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TCL科技:2022年年度报告(英文版)2023-04-22  

                                     Full Text of the Annual Report 2022 of TCL Technology Group Corporation




TCL 科技集团股份有限公司
TCL Technology Group Corporation




   ANNUAL REPORT 2022

            March 30, 2023




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      Breaking the Adversity with Strengthened Basic Competitiveness
                    ANNUAL REPORT 2022 Chairman's Statement
     2022 was a year full of opportunities and challenges. 2022 witnessed dramatic changes in the
global political and economic situation, from the outbreak of the Russia-Ukraine war, rising inflation,
sluggish market demand, to deteriorating trade environment, and significant economic slowdown.
These multiple factors brought tremendous challenges to the development of the high-tech
manufacturing industry. Due to the fluctuation of both industrial chain and supply chain,
manufacturers worldwide had to shift their focus from efficiency to both efficiency and safety. The
global industrial pattern was restructured. Under this background, China's high-tech manufacturing
industry also faced pressure of transformation and upgrading. We have built our competitive
advantages in the fields of semiconductor display and new energy photovoltaic, and will take the
opportunities of global energy transition and strengthening high-tech industrial chain, actively
respond to risks and turn crises into opportunities. We will continue to achieve high-quality corporate
development with technological innovation and advantages of economies of scale.
     Facing the complex business environment of 2022, the Company maintained its strategic focus,
built a solid bottom line, and advanced steadily. The Company achieved a revenue of RMB166.55
billion, an increase of 1.8%, a net profit of RMB1.79 billion, with the net profit of RMB260 million
attributable to the Company’s shareholders, and net operating cash inflow of RMB18.43 billion,
continuously ensured its stable operation.
     Affected by the global economic downturn, the demand from the end-users weakened, the prices
of large-sized panels dropped significantly, and the operating performance of the semiconductor
display industry hit a record low during the Reporting Period. The Company achieved a year-on-year
increase in the sales area of semiconductor displays at 8.3%, and earned a revenue of RMB65.72
billion, a year-on-year decrease of 25.5%, saw a full-year loss. Facing the operational challenges,
TCL CSOT upheld its bottom-line thinking, and pushed ahead with structural changes such as
organizational changes and management optimization. With strengthened advantages and shored up
weakness parts, TCL CSOT accelerated the adjustments to product structures, actively explored
emerging areas, and promoted balanced business development. In its large-size product business,
TCL CSOT has consolidated its leading position in TV panels with a high-end product strategy, and
vigorously developed commercial displays such as interactive whiteboards, digital signs, and video
walls. TCL CSOT ranked first in the world in the field of shipment of 8K and 120HZ high-end TV
panels and interactive whiteboards. As production lines dedicated to IT products, the t9 adopted oxide
semiconductor displays kicked off its SoP in Guangzhou ahead of schedule, and the G6 LTPS


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production line in Wuhan proceeded as planned. Small and medium-sized products further
consolidated the business development, all of which would drive a new round of growth of TCL
CSOT.
     With increasing transformation of global energy structure, the new energy industry has ushered
in historic opportunities. In response to the rapid development of the new energy industry, TCL
Zhonghuan continued to play its leading advantages in advanced capacity layout, technological
innovation, and cost efficiency, as well as the activation effect of institutional mechanisms. In 2022,
TCL Zhonghuan achieved a significant increase in its operating performance again, with a revenue
of RMB67.01 billion, a year-on-year increase of 63.0%, and a net profit of RMB7.07 billion, a year-
on-year increase of 59.5%. Ningxia Zhonghuan Phase VI project increased its capacity, and the wafer
projects were put into production in Tianjin and Yixing successively, with the advantageous capacity
rapidly increased. TCL Zhonghuan’s capacity for photovoltaic crystalline silicon was increased to
140GW, making it the world's largest silicon wafer supplier. The highly-efficient laminated tile
module intelligent manufacturing projects in Jiangsu and Tianjin have been entered the SOP, with a
steady increase in the market share. Through deepening collaboration with Maxeon in terms of the
supply chain, production, and channels, TCL Zhonghuan has accelerated its global business layout.
     Affected by the economic environment, both Highly and Tianjin Printronics experienced a slight
decline in their operating performance, but they maintained strong potentials for recovery. The
investment business continues to focus on business layout and exploration alongside the industrial
chain in support of the Company’s main businesses.
     The Company took product technology innovation as the core driving force, and empowered
manufacturing transformation and upgrading with digitalization. The Company insisted on investing
in cutting-edge technology fields such as new displays, new energy, and semiconductor materials.
During the year, the Company invested RMB10.78 billion in research and development, a year -on-
year increase of 22.9%. In 2022, the Company made 659 new applications for PCT patents, and 2,244
applications for patents of technologies and material in the field of quantum dot electroluminescence,
ranking second in the world. The semiconductor display business promoted the digitalized
management in the whole production process and entire product cycle. The Company has established
an industry-leading Industry 4.0 system for the new energy photovoltaic business, leading the
manufacturing revolution in the industry.
     In the future, global economic development still faces uncertain factors, and the restructuring of
the political and economic patterns will intensively affect the economic trends of China and the rest
of the world. At present, China is dedicated to high-quality economic development and independent
development of high-level technologies, which brings significant opportunities for the development

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of the high-tech industry. In the face of the complex and volatile internal and external environment,
the Company will focus on the pan-semiconductor industry that is “high-tech, asset-heavy, and long-
term” based on its goal of leading in the world, solidly achieve the pre-set strategic objectives and
business strategies, adhere to the bottom-line business thinking, ensure strong risk prevention, and
break the adversity with strengthened competitiveness.
     The semiconductor display industry has moved downwards from the middle of 2021, and stayed
at the historic bottom for a long time due to the economic slowdown. Leading enterprises increasingly
focus on the supply-demand balance and industrial profits. With the industry integration, the Matthew
effect is becoming more prominent, and the industrial pattern becomes healthier and more reasonable.
The economy and demand are expected to stabilize in the near future, and the industry is expected to
rebound. The Company, guided by the 9225 Strategy, will continue to optimize the business, product,
and customer structures for its semiconductor display business. With the SoP of t9 production lines
based on medium-sized display panels featuring high added value, and the orderly progress of LTPS
6-gen production line, which mainly produces medium and small-sized display panels, TCL CSOT
will significantly improve its competitiveness in terms of business and product portfolio.
     Driven by the transformation of the global energy structure and the goal of carbon peaking and
carbon neutrality, the new energy industry has entered a stage of rapid development. In terms of the
new energy photovoltaic business, the Company will further expand the technological and product
advantages of G12/N silicon wafers, accelerate the layout of advantageous capacity, and cooperate
with global partners to expand overseas markets. TCL Zhonghuan will provide an ongoing growth
engine to the Company. Several projects jointly invested by the Company and partners have been
launched, including 100 thousand tons of granular silicon, silicon-based materials and 10 thousand
tons of electronic polysilicon, which will further improve the Company’s layout in the new energy
photovoltaic and semiconductor material industry chain and enhance the stability of the Company’s
industry chain.
     The manufacturing industry acts as the backbone of the national economy, while high-tech
industries represent national competitiveness. Being confident in the future development, we will
focus on core segments and drive the healthy corporate development in support of the high-quality
development of the industry and China’s manufacturing industry.
     I would like to express my sincere gratitude for the trust of all our shareholders, for the support
from all our partners and users, as well as for the efforts of all employees!




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                                                   March 30, 2023




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         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 its summary, 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. Peng Pan, the person-in-charge of the financial department,
hereby guarantee that the financial statements carried in this Report are factual, accurate and
complete.
     All the Company’s directors attended the Board meeting for the review of this Report and its
summary.
     The future plans, development strategies or other forward-looking statements mentioned in this
Report and its summary shall NOT be considered as promises of the Company to investors. Therefore,
investors are kindly reminded to pay attention to possible investment risks.
     The Board has approved a final plan for the profit distribution and conversion of the capital
reserve to the share capital as follows: based on the Company’s share capital as at March 30, 2023,
i.e., 17,071,891,607 shares, the capital reserve is to be converted into capital on a basis of 1 share for
every 10 shares to all the shareholders. After the conversion, the total share capital of the Company
will be changed to 18,779,080,767 shares. Neither cash dividends or bonus shares will be distributed
this year. Where any changes occur, before the implementation of the dividend plan, to the total share
capital of the Company due to any convertible bonds-to-stock programs, share repurchases, exercises
of equity incentives, new share issues in refinancing, etc., the dividend will be adjusted according to
the principle of “adjusting the total conversion amount under the same conversion ratio”, subject to
the actual conversion amount.
     This Report and its summary 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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                                          Table of Contents
Part I Important Notes, Table of Contents and Definitions ............................ 6
Part II Corporate Information and Key Financial Information .................. 11
Part III Management Discussion and Analysis ............................................... 16
Part IV Corporate Governance ......................................................................... 46
Part V Environmental and Social Responsibility ........................................... 70
Part VI Significant Events .................................................................................. 77
Part VII Changes in Shares and Information about Shareholders ........... 103
Part VIII Bonds .................................................................................................. 112
Part IX Financial Report .....................................................错误!未定义书签。




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                        Documents Available for Reference

    (I) The financial statements signed and stamped by the person-in-charge of the Company, the
Chief Financial Officer and person-in-charge of the financial department.
    (II) The original of the auditor’s report with the seal of the accounting firm, and signed and
stamped by CPAs.
    (III) The originals of all company documents and announcements that were disclosed to the
public during the Reporting Period.




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                                                           Definitions
                   Term                        Refers to                                     Definition
The “Company”, the
                                               Refers to    TCL Technology Group Corporation
“Group”,“TCL”,“TCL TECH.” or “we”
The “Reporting Period”, “current period”   Refers to    The period from January 1, 2022 to December 31, 2022.
TCL CSOT                                       Refers to    TCL China Star Optoelectronics Technology Co., Ltd.
Zhonghuan Electronics                          Refers to    TCL Technology Group (Tianjin) Co., Ltd.
TCL Industrial                                 Refers to    TCL Industrial Holdings Co., Ltd.
                                                            TCL Zhonghuan Renewable Energy Technology Co., Ltd., a majority-
TCL Zhonghuan                                  Refers to    owned subsidiary of the Company listed on the Shenzhen Stock Exchange
                                                            (stock code: 002129.SZ)
                                                            Tianjin Printronics Circuit Corporation, a majority-owned subsidiary of
TPC                                            Refers to    the Company listed on the Shenzhen Stock Exchange (stock code:
                                                            002134.SZ)
                                                            Highly Information Industry Co., Ltd., a majority-owned subsidiary of the
Highly                                         Refers to    Company listed on the National Equities Exchange and Quotations (stock
                                                            code: 835281)
                                                            China Display Optoelectronics Technology Holdings Limited, a majority-
CDOT                                           Refers to    owned subsidiary of the Company listed on the Hong Kong Stock
                                                            Exchange (stock code: 00334.HK)
                                                            Shenzhen China Star Optoelectronics Semiconductor Display Technology
Shenzhen CSOT                                  Refers to
                                                            Co., Ltd.
Wuhan CSOT                                     Refers to    Wuhan China Star Optoelectronics Technology Co., Ltd.
Wuhan China Star Optoelectronics                            Wuhan China Star Optoelectronics Semiconductor Display Technology
                                               Refers to
Semiconductor                                               Co., Ltd.
                                                            Guangzhou       China   Star   Optoelectronics   Semiconductor   Display
Guangzhou CSOT                                 Refers to
                                                            Technology Co., Ltd.
Suzhou CSOT                                    Refers to    Suzhou China Star Optoelectronics Technology Co., Ltd.
Moka Technology                                Refers to    Moka International Limited
t1                                             Refers to    The generation 8.5 (or G8.5) TFT-LCD production line of TCL CSOT
                                                            The generation 8.5 (or G8.5) TFT-LCD (including oxide semiconductor)
t2                                             Refers to
                                                            production line of TCL CSOT
                                                            The generation 6 (or G6) LTPS-LCD panel production line at Wuhan
t3                                             Refers to
                                                            CSOT
                                                            The generation 6 (or G6) flexible LTPS-AMOLED panel production line
t4                                             Refers to
                                                            at Wuhan CSOT
                                                            The generation 6 (or G6) of new semiconductor production line of Wuhan
Wuhan t3 production expansion project          Refers to
                                                            CSOT
                                                            The generation 11 (or G11) new TFT-LCD display production line at
t6                                             Refers to
                                                            Shenzhen CSOT
                                                            The generation 11 (or G11) new ultra high definition display production
t7                                             Refers to
                                                            line at Shenzhen CSOT
t9                                             Refers to    The generation 8.6 (or G8.6) new oxide semiconductor production line at


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                   Guangzhou CSOT
t10   Refers to    The generation 8.5 (or G8.5) TFT-LCD production line at Suzhou CSOT
GW    Refers to    Gigawatt, power unit for solar cells, 1GW = 1,000 megawatts
                   12-inch ultra-large DW-cut solar monocrystalline silicon square wafer,
G12   Refers to    size: 44,096mm diagonal line: 295mm, side length: 210mm, with its size
                   80.5% larger than the conventional M2
RMB   Refers to    Renminbin




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                                                         Full Text of the Annual Report 2022 of TCL Technology Group Corporation


         Part II Corporate Information and Key Financial Information
I. Corporate Information
 Stock name                                      TCL TECH.                           Stock code                  000100
 Stock abbreviation before change (if any)       -
 Place of listing                                Shenzhen Stock Exchange
 Company name in Chinese                         TCL 科技集团股份有限公司
 Abbr.                                           TCL 科技
 Company name in English (if any)                TCL Technology Group Corporation
 Abbr. (if any)                                  TCL TECH.
 Legal representative                            Li Dongsheng
                                                 TCL Tech Building, 17 Huifeng Third Road, Zhongkai Hi-Tech Development
 Place of registration
                                                 District, Huizhou City, Guangdong Province
 Zip code                                        516001
 History of changes in the Company’s place of
                                                 -
 registration
                                                 TCL Tech Building, 17 Huifeng Third Road, Zhongkai Hi-Tech Development
 Office address
                                                 District, Huizhou City, Guangdong Province
 Zip code                                        516001
 Company website                                 https://www.tcltech.com/
 Email address                                   ir@tcl.com
                                                 “7th Guangdong Provincial Government Quality Award”
                                                 “2022 Chinese Fortune 500”
 Company honors
                                                 “Top 100 Private Enterprises with the Best CSR Practices in China”
                                                 “Top 100 Listed Enterprises with the Best ESG Practices in China”

II. Contact Information
                                                                                              Board Secretary
 Name                                                                  Liao Qian
                                                                       10/F, Tower G1, International E Town, TCL Science Park, 1001
 Office address
                                                                       Nanshan District, Shenzhen, Guangdong Province, China
 Tel.                                                                  0755-3331 1666
 Email address                                                         ir@tcl.com

III. Media for Information Disclosure and Place Where This Report is Lodged
 Stock exchange website for publication of this Report                 http://www.cninfo.com.cn
                                                                       Securities Times, China Securities Journal, Shanghai Securities
 Media name and website for publication of this Report
                                                                       News, Securities Daily, as well as www.cninfo.com.cn
                                                                       Capital Market Department of TCL Technology Group
 Place where this Report is lodged
                                                                       Corporation

IV. Changes to Company Registered Information
 Unified social credit code                                            91441300195971850Y
                                                                       1. In 2019, the Company focused on semi-conductor display
 Changes in main business activities of the Company since going
                                                                       devices by sold smart terminal businesses such as consumer
 public (if any)
                                                                       electronics and household appliances and related supporting


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                                                                          businesses.
                                                                          2. In 2020, the Company acquired 100% equity of Tianjin
                                                                          Zhonghuan Electronics through public delisting, shaping a
                                                                          business structure that focused on semi-conductor display, new
                                                                          energy photovoltaic and semi-conductor materials.
 Changes of controlling shareholder since incorporation (if any)          Not applicable

V. Other information
The independent audit firm hired by the Company
                                                                          Da Hua Certified Public Accountants (Special General
 Name
                                                                          Partnership)
                                                                          Room 1101, Building 7, No. 16 Xi Si Huan Zhong Road,
 Office address
                                                                          Haidian District, Beijing
 Accountants writing signatures                                           Jiang Xianmin and Xiong Xin
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period
√ Applicable □ Not applicable
                Name                         Office address                       Representative               Period of supervision
                                                                                                            The period from December
 Shenwan Hongyuan                        19 Taipingqiao Avenue,
                                                                             Ren Cheng and Mo Kai            22, 2022 to December 31,
 Financing Services Co., Ltd.          Xicheng District, Beijing
                                                                                                                        2023.
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period

□ Applicable   √ Not applicable
VI. Key Accounting Data and Financial Indicators
Indicate whether there is any retrospectively adjusted or restated datum in the table below.
√ Yes □ No
Reason for retrospective adjustment or restatement: In accordance with the Interpretation No. 15 of the Accounting Standards for
Business Enterprises issued by the Ministry of Finance, the Company implemented related requirements and retroactively adjusted
relevant items of the financial statements as at the beginning of the year and the same period of the previous year. Such change in
accounting policies has no material impact on the Company’s financial position and operating results.
                                                                                           2022-
                                                           2021                          Over-2021                   2020
                            2022                                                           Change
                                                Before                                     After         Before
                                                              After adjustment                                           After adjustment
                                              adjustment                                 adjustment     adjustment
 Revenue (RMB)         166,552,785,829      163,540,559,623       163,657,700,477            1.77%    76,677,238,079        76,677,238,079
 Net profit
 attributable to
 the company’s            261,319,451       10,057,443,528        10,064,253,118          -97.40%      4,388,159,018        4,388,159,018
 shareholders
 (RMB)
 Net profits
 attributable to
                        -2,698,210,800        9,437,240,976         9,444,050,566          -128.57%     2,933,248,153        2,933,248,153
 the company’s
 shareholders


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 before non-
 recurring gains
 and losses
 (RMB)
 Net cash
 generated from
 operating              18,426,376,609       32,878,450,437       32,878,450,437        -43.96%         16,698,282,775     16,698,282,775
 activities
 (RMB)
 Basic earnings
 per share                       0.0191               0.7463               0.7468       -97.44%                0.3366              0.3366
 (RMB/share)
 Diluted earnings
 per share                       0.0185               0.7354               0.7359       -97.49%                0.3226              0.3226
 (RMB/share)
 Weighted
 average return                    0.52                26.46                26.48          -25.96                13.75               13.75
 on equity (%)
                                                      The end of 2021                  Change                  The end of 2020
                      The end of 2022           Before                                  After             Before
                                                                After adjustment                                          After adjustment
                                              adjustment                              adjustment         adjustment
 Total assets
                       359,996,232,668      308,733,133,305      308,749,696,062         16.60%        257,908,278,887    257,908,278,887
 (RMB)
 Owners’ equity
 attributable to
 the company’s         50,678,520,477       43,034,234,611       43,041,044,200         17.74%         34,107,795,454     34,107,795,454
 shareholders
 (RMB)
The net profit before or after the deduction of non-recurring gains and losses in the latest three accounting years, whichever is lower,
is negative and the audit report of the latest year shows the company's ability to continue as a going concern
□ Yes √ No
The net profit before or after the deduction of non-recurring gains and losses, whichever is lower, is negative
√ Yes □ No
                     Item                                           2022                                           2021
 Revenue (RMB)                                                             166,552,785,829                                163,657,700,477
 Deduction from revenue (RMB)                                                 4,355,243,194                                  2,714,151,509
 Revenue after deduction (RMB)                                             162,197,542,635                                160,943,548,968
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
                                                                                                                           17,071,891,607
 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
                                                                                                                                    0.0153
 capital above (RMB/share)




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VII. Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Differences in Net Profit and Equity under CAS and IFRS
□ Applicable   √ Not applicable
2. Differences in Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable   √ Not applicable
3. Reasons for Accounting Data Differences Above
□ Applicable   √ Not applicable
VIII. Major Financial Indicators by Quarter
                                                                                                                             Unit: RMB
                                       Q1                            Q2                        Q3                       Q4
 Revenue                              40,566,851,319              43,955,329,809            41,992,680,714             40,037,923,987
 Net profit attributable
 to the company’s                     1,352,533,125                 -689,010,254              -382,858,737               -19,344,683
 shareholders
 Net profits attributable
 to the company’s
 shareholders before                     611,565,003              -1,238,434,388            -1,259,772,878               -811,568,537
 non-recurring gains
 and losses
 Net cash generated
 from operating                        3,863,953,881                 5,152,681,862             3,645,252,917            5,764,487,949
 activities
Indicate whether any of the quarterly financial data in the table above or their summations differs materially from what has been
disclosed in the Company’s quarterly or interim reports.
□ Yes √ No

IX. Non-Recurring Gains and Losses
√ Applicable □ Not applicable
                                                                                                                             Unit: RMB
                                      Item                                              2022               2021              2020
 Gains and losses on disposal of non-current assets (inclusive of impairment
                                                                                     1,757,838,745      -184,525,551     226,829,348
 allowance write-offs)
 Tax refund, credit and reduction arising from approval beyond authority or
 without formal approval documents
 Government subsidies charged to current profits and loss (except for
 government subsidies closely related to the Company’s normal business
                                                                                     1,322,782,937       699,270,673     736,747,146
 which comply with national policies and regulations and are enjoyed on an
 ongoing basis according to certain standard quotas or quantities)
 Fund charges against non-financial enterprises included in current profits and
 losses


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 Gain equal to the amount by which investment costs for the Company to
 obtain subsidiaries, associates and joint ventures are lower than the
                                                                                                       -    40,299,579    292,440,389
 Company’s enjoyable fair value of identifiable net assets of investees when
 making investments
 Profits and losses from exchange of non-monetary assets
 Profits and losses from investment or management assets entrusted to others
 Provision for impairment of assets accrued due to force majeure such as
 natural disasters
 Profits and losses from debt restructuring
 Enterprise restructuring costs, such as spin-off costs in staff arrangement,
 integration, etc.
 Profits and losses from transactions with significantly unfair transaction
 prices that exceed the fair value
 Year-to-date net profits and losses of subsidiaries arising from business
 combinations of entities controlled by a same company
 Profits and losses from contingencies unrelated to the normal operation of
 the Company
 The profits or 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
                                                                                        -127,233,837       238,629,291    350,757,476
 financial assets, marketable financial liabilities and available-for-sale
 financial assets, except for the effective hedging business related to the
 Company’s normal business operation.
 Reversal of provision for impairment of receivables that have been
                                                                                          37,745,528                 -               -
 individually tested for impairment
 Profits and losses from entrusted loans externally
 Profits and losses from changes in the fair value of investment property
 subsequently measured under the fair value model
 The impact of one-time adjustments to current profits and losses made in
 accordance with tax, accounting, and other laws and regulations on current
 profits and losses
 Trustee fee income from entrusted operation
 Non-operating income and expenses other than the above                                 758,599,650        275,789,900      80,764,287
 Other gains and losses that meet the definition of non-recurring gain/loss                            -             -               -


 Less: Corporate income tax                                                             244,386,076         93,176,105    135,130,967
        Non-controlling interests (net of tax)                                          545,816,696        356,085,235      97,496,814
 Total                                                                                2,959,530,251        620,202,552   1,454,910,865
Details of other profit and loss items that meet the definition of non-recurring profits and losses:

□ Applicable   √ Not applicable
Explanation of defining the 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 as recurring profit and loss
items

□ Applicable   √ Not applicable

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                 Part III Management Discussion and Analysis
I. Company-related industry outlook in the reporting period
    Since 2022, the international political and economic patterns have been restructured,
protectionism and geopolitics have intensified the trend of backlash against globalization, and
inflation pressures have led to tightened monetary policies in major developed economies, increasing
uncertainty in global economic development. Facing increasingly severe business environment, TCL
Tech has adhered to its strategic focus and maintained a stable operation.
    During the Reporting Period, TCL Tech achieved a revenue of RMB166.55 billion, a year-on-
year increase of 1.8%; a net profit of RMB1.79 billion, a year-on-year decrease of 88.0%; and a net
profit of RMB260 million attributable to the shareholders of listed companies, and net operating cash
flow of RMB18.43 billion. The main reasons for the decline in the Company’s performance are: the
downturn in the semiconductor display industry, a significant drop of product prices. The Company
achieved a revenue of RMB65.72 billion from the semiconductor display business in 2022, a year -
on-year decrease of 25.5%, with a steady increase in shipments and the market share. The Company
firmly occupied the second largest TV panel market share in the world. The production line for oxide
semiconductor displays positioned as IT products has been put into production in Guangzhou,
supporting the accelerated growth of medium-sized product businesses. Facing the downward cycle
of the industry, TCL CSOT has increased confidence in development, actively optimized its capacity
structure, and improved its business portfolio, well prepared for future development.
    New energy photovoltaics keeps sound momentum under the policy of carbon peaking and
carbon neutrality. However, industry competition was increasingly intensifying, upstream raw
material prices fluctuated, and excess earnings further concentrated in enterprises with stronger
comprehensive competitiveness. With the global industrial restructuring, China's semiconductor
industry has ushered in a golden opportunity of transformation and upgrading. TCL Zhonghuan gives
its leading advantages in product and process technologies into full play, accelerates i ndustrial
transformation, takes a lead in the innovation and upgrading of the manufacturing industry and boosts
high-quality development of China's economy. During the reporting period, TCL Zhonghua n
achieved a revenue of RMB67.01 billion, a year-on-year increase of 63.0%, and a net profit of
RMB7.07 billion, a year-on-year increase of 59.5%.
    The Company has always been committed to the manufacturing industry based on its strategy,
and has gradually built long-term strategic planning and management capabilities, operating
capabilities across cycles, and core competitiveness for global operations.
    Strengthening the competitiveness based on core businesses, optimizing competitive


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strategies and seeking business improvement, and promoting the healthy and sustainable
development of the industry. In the face of economic downturn and intensified industrial
competition, the Company upheld the bottom-line business thinking. During the Reporting Period,
operating cash inflow was RMB18.43 billion, and the capital structure remained stable. Facing
fluctuations in demands for semiconductor displays, the Company emphasizes industry supply-
demand balance and corporate profitability to continuously optimize competitive strategies and
improve economic efficiency. In the fields of new energy photovoltaic and semiconductors, the
Company will continue to give play to the advantages of its advanced capacity and the Industry 4.0
platform, and continue to lead the high-quality development of the industry.
    Technological innovation        driven by forward-looking              research and development,
comprehensively promoting the digital and intelligent transformation, and committed to high-
quality corporate development. The Company focuses on technological productivity and
prospective investment. In 2022, the Company invested RMB10.78 billion in R&D, a year-on-year
increase of 22.9%. The Company filed 659 new international applications for patents under the PCT,
a total of 14,741 applications filed. The Company demonstrates world-leading technological capacity
in the fields such as semiconductor display, new energy photovoltaic and semiconductor materials.
The number of its applications for patents of technologies and material in the field of quantum dot
electroluminescence has reached 2,244, ranking second in the world. The export market share of its
G12 large-sized and highly efficient N-type silicon wafers ranked first in the world. The Company
continues to lead the photovoltaic industry in terms of the process and technology upgrading of
thinning and thin wiring. The Company has deeply integrated digitalization and advanced
manufacturing,   achieved dynamic management throughout the full production process of
semiconductor displays and the entire life cycle of products. The Company takes a lead in the industry
in terms of flexible manufacturing capabilities and quality consistency of new energy photovoltaics,
and continues to promote comprehensive upgrading of industry digitization and intelligence.
    Based on the “dual circulation” strategy, actively exploring overseas markets, and
integrating localized operations into the global industrial chain. Facing adjustments and
restructuring of the global supply chain, the Company has strengthened its market operations in
China, while actively exploring overseas markets. From exporting products to exporting industrial
capabilities, the Company has built a global layout of industrial chains and supply chains. In the field
of semiconductor displays, the India Factory of TCL CSOT has been put into operation, and will
continue to strengthen its global strategy in the production, marketing, and research process in the
future. In the field of new energy photovoltaics, TCL Zhonghuan actively expands its global presence.
An industrial chain system is taking shape with global competitiveness through Maxeon photovoltaic

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cell and module factories built in Malaysia, the Philippines, Mexico, and other places.
    In a new round of technological reform and industrial upgrading, the digital economy keeps
growing around the world, the "Carbon Peaking and Carbon Neutrality" trend accelerates the new
energy transformation, the semiconductor industry continues to see an increase of localization, and
China's technology industry ushers in a golden opportunity of rapid development. Facing the
opportunities, the Company will adhere to the bottom line of business, drive development with
innovation, and actively improve the global industrial layout. TCL Tech will continue to focus on the
national strategic industry that emphasizes high technology, heavy assets, and a long cycle. With the
mission and vision of “leading technology and mutually beneficial cooperation”, TCL Tech will meet
the requirements of "improving operational quality and efficiency, enhancing strengths to shore up
weaknesses and accelerating global expansion as well as innovation-driven development” to take a
lead in the world.
II. Main businesses of the Company during the reporting period
     Based on the semiconductor display business, new energy photovoltaic and semi-conductor
materials as the main business, the Company will continue to optimize its business structure, and
further focus on its main businesses, to achieve the strategic goal of global leadership in its two core
industries.

                                                            TCL TECH



              Semi-conductor        New energy photovoltaic & Semi-         Industrial finance &               Other
                 display                  conductor materials                   investment
                                                   材料
                                    Zhonghuan         Zhonghuan            T CL         TCL Capital   Highly           TPC
        TCL CSOT      China Ray
                                    Photovoltaic      Advanced           Financial


          Juhua          Moka          T CL           Xinhuan/Xi
                      T echnology    Microchip           nhua



     (I) Semiconductor display business
     In 2022, the global semiconductor display market experienced significant ups and downs. Due
to multiple impacts such as geopolitical conflicts and inflation, the demand from the end-users for
displays in major markets dropped significantly, product prices hit a record low, and the panel
industry suffered operating losses.
     During the Reporting Period, TCL CSOT further consolidated its position in the industry,
achieved a sales area of 42.75 million square meters, an increase of 8.3% year-on-year. TCL CSOT
ranked second in the world in terms of the market share of TV panels. Affected by the decline in
prices of major display products, TCL CSOT earned a revenue of RMB65.72 billion from the

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semiconductor display business, a year-on-year decrease of 25.5%, and saw a full-year loss in 2022.
In response to the challenges, TCL CSOT actively made changes, focused on extreme cost efficiency,
improved capacities of risk control and cyclic resilience, and achieved operating cash flow of
RMB14.76 billion. TCL CSOT will accelerate the adjustments to product structures, actively explore
new customers, and become a leader of comprehensive displays in full sizes.
     In its large-size product business, TCL CSOT has maintained scale leadership, and has
consolidated its leading position in TV panels with a high-end product strategy, and vigorously
developed commercial displays such as interactive whiteboards, digital signs, and video walls.
Three 8.5-generation line factories t1, t2, and t10, and two 11-generation line factories t6 and t7, have
maintained efficient operations. TCL CSOT ranked second in the world in terms of the scale of the
high-generation lines, with the market share of mainstream products leading the world. TCL CSOT
ranked first in the world in terms of the scale of 55-inch and 75-inch products, and second in the
world in terms of the share of 65-inch products. TCL CSOT played its advantages in high-generation
lines and cutting-edge technology and focused on high-end panel products, ranked top in the world
in terms of sales performance of 8K/120HZ products. TCL CSOT has become a major supplier for
leading customers in the commercial markets such as interactive whiteboards, digital signs, and video
walls. TCL CSOT ranked first in the world in terms of the market share of interactive whiteboards
and third in the world in terms of the market share of video walls. Its product and customer structures
have been continuously optimized.
     In its medium-size product business, TCL CSOT has accelerated the expansion of new
business such as IT and vehicle screen products while improving the distribution of production
capacity to create a new growth engine. In order to meet market demand, the Company has
optimized its capacity layout, improved its product series, and strengthened customer development,
achieving rapid growth in the high-end IT market. The Company ranked first in the world in terms of
the market share of e-sports displays, second in the world in terms of the market share of the LTPS
laptops, and first in the world in terms of the market share of the LTPS tablet PCs. In terms of on-
board products, the Company made breakthroughs in many key customers at home and abroad, and
the shipment volume and revenue scale maintained rapid growth. The 6-generation LTPS production
line is in orderly progress, and the Company’s overall LTPS capacity scale and comprehensive
competitiveness will rank top in the world. The production line t9 for new oxide semiconductor
displays positioned for businesses such as medium-sized IT and automotive, has been put into
production. Combined with the product technologies and customer resources previously accumulated
by the Company, the Company’s medium-sized product business strategy will further bring a new
growth engine.

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     In its small-size product business, TCL CSOT focused on differentiation technologies, such
as flexible OLED folding and LTPO, while expanding VR/AR new displays to optimize its
product and customer structures. TCL CSOT ranked third in the world in terms of the shipment
volume of LTPS mobile panels from the t3 production line. It independently developed industry-
leading 1512 PPI LCD-VR screens and actively exploited new business areas. The capacity of the
second and third phases of the t4 OLED has been in progress as scheduled, with smooth technological
iteration and new product development. Several new products, such as folding products, Camera
Under Panel, and LTPO technology, have completed SoP and delivery. The shipment of medium and
high-end products has continued to increase, and the customer structure has further diversified, laying
a foundation for business improvement.
     In the industry’s downward cycle over the past seven quarters, the inefficient capacity has
continued to be eliminated, bringing opportunities for industry restructuring and integration, and
further optimizing the competitive patterns. Also, leading manufacturers in the display industry have
accelerated destocking under the goal of promoting the supply-demand balance and improving
profitability. In the fourth quarter of 2022, industry inventory entered a healthy level. At present, the
prices of major products have stably rebounded. As the demand of downstream end customers for
restocking has increased, the prices of large-sized display products have risen.
     Looking into the future, the global economy remains resilient, and the Company is firmly
optimistic about the development trend and industrial value of semiconductor displays as a core
information carrier and main interactive interface in the wave of the digital economy. On the other
hand, the supply side tends to stabilize. Leading enterprises continue to strengthen their technological
advantages and economies of scale, the display industry sees further increasing concentration, the
industrial chain reaches a new balance in terms of pricing, and the return on investment in
semiconductor displays will steadily recover.
     Based on efficiency and effectiveness, TCL CSOT will consolidate its high-end intelligent
manufacturing capabilities through digitalization construction, and improve its comparative
competitiveness. TCL CSOT will continue to optimize its business portfolio, adhere to the high-end
product strategy, consolidate its global leading position in large-sized product businesses, improve
the layout and capacity of medium-sized products, enhance the structure and business conditions of
small-sized product customers, and accelerate its transformation and upgrading from a leader of large-
sized displays to a leading enterprise of full-sized displays. TCL CSOT will continue to increase
investment in research and development, and work with industry chain partners to jointly build an
industrial ecosystem around new display technologies such as printed OLED, Miniled, Microled, and
Silicon-based OLED micro displays.

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     (II) New energy photovoltaic and semiconductor materials business
    During the Reporting Period, under the background of the continuous advancement of carbon
neutrality goals and the shortage of energy caused by geopolitical conflicts, the global energy
structure continued to shift to renewable energy, and the photovoltaic industry maintained rapid
development. In response to the price fluctuation of materials on the upstream of the supply chain,
the Company improved its industrial layout, built operational barriers with its technical strength, and
grasped the initiative in the process of rapid changes of the industry. The new energy photovoltaic
business of the Company has comprehensively moved towards global leadership. During the
reporting period, TCL Zhonghuan maintained a high growth rate of performance, achieved a revenue
of RMB67.01 billion, a year-on-year increase of 63.0%, and a net profit of RMB7.07 billion, a year-
on-year increase of 59.5%.
    Releasing advanced capacity of photovoltaic materials, optimizing the product structure ,
and achieving a rapid growth in production and sale scales. During the Reporting Period, the
Company’s G12 advanced capacity continued to expand, and the capacity of the Phase VI 50GW
(G12) monocrystalline silicon materials in Ningxia increased capacity; the smart factory for slicing
monocrystalline silicon wafers in Tianjin (25GW) and the smart factory for slicing monocrystalline
silicon wafers in Yixing (30GW) were put into operation, comprehensively improving the advantages
of economies of scale. As at the end of the Reporting Period, the Company’s total capacity for
monocrystalline silicon increased to 140 GW, among which, the G12 advanced capacity accounted
for over 90%. During the Reporting Period, the Company ranked first in the world in terms of the
sales market share of photovoltaic silicon wafers, first in the world in terms of the market share of
G12, first in the world in terms of the sales market share of N-type silicon wafers. The production
and sales scales remained leading in the industry.
    Taking a lead in products such as large-sized, thinned, and N-type silicon wafers, as well as
the development of photovoltaic materials and technologies based on R&D and process
capacity. With high-power components keeping growing on the downstream and the rapid increase
in the penetration rate of large-sized silicon wafers, the Company, as the industry leader in large-
sized and thinned wafers, continued to expand its G12 product advantages, led the industry in terms
of monthly production per furnace and the number of unit wafers produced per kilogram, and
effectively promoted cost reduction and efficiency increase in the industrial chain. With the
technological evolution of downstream cells, N-type products have entered an accelerated SoP period,
and the Company has built deep technological barriers in the field of N-type silicon materials. The
Company consolidated its leading position in the industry for many years in terms of N-type silicon
wafers sales in the global market, and excessive returns are expected from future technological

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changes.
    Relying on the “G12 + Laminated Tile” dual technology platform and the leading Industry
4.0 System, transforming manufacturing modes in the photovoltaic industry, and jointly
building an intellectual property ecosystem with partners. Based on the dual technology platform
of "G12 Silicon Wafers + Laminated Tile Module", the Company's laminated tile module products
have significant performance advantages with a rapid growth in scale. The Company continues to
deepen the application of Industry 4.0 in all the industrial links, and implement automation and
intelligent management throughout the process, with labor productivity far exceeding the industry
average. The Industry 4.0 significantly improves the product quality and consistency, and
continuously enhances flexible manufacturing capabilities. The comprehensive introduction of the
Industry 4.0 System will provide the Company with comparative competitiveness in terms of
localized manufacturing worldwide. The Company will work with partners such as MAXEON to
jointly build an intellectual property ecosystem, and collaborate on innovation and expand
differentiation competitiveness, to lay a solid foundation for the global strategic layout of the
photovoltaic industry.
    The transformation of the global energy structure injects long-term development vitality into the
photovoltaic industry, and the continuously improved economic efficiency of photovoltaic power
generation further stimulates market demand. The global installed photovoltaic capacity is expected
to exceed the expected capacity. Looking into the future, TCL Zhonghuan will continue to promote
technological changes related to photovoltaic materials such as large-sized, thinned, and N-type
silicon wafers, create an ecosystem of cell and module industries with differentiation strategies,
deepen the application of the Industry 4.0 System and flexible manufacturing, strengthen its core
competitive advantages globally, and consolidate its leading position in the new energy photovoltaic
industry.
    TCL Tech will continue to focus on semiconductor display, new energy photovoltaic, and
semiconductor material businesses to achieve the strategic goal of global leadership.
III. Analysis of core competitiveness
    Over 40 years of extraordinary development, TCL has grown from a small local enterprise to
China’s leading group in the high-tech manufacturing industry. During this time, we have
accumulated experience and confidence from continuously crossing industry cycles. The year 2022
was full of unexpected changes and challenges for TCL. We continued to focus on our strategy and
took on challenges in adverse circumstances, including economic downturns and intensified industrial
competition. We strengthened our capacity for mitigating operational risks in line with the work
requirements of “improving operational quality and efficiency, enhancing strengths to shore up

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weaknesses and accelerating global expansion as well as innovation-driven development”. Currently,
the Company has developed a business structure based on semi-conductor display devices, new
energy photovoltaic materials as well as semi-conductor materials, while its core competitiveness and
sustainable development capability have continuously improved.
    Leading economies of scale: ongoing capacity growth and globally leading position across
multiple product markets
    As a globally leading enterprise in semi-conductor displays, the Company continues to expand
production capacity through endogenous growth and external acquisition: through the construction
of two 8.5-gen lines, TCL CSOT has gained a firm foothold in the TV panel market; subsequently,
two 6-gen lines successfully entered the small-size panel market; in recent years, through investment
and construction of two 11-gen lines and the acquisition of the Suzhou Samsung Factory t10
production line, we have further expanded our large-size panel production capacity and maintained a
globally leading position for large-sized panels. In 2022, TCL CSOT’s Guangzhou t9 project was
launched and put into operation. The Wuhan t3 project expanded its capacity in an orderly manner,
with increased investment in medium-sized products such as high value-added IT as well as business
displays and accelerated strategic expansion for all display products. At present, the market share of
TCL CSOT TV panels by shipment area ranks second globally. LTPS laptops rank second globally,
LTPS mobile phone panels rank third globally, e-sports panels rank first globally, and IWB ranks
first in market share.
    The Company will further strengthen its core competitive advantage based on economies of scale
and supply chain synergy. With an improved supply-demand relationship and an optimized
competitive landscape in the industry, TCL CSOT will usher in continuous leadership in areas of
advantage as well as rapid expansion in vulnerable areas while consolidating its industry status and
comprehensive competitiveness.
    Technological and ecological leadership: Increasing investment in R&D, active expansion into
new display technologies and materials
    The Company, focusing on basic materials, next-generation display materials, key equipment in
new manufacturing processes and other fields for its ecological layout, has constructed a TCL
ecosystem within the display market, so as to establish a leading advantage based on next-generation
display technology. In the display market, TCL led the establishment of two national innovation
centers. A preliminary outline for the ecosystem of next-generation display technology has taken
shape, promoting industrial technology development and assisting in the implementation of CSOT’s
technology strategies. TCL is also continuously coordinating the construction of national technology
platforms in other fields and assisting in the development of key technologies related to TCL’s

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industry segments.
    In 2022, the Company ranked forefront among mainland Chinese enterprises for accumulated
patent applications with 14,741 PCT patents and ranked second globally in terms of quantum dot
patents. More than half of them are invention patents, covering 14 fields such as quantum dot
materials, backlights and panels, which provide thorough patent coverage. The Company is
committed to building a leading edge in next-generation display technology and overcoming
bottlenecks in future commercial technology applications.
    Leading management: TCL CSOT aims to be a global leader and traverse cycles using
comparative competitiveness
    Since SoP in 2011, TCL CSOT has weathered several rounds of large fluctuation cycles and
maintained comparative competitiveness in the display industry by relying on extreme cost efficiency
and lean management. By relying on efficient production line layout and increased capacity, the
Company has further improved the line utilization rate and product scheduling efficiency through
advantages in industrial chain integration and locking in strategic customers. The Company has
promoted end-to-end cost and expense control through refined management and extreme cost
efficiency measures, so as to build its comparative competitiveness in the industry. Despite a severe
industry downturn and ongoing price reductions of major products in 2022, TCL CSOT further played
to its advantages in management efficiency, industrial chain control, intelligent and digital
development, and relied on its advantages in core capabilities throughout the industrial development
cycle to lead the industry.
    New strategic pathways: Grasping new opportunities from the rapid development of
semiconductors and photovoltaics
    On the basis of enterprise development and national planning for strategic emerging industries,
the Company actively seeks new strategic development pathways that are technology-intensive and
capital-intensive with a long development cycle, so as to strengthen and fully utilize TCL’s core
competitiveness. In July 2020, the Company successfully entered the new energy photovoltaic
industry by delisting Zhonghuan. Since 2022, TCL Zhonghuan has implemented a series of strategic
operation measures such as industry coordination, optimization of operational efficiency and
empowerment through management experience. TCL Zhonghuan has gradually enhanced its abilities
in areas such as strategy, operation, and resource allocation. Driven by the factors of high industry
prosperity and rapid expansion of production capacity, TCL Zhonghuan has further consolidated its
leading position in the industry, realized high-quality and rapid growth performance, and gradually
grown into one of the main engines for performance growth of TCL Technology.
    Upgrading organizational culture: The mission “Leading Technology and Mutually Beneficial

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Cooperation” leads the Company into a new development stage
      Since 2022, the Company has proposed a new mission“Leading Technology and Mutually
Beneficial Cooperation” and is committed to building an organizational culture that emphasizes
“Change, Innovation, Responsibility and Excellence”. The Company continued to build the capacity
of its management team, strengthen its high-end talent pool and empower employees at the middle
and entry level by developing competent specialists, reducing personnel redundancy and optimizing
the organizational structure with quality emphasized over quantity. The Company also ensured proper
recruitment and development of international talents, strengthened the integration of overseas
organizational culture and continuously improved on building international organizational
capabilities. TCL will continue to invest in fields closely related to human life and build its leading
advantages in technology and products to deliver a wonderful experience and better life for humanity.
We will uphold the concept of sustainable development based on a people-oriented approach, while
promoting mutually beneficial development. We are dedicated to the environmental friendliness,
employee engagement, social trust, as well as the harmonious development between humanity,
nature, and society. We will also work with stakeholders to build an open and mutually beneficial
industry ecosystem and value healthy competition and integrated development on a basis of open
cooperation and mutually beneficial development with partners.
IV. Analysis of Core Businesses
1. Overview
See “Part III Management Discussion and Analysis”.
2. Revenue and costs
(1) Breakdown of operating revenue
                                                                                                                Unit: RMB
                                             2022                                      2021
                                                                                                                Change
                                                     As % of total                            As % of total
                                 Amount                                    Amount                                 (%)
                                                     revenue (%)                              revenue (%)
 Total                         166,552,785,829                  100%     163,657,700,477                100%      1.77%
 By operating division
 Semi-conductor display         65,717,154,752               39.46%       88,220,061,837              53.91%     -25.51%
 New energy photovoltaic        67,010,157,025               40.23%       41,104,685,049              25.12%      63.02%
 Distribution business          31,847,803,417               19.12%       31,932,016,149              19.51%      -0.26%
 Other businesses and
                                 1,977,670,635                  1.19%      2,400,937,442               1.47%     -17.63%
 internally offset accounts
 By product category
 Semi-conductor display
                                65,717,154,752               39.46%       88,220,061,837              53.91%     -25.51%
 devices




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 New energy photovoltaic &
                                         67,010,157,025             40.23%       41,104,685,049              25.12%        63.02%
 semi-conductor materials
 Distribution of electronics             31,847,803,417             19.12%       31,932,016,149              19.51%         -0.26%
 Other businesses and
                                          1,977,670,635                1.19%      2,400,937,442               1.47%       -17.63%
 internally offset accounts
 By operating segment
 Mainland China                         119,139,823,459             71.53%      104,781,994,802              64.03%        13.70%
 Overseas (including Hong
                                         47,412,962,370             28.47%       58,875,705,675              35.97%       -19.47%
 Kong)
 Distribution mode
 Direct sales                           140,148,331,286             84.15%      135,409,147,210              82.74%          3.50%
 Distribution                            25,652,437,925             15.40%       25,981,764,486              15.88%         -1.27%
 Dealer                                     752,016,618                0.45%      2,266,788,781               1.39%       -66.82%
(2) Operating division, product category, region or sales mode contributing over 10% of the revenue or operating profit

√ Applicable □ Not applicable
                                                                                                                         Unit: RMB
                                                                                                                       Change in
                                                                                  Change in       Change in cost
                                                                 Gross profit                                         gross profit
                              Revenue          Cost of sales                    revenue year-     of sales year-
                                                                   margin                                             margin year-
                                                                                 on-year (%)       on-year (%)
                                                                                                                      on-year (%)
 By operating division
 Semi-conductor
                          65,717,154,752       65,148,141,621           0.87%         -25.51%             -2.05%           -23.74%
 display
 New energy
                          67,010,157,025       55,066,992,255          17.82%          63.02%            71.07%             -3.86%
 photovoltaic
 Distribution
                          31,847,803,417       30,574,483,912           4.00%          -0.26%             -0.65%             0.38%
 business
 By product category
 Semi-conductor
                          65,717,154,752       65,148,141,621           0.87%         -25.51%             -2.05%           -23.74%
 display devices
 New energy
 photovoltaic &
                          67,010,157,025       55,066,992,255          17.82%          63.02%            71.07%             -3.86%
 semi-conductor
 materials
 Distribution of
                          31,847,803,417       30,574,483,912           4.00%          -0.26%             -0.65%             0.38%
 electronics
 By operating segment
 Mainland China          119,139,823,459      108,166,269,230           9.21%          13.70%            26.39%             -9.11%
 Overseas
 (including Hong          47,412,962,370       43,759,219,750           7.71%         -19.47%             -3.98%           -14.89%
 Kong)
 Distribution mode
 Direct sales            140,148,331,286      126,351,353,885           9.84%           3.50%            21.59%            -13.41%
 Distribution             25,652,437,925       24,967,954,738           2.67%          -1.27%             -1.28%             0.01%


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 Dealer                          752,016,618         606,180,357              19.39%             -66.82%              -68.83%          5.18%
(3) Whether Revenue from Product Sales is Higher than Service Revenue
√ Yes □ No
  Operating division                 Item                   Unit                     2022                    2021               Change (%)
                                                   10,000 square
                          Sales                                                              4275                    3949              8.25%
                                                   meters
 Semi-conductor                                    10,000 square
                          Production volume                                                  4230                    4058              4.23%
 display                                           meters
                                                   10,000 square
                          Inventory                                                           124                     170             -26.81%
                                                   meters
                          Sales                    10,000 sets                               1299                     904             43.68%
 Module and
                          Production volume        10,000 sets                               1317                     941             39.87%
 finished machine
                          Inventory                10,000 sets                                 66                      49             36.65%
                          Sales                    10,000 sets                         1,064,653                 821,234              29.64%
 Photovoltaic
                          Production volume        10,000 sets                         1,084,730                 824,803              31.51%
 silicon wafer
                          Inventory                10,000 sets                              32,102                  12,025           166.97%
                                                   Million square
                          Sales                                                               744                     752              -1.03%
                                                   inches
 Other silicon                                     Million square
                          Production volume                                                   743                     751              -1.05%
 materials                                         inches
                                                   Million square
                          Inventory                                                            24                      25              -1.61%
                                                   inches
                          Sales                    10,000 kWh                           123,105                     81,031            51.92%
 Energy                   Production volume        10,000 kWh                           123,105                     81,031            51.92%
                          Inventory                10,000 kWh
                          Sales                    MW                                        6,607                   4,166            58.58%
 Photovoltaic
                          Production volume        MW                                        6,619                   4,763            38.98%
 module
                          Inventory                MW                                         639                     628              1.84%
Explanation of why any financial indicator in the table above registered a year-on-year change of over 30%
The changes are mainly caused by the increase in the scale of the Company's new energy photovoltaic business.
(4) Execution Progress of Major Signed Sales Contracts in the Reporting Period

□ Applicable    √ Not applicable
(5) Breakdown of operating cost
Operating division
                                                                                                                                    Unit: RMB
                                                             2022                                     2021
    Operating
                              Item                                    As % of                                   As % of          Change (%)
      division                                   Amount                                     Amount
                                                                    operating cost                           operating cost
                       Materials,
 Semi-conductor        salary,
                                               65,148,141,621              42.88%       66,509,502,371                50.71%           -2.05%
 display               depreciation
                       etc.
 New energy            Materials,
                                               55,066,992,255              36.25%       32,190,397,141                24.54%          71.07%
 photovoltaic          salary,


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                                                            Full Text of the Annual Report 2022 of TCL Technology Group Corporation


                       depreciation
                       etc.
 Distribution          Finished goods
                                           30,574,483,912            20.12%     30,775,267,445             23.46%             -0.65%
 business              etc.
                       Materials,
                       salary,
 Other                                      1,135,871,191               0.75%     1,681,146,797             1.28%            -32.43%
                       depreciation
                       etc.
Product category


                                                                                                                           Unit: RMB
                                                       2022                                  2021
      Product
                              Item                               As % of                               As % of         Change (%)
     category                                Amount                                Amount
                                                              operating cost                        operating cost
                       Materials,
 Semi-conductor        salary,
                                           65,148,141,621            42.88%     66,509,502,371             50.71%             -2.05%
 display devices       depreciation
                       etc.
                       Materials,
 New energy            salary,
                                           55,066,992,255            36.25%     32,190,397,141              24.5%             71.07%
 photovoltaic          depreciation
                       etc.
 Distribution of       Finished goods
                                           30,574,483,912            20.12%     30,775,267,445              23.5%             -0.65%
 electronics           etc.
                       Materials,
                       salary,
 Other                                      1,135,871,191               0.75%     1,681,146,797              1.3%            -32.43%
                       depreciation
                       etc.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
For 2022, there are 36 newly-included consolidated subsidiaries (36 newly incorporated) and 5 newly-excluded consolidated
subsidiaries (4 transferred and 1 de-registered).
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period

□ Applicable   √ Not applicable
(8) Major Customers and Suppliers
Major Customers
 Total sales of top five customers (RMB)                                                                              50,092,171,968
 Total sales of top five customers as % of total sales of the
                                                                                                                              30.88%
 Reporting Period (%)
 Total sales of related parties among top five customers as % of
                                                                                                                               6.54%
 total sales of the Reporting Period (%)
Top five customers
            Serial No.                         Customer                    Sales revenue (RMB)           As % of total sales revenue
                   1                          Customer A                             14,080,676,825                            8.68%


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                   2                         Customer B                              12,876,104,816                              7.94%
                   3                         Customer C                              10,611,856,734                              6.54%
                   4                         Customer D                                6,452,412,436                             3.98%
                   5                         Customer E                                6,071,121,157                             3.74%
              Total                                --                                50,092,171,968                              30.88%
Other information about major customers: For sales transactions between the Company and its related parties, see provisiona l
announcements disclosed by the Company on the designated media for information disclosure.
Major suppliers
 Total purchases from top five suppliers (RMB)                                                                           37,176,674,116
 Total purchases from top five suppliers as % of total purchases
                                                                                                                                 25.62%
 of the Reporting Period (%)
 Total purchases from related parties among top five suppliers as
                                                                                                                                       -
 % of total purchases of the Reporting Period (%)
Top five suppliers
                                                                         Purchase in the Reporting
            Serial No.                      Supplier name                                                As % of total purchases (%)
                                                                              Period (RMB)
                   1                         Supplier A                              11,688,855,063                              8.06%
                   2                         Supplier B                                7,215,847,792                             4.97%
                   3                         Supplier C                                7,168,835,392                             4.94%
                   4                         Supplier D                                6,322,022,992                             4.36%
                   5                         Supplier E                                4,781,112,877                             3.29%
              Total                                --                                37,176,674,116                              25.62%
Other information about major suppliers
□ Applicable √ Not applicable

3. Expense
                                                                                                                             Unit: RMB
                                     2022                        2021                    Change (%)            Main reason for change
 Selling expenses                     1,950,527,877                1,919,285,105                       1.63%
                                                                                                               Primarily because the
 Administrative                                                                                                semiconductor display
                                      3,540,610,990                4,393,319,922                     -19.41%
 expenses                                                                                                      business was affected
                                                                                                               by the industry cycle
 Financial expenses                   3,422,894,839                3,727,915,281                     -8.18%
                                                                                                               Primarily due to the
 R&D expenses                         8,633,638,171                7,236,340,804                     19.31%    increase in R&D
                                                                                                               investment

4. R&D investments
√ Applicable □ Not applicable
                                                                                                               Expected influence on
    Main R&D project
                                   Purpose                     Progress                  Preset goals          the future development
            name
                                                                                                                   of the Company
 LCD panel ultimate        In search of ultimate        Realized industrial        Add CSOT’s image           Further enhance
 framework                 simplification via panel     transformation             quality improvement IP      product



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                                                     Full Text of the Annual Report 2022 of TCL Technology Group Corporation


development and          and overall machine                                to SOC to optimize         competitiveness
product application      design for newly                                   system architecture of
V1.0                     defined architecture                               compact drive chips
                         Propose high-                                                                 Implement the "Carbon
                         penetration and high                                                          Peaking and Carbon
H-HVA energy             image quality                                      Improve the                Neutrality" strategy,
efficiency               technology, namely H-     Development has been     transmittance, energy      commit to building a
improvement and          HVA. Expand               completed on several     savings and emissions      new ecological
qualitative change       advantage in leading      products.                output of display          industry with
development              energy efficiency to                               devices                    “Ecological Priority
                         obtain technical                                                              and Green
                         leverage.                                                                     Development”.
                                                                                                       Improve CSOT’s
                         Develop an ultra-low                               Develop ultra-low
                                                                                                       popularity and product
                         frequency display                                  frequency display
Research and                                                                                           competitiveness in the
                         technology in the field                            technology, gain
development of the                                                                                     field of wearable
                         of wearable displays to                            customer recognition
0.016Hz ultra-low                                  Already implemented                                 displays, generate
                         reduce power                                       and enter
frequency refresh                                                                                      interest of-customers
                         consumption and                                    corresponding high-
display technology                                                                                     from multiple ends and
                         achieve longer battery                             end markets to earn
                                                                                                       effectively expand the
                         life.                                              greater profits.
                                                                                                       customer base.
                         Committed to
                         investment in research
                                                                                                       Improve product
                         and development of a
Research and                                                                Reduce power               competitiveness,
                         low-frequency and         Some functions have
development of                                                              consumption and            maximize cost
                         low-power technology      been delivered to the
AMOLED low-                                                                 achieve                    effectiveness and
                         to meet the strong        product development
frequency LTPS                                                              high/medium/low-end        enhance the core
                         demand on mobile          department for trials.
technology                                                                  product differentiation.   competitiveness of the
                         platforms for low-
                                                                                                       Company’s products.
                         power display
                         technologies.
                                                                            Develop IGZO
                         Investigate the IGZO
                                                   Development of the       internally-compensated     Open a new future
Research and             internally-compensated
                                                   IGZO internally-         IJP OLED folding           market for AMOLED
development of the       IJP OLED technology
                                                   compensated IJP          laptop products with       IGZO and traverse the
IJP-OLED internal        based on the 17”
                                                   OLED flexible folding    the potential for          OLED IGZO
compensation             medium-sized flexible
                                                   laptop technology has    successful                 technology in NB-
technology platform      OLED technology
                                                   been completed           industrialization of       MNT-TV products.
                         platform project.
                                                                            development results.
                         For TV interaction, in                             Gesture interaction        Contribute product
Flexible-control         addition to remote                                 allows users to control    selling points in
                                                   Realized industrial
multimodal interactive   control and voice                                  TVs, which offsets the     multimodal
                                                   transformation
applications             control, intelligent                               shortcomings of voice      applications to the
                         gesture control opens                              control in a noisy         industry, improve the



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                                                      Full Text of the Annual Report 2022 of TCL Technology Group Corporation


                         up a new method of                                   environment. It is easy    Company’s own
                         control. The                                         to learn, convenient to    technical strength,
                         application uses                                     operate and covers         avoid additional
                         algorithms                                           multiple scenarios.        licensing fees arising
                         independently                                                                   from third-party
                         developed by the                                                                algorithms and reduce
                         Industry Research                                                               product costs
                         Institute to optimize
                         five-finger and fist
                         gestures.
                                                                              The intelligent
                                                                                                         Complement
                                                                              experience has been
                                                                                                         independent-research
                                                                              improved in terms of
                                                                                                         capability of the NLP
                                                                              the experience of voice
                         Intelligent voice          The system has been                                  and gain the ability to
                                                                              assistant products, and
 Conversational voice    terminal equipment can     launched and applied                                 expand across vertical
                                                                              the development cycle
 interaction system      flexibly and accurately    to some end-user                                     domains. Replace
                                                                              for interactive dialog
                         respond to users’ needs   products                                             Baidu Solutions and
                                                                              skills has been reduced
                                                                                                         master decision-
                                                                              due to the efficiency of
                                                                                                         making in the central
                                                                              technology research
                                                                                                         voice control business.
                                                                              and development
                         Meet the market                                      Improve the quality of
                         requirements for                                     monocrystalline
 Research and                                       Thermal field
                         technical indicators of                              silicon, meet customer
 development of the                                 optimization and                                     Enhance the core
                         the type-N G12                                       needs, further improve
 new energy                                         process design has                                   competitiveness of the
                         monocrystalline silicon                              efficiency, reduce costs
 photovoltaic type-N                                been completed, and                                  company's main
                         technology and                                       and achieve an increase
 G12 monocrystalline                                the SoP has been                                     business
                         strengthen the                                       in market share of the
 silicon technology                                 achieved
                         Company's core                                       type-N G12
                         competitiveness                                      monocrystalline silicon
                         Research and develop
                                                    Equipment upgrading
                         ultra-thin solar silicon
                                                    and cutting process       Achieve 150μm thick
                         wafer cutting                                                                   Enhance the core
 R&D of 210 silicon                                 design have been          SoP target of silicon
                         technology to meet the                                                          competitiveness of the
 wafer slicing                                      completed. SoP has        wafer; and complete
                         demand for thin film in                                                         company's main
 technology                                         been realized for         130μm thick technical
                         the downstream market                                                           business
                                                    150um and 130um G12       reserve of silicon wafer
                         and improve unit
                                                    silicon wafers.
                         output
                                                    Mass production has
 R&D on                  Meet the market            been realized for 12-                                Enhance the core
                                                                              Increase the market
 semiconductor 12-inch   demand for large-size      inch silicon wafers for                              competitiveness of the
                                                                              share of semiconductor
 silicon wafer           silicon wafers of 12-      power devices, logic                                 Company's semi-
                                                                              12-inch silicon wafer
 technology              inch integrated circuits   devices and memory                                   conductor materials
                                                    devices
R&D personnel

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                                               2022                             2021                               Change (%)
 Number of R&D Employees                                  11,979                            10,517                              13.90%
 As % of R&D Employees (%)                               17.16%                           16.14%                                 1.02%
 Education
 PhD                                                         231                                 202                            14.36%
 Master                                                     2,442                               2,081                           17.35%
 Bachelor’s degree and others                              9,306                               8,234                           13.02%
 Age
 Under 30 years old                                         7,286                               5,730                           27.16%
 30~ 40 years old                                           4,280                               4,394                           -2.59%
 Over 40 years                                               413                                 393                             5.09%
R&D investments
                                                                       2022                         2021                Change (%)
 R&D investment amount (RMB)                                           10,778,414,851                   8,772,389,079           22.87%
 R&D investments as % of total revenue (%)                                     6.47%                          5.36%              1.11%
 Capitalization amount of R&D investments (RMB)                         4,287,426,803                   3,813,925,123           12.42%
 Capitalization amount of R&D investments as % of total
                                                                              39.78%                         43.48%             -3.70%
 revenue (%)
Reasons and impacts of major changes in the composition of R&D personnel of the Company
□ Applicable √ Not applicable
Reasons for significant changes in R&D investment as % of total revenue compared with the previous year
□ Applicable √ Not applicable
Reasons for significant changes in R&D investments capitalization and rationality explanation
□ Applicable √ Not applicable

5. Cash Flow
                                                                                                                            Unit: RMB
               Item                            2022                             2021                               Change (%)
 Sub-total of cash generated
                                                 155,632,096,991                  153,026,874,325                                1.70%
 from operating activities
 Sub-total of cash used in
                                                 137,205,720,382                  120,148,423,888                               14.20%
 operating activities
 Net cash generated from
                                                  18,426,376,609                   32,878,450,437                               -43.96%
 operating activities
 Sub-total of cash generated
                                                  51,431,426,776                   43,772,408,329                               17.50%
 from investment activities
 Subtotal of cash used in
                                                  98,267,398,620                   77,405,450,301                               26.95%
 investing activities
 Net cash generated from
                                                 -46,835,971,844                  -33,633,041,972                               -39.26%
 investing activities
 Sub-total of cash generated
                                                 113,655,272,732                   75,934,217,326                               49.68%
 from financing activities
 Subtotal of cash used in
                                                  82,254,617,585                   63,151,712,744                               30.25%
 financing activities



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 Net cash generated from
                                                       31,400,655,147                       12,782,504,582                           145.65%
 financing activities
 Net increase in cash and cash
                                                           3,593,919,427                    11,873,288,084                           -69.73%
 equivalents
Explanation of why related data has significant changes year-on-year:
Net cash generated from operating activities: Primarily because the semiconductor display business was affected by the industry cycle;
Net cash generated from investing activities: Primarily due to the increase in project investment;
Net cash generated from financing activities: Primarily due to the increase in scale of financing
Explanation of the significant difference between the net cash flow generated by the Company's operating activities and the net profit
of the current year during the reporting period
The large difference between the net cash flow generated by the Company's operations and the net profits of the current year is primarily
caused by factors such as depreciation, amortization and impairment of the Company's assets during the Reporting Period.

