TCL Technology Group Corporation Third Quarter 2022 Report
Stock Code: 000100 Stock Abbr.: TCL TECH. Announcement No.: 2022-106
TCL 科技集团股份有限公司
TCL Technology Group Corporation
Third Quarter 2022 Report
October 21, 2022
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TCL Technology Group Corporation Third Quarter 2022 Report
Content
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 Significant Events ............................................................................ 11
Section VI Quarterly Financial Statements ................................................................. 12
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TCL Technology Group Corporation Third Quarter 2022 Report
Section I Important Notice
The Company and all members of the Board of Directors hereby guarantee the authenticity,
accuracy, and completeness of the information disclosed, and warrant that there are no false records,
misleading statements, or material omissions therein.
The Board of Directors (or the “Board”), the Supervisory Committee, directors, supervisors and
senior management of TCL Technology Group Corporation (hereinafter referred to as the “Company”)
hereby guarantee that this quarterly report is factual, accurate and complete, and shall be jointly and
severally liable for any misrepresentations, misleading statements, or material omissions therein.
Mr. Li Dongsheng, the person-in-charge of the Company, 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 (Chief Accountant), hereby guarantee that the financial statements carried in this
Quarterly Report are factual, accurate, and complete.
The future plans, development strategies or other forward-looking statements mentioned in this
Report shall NOT be considered as promises of the Company to investors. Therefore, investors are
kindly reminded to pay attention to possible investment risks.
This report has not been audited. This Report has been prepared in both Chinese and English.
Should there be any discrepancies or misunderstandings between the two versions, the Chinese
version shall prevail.
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TCL Technology Group Corporation Third Quarter 2022 Report
Section II Key Financial Information
I. Key accounting data and financial indicators
Does the Company need to retroactively adjust or restate the accounting data of previous years?
√ Yes □ No
Reasons for retroactive adjustment or restatement
Change of accounting policy
Q3 2021 Change From the beginning of the Q3 2021 Change
Q3 2022 year to the end of the current
reporting period
Before Before
After adjustment After adjustment After adjustment After adjustment
adjustment adjustment
Revenue (RMB) 41,992,680,714 46,629,888,432 46,633,918,068 -9.95% 126,514,861,842 120,928,535,190 121,039,767,107 4.52%
Net profit attributable to the
-382,858,737 2,318,085,363 2,308,401,225 -116.59% 280,664,134 9,101,970,170 9,110,619,712 -96.92%
company’s shareholders (RMB)
Net profits attributable to the
company’s shareholders before
-1,259,772,878 3,060,177,204 3,050,493,066 -141.30% -1,886,642,263 8,557,995,151 8,566,644,693 -122.02%
non-recurring gains and losses
(RMB)
Net cash generated from operating
—— —— —— —— 12,661,888,660 23,959,709,061 23,959,709,061 -47.15%
activities (RMB)
Basic earnings per share
-0.0282 0.1730 0.1722 -116.38% 0.0207 0.6756 0.6762 -96.94%
(RMB/share)
Diluted earnings per share
-0.0280 0.1652 0.1645 -117.02% 0.0205 0.6487 0.6493 -96.84%
(RMB/share)
Decrease of 7.17 Decrease of
Weighted average return on equity
-0.99% 6.20% 6.18% percentage 0.72% 25.16% 25.18% 24.46 percentage
(%)
points points
31 December 2021 Change
At the end of the reporting period
Before adjustment After adjustment After adjustment
Total assets (RMB) 347,011,613,569 308,733,133,305 308,987,970,915 12.31%
Owner’s equity attributable to the
38,874,222,766 43,034,234,611 43,103,580,799 -9.81%
company’s shareholders (RMB)
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TCL Technology Group Corporation Third Quarter 2022 Report
Reasons for changes in accounting policies:
In December 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 treatment 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 prototype products produced in
previous periods.
