Third Quarter 2023 Report of TCL Technology Group Corporation
Stock Code: 000100 Stock Abbr.: TCL TECH. Announcement No.: 2023-063
TCL 科技集团股份有限公司
TCL Technology Group Corporation
Third Quarter 2023 Report
October 27, 2023
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Third Quarter 2023 Report of TCL Technology Group Corporation
Content
Section I Important Notices and Definitions ................................................................................... 3
Section II Key Financial Information .............................................................................................. 5
Section III Management Discussion and Analysis .......................................................................... 7
Section IV Shareholder Information .............................................................................................. 11
Section V Other Significant Events ................................................................................................ 13
Section VI Quarterly Financial Statements ................................................................................... 14
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Third Quarter 2023 Report of TCL Technology Group Corporation
Section I Important Notices and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee, directors, supervisors and
senior management of TCL Technology Group Corporation (hereinafter referred to as the “Company”)
hereby guarantee that this quarterly report is factual, accurate and complete, and shall be jointly and
severally liable for any misrepresentations, misleading statements, or material omissions therein.
Mr. Li Dongsheng, the Chairman of the Board, Ms. Li Jian, the person-in-charge of financial
affairs (Chief Financial Officer), and Ms. Jing Chunmei, the person-in-charge of the financial
department, hereby guarantee that the financial statements carried in this Report are factual, accurate,
and complete.
The future plans, development strategies or other forward-looking statements mentioned in this
Report shall NOT be considered as promises of the Company to investors. Therefore, investors are
kindly reminded to pay attention to possible investment risks.
This Report has not been audited. This Report has been prepared in both Chinese and English.
Should there be any discrepancies or misunderstandings between the two versions, the Chinese
version shall prevail.
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Third Quarter 2023 Report of TCL Technology Group Corporation
Definitions
Term Refers to Definition
Company, the Company, the Group Refers to TCL Technology Group Corporation
The “Reporting Period”, “current period” Refers to The period from January 1, 2023 to September 30, 2023.
The “Reporting Period”, “current period” Refers to The period from July 1, 2023 to September 30, 2023.
TCL CSOT Refers to TCL China Star Optoelectronics Technology Co., Ltd.
TCL Zhonghuan Renewable Energy Technology Co., Ltd., a majority-
TZE Refers to owned subsidiary of the Company listed on the Shenzhen Stock
Exchange (stock code: 002129.SZ)
RMB Refers to Renminbi
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Third Quarter 2023 Report of TCL Technology Group Corporation
Section II Key Financial Information
(I) Key accounting data and financial indicators
Indicate whether there is any retrospectively adjusted or restated datum in the table below
Yes □ No
Earnings per share in the third quarter of 2022 were adjusted due to the conversion of capital reserve into share capital during the Reporting Period
Q3 2022 Change Beginning of the Q3 2022 Change
year to the end
Q3 2023 Before After
After adjustment of the reporting Before adjustment After adjustment After adjustment
adjustment adjustment period
Revenue (RMB) 47,960,309,079 41,992,680,714 41,992,680,714 14.21% 133,109,034,685 126,514,861,842 126,514,861,842 5.21%
Net profit attributable to the
company’s shareholders 1,270,918,405 -382,858,737 -382,858,737 431.95% 1,611,411,994 280,664,134 280,664,134 474.14%
(RMB)
Net profits attributable to the
company’s shareholders
1,107,560,913 -1,259,772,878 -1,259,772,878 187.92% 507,494,073 -1,886,642,263 -1,886,642,263 126.90%
before non-recurring gains
and losses (RMB)
Net cash generated from
— — — — 16,144,013,013 12,661,888,660 12,661,888,660 27.50%
operating activities (RMB)
Basic earnings per share
0.0686 -0.0282 -0.0257 366.93% 0.0870 0.0207 0.0188 362.77%
(RMB/share)
Diluted earnings per share
0.0677 -0.0280 -0.0255 365.49% 0.0858 0.0205 0.0186 361.29%
(RMB/share)
Increase by 3.45 Increase by 2.41
Weighted average return on
2.46% -0.99% -0.99% percentage 3.13% 0.72% 0.72% percentage points
equity (%)
points YoY YoY
December 31, 2022 Change
At the end of the reporting period
Before adjustment After adjustment After adjustment
Total assets (RMB) 389,212,032,795 359,996,232,668 359,996,232,668 8.12%
Owner’s equity attributable
to the company’s 52,331,472,951 50,678,520,477 50,678,520,477 3.26%
shareholders (RMB)
Note: The Company converted capital reserve into share capital in May 2023, at a rate of 1 share for every ten shares to all shareholders. The Company recalculated the basic earnings per share
and the diluted earnings per share for FY2022 in accordance with accounting standards and other regulations.
