shares of Suzhou China Star Optoelectronics (t10) and 100% shares of Suzhou China Star Display
(M10) were acquired, which will contribute to revenue of the Company from the second quarter of
2021; Moka International Limited will be included in the consolidated statements of the Company
from the second quarter of 2021; t9 production line in Guangzhou will be a new driving force in
medium-size field as the Board of Directors has approved it. Zhonghuan Semiconductor accelerated
construction of phase V monocrystalline silicon project in Inner Mongolia, and Zhonghuan Phase
VI 50GW(G12) project in Yinchuan, Ningxia Province was commenced as planned. In a new round
of pattern reshaping driven by technological innovation, industrial ecosystem and ultimate
efficiency in the PV industry, Zhonghuan Semiconductor stands out thanks to its accumulated
technological advantages. Through the G12 platform and overlapped-cell products’ technological
strength, the ecological resources of the fast-growing industrial alliance, and the first layout of
advantageous production capacity, Zhonghuan Semiconductor is confident to complete the Double
Operating Profit Plan in 2021.
TCL Tech. will seize the golden period of global economic pattern adjustment and China's
manufacturing development, and march forward to be a global industry leader with a stronger
driving force for development!
9
TCL Technology Group Corporation First Quarterly Report 2021
II. Core Business Analysis
The business structure of the Company primarily consists of the semi-conductor display
business, the semi-conductor photovoltaic and semi-conductor materials business, the industrial
finance and investment business, as well as the other businesses. The Company will continue to
optimize its business structure and further focus its resources on the development of the two core
businesses, and achieve the strategic goal of global leadership in the two core businesses, namely
the semi-conductor display and the semi-conductor photovoltaic and semi-conductor materials.
(I) Semi-conductor display business
The supply-demand relationship in the semi-conductor display industry was improved,
industry consolidation was accelerated, product prices continued to rise, and the overall profitability
of the industry was enhanced. TCL CSOT continued to adhere to established strategies and
operating strategy, held the business bottom line of maximizing cost efficiency, continuously
improved management capabilities and control systems to consolidate the global industry
leadership in terms of efficiency and profitability. In the Reporting Period, TCL CSOT recorded
a product sales area of 8.344 million square meters, up by 17.5% year-on-year; a revenue of
RMB17.373 billion, up by 90.0% year-on-year; and a net profit of RMB2.396 billion, up by
RMB2.57 billion year-on-year or by 29.12% compared with Q4 2020.
The large-size panel business expanded its scale advantage, further promoted its market
position and maintained leading efficiency and profitability in the world. t1, t2 and t6 plants
continued to operate at full capacity for strong sales. The t7 plant raised production as scheduled.
The shipment of large-size products reached 7.9453 million square meters, up by 15.5%
10
TCL Technology Group Corporation First Quarterly Report 2021
year-on-year. 12.8133 million pieces were shipped with a year-on-year increase of 7.57%. Sales
revenue was RMB12.072 billion, rising by 94.9% year-on-year. Globally, the Company rose to
second place in the ranking of market share in TV panels. Besides, it was ranked first regarding the
market share in 55-inch products, second in 32-inch, 65-inch and 75-inch products. The shipment of
interactive whiteboards jumped to the top across the world. Market shares in commercial displays,
such as rail transit products and splicing screen, climbed swiftly.
For the small-size panel business, close attention was paid to enhancement of technical
capacity and optimization of product and customer structures. In terms of the t3 LTPS
production line, technical capacity was continuously enhanced, product structure was diversified,
and cooperation with strategic customers was deepened; the shipment of LTPS mobile panels took
fourth place globally, the shipment of LTPS notebook panels was ranked second in the world, with
continuous robust growth. The t4 production line of flexible AMOLED displays produced at full
capacity in Phase I. The flexible foldable screens grew due to the volume spike of new types
launched by brand customers. Breakthroughs in new customers will be made further as equipment
for Phases II and III are being moved in. In the Reporting Period, due to the significant increase in
fixed costs driven by the expansion of new production lines and seasonal factors, the performance
of small-size panel business slightly declined quarter on quarter, and the Company actively
improved its operational benefits through product structure optimization and maximizing cost
reduction. In the Reporting Period, the shipment of t3 and t4 reached 398,700 square meters, up by
81.2% year-on-year; 25.8972 million pieces were shipped with a year-on-year increase of 55.1%.
The revenue from the small-size panel business amounted to RMB5.30 billion, increasing by 79.8%
year-on-year.
The medium-sized panel business had fast improved comprehensive competitiveness and
became a new driving force for the growth of TCL CSOT. To grasp the market opportunities
brought by emerging application scenarios and demand of performance upgrade, and to enhance
TCL CSOT's market share and competitive advantage in medium-sized displays, the Company
rapidly implemented its medium-sized panel business strategy and completed its reserve in
technology, product and customer, and as a result, successfully introduced multiple world famous
brands of high-end notebooks, tablets and vehicle displays. Based on the existing products, R&D
11
TCL Technology Group Corporation First Quarterly Report 2021
and customer base, the 8.6 generation oxide semiconductor new display device production line (t9
plant) project was quickly built to expand capacity for the medium-sized product market and
customers, further diversified the e-sports displays, high-end notebooks, tablets, and vehicle
displays and commercial displays. The Company accelerated the upgrade from a global leader in
large-size display industry to a global leader in full-size display industry by leveraging its
advantages in low-power consumption, high refresh rate, wide color gamut and other technological
areas.
Looking into the future, the long-term prospects of the semi-conductor display industry
are promising, TCL CSOT continued growth in scale and strengthened its efficiency
advantages. The concentration of LCD industry is improved and leading enterprises have
developed a significant industry barrier. TCL CSOT’s market share and competitive advantage will
continue to improve significantly over the next 12 quarters as the takeover of t10 plant is completed,
the t7 plant continues its capacity ramp-up, phases II and III of the t4 plant are accelerated, and
construction of t9 plant starts. The Company will continuously optimize product and revenue
structures, implement strategic layout of high-end products, and enhance the scale and overall
competitiveness of full-size products to drive its sustainable and quality progress.
(II) Semi-conductor photovoltaic and semi-conductor materials
The year 2021 marks the start of ownership reform of Zhonghuan Semiconductor. The
company updated the "9205" development strategic plan, which clarifies the overall goal of
"global leading strategy for new energy materials and catching up strategy for semiconductor
materials", and accelerated the renewal of opeartions and improved organizational vitality,
optimized industrial layout, consolidated advantages and improved disadvantages, and improved
operating quality and profitability. In the Reporting Period, Zhonghuan Semiconductor accelerated
the
enhancement of G12 product technology and overlapped-cell modules technology barriers
and industrialization process, expand the leading edge of silicon wafer for power semiconductor
products, and accelerate the increase of the production capacity of silicon wafer for IC products. It
recorded a revenue of RMB7.46 billion, up by 65.23% year-on-year; a net profit of RMB743
12
TCL Technology Group Corporation First Quarterly Report 2021
million, up by 100.0% year-on-year.
In terms of semi-conductor photovoltaic, Zhonghuan Semiconductor grasped the golden
opportunity of industry development and accelerated the expansion from technology
leadership to advanced capacity scale leadership and industrial chain ecology leadership.