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
14,030,642,421
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 total share
0.0200
capital above (RMB/share)
II. Non-recurring profit and loss items and amount
√ Applicable □ Not applicable
Unit: RMB
Amount from the
beginning of the
Amount in the
Item year to the end of
reporting period
the reporting
period
Gains and losses on disposal of non-current assets (inclusive of impairment allowance
753,350,768 1,217,618,772
write-offs)
Government subsidies charged to current profits and loss (except for the government
subsidies which are closely related to the normal operation of the Company, and are
288,063,771 717,987,147
subject to national policies and certain standard quota or quantifiable eligibility on an
ongoing basis)
Gains and losses from changes in fair value of held-for-trading financial assets, held-for-
trading financial liabilities, and gains from disposal of financial assets and liabilities
-1,899,748 -13,063,641
held-for-trading and available-for-sale financial assets, except for effective hedging in
connection with the day-to-day operation of the Company
Reversal of provision for impairment of receivables that have been individually tested
6,000,000 16,179,957
for impairment
Non-operating income and expenses other than the above items -96,425,107 442,159,453
Less: Corporate income tax 33,156,348 80,921,899
Effect on minority interest (after tax) 39,019,195 132,653,392
Total 876,914,141 2,167,306,397
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 listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies
Offering Their Securities to the Public—Non-Recurring Gain/Loss defined as Recurring Gain/Loss items
□ Applicable √ Not applicable
The Company does not have any non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss that are defined as recurring profit and
loss items.
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TCL Technology Group Corporation Third Quarter 2022 Report
III. Changes of key accounting data and financial indicators and reasons therefor
√ Applicable □ Not applicable
Unit: RMB
Increase / decrease
Balance Sheet items September 30, 2022 January 1, 2022 Reason for change
ratio (%)
Held-for-trading Mainly due to the increase of
12,458,309,755 7,601,255,964 63.9
financial assets wealth management products
Mainly due to an expansion of
Prepayments 5,101,393,247 2,306,325,116 121.2 production and increase in
material prepayment
Mainly due to the increase of
Construction-in-progress 59,707,708,868 37,029,504,222 61.2
investment in the t9 Line
Mainly due to an expansion of
investment and an increase in
Other non-current assets 9,767,708,008 7,449,008,656 31.1
construction and equipment
prepayment
Notes payable 5,722,709,973 3,275,295,915 74.7 Mainly due to an increase of note
settlement
Mainly due to an increase of
Contract liabilities 4,866,154,983 2,593,882,004 87.6
advance receipt for goods
Income Statement Amount of the current Amount of the previous Increase / decrease
Reason for change
items period period ratio (%)
Mainly due to the increase of
R&D expenses 6,862,053,578 5,232,711,515 31.1
R&D investment
Asset impairment losses Mainly due to an increase of
(losses are indicated by -2,147,817,307 -1,556,201,649 38.0 inventory write-downs based on
"-") market conditions
Primarily due to the decrease in
tax payments as the
Income tax expenses -339,091,631 2,105,311,185 -116.1
semiconductor display business
affected by the industry cycle
Cash Flow Statement Amount of the current Amount of the previous Increase / decrease
Reason for change
items period period ratio (%)
Primarily due to the decrease in
Net cash generated from operating cash flows as the
12,661,888,660 23,959,709,061 -47.2
operating activities semiconductor display business
affected by the industry cycle
Net cash used in Mainly due to an increase of
-39,343,781,309 -29,918,789,880 -31.5
investing activities project investment
Net cash generated from Mainly due to growth of
24,068,689,896 8,683,436,043 177.2
financing activities financing scale
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TCL Technology Group Corporation Third Quarter 2022 Report
Section III Management Discussion and Analysis
During the reporting period, the global economy was constrained by a series of factors, including
the escalating Russia-Ukraine conflict, intensified inflation expectation, and repeatedly surging
COVID-19 cases. In the face of complicated external environment, the Company dedicated itself to
development in pan-semiconductor industry with a focus on semiconductor displays, new energy
photovoltaics, and semiconductor materials. The Company strengthened risk controls, enhanced its
competitive edges, and realized sustainable development in accordance with the principle of
"improving operating quality and profitability, consolidating advantages and correcting
disadvantages, promoting innovation-driven development and accelerating global layout".