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Third Quarter 2023 Report of TCL Technology Group Corporation
(II) Non-recurring profit and loss items and amounts
Applicable □ Not applicable
Unit: RMB
Amount from the
Amount in the beginning of the
Item
reporting period year to the end of
the reporting period
Gains and losses on disposal of non-current assets (inclusive of impairment allowance
-13,604,021 308,149,421
write-offs)
Government subsidies charged to current profits and loss (except for government
subsidies closely related to the Company’s normal business which comply with national
735,377,897 2,002,636,876
policies and regulations and are enjoyed on an ongoing basis according to certain
standard quotas or quantities)
The profits or losses generated from changes in fair value arising from held-for-trading
financial assets and held-for-trading financial liabilities, as well as return on investment
from the disposal of held-for-trading financial assets, held-for-trading financial liabilities -69,031,849 -111,771,947
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 individually tested
10,904,237 13,404,237
for impairment
Non-operating income and expenses other than the above -4,429,556 702,991,099
Less: Corporate income tax 166,912,976 531,434,692
Non-controlling interests (net of tax) 328,946,240 1,280,057,073
Total 163,357,492 1,103,917,921
Details of other profit and loss items that meet the definition of non-recurring profits and losses:
□ Applicable Not applicable
The Company has no other profit and loss items that meet the definition of non-recurring profits and losses.
Notes on non-recurring profit and loss items that which is listed in the Explanatory Announcement No. 1 on Information Disclosure
for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss shall be used to define Recurring Gain/Loss items
□ Applicable Not applicable
The Company does not have any non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss that are defined as recurring profit and
loss items.
(III) Changes of key accounting data and financial indicators and reasons therefor
Applicable □ Not applicable
Unit: RMB
Increase /
Beginning
Balance Sheet items Ending balance decrease ratio Reason for change
balance
(%)
Mainly caused by an increase in
Held-for-trading financial assets 17,015,862,288 12,703,507,482 33.9
wealth management products
Mainly caused by an expansion
Accounts receivable 25,259,972,511 14,051,661,462 79.8 of sales, an increase in accounts
receivables
Increase /
Cash Flow Statement items Current balance Prior balance decrease ratio Reason for change
(%)
Net cash generated from Mainly caused by a decrease in
7,657,735,025 24,068,689,896 -68.2
financing activities financing activities
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Third Quarter 2023 Report of TCL Technology Group Corporation
Section III Management Discussion and Analysis
The global economic growth rate slowed down this year, being influenced by such factors as
intensifying geopolitical tensions, stubbornly high inflation, and tightening policies adopted by
certain economies to address inflation. In the face of such a complex and challenging external
environment, the Company focused on two core industries of display and new energy photovoltaic,
so as to strengthen operational resilience and optimize business strategies in pursuit of sustainable
and high-quality development. From January to September 2023, the Company achieved an operating
revenue of RMB133.1 billion, up 5.2% year on year; net profits of RMB5.57 billion, up 185% year
on year; net profit attributable to shareholders of the listed company of RMB1.61 billion, up 474%
year on year; and net operating cash flow of RMB16.14 billion.
As the international relocation of display production capacity gradually drew to an end, the
competitive landscape of display industry had leveled out. The industry had returned to a stage of
orderly development based on reasonable business returns, and enterprises continuously optimized
their business strategies to promote the gradual recovery of the industry. During the Reporting Period,
display industry enjoyed a stable supply and demand relationship, large-sized display products drove
the area of demand increase steady and the prices of mainstream products, such as TV panels, again
rose to the range of profitability. The Company continued to upscale its products, and further
optimized its business structure. In the third quarter, the display business recorded a revenue of
RMB25.68 billion, net profit of RMB1.82 billion, accompanied by vastly improved profitability.
With the structural transformation of global energy, the Company’s new energy photovoltaic
business continued to consolidate its leading advantages in both technologies and intelligent
manufacturing, improved its synergistic role in congruence with the industry chain, pro-actively
expanded its global presence, and achieved robust growth in both scale and performance of
production and sales. During the Reporting Period, TZE registered an operating revenue of
RMB48.65 billion and net profit of RMB6.58 billion, up 19.9% year on year.