Focusing on the development and integration of two platform-level technologies, namely G12
large-size silicon wafers and high-efficiency overlapped-cell modules, and leveraging Industry
4.0 and lean intelligent manufacturing, the company took advantage of product and
technology to enhance industrial competitiveness.
In terms of photovoltaic materials, the company's G12 monocrystalline silicon and silicon
wafers in the Reporting Period gradually highlighted its technical advantages, product sales and
earnings grew month by month, and the company's advanced production capacity entered a period
of rapid growth. Phase V crystal production capacity in Inner Mongolia's is climbing as scheduled;
following the start of operation of the DW-cut ultra-thin silicon wafer project in Tianjin, for the
Inner Mongolia Zhonghuan Solar Phase II 25GW(G12) wafer project, the first batch of process
equipment arrived at the plant, and commissioning was completed at the end of February, and this
project is expected to start production in April 2021 and reach design capacity within the year; the
construction of the 50GW(G12) intelligent factory project launched in Yinchuan started. In addition,
through a new round of technical reform and manufacturing methods improvement, Zhonghuan
Semiconductor economically increased the theoretical unit capacity of existing equipment and the
actual capacity during the Reporting Period, which jointly facilitated the total monocrystalline PV
silicon capacity to be more than 60GW 2 months ahead of the original plan and effectively reduced
the unit investment cost of the company's advanced capacity.
Moreover, the technical reform and manufacturing methods improvement have effectively
improved product quality and consistency, reduced raw material consumption per unit of product,
and continuously reduced operating costs. As a result, profits on the manufacturing side increased
by more than RMB155 million in the first quarter, absorbing to some extent the impact of the price
increase of raw and auxiliary material during the Reporting Period. Relevant technological
innovation and the continued application of Industry 4.0 in the company's operation scenarios and
business processes will bring sustained contributions to the production and sales scale and operating
13
TCL Technology Group Corporation First Quarterly Report 2021
results in the PV materials segment throughout the year.
In terms of photovoltaic cells and modules, Zhonghuan Semiconductor continuously
performed R&D of module technology for the overlapped-cell 3.0 production line and PERC3.0
cell technology, collaborated with domestically leading G12 PERC cell manufacturers in investing
resources for new technology R&D to improve the cost performance of overlapped-cell module
products and achieve the differentiating competitiveness of the final products. The capacity turned
5GW/year at the end of the Reporting Period. In the Reporting Period, based on the intellectual
property rights and R&D capacities of MAXEON in IBC cells and components and overlapped-cell
modules, the company further built up its manufacturing system of cells and components as well as
surface and distributed power stations worldwide and improved overseas industrial layout and
global supply chain system.
In terms of semi-conductor materials business, Zhonghuan Semi-conductor strengthened
product technology development and industrial capacity building, and improved product
structure to meet the differentiating needs of strategic customers.
In the Reporting Period, benefiting from the inadequate supply in global and Chinese
semiconductor markets and the improvement of its competitiveness, Zhonghuan Semiconductor
increased revenue from silicon wafers by c. 80% year-on-year. Dominated by 5-inch, 6-inch and
8-inch silicon wafers for power semiconductor products, the segment growth accelerated, it was at a
leading position and had brand recognition in the domestic market in terms of production and sales
scale, product diversity, product quality and product certification speed; the production and sales
scale of the dominant 8-inch and 12-inch silicon wafers for IC products grew fast, and verification
of strategic customers at home and abroad accelerated. The 8-12-inch large silicon wafer project for
integrated circuits in Yixing, Jiangsu Province is raising capacity smoothly and a short supply
situation has occurred, laying the market foundation for continued capacity release in 2021. By
actively expanding global marketing and service capabilities, actively building market channel
networks in Europe, Japan, Taiwan and other regions where the semiconductor businesses cluster,
creating technical support platforms, and strengthening global system service capabilities,
Zhonghuan Semiconductor achieved 30% overseas sales of materials business in the first quarter of
2021.
14
TCL Technology Group Corporation First Quarterly Report 2021
Looking into the rest of 2021, Zhonghuan Semiconductor will increase investment and asset
restructuring of Inner Mongolia base, Tianjin base and Jiangsu base of Zhonghuan Advanced,
orderly promote the coverage of the company’s products for power semiconductors chips and
integrated circuit chips of all kind; As the company maintains the domestic and global leadership of
Zhonghuan Advanced in power semi-conductor chips of all kinds, it will further improve service
capability for customers with the advanced production process and to raise further the market share
in this area.
(III) Industrial Finance and Investment Business
TCL Capital seeks investment opportunities in key fields of high-tech industries, including
new display, semi-conductor industry chain, as well as key materials and process equipment. These
investments took a balanced approach to promote technology development and derive economic
benefits. By the end of the Reporting Period, the AUM of TCL Capital exceeded RMB9 billion, and
114 projects were invested cumulatively. Currently, it holds the stake of CATL, DKEM, Cambricon,
Newtouch Software, Petro-king Oilfield, ZJBC, HyUnion Holding and other listed companies; as
for Admiralty Harbour Capital, the investment banking and asset management business grew
steadily and it has issued and underwritten 9 bonds and 2 debt management projects. China
Innovative focused on industrial chain investment opportunities related to the Company’s two core
businesses, and has invested in more than 110 listed companies cumulatively with a steady growth
in performance.
In the Reporting Period, the finance team focused on the funding needs of the Company’s key
projects, strengthened the active management of liquidity and currency risk, and gradually satisfied
financial needs of business globalization to support the core businesses of the Company to achieve
global leadership.
