TCL Technology Group Corporation First Quarter 2022 Report
TCL 科技集团股份有限公司
TCL Technology Group Corporation
First Quarter 2022 Report
April 27, 2022
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TCL Technology Group Corporation First Quarter 2022 Report
Table of Contents
Section I Important Notice ................................................................................................................... 3
Section II Key Financial Information................................................................................................... 4
Section III Management Discussion and Analysis ............................................................................... 7
Section IV Shareholder Information .................................................................................................. 10
Section V Other Important Matters .................................................................................................... 12
Section VI Quarterly Financial Statements ........................................................................................ 12
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TCL Technology Group Corporation First Quarter 2022 Report
Section I Important Notice
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 First Quarter 2022 Report, and shall be jointly and severally liable for any misrepresentations,
misleading statements or material omissions therein.
Mr. Li Dongsheng, the Chairman of the Board, Ms. Li Jian, the person-in-charge of
financial affairs (Chief Financial Officer), and Mr. Xi Wenbo, the person-in-charge of the
financial department, hereby guarantee that the financial statements carried in this First Quarter
2022 Report are factual, accurate and complete.
All the Company’s directors attended the Board meeting for the review of this Report.
This report has not been audited. This Report has been prepared in both Chinese and English.
Should there be any discrepancies or misunderstandings between the two versions, the Chinese
version shall prevail.
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TCL Technology Group Corporation First Quarter 2022 Report
Section II Key Financial Information
I. Key financial information and financial indicators
Indicate whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reasons for retroactive adjustment or restatement
Change of accounting policy
Q1 2021 YoY change
Q1 2022
Before adjustment After adjustment After adjustment
Revenue (RMB) 40,566,851,319 32,143,561,563 32,244,933,306 25.81%
Net profit attributable to the company’s
1,352,533,125 2,403,729,935 2,410,539,527 -43.89%
shareholders (RMB)
Net profits attributable to the company’s
shareholders before non-recurring gains 611,554,193 2,123,056,041 2,129,865,633 -71.29%
and losses (RMB)
Net cash generated from operating
3,863,953,881 8,003,201,979 8,003,201,979 -51.72%
activities (RMB)
Basic earnings per share (RMB/share) 0.1008 0.1781 0.1786 -43.56%
Diluted earnings per share (RMB/share) 0.0993 0.1713 0.1718 -42.20%
Weighted average return on equity (%) 3.16% 7.07% 7.09% -3.93%
December 31, 2021 Change
March 31, 2022
Before adjustment After adjustment After adjustment
Total assets (RMB) 316,518,995,777 308,733,133,305 308,987,970,915 2.44%
Owner’s equity attributable to the
43,504,943,301 43,034,234,611 43,103,580,799 0.93%
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
14,030,642,421
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
0.0964
total share capital above (RMB/share)
II. Non-recurring profit and loss items and amount
√ Applicable □ Not applicable
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TCL Technology Group Corporation First Quarter 2022 Report
Unit: RMB
Amount for the current
Item Note
reporting period
Gains and losses on disposal of non-current assets (inclusive of
-2,868,821 Not applicable
impairment allowance write-offs)
Government subsidies charged to current profits and loss (except
for government subsidies closely related to the Company’s
normal business which comply with national policies and 277,162,460 Not applicable
regulations and are enjoyed on an ongoing basis according to
certain standard quotas or quantities)
The profits and losses generated from changes in fair value
arising from holding marketable financial assets and marketable
financial liabilities, as well as the investment-related income from
the disposal of marketable financial assets, marketable financial -3,059,068 Not applicable
liabilities and available-for-sale financial assets, except for the
effective hedging business related to the Company’s normal
business operation.
Non-operating income and expenses other than the above 568,266,489 Not applicable
Less: Corporate income tax 29,836,572 Not applicable
Non-controlling interests (net of tax) 68,685,556 Not applicable
Total 740,978,932 --
Details of other profit and loss items that meet the definition of non-recurring profits and losses:
□Applicable √ Not applicable
The Company has no other profit and loss items that meet the definition of non-recurring profits and losses.
Note on non-recurring profit and loss items that which is listed in the Explanatory Announcement No. 1 on Information Disclosure
for Companies Offering Their Securities to the Public Non-Recurring Gain/Loss shall be used to define Recurring Gain/Loss items
□Applicable √ Not applicable
The Company does not have any non-recurring profit and loss items listed in the Explanatory Announcement on Information
Disclosure of Companies Offering Securities to the Public No. 1 Non-recurring Profits and Losses that are defined as recurring profit
and loss items.