Display Business
During the Reporting Period, the end-user demand for display maintained stability amid
fluctuation, manifested a trend of seasonal improvement, while the popularity of larger-sized TVs
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Third Quarter 2023 Report of TCL Technology Group Corporation
continued to drive growth in demand areas. The ever-improving supply-side landscape had further
galvanized the healthy development of the industry, and catalyzed the uptick in prices of large-sized
panels at the beginning of this March. The prices of small and medium-sized panels gradually
stabilized. Driven by downstream new product launches and stockpiling, small-sized panels suffered
from structural capacity shortages in the third quarter which led to product price increases.
TCL CSOT maintained healthy inventory through flexible production scheduling strategies,
expedited operational turnover, and consistently improved its business and product structure. Rising
product prices also evidenced the improvement of quarter-on-quarter operational performance. In the
first three quarters of 2023, the display business achieved an revenue of RMB61.2 billion, up by 17.5%
year on year, including revenue of RMB25.68 billion in the third quarter, represented an increase of
73.0% year on year, or 25.8% quarter on quarter; and achieved net profit of RMB1.82 billion, turned
losses into gains in the third quarter and resulted in both YoY and QoQ growth.
In large-sized segment, TCL CSOT had taken full advantages of the high-generation production
lines, and led the industry by its large-sized panels. TCL CSOT consolidated its top 2 position in the
global market share of TV panels. TCL CSOT’s proportion of shipping area of TV products with
sizes of 55 inches and above had increased to 79%, while the market share of 55-inch and 75-inch
products ranked first in the world, the market share of 65-inch products ranked second in the world.
In commercial markets such as interactive whiteboards, digital signage, and splicing screens, TCL
CSOT ranked among the top three in terms of global market share. In its medium-sized products
business, the t9 production line successfully achieved a capacity increase, with expanding market
share, and the Company continued to optimize the layout of its product and customer structure. The
Company’s shipment of monitors jumped to a ranking of third in the world, with e-sports monitors
occupied the largest percentage of market share worldwide. Products for laptops and vehicle-mounted
devices were introduced to major brands worldwide at an accelerated rate. In its small-sized products
business, the Company consolidated its competitiveness through technological innovation. The
Company ranked among the top three in the world in terms of LTPS mobile panel shipments. The G6
LTPS production line was expanded as planned to meet demands for multi-purpose products. The
utilization of the t4 flexible OLED production line was significantly improved, with increasing shares
of high-end products. In the third quarter, the Company ascended to fourth place globally in terms of
market share for flexible OLED.
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Third Quarter 2023 Report of TCL Technology Group Corporation
Looking ahead into the fourth quarter, with further improvements in the competitive landscape
and new development trends based on reasonable business returns, the display industry will maintain
supply-demand balance as well as developing in a long-term, orderly, and healthy manner. The prices
of large-sized display products are subject to a moderate degree of seasonal variation. The prices of
medium-sized products have stabilized, while small-sized products see a higher utilization rate and
rising prices in certain areas because of demands for new products. The Company is confident that
its display business will continue to operate steady in the fourth quarter.
New Energy Photovoltaics Business
In the first three quarters of 2023, the photovoltaics industry witnessed intensifying competition
in key sectors, drove prices downward throughout the industrial chain. Be that as it may, the economic
viability of photovoltaic power generation improved, impelled a steady increase in installation
capacity at the terminal end. The photovoltaic industry would return to technological innovation and
manufacturing prowess in terms of core competitiveness. TZE gave full play to its rights of defining,
benchmarking, and pricing through the improvement of technologies and manufacturing,
consolidated its leading position in the market and achieved steady performance growth. During the
Reporting Period, TZE registered an operating revenue of RMB48.65 billion and net profit of
RMB6.58 billion, up 19.9% year on year.
The production capacity of G12 and N-type photovoltaic materials continued to increase. TZE
enhanced the layout of TOPCON cells and shingled modules, and strengthened its differentiated
competitiveness. During the Reporting Period, the Company’s production and sales of photovoltaic
materials rose by 68% year on year, with G12 silicon wafers occupied the largest share of the global
market, while N-type silicon wafers also secured pole position in terms of market share of sales. The
Company led the upgrade of large-sized, thin-slice, thin-line process technologies for crystals and
wafers. The Company excelled in metrics such as the monthly crystal output per furnace, volume of
wafer output per kg, and significantly enhanced its leadership position in terms of cost management.
To improve industrial synergy, the Company built a demonstration production line for G12 cells with
annual output of 2GW in the Jiangsu province, and invested in and constructed an intelligent 25GW
N-type TOPCON plant for solar power cells, expedited the development of shingled module projects.