V. Analysis of Non-Core Businesses
√ Applicable □ Not applicable
                                                                                                                                  Unit: RMB
                                          As % of gross
                          Amount                                                         Source                            Sustainability
                                                  profit
 Asset                                                             Falling price of inventory write-off in line with
                        3,486,522,865                329.84%                                                                    No
 impairment                                                        market
 Non-operating
                          790,111,708                 74.75%       Primarily government grants and others                       No
 income
 Non-operating
                          152,071,435                 14.39%                                                                    No
 expense

VI. Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
                                                                                                                                  Unit: RMB
                                The end of 2022                             Beginning of 2022
                                                                                                             Change in      Main reason for
                                           As % of total                                 As % of total
                           Amount                                     Amount                              percentage (%)        change
                                            assets (%)                                    assets (%)
                                                                                                                           No significant
 Monetary assets         35,378,501,261               9.83%         31,393,692,485              10.17%            -0.34%
                                                                                                                           change
 Accounts                                                                                                                  No significant
                         14,051,661,462               3.90%         18,238,782,247                5.91%           -2.01%
 receivable                                                                                                                change
                                                                                                                           No significant
 Contract assets           315,167,085                0.09%            233,528,786                0.08%            0.01%
                                                                                                                           change
                                                                                                                           No significant
 Inventories             18,001,121,855               5.00%         14,083,356,918                4.56%            0.44%
                                                                                                                           change
 Investment                                                                                                                No significant
                           946,449,125                0.26%            761,902,236                0.25%            0.01%
 property                                                                                                                  change
 Long-term
                                                                                                                           No significant
 equity                  29,256,215,804               8.13%         25,640,578,245                8.30%           -0.17%
                                                                                                                           change
 investments
                                                                                                                           No significant
 Fixed assets           132,477,671,844              36.80%        113,598,782,727              36.79%             0.01%
                                                                                                                           change



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           Construction in                                                                                                                     No significant
                                      52,053,833,629            14.46%            36,965,885,393            11.97%                    2.49%
           progress                                                                                                                            change
           Right-of-use                                                                                                                        No significant
                                       5,110,123,904              1.42%            2,426,911,208                0.79%                 0.63%
           assets                                                                                                                              change
           Short-term                                                                                                                          No significant
                                      10,215,910,963              2.84%            9,341,426,543                3.03%                 -0.19%
           borrowings                                                                                                                          change
           Contract                                                                                                                            No significant
                                       2,336,008,164              0.65%            2,593,882,004                0.84%                 -0.19%
           liabilities                                                                                                                         change
           Long-term                                                                                                                           Increase in
                                     118,603,164,839            32.95%            87,279,081,955            28.27%                    4.68%
           borrowings                                                                                                                          financings
                                                                                                                                               No significant
           Lease liabilities           4,461,382,902              1.24%            1,102,071,813                0.36%                 0.88%
                                                                                                                                               change
         Explanation of high proportion of overseas assets
         □ Applicable √ Not applicable


  2. Assets and Liabilities at Fair Value
  √ Applicable □ Not applicable
                                                                                                                                               Unit: RMB
                                                                                Impairme
                                                                                   nt
                                             Gain/loss on     Cumulative
                                                                                allowanc
                                               fair-value     fair-value                     Purchased in the    Amount sold in
                          Beginning                                                es
      Item                                   changes in the    changes                          Reporting         the Reporting        Other changes        Ending amount
                           amount                                               establishe
                                               Reporting      recorded in                        Period                 Period
                                                                                 d in the
                                                Period          equity
                                                                                Reportin
                                                                                g Period
Financial assets
1. Held-for-
trading financial
assets
                         10,305,293,789       -257,066,897                  0                 24,059,751,982       18,475,644,160                            15,632,334,714
(excluding
derivative
financial assets)
2. Derivative
                                70,928,566      23,436,569     105,189,972                                                                161,479,123           361,034,230
financial assets
3. Receivables
                          2,217,638,736                                     0                                                           -1,114,510,972        1,103,127,764
financing
4. Other debt
                                        0                                   0                               0                     0                                      0
investments
5. Investments
in other equity                927,319,447                     -19,689,751                         22,639,419           502,685,450        12,412,598           439,996,263
instruments
Subtotal of
                         13,521,180,538       -233,630,328      85,500,221                    24,082,391,401       18,978,329,610         -940,619,251       17,536,492,971
financial assets
Investment
property
Productive
biological assets



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Other


Total of the
                         13,521,180,538       -233,630,328        85,500,221                     24,082,391,401        18,978,329,610          -940,619,251        17,536,492,971
above
Financial
                              947,240,307      -94,386,197        13,459,465                      2,104,884,136         2,358,170,985           319,619,948           932,646,673
liabilities
   Significant changes to the measurement attributes of the major assets in the Reporting Period
   □ Yes √ No

         3. Restricted Asset Rights as at the Period-End
                                                                               Carrying amount
                                  Restricted assets                                                                           Reason for restriction
                                                                                   (RMB'0,000)
              Monetary assets                                                                 32,185      Deposited in the central bank as the required reserve
              Monetary assets                                                                138,103      Other monetary funds and restricted bank deposits
              Notes receivable                                                                26,460      Pledge
              Fixed assets                                                               9,647,955        As collateral for loan
              Intangible assets                                                              417,783      As collateral for loan
              Held-for-trading financial assets                                               25,517      Pledge
              Construction in progress                                                   1,038,389        As collateral for loan
              Right-of-use assets                                                              1,862      As collateral for lease
              Accounts receivable                                                            160,933      Pledge
              Contract assets                                                                 27,168      Pledge
              Total                                                                     11,516,355

         VII. Investments Made
         1. Total Investment Amount
         √ Applicable □ Not applicable
                   Total investment amount in the                  Total investment amount in the same
                                                                                                                                        Change (%)
                      Reporting Period (RMB)                              period of last year (RMB)
                                            52,419,386,966                                      46,434,920,794                                                    12.89%

         2. Major Equity Investments Made in the Reporting Period
         Applicable Not applicable
                                                                                                                                               Unit: RMB100 million
                                                                                                                                               Invo
                                                                                                                                 Investment    lve
                                                      Shareho                                                                                          Date (if
                      Principa Investm Investm                                       Term of Type of                  Estimat income/loss men                     Index (if any)
     Name of                                           lding    Funding                                    Progres                                     any) of
                         l          ent      ent                           Partner   investm product                    ed          in the     t in                to disclosed
     investee                                          ratio    source                                        s                                        disclosu
                      activity    method    amount                                     ent        s                   income      Reporting    laws                information
                                                        (%)                                                                                               re
                                                                                                                                    Period     uit(s
                                                                                                                                                 )
 Xiamen         TCL                                                       Xiamen
 Technology                                                                Heding
                      Industri
 Industrial                       Equity                         Self-     Duxing      Not       Not                   Not                             August
                         al                                                                                Establis                  Not                           www.cninfo.c
 Investment                       investm       9.9      99%    raised    Investm applica       applica               applica                  No        27,
                      investm                                                                                hed                  applicable                          om.cn
 Partnership                       ents                          funds       ent       ble        ble                   ble                             2022
                        ent
 (Limited                                                                 Consult
 Partnership)                                                                ing



                                                                                       35
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                                                                              Partners
                                                                                hip
                                                                              Jiangsu
                                                                              Zhongn
                                                                                eng
Inner
                                                                              Polysili
Mongolia
                  Granula    Equity                              Self-          con               Not            Not                      Not
Xinhuan                                                                                                                     Establis                      Not               July 7,     www.cninfo.c
                  r silicon investm         18       40%         raised       Technol applica                  applica                  applica                       No
Silicon Energy                                                                                                                 hed                     applicable            2022          om.cn
                  projects    ents                               funds          ogy               ble              ble                    ble
Technology
                                                                              Develo
Co., Ltd.
                                                                               pment
                                                                                Co.,
                                                                                Ltd.
                                                                              Jiangsu
                                                                              Xinhua
Inner                                                                         Semico
Mongolia          Polycry                                                     nductor
                             Equity                              Self-                            Not            Not                      Not
Xinhua            stalline                                                    Materia                                       Establis                      Not               July 7,     www.cninfo.c
                             investm        7.2      40%         raised                       applica          applica                  applica                       No
Semiconductor     silicon                                                           l                                          hed                     applicable            2022          om.cn
                              ents                               funds                            ble              ble                    ble
Technology        projects                                                    Technol
Co., Ltd.                                                                       ogy
                                                                                Co.,
                                                                                Ltd.
                                                                                                                                                          Not
Total                --         --         35.1      --            --               --               --            --           --                 -                  --       --            --
                                                                                                                                                       applicable

        3. Major Non-Equity Investments Ongoing in the Reporting Period
        □ Applicable √ Not applicable

        4. Financial Investments
        (1) Securities Investments
        √ Applicable □ Not applicable
                                                                                                                                                                           Unit: RMB'0,000
                                                                                        Gain/los
                                                                                                          Cumulat
                                                     Accounti                           s on fair-                                   Amount
                                                                   Beginnin                               ive fair- Purchase                       Gain/los
                             Securities   Initial         ng                             value                                       sold in                    Ending
                 Securitie                                                g                                value         d in the                  s in the                Account
Security type                Abbreviati investme measure                                changes                                        the                      carrying               Funding source
                  s code                                            carrying                              changes Reportin                         Reportin                ing title
                                on        nt cost         ment                           in the                                      Reportin                   amount
                                                                    amount                                recorded g Period                        g Period
                                                     method                             Reportin                                     g Period
                                                                                                          in equity
                                                                                        g Period
                                                                                                                                                                            Other
                                DK
                                                                                                                                                                            non-
                 300842.     Electronic                   Fair
Stocks                                       2,430                       48,644            -8,965                  0            0      23,188          -3,516     25,258   current      Self-funded
                    SZ       Materials,               value
                                                                                                                                                                           financial
                                Inc.
                                                                                                                                                                           assets
                                22
                                                     Measure
                             Interest-                                                                                                                                      Debt
Government       220016I                             ment at
                              bearing      20,000                               -                 0                0       20,000              0         144      20,327 investme       Self-funded
bond                B                                amortize
                             governme                                                                                                                                        nts
                                                      d cost
                             nt bond 16




                                                                                                  36
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                                 22
                                                      Measure
                             Interest-                                                                                                   Debt
Government       220016I                              ment at
                               bearing      20,000                     -          0        0     20,000        0       150     20,327 investme      Self-funded
bond                B                                 amortize
                             governme                                                                                                     nts
                                                       d cost
                             nt bond 16
                                                                                                                                         Other
                                                                                                                                          non-
                 688728.     Galaxycor                  Fair
Stocks                                        4,284               19,692      -1,288       0         0         0     -1,288    18,404   current     Self-funded
                   SH          e Inc.                  value
                                                                                                                                        financial
                                                                                                                                         assets
                             ISHARES                                                                                                     Held-
                               IBOXX                                                                                                      for-
                US46428                                 Fair
Bonds                          HIGH         13,238                     -       -116        0     54,382    43,569    -1,283    11,025   trading     Self-funded
                  85135                                value
                                YLD                                                                                                     financial
                               CORP                                                                                                      assets
                                 22
                                                      Measure
                             Interest-                                                                                                   Debt
Government       220016I                              ment at
                               bearing      10,000                     -          0        0     10,000        0        75     10,158 investme      Self-funded
bond                B                                 amortize
                             governme                                                                                                     nts
                                                       d cost
                             nt bond 16
                                 22
                                                      Measure
                             Interest-                                                                                                   Debt
Government      220016.I                              ment at
                               bearing      10,000                     -          0        0     10,000        0        81     10,152 investme      Self-funded
bond                B                                 amortize
                             governme                                                                                                     nts
                                                       d cost
                             nt bond 16
                                                                                                                                        Investm
                                                                                                                                         ents in
                             Wesolutio                  Fair                                                                             other
Stocks          0860.HK                     18,926                10,131          0    -5,414        0         0         0      5,928               Self-funded
                               ns Inc.                 value                                                                             equity
                                                                                                                                        instrume
                                                                                                                                          nts
                                                      Measure
                             22 ICBC                                                                                                     Debt
Financial       223001.I                              ment at
                               Macau          5,000                    -          0        0      5,000        0        44      5,044 investme      Self-funded
bond                B                                 amortize
                              Bond 01                                                                                                     nts
                                                       d cost
                                                                                                                                         Held-
                                                                                                                                          for-
                XS25606      LINK CB                    Fair
Bonds                                         4,455                    -        326        0      4,323        0       326      4,791   trading     Self-funded
                  62541         LTD                    value
                                                                                                                                        financial
                                                                                                                                         assets
Other securities investments held at
                                          572,007          --    191,472     -14,981     -27    340,906   384,599   -22,522   166,460      --           --
            the period-end
                Total                     680,340          --    269,938     -25,023   -5,441   464,611   451,356   -27,789   297,874      --           --
Disclosure date of the board
announcement approving the                April 28, 2022
securities investments
Disclosure date of the general
meeting announcement approving            May 20, 2022
the securities investments (if any)




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(2) Investments in Derivative Financial Instruments
√ Applicable □ Not applicable

1) Derivative investments for hedging purposes made during the Reporting Period
√ Applicable □ Not applicable
                                                                                                                                           Unit: RMB'0,000
                                                                                                                                 Ending contractual
                                                                                                            Gain/loss           amount as % of the
                                      Beginning amount                        Ending amount
                                                                                                                 in           Company’s ending net
     Type of contract
                                                                                                            Reportin                     assets
                                  Contractua         Transactio        Contractua         Transactio         g Period       Contractua         Transactio
                                   l amount            n limit           l amount            n limit                          l amount            n limit
 1. Forward forex
                                     1,736,175             61,406          2,062,172             73,441                              15.61               0.56
 contracts                                                                                                       14,870
 2. Interest rate swaps                415,696             12,471            384,446             11,533                               2.91               0.09
 Total                               2,151,871             73,877          2,446,618             84,974          14,870              18.52               0.65
 Accounting policies and
 specific accounting
 principles for hedging
 business during the
 Reporting Period and a           No significant change.
 description of whether there
 have been significant
 changes from those of the
 previous reporting period
                                  During the Reporting Period, the Company had profits and losses of RMB465.80 million generated from the changes
 Description of actual profits
                                  in the fair value of the hedged items, RMB-458.27 million from the delivery of mature forward foreign exchange
 and losses during the
                                  contracts, RMB120.15 million from the valuation of immature forward foreign exchange contracts and RMB21.02
 Reporting Period
                                  million from interest rate swaps.
                                  During the Reporting Period, the Company's main foreign exchange risk exposures include exposures of assets and
 Description of the hedging       liabilities denominated in foreign currencies arising from business such as outbound sales, raw material procurement
 effect                           and financing. The uncertain risks arising from the exchange rate fluctuations were effectively hedged by derivative
                                  contracts with the same purchase amounts and maturities in opposite directions.
 Funding source                   Self-funded.
                                  In order to effectively manage the exchange and interest rate risks of foreign cu rrency 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 exc hange rate and
 Analysis of risks and            interest rate risks. As its business scale changes subsequently, the Company will adjust the exchange rate risk
 control measures associated      management strategy according to the actual market conditions and business plans.
 with derivative investments      Risk analysis:
 held in Reporting Period         1. Market risk: the financial derivatives business carried out by the Group belongs to hedging and trading business
 (including but not limited to    related to main business operations, and there is a market risk of loss due to the fluctuation of underlying interest
 market risk, liquidity risk,     and exchange rates, which lead to the fluctuation of prices of financial derivatives;
 credit risk, operational risk,   2. Liquidity risk: the derivatives business carried out by the Group is an over-the-counter transaction operated by a
 legal risk, etc.)                financial institution, and there is a risk of loss due to paying fees to the bank for liquidating or selling the derivatives
                                  below the buying prices;
                                  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 b udgets;



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                                                               Full Text of the Annual Report 2022 of TCL Technology Group Corporation


                               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, promptly and
                               completely, it may result in loss of derivative business or trading opportunities. Moreover, if the trading operator
                               fails to fully understand the terms of transaction contracts or product information, the Group will face the legal risks
                               and transaction losses therefrom.
                               Measures taken for risk control:
                               1. Basic management principles: the Group strictly follows the hedging principle mainly for the purposes of fixin g
                               costs and avoiding risks. It is required that the financial derivatives business to be carried out align with the variety,
                               size, direction and duration of spot goods, and this should not involve any speculative trading. 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 preemptive prevention, in -process monitoring and post-
                               processing. It reasonably allocates professionals for investment decision -making, business operation and risk control
                               as required; Personnel involved in investment are required to fully understand the risks of financial derivatives
                               investment and strictly implement the business operation and risk management system of derivatives. Before starting
                               the derivatives business, the holding company must submit to the competent 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. Operation is only allowed upon the approval of the functions under 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 the derivatives bought by the Group 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 Company's recently audited net profit attributable to shareholders of the listed company, and the absolute amount
                               exceeds RMB10 million, the Group will disclose it in a timely manner.
Changes in market prices or
                               With the rapid expansion of overseas sales, the Company continues to follow the above rules in the operation of
fair value of derivative
                               forward foreign exchange contracts, interest rate swap contracts and futures contracts to avoid and hedge foreign
investments in Reporting
                               exchange risks arising from operations and financing. During the Reporting Period, there were profits and losses of
Period (fair value analysis
                               RMB465.80 million from changes in the fair value of hedged items and RMB-317.10 million from derivatives. The
should include
                               fair value of derivatives is determined by real-time quoted price of the foreign exchange market, based on the
measurement method and
                               difference between the contractual price and the forward exchange rate quoted immediately in the foreign exchange
related assumptions and
                               market on the balance sheet date.
parameters)
Legal matters involved (if
                               Not applicable
applicable)
Disclosure date of the board
announcement approving
                               April 28, 2018
the derivative investments
(if any)
Disclosure date of the
general meeting
announcement approving         Not applicable
the derivative investments
(if any)
Opinion of independent         In view of the fact that certain raw materials of the core business of the Company are purchased overseas, a wide
directors on derivative        range of settlement currencies is involved. The Company reduces exchange losses and locks transaction costs by
investments and risk control   reasonable financial derivatives, which helps to reduce risk control costs and improve company competitiveness.



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                                                                                  Full Text of the Annual Report 2022 of TCL Technology Group Corporation


                                                 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. We are of the opinion that the financial derivatives
                                                 transactions carried out by the Company in 2022 were closely related to the daily operation needs of the Company
                                                 with controllable risks in line with the interests of the Company and minority shareholders and the relevant
                                                 provisions of relevant laws and regulations.

      2) Derivative investments for speculative purposes made during the Reporting Period
      □ Applicable √ Not applicable
      There were no derivative investments for speculative purposes made by the Company during the Reporting Period.

      5. Use of the Capital Raised
      √ Applicable □ Not applicable
      (1) General Information about the Use of Raised Funds
      √ Applicable □ Not applicable
                                                                                                                                                                            Unit: RMB'0,000
                                                                                                                              Cumulative
                                                                                                                                                                                    Amount
                                                                                         Amount                                    amount
                                                                                                            Cumulative                                             Purpose and       being
                                                                                              with                                    with
         Year                         Total            Used in                                                  amount                               Unused       whereabouts       idle for
                    Way of                                           Cumulatively        changed                                   changed
           of                        amount          the current                                                 with                                amount           of the          more
                    raising                                              used           use in the                             used as %
        raising                      raised            period                                                   changed                               (note)         unused           than
                                                                                        reporting                                  of total
                                                                                                                 used                                                amount           two
                                                                                             period                                amount
                                                                                                                                                                                     years
                                                                                                                                    raised
                    Non-
                    public
                                                                                              Not                 Not                 Not                         Not
        2022        offering        947,469.47        947,469.47        947,469.47                                                                           0                                0
                                                                                        applicable          applicable         applicable                         applicable
                    of
                    shares
                                                                                              Not                 Not                 Not
         Total           --         947,469.47        947,469.47        947,469.47                                                                           0             --                 0
                                                                                        applicable          applicable         applicable
                                                                                Use of the Capital Raised
        According to the Approval for the Non-Public Issue of Shares by TCL Technology Group Co., Ltd. (Zheng Jian Xu Ke [2022] No. 1658) issued by
        the China Securities Regulatory Commission, the Company issued no more than 2,806,128,484 shares in a non -public manner. The number of shares
        actually issued in this issuance was 2,806,128,484 shares. As of December 6, 2022, the Company raised a total of RMB9,596,959,415.28, and the
        amount of RMB9,471,959,415.28 raised funds was deposited into the Company's special bank account after deducting the underwriting sponsorship
        fee (tax-inclusive) at RMB125,000,000.00. After deducting the issue-related fees (excluding the value-added tax) of RMB122,264,729 .1 2,
        RMB9,474,694,686.16 was available for use.
      Note: As at December 31, 2022, the unused amount in the raised fund account was RMB1.8195 million, which was the accumulated balance of special
      account interest and account maintenance fees. Such amount was deposited in the special bank account for raised funds.
      (2) Promised Use of Raised Funds
      √ Applicable □ Not applicable
                                                                                                                                                                            Unit: RMB'0,000
                                                      Total                                           Cumulative        Investment                                               M eeting         Signific
Promised project funded       Project changed                      Adjusted      Investment                                                  Time when           Benefits
                                                     promised                                         investment        progress as                                                the              ant
 with raised funds and             or not                            total          in the                                                  the project is     derived in the
                                                    investment                                       amount at the        at the                                                 expected         change
 investment with over-           (including                        investment    Reporting                                                   ready for its       Reporting
                                                      amount                                          period-end        period-end                                              benefits or         to
     raised funds              partial change)                     amount (1)      Period                                                   intended use          Period
                                                    with raised                                           (2)           (3)=(2)/(1)                                                not            project




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                                                                                  Full Text of the Annual Report 2022 of TCL Technology Group Corporation


                                                      funds                                                                                                                        feasibilit
                                                                                                                                                                                   y or not
Promised projects


                                                                                                                                  24 months
1. The generation 8.6 (or
                                                                                                                                   from the
G8.6) new oxide                                                                                                                                        Not             Not
                               No               900,000.00        900,000.00     900,000.00       900,000.00       100.00%       commencem                                         No
semiconductor production                                                                                                                            applicable      applicable
                                                                                                                                  ent date of
line
                                                                                                                                  the project
2.
                                                                                                                                      Not              Not             Not
Additional working             No               47,469.47         47,469.47      47,469.47        47,469.47        100.00%                                                         No
                                                                                                                                  applicable        applicable      applicable
capital
Subtotal of promised
                                 --             947,469.47        947,469.47     947,469.47       947,469.47          --               --                               --              --
projects
Over-raised funds
None
Description of delayed
progress and reasons for
failure to achieve the
planned progress and
expected income                Not applicable
(including the reasons for
selecting “Not applicable”
for “whether expected
benefits were met or not”)
Description of major
changes in project             Not applicable
feasibility
Over-raised fund amount,
                               Not applicable
purpose and use progress
Location change of the
                               Not applicable
project with raised funds
Adjustment of project
                               Not applicable
implementation
Advance investments in
                               On December 12, 2022, the Proposal on Using Raised Funds to Swap Self-raised Funds Previously Invested in Projects that should be Funded with Raised
promised projects funded
                               Funds was approved at the 26th M eeting of the Company’s 7th Board of Directors. As such, raised funds were agreed to be swapped wit h the advance
with raised funds and
                               investments of self-raised funds in projects that should be funded with raised funds. The total swap amount was RMB9 billion.
subsequent swaps
Supplemented the
working capital with idle      Not applicable
funds
Amount and reasons for
                               As at December 31, 2022, the balance of the unused amount of the raised fund account was RM B1,819,536.34, which was the accumulated balance of special
the balance of raised
                               account interest and account maintenance fees. Such amount was deposited in the special bank account for raised funds and was used according to the Company's
funds in the project
                               fund arrangements.
implementation
Unused fund purpose and
                               Not applicable
whereabouts
Problems and other
circumstances in raised        Not applicable
fund use and disclosure
          (3) Change of the raised fund projects
          □ Applicable √ Not applicable
          No such cases in the Reporting Period.




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                                                          Full Text of the Annual Report 2022 of TCL Technology Group Corporation


VIII. Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.

2. Sale of Major Equity Investments
□ Applicable √ Not applicable

IX. Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit
                                                                                                                        Unit: RMB'0,000


                        Company          Principal      Registered          Total        Net                      Operating
  Company Name                                                                                       Revenue                    Net profit
                          type            activity        capital          assets       assets                      profit
 TCL China Star
                                          Semi-
 Optoelectronics                                       RMB32.475
                       Subsidiary        conductor                        19,255,707   7,384,957      5,625,642     -974,758     -835,283
 Technology Co.,                                           billion
                                          display
 Ltd.
                                      New energy
 TCL Zhonghuan
                                      photovoltaic
 New Energy                                             RMB3.234
                       Subsidiary        & semi-                          10,913,377   4,705,984      6,701,016      732,542      707,304
 Technology Co.,                                           billion
                                         conductor
 Ltd.
                                         materials
 Highly
                                       Distribution      RMB412
 Information           Subsidiary                                           871,268     148,111       3,184,780       35,291       26,425
                                         business         million
 Industry Co., Ltd.
Acquisition and disposal of subsidiaries in the reporting period
√ Applicable □ Not applicable
                                                How subsidiary was obtained or disposed            Effects on overall operations and
               Company Name
                                                       of in the Reporting Period                       operating performance
 Zhonghuan Advanced Semiconductor
                                                Newly incorporated                          No significant effect
 (Tianjin) Co., Ltd.
 Huanou (Wuxi) New Energy Materials
                                                Newly incorporated                          No significant effect
 Co., Ltd.
 Huaian Municipal Huanxin New Energy
                                                Newly incorporated                          No significant effect
 Co., Ltd.
 Lingwu Huanju New Energy Co., Ltd.             Newly incorporated                          No significant effect
 Inner Mongolia Zhonghuan Electronic
                                                Newly incorporated                          No significant effect
 Materials Co., Ltd.
 Tianjin Zhonghuan Industrial Park Co.,
                                                Newly incorporated                          No significant effect
 Ltd.
 Tianjin Huanrui Technology Co., Ltd.           Newly incorporated                          No significant effect
 Shaanxi Huanyu Green New Energy Co.,
                                                Newly incorporated                          No significant effect
 Ltd.


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                                                    Full Text of the Annual Report 2022 of TCL Technology Group Corporation


Shaanxi Huanshuo Green New Energy
                                          Newly incorporated                      No significant effect
Co., Ltd.
Admiralty Harbour Investment Holding
                                          Newly incorporated                      No significant effect
Limited
Zhonggang Enterprise Service
                                          Newly incorporated                      No significant effect
(Shenzhen) Co., Ltd.
Huizhou Keda Tezhixian Technology
                                          Newly acquired                          No significant effect
Co., Ltd.
Ningxia Huanneng New Energy Co.,
                                          Newly incorporated                      No significant effect
Ltd.
Zhonghuan Advanced Semiconductor
                                          Newly incorporated                      No significant effect
Japan Co., Ltd.
TCL CSOT AMERICA CORP.                    Newly incorporated                      No significant effect
Xi’an Sunpie Technology Co., Ltd.        Newly incorporated                      No significant effect
Weinan Sunpiestore Technology Co.,
                                          Newly incorporated                      No significant effect
Ltd.
Guiyang Sunpiestore Technology Co.,
                                          Newly incorporated                      No significant effect
Ltd.
Lanzhou Sunpiestore Technology Co.,
                                          Newly incorporated                      No significant effect
Ltd.
Urumqi Sunpiestore Technology Co.,
                                          Newly incorporated                      No significant effect
Ltd.
Baoji Sunpie Sidao Technology Co., Ltd.   Newly incorporated                      No significant effect
Urumqi Sunpie Xinhui Technology Co.,
                                          Newly incorporated                      No significant effect
Ltd.
Xi’an McSunpie Technology Co., Ltd.      Newly incorporated                      No significant effect
Shenzhen Sunpiestore Electronics Co.,
                                          Newly incorporated                      No significant effect
Ltd.
Shenzhen Sunpiestore Industrial Co.,
                                          Newly incorporated                      No significant effect
Ltd.
Dongguan Sunpiestore Digital Co., Ltd.    Newly incorporated                      No significant effect
Dongguan Sunpiestore Electronics Co.,
                                          Newly incorporated                      No significant effect
Ltd.
Guangzhou Sunpie Technology Co., Ltd.     Newly incorporated                      No significant effect
Lanzhou Hongmao Sunpiestore
                                          Newly incorporated                      No significant effect
Technology Co., Ltd.
Xiamen TCL Technology Industrial
Investment Partnership (Limited           Newly incorporated                      No significant effect
Partnership)
TCL CSOT SG PTE. LTD.                     Newly incorporated                      No significant effect
Beijing Youyi Online Technology Co.,
                                          Newly incorporated                      No significant effect
Ltd.
PL MOKA Sp. z o.o.                        Newly acquired                          No significant effect




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                                                         Full Text of the Annual Report 2022 of TCL Technology Group Corporation


 Urumqi Sunpie Zhishang Trading Co.,
                                              Newly incorporated                           No significant effect
 Ltd.
 Urumqi Sunpie Maiqi Trading Co., Ltd.        Newly incorporated                           No significant effect
 Lanzhou Hongsheng Sunpiestore
                                              Newly incorporated                           No significant effect
 Electronics Technology Co., Ltd.
 Tongliao Guangtong New Energy Co.,           De-registered                                No significant effect
 Ltd.
 Beijing Zhiqujia Technology Co., Ltd.        Transferred                                  No significant effect
 Huizhou Shengyao New Energy                  Transferred                                  No significant effect
 Technology Co., Ltd.
 Ningjin Jinchen New Energy Co., Ltd.         Transferred                                  No significant effect
 Lingwu Huanju New Energy Co., Ltd.           Transferred                                  No significant effect

X. Structured Bodies Controlled by the Company
□ Applicable √ Not applicable

XI. Prospects
     Looking into 2023, the high-end high-tech industry will embrace new challenges and opportunities as global economic
transformation and industrial chain restructuring takes place. TCL Tech will seize the opportunity for industrial development, develop
global high-tech industrial core asset segments and focus on the business development of semiconductor displays, new energy
photovoltaic materials and semiconductor materials. Using technology, management, and scale advantages as fundamentals, the
Company will take into account short-term contingency response and long-term capacity building, pursue long-term high-qualit y
development, continue to improve industry chain layout and is committed to becoming a global leader in these two segments.
     As one of the world’s leading semiconductor display enterprises, the Company will focus on seizing the opportunity for indust ry
integration, strengthening advantages and offsetting disadvantages, enhancing its leading advantage in large-sized products, improving
the layout of small and medium-sized products, optimizing business, product and customer structure and transforming into an industry
leader for all display sizes.
     In the two strategic industries of new energy and semiconductors, TCL Zhonghuan has become one of the main engines of TCL's
scientific and technological performance growth through institutional reform, enhancing organizational vitality, releasing growth
potential and accelerating business development. With the global energy restructuring and rapid development of the information age,
TCL Zhonghuan will continue to enhance its comparative competitiveness and take a leading position in the industry.
     In the future, TCL aims to become a global leader and will pool its efforts, be guided by science and technology, driven by
innovation and continue to ramp up, catch up and achieve high-quality development.

XII. Communications with the Investment Community such as Researches, Inquiries and
Interviews
√ Applicable □ Not applicable
                                                                                                Main
                                                        Type of                                                    Index to main
                                     Way of                               Communication      discussions
     Date           Place                           communication                                                   information
                                  communication                               party         and materials
                                                         party                                                     communicated
                                                                                               provided
                 Conference                                                Greenwoods                        Log Sheet No. 2022-
 March 22,                                                                                      Latest
                   Room of                                                 Asset, CMB                        001 on Investor
 2022 -                                                                                        business
                  TCL Tech      By teleconference      Institution           Wealth                          Relations Activities
 March 24,                                                                                  operations of
                      in                                                   Management,                       dated March 24, 2022
 2022                                                                                         TCL Tech
                  Shenzhen                                                Tianhong Asset                     disclosed by the


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                                                Full Text of the Annual Report 2022 of TCL Technology Group Corporation


                                                                  Management,                        Company at
                                                                BlackRock, etc.                      www.cninfo.com.cn
                                                                                                     on March 24, 2022.
                                                                                                     Log Sheet No. 2022-
                                                                E Funds, Harvest     Performance     002 on Investor
            Conference
                                                                      Fund,          of TCL Tech     Relations Activities
             Room of
April 28,                By teleconference                       Perseverance        for 2021 and    dated April 28, 2022
            TCL Tech                         Institution
2022                        + p5w.net                                Asset             the first     disclosed by the
                in
                                                                  Management,         quarter of     Company at
             Shenzhen
                                                                CICC, UBS, etc.         2022         www.cninfo.com.cn
                                                                                                     on April 29, 2022.
                                                                 Southern Asset                      Log Sheet No. 2022-
                                                                  Management,                        003 on Investor
            Conference
                                                                  China Life,        Performance     Relations Activities
             Room of
August                                                           Perseverance        of TCL Tech     dated August 29, 2022
            TCL Tech     By teleconference   Institution
29, 2022                                                             Asset           for the first   disclosed by the
                in
                                                                  Management,        half of 2022    Company at
             Shenzhen
                                                                   BOCOM                             www.cninfo.com.cn
                                                                 Schroders, etc.                     on August 31, 2022.
                                                                                                     Log Sheet No. 2022-
                                                                E Funds, Huaxia                      004 on Investor
            Conference                                                               Performance
                                                                   Securities,                       Relations Activities
             Room of                                                                 of TCL Tech
October                                                          Penghua Fund,                       dated October 25,
            TCL Tech     By teleconference   Institution                             for the third
25, 2022                                                         Dacheng Fund,                       2022 disclosed by the
                in                                                                    quarter of
                                                                 ICBC Wealth                         Company at
             Shenzhen                                                                   2022
                                                                Management, etc.                     www.cninfo.com.cn
                                                                                                     on October 26, 2022.
                                                                                     Contents and
                                                                                        public
January -      The                           Individuals,
                          Investor hotline                         Individuals,      information,
December    Company's                        institutions,                                           -
                            (telephone)                         institutions, etc.       etc.,
2022          office                             etc.
                                                                                     disclosed by
                                                                                     the Company
                                                                                     Contents and
                                                                                        public
January -      The                           Individuals,
                                                                   Individuals,      information,
December    Company's    irm.cninfo.com.cn   institutions,                                           irm.cninfo.com.cn
                                                                institutions, etc.       etc.,
2022          office                             etc.
                                                                                     disclosed by
                                                                                     the Company




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                                                   Full Text of the Annual Report 2022 of TCL Technology Group Corporation


                                 Part IV Corporate Governance
I General information of Corporate Governance
     Since listed, in accordance with the Company Law, the Securities Law, the Code of Corporate Governance for
Listed Companies, Rules Governing the Listing of Shares on Shenzhen Stock Exchange and the Self-regulatory
Guidelines of Shenzhen Stock Exchange for Listed Companies No. 1 - Standardized Operation of Listed Companies
on the Main Board and other relevant laws and regulations, the Company has continued to improved its governance
structure and further standardized its operations to comply with the requirements of related laws and regulations.
     During the Reporting Period, the Company pushed ahead with its corporate government work in many aspects.
At present, the Company has established an organizational structure in line with the Company’s business scale and
operation and management, reasonably set up departments and posts, scientifically plan responsibilities and duties
and build an internal control system that enables employees to performs their duties, assumes their responsibilities,
work and supervise each other. The Company has a complete internal audit and internal control system, especially
in terms of internal audit, with a clarified structure and clear responsibilities defined, which can effectively prevent
Group risks.
     The board of directors of the Company sets up four dedicated committees: strategy committee, audit
committee, nomination committee and remuneration and appraisal committee to provide suggestions to the board
of directors and ensure the board meetings and decision-making in a professional and efficient manner. The board
of supervisors perform their duties diligently and conscientiously. The supervisors investigate issues at various sites,
take the initiative to put forward management suggestions, which effectively improve the internal governance of
the Company. The Company has continuously improved its information disclosure management and investor
relations management through innovative management system. The Company actively arranges directors,
supervisors, senior managers and heads of relevant departments to participate in the dedicated training organized
by regulators and associations, effectively promotes the management’s learning and understanding of relevant laws,
regulations and documents on the governance of listed companies, strengthens the management’s self-discipline
capacity, make them diligently perform their duties, and effectively safeguards the interests of all shareholders,
especially small and medium-sized shareholders. The Company has successively launched employee stock incentive
plans with the participation of middle and senior managers and excellent employees, further improving corporate
performance and continuous improvement of its value. The Company is devoted to public charitable undertakings
and actively participates in social public charitable donations. Thanks to these measures, the Company takes a lead
in corporate governance in the industry.
     Currently, there is no difference between the actual status of the Company’s corporate governance ructure and
the standard documents on the corporate governance for listed companies published by China Securities Regulatory
Commission. The names of the policies are shown in the following table and all the policies have been published
on www.cninfo.com.cn.
    Category of rules                                               Title of rules

  Articles of Association   The Articles of Association of TCL Technology Group Corporation

      Dividend rules        The Dividend Rules of TCL Corporation



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                         The Shareholder Dividend Reward Plan of TCL Technology Group Corporation for the Next

                         Three Years (2023-2025)

                         The Rules Governing the Shareholdings of Directors, Supervisors and Senior Management in

                         TCL Corporation and Changes therein

                         The Rules Governing the Registration of Information Insiders of TCL Technology Group

                         Corporation

                         The Accountability Rules for Material Errors in Annual Report Disclosure of TCL Corporation

Information disclosure   The Rules Governing External Users of Information of TCL Corporation

        policy           The Rules Governing Investor Relations of TCL Corporation

                         The Work Rules for Independent Directors Concerning Annual Reports of TCL Corporation

                         The Reception and Promotional Work Rules of TCL Corporation

                         The Rules Governing Internal Reporting of Significant Information of TCL Corporation

                         The Work Rules for the Board Secretary of TCL Corporation

                         The Rules Governing Information Disclosure of TCL Technology Group Corporation

                         The Rules of Procedure for the General Meeting of TCL Technology Group Corporation

                         The Rules of Procedure for the Supervisory Committee of TCL Technology Group Corporation

                         The Rules of Procedure for the Board of Directors of TCL Technology Group Corporation

                         The Work Rules for the Independent Directors of TCL Corporation

                         The Specific Work Rules for the CEO of TCL Corporation

                         The Rules of Procedure for the Audit Committee under the Board of Directors of TCL

                         Corporation
  Governance and
                         The Work Procedures for the Annual Audit by the Audit Committee under the Board of Directors
   operation rules
                         of TCL Corporation

                         The Rules of Procedure for the Remuneration and Appraisal Committee under the Board of
                         Directors of TCL Corporation

                         The Rules of Procedure for the Nomination Committee under the Board of Directors of TCL

                         Corporation

                         The Rules of Procedure for the Strategy Committee under the Board of Directors of TCL

                         Corporation

                         The Rules Governing Major Investments of TCL Corporation

                         The Rules Governing the Use of Raised Funds of TCL Technology Group Corporation

                         The Internal Control Rules for Venture Capital of TCL Corporation

                         The Rules Governing Securities Investment of TCL Technology Group Corporation
Internal control rules
                         The Internal Control Rules for Investment in Derivative Financial Instruments of TCL Technology

                         Group Corporation

                         The Rules Governing Securities Investment of TCL Technology Group Corporation

                         The Majority-Owned Subsidiary Management Measures of TCL Corporation



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                               The Rules Governing the Related-Party Transactions of TCL Corporation

                               The Rules Governing the Guarantees Provided for External Parties of TCL Techno logy Group

                               Corporation

                               The Internal Control Rules of TCL Corporation

                               The Internal Audit Charter of TCL Technology Group Corporation

                               The Internal Control Evaluation Rules of TCL Corporation
    The following rules are revised during the Reporting Period and relevant rules are disclosed on www.cninfo.com.cn:

                                                                           Title of rules

                               The Articles of Association of TCL Technology Group Corporation

                               The Rules Governing Information Disclosure of TCL Technology Group Corporation
           Revised
                               The Rules Governing the Registration of Information Insiders of TCL Technology Group

                               Corporation
Is there any material incompliance with the regulatory documents issued by the CSRC governing the governance of listed companies
□ Yes √ No
There is no material incompliance with the regulatory documents issued by the CSRC governing the governance of listed companies.

II The Company’s Independence from Its Controlling Shareholder in Business, Personnel,
Asset, Organization and Financial Affairs
□ Applicable   √ Not applicable
III Horizontal Competition
□ Applicable   √ Not applicable
IV. Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
                                             Investor         Date of
                                                                           Date of
      Meeting                 Type         participation        the                             Resolutions of the meeting
                                                                          disclosure
                                               ratio          meeting
                                                                                       All proposals were adopted. Please refer to
 The First
                                                                                       the Notice on Resolutions of the 1st
 Extraordinary          Extraordinary                        April 29,   April 30,
                                                 22.26%                                Extraordinary Meeting of Shareholders in
 General Meeting        general meeting                      2022        2022
                                                                                       2022 disclosed on www.cninfo.com.cn on
 of 2022
                                                                                       April 30, 2022 (Notice No.: 2022-045)
                                                                                       All proposals were adopted. Please refer to
                                                                                       the Notice on Resolutions of General Meeting
 The 2021 Annual        Annual general                       May 19,     May 20,
                                                 22.12%                                of Shareholders in 2021       disclosed on
 General Meeting        meeting                              2022        2022
                                                                                       www.cninfo.com.cn     on   May 20,      2022
                                                                                       (Notice No.: 2022-051)
                                                                                       All proposals were adopted. Please refer to
 The Second
                                                                                       the Notice on the 2nd Extraordinary General
 Extraordinary          Extraordinary                        July 22,    July 23,
                                                 22.18%                                Meeting of Shareholders in 2022 disclosed on
 General Meeting        general meeting                      2022        2022
                                                                                       www.cninfo.com.cn on July 23, 2022 (Notice
 of 2022
                                                                                       No.: 2022-081)


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       2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed
       Voting Rights
       □ Applicable      √ Not applicable
       V. Performance of Duty by Independent Directors in the Reporting Period
       1. General information
                                                                                                                    Increase Decreas
                                                                                                Shar Granted                                      Other
                                                                                  Beginning                          in the       e in the                        Ending
                             Position   Gend                          End of                        e   restricte                                increase/                       Reason for
   Name        Position                        Age Start of tenure               shareholding                       Reportin Reportin                           shareholdin
                              Status     er                           tenure                    optio d shares                                   decrease                         change
                                                                                   (share)                          g Period g Period                            g (share)
                                                                                                    n   (shares)                                  (share)
                                                                                                                    (share)       (share)
               Chairman                              April 19, 2002                                                                                                            Non-transaction
                                                                      Novemb
                                                                                                                                                                              transfer under the
Li Dongsheng                Incumbent Male     65                       er 12, 813,575,470 -                    -             -              -     485,626 814,061,096
                 CEO                                 June 20, 2005                                                                                                             employee stock
                                                                         2023
                                                                                                                                                                               ownership plan
                 Vice
                                                                      Novemb
               Charmian                              November 13,
Liang Weihua                Incumbent Male     41                       er 12,          -       -               -             -              -              -                - Not applicable
                of the                                        2020
                                                                         2023
                Board
                                                         January 9,
               Director                                               Novemb
                                                              2023
Wang Cheng                  Incumbent Male     48                       er 12,     157,661                      -             -              -              -       157,661 Not applicable
                                                         August 9,
                 COO                                                     2023
                                                              2021
                                                     November 13,
               Director
                                                              2020 Novemb
Shen Haoping    Senior      Incumbent Male     60                       er 12,          -       -               -             -              -              -                - Not applicable
                                                     November 14,
                 Vice                                                    2023
                                                              2020
               President
                                                      September 1,
               Director
                                                              2017                                                                                                            Non-transaction
                Board                                                 Novemb                                                                                                   transfer under
                                                     April 23, 2014
 Liao Qian     Secretary Incumbent Male        42                       er 12,     229,596      -               -             -              -     251,710          481,306     the employee
                Senior                                                   2023                                                                                                 stock ownership
                                                        August 27,
                 Vice                                                                                                                                                               plan
                                                              2020
               President
                                                         January 9,                                                                                                           Non-transaction
               Director
                                                              2023 Novemb                                                                                                      transfer under
  Zhao Jun      Senior      Incumbent Male     50                       er 12,          -       -               -             -              -     200,482          200,482     the employee
                                                     December 23,
                 Vice                                                    2023                                                                                                 stock ownership
                                                              2022
               President                                                                                                                                                            plan
                                                                      Novemb
  Lin Feng     Director     Incumbent Male     37    April 29, 2022     er 12,          -       -               -             -              -              -                - Not applicable
                                                                         2023
               Independ                                               Novemb
                                                     November 13,
 Gan Yong        ent        Incumbent Male     75                       er 12,          -       -               -             -              -              -                - Not applicable
                                                              2020
               director                                                  2023
               Independ                                               Novemb
                                                     November 13,
 Chen Shiyi      ent        Incumbent Male     66                       er 12,          -       -               -             -              -              -                - Not applicable
                                                              2020
               director                                                  2023



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                Independ                                                  Novemb
                                                     November 13,
Wan Liangyong      ent      Incumbent Male     43                            er 12,          -     -     -       -        -         -           - Not applicable
                                                                   2020
                 director                                                     2023
                Independ                                                  Novemb
                                                      September 1,
  Liu Xunci        ent      Incumbent Male     64                            er 12,          -     -     -       -        -         -           - Not applicable
                                                                   2017
                 director                                                     2023
                Chairman
                 of the
                                                                          Novemb
                Superviso                             September 2,
 He Zhuohui                 Incumbent Male     57                            er 12,          -     -     -       -        -         -           - Not applicable
                   ry                                              2015
                                                                              2023
                Committe
                    e
                                                                          Novemb
                Superviso               Fema          September 1,
 Qiu Haiyan                 Incumbent          48                            er 12,          -     -     -       -        -         -           - Not applicable
                    r                    le                        2014
                                                                              2023
                                                                                                                                                    Non-transaction
                Employee                                                  Novemb                                                                     transfer under
                                                      September 1,
Mao Tianxiang Superviso Incumbent Male         42                            er 12,     128,979    -     -       -        -   100,604     229,583    the employee
                                                                   2017
                    r                                                         2023                                                                  stock ownership
                                                                                                                                                         plan
                                                                                                                                                    Non-transaction
                                                                          Novemb                                                                     transfer under
                                        Fema              August 9,
   Li Jian        CFO       Incumbent          50                            er 12,     97,709     -     -       -        -   196,804     294,513    the employee
                                         le                        2021
                                                                              2023                                                                  stock ownership
                                                                                                                                                         plan
                 Senior                                                                                                                             Non-transaction
                                                      September 1,
                  Vice                                                    Novemb                                                                     transfer under
                                                                   2014
 Yan Xiaolin    President Incumbent Male       56                            er 12,    1,018,176   -     -       -        -   285,126   1,303,302    the employee
                                                       December 6,            2023                                                                  stock ownership
                  CTO
                                                                   2012                                                                                  plan
                                                                                                                                                    Non-transaction
                                                                          Decemb                                                                     transfer under
                                        Fema             March 19,
   Du Juan      Director     Former            52                            er 22,     417,730    -     -       -        -   374,237     791,967    the employee
                                         le                        2018
                                                                              2022                                                                  stock ownership
                                                                                                                                                         plan
                                                        January 25,                                                                                 Non-transaction
                Director
                                                                   2019 Decemb                                                                       transfer under
  Jin Xuzhi      Senior      Former     Male   68                            er 22,     521,997    -     -       -        -   232,564     754,561    the employee
                                                        August 13,
                  Vice                                                        2022                                                                  stock ownership
                                                                   2015
                President                                                                                                                                plan
                                                                          April 12,
   Liu Kun      Director     Former     Male   44     May 13, 2021                           -     -     -       -        -         -           - Not applicable
                                                                              2022
    Total           --         --        --    --             --             --       816,147,318 -      -       -        - 2,127,153 818,274,471          --
        During the reporting period, any resignation of directors and supervisors and dismissal of senior managers during their term of office
        □ Yes √ No
        Change of Directors, Supervisors and Senior Management
        √ Applicable □ Not applicable
                    Name                       Office title                       Type of change       Date of change           Reason for change



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                                                                                                        Resigned as a Non-
                                                                                                        executive Director of
 Liu Kun                   Non-executive Director    Former                   April 12, 2022
                                                                                                        the Company due to
                                                                                                        job adjustment.
                                                                                                        Election at a
 Lin Feng                  Non-executive Director    Elected                  April 29, 2022
                                                                                                        shareholders’ meeting
                                                                                                        Resigned as a Non-
                                                                                                        executive Director of
 Du Juan                   Non-executive Director    Former                   December 22, 2022
                                                                                                        the Company for
                                                                                                        personal reasons.
                                                                                                        Resigned as a Non-
                                                                                                        executive Director and
                           Executive     Director,
 Jin Xuzhi                                           Former                   December 22, 2022         Senior Vice President
                           Senior Vice President
                                                                                                        of the Company for
                                                                                                        personal reasons.
                                                                                                        Election at a
 Wang Cheng                Executive Director        Elected                  January 9, 2023
                                                                                                        shareholders’ meeting
                                                                                                        Election at a
                           Executive     Director,                                                      shareholders’ meeting
 Zhao Jun                                            Elected and appointed    January 9, 2023
                           Senior Vice President                                                        and appointment by the
                                                                                                        Board

2. Positions
Professional background, major work experience and current post held in the Company of incumbent director, supervisor and senior
manager

     Mr. Li Dongsheng, the founder of TCL who currently serves as TCL Tech’s Chairman and CEO; he was
elected as a delegate to China’s 16th National Congress of the CPC and a deputy to the 10th, 11th, 12th, 13th and
14th National People’s Congress. Mr. Li has held a number of prestigious positions: Former Vice Chairman of All
China Federation of Industry and Commerce (ACFIC), Vice Chairman of the China Chamber of International
Commerce, First President of the China Manufacturing Innovation Alliance, Honorary President of Guangdong
Federation of Industry&Commerce, Honorary President of South China University of Technology Education
Development Foundation, Vice President of Alumni Association South China University of Technology, Member
of the Council of South China University of Technology, Visiting Professor in Wuhan University, and Honorary
Professor in Beijing Institute of Technology.
     Mr. Liang Weihua, Vice Chairman of TCL Tech. He was born in March 1981. He holds a master's degree
and is a Party member. He graduated from the Department of Sociology of the School of Government, the Sun Yat-
sen University, in July 2003 and graduated from the Economics and Management School of Wuhan University with
the MBA degree in December 2012. From July 2003 to December 2010, he worked as Assistant Manager of
Enterprise Management Department and Administration Department of Huizhou Investment Management
Company. From December 2010 to December 2011, he took the post of Executive Deputy General Manager of
Huidong County Hongyuan Water Supply Co., Ltd. From December 2011 to June 2016, he served as the General
Manager of Huidong County Hongyuan Water Supply Co., Ltd. (and participated in the Special Seminar for Young
and Middle-aged Cadres at Section Chief Rank in Huizhou City to Learn and Implement Spirit of Third Plenary

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Session of the 18th CPC Central Committee (Zhong Qing Class 2) from May to August, 2014). From June 2016 to
June 2021, he took office as Deputy General Manager of Huizhou Investment Holding Co., Ltd. (and also served as
a director of the company since August 2016). From March 2017 to March 2022, he has been a director of Huizhou
Financing Guarantee Co., Ltd.; from March 2017 to January 2023, he concurrently served as a director of Utrust
Inclusive Finance (Huizhou) Financing Guarantee Co., Ltd. From April 2017, he was a director at Truly (Huizhou)
Smart Display Limited. Since October 2019, he has been Chairman and General Manager of Huizhou New Materials
Industry Park Investment and Construction Co., Ltd. Since November 2020, he has held office as Vice Chairman
of TCL Technology Group Corporation and its consolidated subsidiaries, except where the context otherwise
requires. He became Chairman and General Manager of Huizhou Innovative Investment Co., Ltd. in November
2020; in June 2021, he was appointed as Deputy General Manager of Huizhou State-Owned Asset Investment
Group.
     Mr. Wang Cheng, Executive Director and COO of TCL Tech. Born in 1974, MBA, EMBA from the
University of Texas at Arlington. Since joined TCL in 1997 and successively served in multiple management
positions at TCL multimedia overseas business, human resources director and senior vice president of TCL Group.
He once worked as the CEO of TCL Electronics from October 2017 to August 2021, and CEO of TCL Industrial
Holdings from January 2019 to August 2021. From August 2021, he was appointed as COO of TCL Tech.
     Mr. Shen Haoping, Executive Director and Senior Vice President of TCL Tech. Born in 1962, he holds a
bachelor's degree. He is a Senior Engineer receiving a special allowance from the State Council. At present, he
serves as Vic Chairman and General Manager of Tianjin Zhonghuan Semiconductor Co., Ltd. and Deputy Secretary
of the Party Committee and General Manager of Tianjin Zhonghuan Electronics and Information Group Co., Ltd.
     Mr. Liao Qian, Executive Director, Senior Vice President, and Secretary of the Board of Directors of TCL
Tech. He obtained a Master’s Degree and holds the Occupational Qualification Certificate of the People’s Republic
of China for Law. From August 2006 to February 2014, he worked at Guotai Junan International Holdings Co., Ltd.
and was engaged in the investment banking business in Hong Kong and Mainland China. Joining TCL Corporation
in March 2014, he is in charge of strategic planning, strategic investment and matters in relation to domestic and
overseas capital markets. He is also Chairman of Tonly Technology Co., Ltd. and CDOT (0334.HK); Vice Chairman
of the Board of Tianjin 712 Communication & Broadcasting Co., Ltd. (603712.SH), and Director of Tianjin
Zhonghuan (002129.SZ).
     Mr. Zhao Jun, Executive Director and Senior Vice President of TCL Tech. He was born in Xianyang City,
Shaanxi Province in November 1972, and is a member of the Communist Party of China. He graduated from
Northwestern Polytechnical University with a master's degree of engineering in polymer materials. After graduation,
he served as vice president at Tianma Micro-Electronics Group, and currently serves as Senior Vice President of
TCL Tech and CEO of TCL CSOT. From April 1997 to January 2018, he worked with Tianma Micro-Electronics
Group, successively serving as a pre-process engineer, deputy manager of the quality department, director of
manufacturing and quality, deputy general manager, assistant president, and general manager and vice president of
the procurement center and quality center. From May 2018 to October 2019, he joined Wuhan China Star
Optoelectronics Technology Co., Ltd. as general manager and director. From October 2019 to February 2021, he
served as Vice President of TCL Tech, Senior Vice President of TCL CSOT, General Manager of TCL CSOT Large


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Size Business Group and General Manager of TV Business Department. On July 30, 2021, he was awarded the title
of “Shenzhen Top 100 Innovative Trail-blazers” in the new era. From February 2021 to December 2022, he served
as Chief Operating Officer of TCL CSOT and presided over the overall work of the CSOT. Since December 2022,
he has served as Senior Vice President of TCL Tech and CEO of TCL CSOT.
        Mr. Lin Feng, Non-executive Director of TCL Tech. He graduated from Central South University of
Economics and Law in 2011 with a master’s degree in management science and engineering. From July 2011 to
January 2013, he worked for China Sanjiang Space Group Co., Ltd.; from February 2013 to May 2016, he served
as project director and deputy director of the Industrial Investment Department of Hubei Science & Technology
Investment Group Co., Ltd.; from May 2016 to May 2018, he served as deputy general manager of Wuhan Optics
Valley Industrial Investment Co., Ltd.; since May 2018, he has been appointed as general manager of Wuhan Optics
Valley Industrial Investment Co., Ltd.
        Mr. Gan Yong, independent director of TCL Tech. He is a Professor Senior Engineer, metallurgist and
materials scientist, academician of the Chinese Academy of Engineering (CAE) (2001), and doctoral supervisor.
He serves as Director of the National Advisory Committee on New Materials Industry Development, Honorary
President of the Association of China Rare Earth Industry (ACREI), and President of the Chinese Society for Metals
(CSM). In June 2010, he was elected Assistant Dean of the CAE and became a member of the 12th National
Committee of the Chinese People's Political Consultative Conference (CPPCC) and Deputy Director of the
Committee of Population, Resources and Environment of the CPPCC.
        Mr. Chen Shiyi, independent director of TCL Tech. He was born of Han ethnicity in Tiantai, Zhejiang in
October 1956. He started to work in July 1987. His titles include doctor of science, doctoral supervisor, academician
of the Chinese Academy of Sciences (CAS) and the World Academy of Sciences (TWAS), and second principal of
the Southern University of Science and Technology (SUSTech). Currently, he is president of the Eastern Institute
for Advanced Study, a chair professor at the Southern University of Science and Technology, a member of the 10th
National Committee of the China Association for Science and Technology, vice chairman of the 2nd Council of the
China Engineering Education Accreditation Association, vice chairman of the 11th Council of the Chinese Society
of Theoretical and Applied Mechanics, a member of the Standing Committee of the 7th Committee of the CPPCC
Shenzhen Municipal Committee, and a member of the Standing Committee of the 16th People’s Congress of Ningbo
City.
        Mr. Wan Liangyong, independent director of TCL Tech. Born in 1979, he is a Party member who joined the
“National Leading Accounting Talent” of the Ministry of Finance of the People’s Republic of China. Currently, he
is a professor and a doctoral supervisor at the School of Business Administration of South China University of
Technology, and director of the Accounting Development Research Center. He is also a council member of the
Accounting Society of China (ASC), and independent director of multiple companies, including Goworld.
        Mr. Liu Xunci, independent director of TCL Tech., professor, and Top Talent in Huizhou City. He was born
in Longhui County, Hunan Province, and was awarded a master’s degree. In September 1976, he became an
educated urban young man working in the countryside. In July 1983, he started to work upon graduation. He taught
at Huizhou University as a lecturer, associate professor, professor, and teaching supervisor. He is now an expert of
the Decision-making Consultative Committee of Huizhou Municipal People’s Government.


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    Mr. He Zhuohui, Chairman of the Supervisory Committee of TCL Tech. Born in July 1966, he serves as Full-
time Deputy Secretary and Director in Huizhou Investment Holdings Co., Ltd. From August 1991 to June 1995, he
served as Deputy Director of the General Office and Director of the Office in China Construction Bank Huiyang
Branch; from June 1995 to August 2008, he served as Manager at Ren chengchang (Huizhou) Investment Co., Ltd.;
from August 2008 to September 2009, he served as General Manager of Huizhou Investment Holdings Asset
Management Co., Ltd.; from September 2009 to December 2012, he served as Manager of the Management and
Development Department in Huizhou Investment Holdings Co., Ltd. and Deputy General Manager and Director of
Huizhou Fairway Investment and Construction Co., Ltd.; from December 2012 till now, he serves as Full-time
Deputy Secretary at Huizhou Investment Holdings Co., Ltd.; from February 2014 till now, he serves as Director at
Huizhou Investment Holdings Co., Ltd. (during which period, he has also served as Chairman of the Fifth, Sixth,
And Seventh Supervisory Committees of TCL Technology Group Corporation since August 2015).
    Ms. Qiu Haiyan, Supervisor of TCL Tech. Born in December 1975, She obtained her Bachelor’s Degree from
the Central Radio & TV University in 2011. She is an accountant and member of the Communist Party of China.
From July 1995 to March 1998, she served as a finance officer in Huizhou Zongli Real Estate Company; from
March 1998 to June 2002, she served as a finance officer at Huizhou Trust Investment Company; from June 2002
till now, she serves as accountant, deputy manager and manager of the Finance Department in Huizhou Investment
Holdings Co., Ltd.; from February 2014 till now, she serves as workers’ director in Huizhou Investment Holdings
Co., Ltd. (from June 2009 to February 2013, she concurrently served as supervisor at Huizhou Fairway Investment
and Construction Co., Ltd.; from March 2014 to March 2022, she concurrently served as an employee director of
Huizhou Investment Development Co., Ltd.; since April 2014, she has concurrently served as a Supervisor of the
Fifth, Sixth, and Seventh Supervisory Committees of the Company; and since June 2022, she has concurrently
served as a director of Huizhou Industrial Investment Development Master Fund Co., Ltd.).
    Mr. Mao Tianxiang, Employee Supervisor of TCL Tech. Now, he is Deputy Secretary of the Party
Committee, Assistant President, and Head of the Audit and Supervision Department of TCL Tech. He was born in
January 1980 and graduated with a bachelor degree in July 2003. From July 2003 to June 2005, he served as
Secretary at China Telecom Guangxi Guilin Company; from July 2005 to November 2007, he served as Supervisor
of PR and Communications in the Strategic OEM Business Division and Officer in the President’s Office in the
Company; from November 2007 to August 2014, he successively served as deputy head of the Legal Section and
head of the General Section in Huizhou Auditing Bureau, the Deputy Director of the Law Enforcement
Effectiveness Supervision Office of the Huizhou Municipal Commission for Discipline Inspection, and the Director
of the Deputy Department; since September 2014, he has worked in the Company and successively served as Deputy
Director of the Party and Mass Work Department, Secretary of the Youth League Committee, Acting General
Manager of the Electronic Devices Business Department of Techne Group, General Manager of TCL Resource
Investment, Chief Auditor of TCL CSOT, etc. Since 2019, he has successively been a Supervisor of Tianjin 712
Communication & Broadcasting Co., Ltd. (603712.SH), the Chairman of the Supervisory Committee of Highly
Information Industry Co., Ltd., and the Chief Supervisor of TCL Financial Co., Ltd. Since October 2020, he has
been Chairman of the Supervisory Committee of TCL Zhonghuan New Energy Technology Co., Ltd. (002129.SZ);
since November 2020, he has been Chairman of the Supervisory Committee of Tianjin Printronics Circuit


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Corporation (002134.SZ); since December 2020, he has been Assistant President, Head of the Audit and Supervision
Department, Deputy Secretary of the Party Committee and Secretary of the Discipline Inspection Committee of
TCL Tech.
     Ms. Li Jian, CFO of TCL Tech. Born in 1972, she has an MBA from MIT. Joined TCL in 2004, successively
serving as the capital director of TCL Multimedia Technology Holding Co., Ltd., the deputy general manager and
general manager of TCL Group Finance Co., Ltd., and now serves as the chairman of TCL Technology Group
Finance Co., Ltd. From August 2021, she is appointed as CFO of TCL Tech.
     Mr. Yan Xiaolin, a doctor and professor senior engineer, serves as Chief Technology Officer (CTO) and
Senior Vice President of TCL Tech and Dean of the Wuhan TCL Industrial Technology Research Institute, Ltd.;
Director of TCL CSOT, and Chief Scientist of TCL CSOT; Chairman of Guangdong Juhua Printed Display
Technology Co., Ltd., Chairman of TCL Microchip Technology (Guangdong) Co., Ltd., Chairman of Xiamen
Extremely PQ Display Technology Co., Ltd., Chairman of Mostar Semiconductor (Guangdong) Co., Ltd., Director
of National Center of Technology Innovation for Display; Chairman of the IEC Technical Committee on Electronic
Display Devices, Vice Chairman and President of Asia of the Organic Printing Electronics Society, and Fellow of
the Society for Information Display (SID). He is an expert of the National Advisory Committee on New Materials
Industry Development and an initiator of the New Display Direction of the National “Key New Materials R&D and
Application Projects (2030)”, an initiator of the New Display Direction of the “National High-tech Research and
Development Plan (863 Plan)” under the “12th Five-Year Plan” of the Ministry of Science and Technology of the
People’s Republic of China, an initiator of the New Display Direction of the key research and development plan of
“Special Project for Strategic Advanced Electronic Materials” under the national “13th Five Year Plan”, an initiator
of the New Display Direction of the key research and development plan of “Key Special Project for New Display
and Strategic Electronic Materials” implementation scheme under the national “14th Five Year Plan”. He is also a
Leading Talent in Scientific and Technological Innovation of the Special Support Plan for High-level Talent of the
Organization Department of the Central Committee of the CPC and Young Expert with Outstanding Contribution
to China of the National “Hundred-Thousand-Ten Thousand Talent Project”.
Positions held at the shareholding entity
√ Applicable □ Not applicable
                                                                                                         Any pay received
                            Name of shareholding        Office title at the     Start of     End of
        Name                                                                                                  from the
                                    entity             shareholding entity       tenure      tenure
                                                                                                        shareholding entity?
                         Ningbo Jiutian Liancheng
                                                      Representative
                         Equity Investment                                     August
 Li Dongsheng                                         appointed by the                     Incumbent    No
                         Partnership (Limited                                  2014
                                                      executive partner
                         Partnership)
                         Wuhan Optics Valley
 Lin Feng                Industrial Investment Co.,   General Manager          May 2018    Incumbent    Yes
                         Ltd.
                         Huizhou Investment           Full-time Deputy         December
 He Zhuohui                                                                                Incumbent    Yes
                         Holding Co., Ltd.            Secretary and Director   2012
 Qiu Haiyan              Huizhou Investment           Workers’ Director       February    Incumbent    Yes


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                           Holding Co., Ltd.                                             2014
 Notes to positions
 held at the               Not applicable
 shareholding entity
Positions held at other entities
√ Applicable □ Not applicable
                                                                                                                        Pay received
                                                                 Office title at other          Start of     End of
           Name                    Name of other entities                                                               from other
                                                                        entities                tenure       tenure
                                                                                                                             entities
                                                                                            September
                          TCL Industrial Holdings Co., Ltd.     Chairman                                   Incumbent   Yes
                                                                                            2018
 Li Dongsheng                                                   Independent and
                          Tencent Holdings Limited              non-executive               April 2004     Incumbent   Yes
                                                                director
                          Huizhou New Material Industrial
                                                                Chairman and                October
                          Park Investment and Construction                                                 Incumbent   No
                                                                general manager             2019
                          Co., Ltd
 Liang Weihua             Huizhou Innovation Investment         Chairman and                November
                                                                                                           Incumbent   No
                          Co., Ltd                              general manager             2020
                          Huizhou State-owned Capital           Deputy General
                                                                                            June 2021      Incumbent   Yes
                          Investment Group Co., Ltd             Manager
                          TCL Microchip Technology
                                                                Director                    May 2021       Incumbent   No
 Wang Cheng               (Guangdong) Co., Ltd.
                          Amlogic (Shanghai) Co., Ltd           Director                    May 2020       Incumbent   No
                          Tianjin 712 Communication &           Vice Charmian of
 Liao Qian                                                                                  June 2019      Incumbent   No
                          Broadcasting Co., Ltd.                the Board
                          Hubei Xiaomi Changjiang
                                                                                            October
                          Industrial Investment Fund            Supervisor                                 Incumbent   No
                                                                                            2017
                          Management Co., Ltd.
                          Wuhan Optical Valley Fiberhome
 Lin Feng                                                                                   August
                          Investment Fund Management            Director                                   Incumbent   No
                                                                                            2018
                          Co., Ltd.
                          Wuhan Weineng Battery Assets                                      August
                                                                Director                                   Incumbent   No
                          Co., Ltd.                                                         2021
 Gan Yong                 The Chinese Society for Metals        President                   May 2017       Incumbent   Yes
                          Eastern Institute for Advanced                                    August
 Chen Shiyi                                                     President                                  Incumbent   Yes
                          Study                                                             2022
                                                                                            February
                          URTRUST Insurance Co., Ltd.           Independent director                       Incumbent   Yes
                                                                                            2020
 Wan Liangyong
                                                                                            October
                          Guangdong Goworld Co., Ltd            Independent director                       Incumbent   Yes
                                                                                            2021
                          Tianjin 712 Communication &
 Mao Tianxiang                                                  Supervisor                  June 2019      Incumbent   No
                          Broadcasting Co., Ltd.
 Li Jian                  Bank of Shanghai Co., Ltd.            Director                    January        Incumbent   No


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                                                                                     2022
                          TCL Microchip Technology
 Yan Xiaolin                                                  Chairman               May 2021       Incumbent      No
                          (Guangdong) Co., Ltd.
 Notes to positions
                          Other major jobs or concurrently held jobs and resume
 held at other entities
Punishments imposed in recent three years by the securities regulator on the incumbent directors, supervisors and senior mana gement
as well as those who left in the Reporting Period
√ Applicable □ Not applicable
     For details, please refer to the relevant announcements disclosed by the Company on the designated information disclosure media
on October 29, 2022 and January 20, 2023.

3. Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and senior
management
     (I) Decision-making procedure
     The allowances for directors and supervisors of the Company were reviewed and approved by the Company at the
second extraordinary general meeting in 2008 and the fourth extraordinary general meeting in 2011. The remuneration
for senior executives is subject to the Company’s remuneration rules.
     (II) Determination basis and actual payment
     1. Remuneration or allowance criteria for directors
     The remuneration of executive directors: As the Company pays remuneration to executive directors, it shall not pay
additional allowances to them. The remuneration is determined as per the Company’s remuneration management rules.
     The allowances of non-executive directors: RMB160,000/year (tax inclusive):
     The allowances of independent non-executive directors: The allowance for each independent non-executive director
is RMB160,000/year (tax inclusive), and the allowance for the convener of the Audit Committee is RMB200,000/year
(tax inclusive).
     The Company shall bear the travel expenses arising from the independent directors attending the Company’s board
and general meetings, as well as other expenses arising from non-executive directors and independent directors’
exercising their functions and powers as per the Company’s Articles of Association.
     2. Remuneration or allowance criteria for supervisors
     The allowance for the Chairman of the Supervisory Committee is RMB160,000/year (tax inclusive);
     The allowance for the shareholder supervisor is RMB100,000/year (tax inclusive);
     And as the Company pays remuneration to the employee supervisor, it shall not pay additional allowances to him/her.
     The Company shall bear the travel expense arising from the shareholder supervisors attending the Company’s
Supervisory Committee meetings, general meetings and board meetings (as a non-voting delegate), as well as other
expenses arising from his/her exercising his/her functions and powers as per the Company’s Articles of Association.
     3. Remuneration criteria for senior management
     The remuneration of senior management is determined as per the Company’s Articles of Association and
remuneration management rules.
Remuneration of directors, supervisors and senior management for the Reporting Period
                                                                                                                 Unit: RMB'0,000
      Name                Position           Gender              Age          Position Status    Total before-      Remuneration



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                                                                                                    tax                 from any
                                                                                                remuneration       related party or
                                                                                                  from the                not
                                                                                                 Company
                    Chairman of
  Li Dongsheng                               Male                65               Incumbent           1037.41      Yes
                    the Board, CEO
                    Vice Charmian
  Liang Weihua                               Male                41               Incumbent                    0   Yes
                    of the Board
   Wang Cheng       Director, COO            Male                48               Incumbent               644.64   No
                    Director, Senior
     Zhao Jun                                Male                50               Incumbent                12.19   No
                    Vice President
                    Director, Senior
  Shen Haoping                               Male                60               Incumbent                Note    No
                    Vice President
                    Director, Board
                    Secretary and
    Liao Qian                                Male                42               Incumbent               565.34   No
                    Senior Vice
                    President
     Lin Feng       Director                 Male                37               Incumbent                    0   Yes
                    Independent
    Gan Yong                                 Male                75               Incumbent                    0   No
                    director
                    Independent
    Chen Shiyi                               Male                66               Incumbent                  20    No
                    director
         Wan        Independent
                                             Male                43               Incumbent                  20    No
    Liangyong       director
                    Independent
    Liu Xunci                                Male                64               Incumbent                  16    No
                    director
                    Chairman of
    He Zhuohui      the Supervisory          Male                57               Incumbent                  16    Yes
                    Committee
    Qiu Haiyan      Supervisor              Female               48               Incumbent                  10    Yes
                    Employee
  Mao Tianxiang                              Male                42               Incumbent               153.08   No
                    Supervisor
      Li Jian       CFO                     Female               50               Incumbent               639.60   No
                    Senior Vice
    Yan Xiaolin                              Male                56               Incumbent               722.25   No
                    President, CTO
     Du Juan        Former director         Female               52                Former                      0   Yes
                    Former
     Jin Xuzhi      Director, Senior         Male                68                Former                 950.59   No
                    Vice President
     Liu Kun        Former director          Male                44                Former                      0   No
 Total                       --                --                 --                 --               4,807.10
Note: 1. The above amounts include fixed salaries, allowances, and performance bonuses received from the Company by the directors,
supervisors, and senior executives of the Company during their terms of office.
2. As at the end of the Reporting Period, non-executive director Mr. Liang Weihua and independent director Mr. Gan Yong had not


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received their respective allowances of RMB341.300 thousand (before tax), and independent director Mr. Chen Shiyi had not received
the allowance of RMB141.300 thousand (before tax); non-executive director Mr. Lin Feng gave up the allowance; Director Shen
Haoping received an allowance from TCL Zhonghuan. The specific data are subject to the announcements of TCL Zhonghuan.
3. In 2022, the Company took out liability insurances for all its directors, supervisors, and senior executives, with a total premium of
RMB421.8 thousand per year. The participation of the directors, supervisors, and senior executives in the Company’s employee stock
ownership plan is detailed in the relevant announcements issued by the Company.