During the reporting period, the Company achieved revenue of RMB126.51 billion, net profit
of RMB1.95 billion, net profit attributable to the listed company’s shareholders of RMB281 million
and net cash flow from operation of RMB12.66 billion. The semiconductor display business saw
delayed recovery due to changes in the macro-situation. The average product price for the first three
quarters of the year were markedly lower than that of the same period of the last year, and the profit
margin of the industry dropped to the cyclical bottom. This round of cyclical adjustment may help
further integration and reshuffle of the industry, increasing the concentration of the industry, under
which the industry is expected to return to normal profitability level. At the same time, the market
demand in some region is gradually recovering, and the prices of major products have begun to
stabilize and recover. In the wake of the historic opportunities brought by the structural transformation
of global energy and the mushrooming demands for semiconductors across China, the Company has
continued to shore up its leading technological position in new energy photovoltaics and
semiconductor materials, improving the capacity and market share of differentiated products,
achieving a rapid growth in both revenue and performance.
Semi-conductor display business
During the reporting period, the Company accelerated the implementation of mid-size strategy,
optimized business and product structures, transforming from a large-size displays leader to full-size
display leader. The Company committed to upholding the operational bottom line by reducing costs
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TCL Technology Group Corporation Third Quarter 2022 Report
and enhancing efficiency, balancing product structures and implementing lean management
throughout the entire industry cycle. During the reporting period, TCL CSOT sold 32.67 million
square meters of display panel, with an increase of 15% year-on-year, and bolstered its revenue from
display segment to RMB52.1 billion.
With respect to large-size displays, the Company continued to consolidate its leading position
of TV panel with high-end product strategy, occupying the world’s largest share in the 8K and 120HZ
markets, along with the second largest share in the 65 inch and 75 inch markets. The Company
became a major supplier for leading clients in the commercial market in areas such as interactive
boards, digital signage and splicing screen. The Company ranked 1st in the world in mid-and-large-
size interactive board and digital signage, along with 3rd in splicing screen. With respect to mid-and-
small-sized displays, the Company continued to improve its product series and customer structure.
The Company's delivery of LTPS tablet ranked 1st in the world, while its delivery of LTPS notebook
products ranked 2nd. The Company also registered a significant growth in the shipment of LTPS
vehicle-mounted devices, and expanded its market share in AR/VR products. With the successful
launch of the t9 production line positioned formid-sized IT and vehicle-mounted devices and the
progress made in the sixth generation of its LTPS production line, the mid-size business will make
greater contributions to the sustainable growth of the Company.
At present, the price of major products are rebounding as profit margins hit a historical low in
the industry and demand increase in certain regional markets. In the long run, leading enterprises will
further strengthen their advantages of technology and scale, and semiconductor display industry will
consolidate to a degree of concentration. With the increasing order of market competition, the return
on investment will also rise. The Company is optimistic about the development and value of the
display industry as a key information device and interactive interface.
New energy photovoltaic and semiconductor material business
During the reporting period, TCL Zhonghuan, a subsidiary controlled by the Company, recorded
a revenue of RMB49.84 billion, up by 71.35% year-on-year, and net profit of RMB5.49 billion, up
by 68.94% year-on-year.
TCL Zhonghuan’s new energy photovoltaic segment seized the opportunity in industry
development, continued to promote manufacturing upgrading and industry 4.0 transformation,
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TCL Technology Group Corporation Third Quarter 2022 Report
accelerated the production of advanced and leading capacity, steadily improved processing capability,
and continuously strengthened its core product competitiveness. The overall capacity of monocrystals
has been scaled up to 128GW, keeping the competitiveness of G12 silicon wafers and N--type silicon
wafers in both production and sales. Monthly single-furnace output recorded another new high, while
the number of photovoltaic silicon wafers produced per unit material was significantly ahead of the
industry. The Company insisted on differential technologies and product roadmaps under the
“imbrication + G12” dual platform, continued to increase the market share of photovoltaic module
products and further advanced its globalization strategy for marketing and manufacturing.