By virtue of the capability of the Industry 4.0 technology in flexible manufacturing and the
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Third Quarter 2023 Report of TCL Technology Group Corporation
strategic partnership with the international community, TZE accelerated to deploy a layout in the
global commercial market. Having relied on long-term investment and development in smart
manufacturing over the years, the Company had applied Industry 4.0 flexible manufacturing in
various industries, created autonomously coordinated and highly efficient dark factories, which
enabled the Company to achieve industry-leading productivity, with a competitive advantage in
localized manufacturing on a global scale. The Company signed the Joint Development Agreement
with Vision Industries Company, with a view to jointly investing in and establishing a photovoltaic
crystal and wafer factory in Saudi Arabia with a designed capacity of 20GW in its first phase. Given
to Maxeon's intellectual properties and technology advantages in IBC cell-modules and shingled
modules, the Company and Maxeon had achieved mutually reinforced and coordinated development
in terms of production and channels globally. These efforts will further accelerate the future growth
of the Company’s overseas business.
Looking ahead to the future, the display industry has entered a new phase of development amid
a reshaped competitive landscape. By continuously developing its capabilities in response to demand
fluctuations, the Company is expecting consistently improving returns on its display business. TZE
will continue to take advantage of its leading position in terms of G12 and N-type strategic products,
intensify the synergistic expansion of modules and cells, and actively expand its international
business. Under such a backdrop, the Company's new energy photovoltaic business will experience
robust growth. The Company will seize opportunities from manufacturing upgrades and global clean
energy transformation, continue to implement its business strategy of “improving operational quality
and efficiency, enhancing strengths to shore up weaknesses, innovation-driven development as well
as accelerating global expansion” to achieve sustainable and high-quality development, and turn itself
into a global leader.
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Third Quarter 2023 Report of TCL Technology Group Corporation
Section IV Shareholder Information
(I) Table of the total number of ordinary shareholders and the number of preferred shareholders with
resumed voting rights as well as the shareholdings of the top 10 shareholders
Unit: Share
Total number of ordinary shareholders by the end of Total number of preferred shareholders with resumed
622,787 0
the reporting period voting rights by the end of the reporting period (if any)
Shareholdings of top 10 shareholders of ordinary shares
Shareholding Number of Shares in pledge, marked or frozen
Number of
Name of shareholder Nature of shareholder percentage restricted
shares held Status Shares
(%) shares held
Put in pledge by Li
Domestic individual/ 100,320,000
Li Dongsheng and his acting- Dongsheng
Domestic general 6.73% 1,264,053,189 672,868,839
in-concert party Put in pledge by
legal entity 308,057,743
Jiutian Liancheng
Hong Kong Securities
Foreign legal entity 5.67% 1,065,125,357
Clearing Company Ltd.
Huizhou Investment Holding State-owned legal
4.35% 817,453,824
Co., Ltd. entity
Wuhan Optics Valley State-owned legal
2.83% 532,003,016 Pledge 149,000,000
Industrial Investment Co., Ltd. entity
China Securities Finance Domestic general
2.19% 410,554,710
Corporation Limited legal entity
State-owned legal
CITIC Securities Co., Ltd. 1.48% 277,627,874
entity
Perseverance Asset
Fund, wealth
Management Partnership
management product, 1.21% 226,736,512
(Limited Partnership) - Gaoyi
etc.
Xiaofeng No. 2 Zhixin Fund
Bank of China Limited - Fund, wealth
Huatai-Pinebridge CSI management product, 0.96% 179,627,610
Photovoltaic Industry ETF etc.
China Foreign Economy and
Trade Trust Co., Ltd. - Foreign Fund, wealth
trade trust - Gaoyi Xiaofeng management product, 0.90% 168,599,830
Hong Yuan Collective Fund etc.
Trust Scheme
China Securities Co., Ltd. - Fund, wealth
Tianhong CSI Photovoltaic management product, 0.75% 141,775,320
Industry ETF etc.