15
TCL Technology Group Corporation First Quarterly Report 2021
Part IV Significant Events
I Major Changes of Main Items in Financial Statements and Financial Indicators within the
Reporting Period, as well as the Reasons for the Changes
Unit: RMB
Balance sheet items 31 March 2021 31 December 2020 Change (%) Reasons for the Changes
Decrease in derivatives
Derivative financial assets 219,179,859 453,578,245 -51.7
investments
Notes receivable 1,052,967,190 595,685,338 76.8 Increase in revenue
Increase in prepayments to
Prepayments 1,824,063,319 1,355,653,454 34.6
suppliers
Increase in receivables in
Other receivables 8,465,195,129 2,793,640,153 203.0
relation to investments
Increase in borrowings
Borrowings from central received by TCL Tech
668,442,302 469,834,291 42.3
bank Finance Co., Ltd. from the
central bank
Held-for-trading financial Increase in financial
1,368,835,184 527,901,041 159.3
liabilities products
Derivative financial Decrease in derivatives
174,841,937 384,903,731 -54.6
liabilities investments
Taxes and levies payable 979,478,482 670,058,792 46.2 Increase in earnings
Effect of the new accounting
Long-term payables 565,351,943 1,280,299,665 -55.8
standard governing leases
Other comprehensive Foreign currency translation
-297,310,404 -145,573,093 -104.2
income differences
Income statement items Q1 2021 Q1 2020 Change (%) Reasons for the Changes
Increase in revenue and
Revenue 32,143,561,563 13,742,129,162 133.9 consolidation of Zhonghuan
Electronics
Increase in revenue and
Cost of sales 25,383,357,989 12,743,745,923 99.2 consolidation of Zhonghuan
Electronics
Increase in earnings and
Taxes and levies 106,853,638 38,902,775 174.7 consolidation of Zhonghuan
Electronics
Increase in revenue and
Selling expense 330,230,062 159,592,940 106.9 consolidation of Zhonghuan
Electronics
16
TCL Technology Group Corporation First Quarterly Report 2021
Increase in business and
Administrative expense 763,004,335 321,790,541 137.1 consolidation of Zhonghuan
Electronics
Increase in R&D
investments and
R&D expense 1,540,240,528 837,453,524 83.9
consolidation of Zhonghuan
Electronics
Increase in financings and
Finance costs 740,010,321 384,913,273 92.3 consolidation of Zhonghuan
Electronics
Decrease in government
Other income 343,452,869 620,518,501 -44.7
subsidies
Gain on changes in fair Changes in the fair value of
-292,943,771 -205,634,246 -42.5
value derivatives
Increase in impairment loss
Credit impairment loss
-31,736,912 -7,478,551 324.4 on loans and advances to
( “-” for loss)
customers
Increase in operating profit
Income tax expense 487,257,128 25,846,940 1,785.2 and consolidation of
Zhonghuan Electronics
Increase in net profit and
Net profit attributable to
831,927,064 -137,547,929 704.8 consolidation of Zhonghuan
non-controlling interests
Electronics
Cash flow statement items Q1 2021 Q1 2020 Change (%) Reasons for the Changes
Net cash generated Increase in revenue and
from/used in operating 8,003,201,979 2,299,183,493 248.1 consolidation of Zhonghuan
activities Electronics
Loan repayment and
Net cash generated
increase in the interest in
from/used in financing 2,657,860,614 7,670,463,871 -65.3
Zhonghuan Semiconductor
activities
in the Reporting Period
II Progress, Influence and Solutions with regard to Significant Events
Summary of the significant event Disclosure date Index to the related announcement
Announcement on the Completion of the
Non-Deal Transfer under the Third Global 22 January 2021
Partner Plan http://www.cninfo.com
Voluntary Announcement on the Increase
4 February 2021
in the Interest in Tianjin Printronics Circuit
17
TCL Technology Group Corporation First Quarterly Report 2021
Corporation
Announcement on the Progress on the
Acquisition of a 60% Interest in Samsung
Suzhou LCD Co. Ltd. and the 100% 8 February 2021
Interest in Samsung Display Suzhou Co.,
Ltd.
Voluntary Announcement on the Increase
in the Interest in Tianjin Printronics Circuit 17 March 2021
Corporation
Voluntary Announcement on the Increase
in the Interest in Tianjin Zhonghuan 18 March 2021
Semiconductor Co., Ltd.
Progress of any share repurchase:
□ Applicable ■ Not applicable
Progress on reducing the repurchased shares by means of 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
□ Applicable ■ Not applicable
IV Financial Investments
1. Securities Investments
Unit: RMB’0,000
Gain/loss Cumulati
Measu on ve
Purchased Gain/los
Secu Initial remen Beginning fair-value fair-valu Sold in the Ending Fundin
Securit Security in the s in the Account
rity investment t carrying changes in e Reporting carrying g
y type name Reporting Reportin ing title
code cost metho amount the changes Period amount source
Period g Period
d Reporting recorded
Period in equity
Bank’s Sea Gull
Held-for
wealth Not Collective
Fair -trading Self-fu
manage appli Capital 20,000 - 260 - 20,000 - 260 20,260
value financia nded
ment cable Trust Plan
l assets
product No. 2
Convert Not Convertible Fair Held-for Self-fu
115,077 - - - 115,077 103,005 1,046 12,072
ible appli bonds of value -trading nded
18
TCL Technology Group Corporation First Quarterly Report 2021
bonds cable Bank of financia
Shanghai l assets
Investm
ents in
0860 Fair other Self-fu
Stock Apollo 24,336 17,847 - -12,801 - - - 11,637
.HK value equity nded
instrum
ents
Tier 2 Not 20 China Amort Debt
Self-fu
capital appli CITIC 10,000 ized 10,148 - - - - 95 10,244 investm
nded
debt cable Bank Tier 2 cost ents
Yuanheng
Asset FOF Single Held-for
Not
manage Asset Fair -trading Self-fu
appli 10,000 10,040 89 - - - 89 10,129
ment Manageme value financia nded
cable
plan nt Plan No. l assets
1
USG Held-for
9T27 Vedanta Fair -trading Self-fu
Bonds 8,337 - -213 - 8,337 - -213 8,251
HA Resources value financia nded
D62 l assets
XS2 Held-for
2939 Easy Tactic Fair -trading Self-fu
Bonds 7,890 - 272 - 7,890 - 272 8,221
1828 Ltd value financia nded
5 l assets
USG Held-for
Vedanta
9328 Fair -trading Self-fu
Bonds Resources 7,541 - 45 - 7,541 - 302 7,641
DA value financia nded
Ltd
M23 l assets
US7 Held-for
1654 Petroleos Fair -trading Self-fu
Bonds 6,677 7,019 -165 - - - 46 6,902
QCG Mexicanos value financia nded
55 l assets
XS1 Held-for
6426 Softbank Fair -trading Self-fu
Bonds 6,969 6,704 41 - - - 265 6,793
8667 Group Corp value financia nded
6 l assets
Other securities
investments held at the 585,818 -- 499,197 -19,391 6,841 112,409 333,493 1,321 305,524 - --
period-end
Total 802,646 -- 550,954 -19,060 -549 271,254 436,498 3,484 407,673 -- --
Disclosure date of the
board announcement 12 December 2020
approving the securities
19
TCL Technology Group Corporation First Quarterly Report 2021
investments
Disclosure date of the
general meeting
announcement 29 December 2020
approving the securities
investments (if any)
2. Investments in Derivative Financial Instruments
Funding source Mostly foreign-currency revenue
Legal matters involved (if
Not applicable
applicable)
Disclosure date of the board
announcement approving the 28 April 2018
derivative investments (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
Analysis of risks and control fluctuation of underlying interest and exchange rates, which lead to the fluctuation of prices of
measures associated with financial derivatives;
derivative investments held in
2. Liquidity risk: the derivatives business carried out by the Group is an over-the-counter
Reporting Period (including but
transaction operated by a financial institution, and there is a risk of loss due to paying fees to the
not limited to market risk,
bank for the operations of evening up or selling the derivatives below the buying prices;
liquidity risk, credit risk,
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:
20
TCL Technology Group Corporation First Quarterly Report 2021
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 the
Changes in market prices or fair
operation of forward foreign exchange contracts, interest rate swap contracts and futures contracts
value of derivative investments in
to avoid and hedge foreign exchange risks arising from operation and financing. It saw a net gain
Reporting Period (fair value
of RMB91.02 million for the Reporting Period. The fair value of derivatives is determined by
analysis should include
real-time quoted price of the foreign exchange market, based on the difference between the
measurement method and related
contractual price and the forward exchange rate quoted immediately in the foreign exchange
assumptions and parameters)
market on the balance sheet date.