III. Changes of main accounting data and financial indicators and reasons therefor
√ Applicable □ Not applicable
Unit: RMB
Balance Sheet Ending balance Beginning Increase / Reason for change
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TCL Technology Group Corporation First Quarter 2022 Report
items balance decrease ratio
(%)
Prepayments Mainly due to an expansion of production scale
3,481,851,278 2,306,325,116 51.0
and an increase in prepayments
Short-term Mainly due to an increase in financing scale
14,457,812,778 9,341,426,543 54.8
borrowings
Borrowings from Mainly due to a decrease in borrowings from the
931,249,178 1,437,062,154 -35.2
the Central Bank Central Bank by the Finance Company
Notes payable Mainly due to an increase in scale and an
5,158,493,935 3,275,295,915 57.5
increase in operating notes payable
Contract liabilities 3,878,494,022 2,593,882,004 49.5 Mainly due to an increase in advance receipts
Increase /
Income January - January -
decrease ratio Reason for change
Statement items March 2022 March 2021
(%)
Cost of sales Mainly due to the expansion of operating
35,594,751,040 25,383,357,989 40.2
revenue scale and the merger of Moka
R&D expenses 2,042,751,101 1,540,240,528 32.6 Mainly due to the increase of R&D investment
Financial expenses 991,083,508 740,010,321 33.9 Mainly due to an increase in exchange losses
Increase /
Cash Flow January - January -
decrease ratio Reason for change
Statement items March 2022 March 2021
(%)
Net cash generated
Mainly due to an increase in payments for
from operating 3,863,953,881 8,003,201,979 -51.7
commodities and services
activities
Net cash generated Mainly due to the absorbing of minority
from financing 4,613,471,688 2,657,860,614 73.6 shareholders' investments and the issuing of
activities bonds
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TCL Technology Group Corporation First Quarter 2022 Report
Section III Management Discussion and Analysis
This year, the international situation has become increasingly complicated and increasingly
severe; geopolitical conflicts have triggered an increase in commodity prices and sparked the
expectation of inflation; the spread of the pandemic has weakened downstream production and
consumption links; and the global economy is facing great challenges. Faced with business pressure,
the Company adheres to the strategic policy of “Striving to Ramp Up, Catching Up and Surpassing,
Pressing on Toward Global Leadership” to promote the high-quality development of the enterprise.
The Company focuses on the development of core high-tech industries of semi-conductor
displays and new energy photovoltaic and semi-conductor materials, implements the business
strategy of “Improving Business Quality and Efficiency, Strengthening Advantages and Making up
for Disadvantages, Innovation-driven Development and Accelerating Global Layout”, sticks to the
business bottom line of extreme cost efficiency, and strengthens risk control capabilities and
adaptability. In the first quarter, the Company achieved an operating revenue of RMB40.57
billion, a year-on-year increase of 25.8%; it achieved a net profit of RMB2.35 billion, a
year-on-year decrease of 27.5% but a month-on-month increase of 29.5%; its net profit
attributable to shareholders of the listed company was RMB1.35 billion, a year-on-year
decrease of 43.9% but a month-on-month increase of 41%; its R&D investment was RMB2.25
billion, a year-on-year increase of 10.1%.
Impacted by factors such as the weakening of downstream demand and short-term stagnation of
the supply chain, the prosperity of the semi-conductor display industry fell to the bottom of its field,
the prices of large-scale products decreased significantly compared with the same period last year,
and industry profitability came under pressure. TCL CSOT continued to expand its economy of
scale, improve the business structure, and optimize the composition of products and customers,
meeting business challenges with extreme management efficiency. In the first quarter of 2022, the
sales area of TCL CSOT products increased by 34.7% year-on-year to 11.241 million square
meters; it achieved an operating revenue of RMB20.04 billion from the semi-conductor
display business, a year-on-year increase of 15.3%, and earned a net profit of RMB340 million,
a year-on-year decrease of 85.8%.
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TCL Technology Group Corporation First Quarter 2022 Report
In the field of large-scale products business, Factory t7 ramped up as scheduled, and the market
share of the Company in the field of large-scale products further improved: it ranked second in the
world in terms of market share for TV panels, and the first in the world in terms of market share for
8K and 120Hz high-end TV panels; it ranked first in the world in terms of market share for
interactive whiteboards, and maintained rapid growth in field of commercial displays such as digital
signs and splicing screens; it maintained its ranking as first in the world in terms of e-sports
displays, and the revenue share from non-TV business increased to 24%. In the field of small and
medium-sized products business, Factory t3, the factory with the largest single production capacity
of LTPSs in the world, is actively transforming its products such as notebook computers, tablets and
onboard products to optimize the product portfolio; LTPS tablets ranked first in the world, notebook
computers ranked second in the world, and revenue from LTPS business other than mobile phone
business reached 54%; the Factory t3 expansion project is progressing in an accelerated manner,
and the overall capacity of LTPSs will achieve a scale and comprehensive competitiveness that
ranks first overall; the production capacity for Phase II and Phase III of the Factory t4 production
line are under construction as scheduled, and are still facing business pressure during the ramp -up
period, but the development of new technologies and products such as flexible OLED folding,
under-screen cameras and LTPO is progressing smoothly, and the customer structure is gradually
being optimized, laying the foundation for subsequent business improvement; Factory t9,
positioned for the layout of new businesses such as medium-sized IT and onboard products, is
accelerating in its construction and is expected to achieve mass production in 2023.
The business of new energy photovoltaic and semi-conductor materials continued to grow
rapidly, with the proportion of its performance contribution increasing significantly. During
the reporting period, TCL Zhonghuan achieved an operating revenue of RMB13.37 billion, a
year-on-year increase of 79.1%, and earned a net profit of RMB1.46 billion, a year-on-year increase
of 96.2%.