VI. Performance of Duty by Directors in the Reporting Period
1. Board of Directors During the Reporting Period
                          Date of the       Date of
       Meeting                                                                    Resolutions of the meeting
                            meeting        disclosure
 The 15th meeting of                                      All proposals were adopted. Please refer to the Notice on Resolutions
                         January 21,     January 24,
 the 7th Board of                                         adopted at the 15th Meeting of the 7th Board of Directors disclosed on
                         2022            2022
 Directors                                                www.cninfo.com.cn on January 24, 2022 (Notice No.: 2022-002)
 The 16th meeting of                                      All proposals were adopted. Please refer to the Notice on Resolutions
                         March 18,       March 21,
 the 7th Board of                                         adopted at the 16th Meeting of the 7th Board of Directors disclosed on
                         2022            2022
 Directors                                                www.cninfo.com.cn on March 21, 2022 (Notice No.: 2022-007)
 The 17th meeting of                                      All proposals were adopted. Please refer to the Notice on Resolutions
                         April 13,       April 14,
 the 7th Board of                                         adopted at the 17th Meeting of the 7th Board of Directors disclosed on
                         2022            2022
 Directors                                                www.cninfo.com.cn on April 14, 2022 (Notice No.: 2022-017)
 The 18th meeting of                                      All proposals were adopted. Please refer to the Notice on Resolutions
                         April 27,       April 28,
 the 7th Board of                                         adopted at the 18th Meeting of the 7th Board of Directors disclosed on
                         2022            2022
 Directors                                                www.cninfo.com.cn on April 28, 2022 (Notice No.: 2022-031)
 The 19th meeting of                                      All proposals were adopted. Please refer to the Notice on Resolutions
                         May 31,
 the 7th Board of                        June 1, 2022     adopted at the 19th Meeting of the 7th Board of Directors disclosed on
                         2022
 Directors                                                www.cninfo.com.cn on June 1, 2022 (Notice No.: 2022-054)
 The 20th meeting of                                      All proposals were adopted. Please refer to the Notice on Resolutions
                         June 24,        June 27,
 the 7th Board of                                         adopted at the 20th Meeting of the 7th Board of Directors disclosed on
                         2022            2022
 Directors                                                www.cninfo.com.cn on June 27, 2022 (Notice No.: 2022-065)
 The 21st meeting of                                      All proposals were adopted. Please refer to the Notice on Resolutions
 the 7th Board of        July 6, 2022    July 7, 2022     adopted at the 21st Meeting of the 7th Board of Directors disclosed on
 Directors                                                www.cninfo.com.cn on July 7, 2022 (Notice No.: 2022-069)
 The 22nd meeting                                         All proposals were adopted. Please refer to the Notice on Resolutions
                         August 8,       August 9,
 of the 7th Board of                                      adopted at the 22nd Meeting of the 7th Board of Directors disclosed on
                         2022            2022
 Directors                                                www.cninfo.com.cn on August 9, 2022 (Notice No.: 2022-085)
 The 23rd meeting of                                      All proposals were adopted. Please refer to the Notice on Resolutions
                         August 12,      August 13,
 the 7th Board of                                         adopted at the 23rd Meeting of the 7th Board of Directors disclosed on
                         2022            2022
 Directors                                                www.cninfo.com.cn on August 13, 2022 (Notice No.: 2022-087)
 The 24th meeting of                                      All proposals were adopted. Please refer to the Notice on Resolutions
                         August 26,      August 27,
 the 7th Board of                                         adopted at the 24th Meeting of the 7th Board of Directors disclosed on
                         2022            2022
 Directors                                                www.cninfo.com.cn on August 27, 2022 (Notice No.: 2022-091)
 The 25th meeting of                                      All proposals were adopted. Please refer to the Notice on Resolutions
                         October 21,     October 25,
 the 7th Board of                                         adopted at the 25th Meeting of the 7th Board of Directors disclosed on
                         2022            2022
 Directors                                                www.cninfo.com.cn on October 25, 2022 (Notice No.: 2022-104)
 The 26th meeting of     December        December         All proposals were adopted. Please refer to the Notice on Resolutions


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 the 7th Board of         12, 2022         13, 2022           adopted at the 26th Meeting of the 7th Board of Directors disclosed on
 Directors                                                    www.cninfo.com.cn on December 13, 2022 (Notice No.: 2022-114)
 The 27th meeting of                                          All proposals were adopted. Please refer to the Notice on Resolutions
                          December         December
 the 7th Board of                                             adopted at the 27th Meeting of the 7th Board of Directors disclosed on
                          23, 2022         24, 2022
 Directors                                                    www.cninfo.com.cn on December 24, 2022 (Notice No.: 2022-119)

2. Attendance of Independent Directors at Board Meetings and General Meetings
                                       Attendance of directors at board meetings and general meetings
                                                                                                                   The director
                    Total number                            Board
                                                                                  Board                                 failed to
                      of board           Board             meetings                                  Board
                                                                                 meetings                           attend two      General
                    meetings the        meetings          attended by                            meetings the
    Director                                                                     attended                          consecutive      meetings
                      director         attended on          way of                               director failed
                                                                                 through a                               board      attended
                     eligible to          site           telecommunic                              to attend
                                                                                  proxy                            meetings or
                       attend                                ation
                                                                                                                          not
 Li Dongsheng                    13                  2                11                     -                 -   No                          1
 Liang Weihua                    13                  1                12                     -                 -   No                          1
 Wang Cheng                        -                 -                  -                    -                 -   No                          -
 Shen Haoping                    13                  1                12                     -                 -   No                          -
 Liao Qian                       13                  2                11                     -                 -   No                          3
 Zhao Jun                          -                 -                  -                    -                 -   No                          -
 Lin Feng                          9                 1                  8                    -                 -   No                          1
 Gan Yong                        13                  1                12                     -                 -   No                          -
 Chen Shiyi                      13                  1                12                     -                 -   No                          -
 Wan
                                 13                  1                12                     -                 -   No                          3
 Liangyong
 Liu Xunci                       13                  2                11                     -                 -   No                          3
 Du Juan                         12                  2                10                     -                 -   No                          -
 Jin Xuzhi                       12                  1                11                     -                 -   No                          -
 Liu Kun                           2                 -                  2                    -                 -   No                          -
Explanation for absence from the Board meetings in person for two consecutive times: None

3. Objections Raised by Directors on Matters of the Company
Whether directors raised objections on matters of the Company
□ Yes √ No
No such cases in the Reporting Period.
4. Other information about the Performance of Duty by Directors
Whether directors adopted the proposals of the Company
√ Yes □ No
Explanation for the proposal adopted by directors or not
     During the reporting period, the directors of the Company diligently performed their duties and obligations in accordance wit h
the provisions of the Company Law, the Securities Law, the Listing Rules of Shenzhen Stock Exchange, the Articles of Association, the
Rules of Procedure of the Board of Directors and other laws, regulations and rules, and put forward valuable professional opinions on
the internal control and daily operation decision-making of the Company, which effectively improved the standard operation and
scientific decision-making of the Company. The independent directors of the Company performed their duties independently and
impartially in strict accordance with the Regulations on the Work of Independent Directors and relevant laws and regulations, and
issued independent and impartial opinions on major matters such as the Company’s private placement, annual profit distributio n and


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annual daily affiliated transaction forecast, effectively safeguarded the legitimate rights and interests of investors, especially small and
medium-sized investors.

VII. Performance of Duties by Dedicated Committees During the Reporting Period
                                                  Date of                                                               Other    Objection
                                    Meetings                                            Important opinions and
      Name           Members                        the          Meeting agenda                                         duties   matters (if
                                    convened                                                proposals raised
                                                  meeting                                                           performed       any)
                                                                                       The audit committee
                                                                                       carried out its work in
                                                                                       strict accordance with the
                                                              1. 2021 Audit Plan for
                                                                                       Company Law, the
                                                              Financial Statements
                                                                                       regulatory rules of the
                                                              of TCL Technology
                                                                                       CSRC, the Articles of
                                                January 4,    Group Corporation;                                                 Not
                                                                                       Association and the Rules    -
                                                2022          2. 2021 Internal                                                   applicable
                                                                                       of Procedure of the Board
                                                              Control Plan of TCL
                                                                                       of Directors. Upon
                                                              Technology Group
                                                                                       thorough communication
                                                              Corporation.
                                                                                       and discussion, all
                                                                                       proposals were
                                                                                       unanimously adopted.
                                                              1. Proposal on the
                                                              2021 Annual
                                                              Financial Report of
                                                                                       The audit committee
                                                              the Company;
                                                                                       carried out its work in
                                                              2. Proposal on the
                                                                                       strict accordance with the
                                                              Summary Report of
                                                                                       Company Law, the
                                                              the Audit Committee
                   Wan                                                                 regulatory rules of the
                                                              under the Board
 Audit             Liangyong,                                                          CSRC, the Articles of
                                            3   April 26,     Regarding the 2021                                                 Not
 Committee         Chen Shiyi, Du                                                      Association and the Rules    -
                                                2022          Annual Audit Carried                                               applicable
                   Juan                                                                of Procedure of the Board
                                                              out by Da Hua
                                                                                       of Directors. Upon
                                                              Certified Public
                                                                                       thorough communication
                                                              Accountants (Special
                                                                                       and discussion, all
                                                              General Partnership);
                                                                                       proposals were
                                                              3. Proposal on
                                                                                       unanimously adopted.
                                                              Renewing the
                                                              Engagement of the
                                                              Accounting Firm.
                                                                                       The audit committee
                                                                                       carried out its work in
                                                                                       strict accordance with the
                                                                                       Company Law, the
                                                              1. Proposal on the
                                                                                       regulatory rules of the
                                                              Text of the
                                                August                                 CSRC, the Articles of                     Not
                                                              Company’s 2022                                       -
                                                26, 2022                               Association and the Rules                 applicable
                                                              Semiannual Report
                                                                                       of Procedure of the Board
                                                              and Its Summary
                                                                                       of Directors. Upon
                                                                                       thorough communication
                                                                                       and discussion, all
                                                                                       proposals were



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                                                                                     unanimously adopted.
                                                           Proposal on the
                                                           Remuneration of the
                                             April 27,                               All proposals were                Not
                                                           Directors, Supervisors,                                -
                                             2022                                    adopted upon deliberation.        applicable
                                                           and Senior Executives
                                                           in 2021
                                                           1. Proposal on
                                                           Adjusting the
                                                           Company's 2021-2023
                                                           Employee Stock
                                                           Ownership Plan
                 Gan Yong,                                 (Phase I) and the
 Remuneration    Wan                                       Management
 and Appraisal   Liangyong,              2                 Measures
 Committee       Liu Xunci, Du                             2. Proposal on the
                 Juan                        May    31,    Company’s 2021-2023      All proposals were                Not
                                                                                                                  -
                                             2022          Employee Stock            adopted upon deliberation.        applicable
                                                           Ownership Plan
                                                           (Phase II) (Draft)
                                                           3. Proposal on the
                                                           Company’s 2021-2023
                                                           Employee Stock
                                                           Ownership Plan
                                                           (Phase II) and the
                                                           Management
                                                           Measures
                                                           Proposal on
                                                           Supplementing Non-
                 Chen Shiyi,                 April 13,                               All proposals were                Not
                                                           executive Directors to                                 -
                 Wan                         2022                                    adopted upon deliberation.        applicable
                                                           the 7th Board of
 Nomination      Liangyong,
                                         2                 Directors.
 Committee       Liu Xunci,
                                                           Proposal on
                 Liang Weihua,
                                             December      Supplementing             All proposals were                Not
                 Liao Qian                                                                                        -
                                             23, 2022      Directors to the 7th      adopted upon deliberation.        applicable
                                                           Board of Directors.
                                                           Proposal on the 2021
                                             April 26,     Environmental, Social     All proposals were                Not
                                                                                                                  -
                 Li Dongsheng,               2022          and Governance            adopted upon deliberation.        applicable
                 Liang Weihua,                             Report
                 Jin Xuzhi, Du                             Proposal on Using
 Strategy
                 Juan, Liao              2                 Raised Funds to Swap
 Committee
                 Qian, Shen                                Self-raised Funds
                                             December                                All proposals were                Not
                 Haoping, Chen                             Previously Invested in                                 -
                                             11, 2022                                adopted upon deliberation.        applicable
                 Shiyi                                     Projects that should be
                                                           Funded with Raised
                                                           Funds

VIII. Performance of Duty by the Supervisory Committee
Indicate whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting Period.
□ Yes √ No


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The Supervisory Committee raised no objections in the Reporting Period.

IX. Employees
1. Number, Functions and Educational Backgrounds of Employees
 Number of in-services of the Company as the parent                                                                           519
 Number of in-services of the Company of major subsidiaries                                                                69,309
 Total number of in-services of the Company at the end of period                                                           69,828
 Total number of paid employees in the Reporting Period                                                                    69,828
 Number of retirees to whom the Company as the parent or its
                                                                                                                            1,443
 major subsidiaries need to pay retirement pensions
                                                              Functions
                             Function                                                         Employees
 Production                                                                                                                45,409
 Sales                                                                                                                      2,341
 Technical                                                                                                                 14,458
 Financial                                                                                                                    882
 Administrative                                                                                                               514
 Management                                                                                                                 2,149
 Other                                                                                                                      4,075
 Total                                                                                                                     69,828
                                                      Educational backgrounds
                      Educational background                                                  Employees
 PhD                                                                                                                          287
 Master                                                                                                                     3,958
 Bachelor’s degree                                                                                                        14,745
 Junior college and others                                                                                                  4,218
 Total                                                                                                                     23,208
Note : The “educational backgrounds” section excludes overseas employees and front-line operators.

2. Employee Remuneration Policy
    The Company implements the remuneration management on a basis of the principle of “job-determined responsibilities and salary,
and pay for performance” Fixed income is determined based on position assessment, variable income is determined based on
performance appraisal and a remuneration distribution mechanism oriented by position and performance is established inside the
Company.

3. Employee Training Plans
    On September 10, 2000, the Training Department of TCL Headquarters shifted to TCL Training Institute. On August 16, 2005,
TCL Training Institute changed its name to TCL Leadership Development Institute, which focused on cultivation of management talent
and development of leadership. In 2015, the institute has been upgraded to TCL University. In 2021, to better focus on the business
scenario, training talents for the organization, TCL University was merged into the Organizational Department of the Company,
changed its name to the Learning and Development Group.
    The Learning and Development Group shoulders the mission of "empower employees and development of organization by men".
It has unswervingly implemented the “Hawk” Project for more than a decade, trained many excellent management personnel at all
levels for enterprises, and supported the development of the Company. In the meantime, to empower the strategy and business, create
an atmosphere that fosters the intensive learning and actively implement the digital transformation, the T-school online learning
platform was launched in 2020, and provided more than 2600 online courses to more than 60000 users as of the end of 2022, with a
total 760 thousand study hours. The Learning and Development Group is committed to creating an innovative experience combined

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with knowledge, functions and social culture learning.
     In 2022, we continued to optimize and upgrade leadership empowerment projects, strengthen to empower the strategy and
business, create an atmosphere that fosters the intensive learning, establish a more stereoscopic training system, and build a talent pool
for the management and professional talents in line with the Company’s strategic requirements.
     In the aspect of platform building, we will strengthen trainer and course management, improve T-classroom, build the knowledge
platform, upgrade user experience and provide extensive learning resources in all-round way and multiple formats.
     The Learning and Development Group will continue to build a more comprehensive training system and build a management and
professional talent pool that meets the strategic requirements of the Company. In terms of long-term goals, the Learning and
Development Group is committed to increasing the talent pool (i.e. 1:2 managers: talents), both quantitatively and qualitatively, and
gradually transforming the talent structure from a pyramid shape to a spindle.

4. Labor Outsourcing
□ Applicable   √ Not applicable
X. Profit Distributions to Shareholders (in the Form of Cash and/or Stock)
Formation, implementation or adjustment of profit distribution policy, especially cash dividend policy, in the Reporting Period
√ Applicable □ Not applicable
                                                     Special explanation of cash dividend policy
 In compliance with the Company’s Articles of Association and
                                                                                      Yes
 resolution of general meeting
 Specific and clear dividend standard and ratio                                       Yes
 Complete decision-making procedure and mechanism                                     Yes
 Independent directors faithfully performed their duties and
                                                                                      Yes
 played their due roles
 Non-controlling interests were able to fully express their
 opinions and desires and their legal rights and interests were                       Yes
 fully protected
 In case of adjusting or changing the cash dividend policy, the
 conditions and procedures involved were in compliance with                           Not applicable
 applicable regulations and were transparent
During the Reporting Period, the Company made profits and the parent company’s profits that were eligible for profit distribution for
shareholders were positive, but no cash dividend distribution plan was put forward.
√ Applicable □ Not applicable
    The reasons why the Company made profits and the parent
   company’s profits that were eligible for profit distribution for                      The purpose and use plan of the Company’s undistributed
   shareholders were positive, but no cash dividend distribution                                                      profits
         plan was put forward during the Reporting Period
                                                                                      The Company focuses on high-tech, asset-heavy, and long-term
 The final plan for the profit distribution and conversion of the capital             industrial development, with semiconductor display, new energy
 reserve to the share capital in 2022: based on the Company’s share                  photovoltaic, and semiconductor materials as its core business. In 2022,
 capital as at March 30, 2023, i.e., 17,071,891,607 shares, the capital               with the demand from the end-users weakened, the display industry
 reserve is to be converted into capital on a basis of 1 share for every 10           continued to cyclically adjusted at the bottom, and the prices of large -
 shares to all the shareholders. After the conversion, the total share capital        sized display panels dropped significantly year-on-year, resulted in
 of the Company will be changed to 18,779,080,767 shares. Neither cash                overall operational losses. The Company is shoring up the weak
 dividends nor bonus shares will be distributed this year.                            production capacity of medium-size products in line with recovered
                                                                                      demand with a more balanced business structure. In terms of the new



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                                                                                energy photovoltaic industry, the Company will seize the industrial
                                                                                development opportunities, continue to enhance advanced technology
                                                                                and capacity advantages, and accelerate to become a global leader. To
                                                                                meet the Company’s business development needs and in combination
                                                                                with the its actual operating conditions, the Company’s Board of
                                                                                Directors proposed for converting the capital reserve to 1 share for every
                                                                                10 shares held by the shareholders, instead of cash or share distribution
                                                                                for this year, to ensure the Company’s sustained, stable, and healthy
                                                                                development, and better safeguard the long-term interests of all the
                                                                                shareholders.
Final Dividend Plan for the Reporting Period
√ Applicable □ Not applicable
 Bonus issue from profit (share/10 shares)                                                                                                              0
 Cash dividend/10 shares (RMB) (tax inclusive)                                                                                                          0
 Bonus issue from capital reserves (share/10 shares)                                                                                                    1
 Share base (share)                                                                                                                      17,071,891,607
 Cash dividends (RMB’0,000) (tax inclusive)                                                                                                            0
 Cash dividends in other forms (e.g. share repurchase)
                                                                                                                                                  50,262
 (RMB’0,000)
 Total cash dividends (including those in other forms)
                                                                                                                                                  50,262
 (RMB’0,000)
 Distributable profits (RMB’0,000)                                                                                                            1,641,605
 Total cash dividends (including those in other forms) as a
                                                                                                                                          Not applicable
 percentage of total profits to be distributed (%)
                                                                  Cash dividend plan
 Not applicable
                                        Details of profit distribution or capital reserve fund transfer plan
      In combination with the its actual operating conditions and in order to ensure the Company’s sustained, stable, and healthy d evelopment in the
 future, and better safeguard the long-term interests of all the shareholders, the final plan for the profit distribution and conversion of the capital
 reserve to the share capital in 2022: based on the Company’s share capital as at March 30, 2023, i.e., 17,071,891,607 shares, the capital reserve is to
 be converted into capital on a basis of 1 share for every 10 shares to all the shareholders. After the conversion, the total share capital of the Company
 will be changed to 18,779,080,767 shares. Neither cash dividends nor bonus shares will be distributed this year.
      Where any changes occur, before the implementation of the dividend plan, to the total share capital of the Company due to any convertible
 bonds-to-stock programs, share repurchases, exercises of equity incentives, new share issues in refinancing, etc., the dividend will b e adjusted
 according to the principle of “adjusting the total conversion amount under the same conversion ratio”, subject to the actual conversion amount.

XI. Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
√ Applicable □ Not applicable

1. Equity Incentives
□ Applicable √ Not applicable
Equity Incentives Granted to Directors and Senior Management
□ Applicable √ Not applicable
Appraisal of and Incentive for Senior Management
    During the Reporting Period, the Company conducted performance appraisal and competency and quality assessment on the
managers, The Contract To Success (CTS) system was used for performance appraisal. In respect to the team led by each manager, the


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key factors of performance appraisal included phased strategic goals and operating goals of the current period (such as profits, cash
flow, products and service quality) and key projects; the comprehensive results of each accomplished goal were considered as the main
basis for motivating managers. In that way, corporate strategies were converted into internal management activities through the process
of goal setting, implementation and accomplishment to direct all systems of the Company and serve the purpose of enhancing the
overall efficiency of the Company. The management assessment consisted of four dimensions, included manager performance,
competence, experience and quality (potential, personality and aspiration/values). An annual examination report for managers was
generated through annual performance assessment, manager review and inspection, virtual assessment center, 360-degree behavior
interviews or online assessment, supported by key experience, personality or management style assessment, which served as the main
basis for appraising, appointing and dismissing leaders.

2. Implementation of Employee Stock Ownership Plan
√ Applicable □ Not applicable
All the valid employee stock ownership plans during the Reporting Period
                                                                                                       Proportion to       Funding source
                                                               Total number
                        Scope of            Number of                                                   total share               for
         Name                                                  of shares held         Changes
                       employees            employees                                                 capital of listed     implementing
                                                                (share)
                                                                                                        companies              the plan
 The Third          The Company's
 Global Partner     middle and                                                                                             The Company's
 Plan               senior                                                                                                 special
                                                    1,800          21,299,502      Not applicable               0.12%
                    management                                                                                             incentive fund
                    and outstanding                                                                                        for 2020
                    key staff
 2021-2023          The Company's
 Employee           middle and                                                                                             The Company's
 Stock              senior                                                                                                 special
                                                    3,600         113,143,154      Not applicable               0.66%
 Ownership Plan     management                                                                                             incentive fund
 (Phase I)          and outstanding                                                                                        for 2021
                    key staff
 2021-2023          The Company's
 Employee           middle and                                                                                             The Company's
 Stock              senior                                                                                                 special
                                                    3,600         106,484,364      Not applicable               0.62%
 Ownership Plan     management                                                                                             incentive fund
 (Phase II)         and outstanding                                                                                        for 2022
                    key staff
Shareholdings of Directors, Supervisors and Senior Management under the Employee Stock Ownership Plan during the Reporting
Period
                                                                                                                      Proportion to total
                                                            Beginning amount in         Ending amount in the
           Name                       Position                                                                      share capital of listed
                                                            the Reporting Period          Reporting Period
                                                                                                                          companies
                             Chairman of the Board,
 Li Dongsheng
                             CEO
                                                              About 10.93 million         About 27.07 million
 Wang Cheng                  Director, COO                                                                                              0.16%
                                                                            shares                    shares
                             Director, Board
 Liao Qian
                             Secretary and Senior


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                             Vice President
                             Director, Senior Vice
 Zhao Jun
                             President
                             Senior Vice President,
 Yan Xiaolin
                             CTO
 Li Jian                     CFO
 Mao Tianxiang               Employee Supervisor
Changes of asset management institutions during the Reporting Period
□ Applicable √ Not applicable
Changes of equity caused by the holder’s disposal share during the Reporting Period
□ Applicable √ Not applicable
Exercise of shareholder rights during the Reporting Period
□ Applicable √ Not applicable
Other relevant information and explanations of the Employee Stock Ownership Plan during the Reporting Period.
□ Applicable √ Not applicable
Changes of the members of Employee Stock Ownership Plan Management Committee
□ Applicable √ Not applicable
Financial impact of Employee Stock Ownership Plan on the Company during the Reporting Period and related accounting treatment
√ Applicable □ Not applicable
     The financial, accounting treatment and taxation involved in the Company’s shareholding plan shall be implemented according
to laws and regulations and normative documents on financial systems, accounting standards, taxation systems, etc. The holder of the
shareholding plan shall pay the personal income tax generated due to the shareholding plan according to law, and can choose to sell
the corresponding amount of shares to the shareholding plan to cover personal income tax. The remaining shares will be attributed to
individuals.
Termination of Employee Stock Ownership Plan during the Reporting Period
□ Applicable √ Not applicable

3. Other Employee Incentives
□ Applicable   √ Not applicable
XII. Construction and Implementation of Internal Control System During the Reporting Period
1. Construction and Implementation of Internal Control System
     In accordance with the provisions of internal control standard system, the Company establishes, improves and effectively
implements internal controls, reasonably ensures the legal compliance of business management, asset security, authenticity and
integrity of financial statements and relevant information, improves business efficiency and effectiveness, and promotes the realization
of development strategy.

2. Material Internal Control Weaknesses Identified in the Reporting Period
□ Yes √ No

XIII. Management and Control of Subsidiaries by the Company During the Reporting Period
□ Applicable √ Not applicable




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XIV. Internal Control Self-Evaluation Report or Independent Auditor’s Report on Internal
Controls
1. Internal Control Self-Evaluation Report
 Disclosure date of the internal control
                                              March 31, 2023
 self-evaluation report
 Index to the disclosed internal control
                                              http://www.cninfo.com.cn
 self-evaluation report
 Evaluated entities combined assets as a
                                                                                                                                    97%
 percentage of consolidated total assets
 Evaluated entities combined revenue as a
                                                                                                                                    97%
 percentage of consolidated revenue
                                       Identification standards for internal control weaknesses
                                                Weaknesses in internal controls over          Weaknesses in internal controls not
                   Category
                                                          financial reporting                     related to financial reporting
                                                                                           Material weaknesses: (1) material
                                                                                           violations of the country’s laws or
                                              Material weaknesses: (1) an invalid          regulations in the Company’s operating
                                              control environment; (2) fraud of            activities; (2) any material decision-
                                              directors, supervisors and senior            making error that is caused by an
                                              management; (3) any material                 irrational decision-making procedure and
                                              misstatement of financial reporting of the   causes material property loss to the
                                              current period which is identified by the    Company; (3) a massive loss of the key
                                              registered accountants but which the         managerial or technical personnel; and
                                              Company failed to report; and (4) invalid    (4) frequent negative news coverage that
                                              internal control supervision by the Audit    causes great concern for the regulatory
 Nature standard
                                              Committee and the internal audit organ.      administration and a material long-
                                              Serious weaknesses: A single weakness        lasting impact on the Company’s brand
                                              or a group of weaknesses which are less      and reputation.
                                              serious than a material weakness but         Serious weaknesses: A single weakness
                                              could still cause deviation from the         or a group of weaknesses which are less
                                              control objectives                           serious than a material weakness but
                                              Common weaknesses: Other internal            could still cause deviation from the
                                              control weaknesses that are neither          control objectives
                                              material nor serious                         Common weaknesses: Other internal
                                                                                           control weaknesses that are neither
                                                                                           material nor serious
                                              Material weaknesses: misstatements ≥
                                              5% of profit before tax;
                                              Serious weaknesses: 3% of profit before
 Quantitative standard                        tax ≤misstatements <5% of profit before     Not applicable
                                              tax;
                                              Common weaknesses: misstatements
                                              <3% of profit before tax



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 Number of material weaknesses in
                                                                                                                         Not applicable
 internal controls over financial reporting
 Number of material weaknesses in
 internal controls not related to financial                                                                              Not applicable
 reporting
 Number of serious weaknesses in
                                                                                                                         Not applicable
 internal controls over financial reporting
 Number of serious weaknesses in
 internal controls not related to financial                                                                              Not applicable
 reporting

2. Independent Auditor’s Report on Internal Controls
√ Applicable □ Not applicable
                               Opinion paragraph in the independent auditor’s report on internal controls
 In our opinion, TCL Technology Group Corporation maintained, in all material respects, effective internal control over financ ial
 reporting as of December 31, 2022, based on the Basic Rules on Enterprise Internal Controls and other applicable rules.
                                                                            The Internal Control Audit Report of TCL Technology Group
 Independent auditor’s report on internal controls disclosed or not        Corporation disclosed at www.cninfo.com.cn dated March 31,
                                                                            2023
 Disclosure date                                                            March 31, 2023
 Index to such report disclosed                                             http://www.cninfo.com.cn
 Type of the auditor’s opinion                                             Unmodified opinions
 Material weaknesses in internal controls not related to financial
                                                                            No
 reporting
Indicate whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal controls.
□ Yes √ No
Indicate whether the independent auditor’s report on the Company’s internal controls is consistent with the internal control self-
evaluation report issued by the Company’s Board.
√ Yes □ No




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                                    Part V Environmental and Social Responsibility
            I. Major Environmental Issues
            Whether the listed company and its subsidiaries are major polluters announced by the environmental protection department
            √ Yes □ No
                                                                                                                                                          Approved
                                                                                                                                                                       Excessiv
   Name of the                                            Number of                                Discharge         Governing               Total          total
                         M ajor                                            Distribution of                                                                                  e
  Company or                          Way of discharge        discharge                          concentration   discharge standards    discharge         discharge
                       pollutants                                         discharge outlets                                                                            discharg
       subsidiary                                              outlets                              (mg/L)               (mg/L)        (metric ton)        (metric
                                                                                                                                                                            e
                                                                                                                                                          tons/year)
                                     Intermittently
                                                                                                                                                                       Not
                                     discharged to                        North of the plant
                      COD                                 1                                     127 mg/L         260mg/L               884.8t         /                applicab
                                     Guangming                            area
                                                                                                                                                                       le
                                     Sewage Plant
TCL China Star
                                     Intermittently                                                                                                                    Not
Optoelectronics
                      COD            discharged to the    1               Artificial wetland    13.5 mg/L        30mg/L                46.7t          /                applicab
Technology Co.,
                                     artificial wetland                                                                                                                le
Ltd.
                                     Intermittently
                                                                                                                                                                       Not
                      Nitrogen       discharged to the
                                                          50              Plant roof            30.3 mg/M 3      120mg/NM 3            33t            /                applicab
                      oxides         atmosphere in an
                                                                                                                                                                       le
                                     organized manner
                                     Intermittently
Shenzhen China                                                                                                                                                         Not
                                     discharged to                        Southeast corner
Star                  COD                                 2                                     70mg/L           110mg/L               91.785t        /                applicab
                                     Guangming                            of the plant
Optoelectronics                                                                                                                                                        le
                                     Sewage Plant
Semiconductor
                                     Intermittently
Display                                                                                                                                                                Not
                      Nitrogen       discharged to the
Technology Co.,                                           10              Plant roof            5 mg/M 3         30 mg/NM 3            5.927t         /                applicab
                      oxides         atmosphere in an
Ltd.                                                                                                                                                                   le
                                     organized manner
                                                                                                                                                                       Not
                                     Continuously                                               54.38mg/L        500mg/L               90.852t        129.6t           applicab
                                     discharged to                        In CSSD                                                                                      le
Suzhou China Star     COD                                 2
                                     CSSD                                 Environmental                                                                                Not
Optoelectronics
                                     Environmental                        Technology            29.25mg/L        100mg/L               67.8455t       449.82t          applicab
Technology Co.,
                                     Technology                           Wastewater                                                                                   le
Ltd.
                                     Wastewater                           Treatment Plant                                                                              Not
                      Ammonia
                                     Treatment Plant      1                                     0.72mg/L         6mg/L                 2.2317t        22.68t           applicab
                      nitrogen
                                                                                                                                                                       le
                                                                                                                                                                       Not
                                     Continuously
                      COD                                                                       23.62mg/L        500mg/L               4.6954t        96.335t          applicab
Suzhou China Star                    discharged to
                                                                          South gate of the                                                                            le
Optoelectronics                      Suzhou Industrial    1
                                                                          plant area                                                                                   Not
Display Co., Ltd.     Ammonia        Park First Sewage
                                                                                                0.28mg/L         45mg/L                0.0565t        5.65t            applicab
                      nitrogen       Treatment Plant
                                                                                                                                                                       le
                                                                                                                                                                       Not
                                     Intermittently                       Southwestern
Wuhan China Star      COD                                 1                                     43mg/L           400mg/L               133.49t        353.55t          applicab
                                     discharged                           corner of the plant
Optoelectronics                                                                                                                                                        le
Technology Co.,                                                                                                                                                        Not
                      Ammonia        Intermittently                       Southwestern
Ltd.                                                      1                                     4.6mg/L          30mg/L                20.51t         35.36t           applicab
                      nitrogen       discharged                           corner of the plant
                                                                                                                                                                       le

Wuhan China Star                                                                                                                                                       Not
                                     Intermittently                       Northeastern
Optoelectronics       COD                                 1                                     37mg/L           400mg/L               249.054t       570.8t           applicab
                                     discharged                           corner of the plant
Semiconductor                                                                                                                                                          le

Display               Ammonia        Intermittently                       Northeastern                                                                                 Not
                                                          1                                     3.1mg/L          30mg/L                31.22t         57.1t
Technology Co.,       nitrogen       discharged                           corner of the plant                                                                          applicab



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Ltd.                                                                                                                                               le



                    Wastewater:
                    COD,
                    ammonia
                    nitrogen,
                    other
                    characteristic
TianJin
                    pollutants                                                                          DB12/356-2018
Zhonghuan                                                                                                                                          Not
                    (total                                      General discharge     As per emission   Comprehensive       Not
Advanced                              Organized     1                                                                                   Standard   applicab
                    nitrogen, total                             outlet                standard          Sewage Discharge    exceeding
M aterial&Technol                                                                                                                                  le
                    phosphorus,                                                                         Standard
ogy Co., Ltd.
                    pH value,
                    suspended
                    matter,
                    BOD5, flow,
                    fluoride,
                    petroleum)
                    Wastewater:
                    COD,
                    ammonia
                    nitrogen,
                    other
                    characteristic
Tianjin Huan'Ou     pollutants                                                                          DB12/356-2018
                                                                                                                                                   Not
Semiconductor       (total                                      General discharge     As per emission   Comprehensive       Not
                                      Organized     1                                                                                   Standard   applicab
M aterial&Technol   nitrogen, total                             outlet                standard          Sewage Discharge    exceeding
                                                                                                                                                   le
ogy Co., Ltd.       phosphorus,                                                                         Standard
                    pH value,
                    suspended
                    matter,
                    BOD5, flow,
                    fluoride,
                    petroleum)
                    Wastewater:
                    chemical
                    oxygen
                    demand, total
                    phosphorus
                    (calculated as
                    P), ammonia
                    nitrogen                                                                            DB12/599-2015
                    (NH3-N),                                                                            Discharge
Tianjin Huanzhi
                    total nitrogen                                                                      Standard of                                Not
New Energy                                                      General discharge     As per emission                       Not
                    (calculated as    Organized     1                                                   Pollutants for                  Standard   applicab
Technology Co.,                                                 outlet                standard                              exceeding
                    N), pH value,                                                                       Municipal                                  le
Ltd.
                    suspended                                                                           Wastewater
                    solids,                                                                             Treatment Plant
                    petroleum,
                    anionic
                    surfactant, 5-
                    day
                    biochemical
                    oxygen
                    demand
Inner M ongolia     Waste gas:        Organized,                General discharge     As per emission   GB16297-1996        Not                    Not
                                                    M ultiple                                                                           Standard
Zhonghuan Solar     Particulate       unorganized               outlet, plant area,   standard          Comprehensive Air   exceeding              applicab



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M aterial Co., Ltd.    matter,                                        and roof of                           Pollutant Emission                          le
                       nitrogen                                       production                            Standard, GB8978-
                       oxides,                                        workshop                              1996
                       VOCs,                                                                                Comprehensive
                       fluoride                                                                             Sewage Discharge
                       Wastewater:                                                                          Standard
                       COD,
                       ammonia
                       nitrogen,
                       other
                       characteristic
                       pollutants
                       (total
                       phosphorus,
                       pH,
                       suspended
                       matter,
                       BOD5,
                       fluoride)
                       Wastewater:
                       COD,
                       ammonia                                                                              GB/T 31962 Water
                       nitrogen,                                                                            Quality Standard
Zhonghuan              other                                                                                for Sewage
Advanced               characteristic                                                                       Discharged into                             Not
                                                                      General discharge   As per emission                        Not
Semiconductor          pollutants         Organized      1                                                  Urban Sewers                     Standard   applicab
                                                                      outlet              standard                               exceeding
M aterials Co.,        (fluoride, total                                                                     GB8978-1996                                 le
Ltd.                   nitrogen, total                                                                      Comprehensive
                       phosphorus,                                                                          Sewage Discharge
                       suspended                                                                            Standard
                       matter, pH,
                       BOD5)
                       Wastewater:
                       COD,
                       ammonia
                       nitrogen,
                                                                                                            GB 30484-2013
                       other
                                                                                                            Discharge                                   Not
Huansheng Solar        characteristic                                 General discharge   As per emission                        Not
                                          Organized      1                                                  Standard for                     Standard   applicab
(Jiangsu) Co., Ltd.    pollutants                                     outlet              standard                               exceeding
                                                                                                            Battery Industry                            le
                       (fluoride, total
                                                                                                            Pollutants
                       nitrogen, total
                       phosphorus,
                       suspended
                       matter, pH)
                       Wastewater:
                       COD,
                       ammonia
                       nitrogen,
                                                                                                            GB 30484-2013
                       other
Wuxi Zhonghuan                                                                                              Discharge                                   Not
                       characteristic                                 General discharge   As per emission                        Not
Applied M aterials                        Organized      1                                                  Standard for                     Standard   applicab
                       pollutants                                     outlet              standard                               exceeding
Co., Ltd.                                                                                                   Battery Industry                            le
                       (total
                                                                                                            Pollutants
                       nitrogen, total
                       phosphorus,
                       suspended
                       matter, pH)
                  1. Construction and operation of facilities for preventing pollution


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     During the Reporting Period, an advanced sewage management system was established by the Company and its subsidiaries, and
regular monitoring and supervision and inspection mechanisms were adopted to ensure the waste water, waste gas, solid waste and
factory noises generated during the operation were emitted and treated according to national and local laws and regulations.
     The Company’s waste water includes domestic waste water and industrial waste water, of which domestic waste water is
discharged into the local municipal sewage treatment pipe network after being pre-treated with oil separation and septic treatment, and
industrial waste water enters different treatment systems according to its characteristics, and is discharged after physical, chemical and
biochemical treatment. The concentration and total amount of waste water discharged meet the relevant national and local standards.
     The air pollutants produced by the Company are mainly process waste gas in the production process. For different types of waste
gases, the Company has constructed corresponding waste gas treatment systems, such as a waste gas stripping system, acidic wa ste gas
treatment system, alkaline waste gas treatment system, organic waste gas treatment system, waste gas treatment system for waste water
treatment station, for the collection of waste gases through pipelines to the corresponding waste gas treatment system, where waste
gases are discharged at a high altitude after meeting relative standards. The concentration and total amount of waste gas discharged
meet the relevant national and local standards.
     The solid wastes generated by the Company include general waste, hazardous waste and domestic garbage, of which, ha zardous
wastes are disposed of by an authorized qualified hazardous waste disposal agency according to the regulations; general waste s are
recycled and disposed of by a resource recycling manufacturer after being classified in the plant area. Domestic garbage is handed over
by the property company to a domestic garbage landfill for sanitary landfill. All of the above disposals have been carried out according
to laws and regulations.
     The factory noises generated by the Company come from the mechanical noises of production and power equipment, including
refrigerators, cooling towers, air compressors, fans, various pumps, etc. The Company reduces the impact of noise on the surrounding
environment by the use of low-noise equipment, vibration reduction, noise reduction, etc., and noise reduction measures such as sound
insulation and sound absorption in the factories and equipment rooms. The monitoring results show that the Company's factory noise
emissions can stably reach the standards.
     2. Environmental Impact Assessment on Construction Projects and Other Environmental Protection Administrative Licenses
     The Company complies with the laws and regulations of environmental impact assessment on construction projects and other
environmental protection administrative licenses.
     3. Emergency Response Plan for Environmental Incidents
     The Company has set up an environmental incident emergency organization led by the senior management of the enterprise and
prepared an environmental emergency response plan, which has been filed with the local environmental protection department in
accordance with relevant national laws and regulations. In addition, regularly staff trainings and emergency drills are conducted for
environmental incidents according to the plan to ensure valid and accurate treatment of environmental pollution emergencies.
     4. Environmental Self-Monitoring Program
     The Company has formulated an environmental self-monitoring program in accordance with government regulations, and defined
monitoring indicators, implementation standards, their limits, monitoring frequency, and monitors the discharge of pollutants by
automatic monitoring or manual monitoring performed by a qualified third-party agency. The monitoring plans and annual monitoring
reports can be retrieved from the major environmental monitoring information platform managed by local environmental authorities
or subsidiary websites.
Administrative punishments received with respect to environmental issues in the Reporting Period
□ Applicable √ Not applicable
Measures taken to reduce its carbon emissions and their effects during the Reporting Period
√ Applicable □ Not applicable
     To meet the challenges of global climate change, TCL Technology is committed to green development, energy saving and
emission reduction in all aspects of the Company's operations. TCL technology has effectively reduced the carbon emissions for
business by continuously improving the energy management system, increasing the utilization of renewable energies, building a green
supply chain, and enhancing employee low carbon awareness. At the same time, TCL Technology actively expands its green industry,

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and is developing its photovoltaic semiconductor industry through TCL Zhonghuan’s business, which helps meet the challenges of
climate change.
     In terms of energy management, a sound energy management system has been established for the main subsidiaries of TCL Tech
and passed the ISO50001 certification. Suzhou CSOT has taken energy saving measures in terms of water, electricity, and gas. It
invested more than an amount of RMB30 million in technological transformation of energy conservation throughout the year to promote
a total of 50 projects on technological transformation of energy conservation, saving 20.52 million kWh of electricity and reducing
14.4 thousand tons of carbon in the year. The units of Shenzhen CSOT have implemented a total of 249 energy-saving projects from
multiple dimensions such as process energy conservation, management energy conservation, and parameter optimization. In 2022,
TCL CDOT saved 3.47 million kWh of electricity by improving productivity and other energy management actions. In addition, TCL
Zhonghuan has carried out comprehensive energy management and energy conservation and consumption reduction, and focused on
promoting the digital construction of energy management. It directly saved 50.2145 million kWh of electricity by means of energy
conservation and efficacy enhancement in 2022. In 2022, all major segments under TCL Tech implemented ISO14064 Greenhouse
Gas Accounting and Verification, and established scientific targets of emission reduction.
     Companies under TCL Tech continue to develop and utilize renewable energy. The Photovoltaic Power Generation System of
Suzhou CSOT has a total installed capacity of 12 MW. It is expected to be connected to the grid for power generation in February
2023, with an annual power generation capacity of 12 million kWh. Shenzhen CSOT followed the principle of “laying as much as
possible” to equip photovoltaics on its roofs. In 2022, it had a newly installed capacity of 3.83 MW, an annual power generation
capacity of 4 million kWh, and a total capacity of 48 MW. It can generate power of 50 million kWh every year and has been awarded
the title of “National Smart Photovoltaic Demonstration Project”. Since 2019, Huizhou CSOT has successively installed distributed
photovoltaics on the roofs of its factory premises. In 2022, it completed a newly installed capacity of 1 MW, with a total installed
capacity of 18.56 MW, and can generate power of 14.24 million kWh every year. Wuhan CSOT built a photovoltaic power generation
system in 2022 and connected it to the grid for power generation, which can generate power of 17.50 million kWh, save about 5.70
thousand tons of standard coal, and reduce carbon dioxide emissions from greenhouse gas by about 17.2 thousand tons every year. The
distributed power station built by TCL Zhonghuan can provide 37.31 million kWh of green power and a photovoltaic power station
with a capacity expected to exceed 4 GW will be built before 2027, directly supplying the production bases in Inner Mongolia and
Ningxia.
     TCL Tech always adheres to green development, focuses on green products, actively deploys a layout in green industries, and
builds green cultures. The Company continuously updates green product design and production technologies, reduces photovoltaic
product costs, promotes energy transformation, and further promotes the development of the photovoltaic industry. TCL Zhonghu an
has accelerated the production and manufacturing of semiconductor materials, focusing on the development and integration of two
platforms, namely, G12 large-sized solar wafers and high-efficiency laminated tile module technology. Relying on the G12 technology
platform and flexible manufacturing capabilities, TCL Zhonghuan has launched silicon wafers of 210+ large sizes by linking the
industrial chain to respond to the market demand for large-sized and high-power products, and accelerate the construction of laminated
tile module projects. In terms of green culture, the Company continues to conduct various training, experience sharing, and themed
activities in connection with environmental protection knowledge, to publicize the Group’s green image externally, raise employees’
low-carbon awareness internally, and create a good atmosphere for energy conservation and carbon reduction.
     TCL Tech companies not only strictly fulfill their responsibilities for environment protection, but also strive to integrate the
concept of environment protection in all key parts of the industrial chain. Upholding the idea of low-carbon development, they
constantly innovate and optimize all links alongside the industrial chain including procurement, logistics, warehousing, and packaging.
The Company also actively explores and implements green finance in the supply chain, and strives to promote green and sustainable
development throughout the entire chain. On April 27, 2022, TCL Tech successfully issued the first green medium-term note, which
was rated by a third-party agency as the green bond level G-1. On June 29, 2022, TCL Finance launched China’s first re-discount
business for carbon emission reduction notes within the industry, further enhancing accurate support for “low-carbon” enterprises.
     In the future, all companies of TCL Technology will forge ahead in sustainable development, and constantly explore and
implement the carbon reduction strategy, leading the industry and the whole value chain towards green and low carbon.


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Other relevant information
Not applicable

II. Social Responsibility
See TCL Technology Group Corporation ESG Report 2022.

III. Consolidating and Extending the Achievements of Poverty Alleviation and Pushing
Forward Rural Revitalisation
Plan for consolidating and extending the achievements of poverty alleviation and pushing forward rural revitalisation
     TCL Tech actively responds to national calls and focuses on four major areas (i.e. science and technology, education, culture and
sports, and targeted relief), continuously strengthens investment in public charitable undertakings, integrates public charitable
resources, and contributes to promoting social equity, consolidating and expanding achievements of poverty alleviation and, and
achieving rural revitalization and common prosperity. The Company has combined its advantageous industrial resources to conduct
projects such as “TCL Photovoltaic School”, “TCL Public Charitable Smart Classroom”, “A.I. Home”, “Little Music+”, and “TCL
Hope Project Candlelight Award Plan”, to contribute to the revitalization of rural education from the perspectives such as rural school
educational resources and infrastructure.
Annual summary of consolidating and extending the achievements of poverty alleviation and pushing forward rural
revitalisation
     To address the sustainable development issues for rural schools, TCL Charity Foundation cooperated with TCL Zhonghuan to
implement the TCL Photovoltaic Sunshine Campus Project, building solar photovoltaic power generation systems free of charge on
the roofs of the rural schools and donating the income from such power generation to the schools. The electricity so generated is fully
integrated into the power grid, and the power generation income is used for improving the instructional environment and funding for
students from poor families, creating a sustainable educational aid model. In 2022, the Foundation donated the first batch of roof-based
photovoltaic power generation systems and equipment and income from 25 years of power generation by such systems and equipmen t,
to a total of 10 rural schools in Xixiang County, Hanzhong City, and Lingwu City, Yinchuan City respectively. The installed power
generation capacity of the roof-based photovoltaic power generation system for each of the schools is 54 KW, and it is expected to
generate 30.11 million kWh of electricity throughout its life cycle.
     To eliminate the inequity of educational resources between urban and rural areas, TCL Charity Foundation establishes TCL Public
Charitable Smart Classrooms in urban and rural schools, including smart instructional equipment, to build multimedia smart classrooms
and “urban and rural areas” tailored classes. In September 2022, the opening ceremony of TCL Public Charitable Smart Classroo m
was successfully held. In November 2022, Longsheng Experimental Middle School in Guilin, Guangxi was selected and started to
implement the Smart Classroom Project.
     In 2019, TCL Charity Foundation cooperated with the TCL Industrial Research Institute to launch the "A.I. Home" project,
developed and designed the "Eagle Storytelling Machine", and delivered the "Eagle Story Club" campaign in rural schools, bringing
together children from rural schools, to improve their wellbeing and assist their growth. In 2022, the fourth and fifth batches of pilot
schools were selected for the “Eagle Story Club” project. A total of 14 schools from 6 provinces such as Shaanxi, Guangxi, and Hubei,
were selected as the “Eagle Story Club” pilot schools, and a total of 70 story boxes were distributed, benefiting 4655 students.
     To provide high-quality music education resources for children, TCL Charity Foundation and the Education Foundation of the
Beijing Central Conservatory of Music launched the “Little Music+” project. Through the “Little Snow Music Machine”, the “Little
Snow Music Class” was delivered to introduce both Chinese and international famous music works to students and motivate kids to
develop positive and optimistic characters. In 2022, the fourth and fifth batches of pilot schools were selected for the “Little Snow
Music Class”. A total of 15 schools from 7 provinces such as Shaanxi, Guangxi, and Guizhou were selected as the “Little Snow Music
Class” pilot schools, and a total of 70 music boxes were distributed, benefiting 6301 students.
     To promote the development of rural education, TCL Charity Foundation continues to implement the “TCL Hope Project
Candlelight Award Plan” to recruit and encourage rural teachers to stay in their jobs and contribute to rural education. The project
solicited excellent teachers from 194 counties and districts in 14 provinces that serve as the key counties in the National Rural


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Revitalization and the pairing support areas of Shenzhen. Each of the winners received a personal award worth RMB9,500, inclu ding
a cash reward and 7-day offline “Candlelight Class” training. Till now, this project has been successfully implemented for eight
sessions, with applicants from 523 counties in 23 provinces across the country. More than 3000 outstanding rural teachers from 2000
schools have won the awards. A total investment of over RMB42 million has been made in this project.
In addition, TCL Charity Foundation continues to launch projects such as targeted assistance and community charity. Through actions
such as helping the needy, and pairing assistance, it supports, consolidates and expands the poverty alleviation achievements, builds
harmonious urban and rural communities, and contributes to social equity and harmonious development. In 2022, the Foundation
launched projects such as pairing assistance donations to Taimei Town, Boluo County, Huizhou, donations to Jingjia Village,
Erwangzhuang Town, Baodi District, Tianjin, donations to Mutouwo, Lianzhuang Town, Ninghe District, Tianjin, and donations to
the Red Cross of Anlong County, Guizhou, in support of local poverty alleviation achievements, improving rural infrastructure, and
revitalizing tourism and other industries. In addition, the Company attached importance to rural population, paid attention to the
cultural-ethical development in rural areas, and launched community public charitable projects such as wedding photos for rural
women, to bridge the gap between urban and rural areas from multiple aspects.




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                                             Part VI Significant Events
   I. Fulfillment of Commitments
   1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well
   as the Company Itself and Other Entities Fulfilled in the Reporting Period or Overdue at the Period-End
   √ Applicable □ Not applicable
   (1) Details of commitment
                                                                                                        Date of
                                            Type of                                                                   Term of
 Commitment           Promisor                                      Details of commitment             commitment                       Fulfillment
                                          commitment                                                                commitment
                                                                                                        making
                                                            1) I shall avoid horizontal competition
                                                            between the companies, enterprises or
                                                            other business organizations that I
                                                            own, control, control with others,                      During the
                                       About horizontal     have significant influence on and the                   tenure of the
                                       competition,         Company with its subsidiaries; and 2)                   Company’s
                                                                                                      August 30,                     In continuous
                   Li Dongsheng        related-party        I shall reduce and control transactions                 director,
                                                                                                      2013                           performance
                                       transaction and      of related parties between the                          supervisor
                                       capital occupation companies, enterprises or other                           or senior
                                                            business organizations that I own,                      management
                                                            control, control with others, or have
                                                            significant influence on and the
                                                            Company with its subsidiaries.
               Citic Securities
               Company Limited,
               Nuode Asset
Commitments
               Management Co.,
made in
               Ltd., Guotai Junan
refinancing
               Securities Co., Ltd.,
               Everbright Securities
               Company Limited,
               UBS AG, Caitong                                                                                      6 months
               Fund Management                              The shares of TCL Tech subscribed                       from the
                                       About restriction                                              December 5,                    In continuous
               Co., Ltd., GF                                shall not be transferred within 6                       date of
                                       on sales of shares                                             2022                           performance
               Securities Co., Ltd.,                        months from the date of listing.                        listing of the
               Haitong Securities                                                                                   new shares
               Co., Ltd.,
               Perseverance Asset
               Management
               Partnership (Limited
               Partnership) - Gaoyi
               Xiaofeng No. 2 Zhixin
               Fund, China Life
               Asset Management


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                Co., Ltd. - China Life
                Asset Management -
                Bank of China - China
                Life Asset - PIPE2020
                Insurance Asset
                Management Product,
                China Southern Asset
                Management Co.,
                Ltd., Shen Ruijin,
                Dacheng Fund
                Management Co.,
                Ltd., Golden Eagle
                Asset Management
                Co., Ltd., Huaxia Life
                Insurance Co., Ltd.,
                Taikang Asset
                Management Co., Ltd.
                - Taikang Life
                Insurance Co., Ltd. -
                Unit Link - Industry
                Configuration, Guang
                Dong Zheng Yuan
                Private Fund
                Investment
                Management Co., Ltd.
                - Zhengyuan Saturday
                Private Equity
                Investment Fund,
                Bank of
                Communications
                Schroder Fund
                Management Co.,
                Ltd., Foresight Fund
                Co., Ltd.
                                                          1. Before and after this transaction,
                                                          there was no horizontal competition
                The largest                                                                                      During the
                                                          between me/this partnership and the
                shareholder of the                                                                               period of
Commitments                                               enterprises controlled by me/this
                listed company and       About avoiding                                                          being the
made in                                                   partnership and TCL Group and the        December 7,                 In continuous
                person acting in         horizontal                                                              largest
selling major                                             main businesses of its affiliated        2018                        performance
                concert (Mr. Li          competition                                                             shareholder
assets                                                    enterprises.
                Dongsheng and                                                                                    of TCL
                                                          2. After this transaction, I/this
                Jiutian Liancheng)                                                                               Group
                                                          partnership will take active measures
                                                          to avoid any business or activity that



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competes or may constitute
competition with the main business of
TCL Group and its affiliated
enterprises, and will urge the
enterprises controlled by me/this
partnership to avoid any business or
activity that competes or may
constitute competition with the main
business of TCL Group and its
affiliated enterprises.
3. If I/this partnership and the
enterprises controlled by me/this
partnership obtain the opportunity to
engage in new business, which
constitutes or may constitute
horizontal competition with the main
business of TCL Group and its
affiliated enterprises. I/this
partnership will, when it is possible,
try my/our best to make this business
opportunity available to TCL Group
or its affiliated enterprises in the first
place based on reasonable and fair
terms and conditions.
4. If the business of mine/this
partnership and the enterprises
controlled by me/this partnership
coincides or may constitute horizontal
competition with TCL Group’s
business due to my/this partnership’s
investment demand or TCL Group’s
business development, I/this
partnership and the enterprises
controlled by me/this partnership
agree to solve the resulting horizontal
competition within a specific time
limit since as it is determined.
5. During the period of being the
largest shareholder of TCL Group, the
aforementioned commitment is
unconditional and irrevocable. If I/this
partnership violate the
aforementioned commitments, I/this
partnership will make comprehensive,



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                     timely and full joint and several
                     compensation for the losses to TCL
                     Group caused thereby.
                     1. I/this partnership will minimize the
                     related party transactions between
                     me/this partnership and the
                     enterprises controlled by me/this
                     partnership and TCL Group and its
                     affiliated enterprises.
                     2. For inevitable or reasonable related
                     party transactions, I/this partnership
                     and the enterprises controlled by
                     me/this partnership and TCL Group
                     and its affiliated enterprises will
                     conduct them according to fair market
                     principles and normal commercial
                     conditions, so as to ensure the fairness
                     of the related party transaction price,
                     and will perform the decision-making
                     procedures for related party
                     transactions according to the law, to                    During the
                     ensure that the related party                            period of
Commitments on
                     transactions will not be used to                         being the
reducing and                                                    December 7,                 In continuous
                     illegally transfer TCL Group’s funds                    largest
regulating related                                              2018                        performance
                     or to damage the legitimate rights and                   shareholder
party transactions
                     interests of TCL Group and its                           of TCL
                     shareholders.                                            Group
                     3. I/this partnership and the
                     enterprises controlled by me/this
                     partnership will not ask TCL Group
                     and its affiliated enterprises to give
                     more favorable conditions than those
                     that can be offered to an independent
                     third party in any fair market
                     transaction.
                     4. During the period of being the
                     largest shareholder of TCL Group, the
                     aforementioned commitment is
                     unconditional and irrevocable. If I/this
                     partnership violate the
                     aforementioned commitments, I/this
                     partnership will make comprehensive,
                     timely and full joint and several
                     compensation for the losses to TCL



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                                        Group caused thereby.
                                        After this transaction, I/this
                                        partnership will continue to exercise
                                        shareholder’s rights according to
                                        laws, regulations and the Articles of
                                        Association of TCL Group, and
                                        maintain the independence of TCL
                                        Group in terms of assets, personnel,
                                        finance, business and institutions.
                                        I/this partnership will ensure:
                                        (I) The independence of TCL Group
                                        personnel.
                                        I/this partnership promise(s) to
                                        maintain personnel independence with
                                        TCL Group. TCL Group’s senior
                                        management, including the general
                                        manager, deputy general manager,
                                        chief financial officer, and secretary
                                        of the board of directors, shall not
The largest                             hold positions other than directors and                 During the
shareholder of the                      supervisors in my/this partnership’s                   period of
                     Commitments on
listed company and                      subordinate wholly-owned, controlled                    being the
                     maintaining the                                              December 7,                 In continuous
person acting in                        or other enterprises with actual                        largest
                     independence of                                              2018                        performance
concert (Mr. Li                         control (hereinafter referred to as                     shareholder
                     listed companies
Dongsheng and                           “subordinate enterprises”), and shall                 of TCL
Jiutian Liancheng)                      not be paid in my/this partnership’s                   Group
                                        subordinate enterprises. The financial
                                        personnel of TCL Group shall not
                                        work part-time in my/this
                                        partnership’s subordinate enterprises.
                                        (II) The independence and integrity of
                                        TCL Group’s assets.
                                        1. The independence and integrity of
                                        TCL Group’s assets.
                                        2. TCL Group does not have any
                                        funds or assets occupied by me/this
                                        partnership and my/this partnership’s
                                        subordinate enterprises.
                                        (III) The financial independence of
                                        TCL Group.
                                        1. TCL Group establishes an
                                        independent financial department and
                                        an independent financial accounting
                                        system.



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2. TCL Group has a standardized and
independent financial accounting
system.
3. TCL Group opens an independent
bank account and does not share a
bank account with me/this
partnership.
4. The financial personnel of TCL
Group shall not work part-time in
my/this partnership’s subordinate
enterprises.
5. TCL Group can make independent
financial decisions, and I/this
partnership shall not interfere with the
use of TCL Group’s funds.
(IV) The institutional independence of
TCL Corporation.
1. TCL Group has an independent and
complete organization which can
operate independently.
2. TCL Group’s office and premises
for production and operations are
separated from my subordinate
enterprises/this partnership.
3. The Board of Directors, Board of
Supervisors and various functional
departments of TCL Group operate
independently, and have no
subordinate relationship with this
partnership’s functional departments.
(V) The business independence of
TCL Group.
1. I/this partnership promise(s) to
maintain the business independence
of TCL Group after this transaction.
2. TCL Group has the assets,
personnel, qualifications and ability to
independently carry out business
activities, and has the ability to
operate independently in the market.
If TCL Group suffers losses due to the
violation of commitments under the
letter of commitment by me/this
partnership or my/this partnership’s



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                                                             subordinate enterprises, I/this
                                                             partnership will bear the
                                                             corresponding compensation liability
                                                             according to the law.
Fulfilled on
                  Yes
time
Specific
reasons for
failing to
fulfill
                  Not applicable
commitments
on time and
plans for next
steps
    (2) Fulfillment of commitments
           In October 2022, the largest shareholder of the Company and his person acting in concert (Mr. Li Dongsheng and Jiutian
    Liancheng) received the Decision on Administrative Supervision Measures issued by the Guangdong Office of China Securities
    Regulatory Commission. It was found in the Decision that the commitments made by the largest shareholder of the Company and his
    person acting in concert, upon significant asset restructuring in 2018, to reduce related party transactions and maintain the independence
    of the listed company were not fully fulfilled. So the administrative supervision measures were taken to order the largest share holders
    of the Company and their persons acting in concert to make rectification thereof.
           The largest shareholders of the Company and their persons acting in concert attached great importance to the Decision, and based
    on the actual situation, they studied and comprehensively sorted out relevant problems item by item, and formulated practical and
    feasible rectification plans detailed as follows, in accordance with the Company Law, the Securities Law, the Rules for the Listing of
    Stocks on the Shenzhen Stock Exchange, the Self-regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 1 -
    Standard Operation of Companies Listed on the Main Board, as well as other relevant laws, regulations, normative documents, and
    the Articles of Association:
           1. In 2020 and 2021, the total amount of daily related party transactions between TCL Tech and TCL Industrial was RMB13.226
    billion and RMB 18.349 billion respectively, an increase of 157% and 218% over 2019, which indicates that the commitment to reduce
    related party transactions was not fully fulfilled.
           The daily related party transactions between the Company and TCL Industrial mainly involved the sales of large-sized LCD panels
    and related products by a subsidiary of the Company TCL CSOT to subordinated enterprises of TCL Industrial, and the procureme nt
    of components and materials by TCL CSOT from subordinated enterprises of TCL Industrial. As manufacturers from the Chinese
    mainland, such as TCL CSOT, continuously put new lines into operation, the concentration of the display panel industry continued to
    increase. In 2022, the global top three panel manufacturers, including TCL CSOT, had a market share of nearly 60% in the TV panel
    market, among which TCL CSOT’s market share reached 18%. TCL CSOT ranked second in terms of the TV panel market share in
    the world, first in terms of the market share of 55-inch and 75-inch market in the world, and second in terms of the market share of 32-
    inch and 65-inch market in the world. TCL Electronics, a controlling subsidiary of TCL Industrial Holdings, is one of the global top
    three TV manufacturers and a key target customer for panel companies including TCL CSOT. With the increasing concentration of the
    TV industry, and changes in the competition and ecosystem of the display industry chain, it is crucial for TCL CSOT’s operations to
    consolidate and enhance cooperation with the existing customers. TCL Electronics is one of the global top three TV manufacturers and
    a key target customer for panel companies including TCL CSOT.
           The largest shareholders of the Company and their persons acting in concert will continue to minimize the related party
    transactions between the enterprises controlled by them and the Company. The transactions that are unavoidable or reasonably existing
    will be transacted with related parties, based on fair market principles and normal commercial conditions to ensure the fa irness of the

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prices of such related party transactions, and the decision-making procedures for related party transactions shall be gone through in
accordance with laws. For related party transactions taken on the basis of the development trend of the industrial market and necessary
for the going concern of enterprises, the Company will strengthen the review procedure and information disclosure management in
connection with such transactions, disclose the implementation of the daily related party transactions taken with TCL Industrial in the
previous year from this year, and submit them to the Board of Directors for review. The Company will also continue to explore other
methods to supervise related party transactions that are consistent with the Company’s actual business, ensure that the Company’s
related party transactions with TCL Industrial are just and fair, without harming the interests of the Company and its shareholders,
especially those of small and medium shareholders.
     In addition, the largest shareholders of the Company and their persons acting in concert have formulated plans to reduce related
party guarantees and related party financial services: TCL Tech’s related party guarantees for the target companies of TCL Industrial’s
significant asset restructuring taken in 2019 was reduced to no more than RMB5 billion as at the end of 2022, and will be further
reduced to no more than RMB3.5 billion by the end of 2023, and be liquidated by the end of 2024; The TCL Tech’s deposit loan limit
for related party transactions with TCL Industrial will drop to no more than RMB2.5 billion in 2023.
     2. Some personnel of TCL Tech participated in relevant business of TCL Industrial, office systems (hereinafter referred to as OA
Systems) of TCL Tech and TCL Industrial were not completely separated, and TCL Tech, TCL Industrial, and TCL Group were not
strictly distinguished in external publicity, which indicates inadequate fulfillment of the commitment to maintain the independence of
listed companies.
     In accordance with the Company Law, the Securities Law, the Governance Standards for Listed Companies, the Rules for the
Listing of Stocks on the Shenzhen Stock Exchange, the Self-regulatory Guidelines for Listed Companies on the Shenzhen Stock
Exchange No. 1 - Standard Operation of Companies Listed on the Main Board, as well as relevant rules and regulations of the China
Securities Regulatory Commission, the largest shareholders of the Company and their persons acting in concert require TCL Industrial
and advise TCL Tech to fully implement the personnel independence requirements, and conduct a comprehensive inventory on
functional responsibilities, organizational structure, business processes, and personnel of the functional lines to ensure strictly
independent staffing, management, and office, etc.
     The largest shareholders of the Company and their persons acting in concert have required TCL Industrial and advised TCL Tech
to sort out the permissions of the office systems and strengthen the management of the entrusted system service companies. According
to the relevant plan, TCL Tech and TCL Industrial will comprehensively check the organizations, identity authentications, and
permissions of all the OA accounts before June 2023, to solve the problem of employee affiliation caused by untimely data update for
reasons such as legacy reasons, organizational changes, and job adjustments. TCL Tech and TCL Industrial have started to build their
own independent OA systems to be physically isolated from each other. Due to the complexity of system construction, it is planned
that this work will be completed before November 2023.
     The largest shareholders of the Company and their persons acting in concert required TCL Industrial and urge TCL Tech to
strengthen the management of their external publicity platforms, develop standardized systems, identify the standard abbreviations of
legal entities and the use scenarios and explanations. The business data of TCL Tech used by TCL Industrial for publicity must be
those that have been publicly disclosed. They should continue to improve the corresponding communication management system and
process, manage and supervise the information content, entities’ use scenarios, and publication procedures throughout the process.
     The Company attaches great importance to the improvement of the standardization level, and will comprehensively sort out and
complete the rectification as soon as possible in strict accordance with the requirements, and continue to maintain independe nce in
terms of aspects such as assets, personnel, finance, business, and institution in accordance with laws, regulations, and the Articles of
Association.

2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still within
the forecast period, explain why the forecast has been reached for the Reporting Period.
√ Applicable □ Not applicable
 Name of asset or Forecast start     Forecast end      Current          Current   Reasons for not      Date of       Index to original


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  project with an           time            time         forecast          actual      reaching the        original     forecast disclosure
 earnings forecast                                    performance performance          forecast (if        forecast
                                                       (RMB’0,00 (RMB’0,000          applicable)        disclosure
                                                            0)               )
                                                                                                                       Announcement on
                                                                                                                       the Acquisition of
                                                                                                                       the 100% Equity
 Moka                                                                                                                  Interests of Moka
                     January 1,      December 31,                                                       December 12,
 International                                               24,607           51,099   Not applicable                  International
                     2021            2023                                                               2020
 Limited                                                                                                               Limited & the
                                                                                                                       Related-Party
                                                                                                                       Transactions
                                                                                                                       (2020-166)
Commitments Made by the Company’s Shareholders and Counterparties on the Annual Operating Performance of the Report
√ Applicable □ Not applicable
     According to the Announcement on the Acquisition of the 100% Equity Interests of Moka International Limited & the Related -
Party Transaction, the net profit (hereinafter referred to as “net profit”) of Moka International Limited (hereinafter referred to as “the
target company”) in the audited consolidated statements in 2021, 2022 and 2023 (hereinafter referred to as “performance commitment
period”) is not less than RMB224.43 million, RMB246.07 million, and RMB287.65 million respectively. Therefore, TCL Industries
Holdings (HK) Limited (hereinafter referred to as the “Transferor”) commits that the cumulative net profit of the target company during
the performance commitment period is not less than RMB760 million (hereinafter referred to as the “committed net profit”).
     TCL Technology Investments Limited (hereinafter referred to as the “Transferee”, a wholly-owned subsidiary of the Company)
shall, within 4 months after the end of the performance commitment period, hire an accounting firm approved by the Transferor to
conduct a special audit on the achievement of the target company’s committed net profit throughout the performance commitment
period, and issue a special audit report. After auditing, if the net profit actually achieved by the target company during the performance
commitment period fails to reach the committed net profit, the Transferee shall notify the Transferor in writing within 10 working days
after the issue of the special audit report agreed herein. The Transferor shall compensate the Transferee in cash within 3 months after
receiving the written notice from the Transferee. The amount of compensation payable by the Transferor for the current period =
(committed net profit - achieved net profit) ÷committed net profit × the price of this equity transfer. Both parties further confirm that
the accumulative amount compensated by the Transferor during the performance commitment period shall not exceed the total amount
of consideration obtained by the Transferor in this equity transfer. After auditing, if the net profit actually achieved by the target
company exceeds the committed net profit during the performance commitment period, both parties agree to take 50% of the exce ss
amount as the transferor’s excess performance reward (the maximum amount of excess performance reward shall not exceed 20% of
the equity transfer price), and the Transferee shall pay this excess performance reward to the Transferor in cash within 3 months after
the issuance of the special audit report.
     Achievement of Performance Commitment and Its Influence on Goodwill Impairment Tests
     In 2022, the target company Moka International Limited realized a net profit of RMB510.99 million, which exceeded the estimated
amount in the Asset Evaluation Report of the TCL Technology Group Corporation to buy 100% Equity Interests of Moka International
Limited. There was no sign of goodwill impairment, so it is not necessary to make provision for goodwill impairment.

II Occupation of the Company、Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.



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III. Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.

IV. Explanations Given by the Board of Directors Regarding the Latest Independent Auditor's
“Modified Opinion” on the Financial Statements
□ Applicable √ Not applicable

V. Explanations Given by the Board of Directors, the Supervisory Committee, and Independe nt
Directors (If Any) Regarding the Independent Auditor's “Modified Opinion” on the Financial
Statements of the Reporting Period
□ Applicable √ Not applicable

VI. YoY Changes to the Accounting Policies and Estimates or Correction of Material
Accounting Errors
√ Applicable □ Not applicable
     On December 31, 2021, the Ministry of Finance issued the Notice on Printing and Distributing the ‘Interpretation of Accounting
Standards for Business Enterprises No. 15’ (Cai Kuai [2021] No. 35) (hereinafter referred to as “Interpretation No. 15”), to specify the
accounting treatment for external sales of products or by-products produced before fixed assets reach their intended serviceable
condition or during the research and development process, the related presentation of centralized fund management, and the judgment
on onerous contracts. The Company will make adjustments to its accounting policies in accordance with the above requirements. The
Company started to implement the provisions of Interpretation No. 15 on the accounting treatment for external sales of products or by-
products produced before fixed assets reach their intended serviceable condition or during the research and development proce ss, and
the judgment on onerous contracts from January 1, 2022 and the related presentation of centralized fund management from December
31, 2021.

VII. YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable

Compared with 2021, 36 subsidiaries (36 newly incorporated) are newly included in and 5 subsidiaries (4 transferred
and 1 de-registered) are excluded from the consolidation scope of 2022.
VIII. Engagement and Disengagement of Independent Auditor
Current independent auditor
                                                                         Da Hua Certified Public Accountants (Special General
 Name of the domestic independent auditor
                                                                         Partnership)
 The Company’s payment to the domestic independent auditor
                                                                         381.40
 (RMB’0,000)
 How many consecutive years the domestic independent auditor
                                                                         15 years
 has provided audit services for the Company
 Names of the certified public accountants from the domestic
                                                                         Jiang Xianmin and Xiong Xin
 independent auditor writing signatures on the auditor’s report
 How many consecutive years the certified public accountants
                                                                         4 years, 1 year
 have provided audit services for the Company
 Name of the foreign independent auditor (if any)                        Not applicable
 The Company’s payment to the foreign independent auditor               Not applicable



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 (RMB’0,000) (if any)
 How many consecutive years the foreign independent auditor
                                                                             Not applicable
 has provided audit services for the Company (if any)
 Names of the certified public accountants from the foreign
 independent auditor writing signatures on the auditor’s report             Not applicable
 (if any)
 How many consecutive years the certified public accountants
                                                                             Not applicable
 have provided audit services for the Company (if any)
Indicate whether the independent auditor was changed for the Reporting Period.
□ Yes √ No
Indicate whether the independent auditor was changed during the Audit Period.
□ Yes √ No
CPA firm, financial advisor or sponsor hired for the audit of internal control
√ Applicable □ Not applicable
During the Reporting Period, the Company hired Da Hua Certified Public Accountants (Special General Partnership) to conduct a n
internal control audit, with an audit cost of RMB500,000.
During the Reporting Period, the Company engaged Shenwan Hongyuan Financing Services Co., Ltd. as the sponsor at a
recommendation fee of RMB3 million in connection with the non-public offering of shares.

IX. Delisting Faced After the Disclosure of the Annual Report
□ Applicable √ Not applicable

X. Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.