Major changes in accounting
policies and specific accounting
principles adopted for derivative No significant change
investments in Reporting Period
compared to last reporting period
Opinion of independent directors
In view of the fact that certain raw materials of the core business of the Company are purchased
on derivative investments and
overseas, a wide range of settlement currencies is involved. The Company reduces exchange
risk control losses and locks transaction costs by reasonable financial derivatives, which helps to reduce risk
21
TCL Technology Group Corporation First Quarterly Report 2021
control costs and improve company competitiveness. Risks are effectively controlled as the
Company has 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 financial derivatives transactions carried out by the Company in Q1 2021 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’0,000
Ending contractual amount
Gain/loss
Beginning amount Ending amount as % of the Company’s ending
in
Type of contract net assets
Reporting
Contractual Actual Contractual Actual Contractual Actual
Period
amount amount amount amount amount amount
1. Forward forex contracts 1,931,617 59,359 1,627,130 54,962 17.75 0.60
2. Interest rate swaps 758,846 22,765 764,242 22,927 9,102 8.34 0.25
3. Currency swaps 310,520 15,526 98,570 4,928 1.08 0.05
Total 3,000,983 97,650 2,489,942 82,818 9,102 27.17 0.90
V Progress of Projects Financed with Raised Funds
In 2020, the Company carried out a program of asset purchase via share and convertible corporate
bonds offering and cash payment and matching funds raising, with the total raised funds amounting
to RMB2.6 billion. The raised funds would be used to pay the cash consideration for the acquisition
of a 39.95% interest held by Wuhan Industrial Investment in Wuhan CSOT, repay debt and
supplement the working capital. As of 10 March 2021, the raised funds had been used up. For
further information, please refer to the Announcement on Using up of the Funds Raised via Share
and Convertible Corporate Bonds Offering for Asset Purchase and Raising the Matching Funds
disclosed by the Company on the media designated for information disclosure.
VI Operating Performance Forecast for H1 2021
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2021, as well as explanation of
why:
22
TCL Technology Group Corporation First Quarterly Report 2021
□ Applicable ■ Not applicable
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable ■ Not applicable
VIII Cash Entrusted for Wealth Management
Unit: RMB’0,000
Type Funding source Amount Undue amount Unrecovered overdue amount
Bank’s wealth
Self-funded 200,033.30 33.30 -
management product
Securities firm’s wealth
Self-funded 26,000.00 16,000.00 -
management product
Trust plan Self-funded 20,000.00 20,000.00 -
Other Self-funded 185,557.43 52,552.23 -
Total 431,590.73 88,585.53 -
High-risk wealth management transactions with a significant single amount, low liquidity and no principal protection:
□ Applicable ■ Not applicable
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable ■ Not applicable
IX Irregularities in the Provision of Guarantees
□ Applicable ■ Not applicable
X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable ■ Not applicable
XI Communications with the Investment Community such as Researches, Inquiries and
Interviews Received during the Reporting Period
Main
Type of Index to main
Way of Communication discussions and
Date Place communication information
communication party materials
party communicated
provided
JPMorgan, Inquired about Log Sheet No.
The Ritz-Carlton
By visit and Morgan Stanley, the 2020 2021-001 on Investor
11 March 2021 Beijing Institution
phone Foresight Fund performance and Relations Activities
Financial Street
Management development disclosed by the
23
TCL Technology Group Corporation First Quarterly Report 2021
Company, planning of TCL Company on
TruValue Asset Tech. http://www.cninfo.com.
Management, cn dated 15 March
China Life 2021
Pension
Company
Limited,
Tianhong Asset
Management,
Dajia Asset
Management,
Taikang Asset
Management,
TianAn Life, etc.
24
TCL Technology Group Corporation First Quarterly Report 2021
Part V Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by TCL Technology Group Corporation
Unit: RMB
Item 31 March 2021 31 December 2020
Current assets:
Monetary assets 21,866,755,914.00 21,708,904,743.00
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets 3,802,869,673.00 5,300,045,879.00
Derivative financial assets 219,179,859.00 453,578,245.00
Notes receivable 1,052,967,190.00 595,685,338.00
Accounts receivable 15,672,609,886.00 12,557,614,486.00
Receivables financing 1,608,178,118.00 2,176,743,646.00
Prepayments 1,824,063,319.00 1,355,653,454.00
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 8,465,195,129.00 2,793,640,153.00
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 8,882,549,680.00 8,834,957,692.00
Contract assets 199,410,288.00 183,650,278.00
Assets held for sale 256,938,591.00 360,935,948.00
Current portion of non-current assets 63,050,115.00
Other current assets 8,952,314,761.00 9,367,055,433.00
Total current assets 72,866,082,523.00 65,688,465,295.00
25
TCL Technology Group Corporation First Quarterly Report 2021
Non-current assets:
Loans and advances to customers 997,789,579.00 981,876,228.00
Debt investments 119,904,974.00 119,349,896.00
Other debt investments 154,543,851.00 152,062,601.00
Long-term receivables 699,379,064.00 778,889,309.00
Long-term equity investments 24,340,787,935.00 24,047,036,004.00
Investments in other equity
1,267,383,678.00 1,333,675,630.00
instruments
Other non-current financial assets 3,014,285,378.00 3,055,595,097.00
Investment property 1,708,552,761.00 1,664,201,130.00
Fixed assets 94,224,678,564.00 92,829,901,894.00
Construction in progress 36,900,616,376.00 31,508,310,783.00
Productive living assets
Oil and gas assets
Right-of-use assets 1,836,520,444.00
Intangible assets 11,559,900,467.00 10,054,045,032.00
Development costs 1,664,984,199.00 2,103,994,558.00
Goodwill 6,943,264,794.00 6,943,264,794.00
Long-term prepaid expense 2,380,306,309.00 2,536,670,015.00
Deferred income tax assets 1,387,256,553.00 1,578,087,991.00
Other non-current assets 12,627,250,195.00 12,532,852,630.00
Total non-current assets 201,827,405,121.00 192,219,813,592.00
Total assets 274,693,487,644.00 257,908,278,887.00
Current liabilities:
Short-term borrowings 13,915,672,147.00 12,263,713,979.00
Borrowings from the central bank 668,442,302.00 469,834,291.00
Loans from other banks and financial
institutions
Held-for-trading financial liabilities 1,368,835,184.00 527,901,041.00
Derivative financial liabilities 174,841,937.00 384,903,731.00
Notes payable 6,053,247,077.00 4,725,611,752.00
Accounts payable 20,590,854,151.00 16,468,931,544.00
Advances from customers 62,773,331.00 78,597,459.00
Contract liabilities 2,113,158,334.00 2,004,004,181.00
Financial assets sold under 50,080,208.00 50,080,208.00
26
TCL Technology Group Corporation First Quarterly Report 2021
repurchase agreements
Customer deposits and deposits from