Benefiting from the growth of domestic distributed installed capacity and the demand for
accelerated transformation of overseas energy, there was continued demand in the new energy
photovoltaic industry; however, uncertainties such as industrial chain coordination and logistics
exacerbated business challenges due to the impact of the epidemic. The Company gives full play to
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TCL Technology Group Corporation First Quarter 2022 Report
the comprehensive advantages of G12 advanced production capacity, laminated tile patent barrier
and Industry 4.0 flexible manufacturing, to maintain industry leadership in advanced production
capacity scale, technology and production efficiency, as well as continue improving market share.
As of the end of the first quarter of 2022, the production capacity of single crystals had increased to
95GW, of which G12 production capacity accounted for 72%, ranking first in the global market.
Benefiting from the rapid growth of 5G and automotive electronics, the speed of expansion of
wafer factories has driven the strong demand for semiconductor materials. Through the dual-path
development of 'characteristic process + advanced manufacturing process', during the reporting
period, the production capacity of 8-12 inch polished wafers and epitaxial wafers increased rapidly,
the product and customer structure was upgraded rapidly, the product sales scale increased by 54%
year-on-year, and the production capacity of 8-inch products reached 800,000 pieces per month,
having formed a comprehensive product capacity and market competitiveness comparable with
international first-line manufacturers, and realized the full coverage of domestic customers; the
production capacity of 12-inch products reached 170,000 pieces per month, and accelerated
catching up in terms of advanced process products. At present, 28nm and above seri es products
have entered the stage of mass production, having signed into long-term strategic cooperation
agreements with a number of front-line customers at home and abroad.
Looking ahead to the whole year, the world development pattern is complex and cha ngeable,
and global economic development faces great challenges. In response to the changing situation, the
Company will adhere to the spirit of “Striving to Ramp Up, Catching Up and Surpassing”, respond
to the uncertainty from the surrounding environment with business certainty, and give full play to
the advantages of efficiency and technological innovation; the Company will accelerate the
upgrade from being a leader in large-scale displays to being a leader in full-scale products in
terms of the field of semi-conductor displays, achieve global leadership in comprehensive
competitiveness in the field of new energy photovoltaic materials, give play to industrial
synergy in the field of semiconductor materials, and build a leading global technology
industry group.
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TCL Technology Group Corporation First Quarter 2022 Report
Section IV Shareholder Information
I. Table of the total number of shareholders holding common stocks, number of shareholders holding
preferred stocks with resumed voting rights, and shareholding of the top ten shareholders
Unit: share
Total number of preference
Total number of ordinary shareholders with resumed
773,077 0
shareholdersat the period-end voting rights at the period-end
(if any)
Shareholding of the top 10 shareholders
Name of Nature of Shareholding Number of shares Restricted shares Shares in pledge, marked or frozen
Shareholder shareholder ratio (%) held held Share Status Shares
Li Dongsheng Domestic natural Pledge 164,338,800
and his person / Domestic
8.26 1,158,599,393 610,181,602
acting-in-concert non-state-owned Pledge 215,000,000
party legal person
Huizhou
State-owned legal
Investment 5.30 743,139,840 0
person
Holding Co., Ltd.
Wuhan Optics
Valley Industrial State-owned legal
3.98 558,552,396 0 Pledge 255,754,475
Investment Co., person
Ltd.
Hong Kong
Securities Foreign legal
2.71 380,385,171 0
Clearing person
Company Ltd.
China Securities
Domestic
Finance
non-state-owned 2.66 373,231,553 0
Corporation
legal person
Limited
Tibet Tianfeng
Domestic
Enterprise
non-state-owned 1.54 215,582,406 0
Management Co.,
legal person
Ltd.
TCL Technology Fund, wealth
Group management 0.81 113,143,154 0
Corporation - product, etc.
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TCL Technology Group Corporation First Quarter 2022 Report
2021 to 2023
Employee Stock
Ownership Plan
(Phase I)
Sinatay Life
Insurance Co., Fund, wealth
Ltd. - management 0.74 104,190,172 0
Conventional product, etc.
Product
ICBC Credit
Suisse Fund -
Agricultural Bank
Fund, wealth
of China - ICBC
management 0.53 74,761,500 0
Credit Suisse
product, etc.
China Securities
Financial Asset
Management P lan
Southern Asset
Management -
Agricultural Bank
Fund, wealth
of China -
management 0.53 74,761,500 0
Southern China
product, etc.
Securities
Financial Asset
Management P lan
Top 10 unrestricted ordinary shareholders
Shares by class
Name of Shareholder Number of unrestricted ordinary shares held
Shares by class Shares
Huizhou Investment Holding Co., RMB-denominate
743,139,840 743,139,840
Ltd. d ordinary stock
Wuhan Optics Valley Industrial RMB-denominate
558,552,396 558,552,396
Investment Co., Ltd. d ordinary stock
Li Dongsheng and his RMB-denominate
548,417,791 548,417,791
acting-in-concert party d ordinary stock
Hong Kong Securities Clearing RMB-denominate
380,385,171 380,385,171
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
215,582,406 215,582,406
Management Co., Ltd. d ordinary stock
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TCL Technology Group Corporation First Quarter 2022 Report
TCL Technology Group Corporation
RMB-denominate
- 2021 to 2023 Employee Stock 113,143,154 113,143,154
d ordinary stock
Ownership Plan (Phase I)
Sinatay Life Insurance Co., Ltd. - RMB-denominate
104,190,172 104,190,172
Conventional Product d ordinary stock
ICBC Credit Suisse Fund -
Agricultural Bank of China - ICBC RMB-denominate
74,761,500 74,761,500
Credit Suisse China Securities d ordinary stock
Financial Asset Management Plan
Southern Asset Management -
Agricultural Bank of China - RMB-denominate
74,761,500 74,761,500
Southern China Securities Financial d ordinary stock
Asset Management Plan
Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited
Note on the above shareholders’ Partnership) became persons acting in concert by signing the Agreement on Concerted
associations or concerted actions Action, holding 1,158,599,393 shares in total and becoming the largest
shareholder of the Company.