XI. Significant Lawsuits and Arbitrations
□ Applicable √ Not applicable
No such cases in the Reporting Period.

XII. Punishments and Rectifications
√ Applicable □ Not applicable
                  Type of                                            Investigation                              Date of      Index to disclosed
    Name                            Reason for change                                    Conclusion (if any)
                  change                                            punishment type                            disclosure       information
                              Some construction in progress
                              were not promptly transferred
                              into fixed assets and not
                                                                                         Administrative
                              depreciated, and thus caused         Administrative
                                                                                         supervision
                              depreciation to be less accrued      supervision
 The            The                                                                      measures were
                              by the Company for 2021.             measures taken by
 Company        Company                                                                  taken to order the
                              Expenses of some outsourced          the Guangdong                               October      www.cninfo.com.cn
 and relevant   and some                                                                 Company to correct
                              R&D projects were                    Office of China                             29, 2022     (2022-109)
 responsible    senior                                                                   the violations, and
                              inappropriately capitalized. The     Securities
 persons        executives                                                               issue warning
                              provision for impairment of          Regulatory
                                                                                         letters to relevant
                              large assets accrued from            Commission
                                                                                         responsible persons
                              January to May 2021 was not
                              disclosed in a timely manner,
                              and it was not disclosed until



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                                the publication of the 2021
                                semi-annual report in August
                                2021

Description of rectifications
√ Applicable □ Not applicable
     The Company attaches great importance to standard operation and high-quality development. After receiving the Decision on
Administrative Supervision Measures (hereinafter, “the Decision”), the Company comprehensively sorted out and analyzed relevant
problems, and made a comprehensive self-inspection on relevant matters, formulated practical and feasible rectification plans, and
identified responsibilities in accordance with the Governance Standards for Listed Companies, the Measures for the Administration of
Information Disclosure by Listed Companies, the Rules for the Listing of Stocks on the Shenzhen Stock Exchange, the Self-regulatory
Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 1 - Standard Operation of Companies Listed on the Main Board,
and the Accounting Standards for Business Enterprises, as well as other relevant laws, regulations, normative documents, and the
Articles of Association, and made the rectifications item by item in strict accordance with the requirements of the Decision. On
December 23, 2022, the Company held the 27th meeting of the 7th Board of Directors to review and approve the Proposal on the
Reporting Rectification according to the ‘Decision on Administrative Supervision Measures’ Issued by the Guangdong Office of China
Securities Regulatory Commission, detailed in the relevant announcements disclosed by the Company on designated media. This
rectification neither had an impact on the Company’s financial statements for previous years, nor involved any adjustment to the
disclosed financial statements.
Other notes: see "Fulfillment of Commitments" under Part VI of this report for details.

XIII. Credit Quality of the Company as well as its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable

XIV. Major Related-Party Transactions
1. Continuing Related-Party Transactions
During the Reporting Period, the Company’s daily related-party transactions is found in the related announcements disclosed on
www.cninfo.com.cn.

2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity Investments
□ Applicable √ Not applicable

3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No related-party transactions regarding significant joint investments in third parties which occurred during the Company’s Reporting
Period.

4. Amounts Due to and from Related Parties
√ Applicable □ Not applicable
Indicate whether there were any amounts due to and from related parties for non-operating purposes.
√ Yes □ No
Amounts receivable due to related parties




               Relationshi                     Capital        Beginning    Amount of        Amount of               Interest in     Ending
   Related
               p with the       Source       occupation        balance     new grants       recovered Coupon rate    current        balance
   parties
               Company                         for non-       (RMB’0,00       in current   grants in                 period      (RMB’0,000



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                                                 operating        0)              period            current                        (RMB’0,00         )
                                                purposes or                  (RMB’0,00             period                                0)
                                                    not                             0)         (RMB’0,00
                                                                                                      0)
TCL
                                Sale of
Industrial        Related
                                equity         No                 126,029           96,000            174,989             0.00%                0       47,040
Holdings          corporation
                                investments
Co., Ltd.
                                1. The Company sold 100% equity of Guangzhou Financial Development Service Center to TCL Industries
                                Holdings Inc., in order to seize the opportunity in industrial development, further optimize the business
                                structure, and focus resources on the development of the main business in line with the national policy
                                guidance, and based on the demands of the Company’s announced financing projects. According to the
                                agreement signed by both parties, TCL Industries Holdings Inc. shall pay 51% of the equity transfer price
                                to the Company within 40 days from the effective date of the agreement. The remaining 49% of the equity
The Influence of
                                transfer price will be paid within two years from the effective date of the agreement. Refer to the
Amounts Due to Related
                                Announcement on the Disposal of Equity Interests in Guangzhou Financial and the Related-party
Parties on the
                                Transactions disclosed by the Company on www.cninfo.com.cn dated May 22, 2021.
Company’s Operating
                                2. The Company sold 100% held equity of Chongqing Zhongxin Rongxin to TCL Industries Holdings Inc.
Results and Financial
                                in order to further optimize its business structure and focus resources on the development of its primary
Status
                                high-tech business in line with the government policy guidance and in accordance with the needs of the
                                Company’s announced financing projects. According to the agreement signed by both parties, TCL
                                Industries Holdings Inc. shall pay 51% of the equity transfer price to the Company before June 30, 2022.
                                The remaining equity transfer price will be paid before June 30, 2023. Refer to the Announcement on the
                                Disposal of Equity Interests in Partnership Enterprise and the Related -Party Transactions disclosed by the
                                Company on www.cninfo.com.cn dated June 27, 2022.

5. Transactions with Related Finance Companies
□ Applicable √ Not applicable

6. Transactions Between the Financial Company Controlled by the Company and Related Companies
√ Applicable □ Not applicable
Deposits
                                                                                                           Amount incurred in the
                                                                                                                 current period
                                                                                                                                  Total
                       Relationship       Daily deposit                           Beginning           Total deposit                                Ending
    Related                                                   Range of                                                       withdrawal
                         with the             ceiling                              balance              amount in                                  balance
        parties                                               interest                                                       amount in
                        Company           (RMB’0,000)                           (RMB’0,000)              current                              (RMB’0,000)
                                                                                                                              current
                                                                                                           period
                                                                                                                               period
                                                                                                      (RMB’0,000)
                                                                                                                            (RMB’0,000)
 Subsidiary of
 TCL Industries       Related
                                              600,000.00       0.01-1.83%                2,127.79            626,195.69           594,137.27          34,186.2
 Holdings Co.,        corporation
 Ltd.
Loans
    Related            Relationship        Loan limit         Range of            Beginning                Amount incurred in the                  Ending



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       parties           with the      (RMB’0,000)      interest            balance                     current period                balance
                         Company                                           (RMB’0,000)                              Total          (RMB’0,000)
                                                                                               Total loan
                                                                                                                   repayment
                                                                                               amount in
                                                                                                                   amount in
                                                                                                current
                                                                                                                    current
                                                                                                 period
                                                                                                                     period
                                                                                             (RMB’0,000)
                                                                                                                  (RMB’0,000)
                                       The balance of
                                       comprehensive
                                        credit on any
                                        one day shall
 Subsidiary of
                                         not exceed
 TCL Industries     Related
                                        RMB6 billion        _                     _                  _                    _               _
 Holdings Co.,      corporation
                                          (including
 Ltd.
                                        loans, notes
                                        discounting,
                                          and notes
                                         acceptance)
Credit or other financial business


                                Relationship with the                                      Total line of credit               Ending balance
       Related parties                                          Business type
                                      Company                                                 (RMB’0,000)                     (RMB’0,000)
Subsidiary of TCL                                                                       The balance of
                                                        Credit granting (bill
Industries Holdings Co.,       Related corporation                                      comprehensive credit on                         36,153.16
                                                        discount)
Ltd.                                                                                    any one day shall not
                                                                                        exceed RMB6 billion
Subsidiary of TCL
                                                        Credit granting (bill           (including loans, notes
Industries Holdings Co.,       Related corporation                                                                                      27,566.97
                                                        acceptance)                     discounting, and notes
Ltd.
                                                                                        acceptance)



7. Other Major Related-Party Transactions
                         Title of announcement                                  Date of disclosure                  Website for disclosure
 Announcement on the Subscription of Convertible Bonds of
 Maxeon Solar Technologies, Ltd. by a Controlling
                                                                      August 13, 2022
 Subsidiary TCL Zhonghuan and the Related-Party
 Transaction
 Announcement on the Disposal of Equity Interests in
                                                                      June 27, 2022
 Partnership Enterprises and the Related-Party Transaction
                                                                                                              www.cninfo.com.cn
 Announcement on the Expected Continuing Related-Party
                                                                      April 28, 2022
 Transactions for 2022
 Announcement on the Launch of Accounts Receivable
                                                                      April 28, 2022
 Factoring and the Related-party Transaction
 Announcement on the Related-party Transactions with
                                                                      April 28, 2022
 Shenzhen Jucai Supply Chain Technology Co., Ltd. in 2022
 Announcement of TCL Technology Group Finance Co., Ltd.
                                                                      April 28, 2022
 on Continuing to Provide Financial Services to Related



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 Parties and Renewing the Financial Service Agreement
 Announcement on Progress of Additional Placement and
                                                                            March 22, 2022
 Share Issue in Subsidiaries and the Related-Party Transaction
 Announcement on Additional Placement and Share Issue in
                                                                            January 24, 2022
 Subsidiaries and the Related-Party Transaction

XV. Major Contracts and Execution Thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
(2) Contracting
□ Applicable √ Not applicable
(3) Leases
□ Applicable √ Not applicable

2. Major Guarantees
√ Applicable □ Not applicable
                                                                                                                                     Unit: RMB'0,000
   Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
                     Disclosure                                                                                                             Guarante
                     date of the                     Actual    Actual        Type of                                     Term of Expire       e for
                                      Line of                                           Collatera Counterguarante
       Obligor      guarantee line               occurren guarantee guarante                                             guarante    d or    related
                                     guarantee                                          l (if any)          e (if any)
                    announcemen                      ce date   amount            e                                           e       not    parties or
                           t                                                                                                                   not
TCL King
                                                                            Joint
Electrical
                    April 28,                    August                     liability                                      3.6-5
Appliances                             327,138                  10,997                      /                                        No       Yes
                    2022                         29, 2019                   guarante                                      years
(Huizhou) Co.,
                                                                            e
Ltd.
TCL King
                                                                            Joint
Electrical
                    April 28,                                               liability
Appliances                              51,653                          -                   /                                -       Yes      Yes
                    2022                         -                          guarante                 Counter
(Chengdu) Co.,
                                                                            e                        guarantee
Ltd.
                                                                                                     provided by
Huizhou TCL                                                                 Joint
                                                                                                     TCL Industrial
Mobile              April 28,                                               liability
                                       212,507                          -                   /        Holding Co.,            -       Yes      Yes
Communication       2022                         -                          guarante
                                                                                                     Ltd.
Co., Ltd.                                                                   e
TCL Mobile                                                                  Joint
Communication       April 28,                                               liability
                                        29,225                          -                   /                                -       Yes      Yes
(HK) Company        2022                         -                          guarante
Limited                                                                     e
TCL Home
                    April 28,                    March 2,                   Joint
Appliances                              68,280                   3,800                      /                            1-2 years   No       Yes
                    2022                         2021                       liability
(Hefei) Co., Ltd.


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                                                               guarante
                                                               e
TCL Home                                                       Joint
Appliances          April 28,                                  liability
                                 4,929                     -               /                         -      Yes      Yes
(Zhongshan)         2022                 -                     guarante
Co., Ltd.                                                      e
TCL Air-                                                       Joint
Conditioner         April 28,            March                 liability                          0.37-3
                                80,991                31,617               /                                No       Yes
(Zhongshan)         2022                 13, 2020              guarante                           years
Co., Ltd.                                                      e
TCL Air                                                        Joint
Conditioner         April 28,                                  liability
                                13,480                     -               /                         -      Yes      Yes
(Wuhan) Co.,        2022                 -                     guarante
Ltd.                                                           e
Zhongshan TCL                                                  Joint
Refrigeration       April 28,                                  liability
                                31,749                     -               /                         -      Yes      Yes
Equipment Co., 2022                      -                     guarante
Ltd.                                                           e
Guangdong TCL
                                                               Joint
Smart Heating &
                    April 28,                                  liability
Ventilation                      2,522                     -               /                         -      Yes      Yes
                    2022                 -                     guarante
Equipment Co.,
                                                               e
Ltd.
TCL Home                                                       Joint
Appliances          April 28,                                  liability
                                10,000                     -               /                         -      Yes      Yes
(Huizhou) Co.,      2022                 -                     guarante
Ltd.                                                           e
TCL Air-                                                       Joint
Conditioner         April 28,                                  liability
                                 5,488                     -               /                         -      Yes      Yes
(Jiujiang) Co.,     2022                 -                     guarante
Ltd.                                                           e
                                                               Joint
Tonly
                    April 28,            April 23,             liability
Technology Co.,                 39,496                34,448               /                      3 years   No       Yes
                    2022                 2021                  guarante
Ltd.
                                                               e
TCL Very
                                                               Joint
Lighting
                    April 28,                                  liability
Technology                       1,034                     -               /                         -      Yes      Yes
                    2022                 -                     guarante
(Huizhou) Co.,
                                                               e
Ltd.
                                                               Joint
SHIFENDAOJI
                    April 28,                                  liability
A Online                           77                      -               /                         -      Yes      Yes
                    2022                 -                     guarante
Service Co., Ltd.
                                                               e



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Guangzhou TCL
                                                                    Joint
Science and                                 Decemb
                   April 28,                                        liability
Technology                         84,700 er 27,           28,800               /                      13 years   No      Yes
                   2022                                             guarante
Development                                 2018
                                                                    e
Co., Ltd.
                                                                    Joint
TCL Industries                              Decemb
                   April 28,                                        liability
Holdings (HK)                     514,629 er 21,          139,284               /                      3 years    No      Yes
                   2022                                             guarante
Limited                                     2021
                                                                    e
Techigh Circuit                                                     Joint
Technology         April 28,                                        liability
                                      499                       -               /                         -       Yes     No
(Huizhou) Co.,     2022                     -                       guarante
Ltd.                                                                e
Shenzhen
                                                                    Joint
Qianhai Qihang
                   April 28,                                        liability         With counter-
Supply Chain                       40,000 -                     -               /                         -       Yes     No
                   2022                                             guarante            guarantee
Management
                                                                    e
Co., Ltd.
                                                                    Joint
Qihang
                   April 28,                                        liability         With counter-
Import&Export                       6,000 -                     -               /                         -       Yes     No
                   2022                                             guarante            guarantee
Limited
                                                                    e
Shenzhen
Qianhai Sailing                                                     Joint
International      April 28,                August                  liability         With counter-    50 days-
                                  110,000                  20,541               /                                 No      No
Supply Chain       2022                     22, 2022                guarante            guarantee       1 year
Management                                                          e
Co., Ltd.
Aijiexu New
                                                                    Joint              Guarantee in
Electronic
                   April 28,                April 28,               liability          proportion to
Display Glass                      80,000                  30,378               /                      9 years    No      No
                   2022                     2020                    guarante           shareholding
(Shenzhen) Co.,
                                                                    e                   percentage
Ltd.
Qihang                                                              Joint
International      April 28,                January                 liability         With counter-
                                   50,000                  13,928               /                       1 year    No      No
Import & Export 2022                        1, 2022                 guarante            guarantee
Limited                                                             e
Huizhou
Zhongkai TCL                                                        Joint
Zhirong                                                             liability         With counter-
                   May 22, 2021    45,500             -         -               /                         -       Yes     Yes
Technology                                                          guarante            guarantee
Microcredit Co.,                                                    e
Ltd.




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                                                               Total actual
Total approved line for such                                  amount of such
guarantees in Reporting Period                  1,764,397      guarantees in                                                         74,264
(A1)                                                         Reporting Period
                                                                   (A2)
                                                               Total actual
Total approved line for such                                 balance of such
guarantees at the end of the                    1,809,897 guarantees at end                                                         313,793
Reporting Period (A3)                                       of Reporting Period
                                                                   (A4)
                                 Guarantees provided by the Company as the parent for its subsidiaries
                   Disclosure                                                                                                     Guarante
                   date of the                   Actual      Actual     Type of                                Term of Expire       e for
                                    Line of                                        Collatera Counterguarante
       Obligor    guarantee line                occurren guarantee guarante                                    guarante    d or    related
                                   guarantee                                       l (if any)   e (if any)
                  announcemen                    ce date    amount          e                                      e       not    parties or
                         t                                                                                                           not
Wuhan China
                                                                       Joint
Star
                  April 28,                      July 26,              liability                               20 days-
Optoelectronics                     1,600,000                574,124                   /            /                      No        No
                  2022                              2019               guarante                                3 years
Technology Co.,
                                                                       e
Ltd.
Shenzhen China
Star
                                                                       Joint
Optoelectronics
                  April 28,                     April 28, 1,126,59 liability                                   1 month
Semiconductor                       1,550,000                                          /            /                      No        No
                  2022                              2018             8 guarante                                - 8 years
Display
                                                                       e
Technology Co.,
Ltd.
TCL China Star                                                         Joint
Optoelectronics   April 28,                     February               liability                               4 days-
                                      679,500                137,116                   /            /                      No        No
Technology Co., 2022                            17, 2022               guarante                                10 years
Ltd.                                                                   e
Wuhan China
Star
                                                                       Joint
Optoelectronics                                 Decemb
                  April 28,                                  1,051,15 liability                                3 months
Semiconductor                       2,000,000      er 22,                              /            /                      No        No
                  2022                                               6 guarante                                - 8 years
Display                                             2017
                                                                       e
Technology Co.,
Ltd.
Huizhou China
                                                                       Joint
Star
                  April 28,                      January               liability                               3 months
Optoelectronics                     1,150,000                710,362                   /            /                      No        No
                  2022                           1, 2021               guarante                                - 8 years
Technology Co.,
                                                                       e
Ltd.



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China Star                                                   Joint
Optoelectronics   April 28,                                  liability
                              500,000          -         -               /           /             -       No      No
International     2022                                       guarante
(HK) Limited                                                 e
China Display
                                                             Joint
Optoelectronics                         Novemb                                                 43 days-
                  April 28,                                  liability
Technology                    150,000     er 19,    41,550               /           /           7.39      No      No
                  2022                                       guarante
(Huizhou) Co.,                             2021                                                 years
                                                             e
Ltd.
Wuhan China
                                                             Joint
Display
                  April 28,                                  liability
Optoelectronics                50,000          -         -               /           /             -       No      No
                  2022                                       guarante
Technology Co.,
                                                             e
Ltd.
Guangdong
                                                             Joint
Juhua Printed                                                                                  240 days
                  April 28,             May 31,              liability
Display                        40,000                1,490               /           /           - 15      No      No
                  2022                     2022              guarante
Technology Co.,                                                                                 months
                                                             e
Ltd.
                                                             Joint
TCL Technology
                  April 28,             January              liability                          95-409
Group Finance                 300,000               60,974               /           /                     No      No
                  2022                  25, 2022             guarante                            days
Co., Ltd.
                                                             e
Highly                                                       Joint
Information       April 28,             January              liability                         1 day-2.5
                              480,000              464,880               /           /                     No      No
Industry Co.,     2022                  17, 2022             guarante                           years
Ltd.                                                         e
Beijing Hecheng                                              Joint
                                        Septemb
Nuoxin            April 28,                                  liability
                               10,000     er 27,     5,000               /           /          1 year     No      No
Technology Co., 2022                                         guarante
                                           2022
Ltd.                                                         e
                                                             Joint
Beijing Lingyun
                  April 28,             June 14,             liability                          86-364
Data Technology               131,500               70,278               /           /                     No      No
                  2022                     2022              guarante                            days
Co., Ltd.
                                                             e
Beijing                                                      Joint
Sunpiestore       April 28,             July 19,             liability
                              130,000               97,000               /           /          1 year     No      No
Technology Co., 2022                       2022              guarante
Ltd.                                                         e
Shaanxi Titi                                                 Joint
                                        Septemb
Electronic        April 28,                                  liability
                               10,000     er 27,     3,000               /           /          1 year     No      No
Technology Co., 2022                                         guarante
                                           2022
Ltd.                                                         e




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                                                                  Joint
TCL Technology
                    April 28,               April 24,             liability                           1-10
Park (Huizhou)                   172,600                 99,400               /           /                    No       No
                    2022                        2020              guarante                           years
Co., Ltd.
                                                                  e
                                                                  Joint
TCL Technology
                    April 28,                July 14,             liability
Investments                      400,000                208,926               /           /          5 years   No       No
                    2022                        2020              guarante
Limited
                                                                  e
                                                                  Joint
Ningbo TCL
                    April 28,                                     liability
Equity                            50,000            -         -               /           /             -      No       No
                    2022                                          guarante
Investment Ltd.
                                                                  e
                                                                  Joint
TCL Moka
                    April 28,               May 20,               liability
International                    176,000                 43,061               /           /          1 year    No       No
                    2022                        2022              guarante
Limited
                                                                  e
Huizhou Moka                                                      Joint
Technology          April 28,                                     liability
                                  55,000            -         -               /           /             -      No       No
Development         2022                                          guarante
Co., Ltd.                                                         e
Moka                                                              Joint
Technology          April 28,               June 29,              liability                           1-8
                                 700,000                 85,566               /           /                    No       No
(Guangdong)         2022                        2022              guarante                           months
Co., Ltd.                                                         e
Guangzhou
China Star
                                                                  Joint
Optoelectronics
                    April 28,               March 4, 1,006,69 liability
Semiconductor                   1,750,000                                     /           /        1-8 years   No       No
                    2022                        2022          2 guarante
Display
                                                                  e
Technology Co.,
Ltd.
Suzhou China                                                      Joint
Star                April 28,                August               liability
                                 265,000                 16,444               /           /         10 years   No       No
Optoelectronics     2022                    30, 2022              guarante
Display Co., Ltd.                                                 e
Suzhou China
                                                                  Joint
Star
                    April 28,                                     liability
Optoelectronics                   57,000            -         -               /           /             -      No       No
                    2022                                          guarante
Technology Co.,
                                                                  e
Ltd.
                                                                  Joint
Highly (Tianjin)
                    April 28,                 July 9,             liability                          40-61
Technology Co.,                   50,000                 97,207               /           /                    No       No
                    2022                        2022              guarante                            days
Ltd.
                                                                  e



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                                                                             Joint
Highly (Tianjin)
                   April 28,                                                 liability
E-Commerce                               5,000              -            -                   /            /             -       No       No
                   2022                                                      guarante
Co., Ltd.
                                                                             e
Qingdao Blue                                                                 Joint
Business           April 28,                      July 27,                   liability
                                         5,000                      395                      /            /          242 days   No       No
Consulting Co., 2022                                 2022                    guarante
Ltd.                                                                         e
Tianjin                                                                      Joint
Printronics        April 28,                      October                    liability
                                      100,000                     1,521                      /            /          8 years    No       No
Circuit            2022                          12, 2022                    guarante
Corporation                                                                  e
                                                                             Joint
TCL Technology
                   April 28,                       August                    liability
Group (Tianjin)                       200,000                    90,000                      /            /          5 years    No       No
                   2022                          31, 2022                    guarante
Co., Ltd.*
                                                                             e
Tianjin TiTi                                                                 Joint
                                                 Septemb
Yunchuang          April 28,                                                 liability
                                         5,000      er 27,        5,000                      /            /           1 year    No       No
Technology Co., 2022                                                         guarante
                                                     2022
Ltd.*                                                                        e
Tianjin                                                                      Joint
                                                 Septemb
Xincheng Pilot     April 28,                                                 liability
                                         5,000      er 27,        5,000                      /            /           1 year    No       No
Technology Co., 2022                                                         guarante
                                                     2022
Ltd.*                                                                        e
Tianjin                                                                      Joint
                                                 Septemb
WanfangNuoxin April 28,                                                      liability
                                         5,000      er 27,        5,000                      /            /           1 year    No       No
Technology Co., 2022                                                         guarante
                                                     2022
Ltd. *                                                                       e
                                                                  Total actual
Total approved line for such                                    amount of such
guarantees in the Reporting                     12,781,600 guarantees in the                                                           3,880,593
Period (B1)                                                     Reporting Period
                                                                      (B2)
                                                                  Total actual
                                                                balance of such
Total approved line for such
                                                                guarantees at the
guarantees at the end of the                    12,781,600                                                                             6,007,740
                                                                   end of the
Reporting Period (B3)
                                                                Reporting Period
                                                                      (B4)
                                                 Guarantees provided between subsidiaries
                    Disclosure                    Actual        Actual        Type of                                Term of Expire Guarante
                                     Line of                                             Collatera Counterguarante
       Obligor      date of the                  occurren guarantee guarante                                         guarante   d or    e for
                                    guarantee                                            l (if any)   e (if any)
                   guarantee line                 ce date       amount            e                                     e       not    related




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                    announcemen                                                                                          parties or
                            t                                                                                               not
Huhehaote
                                                                      Joint
Huanju New                                      Decemb
                    November 26,                                      liability
Energy                                 19,529      er 11,    19,529               /           /         9.5 years   No      No
                    2014                                              guarante
Development                                         2015
                                                                      e
Co., Ltd.*
Zhonghuan                                                             Joint
Energy (Inner                                    July 21,             liability
                    June 24, 2017      11,240                11,240               /           /         15 years    No      No
Mongolia) Co.,                                      2017              guarante
Ltd.                                                                  e
                                                                      Joint
Otog Banner
                                                 August               liability
Huanju New          June 24, 2017      18,324                18,324               /           /         10 years    No      No
                                                30, 2017              guarante
Energy Co., Ltd.
                                                                      e
                    November 11,                                      Joint
Qinhuangdao
                    2017                         January              liability                          10-12
Tianhui Solar                          21,279                21,279               /           /                     No      No
                    September 6,                19, 2018              guarante                           years
Energy Co., Ltd.
                    2018                                              e
                                                                      Joint
Guyuan Shengju
                    September 6,                October               liability
New Energy                              9,369                 9,369               /           /         11 years    No      No
                    2018                         8, 2018              guarante
Co., Ltd.
                                                                      e
                                                                      Joint
Zhangjiakou
                    September 6,                October               liability
Shengyuan New                          12,840                12,840               /           /         11 years    No      No
                    2018                         8, 2018              guarante
Energy Co., Ltd.
                                                                      e
                                                                      Joint
Zhonghuan
                    March       22,               March               liability
Hong Kong                              65,000                50,000               /           /          3 years    No      No
                    2021                        26, 2021              guarante
Holding Limited
                                                                      e
Inner Mongolia                                                        Joint
                    March       22,
Zhonghuan                                       April 30,             liability
                    2021              582,497               463,497               /           /          7 years    No      No
Crystal Materials                                   2021              guarante
                    May 26, 2022
Co., Ltd.                                                             e
                                                                      Joint
Huansheng Solar
                    March       22,              April 1,             liability
(Jiangsu) Co.,                         48,000                48,000               /           /          5 years    No      No
                    2021                            2021              guarante
Ltd.
                                                                      e
Tianjin Huanzhi                                                       Joint
New Energy          January     21,              July 20,             liability
                                      171,500                45,283               /           /          7 years    No      No
Technology Co., 2021                                2021              guarante
Ltd.                                                                  e




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Ningxia                                                               Joint
Zhonghuan Solar January 23,                    May 30,                liability
                                   748,000                  470,000               /           /          7 years   No       No
Material Co.,      2022                           2022                guarante
Ltd.                                                                  e
Wuxi
                                                                      Joint
Zhonghuan
                                               June 30,               liability
Applied            May 26, 2022    190,000                  101,589               /           /          7 years   No       No
                                                  2022                guarante
Materials Co.,
                                                                      e
Ltd.
                                                                      Joint
Huansheng New                                 Septemb
                                                                      liability
Energy (Jiangsu) May 26, 2022       55,000       er 30,      31,822               /           /          5 years   No       No
                                                                      guarante
Co., Ltd.                                         2022
                                                                      e
Tianjin Huanou                                                        Joint
                                              Septemb
New Energy                                                            liability
                   May 26, 2022    115,000       er 28,      26,000               /           /          7 years   No       No
Technology Co.,                                                       guarante
                                                  2022
Ltd                                                                   e
Subsidiaries                                                          Joint
within the                                                            liability
                   May 26, 2022    450,000            -           -               /           /             -      No       No
consolidated                                                          guarante
scope (retained)                                                      e
Shenzhen China
Star
                                                                      Joint
Optoelectronics
                   April 28,                  April 28, 1,062,35 liability
Semiconductor                     2,612,500                                       /           /          8 years   No       No
                   2022                           2018            0 guarante
Display
                                                                      e
Technology Co.,
Ltd.*
PANEL
                                                                      Joint
OPTODISPLAY
                   April 28,                                          liability
TECHNOLOGY                           8,200            -           -               /           /             -      No       No
                   2022                                               guarante
PRIVATE
                                                                      e
LIMITED
                                                                      Joint
TCL Moka
                   April 28,                  April 29,               liability                          26-87
International                      214,500                   26,046               /           /                    No       No
                   2022                           2022                guarante                            days
Limited
                                                                      e
China Star                                                            Joint
                                              Novemb
Optoelectronics    April 28,                                          liability
                                   500,000       er 24,      87,058               /           /          3 years   No       No
International      2022                                               guarante
                                                  2020
(HK) Limited                                                          e
Total approved line for such                              Total actual
guarantees in the Reporting                               amount of such                                                   898,926
                                              5,083,200
Period (C1)                                               guarantees in the



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                                                           Reporting Period
                                                           (C2)
                                                           Total actual
                                                           balance of such
Total approved line for such
                                                           guarantees at the
guarantees at the end of the                                                                                                  2,504,227
                                                  5,852,779 end of the
Reporting Period (C3)
                                                           Reporting Period
                                                           (C4)

Total guarantee amount (total of the three kinds of guarantees above)

                                                           Total actual
Total guarantee line approved                              guarantee amount
in the Reporting Period                                    in the Reporting                                                   4,853,782
                                              19,629,197
(A1+B1+C1)                                                 Period
                                                           (A2+B2+C2)
                                                           Total actual
Total approved guarantee line                              guarantee balance
at the end of the Reporting                                at the end of the                                                  8,825,760
                                              20,444,276
Period (A3+B3+C3)                                          Reporting Period
                                                           (A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of
                                                                                                                                66.79%
the Company’s net assets

Of which:

Balance of guarantees provided for shareholders, the
                                                                                                                                248,946
actual controller and their related parties (D)
Balance of debt guarantees provided directly or
indirectly for obligors with an over 70% debt/asset                                                                           2,769,974
ratio (E)
Amount by which the total guarantee amount exceeds
                                                                                                                              2,218,823
50% of the Company’s net assets (F)

Total of the three above amounts (D+E+F)                                                                                      2,218,823

Joint liability possibly borne or already borne in the
                                                                                                                                      -
Reporting Period for outstanding guarantees (if any)
Guarantees provided in breach of prescribed
                                                                                                                                      -
procedures (if any)
     Note: (1) The guarantee period in the above table is the occurrence period of the principal debt. The actual guarantee is valid for
two or three years from the expiration date of the principal debt, which is subject to the single contract.
     (2) During the Reporting Period, the Company adjusts the guarantee limit to its controlling subsidiaries based on their demands.
The details are outlined as follows:
     ① The guarantee limit amounting to RMB2 billion offered to Suzhou China Star Optoelectronics Technology Co., Ltd. was
transferred to TCL Technology Group (Tianjin) Co., Limited, another controlling subsidiary.
     ②The guarantee limit amounting to RMB50 million offered to Beijing Sunpiestore Technology Co., Ltd. was transferred to
Tianjin Wanfang Nuoxin Technology Co., Ltd., Tianjin TiTi Yunchuang Technology Co., Ltd., and Tianjin Xincheng Pilot Technolo gy


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Co., Ltd., all of which are wholly-owned subsidiaries of the Company.
     The Company has performed internal review procedures for the above-mentioned guarantee transfers, finding that they did not
violate the legal provisions on listed companies, and complied with the relevant requirements of the Proposal on Providing Guarantees
for Subsidiaries in 2022 reviewed and approved at the 2021 annual shareholders’ meeting held on May 19, 2022.
     (3) In the table above, Shenzhen China Star Optoelectronics Semiconductor Display Technology Co., Ltd., a subsidiary controlled
by the Company, was jointly guaranteed by the Company and its subsidiary TCL China Star Optoelectronics Technology Co., Ltd. in
an external syndicated loan, in which the Company provided certain percentage of guarantee, while TCL China Star Optoelectronics
Technology Co., Ltd. provided full guarantee.
     (4) As at the end of the Reporting Period, the debt portion under joint guarantee amounted to RMB10.6234955 billion. The join t
guarantee has been filled in the “Company’s Guarantee for Subsidiaries” and “Guarantee Among Subsidiaries”, respectively. The “total
guarantee accrued at the end of the reporting period” and “total balance of guarantee accrued at the end of the Reporting Period”
including the debt portion under the joint guarantee amounted to RMB10.6234955 billion.
     In the “guarantee among subsidiaries”, the guaranteed entity and Huhehaote Huanju New Energy Development Co., Ltd. were
provided with the guarantee under joint and several liability by TCL Technology Group (Tianjin) Co., Ltd. and TCL Zhonghuan New
Energy Technology Co., Ltd., both of which were subsidiaries. As at the end of the Reporting Period, the debt portion under joint
guarantee amounted to RMB195.29 million.

3. Entrusted Cash Asset Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overview of cash entrusted for wealth management during the Reporting Period
                                                                                                                        Unit: RMB'0,000
                                                                                                                          Impairment
                                                                                                                         allowance for
                                                                                                                          unrecovered
                                                                                                   Unrecovered
           Type             Funding source             Amount               Undue amount                               overdue amount of
                                                                                                  overdue amount
                                                                                                                             wealth
                                                                                                                          management
                                                                                                                            products
 Bank’s wealth
 management              Self-funded                       628,075.00              856,786.41                      -                     -
 product
 Securities firm’s
 wealth management       Self-funded                       236,962.99              236,962.99                      -                     -
 product
 Trust plan              Self-funded                       110,000.00               80,000.00                      -                     -
 Other                   Self-funded                        37,969.76               37,969.76                      -                     -
 Total                                                   1,013,007.75            1,211,719.16                      -                     -
High-risk wealth management transactions with a significant single amount liquidity
□ Applicable √ Not applicable
(2) Loan Entrusted for Wealth Management
□ Applicable √ Not applicable

4. Other Major Contracts
□ Applicable √ Not applicable



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XVI. Other Significant Events
□ Applicable √ Not applicable
There are no other significant events that need to be explained for the Reporting Period.

XVII. Significant Events of Subsidiaries
□ Applicable √ Not applicable




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     Part VII Changes in Shares and Information about Shareholders
I. Changes in Shares
1. Changes in shares
                                                                                                                                                   Unit: share
                         Before change                          Increase/decrease in the Reporting Period (+/-)                          After change
                                                                                     Shares
                                                                     Bonus          converted
                     Shares        Percentage      New issues                                        Others         Subtotal         Shares        Percentage
                                                                     shares     from capital
                                                                                     reserve
 I. Restricted
                    612,110,488          4.36%    2,806,128,484           0                     0   1,981,995     2,808,110,479    3,420,220,967        20.03%
 Shares
 1. Shares held
 by state-
                              0          0.00%     877,192,981            0                     0             0    877,192,981      877,192,981          5.14%
 owned legal
 entities
 2. Shares held
 by other
                    611,718,990          4.36%     295,614,034            0                     0   1,618,932      297,232,966      908,951,956          5.33%
 domestic
 investors
 Among
 which: Shares
 held by                      0          0.00%     187,134,502            0                     0             0    187,134,502      187,134,502          1.10%
 domestic legal
 entities
 Shares held by
 domestic
                    611,718,990          4.36%     108,479,532            0                     0   1,618,932      110,098,464      721,817,454          4.23%
 natural
 persons
 3. Shares held
 by foreign             391,498          0.003%    196,783,625            0                     0    363,063       197,146,688      197,538,186          1.15%
 investors
 Among
 which: Shares
 held by                      0          0.00%     196,783,625            0                     0             0    196,783,625      196,783,625          1.15%
 foreign legal
 entities
 Shares held by
 foreign
                        391,498          0.003%                 0         0                     0    363,063           363,063          754,561         0.004%
 natural
 persons
 4. Fund,
 wealth
                              0          0.00%    1,436,537,844           0                     0             0   1,436,537,844    1,436,537,844         8.41%
 management
 product, etc.
 II. Non-
                                                                                                              -
 restricted       13,418,531,933         95.64%    235,120,702            0                     0                  233,138,707    13,651,670,640        79.97%
                                                                                                    1,981,995
 shares
 1. RM B-
                                                                                                              -
 denominated      13,418,531,933         95.64%    235,120,702            0                     0                  233,138,707    13,651,670,640        79.97%
                                                                                                    1,981,995
 ordinary stock
 III. Total
                  14,030,642,421     100.00%      3,041,249,186           0                     0             0   3,041,249,186   17,071,891,607        100.00%
 shares
Reasons for changes in shares


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√ Applicable □ Not applicable
1. During the Reporting Period, locked-up shares held by senior management increased by 1,981,995 shares, as non-restricted shares
decreased by the same amount;
2. During the Reporting Period, part of the convertible corporate bonds “TCL Private Convertible 2” issued by the Company were
converted to shares, among which 235,120,702 shares were newly added from conversion of the bonds by investors, resulting in an
increase of 235,120,702 shares of the Company without restrictions on sale.
3. During the Reporting Period, the Company issued 2,806,128,484 RMB-denominated ordinary stock in non-public offering, resulting
in an increase of 2,806,128,484 shares of the Company with restrictions on sale.
Approval of changes in shares
√ Applicable □ Not applicable
     Upon approval by the China Securities Regulatory Commission under the document Zheng Jian Xu Ke [2020] No. 2521 and with
the consent of the Shenzhen Stock Exchange, the Company issued 26,000,000 convertible corporate bonds to specific investors on
November 30, 2020, which were converted to 235,120,702 new shares by the investors. The total share capital of the Company was
increased from 14,030,642,421 shares to 14,265,763,123 shares.
     Upon approval by the China Securities Regulatory Commission under the document Zheng Jian Xu Ke [2022] No. 1658, the
Company issued a non-public offering of 2,806,128,484 RMB-denominated ordinary stock to specific investors, resulting in an increase
of 2,806,128,484 shares of the Company’s total share capital, which increased from 14,265,763,123 shares to 17,071,891,607 shares.
Transfer of share ownership
□ Applicable √ Not applicable
Effects of changes in shares on the basic earnings per share, diluted earnings per share, equity per share attributable to the Company’s
ordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively
√ Applicable □ Not applicable

                                       Item                                             January - December 2022

 Basic earnings per share (RMB/share)                                                                        0.0191

 Diluted earnings per share (RMB/share)                                                                      0.0185

                                       Item                                                December 31, 2022

 Net profit attributable to ordinary shareholders of the Company (RMB)                                         2.97
Other information that the Company considers necessary or is required by the securities regulator to be disclosed
□ Applicable √ Not applicable

2. Changes in Restricted Shares
√ Applicable □ Not applicable
                                                                                                                                  Unit: share
                                                                     Number of
                         Number of              Number of
                                                                      released          Number of
        Name of           restricted             increased                                                 Reason for    Date of restriction
                                                                     restricted       restricted shares
    Shareholder           shares at           restricted shares                                            restriction         release
                                                                    shares of the      at period-end
                        period-begin            of the period
                                                                       period
 CITIC Securities                                                                                         The shares     The restriction on
                                       0           280,701,754                    0        280,701,754
 Co., Ltd.                                                                                                were within    the sale of new
 Guotai Junan                                                                                             the lockup     shares will be
 Securities Co.,                       0           228,070,175                    0        228,070,175    period of      released after 6
 Ltd.                                                                                                     non-public     months from the



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Everbright                                                                        offering       date of listing
Securities                                                                        (shares of     (December 22,
                             0     204,678,362              0       204,678,362
Company                                                                           the            2022)
Limited                                                                           Company
UBS AG                       0     196,783,625              0       196,783,625   subscribed
GF Securities                                                                     by investors
                             0     187,134,502              0       187,134,502
Co., Ltd.                                                                         in non-
Haitong                                                                           public
Securities Co.,              0     163,742,690              0       163,742,690   offering
Ltd.                                                                              shall not be
Perseverance                                                                      transferred
Asset                                                                             within 6

Management                                                                        months from

Partnership                                                                       the date of
(Limited                     0     131,578,947              0       131,578,947   listing)
Partnership) -
Gaoyi Xiaofeng
No. 2 Zhixin
Fund
China Life Asset
Management -
Bank of China -
China Life Asset
                             0     116,959,064              0       116,959,064
- PIPE2020
Insurance Asset
Management
Product
Shen Ruijin                  0     108,479,532              0       108,479,532
Huaxia Life
Insurance Co.,
                             0       87,719,298             0        87,719,298
Ltd. - Self-owned
funds
Other
shareholders
participating in
                             0    1,100,280,535             0     1,100,280,535
the non-public
offering of the
Company
                                                                                  Locked-up
                                                                                  shares of
Other               612,110,488       1,981,995             0       614,092,483                  Not applicable
                                                                                  senior
                                                                                  management
Total               612,110,488   2,808,110,479             0     3,420,220,967            --             --




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II. Issuance and Listing of Securities
1. Issuance of Securities (Preferred Shares Exclusive) in the Reporting Period
√ Applicable □ Not applicable


   Name of                                                                                       Termina
  stock and                       Issue price                                     Number              tion     Index to
                                                                    Listing                                                   Date of
       its        Issue date      (or interest   Issued number                  approved for      date of      disclosed
                                                                     date                                                    disclosure
  derivative                         rate)                                     public trading    transacti    information
   securities                                                                                         on
 Shares
 Conversion
 of
                                                                   Novem                         Not
 directional      November      RMB                                                                                         November
                                                   235,120,702     ber            235,120,702    applicab
 convertible      2022          4.10/share                                                                   Please refer   24, 2022
                                                                   2022                          le
 bonds to                                                                                                    to
 shares                                                                                                      www.cninf
                                                                                                             o.com.cn       December
 Non-public                                                        Decemb                        Not
                  November      RMB                                                                                         16, 2022,
 offering of                                      2,806,128,484    er 22,       2,806,128,484    applicab
                  28, 2022      3.42/share                                                                                  December
 A-shares                                                          2022                          le
                                                                                                                            21, 2022
 Convertible corporate bonds, convertible corporate bonds with attached warrants, corporate bonds
 Not applicable
 Other derivative securities
 Not applicable
Notes on Issuance of Securities (Preferred Shares Exclusive) in the Reporting Period
      Upon approval by the China Securities Regulatory Commission under the document Zheng Jian Xu Ke [2020] No. 2521 and with
the consent of the Shenzhen Stock Exchange, the Company issued 26,000,000 convertible corporate bonds to specific investors on
November 30, 2020, which were converted to 235,120,702 new shares by the investors. The total share capital of the Company wa s
increased from 14,030,642,421 shares to 14,265,763,123 shares.
      Upon approval by the China Securities Regulatory Commission under the document Zheng Jian Xu Ke [2022] No. 1658, the
Company issued a non-public offering of 2,806,128,484 RMB-denominated ordinary stock to specific investors, resulting in an increase
of 2,806,128,484 shares of the Company’s total share capital, which increased from 14,265,763,123 shares to 17,071,891,607 shares.

2. Changes in the Total Number of Shares, Shareholder Structure, and the Structure of Assets and Liabilities
√ Applicable □ Not applicable
(1) For Changes in the total number of shares and shareholder structure, see “I. Changes in Shares” in this part.
(2) The total assets and net assets increased during the Reporting Period, as some of the convertible corporate bonds “TCL Private
Convertible 2” issued by the Company were converted to shares by the investors and the funds raised through the non-public offering
of shares were received.

3. Existing Staff-Held Shares
□ Applicable   √ Not applicable
III. Shareholders and Actual Controller
1. Total Number of Shareholders and Their Shareholdings
                                                                                                                              Unit: share

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                                                                               Total
                                                                             number of
                                                                            preference
                                      Number of
Total number                                                                shareholders
                                       ordinary                                                                    Number of preference
 of ordinary                                                                    with
                                     shareholders                                                                shareholders with resumed
 shareholders                                                                resumed
                           731,411   at the month-               698,567                                   0   voting rights at the month-end                       0
 by the end of                                                              voting rights
                                      end prior to                                                              prior to the disclosure of this
 the reporting                                                              by the end
                                     the disclosure                                                                        Report
       period                                                                  of the
                                     of this Report
                                                                             reporting
                                                                             period (if
                                                                                any)
                            Shareholdings of ordinary shareholders with more than 5% or the top 10 shareholders of ordinary shares
                                                                            Increase/dec                                            Shares in pledge, marked or
                                                                                              Number of          Number of
                                     Shareholding     Number of shares      rease during                                                          frozen
   Name of          Nature of                                                                 restricted       non-restricted
                                      percentage      held at the period-       the
 Shareholder       Shareholder                                                                 ordinary        ordinary shares
                                          (%)                end             Reporting                                                 Status              Shares
                                                                                             shares held            held
                                                                               Period
                                                                                                                                    Put in
                                                                                                                                    pledge by Li       143,665,800
Li Dongsheng      Domestic
                                                                                                                                    Dongsheng
and his acting-   individual/Do
                                            6.79%          1,159,085,019                      610,545,821         548,539,198       Put in
in-concert        mestic general
                                                                                                                                    pledge by
party             legal entity                                                                                                                         253,620,000
                                                                                                                                    Jiutian
                                                                                                                                    Liancheng
Huizhou
Investment
Holding Co.,      State-owned
                                            4.23%            722,144,427                                   0      722,144,427
Ltd. and its      legal entity
acting-in-
concert parties
Hong Kong
Securities        Foreign legal
                                            2.28%            388,498,477                                   0      388,498,477
Clearing          entity
Company Ltd.
China
Securities        Domestic
Finance           general legal             2.19%            373,231,553                                   0      373,231,553
Corporation       entity
Limited
CITIC
                  State-owned
Securities Co.,                             1.71%            292,681,754                      280,701,754          11,980,000
                  legal entity
Ltd.
Guotai Junan
                  State-owned
Securities Co.,                             1.34%            228,563,475                      228,070,175              493,300
                  legal entity
Ltd.
Everbright
Securities        State-owned
                                            1.20%            205,004,054                      204,678,362              325,692
Company           legal entity
Limited
                  Foreign legal
UBS AG                                      1.15%            196,842,825                      196,783,625               59,200
                  entity



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                    Domestic
GF Securities
                    general legal            1.12%           190,658,402                        187,134,502           3,523,900
Co., Ltd.
                    entity
Haitong
                    State-owned
Securities Co.,                              0.96%           163,749,690                        163,742,690               7,000
                    legal entity
Ltd.
Strategic investor or general legal
entity becoming top-10 ordinary
                                      Not applicable
shareholders due to private
placement of new shares (if any)
                                      Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) became persons
                                      acting in concert by signing the Agreement on Concerted Action, holding 1,159,085,019 shares in total and becoming the
                                      largest shareholder of the Company.
Note on the above shareholders’
                                      Huizhou Investment Development Co., Ltd. and Huizhou Investment Holding Co., Ltd. became persons acting in concert
associations or concerted actions
                                      due to equity relations. As at the end of the Reporting Period, there were 4,587 shares registered by Huizhou Investment
                                      Development Co., Ltd. with the China Securities Depository and Clearing Corporation Limited and 722,139,840 shares
                                      registered by Huizhou Investment Holding Co., Ltd. with the China Securities Depository and Clearing Corporation Limited
Explain if any of the shareholders
above was involved in
entrusting/being entrusted with       Not applicable
voting rights or waiving voting
rights
Explanation on repurchase
accounts among top 10                 Not applicable
shareholders (if any)
                                                         Top 10 non-restricted ordinary shareholders
                                                                                                                                           Type of shares
         Name of Shareholder              Number of non-restricted ordinaery shares held at the end of the reporting period
                                                                                                                                     Type             Shares
                                                                                                                                  RMB-
Huizhou Investment Holding Co.,
                                                                                                                                  denominate
Ltd. and its acting-in-concert                                                                                     722,144,427                      722,144,427
                                                                                                                                  d ordinary
parties
                                                                                                                                  shares
                                                                                                                                  RMB-
Li Dongsheng and his acting-in-                                                                                                   denominate
                                                                                                                   548,539,198                      548,539,198
concert party                                                                                                                     d ordinary
                                                                                                                                  shares
                                                                                                                                  RMB-
Hong Kong Securities Clearing                                                                                                     denominate
                                                                                                                   388,498,477                      388,498,477
Company Ltd.                                                                                                                      d ordinary
                                                                                                                                  shares
                                                                                                                                  RMB-
China Securities Finance                                                                                                          denominate
                                                                                                                   373,231,553                      373,231,553
Corporation Limited                                                                                                               d ordinary
                                                                                                                                  shares
                                                                                                                                  RMB-
Wuhan Optics Valley Industrial                                                                                                    denominate
                                                                                                                   128,312,396                      128,312,396
Investment Co., Ltd.                                                                                                              d ordinary
                                                                                                                                  shares
TCL Technology Group                                                                                                              RMB-
Corporation - 2021 to 2023                                                                                                        denominate
                                                                                                                   113,143,154                      113,143,154
Employee Stock Ownership Plan                                                                                                     d ordinary
(Phase I)                                                                                                                         shares
National Social Security Fund 113                                                                                  107,093,876    RMB-              107,093,876



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Portfolio                                                                                                                          denominate
                                                                                                                                   d ordinary
                                                                                                                                   shares
TCL Technology Group                                                                                                               RMB-
Corporation - 2021 to 2023                                                                                                         denominate
                                                                                                                   106,484,364                      106,484,364
Employee Stock Ownership Plan                                                                                                      d ordinary
(Phase II)                                                                                                                         shares
                                                                                                                                   RMB-
Sinatay Life Insurance Co., Ltd. -                                                                                                 denominate
                                                                                                                   104,190,172                      104,190,172
Conventional Product                                                                                                               d ordinary
                                                                                                                                   shares
ICBC Credit Suisse Fund -
                                                                                                                                   RMB-
Agricultural Bank of China -
                                                                                                                                   denominate
ICBC Credit Suisse China                                                                                             74,761,500                       74,761,500
                                                                                                                                   d ordinary
Securities Financial Asset
                                                                                                                                   shares
Management Plan
Related or acting-in-concert         Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) became persons
parties among top 10 non-            acting in concert by signing the Agreement on Concerted Action, holding 1,159,085,019 shares in total and becoming the
restricted outstanding               largest shareholder of the Company.
shareholders, as well as between     Huizhou Investment Development Co., Ltd. and Huizhou Investment Holding Co., Ltd. became persons acting in concert
top 10 non-restricted outstanding    due to equity relations. As at the end of the Reporting Period, there were 4,587 shares registered by Huizhou Investment
shareholders and top 10              Development Co., Ltd. with the China Securities Depository and Clearing Corporation Limited and 722,139,840 shares
shareholders                         registered by Huizhou Investment Holding Co., Ltd. with the China Securities Depository and Clearing Corporation Limited
Explanation for the top 10           As at the end of the Reporting Period, a shareholder of the Company, i.e., Huizhou Investment Holding Co., Ltd. and its
ordinary shareholders                person acting in concert, i.e., Huizhou Investment Development Co., Ltd., decreased the number of shares by 66,500,000
participating in securities margin   shares due to their participation in the refinancing business; the shareholder Wuhan Optical Valley Industrial Investment
trading (if any)                     Co., Ltd. decreased the number of shares by 430,240,000 shares due to its participation in the refinancing business.
Indicate whether any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company conducted
any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.

2. The Company’s Controlling Shareholders
Explanation of The Company’s Absence of Controlling Shareholders
      Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) became persons acting in
concert by signing the Agreement on Concerted Action, holding 1,159,085,019 shares in total and becoming the largest shareholder of
the Company.
      As per Article 216 of the Company Law, a controlling shareholder refers to a shareholder who owns over 50% of a limited liabilit y
company’s total capital or over 50% of a joint stock company’s total share capital; or, despite the ownership of less than 50% of a
limited liability company’s total capital or less than 50% of a joint stock company’s total number of shares, who can still prevail in the
resolution of a meeting of shareholders or a general meeting of shareholders according to the voting rights corresponding to his interest
in the limited liability company’s total capital or the joint stock company’s total number of shares.
      According to the definition above, the Company has no controlling shareholder.
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable

3. Actual Controller and Its Acting-in-Concert Parties
Explanation of The Company’s Absence of Actual Controller
      The “actual controller” refers to an entity which is not a shareholder of a company but actually controls the company behaviors
through investment relationship, agreement or other arrangements. According to the definition above, the Company has no actua l
controller.

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Whether there is any shareholder holding more than 10% of the shares at the ultimate control level of the Company
□ Yes √No
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
The actual controller controls the Company through trust or other asset management methods
□ Applicable √ Not applicable

4. The cumulative number pledged shares of the Company’s controlling shareholder or the largest
shareholder and its acting-in-concert parties account for 80% of the company shares held by them.
□ Applicable   √ Not applicable
5. Other Corporate Shareholders with a Holding Percentage over 10%
□ Applicable   √ Not applicable
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□ Applicable   √ Not applicable
IV. Specific Implementation of Share Repurchase During the Reporting Period
Progress on any share repurchase
√ Applicable □ Not applicable


                                                                                                                           The
                                                                                                                        proportion
                                                                                                                            of
                                                                                                                    repurchased
                                                                                                      Number of
 Disclosure      Number of shares       Proportion to      Amount of       Proposed      Purpose of                 shares to the
                                                                                                      repurchased
 time of the     to be repurchased        total share     shares to be     repurchase       share                       underlying
                                                                                                        shares
     plan            (shares)               capital       repurchased           period   repurchase                       shares
                                                                                                       (shares)
                                                                                                                        involved in
                                                                                                                        the equity
                                                                                                                         incentive
                                                                                                                    plan (if any)
                With a total           Based on the       The total       Within 12
                repurchase             approximately      amount of       months after
                amount of              68.75 million of   repurchase      the 16th
                                                                                         For
                RMB450 million         shares that can    shall be no     Meeting of
                                                                                         employee
                to 550 million at a    be repurchased,    less than       the
                                                                                         stock
 March 21,      repurchase price       the proportion     RMB450          Company’s
                                                                                         ownership    106,484,364   -
 2022           of no more than        of the             million         7th Board of
                                                                                         plans or
                RMB8.00 per            repurchased        (inclusive)     Directors
                                                                                         equity
                share (inclusive),     shares to the      and no more     deliberates
                                                                                         incentives
                it is estimated that   Company’s         than            and
                the number of          total share        RMB550          approves
                shares that can be     capital            million         this share



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               repurchased will     approximately      (inclusive)     repurchase
               be approximately     equals to 0.49%                    plan
               68.75 million
               shares based on
               the upper limit of
               the total
               repurchase
               amount and the
               upper limit of the
               share repurchase
               price
Progress on reducing the repurchased shares by means of centralized bidding
□ Applicable √ Not applicable




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                                                     Part VIII Bonds
I. Enterprise Bonds
□ Applicable   √ Not applicable
No enterprise bonds in the Reporting Period.

II. Corporate Bonds
√ Applicable □ Not applicable

1. General Information on Corporate Bonds
                                                                                                                    Unit: RMB'0,000
                                                                                                        Way of
                                                                                                        principal
                                    Bond   Date of     Value                   Outstanding    Coupon   repayment         Place of
  Bond name          Abbr.                                         Maturity
                                    code   issuance     date                    balance        rate        and          transaction
                                                                                                         interest
                                                                                                        payment
 TCL
                                                                                                       Interest
 Corporation
                                                                                                       payable
 Corporate
                                                                                                       annually
 Bonds
                                           October     October                                         and              Shenzhen
 Publicly                                                           October
                    19TCL03       112983        17,        21,                       44,000    2.95%   principal          Stock
 Offered in                                                        21, 2024
                                               2019       2019                                         repayable        Exchange
 2019 to
                                                                                                       in full
 Qualified
                                                                                                       upon
 Investors
                                                                                                       maturity
 (Tranche 3)
 TCL
                                                                                                       Interest
 Corporation
                                                                                                       payable
 Corporate
                                                                                                       annually
 Bonds
                                                                                                       and              Shenzhen
 Publicly                                  July 19,    July 23,     July 23,
                    19TCL02       112938                                            100,000    3.05%   principal          Stock
 Offered in                                    2019       2019          2024
                                                                                                       repayable        Exchange
 2019 to
                                                                                                       in full
 Qualified
                                                                                                       upon
 Investors
                                                                                                       maturity
 (Tranche 2)
 TCL                                                                                                   Interest
 Corporation                                                                                           payable
 Corporate                                                                                             annually
                                                                                                                        Shenzhen
 Bonds                                     May 17,     May 20,      May 20,                            and
                    19TCL01       112905                                            100,000    3.15%                      Stock
 Publicly                                      2019       2019          2024                           principal
                                                                                                                        Exchange
 Offered in                                                                                            repayable
 2019 to                                                                                               in full
 Qualified                                                                                             upon



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 Investors                                                                                                      maturity
 (Tranche 1)
 TCL
                                                                                                                Interest
 Corporation
                                                                                                                payable
 Corporate
                                                                                                                annually
 Bonds
                                            August       August                                                 and             Shenzhen
 Publicly                                                            August
                    18TCL02       112747         17,         20,                        200,000       3.55%     principal        Stock
 Offered in                                                         20, 2023
                                                2018       2018                                                 repayable       Exchange
 2018 to
                                                                                                                in full
 Qualified
                                                                                                                upon
 Investors
                                                                                                                maturity
 (Tranche 2)
 TCL
                                                                                                                Interest
 Corporation
                                                                                                                payable
 Corporate
                                                                                                                annually
 Bonds
                                                                                                                and             Shenzhen
 Publicly                                   June 5,      June 6,      June 6,
                    18TCL01       112717                                                 17,002       4.00%     principal        Stock
 Offered in                                     2018       2018          2023
                                                                                                                repayable       Exchange
 2018 to
                                                                                                                in full
 Qualified
                                                                                                                upon
 Investors
                                                                                                                maturity
 (Tranche 1)
 Investor eligibility (if any)             For qualified investors / For professional investors
 Trading system applicable                 Match to trade, click to trade, inquire to trade, bid to trade, negotiate to trade
 Risk of termination of listing
 and trading (if any) and                  No
 countermeasures
Overdue bonds

□ Applicable   √ Not applicable
2. Triggering and implementation of issuer or investor option clauses and investor protection clauses
√ Applicable □ Not applicable
    In accordance with the provisions of the Prospectus for TCL Technology Group Corporation Corporate Bonds Publicly Offered
in 2019 to Qualified Investors (Tranche 1), the bondholders of 19TCL01 elected to sell back all or part of their 19TCL01 to TCL
Technology Group Corporation during the sell-back registration period (April 19, 2022 to April 25, 2022) at the sell-back price of
RMB100/bond (excluding interest). The coupon rate adjusted from 4.33% to 3.15% two years after the existence period, and the sell-
back fund was released on May 20, 2022. According to the data provided by the Shenzhen Branch of China Securities Depository and
Clearing Corporation Limited, the number of 19TCL01 sold back during the sell-back registration period was 10,000,000, and the sell-
back amount was RMB1,000,000,000 (excluding interest). As indicated in the Announcement on Resale Implementation Results, the
Company resold the sold-back bonds from May 23, 2022 to June 20, 2022, and the number of bonds proposed to be resold would be
no more than 10,000,000. The number of bonds resold in this tranche was 10,000,000, and the average resale price was
RMB100.2534/bond, and all of which had been resold through manual transfer. Upon the completion of the resales, no bonds pending
for resales remain, and there are 10,000,000 bonds of 19TCL01 outstanding in depositary.
    In accordance with the provisions of the Prospectus for TCL Technology Group Corporation Corporate Bonds Publicly Offered
in 2019 to Qualified Investors (Tranche 2), the bondholders of 19TCL02 elected to sell back all or part of their 19TCL02 to TCL


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Technology Group Corporation during the sell-back registration period (June 27, 2022 to July 1, 2022) at the sell-back price of
RMB100/bond (excluding interest). The coupon rate adjusted from 4.30% to 3.05% two years after the existence period, and the sell-
back fund was released on July 25, 2022. According to the data provided by the Shenzhen Branch of China Securities Depository and
Clearing Corporation Limited, the number of 19TCL02 sold back during the sell-back registration period was 9,800,000, and the sell-
back amount was RMB980,000,000 (excluding interest). As indicated in the Announcement on Resale Implementation Results, the
Company resold the sold-back bonds from July 26, 2022 to August 22, 2022, and the number of bonds proposed to be resold would be
no more than 9,800,000. The number of bonds resold in this period was 9,800,000, with a net weighted average resale price of
RMB100.0000 per bond. Among them, the number of bonds resold through the “sell-back and resale” column of the Shenzhen Stock
Exchange trading system was 9,800,000. Upon the completion of the resales, no bonds pending for resales remain, and there are
10,000,000 bonds of 19TCL01 outstanding in depositary.
    In accordance with the provisions of the Prospectus for TCL Technology Group Corporation Corporate Bonds Publicly Offered
in 2019 to Qualified Investors (Tranche 3), the bondholders of 19TCL03 elected to sell back all or part of their 19TCL03 to TCL
Technology Group Corporation during the sell-back registration period (September 16, 2022 to September 22, 2022) at the sell-back
price of RMB100/bond (excluding interest). The coupon rate adjusted from 4.20% to 2.95% two years after the existence period, and
the sell-back fund was released on October 21, 2022. According to the data provided by the Shenzhen Branch of China Securities
Depository and Clearing Corporation Limited, the number of 19TCL03 sold back during the sell-back registration period was
19,000,000, and the sell-back amount was RMB1,900,000,000 (excluding interest). As indicated in the Announcement on Resale
Implementation Results, the Company resold the sold-back bonds from October 24, 2022 to November 18, 2022 according to relevant
regulations, and the number of bonds to be resold would be no more than 19,000,000. The number of bonds resold in this period was
3,400,000, with a full weighted average resale price of RMB99.6724 per bond. Among them, the number of bonds resold through the
“sell-back and resale” column of the Shenzhen Stock Exchange trading system was 3,400,000. After the implementation of the resale
of the 19TCL03 bonds, the Company applied to the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited
for the cancellation of the 15,600,000 bonds that had not been resold. After the cancellation, the number of remaining 19TCL0 3
depository bonds was 4,400,000.

3. Intermediary Organizations
                            Name of                                                            Contact of
    Name of bond                                                         Name of signing
                          intermediary         Office address                                 intermediary            Tel.
       project                                                             accountants
                           organization                                                       organization
 18TCL01,
 18TCL02,                 Guotai Junan       33F, One Museum
                                                                                           Xu Lei, Wu Lei, Li
 19TCL01,                Securities Co.,      Place, 669 Xinzha                 -                                021 -38032198
                                                                                                Hongyu
 19TCL02,                      Ltd.            Road, Shanghai
 19TCL03
 18TCL01,                                       Citic Office
                                                                                           Yang Fang, Deng
 18TCL02,                                        Tower, 48
                        CITIC Securities                                                   Xiaoqiang, Chen
 19TCL01,                                       Liangmaqiao                     -                                010 -60833575
                            Co., Ltd.                                                       Donghui, Zhou
 19TCL02,                                     Road, Chaoyang
                                                                                           Junren, Shi Chunli
 19TCL03                                       District, Beijing
 18TCL01,                                        F1-8, CDB
                              China
 18TCL02,                                       Building, 29                                 Ji Tuo, Zhao
                          Development
 19TCL01,                                    Fuchengmen Outer                   -             Liang, Zhao        010 -88300907
                         Bank Securities
 19TCL02,                                     Avenue, Xicheng                                   Zhipeng
                            Co., Ltd.
 19TCL03                                       District, Beijing
 19TCL01,               TF Securities Co.,         5F, 83                       -           Huang Yike, Liu      010 -56702804



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                            Name of                                                            Contact of
    Name of bond                                                         Name of signing
                          intermediary        Office address                                  intermediary          Tel.
       project                                                             accountants
                          organization                                                         organization
 19TCL02,                     Ltd.             Deshengmen                                         Yue
 19TCL03                                      Outer Avenue,
                                             Xicheng District,
                                                   Beijing
                            Shenwan
 19TCL01,                  Hongyuan            19 Taipingqiao
                                                                                            Zhou Fan, Ouyang
 19TCL02,                  Securities        Avenue, Xicheng                    -                              010 -88085933
                                                                                                Wenjian
 19TCL03               Underwriting Co.,      District, Beijing
                              Ltd.
                                             26F, China Travel
                                                Hong Kong
                         Huatai United
 18TCL01,                                     Building, CBD                                  Yu Shouxiang,
                         Securities Co.,                                        -                              0755 -82492000
 18TCL02                                       Central Plaza,                                 Tian Jianrong
                              Ltd.
                                              Futian District,
                                                 Shenzhen
 18TCL01,
                                              F408, Yuanyang
 18TCL02,
                        Beijing Jia Yuan       Building , 158                                Wen Liangjuan,
 19TCL01,                                                                       -                              010 -66413377
                          Law Offices        Fuxingmen Inner                                   Wang Ying
 19TCL02,
                                              Avenue, Beijing
 19TCL03
                                            Building 6, Galaxy
                                               SOHO, No. 2
 18TCL01,
                        China Chengxin          Nanzhugan
 18TCL02,
                          International           Hutong,
 19TCL01,                                                                       -               Yan Yan        010 -66428877
                       Credit Rating Co.,      Chaoyangmen
 19TCL02,
                              Ltd.             Inner Avenue,
 19TCL03
                                                Dongcheng
                                              District, Beijing
 18TCL01,               Da Hua Certified     Building 7, Yard
 18TCL02,                    Public           16, West Fourth           Li Bingxin, Zhang
 19TCL01,                 Accountants       Ring Middle Road,           Yuanyuan, Yang        Jiang Xianmin    0755 -82900734
 19TCL02,               (Special General      Haidian District,            Chunxiang
 19TCL03                  Partnership)             Beijing


Whether the above organizations are changed in the Reporting Period
□ Yes √No




4. Use of the Capital Raised
                                                                                                                Unit: RMB'0,000




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                                                                                                                                          Whether
                                                                                                                                       consistent with
                                                                                           Operation of      Rectification of            the purpose,
  Name of bond           Total amount of                                                   special fund-      illegal use of           usage plan and
                                             Amount spent         Unused amount
        project              raised funds                                                 raising account    raised funds (if               other
                                                                                              (if any)               any)                agreements
                                                                                                                                       promised in the
                                                                                                                                         prospectus
                                                                                          Set up a fund-
 18TCL01,                                                                                 raising account
 18TCL02,                                                                                 to ensure that
 19TCL01,                          700,000             700,000                     0      the funds raised     Not applicable               Consistent
 19TCL02,                                                                                 are earmarked
 19TCL03                                                                                  for special
                                                                                          purposes
The raised funds were used for construction projects
□ Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period
□ Applicable √ Not applicable

5. Adjustments of credit rating results during the Reporting Period
□ Applicable √ Not applicable

6. The implementation and changes of guarantees, debt repayment plans and other safeguard measures
regarding debt repayment during the Reporting Period, and their impact on bond investor equity
□ Applicable √ Not applicable

III. Debt Financing Instruments of Non-Financial Enterprises
√ Applicable □ Not applicable

1. General information of debt financing instruments of non-financial enterprises
                                                                                                                               Unit: RMB100 million
                                                                                                                             Way of
                                                                                                                             principal
                                                                                              Outstandi                                      Place of
      Bond                            Bond     Date of           Value                                       Coupon         repaymen
                      Abbr.                                                    Maturity           ng                                         transactio
      name                            code    issuance           date                                         rate             t and
                                                                                               balance                                           n
                                                                                                                             interest
                                                                                                                             payment
 2022                                                                                                                       Interest
 Mid-                                                                                                                       payable
                  22TCL Ji
 Term                                                                                                                       annually
                  MTN003
 Notes of                                                                                                                   and             Inter-
                  (Scientifi      10228147   July 4,         July 6,       July 6,
 TCL                                                                                                 20.00     3.45%        principal       bank
                  c               4          2022            2022          2025
 Technolo                                                                                                                   repayable       market
                  innovatio
 gy Group                                                                                                                   in full
                  n notes)
 Corporati                                                                                                                  upon
 on                                                                                                                         maturity


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(Tranche
3)
(Scientifi
c
innovatio
n notes)
2022
Mid-
                                                                                                Interest
Term
                                                                                                payable
Green
                                                                                                annually
Notes of
                                                                                                and          Inter-
TCL          22TCL Ji   13228004   April 25,   April 27,     April 27,
                                                                            15.00      3.30%    principal    bank
Technolo     GN002      0          2022        2022          2025
                                                                                                repayable    market
gy Group
                                                                                                in full
Corporati
                                                                                                upon
on
                                                                                                maturity
(Tranche
2)
2022
Mid-                                                                                            Interest
Term                                                                                            payable
Notes of                                                                                        annually
TCL                                                                                             and          Inter-
             22TCL Ji   10228008   January     January       January
Technolo                                                                    20.00      3.45%    principal    bank
             MTN001     9          12, 2022    14, 2022      14, 2025
gy Group                                                                                        repayable    market
Corporati                                                                                       in full
on                                                                                              upon
(Tranche                                                                                        maturity
1)
2021
Mid-
Term                                                                                            Interest
Notes of                                                                                        payable
TCL          21TCL-                                                                             annually
Technolo     MTN001                                                                             and          Inter-
                        10210096   May 10,     May 12,       May 12,
gy Group     (High-                                                         20.00      4.15%    principal    bank
                        6          2021        2021          2024
Corporati    Growth                                                                             repayable    market
on           Bonds)                                                                             in full
(Tranche                                                                                        upon
1) (High-                                                                                       maturity
growth
bonds)
2020         20TCL Ji   10200050   March 25,   March 27,     March 27,                          Interest     Inter-
                                                                            30.00      3.60%
Mid-         MTN001     9          2020        2020          2023                               payable      bank



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 Term                                                                                                           annually      market
 Notes of                                                                                                       and
 TCL                                                                                                            principal
 Technolo                                                                                                       repayable
 gy Group                                                                                                       in full
 Corporati                                                                                                      upon
 on                                                                                                             maturity
 (Tranche
 1)
 Investor eligibility (if any)              Not applicable
 Trading system applicable                  Not applicable
 Risk of termination of listing
 and trading (if any) and                   No
 countermeasures
Overdue bonds
□ Applicable √ Not applicable



2. Triggering and implementation of issuer or investor option clauses and investor protection clauses
□ Applicable √ Not applicable

3. Intermediary Organizations
                                 Name of                                                          Contact of
      Name of bond                                                          Name of signing
                             intermediary          Office address                                intermediary               Tel.
         project                                                              accountants
                             organization                                                        organization
 20TCL Ji
 MTN001, 21TCL
 Ji MTN001,                                      55 Fuxingmen
                         Industrial and
 22TCL Ji GN002,                                 Inner Avenue,
                         Commercial Bank                                -                     Dai Ying                010 -66109649
 22TCL Ji                                        Xicheng District,
                         of China
 MTN003                                          Beijing
 (Scientific
 innovation notes)
                                                 69 Jianguomen
 20TCL Ji
                         Agricultural Bank       Inner Avenue,
 MTN001, 22TCL                                                          -                     An Liwei                010 -85109045
                         of China                Dongcheng
 Ji MTN001
                                                 District, Beijing
 21TCL Ji
 MTN001, 22TCL           China                   25 Jinrong
 Ji MTN003               Construction Bank       Avenue, Xicheng        -                     Zhou Peng               010 -67596478
 (Scientific             Corporation             District, Beijing
 innovation notes)
 22TCL Ji                Bank of China           1 Fuxingmen Inner
                                                                        -                     Wang Chong              010 -66592195
 MTN001                  Limited                 Avenue, Beijing
                         Shanghai Pudong         12 Zhongshan East
 22TCL Ji GN002                                                         -                     Lin Jie                 021 -61616388
                         Development             1st Road,


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                                                           Full Text of the Annual Report 2022 of TCL Technology Group Corporation


                       Bank Co., Ltd.         Shanghai
 20TCL Ji
                                              Building 6, Galaxy
 MTN001, 21TCL
                                              SOHO, No. 2
 Ji MTN001,
                       China Chengxin         Nanzhugan
 22TCL Ji
                       International          Hutong,
 MTN001, 22TCL                                                       -                          Yan Yan                  010 -66428877
                       Credit Rating Co.,     Chaoyangmen
 Ji GN002, 22TCL
                       Ltd.                   Inner Avenue,
 Ji MTN003
                                              Dongcheng
 (Scientific
                                              District, Beijing
 innovation notes)
 20TCL Ji
 MTN001, 21TCL
 Ji MTN001,            Da Hua Certified       Building 7, Yard
 22TCL Ji              Public                 16, West Fourth
                                                                     Qiu Junzhou and
 MTN001, 22TCL         Accountants            Ring Middle Road,                                 Jiang Xianmin            0755 -82900734
                                                                     Jiang Xianmin
 Ji GN002, 22TCL       (Special General       Haidian District,
 Ji MTN003             Partnership)           Beijing
 (Scientific
 innovation notes)
Whether the above organizations were changed during the Reporting Period
□ Yes √No

4. Use of the Capital Raised
                                                                                                                            Unit: RMB'0,000
                                                                                                                               Whether
                                                                                                                            consistent with
                                                                               Operation of           Rectification of       the purpose,
  Name of bond       Total amount of                                           special fund-           illegal use of       usage plan and
                                          Amount spent      Unused amount
      project         raised funds                                            raising account         raised funds (if           other
                                                                                     (if any)              any)              agreements
                                                                                                                            promised in the
                                                                                                                              prospectus
 20TCL Ji
 MTN001,
 21TCL Ji
                                                                              Set up a fund-
 MTN001,
                                                                              raising account
 22TCL Ji
                                                                              to ensure that
 MTN001,
                           1,050,000           1,050,000                  0   the funds raised        Not applicable       Consistent
 22TCL Ji
                                                                              are earmarked
 GN002, 22TCL
                                                                              for special
 Ji MTN003
                                                                              purposes
 (Scientific
 innovation
 notes)
The raised funds were used for construction projects



                                                                  119
                                                                   Full Text of the Annual Report 2022 of TCL Technology Group Corporation


    □ Applicable √ Not applicable
    The Company changed the usage of above funds raised from bonds during the Reporting Period
    □ Applicable √ Not applicable

    5. Adjustments of credit ratings results during the Reporting Period
    □ Applicable √ Not applicable

    6. The implementation and changes of guarantees, debt repayment plans and other safeguard measures
    regarding debt repayment during the Reporting Period, and their impact on bond investor equity
    □ Applicable √ Not applicable

    IV. Convertible Corporate Bonds
    √ Applicable □ Not applicable

    1. Conversion price adjustments
                            Name                       Price before adjustment           Adjusted price                Start date for the adjustment
                                                               (RMB/share)                (RMB/share)
      TCL Private Convertible 2 (convertible                                 8.00                         7.88        May 19, 2021
      bond code: 124017)
      TCL Private Convertible 2 (convertible                                 7.88                         7.73        June 2, 2022
      bond code: 124017)
      TCL Private Convertible 2 (convertible                                 7.73                         4.10        July 25, 2022
      bond code: 124017)

    2. Cumulative bond-to-stock conversions
    √ Applicable □ Not applicable
                                                                                                  The proportion
                                                                                                   of converted
                  Start and                                                         Cumulative
                                    Total                          Cumulative                      shares to the                          The proportion of
Abbreviation     end date of                                                        number of                            Unconverted
                                   quantity     Total amount       amount of                        Company’s                            unconverted shares
of convertible    bond-to-                                                          converted                              shares
                                   issued       issued (RMB)       converted                        total issued                          to the total issued
    bond            stock                                                             shares                               (RMB)
                                   (bond)                         shares (RMB)                     shares before                               amount
                 conversion                                                           (share)
                                                                                                  the start date of
                                                                                                  the conversion
                 May 31,
TCL Private      2021 to
                                   26,000,000   2,600,000,000      2,166,999,871    528,536,554            3.767%                     0                         0
Convertible 2    November
                 29, 2022
    As of November 30, 2022, TCL Private Convertible 2 has been matured and delisted, as detailed in the Announcement on Honoring
    Upon Maturity and Delisting of “TCL Private Convertible 2”.
    3. Top 10 holders of convertible corporate bonds
    □ Applicable √ Not applicable

    4. Significant changes to the profitability, assets and credit standing of the guarantor
    □ Applicable √ Not applicable

    5. Liabilities and change in credit of the Company at the end of the Reporting Period, as well as future cash
    arrangements for repayment
    □ Applicable √ Not applicable



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                                                                 Full Text of the Annual Report 2022 of TCL Technology Group Corporation


V. Consolidated loss of the Reporting Period exceeding 10% of net assets of the last year-end
□ Applicable √ Not applicable

VI. Overdue Interest-bearing Debts Other Than Bonds at Period End
□ Applicable √ Not applicable

VII. Any Violation of Rules and Regulations During the Reporting Period
□ Applicable √ Not applicable

VIII. Key Accounting Data and Financial Indicators of the Company for the past two years as
at the end of the Reporting Period
                                                                                                                                Unit: RMB'0,000
                 Item                    End of the Reporting Period                December 31, 2021                       Change
 Current ratio                                                        1.09                                  1.08                          0.93%
 Debt/asset ratio                                                  63.3%                                 61.2%                            2.05%
 Quick ratio                                                          0.78                                  0.80                             -3%
                                                      2022                                  2021                            Change
 Net profit before non-
                                                                 -171,729                             1,399,924                        -112.27%
 recurring gains and losses
 Debt to EBITDA ratio                                             12.12%                                20.86%                           -8.74%
 Interest coverage ratio                                              0.92                                  4.57                        -79.89%
 Cash coverage ratio                                                  4.32                                  8.54                        -49.48%
 EBITDA coverage ratio                                                5.17                                  8.39                        -38.35%
 Debt repayment ratio                                               100%                                  100%                               0.00
 Interest payment ratio                                             100%                                  100%                               0.00
During the Reporting Period, the operating performance and profitability of the Company’s subsidiaries decreased year -on-year due to the cyclical
impact of the panel industry, resulting in large changes in the Company’s accounting data and financial indicators.