3,583,649,744.00 2,850,138,744.00
other banks and financial institutions
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 1,769,080,325.00 1,856,664,146.00
Taxes and levies payable 979,478,482.00 670,058,792.00
Other payables 17,390,694,070.00 14,869,433,359.00
Including: Interest payable
Dividends payable 1,293,099.00 1,293,097.00
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
12,468,897,969.00 13,429,669,611.00
liabilities
Other current liabilities 336,370,951.00 366,970,706.00
Total current liabilities 81,526,076,212.00 71,016,513,544.00
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 78,353,685,147.00 73,589,403,308.00
Bonds payable 18,094,160,624.00 18,040,772,610.00
Including: Preference shares
Perpetual bonds
Lease liabilities 903,293,868.00
Long-term payables 565,351,943.00 1,280,299,665.00
Long-term employee benefits
27,669,191.00 27,857,583.00
payable
Provisions
Deferred income 1,208,873,737.00 1,509,867,357.00
Deferred income tax liabilities 2,364,772,001.00 2,386,496,733.00
Other non-current liabilities
Total non-current liabilities 101,517,806,511.00 96,834,697,256.00
Total liabilities 183,043,882,723.00 167,851,210,800.00
27
TCL Technology Group Corporation First Quarterly Report 2021
Owners’ equity:
Share capital 14,030,788,362.00 14,030,788,362.00
Other equity instruments 230,240,606.00 230,240,606.00
Including: Preference shares
Perpetual bonds
Capital reserves 4,201,713,830.00 5,442,384,608.00
Less: Treasury stock 1,799,696,760.00 1,913,028,859.00
Other comprehensive income -297,310,404.00 -145,573,093.00
Specific reserve 309,346.00 211,932.00
Surplus reserves 2,452,892,102.00 2,452,892,102.00
General reserve 360,767.00 385,534.00
Retained earnings 16,405,076,153.00 14,009,494,262.00
Total equity attributable to owners of
35,224,374,002.00 34,107,795,454.00
the Company as the parent
Non-controlling interests 56,425,230,919.00 55,949,272,633.00
Total owners’ equity 91,649,604,921.00 90,057,068,087.00
Total liabilities and owners’ equity 274,693,487,644.00 257,908,278,887.00
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 2021 31 December 2020
Current assets:
Monetary assets 4,673,557,233.00 2,208,790,335.00
Held-for-trading financial assets 494,026,692.00 1,221,656,698.00
Derivative financial assets 2,850,000.00
Notes receivable 6,000,000.00 6,000,000.00
Accounts receivable 242,732,754.00 175,787,300.00
Receivables financing
Prepayments 6,814,091.00 97,962,630.00
Other receivables 25,785,861,592.00 25,555,923,615.00
Including: Interest receivable
Dividends receivable
Inventories 889,550.00 5,997,388.00
28
TCL Technology Group Corporation First Quarterly Report 2021
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 2,332,646.00 2,332,646.00
Total current assets 31,215,064,558.00 29,274,450,612.00
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 65,369,362,149.00 65,094,459,376.00
Investments in other equity
15,000,000.00 15,000,000.00
instruments
Other non-current financial assets 1,275,592,020.00 1,145,021,734.00
Investment property 87,699,827.00 88,686,986.00
Fixed assets 46,296,612.00 46,011,508.00
Construction in progress 5,957,827.00 11,440,567.00
Productive living assets
Oil and gas assets
Right-of-use assets 469,533,606.00
Intangible assets 53,510,468.00 42,310,680.00
Development costs
Goodwill
Long-term prepaid expense 32,119,285.00 469,424,698.00
Deferred income tax assets 2,866.00 6,709.00
Other non-current assets
Total non-current assets 67,355,074,660.00 66,912,362,258.00
Total assets 98,570,139,218.00 96,186,812,870.00
Current liabilities:
Short-term borrowings 4,583,581,361.00 3,670,230,653.00
Held-for-trading financial liabilities
Derivative financial liabilities 16,513,000.00
Notes payable
Accounts payable 242,589,681.00 129,703,459.00
Advances from customers 626,347.00
29
TCL Technology Group Corporation First Quarterly Report 2021
Contract liabilities 1,871,994.00
Employee benefits payable 204,396,873.00 220,510,234.00
Taxes and levies payable 7,914,959.00 26,070,786.00
Other payables 27,194,760,921.00 26,377,023,713.00
Including: Interest payable
Dividends payable 1,292,429.00 1,292,429.00
Liabilities directly associated with
assets held for sale
Current portion of non-current
5,216,364,309.00 6,141,029,463.00
liabilities
Other current liabilities 1,323,541.00 315,970.00
Total current liabilities 37,451,557,992.00 36,583,269,272.00
Non-current liabilities:
Long-term borrowings 13,353,000,000.00 12,087,500,000.00
Bonds payable 14,130,272,528.00 14,092,345,084.00
Including: Preference shares
Perpetual bonds
Lease liabilities 22,890,284.00
Long-term payables
Long-term employee benefits
21,801,770.00 21,991,372.00
payable
Provisions
Deferred income 41,864,052.00 42,651,822.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 27,569,828,634.00 26,244,488,278.00
Total liabilities 65,021,386,626.00 62,827,757,550.00
Owners’ equity:
Share capital 14,030,788,362.00 14,030,788,362.00
Other equity instruments 230,240,606.00 230,240,606.00
Including: Preference shares
Perpetual bonds
Capital reserves 9,847,091,192.00 9,846,835,060.00
Less: Treasury stock 1,799,696,760.00 1,913,028,859.00
Other comprehensive income 141,998,219.00 141,998,219.00
30
TCL Technology Group Corporation First Quarterly Report 2021
Specific reserve
Surplus reserves 2,250,827,663.00 2,250,827,663.00
Retained earnings 8,847,503,310.00 8,771,394,269.00
Total owners’ equity 33,548,752,592.00 33,359,055,320.00
Total liabilities and owners’ equity 98,570,139,218.00 96,186,812,870.00
3. Consolidated Income Statement
Unit: RMB
Item Q1 2021 Q1 2020
1. Total revenues 32,173,945,858.00 13,789,536,228.00
Including: Revenue 32,143,561,563.00 13,742,129,162.00
Interest income 30,384,295.00 47,407,066.00
Insurance premium income
Fee and commission
income
2. Costs and expenses 28,868,451,833.00 14,493,594,692.00
Including: Cost of sales 25,383,357,989.00 12,743,745,923.00
Interest expense 4,754,960.00 7,195,716.00
Fee and commission
expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and levies 106,853,638.00 38,902,775.00
Selling expense 330,230,062.00 159,592,940.00
Administrative expense 763,004,335.00 321,790,541.00
R&D expense 1,540,240,528.00 837,453,524.00
Finance costs 740,010,321.00 384,913,273.00
Including: Interest
966,852,847.00 553,121,614.00
expense
Interest
103,593,808.00 162,367,782.00
income
31
TCL Technology Group Corporation First Quarterly Report 2021
Add: Other income 343,452,869.00 620,518,501.00
Return on investment (“-” for loss) 493,372,758.00 694,268,712.00
Including: Share of profit or loss
149,003,152.00 300,625,432.00
of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost
Exchange gain (“-” for loss) -14,384.00 182,919.00
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-292,943,771.00 -205,634,246.00
for loss)
Credit impairment loss (“-” for
-31,736,912.00 -7,478,551.00
loss)
Asset impairment loss (“-” for loss) -301,118,508.00 -232,590,984.00
Asset disposal income (“-” for
159,503.00 6,658.00
loss)
3. Operating profit (“-” for loss) 3,516,665,580.00 165,214,545.00
Add: Non-operating income 210,942,953.00 141,925,394.00