Shareholdings of top 10 non-restricted ordinary shareholders
Number of non-restricted ordinary shares held at Share type and quantity
Name of shareholder
the end of reporting period Type Quantity
RMB-denominated
Hong Kong Securities Clearing Company Ltd. 1,065,125,357 1,065,125,357
ordinary shares
RMB-denominated
Huizhou Investment Holding Co., Ltd. 817,453,824 817,453,824
ordinary shares
RMB-denominated
Li Dongsheng and his acting-in-concert party 591,184,350 591,184,350
ordinary shares
RMB-denominated
Wuhan Optics Valley Industrial Investment Co., Ltd. 532,003,016 532,003,016
ordinary shares
RMB-denominated
China Securities Finance Corporation Limited 410,554,710 410,554,710
ordinary shares
RMB-denominated
CITIC Securities Co., Ltd. 277,627,874 277,627,874
ordinary shares
Perseverance Asset Management Partnership (Limited RMB-denominated
226,736,512 226,736,512
Partnership) - Gaoyi Xiaofeng No. 2 Zhixin Fund ordinary shares
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Third Quarter 2023 Report of TCL Technology Group Corporation
Bank of China Limited - Huatai-Pinebridge CSI RMB-denominated
179,627,610 179,627,610
Photovoltaic Industry ETF ordinary shares
China Foreign Economy and Trade Trust Co., Ltd. -
RMB-denominated
Foreign trade trust - Gaoyi Xiaofeng Hong Yuan 168,599,830 168,599,830
ordinary shares
Collective Fund Trust Scheme
China Securities Co., Ltd. - Tianhong CSI Photovoltaic RMB-denominated
141,775,320 141,775,320
Industry ETF ordinary shares
Mr. Li Dongsheng, one of the top 10 shareholders, and Ningbo Jiutian
Liancheng Equity Investment Partnership (Limited Partnership) became
persons acting in concert by signing the Agreement on Concerted Action,
Note on the above shareholders’ associations or concerted actions
holding 1,264,053,189 shares in total and becoming the largest shareholder
of the Company. The Company is not aware of any affiliation or concerted
action among the other aforementioned shareholders.
At the end of the reporting period:
1. Mr. Li Dongsheng and his acting-in-concert party, Huizhou Investment
Holding Co., Ltd., and Wuhan Optics Valley Industrial Investment Co.,
Explanation on the top 10 ordinary shareholders participating in securities
Ltd. did not participate in refinancing business. In addition, the Company
margin trading (if any)
is not aware of any other shareholder engaging in refinancing business.
2. The top 10 shareholders indicated above did not hold any stock of the
Company via any margin accounts.
(II) Total number of preferred shareholders and shareholdings of the top 10 preferred shareholders
□ Applicable Not applicable
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Third Quarter 2023 Report of TCL Technology Group Corporation
Section V Other Significant Events
1. Derivative investment for hedging purposes during the reporting period
Unit: RMB'0,000
Profit or Ending contractual amount
Beginning amount Ending amount Loss as % of the Company’s
Type of ending net assets
During the
contract
Contractual Transaction Contractual Transaction Reporting Contractual Transaction
amount limit amount limit Period amount limit
1. Forward
2,062,172 73,441 3,385,069 129,988 23.32 0.90
forex contracts
-3,892
2. Interest rate
384,446 11,533 148,851 4,466 1.03 0.03
swaps
Total 2,446,618 84,974 3,533,920 134,454 -3,892 24.34 0.93
Accounting policies and specific accounting
principles for hedging business during the
Reporting Period and a description of whether No significant change
there have been significant changes from those
of the previous reporting period
During the Reporting Period, profit from change in fair value of hedged items
Description of actual profits and losses during was RMB285.31 million; profit/loss arising from delivery of maturing forward
the Reporting Period exchange contracts was -RMB453.60 million; and profit/loss arising from
valuation of effective forward exchange contracts was RMB129.37 million.
During the Reporting Period, the Company’s main foreign exchange risk
exposures included foreign currency asset and liability exposures arising from
business activities such as outbound sales, raw materials procurement, and
Description of the hedging effect
financing. The uncertain risks arising from the exchange rate fluctuations were
effectively hedged by derivative contracts with the same purchase amounts and
terms in the opposite direction.