                                                                          121
      TCL Technology Group Corporation
              Auditor’s Report
                     DHSZ[2023] No. 002888




          大华会计师事务所(特殊普通合伙)

Da Hua Certified Public Accountants (Special General Partnership)
            TCL Technology Group Corporation
        Auditor’s Report and Financial Statements
        (For the period from January 1, 2022 to December 31, 2022)



                                Content                              Page

I.    Auditor’s Report                                               1-8

II.   Audited Financial Statements

      Consolidated Balance Sheet                                      1-2

      Consolidated Income Statement                                    3

      Consolidated Cash Flow Statement                                4-5

      Consolidated Statement of Changes in Shareholders’ Equity      6-7

      Balance Sheet of the Parent Company                             8-9

      Income Statement of the Parent Company                           10

      Cash Flow Statement of the Parent Company                      11-12

      Statement of Changes in Shareholder Equity of the Parent       13-14
      Company

      Notes to Financial Statements                                  15-161
                               Auditor’s Report
                                                                DHSZ [2023] No. 002888


To all Shareholders of TCL Technology Group Corporation:
    I. Opinion
     We have audited the financial statements of TCL Technology Group Corporation
(TCL TECH.), which include the balance sheets of the consolidated company and
parent company (the parent company exclusive of subsidiaries) as of December 31,
2022, the statements on income, cash flow and changes in shareholders' equity of the
consolidated company and parent company for the year then ended, as well as the notes
to financial statements.
     In our opinion, the accompanying financial statements present fairly, in all
material respects, the financial position of the consolidated company and parent
company of the Company as of December 31, 2022, and the consolidated company and
parent company operations results and cash flow for the year ended December 31, 2022
in accordance with the Accounting Standards for Business Enterprises.
    II. Basis for Opinion
     We conducted our audits in accordance with the Audit Standards for Chinese
Registered Accountants. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for Audit of Financial Statements section of
our report. We are independent of the Company in accordance with the China Code of
Ethics for Certified Public Accountants, and we have fulfilled our ethical
responsibilities in accordance with the said Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our
opinions.




                                         Page 1
    III. Key Audit Matters
     Key audit matters are those matters that, in our professional judgment, were of
most significance in our audit of the financial statements for the current period. These
matters were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
     And key audit matters identified in our audit are summarized as follows:
Revenue recognition
Please refer to the accounting policies as stated in 36. “Revenue recognition” under Note III to the
financial statements and 56. Operating revenue under Note V to the financial statements.
           Key Audit Matters                                     Audit response

                                             The important audit procedures we carried out in respect to
                                             revenue recognition include:
The Company’s revenue for the current
period was approximately RMB166.6                 understand and assesd whether the management's
billion, an increase of about RMB2.9              design and operation of key internal controls in respect
billion from the revenue of RMB163.7              to revenue recognition are effective;
billion for the previous period.
As operating revenue is one of the                understand and assess whether the management's
Company’s key operating indicators with          selection and implementation of the policies related to
the inherent risk of the management               revenue recognition complied with the Accounting
manipulating the revenue recognition              Standards for Business Enterprises;
time point for the purpose of achieving a
specific objective or expectation, and the        select samples of recorded transactions with revenue
revenue recognition for the current period        for the year and examined relevant supporting
has a material influence on the financial         documents involved during the transaction process,
statements, we have identified revenue            including outbound delivery orders, customer receipt
recognition as a key audit matter.                records, sale invoices, customs declarations, bills of
                                                  lading and fund receipt proofs;

                                                  select samples of the recorded transactions with
                                                  revenue around the balance sheet date and examined
                                                  outbound delivery orders and other supporting
                                                  documents to assess whether the revenue has been
                                                  recorded for the appropriate accounting period;

                                                  obtain the Company's sale list for the year and carried
                                                  out analytic review procedures on the operating
                                                  revenue to determine how reasonable changes in the
                                                  revenue and gross profit margin for the current period
                                                  were;

                                                  conduct confirmation procedures with key accounts
                                                  and inquired about the sales amount and the account
                                                  receivable balance incurred for the current period;

                                                  examine whether the information in connection with
                                                  revenue was duly presented and disclosed in the
                                                  financial statements.

Based on the audit work executed, we believe that the Company's recognition of revenue complies
with relevant requirements of the Accounting Standards for Business Enterprises.

                                                  Page 2
  III. Key Audit Matters (continued)
Measurement of fixed assets and construction in progress
Please refer to the accounting policies as stated in 23. "Fixed assets" and 24. "Construction in progress"
under Note III to the financial statements and 18. "Fixed assets" and 19. "Construction in progress"
under Note V to the financial statements.
          Key Audit Matters                                         Audit response
                                             The important audit procedures we carried out in respect to
                                             the measurement of fixed assets and construction in progress
                                             include:
                                                  understand and evaluate the effectiveness of the design
As of December 31, 2022, the total
                                                  of internal controls related to fixed assets and
amount of fixed assets and construction           construction in progress, and test the effectiveness of
in progress presented in the Company's            the implementation of key controls;
consolidated financial statements was             obtain a list of new assets in the current period, and
RMB184.5 billion, accounting for                  carry out a spot check of procurement contracts,
                                                  payment documents, invoices and acceptance slips for
51.26% of total assets. These fixed assets
                                                  large-value assets;
mainly include machinery and equipment            obtain the new settlement statements for construction
and buildings required for semiconductor          in the current period, examine them against the
display     products,      new      energy        amounts recorded in the books, and review the
photovoltaic products and semiconductor           accuracy and completeness of the entries;
                                                  discuss with the management and judge the accuracy of
materials. Matters such as the eligibility
                                                  the point of time when the construction in progress is
of assets for capitalization, the point of        transferred to fixed assets and the reasonableness of the
time at which construction in progress is         expected useful life of fixed assets;
transferred to fixed assets and                   inspect the construction-in-progress site when
depreciation is provisioned, and the              approaching the balance sheet date, understanding and
                                                  evaluate the progress of the work and checking it
useful life and residual value of the
                                                  against the entries in the book;
respective     fixed     assets    involve        obtain the ownership certificate of fixed assets and the
management's judgment, so we identified           company inventory sheet, and conduct on-site checks
the measurement of fixed assets and               of important assets;
                                                  obtain the statement of depreciation provision for fixed
construction in progress as key audit
                                                  assets and recalculating whether the depreciation has
matters.
                                                  been provisioned accurately;
                                                  examine that the information in connection with fixed
                                                  assets and construction in progress has been duly
                                                  presented and disclosed in the financial statements.
Based on the audit work executed, we believe that the Company measured the fixed assets and
construction in progress in accordance with relevant requirements of the Accounting Standards for
Business Enterprises.




                                                Page 3
III. Key Audit Matters (continued)
Related parties
Please refer to "X. Related parties and related transactions" in the notes to the financial statements.
         Key Audit Matters                                       Audit response
                                           The important audit procedures we carried out in respect to
                                           related transactions include:
                                                Examine and evaluate the internal controls adopted by
                                                management for identifying and disclosing the
In 2022, the Company's routine related
                                                relationships between related parties and related
transactions amounted to about RMB30.1          transactions, and review the effectiveness of the design
billion, representing an increase of about      and implementation of the internal controls;
1.25 % from the previous period.                Acquire the statements of management on the integrity
The integrity of the disclosure of related      of the relationships between related parties and related
                                                transactions, etc., as well as the list of relationships
parties and related transactions, the
                                                between related parties provided by the management,
authenticity of related transactions and        and examined this with the information acquired from
the fairness of transaction prices will         other public channels;
have an important impact on the fair            examine the customers, suppliers and other
presence of the financial statements.           stakeholders that deal with the Company to identify
                                                whether there were any omissions for the related
Therefore, we identify the related balance
                                                parties. acquire the resolutions of the board of directors
and transactions as key matters in this         and the general meeting in connection with related
audit.                                          transactions, examine the decision-making authority
                                                and procedures of the related transactions, judged the
                                                legality and compliance of the related transactions, and
                                                determine whether they had been properly authorized
                                                and approved;
                                                compared the prices for selling goods to the related
                                                parties with those of similar products sold to unrelated
                                                parties to determine the fairness of the prices of related
                                                transactions;
                                                acquired the accrued amount and balance details of
                                                related transactions, and examine the financial
                                                vouchers corresponding to the transactions and the
                                                attached contracts or orders, dispatch notes, statements,
                                                invoices and bank documents for the selected specific
                                                samples; conduct confirmation procedures for the
                                                amounts and balances of the related transactions with
                                                important related parties;
Based on audit procedures conducted, we are of the opinion that management has made reasonable
disclosure on the completeness of related party relationship, authenticity of related transactions and
faireness of consideration.




                                               Page 4
      Ⅳ. Other Information
     The Company’s management is responsible for the other information. Other
information comprises all of the information included in the Company's 2022 Annual
Report other than the financial statements and our auditor's report thereon.
     Our opinion on the financial statements does not cover other information and we
do not express any form of assurance or conclusions thereon.
     In connection with our audit on the financial statements, our responsibility is to
read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audits or otherwise appears to be materially misstated.
     If, based on the work we have performed, we conclude that there is a material
misstatement for other information, we are required to report that fact. We have nothing
to report in this regard.
      Ⅴ.      Responsibilities of Management and Those Charged with Governance
for Financial Statements
     The Company's management is responsible for the preparation of the financial
statements that provide a fair view in accordance with the Accounting Standards for
Business Enterprises, and for designing, implementing and maintaining such internal
controls as the management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or
error.
     In preparing the financial statements, the management is responsible for assessing
the Company's ability to continue as a going concern, disclosing, as applicable, matters
related to going concerns and using the going concerns as a basis of accounting unless
the management either intends to liquidate the Company or to cease operations, or have
no realistic alternative but to do so.
     Those charged with governance are responsible for overseeing the Company's
financial reporting process.
       Ⅵ. Auditor's Responsibilities for Audit of Financial Statements
     Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor's report that states our opinions. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the China Independent Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial
statements.
     As part of an audit in accordance with the China Independent Auditing Standards,
                                         Page 5
we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
    1. Identify and assess the risks of material misstatements in financial statements,
and whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinions. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the overriding of internal controls.
    2. Obtain an understanding of internal controls relevant to the audit in order to
design audit procedures that are appropriate to the circumstances.
    3. Evaluate the appropriateness of accounting policies used and determine how
reasonable accounting estimates and related disclosures made by the management are.
    4. Conclude on the appropriateness of the management's use of the going concern
assumption of accounting and, based on the audit evidence obtained, and draw a
conclusion on whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company's ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required by the China
Independent Auditing Standards to draw users' attention in our auditor's report on the
related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinions. Our conclusions are based on the audit evidence obtained up to
the date of our auditor's report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
    5. Evaluate the overall presentation, structure and content of the
financial statements and whether the financial statements represent the
underlying transactions and events in a manner that maintains fair
presentation.
    6. Obtain sufficiently appropriate audit evidence regarding the financial
information of the entities or business activities within the Company to
express an opinion on the financial statements. We are responsible for
directing, supervising and performing the Company audits and accepting
full responsibility for audit opinions.
      We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
significant audit findings, including any noteworthy deficiencies in internal
controls that we identify during our audit.
      We also provide those charged with governance with a statement that
we have complied with relevant ethical requirements regarding
independence, and communicate with them on all relationships and other
                                          Page 6
matters that may reasonably be thought to bear an impact on our
independence, and where applicable, related safeguards.
      From the matters communicated with those charged with governance,
we determined those matters that were of most significance in the audit of
the financial statements of the current period and these therefore constitute
the key audit matters. We describe these matters in our auditor's report
unless law or regulation precluded public disclosure about the matters or
when, in extremely rare circumstances, we determined that a matter should
not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interests of
such communication.




                       (There is no text below this page)




                                    Page 7
(There is no text on this page, which is used for the signature and seal of Audit Report
DHSZ [2023] No. 002888)




 Da Hua Certified Public Accountants (Special
                                                        Chinese CPA:
 General Partnership)
                                                     (Engagement Partner)         Jiang Xianmin

                Beijing China                           Chinese CPA:
                                                                                     Xiong Xin

                                                                    March 30, 2023




                                         Page 8
                                   TCL Technology Group Corporation
                                      Consolidated Balance Sheet
                                 ___________(RMB’000)_____________

                                             Note V            December 31, 2022        January 1, 2022

Current assets
   Monetary assets                             1                     35,378,501            31,393,692
   Held-for-trading financial assets           2                     12,703,507             7,601,256
    Derivative financial assets                3                        361,034                70,929
   Notes receivable                            4                        512,849               776,202
   Accounts receivable                         5                     14,051,661            18,238,782
   Receivables financing                       6                      1,103,128             2,217,639
   Prepayments                                 7                      3,593,857             2,306,325
   Other receivables                           8                      4,033,248             4,458,621
   Inventories                                 9                     18,001,122            14,083,357
   Contract assets                             10                       315,167               233,529
   Other current assets                        11                     5,438,936             5,802,960
Total current assets                                                 95,493,010            87,183,292
Non-current assets
   Debt investments                            12                       741,703                     -
   Long-term receivables                       13                       631,373               651,118
   Long-term equity investments                14                    29,256,216            25,640,578
   Investments in other equity
                                               15
instruments                                                             439,996               927,319
   Other non-current financial assets          16                     2,928,827             2,704,038
   Investment property                         17                       946,449               761,902
   Fixed assets                                18                   132,477,672           113,598,783
   Construction in progress                    19                    52,053,834            36,965,885
   Right-of-use assets                         20                     5,110,124             2,426,911
   Intangible assets                           21                    16,783,931            13,982,647
   Development costs                           22                     3,179,207             2,508,419
   Goodwill                                    23                     9,161,852             9,158,841
   Long-term deferred expenses                 24                     2,744,208             2,640,530
   Deferred income tax assets                  25                     1,753,887             2,150,423
   Other non-current assets                    26                     6,293,943             7,449,009
Total non-current assets                                            264,503,222           221,566,403
Total assets                                                        359,996,232           308,749,695

                                                                         Person-in-charge
 Legal                                Person-in-charge                   of the financial
 representative: Li Dongsheng         of financial affairs: Li Jian      department:          Peng Pan
The attached notes to the financial statements form an integral part of the financial statements.




                                                    1
                                      TCL Technology Group Corporation
                                    Consolidated Balance Sheet (Continued)
                                    ___________(RMB’000)_____________
Liabilities and shareholders' equity:            Note V          December 31, 2022       January 1, 2022
Current liabilities
   Short-term borrowings                          27                  10,215,911             9,341,427
   Borrowings from the Central Bank               28                     777,676             1,437,062
   Customer deposits and deposits from
                                                  29
other banks and financial institutions                                   603,423              666,056
   Held-for-trading financial liabilities         30                     861,912              925,035
   Derivative financial liabilities               31                      70,735               22,205
   Notes payable                                  32                   6,365,660            3,275,296
   Accounts payable                               33                  26,381,912           24,297,860
   Advances from customers                        34                       1,402                5,794
   Contract liabilities                           35                   2,336,008            2,593,882
   Employee compensation payable                  36                   2,376,933            3,311,933
   Taxes and levies payable                       37                   1,215,591            1,238,849
   Other payables                                 38                  24,190,352           19,386,888
   Non-current liabilities due within a
                                                  39
one-year period                                                       10,957,321           13,006,765
   Other current liabilities                      40                   1,185,848            1,269,887
   Total current liabilities                                          87,540,684           80,778,939
Non-current liabilities
   Long-term borrowings                           41                 118,603,165           87,279,082
   Bonds payable                                  42                  12,006,851           13,066,281
   Lease liabilities                              43                   4,461,383            1,102,072
   Long-term payables                             44                     887,763              671,344
   Long-term employee compensation
                                                  36
payable                                                                  472,538              669,931
   Deferred income                                45                   2,468,145            2,361,205
   Deferred income tax liabilities                25                   1,319,428            3,158,986
   Estimated liabilities                          46                      97,522                    -
Total non-current liabilities                                        140,316,795          108,308,901
Total liabilities                                                    227,857,479          189,087,840
   Share capital                                  47                  17,071,892           14,030,642
   Other equity instruments                       48                           -              200,334
   Capital reserves                               49                  12,522,793            6,079,267
   Less: Treasury stock                           50                   1,314,581            1,885,557
   Other comprehensive income                     51                   (811,822)            (409,447)
   Surplus reserves                               52                   3,712,273            2,550,173
   Specific reserves                              53                       2,301                1,549
   General risk reserve                           54                       8,934                8,934
   Retained earnings                              55                  19,486,730           22,465,150
Total equity attributable to shareholders of
the parent company                                                    50,678,520           43,041,045
   Non-controlling interests                                          81,460,233           76,620,810
Total shareholders’ equity                                          132,138,753          119,661,855
Total liabilities and shareholders' equity                           359,996,232          308,749,695

                                        Person-in-charge                 Person-in-charge
 Legal                                  of       financial               of the financial
 representative: Li Dongsheng           affairs:           Li Jian       department:          Peng Pan
The attached notes to the financial statements form an integral part of the financial statements.




                                                       2
                                         TCL Technology Group Corporation
                                           Consolidated Income Statement
                                       ___________(RMB’000)_____________
                                                       Note V                   2022                      2021
 I. Total revenue                                                         166,632,146               163,807,783
     Including: Operating revenue                        56               166,552,786               163,657,700
                  Interest income                        57                    79,360                   150,083
     Less: Cost of sales                                 56               151,925,489               131,156,314
           Interest expenditures                         57                    23,530                    34,936
           Taxes and levies                              58                   640,302                   647,935
           Selling expenses                              59                 1,950,528                 1,919,285
           General and administrative expenses           60                 3,540,611                 4,393,320
           R&D expenses                                  61                 8,633,638                 7,236,341
           Financial expenses                            62                 3,422,895                 3,727,915
           Including: Interest expenses                                     4,468,008                 4,125,399
                       Interest income                                        723,665                   446,450
     Add: Other income                                   63                 2,917,794                 1,967,750
           Return on investment                          64                 4,731,394                 3,904,526
           Including: Return on investment in joint
 ventures and associates                                                    2,898,739                 3,217,871
           Exchange gain                                 57                    17,914                    (1,224)
           Gain on changes in fair value                 65                 (139,244)                 (146,584)
           Credit impairment loss                        66                  (37,653)                  (92,256)
           Asset impairment loss                         67               (3,486,523)               (2,911,464)
           Asset disposal income                         68                  (79,825)                  (40,434)
     II. Operating profit                                                     419,010                17,372,050
     Add: Non-operating income                           69                   790,112                   351,980
     Less: Non-operating expenses                        70                   152,071                   140,454
     III. Gross profit                                                      1,057,051                17,583,577
           Less: Income tax expenses                     71                 (731,008)                 2,608,048
 IV. Net profit                                                             1,788,059                14,975,529
     (I) Classification by business continuity
     1. Net profit from continuing operations                               1,788,059                14,917,233
     2. Net profit from discontinued operations                                     -                    58,296
     (II) Classification by ownership
     1. Net profits attributable to the shareholders
 of the parent company                                                       261,319                 10,064,253
     2. Net profit attributable to non-controlling
 interests                                                                  1,526,740                 4,911,276
 5. Other comprehensive income, net of tax               51                 (327,034)                 (244,003)
     (I) Other comprehensive income that cannot
                                                                             (18,149)                 (286,219)
 be reclassified into profit or loss
     (II) Other comprehensive income that may
 subsequently be reclassified to profit or loss                             (308,885)                   42,216
 upon satisfaction of prescribed condition
 VI. Total comprehensive income                                             1,461,025                14,731,526
     Total comprehensive income attributable to
 the shareholders of the parent company                                     (141,056)                 9,800,380
     Total comprehensive income attributable to
 non-controlling interests                                                  1,602,081                 4,931,146
 VII. Earnings per share                                 72
     (I) Basic earnings per share (RMB
 yuan/share)                                                                  0.0191                    0.7468
     (II) Diluted earnings per share (RMB
 yuan/share)                                                                  0.0185                    0.7359

                                         Person-in-                             Person-in-
                                         charge                                 charge of the
 Legal                                   of       financial                     accounting
 representative: Li Dongsheng            affairs:            Li Jian            department:          Peng Pan
The attached notes to the financial statements form an integral part of the financial statements.




                                                              3
                                        TCL Technology Group Corporation
                                         Consolidated Cash Flow Statement
                                      ___________(RMB’000)_____________

                                                                        Note V             2022             2021
 I.    Cash flow from operating activities:
       Proceeds from sale of commodities and rendering of services                137,297,835      140,078,647
       Net increase/(decrease) in customer deposits and deposits
                                                                                      (62,633)      (2,184,083)
              from other banks and financial institutions
       Net increase/(decrease) in borrowings from central bank                      (659,386)           967,228
       Interest, fees and commissions received                                         79,360           150,083
       Tax and levy rebates                                                        11,020,947         7,001,327
       Cash generated from other operating activities                     73        7,955,973         7,013,673

       Sub-total of cash generated from operating activities                      155,632,096      153,026,875

       Payments for commodities and services                                     (113,465,399)    (100,881,893)
       Net (increase)/decrease in loans and advances to customers                      558,603        1,085,486
       Net (increase)/decrease in deposits in central bank and other
                                                                                       36,327         (148,200)
              banks and financial institutions
       Cash paid to and for employees                                             (10,696,682)      (8,145,698)
       Taxes and levies paid                                                       (3,916,226)      (4,211,870)
       Cash used in other operating activities                            74       (9,722,343)      (7,846,247)

       Sub-total of cash used in operating activities                            (137,205,720)    (120,148,422)

       Net cash generated from operating activities                       79       18,426,376       32,878,453

 II. Cash flow generated from investing activities:
        Proceeds from disinvestments                                               48,642,124       40,260,161
        Proceeds from return on investments                                         1,100,618        2,125,675
        Net proceeds from disposal of fixed assets, intangible assets
                                                                                       85,502          188,900
           and other long-term assets
        Net proceeds from disposal of subsidiaries and other business
                                                                          79         1,432,795        1,164,590
               units
        Cash generated from other investing activities                    75          170,387           33,083

       Sub-total of cash generated from investment activities                      51,431,426       43,772,409

       Payments for the acquisition and construction of fixed assets,
                                                                                  (40,762,787)     (30,855,133)
         intangible assets and other long-term assets
       Payments for investments                                                   (56,242,405)     (41,931,051)
       Net payments for acquiring subsidiaries and other business
                                                                          79          (50,133)      (4,139,505)
         units
       Cash used in other investing activities                            76       (1,212,074)        (479,761)

       Subtotal of cash used in investing activities                              (98,267,399)     (77,405,450)
       Net cash used in investing activities                                      (46,835,973)     (33,633,041)

                                        Person-in-charge                   Person-in-charge
 Legal                                  of financial                       of the financial
 representative:     Li Dongsheng affairs:                    Li Jian      department:            Peng Pan
The attached notes to the financial statements form an integral part of the financial statements.




                                                                4
                                  TCL Technology Group Corporation
                              Consolidated Cash Flow Statement (Continued)
                                ___________(RMB’000)_____________

                                                              Note V           2022                2021

III. Cash flow generated from financing activities:
       Capital contributions received                                   17,981,473          19,804,515
       Including: Capital contributions by non-controlling
                                                                         8,509,514          19,804,515
             interests to subsidiaries
       Borrowings raised                                                87,581,519          52,186,527
       Net cash received from bonds issue                                7,820,000           3,686,905
       Cash generated from other financing activities          77          272,281             256,271

      Sub-total of cash generated from financing activities            113,655,273          75,934,218

     Cash paid for debt repayment                                      (66,503,750)        (49,819,646)
     Cash paid for dividend and profit distribution or
                                                                        (9,640,363)         (7,296,551)
           repayment of interests
      Including: Dividends and profit paid by
                                                                        (1,691,435)           (362,852)
  subsidiaries to minority shareholders
     Cash used in other financing activities                   78       (6,110,504)         (6,035,517)

      Subtotal of cash used in financing activities                    (82,254,617)        (63,151,714)

      Net cash generated from financing activities                      31,400,656          12,782,504

IV. Effect of exchange rate changes on cash and cash
                                                                           602,860            (154,628)
equivalents

V. Net increase in cash and cash equivalents                             3,593,919          11,873,288

Add: Opening balance of cash and cash equivalents                       30,081,705          18,208,417

VI. Closing balance of cash and cash equivalents               79       33,675,624          30,081,705




                                                                          Person-in-
                                        Person-in-charge                  charge of the
 Legal                                  of       financial                financial
 representative:    Li Dongsheng        affairs:           Li Jian        department:       Peng Pan
The attached notes to the financial statements form an integral part of the financial statements.



                                                        5
                                                                                     TCL Technology Group Corporation
                                                                          Consolidated Statement of Changes in Shareholders’ Equity
                                                                                                ___________(RMB’000)_____________

                                                                                                                                       2022
                                                                                         Equity attributable to shareholders of the parent company
                                                                                                                                                                 Appropriation
                                                              Other                                                                     Other                                                                 Non-       Shareholder
                                           Share                              Capital           Treasury         Special                              Surplus               to    Undistributed
                                                             equity                                                             comprehensive                                                           controlling        equity
                                          capital                            reserves              stock        Reserves                             reserves     general risk           profit
                                                        instruments                                                                   income                                                              interests         Total
                                                                                                                                                                      reserve
 I. Balance at the end of the prior
 year                                  14,030,642           200,334         6,079,267         (1,885,557)          1,549              (409,447)      2,550,173           8,934       22,458,340         76,611,057       119,645,292
 Add: Change in accounting policy               -                 -                 -                   -              -                      -              -               -            6,809              9,753            16,562
 II. Balance at the beginning of the
 period                                14,030,642           200,334         6,079,267         (1,885,557)          1,549              (409,447)      2,550,173           8,934       22,465,149         76,620,810       119,661,854
 III. Movement of the period            3,041,250         (200,334)         6,443,526             570,976            752              (402,375)      1,162,100               -       (2,978,420)         4,839,423        12,476,897
 (I) Comprehensive income                       -                 -                 -                   -              -              (415,837)              -               -           261,319         1,602,081         1,447,564
 (II) Capital contributed and
 reduced by shareholders                3,041,250         (200,334)         7,822,900            570,976                  -                   -              -               -                      -    8,109,948        19,344,740
 1.     Capital      increased by
 shareholders                           3,041,250                  -        6,668,566                   -                 -                   -              -               -                      -    8,109,948        17,819,764
 2. Share-based payments included
 in owners' equity                              -                  -           26,559             76,664                  -                   -              -               -                      -             -          103,223
 3. Amount of bond issuance
 included in owners' equity                               (200,334)         1,127,775             997,083              -                      -              -               -                 -                  -         1,924,524
 4. Others                                      -                 -                 -           (502,771)              -                      -              -               -                 -                  -         (502,771)
 (III) Profit distribution                      -                 -                 -                   -            752                      -      1,162,100               -       (3,212,103)        (2,962,104)       (5,011,355)
 1. Appropriation of surplus
 reserves                                       -                  -                 -                  -                 -                   -      1,162,100               -       (1,162,100)          (381,108)        (381,108)
 2. Appropriation of general risk
 reserve                                        -                  -                 -                  -            752                      -              -               -                 -                  -               752
 3. Appropriation to shareholders               -                  -                 -                  -              -                      -              -               -       (2,050,003)        (2,580,996)       (4,630,999)
 4. Others                                      -                  -                 -                  -              -                      -              -               -                 -                  -                 -
 (IV) Transfers within owners’
 equity                                         -                  -                 -                  -                 -             13,461               -               -             (13,461)               -                 -
 1. Other comprehensive income
 transferred into retained earnings             -                  -                 -                  -                 -             13,461               -               -             (13,461)               -                 -
 (V) Others                                     -                  -       (1,379,374)                  -                 -                  -               -               -             (14,174)     (1,910,502)       (3,304,050)
 IV. Balance at the end of the
 period                                17,071,892                  -       12,522,793         (1,314,581)          2,301              (811,822)      3,712,273           8,934       19,486,730         81,460,233       132,138,753

                                                                                                                                                                 Person-in-charge     of      the
 Legal representative:                       Li Dongsheng                        Person-in-charge of financial affairs:                  Li Jian                 financial department:                        Peng Pan
The attached notes to the financial statements form an integral part of the financial statements.




                                                                                                                     6
                                                                                       TCL Technology Group Corporation
                                                                      Consolidated Statement of Changes in Shareholders’ Equity (Continued)
                                                                                     ___________(RMB’000)_____________

                                                                                                                                                          2021
                                                                                                          Equity attributable to shareholders of the parent company
                                                                                                                                                                                                 Appropriation                                         Shareholder
                                                                       Other                                                                             Other                                                                   Non-controlling
                                                  Share                                                        T reasury          Special                                                                   to   Undistributed                              equity
                                                                      equity       Capital reserves                                               comprehensive           Surplus reserves                                             interests
                                                 capital                                                           stock         Reserves                                                         general risk          profit                               T otal
                                                                 instruments                                                                           income
                                                                                                                                                                                                      reserve

I. Balance at the end of the prior year        14,030,788 -        230,241     -        5,442,385     -     (1,913,029)               211              (145,573)      -        2,452,892     -            386      14,009,494       55,949,272     -   90,057,067

Add: Change in accounting policy                           - -            -    -                 -    -                 -                -                      -     -                  -   -               -               -                -    -             -

II. Balance at the beginning of the period     14,030,788 -        230,241     -        5,442,385     -     (1,913,029)               211              (145,573)      -        2,452,892     -            386      14,009,494       55,949,272     -   90,057,067

III. Movement of the period                         (146) -        (29,907)    -          636,882     -          27,472            1,338               (263,874)      -           97,281     -          8,548       8,455,655       20,671,538     -   29,604,787

(I) Comprehensive income                                   - -            -    -                 -    -                 -                -             (141,053)      -                  -   -               -    10,064,253         4,931,148     -   14,854,348
(II) Capital contributed and reduced by
shareholders                                        (146) -        (29,907)    -          636,882     -          27,472                  -                      -     -                  -   -               -               -      16,271,882     -   16,906,183

1. Capital increased by shareholders                       - -            -    -                 -    -                 -                -                      -     -                  -   -               -               -      18,150,004     -   18,150,004
2. Capital contributed by holders of other
equity instruments                                         - -     (29,907)    -           75,461     -         537,972                  -                      -     -                  -   -               -               -                -    -      583,526
3. Share-based payments included in owners'
equity                                              (146) -               -    -            2,823     -         118,559                  -                      -     -                  -   -               -               -                -    -       121,236
4. Others                                               -                 -               558,598             (629,059)                  -                      -                        -                   -               -      (1,878,122)        (1,948,583)

(III) Profit distribution                                  - -            -    -                 -    -                 -          1,338                        -     -           97,831     -          8,548     (1,731,969)        (531,492)     -   (2,155,744)

1. Appropriation of surplus reserves                       - -            -    -                 -    -                 -                -                      -     -           97,831     -               -       (97,831)                 -    -             -

2. Appropriation of general risk reserve                   - -            -    -                 -    -                 -          1,338                        -     -                  -   -          8,548         (8,548)                 -    -        1,338

3. Appropriation to shareholders                           - -            -    -                 -    -                 -                -                      -     -                  -   -               -    (1,625,590)        (287,220)     -   (1,912,810)

4. Others                                                  - -            -    -                 -    -                 -                -                      -     -                  -   -               -               -       (244,272)     -    (244,272)

(IV) T ransfers within owners’ equity                     - -            -    -                 -    -                 -                -             (122,821)      -             (550)    -               -       123,371                  -    -             -
1. Other comprehensive income transferred to
retained earnings                                          - -            -    -                 -    -                 -                -             (122,821)      -             (550)    -               -       123,371                  -    -             -

IV. Balance at the end of the period           14,030,642 -        200,334     -        6,079,267     -     (1,885,557)            1,549               (409,447)      -        2,550,173     -          8,934      22,465,149       76,620,810     -   119,661,854


Legal                                                  Person-in-charge           of                                                                                                     Person-in-charge of the
representative:                Li Dongsheng            financial affairs:                      Li Jian                                                                                   financial department:                             Peng Pan
 The attached notes to the financial statements form an integral part of the financial statements.




                                                                                                                                  7
                                   TCL Technology Group Corporation
                                     Balance Sheet of the Company
                                 ___________(RMB’000)_____________

assets                                      Note XV              December 31, 2022           January 1, 2022
Current assets
  Monetary assets                                                         17,821,922             10,467,962
  Held-for-trading       financial
  assets                                                                   5,936,208              4,372,557
  Derivative financial assets                                                 15,578                      -
   Accounts receivable                         1                             353,812                 93,566
  Prepayments                                                                  3,693                 47,333
  Other receivables                            2                           4,961,948             13,819,512
  Inventories                                                                  5,380                 41,029
  Other current assets                                                        34,838                 15,011

Total current assets                                                      29,133,379             28,856,970

Non-current assets
   Long-term receivables                                                   1,935,365                      -
   Long-term equity investments                3                          76,360,371             71,303,126
   Investments in other equity
                                               4
instruments                                                                   5,000                     5,000
   Other non-current financial
                                               5
assets                                                                      431,023                  1,051,536
   Investment property                                                       81,034                     84,795
   Fixed assets                                                              32,223                     37,402
   Construction in progress                                                       -                      1,360
   Right-of-use assets                                                      428,575                    452,398
   Intangible assets                                                        109,605                     93,324
   Long-term deferred expenses                                               24,069                     26,079
   Deferred income tax assets                                                     7                         12

Total non-current assets                                                  79,407,272             73,055,032

Total assets                                                             108,540,651            101,912,002




                                                                            Person-in-
                                                                            charge of
                                        Person-in-charge                    the
  Legal                                 of financial                        financial
  representative:      Li Dongsheng     affairs:               Li Jian      department:       Peng Pan

 The attached notes to the financial statements form an integral part of the financial statements.




                                                      8
                                      TCL Technology Group Corporation
                                Balance Sheet of the Parent Company (Continued)
                                    ___________(RMB’000)_____________

                                                                    December 31,
Liabilities and shareholders' equity:             Note XV                                January 1, 2022
                                                                           2022

Current liabilities
  Short-term borrowings                                                 1,900,169             1,250,989
  Accounts payable                                                        140,563               141,877
  Contract liabilities                                                        308                23,823
  Employee compensation payable                                           178,097               294,653
  Taxes and levies payable                                                 63,908                13,076
  Other payables                                                       22,036,683            38,597,139
  Non-current liabilities due within a
  one-year period                                                       5,605,919             4,843,348
  Other current liabilities                                                 2,430                 4,284

Total current liabilities                                              29,928,077            45,169,189

Non-current liabilities
 Long-term borrowings                                                  15,280,955            12,898,000
 Bonds payable                                                          9,922,133            11,159,524
 Lease liabilities                                                            748                13,365
 Long-term employee compensation
 payable                                                                   84,188               108,384
 Deferred income                                                           53,638                60,198

Total non-current liabilities                                          25,341,662            24,239,471

Total liabilities                                                      55,269,739            69,408,660

  Share capital                                                        17,071,892            14,030,642
  Other equity instruments                                                      -               200,334
  Capital reserves                                                     17,715,533             9,900,679
  Less: Treasury stock                                                  1,314,581             1,885,557
  Other comprehensive income                                            (128,195)             (112,194)
  Surplus reserves                                                      3,510,209             2,348,109
  Retained earnings                                                    16,416,054             8,021,329

Total shareholders’ equity                                            53,270,912            32,503,342

Total liabilities and shareholders' equity                            108,540,651           101,912,002


                                                                            Person-in-
                                                                              charge of
                                        Person-in-                                  the
                                        charge                                 financial
 Legal                                  of financial                       department
 representative:     Li Dongsheng affairs:                   Li Jian                   :     Peng Pan
The attached notes to the financial statements form an integral part of the financial statements.

                                                      9
                                 TCL Technology Group Corporation
                                  Income Statement of the Company
                                ___________(RMB’000)_____________

                                                           Note XV               2022                   2021

I. Operating revenue                                         6              1,593,213               1,490,937
Less: Cost of sales                                          6              1,162,807               1,111,439
     Taxes and levies                                                          14,531                  15,832
     Selling expenses                                                          54,059                  35,458
     General and administrative expenses                                      323,594                 550,668
     R&D expenses                                                             171,276                 171,151
     Financial expenses                                                     1,282,688               1,824,650
     Including: Interest expenses                                           2,252,721               2,441,346
             Interest income                                                  771,483                 685,498
Add: Other income                                                               8,705                   2,057
     Return on investment                                    7             12,483,556               3,005,570
     Including: Share of profit or loss of joint
ventures and associates                                      7              1,308,061               1,406,116
     Gain on changes in fair value                                           (24,134)                  26,134
     Credit impairment loss                                                     (266)                   (187)
     Asset disposal income                                                      1,540                      36

II. Operating profit                                                       11,053,659                815,349
Add: Non-operating income                                                     575,077                223,830
Less: Non-operating expenses                                                    7,737                 60,875

III. Gross profit                                                          11,620,999                978,304
Less: Income tax expenses                                                           -                      -

IV. Net profit                                                             11,620,999                978,304

V. Other comprehensive income                                                (16,001)               (259,693)

VI. Total comprehensive income                                             11,604,998                718,611




                                       Person-in-                          Person-in-
                                       charge                              charge of the
 Legal                                 of financial                        financial
 representative:     Li Dongsheng      affairs:                  Li Jian   department:        Peng Pan

The attached notes to the financial statements form an integral part of the financial statements.




                                                      10
                                   TCL Technology Group Corporation
                                  Cash Flow Statement of the Company
                                 ___________(RMB’000)_____________

                                                        Note
                                                        XV               2022                    2021

 I. Cash flow from operating activities:

       Proceeds from sale of commodities and
            rendering of services                                   1,357,318               1,286,514
       Tax and levy rebates                                             1,781                       -
       Cash generated from other operating
            activities                                              1,029,029              30,834,436

       Sub-total of cash generated from operating
            activities                                              2,388,128              32,120,950

       Payments for commodities and services                      (1,054,192)             (1,002,839)
       Cash paid to and for employees                               (215,412)               (162,489)
       Taxes and levies paid                                        (205,575)               (196,647)
       Cash used in other operating activities                   (12,757,279)             (3,099,415)

       Sub-total of cash used in operating
            activities                                           (14,232,458)             (4,461,390)

       Net cash generated from operating
                                                            8
           activities                                            (11,844,330)              27,659,560

 II. Cash flow from investing activities:
       Proceeds from disinvestments                               14,882,100               27,292,959
       Proceeds from return on investments                        10,461,727                2,384,221
       Net proceeds from disposal of fixed assets,
             intangible assets and other long-term                         24                        -
             assets

       Sub-total of cash generated             from
            investment activities                                 25,343,851               29,677,180

       Payments for the acquisition and
            construction of fixed assets,
                                                                     (39,001)                 (69,121)
            intangible assets and other long-term
            assets
       Payments for investments                                  (17,545,211)            (35,551,461)
       Cash used in other investing activities                              -                       -

       Subtotal of cash used in investing activities             (17,584,212)            (35,620,582)

       Net cash used in investing activities                        7,759,639             (5,943,402)



                                        Person-in-                       Person-in-
                                        charge                           charge of the
 Legal                                  of financial                     financial
 representative:    Li Dongsheng        affairs:            Li Jian      department:          Peng Pan
The attached notes to the financial statements form an integral part of the financial statements.


                                                       11
                                 TCL Technology Group Corporation
                           Cash Flow Statement of the Company (Continued)
                               ___________(RMB’000)_____________

                                                       Note XV                   2022                   2021

III. Cash flow generated from financing activities:

      Capital contributions received                                         9,471,959                   -
      Borrowings raised                                                    23,388,555           11,900,000
      Net cash received from bonds issue                                    7,820,000            3,686,905
      Cash generated from other financing
           activities                                                         991,657                       -

      Sub-total of cash generated from financing
      activities                                                           41,672,171           15,586,905

      Cash paid for debt repayment                                        (26,733,600)         (25,430,014)
      Cash paid for distribution of dividends and                                               (2,971,569)
           profits or payment of interests                                 (3,195,747)
      Cash used in other financing activities                                (562,962)              (642,381)

      Subtotal of cash used in financing activities                       (30,492,309)         (29,043,964)

      Net cash generated from financing activities                         11,179,862          (13,457,059)

IV. Effect of exchange rate changes on cash and
cash equivalents                                                               73,720                (54,006)

V. Net increase in cash and cash equivalents                                7,168,891               8,205,093
Add: Opening balance of cash and cash
                                                                                                    2,196,283
equivalents                                                                10,401,379

VI. Closing balance of cash and cash equivalents            9              17,570,270           10,401,376




                                        Person-in-                           Person-in-
                                        charge                               charge of the
 Legal                                  of financial                         financial
 representative:     Li Dongsheng       affairs:                Li Jian      department:      Peng Pan

The attached notes to the financial statements form an integral part of the financial statements.




                                                       12
                                                                       TCL Technology Group Corporation
                                                          Statement of Changes in Shareholders’ Equity of the Company
                                                                                   ___________(RMB’000)_____________

                                                                                                             2022
                                                                                                                       Other                                                          Total
                                                            Other equity        Capital           Treasury     comprehensive           Surplus                                shareholders’
                                          Share capital     instruments       reserves               stock           income           reserves    Retained earnings                  equity
I. Balance at the end of the prior year    14,030,642           200,334     9,900,679          (1,885,557)         (112,194)        2,348,109            8,021,329              32,503,342
Add: Change in accounting policy                      -                -              -                  -                 -                                      -                       -
II. Balance at the beginning of the
period                                     14,030,642           200,334     9,900,679          (1,885,557)          (112,194)       2,348,109              8,021,329            32,503,342
III. Movement of the period                 3,041,249         (200,334)     7,810,865              570,976           (16,001)       1,162,100              8,394,725            20,763,581
(I) Comprehensive income                            -                 -             -                    -           (16,001)               -             11,620,999            11,604,998
(II) Capital contributed and reduced
by shareholders                             3,041,249         (200,334)     7,823,531             570,976                   -                -                     -            11,235,423
1. Capital contributed by owners            3,041,249                 -     6,668,566                   -                   -                -                     -             9,709,816
2. Capital contributed by holders of
other equity instruments                             -                 -             -                   -                  -                -                     -                      -
3. Share-based payments included in
owners' equity                                       -                 -       27,190              76,664                   -                -                     -               103,854
4. Amount of bond issue included in
owners' equity                                                (200,334)     1,127,775              997,083                  -               -                    -               1,924,524
5. Others                                           -                 -             -            (502,771)                  -               -                    -               (502,771)
(III) Profit distribution                           -                 -      (12,666)                    -                  -       1,162,100          (3,212,103)             (2,062,669)
1. Appropriation of surplus reserves                -                 -             -                    -                  -       1,162,100          (1,162,100)                       -
2. Appropriation to shareholders                    -                 -             -                    -                  -               -          (2,050,003)             (2,050,003)
3. Others                                           -                 -      (12,666)                    -                  -               -                    -                (12,666)
(IV) Others                                         -                 -         3,989                    -                  -               -             (14,171)                (10,182)
IV. Balance at the end of the period       17,071,891                 -    17,715,533          (1,314,581)          (128,195)       3,510,209           16,416,054              53,270,912


Legal                                                 Person-in-charge of                                                       Person-in-charge of the
representative:              Li Dongsheng             financial affairs:                       Li Jian                          financial department:              Peng Pan
 The attached notes to the financial statements form an integral part of the financial statements.




                                                                                          13
                                                                          TCL Technology Group Corporation
                                                         Statement of Changes in Shareholder Equity of the Company (Continued)
                                                                        ___________(RMB’000)_____________

                                                                                                               2021
                                                                                                                            Other                                                      Total
                                                             Other equity         Capital          Treasury         comprehensive            Surplus                           shareholders’
                                         Share capital       instruments        reserves              stock               income            reserves     Retained earnings            equity
 I. Balance at the end of the prior
 year                                     14,030,788             230,241      9,846,835          (1,913,029)             141,998           2,250,828           8,771,394         33,359,055
 Add: Change in accounting policy                  -                   -              -                    -                   -                   -                   -                  -
 II. Balance at the beginning of the
 period                                   14,030,788             230,241      9,846,835          (1,913,029)             141,998           2,250,828           8,771,394         33,359,055
 III. Movement of the
 period                                         (146)           (29,907)         53,844              27,472             (254,192)            97,281             (750,065)         (855,713)
 (I) Comprehensive income                           -                  -              -                   -             (259,690)                 -               978,304           718,614
 (II) Capital contributed and
 reduced by shareholders                        (146)           (29,907)         53,844              27,472                     -                  -                    -            51,263
 1. Capital contributed by owners                   -                  -              -                   -                     -                  -                    -                 -
 2. Capital contributed by holders
 of other equity instruments                        -           (29,907)         75,461             537,972                     -                  -                    -           583,526
 3. Share-based payments included
 in owners' equity                              (146)                   -       (3,278)             118,560                     -                 -                                 115,136
 4. Others                                          -                   -      (18,339)           (629,060)                     -                 -                               (647,399)
 (III) Profit distribution                          -                   -             -                   -                     -            97,831           (1,723,421)       (1,625,590)
 1. Appropriation of surplus
 reserves                                           -                   -              -                   -                    -            97,831              (97,831)                 -
                                                                                                                                                                                 (1,625,590
 2. Appropriation to shareholders                   -                   -              -                   -                    -                  -          (1,625,590)                 )
 3. Others                                          -                   -              -                   -                    -                  -                    -                 -
 (IV) Transfers within owners’
 equity                                             -                   -              -                   -                5,498              (550)              (4,948)                  -
 1. Other comprehensive income
 transferred into retained earnings                -                   -              -                    -                5,498              (550)              (4,948)                 -
 IV. Balance at the end of the period     14,030,642             200,334      9,900,679          (1,885,557)            (112,194)          2,348,109           8,021,329         32,503,342



 Legal                                                          Person-in-charge of                                                 Person-in-charge of the
 representative:                        Li Dongsheng            financial affairs:                        Li Jian                   financial department:           Peng Pan

The attached notes to the financial statements form an integral part of the financial statements.




                                                                                            14
                             TCL Technology Group Corporation
                                 Notes to Financial Statements
                     For the period from January 1 to December 31, 2022
                           ___________(RMB’000)_____________

I     General information

(I)   Place of incorporation and organizational structure
       TCL Technology Group Corporation (hereinafter referred to as the “Company”) is a limited liability
       company incorporated in the People's Republic of China (hereinafter referred to as "China") on July
       17, 1997 under the Corporate Law of the People's Republic of China (hereinafter referred to as
       “Corporate Law”). As per the approval documents of YBH [2002] No. 94 and YFH [2002] No. 134
       issued by the People’s Government of Guangdong Province, and YJMH [2002] No. 112 and YJMH
       [2002] No. 184 issued by the Economic and Trade Commission of Guangdong Province, the Company
       was changed to a joint stock limited company with a registered capital of RMB1,591,935,200, which
       was approved by Guangdong Province Administration for Industry and Commerce on April 19, 2002.
       The registration number is 4400001009990.

       Upon approval of ZJFXZ [2004] Document No. 1 issued by the China Securities Regulatory
       Commission (CSRC) on January 2, 2004, the Company was permitted to issue 590,000,000 shares to
       the public on January 7, 2004 and 404,395,944 ordinary shares denominated in RMB (A shares) to all
       public shareholders of TCL Communication Equipment Co., Ltd. (hereinafter referred to as " TCL
       Communication Equipment") in a stock-for-stock deal, which were listed on the Shenzhen Stock
       Exchange on January 30, 2004. The shares issued to the public were all priced online, with a par value
       of RMB1 and an issue price of RMB4.26 per share, raising a total of RMB2,513,400,000. Upon the
       completion of this deal, the registered capital of the Company increased to RMB2,586,331,144, and
       on July 16, 2004, the Company was approved by the Guangdong Province Administration for Industry
       and Commerce to change its business license to Business License QGYZZ No. 003362. Upon the
       completion of the shareholder structure reform and the expiration of the share lockup period, the
       foreign shareholding ratio in the Company was less than 10%. On September 11, 2007, the Company
       was approved by Guangdong Province Administration for Industry and Commerce to change its
       business license to Business License No. 440000000011990.

       Upon the approval of the CSRC on January 7, 2009 with the ZJXK [2009] Document No. 12, the
       Company privately placed 350,600,000 ordinary shares denominated in RMB (A shares) to designated
       investors on April 23, 2009, with a par value of RMB1 and an issue price of RMB2.58 per share,
       raising a total of RMB904,548,000. Upon the completion of the issue, the registered capital of the
       Company increased from RMB2,586,331,144 to RMB2,936,931,144, and on June 2, 2009, the
       Company was approved by Guangdong Province Administration for Industry and Commerce to
       change its business license to Business License No. 440000000011990.

       Upon the approval of the CSRC on May 27, 2010 with the ZJXK [2010] Document No. 719, the
       Company privately placed 1,301,178,273 ordinary shares denominated in RMB (A shares) to
       designated investors on July 26, 2010, with a par value of RMB1 and an issue price of RMB3.46 per
       share, raising a total of RMB4,502,076,824.58. Upon the completion of this deal, the registered capital
       of the Company increased from RMB2,936,931,144 to RMB4,238,109,417, and on September 19,
       2010, the Company was approved by Guangdong Province Administration for Industry and
       Commerce to change its business license to Business License No. 440000000011990.

       On May 19, 2011, the Company carried out a bonus issue of 10 additional shares for every 10 shares
       to all the shareholders with capital reserves, representing a total of 4,238,109,417 new shares, with a
       par value of RMB1 per share. Upon the completion of this bonus issue, the registered capital of the
       Company increased from RMB4,238,109,417 to RMB8,476,218,834, and on June 27, 2011, the
       Company was approved by Huizhou Administration for Industry and Commerce to change its
       business license to Business License No. 440000000011990.

       During the years of 2013 and 2014, the exercise of 58,870,080 stock options increased the total share
       capital of the Company from 8,476,218,834 shares to 8,535,088,914 shares.

                                               15
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

I     General information (continued)

(I)   I Place of incorporation and organizational structure (continued)
      Upon the approval of the CSRC on February 13, 2014 with the[2014] Document No. 201,
      the Company privately placed 917,324,357 ordinary shares denominated in RMB (A shares) to
      designated investors on April 30, 2014, with a par value of RMB1 and an issue price of
      RMB2.18 per share, raising a total of RMB1,999,767,098.26. Upon the completion of this deal,
      the registered capital of the Company increased from RMB8,535,088,914 to
      RMB9,452,413,271, and on June 10, 2014, the Company was approved by Huizhou
      Administration for Industry and Commerce to change its business license to Business License
      No. 440000000011990.

      In 2015, 48,357,920 stock options were exercised under an incentive plan of the Company, and
      upon approval by the CSRC on January 28, 2015 with the ZJXK [2015] Document No.151, the
      Company issued 2,727,588,511 shares in a private placement. As such, the total share capital of
      the Company increased from 9,452,413,271 shares to 12,228,359,702 shares.

      In 2016, 923,340 stock options were exercised under an incentive plan of the Company, and the
      share capital of the Company increased from 12,228,359,702 shares to 12,229,283,042 shares.
      Later, 15,601,300 shares were repurchased and retired, and the share capital of the Company
      decreased from 12,229,283,042 shares to 12,213,681,742 shares. On April 26, 2016, the
      Company was approved by Huizhou Administration for Industry and Commerce to change its
      business license to Business License No. 91441300195971850Y (unified social credit code).

      In 2017, the Company purchased an interest in subsidiary TCL China Star Optoelectronics
      Technology Co., Ltd. by means of a new issue of 1,301,290,321 shares. Upon the completion
      of this deal, the total share capital of the Company increased from 12,213,681,742 shares to
      13,514,972,063 shares.

      In 2018, the Proposal on the Grant of Restricted Stock to Awardees was approved at the 7th
      Meeting of the 6th Board of Directors, and a total of 34,676,444 shares were subscribed for
      under the restricted stock incentive plan. Upon the completion of this deal, the total share capital
      of the Company increased from 13,514,972,063 shares to 13,549,648,507 shares.

      In 2019, the Company repurchased and retired 21,209,788 restricted shares that had been
      granted to certain awardees under the 2018 Restricted Stock Incentive Plan & Global Innovation
      Partner Plan but were still in lockup. As such, the total share capital of the Company decreased
      from 13,549,648,507 to 13,528,438,719 shares.

      In 2020, the Proposal on the Intended Change of the Company’s Full Name and Stock Name
      were approved respectively at the 23rd Meeting of the 6th Board of Directors and the First
      Extraordinary General Meeting of 2020. The name of the Company was then changed from
      “TCL Corporation” to “TCL Technology Group Corporation” (abbreviation from “TCL
      CORP.” to “TCL TECH.”)since February 7, 2020, with the stock name changed from “TCL
      CORP.” to “TCL TECH.”, while the stock code “000100” remained unchanged.
      In July 2020, the Company repurchased and retired 9,159,308 restricted shares that had been
      granted under the 2018 and 2019 Restricted Stock Incentive Plans but were still in lockup. As
      such, the total share capital of the Company decreased from 13,528,438,719 to 13,519,279,411
      shares.
      In October 2020, the Company issued 511,508,951 new shares to acquire the non-controlling
      interest in subsidiary Wuhan China Star Optoelectronics Technology Co., Ltd. Upon the
      completion of this deal, the total share capital of the Company increased from 13,519,279,411
      shares to 14,030,788,362 shares.



                                                   16
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________

I. General information (continued)

        In September 2021, the Company repurchased and retired 145,941 restricted shares that had
        been granted under the 2019 Restricted Stock Incentive Plans but were still locked up. As
        such, the total share capital of the Company decreased from 14,030,788,362 to
        14,030,642,421 shares.

        During 2022, investors of TCL Directional II Convertible bonds exercised their rights of
        conversion resulting in additional issue of 235,120,702 shares, and the total share capital of
        the Company increased from 14,030,642,421 shares to 14,265,763,123 shares.

        In December 2022, the Company issued 2,806,128,484 ordinary shares denominated in
        RMB to specific investors in a non-public offering with the approval of the ZJXK [2022]
        No. 1658 issued by the China Securities Regulatory Commission, resulting in an increase
        of 2,806,128,484 shares in total share capital of the Company to 17,071,891,607 shares
        from 14,265,763,123 shares.

        As of December 31, 2022, the total issued share capital of the Company was 17,071,891,607
        shares. See note V. 46 for details.

        The registered address of the Company is: TCL Tech Building, 17 Huifeng Third Road,
        Zhongkai Hi-Tech Development District, Huizhou City, Guangdong Province.

(II)    Scope of business

        The Company and its subsidiaries (collectively referred to as the “Company”) are primarily
        engaged in the research, development, production and sales of semi-conductors, electronic
        products and communication devices, new optoelectronic products, liquid crystal display
        devices, import and export of goods and technologies (excluding goods and technologies
        that are prohibited from import and export or require an administrative approval for import
        and export), venture capital business and venture capital consultation, entrepreneurial
        management services for start-up enterprises, participation in the initiation of venture
        capital institutions and investment management advisory institutions, immovable property
        leasing, IT services, conference services, computer technical services and development
        service of electronic products and technologies, development and sale of software, patent
        transfer, customs clearance services, consulting services, payments and settlements (where
        any approval from any relevant department is required according to law, it must be obtained
        before carrying out the relevant operations activities).
(III)    Authorization of financial statements for issue




                                                  17
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________

       These financial statements were authorized for issue by the Company’s Board of Directors
       on March 30, 2023.

II Scope of consolidated financial statements

       As at the end of the Reporting Period, for subsidiaries included in the consolidated financial
       statements, please refer to Note VII, 1, (1) "Breakdown of important subsidiaries". For the
       changes to the scope of the consolidated financial statements of the Reporting Period, see
       Note VI.

III Significant accounting policies and accounting estimates
1 Basis for the preparation of financial statements

       The preparation of financial statements of the Company is based on the actual transactions
       and events in accordance with the "Accounting Standards for Business Enterprises - Basic
       Standards" published by the Ministry of Finance and specific corporate accountin g
       standards, application guidelines for corporate accounting standards, corporate accounting
       standards interpretations and other relevant regulations (hereinafter collectively referred to
       as "corporate accounting standards") for confirmation and measurement, combining the
       provisions of “Regulations on Information Disclosure and Compilation of Companies
       Offering Securities to the Public No. 15 - General Provisions on Financial Reports” (revised
       in 2014) published by CSRC.

2 Going concern basis

       The Company has evaluated the ability to continue as a going concern for 12 months from
       the end of the Reporting Period and has not identified any issues or circumstances that result
       in significant doubts about its ability to continue as a going concern. Therefore, the financial
       statements have been prepared on a going concern basis.




                                                  18
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)

3 Statement of compliance with corporate accounting standards

       The financial statements are in compliance with the requirements of the Accounting Standards
       for Business Enterprises, and truly and completely reflect the financial position, operating
       results, cash flow and other relevant information of the Company during the Reporting Period.

4 Accounting period

       The Company adopts the calendar year as accounting year, and its fiscal year is from January 1
       to December 31 of the Gregorian calendar.

5 Operations cycle

       The Company does not take the operating cycle as the criteria for liquidity classification of
       assets and liabilities.

6 Functional currency for bookkeeping

       The functional currency for bookkeeping and the preparation of financial statements are all
       denominated in RMB, and are presented in the unit of RMB’000 in all the tables herein unless
       otherwise specified.

7 Accounting treatments for business combinations involving enterprises under and not under common
control

 (1)   When the terms, conditions and economic influence of transactions in the process of a step-by-
       step combination conform to one or more of the following, multiple transactions will be
       accounted for as a package transaction:
 (a)   These transactions are made simultaneously or with consideration of influence on each other;
       These transactions can only achieve a complete business outcome when they are accounted for
 (b)
       collectively;
       The occurrence of a transaction depends on the occurrence of at least one of the other
 (c)
       transactions;
       A transaction is uneconomical individually, but is economical when considered collectively
 (d)
       with other transactions.
 (2)   Business combinations involving enterprises under common control
 (a)   Individual financial statement
       The assets and liabilities acquired by the Company in business combinations are measured based
       on the book value of assets and liabilities of the combined party on the date of combination
       (including the goodwill of the ultimate controlling party resulting from the acquisition of the
       combined party). The difference between the book value of net assets acquired in the
       combination and that of the consideration paid for the combination (or the total par value of
       shares issued) is used to adjust the capital stock premium in the capital reserve, and when the
       capital stock premium in the capital reserve is insufficient for offset, it is used to adjust the
       retained earnings. If there is a contingent consideration and it is necessary to confirm the
       provision or assets, the difference between the estimated amount of liabilities or assets and the
       settlement amount of subsequent contingent consideration is used to adjust the capital reserve
       (capital stock premium), and when the capital reserve is insufficient, it is used to adjust the
       retained earnings.




                                                  19
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)
      Accounting treatments for business combinations involving enterprises under and not under
7
      common control (continued)
(2)   Business combinations involving enterprises under common control (continued)
(a)   Individual financial statements (continued)
      For a business combination that is ultimately realized through multiple transactions, if it is
      a package transaction, each transaction is treated as a transaction that acquires control; if it
      is not a package transaction, on the date of acquisition of control, the difference between
      the initial cost of long-term equity investments and the book value of long-term equity
      investments before the combination plus the book value of the newly paid considerations
      on the date of combination is used to adjust the capital reserve; and when the capital reserve
      is insufficient for offset, it is used to adjust the retained earnings. For equity investments
      held prior to the date of combination, no accounting treatment is carried out for other
      comprehensive gains recognized by equity accounting or financial instrument confirmation
      and measurement standards, and up to the disposal of the investment, the accounting
      treatment shall be based on the same basis as the direct disposal of the assets or liabilit ies
      of the invested entity; other changes in the owner’s equity other than net profit or loss, other
      comprehensive income or profit distribution of net assets of the invested company
      recognized as equity are not subject to accounting, and will be transferred to the current
      profit and loss until disposal of the investment.
      The agency fees paid for audits, legal services, assessments and consultations and other
      direct related expenses incurred in the business combination are recognized in profit or loss
      in the period in which they were incurred. The transaction costs for the issuance of equity
      securities for the business combination that may be directly attributed to equity transactions
      can be deducted from equity; transaction costs directly related to the issuance of a debt
      instrument as a combination consideration are treated as an initial recognized amount
      included in the debt instrument.
      If the combined party has a consolidated financial statement, the initial investment cost of
      the long-term equity investment is determined based on the owners' equity attributable to
      the parent company in the consolidated financial statements of the combined party.
(b)   Consolidated financial statements
      The assets and liabilities acquired by the combining party in the business combination are
      measured based on the book value of the owner's equity of the combined party in the
      consolidated financial statements of the ultimate controlling party.
      In the case where a business combination is finally realized through multiple transactions,
      if it is a package transaction, each transaction is treated as a transaction for acquiring
      control; if it is not a package transaction, the long-term equity investments held by the
      combined party before the combination, the gains and losses, other comprehensive income
      and other changes in owners' equity have been recognized between the date of acquisition
      or the date of the combining party and the combined party under the final control of the
      same party, whichever is later, and the date of combination. These are used to offset the
      initial retained earnings or current profit and loss during the comparative reporting periods
      respectively.
      If the accounting policies adopted by the combined parties are inconsistent with those
      adopted by the Company, the Company shall make adjustments in accordance with the
      accounting policies of the Company on the date of combination, and on this basis, confirm
      the consolidated financial statements in accordance with the provisions of Accounting
      Standards for Business Enterprises.