Less: Non-operating expense 4,694,406.00 10,715,126.00
4. Gross profit (“-” for loss) 3,722,914,127.00 296,424,813.00
Less: Income tax expense 487,257,128.00 25,846,940.00
5. Net profit (“-” for net loss) 3,235,656,999.00 270,577,873.00
5.1 By operating continuity
5.1.1 Net profit from continuing
3,235,656,999.00 270,577,873.00
operations (“-” 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
2,403,729,935.00 408,125,802.00
owners of the Company as the parent
5.2.1 Net profit attributable to
831,927,064.00 -137,547,929.00
non-controlling interests
6. Other comprehensive income, net of
-180,087,886.00 -201,191,608.00
tax
Attributable to owners of the Company
-151,737,311.00 -135,977,236.00
as the parent
6.1 Items that will not be
-65,621,285.00 -24,540,407.00
reclassified to profit or loss
32
TCL Technology Group Corporation First Quarterly Report 2021
6.1.1 Changes caused by
remeasurements on defined benefit
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
-65,621,285.00 -24,540,407.00
investments in other equity instruments
6.1.4 Changes in the fair value
arising from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
-86,116,026.00 -111,436,829.00
profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit 11,868.00 8,800,657.00
or loss under the equity method
6.2.2 Changes in the fair value of
other debt investments
6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Credit impairment
allowance for other debt investments
6.2.5 Reserve for cash flow
-75,069,636.00 -31,380,198.00
hedges
6.2.6 Differences arising from the
translation of foreign
-11,058,258.00 -88,857,288.00
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling
-28,350,575.00 -65,214,372.00
interests
7. Total comprehensive income 3,055,569,113.00 69,386,265.00
Attributable to owners of the Company
2,251,992,624.00 272,148,566.00
as the parent
Attributable to non-controlling
803,576,489.00 -202,762,301.00
interests
8. Earnings per share
8.1 Basic earnings per share 0.1781 0.0316
8.2 Diluted earnings per share 0.1713 0.0302
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
33
TCL Technology Group Corporation First Quarterly Report 2021
Person-in-charge of the financial department: Xi Wenbo
4. Income Statement of the Company as the Parent
Unit: RMB
Item Q1 2021 Q1 2020
1. Revenue 307,619,705.00 277,992,615.00
Less: Cost of sales 229,164,379.00 186,288,369.00
Taxes and levies 3,547,225.00 884,082.00
Selling expense 4,863,172.00 5,539,685.00
Administrative expense 71,791,383.00 44,402,485.00
R&D expense 32,899,759.00 22,086,746.00
Finance costs 401,851,331.00 269,483,384.00
Including: Interest expense 583,166,671.00 403,477,889.00
Interest income 205,588,588.00 134,103,744.00
Add: Other income 1,756,844.00 4,807,000.00
Return on investment (“-” for
294,992,985.00 899,034,332.00
loss)
Including: Share of profit or
270,571,871.00 265,646,202.00
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
9,486,419.00 81,456,431.00
for loss)
Credit impairment loss (“-” for
15,695.00 995.00
loss)
Asset impairment loss (“-” for
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) -130,245,601.00 734,606,622.00
Add: Non-operating income 206,621,894.00 139,294,872.00
Less: Non-operating expense 251,617.00 7,636.00
3. Gross profit (“-” for loss) 76,124,676.00 873,893,858.00
Less: Income tax expense 3,843.00
34
TCL Technology Group Corporation First Quarterly Report 2021
4. Net profit (“-” for net loss) 76,120,833.00 873,893,858.00
4.1 Net profit from continuing
76,120,833.00 873,893,858.00
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
schemes
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
arising from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
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
other debt investments
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance
for other debt investments
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.7 Other
6. Total comprehensive income 76,120,833.00 873,893,858.00
7. Earnings per share
7.1 Basic earnings per share
35
TCL Technology Group Corporation First Quarterly Report 2021
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2021 Q1 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities
27,034,723,608.00 14,850,100,323.00
and rendering of services
Net increase in customer deposits and
deposits from other banks and financial 733,511,000.00 -465,489,884.00
institutions
Net increase in borrowings from the
198,608,011.00 168,685,969.00
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, fees and commissions
30,384,295.00 47,407,066.00
received
Net increase in loans from other
banks and financial institutions
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax and levy rebates 1,394,337,857.00 608,001,845.00
Cash generated from other operating
1,171,334,830.00 467,981,716.00
activities
Subtotal of cash generated from
30,562,899,601.00 15,676,687,035.00
operating activities
Payments for commodities and
17,145,704,624.00 11,369,283,220.00
services
Net increase in loans and advances to
1,013,946,603.00 -1,555,006,243.00
customers
Net increase in deposits in the central
bank and other banks and financial 68,720,062.00 -202,132,448.00
institutions
Payments for claims on original
36
TCL Technology Group Corporation First Quarterly Report 2021
insurance contracts
Net increase in loans to other banks
and financial institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 2,018,238,456.00 1,589,132,206.00
Taxes and levies paid 582,590,307.00 844,676,500.00
Cash used in other operating
1,730,497,570.00 1,331,550,307.00
activities
Subtotal of cash used in operating
22,559,697,622.00 13,377,503,542.00
activities
Net cash generated from/used in
8,003,201,979.00 2,299,183,493.00
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 6,373,430,027.00 4,618,844,632.00
Return on investment 125,899,457.00 76,434,103.00
Net proceeds from the disposal of
fixed assets, intangible assets and other 18,531,879.00 23,052.00
long-lived assets
Net proceeds from the disposal of
197,487,161.00
subsidiaries and other business units
Cash generated from other investing
6,368,912.00
activities
Subtotal of cash generated from
6,524,230,275.00 4,892,788,948.00
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 7,543,249,643.00 4,982,864,051.00
long-lived assets
Payments for investments 9,287,433,997.00 9,033,187,658.00
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
50,133,413.00
activities
Subtotal of cash used in investing
16,880,817,053.00 14,016,051,709.00
activities
Net cash generated from/used in
-10,356,586,778.00 -9,123,262,761.00
investing activities
3. Cash flows from financing activities:
Capital contributions received 94,900,000.00 2,260,200,000.00
37
TCL Technology Group Corporation First Quarterly Report 2021
Including: Capital contributions by
94,900,000.00 2,260,200,000.00
non-controlling interests to subsidiaries
Borrowings received 16,219,912,408.00 13,646,741,209.00
Cash generated from other financing
151,949,228.00
activities
Subtotal of cash generated from
16,466,761,636.00 15,906,941,209.00