2. Other Significant Events During the Reporting Period
□ Applicable Not Applicable
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Third Quarter 2023 Report of TCL Technology Group Corporation
Section VI Quarterly Financial Statements
(I) Financial statements
1. Consolidated Balance Sheet
Prepared by: TCL Technology Group Corporation
Unit: RMB
Item September 30, 2023 January 01, 2023
Current assets:
Monetary assets 29,555,316,954 35,378,501,261
Settlement reserves
Funds on loan
Held-for-trading financial assets 17,015,862,288 12,703,507,482
Derivative financial assets 173,048,603 361,034,230
Notes receivable 440,791,529 512,848,988
Accounts receivable 25,259,972,511 14,051,661,462
Receivables financing 1,199,510,501 1,103,127,764
Prepayments 3,919,752,013 3,593,856,572
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract provisions receivable
Other receivables 4,257,727,145 4,033,248,387
Of which: Interests receivable
Dividends receivable 1,226,086
Financial assets purchased under sale-back
agreement
Inventories 19,764,196,521 18,001,121,855
Contract assets 221,243,875 315,167,085
Held-for-sale assets
Non-current assets due within one year
Other current assets 5,998,663,756 5,438,935,717
Total current assets 107,806,085,696 95,493,010,803
Non-current assets:
Loans and advances to customers
Debt investments 528,993,993 741,703,137
Other debt investments
Long-term receivables 616,420,554 631,372,701
Long-term equity investments 30,456,209,044 29,256,215,804
Investments in other equity instruments 396,036,493 439,996,263
Other non-current financial assets 4,481,682,741 2,928,827,232
Investment property 887,185,942 946,449,125
Fixed assets 153,896,990,033 132,477,671,844
Construction in progress 37,572,331,212 52,053,833,629
Productive biological assets
Oil and gas assets
Right-of-use assets 6,159,717,031 5,110,123,904
Intangible assets 18,081,584,593 16,783,930,537
Development costs 2,428,635,648 3,179,207,056
Goodwill 10,385,265,330 9,161,852,161
Long-term deferred expenses 3,350,854,184 2,744,208,125
Deferred income tax assets 2,574,282,379 1,753,887,430
Other non-current assets 9,589,757,922 6,293,942,917
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Third Quarter 2023 Report of TCL Technology Group Corporation
Total non-current assets 281,405,947,099 264,503,221,865
Total assets 389,212,032,795 359,996,232,668
Current liabilities:
Short-term borrowings 10,134,151,406 10,215,910,963
Borrowings from the Central Bank 715,606,494 777,676,330
Borrowed funds
Held-for-trading financial liabilities 764,455,192 861,911,768
Derivative financial liabilities 218,790,559 70,734,905
Notes payable 3,068,249,954 6,365,659,580
Accounts payable 32,018,005,100 26,381,911,940
Advances from customers 685,922 1,402,178
Contract liabilities 2,507,095,482 2,336,008,164
Financial assets sold under repurchase agreements
Customer deposits and deposits from other banks
203,141,843 603,423,212
and financial institutions
Funds for brokering securities transaction
Funds for brokering securities underwriting
Employee salaries payable 2,610,934,481 2,376,932,722
Taxes and levies payable 1,229,479,209 1,215,591,227
Other payables 22,611,884,909 24,190,353,350
Of which: Interests payable
Dividends payable 55,083,448 40,010,329
Service charges and commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due within one year 13,262,490,063 10,957,320,562
Other current liabilities 1,554,607,747 1,185,847,619
Total current liabilities 90,899,578,361 87,540,684,520
Non-current liabilities:
Insurance contract provisions
Long-term borrowings 130,504,280,714 118,603,164,839
Bonds payable 9,579,298,359 12,006,850,805
Of which: Preferred shares
Perpetual bonds
Lease liabilities 5,533,381,892 4,461,382,902
Long-term payables 3,202,300,378 887,762,713
Long-term employee compensation payable 47,304,888 472,538,409
Estimated liabilities 114,747,324 97,521,975
Deferred income 2,298,308,610 2,468,144,649
Deferred income tax liabilities 1,862,112,771 1,319,428,442
Other non-current liabilities
Total non-current liabilities 153,141,734,936 140,316,794,734
Total liabilities 244,041,313,297 227,857,479,254
Owner's equity:
Capital share 18,779,080,767 17,071,891,607
Other equity instruments
Of which: Preferred shares
Perpetual bonds
Capital reserves 10,945,727,155 12,522,792,596
Less: Treasury share 1,119,036,126 1,314,581,308
Other comprehensive income -1,094,921,020 -811,821,600
Specific reserves 2,301,029 2,301,029
Surplus reserves 3,712,272,814 3,712,272,814
General risk reserve 8,933,515 8,933,515
Retained earnings 21,097,114,817 19,486,731,824
Total equity attributable to the owners of the parent
52,331,472,951 50,678,520,477
company
Non-controlling interests 92,839,246,547 81,460,232,937
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Third Quarter 2023 Report of TCL Technology Group Corporation