                                                 20
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)

      Accounting treatments for business combinations involving enterprises under and not under
7
      common control (continued)
(3)   Combination not under common control
      The assets paid and liabilities incurred or assumed by the Company as a consideration for
      the business combination are measured at fair value on the date of purchase, and the
      difference between the fair value and the book value is recognized in profit or loss. Where
      a future event that may affect the combination costs is agreed in the combination contract,
      if the estimated future events are likely to occur on the date of purchase and the amount of
      the impact on combination costs can be reliably measured, it is also included in the
      combination costs.
      The agency fees paid for audits, legal services, assessments and consultations and other
      directly related expenses incurred in the business combination are recognized in profit or
      loss during the period in which they are incurred. The transaction costs for the issuance of
      equity securities for the business combination that may be directly attributed to equity
      transactions can be deducted from equity;
      The difference between the higher combination cost and lower fair value of net identifiable
      assets of the acquired party gained in the combination is recognized as goodwill by the
      Company. In case that the cost of combination is less than the fair value of the net
      identifiable assets of the acquired party gained in the combination, and the difference is still
      less than the fair value of net identifiable assets of the acquired party gain in the combination
      after review, the difference is included in the current profit and loss by the Company.
      In the case where a business combination involving enterprises not under common control
      is finally realized through multiple transactions step by step, if it is a package transaction,
      each transaction is treated as a transaction for acquiring control; if it is not a package
      transaction, the individual financial statements and consolidated financial statements are
      treated separately for accounting purposes.
(a)   In the individual financial statements, if the equity investment held before the date of
      combination is accounted for using equity method, the sum of the book value of equity
      investments of the acquired party held before the date of acquisition plus the new
      investment cost on the date of acquisition is recognized as the initial cost of the investment;
      the remaining comprehensive income confirmed in equity investments using equity method
      before the date of acquisition is accounted for, when the investment is disposed, on the same
      basis as those the invested party adopted directly to dispose of the relevant assets or
      liabilities.
      If the equity investment held before the date of combination is accounted for by financial
      instrument recognition and measurement criteria, the sum of the fair value of equity
      investment on the date of combination plus the new investment cost is taken as the initial
      investment cost on the date of combination. The difference between the fair value and the
      book value of the original equity interest, and the accumulated fair value changes originally
      included in other comprehensive income should be transferred to return on investment in
      the current period of combination date.
(b)   In the consolidated financial statements, the equity of the acquired party held before the
      date of acquisition is re-measured based o the fair value of the equity on the date of
      acquisition. The difference between the fair value and the book value is included in the
      current return on investment; if the equity of the acquired party held before the date of
      acquisition involves other comprehensive income, etc. under the equity method, other
      comprehensive income, etc. related to it is converted into return on investment in the current
      period of the acquisition date.




                                                 21
                                   TCL Technology Group Corporation
                                       Notes to Financial Statements
                           For the period from January 1 to December 31, 2022
                                 ___________(RMB’000)_____________

    III   Significant accounting policies and accounting estimates (continued)
8         Method for preparing consolidated financial statements
          The scope of consolidation of the Company's consolidated financial statements is determined on the
          basis of control, and all subsidiaries (including separate entities controlled by the parent Company)
          are included in the consolidated financial statements.
          The accounting policies and accounting periods adopted by all subsidiaries included in the
          consolidated financial statements are consistent with those of the Company. If the accounting
          policies or accounting periods adopted by the subsidiaries are inconsistent with those of the
          Company, necessary adjustments will be made in accordance with the Company's accounting
          policies and accounting periods when preparing consolidated financial statements. The consolidated
          financial statements are based on the financial statements of the Company and its subsidiaries as well
          as other relevant information, and are prepared by the Company after adjusting the long-term equity
          investments for the subsidiaries in accordance with the equity method.
          The impact of intracompany transactions between the Company and its subsidiaries, and
          intracompany transactions between subsidiaries, on the consolidated balance sheet, consolidated
          income statement, consolidated cash flow statement and consolidated statement of changes in
          shareholders' equity is offset in the preparation of consolidated financial statements.
          If the current losses shared by the minority shareholders of a subsidiary exceed the share enjoyed by
          the minority shareholder in the initial owners' equity of the subsidiary, the balance will still reduce
          the minority interests.
          During the Reporting Period, if a subsidiary or business is added due to the business combination
          involving enterprises under common control, the opening balance of the consolidated balance sheet
          is adjusted; the income, expenses and profits of the subsidiary or business from the beginning of the
          period of combination to the end of the Reporting Period are included in the consolidated income
          statement; the cash flows of the subsidiary or business from the beginning of the period of
          combination to the end of the Reporting Period are included in the consolidated cash flow statement.
          If a subsidiary or business is added due to a business combination involving enterprises under non-
          common control, the opening balance of the consolidated balance sheet is not adjusted; the income,
          expenses and profits of the subsidiary or business from the date of acquisition to the end of the
          Reporting Period are included in the consolidated income statement; the cash flow of the subsidiary
          or business from the date of acquisition to the end of the Reporting Period is included in the
          consolidated cash flow statement.
          During the Reporting Period, if a subsidiary or business is added due to a business combination
          involving enterprises under non-common control, the opening balance of the consolidated balance
          sheet is not adjusted; the income, expenses and profits of the subsidiary or business from the date of
          acquisition to the end of the Reporting Period are included in the consolidated income statement; the
          cash flow of the subsidiary or business from the date of acquisition to the end of the Reporting Period
          is included in the consolidated cash flow statement.
          During the Reporting Period, if the Company disposes of a subsidiary or business, the income,
          expenses and profits of the subsidiary or business from the beginning of the period to the disposal
          date are included in the consolidated income statement; the cash flow of the subsidiary or business
          from the beginning of the Reporting Period to the disposal date is included in the consolidated cash
          flow statement.
          When the Company loses control over the invested party due to disposal of part of the equity
          investment or other reasons, the remaining equity investment after disposal will be re-measured
          based on its fair value by the Company on the date of loss of control. The difference of the sum of
          the consideration obtained from the disposal of the equity and the fair value of the remaining equity,
          less the sum of the share of net assets and goodwill of the original subsidiary that should be enjoyed
          in accordance with the original share-holding ratio since the date of acquisition or combination, is
          accounted for the return on investment in the current period of loss of control. Other comprehensive
          income or net profit and loss related to the original subsidiary's equity investment, other
          comprehensive income and other changes in owners' equity other than profit distribution, will be
          converted into current return on investment when control is lost, except for other comprehensive
          gains arising from the re-measurement of net liabilities of the Benefit Plan made by the invested
          party or changes in net assets.




                                                        22
                                   TCL Technology Group Corporation
                                       Notes to Financial Statements
                           For the period from January 1 to December 31, 2022
                                 ___________(RMB’000)_____________

    III   Significant accounting policies and accounting estimates (continued)
9          Classification of joint arrangements and accounting treatment method for joint operations
    (1)   Classification of joint arrangements
          The Company classifies a joint arrangement as a joint operation or a joint venture according
          to factors such as the structure and legal form of the joint arrangement, the terms agreed in
          the joint arrangement, other relevant facts and circumstances.
          Joint arrangements not reached through independent entities are classified as joint
          operations; joint arrangements reached through independent entities are usually classified
          as joint ventures; however, a joint arrangement that is indicated by conclusive evidence of
          meeting any of the following conditions and meeting the provisions of relevant laws and
          regulations is classified as a joint operation:
          ① The legal form of the joint arrangement shows that the parties have rights to the assets,
          and obligations for the liabilities, relating to the arrangement.
          ② The contractual terms of the joint arrangement stipulates that the parties have rights to
          the assets, and obligations for the liabilities, relating to the arrangement.
          ③ Other relevant facts and circumstances show that the parties have rights to the assets,
          and obligations for the liabilities, relating to the arrangement. For example, the parties enjoy
          all the output substaintially related to the joint arrangement, and the repayment of the
          liabilities relating to the arrangement continues relying on the support of the parties.
    (2)   Accounting treatment method for joint operations
          The Company shall recognize the following items in relation to interest in the joint
          operation, and carry out accounting treatment in accordance with the provisions of relevant
          accounting standards for business enterprises:
          ① its assets, including its share of any assets held jointly;
          ② its liabilities, including its share of any liabilities incurred jointly;
          ③ its revenue from the sale of its share of the output arising from the joint operations;
          ④ its share of the revenue from the sale of the output by the joint operations; and
          ⑤ its expenses, including its share of any expenses incurred jointly.
          If investing or selling assets (except those that constitute a business), etc., into or to the joint
          operation, the Company shall only recognize the part of the profit and loss arising from the
          transaction attributable to other participants in the joint operation, before the assets, etc.,
          are sold to a third party by the joint operation. The Company will recognize in full the asset
          impairment loss arising if the assets invested or sold are impaired in compliance with the
          Accounting Standards for Business Enterprises No. 8 - Asset Impairment, etc.
          If purchasing assets (except those that constitute a business), etc., from the joint operation,
          the Company shall only recognize the part of the profit and loss arising from the transaction
          attributable to other participants in the joint operation, before the assets, etc., are sold to a
          third party by the Company. The Company will recognize its share of the asset impairment
          loss arising if the assets purchased are impaired in compliance with the Accounting
          Standards for Business Enterprises No. 8 - Asset Impairment, etc.
          The Company does not enjoy joint control over the joint operations. If the Company has
          rights to the assets, and obligations for the liabilities, relating to the joint operation, it shall
          still be accounted for by the above principles; otherwise, it shall be accounted for by the
          relevant accounting standards for business enterprises.




                                                       23
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
10      Criteria for determining cash and cash equivalents
       In the preparation of the cash flow statement, the Company recognizes cash holdings and
       deposits that can be used for payment at any time as cash.

       The Company recognizes cash that is easily converted into known amount with short
       holding period (generally due within three months from the date of purchase) and strong
       liquidity, and investments with low risk of changes in value (including investments in bonds
       within three months, while excluding equity investments), as cash equivalents.
11      Foreign currency business and translation of foreign currency statements
 (1)   Foreign currency transactions

       Foreign currency transactions between the Company and its subsidiaries are translated into
       base currency at the spot exchange rate on the transaction date.

       Foreign currency monetary items are translated at the spot exchange rate on the balance
       sheet date, and the exchange differences resulted therefrom, except that the exchange
       differences arising from special foreign currency loans related to the acquisition and
       construction of assets eligible for capitalization should be treated in accordance with the
       principle of capitalization of borrowing costs, are all included in the current profit and loss.
       Foreign currency non-monetary items measured at historical cost are still translated at the
       spot exchange rate on the transaction date, and the amount of base currency for bookkeeping
       is not changed.

       Foreign currency non-monetary items measured at fair value are translated at the spot
       exchange rates on the date when the fair value is determined, and the exchange differences
       resulted therefrom are included in profit or loss in the current period as a change in fair
       value. In the case of foreign currency non-monetary items that are at fair value through other
       comprehensive income, the exchange differences incurred are included in other
       comprehensive income.
 (2)   Translation of foreign currency financial statement

       When the Company translates the financial statements of overseas operations, the assets and
       liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet
       date. The owner’s equity items, except for the “Retained earnings” item, are translated at
       the spot exchange rate at the time of occurrence of the items. All the incurred items in the
       income statement are translated at the current average exchange rate of the period in which
       transactions occur.

       The translation differences of foreign currency financial statement arising from the above
       translation are included in other comprehensive income. When disposing of an overseas
       operation, the translation differences in the foreign currency financial statements related to
       the foreign operation listed in other comprehensive income items in the balance sheet are
       transferred from the other comprehensive income item to the current profit and loss. All the
       incurred items in the cash flow statement are translated at the current average exchange rate
       of the period in which transactions occur. All the opening balance and actual amount of the
       previous year are listed on the basis of the amount translated in the previous year.




                                                  24
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
12      Financial instruments
       When the Company becomes a party to a financial instrument, it recognizes a financial asset
       or liability.
       The effective interest method refers to the method of calculating the amortized cost of
       financial assets or liabilities and allocating interest income or interest expenses into each
       accounting period.
       The effective interest rate refers to the interest rate used to discount the estimated future
       cash flow of a financial asset or financial liability during its expected duration to the book
       balance of the financial asset or the amortized cost of the financial liability. When
       determining the effective interest rate, the expected cash flow is estimated on the basis of
       considering all contract terms of financial assets or liabilities (such as prepayment,
       extension, call options or other similar options), but the expected credit loss is not
       considered.
       The amortized cost of a financial asset or financial liability is the accumulated amortization
       amount formed by deducting the repaid principal from the initial recognition amount of the
       financial asset or financial liability, adding or subtracting the difference between the initial
       recognition amount and the maturity amount by using the effective interest method, and
       then deducting the accumulated accrued loss reserve (only applicable to financial assets).

 (1)   Classification and measurement of financial assets

       According to the business model of the financial assets under management and the
       contractual cash flow characteristics of the financial assets, the Company divides the
       financial assets into the following three categories:

 (a)   Financial assets at amortized cost.

 (b)   Financial assets at fair value through other comprehensive income.

 (c)   Financial assets at fair value through profit or loss.

       Financial assets are measured at fair value when initially recognized, but if the accounts or
       notes receivable arising from the sale of goods or the provision of services do not contain
       significant financing components or do not consider financing components for no more than
       one year, the initial measurement shall be made at the transaction price.

       For financial assets at fair value through profit or loss, transaction expenses are directly
       recognized in the current profit and loss. For other financial assets, transaction expenses are
       included in the initial recognition amount.

       Subsequent measurement of financial assets depends on their classification. All related
       financial assets affected will be reclassified when and only when the Company changes its
       business model of managing financial assets.

 (a)   Financial assets classified as measured at amortized cost
       The contract terms of a financial asset stipulate that the cash flow generated on a specific
       date is only the payment of the principal and the interest on the amount of outstanding
       principal, and the business model for managing the financial asset is to collect the
       contractual cash flow, then the Company classifies the financial asset as measured at
       amortized cost. Financial assets of the Company that are classified as measured at amortized
       cost include monetary assets, notes receivable, accounts receivable, other receivables, long-
       term receivables, debt investments, etc.
                                                  25
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)

12    Financial instruments (continued)
(1)   Classification and measurement of financial assets (continued)
      The Company recognizes interest income from such financial assets with the effective
      interest method, and carries out subsequent measurement at amortized cost. Gains or losses
      arising from impairment or derecognition or modification are included in current profit and
      loss. The Company calculates and determines the interest income based on the book balance
      of financial assets multiplied by the effective interest rate except for the followin g
      circumstances:
      ① For purchased or originated credit-impaired financial assets, the Company calculates and
      determines their interest income at the amortized cost of the financial assets and the credit -
      adjusted effective interest rate since the initial recognition.
      ② For financial assets not credit-impaired at the time of being purchased or originated but
      in the subsequent period, the Company calculates and determines their interest income at
      the amortized cost and the effective interest rate of the financial assets in the subsequent
      period. If the financial instrument is no longer credit-impaired due to the improvement of
      its credit risk in the subsequent period, the Company calculates and determines the interest
      income by multiplying the effective interest rate by the book balance of the financial asset.

(b)   Financial assets classified as measured at fair value through other comprehensive income
      The contract terms of a financial asset stipulate that the cash flow generated on a specific
      date is only the payment of the principal and the interest on the amount of outstanding
      principal, and the business model for managing the financial assets is both to collect
      contractual cash flow and for its sale, then the Company classifies the financial assets as
      measured at fair value through other comprehensive income.
      The Company recognizes interest income from such financial assets with the effective
      interest method. Except that the interest income, impairment loss and exchange difference
      are recognized as the current profit and loss, other changes in fair value are included in
      other comprehensive income. When the financial asset is derecognized, the accumulated
      gains or losses previously included in other comprehensive income are transferred out and
      included in the current profit and loss.
      Notes and accounts receivable at fair value through other comprehensive income are
      reported as receivables financing, and such other financial assets are reported as other debt
      investments. Among them, other debt investments maturing within one year from the
      balance sheet date are reported as the current portion of non-current assets, and other debt
      investments maturing within one year are reported as other current assets.

(c)   Financial assets designated as measured at fair value through other comprehensive income
      At the time of initial recognition, the Company may irrevocably designate non-trading
      equity instrument investments as financial assets at fair value through other comprehensive
      income on the basis of individual financial assets.
      Changes in the fair value of such financial assets are included in other comprehensive
      income without allowance for impairment. When the financial asset is derecognized, the
      accumulated gains or losses previously included in other comprehensive income are
      transferred out and included in the retained earnings. During the investment period when
      the Company holds the equity instrument, the dividend income is recognized and included
      in the current profit and loss when the Company's right to receive dividends has been
      established, the economic benefits related to dividends are likely to flow into the Company,
      and the amount of dividends can be measured reliably. The Company reports such financial
      assets under the item of investments in other equity instruments.


                                                 26
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)

12    Financial instruments (continued)

(1)   Classification and measurement of financial assets (continued)

      An investment in equity instruments is a financial asset at fair value through profit or loss
      when it is obtained mainly for recent sale, or is part of the identifiable portfolio of financial
      assets centrally managed when initially recognized and objective evidence exists for a short-
      term profit model in the near future, or is a derivative (except for derivatives defined as
      financial guarantee contracts and designated as effective hedging instruments).

(d)   Financial assets classified as measured at fair value through profit or loss

      If failing to be classified as measured at amortized cost or at fair value through other
      comprehensive income, or not designated as measured at fair value through other
      comprehensive income, financial assets are all classified as measured at fair value through
      profit or loss.

      The Company carries out subsequent measurement of such financial assets at fair value,
      and includes gains or losses arising from changes in fair value as well as dividends and
      interest income associated with such financial assets into current profits and losses.

      The Company reports such financial assets as held-for-trading financial assets and other
      non-current financial assets according to their liquidity.

(e)   Financial assets designated as measured at fair value through profit or loss

      At the time of initial recognition, the Company may irrevocably designate financial assets
      as measured at fair value through profit or loss on the basis of individual financial assets in
      order to eliminate or significantly reduce accounting mismatches.

      If the mixed contract contains one or more embedded derivative instruments and its main
      contract is not any financial asset as above, the Company may designate the whole of the
      mixed contract as a financial instrument at fair value through profit or loss. Except under
      the following circumstances:

      ① Embedded derivatives do not significantly change the cash flow of mixed contracts.
      ② When determining initially whether similar mixed contracts need to be split, it is
      substantially clear that embedded derivatives contained in them should not be split without
      analysis. If the prepayment right embedded in a loan allows the holder to prepay the loan at
      an amount close to the amortized cost, the prepayment right does not need to be split.

      The Company carries out subsequent measurement of such financial assets at fair value,
      and includes gains or losses arising from changes in fair value as well as dividends and
      interest income associated with such financial assets into current profits and losses.

      The Company reports such financial assets as held-for-trading financial assets and other
      non-current financial assets according to their liquidity.




                                                 27
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)

12    Financial instruments (continued)

(2)   Classification and measurement of financial liabilities

      The Company classifies a financial instrument or its components into financial liabilities or
      equity instruments upon initial recognition according to the contract terms of and the
      economic substance reflected by the financial instrument issued, rather than only in legal
      form, in combination with the definitions of financial liabilities and equity instruments.
      Financial liabilities are classified at initial recognition as measured at fair value through
      profit or loss, or other financial liabilities, or derivatives designated as effective hedging
      instruments.

      Financial liabilities are measured at fair value upon initial recognition. For financial
      liabilities at fair value through profit or loss, relevant transaction expenses are directly
      included in current profits and losses; for other categories of financial liabilities, relevant
      transaction expenses are included in the initial recognition amount.

      Subsequent measurement of financial liabilities depends on their classification:

(a)   Financial liabilities at fair value through profit or loss

      Such financial liabilities include held-for-trading financial liabilities (including derivatives
      falling under financial liabilities) and financial liabilities designated as measured at fair
      value upon initial recognition and through profit or loss.

      A financial liability is a held-for-trading financial liability if it is mainly undertaken for
      recent sale or repurchase, or is part of the identifiable portfolio of financial instruments
      centrally managed, and there is objective evidence that the enterprise has recently employed
      a short-term profit model, or is a derivative instrument, except derivatives designated as
      effective hedging instruments and derivatives conforming to financial guarantee contracts.
      Held-for-trading financial liabilities (including derivatives falling under financial
      liabilities) are subsequently measured at fair value. All changes in fair values except for
      hedging accounting are included in current profits and losses.

      The Company irrevocably designates financial liabilities as measured at fair value through
      profit or loss at the time of initial recognition in order to provide more relevant accounting
      information, provided:

      ① Such financial liabilities can eliminate or significantly reduce accounting mismatches.
      ② The financial liability portfolio or the portfolio of financial assets and liabilities is
      managed and evaluated for performance on the basis of fair value according to the enterprise
      risk management or investment strategy stated in the official written documents, and is
      reported to key management personnel within the enterprise on this basis.
      The Company subsequently measures such financial liabilities at fair value. Apart from
      changes in fair value that are brought about by changes in the Company’s own credit risk
      and included in other comprehensive income, other changes in fair value are included in
      current profits and losses. Unless including such changes in other comprehensive income
      will cause or expand accounting mismatch in profit or loss, the Company will include all
      changes in fair value (including the amount affected by changes in its own credit risk) in
      current profits and losses.

                                                  28
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)

12    Financial instruments (continued)

(2)   Classification and measurement of financial liabilities (continued)

(b)   Other financial liabilities

      The Company classifies financial liabilities except for the following items as measured at
      amortized cost. Such financial liabilities are recognized by the effective interest method and
      subsequently measured at amortized cost. Gains or losses arising from derecognition or
      amortization are included in the current profits and losses:

      ① Financial liabilities at fair value through profit or loss.
      ② Financial liabilities resulting from the transfer of financial assets that do not meet the
      conditions for derecognition or continue to be involved in the transferred financial assets.
      ③ Financial guarantee contracts that do not fall under the first two categories hereof, and
      loan commitments that do not fall under category (1) hereof and lend at a below-market
      interest rate.

      Financial guarantee contracts refer to contracts that require the issuer to pay a specific
      amount to the contract holder who has suffered losses when a specific debtor fails to pay
      the debt in accordance with the original or modified terms of the debt instrument. Financial
      guarantee contracts that are not financial liabilities designated as measured at fair value
      through profit or loss are measured after initial recognition according to the loss reserve
      amount and of the initial recognition amount, less the accumulated amortization amount
      during the guarantee period, whichever is higher.

(3)   Derecognition of financial assets and liabilities

      Financial asset are derecognized, i.e. written off from its account and balance sheet if any
(a)
      of the following conditions is met:
      ① The contractual right to receive cash flow from the financial asset is terminated; or
      ② The financial asset has been transferred, which meets the requirements for derecognition
      of financial assets.

(b)   Conditions for derecognition of financial liabilities
      If the current obligation of a financial liability (or part thereof) has been discharged, such
      financial liability (or part thereof) is derecognized.
      The existing financial liability is derecognized with a new one recognized, and the
      difference between the carrying amount and the consideration paid (including transferred
      non-cash assets or assumed liabilities) is included in the current profits and losses, if an
      agreement is signed between the Company and the lender to replace the existing financial
      liability by assuming a new one, and the contract terms of these two financial liabilities are
      substantially different, or the contract terms of the existing financial liability (or part
      thereof) are substantially modified.
      If the Company repurchases part of a financial liability, the carrying amount of the financial
      liability shall be distributed according to the proportion of the fair value of the continuing
      recognition portion and the derecognition portion to the overall fair value on the repurchase
      date. The difference between the carrying amount allocated to the derecognized portion and
      the consideration paid (including transferred non-cash assets or liabilities assumed) shall be
      included in the current profits and losses.
                                                 29
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)

12    Financial instruments (continued)

(4)   Recognition basis and measurement method of financial asset transfer

      When a financial asset is transferred, the Company evaluates the risks and rewards retained
      of the financial asset ownership:

(a)   If almost all the risks and rewards of the financial asset ownership are transferred, such
      financial asset shall be derecognized, and the rights and obligations generated or retained
      in the transfer shall be separately recognized as assets or liabilities.

      If risks and rewards of the financial asset ownership are substantially retained, such
(b)
      financial asset shall continue to be recognized.

(c)   In circumstances where the Company neither transfers nor retains risks and rewards of the
      financial asset ownership substantially (i.e. circumstances other than ① and ② of this
      article), based on whether it retains control over such financial asset,
      ① the financial asset shall be derecognized, and the rights and obligations generated or
      retained in the transfer shall be separately recognized as assets or liabilities if such control
      is not retained; or
      ② the relevant financial asset shall continue to be recognized to the extent that it continues
      to be involved in the transferred financial asset, and the relevant liabilities shall be
      recognized accordingly if such control is retained. The extent that it continues to be involved
      in the transferred financial asset refers to the extent the Company bears the risks or rewards
      on changes in the value of the transferred financial asset.
      When judging whether the transfer of financial assets meets the above conditions for
      derecognition of financial assets, the principle of substance over form shall be adopted. The
      Company divides the transfer of financial assets into overall transfer and partial transfer.
      If the overall transfer of financial assets meets the conditions for derecognition, the
(a)   difference between the following two amounts shall be included in the current profits and
      losses:
      ① The carrying amount of the transferred financial asset on the date of derecognition.
      ② The sum of the consideration received for the transfer of financial assets and the amount
      of the respective derecognized portion of the accumulated changes in fair value originally
      included in other comprehensive income directly (the financial assets involved in the
      transfer are financial assets at fair value through other comprehensive income).

(b)   If the financial asset is partially transferred and the transferred part meets the conditions for
      derecognition, the carrying amount of the financial asset before transfer shall be allocated
      between the derecognition portion and the continuing recognition portion (in this case, the
      retained service asset shall be regarded as the continuing recognition part of the financial
      asset) according to the respective relative fair values on the transfer date, and the difference
      between the following two amounts shall be included in the current profits and losses:
      ① The carrying amount of the derecognized portion on the derecognition date.
      ② The sum of the consideration received for the derecognized portion and the amount of
      the corresponding derecognized portion of the accumulated changes in fair value originally
      included in other comprehensive income (the financial assets involved in the transfer are
      financial assets at fair value through other comprehensive income).


                                                 30
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________


III   Significant accounting policies and accounting estimates (continued)

12    Financial instruments (continued)

(4)   Recognition basis and measurement method of financial asset transfer (continued)

      If the transfer of a financial asset does not meet the conditions for derecognition, the
      financial asset shall continue to be recognized and the consideration received shall be
      recognized as a financial liability.

(5)   Determination of fair value of financial assets and liabilities

      The fair value of a financial asset or liability with an active market shall be determined by
      the quoted price in the active market, unless the financial asset has a sell-off period for the
      asset itself. For the financial assets restricted for the assets themselves, the compensation
      amount demanded by market participants due to the risk of not being able to sell the
      financial assets on the open market within the specified period shall be deducted from the
      quoted price in the active market. Quoted prices in the active market includes those for
      related assets or liabilities that can be easily and regularly obtained from exchanges, dealers,
      brokers, industry groups, pricing or regulatory agencies, and can represent actual and
      recurring market transactions on the basis of fair trade.

      Financial assets initially acquired or derived or financial liabilities assumed shall be
      determined on the basis of market transaction price.

      The fair value of financial assets or liabilities without an active market shall be determined
      by valuation techniques. At the time of valuation, the Company adopts valuation techniques
      that are applicable under the current circumstances and are supported by sufficient available
      data and other information, selects input values consistent with the characteristics of
      relevant assets or liabilities considered by market participants in the transactions thereof,
      and gives priority to the use of relevant observable input values whenever possible. If the
      relevant observable input value cannot be obtained or be feasibly obtained, the
      unobservable input value shall be used.




                                                 31
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)

12    Financial instruments (continued)
(6)   Impairment of financial instruments
      Based on the expected credit loss, the Company conducts impairment accounting of
      financial assets classified as measured at amortized cost, financial assets classified as
      measured at fair value through other comprehensive income and financial guarantee
      contracts and recognizes loss reserves.
      Expected credit loss refers to the weighted average of the credit losses of financial
      instruments weighted by the risk of default. Credit loss refers to the difference between all
      contractual cash flows discounted at the original effective interest rate and receivable
      according to the contract and all cash flows expected to be collected of the Company, i.e.
      the present value of all cash shortfalls. Among them, credit-impaired purchased or
      originated financial assets of the Company shall be discounted at the credit-adjusted
      effective interest rate of such financial assets.
      For receivables arising from transactions regulated by the income criteria, the Company
      uses the simplified measurement method to measure the loss reserve according to the
      amount equivalent to the expected credit loss during the entire duration.
      For credit-impaired purchased or originated financial assets, only the accumulated changes
      in the expected credit losses during the entire duration since the initial recognition are
      recognized as loss reserves on the balance sheet date. On each balance sheet date, the
      amount of change in the expected credit loss during the entire duration is included in the
      current gains and losses as impairment losses or gains. Even if the expected credit loss
      during the entire duration on the balance sheet date is less than that reflected in the estimated
      cash flow upon initial recognition, the favorable change in the expected credit loss is
      recognized as impairment gains.
      In addition to other financial assets adopting the above simplified measurement method and
      other than the credit-impaired purchased or originated ones, the Company evaluates
      whether the credit risk of relevant financial instruments has increased significantly since
      the initial recognition, measures its loss reserves and recognizes the expected credit loss
      and its changes respectively according to the following circumstances on each balance sheet
      date:
(a)   If the credit risk of the financial instrument has not increased significantly since its initial
      recognition, it is in the first stage, and its loss reserve shall be measured according to an
      amount equivalent to its expected credit loss over the next 12 months, and the interest
      income shall be calculated according to the book balance and the effective interest rate.
(b)   If the credit risk of the financial instrument has increased significantly since initial
      recognition but no credit impairment has occurred, it is in the second stage, and its loss
      reserve shall be measured according to an amount equivalent to its expected credit loss
      throughout its life, and the interest income shall be calculated according to the book balance
      and the effective interest rate.
(c)   If the financial instrument is credit-impaired since its initial recognition, it is in the third
      stage, and the Company shall measure its loss reserve according to an amount equivalent to
      its expected credit loss throughout its life, and calculate the interest income at the amortized
      cost and the effective interest rate.
      The increase or reversed amount of the credit loss reserve for financial instruments shall be
      included in the current profits and losses as impairment losses or gains. Except for financial
      assets classified as measured at fair value through other comprehensive income, the credit
      loss reserve will offset the carrying amount of the financial assets. For financial assets
      classified as measured at fair value through other comprehensive income, the Company
      recognizes its credit loss reserve in other comprehensive income without reducing its
      carrying amount presented in the balance sheet.

                                                 32
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)

12    Financial instruments (continued)

(6)   Impairment of financial instruments (continued)

      In the previous accounting period, the Company has measured the loss reserve, the amount
      equivalent to the expected credit loss of the financial instruments throughout its life.
      However, on the balance sheet date of the current period, the financial instrument no longer
      conforms to the situation of significant increase in credit risk since initial confirmation; on
      the balance sheet date of the current period, the Company has measured the loss reserve of
      the financial instruments, the amount equivalent to the expected credit loss in the next 12
      months, and the reversed amount of the loss reserve thus formed is included in the current
      profit and loss as impairment profit.

(a)   Significant increase in credit risk

      In order to determine whether the credit risk of financial instruments has increased
      significantly since the initial recognition, the Company uses the available reasonable and
      based forward-looking information and compares the risk of default of financial instruments
      on the balance sheet date with the risk of default on the initial confirmation date. When the
      Company applies provisions on depreciation of financial instruments to financial guarantee
      contracts, the initial recognition date shall be regarded as the date when the Company
      becomes a party to make irrevocable commitments.

      For the assessment of whether the credit risk has increased significantly, the Company will
      consider the following factors

      ① According to whether the actual or expected debtor's operations results have changed
      significantly;
      ② Whether the regulatory, economic or technological environment of the debtor has
      undergone significant adverse changes;
      ③ Whether the following items have changed significantly: the value of collateral as debt
      mortgage, or the guarantee provided by a third party, or the quality of credit enhancement;
      these changes will reduce the debtor’s economic motivation to repay the loan within the
      time limit stipulated in the contract and could impact the probability of default;
      ④ Whether the debtor's expected performance and repayment behavior have changed
      significantly;
      ⑤ Whether the Company's credit management methods for financial instruments have
      changed, etc.

      If, on the balance sheet date, the credit risk of the financial instrument is judged to be low
      by the Company, the Company assumes that the credit risk of the financial instrument has
      not increased significantly since the initial recognition. The financial instrument will be
      deemed to have lower credit risk under the following circumstances: the default risk of the
      financial instrument is lower; the borrower has a strong capacity to fulfill its contractual
      cash flow obligations in a short time; furthermore, even if there are adverse changes in the
      economic situation and operating environment for a long period of time, it may not
      necessarily reduce the borrower’s ability to fulfill its contractual cash flow obligations.




                                                33
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)

12    Financial instruments (continued)

(6)   Impairment of financial instruments (continued)
(b)   Financial assets with depreciation of credit
      If one or more events have adverse effects on the expected future cash flow of a financial
      asset, the financial asset will become a financial asset that has suffered credit impairment.
      The following observable information can be regarded as evidence of credit impairment of
      financial assets:
      ① The issuer or debtor is in serious financial difficulty;
      ② The debtor breaches the contract, such as default or overdue payment of interest or
      principal, etc.;
      ③ The creditor gives concessions to the debtor due to economic or contractual
      considerations related to the debtor's financial difficulties; the concessions will not be made
      under any other circumstances;
      ④ There is a great possibility of bankruptcy or other financial restructuring of the debtor;
      ⑤ The issuer or debtor has financial difficulties, resulting in the disappearance of the active
      market for the financial assets;
      ⑥ Purchasing or generation of a financial asset with a large discount, which reflects the
      fact of credit loss.
      Credit impairment of financial assets may not be caused by separately identifiable events,
      but may be caused by the combined effect of multiple events.
(c)   Determination of expected credit loss
      The expected credit losses of financial instruments is assessed individually and collective ly.
      During the assessment of the expected credit losses, the Company will take into account
      reasonable and reliable information about past events, the current situation and future
      economic situation forecast.
      The Company divides financial instruments into different combinations on the basis of
      common credit risk characteristics. Common credit risk characteristics adopted by the
      Company include: financial instrument type, credit risk rating, aging combination, overdue
      aging combination, contract settlement cycle, debtor's industry, etc. To understand the
      individual evaluation criteria and combined credit risk characteristics of relevant financial
      instruments, please refer to the accounting policies of relevant financial instruments for
      details.
      The Company adopts the following methods to determine the expected credit losses of
      relevant financial instruments:
      ① In terms of financial assets, credit loss is equivalent to the present value of the difference
      between the contract cash flow that the Company shall receive and the expected cash flow.
      ② In terms of the financial guarantee contract, credit loss is equal to the expected amount
      of payment made by the Company to the holder of the contract for credit loss incurred, less
      the present value of the difference between the amount expected to be collected from the
      holder of the contract, the debtor or any other party.
      ③ If, on the balance sheet date, a financial asset has suffered credit impairment, but one
      does not purchase or generate a financial asset that has suffered credit impairment, the credit
      loss is equivalent to the difference between the book balance of the financial asset and the
      present value of the estimated future cash flow discounted at the original actual interest rate.
      Factors reflected in the Company's method of predicting credit losses by quantitative
      finance tools include: unbiased probability weighted average amount determined by
      evaluating a series of possible results; time value of money; reasonable and reliable
      information about past events, current situation and future economic situation forecast that
      can be obtained on the balance sheet date without unnecessary extra costs or efforts.
                                                 34
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)

 12    Financial instruments (continued)

 (6)   Impairment of financial instruments (continued)

 (d)   Write-off of financial assets

       If the Company cannot reasonably expect the contract cash flow of the financial asset to be
       fully or partially recovered, the book balance of the financial asset will be written off
       directly. This write-off constitutes the derecognition of relevant financial assets.

 (7)   Offset of financial assets and financial liabilities

       In the balance sheet, financial assets and financial liabilities are shown separately without
       offsetting each other. However, if the following conditions are met at the same time, the net
       amount after offset will be listed in the balance sheet:

       The Company has the legal right, which is currently enforceable, to offset the confirmed
 (a)
       amount;

       The Company plans to settle on a net basis, or realize the financial assets and settle the
 (b)
       financial liabilities at the same time.
13      Notes receivable
       For the determination method and accounting treatment method of the Company's expected
       credit loss on notes receivable, please refer to 12(6) of note III Impairment of financial
       instruments.

       If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the
       level of a single instrument, the Company will refer to the experience of historical credit
       loss, combine the current situation and judgment on future economic situation, divide notes
       receivable into several combinations according to the characteristics of credit risk, and
       calculate expected credit loss on the basis of combinations.




                                                   35
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
14      Accounts receivable
       For the determination method and accounting treatment method of the Company's expected
       credit loss on accounts receivable, please refer to 12(6) of note III Impairment of financial
       instruments.

       As for the accounts receivable, if there is objective evidence that the Company will not be
       able to recover the money according to the original terms of the accounts receivable, the
       Company will separately determine its credit loss.

       If sufficient evidence of expected credit loss cannot be assessed at reasonable cost at the
       level of single instrument, the Company will divide the accounts receivable into several
       combinations according to the credit risk characteristics, and calculate the expected credit
       loss on the basis of the combinations (with reference to the experience of historical credit
       loss, and in combination with the current situation with the judgment of future economic
       situation)
15      Other receivables
       For the determination method and accounting treatment method of the Company's expected
       credit loss of other receivables, please refer to 12(6) of note III Impairment of financial
       instruments.

       For other receivables for which there is objective evidence that the Company will not be
       able to recover the amount according to the original terms of the receivables, the Company
       will separately determine its credit loss.

       If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the
       level of single instrument, the Company will refer to the experience of historical credit loss,
       combine the current situation and judgment on future economic situation, divide other
       receivables into several combinations according to the characteristics of credit risk, and
       calculate expected credit loss on the basis of combinations.
16      Inventories
 (1)   Classification of inventories

       The Company classifies inventories into raw materials, work in progress, finished goods,
       goods shipped in transit, turnover materials and molds with an expected benefit period of
       less than one year, depending on the purpose of holding the inventories. Turnover materials
       include low-value consumables and packaging materials.

 (2)   Valuation method for inventories shipped in transit
       All types of inventories are accounted for at actual cost, and actual costs include purchase
       costs, processing costs and other costs. Inventories are shipped in transit by weighted
       average method.




                                                 36
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)

 16    Inventories (continued)

       Basis for determining the net realizable value of inventories and accrual method for
 (3)
       inventory valuation allowance

       Closing inventories are measured at cost or net realizable value, whichever is lower. In
       cases where differences exists due to the net realizable value being less than the cost of
       inventory, inventory valuation allowance is made based on individual inventory items or
       the inventory category, and the difference is recognized in the current profit and loss.

       For inventories of goods directly used for sale, such as finished goods, merchandise
       inventories and materials for sale, in the normal production and operations process, the net
       realizable value is determined by the amount of the estimated selling expenses of the
       inventory less the estimated sales cost and relevant taxes and fees; for material inventories
       that need to be processed, in the normal production and operations process, the net
       realizable value is determined by the amount of the estimated selling expenses of finished
       products produced less the estimated cost occurred at the time of completion, the estimated
       selling expenses and related taxes; for inventories held for the execution of sales contracts
       or labor contracts, the net realizable value is calculated on the basis of the contract price,
       and if the quantity of inventories held is more than the quantity specified in sales contracts,
       the net realizable value of excess inventories is calculated based on the general sales price.

       At the end of the period, inventory valuation allowance is accrued according to individual
       inventory items; but for a large number of inventories with lower unit prices, inventory
       valuation allowance is accrued according to inventory category; for inventories related to
       the product series produced and sold in the same region with the same or similar end use or
       purpose, which is difficult to measure separately from other items, thus inventory valuation
       allowance is accrued and combined with other items.

       If the influencing factors of the write-down of inventory value have disappeared, the amount
       written-down is recovered and reversed to the amount of inventory valuation allowance
       already accrued, and the amount reversed is included in the current profit and loss.

 (4)   Inventory system
       The Company adopts a perpetual inventory system for inventory management.
 (5)   Amortization method of turnover materials
       The Company amortizes turnover materials by the one-off amortization method, and the
       molds with a benefit period of less than one year are amortized within the period of not
       exceeding one year according to the expected benefit period.
17     Contract assets
       A contract asset shall be recognized if the Company has transferred the goods to the
       customer and has the right to receive a consideration depending on other factors than the
       passage of time. The right of the Company to unconditionally receive the considerations
       from customers (i.e., only depending on the passage of time) is listed independently as
       receivables.

       For the determination method and accounting treatment method of the Company’s expected
       credit loss on contract assets, please refer to 12(6) of note III Impairment of financial
       instruments.


                                                 37
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
18.    Held-for-sale
 (1)   Criteria for classification as being held for sale

       The Company recognizes non-current assets or disposal groups that meet both of the
       following conditions as components held for sale:
       ① they can be sold immediately under the current status according to the practice of selling
       such assets or disposal groups in similar transactions;
       ② The sale is likely to occur, that is, the Company has made a resolution on the sale plan,
       obtained the approval from the regulatory authorities (if applicable), and obtained a
       confirmed purchase commitment that the sale is expected to be completed in one year.

       The confirmed purchase commitment refers to a legally binding purchase agreement
       concluded by and between the Company and another party, which contains important terms
       such as transaction price, time and sufficiently severe penalty for breach of contract, so that
       there will be little possibility of major adjustments to or cancellation of the agreement.

 (2)   Accounting for non-current assets or disposal groups held for sale

       The Company shall not depreciate or amortize non-current assets or disposal groups held
       for sale. If the book value is higher than the amount of fair value net of selling expenses,
       the former shall be written down to the latter. The amount written down shall be recognized
       as asset impairment loss and included in the current profit and loss, and the impairment
       allowance for assets held for sale shall be accrued at the same time.

       The non-current asset or disposal group classified as being held for sale on the date of
       acquisition shall be initially measured at whichever initially measured amount is lower
       under the assumption that it is not classified as being held for sale and the amount of fair
       value net of selling expenses.

       The above principles are applicable to all non-current assets, except investment real estate
       subsequently measured by the fair value model, biological assets measured by the amount
       of fair value net of selling expenses, assets formed by employee compensation, deferred
       income tax assets, financial assets regulated by the relevant accounting standards of
       financial instruments, and rights arising from insurance contracts regulated by the relevant
       accounting standards of insurance contracts.
19      Other debt investments
       For the determination method and accounting treatment methods of the Company’s
       expected credit loss of other debt investments, please refer to 12(6) of note III Impairment
       of financial instruments.
20      Long-term receivables
       For the determination method and accounting treatment method of the Company's expected
       credit loss on long-term receivables, please refer to 12(6) of note III Impairment of financial
       instruments.
       As for the accounts receivable, if there is objective evidence that the Company will not be
       able to recover the money according to the original terms of the accounts receivable, the
       Company will separately determine its credit loss.
       If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the
       level of single instrument, the Company will refer to the experience of historical credit loss,
       combine the current situation and judgment on future economic situations, divide long
       receivables into several combinations according to the characteristics of credit risk, and
       calculate expected credit loss on the basis of combinations.

                                                         38
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
21     Long-term equity investments
       Long-term equity investments comprise the Company’s long-term equity investments in
       its subsidiaries, and the Company’s long-term equity investments in its associates and joint
       ventures.
       Subsidiaries are the investees over which the Company is able to exercise control. A joint
       venture is a joint arrangement which is structured through a separate vehicle over which
       the Company has joint control together with other parties and only has rights to the net
       assets of the arrangement based on legal forms, contractual terms and other facts and
       circumstances. Associates are the investees that the Company has significant influence on
       their financial and operating policies.
       Investments in subsidiaries are presented in the Company’s financial statements using the
       cost method, and are adjusted to the equity method when preparing the consolidated
       financial statements. Investments in a joint venture and associates are accounted for using
       the equity method.
 (1)   Recognition of initial investment cost
 (a)   Long-term equity investment formed by business combination
       For long-term equity investment acquired by business combination involving enterprises
       under common control, the book value of assets and liabilities of the combined party in the
       consolidated financial statements of the ultimate controlling party as at the date of
       combination (including the goodwill formed by the ultimate controlling party's acquisition
       of the combined party) is recognized as investment cost. For long-term equity investment
       formed by combination, the share of the book value of shareholders' equity of the combined
       party acquired on the date of combination is recognized as initial investment cost. The
       difference between the initial investment cost and assets paid as per consideration for
       combination, the book value of liabilities incurred or assumed and the total par value of
       shares issued, is used to adjust capital reserve, and when the capital reserve is insufficient,
       it is used to adjust retained earnings.
       For long-term equity investment acquired by business combinations involving enterprises
       not under common control, the combination cost is recognized as investment cost of the
       long-term equity investment. The combination cost is the fair value of assets paid, the
       liabilities incurred or assumed, and the equity securities issued to acquire the control of
       acquired party on the date of acquisition. The difference between the higher combination
       cost and lower fair value of net identifiable assets of the acquired party acquired in the
       combination is recognized as goodwill; the difference between the lower combination cost
       and higher fair value of net identifiable assets of the acquired party acquired in the
       combination is included in current profits and losses after review. For business
       combination involving enterprises not under common control realized step by step through
       multiple transactions, the sum of the book value of equity investment held by the acquire r
       before the date of acquisition and the new investment cost on the date of acquisition is
       recognized as initial investment cost, and the combination cost includes the sum of assets
       paid, the liabilities incurred or assumed by the acquirer, and the fair value of equity
       securities issued.
 (b)   Long-term equity investment acquired by other means
       For long-term equity investment acquired by cash payment, the actual acquisition price is
       recognized as initial investment cost. The initial investment cost includes expenses, taxes
       and other necessary expenses directly related to the acquisition of the long-term equity
       investment; the transaction costs incurred when issuing or acquiring the own equity
       instruments of acquirer attributed directly to equity transactions which can be deducted
       from the equity.
       For long-term equity investment acquired by issuing equity securities, the fair value of
       equity securities issued is recognized as initial investment cost.

                                                          39
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)
21    Long-term equity investments (continued)
      Provided that the non-monetary asset exchange contains commercial substance and the fair
      value of the assets received or assets surrendered can be reliably measured, the initial
      investment cost of the long-term equity investment received with non-monetary assets is
      determined based on the fair value of the assets surrendered, except that there is conclusive
      evidence that indicates that the fair value of assets received is more reliable. For non-monetary
      assets that do not satisfy the above condition, the book value of assets surrendered and related
      taxes and fees payable are recognized as the initial investment cost of the long-term equity
      investment.
      The initial investment cost of a long-term equity investment acquired by debt restructuring is
      determined on the basis of fair value.
(2)   Subsequent measurement and recognition of related profit and loss
(a)   Subsequent measurement
      The Company adopts the cost method to account for the long-term equity investments under
      the control of investee, and the consolidated financial statements are adjusted in accordance
      with the equity method in preparation.
      The Company adopts the equity method to account for the long-term equity investments in
      associates and joint ventures. The difference between the higher initial investment cost and the
      fair value share of identifiable net assets of the investee enjoyed in the investment is not used
      to adjust the initial investment cost of the long-term investment; the difference between the
      lower initial investment cost and the fair value share of identifiable net assets of the investee
      enjoyed at the time of conducting the investment is included in the current profits and losses.
(b)   Recognition of profit and loss
      Under the cost method, in addition to the actual payment or the cash dividends or profits
      included in the consideration that have been declared but not yet paid, the Company recognizes
      the investment income according to the cash dividends or profits that the investee declared to
      pay.
      Under the equity method, when the investment enterprise confirms that it should enjoy the net
      profit or net loss of the investee, it should adjust the net profit of the investee based on the fair
      value of identifiable assets of the investee at the time of conducting the investment before the
      confirmation, and the part of profit and loss of internal transaction between the investor and
      associates and joint venture that should be attributed to the investor according to the
      shareholding ratio, should be offset, and the investment profits and losses should be confirmed
      on this basis. When the Company confirms that it should assume the loss occurred by the
      investee, the process hereunder is followed: first, the book value of the long-term equity
      investment is offset. Secondly, if the book value of the long-term equity investment is
      insufficient for the offset, the investment loss is continued to be recognized, and the book value
      of long-term receivable items is offset, subject to other book value of the longterm equity that
      substantially constitutes the net investment of the investee. Finally, after the above-mentioned
      treatment, if the Company still bears additional obligations in accordance with the investment
      contract or agreement, the provision are recognized according to the estimated obligations and
      included in the current investment losses.
      If the investee realizes profit in the future period, the Company shall, after deducting the
      unconfirmed loss share, conduct the process in the reverse order of the above to write down the
      book balance of the confirmed liabilities and recover other long-term equity that substantially
      constitutes net investment of the investee and the book value of the long-term equity, and
      recognize the profit as return on investment.
      Other changes in the owners' equity other than net profit or loss, other comprehensive income
      and profit distribution of the investee, are used to adjust the book value of the long-term equity
      investment and included in capital reserve. The unrealized profit and loss from internal
      transactions between the Company and the investee attributed to the Company according to the
      shareholding ratio, is offset, and the investment profit and loss is recognized on this basis. In
      respect of the internal transaction losses incurred by the Company and the investee, for the part
      recognized asset impairment losses, the corresponding unrealized losses are not offset.

                                                            40
                             TCL Technology Group Corporation
                                 Notes to Financial Statements
                     For the period from January 1 to December 31, 2022
                           ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)

21    Long-term equity investments (continued)

(3)   Step-by-step disposal of investment in subsidiaries

      When the terms, conditions and economic influence of transactions of the equity
      investment of the subsidiary conform to one or more of the following, accounting for
      multiple transactions is treated as a package transaction:

(a)   These transactions are made simultaneously or with consideration of influence on each
      other;
(b)   These transactions can only achieve a complete business outcome when they are accounted
      for collectively;
(c)   The occurrence of a transaction depends on the occurrence of at least one of the other
      transactions;
(d)   A transaction is uneconomical individually, but is economical when considered
      collectively with other transactions.
      When an enterprise loses control over the original subsidiary due to disposal of part of the
      equity investment or other reasons, if the transactions do not belong to a package
      transaction, the accounting treatment of individual financial statements and consolidated
      financial statements should be distinguished as follows:
(a)   In the individual financial statements, the disposed equity should be accounted for in
      accordance with the "Accounting Standards for Business Enterprises No. 2 - Long-term
      Equity Investment"; meanwhile, the remaining equity should be recognized as long-term
      equity or other related financial assets based on its book value. If the remaining equity after
      disposal can be used to exercise common control or significant influence on the original
      subsidiary, it shall be accounted for in accordance with the relevant provisions on the
      conversion of the cost method into the equity method.
(b)   In the consolidated financial statements, the remaining equity should be re-measured in
      accordance with its fair value on the date of loss of control. The difference between the
      sum of the consideration acquired from the disposal of the equity and the fair value of the
      remaining equity, less the share of net assets of the original subsidiary that should be
      enjoyed in accordance with the original shareholding ratio from the date of acquisition, is
      included in the current profit and loss of the period in which loss of control occurred. Other
      comprehensive income related to the original subsidiary's equity investment should be
      converted into current investment income when control is lost. The Company shall disclose
      in the notes the fair value of the remaining equity after disposal on the date of loss of
      control and the amount of relevant gains or losses arising from the disposal remeasured
      based on the fair value.
      If the transactions of disposal of equity investment in a subsidiary until the loss of control
      is a package transaction, the accounting treatment of individual financial statements and
      consolidated financial statements should be distinguished as follows: :
(a)   In the individual financial statements, the difference between each disposal price and the
      book value of the long-term equity investment corresponding to the disposed equity before
      the loss of control is recognized as other comprehensive income, and transferred to the
      current profit and loss of the period in which the loss of control occurred;
(b)   In the consolidated financial statements, the difference between each disposal price and the
      disposal of investment corresponding to the share of the net assets of the subsidiary before
      the loss of control is recognized as other comprehensive income, and transferred to the
      current profit and loss of the period in which the loss of control occurred.


                                                        41
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)

 21    Long-term equity investments (continued)

 (4)   Basis for determining control, common control and significant influence on the investee

       Control means having the power of control over the investee, enjoying variable returns by
       participating in the relevant activities of the investee, and having the ability to use the
       power over the investee to influence the amount of returns.
       Common control means the control that is common to an arrangement in accordance with
       the relevant agreement, and the decisions of relevant activities of the arrangement must be
       made upon agreement of the Company and other parties sharing the control rights.
       Significant influence means the power to participate in the decision-making of the financial
       and operating policies of the investee, but by which cannot control or commonly control
       together with other parties the formulation of the policies.

 (5)   Impairment test and allowance for impairment
       On the balance sheet date, if there is any indication that the long-term equity investment is
       impaired due to continuous decline in the market price or deterioration of operating
       conditions of the investee, the recoverable amount of long-term equity investment is
       determined according to the net value of a single long-term equity investment less the
       disposal expenses or the present value of expected future cash flows of the long-term equity
       investment, whichever is higher. When the recoverable amount of the long-term equity
       investment is lower than the book value, the book value of assets is written-off to the
       recoverable amount, and the amount written-down is recognized as asset impairment
       losses, which is included in the current profit and loss, and the corresponding allowance
       for asset impairment is made.
       For long-term equity investments without significant influence or quotation in an active
       market and whose fair value cannot be measured in a reliable way, the impairment loss is
       determined by the difference between the book value and the present value determined by
       discounting the future cash flows of similar financial assets at the current market rate of
       return.
       Other long-term equity investments with signs of impairment other than goodwill arising
       from business combination, if the measurement of recoverable amount indicates that the
       recoverable amount of the long-term equity investment is lower than its book value, the
       difference is recognized as impairment losses.
       Goodwill arising from a business combination is tested for impairment annually, regardless
       of whether there is any indication of impairment.
       Once the impairment loss of long-term equity investment is confirmed, it will not be
       reversed.
22     Investment property
       The Company's investment property means the property held for the purpose of earning
       rent or capital appreciation, or both, including the land use rights that have been leased, the
       land use rights that are held for transfer upon appreciation, and the leased buildings. In
       addition, for the vacant buildings held by the Company for the purpose of leases, if the
       Board of Directors makes a written resolution that expressly indicates that the buildings
       will be used for leases and the intention of holding will not change in a short-term, the
       building will also be reported as investment property.

       The Company adopts the cost model for subsequent measurement of investment property.
       For the purpose of depreciation or amortization method, the same amortization policy
       adopted for buildings as fixed assets and land use rights as intangible assets are used.

                                                         42
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
23     Fixed assets
 (1)   Recognition criteria for fixed assets

       Fixed assets mean tangible assets held for the purpose of producing goods, rendering of
       services, leases or operation management, whose service life is more than one fiscal year.
       Fixed assets satisfying the following conditions are recognized:

 (a)   The economic benefits associated with the fixed assets are likely to flow into the enterprise;
 (b)   The cost of the fixed asset can be measured in a reliable way.
       The Company's fixed assets are classified into buildings, machinery and equipment, office
       and electronic equipment, transportation vehicles and fixed assets renovation in line with
       capitalization conditions. Where each component of a fixed asset with a different service
       life provides economic benefits to the Company in different ways and applies different
       depreciation rates, it is recognized as a single fixed asset.
       Fixed assets are initially measured at cost. The cost of purchasing fixed assets includes the
       purchase price, related taxes, and other expenses attributable to the fixed asset before it is
       ready for the intended use, such as the expenses on transportation, handling, installat ion
       and professional services, etc. When determining the cost of fixed assets, discard expenses
       should be considered. Subsequent expenditures related to fixed assets that satisfy the
       recognition criteria of fixed assets are included in the cost of fixed assets; otherwise, they
       are recognized in profit and loss in the period in which they arise.
       Fixed assets are depreciated by the straight-line method. The depreciation rate of various
       fixed assets is determined according to the estimated service life and estimated residual
       value (the estimated residual value is 0-10% of the original value). The depreciation rate of
       classified fixed assets is as follows:
                                                                                               Annual
                                                                     Estimated Service
       Asset Category                                                                       Deprecia
                                                                                  Life
                                                                                            tion Rate

                                                                                             2.22%-
       Houses and buildings                                              20-50 years
                                                                                                 5%
                                                                                            11.11%-
       Machinery equipment                                                5-10 years
                                                                                                20%
                                                                                            22.22%-
       Office and electronic equipment                                     2-5 years
                                                                                                50%
                                                                                            22.22%-
       Transportation equipment                                            3-5 years
                                                                                             33.33%
                                                                                             4.44%-
       Photovoltaic power stations                                       20-25 years
                                                                                                 5%
                                                                                            22.22%-
       Others                                                              4-5 years
                                                                                                25%
       Fixed assets renovation is amortized evenly over the benefit period.
       All fixed assets are subject to depreciation, except for fixed assets that have been fully
       depreciated and continue to be used, and the land that is priced and recorded separately.
       Fixed assets are depreciated on a monthly basis. Fixed assets added are not depreciated in
       the current month when being added but from the following month; fixed assets reduced
       are still depreciated in the current month when being reduced, and no depreciation is made
       from the following month. Fixed assets that are not profitable for the Company or not used
       temporarily (other than seasonally deactivated) are recognized as idle fixed assets. The
       estimated life expectancy and depreciation rate of idle fixed assets should be re estimated,
       and depreciation is directly included in the current profit and loss.

                                                         43
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
24      Construction in progress
         Construction in progress refers to the necessary expenses incurred by the Company for
         the purchase and construction of fixed assets or investment property before being ready
         for the expected usable status, including engineering materials costs, labor costs, related
         taxes and fees, borrowing costs that should be capitalized and indirect costs that should
         be apportioned. Construction in progress is accounted for separately according to
         individual projects.
         After the construction in progress is ready for its intended use, it must be transferred to
         fixed assets or investment property, whether the final accounting procedures are
         completed or not.
25      Borrowing costs
       Borrowing costs refer to interest and other related costs incurred by the Company as a result
       of borrowings, including interest on borrowings, amortization of discounts or premiums,
       ancillary expenses, and exchange differences arising from foreign currency borrowings.
       Borrowing costs that can be directly attributable to the acquisition, construction or
       production of assets eligible for capitalization are capitalized and included in the relevant
       asset cost. Other borrowing costs are recognized as expenses in the period in which they
       are incurred, and are included in the current profit and loss. Assets eligible for capitalization
       refer to fixed assets, investment property and inventories (only refers to inventories with
       an acquisition, construction and production process for more than one year) that require a
       substantial period of acquisition, construction or production activities to get ready for the
       intended use or sale status.
       Borrowing costs refer to the interest of borrowings, the amortization of discounts or
       premiums, auxiliary expenses and exchange differences arising from foreign currency
       borrowings incurred by the Company. Borrowing costs begin to be capitalized when the
       following three conditions are all satisfied:
 (1)   Asset expenditure has occurred;
 (2)   Borrowing costs have occurred;
       The acquisition, construction or production activities necessary to enable the assets to be
 (3)
       ready for the intended usable or saleable state have commenced.
       When an asset satisfied the capitalization conditions is abnormally interrupted during the
       process of acquisition, construction or production and the interruption period lasts for more
       than three months, the capitalization of the borrowing costs is suspended and recognized
       as the current expenses until the acquisition, construction or production of the assets starts
       again. When an asset satisfied the capitalization conditions is ready for its intended use or
       sale, the capitalization is stopped and the borrowing costs incurred in the future are included
       in the current profit and loss. The period of capitalization refers to the period from the time
       when the borrowing costs start to be capitalized to the point when the capitalization is
       stopped, and the period in which the borrowing costs are suspended for capitalization is not
       included.
       During the period of capitalization, if special borrowings are made for the acquisition,
       construction or production of assets eligible for capitalization, the amount of the interest
       expenses actually incurred during the current period of the special borrowings, less the
       amount of interest income earned by depositing unused borrowing funds in a bank or
       investment income earned by temporary investment, is recognized as the amount of
       capitalization. When a general loan is occupied for the purpose of purchasing, constructing
       or producing assets satisfied the capitalization conditions, the amount of capitalization is
       determined according to the weighted average of the accumulated asset expenditure
       exceeding the special loan portion multiplied by the capitalization rate of the general loan
       occupied; the capitalization rate is determined based on the weighted average interest rate
       of general borrowings.

                                                           44
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
26     Right-of-use assets
       The Company initially measures right-of-use assets at cost. Such cost includes:

 (1)   The initial measurement amount of lease liabilities;

 (2)   Lease payments made on or before the commencement date of the lease term (if a lease
       incentive exists, net of the amount related to the lease incentive already taken);

 (3)   Initial direct costs incurred by the Company;

 (4)   Costs expected to be incurred by the Company to disassemble and remove the leased
       asset(s), restore the premises where the leased asset(s) is/are located, or restore the leased
       asset(s) to the condition agreed upon under the terms of the lease (excluding costs incurred
       to produce inventory).

       After the commencement date of the lease term, the Company uses the cost model for
       subsequent measurement of right-of-use assets.

       If it is reasonably certain that ownership of the leased asset(s) will be obtained at the end
       of the lease term, the Company depreciates the leased asset(s) over its/their remaining
       service life. If it is not reasonably certain that ownership of the leased asset(s) will be
       obtained at the end of the lease term, the Company depreciates the leased asset(s) over the
       lease term or the remaining service life of the leased asset(s), whichever is shorter. Right -
       of-use assets for which depreciation reserves have been accrued are depreciated in future
       periods at their carrying value net of depreciation reserves, with reference to the above
       principles.




                                                 45
                                 TCL Technology Group Corporation
                                     Notes to Financial Statements
                         For the period from January 1 to December 31, 2022
                               ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)

27     Intangible assets

       Intangible assets are recorded at the actual cost at the time of acquisition. The service life
       of intangible assets is analyzed and judged at the time of acquisition. Intangible assets with
       a finite service life are amortized on the shortest of the estimated service lives, the
       beneficial period of the contract and the effective period specified by law from the time
       when the intangible assets are available for use. The amortization period is as follows:

       Category                               Amortization years
                                              The shorter of the years of the land use rights and the
       Land use rights
                                              operating years of the Company
       Patents      and         non-patent    10 years or the shorter of service life, beneficiary
       technologies                           years and legally valid years
       Others                                 Beneficiary period

       The Company reviews the service life and amortization method of intangible assets with
       limited service life at least at the end of each year, and made adjustment if necessary.

       If an intangible asset is foreseen as unable to bring economic benefits to the Company, it
       is regarded as an intangible asset with an indefinite service life, which will be reviewed in
       each accounting period. If evidence indicates that the service life of the intangible asset is
       limited, then it is converted to an intangible asset with limited service life. Intangible assets
       with indefinite service lives are not amortized.

       The expenditures of the Company's internal research and development projects are
       classified into expenditures in the research phase and expenditures in the development
       phase. Research means an original, planned survey of acquiring and understanding new
       scientific or technical knowledge. Development means the application of research results
       or other knowledge to a plan or design to produce new or substantially improved materials,
       devices, products, etc. prior to commercial production or use.

       The expenditures in the research phase of the Company's internal research and
       development projects are included in the current profit and loss when incurred;
       expenditures in the development phase are recognized as intangible assets only when the
       following conditions are all satisfied:

 (1)   It is technically feasible to complete the intangible asset to enable it to be used or sold;

 (2)   There is intent to complete the intangible asset and use or sell it;

 (3)   The intangible assets can bring economic benefits;

 (4)   There are sufficient technical, financial and other resources to support the development of
       the intangible assets as well as ability to use or sell the intangible assets;
       Expenditures attributable to the development stage of the intangible asset can be measured
 (5)
       in a reliable way.
       If the above conditions cannot be all satisfied, the expenditures are included in the current
       profit and loss when incurred.




                                                  46
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
28      Long-term deferred expenses
       Long-term prepaid expenses refer to various expenses that the Company has paid and
       whose period of amortization is more than one year, such as the improvement expenses
       incurred in renting fixed assets by operating leases. Long-term prepaid expenses are
       amortized on a straight-line basis within the beneficial period of the expense items.
29      Impairment of long-lived assets
       The impairment of assets other than inventories, financial assets and deferred income tax
       assets is determined by the Company as follows:

       On the balance sheet date, if there is evidence indicating that the asset is idle, there is a use
       termination plan or the market price drops sharply, or the external environment changes
       significantly, impairment tests should be conducted. The difference between the
       recoverable amount of the asset and its book value is recognized as impairment loss and
       included in the current profit and loss, and corresponding allowance for asset impairment
       is made. For the goodwill formed by business combination and the intangible assets with
       indefinite service life, impairment test is carried out every year regardless of whether there
       is any indication of impairment. The recoverable amount is determined based on the net
       amount of fair value of assets less the disposal expenses, or the present value of estimated
       future cash flows of the assets, whichever is lower. The Company estimates the recoverable
       amount based on the individual assets. If it is difficult to estimate the recoverable amount
       of the individual assets, the recoverable amount of the asset is determined based on the
       asset group to which the asset belongs. After the asset impairment loss is recognized, the
       depreciation or amortization expense of the impaired assets will be adjusted accordingly in
       the future period.

       Once the asset impairment loss is confirmed, it cannot be reversed in the future accounting
       period.

       Treatment of goodwill impairment: in the impairment test of goodwill, the book value of
       goodwill is apportioned to the asset group or asset group portfolio expected to benefit from
       the synergy of business combination, and the book value of goodwill is apportioned to the
       relevant asset group or asset group combination in a reasonable way. In the case of
       impairment test, the asset group or asset group portfolio that does not contain goodwill is
       tested for impairment first to confirm the corresponding asset impairment loss, and then
       the asset group or asset group containing goodwill is tested for impairment to confirm the
       corresponding goodwill impairment loss.
30      Asset transfer with repurchase conditions
       When the Company sells products or transfers other assets, it signs a product or a transfer
       asset repurchase agreement with the purchaser, and determines whether the sales
       commodity satisfies the revenue recognition conditions according to the terms of the
       agreement. If the after-sales repurchase is a financing transaction, the Company does not
       recognize the sales revenue when the product or asset is delivered. If the repurchase price
       is greater than the difference between the sales prices, interest of the difference is accrued
       on time during the repurchase period, and included in finance costs.
31      Contract liabilities
       The Company recognizes as contract liabilities the part of the obligation to transfer the
       goods to the customer due to received or receivable consideration from the customer.




                                                  47
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
32      Employee benefits
       Employee benefits include short-term employee benefits, post-employment benefits,
       termination benefits and other long-term employee benefits provided in various forms of
       consideration in exchange for service rendered by employees or compensations for the
       termination of employment relationship.

 (a)   Short-term employee benefits

       Short-term employee benefits include employee wages or salaries, bonus, allowances and
       subsidies, staff welfare, premiums or contributions on medical insurance, work injury
       insurance and maternity insurance, housing funds, union running costs and employee
       education costs, and short-term paid absences. The employee benefit liabilities are
       recognized in the accounting period in which the service is rendered by the employees,
       with a corresponding charge to the profit or loss for the current period or the cost of
       relevant assets. Non-monetary benefits are measured at their fair value.

 (b)   Post-employment benefits

       The Company classifies post-employment benefit plans as either defined contribution
       plans or defined benefit plans. Defined contribution plans are post-employment benefit
       plans under which the Company pays fixed contributions into a separate fund and will have
       no obligation to pay further contributions; and defined benefit plans are post-employment
       benefit plans other than defined contribution plans. During the Reporting Period, the
       Company’s defined contribution plans mainly include basic pensions and unemployment
       insurance.

 (c)   Termination benefits

       If the Company terminates the labor relationship with an employee before the labor
       contract expires, or offers compensation for encouraging the employee to accept the
       redundancies voluntarily, the liabilities arising from compensation for the termination of
       labor relations with the employee is determined, and also included in the current profit and
       loss, at the time when the Company cannot unilaterally withdraw the termination of the
       labor relationship plan or redundancies proposal, or the time when the cost associated with
       reorganization involving payment of termination benefits is confirmed, whichever is
       earlier.

 (d)   Other long-term employee benefits

       Other long-term employee benefits refer to all employee benefits except short-term
       employment benefits, post-employment benefits and termination benefits.




                                                48
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
33     Estimated liabilities
       When the Company is involved in any litigation, debt guarantee, contract loss or
       reorganization, which is likely in need of future delivery of assets or rendering of services,
       and the amount of which can be measured in a reliable way, it is recognized as provision.

 (1)   Recognition standards for provision

       When an obligation related to the contingent events satisfies all the following conditions,
       it is recognized by the Company as provision:

 (a)   The obligation is the current obligation of the Company;

       The fulfillment of the obligation is likely to cause economic benefits to flow out of the
 (b)
       Company;

 (c)   The amount of the obligation can be measured in a reliable way.

 (2)   Measurement methods for provision

       The provision of the Company are initially measured on the basis of the best estimate of
       the expenditure required to perform the relevant current obligations.

       When determining the best estimate, the Company considers factors such as risks,
       uncertainties and time value of money related to contingent events. Where the time value
       of money has a significant impact, the best estimate is determined by discounting the
       relevant future cash outflows.

       The best estimates are handled as follows:

       In case there is a continuous range (or interval) of required expenditures, within which the
       possibility of occurrence of various results is the same, the best estimate is determined by
       the average of the middle value of the range, that is, the average of the upper and lower
       limits.

       In case there is no continuous range (or interval) of required expenditures, or there is a
       continuous range but the possibility of various results in the range is different, if the
       contingency involves a single item, the best estimate is determined based on the most
       probable amount; if a contingency involves multiple items, the best estimate is determined
       based on various possible outcomes and associated probabilities.

       If all or part of the expenses required by the Company to settle the provision are expected
       to be compensated by a third party, the compensation amount is separately recognized as
       an asset when it is basically confirmed to be received, and the recognized compensation
       amount should not exceed the book value of provision.




                                                 49
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
34      Lease liabilities
       The Company initially measures lease liabilities at the present value of the lease payments
       outstanding on the commencement date of the lease term. When calculating the present
       value of lease payments, the Company uses the interest rate implicit in lease as the rate of
       discount. If the implicit interest rate of the lease cannot be determined, the incremental loan
       interest rate of the Company shall be used as the discount rate. Lease payments include:

       The amount of fixed payments, net of amounts related to lease incentives, and the amount
 (a)
       of substantive fixed payments;

 (b)   Variable lease payments that depend on indexation or ratio;

       The exercise price of the purchase option, when applicable, if the Company is reasonably
 (c)
       certain that the option will be exercised;

 (d)   The amount required to be paid to exercise the option to terminate the lease if the lease
       term reflects that the Company will exercise the option to terminate the lease;

       The estimated amount payable based on the secured residual value provided by the
 (e)
       Company.

       The Company calculates the interest expenses of lease liabilities for each period within the
       lease term at a fixed rate of discount and includes them in profit or loss for the current
       period or cost of the related assets.

       Variable lease payments that are not included in the measurement of lease liabilities should
       be included in profit or loss for the current period or cost of the related assets when they
       are actually incurred.
35      Share-based payments
       The share-based payments of the Company are mainly equity-settled share-based payments,
       and only allow to be exercised by employees after the completion of their services in the
       waiting period. On each balance sheet date in the waiting period, based on the best estimate
       of the number of vesting equity instruments, the services obtained in the current period are
       included in the relevant costs or expenses and capital reserve based on the fair value at the
       grant date of the equity instruments.