financing activities
Repayment of borrowings 10,706,121,604.00 7,266,785,974.00
Interest and dividends paid 1,209,556,374.00 640,411,211.00
Including: Dividends paid by
23,055,560.00 26,392,667.00
subsidiaries to non-controlling interests
Cash used in other financing
1,893,223,044.00 329,280,153.00
activities
Subtotal of cash used in financing
13,808,901,022.00 8,236,477,338.00
activities
Net cash generated from/used in
2,657,860,614.00 7,670,463,871.00
financing activities
4. Effect of foreign exchange rates
57,381,895.00 -26,758,509.00
changes on cash and cash equivalents
5. Net increase in cash and cash
361,857,710.00 819,626,094.00
equivalents
Add: Cash and cash equivalents,
18,208,416,780.00 17,637,742,929.00
beginning of the period
6. Cash and cash equivalents, end of the
18,570,274,490.00 18,457,369,023.00
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item Q1 2021 Q1 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities
332,453,923.00 189,757,308.00
and rendering of services
Tax and levy rebates
Cash generated from other operating
1,412,864,320.00 8,341,488,901.00
activities
Subtotal of cash generated from
1,745,318,243.00 8,531,246,209.00
operating activities
Payments for commodities and
229,201,172.00 185,587,256.00
services
Cash paid to and for employees 52,067,664.00 56,588,057.00
38
TCL Technology Group Corporation First Quarterly Report 2021
Taxes and levies paid 30,416,907.00 8,220,063.00
Cash used in other operating
458,037,058.00 316,261,198.00
activities
Subtotal of cash used in operating
769,722,801.00 566,656,574.00
activities
Net cash generated from/used in
975,595,442.00 7,964,589,635.00
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 1,937,957,138.00 1,365,307,500.00
Return on investment 45,986,638.00 11,669,831.00
Net proceeds from the disposal of
fixed assets, intangible assets and other
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
1,983,943,776.00 1,376,977,331.00
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 12,604,273.00 5,391,188.00
long-lived assets
Payments for investments 1,376,585,400.00 1,969,900,000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
1,389,189,673.00 1,975,291,188.00
activities
Net cash generated from/used in
594,754,103.00 -598,313,857.00
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings received 6,549,800,000.00 8,612,000,000.00
Cash generated from other financing
activities
Subtotal of cash generated from
6,549,800,000.00 8,612,000,000.00
financing activities
Repayment of borrowings 5,326,842,000.00 4,272,903,033.00
Interest and dividends paid 317,432,328.00 168,428,437.00
Cash used in other financing 13,813,143.00 1,332,082.00
39
TCL Technology Group Corporation First Quarterly Report 2021
activities
Subtotal of cash used in financing
5,658,087,471.00 4,442,663,552.00
activities
Net cash generated from/used in
891,712,529.00 4,169,336,448.00
financing activities
4. Effect of foreign exchange rates
-18,184,949.00 -3,131,768.00
changes on cash and cash equivalents
5. Net increase in cash and cash
2,443,877,125.00 11,532,480,458.00
equivalents
Add: Cash and cash equivalents,
2,196,283,414.00 3,941,090,221.00
beginning of the period
6. Cash and cash equivalents, end of the
4,640,160,539.00 15,473,570,679.00
period
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2021) of the New
Accounting Standard Governing Leases
The Company is required to fill the table below if it first adopted the new accounting standard governing leases in 2021, unless there
is no need to adjust the financial statements at the beginning of the year.
√ Applicable □ Not applicable
Indicate whether the financial statements at the beginning of the year were adjusted.
√ Yes □ No
Consolidated balance sheet:
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets:
Monetary assets 21,708,904,743.00 21,708,904,743.00
Settlement reserve
Loans to other banks and
financial institutions
Held-for-trading financial
5,300,045,879.00 5,300,045,879.00
assets
Derivative financial assets 453,578,245.00 453,578,245.00
Notes receivable 595,685,338.00 595,685,338.00
Accounts receivable 12,557,614,486.00 12,557,614,486.00
Receivables financing 2,176,743,646.00 2,176,743,646.00
Prepayments 1,355,653,454.00 1,355,653,454.00
40
TCL Technology Group Corporation First Quarterly Report 2021
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 2,793,640,153.00 2,793,640,153.00
Including: Interest
receivable
Dividends
receivable
Financial assets purchased
under resale agreements
Inventories 8,834,957,692.00 8,834,957,692.00
Contract assets 183,650,278.00 183,650,278.00
Assets held for sale 360,935,948.00 360,935,948.00
Current portion of
non-current assets
Other current assets 9,367,055,433.00 9,367,055,433.00
Total current assets 65,688,465,295.00 65,688,465,295.00
Non-current assets:
Loans and advances to
981,876,228.00 981,876,228.00
customers
Debt investments 119,349,896.00 119,349,896.00
Other debt investments 152,062,601.00 152,062,601.00
Long-term receivables 778,889,309.00 778,889,309.00
Long-term equity
24,047,036,004.00 24,047,036,004.00
investments
Investments in other equity
1,333,675,630.00 1,333,675,630.00
instruments
Other non-current financial
3,055,595,097.00 3,055,595,097.00
assets
Investment property 1,664,201,130.00 1,664,201,130.00
Fixed assets 92,829,901,894.00 91,515,595,994.00 -1,314,305,900.00
Construction in progress 31,508,310,783.00 31,508,310,783.00
Productive living assets
Oil and gas assets
Right-of-use assets 1,856,862,180.00 1,856,862,180.00
41
TCL Technology Group Corporation First Quarterly Report 2021
Intangible assets 10,054,045,032.00 10,054,045,032.00
Development costs 2,103,994,558.00 2,103,994,558.00
Goodwill 6,943,264,794.00 6,943,264,794.00
Long-term prepaid
2,536,670,015.00 2,099,368,428.00 -437,301,587.00
expense
Deferred income tax assets 1,578,087,991.00 1,578,087,991.00
Other non-current assets 12,532,852,630.00 12,532,852,630.00
Total non-current assets 192,219,813,592.00 192,325,068,285.00 105,254,693.00
Total assets 257,908,278,887.00 258,013,533,580.00 105,254,693.00
Current liabilities:
Short-term borrowings 12,263,713,979.00 12,263,713,979.00
Borrowings from the
469,834,291.00 469,834,291.00
central bank
Loans from other banks
and financial institutions
Held-for-trading financial
527,901,041.00 527,901,041.00
liabilities
Derivative financial
384,903,731.00 384,903,731.00
liabilities
Notes payable 4,725,611,752.00 4,725,611,752.00
Accounts payable 16,468,931,544.00 16,468,931,544.00
Advances from customers 78,597,459.00 78,597,459.00
Contract liabilities 2,004,004,181.00 2,004,004,181.00
Financial assets sold under
50,080,208.00 50,080,208.00
repurchase agreements
Customer deposits and
deposits from other banks 2,850,138,744.00 2,850,138,744.00
and financial institutions
Payables for acting trading
of securities
Payables for underwriting
of securities
Employee benefits payable 1,856,664,146.00 1,856,664,146.00
Taxes and levies payable 670,058,792.00 670,058,792.00
Other payables 14,869,433,359.00 14,869,433,359.00
Including: Interest
payable
42