During the reporting period, the Company joined with its partners to invest and develop the
100,000-ton granular silicon and silicon-based material project and the 10,000-ton electronic-grade
polycrystalline silicon project to promote the stability and optimization of industrial chain and supply
chain.
Amid the complicated and ever-changing business environment, the Company insisted on its
strategy, and continued to develop in pan-semiconductor industry with a focus on semiconductor
displays, new energy photovoltaics, and semiconductor materials. In doing so, the Company aimed
to build up core competitive edges based on product and technology innovation, and accelerated its
development into a global leader in the science and technology industry.
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TCL Technology Group Corporation Third Quarter 2022 Report
Section IV Shareholder Information
I. Table of the total number of ordinary shareholders and the number of preferential
shareholders with resumed voting rights, and the shareholdings of the top 10 shareholders
Unit: Share
Total number of ordinary shareholders Total number of preference shareholders with resumed voting
734,320 0
by the end of the reporting period rights by the end of the reporting period (if any)
Top 10 shareholders of ordinary shares
Number of Shares in pledge, marked or frozen
Percentage of Number of shares
Name of Nature of restricted
Shareholding held at the period-
shareholder shareholder ordinary shares Status Number
(%) end
held
Domestic Pledge by Li
195,038,000
Li Dongsheng individual Dongsheng
and his acting-in- /Domestic 8.26% 1,159,085,019 610,545,821
Put in pledge by
concert party general legal 238,620,000
Jiutian Liancheng
entity
Huizhou
State-owned
Investment 5.30% 743,139,840
legal entity
Holding Co., Ltd.
Wuhan Optics
Valley Industrial State-owned
3.87% 543,255,796 In pledge 255,754,475
Investment Co., legal entity
Ltd.
China Securities Domestic
Finance general legal
2.66% 373,231,553
Corporation entity
Limited
Hong Kong
Securities
Foreign legal
Clearing 2.51% 352,294,169
entity
Company
Limited
Tibet Tianfeng
Domestic
Enterprise
general legal 1.12% 157,552,113
Management Co.,
entity
Ltd.
TCL Technology
Group
Corporation - Funds, wealth
2021 to 2023 management 0.81% 113,143,154
Employee Stock products, etc.
Ownership Plan
(Phase I)
Sinatay Life
Insurance Co., Funds, wealth
Ltd. - management 0.74% 104,190,172
Conventional products, etc.
Product
ICBC Credit
Suisse Fund -
Agricultural Bank
Funds, wealth
of China - ICBC
management 0.53% 74,761,500
Credit Suisse
products, etc.
China Securities
Financial Asset
Management Plan
Southern Asset
Management－
Agricultural Bank
Funds, wealth
of China－ management 0.53% 74,761,500
Southern China products, etc.
Securities
Financial Asset
Management Plan
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TCL Technology Group Corporation Third Quarter 2022 Report
Top 10 non-restricted ordinary shareholders
Number of non-restricted ordinary shares held at the end of Type of shares
Name of shareholder
reporting period Type Number
RMB-
Huizhou Investment Holding Co.,
743,139,840 denominated 743,139,840
Ltd.
ordinary shares
RMB-
Li Dongsheng and his acting-in-
548,539,198 denominated 548,539,198
concert party
ordinary shares
Wuhan Optics Valley Industrial RMB-
Investment Co., Ltd. 543,255,796 denominated 543,255,796
ordinary shares
China Securities Finance Corporation RMB-
Limited 373,231,553 denominated 373,231,553
ordinary shares
Hong Kong Securities Clearing RMB-
Company Limited 352,294,169 denominated 352,294,169
ordinary shares
RMB-
Tibet Tianfeng Enterprise
157,552,113 denominated 157,552,113
Management Co., Ltd.