Note on the top 10 shareholders' Tibet Tianfeng Enterprise Management Co., Ltd., a shareholder of the Company, holds
participation in securities margin 123,187,314 shares through the general securities account, and holds 92,395,092 shares
trading (if any) through the credit securities account, with a total of 215,582,406 shares actually held.
Special account for share The top ten shareholders of the Company include the "The Securities Account of TCL
repurchases (if any) among the top Technology Group Corporation for Repurchases". As of the end of the reporting period, there
10 shareholders were 327,728,516 shares held in the repurchase account.
II.Total number of shareholders holding preferred stocks and shareholding of the top 10 thereof
□Applicable √ Not applicable
Section V Other Important Matters
□Applicable √ Not applicable
Section VI Quarterly Financial Statements
I. Financial statements
1. Consolidated Balance Sheet
Prepared by: TCL Technology Group Corporation
Unit: RMB
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TCL Technology Group Corporation First Quarter 2022 Report
Item March 31, 2022 December 31, 2021
Current assets:
Monetary assets 28,552,470,300 31,393,692,485
Settlement reserves
Funds on loan
Held-for-trading financial assets 8,069,926,732 7,601,255,964
Derivative financial assets 322,678,427 70,928,566
Notes receivable 727,550,494 776,201,686
Accounts receivable 18,500,042,137 18,238,782,247
Receivables financing 2,490,926,634 2,217,638,736
Prepayments 3,481,851,278 2,306,325,116
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract provisions
receivable
Other receivables 5,061,976,198 4,458,621,235
Of which: Interests receivable - -
Dividends receivable - -
Financial assets purchased under
- -
sale-back agreement
Inventories 15,655,222,396 14,083,356,918
Contract assets 251,695,386 233,528,786
Held-for-sale assets - -
Non-current assets maturing within
- -
one year
Other current assets 6,067,310,872 5,802,960,362
Total current assets 89,181,650,854 87,183,292,101
Non-current assets:
Loans and advances to customers - -
Debt investments 20,005,392 -
Other debt investments - -
Long-term receivables 636,980,360 651,117,971
Long-term equity investments 26,312,482,901 25,640,578,245
Investments in other equity
907,425,159 927,319,447
instruments
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TCL Technology Group Corporation First Quarter 2022 Report
Other non-current financial assets 2,544,518,385 2,704,037,825
Investment property 887,658,397 761,902,236
Fixed assets 113,933,544,407 113,579,297,130
Construction in progress 38,973,986,371 36,965,885,393
Productive biological assets
Oil and gas assets
Right-of-use assets 2,279,108,039 2,426,911,208
Intangible assets 15,053,564,730 13,982,647,108
Development costs 2,531,852,461 2,508,418,669
Goodwill 9,158,841,295 9,158,841,295
Long-term deferred expenses 2,639,976,273 2,640,530,156
Deferred income tax assets 2,186,797,451 2,153,345,865
Other non-current assets 9,270,603,302 7,449,008,656
Total non-current assets 227,337,344,923 221,549,841,204
Total assets 316,518,995,777 308,733,133,305
Current liabilities:
Short-term borrowings 14,457,812,778 9,341,426,543
Borrowings from the Central Bank 931,249,178 1,437,062,154
Borrowed funds 490,296,314 -
Held-for-trading financial
1,107,531,562 925,035,483
liabilities
Derivative financial liabilities 150,126,418 22,204,824
Notes payable 5,158,493,935 3,275,295,915
Accounts payable 22,333,315,646 24,297,859,803
Advances from customers 4,720,742 5,794,242
Contract liabilities 3,878,494,022 2,593,882,004
Financial assets sold under
- -
repurchase agreements
Customer deposits and deposits
from other banks and financial 1,245,502,887 666,056,133
institutions
Funds for brokering securities
transaction
Funds for brokering securities
underwriting
Employee compensation payable 2,694,460,641 3,311,933,217
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TCL Technology Group Corporation First Quarter 2022 Report
Taxes and levies payable 1,074,816,975 1,238,849,334
Other payables 19,002,048,259 19,386,888,623
Of which: Interests payable - -
Dividends payable 1,258,937,007 34,607,012
Service charges and commissions
payable
Reinsurance accounts payable
Held-for-sale liabilities - -
Current portion of non-current
14,965,660,824 13,006,764,842
liabilities due within a one-year period
Other current liabilities 1,335,041,800 1,269,886,904
Total current liabilities 88,829,571,981 80,778,940,021
Non-current liabilities:
Insurance contract provisions
Long-term borrowings 86,196,079,447 87,279,081,955
Bonds payable 12,057,598,825 13,066,281,402
Of which: Preferred stocks
Perpetual bonds
Lease liabilities 1,084,941,574 1,102,071,813
Long-term payables 649,802,775 671,344,466
Long-term employee
686,643,663 669,931,395
compensation payable
Estimated liabilities
Deferred income 2,397,904,434 2,361,205,043
Deferred income tax liabilities 3,097,626,266 3,158,985,929
Other non-current liabilities - -
Total non-current liabilities 106,170,596,984 108,308,902,003
Total liabilities 195,000,168,965 189,087,842,024
Owner's equity:
Share capital 14,030,642,421 14,030,642,421
Other equity instruments 200,334,057 200,334,057
Of which: Preferred stocks
Perpetual bonds
Capital reserves 5,238,082,152 6,079,267,240