Total owner's equity 145,170,719,498 132,138,753,414
Total liabilities and owner's equity 389,212,032,795 359,996,232,668
Legal representative: Person-in-charge of Financial affairs: Person-in-charge of the Financial Department:
Li Dongsheng Li Jian Jing Chunmei
2. Consolidated Income Statement from the Beginning of the Year to the End of the Reporting Period
Unit: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
I. Total revenue 133,165,997,183 126,575,669,585
Including: operating revenue 133,109,034,685 126,514,861,842
Interest income 56,962,498 60,807,743
Earned premiums
Service charge and commission income
II. Total costs 129,007,796,700 128,949,175,733
Of which: Operating cost 113,643,241,301 114,950,650,732
Interest expenditures 14,379,206 18,341,537
Service charge and commission
expenditures
Surrender value
Net claims payment
Net insurance liability provisions accrued
Policy dividend expenditures
Reinsurance expenses
Taxes and levies 603,630,830 450,506,832
Sales expenses 1,831,309,694 1,456,590,197
Administrative expenses 3,044,021,757 2,739,873,088
R&D expenses 7,201,406,325 6,862,053,578
Financial expenses 2,669,807,587 2,471,159,769
Including: Interest expenses 3,731,262,986 3,156,169,091
Interest income 857,965,962 574,239,059
Plus: Other income 1,762,418,772 2,527,046,371
Return on investment (losses are indicated by
2,442,260,295 2,945,923,073
"-")
Of which: Share of profit or loss of joint
1,205,559,646 2,162,708,733
ventures and associates
Income from derecognition of
financial assets measured at amortised costs
Exchange gains (losses are indicated by "-") -57,583 17,243,641
Gain on net exposure hedging (losses are
indicated by "-")
Gain on changes in fair value (losses are
372,289,148 174,313,519
indicated by "-")
Credit impairment losses (losses are indicated
-106,792,302 -21,497,079
by "-")
Asset impairment losses (losses are indicated
-2,432,074,536 -2,147,817,307
by "-")
Income from asset disposal (losses are indicated
-23,258,312 -24,703,658
by "-")
III. Operating profit (losses are indicated by "-") 6,172,985,965 1,097,002,412
Plus: Non-operating income 61,847,094 613,528,624
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Third Quarter 2023 Report of TCL Technology Group Corporation
Less: Non-operating expenses 158,935,459 97,681,058
IV. Gross profit (gross loss is indicated by "-") 6,075,897,600 1,612,849,978
Less: Income tax expenses 507,453,577 -339,091,631
V. Net profits (net losses are indicated by "-") 5,568,444,023 1,951,941,609
(I) Classification by business continuity
1. Net profits from continuing operations (net
5,568,444,023 1,951,941,609
losses are indicated by "-")
2. Net profits from discontinued operations (net
losses are indicated by "-")
(II) Classification by ownership
1. Net profit attributable to the owners of the
1,611,411,994 280,664,134
parent company (net loss is indicated by "-")
2. Net profit attributable to non-controlling
3,957,032,029 1,671,277,475
interests (net loss is indicated by "-")
VI. Other comprehensive income, net of tax -350,450,809 -600,216,587
Other comprehensive income attributable to the
-283,099,420 -657,794,348
owners of the parent company, net of tax
(I) Other comprehensive income that will not be
-42,627,164 -38,664,611
reclassified to profit or loss
1. Changes arising from remeasurement of
defined benefit plans
2. Other comprehensive income that cannot be
subsequently reclassified into profits and losses under 5,512,131 387,914
the equity method
3. Changes in fair value of investments in other
-48,139,295 -39,052,525
equity instruments
4. Changes in fair value of the enterprise's own
credit risks
5. Others
(II) Other comprehensive income that may
-240,472,256 -619,129,737
subsequently reclassified into profit and losses
1. Other comprehensive income that can be
transferred to profits and losses under the equity 29,601,657 4,527,850
method
2. Changes in fair value of other debt
investments
3. Amount of financial assets reclassified into
other comprehensive income
4. Provisions for credit impairment of other
debt investments
5. Reserves for cash flow hedging -202,298,071 -178,024,905
6. Conversion differences in foreign currency
-67,775,842 -445,632,682
financial statements
7. Others -
Other net comprehensive income attributable to
-67,351,389 57,577,761
minority interests, net of tax
VII. Total comprehensive income 5,217,993,214 1,351,725,022
(I) Total comprehensive income attributable to the
1,328,312,574 -377,130,214
owners of the parent company
(II) Total comprehensive income attributable to
3,889,680,640 1,728,855,236
minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.0870 0.0188
(II) Diluted earnings per share 0.0858 0.0186
Legal representative: Person-in-charge of Financial affairs: Person-in-charge of the Financial Department:
Li Dongsheng Li Jian Jing Chunmei