ordinary shares
TCL Technology Group Corporation - RMB-
2021 to 2023 Employee Stock 113,143,154 denominated 113,143,154
Ownership Plan (Phase I) ordinary shares
Sinatay Life Insurance Co., Ltd. - RMB-
Conventional Product 104,190,172 denominated 104,190,172
ordinary shares
ICBC Credit Suisse Fund -
RMB-
Agricultural Bank of China - ICBC
74,761,500 denominated 74,761,500
Credit Suisse China Securities
ordinary shares
Financial Asset Management Plan
Southern Asset Management－
RMB-
Agricultural Bank of China－ 74,761,500 denominated 74,761,500
Southern China Securities Financial ordinary shares
Asset Management Plan
Explanation on the above Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership)
shareholders’ associations or became persons acting in concert by signing the Agreement on Concerted Action, holding 1,159,085,019
concerted actions shares in total and becoming the largest shareholder of the Company.
1. Wuhan Optics Valley Industrial Investment Co., Ltd., the Company’s shareholder, loaned out “TCL
Explanation on the top 10 ordinary TECH.” shares for financing. At the end of the reporting period, 15,296,600 shares were loaned out.
shareholders participating in securities 2. Tibet Tianfeng Enterprise Management Co., Ltd., a shareholder of the Company, holds 59,313,521
margin trading (if any) shares through the general securities account, and holds 98,238,592 shares through the credit securities
account, with a total of 157,552,113 shares actually held.
Note: There is a special repurchase account “TCL Technology Group Corporation’s special securities account for repurchase” among the top 10
shareholders, which are not outlined in the top 10 shareholders above. As of the end of the Reporting period, this repurchase account held
399,778,241 shares.
II. Total number of preferential shareholders and shareholdings of the top 10 preferential
shareholders
□ Applicable √ Not applicable
Section V Other Significant Events
□ Applicable √ Not applicable
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TCL Technology Group Corporation Third Quarter 2022 Report
Section VI Quarterly Financial Statements
I. Financial statements
1. Consolidated Balance Sheet
Prepared by: TCL Technology Group Corporation
Unit: RMB
Item September 30, 2022 January 1, 2022
Current assets:
Monetary assets 31,670,495,301 31,393,692,485
Settlement reserves - -
Funds on loan - -
Held-for-trading financial assets 12,458,309,755 7,601,255,964
Derivative financial assets 932,497,714 70,928,566
Notes receivable 615,657,549 776,201,686
Accounts receivable 16,549,169,862 18,238,782,247
Receivables financing 1,716,054,649 2,217,638,736
Prepayments 5,101,393,247 2,306,325,116
Premiums receivable - -
Reinsurance accounts receivable - -
Reinsurance contract provisions
- -
receivable
Other receivables 4,428,226,031 4,458,621,235
Of which: Interests receivable - -
Dividends receivable - -
Financial assets purchased under sale-
- -
back agreement
Inventories 15,225,747,424 14,083,356,918
Contract assets 295,223,261 233,528,786
Held-for-sale assets - -
Non-current assets maturing within
- -
one year
Other current assets 4,589,118,185 5,802,960,362
Total current assets 93,581,892,978 87,183,292,101
Non-current assets:
Loans and advances to customers - -
Debt investments 737,160,393 -
Other debt investments - -
Long-term receivables 635,189,040 651,117,971
Long-term equity investments 28,864,974,738 25,640,578,245
Investments in other equity
909,642,430 927,319,447
instruments
Other non-current financial assets 2,761,224,608 2,704,037,825
Investment property 877,787,417 761,902,236
Fixed assets 114,485,025,927 113,723,758,876
Construction-in-progress 59,707,708,868 37,029,504,222
Productive biological assets - -
Oil and gas assets - -
Right-of-use assets 2,064,309,218 2,426,911,208
Intangible assets 16,521,704,622 14,000,546,363
Development costs 2,800,521,340 2,540,199,289
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TCL Technology Group Corporation Third Quarter 2022 Report
Goodwill 9,173,261,286 9,158,841,295