Less: Treasury stock 2,054,946,580 1,885,556,526
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TCL Technology Group Corporation First Quarter 2022 Report
Other comprehensive income -351,078,842 -409,447,681
Specific reserves 2,584,804 1,549,125
Surplus reserves 2,550,172,644 2,550,172,644
General risk reserve 8,933,515 8,933,515
Retained earnings 23,880,219,130 22,458,339,816
Total equity attributable to the owners
43,504,943,301 43,034,234,611
of the parent company
Non-controlling interests 78,013,883,511 76,611,056,670
Total owner's equity 121,518,826,812 119,645,291,281
Total liabilities and owner's equity 316,518,995,777 308,733,133,305
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li Jian
Person-in-charge of the financial department: Xi Wenbo
2. Consolidated Income Statement
Unit: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
1. Total revenue 40,597,535,003 32,173,945,858
Of which: Revenue 40,566,851,319 32,143,561,563
Interest income 30,683,684 30,384,295
Earned premiums
Service charge and commission income -
II. Total costs 40,004,606,380 28,868,451,833
Of which: Cost of sales 35,594,751,040 25,383,357,989
Interest expenditures 9,336,013 4,754,960
Service charge and commission
-
expenditures
Surrender value
Net claims payment
Net insurance liability provisions accrued
Policy dividend expenditures
Reinsurance expenses
Taxes and levies 137,883,718 106,853,638
Selling expenses 471,927,285 330,230,062
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TCL Technology Group Corporation First Quarter 2022 Report
Administrative expense 756,873,715 763,004,335
R&D expenses 2,042,751,101 1,540,240,528
Financial expenses 991,083,508 740,010,321
Including: Interest expenses 999,858,819 966,852,847
Interest income 176,470,746 103,593,808
Plus: Other income 976,625,863 343,452,869
Return on investment (losses are indicated by
661,221,895 493,372,758
"-")
Including: Share of profit or loss of joint
804,480,527 149,003,152
ventures and associates
Income from derecognition of financial
assets measured at amortised costs
Exchange gains (losses are indicated by "-") 14,068,652 -14,384
Gain on net exposure hedging (losses are
- -
indicated by "-")
Gain on changes in fair value (losses are
-136,683,550 -292,943,771
indicated by "-")
Credit impairment losses (losses are indicated
5,829,571 -31,736,912
by "-")
Asset impairment losses (losses are indicated
-246,385,486 -301,118,508
by "-")
Income from asset disposal (losses are
-4,567,331 159,503
indicated by "-")
III. Operating profit (losses are indicated by "-") 1,863,038,237 3,516,665,580
Plus: Non-operating income 581,485,774 210,942,953
Less: Non-operating expenses 8,873,689 4,694,406
IV. Gross profits (total losses are indicated by "-") 2,435,650,322 3,722,914,127
Less: Income tax expenses 89,681,571 487,257,128
V. Net profits (net losses are indicated by "-") 2,345,968,751 3,235,656,999
(1) Classification by business continuity
1. Net profits from continuing operations (net
2,345,968,751 3,235,656,999
losses are indicated by "-")
2. Net profits from discontinued operations (net
- -
losses are indicated by "-")
(2) Classification by ownership
1. Net profits attributable to the owners of the
1,352,533,125 2,403,729,935
parent company
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TCL Technology Group Corporation First Quarter 2022 Report
2. Net profit attributable to non-controlling
993,435,626 831,927,064
interests
VI. Other comprehensive income, net of tax 107,592,545 -180,087,886
Other comprehensive income attributable to the
58,368,839 -151,737,311
owners of the parent company, net of tax
(1) Other comprehensive income that will not be
-18,244,588 -65,621,285
reclassified to profit or loss
1. Changes arising from remeasurement of
defined benefit plans
2. Other comprehensive income that cannot
be subsequently reclassified into profits and losses - -
under the equity method
3. Changes in fair value of other equity
-18,244,588 -65,621,285
instrument investments
4. Changes in fair value of the enterprise's
own credit risks
5. Others
(2) Other comprehensive income that may
76,613,427 -86,116,026
subsequently reclassified into profit and loss
1. Other comprehensive income that can be
transferred to profits and losses under the equity 129,581 11,868
method
2. Changes in fair value of other debt
-
investments
3. Amount of financial assets reclassified
into other comprehensive income
4. Provisions for credit impairment of other
debt investments
5. Reserves for cash flow hedging 27,994,488 -75,069,636
6. Conversion differences in foreign
48,489,358 -11,058,258
currency financial statements
7. Others -
Other net comprehensive income attributable to
49,223,706 -28,350,575
minority interests, net of tax
VII. Total comprehensive income 2,453,561,296 3,055,569,113
Total comprehensive income attributable to the
1,410,901,964 2,251,992,624
owners of the parent company
Total comprehensive income attributable to 1,042,659,332 803,576,489
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TCL Technology Group Corporation First Quarter 2022 Report
non-controlling interests
VIII. Earnings per share:
(1) Basic earnings per share 0.1008 0.1781
(2) Diluted earnings per share 0.0993 0.1713