       The fair value of equity instruments is determined by the external appraiser or management
       based on the binomial distribution method. The best estimate of the vesting equity
       instrument is determined by the management based on historical statistics on the vesting
       weights and turnover rates on the balance sheet date.
       Equity-settled share-based payments are measured based on the fair value of the equity
       instruments granted to employees. In case that the vesting right is available immediately
       after the grant, it is included in relevant cost or expense based on the fair value of the equity
       instrument on the grant date, and the capital reserve is increased accordingly. In case that
       the vesting right is available after the completion of services in the waiting period or
       satisfaction of stipulated performance conditions, on each balance sheet day during the
       waiting period, the services acquired in the current period are included into the relevant
       costs or expenses and capital reserve on the basis of the best estimate of the number of
       feasible equity instruments and at the fair value of the date on which the equity instruments
       are granted. No adjustments are made to the identified related costs or expenses or total
       owners' equity after the vesting date.

                                                  50
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
36      Revenue recognition
       The Company shall recognize the revenue according to the transaction price assigned to
       the performance obligation when any due performance obligation is fulfilled (namely when
       the client obtains the control over relevant commodities or services).

 (1)   General principles applied to revenue recognition

       The Company shall recognize the revenue according to the transaction price assigned to
       the performance obligation when any due performance obligation is fulfilled (namely when
       the client obtains the control over relevant commodities or services). Performance
       Obligation means that, under the contract, the Company promises to transfer commodities
       or services that can be clearly distinguished to the client. “Obtain the control over relevant
       commodities or services” refers to the ability to completely dominate the use of
       commodities and obtain almost all economic benefits. From the contract’s effectiveness
       date, the Company shall evaluate the contract, recognize each single performance
       obligation included and determine whether each performance obligation is fulfilled within
       a certain period or at a time point.

       When any of the following conditions is met, for performance obligation to be fulfilled
       within a certain period, the Company shall recognize corresponding revenue within the
       period as scheduled:

       While fulfilling the due obligation in the Company, the client obtains and consumes the
 (a)
       resulting economic benefit;

       The client is able to control the commodities under construction during the Company’s
 (b)
       fulfillment;

 (c)   Commodities generated from the Company’s fulfillment possess irreplaceable purpose and
       the Company has the right to charge all fulfilled performance obligations within the whole
       contract period; otherwise, the Company shall recognize corresponding revenue when the
       client obtains the control over relevant commodities or services.

       For any performance obligation with a certain period, the Company shall apply the output
       method/input method to determine the appropriate fulfillment schedule based on the
       specific nature of commodities and services. The output method is to determine the
       fulfillment schedule according to the value of commodities transferred to the client (while
       the input method is to determine the fulfillment schedule according to the Company’s input
       to fulfill the performance obligation). If the fulfillment schedule cannot be reasonably
       determined and the Company’s costs are predicted to be compensated, corresponding
       revenue shall be recognized based on the specific cost amount until the fulfillment schedule
       could be reasonably determined.




                                                 51
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

III   Significant accounting policies and accounting estimates (continued)

36    Revenue recognition (continued)
(2)   Principles of handling revenues from specific transactions
(a)   For the contract containing the sales return article: When the client obtains the control over
      relevant commodities, corresponding revenue shall be recognized according to the
      consideration amount (excluding the amount predicted to be returned due to sales return)
      predicted to be duly charged from transferring commodities to the client, and corresponding
      liabilities shall be recognized based on the amount predicted to be returned due to sales
      return. Meanwhile, when commodities are sold, the balance through deducting the
      predicted cost from taking back commodities from the book value of commodities
      predicted to be returned (including the impairment of value of returned commodities) shall
      be checked and calculated under “Returned Commodities Cost Receivable”.
(b)   For the contract containing the quality assurance article: it’s required to evaluate whether
      the quality assurance involves any separable service except for the promise (to the client)
      that commodities conform to established standards. If the Company provides additional
      service, it shall be deemed as a single performance obligation and subject to the accounting
      treatment according to relevant revenue criteria provisions; otherwise, the quality
      assurance liability shall be subject to the accounting treatment according to the accounting
      criteria provisions on Contingency.
(c)   For the sales contract containing the client’s additional purchase option: the Company shall
      evaluate whether the option provides the client with any significant right. If any, it shall be
      deemed as a single performance obligation and the transaction price shall be apportioned
      to the performance obligation, and corresponding revenues shall be recognized when the
      client executes the purchase option right and obtains the control over relevant commodities
      in the future or when the option becomes invalid. If the separable selling price applied to
      the client’s additional purchase option right cannot be directly observed, it’s required to
      comprehensively consider the difference in discounts between the client’s execution of
      option right and the client’s non-execution of option right and analyze the possibility for
      the client to execute the option right and other relevant information. Then, corresponding
      reasonable estimate shall be made.
(d)   The contract licensing the IP right to the client: It’s required to evaluate whether the IP
      right license constitutes any single performance obligation; if any, it is necessary to
      determine whether the performance obligation fulfillment is fulfilled within a certain period
      or at a time point. If any IP right license is granted to the client and royalties are charged
      based on the client’s actual sales or usage, corresponding revenues shall be recognized at a
      later time between the following dates: the day when the client’s subsequent selling or
      usage occurs; the day when the Company fulfills relevant performance obligations.
(3)   Specific revenue recognition method
(a)   Product sales contract
      According to the contract terms, for the selling of products subject to performance
      obligation fulfillment conditions at a time point and other products, the Company shall
      recognize the realization of sales revenues when the client obtains the control over relevant
      commodities or services according to the delivery condition agreed in the sales contract
      upon signed by the client after commodities are received.

(b)   Technical service contract
      If revenues are recognized within a certain period based on the technical service contract,
      corresponding revenues shall be recognized according to the performance schedule.
(c)   Royalties income
      Accounted for according to the time and method of charging as stipulated in the relevant
      contract or agreement.

                                                52
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)

 36    Revenue recognition (continued)

 (3)   Specific revenue recognition method (continued)

 (d)   Revenue from photovoltaic power stations

       a. Centralized power stations: Power stations are combined to the grid. The income will be
       confirmed based on the documents on power supply provided by the business departments
       of the Company, after the duration of continuous and trouble-free operation specified by
       the electric power company is met. b. Distributed power stations: Power stations are
       combined to the grid. The income will be confirmed based on the documents on settlement
       provided by the business departments of the Company.
37      Contract costs
 (1)   Contract performance cost

       For the cost resulting from performing the contract which is not included in other ASBE
       except the revenue standards and meets the following conditions, the Company shall
       recognize it as an asset :

 (a)   The cost is directly related to a current or predicted contract, including the direct labor,
       direct material and manufacturing expenses (or similar expenses), the cost borne by the
       client and other costs resulting from the contract;

       The cost adds various resources that can be applied by the Company to fulfill due
 (b)
       performance obligations.

 (c)   The cost is predicted to be recovered.

       The asset shall be presented and reported in inventory or other non-current assets, which
       depends on whether the amortization period exceeds a normal operating cycle during the
       initial recognition.

 (2)   Contract acquisition cost

       If the increment cost resulting from the Company’s acquisition of contract is predicted to
       be recovered, it shall be recognized as an asset as the contract acquisition cost. Increment
       Cost refers to the cost which only results from the contract acquisition, like the sales
       commission. If the amortization period is less than one year, it shall be included in current
       profit and loss.

 (3)   Contract cost amortization

       The asset related to the contract cost shall adopt the same basis for the recognition of
       commodities or services revenues related to the asset, be amortized during the period of
       fulfilling the performance obligation or according to the fulfillment schedule and be
       included into current profit and loss.




                                                53
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)

 37    Contract costs (continued)

 (4)   Impairment of contract costs

       For the asset related to the contract cost as mentioned above, if the book value is higher
       than the difference between the residual consideration predicted to be obtained from the
       Company’s transfer of commodities related to the asset and the cost to be incurred due to
       such transfer, depreciation reserves shall be calculated and withdrawn for the surplus which
       shall also be recognized as the asset impairment loss.
       After the impairment allowances is established, if changes in depreciation factors during
       previous periods have made the above difference higher than the asset’s book value, it shall
       be restituted to previously established asset impairment allowances and included in current
       profit and loss. However, the book value of restituted assets shall not exceed the book value
       of the asset on the date of restitution without establishing impairment allowances.
38      Government grants
 (1)   Type of change

       Government grants are transfers of monetary or non-monetary assets from the government
       to the Group at nil consideration. According to the grants targets stipulated in the relevant
       government documents, government grants are classified into government grants related to
       assets and government grants related to income.
 (2)   Recognition of government grants
       If a government grant is a monetary asset, it is measured at the amount received or
       receivable. If a government grant is a non-monetary asset, it is measured at fair value. If
       the fair value cannot be obtained in a reliable way, it is measured at the nominal amount
       (RMB1). Government grants measured at nominal amounts are recognized directly in the
       current profits and losses.
 (3)   Accounting treatment
       Government grants related to assets offset the book value of the underlying assets.
       If the government grants related to income are used to compensate related costs or losses
       in the subsequent period, it is recognized as deferred income and included in the current
       profit and loss or offset costs in the period in which the related costs or losses are
       recognized; government grants used to compensate costs or losses incurred by the
       enterprise are directly included in the current profits or losses or offset related costs. For
       government grants related to the day-to-day activities of the enterprise, the R&D and VAT -
       related subsidies and the taxation, or operation-based incentive government subsidies are
       included in other income; other government grants are written off against related costs
       based on the substance of economic activities. Government grants not related to daily
       activities of the Company are included in the non-operating income and expenditure. For
       preferential loans for policy discount, if the government finance department appropriates
       the discounted funds to the lending bank, the borrowing cost is accounted for according to
       the principal of the loan and the policy preferential interest rate, with the amount actually
       received as the entry value of the loan. If the government finance department directly
       appropriates the interest grant funds to the Company, the grants offset the related borrowing
       costs.
       In case that a confirmed government grant is required to be returned, the book value of the
       asset is adjusted if the book value of relevant assets is offset at the initial recognition; if
       there is related deferred income, the book balance of deferred income is offset, and the
       excess is included in the current profit and loss; in case of other circumstances, it is directly
       included in the current profit and loss.

                                                  54
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
39      Deferred income tax assets and deferred income tax liabilities
       The income taxes of the Company include current income tax and deferred income tax. Both
       current income tax and deferred income tax are recognized in the current profit and loss as
       income tax expense or gain, except for the following:

 (1)   Adjusting goodwill due to income tax arising from business combination;

       Income tax related to transactions or events directly included in shareholders' equity is included
 (2)   in shareholders’ equity.

       On the balance sheet date, the Company recognizes the deferred income tax assets or deferred
       income tax liabilities in accordance with the balance sheet liability method on temporary
       differences between the book value of assets or liabilities and their tax base.

       The Company recognizes all taxable temporary differences as deferred tax liabilities except the
       taxable temporary differences incurred in the following transactions:

 (1)   Initial recognition of goodwill; or initial recognition of assets or liabilities arising from
       transactions with the following characteristics: the transaction is not a business combination,
       and does not affect the accounting profits or the amount of taxable income which occurs;

 (2)   For taxable temporary differences related to investments in subsidiaries, associates and joint
       ventures, the timing of the reversal of the temporary differences can be controlled and the
       temporary differences are unlikely to be reversed in the foreseeable future.
       The Company recognizes deferred income tax assets arising from deductible temporary
       differences, subject to the amount of taxable income likely to be obtained to offset the
       deductible temporary differences, except the deductible temporary differences incurred in the
       following transactions:
       The transaction is not a business combination, and does not affect the accounting profits or the
 (1)
       amount of taxable income when occurs;
 (2)   The deductible temporary differences related to investment in subsidiaries, associates and joint
       ventures cannot satisfy all the following: the temporary differences are likely to be reversed in
       the foreseeable future and are likely to be used for deduction of deductible taxable income for
       temporary differences in the future.
       On the balance sheet date, the Company measures the deferred income tax assets and deferred
       income tax liabilities according to the tax law based on the applicable tax rate during the period
       of expectation of recovering the assets or paying off the liabilities, and reflects the income tax
       impact of the expected recovery of assets or liquidation of liabilities on the balance sheet date.
       On the balance sheet date, the Company reviews the book value of deferred income tax assets.
       If it is probable that no sufficient taxable income will be available in the future to offset the
       benefits of deferred tax assets, the book value of deferred tax assets is written down. When it
       is probable that sufficient taxable income will be available, the amount written-down will be
       reversed.
       Deferred income tax assets and liabilities are presented on a net basis after, provided the
       following conditions are met:
 (1)   An enterprise has the legal right to settle current income tax assets and liabilities on a net basis;
       Deferred income tax assets and liabilities relate to income taxes levied by the same taxing
       authority on either the same taxable entity or different taxable entities which intend to either
       settle current tax assets and liabilities on a net basis, or to realize the assets and settle the
 (2)
       liabilities simultaneously, in each future period in which significant amounts of deferred tax
       assets or liabilities are reversed.



                                                    55
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________

 III    Significant accounting policies and accounting estimates (continued)
40       Leases
        From the effectiveness date of a contract, the Company assesses whether the contract is a
        lease or includes any lease. If a party to the contract transfers the right allowing the control
        over the use of one or more assets that have been identified within a certain period, in
        exchange for a consideration, such contract is a lease or includes a lease.
 (1)    Lease contract split
        If a contract contains multiple single leases at the same time, the Company will split the
        contract, and conduct accounting treatment of each single lease respectively.
        If a contract contains both lease and non-lease parts at the same time, the Company will
        split the lease and non-lease parts, conduct accounting treatment of the lease part in
        accordance with the accounting standards governing leases, and conduct accounting
        treatment of the non-lease part in accordance with other applicable corporate accounting
        standards.
 (2)    Lease contract combination
        With regard to two or multiple contracts containing leases concluded by the Company with
        the same counterparty or its related parties at the same or a similar time, when any of the
        following conditions is met, the contracts are combined into one contract for accounting
        treatment:

        Two or multiple contracts are concluded based on an overall business purpose and
  (a)   constitute a package deal, and if they are not considered as a whole, the overall business
        purpose cannot be understood.

        The consideration amount of one contract among the two or multiple contracts depends on
  (b)
        the pricing or performance of other contracts.

  (c)   The rights to use assets transferred by the two or multiple contracts constitute one single
        lease.

 (3)    Accounting treatment with the Company as lessee

        On the commencement date of the lease term, the Company recognises the right-of-use
        assets and lease liabilities for the lease, unless it is a simplified short-term lease or low-
        value asset lease.

 (a)    Short-term leases and low-value asset leases

        A short-term lease refers to a lease that does not include a purchase option and whose lease
        term does not exceed 12 months. A low-value asset lease refers to a lease where the value
        will be low when a single leased asset is a new asset.

        The Company does not recognize the right-of-use assets or lease liabilities for the
        following short-term leases and low-value asset leases. In each period within the lease
        term, the relevant lease payments are included in cost of the related assets or profit or loss
        for the current period on a straightline basis or according to other systemic and reasonable
        methods.
                 Item                                Simplified leased asset type
        Short-term lease        A lease whose lease term does not exceed 12 months from the
                                commencement date of the lease term
        Low-value asset         An asset lease with a value of less than RMB40,000 or its foreign
        lease                   currency equivalents

                                                   56
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
40      Leases (continued)
 (3)   Accounting treatment with the Company as lessee (continued)
       The Company recognises the right-of-use assets and lease liabilities for short-term leases and
       low-value asset leases other than those mentioned above.
       The accounting policies for right-of-use assets and lease liabilities are detailed in Note III, 26
 (b)
       and Note III, 34.
 (4)   Accounting treatment with the Company as lessor
 (a)   Lease classification:
       The Company classifies leases into finance leases and operating leases at the inception of leases.
       A finance lease refers to a lease where almost all the risks and rewards, related to the ownership
       of the leased asset(s), are substantially transferred, regardless of whether the ownership is
       transferred eventually. An operating lease refers to all leases other than finance leases.
       Usually, the Company classifies a lease that meets any one or more of the following conditions
       as a finance lease:
       1) Upon expiry of the lease term, the ownership of the leased asset(s) is transferred to the lessee.
       2) The lessee has the option to purchase the leased assets. As the agreed purchase price is low
       enough compared with the fair value of the leased asset(s) at the time the option is expected to
       be exercised, it can be reasonably determined at the inception of the lease that the lessee will
       exercise the option.
       3) Although the ownership of the asset(s) is not transferred, the lease term accounts for the
       majority of the service life of the leased asset(s).
       4) At the inception of the lease, the present value of the lease payments receivable is almost
       equal to the fair value of the leased asset(s).
       5) The leased asset(s) is/are special in nature and can be only used by the lessee, unless there is
       a large alteration.
       The Company may also classify a lease that falls under any one or more of the following
       circumstances as a finance lease:
       1) If the lessee cancels the lease, losses to the lessor caused by the cancellation will be borne
       by the lessee.
       2) Gains or losses arising from fluctuations in the fair value of the residual value of the leased
       asset(s) are borne by the lessee.
       3) The lessee is able to renew the lease with a rental far lower than the market level to the next
       term.
 (b)   Accounting treatment of finance leases
       On the commencement date of the lease term, the Company recognises the finance lease
       receivables for the finance lease and derecognises the leased asset(s) of the finance lease.
       In the initial measurement of finance lease receivables, the sum of the unsecured residual value
       and the present value of the lease payments receivable not yet received on the commencement
       date of the lease term discounted at the interest rate implicit in lease is the entry value of the
       finance lease receivables. Lease payments receivable include:
       1) The amount of fixed payments, net of amounts related to lease incentives, and the amount of
       substantive fixed payments;
       2) Variable lease payments that depend on indexation or ratios;
       3) The exercise price of the purchase option, when applicable, if it is reasonably certain that the
       lessee will exercise the purchase option;
       4) The amount required to be paid by the lessee to exercise the option to terminate the lease if
       the lease term reflects that the lessee will exercise the option to terminate the lease;
       5) Secured residual value provided to the lessor by the lessee, a party related to the lessee, or
       an independent third party that has the financial ability to perform the security provision
       obligation.
       The received variable lease payments that are not included in the measurement of the net
       investment in the lease are included in profit or loss for the current period when they are actually
       incurred.


                                                   57
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
40     Leases (continued)
 (4)   Accounting treatment with the Company as lessor (continued)

 (c)   Accounting treatment of operating leases

       For each period of the lease term, the Company adopts the straight-line method or other
       systematic and reasonable methods to recognize the lease receipts of the operating lease as
       rental income; the Company capitalizes the initial direct expenses incurred in connection
       with the operating lease, amortizes them over the lease term on the same basis as that for
       the recognition of the rental income, and includes them in the current profit and loss by
       stage; the Company includes the variable lease payments, obtained in connection with the
       operating lease that are not included in the lease receipts, in the current profit and loss when
       actually incurred.

 (5)   Sale and leaseback

 (a)   The Company as seller and lessee

       If the asset transfer in a sale and leaseback transaction is a sale, the Company will measure
       the right-of-use assets formed by the sale and leaseback based on the portion of the original
       asset’s carrying value that is related to the use right acquired by the leaseback, and
       recognise related gains or losses only for the right transferred to the lessor. If the fair value
       of the sales consideration is different from the fair value of the asset, or if the lessor does
       not charge the rent at the market price, the Company will conduct accounting treatment
       with the sales consideration amount below the market price as the prepaid rent, or the
       amount above the market price as the additional financing provided by the lessor to the
       lessee; at the same time, the relevant sales gains or losses will be adjusted based on the fair
       value.
       If the asset transfer in a sale and leaseback transaction is not a sale, the Company will
       continue to recognise the transferred asset and at the same time recognise a financial
       liability equivalent to the transfer income.


 (b)   The Company as buyer and lessor

       If the asset transfer in a sale and leaseback transaction is a sale, the Company will conduct
       corresponding accounting treatment for asset purchase and apply the accounting standards
       governing leases to the accounting treatment of the asset lease. If the fair value of the sales
       consideration is different from the fair value of the asset, or if the Company does not charge
       the rent at the market price, the Company will conduct accounting treatment with the sales
       consideration amount below the market price as the pre-collected rent, or the amount above
       the market price as the additional financing provided by the Company to the lessee; at the
       same time, the rental receipt will be adjusted based on the market price.
       If the asset transfer in a sale and leaseback transaction is not a sale, the Company will
       recognise a financial asset equivalent to the transfer income.
41      Related parties
       If one party controls, commonly controls or exerts a significant influence on the other party,
       and two or more parties are under the control, common control or significant influence of
       the other party, they constitute related parties.




                                                  58
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
42      Discontinued operations
       The Company recognizes a component disposed of or classified as a component that can be
       separately distinguished from the category held for sale and satisfies any of the following as a
       component of discontinued operations: (1) The component represents an independent major
       business or a separate major business area; (2) This component is part of a related plan to
       dispose of an independent major business or a separate major operating area; (3) This
       component is a subsidiary that is acquired for resale. Operating profit and loss, such as
       impairment losses for discontinued operations and the amount reversed, and disposal profit
       and loss are presented in the income statement as profit and loss of discontinued operations.
43      Changes to major accounting policies and estimates
 (1)   Change of accounting policy

       Impact of the adoption of the Interpretation to Accounting Standards for Business
 (a)
       Enterprises No. 15 on the Company

       On December 31, 2021, the Ministry of Finance issued the Interpretation to Accounting
       Standards for Business Enterprises No. 15(Cai Kuai [2021] No. 35, hereinafter referred to
       as the "Interpretation No. 15"). Interpretation No. 15 outlined that "the accounting
       treatment of the external sales of products or by-products produced before the fixed assets
       reach the intended serviceable state or during the R&D process" (hereinafter referred to as
       "trial sales") and "the judgment on loss-making contracts", effective from January 1, 2022.

       ①Accounting treatment of the external sales of products or by-products produced before
       the fixed assets reach the intended serviceable state or during the R&D process

       For trial sales that occurred from January 1, 2021 to the first implementation date, the
       Company has made retrospective adjustments in accordance with Interpretation No. 15.

       According to the provisions of Interpretation No. 15, the Company adjusted the relevant
       items of the balance sheet as follows:

                                                    December 31, 2021
       Balance Sheet items                              Accumulated amount                   After the
                                  Before the Change
                                                      impacted before change                  Change
       Fixed assets                       113,579,297                         19,486      113,598,783
       Deferred income tax
       assets                               2,153,346                         (2,923)       2,150,423
       Retained earnings                   22,458,340                           6,810      22,465,150
       Non-controlling
       interests                           76,611,057                          9,753       76,620,810




                                                  59
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

 III   Significant accounting policies and accounting estimates (continued)
43      Changes to Major Accounting Policies and Estimates (continued)
 (1)   Changes to Accounting Policies (continued)
       The Company adjusted the relevant items presented in the income statement and the cash
       flow statement as follows:
       Items presented in                                    2021
       the income statement                                Accumulated amount
                                                                                     After the
       and      cash    flow         Before the Change          impacted before
                                                                                      Change
       statement                                                          change
       Revenue                              163,540,560                  117,140  163,657,700
       Cost of sales                        131,058,658                   97,656  131,156,314
       Income tax expense                     2,605,125                    2,923    2,608,048

       ② Judgment on onerous contracts

       The Company has not fulfilled all obligations when it first implemented Interpretation No.
       15 (January 1, 2022), and the implementation of this provision has no significant impact on
       the Company's financial statements for comparable periods.

       Impact of the adoption of Interpretation to Accounting Standards for Business Enterprises
 (b)
       No. 16 on the Company

       On December 13, 2022, the Ministry of Finance ("MOF") issued the Interpretation No. 16
       of the Accounting Standards for Business Enterprises (CK [2022] No. 31, hereinafter
       referred to as the "Interpretation No. 16"), clarifying the acocunting treatment for three
       items thereof:: "Accounting treatment that the deferred income taxes associated with assets
       and liabilities arising from a single transaction is not subject to the initial recognition
       exemption" is effective from January 1, 2023, which allows companies to implement the
       exemption earlier than the year of publication, but the Company did not implement the
       accounting treatment earlier than the year of publication; "Accounting treatment for the
       income tax effect of dividends related to financial instruments classified as equity
       instruments by the Issuer” and "Accounting treatment for the revision of cash-settled share-
       based payment to equity-settled share-based payment" are effective as of the date of
       publication. The Implementation Interpretation No. 16 has no significant impact on the
       consolidated financial statements and the Company's financial statements.

 (2)   Changes to accounting estimates

       No significant change occurred to the major accounting estimates in the Reporting Period.
44     Correction of previous accounting errors
       No previous accounting errors were identified and corrected in the Reporting Period.




                                                60
                            TCL Technology Group Corporation
                                Notes to Financial Statements
                    For the period from January 1 to December 31, 2022
                          ___________(RMB’000)_____________

IV Taxes

 1   Value-added tax

     In the Reporting Period, output tax was calculated at 3%, 5%, 6%, 9% or 13% of the
     taxable income of general taxpayers and the value added-tax was paid based on the
     difference after deducting the allowance deduction of input tax in the current period. The
     value added-tax payment for the Company’s directly exported goods is executed in
     accordance with the regulations of “Exemption, Offset and Refund”. The tax refund rate
     is 0%-13%.

 2   Urban maintenance and construction tax

     Subject to the relevant tax laws and regulations of the state and local regulations, urban
     maintenance and construction tax is paid based on the proportion stipulated by the state
     according to the individual circumstances of each member of the Company.

 3   Education surcharges

     Education surcharges are paid according to the individual circumstances of each member
     of the Company based on the proportion stipulated by the state in accordance with the
     relevant national tax regulations and local regulations.

 4   Property tax

     Property tax is paid on the houses with property rights according to the proportion
     stipulated by the state in accordance with the relevant national tax regulations and local
     regulations.




                                              61
                             TCL Technology Group Corporation
                                 Notes to Financial Statements
                     For the period from January 1 to December 31, 2022
                           ___________(RMB’000)_____________

IV Taxes (continued)

6   Corporate income tax
    The corporate income tax rate for the Company was 15% in the current period.
    According to Article 28 of the Enterprise Income Tax Law of the People's Republic of China,
    a reduced corporate income tax rate of 15% is applied to important high-tech enterprises that
    the government supports.
    According to the Announcement on Further Implementing Preferential Income Tax Policies
    for Small and Micro Enterprises issued by the Ministry of Finance and the State
    Administration of Taxation on March 14, 2022 (Announcement No. 13 [2022] of the Ministry
    of Finance and the State Administration of Taxation), from January 1, 2022 to December 31,
    2024, the annual taxable income of small and low-profit enterprises exceeding RMB1 million
    but at no more than RMB3 million will be included in the taxable income at a reduced rate of
    25%, and the enterprise income tax will be paid at the rate of 20%.
    Except for the following subsidiaries entitling to preferential tax treatment and the overseas
    subsidies that adopt local applicable tax rate, other entities under the Company are subject to
    the applicable tax rate of 25%, or the preferential tax rate for small and micro enterprises.

    Subsidiaries entitled to tax preferences:
                                                          Preferential
    Company Name                                                           Reason
                                                              tax rate
    TCL China Star Optoelectronics Technology Co.,
                                                                 15%       High-tech enterprise
    Ltd.
    Shenzhen       China       Star     Optoelectronics
                                                                 15%       High-tech enterprise
    Semiconductor Display Technology Co., Ltd.
    Wuhan China Star Optoelectronics Technology Co.,
                                                                 15%       High-tech enterprise
    Ltd.
    Wuhan China Star Optoelectronics Semiconductor
                                                                 15%       High-tech enterprise
    Display Technology Co., Ltd.
    Suzhou China Star Optoelectronics Technology Co.,
                                                                 15%       High-tech enterprise
    Ltd.
    Shenzhen TCL High-Tech Development Co., Ltd.                 15%       High-tech enterprise
    Qingdao Blue Business Consulting Co., Ltd.                   15%       High-tech enterprise
    Tianjin          Huan'Ou             Semiconductor
                                                                 15%       High-tech enterprise
    Material&Technology Co., Ltd.
    TianJin            Zhonghuan             Advanced
                                                                 15%       High-tech enterprise
    Material&Technology Co., Ltd.
    Inner Mongolia Zhonghuan Solar Material Co., Ltd.            15%       High-tech enterprise
    Huansheng Solar (Jiangsu) Co., Ltd.                          15%       High-tech enterprise
    Zhangjiakou Huan? Ou International New Energy
                                                                 15%       High-tech enterprise
    Technology Co., Ltd.
    Wuxi Zhonghuan Applied Materials Co., Ltd.                   15%       High-tech enterprise
    Tianjin Huanzhi New Energy Technology Co., Ltd.              15%       High-tech enterprise
    Tianjin Printronics Circuit Corporation                      15%       High-tech enterprise
    Tianjin Huanbo Science and Technology Co., Ltd.              15%       High-tech enterprise
    Tianjin Zhonghuan Electronics Computer Co., Ltd.             15%       High-tech enterprise
    Guangdong TCL New Technology Co., Ltd.                       15%       High-tech enterprise
    Shenzhen Qianhai Maojia Software Technology Co.,
                                                                 15%       High-tech enterprise
    Ltd.
                                                                           High-tech enterprise,
    Inner Mongolia Zhonghuan Crystal Materials Co.,
                                                                 15%       encouraged business in
    Ltd.
                                                                           West China




                                                62
                             TCL Technology Group Corporation
                                 Notes to Financial Statements
                     For the period from January 1 to December 31, 2022
                           ___________(RMB’000)_____________

IV   Taxes (continued)
6    Corporate income tax (continued)
                                           Preferential
     Company Name                                         Reason
                                               tax rate
     Ningxia Zhonghuan Solar Material
                                                    15%   Encouraged business in West China
     Co., Ltd.
                                                          State-supported public infrastructure
     Phase I projects of Hohhot Huanju
                                                    15%   project, encouraged business in West
     New Energy Development Co., Ltd.
                                                          China
     Phase II and Phase III projects of                   State-supported public infrastructure
     Hohhot Huanju        New Energy             7.5%     project, encouraged business in West
     Development Co., Ltd.                                China
     Inner Mongolia Zhonghuan Advanced
                                                12.5%     Encouraged business in West China
     Semiconductor Material Co., Ltd.
     Yixing Huanxing New Energy Co.,                      State-supported   public infrastructure
                                                12.5%
     Ltd.                                                 project
     Guyuan Shengju New Energy Co.,                       State-supported   public infrastructure
                                                12.5%
     Ltd.                                                 project
     Shangqiu Yaowei Photovoltaic Power                   State-supported   public infrastructure
                                                12.5%
     Generation Co., Ltd.                                 project
     Tianjin Huanyu Yangguang New                         State-supported   public infrastructure
                                                12.5%
     Energy Technology Co., Ltd.                          project
     Huludao      Zhongrun        Energy                  State-supported   public infrastructure
                                                12.5%
     Technology Co., Ltd.                                 project
     Phase II and Phase III projects of
                                                          State-supported public infrastructure
     Qinhuangdao Tianhui Solar Energy           12.5%
                                                          project
     Co., Ltd.
     Huludao Xincheng New Energy                          State-supported public infrastructure
                                                12.5%
     Technology Co., Ltd.                                 project
     Zhangjiakou Shengyuan New Energy                     State-supported public infrastructure
                                                12.5%
     Co., Ltd.                                            project
                                                          State-supported public infrastructure
     Dushan      Anju       Photovoltaic
                                                 7.5%     project, encouraged business in West
     Technology Co., Ltd.
                                                          China
                                                          State-supported public infrastructure
     Sonid Left Banner Huanxin New
                                                 7.5%     project, encouraged business in West
     Energy Co., Ltd.
                                                          China
                                                          State-supported public infrastructure
     Otog Banner Huanju New Energy Co.,
                                                 7.5%     project, encouraged business in West
     Ltd.
                                                          China
     Inner Mongolia New Huanyu                            State-supported public infrastructure
     Yangguang New Energy Technology             7.5%     project, encouraged business in West
     Co., Ltd.                                            China
                                                          State-supported public infrastructure
     Gengma Huanxing New Energy Co.,
                                                 7.5%     project, encouraged business in West
     Ltd.
                                                          China
                                                          State-supported public infrastructure
     Ongniud Banner     Guangrun   New
                                                 7.5%     project, encouraged business in West
     Energy Co., Ltd.
                                                          China
                                                          State-supported public infrastructure
     Tuquan Guanghuan New Energy Co.,
                                                 7.5%     project, encouraged business in West
     Ltd.
                                                          China
                                                          State-supported public infrastructure
     Dangxiong Youhao New Energy
                                                 7.5%     project, encouraged business in West
     Development Co., Ltd.
                                                          China




                                               63
                            TCL Technology Group Corporation
                                Notes to Financial Statements
                    For the period from January 1 to December 31, 2022
                          ___________(RMB’000)_____________

IV   Taxes (continued)
6    Corporate income tax (continued)

                                             Preferential
     Company Name                                            Reason
                                                 tax rate
                                                             State-supported public infrastructure
     Shaanxi Runhuan Tianyu Technology
                                                Tax-free     project, encouraged business in West
     Co., Ltd.
                                                             China
     Tianjin Binhai Huanneng New Energy                      State-supported public infrastructure
                                                Tax-free
     Co., Ltd.                                               project
     Gaoqing Huanyuan Energy Technology                      State-supported public infrastructure
                                                Tax-free
     Co., Ltd.                                               project
     Gaoqing       Chengguang    Energy                      State-supported public infrastructure
                                                Tax-free
     Technology Co., Ltd.                                    project
                                                             State-supported public infrastructure
     Ningjin Jinchen New Energy Co., Ltd.       Tax-free
                                                             project

7    Individual income tax

     Individual income tax of income paid to employees by the Company is withheld by the Company
     on behalf of employees in accordance with to the relevant national tax regulations.




                                              64
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

V    Notes to Consolidated Financial Statements
1   Monetary assets
                                                           December 31,
                                                                                January 1, 2022
                                                                  2022

       Cash on hand                                                 480                   789
       Bank deposits                                         33,161,505            29,049,850
       Deposits with the central bank                           381,137               481,162
       Other monetary assets                                  1,835,379             1,861,891

                                                             35,378,501            31,393,692


Note Monetary assets with restricted use rights

                                                       December 31, 2022        January 1, 2022

       TCL Tech Finance's statutory reserve deposits
       with the central bank                                    321,852               358,178
       Other restricted monetary assets                       1,381,025               953,809

                                                              1,702,877             1,311,987

       On December 31, 2022, the Company's bank deposits of RMB321,852,000 (December 31,
       2021: RMB358,178,000) were statutory deposit reserves deposited with the Central Bank by
       TCL Technology Group Finance Co., Ltd., a subsidiary of the Company.

       On December 31, 2022, the Company’s monetary assets offshore amounted to
       RMB2,230,135,000 (December 31, 2021: RMB2,817,430,000), all of which were owned by
       the overseas subsidiaries of the Company.




                                                  65
                                     TCL Technology Group Corporation
                                         Notes to Financial Statements
                             For the period from January 1 to December 31, 2022
                                   ___________(RMB’000)_____________

 V   Notes to Consolidated Financial Statements (Continued)
2  Held-for-trading financial assets

                                                                 December 31,
                                                                                  January 1, 2022
                                                                       2022

       Financial assets classified as measured at fair value
       through profit or loss                                       12,703,507         7,601,256
       Including: Debt instrument investments                       12,483,274         7,288,741
              Equity instrument investments                            220,233           312,515

                                                                    12,703,507         7,601,256
3       Derivative financial assets
                                                                 December 31,
                                                                                  January 1, 2022
                                                                       2022

       Foreign exchange forwards                                      206,398             59,063
       Interest rate swaps                                            154,636             11,866

                                                                      361,034             70,929
4       Notes receivable
 (1)      Notes receivable by category

                                                                  December 31,
                                                                                  January 1, 2022
                                                                        2022

          Bank acceptance notes                                        512,767           775,423
          Trade acceptance notes                                            82               779

                                                                       512,849           776,202




                                                    66
                                        TCL Technology Group Corporation
                                            Notes to Financial Statements
                                For the period from January 1 to December 31, 2022
                                      ___________(RMB’000)_____________

V    Notes to Consolidated Financial Statements (Continued)

4    Notes receivable (continued)

(2) Presentation of provision for bad debts on notes receivable by category (continued)
                                               December 31, 2022                                 January 1, 2022
                                  Gross amount       Allowance                   Gross amount          Allowance
                                                                    Carrying                                        Carrying
                                          Ratio                                          Ratio
                                 Amount           Amount Percentage amount      Amount            Amount Percentage amount
                                           (%)                                            (%)
    Notes receivable for
    which the allowance for
    doubtful accounts were
    established    on     the
    grouping basis                512,849   100%       -          -   512,849   776,202   100%          -          -   776,202
    Including:       low-risk
    portfolio                     512,767 99.98%       -          -   512,767   775,423 99.90%          -          -   775,423
            By aging analysis          82 0.02%        -          -        82       779 0.10%           -          -       779

                                  512,849   100%       -          -   512,849   776,202   100%          -          -   776,202


(3) As at December 31, 2022, notes receivable in pledge were RMB264,599,000.

(4) Endorsed or discounted notes receivable that were outstanding on the balance sheet date and were
    derecognized as at December 31, 2022 amounted to RMB724,952,000. Endorsed or discounted notes
    receivable that were not outstanding on the balance sheet date and were not derecognized as at
    December 31, 2022 amounted to RMB148,271,000.

5     Accounts receivable
                                                                        December 31, 2022                   January 1, 2022

      Accounts receivable                                                        14,505,731                     18,657,744
      Less: allowance for doubtful accounts                                         454,070                        418,962

                                                                                 14,051,661                     18,238,782




                                                             67
                                 TCL Technology Group Corporation
                                     Notes to Financial Statements
                         For the period from January 1 to December 31, 2022
                               ___________(RMB’000)_____________

V     Notes to Consolidated Financial Statements (Continued)

5     Accounts receivable (continued)

      Accounts receivable in the period from January 1, 2022 to December 31 are classified as
(1)
        follows by how the allowances for doubtful accounts were established:

                                                              December 31, 2022
                                               Gross amount                    Allowance
                                                                            Lifetime
                                                                            ECL rate     Gross amount

      Accounts receivable for which the
         related allowances for doubtful
         accounts were established on the
         individual basis                               257,358             99.48%           256,017
      Of which:
      Accounts receivable                               257,358             99.48%           256,017

      Accounts receivable for which the
    related allowances for doubtful accounts
    were established on the grouping basis            14,248,373              1.39%          198,053
      Of which:
      Group 1: by aging analysis                       7,514,694              0.61%           45,889
      Group 2: by related parties                      2,787,683              0.65%           18,224
      Group 3: by tariff                               1,006,665              0.34%            3,470
      Group 4: by photovoltaics                        2,120,277              5.51%          116,795
      Group 5: by semiconductor                          819,054              1.67%           13,675

                                                      14,505,731                             454,070

(2) The aging of accounts receivable is analysed as follows:

                                           December 31, 2022                  January 1, 2022
                                            Amount         Ratio (%)          Amount        Ratio (%)

      Within 1 year                      13,254,660            91.37%      17,493,941        93.76%
      1 to 2 years                          350,702             2.42%         465,391         2.49%
      2 to 3 years                          339,078             2.34%         309,150         1.66%
      Over 3 years                          561,291             3.87%         389,262         2.09%

                                         14,505,731                100%    18,657,744          100%




                                                   68
                                 TCL Technology Group Corporation
                                     Notes to Financial Statements
                         For the period from January 1 to December 31, 2022
                               ___________(RMB’000)_____________

 V     Notes to Consolidated Financial Statements (Continued)

 5     Accounts receivable (continued)

 (3)   Allowances for doubtful accounts receivable are analysed as follows:
                                                              December 31, 2022            January 1, 2022

       Balance at the beginning of the period                             418,962                  281,281
       New subsidiary                                                           -                    33,745
       Accrued in current period                                          155,662                  209,480
       Reversal of current period                                       (110,707)                  (86,588)
       Write-off of current period                                       (11,298)                  (12,759)
       Reduced subsidiary                                                       -                   (5,381)
       Exchange adjustment                                                  1,451                     (816)

       Ending amount                                                      454,070                  418,962

 (4)   As of December 31, 2022, balance of the top five accounts receivable are as follows:

                                                              December 31, 2022            January 1, 2022

       Total amount owed by the top five                                5,422,959                8,922,641

       Proportion of total accounts receivable                            37.38%                   47.82%
6      Receivables financing
                                                              December 31, 2022            January 1, 2022

       Notes receivable financing                                       1,103,128                2,217,639

                                                                        1,103,128                2,217,639

Note   Endorsed or discounted notes receivable that were outstanding on the balance sheet date and were
       derecognized on December 31, 2022 amounted to RMB24,453,841,000.
       As of December 31, 2022, the Company believes that financing for the receivables it held did not have
       significant credit risk and will not cause significant losses due to default.




                                                    69
                                      TCL Technology Group Corporation
                                          Notes to Financial Statements
                              For the period from January 1 to December 31, 2022
                                    ___________(RMB’000)_____________

    V     Notes to Consolidated Financial Statements (Continued)
7         Prepayments
    (1)   Prepayments are analyzed as follows:

                                                          December 31, 2022          January 1, 2022

          Within 1 year                                           3,586,208               2,297,910
          1-2 years                                                   5,556                   6,560
          2-3 years                                                   1,530                   1,376
          Over 3 years                                                  563                     479

                                                                  3,593,857               2,306,325




    (2)   As of December 31, 2022, balance of the top five prepayments are as follows:

                                                          December 31, 2022          January 1, 2022

          Total amount owed by the top five                       2,655,698               1,681,650

          As % of total prepayments                                 73.90%                  72.91%
8         Other receivables
                                                          December 31, 2022          January 1, 2022

          Dividends receivable                                        1,226                        -
          Other receivables                                       4,032,022               4,458,621

                                                                  4,033,248               4,458,621
(1)       Dividends receivable
                                                          December 31, 2022          January 1, 2022

          Others                                                      1,226                       -

                                                                      1,226                       -




                                                     70
                                 TCL Technology Group Corporation
                                     Notes to Financial Statements
                         For the period from January 1 to December 31, 2022
                               ___________(RMB’000)_____________

 V     Notes to Consolidated Financial Statements (Continued)

 8     Other receivables (continued)
(2)    Other receivables
                                                     December 31, 2022               January 1, 2022

       Other receivables                                     4,259,495                    4,681,100
       Less: allowance for
       doubtful accounts                                         227,473                    222,479

                                                             4,032,022                    4,458,621

 (a)   Nature of other receivables is analyzed as follows:

                                                     December 31, 2022               January 1, 2022

       Subsidy receivable                                    1,868,634                    1,696,203
       Equity            transfer
       receivables                                           1,073,246                    1,480,960
       Security deposits                                       479,269                      421,430
       Others                                                  610,873                      860,028

                                                             4,032,022                    4,458,621

 (b)   Allowance for doubtful other receivables is analyzed as follows:

                                                Lifetime ECL        Lifetime ECL
                                    12-month       (credit not             (credit
                                        ECL         impaired)           impaired)             Total

       Beginning amount               76,254          120,291              25,934          222,479
       Current accrual                13,530           15,147                 201           28,878
       Reversal of current
       period                       (21,665)            (652)               (389)          (22,706)
       Write-off of
       current period                      -                 -             (1,173)          (1,173)
       Exchange
       adjustment                        (5)                 -                   -              (5)

       December 31,
       2022                           68,114          134,786              24,573          227,473




                                                71
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________

V     Notes to Consolidated Financial Statements (Continued)

8     Other receivables (continued)

(c)   The aging of other receivables is analyzed as follows:

                               December 31, 2022                             January 1, 2022
                       Carrying amount                                     Carrying
                                               Ratio (%)                    amount           Ratio (%)

      Within 1 year          3,209,877              75.35%                3,991,248              85.26%
      1 to 2 years             417,448               9.80%                  292,805               6.26%
      2 to 3 years             258,284               6.07%                  228,974               4.89%
      Over 3 years             373,886               8.78%                  168,073               3.59%

                             4,259,495                  100%              4,681,100                100%

(d)   As of December 31, 2022, the other receivables of the top five balances are as follows:

                                                                                           December 31,
                                                  December 31, 2022                              2021

      Total amount owed by the
      top five                                              2,324,850                         3,381,203
      As % of total other
      receivables                                              54.58%                            72.23%

(e)   On December 31, 2022, there was no transfer of other receivables that did not conform to the
      conditions for derecognition in the balance of this account; no transaction arrangement for asset
      securitization with other receivables as the subject asset; and no financial instrument that was the
      subject of securitization and did not conform to the conditions for derecognition.




                                                   72
                                    TCL Technology Group Corporation
                                        Notes to Financial Statements
                            For the period from January 1 to December 31, 2022
                                  ___________(RMB’000)_____________

V     Notes to Consolidated Financial Statements (Continued)
9      Inventories
(1)      Inventories are classified as follows:

                                    December 31, 2022                                    January 1, 2022
                                       Provision for
                                       depreciation                                        Provision for
                                      of inventories                                       depreciation
                                          / provision                                     of inventories
                                                   for                                   / provision for
                                          impairment                                     impairment of
                                          of contract                                           contract      Carrying
                           Book        performance            Carrying          Book       performance         amount
                         balance                costs          amount         balance             costs

         Raw
         materials      5,604,506           979,845          4,624,661       4,247,095          652,265      3,594,830
         Work in
         progress       3,674,059           421,558          3,252,501       2,705,288          321,606      2,383,682
         Finished
         Goods         11,512,597          1,705,750         9,806,847       8,541,513          823,701      7,717,812
         Turnover
         materials       318,291              1,178            317,113         388,135            1,102        387,033

                       21,109,453          3,108,331        18,001,122      15,882,031        1,798,674     14,083,357


      As of December 31, 2022, the Company had no inventory for liabilities guarantee.

(2)   Provision for depreciation of inventories / provision for impairment of contract performance
      costs:


                December              Current             Current          Current        Exchange         December
                 31, 2021             Accrual            Reversal         Write-off      Adjustment         31, 2022

    Raw
    materials        652,265          930,055            (139,458)        (462,874)             (143)        979,845
    Work in
    progress         321,606          507,456             (69,697)        (337,694)             (113)        421,558
    Finished
    Goods            823,701        1,884,201             (28,705)        (974,866)             1,419      1,705,750
    Turnover
    materials          1,102                 76                   -                 -                 -        1,178

                1,798,674           3,321,788            (237,860)       (1,775,434)            1,163      3,108,331




                                                             73
                                  TCL Technology Group Corporation
                                      Notes to Financial Statements
                          For the period from January 1 to December 31, 2022
                                ___________(RMB’000)_____________

 V       Notes to Consolidated Financial Statements (Continued)
10      Contract assets
 (1)     Contract assets are classified as follows:

                                 December 31, 2022                                January 1, 2022
                                     Allowance                                      Allowance
                           Book             for    Carrying           Book                 for    Carrying
                         balance       doubtful     amount          balance           doubtful     amount
                                      accounts                                        accounts

       Electricity
       charges
       receivable       327,543          12,376        315,167     239,753              6,224     233,529

 (2) Valuation allowances for contract assets are analyzed as follows:

                                                                                       Other
                                                                Current
                                             Current                               increases
                          January 1,                         Reversal or
                                             Accrual                                     and    December
                              2022                             write-off
                                                                                   decreases     31, 2022
        Electricity
             charges          6,224            6,152                     -                 -       12,376
11.     Other current assets
                                                             December 31, 2022             January 1, 2022

        Short-term debt investments                                        939,864                 571,140
        VAT to be deducted, to be certified, etc.                        3,775,842               3,931,095
        Current portion of loans and advances to
        customers (note)                                                     640,917             1,169,487
        Others                                                                82,313               131,238

                                                                         5,438,936               5,802,960

        Note: The loans and advances due within one year are loans due within the next year issued by
        subsidiary TCL Tech Finance Co., Ltd., of which interest receivable is RMB2,281,000.




                                                      74
                                    TCL Technology Group Corporation
                                        Notes to Financial Statements
                            For the period from January 1 to December 31, 2022
                                  ___________(RMB’000)_____________

 V    Notes to Consolidated Financial Statements (Continued)
12   Debt Investments

                                                                                  December 31, 2022                     January 1, 2022

       National debt and secondary market debt                                                     741,703                                -

13   Long-term receivables
                                 December 31, 2022                                           January 1, 2022                   Discount
                      Gross                               Carrying           Gross                               Carrying        rate
                                     Allowance                                                 Allowance
                     amount                               amount            amount                               amount        Interval
     Finance
     lease            631,373                -             631,373              651,118                  -        651,118
     Including:
     Unrealized                                                                                                                 7.125%-
     financing                                                                                                                   8.115%
     income          (781,934)               -            (781,934)         (848,837)                    -       (848,837)


                      631,373                -             631,373              651,118                  -        651,118

14   Long-term equity investments
                                      December 31, 2022                                                  January 1, 2022
                            Gross         Impairment                 Carrying                Gross         Impairment           Carrying
                           amount          allowance                  amount                amount          allowance            amount
      Associates
      (1)               29,065,027           329,479             28,735,548               25,086,945            1,624         25,085,321
      Joint
      ventures (2)         570,171               49,503               520,668               604,760            49,503            555,257


                       29,635,198          378,982       29,256,216         25,691,705            51,127           25,640,578
      As of December 31, 2022, the Company made impairment allowances for long-term equity investments in investees with poor
      management and insolvent assets.




                                                                 75
                                                                          TCL Technology Group Corporation
                                                                              Notes to Financial Statements
                                                                  For the period from January 1 to December 31, 2022
                                                                        ___________(RMB’000)_____________

V      Notes to Consolidated Financial Statements (Continued)

 14    Long-term equity investments (continued)
(1)    Associates
                                                                                                           Increase or decrease in current period
                                                                                           Investment
                                                                Increase/decrease in         gains and                                Other         Declared      Accrued            Other
                                                     Beginning                                           Other comprehensive
      Name of investee                                         investment in current            losses                               equity            Cash     Impairment   increases and December 31,
                                                       amount                                              income adjustment
                                                                              period    recognized by                              changes      dividends or     allowance       decreases        2022
                                                                                        equity method                                                  profit
      China Innovative Capital Management
      Limited                                         1,063,219                     -        (109,998)                (11,926)        3,097                -             -              -       944,392
      LG Electronics (Huizhou) Co., Ltd.                 92,079                     -           10,693                                              (13,000)             -              -        89,772
      Shenzhen Qianhai Qihang Supply Chain
      Management Co., Ltd.                              36,160                      -          (9,912)                   1,110                              -            -              -        27,358
      Shenzhen Jucai Supply Chain Technology
      Co., Ltd.                                         10,706                      -            4,562                       5                              -            -              -        15,273
      Shenzhen Tixiang Business Management
      Technology Co., Ltd.                               3,620                (1,500)          (1,127)                                                      -            -           154          1,147
      TCL Air Conditioner (Wuhan) Co., Ltd.             38,605                      -            2,005                                                      -            -             -         40,610
      TCL Finance (Hong Kong) Co., Limited             109,317                      -              626                                                      -            -             -        109,943
      Urumqi TCL Equity Investment Management
      Co., Ltd.                                             71                      -            1,019                                                      -            -              -         1,090
      Hubei Changjiang Hezhi Equity Investment
      Fund Partnership (Limited Partnership)          1,555,876              (93,374)         (49,429)                                                      -            -              -     1,413,073
      Ningbo Dongpeng Weichuang Equity
      Investment Partnership (Limited Partnership)     396,773                (5,072)           29,651                      30                      (87,391)             -         31,520       365,511
      Deqing Puhua Equity Investment Fund
      Partnership (Limited Partnership)                192,956                (3,704)         (25,170)                                              (37,869)             -              -       126,213




                                                                                                76
                                                                            TCL Technology Group Corporation
                                                                                Notes to Financial Statements
                                                                    For the period from January 1 to December 31, 2022
                                                                          ___________(RMB’000)_____________

V      Notes to Consolidated Financial Statements (Continued)

14     Long-term equity investments (continued)

(1)    Associates (continued)

                                                                                                         Increase or decrease in current period
                                                                                                                                                  Declared
                                                                                          Investment
                                                                                                                                                      Cash
                                                                  Increase/decrease in      gains and            Other              Other                                              Other
                                                       Beginning                                                                              dividends or     Provision for
      Name of investee                                           investment in current         losses    comprehensive             equity                                      increases and   December
                                                         amount                                                                                       profit     impairment
                                                                                period recognized by income adjustment           changes                                           decreases    31, 2022
                                                                                                                                               distribution
                                                                                       equity method
                                                                                                                                                  declared
      Ningbo Dongpeng Heli Equity Investment
      Partnership (Limited Partnership)                  463,294             (182,620)      143,470                    -                -          (51,457)                -               -     372,687
      Wuxi TCL Aisikai Semi-conductor Industry
      Investment Fund Partnership (Limit ed
      Partnership)                                       232,764              (15,730)       93,896                    -                -                  -               -               -     310,930
      Wuxi TCL Venture Capital Partnership
      (Limited Partnership)                                35,580                    -        1,219                  51                 -                  -               -               -      36,850
      Ningbo Meishan Bonded Port Qiyu
      Investment      Management        Partnership
      (Limited Partnership)                                64,975                    -      (41,633)                                    -                  -               -               -      23,342
      Shanghai Gen Auspicious Venture Capital
      Partnership (Limited Partnership)                    29,945                    -        3,485                 422                 -          (18,795)                -               -      15,057
      Nanjing Zijin A Dynamic Investment
      Partnership (Limited Partnership)                    19,725               (401)           391                  11                 -                  -               -               -      19,726
      Huizhou Kaichuang Venture Investment
      Partnership (Limited Partnership)                     8,700                    -           (5)                                    -                  -               -               -       8,695
      Beijing A Dynamic Venture Capital Center
      (Limited Partnership)                                 6,415                    -        3,279              (2,058)                -                  -               -               -       7,636
      Yixing Jiangnan Tianyuan Venture Capital
      Company (Limited Partnership)                         3,750                    -        1,054                  16                 -                  -               -               -       4,820
      Shenzhen Chuangdong New Industry
      Investment Fund Enterprise (Limit ed
      Partnership)                                          2,341                    -           (3)                   -                -                  -               -               -       2,338
      Hubei Changjiang Hezhi Equity Investment
      Fund Management Co., Ltd.                             6,006                    -        5,547                    -                -                  -               -               -      11,553
      Huizhou Kaimeng         Angel Investment
      Partnership (Limited Partnership)                     2,595                    -          (52)                   -                -                  -               -               -       2,543
      Ningbo     Jiutian    Matrix      Investment
      Management Co., Ltd. (note)                           2,851                    -         (254)                   -                -                  -               -               -       2,597
      Urumqi     Qixinda     Equity     Investment
      Management Co., Ltd.                                  1,137                    -        3,365                    -                -                  -               -               -       4,502




                                                                                               77
                                                                              TCL Technology Group Corporation
                                                                                  Notes to Financial Statements
                                                                      For the period from January 1 to December 31, 2022
                                                                            ___________(RMB’000)_____________

V      Notes to Consolidated Financial Statements (Continued)

14     Long-term equity investments (continued)

(1)    Associates (continued)

                                                                                                              Increase or decrease in current period
                                                                                                                                                       Declared
                                                                                              Investment
                                                                                                                                                           Cash
                                                                  Increase/decrease in          gains and                                Other                        Accrued            Other
                                                       Beginning                                            Other comprehensive                    dividends or
      Name of investee                                           investment in current             losses                               equity                      Impairment   increases and December 31,
                                                         amount                                               income adjustment                            profit
                                                                                period     recognized by                              changes                        allowance       decreases        2022
                                                                                                                                                    distribution
                                                                                           equity method
                                                                                                                                                       declared
      Urumqi TCL Create Dynamic Equity
      Investment Management Co., Ltd.                           761                    -              (2)                       -            -                  -            -               -         759
      Beijing A Dynamic Investment Consulting
      Co., Ltd.                                                 469                    -              (2)                       -            -                  -            -               -         467
      Shanghai Gen Auspicious Investment
      Management Co., Ltd.                                      918                    -            1,956                       -            -             (363)             -               -        2,511
      Nanjing A Dynamic Equity Investment Fund
      Management Co., Ltd.                                      283                    -              (4)                       -            -                  -            -               -         279
      Wuxi TCL Medical Imaging Technology
      Co., Ltd.                                            29,235                 7,661          (11,274)                       -            -                  -            -            215        25,837
      Aijiexu New Electronic Display Glass
      (Shenzhen) Co., Ltd.                                635,360                162,003            5,383                       -       77,503                 -             -               -      880,249
      TCL Ventures Fund L.P.                               53,019               (45,171)           20,823                       -                        (3,640)             -           3,987       29,018
      Getech Ltd.                                          21,032                      -              889                      25       61,714                 -             -               -       83,660
      TCL Environmental Technology Co., Ltd.              130,643              (103,246)            4,842                       -            -                 -             -        (32,239)            -
      Guangdong Innovative Lingyue Intelligent
      Manufacturing and Information Technology
      Industry Equity Investment Fund Partnership
      (Limited Partnership)                               372,976                      -         129,468                        -            -                  -            -               -      502,444
      Guangdong Utrust Emerging Industry Equity
      Investment Fund Partnership (Limit ed
      Partnership)                                        151,026                 (279)            17,062                       -            -                  -            -               -      167,809




                                                                                                   78
                                                                            TCL Technology Group Corporation
                                                                                Notes to Financial Statements
                                                                    For the period from January 1 to December 31, 2022
                                                                          ___________(RMB’000)_____________

V      Notes to Consolidated Financial Statements (Continued)

14     Long-term equity investments (continued)

(1)    Associates (continued)

                                                                                                             Increase or decrease in current period
                                                                                                                                                      Declared
                                                                                             Investment
                                                                                                                                                          Cash
                                                                  Increase/decrease in         gains and                                Other                        Accrued             Other
                                                       Beginning                                           Other comprehensive                    dividends or
      Name of investee                                           investment in current            losses                               equity                      Impairment    increases and December 31,
                                                         amount                                              income adjustment                            profit
                                                                                period    recognized by                              changes                        allowance        decreases        2022
                                                                                                                                                   distribution
                                                                                          equity method
                                                                                                                                                      declared
      Shenzhen Xinhuoyicheng Recreational and
      Sports Industry Co., Ltd.                             1,417                    -              (29)                       -            -                  -            -                -        1,388
      Pride Telecom Limited                                     -                    -                 -                       -            -                  -            -                -            -
      JOLED Incorporation                                 869,073               80,960         (420,741)                                                       -    (318,604)         (51,386)      159,302
      Sichuan      Shengtian      New      Energy         478,264                    -            30,228                                                       -            -                -      508,492
      Development Co., Ltd.
      Yanyuan Fengguang New Energy Co., Ltd.               62,528              (41,823)          (4,453)                                                       -             -        (16,252)            -
      SunPower Systems International Limited               27,792                     -              553                                                       -             -               -       28,345
      Zhonghuan Aineng (Beijing) Technology                 6,843                     -          (2,725)                                                       -             -               -        4,118
      Co., Ltd.
      Inner Mongolia Zhongjing Science and                122,960                     -           13,722                                                       -             -               -      136,682
      Technology Research Institute Co., Ltd.
      Hunan Guoxin Semiconductor Technology                 9,758                     -              67                                                        -             -               -        9,825
      Co., Ltd.
      Maxeon Solar Technologies, Ltd.                   2,020,194                     -        (399,777)                                                       -             -               -    1,620,417
      Xinjiang Xiexin New Energy Material               1,691,361                     -        2,228,104                                                       -             -               -    3,919,465
      Technology Co., Ltd.
      Ruihuan (Inner Mongolia) Solar Power Co.,             5,896                     -            3,355                                                       -       (9,251)               -            -
      Ltd.
      Tianjin   Zhonghuan Haihe Intelligent               659,630                4,990           (7,005)                                                       -             -               -      657,615
      Manufacturing Fund Partnership (Limit ed
      Partnership)
      Zhonghuan Feilang (Tianjin) Technology                4,722                     -             403                                                        -             -               -        5,125
      Co., Ltd.
      Ningbo     Zhongxin       Venture    Capital         58,278               90,000           (3,310)                                                       -             -               -      144,968
      Partnership Tianjin Huanxin




                                                                                                  79
                                                                         TCL Technology Group Corporation
                                                                             Notes to Financial Statements
                                                                 For the period from January 1 to December 31, 2022
                                                                       ___________(RMB’000)_____________

V     Notes to Consolidated Financial Statements (Continued)

14    Long-term equity investments (continued)

(1)   Associates (continued)
                                                                                                                              Increase or decrease in current period
                                                                                                                   Investment                                   Declared
                                                                                                                     gains and             Other                     Cash                      Other
                                                                                              Increase/decrease                                      Other                     Accrued
                                                                                 Beginning                              losses comprehensive                   dividends                   increases
      Name of investee                                                                          in investment in                                    equity                   Impairment                 December
                                                                                   amount                          recognized            income                  or profit                       and
                                                                                                  current period                                  changes                     allowance                  31, 2022
                                                                                                                     by equity       adjustment              distribution                  decreases
                                                                                                                       method                                   declared
      TCL Huanxin Semi-conductor (Tianjin) Co., Ltd.(Note)                          421,762                    -       (27,816)                                          -             -            -      393,946
      Inner Mongolia Shengou Electromechanical Engineering Co., Ltd.                  2,914                    -            386                                    (2,288)             -            -        1,012
      Inner Mongolia Huanye Material Co., Ltd.                                        4,109                    -          2,054                                          -             -            -        6,163
      Shenzhen Shutuo Technology Co., Ltd.                                           38,038                    -        (1,202)                                          -             -        1,366       38,202
      Shenzhen Qianhai Sailing International Supply Chain Management Co., Ltd.       49,964                    -         18,692               884                        -             -            -       69,540
      Wuhan Guochuangke Optoelectronic Equipment Co., Ltd.                           24,744                    -          1,166                                          -             -            -       25,910
      TCL Intelligent Technology (Ningbo) Co., Ltd.                                       -                    -              -                                          -             -            -            -
      Zhihui Xinyuan Commercial (Huizhou) Co., Ltd.                                       -                    -          3,936                                          -             -            -        3,936
      Purplevine Holdings Limited                                                         -                3,789        (2,249)                                          -             -           89        1,629
      Xinxin Semiconductor Technology Co., Ltd.                                                        1,790,073          8,312                 -         -              -             -          399    1,798,784
      Inner Mongolia Xinhua Semiconductor Technology Co., Ltd.                                           120,000        (2,114)                                          -             -            -      117,886
      Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd.                                         132,000        (4,153)                                          -             -            -      127,847
      Shanghai Feilihua Shichuang Technology Co., Ltd.                                                    40,000            854                                          -             -          200       41,054
      Others                                                                     12,749,892            (237,044)     1,286,140            (6,074)         -     (334,934)              -    (194,774)   13,263,206

                                                                                 25,085,321            1,701,512     2,958,218           (17,504)   142,314     (549,737)      (327,855)    (256,721)   28,735,548

      Note 1: Tianjin Huanxin Technology & Development Co., Ltd. was renamed as TCL Huanxin Semi-conductor (Tianjin) Co., Ltd in April
      2022.
      Note 2: Others are mainly investments in listed companies that have not yet announced their annual reports for 2022.




                                                                                                  80
                                                                     TCL Technology Group Corporation
                                                                         Notes to Financial Statements
                                                             For the period from January 1 to December 31, 2022
                                                                   ___________(RMB’000)_____________

V          Notes to Consolidated Financial Statements (Continued)

14         Long-term equity investments (continued)
(2)        Joint ventures
                                                                                                            Increase or decrease in current period
                                                                                                                                            Declared
                                                                                Investment gains            Other
                                                           Increase/decrease                                                         Cash dividends        Accrued            Other
                                               Beginning                              and losses   comprehensive    Other equity
                 Name of investee                            in investment in                                                                or profit   Impairment   increases and   December
                                                 amount                            recognized by          income         changes
                                                               current period                                                            distribution     allowance       decreases    31, 2022
                                                                                   equity method      adjustment
                                                                                                                                            declared

      TCL Huizhou City, Kai Enterprise
      Management Limited                           1,329                    -                 18                 -                -                  -            -               -       1,347
      Huizhou TCL Human Resources Service
      Co., Ltd.                                    3,296                    -              2,978                 -                -                  -            -               -       6,274
      Zhangjiakou Qixin Equity Investment
      Fund Partnership                            92,681                    -            (5,106)                 -                -              (600)            -               -      86,975
      Huaxia CPV (Inner Mongolia) Power Co.,
      Ltd. (Note 1)                                    -                    -                  -                 -                -                  -            -               -           -
      Tianjin Huanyan Technology Co., Ltd.       144,517                    -            (3,724)                 -                -                  -            -               -     140,793
      TCL Microchip Technology (Guangdong)
      Co., Ltd.                                  313,433              25,000            (53,645)                 -             491                   -            -               -     285,279

                                                 555,256              25,000            (59,479)                 -             491               (600)            -               -     520,668




                                                                                            81
                                      TCL Technology Group Corporation
                                          Notes to Financial Statements
                              For the period from January 1 to December 31, 2022
                                    ___________(RMB’000)_____________

V Notes to Consolidated Financial Statements (Continued)
14 Long-term equity investments (continued)
(3) Impairment allowances for long-term equity investments
                                                                                 Decrease
                                                                Increase                            Other
                                              January 1,                                in                      December
                                                              in current                            chang                          Note
                                                   2022                           current                        31, 2022
                                                                  period                               es
                                                                                   period

          Pride Telecom Limited                   1,624                   -              -                  -          1,624       ote 1
          Huaxia      CPV       (Inner
                                                                                                            -
          Mongolia) Power Co., Ltd.              49,503               -                  -                          49,503         ote 1
          OLED Incorporation                          -         310,730                  -           7,874         318,604         ote 1
          uihuan (Inner Mongolia)
          Solar Power                                  -            9,251                -                  -          9,251       ote 1
          Co., Ltd.

                                                 51,127         319,981                  -           7,874         378,982

 Note     Impairment allowances were established for the long-term investments in these investees at recoverable amounts because
 1        continuous operations loss occurred to these investees with poor management.
15       Investments in other equity instruments
                                                                                   December 31, 2022                    January 1, 2022

        Stocks                                                                                     66,706                       109,011
        Equity of unlisted companies                                                              373,290                       818,308

                                                                                                  439,996                       927,319

                                                                                                  Reasons
                                                                              Amount      of                            Reasons     for
                                                                                                  designated     as
                                                                              other                                     other
                            Confirmed                                                             measured at fair
                                                                              comprehensive                             comprehensive
                            Dividend       Accumulated     Accumulated                            value and whose
        Item name                                                             income                                    income
                            income         Profits         losses                                 changes       are
                                                                              transferred to                            transferred to
                            recognized                                                            included in other
                                                                              retained                                  retained
                                                                                                  comprehensive
                                                                              earnings                                  earnings
                                                                                                  income

                                                                                                  Being held long
                                                                                                                        Sold in current
        Stocks                         -          3,524       (142,087)                      -    term for strategic
                                                                                                                        period
                                                                                                  purposes
        Equity         of                                                                         Being held long
                                                                                                                        Sold in current
        unlisted                   349           10,172        (19,270)             (16,811)      term for strategic
                                                                                                                        period
        companies                                                                                 purposes
        Total                      349           13,696       (161,357)             (16,811)
16       Other non-current financial assets
                                                                                    December 31, 2022                   January 1, 2022

         Equity investments                                                                      2,928,827                     2,149,781
         Debt investments                                                                                -                       554,257

                                                                                                 2,928,827                     2,704,038




                                                               82
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 V   Notes to Consolidated Financial Statements (Continued)
17   Investment property
                                            Houses and
                                                            Land use rights         Total
                                             buildings
     Gross amount:
     January 1, 2022                          896,416              92,817        989,233
     Increase
        Other increases                        68,252                       -     68,252
        Reclassified from fixed assets
     and intangible assets                    140,311             112,816        253,127
     Decreases
        Reduced subsidiary                     (2,967)                      -     (2,967)
        Reclassified to fixed assets
     and intangible assets                    (34,226)                      -    (34,226)
        Other decreases                          (307)                      -       (307)

     December 31, 2022                       1,067,479            205,633       1,273,112

     Accumulated depreciation and
     amortization:
     January 1, 2022                          165,990                8,376       174,366
     Increase
        Accrued in current period              29,363                3,081        32,444
        Reclassified from fixed assets
     and intangible assets                     44,290              26,945         71,235
     Decreases
        Reduced subsidiary                       (343)                      -       (343)
        Reclassified to fixed assets
     and intangible assets                     (3,826)                      -     (3,826)

     December 31, 2022                        235,474              38,402        273,876

     Investment property, net:
     December 31, 2022                        832,005             167,231        999,236
     January 1, 2022                          730,426              84,441        814,867
     Impairment allowance:
     January 1, 2022                           52,965                       -     52,965
     Increase
        Increase in current period                   -                      -           -
     Decreases
        Decrease in current period               (178)                      -       (178)

     December 31, 2022                         52,787                       -     52,787

     Investment property, net:
     December 31, 2022                        779,218             167,231        946,449
     January 1, 2022                          677,461              84,441        761,902




                                              83
                                         TCL Technology Group Corporation
                                             Notes to Financial Statements
                                 For the period from January 1 to December 31, 2022
                                       ___________(RMB’000)_____________

 V   Notes to Consolidated Financial Statements (Continued)
18   Fixed assets
                                                      Office and
                        Houses and     Machinery      electronic   T ransportation      Power
                          buildings    equipment      equipment        equipment      stations   Others        T otal
     Gross amount:
     December 31,
     2021               36,809,487    144,268,573     6,141,205          228,961     2,361,036   21,576   189,830,838
     Change        of
     accounting
     policy                       -        19,486              -                 -           -        -       19,486
     January       1,
     2022               36,809,487    144,288,059     6,141,205          228,961     2,361,036   21,576   189,850,324
     Increase
       Acquisition
     and other               8,122      1,968,396       122,532           33,922        1,682    4,800      2,139,454
       New
     subsidiary                   -              -          414                  -           -        -          414
       Reclassified
     from
     investment
     property               34,226               -             -                 -           -        -       34,226
       Reclassified
     from
     construction in
     progress            9,006,963     28,617,693       182,497           26,054          125      932     37,834,264
       Other
     increases                    -     3,650,892              -                 -           -        -     3,650,892
     Decreases
       Written down
     with
     government
     grants              (721,216)      (887,720)              -                 -           -        -   (1,608,936)
       Reclassified
     to investment
     property            (140,311)               -             -                 -           -        -     (140,311)
       Other
     decreases            (25,992)     (2,881,363)   (3,710,126)         (28,258)      (1,414)    (909)   (6,648,062)
     Exchange
     adjustment              8,327          (309)           712               415            -     827         9,972

     December 31,
     2022               44,979,606    174,755,648     2,737,234          261,094     2,361,429   27,226   225,122,237

     Accumulated
     depreciation:
     December 31,
     2021                6,424,323     64,912,283     2,500,253          145,498      426,922    13,504   74,422,783
     Change        of
     accounting
     policy                       -              -             -                 -           -        -             -
     January       1,
     2022                6,424,323     64,912,283     2,500,253          145,498      426,922    13,504   74,422,783
     Increase
       Accrual           1,451,233     15,537,599       238,755           37,730       87,530    2,307    17,355,154
      New
     subsidiary                   -              -          223                  -           -        -          223
      Reclassified
     from
     investment
     property                3,826               -             -                 -           -        -        3,826
      Other
     increases                    -     1,902,490              -                 -           -        -     1,902,490
     Decreases
       Reclassified
     to investment
     property             (44,290)               -             -                 -           -        -      (44,290)
       Other
     decreases             (8,804)     (1,654,778)   (1,013,390)         (18,348)       (416)     (117)   (2,695,853)
     Exchange
     adjustment                725          2,089           591               229            -     236         3,870

     December 31,
     2022               7,827,013      80,699,683     1,726,432          165,109      514,036    15,930   90,948,203

     Fixed assets,
     net:
     December 31,
     2022               37,152,593     94,055,965     1,010,802           95,985     1,847,393   11,296   134,174,034
     January    1,
     2022               30,385,164     79,375,776     3,640,952           83,463     1,934,114   8,072    115,427,541
     December 31,
     2021               30,385,164     79,356,290     3,640,952           83,463     1,934,114   8,072    115,408,055




                                                              84
                                           TCL Technology Group Corporation
                                               Notes to Financial Statements
                                   For the period from January 1 to December 31, 2022
                                         ___________(RMB’000)_____________
 V     Notes to Consolidated Financial Statements (Continued)

 18    Fixed assets (continued)

                                                                Office and
                          Houses and           Machinery                       T ransportation      Power
                                                                electronic                                        Others          T otal
                            buildings          equipment                           equipment      stations
                                                                equipment
       Impairment
       allowance:
       December 31,
       2021                  771,541             653,840          338,477               2,429      62,059           412        1,828,758
       Change     of
       accounting
       policy                                    305,387        (305,387)
       January      1,
       2022                  771,541             959,227           33,090               2,429      62,059           412        1,828,758
       Accrued      in
       current period               -              50,195           3,673                  22            -             -         53,890
       Write-off of
       current period         (5,224)           (177,249)         (1,473)             (2,340)            -             -       (186,286)
       Other transfers
       out                          -                    -      (305,387)                    -           -             -       (305,387)
       December 31,
       2022                  766,317             832,173           35,290                 111      62,059           412        1,696,362

       Fixed assets,
       carrying
       amount:
       December 31,
       2022               36,386,276           93,223,792         975,512             95,874     1,785,334        10,884     132,477,672
       January      1,
       2022               29,613,623          78,721,936        3,302,475             81,034     1,872,055        7,660      113,598,783
       December 31,
       2021               29,613,623           78,702,450       3,302,475             81,034     1,872,055        7,660      113,579,297




           Please refer to Item 81 of Note V for information on fixed asset pledge. As of December 31, 2022,
           the gross amount of the fixed assets that were fully depreciated and still in use was
           RMB34,259,086,000.