Long-term deferred expenses 2,685,605,604 2,640,530,156
Deferred income tax assets 1,437,897,092 2,150,423,025
Other non-current assets 9,767,708,008 7,449,008,656
Total non-current assets 253,429,720,591 221,804,678,814
Total assets 347,011,613,569 308,987,970,915
Current liabilities:
Short-term borrowings 11,943,712,273 9,341,426,543
Borrowings from the Central Bank 821,867,213 1,437,062,154
Borrowed funds - -
Held-for-trading financial liabilities 735,727,968 925,035,483
Derivative financial liabilities 618,264,838 22,204,824
Notes payable 5,722,709,973 3,275,295,915
Accounts payable 24,703,170,622 24,297,859,803
Advances from customers 318,776 5,794,242
Contract liabilities 4,866,154,983 2,593,882,004
Financial assets sold under repurchase
- -
agreements
Customer deposits and deposits from
755,311,447 666,056,133
other banks and financial institutions
Funds for brokering securities
- -
transaction
Funds for brokering securities
- -
underwriting
Remunerations payable 2,663,385,762 3,311,933,217
Taxes and levies payable 1,140,789,267 1,238,849,334
Other payables 21,715,882,528 19,386,888,623
Of which: Interests payable - -
Dividends payable 52,035,174 34,607,012
Service charges and commissions
- -
payable
Reinsurance accounts payable - -
Held-for-sale liabilities - -
Non-current liabilities maturing within
12,422,474,799 13,006,764,842
one year
Other current liabilities 1,450,271,208 1,269,886,904
Total current liabilities 89,560,041,657 80,778,940,021
Non-current liabilities:
Insurance contract provisions - -
Long-term borrowings 112,656,893,802 87,279,081,955
Bonds payable 13,605,712,404 13,066,281,402
Of which: Preferred stocks - -
Perpetual bonds - -
Lease liabilities 1,324,661,521 1,102,071,813
Long-term payables 765,617,792 671,344,466
Long-term remunerations payable 920,204,520 669,931,395
Estimated liabilities - -
Deferred income 4,759,331,282 2,361,205,043
Deferred tax liabilities 1,628,315,877 3,158,985,929
Other non-current liabilities - -
Total non-current liabilities 135,660,737,198 108,308,902,003
Total liabilities 225,220,778,855 189,087,842,024
Owner's equity:
Capital stock 14,030,642,421 14,030,642,421
Other equity instruments 194,362,554 200,334,057
Of which: Preferred stocks - -
Perpetual bonds - -
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TCL Technology Group Corporation Third Quarter 2022 Report
Capital reserves 4,719,031,728 6,079,267,240
Less: Treasury stocks 2,311,249,047 1,885,556,526
Other comprehensive income -1,067,242,029 -409,447,681
Specific reserves 5,397,446 1,549,125
Surplus reserves 2,550,172,644 2,550,172,644
General risk provisions 8,933,515 8,933,515
Retained earnings 20,744,173,534 22,527,686,004
Total equity attributable to the owners of
38,874,222,766 43,103,580,799
the parent company
Minority interests 82,916,611,948 76,796,548,092
Total owner's equity 121,790,834,714 119,900,128,891
Total liabilities and owner's equity 347,011,613,569 308,987,970,915
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 from the beginning of the year to the end of the reporting period
Unit: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
I. Total operating revenue 126,575,669,585 121,153,162,502
Of which: Operating revenue 126,514,861,842 121,039,767,107
Interest income 60,807,743 113,395,395
Earned premiums - -
Service charge and commission income - -
II. Total operating costs 128,949,175,733 108,753,137,235
Of which: Cost of sales 114,950,650,732 95,588,724,342
Interest expenditures 18,341,537 24,985,728
Service charge and commission expenditures - -
Surrender value - -
Net claims payment - -
Net insurance liability provisions accrued - -
Policy dividend expenditures - -
Reinsurance expenses - -
Taxes and levies 450,506,832 517,656,005
Sales expenses 1,456,590,197 1,552,806,398
Administrative expenses 2,739,873,088 3,008,738,778
R&D expenses 6,862,053,578 5,232,711,515
Financial expenses 2,471,159,769 2,827,514,469
Of which: Interest expenses 3,156,169,091 3,143,032,709
Interest income 574,239,059 304,396,859