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li Jian
Person-in-charge of the financial department: Xi Wenbo
3. Consolidated Cash Flow Statement
Unit: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
I. Cash flow generated from operating activities:
Proceeds from sale of commodities and rendering
32,479,892,087 27,034,723,608
of services
Net increase of deposits from customers and
579,446,754 733,511,000
banks and other financial institutions
Net increase of borrowings from the Central Bank -505,812,976 198,608,011
Net increase in loans from other financial
490,296,314
institutions
Cash received from collecting premiums for
original insurance contracts
Net cash received for reinsurance business
Net increase of deposits and investments of
policyholders
Interest, fees and commissions received 30,683,684 30,384,295
Net increase of borrowed funds from banks and
other financial institutions
Net increase of repurchase business funds
Net cash received from brokering securities
transaction
Tax and levy rebates 1,801,281,700 1,394,337,857
Cash generated from other operating activities 1,752,565,605 1,171,334,830
Sub-total of cash generated from operating activities 36,628,353,168 30,562,899,601
Payments for commodities and services 25,746,314,393 17,145,704,624
Net increase of loans and advances to customers -291,363,670 1,013,946,603
Net increase of deposits with the Central Bank, 202,991,230 68,720,062
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TCL Technology Group Corporation First Quarter 2022 Report
banks and other financial institutions
Cash paid for claims for original insurance
contracts
Net increase of funds on loan
Cash paid for interest, service charges and
commissions
Cash paid for policy dividends
Cash paid to and for employees 3,158,375,360 2,018,238,456
Taxes and levies paid 806,447,479 582,590,307
Cash used in other operating activities 3,141,634,495 1,730,497,570
Sub-total of cash used in operating activities 32,764,399,287 22,559,697,622
Net cash generated from operating activities 3,863,953,881 8,003,201,979
II. Cash flow generated from investing activities:
Proceeds from disinvestments 9,653,344,653 6,373,430,027
Proceeds from return on investments 239,383,580 125,899,457
Net proceeds from disposal of fixed assets,
3,422,583 18,531,879
intangible assets and other long-term assets
Net proceeds from disposal of subsidiaries and
other business units
Cash generated from other investing activities 50,123,919 6,368,912
Sub-total of cash generated from investment activities 9,946,274,735 6,524,230,275
Payments for the acquisition and construction of
fixed assets, intangible assets and other long-term 10,941,138,741 7,543,249,643
assets
Payments for investments 11,495,911,476 9,287,433,997
Net increase of pledged loans
Net payments for acquiring subsidiaries and other
business units
Cash used in other investing activities 100,914,607 50,133,413
Subtotal of cash used in investing activities 22,537,964,824 16,880,817,053
Net cash used in investing activities -12,591,690,089 -10,356,586,778
III. Cash flow generated from financing activities:
Capital contributions received 2,571,180,000 94,900,000
Including: Capital contributions by
2,571,180,000 94,900,000
non-controlling interests to subsidiaries
Borrowings raised 18,821,994,041 16,219,912,408
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TCL Technology Group Corporation First Quarter 2022 Report
Cash generated from other financing activities 151,949,228
Sub-total of cash generated from financing activities 21,393,174,041 16,466,761,636
Cash paid for debt repayment 13,689,241,447 10,706,121,604
Cash paid for distribution of dividends and profits
1,111,330,624 1,209,556,374
or payment of interests
Including: Dividends paid by subsidiaries to
19,790,027 23,055,560
non-controlling interests
Cash used in other financing activities 1,979,130,282 1,893,223,044
Subtotal of cash used in financing activities 16,779,702,353 13,808,901,022
Net cash generated from financing activities 4,613,471,688 2,657,860,614
IV. Effect of exchange rate changes on cash and cash
-27,326,776 57,381,895
equivalents
V. Net increase of cash and cash equivalents -4,141,591,296 361,857,710
Plus: Beginning balance of cash and cash
30,081,704,864 18,208,416,780
equivalents
VI. Closing balance of cash and cash equivalents 25,940,113,568 18,570,274,490
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li Jian
Person-in-charge of the financial department: Xi Wenbo
II. Notes on adjustments in the financial statements
On December 31, 2021, the Ministry of Finance issued the Notice on the Issuance of ‘Interpretation of Accounting Standards
for Business Enterprises No. 15’ (CK [2021] No. 35) (hereinafter referred to as “Interpretation No. 15”), which defines the
accounting handling of the external sales of products or by-products produced before the fixed assets reach the expected serviceable
state or during the R&D process. In accordance with the requirements of Interpretation No. 15, the company has adopted new
accounting standards as of January 1, 2022, and retroactively adjusted the profit and loss realized from the external sales of trial
products produced in previous periods. The impact of the adoption of the new standards on relevant items is as follows.