           Fixed assets with pending ownership certificates at the end of the current period:

                                                                                                                    Expected time of
                                                                             Carrying amount                 obtaining ownership
                                                                                                                  certificate

           Houses           and                                                                     Expected to be completed in
                                                                                     15,275,634
           buildings (Note)                                                                                              2023

 Note      As of December 31, 2022, the fixed assets with pending ownership certificates of the Company were
           mainly the buildings and constructions of CSOT's t3, t4, t6, and t9 manufacturing bases, as well as
           the buildings and constructions of Inner Mongolia Zhonghuan Crystal Material Co., Ltd., Inner
           Mongolia Zhonghuan Advanced Semi-conductor Material Co., Ltd. and Tianjin Huanhai Industrial
           Park Co., Ltd.
19      Construction in progress
        (1) Schedule of construction in progress
                                                                              December 31, 2022                      January 1, 2022

      Construction in progress                                                           52,063,442                        37,112,045
      Less: Impairment allowance                                                              9,608                           146,160

                                                                                         52,053,834                        36,965,885




                                                                       85
                                                                                                TCL Technology Group Corporation
                                                                                                    Notes to Financial Statements
                                                                                        For the period from January 1 to December 31, 2022
                                                                                              ___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
19 Construction in progress (continued)

(2) Changes to construction in progress
                                                                                          Transfer-in in                                       Project input              Cumulative             Including:            Interest capitalizat
                                                       Beginning        Increase in       current period         Other         December       Investment as    Project    capitalized       capitalized interest       ion rate for current
              Project name                Budget        amount         current period      Fixed assets        decreases        31, 2022       % of budget     progress    interest          in current period                period          Funding source

                                                                                                                                                                                                                                              Proprietary fund
   t7 production line of LCD panel        35,337,000     3,362,350          6,559,254         (8,802,841)        (15,022)        1,103,741              75%       75%           515,456                 123,023                     1.04%           and loans
   t5 production line of LCD panel        11,321,000       739,416          4,367,946             (2,353)        (65,608)        5,039,401              80%       80%                 -                       -                          -
                                                                                                                                                                                                                                              Proprietary fund
   t4 production line of LCD panel        35,000,000    17,226,269          2,068,560         (2,489,529)       (566,209)       16,239,091              96%       96%           295,941                 295,941                     2.33%           and loans
                                                                                                                                                                                                                                                Proceeds from
                                                                                                                                                                                                                                              equity issue and
   t9 production line of LCD panel       31,500,000      3,916,693         13,761,271         (7,294,072)                  -    10,383,892              58%       58%           144,387                 144,387                     3.00%                loans
   Huizhou modular integration                                                                                                                                                                                                                Proprietary fund
   project                                7,066,680       620,802           1,842,898         (1,228,426)        (21,916)        1,213,358            100%       100%                   -                          -                      -         and loans
   Production line of 8-12-inch
   semiconductor silicon wafers for                                                                                                                                                                                                             Self-financing
   integrated circuit                     5,707,172      1,307,446          1,049,821         (1,196,270)        (28,576)        1,132,421              77%       77%                   -                          -                      -
   50GW (G12) solar-grade
   monocrystalline silicon material                                                                                                                                                                                                             Self-financing
   smart factory project                 10,979,740       543,611           6,934,838         (3,805,653)          (5,644)       3,667,152              68%       68%                   -                          -                      -
   High-performing shingled solar
                                                                                                                                                                                                                                                Self-financing
   module intelligent plant project       3,045,000       407,609            824,398            (499,785)          (2,770)          729,452             86%       86%                   -                          -                      -
   High-performing ultra-thin silicon
   solar single-crystal wafer                                                                                                                                                                                                                   Self-financing
   intelligent plant project              1,949,870                -         883,977                       -               -        883,977             45%       45%                   -                          -                      -
   Large-diameter semiconductor
                                                                                                                                                                                                                                                Self-financing
   silicon wafers for integrated circuit 5,385,000        355,184           1,624,967           (212,666)       (136,980)        1,630,505              41%       41%                   -                          -                      -
                                               Not
   Others                                applicable      8,486,505         14,039,483        (12,302,669)       (19 2,475)      10,030,844

                                                        36,965,885         53,957,413        (37,834,264)      (1,035,200)      52,053,834




                                                                                                                               86
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                                             (RMB’000)

 V       Notes to Consolidated Financial Statements     (Continued)
20     Right-of-use assets
                             Houses
                                    Transportation      Machinery     Land use
                                and                                                    Total
                                        equipment       equipment        rights
                          buildings
     Gross amount:
     January 1, 2022        867,511         1,164        1,982,380     13,335      2,864,390
     Increase
        Leased in       3,482,164              139         254,198    123,136      3,859,637
        Other                     -
     increases                                 462                -           -          462
     Decreases
        Other
     decreases             (61,025)          (339)      (1,126,116)    (1,930)    (1,189,410)
     Exchange
     adjustment               4,474              4                -           -        4,478
     December 31,
     2022               4,293,124           1,430        1,110,462    134,541      5,539,557

     Accumulated
     depreciation:
     January 1, 2022         101,348             522       335,526           83      437,479
     Increase
       Accrual               170,477             497       139,909     11,149        322,032
     Decreases
       Other                                                                  -
     decreases              (45,988)           (110)     (285,549)                 (331,647)
     Exchange
     adjustment                1,566                3             -           -        1,569
     December 31,
     2022                    227,403             912       189,886     11,232        429,433

     Right-of-use
     assets, carrying
     amount:
     December 31,
     2022                  4,065,721             518       920,576    123,309      5,110,124
     January 1, 2022         766,163             642     1,646,854     13,252      2,426,911

     Impairment
     allowance:
     January 1, 2022                -               -             -           -             -
     December 31,
     2022                           -               -             -           -             -

     Right-of-use
     assets, carrying
     amount
     December 31,
     2022                  4,065,721             518       920,576    123,309      5,110,124
     January 1, 2022         766,163             642     1,646,854     13,252      2,426,911




                                               87
                            TCL Technology Group Corporation
                                Notes to Financial Statements
                    For the period from January 1 to December 31, 2022
                                         (RMB’000)

 V Notes to Consolidated Financial Statements (Continued)
21 Intangible assets
                                                    Non-patent
                                   Land use
                                                  technologies         Others                 Total
                                      rights
                                                      /patents
   Gross amount:
   January 1, 2022                8,649,646           8,083,664    1,590,550            18,323,860
   Increase
      New subsidiary                      -              13,358            -                13,358
      Purchase                      841,929           1,296,125      228,373             2,366,427
      Reclassified from
   construction in progress            4,715                   -     185,918               190,633
      Reclassified from
   development costs                        -         1,961,331              -           1,961,331
   Decreases
      Sale and disposal           (167,217)                (39)       (2,664)            (169,920)
      Reclassified to
   investment property            (112,816)                   -             -            (112,816)
      Other decreases                     -                   -       (6,855)              (6,855)
   Exchange adjustment                    -             (3,962)           328              (3,634)
   December 31, 2022              9,216,257          11,350,477    1,995,650            22,562,384

   Accumulated amortization:
   January 1, 2022                  802,839           2,654,155      739,490             4,196,484
   Increase
      Accrual                       257,146           1,027,834      188,124             1,473,104
      New subsidiary                      -                 891            -                   891
   Decreases
      Sale and disposal              (6,400)                   -        (520)               (6,920)
      Reclassified to
   investment property             (26,945)                   -            -              (26,945)
      Other decreases                (8,233)                  -        (850)                (9,083)
   Exchange adjustment                     -              2,618          188                  2,806
   December 31, 2022              1,018,407           3,685,498      926,432             5,630,337
   Intangible assets, net:
   December 31, 2022              8,197,850           7,664,979    1,069,218            16,932,047
   January 1, 2022                7,846,807           5,429,509      851,060            14,127,376
   Impairment allowance:
   January 1, 2022                   23,562            110,019        11,148               144,729
   Accrual                                -                442             -                   442
   Exchange adjustment                    -              2,945             -                 2,945
   December 31, 2022                 23,562            113,406        11,148               148,116
   Intangible assets, carrying
   amount:
   December 31, 2022              8,174,288           7,551,573    1,058,070            16,783,931
   January 1, 2022                7,823,245           5,319,490      839,912            13,982,647


    As of December 31, 2022, the total book value of land use rights for which the title certificate
    has not been registered properly was RMB2,076,000.
    Please refer to Item 81 of Note V for information on collateralized intangible assets.




                                                88
                             TCL Technology Group Corporation
                                 Notes to Financial Statements
                     For the period from January 1 to December 31, 2022
                                          (RMB’000)

 V Notes to Consolidated Financial Statements (Continued)
22 Development costs
    Development expenditures are presented as follows:
                                        December 31, 2022                                   January 1, 2022

      Semi-conductor display                                 2,172,507                                 1,266,973
      New energy photovoltaic & semi-
      conductor materials                                    1,006,700                                 1,241,446

                                                             3,179,207                                 2,508,419
23    Goodwill
(1)      Gross amount of goodwill

                                                                    Increase in       Decrease
                Name of investee or                 January 1,                                          December
                                                                      current         in current
              item incurring goodwill                 2022                                               31, 2022
                                                                      period            period

         TCL Medical Radiologica l
                                                          28,967              -                -            28,967
         Technology (Beijing) Co., Ltd.    Note 1
         Qingdao Blue Business
                                                           2,452              -                -             2,452
         Consulting Co., Ltd.              Note 2
         Tianjin Huan'Ou Semiconductor
                                                         214,683              -                -           214,683
         Material&Technology Co., Ltd.     Note 3
         TCL Technology Group
                                                      6,726,130               -                -         6,726,130
         (Tianjin) Co., Ltd.               Note 4
         Moka International Limited        Note 5     1,728,973               -                -         1,728,973
         Suzhou China Star
         Optoelectronics Technology                      486,603              -                -           486,603
         Co., Ltd.                         Note 6
         Huizhou Kedate Smart Display
                                                               -          3,011                -             3,011
         Technology Co., Ltd.              Note 7

                                                      9,187,808           3,011                -         9,190,819
(2)      Goodwill impairment allowance

                                                                      Increase in     Decrease in
                                                       January 1,         current         current       December
         Name of investee                                   2022           period          period        31, 2022

         TCL     Medical      Radiologica l
         Technology (Beijing) Co., Ltd.                    28,967                 -                -        28,967

Note 1   In 2010, the Company acquired a 51.82% interest in TCL Medical Radiological Technology
         (Beijing) Co., Ltd. (hereinafter referred to as “TCL Medical Radiological Technology”) with capital
         of RMB 52,319,000. Thus, the difference between the accumulated investment of the Company in
         TCL Medical Radiological Technology (corresponding to 51.82% interest) and the fair value of the
         net identifiable assets of TCL Medical Radiological Technology attributable to the Company on the
         settlement date (equal to RMB 28,967,000) was recorded in the Company's goodwill. An impairment
         allowance of RMB 28,967,000 had been made on such goodwill in 2018.




                                                    89
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                                            (RMB’000)

V       Notes to Consolidated Financial Statements (Continued)
23      Goodwill (continued)
Note    In October 2016, Highly Information Industry Co., Ltd., a subsidiary of the Company, acquired 60%
2       interest in Qingdao Blue Business Consulting Co., Ltd. (hereinafter referred to as “Blue Business
        Consulting”) with consideration of RMB 10,000,000. Thus, the difference between the accumulated
        investment of Highly Information Industry Co., Ltd. in Blue Business Consulting (corresponding to a
        60% interest) and the fair value of the net identifiable assets of Blue Business Consulting attributable
        to Highly Information Industry Co., Ltd. on the settlement date (equivalent to RMB2,452,000) was
        recorded in the Company’s goodwill.
Note    Tianjin Huan’Ou Semiconductor Material&Technology Co., Ltd. is a subsidiary of Zhonghuan
3       Electronics, which the Company has acquired in a business combination not involving entities under
        common control.
Note    The Company completed its acquisition of 100% stake in TCL Technology Group (Tianjin) Co., Ltd.
4       (former name: Tianjin Zhonghuan Electronic Information Group Co., Ltd.) on October 1,2020 with a
        cash consideration of RMB12,500,000,000. At the date of acquisition, the Group obtained the effective
        control of TCL Technology Group (Tianjin) Co., Ltd., and included such company into the consolidated
        financial statements. On the date of transaction, the difference between the accumulated investment of
        the Company in TCL Technology Group (Tianjin) Co., Ltd. (corresponding to the 100% interest) and
        the fair value of the net identifiable assets of Zhonghuan Electronics attributable to the Company on the
        settlement date (equal to RMB6,726,130,000) was recorded in the Company’s goodwill. The goodwill
        mainly consists of 2 asset groups: the new energy photovoltaic and semiconductor materials and the
        Tianjin Printronics Circuit Corp.
Note    In April 2021, the Company acquired 100% interest in Moka International Limited with a cash
5       consideration of RMB2,800,000,000. Thus, the difference between the accumulated investment of the
        Company in Moka International Limited (corresponding to the 100% interest) and the fair value of the
        net identifiable assets of Moka International Limited attributable to the Company on the settlement date
        (equal to RMB1,728,973,000) was recorded in the Company’s goodwill.
Note    In April 2021, the Company acquired 60% interest in Suzhou China Star Optoelectronics Technology
6       Co., Ltd. (formerly known as “Samsung Suzhou LCD Co. Ltd.”) with a cash consideration of
        RMB4,757,727,000. The difference between the accumulated investment of the Company in Suzhou
        China Star Optoelectronics Technology Co., Ltd. (corresponding to the total 70% interest) and the fair
        value of the identifiable net assets of Suzhou China Star Optoelectronics Technology Co., Ltd.
        attributable to the Company on the settlement date (equivalent to RMB486,603,000) was recorded in
        the Company’s goodwill.
Note    In August 2022, the Company acquired in 100% interest in Huizhou Kedate Smart Display Technology
7       Co., Ltd. with a cash consideration of RMB51,000,000. As such, the difference between the investment
        of the Company in Huizhou Kedate Smart Display Technology Co., Ltd. (corresponding to the 100%
        interest) and the fair value of the net identifiable assets of Zhonghuan Electronics attributable to the
        Company on the settlement date (equal to RMB3,011,000) was recorded in the Company’s goodwill.
(III)   Goodwill impairment test
        The Company carried out an impairment test of its goodwill on December 31, 2022. The recoverable
        amount of the Qingdao Blue Business Consulting Co., Ltd., Tianjin Zhonghuan Advanced Materials &
        Technology Co., Ltd., new energy photovoltaic and semiconductor materials, Moka International
        Limited and Suzhou China Star Optoelectronics Technology Co., Ltd.’s asset groups with goodwill was
        calculated with the discounted future cash flow approach, based on the budget approved by the
        management (the budget period is five years). The estimated perpetual annual growth rate was adopted
        to calculate the future cash flow exceeding the budget period. The perpetual annual growth rate
        (primarily 0% - 3%) adopted by the management was consistent with predicted data on the industry.
        The management determines the revenue growth rate (mainly 1.45%-29.62%) and determines the
        EBITDA (mainly 3.51%-13.30%) based on historical experience and forecasts of market development,
        combined with the Company's future development strategic plan and adopt a specific risk discount rate
        (mainly 8%-13.5%) that reflects the relevant asset group. The recoverable amount of the Tianjin
        Printronics Circuit Corp asset group is determined based on the higher of the present value of the
        estimated future cash flows of the asset or the fair value less costs of disposal. After the management
        analyzed the recoverable amount of each asset group based on these assumptions, no provision for
        impairment was required for the goodwill of any of the above asset group as of December 31, 2022.




                                                       90
                             TCL Technology Group Corporation
                                 Notes to Financial Statements
                     For the period from January 1 to December 31, 2022
                                          (RMB’000)

V      Notes to Consolidated Financial Statements (Continued)

24     Long-term deferred expenses
                                           Increase in Amortization
                                  January      current   in current               Others    December
                                   1, 2022      period       period                          31, 2022

        Improvement
       expense on leased
       fixed assets      1,629,475               163,652           (351,972)          110    1,441,265
       Others            1,011,055             1,678,488         (1,261,335)    (125,265)    1,302,943

                                2,640,530      1,842,140         (1,613,307)    (125,155)    2,744,208


25     Deferred income tax assets and deferred income tax liabilities
 (1)    Un-offset deferred income tax assets

                                                      December 31,
                                                          2022                       January 1, 2022
                                     Deductible             Deferred           Deductible     Deferred
                                     temporary               income            temporary        income
                                     difference            tax assets          difference tax assets

        Deductible losses            19,383,933            3,055,974            6,739,226   1,087,993
        Asset    impairment
        allowances                    4,132,996                 785,212         3,038,745     633,013
        Provisions                      559,584                  91,408           744,189     117,497
        Changes in fair value            15,398                   2,792            55,287      13,230
        Others                        2,120,079                 230,223         1,546,420     298,690

                                     26,211,990            4,165,609           12,123,867   2,150,423

                                                                                 December 31, 2021
                                                                               Deductible Deferred
                                                                               temporary    income
                                                                               difference tax assets

        Deductible losses                                                       6,758,713 1,090,916
        Asset impairment
        allowances                                                              3,038,745    633,013
        Provisions                                                                744,189    117,497
        Changes in fair
        value                                                                      55,287     13,230
        Others                                                                  1,546,420    298,690

                                                                               12,143,354 2,153,346




                                                   91
                            TCL Technology Group Corporation
                                Notes to Financial Statements
                    For the period from January 1 to December 31, 2022
                                         (RMB’000)

V     Notes to Consolidated Financial Statements (Continued)

25    Deferred income tax assets and deferred income tax liabilities (continued)

(2)   Un-offset deferred income tax liabilities

                                           December 31, 2022                   January 1, 2022
                                           Taxable       Deferred             Taxable      Deferred
                                       temporary                tax        temporary income tax
                                       differences      liabilities       differences     liabilities

      Accelerated depreciation
      of fixed assets                 13,198,261          2,046,374       11,471,272       1,787,699
      One-off tax deduction
      for fixed assets                  6,818,647         1,021,284        3,184,144         501,290
      Increase in value of
      assets as assessed in
      business combination              1,627,106           378,993        2,491,577         531,018
      not involving entities
      under common control
      Changes in fair value               331,292            71,725          527,471         129,006
      Government grants                   126,141            18,921          273,470          41,021
      Others                              826,685           193,853          721,284         168,952

                                      22,928,132          3,731,150       18,669,218       3,158,986

(3)   There were no deferred tax assets or liabilities presented on a net basis after offsetting

                                                    Amount subject
                                                    to mutual offset
                                                         of deferred
                Item                              income tax assets              Closing balance of
                                                   against liabilities          deferred income tax
                                                    at the end of the       assets or liabilities after
                                                               period                           offset

      Deferred income       tax
      assets                                            (2,411,722)                        1,753,887
      Deferred income       tax
      liabilities                                       (2,411,722)                        1,319,428

(4)   Unrecognized deferred income tax assets

                                                       December 31,
                                                                                    January 1, 2022
                                                             2022

      Deductible temporary
      difference                                            306,669                         181,612
      Deductible losses                                  10,302,065                       5,840,378

                                                         10,608,734                       6,021,990




                                                  92
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                                             (RMB’000)

 V       Notes to Consolidated Financial Statements (Continued)

25      Deferred income tax assets and deferred income tax liabilities (continued)

        Deductible losses in respect of unrecognized deferred income tax assets will expire in the
(5)     following years:

                                                      December 31, 2022                      January 1, 2022

         2021                                                              -                           178,533
         2022                                                        268,388                           268,913
         2023                                                        472,917                           477,404
         2024                                                        472,157                           476,543
         2025                                                        440,443                           464,426
         2026 onwards                                              8,648,160                         3,974,559

                                                               10,302,065                            5,840,378


26     Other non-current assets
                                  December 31, 2022                                January 1, 2022
                        Gross        Impairment         Carrying          Gross       Impairment        Carrying
                       amount         allowance          amount          amount        allowance         amount

      Advance
      payment for
      equipment
      and land use
      rights (Note)   5,426,643               -        5,426,643       6,310,004               -       6,310,004
      Advance
      payment for
      patents          273,348                -          273,348         211,606               -         211,606
      Others           593,952                -          593,952         927,399               -         927,399

                      6,293,943               -        6,293,943       7,449,009               -       7,449,009


 Note        The Company reclassifies long-lived assets such as advance payment for equipment and
             land use rights reflected in prepaid accounts to other non-current assets.




                                                       93
                           TCL Technology Group Corporation
                               Notes to Financial Statements
                   For the period from January 1 to December 31, 2022
                                        (RMB’000)

V     Notes to Consolidated Financial Statements (Continued)
27   Short-term borrowings
                                                    December 31,
                                                          2022                  January 1, 2022

      Unsecured borrowings                            10,214,632                      9,315,505
      Borrowings secured by
      pledge                                                   -                         22,549
      Interest payable                                     1,279                          3,373

                                                      10,215,911                      9,341,427

      As of December 31, 2022, the Company has no pledged short-term loans.
      As of December 31, 2022, the Company does not have any short-term borrowings that have
      expired and have not been repaid.
28   Borrowings from the Central Bank
      As of December 31, 2022, the balance of the borrowings of TCL Tech Finance Co., Ltd. (a
      subsidiary of the Company) from the central bank was RMB777,676,000 (December 31,
      2021: RMB1,437,062,000).
29   Customer deposits and deposits from banks and other financial institutions
                                               December 31, 2022                January 1, 2022

      Customer deposits and deposits from
      other banks and financial institutions              603,423                       666,056

      Customer deposits and deposits from banks and other financial institutions are the deposits
      of related and nonrelated enterprises absorbed by TCL Tech Finance Co., Ltd., a subsidiary
      of the Company, within the business scope approved by the regulatory authority.




                                               94
                             TCL Technology Group Corporation
                                 Notes to Financial Statements
                     For the period from January 1 to December 31, 2022
                                          (RMB’000)

V      Notes to Consolidated Financial Statements (Continued)
30   Held-for-trading financial liabilities
                                              December 31, 2022                January 1, 2022

       Measured at fair value with changes
       included
       Financial liabilities at fair value
       through profit or loss.                            861,912                      925,035
31   Derivative financial liabilities
                                              December 31, 2022                January 1, 2022

       Derivative financial liabilities                    70,735                       22,205
32   Notes payable
                                              December 31, 2022                January 1, 2022

       Bank acceptance notes                           5,731,632                     2,877,554
       Trade acceptance notes                            634,028                       397,742

                                                     6,365,660                     3,275,296
       As of December 31, 2022, the Company had no notes payable that were due but not paid.
33   Accounts payable
                                              December 31, 2022                 January 1, 2022

       Amounts due to suppliers                       26,381,912                    24,297,860

       As of December 31, 2022, there were no significant accounts payable aged over one year.




                                              95
                                      TCL Technology Group Corporation
                                          Notes to Financial Statements
                              For the period from January 1 to December 31, 2022
                                    ___________(RMB’000)_____________
V        Notes to Consolidated Financial Statements (Continued)
34     Advances from customers
                                                           December 31, 2022             January 1, 2022

       Advances from customers                                          1,402                      5,794

       As of December 31, 2022, the Company had no significant accounts receivable aged over one year.

35     Contract liabilities
                                                             December 31, 2022           January 1, 2022

       Advances from customers                                       2,336,008                 2,593,882

36     Employee benefits payable and long-term employee benefits payable

 (1)     Employee compensation payable
                                                             December 31, 2022           January 1, 2022

        Short-term employee benefits payable                         2,341,429                 3,274,021
        Defined contribution plans payable                              26,353                    34,383
        Dismissal benefits payable                                       9,151                     3,529

                                                                     2,376,933                 3,311,933




                                                     96
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________
V     Notes to Consolidated Financial Statements (Continued)

36    Employee benefits payable and long-term employee benefits payable (continued)

(1)   Employee benefits payable (continued)

(a)   Short-term employee benefits presented

                                                        Increase in
                                                            current     Decrease in     December 31,
                                    January 1, 2022          period   current period          2022

      Wages,            bonuses,
      allowances and subsidies            2,885,187      9,034,445      (9,885,394)         2,034,238
      Employee services and
      benefits                                 27,664     457,363         (485,027)                 -
      Social insurance benefits                46,565     363,378         (371,838)            38,105
      Including:         medical
      insurance premium                        44,622     333,609         (341,480)            36,751
              Employment
      injury           insurance
      premiums                                   953       17,863          (18,121)               695
              Maternity
      insurance                                   990      11,906          (12,237)               659
      Housing fund                             30,326     328,930         (331,339)            27,917
      Trade union funds and
      staff education funds                 27,575        186,515         (164,672)            49,418
      Others                               256,704          3,408          (68,361)           191,751
                                                                                  -
                                          3,274,021     10,374,039     (11,306,631)         2,341,429

      Defined      contribution
(b)
      plans

                                                        Increase in
                                                                        Decrease in
                                                            current                     December 31,
                                                                      current period
                                    January 1, 2022          period                           2022

      Basic pension insurance                  32,979     702,985         (710,583)            25,381
      Unemployment insurance                    1,404      21,162          (21,594)               972

                                               34,383     724,147         (732,177)            26,353


(2)   Long-term employee compensation payable

                                                             December 31, 2022         January 1, 2022

      Supplementary pension insurance                                    25,101                26,595
      Other long-term benefits                                          447,437               643,336

                                                                        472,538               669,931




                                                   97
                                   TCL Technology Group Corporation
                                       Notes to Financial Statements
                           For the period from January 1 to December 31, 2022
                                 ___________(RMB’000)_____________
 V        Notes to Consolidated Financial Statements (Continued)

37        Taxes and levies payable
                                                               December 31, 2022               January 1, 2022

          Corporate income tax                                             731,839                   1,020,711
          Value-added tax                                                  211,873                      30,967
          Individual income tax                                             42,611                      39,920
          Urban maintenance and construction tax                            60,858                      43,081
          Education surcharges                                              43,495                      30,800
          Others                                                           124,915                      73,370

                                                                          1,215,591                    1,238,849
          Please refer to Note IV for the standards for provisions for taxes and the applicable tax rates.

38        Other payables
                                                            December 31, 2022                  January 1, 2022

     Dividends payable                                                 40,010                           34,607
     Other payables                                                24,150,342                       19,352,281

                                                                   24,190,352                       19,386,888


(1)     Dividends payable
                                                                December 31, 2022              January 1, 2022
  Other non-controlling interests                                         40,010                       34,607

                                                                            40,010                      34,607




                                                       98
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

V      Notes to Consolidated Financial Statements (Continued)

 38    Other payables (continued)
(2)   Other payables
                                                     December 31, 2022      January 1, 2022

       Payables for engineering equipment                    19,130,372         13,368,026
       Unpaid expenses                                        2,195,904          1,531,544
       Security deposits                                        353,207            210,975
       Others                                                 2,470,859          4,241,736

                                                             24,150,342         19,352,281




                                              99
                                 TCL Technology Group Corporation
                                     Notes to Financial Statements
                         For the period from January 1 to December 31, 2022
                               ___________(RMB’000)_____________

V       Notes to Consolidated Financial Statements (Continued)
39     Non-current liabilities due within one year
                                                                        December 31,          January 1, 2022
                                                                              2022

        Long-term borrowings due within one year
                                                            41
        (Note 1)                                                            4,341,300               6,062,928
        Bonds payable due within one year (Note 2)          42              5,170,383               5,646,822
        Current portion of lease liabilities                43                295,010                 681,087
        Current portion of long-term payables                                 179,127                 168,132
        Current portion of interest payable                                   552,181                 447,796
        Long-term employee compensation payable
        due within one year                                                    419,320                           -

                                                                        10,957,321          13,006,765
Note 1 The interest rates of the Company’s long-term borrowing ranged from 2.7% to -5.91% in the
       current period (2021: 0.46% - 4.15%).
Note 2 The Company's bonds payable due within one year are mainly as follows:
       ①Medium-term note 20TCL Technology MTN001: Issued in March 2020, with a term of 3 years,
       the closing balance as of December 31 was RMB2,999,441,000.
       ②Corporate bond 18TCL 01: Issued in June 2018, with a term of 5 years, the closing balance as of
       December 31 was RMB169,761,000.
       ③Corporate bond 18TCL 02: Issued in August 2018, with a term of 5 years, the closing balance as
       of December 31 was RMB2,001,181,000.
40     Other current liabilities
                                                                        December 31,          January 1, 2022
                                                                              2022

        After-sales service expense (note)                                    844,293                 792,847
        Output tax to be transferred                                          175,626                 286,384
        Others                                                                165,929                 190,656

                                                                            1,185,848               1,269,887

Note    After-sales service expense expected to occur within 1 year is presented in other current liabilities.




                                                     100
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

 V     Notes to Consolidated Financial Statements (Continued)
41   Long-term borrowings
                                                          December 31, 2022           January 1, 2022

      Borrowings secured by collateral                             42,317,366              39,633,561
      Borrowings secured by pledge                                  6,675,371                 928,156
      Unsecured borrowings                                         73,951,728              52,780,293

                                                                 122,944,465               93,342,010

       Including: long-term loans due within one year             (4,341,300)             (6,062,928)

                                                                 118,603,165               87,279,082

       The maturities of the Company's long-term borrowings vary from 2023 to 2037.

       As of December 31, 2022, the long-term borrowings secured by collateral were equivalent to
       RMB42,317,366,000 (including amounts translated from other currencies) (December 31,
       2021: RMB39,633,561,000), which were secured by the collaterals of the land use right, houses
       and buildings, machinery and equipment of about RMB110,182,749,000 (including amounts
       translated from other currencies) (December 31, 2021: RMB66,737,167,000); the long-term
       pledged borrowings were equivalent to RMB6,675,371,000 (December 31, 2021:
       RMB928,156,000), which were pledged by the collaterals of the 60% equity in Suzhou China
       Star Optoelectronics Technology Co., Ltd., 100% equity in Suzhou China Star Optoelectronics
       Display Co., Ltd. and 40% equity in Huansheng Solar (Jiangsu) Co., Ltd. and accounts
       receivable and contract assets of about RMB757,751,000 (December 31, 2021:
       RMB328,069,000).

       The interest rates of the Company’s long-term borrowing ranged from 2.40% to -7.75% in the
       current period (2021: 1.3% - 5.70%).
42   Bonds payable
                                                               December 31,
                                                                     2022             January 1, 2022

       Corporate bonds                                             4,518,438               8,073,016
       MTN                                                         7,488,413               4,993,265

                                                                  12,006,851              13,066,281




                                                101
                                                                               TCL Technology Group Corporation
                                                                                   Notes to Financial Statements
                                                                       For the period from January 1 to December 31, 2022
                                                                             ___________(RMB’000)_____________

V        Notes to Consolidated Financial Statements (Continued)
42       Bonds payable (continued)

(1)      Movements in bonds payable
                                                                                                  Balance at      Issued in       Accrued     Amortization
                                                                                                                                                              Repaid in
                Bond name              Par value      Issue date     Maturity Issued amount      the beginning     current       interest as  of premium                    Others (note 1)   December 31,
                                                                                                                                                            current period
                                                                                                 of the period      period      per par value or discount                                            2022
         18TCL01                         1,000,000    June 6, 2018         5        1,000,000          169,162                -         6,462           248               -      (169,410)               -
                                                        August 20,
         18TCL02                         2,000,000            2018         5        2,000,000        2,003,039             -           72,269        (1,079)               -    (2,001,960)              -
         19TCL01                         1,000,000   May 20, 2019          5        1,000,000          998,630     1,000,000           34,249          1,634     (1,000,000)              -      1,000,264
         19TCL02                         1,000,000   July 23, 2019         5        1,000,000          998,568       980,000           37,061        (2,046)       (980,000)              -        996,522
                                                       October 21,
         19TCL03                         2,000,000            2019         5        2,000,000        1,996,860       340,000           69,365            74      (1,900,000)              -        436,934
                                                        March 27,
         20TCL 科技 MTN001               3,000,000            2020         3        3,000,000        2,997,041                -      108,888             388               -    (2,997,429)              -
         TCL TEC1                        1,957,483   July 14, 2020         5        1,957,483        1,906,757                -       39,176           1,369               -        176,592      2,084,718
         21TCL Ji MTN001 (High-
         Growth Debt)                    2,000,000 May 10, 2021            3        2,000,000        1,996,224                -        83,227          1,597               -              -      1,997,821
                                                    January 14,
         22TCL 集 MTN001                 2,000,000         2022            3        2,000,000                 -    2,000,000           66,542        (2,608)               -              -      1,997,392
                                                       April 27,
         22TCL 集 GN002                  1,500,000         2022            3        1,500,000                 -    1,500,000           33,768        (2,783)               -              -      1,497,217
         22TCL Group MTN003
         (Science and Technology
         Notes)                          2,000,000    July 6, 2022         3        2,000,000                 -    2,000,000           33,838        (4,017)               -              -      1,995,983

         Total                          19,457,483          ——       ——        19,457,483         13,066,281     7,820,000      584,845          (7,223)     (3,880,000)    (4,992,207)     12,006,851
Note 1   Others are bonds payable within one year which are reclassified to non-current liabilities due within one year and exchange adjustment.




                                                                                                    102
                                 TCL Technology Group Corporation
                                     Notes to Financial Statements
                         For the period from January 1 to December 31, 2022
                               ___________(RMB’000)_____________


 V     Notes to Consolidated Financial Statements (Continued)
43   Lease liabilities
                                                            December 31, 2022                   January 1, 2022

       Total lease liabilities                                        4,756,393                       1,783,159

       Less: current portion of lease liabilities                          295,010                      681,087

                           Total                                      4,461,383                       1,102,072
44   Long-term payables
                                                            December 31, 2022                   January 1, 2022

       Finance lease                                                      887,763                      671,344

45   Deferred income
                                                            Increase in        Decrease in
                                                                                                  December 31,
                                    January 1, 2022             current            current
                                                                                                        2022
                                                                 period             period

       Government grants                   2,361,171        7,178,621          (7,071,647)           2,468,145
       Others                                     34                -                 (34)                   -

                                           2,361,205        7,178,621          (7,071,681)           2,468,145

 Items involving government grants


                                           Amount                            Amount
                                                           Amount
                                          recorded                            used to
                                 New                   recorded in
                                            in non-                       offset costs
                             grants in                        other                            Other
              January 1,                  operating                               and                December
                              current                    income in                           changes
                  2022                   income in                        expenses in                 31, 2022
                               period                       current
                                            current                           current
                                                             period
                                             period                            period
 Government
 grants
 related to
 assets     1,273,978 2,351,183            (2,329)     (240,723)           (217,641) (2,211,426)       953,042
 Government
 grants
 related to
 income     1,087,193 4,827,438            (5,225) (2,513,186) (1,801,310)               (79,807) 1,515,103

              2,361,171 7,178,621          (7,554) (2,753,909) (2,018,951) (2,291,233) 2,468,145


Note "Other changes" were deferred income offset by the carrying amounts of relevant assets.
 V       Notes to Consolidated Financial Statements (Continued)




                                                      103
                                 TCL Technology Group Corporation
                                     Notes to Financial Statements
                         For the period from January 1 to December 31, 2022
                               ___________(RMB’000)_____________

46    Estimated liabilities

                                                      December 31, 2022       January 1, 2022

     After-sales service fee of products                        27,105                      -
     Pending litigation                                         70,379                      -
     Onerous contract                                               38                      -

                                                                97,522                      -




                                                104
                                                                     TCL Technology Group Corporation
                                                                         Notes to Financial Statements
                                                             For the period from January 1 to December 31, 2022
                                                                   ___________(RMB’000)_____________

V        Notes to Consolidated Financial Statements (Continued)
47     Share capital
                                                     January 1, 2022                           Increase or decrease in current period                        December 31, 2022
                                                    Amount         Ratio (%)                New issues              Others                 Subtotal          Amount         Ratio (%)

         I. Restricted shares                       612,110             4.36%                2,806,128                 1,982            2,808,110          3,420,220             20.03%
         II. Unrestricted shares                 13,418,532            95.64%                  235,122               (1,982)              233,140         13,651,672             79.97%
         III. Total shares                       14,030,642             100%                 3,041,250                     -            3,041,250         17,071,892              100%

         As of December 31, 2022, the Company's total share capital was 17,071,892 thousand shares.

Note     Except for Chairman of the Board Mr. Li Dongsheng who holds restricted shares subscribed for in a private placement, none of the other incumbent directors, supervisors or
         senior management hold any restricted shares from a split-share structure reform or a private placement. The shares held by these personnel will stay partially frozen as per the
         Rules on the Management of Shares Held by the Directors, Supervisors and Senior Management Officers of the Company and the Changes thereof. The trading and information
         disclosure in relation to these shares shall be in strict compliance with the applicable laws, regulations and rules.




                                                                                          105
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________

V     Notes to Consolidated Financial Statements (Continued)
48   Other equity instruments
                                                         Increase in
                                                             current     Decrease in
                                January 1, 2022               period   current period December 31, 2022

       Convertible bonds                200,334                    -        200,334                     -
49   Capital reserves
                                                         Increase in    Decrease in
                                                             current        current
                                January 1, 2022               period         period   December 31, 2022

      Share premium                   6,068,268          8,414,593      (2,044,871)          12,437,990
      Other capital reserves             10,999             90,516         (16,712)              84,803

                                      6,079,267          8,505,109      (2,061,583)          12,522,793
50   Treasury stock
                                                         Increase in    Decrease in
                                                             current        current
                                 January 1, 2022              period         period   December 31, 2022

       Treasury stock                 1,885,557            502,771      (1,073,747)           1,314,581

      Increase in the period is the result of repurchase of shares from the Company's Employee Stock
      Ownership Plan. The 16th meeting of the Seventh Session of the Board of Directors held by the
      Company on March 18, 2022 deliberated on and approved the Repurchase Report on the Repurchase
      of Some Public Shares in 2022. The repurchase of the company shares will be used for the Employee
      Stock Ownership Plans or equity incentives. As of December 31, 2022, the total number of shares
      repurchased was 106,484,000 shares at the total consideration of RMB502,771,000.
      Decrease in this year is mainly due to reduction of RMB997,082,000 in the conversion of convertible
      bond TCL fixed conversion 2, and the number of shares converted by 293,416,000.




                                                   106
                                   TCL Technology Group Corporation
                                       Notes to Financial Statements
                           For the period from January 1 to December 31, 2022
                                 ___________(RMB’000)_____________

 V      Notes to Consolidated Financial Statements (Continued)
51     Other comprehensive income
(1)    Other comprehensive income items, income tax effects and reclassifications to profit or loss
                                                                                2022          2021

      I. Items that cannot be reclassified to profit or loss subsequently

      1. Share of other comprehensive income of investees that will
                                                                              (3,568)         1,626
         be reclassified to profit or loss under equity method
      Share of the period                                                     (3,568)         1,626
      Previous other comprehensive income reclassified to retained
      earnings for current period                                                                 -

      2. Changes in fair value of other equity instruments                   (14,581)     (287,845)
      Current gain/(loss)                                                    (19,688)     (212,104)
         Previous other comprehensive income reclassified to
      retained earnings for current period                                     16,811     (122,821)
         Income tax effects recorded in other comprehensive income           (11,704)       47,080

      II. Items that will be reclassified to profit or loss subsequently

      1. Share of other comprehensive income of investees that will
                                                                             (13,936)     (268,688)
         be reclassified to profit or loss under equity method
      Share of the period                                                    (13,936)     (268,688)
      Income tax effects recorded in other comprehensive income                                   -

      2. Changes in fair value of financial assets recorded in other
         comprehensive income                                                       -             -
      Current gain/(loss)                                                           -             -

      3. Cash flow hedges                                                     91,730        65,566
      Current gain/(loss)                                                    163,220        77,992
         Previous other comprehensive income reclassified to profit
      for current period                                                     (58,996)             -
         Income tax effects recorded in other comprehensive income           (12,494)      (12,426)

      4. Differences arising from translation of foreign currency
        financial statements of overseas operations                         (386,679)      245,338

      5. Net income arising from disposal of overseas operations
        through profit or loss                                                      -             -
                                                                            (327,034)     (244,003)




                                                        107
                                                                     TCL Technology Group Corporation
                                                                         Notes to Financial Statements
                                                             For the period from January 1 to December 31, 2022
                                                                   ___________(RMB’000)_____________

V        Notes to Consolidated Financial Statements (Continued)

 51     Other comprehensive income (continued)
(2)    Changes in other comprehensive income items

                                                                Equity attributable to shareholders of the parent company
                                         Share of other
                                        comprehensive                               Differences
                                             income of Gain/loss                   arising from
                                          investees that        on                translation of                                  Other
                                                 will be changes Gain/(Loss)              foreign Fair value             comprehensive
                                         reclassified to    in fair on changes        currency- changes of Fair value           income
                            Accounting     profit or loss value of      in cash denominated             other changes of transferred to                Non-      Total other
                                 policy    under equity financial          flow         financial      equity other debt       retained           controlling comprehensive
                               changes          method      assets      hedges       statements instruments instruments       earnings    Subtotal interests        income

      January 1, 2021          334,950          313,950 (350,569)       (5,688)      (509,439)      71,195            -             28 (145,573)    (18,972)      (164,545)

      Increase        and
      decrease for 2021               -       (267,062)           -     68,234         270,260 (212,485)              -      (122,821) (263,874)      19,871      (244,003)

      January 1, 2022          334,950           46,888 (350,569)       62,546       (239,179) (141,290)              -      (122,793) (409,447)         899      (408,548)

      Increase        and
      decrease for 2022               -        (17,501)           -     15,615       (397,531)    (16,420)            -         13,462 (402,375)      75,341      (327,034)

      December 31, 2022        334,950           29,387 (350,569)       78,161       (636,710) (157,710)              -      (109,331) (811,822)      76,240      (735,582)




                                                                                      108
                                 TCL Technology Group Corporation
                                     Notes to Financial Statements
                         For the period from January 1 to December 31, 2022
                               ___________(RMB’000)_____________

 V      Notes to Consolidated Financial Statements (Continued)
52   Surplus reserves
                                                           Increase in       Decrease in
                                                               current           current       December 31,
                                   January 1, 2022              period            period             2022

      Statutory          surplus
      reserves                           2,367,303          1,162,100                  -           3,529,403
      Discretionary      surplus
      reserves                             182,870                   -                 -             182,870

                                         2,550,173          1,162,100                  -           3,712,273

       As per China's Company Law, Articles of Association for Companies, accounting standards, the
       Company and several of its subsidiaries shall appropriate 10% of net profits as statutory surplus
       reserves until the reserve amount reaches 50% of the registered capital. According to the aforesaid
       laws and regulations, part of the statutory surplus reserves can be converted into share capital of the
       Company, and the remaining amount shall not be lower than 25% of the registered capital.

       After the appropriation to the statutory surplus reserves, the Company may appropriate the
       discretionary surplus reserves. Upon approval, the discretionary surplus reserves can be used to
       make up the previous loss or increase the share capital.

53   Specific reserves

                                                           Appropriation     Decrease in
                                                              in current         current       December 31,
                                   January 1, 2022                period          period             2022

      Production         safety
      reserve                                1,549                  752                    -            2,301

54   General risk reserve

                                                           Appropriation     Decrease in
                                                              in current         current       December 31,
                                   January 1, 2022                period          period             2022

      General risk reserve                   8,934                       -                 -            8,934

       As per the General Rules on Financial Affairs of Financial Enterprises and the Guide to the
       Implementation of the General Rules on Financial Affairs of Financial Enterprises promulgated by
       the Ministry of Finance, as well as the Articles of Association of TCL Technology Group
       Corporation, the Company's subsidiary - TCL Technology Group Corporation - appropriated 1%
       of its net profit as general risk reserve in the previous years.




                                                     109
                                       TCL Technology Group Corporation
                                           Notes to Financial Statements
                               For the period from January 1 to December 31, 2022
                                     ___________(RMB’000)_____________

V      Notes to Consolidated Financial Statements (Continued)
55     Retained earnings
                                                                                             2022                   2021

        Beginning retained earnings                                                      22,458,340           14,009,494
        Change in accounting policies (Note)                                                  6,810                    -
        Net profit for current period                                                       261,319           10,064,254
        Decrease in current period                                                      (3,239,739)          (1,608,598)
        Including: Appropriated as surplus reserves                                     (1,162,100)             (97,831)
               Distributed to ordinary shareholders as
        dividends                                                                       (2,050,003)          (1,625,590)
               Others                                                                      (27,636)              114,823

        Ending retained earnings                                                        19,486,730           22,465,150

         Due to changes in accounting policies, there were RMB6,810,000 undistributed profits at the
         beginning of the period (see Note III. 43 for details).

56     Operating income and operating costs
                                                        2022                                       2021
                                                  Revenue    Cost of sales                   Revenue    Cost of sales

       Core business                       162,197,543               148,928,769         161,111,860         129,716,187
       Non-core business                     4,355,243                 2,996,720           2,545,840           1,440,127

                                           166,552,786               151,925,489         163,657,700         131,156,314

 (1)   Breakdown of operating income deductions

                        Item                           Amount             Details of          Amount           Details of
                                                   incurred in the       deductions        incurred in the    deductions
                                                    current period                            previous
                                                                                               period
       Amount of operating income                     166,552,786                             163,657,700
       Total amount of operating income
       deductions                                        4,355,243                              2,714,152.
       Proportion of the total amount of
       operating income deductions to
       operating income                                    2.61 %                                   1.66%
 (a)   Business income from operations not
       related to the principal activities
       1) Other business income from
       activities    other     than      normal
       operations. Such income consists of
       income from leasing fixed assets,
       intangible assets, packaging, sales of
       materials, exchange of materials for
       non-monetary assets, operations of                4,355,243             Note 1            2,545,840
       managed business, as well as income
       that is included in the revenue from
       main operations but from operations
       other than normal operations of the
       listed company.




                                                                 110
                                     TCL Technology Group Corporation
                                         Notes to Financial Statements
                             For the period from January 1 to December 31, 2022
                                   ___________(RMB’000)_____________

V     Notes to Consolidated         Financial
      Statements (Continued)

      Operating income and operating costs
56
      (continued)

      Breakdown of operating          income
(1)
      deductions (continued)

      Item                                              Amount        Details of          Amount      Details of
                                                 incurred in the     deductions    incurred in the   deductions
                                                  current period                         previous
                                                                                           period

      2) Income from unqualified financial
      businesses, such as interest income
      from lending funds; income from
      quasi-financial businesses added in the
      accounting year as well as the previous
                                                               -                          168,312        Note 2
      accounting year, such as guarantees,
      commercial factoring, small loans,
      financial leasing, pawning, except for
      financial leasing business carried out
      for the sale of main products.
      3) Income from new trading business
      in the current accounting year and the                   -                                 -
      previous accounting year.
      4) Income from related transactions
      not related to the listed company's                      -                                 -
      existing normal operations.
      5) Income from the beginning of the
      period to the merger date for
                                                               -                                 -
      subsidiaries under the common
      control.
      6) Income from businesses that have
      not formed or are difficult to form a                    -                                 -
      stable business model.
      Subtotal of income from the business
                                                      4,355,243                         2,714,152
      not related to principal activities
(b)   Income without commercial substance
      1) Income from transactions or events
      in which risk, time distribution or
      amount of future cash flows of the                       -         Note 3                  -
      enterprise      are    not       changed
      significantly.
      2) Income from transactions that do
      not have a real business. For example,
      false income realized by self-trading                    -                                 -
      or from transactions formed by
      Internet technology or other methods.
      3) Income from operations in which
      the transaction price is obviously                       -                                 -
      unfair.
      4) Income from subsidiaries or
      businesses acquired through business
      combination with obviously unfair                        -                                 -
      consideration or non-transactional
      means in this accounting year.
      5) Income involved in non-standard
                                                               -                                 -
      audit opinions.




                                                               111
                                     TCL Technology Group Corporation
                                         Notes to Financial Statements
                             For the period from January 1 to December 31, 2022
                                   ___________(RMB’000)_____________

 V     Notes to Consolidated Financial Statements (Continued)

 56    Operating income and operating costs (continued)

       Breakdown of operating        income
 (1)
       deductions (continued)

       Item                                            Amount              Details of             Amount         Details of
                                                incurred in the           deductions       incurred in the      deductions
                                                 current period                                  previous
                                                                                                   period

       6) Income from other transactions or
       events that are not commercially                         -                                        -
       reasonable.
       Subtotal    of    income      without
                                                                -                                        -
       commercial substance
 (c)   Other income that is irrelevant to the
       principal activities     or without                      -             Note 4                     -
       commercial substance

       Amount after deducting operating
                                                 162,197,5434                                 160,943,548
       income
Note 1 TCL TECH. is mainly engaged in the production of semiconductor display, new energy photovoltaic,
semiconductor materials, and other products. Since other income from sales of raw materials, scraps, lease,
and processing are that realized from the operation other than the principal activities, it will be deducted.

Note 2 In May 2021, the second extraordinary meeting of TCL TECH. deliberated and approved the disposal
of 100% stake in TCL Financial Holding Group (Guangzhou) Co., Ltd., and the income from quasi-financial
business realized by such company in January-May 2021 was deducted.

Note 3 TCL TECH. does not have such income deductions in 2022 (2021: Nil)

Note 4 TCL TECH. exercised its duties in sales contracts, and recognized revenue when customers obtained
control of related goods or services. In 2022, all TCL TECH.’s sales contracts are of commercial substance,
and no income was without commercial substance was recognized (2021: Nil).


 (2)   Business by operating segment

                               Revenue                                Cost of sales                     Gross profit
                              2022              2021                  2022          2021               2022          2021

       Domestic
       sales    119,139,823 104,781,994                   108,166,269         85,584,452       10,973,554      19,197,542
       Foreign
       sales     47,412,963 58,875,706                     43,759,220         45,571,862        3,653,743      13,303,844

                     166,552,786 163,657,700              151,925,489        131,156,314       14,627,297      32,501,386

 (3)   The sales revenue from the top five customers combined was RMB50,108,344,000 and
       RMB57,063,520,000 respectively for 2022 and 2021, accounting for 30.9% and 35.4% of the core
       business revenue.




                                                                112
                                 TCL Technology Group Corporation
                                     Notes to Financial Statements
                         For the period from January 1 to December 31, 2022
                               ___________(RMB’000)_____________


V     Notes to Consolidated Financial Statements (Continued)

56    Operating income and operating costs (continued)

(4)   Revenue and costs generated from the Company's trial sales are as follows:
                                                                2022                             2021

      Revenue                                                739,823                          117,141
      Cost of sales                                          721,126                           79,064


57    Interest income/expense and exchange gain
                                                                2022                             2021

      Interest income                                         79,360                          150,083
      Interest expenditures                                   23,530                            34,936
      Exchange gain/(loss)                                    17,914                           (1,224)

      The interest income, interest expense and exchange gain/(loss) above occurred with the Company's
      subsidiary TCL Tech Finance Co., Ltd., which are presented separately herein as required for a
      financial enterprise.
58    Taxes and levies
                                                                   2022                          2021

      Property tax                                              265,880                       221,506
      Stamp tax                                                 218,367                       161,505
      Urban maintenance and construction tax                     68,890                       126,384
      Education surcharges                                       35,730                        90,303
      Land use tax                                               30,732                        27,531
      Others                                                     20,703                        20,706

                                                                640,302                       647,935

      The applicable tax and levy standards are
      detailed in Note IV.




                                                 113
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

 V   Notes to Consolidated Financial Statements (Continued)
59   Selling expenses
                                                              2022             2021

     Employee salaries and benefits                        601,948          593,521
     After-sales service expense                           400,771          617,663
     Promotional and marketing expenses                    298,422           58,927
     Others                                                649,387          649,174

                                                         1,950,528         1,919,285
60   General and administrative expense
                                                              2022             2021

     Employee salaries and benefits                      1,337,491         1,823,044
     Depreciation and amortization expenses                792,780           737,318
     Digital development expenses                          315,537           254,688
     Others                                              1,094,803         1,578,270

                                                         3,540,611         4,393,320
61   R&D expenses

                                                              2022             2021

     Depreciation and amortization expenses             2,983,043          2,477,618
     Material expenses                                  2,940,584          2,703,695
     Employee salaries and benefits                     1,767,546          1,421,683
     Others                                               942,465            633,345

                                                        8,633,638          7,236,341
62   Financial expenses

                                                              2022             2021

     Interest expenditures                              4,468,008          4,125,399
     Interest income                                    (723,665)          (446,450)
     Exchange loss / (gain)                             (447,876)           (55,357)
     Others                                               126,428            104,323

                                                        3,422,895          3,727,915




                                              114
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 V   Notes to Consolidated Financial Statements (Continued)
63   Other income
                                                                2022            2021

     R&D subsidies                                          2,454,585       1,844,420
     VAT rebates on software                                   44,280          31,186
     Over-deduction in taxable amount for VAT                   1,381           1,374
     Others                                                   417,548          90,770

                                                            2,917,794       1,967,750
64   Return on investment
                                                                2022            2021

     Gain on disposal of debt instruments at fair
     value through profit or loss
                                                             238,803         526,862
     Gain on disposal of debt instruments at fair
     value through profit or loss
     Gain on disposal of debt instruments at fair
     value through profit or loss
                                                             (15,097)        (40,149)
     Gain on disposal of equity instruments at fair
     value through profit or loss
     Gain on disposal of debt instruments at fair
     value through profit or loss
                                                              18,758        (132,695)
     Gain on holding of equity instruments at fair
     value through profit or loss
     Gain on disposal of debt instruments at fair
     value through profit or loss
                                                              69,748         263,901
     Gain on holding of debt instruments at fair
     value through profit or loss
     Share of net income of associates                      2,958,218       3,152,870
     Share of net income of joint ventures                   (59,479)          65,001
     Net income from disposal of long-term
     equity investments                                     1,823,568       (159,433)
     Others                                                 (303,125)         228,169

                                                            4,731,394       3,904,526



65   Gain on changes in fair value

                                                                2022            2021

     Held-for-trading financial assets                      (257,067)         155,320
     Derivative financial assets                               23,437       (317,003)
     Held-for-trading financial liabilities                   (1,678)          12,941
     Derivative financial liabilities                          96,064           2,158

                                                            (139,244)       (146,584)




                                                      115
                              TCL Technology Group Corporation
                                  Notes to Financial Statements
                      For the period from January 1 to December 31, 2022
                            ___________(RMB’000)_____________

 V   Notes to Consolidated Financial Statements (Continued)
66   Credit impairment loss
                                                                   2022                     2021

     Loss on uncollectible accounts receivable                 (44,955)                 (122,892)
     Loss on uncollectible other receivables                    (6,172)                  (17,349)
     Other financial assets                                      13,474                    47,985

                                                               (37,653)                  (92,256)
67   Asset impairment loss
                                                                   2022                     2021

     Inventory valuation loss                                (3,083,928)              (1,924,306)
     Impairment loss on long-term equity
     investments                                              (319,981)                         -
     Loss on impairments of fixed assets                       (53,890)                 (592,497)
     Impairment loss on contract assets                         (6,151)                         -
     Loss on impairments of intangible assets                     (442)                  (78,909)
     Loss on impairments of construction in
     progress                                                         -                 (146,160)
     Others                                                    (22,131)                 (169,592)

                                                             (3,486,523)              (2,911,464)
68   Asset disposal income
                                                                   2022                     2021

     Income/(loss) from disposal of fixed assets               (71,718)                  (60,496)
     Others                                                     (8,107)                    20,062

                                                               (79,825)                  (40,434)
69   Non-operating income
                                                                                  Amount through
                                                                                      current non-
                                                                                   recurring gains
                                                     2022                  2021         and losses

     Gains on retired or damaged non-
     current assets                                    117                 259               117
     Government grants and others                  789,995             351,721           789,995

                                                   790,112             351,980           790,112




                                                   116
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

 V    Notes to Consolidated Financial Statements (Continued)
70    Non-operating expense
                                                                               Amount through
                                                                                   current non-
                                                                                recurring gains
                                                       2022             2021         and losses

      Losses on retired or damaged non-
      current assets                               19,377             21,233           19,377
      Donation                                     70,222                  -           70,222
      Others                                       62,472            119,221           62,472

                                                 152,071             140,454          152,071
71    Income tax expenses
(1)   Table of income tax expenses
                                                                    2022                 2021

      Current income tax expense                                  734,639           2,274,141
      Deferred income tax expense                             (1,465,647)             333,907

                                                               (731,008)            2,608,048
(2)   Accounting profit and income tax adjustment process
                                                                     2022                2021

      Gross profit                                              1,057,051          17,583,577
      Income      tax     expense   calculated    at
      statutory/applicable tax rate                               158,558            4,395,894
      Impact of different tax rates applied to
      subsidiaries                                                383,590          (1,121,466)
      Impact of adjusting income tax in previous
      periods                                                     (12,613)           (102,803)
      Impact of non-taxable income                               (704,581)           (340,956)
      Impact of non-deductible costs, expenses and
      losses                                                      107,325             112,433
      Impact of the use of deductible losses carry
      forward without recognize deferred tax assets
      in the previous periods                                    (576,264)           (424,609)
      Impact of unrecognized deferred tax assets of
      deductible temporary differences or deductible                                  652,219
      losses in the current period                                 730,522
      Others                                                     (817,545)           (562,664)

      Income tax expense                                         (731,008)           2,608,048




                                                 117
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

V     Notes to Consolidated Financial Statements (Continued)
72    Earnings per share
(1)   Basic EPS
                                                                             2022                 2021

      Net profit attributable to shareholders of the parent
      company                                                             261,319           10,064,253

      Weighted average outstanding ordinary shares (in thousand
      shares)                                                          13,686,001           13,476,907

      Basic earnings per share (RMB yuan/share)                            0.0191               0.7468
(2)   Diluted EPS
                                                                             2022                 2021

      Net profit attributable to shareholders of the parent
      company                                                             261,319           10,064,253

      Diluted weighted average outstanding ordinary shares (in
      thousand shares)                                                 14,144,114           13,675,916

      Diluted earnings per share (RMB yuan/share)                          0.0185               0.7359

73     Cash generated from other operating activities
      Cash received from other related operating activities in the consolidated cash flow statement was
      RMB7,955,973,000 (the same period of the previous year: RMB 7,013,673,000), which primarily
      consisted of current payments received, government grants and special appropriation, etc.
74     Cash used in other operating activities
      Cash paid in other operating activities in the consolidated cash flow statement was RMB
      9,722,343,000 (the same period of the previous year: RMB7,846,247,000), which primarily
      consisted of various expenses and current payments.
75     Cash generated from other investing activities
      Cash received from other related investing activities in the Company's consolidated cash flow
      statement amounted to RMB170,387,000 (the same period of the previous year: RMB33,083,000),
      mainly due to the receipt of project bid bonds.
76     Cash used in other investing activities
      Cash paid for other related investing activities in the Company's consolidated cash flow statement
      amounted to RMB1,212,074,000 (the same period of the previous year: RMB479,761,000), mainly
      due to the refund of project bid bonds and payments for foreign exchange forward delivery.




                                                  118
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

V     Notes to Consolidated Financial Statements (Continued)
77     Cash generated from other financing activities
      Cash received from other related financing activities in the consolidated cash flow statement of the
      Company amounted to RMB272,281,000 (the same period of the previous year: RMB256,271,000),
      mainly including deposits received.
78     Cash used in other financing activities
      Cash paid for other related financing activities in the Company's consolidated cash flow statement
      amounted to RMB6,110,504,000 (the same period of the previous year: RMB6,035,517,000),
      mainly for the repurchase of minority interests in subsidiaries, repurchase of company shares, and
      payment of financial lease payments.

79     Supplementary information for the cash flow statement

(1)   Reconciliation of net profit to net cash generated from/used in operating activities

                                                                               2022                 2021

      Net profit                                                         1,788,059            14,975,529
      Add: Asset impairment allowance                                   3,524,176             3,003,720
      Depreciation of fixed assets                                      19,290,088            15,244,644
      Depreciation of right-of-use assets                                  322,032               225,599
      Amortization of intangible assets                                  1,473,104             1,177,003
      Amortization of long-term prepaid expense                          1,613,307             1,280,074
      Loss/(Gain) on disposal of fixed assets, intangible assets
      and other long-lived assets                                            79,825               40,434
      Loss on retired or damaged fixed assets                                19,260               20,974
      Loss/(Gain) on changes in fair value                                  139,244              146,584
      Financial expenses                                                  4,025,748            4,106,202
      Return on investment                                              (4,731,394)          (3,904,526)
      Decrease/(Increase) in deferred income tax assets                     399,459            (575,258)
      Increase/(Decrease) in deferred income tax liabilities            (1,839,558)              772,489
      Decrease/(Increase) in inventory                                  (4,643,791)          (7,172,706)
      Decrease/(Increase) in operating receivables                        4,576,161          (8,678,460)
      Increase/(Decrease) in operating receivables                      (7,139,434)           13,055,727
      Others                                                              (469,910)            (839,576)

      Net cash generated from operating activities                      18,426,376            32,878,453




                                                     119
                               TCL Technology Group Corporation
                                   Notes to Financial Statements
                       For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

V     Notes to Consolidated Financial Statements (Continued)
79     Supplementary information for the cash flow statement (continued)
(2)    Net cash payments for acquisition of subsidiaries in the
       current period
                                                                             2022                    2021
       Payments of cash and cash equivalents made in current
       period due to business combinations incurred in current             51,000               9,768,401
       period

       Less: cash and cash equivalents held by subsidiary on
                                                                              867               5,628,896
       acquisition date

       Add: Payments of cash and cash equivalents made in
       current period due to business combinations incurred in                   -                       -
       previous periods

       Net cash payments for acquisition of subsidiaries                   50,133               4,139,505

(3)    Net cash proceeds from disposal of subsidiaries in the
       current period
                                                                             2022                    2021
       Cash or cash equivalents received in current period due
                                                                          174,803               1,984,421
       to disposal of subsidiary in current period
       Less: cash and cash equivalents held by subsidiary on the
       date when the Company’s control over the subsidiary                 2,298                 900,316
       ceased
V      Notes to Consolidated Financial Statements (Continued)
79     Supplementary information for the cash flow statement (continued)
(3)    Net cash proceeds from disposal of subsidiaries in the current period (continued)
                                                                              2022                   2021

       Add: Cash or cash equivalents received in current period
       due to disposal of subsidiaries in prior periods                 1,260,290                  80,485

       Net proceeds from the disposal of subsidiaries                   1,432,795               1,164,590
(4)    Breakdown of cash and cash equivalents

                                                                    December 31,
                                                                           2022            January 1, 2022
       I. Cash                                                        33,675,624               30,081,705
       Including: Cash on hand                                               480                       789
               Bank deposits available for payment on demand          32,696,213               28,970,585
               Other monetary assets available for payment on
       demand                                                             919,646                 987,347
               Deposits with the central bank available for
       payment                                                             59,285                 122,984
       II. Cash equivalents                                                     -                       -

       III. Cash and cash equivalents, end of the period              33,675,624               30,081,705




                                                  120
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________


80       Net changes in cash and cash equivalents
                                                                               2022               2021

         Ending cash and cash equivalents                                33,675,624         30,081,705
         Less: Beginning cash                                            30,081,705         18,208,417

         Net increase in cash and cash equivalents                        3,593,919         11,873,288

          Analysis of ending cash and cash equivalents:

         Ending monetary assets                                          35,378,501         31,393,692
         Less: Ending non-cash equivalents (note)                         1,702,877          1,311,987

         Ending cash and cash equivalents                                33,675,624         30,081,705

 Note:    The closing non-cash equivalents primarily included interest receivable on bank deposits, the
          statutory reserve deposits placed by TCL Tech Finance Co., Ltd. in the central bank and other
          monetary assets, detailed in Annex V, 1.




                                                     121
                                TCL Technology Group Corporation
                                    Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                              ___________(RMB’000)_____________

V    Notes to Consolidated Financial Statements (Continued)
81   Assets with restricted ownership or use rights
                                           December 31, 2022            Reason for restriction

                                                                    Deposited in the central bank as
     Monetary assets
                                                      321,852                   the required reserve
     Monetary assets                                1,381,025       Other restricted monetary assets
     Notes receivable                                 264,599                                 Pledge
     Fixed assets                                  96,479,546                  As collateral for loan
     Intangible assets                              4,177,833                  As collateral for loan
     Held-for-trading financial assets                255,173                  Put in pledge for loan
     Construction in progress                      10,383,892                  As collateral for loan
     Right-of-use assets                               18,617                 As collateral for lease
     Accounts receivable                            1,609,334                                 Pledge
     Contract assets                                  271,682                                 Pledge

                                                 115,163,553
82   Foreign currency monetary items
                                                            December 31, 2022
                                               Foreign currency
                                                                  Conversion rate     RMB balance
                                                        balance
     Monetary assets
     Including: USD                                     615,534            6.9646         4,286,948
            HKD                                         240,958            0.8933           215,248
            EUR                                           8,787            7.4250            65,243
            JPY                                       1,540,910            0.0526            81,052
            SGD                                             242            5.1824             1,254

     Accounts receivable
     Including: USD                                    565,703             6.9646         3,939,895
            HKD                                        368,734             0.8933           329,390
            INR                                        652,819             0.0841            54,902
            MXN                                          6,756             0.3570             2,412

     Receivables financing
     Including: USD                                     83,321             6.9646           580,297

     Accounts payable
     Including: USD                                     317,613            6.9646         2,212,047
            HKD                                         622,434            0.8933           556,020
            JPY                                       5,779,166            0.0526           303,984
            INR                                         118,083            0.0841             9,931
            EUR                                              43            7.4250               319




                                                122
                               TCL Technology Group Corporation
                                  Notes to Financial Statements
                        For the period from January 1 to December 31, 2022
                             ___________(RMB’000)_____________

V   Notes to Consolidated Financial Statements (Continued)

82 Foreign currency monetary items (continued)
                                                             December 31, 2022
                                          Foreign currency
                                                                  Conversion rate    RMB balance
                                              balance
    Other receivables
    Including: USD                                     24,135               6.9646        168,091
           HKD                                         37,377               0.8933         33,389
           JPY                                         12,574               0.0526            661
           PLN                                          1,812               1.5886          2,879
           INR                                         60,781               0.0841          5,112
           KRW                                        102,590               5.4956        563,794
           EUR                                              6               7.4250             45
           MXN                                          7,361               0.3570          2,628
           SGD                                             62               5.1824            321

    Other payables
    Including: USD                                          89              6.9646            620
            HKD                                        686,511              0.8933        613,260
            JPY                                      3,131,530              0.0526        164,718
            INR                                      1,476,163              0.0841        124,145
            PLN                                            350              1.5886            556
            KRW                                        130,620              5.4956        717,835
            MXN                                         11,730              0.3570          4,188
            EUR                                             19              7.4250            141

    Short-term borrowings
    Including: USD