Plus: Other income 2,527,046,371 1,236,157,521
Return on investment (losses are indicated by "-
2,945,923,073 2,884,044,180
")
Of which: Share of profit or loss of joint
2,162,708,733 2,115,987,323
ventures and associates
Income from derecognition of
- -
financial assets measured at amortized costs
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TCL Technology Group Corporation Third Quarter 2022 Report
Exchange gains (losses are indicated by "-") 17,243,641 1,496,097
Gain on net exposure hedging (losses are
- -
indicated by "-")
Gain on changes in fair value (losses are
174,313,519 38,035,283
indicated by "-")
Credit impairment losses (losses are indicated
-21,497,079 -14,189,833
by "-")
Asset impairment losses (losses are indicated by
-2,147,817,307 -1,556,201,649
"-")
Income from asset disposal (losses are indicated
-24,703,658 24,654,877
by "-")
III. Operating profit (losses are indicated by "-") 1,097,002,412 15,014,021,743
Plus: Non-operating income 613,528,624 284,672,695
Less: Non-operating expenditures 97,681,058 42,141,653
IV. Gross profits (total losses are indicated by "-") 1,612,849,978 15,256,552,785
Less: Income tax expenses -339,091,631 2,105,311,185
V. Net profits (net losses are indicated by "-") 1,951,941,609 13,151,241,600
(1) Classification by business continuity
1. Net profits from continuing operations (net
1,951,941,609 13,092,944,856
losses are indicated by "-")
2. Net profits from discontinued operations (net
- 58,296,744
losses are indicated by "-")
(2) Classification by ownership
1. Net profit attributable to shareholders of parent
280,664,134 9,110,619,712
company (net loss indicated with “-”)
2. Net profit attributable to non-controlling
1,671,277,475 4,040,621,888
interests (net loss indicated with “-”)
VI. Other comprehensive income, net of tax -600,216,587 -160,804,149
Other comprehensive income attributable to the
-657,794,348 -174,268,754
owners of the parent company, net of tax
(1) Other comprehensive income that will not be
-38,664,611 -214,495,965
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 387,914 14,869,672
the equity method
3. Changes in fair value of investments in other
-39,052,525 -229,365,637
equity instruments
4. Changes in fair value of the enterprise's own
- -
credit risks
5. Others - -
(2) Other comprehensive income that may
-619,129,737 40,227,211
subsequently reclassified into profit and losses
1. Other comprehensive income that can be
transferred to profits and losses under the equity 4,527,850 -141,659,959
method
2. Changes in fair value of other debt
- 118,211
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 -178,024,905 -10,473,743
6. Conversion differences in foreign currency -445,632,682 192,242,702
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TCL Technology Group Corporation Third Quarter 2022 Report
financial statements
7. Others - -
Other net comprehensive income attributable to
57,577,761 13,464,605
minority interests, net of tax
VII. Total comprehensive income 1,351,725,022 12,990,437,451
(1) Total comprehensive income attributable to
-377,130,214 8,936,350,958
owners of the parent company
(2) Total comprehensive income attributable to non-
1,728,855,236 4,054,086,493
controlling interests
VIII. Earnings per share:
(1) Basic earnings per share 0.0207 0.6762
(2) Diluted earnings per share 0.0205 0.6493
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 from the beginning of the year to the end of the reporting period
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
I. Net cash generated from operating
activities:
Proceeds from sale of commodities
100,750,626,818 102,830,329,814
and rendering of services
Net increase of deposits from
customers, banks and other financial 89,255,314 -1,082,987,202
institutions
Net increase of borrowings from the
-615,194,941 819,320,811
Central Bank
Net increase of borrowings from other
- 500,100,000
financial institutions
Cash received from collecting
premiums for original insurance - -
contracts
Net cash received for reinsurance