1. Adjustments to the beginning balances of the relevant items of the financial statements due to the adoption of the new
Accounting Standards initially implemented beginning in 2022
Consolidated Balance Sheet
Unit: RMB
Item December 31, 2021 January 1, 2022 Amount of adjustment
Current assets:
Monetary assets 31,393,692,485 31,393,692,485
Settlement reserves
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TCL Technology Group Corporation First Quarter 2022 Report
Funds on loan
Held-for-trading financial assets 7,601,255,964 7,601,255,964
Derivative financial assets 70,928,566 70,928,566
Notes receivable 776,201,686 776,201,686
Accounts receivable 18,238,782,247 18,238,782,247
Receivables financing 2,217,638,736 2,217,638,736
Prepayments 2,306,325,116 2,306,325,116
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract provisions
receivable
Other receivables 4,458,621,235 4,458,621,235
Of which: Interests receivable
Dividends receivable
Financial assets purchased under
sale-back agreement
Inventories 14,083,356,918 14,083,356,918
Contract assets 233,528,786 233,528,786
Held-for-sale assets
Non-current assets maturing
within one year
Other current assets 5,802,960,362 5,802,960,362
Total current assets 87,183,292,101 87,183,292,101 -
Non-current assets:
Loans and advances to
customers
Debt investments
Other debt investments
Long-term receivables 651,117,971 651,117,971
Long-term equity investments 25,640,578,245 25,640,578,245
Investments in other equity
927,319,447 927,319,447
instruments
Other non-current financial
2,704,037,825 2,704,037,825
assets
Investment property 761,902,236 761,902,236
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TCL Technology Group Corporation First Quarter 2022 Report
Fixed assets 113,579,297,130 113,723,758,876 144,461,746
Construction in progress 36,965,885,393 37,029,504,222 63,618,829
Productive biological assets
Oil and gas assets
Right-of-use assets 2,426,911,208 2,426,911,208
Intangible assets 13,982,647,108 14,000,546,363 17,899,255
Development costs 2,508,418,669 2,540,199,289 31,780,620
Goodwill 9,158,841,295 9,158,841,295
Long-term deferred expenses 2,640,530,156 2,640,530,156
Deferred income tax assets 2,153,345,865 2,150,423,025 -2,922,840
Other non-current assets 7,449,008,656 7,449,008,656
Total non-current assets 221,549,841,204 221,804,678,814 254,837,610
Total assets 308,733,133,305 308,987,970,915 254,837,610
Current liabilities:
Short-term borrowings 9,341,426,543 9,341,426,543
Borrowings from the Central
1,437,062,154 1,437,062,154
Bank
Borrowed funds
Held-for-trading financial
925,035,483 925,035,483
liabilities
Derivative financial liabilities 22,204,824 22,204,824
Notes payable 3,275,295,915 3,275,295,915
Accounts payable 24,297,859,803 24,297,859,803
Advances from customers 5,794,242 5,794,242
Contract liabilities 2,593,882,004 2,593,882,004
Financial assets sold under
repurchase agreements
Customer deposits and deposits
from other banks and financial 666,056,133 666,056,133
institutions
Funds for brokering securities
transaction
Funds for brokering securities
underwriting
Employee compensation payable 3,311,933,217 3,311,933,217
Taxes and levies payable 1,238,849,334 1,238,849,334
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TCL Technology Group Corporation First Quarter 2022 Report
Other payables 19,386,888,623 19,386,888,623
Of which: Interests payable
Dividends payable 34,607,012 34,607,012
Service charges and
commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Current portion of non-current
liabilities due within a one-year 13,006,764,842 13,006,764,842
period
Other current liabilities 1,269,886,904 1,269,886,904
Total current liabilities 80,778,940,021 80,778,940,021 -
Non-current liabilities:
Insurance contract provisions -
Long-term borrowings 87,279,081,955 87,279,081,955
Bonds payable 13,066,281,402 13,066,281,402
Of which: Preferred stocks
Perpetual bonds
Lease liabilities 1,102,071,813 1,102,071,813
Long-term payables 671,344,466 671,344,466
Long-term employee
669,931,395 669,931,395
compensation payable
Estimated liabilities
Deferred income 2,361,205,043 2,361,205,043
Deferred income tax liabilities 3,158,985,929 3,158,985,929
Other non-current liabilities
Total non-current liabilities 108,308,902,003 108,308,902,003 -
Total liabilities 189,087,842,024 189,087,842,024 -
Owner's equity:
Share capital 14,030,642,421 14,030,642,421
Other equity instruments 200,334,057 200,334,057
Of which: Preferred stocks
Perpetual bonds
Capital reserves 6,079,267,240 6,079,267,240
Less: Treasury stock 1,885,556,526 1,885,556,526
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TCL Technology Group Corporation First Quarter 2022 Report
Other comprehensive income -409,447,681 -409,447,681
Specific reserves 1,549,125 1,549,125
Surplus reserves 2,550,172,644 2,550,172,644
General risk reserve 8,933,515 8,933,515
Retained earnings 22,458,339,816 22,527,686,004 69,346,188
Total equity attributable to the owners
43,034,234,611 43,103,580,799 69,346,188
of the parent company
Non-controlling interests 76,611,056,670 76,796,548,092 185,491,422
Total owner's equity 119,645,291,281 119,900,128,891 254,837,610