3. Consolidated Cash Flow Statement from the Beginning of the Year to the End of the Reporting Period
Unit: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
I. Net cash generated from operating activities:
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Third Quarter 2023 Report of TCL Technology Group Corporation
Proceeds from sale of commodities and rendering of
101,241,792,349 100,750,626,818
services
Net increase of deposits from customers, banks and
-400,281,369 89,255,314
other financial institutions
Net increase of borrowings from the Central Bank -62,069,836 -615,194,941
Net increase of borrowings from other financial
institutions
Cash received from collecting premiums for original
insurance contracts
Net cash received for reinsurance business
Net increase of deposits and investments of
policyholders
Cash received from interest, service charges and
56,962,498 60,807,743
commissions
Net increase of borrowed funds from banks and
other financial institutions
Net increase of repurchase business funds
Net cash received from brokering securities
transaction
Tax and levy rebates 6,897,140,163 9,008,513,808
Cash generated from other operating activities 6,549,758,540 6,499,913,125
Sub-total of cash generated from operating activities 114,283,302,345 115,793,921,867
Payments for commodities and services 77,969,681,520 83,453,908,540
Net increase of loans and advances to customers -20,126,492 40,873,048
Net increase of deposits with the Central Bank,
-94,966,195 55,082,779
banks and other financial institutions
Cash paid for claims for original insurance contracts
Net increase of funds on loan
Cash paid for interest, service charges and
commissions
Cash paid for policy dividends
Cash paid to and for employees 8,675,722,473 8,563,502,480
Taxes and levies paid 3,042,877,731 2,472,457,316
Cash used in other operating activities 8,566,100,295 8,546,209,044
Sub-total of cash used in operating activities 98,139,289,332 103,132,033,207
Net cash generated from operating activities 16,144,013,013 12,661,888,660
II. Net cash generated from investment activities:
Proceeds from disinvestments 36,407,981,056 36,317,483,105
Proceeds from return on investments 1,443,449,707 1,015,752,094
Net proceeds from disposal of fixed assets,
157,900,475 82,138,786
intangible assets and other long-term assets
Net proceeds from disposal of subsidiaries and other
business units
Cash generated from other investing activities 1,675,476,985 107,866,294
Sub-total of cash generated from investment activities 39,684,808,223 37,523,240,279
Payments for the acquisition and construction of
fixed assets, intangible assets and other long-term 22,058,677,309 31,453,416,391
assets
Payments for investments 46,043,068,029 44,706,020,240
Net increase of pledged loans
Net payments for acquiring subsidiaries and other
342,527,176 50,133,077
business units
Cash used in other investing activities 679,513,856 657,451,880
Subtotal of cash used in investing activities 69,123,786,370 76,867,021,588
Net cash used in investing activities -29,438,978,147 -39,343,781,309
III. Net cash generated from financing activities:
Capital contributions received 3,227,627,076 8,440,501,173
Of which: Net capital contributions by non-
3,227,627,076 8,440,501,173
controlling interests to subsidiaries
Borrowings raised 59,814,243,560 73,945,824,297
Cash generated from other financing activities 3,288,722,855 46,000,000
Sub-total of cash generated from financing activities 66,330,593,491 82,432,325,470
Cash paid for debt repayment 46,877,621,540 46,000,724,997
18
Third Quarter 2023 Report of TCL Technology Group Corporation
Cash paid for distribution of dividends and profits or
5,260,345,180 7,638,841,951
the repayment of interest
Of which: Dividends and profits distributed by
334,580,641 1,667,403,525
subsidiaries to minority shareholders
Cash used in other financing activities 6,534,891,746 4,724,068,626
Subtotal of cash used in financing activities 58,672,858,466 58,363,635,574
Net cash generated from financing activities 7,657,735,025 24,068,689,896
IV. Effect of exchange rate changes on cash and cash
72,098,972 616,824,475
equivalents
V. Net increase in cash and cash equivalents -5,565,131,137 -1,996,378,278
Plus: Beginning balance of cash and cash
33,675,624,291 30,081,704,864
equivalents
VI. Ending balance of cash and cash equivalents 28,110,493,154 28,085,326,586
(II) Adjustments to financial statement items at the beginning of the year of the first
implementation of the new accounting standards which have been implemented since 2023
□ Applicable Not Applicable
(III) Auditor’s Report
Whether the Third Quarter Report has been audited or not?
□Yes No
The Company’s Third Quarter Report has not yet been audited.
TCL Technology Group Corporation
Board of Directors
October 27, 2023
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