- -
business
Net increase of deposits and
- -
investments of policyholders
Cash received from interest, service
60,807,743 113,395,395
charges and commissions
Net increase of borrowed funds from
- -
banks and other financial institutions
Net increase of repurchase business
- -
funds
Net cash received from brokering
- -
securities transaction
Tax and levy rebates 9,008,513,808 3,993,901,692
Cash generated from other operating
6,499,913,125 5,956,428,024
activities
Sub-total of cash generated from
115,793,921,867 113,130,488,534
operating activities
Payments for commodities and
83,453,908,540 73,019,566,104
services
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TCL Technology Group Corporation Third Quarter 2022 Report
Net increase of loans and advances to
40,873,048 324,408,575
customers
Net increase of deposits with the
Central Bank, banks and other financial 55,082,779 299,437,969
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 8,563,502,480 5,891,150,448
Taxes and levies paid 2,472,457,316 3,198,245,274
Cash used in other operating activities 8,546,209,044 6,437,971,103
Sub-total of cash used in operating
103,132,033,207 89,170,779,473
activities
Net cash generated from operating
12,661,888,660 23,959,709,061
activities
II. Net cash used in investing activities:
Proceeds from disinvestments 36,317,483,105 18,761,531,372
Proceeds from return on investments 1,015,752,094 1,486,814,462
Net proceeds from disposal of fixed
assets, intangible assets and other long- 82,138,786 170,993,357
term assets
Net proceeds from disposal of
- 1,167,218,777
subsidiaries and other business units
Cash generated from other investing
107,866,294 5,589,112
activities
Sub-total of cash generated from
37,523,240,279 21,592,147,080
investment activities
Payments for the acquisition and
construction of fixed assets, intangible 31,453,416,391 20,703,364,427
assets and other long-term assets
Payments for investments 44,706,020,240 26,563,389,197
Net increase of pledged loans - -
Net payments for acquiring
50,133,077 4,139,504,958
subsidiaries and other business units
Cash used in other investing activities 657,451,880 104,678,378
Subtotal of cash used in investing
76,867,021,588 51,510,936,960
activities
Net cash used in investing activities -39,343,781,309 -29,918,789,880
III. Net cash generated from financing
activities:
Capital contributions received 8,440,501,173 10,064,658,519
Of which: Capital contributions by
8,440,501,173 10,064,658,519
non-controlling interests to subsidiaries
Borrowings raised 73,945,824,297 48,844,261,186
Cash generated from other financing
46,000,000 858,099,886
activities
Sub-total of cash generated from
82,432,325,470 59,767,019,591
financing activities
Cash paid for debt repayment 46,000,724,997 39,176,083,445
Cash paid for distribution of dividends
7,638,841,951 5,851,178,360
and profits or payment of interests
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TCL Technology Group Corporation Third Quarter 2022 Report
Of which: Dividends and profits
paid by subsidiaries to minority 1,667,403,525 412,425,974
shareholders
Cash used in other financing activities 4,724,068,626 6,056,321,743
Subtotal of cash used in financing
58,363,635,574 51,083,583,548
activities
Net cash generated from financing
24,068,689,896 8,683,436,043
activities
IV. Effect of exchange rate changes on
616,824,475 3,648,815
cash and cash equivalents
V. Net increase of cash and cash
-1,996,378,278 2,728,004,039
equivalents
Plus: Beginning balance of cash and
30,081,704,864 18,208,416,780
cash equivalents
VI. Ending balance of cash and cash
28,085,326,586 20,936,420,819
equivalents
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li Jian
Person-in-charge of the financial department: Xi Wenbo
II. Auditor’s Report
Whether the Third Quarter 2022 Report has been audited or not?
□ Yes √ No
The Company's Third Quarter Report has not yet been audited.
TCL Technology Group Corporation
Board of Directors
October 21, 2022
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