Total liabilities and owner's equity 308,733,133,305 308,987,970,915 254,837,610
2. Notes on retrospective adjustments to the previous comparative data due to adoption of the new Accounting Standards
initially implemented beginning in 2022
Consolidated Income Statement
Unit: RMB
Amount incurred in the Amount incurred in the Amount of
Item previous period before previous period after adjustment
adjustment adjustment
1. Total revenue 32,173,945,858 32,275,317,601 101,371,743
Of which: Revenue 32,143,561,563 32,244,933,306 101,371,743
Interest income 30,384,295 30,384,295
Earned premiums
Service charge and commission income
II. Total costs 28,868,451,833 28,950,337,978 81,886,145
Of which: Cost of sales 25,383,357,989 25,462,422,453 79,064,464
Interest expenditures 4,754,960 4,754,960
Service charge and commission
expenditures
Surrender value
Net claims payment
Net insurance liability provisions accrued
Policy dividend expenditures
Reinsurance expenses
Taxes and levies 106,853,638 106,853,638
Selling expenses 330,230,062 330,230,062
Administrative expense 763,004,335 763,004,335
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TCL Technology Group Corporation First Quarter 2022 Report
R&D expenses 1,540,240,528 1,543,062,209 2,821,681
Financial expenses 740,010,321 740,010,321
Including: Interest expenses 966,852,847 966,852,847
Interest income 103,593,808 103,593,808
Plus: Other income 343,452,869 343,452,869
Return on investment (losses are indicated
493,372,758 493,372,758
by "-")
Including: Share of profit or loss of joint
149,003,152 149,003,152
ventures and associates
Income from derecognition of
financial assets measured at amortised costs
Exchange gains (losses are indicated by "-") -14,384 -14,384
Gain on net exposure hedging (losses are
-
indicated by "-")
Gain on changes in fair value (losses are
-292,943,771 -292,943,771
indicated by "-")
Credit impairment losses (losses are
-31,736,912 -31,736,912
indicated by "-")
Asset impairment losses (losses are
-301,118,508 -301,118,508
indicated by "-")
Income from asset disposal (losses are
159,503 159,503
indicated by "-")
III. Operating profit (losses are indicated by "-") 3,516,665,580 3,536,151,178 19,485,598
Plus: Non-operating income 210,942,953 210,942,953
Less: Non-operating expenses 4,694,406 4,694,406
IV. Gross profits (total losses are indicated by "-") 3,722,914,127 3,742,399,725 19,485,598
Less: Income tax expenses 487,257,128 490,179,967 2,922,839
V. Net profits (net losses are indicated by "-") 3,235,656,999 3,252,219,758 16,562,759
(1) Classification by business continuity
1. Net profits from continuing operations (net
3,235,656,999 3,252,219,758 16,562,759
losses are indicated by "-")
2. Net profits from discontinued operations (net
- -
losses are indicated by "-")
(2) Classification by ownership
1. Net profits attributable to the owners of the
2,403,729,935 2,410,539,527 6,809,592
parent company
2. Net profit attributable to non-controlling 831,927,064 841,680,231 9,753,167
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TCL Technology Group Corporation First Quarter 2022 Report
interests
VI. Other comprehensive income, net of tax -180,087,886 -180,087,886 -
Other comprehensive income attributable to the
-151,737,311 -151,737,311
owners of the parent company, net of tax
(1) Other comprehensive income that will not be
-65,621,285 -65,621,285 -
reclassified to profit or loss
1. Changes arising from remeasurement
of defined benefit plans
2. Other comprehensive income that
cannot be subsequently reclassified into profits and -
losses under the equity method
3. Changes in fair value of other equity
-65,621,285 -65,621,285
instrument investments
4. Changes in fair value of the
enterprise's own credit risks
5. Others
(2) Other comprehensive income that may
-86,116,026 -86,116,026 -
subsequently reclassified into profit and loss
1. Other comprehensive income that can
be transferred to profits and losses under the equity 11,868 11,868
method
2. Changes in fair value of other debt
investments
3. Amount of financial assets reclassified
into other comprehensive income
4. Provisions for credit impairment of
other debt investments
5. Reserves for cash flow hedging -75,069,636 -75,069,636
6. Conversion differences in foreign
-11,058,258 -11,058,258
currency financial statements
7. Others -
Other net comprehensive income attributable to
-28,350,575 -28,350,575
minority interests, net of tax
VII. Total comprehensive income 3,055,569,113 3,072,131,872 16,562,759
Total comprehensive income attributable to the
2,251,992,624 2,258,802,216 6,809,592
owners of the parent company
Total comprehensive income attributable to
803,576,489 813,329,656 9,753,167
non-controlling interests
27
TCL Technology Group Corporation First Quarter 2022 Report
VIII. Earnings per share:
(1) Basic earnings per share 0.1781 0.1786
(2) Diluted earnings per share 0.1713 0.1718
III. Auditor’s report
Whether the First Quarter 2022 Report has been audited or not?
□ Yes √ No
The Company’s First Quarter 2022 Report has not yet been audited.
TCL Technology Group Corporation
Board of Directors
April 27, 2022
28