TCL Technology Group Corporation First Quarterly Report 2021
Dividends
1,293,097.00 1,293,097.00
payable
Fees and commissions
payable
Reinsurance payables
Liabilities directly
associated with assets held
for sale
Current portion of
13,429,669,611.00 13,449,071,421.00 19,401,810.00
non-current liabilities
Other current liabilities 366,970,706.00 366,970,706.00
Total current liabilities 71,016,513,544.00 71,035,915,354.00 19,401,810.00
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 73,589,403,308.00 73,589,403,308.00
Bonds payable 18,040,772,610.00 18,040,772,610.00
Including: Preference
shares
Perpetual
bonds
Lease liabilities 912,550,980.00 912,550,980.00
Long-term payables 1,280,299,665.00 453,601,568.00 -826,698,097.00
Long-term employee
27,857,583.00 27,857,583.00
benefits payable
Provisions
Deferred income 1,509,867,357.00 1,509,867,357.00
Deferred income tax
2,386,496,733.00 2,386,496,733.00
liabilities
Other non-current
liabilities
Total non-current liabilities 96,834,697,256.00 96,920,550,139.00 85,852,883.00
Total liabilities 167,851,210,800.00 167,956,465,493.00 105,254,693.00
Owners’ equity:
Share capital 14,030,788,362.00 14,030,788,362.00
Other equity instruments 230,240,606.00 230,240,606.00
Including: Preference
shares
43
TCL Technology Group Corporation First Quarterly Report 2021
Perpetual
bonds
Capital reserves 5,442,384,608.00 5,442,384,608.00
Less: Treasury stock 1,913,028,859.00 1,913,028,859.00
Other comprehensive
-145,573,093.00 -145,573,093.00
income
Specific reserve 211,932.00 211,932.00
Surplus reserves 2,452,892,102.00 2,452,892,102.00
General reserve 385,534.00 385,534.00
Retained earnings 14,009,494,262.00 14,009,494,262.00
Total equity attributable to
owners of the Company as 34,107,795,454.00 34,107,795,454.00
the parent
Non-controlling interests 55,949,272,633.00 55,949,272,633.00
Total owners’ equity 90,057,068,087.00 90,057,068,087.00
Total liabilities and owners’
257,908,278,887.00 258,013,533,580.00 105,254,693.00
equity
Balance sheet of the Company as the parent:
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets:
Monetary assets 2,208,790,335.00 2,208,790,335.00
Held-for-trading financial
1,221,656,698.00 1,221,656,698.00
assets
Derivative financial assets
Notes receivable 6,000,000.00 6,000,000.00
Accounts receivable 175,787,300.00 175,787,300.00
Receivables financing
Prepayments 97,962,630.00 97,962,630.00
Other receivables 25,555,923,615.00 25,555,923,615.00
Including: Interest
receivable
Dividends
receivable
Inventories 5,997,388.00 5,997,388.00
44
TCL Technology Group Corporation First Quarterly Report 2021
Contract assets
Assets held for sale
Current portion of
non-current assets
Other current assets 2,332,646.00 2,332,646.00
Total current assets 29,274,450,612.00 29,274,450,612.00
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity
65,094,459,376.00 65,094,459,376.00
investments
Investments in other equity
15,000,000.00 15,000,000.00
instruments
Other non-current financial
1,145,021,734.00 1,145,021,734.00
assets
Investment property 88,686,986.00 88,686,986.00
Fixed assets 46,011,508.00 46,011,508.00
Construction in progress 11,440,567.00 11,440,567.00
Productive living assets
Oil and gas assets
Right-of-use assets 467,914,882.00 467,914,882.00
Intangible assets 42,310,680.00 42,310,680.00
Development costs
Goodwill
Long-term prepaid
469,424,698.00 32,123,111.00 -437,301,587.00
expense
Deferred income tax assets 6,709.00 6,709.00
Other non-current assets
Total non-current assets 66,912,362,258.00 66,942,975,553.00 30,613,295.00
Total assets 96,186,812,870.00 96,217,426,165.00 30,613,295.00
Current liabilities:
Short-term borrowings 3,670,230,653.00 3,670,230,653.00
Held-for-trading financial
liabilities
Derivative financial 16,513,000.00 16,513,000.00
45
TCL Technology Group Corporation First Quarterly Report 2021
liabilities
Notes payable
Accounts payable 129,703,459.00 129,703,459.00
Advances from customers
Contract liabilities 1,871,994.00 1,871,994.00
Employee benefits payable 220,510,234.00 220,510,234.00
Taxes and levies payable 26,070,786.00 26,070,786.00
Other payables 26,377,023,713.00 26,377,023,713.00
Including: Interest
payable
Dividends
1,292,429.00 1,292,429.00
payable
Liabilities directly
associated with assets held
for sale
Current portion of
6,141,029,463.00 6,150,305,562.00 9,276,099.00
non-current liabilities
Other current liabilities 315,970.00 315,970.00
Total current liabilities 36,583,269,272.00 36,592,545,371.00 9,276,099.00
Non-current liabilities:
Long-term borrowings 12,087,500,000.00 12,087,500,000.00
Bonds payable 14,092,345,084.00 14,092,345,084.00
Including: Preference
shares
Perpetual
bonds
Lease liabilities 21,337,196.00 21,337,196.00
Long-term payables
Long-term employee
21,991,372.00 21,991,372.00
benefits payable
Provisions
Deferred income 42,651,822.00 42,651,822.00
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 26,244,488,278.00 26,265,825,474.00 21,337,196.00
46
TCL Technology Group Corporation First Quarterly Report 2021
Total liabilities 62,827,757,550.00 62,858,370,845.00 30,613,295.00
Owners’ equity:
Share capital 14,030,788,362.00 14,030,788,362.00
Other equity instruments 230,240,606.00 230,240,606.00
Including: Preference
shares
Perpetual
bonds
Capital reserves 9,846,835,060.00 9,846,835,060.00
Less: Treasury stock 1,913,028,859.00 1,913,028,859.00
Other comprehensive
141,998,219.00 141,998,219.00
income
Specific reserve
Surplus reserves 2,250,827,663.00 2,250,827,663.00
Retained earnings 8,771,394,269.00 8,771,394,269.00
Total owners’ equity 33,359,055,320.00 33,359,055,320.00
Total liabilities and owners’
96,186,812,870.00 96,217,426,165.00 30,613,295.00
equity
Notes to the adjustments:
The Company has adopted since 1 January 2021 the Accounting Standard No. 21 for Business Enterprises-Leases revised by the
Ministry of Finance in 2018.
The Company adopted a simplified method of retrospective restatement. As required by the new lease standard, relevant financial
statement items at the beginning of the period when the new lease standard was first adopted (1 January 2021) were adjusted
according to the cumulative effects arising from the first adoption of the new lease standard, and data of the comparable periods were
not adjusted.
The effects of the adoption of the new lease standard on the presentation of the balance sheet items as at the beginning of the current
period are as follows:
Item 31 December 2020 Adjustment 1 January 2021
Fixed assets 92,829,901,894 -1,314,305,900 91,515,595,994
Right-of-use assets 1,856,862,180 1,856,862,180
Long-term prepaid expense 2,536,670,015 -437,301,587 2,099,368,428
Current portion of non-current
13,429,669,611 19,401,810 13,449,071,421
liabilities
Lease liabilities 912,550,980 912,550,980
Long-term payables 1,280,299,665 -826,698,097 453,601,568
47
TCL Technology Group Corporation First Quarterly Report 2021
2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First Execution in 2021
of the New Accounting Standard Governing Leases
□ Applicable √ Not applicable
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.
48
